VAIL, Colo. (AP) -- Vail Resorts Inc. blamed effects of the war in Iraq for its first fiscal year net loss in 10 years Thursday and announced restatements that lowered its reported profits since fiscal 1998 by $3.3 million.

Chief executive Adam Aron said he expected the company to swing to a profit in the next fiscal year.

The net loss of $33.7 million, or 96 cents per share, for the quarter ending July 31 was up from $33.3 million, or 95 cents per share, during the same period a year ago.

For the fiscal year, losses were $8.5 million, or 24 cents per share, compared to profits of $7.1 million, or 20 cents per share, for fiscal 2002.

Analysts surveyed by Thomson First Call had expected losses of 88 cents per share for the quarter and 5 cents for the year. Vail shares closed up 22 cents to $14.95 Thursday on the New York Stock Exchange.

Fourth-quarter revenue was $79.1 million, down 3.6 percent from revenue a year ago, bringing fiscal 2003 revenue to $710.4 million, up 15.5 percent from fiscal 2002.

Skier visits reached 5.7 million at its five resorts including the newly acquired Heavenly, up from 4.7 million in fiscal 2002.

"Far and away, the biggest problem we had to address in fiscal 2003 was the build up to and actual war with Iraq during our most profitable months, as well as the war's aftermath, which taken together depressed the company's mountain and lodging revenues from January through fiscal year-end in July," Aron said.

He said startup expenses for some lodging operations, severance expenses from layoffs, rising health care costs and litigation involving undeveloped land near Vail Mountain led to at least $13.8 million in charges.

However, Aron was optimistic for 2004. He said year-to-date revenues booked into Vail Resorts' reservations system are up 8 percent from last year, and Colorado Front Range season pass sales are up 5 percent.

He forecast fiscal 2004 net income of $2 million to $10 million.

The restatements of $3.3 million for 1998 to 2002 related to changes in accounting for depreciation expenses, interest from investments, losses from the company's seasonal employee housing properties and Aron's compensation, the company said.

About $1.15 million in reduced net income came because the company previously had not fully recorded losses from employee housing, and about $1.44 million was due to accounting changes in Aron's compensation, the company said.

Vail Resorts operates the Vail, Beaver Creek, Breckenridge and Keystone resorts in Colorado, Heavenly in California and Nevada, and the Grand Teton Lodge Co. in Jackson, Wyo.

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