BROOMFIELD, Colo., June 6, 2019 /CNW/ -- Vail Resorts, Inc.
(NYSE: MTN) today reported results for the third quarter of fiscal
2019 ended April 30, 2019, as well as
the Company's results of its early season pass sales for the
2019/2020 North American ski season.
Highlights
- Net income attributable to Vail Resorts, Inc. was $292.1 million for the third fiscal quarter of
2019 compared to net income attributable to Vail Resorts, Inc. of
$256.3 million in the same period in
the prior year.
- Resort Reported EBITDA was $480.7
million for the third fiscal quarter of 2019, which includes
the operations for acquisitions completed during the fiscal year
(Falls Creek, Hotham, Triple Peaks and Stevens Pass) prospectively from each
acquisition date, and $4.9 million of
acquisition and integration related expenses. In the same period in
the prior year, Resort Reported EBITDA was $419.7 million, which included $3.5 million of acquisition and integration
related expenses.
- The Company updated its fiscal 2019 guidance range and is now
expecting Resort Reported EBITDA, on a comparable basis with its
prior guidance issued on March 8,
2019 which excluded the expected Resort Reported EBITDA
contribution from the Falls Creek and Hotham resorts, to be between
$700 million and $710 million. For fiscal 2019, Falls Creek and
Hotham resorts are expected to contribute $2
million of Resort Reported EBITDA, including a $3 million stamp duty payment and $1 million of integration expenses. Including the
impact of Falls Creek and Hotham, the Company expects Resort
Reported EBITDA to be between $702
million and $712 million,
which includes an estimated $16
million of acquisition, stamp duty and integration related
expenses and $4 million of
unfavorable foreign exchange as a result of the U.S. Dollar
strengthening relative to the time of our initial guidance issued
in September 2018.
- Season pass sales through May 28,
2019 for the upcoming 2019/2020 North American ski season
increased approximately 9% in units and 13% in sales dollars as
compared to the period in the prior year through May 29, 2018, excluding sales of all military
pass products in both periods. Pass sales include Stevens Pass and Triple Peaks pass sales in
both periods and are adjusted to eliminate the impact of foreign
currency by applying an exchange rate of $0.74 between the Canadian dollar and U.S. dollar
to the current period and the prior period for Whistler Blackcomb
pass sales.
Unless otherwise noted, the commentary on results for the
quarter ended April 30, 2019 and
guidance for the fiscal year ending July 31,
2019 include the results of acquisitions completed during
the fiscal year prospectively from the acquisition date, which
include Falls Creek and Hotham (acquired April 2019), Triple Peaks (acquired September 2018) and Stevens Pass (acquired August 2018).
Commenting on the Company's fiscal 2019 third quarter results,
Rob Katz, Chief Executive Officer,
said, "We are pleased with our overall results for the quarter and
for the full 2018/2019 North American ski season, with strong
growth in visitation and spending compared to the prior year,
including a strong finish to the season with good conditions across
our western U.S. destination resorts. After the challenging early
season period for destination visitation, our results for the
remainder of the season were largely in line with our original
expectations. Our results throughout the 2018/2019 North American
ski season highlight the growth and stability resulting from our
season pass, the benefit of our geographic diversification, the
investments we make in our resorts and the success of our
sophisticated, data-driven marketing efforts.
"Our Colorado, Utah and Tahoe
resorts experienced strong local and destination visitation
throughout the third fiscal quarter, supported by favorable
conditions across the western U.S. which also allowed for an
extension of the ski season for select resorts in Colorado and Tahoe. The Company continued
experiencing relative weakness in international visitation compared
to the prior year, particularly at Whistler Blackcomb.
"Total lift revenue increased 16.4%, driven by a 14.3% growth in
skier visitation primarily from Triple Peaks and Stevens Pass. Total effective ticket price
("ETP") increased 1.8% in the third quarter compared to the prior
year, primarily due to price increases in both our lift ticket and
season pass products, partially offset by higher skier visitation
by season pass holders, lower ETP from the acquired Triple Peaks
and Stevens Pass resorts and the
new Military Epic Pass. Excluding season pass holders, ETP
increased 5.5% compared to the prior year. The growth in visitation
and spending compared to the prior year, along with the addition of
Triple Peaks and Stevens Pass,
drove a 9.4% increase in ski school revenue, an 11.7% increase in
dining revenue and a 9.5% increase in retail/rental revenue
compared to the prior year."
Regarding the Company's Lodging segment, Katz said, "Our lodging
results for the third fiscal quarter were positive, with revenue
(excluding payroll cost reimbursements) increasing 16.8% compared
to the prior year primarily due to the incremental operations of
Triple Peaks. The average daily rate ("ADR") decreased compared to
the prior year primarily as a result of the inclusion of the Triple
Peaks resorts, as well as incremental managed Tahoe lodging
properties that we did not manage in the prior year, all of which
generate a lower ADR as compared to our broader Lodging
segment."
Regarding the Company's outlook, Katz said, "Given the strong
finish to the season, our successful season extensions and our
continued focus on cost discipline, we now expect Resort Reported
EBITDA, on a comparable basis with our prior guidance issued
March 8, 2019 which excluded the
expected Resort Reported EBITDA contribution from the Falls Creek
and Hotham resorts, to be between $700
million and $710 million. For
fiscal 2019, Falls Creek and Hotham resorts are expected to
contribute approximately $2 million
of Resort Reported EBITDA, including a $3
million stamp duty payment and $1
million of integration expenses. Including the impact of
Falls Creek and Hotham, the Company expects net income attributable
to Vail Resorts, Inc. for fiscal 2019 to be between $277 million and $297
million and Resort Reported EBITDA to be between
$702 million and $712 million, which includes an estimated
$16 million of acquisition, stamp
duty and integration related expenses and $4
million of unfavorable foreign exchange as a result of the
U.S. Dollar strengthening relative to the time of our initial
guidance issued in September
2018."
Katz continued, "Our balance sheet remains strong and the
business continues to generate robust cash flow. We ended the third
quarter with $59.6 million of cash on
hand and our Net Debt was 1.8 times trailing twelve months Total
Reported EBITDA. I am also very pleased to announce that our Board
of Directors has declared a quarterly cash dividend on Vail Resorts
common stock. The quarterly dividend will be $1.76 per share of common stock and will be
payable on July 11, 2019, to
shareholders of record on June 26,
2019."
Operating Results
A more complete discussion of our operating results can be found
within the Management's Discussion and Analysis of Financial
Condition and Results of Operations section of the Company's Form
10-Q for the third quarter ended April 30,
2019, which was filed today with the Securities and Exchange
Commission. The discussion of operating results below compares the
results for the quarter ended April 30,
2019 to the comparable quarter ended April 30, 2018 unless otherwise noted. The
following are segment highlights:
Mountain Segment
- Total lift revenue increased $74.2
million, or 16.4%, to $526.9
million primarily due to strong North American pass sales
growth for the 2018/2019 North American ski season, increased
non-pass skier visitation at our western U.S. resorts and
incremental revenue from Triple Peaks and Stevens Pass.
- Ski school revenue increased $9.5
million, or 9.4%, and dining revenue increased $8.3 million, or 11.7%, primarily as a result of
incremental revenue from Triple Peaks and Stevens Pass and increased revenue at our
western U.S. resorts as a result of higher skier visitation.
- Retail/rental revenue increased $9.9
million, or 9.5%, primarily due to higher sales volumes at
stores proximate to our western U.S. resorts, as well as
incremental revenue from Triple Peaks and Stevens Pass.
- Operating expense increased $46.4
million, or 12.7%, primarily due to incremental operating
expenses from Triple Peaks, Stevens
Pass, Falls Creek and Hotham, including acquisition, stamp
duty and integration related expenses.
- Mountain Reported EBITDA increased $58.8
million, or 14.4%, primarily due to strong North American
pass sales growth for the 2018/2019 North American ski season, the
incremental operations of Triple Peaks and Stevens Pass, and strong growth in visitation
and spending at our western U.S. resorts. Mountain Reported EBITDA
includes $4.0 million of stock-based
compensation expense for the three months ended April 30, 2019 compared to $3.8 million in the same period in the prior
year.
Lodging Segment
- Lodging segment net revenue (excluding payroll cost
reimbursements) increased $10.9
million, or 16.8%, primarily due to incremental revenue from
the Triple Peaks resorts, incremental managed Tahoe lodging
properties that we did not manage in the prior year and an increase
in revenue at our lodging properties in Park City.
- ADR decreased 3.4% at the Company's owned hotels and managed
condominiums compared to the same period in the prior year,
primarily as a result of the inclusion of Triple Peaks resorts as
well as incremental managed Tahoe lodging properties that we did
not manage in the prior year, all of which generate a lower ADR as
compared to our broader Lodging segment.
- Lodging Reported EBITDA increased $2.2
million, or 20.5%, which includes $0.8 million of stock-based compensation expense
for the both the three months ended April
30, 2019 and 2018.
- During the third quarter of fiscal 2019, the Company sold the
Village at Breckenridge Hotel for proceeds of $6.2 million, which resulted in a gain of
$0.6 million, and did not impact
Lodging Reported EBITDA.
Resort - Combination of Mountain and Lodging Segments
- Resort net revenue increased $116.4
million, or 13.8%, to $957.7
million primarily due to increased visitation and spending
at our U.S. resorts, strong North American pass sales growth for
the 2018/2019 North American ski season and incremental revenue
from Triple Peaks and Stevens
Pass.
- Resort Reported EBITDA was $480.7
million for the three months ended April 30, 2019, an increase of $61.0 million, or 14.5%, compared to the same
period in the prior year, which includes $4.9 million of acquisition and integration
related expenses and approximately $3
million of unfavorability from currency translation
primarily related to operations at Whistler Blackcomb, which the
Company calculated on a constant currency basis by applying current
period foreign exchange rates to the prior period results.
Real Estate
- The Company closed on two land sales during the third quarter
of fiscal 2019 with third party developers at Keystone (One River Run site) and Breckenridge (East Peak 8 site) for proceeds
of approximately $16.0 million
(received during the quarter), including $4.8 million associated with the sale of density
for the Breckenridge property. The
land parcel sales were accounted for as financing arrangements as a
result of the Company's continuing involvement with the underlying
assets that were sold, including but not limited to, the obligation
to repurchase finished commercial space from the development
projects upon completion. As a result, the estimated gain of
$3.6 million associated with the East
Peak 8 site and the estimated $3.2
million loss associated with the One River Run site will be
deferred until the Company no longer maintains continuing
involvement. Both transactions will be recorded as long-term
financings until the gain or loss is recognized. Additionally, the
Company's future obligation to repurchase finished commercial space
in the two completed projects, as well as other related capital
spending, will result in total estimated capital expenditures of up
to approximately $9.5 million in
future fiscal years.
- Net Real Estate Cash Flow for the quarter was $15.4 million, an increase of $12.7 million compared to the prior year period,
primarily due to the cash flows generated from the sales
transactions discussed above.
Total Performance
- Total net revenue increased $113.5
million, or 13.4%, to $958.0
million.
- Net income attributable to Vail Resorts, Inc. was $292.1 million, or $7.12 per diluted share, for the third quarter of
fiscal 2019 compared to net income attributable to Vail Resorts,
Inc. of $256.3 million, or
$6.17 per diluted share, in the third
fiscal quarter of the prior year. Additionally, fiscal 2019 third
quarter net income included the after-tax effect of acquisition and
integration related expenses of approximately $4.1 million and approximately $1 million of unfavorability from currency
translation primarily related to operations at Whistler Blackcomb,
which the Company calculated by applying current period foreign
exchange rates to the prior period results.
Return of Capital
The Company declared a quarterly cash dividend of $1.76 per share of Vail Resorts common stock that
will be payable on July 11, 2019 to
shareholders of record on June 26,
2019. Additionally, a Canadian dollar equivalent dividend on
the exchangeable shares of Whistler Blackcomb Holdings Inc. will be
payable on July 11, 2019 to
shareholders of record on June 26,
2019. The exchangeable shares were issued to certain
Canadian persons in connection with our acquisition of Whistler
Blackcomb Holdings Inc.
Season Pass Sales
Commenting on the Company's season pass sales for the upcoming
2019/2020 North American ski season, Katz said, "We are very
pleased with the results for our season pass sales to date, which
showed strong growth over the record pass sales results we saw last
spring, with particular strength over the Memorial Day deadline.
Pass sales through May 28, 2019 for
the upcoming 2019/2020 North American ski season increased
approximately 9% in units and 13% in sales dollars, as compared to
the prior year period through May 29,
2018, excluding sales of all military pass products in both
periods, including Stevens Pass
and Triple Peaks pass sales in both periods and adjusted to
eliminate the impact of foreign currency by applying an exchange
rate of $0.74 between the Canadian
dollar and U.S. dollar to the current period and the prior period
for Whistler Blackcomb pass sales. Military pass sales are off to a
strong start but remain in our verification period and we will plan
to provide further updates on sales trends as the selling season
progresses."
Katz continued, "Our pass sales growth was primarily driven by
strong results in our destination markets. In particular, we
have very strong growth in our Northeast markets, which are
benefiting from the first full year of pass sales with Stowe, Okemo and Mount Sunapee included with unlimited access
on the Epic and Epic Local pass products. Our broader destination
markets continue to perform well as we expand the resorts available
in our network, including the addition of Sun Valley and Rusutsu,
Japan this year, and through our
enhanced ability to reach destination guests with our data-driven
marketing. Our local markets continue to show solid growth, driven
by favorable results among our local guests in the Whistler
Blackcomb region, with particular strength in Seattle with the first full pass sales season
with access to Stevens Pass. We
are also seeing strong results from our Northern California and Utah guests, partially offset by more modest
sales growth in our Colorado local
market. We have seen good growth from our new Epic Day Pass, though
it was not material to our overall pass sales dollar growth in the
spring and we anticipate that sales of this new product will be
primarily concentrated in the fall. It is important to note that as
we drive more guests to purchase passes in the spring, we believe
the full year pass sales dollar growth rate, excluding military
pass sales, will be lower than our spring growth rate with stronger
relative performance in late fall versus Labor Day due to the
introduction of Epic Day Pass."
Regarding Epic Australia Pass sales, Katz commented, "The 2019
Australia ski season kicked off early at Perisher, and we are very
pleased with ongoing sales of the Epic Australia Pass, which end on
June 18, 2019 and are up
approximately 19% in units through June 2,
2019, as compared to the prior year period through
June 3, 2018, representing another
significant year of growth and over 65% growth in the past three
years. This year, Epic Australia Pass sales have benefited from the
addition of Rusutsu in Japan.
Given the timing of the Falls Creek and Hotham transaction closing
in April, we won't see the full benefit of the Falls Creek and
Hotham acquisitions until next year."
Updated Outlook
- Net income attributable to Vail Resorts, Inc., including the
impact of Falls Creek and Hotham, is expected to be between
$277 million and $297 million for fiscal 2019.
- Resort Reported EBITDA, including the impact of Falls Creek and
Hotham, is expected to be between $702
million and $712 million,
which includes an estimated $16
million of acquisition, stamp duty and integration related
expenses and $4 million of
unfavorable foreign exchange as a result of the U.S. Dollar
strengthening relative to the time of our initial guidance issued
in September 2018. For fiscal 2019,
Falls Creek and Hotham resorts are expected to contribute
approximately $2 million of Resort
Reported EBITDA, including a $3
million stamp duty payment and $1
million of integration expenses. The updated outlook for
fiscal year 2019 is predicated on current Canadian and Australian
foreign exchange rates of $0.74 and
$0.69, respectively, for each
currency to the U.S. dollar for the remainder of the fiscal
year.
- Resort EBITDA Margin is expected to be approximately 31.1% in
fiscal 2019 at the midpoint of our guidance range.
- Fiscal 2019 Real Estate Reported EBITDA is expected to be
between negative $5 million and
negative $4 million.
The following table reflects the forecasted guidance range for
the Company's fiscal year ending July 31,
2019, for Reported EBITDA (after stock-based compensation
expense) and reconciles such Reported EBITDA guidance to net income
attributable to Vail Resorts, Inc. guidance for fiscal 2019.
|
Fiscal 2019
Guidance
|
|
(In
thousands)
|
|
For the Year
Ending
|
|
July 31, 2019
(6)
|
|
Low End
Range
|
|
High
End Range
|
Mountain Reported
EBITDA (1)
|
$
|
673,000
|
|
|
$
|
683,000
|
|
Lodging Reported
EBITDA (2)
|
28,000
|
|
|
30,000
|
|
Resort Reported
EBITDA (3)
|
702,000
|
|
|
712,000
|
|
Real Estate Reported
EBITDA
|
(5,000)
|
|
|
(4,000)
|
|
Total Reported
EBITDA
|
697,000
|
|
|
708,000
|
|
Depreciation and
amortization
|
(219,000)
|
|
|
(215,000)
|
|
Interest expense,
net
|
(80,000)
|
|
|
(77,000)
|
|
Other
(4)
|
(8,800)
|
|
|
(6,300)
|
|
Income before
provision for income taxes
|
389,200
|
|
|
409,700
|
|
Provision for income
taxes (5)
|
(88,200)
|
|
|
(92,700)
|
|
Net income
|
301,000
|
|
|
317,000
|
|
Net income
attributable to noncontrolling interests
|
(24,000)
|
|
|
(20,000)
|
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
277,000
|
|
|
$
|
297,000
|
|
|
(1) Mountain Reported EBITDA includes
approximately $16 million of acquisition, stamp duty and
integration related expenses specific to Triple Peaks, Stevens
Pass, Stowe, Falls Creek and Hotham. Mountain Reported EBITDA also
includes approximately $17 million of stock-based
compensation.
|
|
(2)
Lodging Reported EBITDA includes approximately $3 million of
stock-based compensation.
|
|
(3) The Company provides Reported
EBITDA ranges for the Mountain and Lodging segments, as well as for
the two combined. The low and high of the expected ranges provided
for the Mountain and Lodging segments, while possible, do not sum
to the high or low end of the Resort Reported EBITDA range provided
because we do not expect or assume that we will hit the low or high
end of both ranges.
|
|
(4) Our guidance includes certain
known changes in the fair value of the contingent consideration
based solely on the passage of time and resulting impact on present
value. Guidance excludes any change based upon, among other things,
financial projections including long-term growth rates for Park
City, which such change may be material. Separately, the
intercompany loan associated with the Whistler Blackcomb
transaction requires foreign currency remeasurement to Canadian
dollars, the functional currency of Whistler Blackcomb. Our
guidance excludes any forward looking change related to foreign
currency gains or losses on the intercompany loans, which such
change may be material.
|
|
(5) The
fiscal 2019 provision for income taxes may be impacted by excess
tax benefits primarily resulting from vesting and exercises of
equity awards. Our fiscal 2019 estimated provision for income
taxes does not include the impact, if any, of unknown future
exercises of employee equity awards, which could have a material
impact given that a significant portion of our awards are
in-the-money.
|
|
(6) Guidance estimates are predicated
on an exchange rate of $0.74 between the Canadian Dollar and U.S.
Dollar, related to the operations of Whistler Blackcomb in Canada
and an exchange rate of $0.69 between the Australian Dollar and
U.S. Dollar, related to the operations of Perisher in
Australia.
|
Earnings Conference Call
The Company will conduct a conference call today at 5:00 p.m. eastern time to discuss the financial
results. The call will be webcast and can be accessed at
www.vailresorts.com in the Investor Relations section, or dial
(800) 239-9838 (U.S. and Canada)
or (323) 794-2551 (international). A replay of the conference call
will be available two hours following the conclusion of the
conference call through June 20,
2019, at 8:00 p.m. eastern
time. To access the replay, dial (888) 203-1112 (U.S. and
Canada) or (719) 457-0820
(international), pass code 1339656. The conference call will also
be archived at www.vailresorts.com.
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts, Inc., through its subsidiaries, is the leading
global mountain resort operator. The Company's subsidiaries operate
17 world-class mountain resorts and three urban ski areas,
including Vail, Beaver Creek, Breckenridge, Keystone and Crested
Butte in Colorado;
Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake
Tahoe area of California
and Nevada; Whistler Blackcomb in
British Columbia, Canada;
Stowe and Okemo in Vermont; Mount
Sunapee in New Hampshire;
Stevens Pass in Washington; Perisher in New South Wales, Australia; Falls Creek and
Hotham in Victoria, Australia;
Wilmot Mountain in Wisconsin; Afton Alps
in Minnesota and
Mt. Brighton in Michigan. Vail
Resorts owns and/or manages a collection of casually elegant
hotels under the RockResorts brand, as well as the Grand Teton
Lodge Company in Jackson Hole, Wyoming. Vail Resorts
Development Company is the real estate planning and
development subsidiary of Vail Resorts, Inc. Vail
Resorts is a publicly held company traded on the New York
Stock Exchange (NYSE: MTN). The Vail Resorts company
website is www.vailresorts.com and consumer website
is www.snow.com.
Forward-Looking Statements
Certain statements discussed in this press release and on the
conference call, other than statements of historical information,
are forward-looking statements within the meaning of the federal
securities laws, including our expectations regarding our fiscal
2019 performance, including our expected net income, Resort
Reported EBITDA, the Resort Reported EBITDA that Falls Creek and
Hotham are expected to contribute; Resort EBITDA margin and Real
Estate Reported EBITDA; our expectations related to the
Keystone and Breckenridge land sales made during the
quarter; the payment of dividends; our expected capital projects;
and sales patterns and expectations related to our season pass
products. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. All forward-looking statements are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those projected. Such risks and uncertainties
include but are not limited to prolonged weakness in general
economic conditions, including adverse effects on the overall
travel and leisure related industries; unfavorable weather
conditions or the impact of natural disasters; risks related to our
reliance on information technology, including our failure to
maintain the integrity of our customer or employee data; risks
related to cyber-attacks; willingness of our guests to travel due
to terrorism, the uncertainty of military conflicts or outbreaks of
contagious diseases, and the cost and availability of travel
options and changing consumer preferences; the seasonality of our
business combined with adverse events that occur during our peak
operating periods; competition in our mountain and lodging
businesses; high fixed cost structure of our business; our ability
to fund resort capital expenditures; risks related to a disruption
in our water supply that would impact our snowmaking capabilities
and operations; our reliance on government permits or approvals for
our use of public land or to make operational and capital
improvements; risks associated with obtaining governmental or third
party approvals; risks related to federal, state, local and foreign
government laws, rules and regulations; risks related to changes in
security and privacy laws and regulations which could increase our
operating costs and adversely affect our ability to market our
products and services effectively; our ability to hire and retain a
sufficient seasonal workforce; risks related to our workforce,
including increased labor costs; loss of key personnel; adverse
consequences of current or future legal claims; a deterioration in
the quality or reputation of our brands, including our ability to
protect our intellectual property and the risk of accidents at our
mountain resorts; our ability to successfully integrate acquired
businesses, or that acquired businesses may fail to perform in
accordance with expectations, including Triple Peaks, Stevens Pass, Falls Creek, Hotham or future
acquisitions; our ability to satisfy the requirements of Section
404 of the Sarbanes-Oxley Act of 2002, with respect to acquired
businesses; risks associated with international operations;
fluctuations in foreign currency exchange rates where the Company
has foreign currency exposure, primarily the Canadian and
Australian dollars; changes in accounting judgments and estimates,
accounting principles, policies or guidelines or adverse
determinations by taxing authorities; risks associated with
uncertainty of the impact of recently enacted tax reform
legislation in the United States;
a materially adverse change in our financial condition; and other
risks detailed in the Company's filings with the Securities and
Exchange Commission, including the "Risk Factors" section of the
Company's Annual Report on Form 10-K for the fiscal year ended
July 31, 2018, which was filed on
September 28, 2018.
All forward-looking statements attributable to us or any persons
acting on our behalf are expressly qualified in their entirety by
these cautionary statements. All guidance and forward-looking
statements in this press release are made as of the date hereof and
we do not undertake any obligation to update any forecast or
forward-looking statements whether as a result of new information,
future events or otherwise, except as may be required by law.
Statement Concerning Non-GAAP Financial Measures
When reporting financial results, we use the terms Resort
Reported EBITDA, Total Reported EBITDA, Resort EBITDA Margin, Net
Debt and Net Real Estate Cash Flow, which are not financial
measures under accounting principles generally accepted in
the United States of America
("GAAP"). Resort Reported EBITDA, Total Reported EBITDA, Resort
EBITDA Margin, Net Debt and Net Real Estate Cash Flow should not be
considered in isolation or as an alternative to, or substitute for,
measures of financial performance or liquidity prepared in
accordance with GAAP. In addition, we report segment Reported
EBITDA (i.e. Mountain, Lodging and Real Estate), the measure of
segment profit or loss required to be disclosed in accordance with
GAAP. Accordingly, these measures may not be comparable to
similarly-titled measures of other companies. Additionally, with
respect to discussion of impacts from currency, the Company
calculates the impact by applying current period foreign exchange
rates to the prior period results, as the Company believes that
comparing financial information using comparable foreign exchange
rates is a more objective and useful measure of changes in
operating performance.
Reported EBITDA (and its counterpart for each of our segments)
has been presented herein as a measure of the Company's
performance. The Company believes that Reported EBITDA is an
indicative measurement of the Company's operating performance, and
is similar to performance metrics generally used by investors to
evaluate other companies in the resort and lodging industries. The
Company defines Resort EBITDA Margin as Resort Reported EBITDA
divided by Resort net revenue. The Company believes Resort EBITDA
Margin is an important measurement of operating performance. The
Company believes that Net Debt is an important measurement of
liquidity as it is an indicator of the Company's ability to obtain
additional capital resources for its future cash needs.
Additionally, the Company believes Net Real Estate Cash Flow is
important as a cash flow indicator for its Real Estate segment. See
the tables provided in this release for reconciliations of our
measures of segment profitability and non-GAAP financial measures
to the most directly comparable GAAP financial measures.
Vail Resorts,
Inc.
|
Consolidated
Condensed Statements of Operations
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
April 30,
|
|
Nine Months
Ended
April 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
revenue:
|
|
|
|
|
|
|
|
Mountain and Lodging
services and other
|
$
|
800,816
|
|
|
$
|
700,033
|
|
|
$
|
1,631,957
|
|
|
$
|
1,437,753
|
|
Mountain and Lodging
retail and dining
|
156,930
|
|
|
141,318
|
|
|
395,017
|
|
|
358,253
|
|
Resort net
revenue
|
957,746
|
|
|
841,351
|
|
|
2,026,974
|
|
|
1,796,006
|
|
Real
Estate
|
241
|
|
|
3,140
|
|
|
595
|
|
|
3,910
|
|
Total net
revenue
|
957,987
|
|
|
844,491
|
|
|
2,027,569
|
|
|
1,799,916
|
|
Segment operating
expense:
|
|
|
|
|
|
|
|
Mountain and Lodging
operating expense
|
349,647
|
|
|
301,760
|
|
|
894,392
|
|
|
780,539
|
|
Mountain and Lodging
retail and dining cost of products sold
|
59,615
|
|
|
54,289
|
|
|
157,996
|
|
|
147,205
|
|
General and
administrative
|
68,213
|
|
|
66,181
|
|
|
209,954
|
|
|
194,780
|
|
Resort operating
expense
|
477,475
|
|
|
422,230
|
|
|
1,262,342
|
|
|
1,122,524
|
|
Real Estate operating
expense, net
|
1,382
|
|
|
(597)
|
|
|
4,141
|
|
|
2,301
|
|
Total segment
operating expense
|
478,857
|
|
|
421,633
|
|
|
1,266,483
|
|
|
1,124,825
|
|
Other operating
(expense) income:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
(55,260)
|
|
|
(54,104)
|
|
|
(161,541)
|
|
|
(154,132)
|
|
Gain on sale of real
property
|
268
|
|
|
—
|
|
|
268
|
|
|
515
|
|
Change in estimated
fair value of contingent consideration
|
(1,567)
|
|
|
2,454
|
|
|
(3,467)
|
|
|
2,454
|
|
Gain (loss) on
disposal of fixed assets and other, net
|
27
|
|
|
(3,230)
|
|
|
505
|
|
|
(2,125)
|
|
Income from
operations
|
422,598
|
|
|
367,978
|
|
|
596,851
|
|
|
521,803
|
|
Mountain equity
investment income, net
|
445
|
|
|
607
|
|
|
1,555
|
|
|
1,094
|
|
Investment income and
other, net
|
1,727
|
|
|
736
|
|
|
2,697
|
|
|
1,516
|
|
Foreign currency loss
on intercompany loans
|
(3,319)
|
|
|
(9,502)
|
|
|
(5,180)
|
|
|
(6,511)
|
|
Interest expense,
net
|
(19,575)
|
|
|
(15,648)
|
|
|
(59,215)
|
|
|
(46,795)
|
|
Income before
(provision) benefit from income taxes
|
401,876
|
|
|
344,171
|
|
|
536,708
|
|
|
471,107
|
|
(Provision) benefit
from income taxes
|
(93,346)
|
|
|
(71,896)
|
|
|
(120,914)
|
|
|
17,914
|
|
Net income
|
308,530
|
|
|
272,275
|
|
|
415,794
|
|
|
489,021
|
|
Net income
attributable to noncontrolling interests
|
(16,396)
|
|
|
(16,023)
|
|
|
(25,106)
|
|
|
(25,463)
|
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
292,134
|
|
|
$
|
256,252
|
|
|
$
|
390,688
|
|
|
$
|
463,558
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
Basic net income per
share attributable to Vail Resorts, Inc.
|
$
|
7.26
|
|
|
$
|
6.34
|
|
|
$
|
9.68
|
|
|
$
|
11.48
|
|
Diluted net income
per share attributable to Vail Resorts, Inc.
|
$
|
7.12
|
|
|
$
|
6.17
|
|
|
$
|
9.48
|
|
|
$
|
11.13
|
|
Cash dividends
declared per share
|
$
|
1.76
|
|
|
$
|
1.47
|
|
|
$
|
4.70
|
|
|
$
|
3.576
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
40,255
|
|
|
40,438
|
|
|
40,364
|
|
|
40,374
|
|
Diluted
|
41,020
|
|
|
41,545
|
|
|
41,201
|
|
|
41,641
|
|
Vail Resorts,
Inc.
|
Consolidated
Condensed Statements of Operations - Other Data
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
April 30,
|
|
Nine Months
Ended
April 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Other
Data:
|
|
|
|
|
|
|
|
Mountain Reported
EBITDA
|
$
|
468,089
|
|
|
$
|
409,253
|
|
|
$
|
743,907
|
|
|
$
|
656,078
|
|
Lodging Reported
EBITDA
|
12,627
|
|
|
10,475
|
|
|
22,280
|
|
|
18,498
|
|
Resort Reported
EBITDA
|
480,716
|
|
|
419,728
|
|
|
766,187
|
|
|
674,576
|
|
Real Estate Reported
EBITDA
|
(873)
|
|
|
3,737
|
|
|
(3,278)
|
|
|
2,124
|
|
Total Reported
EBITDA
|
$
|
479,843
|
|
|
$
|
423,465
|
|
|
$
|
762,909
|
|
|
$
|
676,700
|
|
Mountain stock-based
compensation
|
$
|
4,049
|
|
|
$
|
3,827
|
|
|
$
|
12,258
|
|
|
$
|
11,613
|
|
Lodging stock-based
compensation
|
790
|
|
|
773
|
|
|
2,413
|
|
|
2,383
|
|
Resort stock-based
compensation
|
4,839
|
|
|
4,600
|
|
|
14,671
|
|
|
13,996
|
|
Real Estate
stock-based compensation
|
47
|
|
|
44
|
|
|
115
|
|
|
60
|
|
Total stock-based
compensation
|
$
|
4,886
|
|
|
$
|
4,644
|
|
|
$
|
14,786
|
|
|
$
|
14,056
|
|
Vail Resorts,
Inc.
|
Mountain Segment
Operating Results
|
(In thousands,
except Effective Ticket Price ("ETP"))
|
(Unaudited)
|
|
|
Three Months
Ended
April 30,
|
|
Percentage Increase
|
|
Nine Months
Ended
April 30,
|
|
Percentage
Increase
|
|
2019
|
|
2018
|
|
(Decrease)
|
|
2019
|
|
2018
|
|
(Decrease)
|
Net Mountain
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Lift
|
$
|
526,881
|
|
|
$
|
452,723
|
|
|
16.4
|
%
|
|
$
|
999,124
|
|
|
$
|
860,103
|
|
|
16.2
|
%
|
Ski school
|
110,755
|
|
|
101,213
|
|
|
9.4
|
%
|
|
207,271
|
|
|
185,767
|
|
|
11.6
|
%
|
Dining
|
78,928
|
|
|
70,678
|
|
|
11.7
|
%
|
|
162,629
|
|
|
142,890
|
|
|
13.8
|
%
|
Retail/rental
|
114,082
|
|
|
104,162
|
|
|
9.5
|
%
|
|
285,860
|
|
|
265,015
|
|
|
7.9
|
%
|
Other
|
47,252
|
|
|
43,748
|
|
|
8.0
|
%
|
|
144,093
|
|
|
137,776
|
|
|
4.6
|
%
|
Total Mountain net
revenue
|
877,898
|
|
|
772,524
|
|
|
13.6
|
%
|
|
1,798,977
|
|
|
1,591,551
|
|
|
13.0
|
%
|
Mountain operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
168,144
|
|
|
147,722
|
|
|
13.8
|
%
|
|
417,212
|
|
|
365,618
|
|
|
14.1
|
%
|
Retail cost of
sales
|
38,191
|
|
|
34,944
|
|
|
9.3
|
%
|
|
104,328
|
|
|
98,425
|
|
|
6.0
|
%
|
Resort related
fees
|
49,725
|
|
|
46,021
|
|
|
8.0
|
%
|
|
92,919
|
|
|
83,404
|
|
|
11.4
|
%
|
General and
administrative
|
58,402
|
|
|
56,473
|
|
|
3.4
|
%
|
|
178,952
|
|
|
165,406
|
|
|
8.2
|
%
|
Other
|
95,792
|
|
|
78,718
|
|
|
21.7
|
%
|
|
263,214
|
|
|
223,714
|
|
|
17.7
|
%
|
Total Mountain
operating expense
|
410,254
|
|
|
363,878
|
|
|
12.7
|
%
|
|
1,056,625
|
|
|
936,567
|
|
|
12.8
|
%
|
Mountain equity
investment income, net
|
445
|
|
|
607
|
|
|
26.7
|
%
|
|
1,555
|
|
|
1,094
|
|
|
42.1
|
%
|
Mountain Reported
EBITDA
|
$
|
468,089
|
|
|
$
|
409,253
|
|
|
14.4
|
%
|
|
$
|
743,907
|
|
|
$
|
656,078
|
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total skier
visits
|
7,183
|
|
|
6,283
|
|
|
14.3
|
%
|
|
14,211
|
|
|
11,914
|
|
|
19.3
|
%
|
ETP
|
$
|
73.35
|
|
|
$
|
72.06
|
|
|
1.8
|
%
|
|
$
|
70.31
|
|
|
$
|
72.19
|
|
|
(2.6)
|
%
|
Vail Resorts,
Inc.
|
Lodging Operating
Results
|
(In thousands,
except Average Daily Rate ("ADR") and Revenue per Available Room
("RevPAR"))
|
(Unaudited)
|
|
|
Three Months
Ended
April 30,
|
|
Percentage Increase
|
|
Nine Months
Ended
April 30,
|
|
Percentage
Increase
|
|
2019
|
|
2018
|
|
(Decrease)
|
|
2019
|
|
2018
|
|
(Decrease)
|
Lodging net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
rooms
|
$
|
12,352
|
|
|
$
|
12,518
|
|
|
(1.3)
|
%
|
|
$
|
43,499
|
|
|
$
|
43,506
|
|
|
—
|
%
|
Managed condominium
rooms
|
30,671
|
|
|
24,604
|
|
|
24.7
|
%
|
|
69,835
|
|
|
58,133
|
|
|
20.1
|
%
|
Dining
|
11,067
|
|
|
8,660
|
|
|
27.8
|
%
|
|
37,385
|
|
|
32,409
|
|
|
15.4
|
%
|
Transportation
|
8,578
|
|
|
8,164
|
|
|
5.1
|
%
|
|
18,774
|
|
|
18,177
|
|
|
3.3
|
%
|
Golf
|
—
|
|
|
—
|
|
|
—
|
%
|
|
9,628
|
|
|
8,903
|
|
|
8.1
|
%
|
Other
|
13,278
|
|
|
11,074
|
|
|
19.9
|
%
|
|
37,697
|
|
|
32,626
|
|
|
15.5
|
%
|
|
75,946
|
|
|
65,020
|
|
|
16.8
|
%
|
|
216,818
|
|
|
193,754
|
|
|
11.9
|
%
|
Payroll cost
reimbursements
|
3,902
|
|
|
3,807
|
|
|
2.5
|
%
|
|
11,179
|
|
|
10,701
|
|
|
4.5
|
%
|
Total Lodging net
revenue
|
79,848
|
|
|
68,827
|
|
|
16.0
|
%
|
|
227,997
|
|
|
204,455
|
|
|
11.5
|
%
|
Lodging operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
32,396
|
|
|
27,318
|
|
|
18.6
|
%
|
|
98,020
|
|
|
86,966
|
|
|
12.7
|
%
|
General and
administrative
|
9,811
|
|
|
9,708
|
|
|
1.1
|
%
|
|
31,002
|
|
|
29,374
|
|
|
5.5
|
%
|
Other
|
21,112
|
|
|
17,519
|
|
|
20.5
|
%
|
|
65,516
|
|
|
58,916
|
|
|
11.2
|
%
|
|
63,319
|
|
|
54,545
|
|
|
16.1
|
%
|
|
194,538
|
|
|
175,256
|
|
|
11.0
|
%
|
Reimbursed payroll
costs
|
3,902
|
|
|
3,807
|
|
|
2.5
|
%
|
|
11,179
|
|
|
10,701
|
|
|
4.5
|
%
|
Total Lodging
operating expense
|
67,221
|
|
|
58,352
|
|
|
15.2
|
%
|
|
205,717
|
|
|
185,957
|
|
|
10.6
|
%
|
Lodging Reported
EBITDA
|
$
|
12,627
|
|
|
$
|
10,475
|
|
|
20.5
|
%
|
|
$
|
22,280
|
|
|
$
|
18,498
|
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
$
|
291.68
|
|
|
$
|
291.94
|
|
|
(0.1)
|
%
|
|
$
|
257.83
|
|
|
$
|
257.27
|
|
|
0.2
|
%
|
RevPAR
|
$
|
206.41
|
|
|
$
|
198.97
|
|
|
3.7
|
%
|
|
$
|
177.42
|
|
|
$
|
175.73
|
|
|
1.0
|
%
|
Managed condominium
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
$
|
403.04
|
|
|
$
|
428.57
|
|
|
(6.0)
|
%
|
|
$
|
355.74
|
|
|
$
|
369.54
|
|
|
(3.7)
|
%
|
RevPAR
|
$
|
167.49
|
|
|
$
|
185.54
|
|
|
(9.7)
|
%
|
|
$
|
125.42
|
|
|
$
|
135.12
|
|
|
(7.2)
|
%
|
Owned hotel and
managed condominium statistics (combined):
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
$
|
376.83
|
|
|
$
|
389.90
|
|
|
(3.4)
|
%
|
|
$
|
324.21
|
|
|
$
|
327.86
|
|
|
(1.1)
|
%
|
RevPAR
|
$
|
173.45
|
|
|
$
|
188.23
|
|
|
(7.9)
|
%
|
|
$
|
135.60
|
|
|
$
|
144.87
|
|
|
(6.4)
|
%
|
Key Balance Sheet
Data
|
(In
thousands)
|
(Unaudited)
|
|
|
|
As of April
30,
|
|
|
2019
|
|
2018
|
Real estate held for
sale and investment
|
|
$
|
101,251
|
|
|
$
|
99,623
|
|
Total Vail Resorts,
Inc. stockholders' equity
|
|
$
|
1,666,359
|
|
|
$
|
1,770,673
|
|
Long-term debt,
net
|
|
$
|
1,310,870
|
|
|
$
|
1,078,005
|
|
Long-term debt due
within one year
|
|
48,504
|
|
|
38,444
|
|
Total debt
|
|
1,359,374
|
|
|
1,116,449
|
|
Less: cash and cash
equivalents
|
|
59,636
|
|
|
181,597
|
|
Net debt
|
|
$
|
1,299,738
|
|
|
$
|
934,852
|
|
Reconciliation of Measures of Segment Profitability and
Non-GAAP Financial Measures
Presented below is a reconciliation of Reported EBITDA to net
income attributable to Vail Resorts, Inc. for the three and nine
months ended April, 2019 and 2018.
|
(In thousands)
(Unaudited)
|
|
(In thousands)
(Unaudited)
|
|
Three Months Ended
April 30,
|
|
Nine Months Ended
April 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Mountain Reported
EBITDA
|
$
|
468,089
|
|
|
$
|
409,253
|
|
|
$
|
743,907
|
|
|
$
|
656,078
|
|
Lodging Reported
EBITDA
|
12,627
|
|
|
10,475
|
|
|
22,280
|
|
|
18,498
|
|
Resort Reported
EBITDA*
|
480,716
|
|
|
419,728
|
|
|
766,187
|
|
|
674,576
|
|
Real Estate Reported
EBITDA
|
(873)
|
|
|
3,737
|
|
|
(3,278)
|
|
|
2,124
|
|
Total Reported
EBITDA
|
479,843
|
|
|
423,465
|
|
|
762,909
|
|
|
676,700
|
|
Depreciation and
amortization
|
(55,260)
|
|
|
(54,104)
|
|
|
(161,541)
|
|
|
(154,132)
|
|
Gain (loss) on
disposal of fixed assets and other, net
|
27
|
|
|
(3,230)
|
|
|
505
|
|
|
(2,125)
|
|
Change in estimated
fair value of contingent consideration
|
(1,567)
|
|
|
2,454
|
|
|
(3,467)
|
|
|
2,454
|
|
Investment income and
other, net
|
1,727
|
|
|
736
|
|
|
2,697
|
|
|
1,516
|
|
Foreign currency loss
on intercompany loans
|
(3,319)
|
|
|
(9,502)
|
|
|
(5,180)
|
|
|
(6,511)
|
|
Interest expense,
net
|
(19,575)
|
|
|
(15,648)
|
|
|
(59,215)
|
|
|
(46,795)
|
|
Income before
(provision) benefit from income taxes
|
401,876
|
|
|
344,171
|
|
|
536,708
|
|
|
471,107
|
|
(Provision) benefit
from income taxes
|
(93,346)
|
|
|
(71,896)
|
|
|
(120,914)
|
|
|
17,914
|
|
Net income
|
308,530
|
|
|
272,275
|
|
|
415,794
|
|
|
489,021
|
|
Net income
attributable to noncontrolling interests
|
(16,396)
|
|
|
(16,023)
|
|
|
(25,106)
|
|
|
(25,463)
|
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
292,134
|
|
|
$
|
256,252
|
|
|
$
|
390,688
|
|
|
$
|
463,558
|
|
|
* Resort represents
the sum of Mountain and Lodging
|
Presented below is a reconciliation of Total Reported EBITDA to
net income attributable to Vail Resorts, Inc. calculated in
accordance with GAAP for the twelve months ended April 30, 2019.
|
|
(In thousands)
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
|
April 30,
2019
|
Mountain Reported
EBITDA
|
|
$
|
679,434
|
|
Lodging Reported
EBITDA
|
|
28,788
|
|
Resort Reported
EBITDA*
|
|
708,222
|
|
Real Estate Reported
EBITDA
|
|
(4,445)
|
|
Total Reported
EBITDA
|
|
703,777
|
|
Depreciation and
amortization
|
|
(211,871)
|
|
Loss on disposal of
fixed assets and other, net
|
|
(1,990)
|
|
Change in estimated
fair value of contingent consideration
|
|
(4,067)
|
|
Investment income and
other, net
|
|
3,125
|
|
Foreign currency loss
on intercompany loans
|
|
(7,635)
|
|
Interest expense,
net
|
|
(75,646)
|
|
Income before
provision for income taxes
|
|
405,693
|
|
Provision for income
taxes
|
|
(77,690)
|
|
Net income
|
|
328,003
|
|
Net income
attributable to noncontrolling interests
|
|
(20,975)
|
|
Net income
attributable to Vail Resorts, Inc.
|
|
$
|
307,028
|
|
|
* Resort represents
the sum of Mountain and Lodging
|
The following table reconciles Net Debt to long-term debt, net
and the calculation of Net Debt to Total Reported EBITDA for the
twelve months ended April 30,
2019.
|
In
thousands) (Unaudited) (As
of April 30, 2019)
|
|
Long-term debt,
net
|
$
|
1,310,870
|
|
Long-term debt due
within one year
|
48,504
|
|
Total debt
|
1,359,374
|
|
Less: cash and cash
equivalents
|
59,636
|
|
Net debt
|
$
|
1,299,738
|
|
Net debt to Total
Reported EBITDA
|
1.8
|
x
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three and nine months ended
April 30, 2019 and 2018.
|
(In thousands) (Unaudited) Three
Months Ended April
30,
|
|
(In thousands)
(Unaudited)
Nine
Months Ended
April
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Real Estate Reported
EBITDA
|
$
|
(873)
|
|
|
$
|
3,737
|
|
|
$
|
(3,278)
|
|
|
$
|
2,124
|
|
Non-cash Real Estate
cost of sales
|
—
|
|
|
3,271
|
|
|
—
|
|
|
3,750
|
|
Non-cash Real Estate
stock-based compensation
|
47
|
|
|
44
|
|
|
115
|
|
|
60
|
|
One-time charge for
Real Estate contingency
|
—
|
|
|
(4,300)
|
|
|
—
|
|
|
(4,300)
|
|
Proceeds received
from sales transactions accounted for as financings
|
11,150
|
|
|
—
|
|
|
11,150
|
|
|
—
|
|
Change in real estate
deposits and recovery of previously incurred project costs/land
basis less investments in real estate
|
5,113
|
|
|
(1)
|
|
|
5,205
|
|
|
(242)
|
|
Net Real Estate Cash
Flow
|
$
|
15,437
|
|
|
$
|
2,751
|
|
|
$
|
13,192
|
|
|
$
|
1,392
|
|
The following table reconciles Resort net revenue to Resort
EBITDA Margin for fiscal 2019 guidance.
|
|
(In thousands)
(Unaudited)
Fiscal 2019
Guidance (2)
|
Resort net revenue
(1)
|
|
$
|
2,270,000
|
|
Resort Reported
EBITDA (1)
|
|
$
|
707,000
|
|
Resort EBITDA
margin
|
|
31.1
|
%
|
|
(1) Resort
represents the sum of Mountain and Lodging
|
(2)
Represents the mid-point range of Guidance
|
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SOURCE Vail Resorts, Inc.