Vail Resorts reported that it will restate parts of its financials for the first three fiscal quarters of 2007 to correct the way it classified real estate cash flows. The result? A cut in operating cash flow tied to real estate investment.
The company, which owns ski resorts and luxury hotels, elaborated that the revisions spring of talks with the SEC staff. Vail will reclassify cash outflows linked its real estate investments from investing activities to operating activities.
The reclassification will spur a reduction of cash flows provided by operating activities with an equal and off-setting effect on cash flows provided by investing activities. The three quarters affected include the three-month periods ended Oct. 31, 2006, and Jan. 31 and April 30 of 2007.
The company said the restatements will show up in its annual report for the fiscal year ended July 31, 2006 and in quarterly reports for the three interim quarters of the year ending July 31, 2007.
Vail stressed that the restatement won’t change the company’s previously reported overall net change in cash and cash equivalents in its cash flow statements.