----

**UNITED          STATES**

**SECURITIES          AND EXCHANGE COMMISSION**

**WASHINTON,          D.C. 20549**

**FORM          10-Q**

**x QUARTERLY            REPORT PURSUANT TO SECTION 13 OR 15(d)            OF THE            SECURITIES EXCHANGE ACT OF 1934**

**¨ TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d)                OF THE                SECURITIES EXCHANGE ACT OF 1934**

**Vail          Resorts, Inc.**

| **Delaware**                                                                                            |   | **51-0291762**                                          |
|---------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|
| (State                    or Other Jurisdiction of Incorporation or Organization)                       |   | (I.R.S.                    Employer Identification No.) |
|                                                                                                    |   |                                                    |
| **390                    Interlocken Crescent, Suite 1000,****Broomfield,                    Colorado** |   |  **80021**                                         |
| (Address                    of Principal Executive Offices)                                             |   | (Zip                    Code)                           |

| **(303)                    404-1800**                                                            |
|--------------------------------------------------------------------------------------------------|
| (Registrant’s                    Telephone Number, Including Area                    Code) |

**x**

**x**

| **Table                  of Contents** |
|----------------------------------------|
|                                   |   |   |
| **PART                  I**            | **FINANCIAL                  INFORMATION** |   |
|                                   |   |   |
| Item                  1.               | Financial                  Statements. | F-1 |
| Item                  2.               | Management's                  Discussion and Analysis of Financial Condition and Results of                  Operations. | 1 |
| Item                  3.               | Quantitative                  and Qualitative Disclosures About Market Risk. | 10 |
| Item                  4.               | Controls                  and Procedures. | 11 |
|                                   |   |   |
|                                   |   |   |
| **PART                  II**           | **OTHER                  INFORMATION** |   |
|                                   |   |   |
| Item                  1.               | Legal                  Proceedings. | 11 |
| Item                  1A.              | Risk                  Factors. | 11 |
| Item                  2.               | Unregistered                  Sales of Equity Securities and Use of Proceeds. | 11 |
| Item                  3.               | Defaults                  Upon Senior Securities. | 12 |
| Item                  4.               | Submission                  of Matters to a Vote of Security Holders. | 12 |
| Item                  5.               | Other                  Information. | 12 |
| Item                  6.               | Exhibits. | 12 |

----

| **PART                  I**                                                                                                                             | **FINANCIAL                  INFORMATION**             |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|--------|
|                                                                                                                                                    |                                                   |   |
| **Item                  1.**                                                                                                                            | **Financial                  Statements -- Unaudited** |   |
|                                                                                                                                                    |                                                   |   |
| Consolidated                  Condensed Balance Sheets as of October 31, 2006, July 31, 2006                  and October                  31, 2005     | F-2                                                    |
| Consolidated                  Condensed Statements of Operations for the Three Months Ended October                  31,                  2006 and 2005 | F-3                                                    |
| Consolidated                  Condensed Statements of Cash Flows for the Three Months Ended October                  31,                  2006 and 2005 | F-4                                                    |
| Notes                  to Consolidated Condensed Financial Statements                                                                                   | F-5                                                    |

----

| **Vail                  Resorts, Inc.**                                       |                                                                                                                                                                                                                                                                                                    |
|-------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Consolidated                  Condensed Balance Sheets**                    |                                                                                                                                                                                                                                                                                                    |
| **(In                  thousands, except share and per share amounts)**       |                                                                                                                                                                                                                                                                                                    |
|                                                                          |                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
|                                                                          |                                                                                                                                                                                                                                                                                                    |   |   | **October                  31,** |   |   | **July                  31,** |   |   | **October                  31,** |   |
|                                                                          |                                                                                                                                                                                                                                                                                                    |   |   | **2006** |   |   | **2006** |   |   | **2005** |   |
|                                                                          |                                                                                                                                                                                                                                                                                                    |   |   | **(unaudited)** |   |   |   |   |   | **(unaudited)** |   |
| Assets                                                                        |                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Current                  assets:                                              |                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                          | Cash                  and cash equivalents                                                                                                                                                                                                                                                              | $ | 117,311 |   | $ | 191,794 |   | $ | 58,692 |   |
|                                                                          | Restricted                  cash                                                                                                                                                                                                                                                                        |   | 20,354 |   |   | 20,322 |   |   | 17,400 |   |
|                                                                          | Trade                  receivables, net                                                                                                                                                                                                                                                                 |   | 27,532 |   |   | 35,949 |   |   | 25,458 |   |
|                                                                          | Inventories,                  net                                                                                                                                                                                                                                                                       |   | 56,623 |   |   | 42,278 |   |   | 50,571 |   |
|                                                                          | Other                  current assets                                                                                                                                                                                                                                                                   |   | 39,082 |   |   | 35,631 |   |   | 42,258 |   |
|                                                                          | Assets                  held for sale                                                                                                                                                                                                                                                                   |   | -- |   |   | -- |   |   | 26,857 |   |
|                                                                          | Total                  current assets                                                                                                                                                                                                                                                                   |   | 260,902 |   |   | 325,974 |   |   | 221,236 |   |
| Property,                  plant and equipment, net (Note 5)                  |                                                                                                                                                                                                                                                                                                    | 856,502 |   |   | 851,112 |   |   | 857,960 |   |
| Real                  estate held for sale and investment                     |                                                                                                                                                                                                                                                                                                    | 301,781 |   |   | 259,384 |   |   | 194,697 |   |
| Goodwill,                  net                                                |                                                                                                                                                                                                                                                                                                    | 135,811 |   |   | 135,811 |   |   | 135,507 |   |
| Intangible                  assets, net                                       |                                                                                                                                                                                                                                                                                                    | 74,252 |   |   | 75,109 |   |   | 77,642 |   |
| Other                  assets                                                 |                                                                                                                                                                                                                                                                                                    | 45,737 |   |   | 40,253 |   |   | 32,762 |   |
|                                                                          | Total                  assets                                                                                                                                                                                                                                                                           | $ | 1,674,985 |   | $ | 1,687,643 |   | $ | 1,519,804 |   |
|                                                                          |                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |
| Liabilities                  and Stockholders' Equity                         |                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Current                  liabilities:                                         |                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                          | Accounts                  payable and accrued expenses (Note 5)                                                                                                                                                                                                                                         | $ | 268,490 |   | $ | 230,762 |   | $ | 246,801 |   |
|                                                                          | Income                  taxes payable                                                                                                                                                                                                                                                                   |   | 14,986 |   |   | 17,517 |   |   | 12,191 |   |
|                                                                          | Long-term                  debt due within one year (Note 4)                                                                                                                                                                                                                                            |   | 430 |   |   | 5,915 |   |   | 6,128 |   |
|                                                                          | Total                  current liabilities                                                                                                                                                                                                                                                              |   | 283,906 |   |   | 254,194 |   |   | 265,120 |   |
| Long-term                  debt (Note 4)                                      |                                                                                                                                                                                                                                                                                                    | 542,990 |   |   | 525,313 |   |   | 524,174 |   |
| Other                  long-term liabilities                                  |                                                                                                                                                                                                                                                                                                    | 165,746 |   |   | 158,490 |   |   | 133,140 |   |
| Deferred                  income taxes                                        |                                                                                                                                                                                                                                                                                                    | 46,959 |   |   | 73,064 |   |   | 49,741 |   |
| Commitments                  and contingencies (Note 10)                      |                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Put                  option liabilities (Note 8)                              |                                                                                                                                                                                                                                                                                                    | 1,245 |   |   | 1,245 |   |   | 1,026 |   |
| Minority                  interest in net assets of consolidated subsidiaries |                                                                                                                                                                                                                                                                                                    | 29,835 |   |   | 32,560 |   |   | 26,659 |   |
| Stockholders'                  equity:                                        |                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                          | Preferred                  stock, $0.01 par value, 25,000,000 shares authorized, zero shares                  issued                  and outstanding                                                                                                                                                   |   | -- |   |   | -- |   |   | -- |   |
|                                                                          | Common                  stock, $0.01 par value, 100,000,000 shares authorized, 39,210,917                  (unaudited), 39,036,282 and 37,166,504 (unaudited) shares issued                  as of                  October 31, 2006, July 31, 2006 and October 31, 2005,                  respectively |   | 392 |   |   | 390 |   |   | 372 |   |
|                                                                          | Additional                  paid-in capital                                                                                                                                                                                                                                                             |   | 514,345 |   |   | 509,505 |   |   | 455,935 |   |
|                                                                          | Retained                  earnings                                                                                                                                                                                                                                                                      |   | 107,906 |   |   | 143,721 |   |   | 63,637 |   |
|                                                                          | Treasury                  stock (Note 11)                                                                                                                                                                                                                                                               |   | (18,339 | ) |   | (10,839 | ) |   | -- |   |
|                                                                          |                                                                                                                                                                                                                                                                                                    | Total                  stockholders' equity |   | 604,304 |   |   | 642,777 |   |   | 519,944 |   |
|                                                                          |                                                                                                                                                                                                                                                                                                    |   | Total                  liabilities and stockholders' equity | $ | 1,674,985 |   | $ | 1,687,643 |   | $ | 1,519,804 |   |

|                                                                 |                                                                         |
|----------------------------------------------------------------------|------------------------------------------------------------------------------|
| **Vail                  Resorts, Inc.**                              |                                                                         |
| **Consolidated                  Condensed Statements of Operations** |                                                                         |
| **(In                  thousands, except per share amounts)**        |                                                                         |
| **(Unaudited)**                                                      |                                                                         |
|                                                                 |                                                                         |   |   |   |   |   |   |   |   |
|                                                                 |                                                                         |   |   |   | **Three                  Months Ended** |   |
|                                                                 |                                                                         |   |   |   | **October                  31,** |   |
|                                                                 |                                                                         |   |   |   | **2006** |   |   | **2005** |   |
| Net                  revenue:                                        |                                                                         |   |   |   |   |   |
|                                                                 | Mountain                                                                     | $ | 46,164 |   | $ | 40,277 |   |
|                                                                 | Lodging                                                                      |   | 40,408 |   |   | 41,750 |   |
|                                                                 | Real                  estate                                                 |   | 26,922 |   |   | 3,393 |   |
|                                                                 |                                                                         | Total                  net revenue |   | 113,494 |   |   | 85,420 |   |
| Segment                  operating expense:                          |                                                                         |   |   |   |   |   |
|                                                                 | Mountain                                                                     |   | 79,487 |   |   | 72,291 |   |
|                                                                 | Lodging                                                                      |   | 36,349 |   |   | 37,641 |   |
|                                                                 | Real                  estate                                                 |   | 26,118 |   |   | 6,069 |   |
|                                                                 |                                                                         | Total                  segment operating expense |   | 141,954 |   |   | 116,001 |   |
| Other                  operating expense:                            |                                                                         |   |   |   |   |   |
|                                                                 | Depreciation                  and amortization                               |   | (21,585 | ) |   | (18,923 | ) |
|                                                                 | Relocation                  and separation charges (Note 7)                  |   | (735 | ) |   | -- |   |
|                                                                 | Asset                  impairment charges                                    |   | -- |   |   | (136 | ) |
|                                                                 | Loss                  on disposal of fixed assets, net                       |   | (81 | ) |   | (240 | ) |
| Loss                  from operations                                |                                                                         | (50,861 | ) |   | (49,880 | ) |
|                                                                 | Mountain                  equity investment income, net                      |   | 835 |   |   | 850 |   |
|                                                                 | Real                  estate equity investment income, net                   |   | -- |   |   | 69 |   |
|                                                                 | Investment                  income, net                                      |   | 2,063 |   |   | 1,188 |   |
|                                                                 | Interest                  expense, net                                       |   | (8,936 | ) |   | (9,437 | ) |
|                                                                 | Contract                  dispute charges (Note 10)                          |   | (3,605 | ) |   | -- |   |
|                                                                 | Loss                  on put options, net (Note 8)                           |   | -- |   |   | (992 | ) |
|                                                                 | Minority                  interest in loss of consolidated subsidiaries, net |   | 1,790 |   |   | 1,926 |   |
| Loss                  before benefit from income taxes               |                                                                         | (58,714 | ) |   | (56,276 | ) |
|                                                                 | Benefit                  from income taxes                                   |   | 22,899 |   |   | 21,947 |   |
| Net                  loss                                            | $                                                                            | (35,815 | ) | $ | (34,329 | ) |
|                                                                 |                                                                         |   |   |   |   |   |   |   |   |
| Per                  share amounts (Note 3):                         |                                                                         |   |   |   |   |   |
|                                                                 | Basic                  net loss per share                                    | $ | (0.93 | ) | $ | (0.93 | ) |
|                                                                 | Diluted                  net loss per share                                  | $ | (0.93 | ) | $ | (0.93 | ) |

| **Vail                  Resorts, Inc.**                              |
|----------------------------------------------------------------------|
| **Consolidated                  Condensed Statements of Cash Flows** |
| **(In                  thousands)**                                  |
| **(Unaudited)**                                                      |
|                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   | **Three                  Months Ended** |   |
|                                                                 |   |   |   |   | **October                  31,** |   |
|                                                                 |   |   |   |   | **2006** |   |   | **2005** |   |
| Net                  cash provided by (used in) operating activities | $ | 2,239 |   | $ | (23,082 | ) |
| Cash                  flows from investing activities:               |   |   |   |   |   |   |
|                                                                 | Capital                  expenditures |   | (28,558 | ) |   | (32,448 | ) |
|                                                                 | Investments                  in real estate |   | (54,999 | ) |   | (38,112 | ) |
|                                                                 | Other                  investing activities, net |   | 89 |   |   | (3,953 | ) |
|                                                                 |   | Net                  cash used in investing activities |   | (83,468 | ) |   | (74,513 | ) |
| Cash                  flows from financing activities:               |   |   |   |   |   |   |
|                                                                 | Repurchases                  of common stock |   | (7,500 | ) |   | -- |   |
|                                                                 | Proceeds                  from borrowings under long-term debt |   | 42,039 |   |   | 18,887 |   |
|                                                                 | Payments                  of long-term debt |   | (29,847 | ) |   | (10,303 | ) |
|                                                                 | Proceeds                  from exercise of stock options |   | 2,324 |   |   | 11,502 |   |
|                                                                 | Other                  financing activities, net |   | (270 | ) |   | (379 | ) |
|                                                                 |   | Net                  cash provided by financing activities |   | 6,746 |   |   | 19,707 |   |
|                                                                 |   |   | Net                  decrease in cash and cash equivalents |   | (74,483 | ) |   | (77,888 | ) |
| Cash                  and cash equivalents:                          |   |   |   |   |   |   |
|                                                                 | Beginning                  of period |   | 191,794 |   |   | 136,580 |   |
|                                                                 | End                  of period | $ | 117,311 |   | $ | 58,692 |   |

----

**Vail        Resorts, Inc. **

**Notes        to Consolidated Condensed Financial Statements**

**(Unaudited)**

**1.  Organization        and Business**

**2.  Summary        of Significant Accounting Policies**

*Use        of Estimates--*

**3.  Net        Loss Per Common Share**

|                                                 |      | **Three                  Months Ended October 31,** |
|------------------------------------------------------|-----------|-----------------------------------------------------|
|                                                 | **2006**  |                                                | **2005** |
|                                                 | **Basic** |                                                | **Diluted** |   | **Basic** |   | **Diluted** |
| Net                  loss per common share:          |      |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                            | $         | (35,815                                             | ) |   | $ | (35,815 | ) |   | $ | (34,329 | ) |   | $ | (34,329 | ) |
|                                                 |      |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                  shares outstanding |      | 38,715                                              |   |   |   | 38,715 |   |   |   | 36,790 |   |   |   | 36,790 |   |
| Effect                  of dilutive securities       |      | --                                                  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Total                  shares                        |      | 38,715                                              |   |   |   | 38,715 |   |   |   | 36,790 |   |   |   | 36,790 |   |
| Net                  loss per common share           | $         |  (0.93                                         | ) |   | $ | (0.93 | ) |   | $ | (0.93 | ) |   | $ | (0.93 | ) |

**4**
**.  Long-Term        Debt**

|                                                             |                              | **October                  31,** | **July                  31,** | **October                  31,** |
|------------------------------------------------------------------|-----------------------------------|----------------------------------|-------------------------------|----------------------------------|
|                                                             | **Maturity                  (a)** | **2006**                         | **2006**                      | **2005**                         |
| Credit                  Facility Revolver                        | 2010                              | $                                | --                            | $                                | -- | $ | -- |
| SSV                  Facility                                    | 2011                              |                             | --                            |                             | 6,261 |   | 17,785 |
| Industrial                  Development Bonds                    | 2007-2020                         |                             | 57,700                        |                             | 61,700 |   | 61,700 |
| Employee                  Housing Bonds                          | 2027-2039                         |                             | 52,575                        |                             | 52,575 |   | 52,575 |
| Non-Recourse                  Real Estate Financings (b)         | 2009                              |                             | 35,970                        |                             | 13,357 |   | 382 |
| 6.75%                  Senior Subordinated Notes ("6.75% Notes") | 2014                              |                             | 390,000                       |                             | 390,000 |   | 390,000 |
| Other                                                            | 2007-2029                         |                             | 7,175                         |                             | 7,335 |   | 7,860 |
| Total                  debt                                      |                              |                             | 543,420                       |                             | 531,228 |   | 530,302 |
| Less:                  Current maturities (c)                    |                              |                             | 430                           |                             | 5,915 |   | 6,128 |
| Long-term                  debt                                  |                              | $                                | 542,990                       | $                                | 525,313 | $ | 524,174 |

| (a)   | Maturities                are based on the Company's July 31 fiscal year                end. |
|-----------------|----------------------------------------------------------------------------------------------|
| (b)   | At                October 31, 2006 Non-Recourse Real Estate Financings consist of borrowings                under the $175 million construction agreement for Arrabelle at Vail                Square, LLC (“Arrabelle”). At July 31, 2006 Non-Recourse Real Estate                Financings also included borrowings under the $30 million construction                agreement for Gore Creek Place, LLC (“Gore Creek”) which were                paid in full during the three months ended October 31,                2006. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)   | Current                maturities represent principal payments due in the next 12                months. |
|-----------------|----------------------------------------------------------------------------------------------------------|

| Fiscal                  2007 |   | $      | 270     |
|------------------------------|--------|--------|---------|
| Fiscal                  2008 |   |   | 344     |
| Fiscal                  2009 |   |   | 51,235  |
| Fiscal                  2010 |   |   | 262     |
| Fiscal                  2011 |   |   | 1,738   |
| Thereafter                   |   |   | 489,571 |
| Total                  debt  |   | $      | 543,420 |

**5.  Supplementary        Balance Sheet Information**

|                                                         | **October                    31,** | **July                    31,** | **October                    31,** |
|--------------------------------------------------------------|------------------------------------|---------------------------------|------------------------------------|
|                                                         | **2006**                           | **2006**                        | **2005**                           |
| Land                    and land improvements                | $                                  | 244,786                         |                               | $ | 248,941 |   | $ | 236,441 |   |
| Buildings                    and building improvements       |                               | 531,829                         |                               |   | 529,316 |   |   | 506,281 |   |
| Machinery                    and equipment                   |                               | 426,886                         |                               |   | 426,457 |   |   | 396,705 |   |
| Vehicles                                                     |                               | 25,502                          |                               |   | 25,671 |   |   | 24,867 |   |
| Furniture                    and fixtures                    |                               | 117,574                         |                               |   | 113,696 |   |   | 101,743 |   |
| Construction                    in progress                  |                               | 57,678                          |                               |   | 39,149 |   |   | 75,064 |   |
|  Gross                    property, plant and equipment |                               | 1,404,255                       |                               |   | 1,383,230 |   |   | 1,341,101 |   |
| Accumulated                    depreciation                  |                               | (547,753                        | )                                  |   | (532,118 | ) |   | (483,141 | ) |
|  Property,                    plant and equipment, net  | $                                  | 856,502                         |                               | $ | 851,112 |   | $ | 857,960 |   |

|                                                                        | **October                    31,**                             | **July                    31,** | **October                    31,** |
|-----------------------------------------------------------------------------|----------------------------------------------------------------|---------------------------------|------------------------------------|
|                                                                        | **2006**                                                       | **2006**                        | **2005**                           |
| Trade                    payables                                           | $                                                              | 103,975                         |                               | $ | 82,599 |   | $ | 85,482 |
| Deferred                    revenue                                         |                                                           | 68,277                          |                               |   | 30,785 |   |   | 59,737 |
| Deferred                    credits and deposits                            |                                                           | 24,318                          |                               |   | 24,026 |   |   | 31,779 |
| Accrued                    salaries, wages and deferred compensation        |                                                           | 17,370                          |                               |   | 31,954 |   |   | 15,488 |
| Accrued                    benefits                                         |                                                           | 23,428                          |                               |   | 24,538 |   |   | 17,864 |
| Accrued                    interest                                         |                                                           | 7,434                           |                               |   | 14,969 |   |   | 6,803 |
| Liabilities                    to complete real estate projects, short term |                                                           | 4,363                           |                               |   | 5,951 |   |   | 9,597 |
| Other                    accruals                                           |                                                           | 19,325                          |                               |   | 15,940 |   |   | 20,051 |
|                                                                        | Total                    accounts payable and accrued expenses | $                               | 268,490                            |   | $ | 230,762 |   | $ | 246,801 |

**6.  Variable        Interest Entities **

**7.        Relocation and Separation Charges**

|                                             |       |                |       |       |                  |       |       | ** Facility,**                  | ** ** | ** ** | ** **      | ** ** |
|--------------------------------------------------|------------|---------------------|------------|------------|-----------------------|------------|------------|--------------------------------------|------------|------------|-----------------|------------|
| ** **                                       | ** ** | ** Severence** | ** ** | ** ** | ** **            | ** ** | ** ** | ** Employee**                   | ** ** | ** ** | ** **      | ** ** |
| ** **                                       | ** ** | ** and**       | ** ** | ** ** | ** Contact**     | ** ** | ** ** | ** and                  Other** | ** ** | ** ** | ** **      | ** ** |
| ** **                                       | ** ** | ** Retention** | ** ** | ** ** | ** Termination** | ** ** | ** ** | ** Relocation**                 | ** ** | ** ** | ** **      | ** ** |
| ** **                                       | ** ** | ** Benefits**  | ** ** | ** ** | ** Costs**       | ** ** | ** ** | ** Costs**                      | ** ** | ** ** | ** Total** |       |
|  Balance                  at July 31, 2006  |  $    |  873           |       |  $    |  --              |       |  $    |  283                            |       |  $    |  1,156     |       |
|  Relocation                charges          |       |  66            |       |       |  33              |       |       |  636                            |       |       |  735       |       |
|  Payments                                   |       |  (768          | )          |       |  (33             | )          |       |  (880                           | )          |       |  (1,681    | )          |
|  Balance                at October 31, 2006 |  $    |  171           |       |  $    |  --              |       |  $    |  39                             |       |  $    |  210       |       |

**8.  Put        and Call Options**

**9.  Related        Party Transactions**

**10.  Commitments        and Contingencies**

*Metropolitan        Districts*

*Guarantees*

*Cheeca        Lodge & Spa Contract Dispute*

**11.**
**Stock        Repurchase Plan **

**12.  Guarantor        Subsidiaries and Non-Guarantor Subsidiaries**

----

| **Supplemental                  Condensed Consolidating Balance Sheet** |
|-------------------------------------------------------------------------|
| **As                  of October 31, 2006**                             |
| **(in                  thousands)**                                     |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   | **100%                  Owned** |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   | **Parent** |   |   | **Guarantor** | **Other** |   | **Eliminating** |   |   |   |   |
|                                                                    |   |   |   | **Company** |   |   | **Subsidiaries** | **Subsidiaries** |   | **Entries** |   | **Consolidated** |   |
| Current                  assets:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    | Cash                  and cash equivalents | $ | -- |   |   | $ | 108,569 |   | $ | 8,742 |   | $ | -- |   | $ | 117,311 |   |
|                                                                    | Restricted                  cash |   | -- |   |   |   | 16,341 |   |   | 4,013 |   |   | -- |   |   | 20,354 |   |
|                                                                    | Trade                  receivables, net |   | -- |   |   |   | 23,150 |   |   | 4,382 |   |   | -- |   |   | 27,532 |   |
|                                                                    | Inventories,                  net |   | -- |   |   |   | 8,587 |   |   | 48,036 |   |   | -- |   |   | 56,623 |   |
|                                                                    | Other                  current assets |   | 12,676 |   |   |   | 23,590 |   |   | 2,816 |   |   | -- |   |   | 39,082 |   |
|                                                                    |   | Total                  current assets |   | 12,676 |   |   |   | 180,237 |   |   | 67,989 |   |   | -- |   |   | 260,902 |   |
| Property,                  plant and equipment, net                     |   | -- |   |   |   | 788,984 |   |   | 67,518 |   |   | -- |   |   | 856,502 |   |
| Real                  estate held for sale and investment               |   | -- |   |   |   | 165,788 |   |   | 135,993 |   |   | -- |   |   | 301,781 |   |
| Goodwill,                  net                                          |   |   | -- |   |   |   | 118,475 |   |   | 17,336 |   |   | -- |   |   | 135,811 |   |
| Intangible                  assets, net                                 |   | -- |   |   |   | 57,518 |   |   | 16,734 |   |   | -- |   |   | 74,252 |   |
| Other                  assets                                           |   | 5,179 |   |   |   | 26,536 |   |   | 14,022 |   |   | -- |   |   | 45,737 |   |
| Investments                  in subsidiaries and advances to            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (from)                  parent                                          | 1,002,008 |   |   |   | (483,368 | ) |   | (58,742 | ) |   | (459,898 | ) |   | -- |   |
|                                                                    | Total                  assets |   | $ | 1,019,863 |   |   | $ | 854,170 |   | $ | 260,850 |   | $ | (459,898 | ) | $ | 1,674,985 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  liabilities:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    | Accounts                  payable and accrued expenses | $ | 10,630 |   |   | $ | 192,742 |   | $ | 65,118 |   | $ | -- |   | $ | 268,490 |   |
|                                                                    | Income                  taxes payable |   | 14,913 |   |   |   | 73 |   |   | -- |   |   | -- |   |   | 14,986 |   |
|                                                                    | Long-term                  debt due within one year |   | -- |   |   |   | 44 |   |   | 386 |   |   | -- |   |   | 430 |   |
|                                                                    |   | Total                  current liabilities |   | 25,543 |   |   |   | 192,859 |   |   | 65,504 |   |   | -- |   |   | 283,906 |   |
| Long-term                  debt                                         |   |   | 390,000 |   |   |   | 57,726 |   |   | 95,264 |   |   | -- |   |   | 542,990 |   |
| Other                  long-term liabilities                            |   | 16 |   |   |   | 126,507 |   |   | 39,223 |   |   | -- |   |   | 165,746 |   |
| Deferred                  income taxes                                  |   | -- |   |   |   | 46,877 |   |   | 82 |   |   | -- |   |   | 46,959 |   |
| Put                  option liabilities                                 |   | -- |   |   |   | 1,245 |   |   | -- |   |   | -- |   |   | 1,245 |   |
| Minority                  interest in net assets of consolidated        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subsidiaries                                                            | -- |   |   |   | -- |   |   | 29,835 |   |   | -- |   |   | 29,835 |   |
| Total                  stockholders' equity                             |   | 604,304 |   |   |   | 428,956 |   |   | 30,942 |   |   | (459,898 | ) |   | 604,304 |   |
|                                                                    | Total                  liabilities and stockholders' equity | $ | 1,019,863 |   |   | $ | 854,170 |   | $ | 260,850 |   | $ | (459,898 | ) | $ | 1,674,985 |   |

| **Supplemental                  Condensed Consolidating Balance Sheet**       |
|-------------------------------------------------------------------------------|
| **As                  of July 31, 2006**                                      |
| **(in                  thousands)**                                           |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   | **100%                  Owned** |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   | **Parent** |   | **Guarantor** |   | **Other** |   | **Eliminating** |   |   |   |   |
|                                                                          |   | **Company** |   | **Subsidiaries** |   | **Subsidiaries** |   | **Entries** |   | **Consolidated** |
| Current                  assets:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  and cash equivalents                                    |   | $ | -- |   |   | $ | 179,998 |   |   | $ | 11,796 |   |   | $ | -- |   |   | $ | 191,794 |   |
| Restricted                  cash                                              |   |   | -- |   |   |   | 14,787 |   |   |   | 5,535 |   |   |   | -- |   |   |   | 20,322 |   |
| Trade                  receivables, net                                       |   |   | -- |   |   |   | 31,030 |   |   |   | 4,919 |   |   |   | -- |   |   |   | 35,949 |   |
| Inventories,                  net                                             |   |   | -- |   |   |   | 8,595 |   |   |   | 33,683 |   |   |   | -- |   |   |   | 42,278 |   |
| Other                  current assets                                         |   |   | 11,945 |   |   |   | 21,308 |   |   |   | 2,378 |   |   |   | -- |   |   |   | 35,631 |   |
| Total                  current assets                                         |   |   | 11,945 |   |   |   | 255,718 |   |   |   | 58,311 |   |   |   | -- |   |   |   | 325,974 |   |
| Property,                  plant and equipment, net                           |   |   | -- |   |   |   | 782,158 |   |   |   | 68,954 |   |   |   | -- |   |   |   | 851,112 |   |
| Real                  estate held for sale and investment                     |   |   | -- |   |   |   | 154,330 |   |   |   | 105,054 |   |   |   | -- |   |   |   | 259,384 |   |
| Goodwill,                  net                                                |   |   | -- |   |   |   | 118,475 |   |   |   | 17,336 |   |   |   | -- |   |   |   | 135,811 |   |
| Intangible                  assets, net                                       |   |   | -- |   |   |   | 58,185 |   |   |   | 16,924 |   |   |   | -- |   |   |   | 75,109 |   |
| Other                  assets                                                 |   |   | 5,356 |   |   |   | 20,510 |   |   |   | 14,387 |   |   |   | -- |   |   |   | 40,253 |   |
| Investments                  in subsidiaries and advances to (from) parent    |   |   | 1,053,209 |   |   |   | (541,621 | ) |   |   | (51,690 | ) |   |   | (459,898 | ) |   |   | -- |   |
| Total                  assets                                                 |   | $ | 1,070,510 |   |   | $ | 847,755 |   |   | $ | 229,276 |   |   | $ | (459,898 | ) |   | $ | 1,687,643 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  liabilities:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts                  payable and accrued expenses                        |   | $ | 19,857 |   |   | $ | 161,179 |   |   | $ | 49,726 |   |   | $ | -- |   |   | $ | 230,762 |   |
| Income                  taxes payable                                         |   |   | 17,517 |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 17,517 |   |
| Long-term                  debt due within one year                           |   |   | -- |   |   |   | 4,045 |   |   |   | 1,870 |   |   |   | -- |   |   |   | 5,915 |   |
| Total                  current liabilities                                    |   |   | 37,374 |   |   |   | 165,224 |   |   |   | 51,596 |   |   |   | -- |   |   |   | 254,194 |   |
| Long-term                  debt                                               |   |   | 390,000 |   |   |   | 57,734 |   |   |   | 77,579 |   |   |   | -- |   |   |   | 525,313 |   |
| Other                  long-term liabilities                                  |   |   | 359 |   |   |   | 121,995 |   |   |   | 36,136 |   |   |   | -- |   |   |   | 158,490 |   |
| Deferred                  income taxes                                        |   |   | -- |   |   |   | 72,919 |   |   |   | 145 |   |   |   | -- |   |   |   | 73,064 |   |
| Put                  option liabilities                                       |   |   | -- |   |   |   | 1,245 |   |   |   | -- |   |   |   | -- |   |   |   | 1,245 |   |
| Minority                  interest in net assets of consolidated subsidiaries |   |   | -- |   |   |   | 13,285 |   |   |   | 19,275 |   |   |   | -- |   |   |   | 32,560 |   |
| Total                  stockholders’ equity                             |   |   | 642,777 |   |   |   | 415,353 |   |   |   | 44,545 |   |   |   | (459,898 | ) |   |   | 642,777 |   |
| Total                  liabilities and stockholders’ equity             |   | $ | 1,070,510 |   |   | $ | 847,755 |   |   | $ | 229,276 |   |   | $ | (459,898 | ) |   | $ | 1,687,643 |   |

| **Supplemental                  Condensed Consolidating Balance Sheet** |
|-------------------------------------------------------------------------|
| **As                  of October 31, 2005**                             |
| **(in                  thousands)**                                     |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   | **100%                  Owned** |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   | **Parent** |   |   | **Guarantor** | **Other** |   | **Eliminating** |   |   |   |   |
|                                                                    |   |   |   | **Company** |   |   | **Subsidiaries** | **Subsidiaries** |   | **Entries** |   | **Consolidated** |   |
| Current                  assets:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    | Cash                  and cash equivalents | $ | -- |   |   | $ | 18,127 |   | $ | 40,565 |   | $ | -- |   | $ | 58,692 |   |
|                                                                    | Restricted                  cash |   | -- |   |   |   | 14,865 |   |   | 2,535 |   |   | -- |   |   | 17,400 |   |
|                                                                    | Trade                  receivables, net |   | -- |   |   |   | 20,386 |   |   | 5,072 |   |   | -- |   |   | 25,458 |   |
|                                                                    | Inventories,                  net |   | -- |   |   |   | 8,458 |   |   | 42,113 |   |   | -- |   |   | 50,571 |   |
|                                                                    | Other                  current assets |   | 12,140 |   |   |   | 23,714 |   |   | 6,404 |   |   | -- |   |   | 42,258 |   |
|                                                                    | Assets                  held for sale |   | -- |   |   |   | 26,857 |   |   | -- |   |   | -- |   |   | 26,857 |   |
|                                                                    |   | Total                  current assets |   | 12,140 |   |   |   | 112,407 |   |   | 96,689 |   |   | -- |   |   | 221,236 |   |
| Property,                  plant and equipment, net                     |   | -- |   |   |   | 790,406 |   |   | 67,554 |   |   | -- |   |   | 857,960 |   |
| Real                  estate held for sale and investment               |   | -- |   |   |   | 127,484 |   |   | 67,213 |   |   | -- |   |   | 194,697 |   |
| Goodwill,                  net                                          |   |   | -- |   |   |   | 135,507 |   |   | -- |   |   | -- |   |   | 135,507 |   |
| Intangible                  assets, net                                 |   | -- |   |   |   | 43,121 |   |   | 34,521 |   |   | -- |   |   | 77,642 |   |
| Other                  assets                                           |   | 5,889 |   |   |   | 16,674 |   |   | 10,199 |   |   | -- |   |   | 32,762 |   |
| Investments                  in subsidiaries and advances to            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (from)                  parent                                          | 911,105 |   |   |   | (390,002 | ) |   | (61,205 | ) |   | (459,898 | ) |   | -- |   |
|                                                                    | Total                  assets |   | $ | 929,134 |   |   | $ | 835,597 |   | $ | 214,971 |   | $ | (459,898 | ) | $ | 1,519,804 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  liabilities:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    | Accounts                  payable and accrued expenses | $ | 6,631 |   |   | $ | 181,890 |   | $ | 58,280 |   | $ | -- |   | $ | 246,801 |   |
|                                                                    | Income                  taxes payable |   | 12,191 |   |   |   | -- |   |   | -- |   |   | -- |   |   | 12,191 |   |
|                                                                    | Long-term                  debt due within one year |   | -- |   |   |   | 4,476 |   |   | 1,652 |   |   | -- |   |   | 6,128 |   |
|                                                                    |   | Total                  current liabilities |   | 18,822 |   |   |   | 186,366 |   |   | 59,932 |   |   | -- |   |   | 265,120 |   |
| Long-term                  debt                                         |   |   | 390,000 |   |   |   | 57,777 |   |   | 76,397 |   |   | -- |   |   | 524,174 |   |
| Other                  long-term liabilities                            |   | 368 |   |   |   | 98,768 |   |   | 34,004 |   |   | -- |   |   | 133,140 |   |
| Deferred                  income taxes                                  |   | -- |   |   |   | 49,412 |   |   | 329 |   |   | -- |   |   | 49,741 |   |
| Put                  option liabilities                                 |   | -- |   |   |   | 1,026 |   |   | -- |   |   | -- |   |   | 1,026 |   |
| Minority                  interest in net assets of consolidated        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subsidiaries                                                            | -- |   |   |   | -- |   |   | 26,659 |   |   | -- |   |   | 26,659 |   |
| Total                  stockholders' equity                             |   | 519,944 |   |   |   | 442,248 |   |   | 17,650 |   |   | (459,898 | ) |   | 519,944 |   |
|                                                                    | Total                  liabilities and stockholders' equity | $ | 929,134 |   |   | $ | 835,597 |   | $ | 214,971 |   | $ | (459,898 | ) | $ | 1,519,804 |   |

----

| **Supplemental                  Condensed Consolidating Statement of                  Operations** |
|----------------------------------------------------------------------------------------------------|
| **For                  the three months ended October 31, 2006**                                   |
| **(in                  thousands)**                                                                |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   | **100%                  Owned** |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   | **Parent** |   | **Guarantor** |   | **Other** |   | **Eliminating** |   |   |   |   |
|                                                                                               |   |   | **Company** |   | **Subsidiaries** |   | **Subsidiaries** |   | **Entries** |   | **Consolidated** |
| Total                  net revenue                                                                 |   | $ | -- |   |   | $ | 75,962 |   |   | $ | 39,295 |   |   | $ | (1,763 | ) | $ | 113,494 |   |
| Total                  operating expense                                                           |   |   | 2,995 |   |   |   | 121,376 |   |   |   | 41,747 |   |   |   | (1,763 | ) |   | 164,355 |   |
|                                                                                               | Loss                  from operations |   |   | (2,995 | ) |   |   | (45,414 | ) |   | (2,452 | ) |   | -- |   |   |   | (50,861 | ) |
| Equity                  investment income, net                                                     |   |   | -- |   |   |   | 835 |   |   |   | -- |   |   |   | -- |   |   |   | 835 |   |
| Other                  expense                                                                     |   |   | (6,757 | ) |   |   | (2,675 | ) |   | (1,046 | ) |   | -- |   |   |   | (10,478 | ) |
| Minority                  interest in loss of consolidated subsidiaries, net                       |   |   | -- |   |   |   | -- |   |   |   | 1,790 |   |   |   | -- |   |   |   | 1,790 |   |
|                                                                                               | Loss                  before income taxes |   |   | (9,752 | ) |   |   | (47,254 | ) |   | (1,708 | ) |   | -- |   |   |   | (58,714 | ) |
| Benefit                  from income taxes                                                         |   |   | 3,803 |   |   |   | 19,051 |   |   |   | 45 |   |   |   | -- |   |   |   | 22,899 |   |
|                                                                                               | Net                  loss before equity in (loss) income of consolidated                  subsidiaries |   |   | (5,949 | ) |   |   | (28,203 | ) |   |   | (1,663 | ) |   |   | -- |   |   |   | (35,815 | ) |
| Equity                  in (loss) income of consolidated subsidiaries                              |   |   | (29,866 | ) |   |   | -- |   |   |   | -- |   |   |   | 29,866 |   |   |   | -- |   |
|                                                                                               | Net                  (loss) income |   | $ | (35,815 | ) |   | $ | (28,203 | ) | $ | (1,663 | ) | $ | 29,866 |   |   | $ | (35,815 | ) |

| **Supplemental                  Condensed Consolidating Statement of                  Operations** |
|----------------------------------------------------------------------------------------------------|
| **For                  the three months ended October 31, 2005**                                   |
| **(in                  thousands)**                                                                |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   | **100%                  Owned** |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   | **Parent** |   | **Guarantor** |   | **Other** |   | **Eliminating** |   |   |   |   |
|                                                                                               |   |   | **Company** |   | **Subsidiaries** |   | **Subsidiaries** |   | **Entries** |   | **Consolidated** |
| Total                  net revenue                                                                 |   | $ | -- |   |   | $ | 60,797 |   |   | $ | 26,630 |   |   | $ | (2,007 | ) | $ | 85,420 |   |
| Total                  operating expense                                                           |   |   | 3,768 |   |   |   | 100,706 |   |   |   | 32,833 |   |   |   | (2,007 | ) |   | 135,300 |   |
|                                                                                               | Loss                  from operations |   |   | (3,768 | ) |   |   | (39,909 | ) |   | (6,203 | ) |   | -- |   |   |   | (49,880 | ) |
| Equity                  investment income, net                                                     |   |   | -- |   |   |   | 919 |   |   |   | -- |   |   |   | -- |   |   |   | 919 |   |
| Loss                  on put options, net                                                          |   |   | -- |   |   |   | (992 | ) |   | -- |   |   |   | -- |   |   |   | (992 | ) |
| Other                  expense                                                                     |   |   | (6,760 | ) |   |   | (849 | ) |   | (640 | ) |   | -- |   |   |   | (8,249 | ) |
| Minority                  interest in loss of consolidated subsidiaries, net                       |   |   | -- |   |   |   | -- |   |   |   | 1,926 |   |   |   | -- |   |   |   | 1,926 |   |
|                                                                                               | Loss                  before income taxes |   |   | (10,528 | ) |   |   | (40,831 | ) |   | (4,916 | ) |   | -- |   |   |   | (56,276 | ) |
| Benefit                  from income taxes                                                         |   |   | 4,106 |   |   |   | 17,795 |   |   |   | 46 |   |   |   | -- |   |   |   | 21,947 |   |
|                                                                                               | Net                  loss before equity in (loss) income of consolidated                  subsidiaries |   |   | (6,422 | ) |   |   | (23,036 | ) |   |   | (4,870 | ) |   |   | -- |   |   |   | (34,329 | ) |
| Equity                  in (loss) income of consolidated subsidiaries                              |   |   | (27,907 | ) |   |   | -- |   |   |   | -- |   |   |   | 27,907 |   |   |   | -- |   |
|                                                                                               | Net                  (loss) income |   | $ | (34,329 | ) |   | $ | (23,036 | ) | $ | (4,870 | ) | $ | 27,907 |   |   | $ | (34,329 | ) |

| **Supplemental                  Condensed Consolidating Statement of Cash                  Flows** |
|----------------------------------------------------------------------------------------------------|
| **For                  the three months ended October 31, 2006**                                   |
| **(in                  thousands)**                                                                |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   | **100%                  Owned** |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   | **Parent** |   | **Guarantor** | **Other** |   |   |   |   |
|                                                                                               |   |   |   |   | **Company** |   | **Subsidiaries** | **Subsidiaries** |   | **Consolidated** |
| Net                  cash (used in) provided by operating activities                               |   | $ | (16,714 | ) |   | $ | 14,056 |   | $ | 4,897 |   |   | $ | 2,239 |   |
| Cash                  flows from investing activities:                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               | Capital                  expenditures |   |   | -- |   |   |   | (27,737 | ) |   | (821 | ) |   |   | (28,558 | ) |
|                                                                                               | Investments                  in real estate |   |   | -- |   |   |   | (24,060 | ) |   | (30,939 | ) |   |   | (54,999 | ) |
|                                                                                               | Other                  investing activities, net |   |   | -- |   |   |   | (59 | ) |   | 148 |   |   |   | 89 |   |
|                                                                                               |   | Net                  cash used in investing activities |   |   | -- |   |   |   | (51,856 | ) |   | (31,612 | ) |   |   | (83,468 | ) |
| Cash                  flows from financing activities:                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               | Repurchases                  of common stock |   |   | -- |   |   |   | (7,500 | ) |   | -- |   |   |   | (7,500 | ) |
|                                                                                               | Proceeds                  from borrowings under long-term debt |   |   | -- |   |   |   | 19,577 |   |   | 22,462 |   |   |   | 42,039 |   |
|                                                                                               | Payments                  of long-term debt |   |   | -- |   |   |   | (23,586 | ) |   | (6,261 | ) |   |   | (29,847 | ) |
|                                                                                               | Proceeds                  from exercise of stock options |   |   | 2,324 |   |   |   | -- |   |   | -- |   |   |   | 2,324 |   |
|                                                                                               | Other                  financing activities, net |   |   | 968 |   |   |   | 453 |   |   | (1,691 | ) |   |   | (270 | ) |
|                                                                                               | Advances                  (to) from affiliates |   |   | 13,422 |   |   |   | (22,573 | ) |   | 9,151 |   |   |   | -- |   |
|                                                                                               |   | Net                  cash provided by (used in ) financing activities |   |   | 16,714 |   |   |   | (33,629 | ) |   | 23,661 |   |   |   | 6,746 |   |
|                                                                                               |   |   | Net                  (decrease) increase in cash and cash equivalents |   |   | -- |   |   |   | (71,429 | ) |   | (3,054 | ) |   |   | (74,483 | ) |
| Cash                  and cash equivalents:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               | Beginning                  of period |   |   | -- |   |   |   | 179,998 |   |   | 11,796 |   |   |   | 191,794 |   |
|                                                                                               | End                  of period |   | $ | -- |   |   | $ | 108,569 |   | $ | 8,742 |   |   | $ | 117,311 |   |

| **Supplemental                  Condensed Consolidating Statement of Cash                  Flows** |
|----------------------------------------------------------------------------------------------------|
| **For                  the three months ended October 31, 2005**                                   |
| **(in                  thousands)**                                                                |
|                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   | **100%                  Owned** |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   | **Parent** |   | **Guarantor** |   | **Other** |   |   |   |   |
|                                                                                               |   |   |   |   | **Company** |   | **Subsidiaries** |   | **Subsidiaries** |   | **Consolidated** |
| Net                  cash (used in) provided by operating activities                               |   | $ | (16,180 | ) |   | $ | (11,192 | ) |   | $ | 4,290 |   |   | $ | (23,082 | ) |
| Cash                  flows from investing activities:                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               | Capital                  expenditures |   |   | -- |   |   |   | (30,642 | ) |   |   | (1,806 | ) |   |   | (32,448 | ) |
|                                                                                               | Investments                  in real estate |   |   | -- |   |   |   | (18,996 | ) |   |   | (19,116 | ) |   |   | (38,112 | ) |
|                                                                                               | Other                  investing activities, net |   |   | -- |   |   |   | 41 |   |   |   | (3,994 | ) |   |   | (3,953 | ) |
|                                                                                               |   | Net                  cash used in investing activities |   |   | -- |   |   |   | (49,597 | ) |   |   | (24,916 | ) |   |   | (74,513 | ) |
| Cash                  flows from financing activities:                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               | Proceeds                  from borrowings under long-term debt |   |   | -- |   |   |   | 10,293 |   |   |   | 8,594 |   |   |   | 18,887 |   |
|                                                                                               | Payments                  on long-term debt |   |   | -- |   |   |   | (10,303 | ) |   |   | -- |   |   |   | (10,303 | ) |
|                                                                                               | Proceeds                  from exercise of stock options |   |   | 11,502 |   |   |   | -- |   |   |   | -- |   |   |   | 11,502 |   |
|                                                                                               | Other                  financing activities, net |   |   | 873 |   |   |   | (364 | ) |   |   | (888 | ) |   |   | (379 | ) |
|                                                                                               | Advances                  (to) from affiliates |   |   | 3,805 |   |   |   | (13,589 | ) |   |   | 9,784 |   |   |   | -- |   |
|                                                                                               |   | Net                  cash provided by (used in ) financing activities |   |   | 16,180 |   |   |   | (13,963 | ) |   |   | 17,490 |   |   |   | 19,707 |   |
|                                                                                               |   |   | Net                  decrease in cash and cash equivalents |   |   | -- |   |   |   | (74,752 | ) |   |   | (3,136 | ) |   |   | (77,888 | ) |
| Cash                  and cash equivalents:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               | Beginning                  of period |   |   | -- |   |   |   | 92,879 |   |   |   | 43,701 |   |   |   | 136,580 |   |
|                                                                                               | End                  of period |   | $ | -- |   |   | $ | 18,127 |   |   | $ | 40,565 |   |   | $ | 58,692 |   |

----

**ITEM        2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS        OF        OPERATIONS.**

**OVERVIEW**

**Recent        Trends, Risks and Uncertainties**

| ·   | The                timing and amount of snowfall has an impact on skier visits. To mitigate                this impact, the Company focuses efforts on sales of season passes                prior                to the beginning of the season to In-State skiers, as most weather                sensitive visitors to the Company’s ski resorts tend to be from the                Colorado Front Range, to whom the Company markets season pass products.                Additionally, the Company has invested in snowmaking upgrades in                an effort                to address the inconsistency of early season snowfall where possible.                Season pass revenue, although primarily collected prior to the ski                season,                is recognized in the Consolidated Condensed Statements of Operations                during the ski season. Deferred revenue related to season pass sales                was                $53.0 million and $41.1 million as of October 31, 2006 and 2005,                respectively. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Consistent                with prior years, the Company plans to raise prices on all lift ticket                products, including season pass products, for the 2006/07 ski season                and                continues to charge some of the highest prices in the industry. While                pricing increases historically have not reduced demand, there can                be no                assurances that demand will remain price                inelastic. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Potential                ownership changes of hotels currently under RockResorts management                could                result in the termination of existing RockResorts management contracts,                which could impact the results of operations of the Lodging segment.                In                August 2006, RockResorts' management agreement for The Lodge at Rancho                Mirage (“Rancho Mirage”) was terminated in conjunction with the closing of                the hotel as part of a redevelopment plan by the current hotel owner,                which resulted in the Company earning a termination fee of $2.4 million                (pursuant to the terms of the management agreement), which the Company                recorded as lodging revenue in the three months ended October 31,                2006.                RockResorts                recognized $644,000 in revenue related to the management of this                property                in the year ended July 31, 2006. The                Company continues to pursue new management contracts, which may include,                in addition to management fees, marketing license fees and technical                service fees in conjunction with a project’s development and sales. For                example, the Company recently announced that it will manage the new                Rum                Cay Resort on Rum Cay Island, Bahamas and will assist in the marketing                and                provide technical advisory services for this resort. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | On                March 6, 2006, RockResorts was notified by the ownership of Cheeca                Lodge                & Spa (“Checca”), formerly a RockResorts managed property, that its                management agreement was being terminated effective immediately.                RockResorts recognized $666,000 in revenue related to the management                of                this property in the                year ended July 31, 2005                (its last full year of the Company’s management of the property).                RockResorts believes and asserts that the termination is in violation                of                the management agreement and is seeking recovery of monetary damages                for                the loss of the remaining 27 years of management fees, inclusive                of                renewal periods under the contract, attorneys’ fees and costs. Pursuant to                the dispute resolution provisions of the management agreement, the                disputed matter is pending before a single judge arbitrator at the                JAMS                Arbitration Tribunal in Chicago, Illinois. The arbitration hearing                concluded in early October 2006, and the Company expects the arbitrator                to                render a decision by the end of the second quarter for the year ending                July 31, 2007. Cheeca Holdings, LLC, the entity owner of the hotel                property, asserts that RockResorts breached the management contract,                among                other alleged breaches, and seeks a ruling that it had a right to                terminate the management agreement and recovery of monetary damages,                attorneys’ fees and costs. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Real                Estate Reported EBITDA is highly dependent on, among other things,                the                timing of closings on real estate under contract. Changes to the                anticipated timing of closing on one or more real estate units could                materially impact Real Estate Reported EBITDA for a particular quarter                or                fiscal year. Additionally, the magnitude of real estate projects                currently                under development or contemplated could result in a significant increase                in Real Estate Reported EBITDA as these projects close, expected                in the                year ending July 31, 2008 and beyond. The profitability and/or viability                of current or proposed real estate development projects could be                adversely                affected by continued escalation in construction costs and/or a slow-down                in market demand, as well as project difficulties or delays and the                resulting potential negative financial impact associated with design                or                construction issues that may arise in the course of construction. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | The                Company and the minority shareholder in SSV have put and call rights                whereby starting on August 1, 2007, each of the Company and the minority                shareholder may call or put the remaining minority interest in SSV                to the                Company. Execution of the put or call by either party may modify                the                management agreement of SSV and could impact the Company’s ownership                percentage and the way the SSV business is managed. The Company has                entered into substantive discussions with the minority shareholder,                with                the intent of both parties being to extend the existing management                agreement. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**RESULTS        OF OPERATIONS**

***Summary***

|                                                   |   | **Three                  Months Ended** |
|--------------------------------------------------------|--------|-----------------------------------------|
|                                                   |   | **October                  31,**        |
|                                                   |   | **2006**                                |   | **2005** |   |
| Mountain                  Reported EBITDA              |   | $                                       | (32,488 | ) |   | $ | (31,164 | ) |   |
| Lodging                  Reported EBITDA               |   |                                    | 4,059 |   |   |   | 4,109 |   |   |
| Real                  Estate Reported EBITDA           |   |                                    | 804 |   |   |   | (2,607 | ) |   |
| Loss                  before benefit from income taxes |   |                                    | (58,714 | ) |   |   | (56,276 | ) |   |
| Net                  loss                              |   | $                                       | (35,815 | ) |   | $ | (34,329 | ) |   |

***Mountain        Segment***

|                                                                                                                                                                                              |   | **Three                  Months Ended** |   | **Percentage** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|----------------|
|                                                                                                                                                                                              |   | **October                  31,**        |   | **Increase**   |
|                                                                                                                                                                                              |   | **2006**                                |   |           | **2005** |   | **(Decrease)** |
| Lift                  tickets                                                                                                                                                                     | $      | --                                      |   | $              | -- |   | -- |   | % |
| Ski                  school                                                                                                                                                                       |   | --                                      |   |           | -- |   | -- |   | % |
| Dining                                                                                                                                                                                            |   | 3,887                                   |   |           | 3,506 |   | 10.9  |    | % |
| Retail/rental                                                                                                                                                                                     |   | 24,518                                  |   |           | 21,705 |   | 13.0  |   | % |
| Other                                                                                                                                                                                             |   | 17,759                                  |   |           | 15,066 |   | 17.9  |   | % |
| Total                  Mountain net operating revenue                                                                                                                                             |   | 46,164                                  |   |           | 40,277 |   | 14.6  |   | % |
| Total                  Mountain operating expense                                                                                                                                                 |   | 79,487                                  |   |           | 72,291 |   | 10.0  |   | % |
| Mountain                  equity investment income, net                                                                                                                                           |   | 835                                     |   |           | 850 |   | (1.8  | ) | % |
| Total                  Mountain Reported EBITDA                                                                                                                                                   | $      | (32,488                                 | )      | $              | (31,164 | ) | (4.2  | ) | % |
|                                                                                                                                                                                              |
| Total                  Mountain Reported EBITDA includes $1.0 million of stock-based compensation                  expense for the three months ended October 31, 2006 and                  2005. |
|                                                                                                                                                                                              |   |                                    |   |           |   |   |   |

***Lodging        Segment***

|                                                                                                                                                                                                                                     | **Three                  Months Ended** |           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|----------------|
|                                                                                                                                                                                                                                     | **October                  31,**        | **Percentage** |
|                                                                                                                                                                                                                                     | **2006**                                | **2005**       | **Decrease** |
| Total                  Lodging net operating revenue                                                                                                                                                                                     | $                                       | 40,408         |   | $ | 41,750 |   | (3.2 | ) | % |
| Total                  Lodging operating expense                                                                                                                                                                                         |                                    | 36,349         |   |   | 37,641 |   | (3.4 | ) | % |
| Total                  Lodging Reported EBITDA                                                                                                                                                                                           | $                                       | 4,059          |   | $ | 4,109 |   | (1.2 | ) | % |
|                                                                                                                                                                                                                                     |                                    |           |   |   |   |   |   |   |   |
| ADR                                                                                                                                                                                                                                      | $                                       | 149.94         |   | $ | 158.50 |   | (5.4 | ) | % |
| RevPAR                                                                                                                                                                                                                                   | $                                       | 55.25          |   | $ | 60.48 |   | (8.6 | ) | % |
|                                                                                                                                                                                                                                     |
| Total                  Lodging Reported EBITDA includes $333,000 and $406,000 of stock-based                  compensation expense for the three months ended October 31, 2006                  and 2005,                  respectively. |

***Real        Estate Segment***

|                                                                                                                                                                                                                                   | **Three                  Months Ended** |     | **Percentage** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|----------|----------------|
|                                                                                                                                                                                                                                   | **October                  31,**        |     | **Increase**   |
|                                                                                                                                                                                                                                   | **2006**                                | **2005** |           | **(Decrease)** |
| Single                  family unit and land sales                                                                                                                                                                                     | $                                       | --       |           | $ | 994 |   |   | (100.0 | ) | % |
| Multi-family                  unit and land sales                                                                                                                                                                                      |                                    | 25,522   |           |   | 2,287 |   |   | 1,016.0 |   | % |
| Other                                                                                                                                                                                                                                  |                                    | 1,400    |           |   | 112 |   |   | 1,150.0 |   | % |
| Total                  Real Estate net operating revenue                                                                                                                                                                               |                                    | 26,922   |           |   | 3,393 |   |   | 693.5 |   | % |
| Total                  Real Estate operating expense                                                                                                                                                                                   |                                    | 26,118   |           |   | 6,069 |   |   | 330.4 |   | % |
| Real                  Estate equity investment income, net                                                                                                                                                                             |                                    | --       |           |   | 69 |   |   | (100.0 | ) | % |
| Total                  Real Estate Reported EBITDA                                                                                                                                                                                     | $                                       | 804      |           | $ | (2,607 | ) |   | 130.8 |   | % |
|                                                                                                                                                                                                                                   |
| Real                  Estate Reported EBITDA includes $608,000 and $381,000 of stock-based                  compensation expense for the three months ended October 31, 2006                  and 2005,                  respectively. |

***Other        Items***

*Depreciation        and amortization*

*Relocation        and separation charges.*

*Investment        income, net.*

*Interest        expense, net.*

*Contract        dispute charges. *

*Gain/loss        on put option.*

*Income        taxes.*

***Reconciliation        of Non-GAAP measures***

|                                                                         | **Three                  Months Ended** |
|------------------------------------------------------------------------------|-----------------------------------------|
| **October                  31,**                                             |
| **2006**                                                                     |                                    | **2005** |
| Mountain                  Reported EBITDA                                    | $                                       | (32,488 | ) |   | $ | (31,164 | ) |
| Lodging                  Reported EBITDA                                     |                                    | 4,059 |   |   |   | 4,109 |   |
|                                                                         | Resort                  Reported EBITDA |   | (28,429 | ) |   |   | (27,055 | ) |
| Real                  Estate Reported EBITDA                                 |                                    | 804 |   |   |   | (2,607 | ) |
|                                                                         | Total                  Reported EBITDA  |   | (27,625 | ) |   |   | (29,662 | ) |
| Depreciation                  and amortization                               |                                    | (21,585 | ) |   |   | (18,923 | ) |
| Relocation                  and separation charges                           |                                    | (735 | ) |   |   | -- |   |
| Asset                  impairment charges                                    |                                    | -- |   |   |   | (136 | ) |
| Loss                  on disposal of fixed assets                            |                                    | (81 | ) |   |   | (240 | ) |
| Investment                  income, net                                      |                                    | 2,063 |   |   |   | 1,188 |   |
| Interest                  expense, net                                       |                                    | (8,936 | ) |   |   | (9,437 | ) |
| Contract                  dispute charges                                    |                                    | (3,605 | ) |   |   | -- |   |
| Loss                  on put options, net                                    |                                    | -- |   |   |   | (992) |   |
| Minority                  interest in loss of consolidated subsidiaries, net |                                    | 1,790 |   |   |   | 1,926 |   |
| Loss                  before benefit from income taxes                       |                                    | (58,714 | ) |   |   | (56,276 | ) |
| Benefit                  from income taxes                                   |                                    | 22,899 |   |   |   | 21,947 |   |
| Net                  loss                                                    |                                    | $ | (35,815 | ) |   | $ | (34,329 | ) |

**LIQUIDITY        AND CAPITAL RESOURCES**

***Significant        Sources of Cash***

***Significant        Uses of Cash***

***Covenants        and Limitations***

**OFF        BALANCE SHEET ARRANGEMENTS**

**FORWARD-LOOKING        STATEMENTS**

| *·  * | *economic                downturns;* |
|----------------------|--------------------------------------|
| *·  * | *terrorist                acts upon the United States;* |
|----------------------|---------------------------------------------------------|
| *·  * | *threat                of or actual war;* |
|----------------------|-------------------------------------------|
| *·  * | *unfavorable                weather conditions;* |
|----------------------|--------------------------------------------------|
| *·  * | *our                ability to obtain financing on terms acceptable to us to finance                our real                estate investments, capital expenditures and growth                strategy;* |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *·  * | *our                ability to continue to grow our resort and real estate                operations;* |
|----------------------|--------------------------------------------------------------------------------------------------------|
| *·  * | *competition                in our Mountain and Lodging                businesses;* |
|----------------------|-------------------------------------------------------------------------------------|
| *·  * | *termination                of existing hotel management                contracts;* |
|----------------------|-------------------------------------------------------------------------------------|
| *·  * | *adverse                changes in real estate markets;* |
|----------------------|----------------------------------------------------------|
| *·  * | *failure                to commence or complete the planned real estate development                projects;* |
|----------------------|---------------------------------------------------------------------------------------------------------------|
| *·  * | *failure                to achieve the anticipated short and long-term financial benefits                from the                planned real estate development                projects;* |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *·  * | *shortages                or rising costs in construction                materials;* |
|----------------------|--------------------------------------------------------------------------------------|
| *·  * | *implications                arising from new Financial Accounting Standards Board                (“FASB”)/governmental legislation, rulings or                interpretations;* |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *·  * | *our                reliance on government permits or approvals for our use of federal                land or                to make operational improvements;* |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *·  * | *our                ability to integrate and successfully operate future acquisitions;                and* |
|----------------------|------------------------------------------------------------------------------------------------------------|
| *·  * | *adverse                consequences of current or future legal                claims.* |
|----------------------|-----------------------------------------------------------------------------------------|

**ITEM        3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES        ABOUT MARKET RISK.**

*Interest        Rate Risk. *

**ITEM        4.  CONTROLS AND PROCEDURES.**

**Disclosure        Controls and Procedures**

**Changes        in Internal Control over Financial Reporting**

**PART        II OTHER INFORMATION **

**ITEM        1.  LEGAL        PROCEEDINGS.**

**ITEM        1A. RISK FACTORS.**

**ITEM        2.  UNREGISTERED SALES OF        EQUITY SECURITIES AND USE OF PROCEEDS.**

***Repurchase        of equity securities***

|  **Period**                                          |   |  **Total                    Number of Shares Purchased** |   |    |  **Average                    Price Paid per Share** |   |   |  **Total                    Number of Shares Purchased as Part of Publicly Announced Plans                    or Programs                    (1)** |   |   |  **Maximum                    Number of Shares that May Yet Be Purchased Under the Plans or                    Programs                    (1)** |   |
|-----------------------------------------------------------|--------|---------------------------------------------------------------|--------|---------|-----------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| August                    1, 2006 - August 31, 2006       |   |  --                                                      |   |  $ |  --                                                  |   |   |  --                                                                                                                                                |   |   |  2,684,900                                                                                                                                       |   |
| September                    1, 2006 - September 30, 2006 |   | --                                                            |   |    | --                                                        |   |   | --                                                                                                                                                      |   |   | 2,684,900                                                                                                                                             |   |
| October                    1, 2006 - October 31, 2006     |   | 190,700                                                       |   |    | 39.33                                                     |   |   |  190,700                                                                                                                                           |   |   | 2,494,200                                                                                                                                             |   |
| Total                                                     |   | 190,700                                                       |   |  $ | 39.33                                                     |   |   |  190,700                                                                                                                                           |   |   |                                                                                                                                                  |   |

** **

**ITEM        3.  DEFAULTS UPON SENIOR SECURITIES.**

**ITEM        4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY        HOLDERS.**

**ITEM        5.  OTHER INFORMATION.**

None.

**ITEM        6.  EXHIBITS.**

| **Exhibit                  Number** | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **Sequentially                  Numbered Page** |
|-------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|  3.1                           |  Amended                  and Restated Certificate of Incorporation of Vail Resorts, Inc.,                  dated                  January 5, 2005 (incorporated by reference to Exhibit 3.1 on Form                  10-Q of                  Vail Resorts, Inc. for the quarter ended January 31,                  2005).                                                                                                                                                                                                                                                          |                                            |
|  3.2                           |  Amended                  and Restated By-Laws (incorporated by reference to Exhibit 3.1                  on Form 8-K                  of Vail Resorts, Inc. filed on September 30, 2004).                                                                                                                                                                                                                                                                                                                                                                                           |                                            |
|  4.1(a)                        |  Purchase                  Agreement, dated as of January 15, 2004 among Vail Resorts, Inc.,                  the                  guarantors named on Schedule I thereto, Banc of America Securities                  LLC,                  Deutsche Banc Securities, Inc., Bear, Stearns & Co. Inc., Lehman                  Brothers Inc., Piper Jaffray & Co. and Wells Fargo Securities LLC                  (incorporated by reference to Exhibit 4.2(c) on Form 10-Q of Vail                  Resorts,                  Inc. for the quarter ended January 31, 2004). |                                            |
|  4.1(b)                        |  Supplemental                  Purchase Agreement, dated as of January 22, 2004 among Vail Resorts,                  Inc.,                  the guarantors named thereto, Banc of America Securities LLC, Deutsche                  Banc Securities, Inc., Bear, Stearns & Co. Inc., Lehman Brothers Inc.,                  Piper Jaffray & Co. and Wells Fargo Securities LLC (incorporated by                  reference to Exhibit 4.2(d) on Form 10-Q of Vail Resorts, Inc.                  for the                  quarter ended January 31, 2004).                   |                                            |
|  4.2(a)                        |  Indenture,                  dated as of January 29, 2004, among Vail Resorts, Inc., the guarantors                  therein and the Bank of New York as Trustee (incorporated by reference                  to                  Exhibit 4.1 on Form 8-K of Vail Resorts, Inc. filed on February                  2,                  2004).                                                                                                                                                                                                                                         |                                            |
|  4.2(b)                        |  Supplemental                  Indenture dated as of March 10, 2006 to Indenture dated as of January                  29,                  2004 among Vail Resorts, Inc., as Issuer, the Guarantors named                  therein, as                  Guarantors, and The Bank of New York, as Trustee (incorporated                  by                  reference to Exhibit 10.34 on Form 10-Q of Vail Resorts, Inc. for                  the                  quarter ended January 31, 2006).                                                                                 |                                            |
|  4.3                           |  Form                  of Global Note (incorporated by reference to Exhibit 4.1 on Form                  8-K of                  Vail Resorts, Inc. filed on February 2, 2004).                                                                                                                                                                                                                                                                                                                                                                                                      |                                            |
|  4.4                           |  Registration                  Rights Agreement dated as of January 29, 2004 among Vail Resorts,                  Inc.,                  the guarantors signatory thereto, Banc of America Securities LLC,                  Deutsche                  Banc Securities, Inc., Bear, Stearns & Co. Inc., Lehman Brothers Inc.,                  Piper Jaffray & Co. and Wells Fargo Securities LLC (incorporated by                  reference to Exhibit 4.5(c) on Form 10-Q of Vail Resorts, Inc.                  for the                  quarter ended January 31, 2004). |                                            |
|  4.5                           |  Conversion                  and Registration Rights Agreement between Vail Resorts, Inc. and                  Apollo                  Ski Partners, L.P. dated as of September 30, 2004 (incorporated                  by                  reference to Exhibit 10.1 on Form 8-K of Vail Resorts, Inc. filed                  on                  September 30, 2004).                                                                                                                                                                                                              |                                            |
|  4.6                           |  Termination                  Agreement, dated as of October 5, 2004, by and among Vail Resorts,                  Inc.,                  Ralcorp Holdings, Inc. and Apollo Ski Partners, L.P. (incorporated                  by                  reference to Exhibit 99.6 on Form 10-Q of Vail Resorts, Inc. for                  the                  quarter ended October 31, 2004).                                                                                                                                                                                             |                                            |
|  10.1                          |  Form                  of Restricted Share [Unit] Agreement (incorporated by reference                  to Exhibit                  10.20 on Form 10-K for the year ended July 31, 2006).                                                                                                                                                                                                                                                                                                                                                                                            |                                            |
|  10.2                          |  Form                  of Share Appreciation Rights Agreement (incorporated by reference                  to                  Exhibit 10.22 on Form 10-K for the year ended July 31,                  2006).                                                                                                                                                                                                                                                                                                                                                                         |                                            |
|  31.1                          |  Certifications                  of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                              |  14                                        |
|  31.2                          |  Certifications                  of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                              |  15                                        |
|  32                            |  Certifications                  of Chief Executive Officer and Chief Financial Officer pursuant                  to 18                  U.S.C. Section 1350 as adopted pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                  |  16                                        |

| b)  Exhibits                                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                      |
| The                  exhibits filed herewith as indicated in the exhibit listed above                  following                  the Signatures section of this                  report. |

**SIGNATURES**

|                                        |                                                 |  Vail                  Resorts, Inc.  |
|---------------------------------------------|------------------------------------------------------|--------------------------------------------|
|                                   |                                            |                                  |
| Date: December                11, 2006 | By:                                        | /s/ Jeffrey                  W. Jones |
|                                        | Jeffrey                  W. Jones                    |
|                                        | Senior                  Executive Vice President and |
|                                        | Chief                  Financial Officer             |
|                                        | (Chief                  Accounting Officer and       |
|                                        |  Duly                  Authorized Officer)      |