Net Income (Loss) Per Common Share

6 Months Ended

Jan. 31, 2012

Net Income (Loss) Per Common Share [Abstract]

Net Income (Loss) Per Common Share

3. Net Income (Loss) Per Common Share

Basic earnings per share ("EPS") excludes dilution and is computed by dividing net income (loss) attributable to Vail Resorts stockholders by the weighted-average shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, resulting in the issuance of shares of common stock that would then share in the earnings of Vail Resorts. Presented below is basic and diluted EPS for the three months ended January 31, 2012 and 2011 (in thousands, except per share amounts):

	Three Months Ended January 31,
	2012				2011
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	46,389	$	46,389	$	54,551	$	54,551
Weighted-average shares outstanding		36,005		36,005		35,991		35,991
Effect of dilutive securities		—		646		—		807
Total shares		36,005		36,651		35,991		36,798
Net income per share attributable to Vail Resorts	$	1.29	$	1.27	$	1.52	$	1.48

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. The number of shares issuable on the exercise of share based awards that were excluded from the calculation of diluted net income per share because the effect of their inclusion would have been anti-dilutive totaled 38,000 and 87,000 for the three months ended January 31, 2012 and 2011, respectively.

Presented below is basic and diluted EPS for the six months ended January 31, 2012 and 2011 (in thousands, except per share amounts):

	Six Months Ended January 31,
	2012						2011
	Basic			Diluted			Basic		Diluted
Net (loss) income per share:
Net (loss) income attributable to Vail Resorts	$	(9,320	)	$	(9,320	)	$	11,528	$	11,528
Weighted-average shares outstanding		36,036			36,036			35,964		35,964
Effect of dilutive securities		—			—			—		673
Total shares		36,036			36,036			35,964		36,637
Net (loss) income per share attributable to Vail Resorts	$	(0.26	)	$	(0.26	)	$	0.32	$	0.31

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. The number of shares issuable on the exercise of share based awards that were excluded from the calculation of diluted net income (loss) per share because the effect of their inclusion would have been anti-dilutive totaled 666,000 and 36,000 for the six months ended January 31, 2012 and 2011, respectively.

On June 7, 2011 the Company's Board of Directors approved the commencement of a regular quarterly cash dividend on its common stock at an annual rate of $0.60 per share, subject to quarterly declaration. During the three and six months ended January 31, 2012, the Company paid cash dividends of $0.15 and $0.30 per share, respectively ($5.4 million and $10.8 million, respectively, in the aggregate). On March 5, 2012 the Company's Board of Directors approved a 25% increase to its annual cash dividend on its common stock, subject to quarterly declaration.

As a result, a quarterly cash dividend of $0.1875 was declared by the Company's Board of Directors payable on April 10, 2012 to stockholders of record as of March 26, 2012.