BROOMFIELD, Colo., March 9, 2020 /PRNewswire/ -- Vail Resorts, Inc.
(NYSE: MTN) today reported results for the second quarter of fiscal
2020 ended January 31, 2020, provided
the Company's ski season-to-date metrics through March 1, 2020 and withdrew its guidance for
fiscal 2020 due to the uncertain impact of coronavirus on results
for the remainder of fiscal 2020.
Highlights
- Net income attributable to Vail Resorts, Inc. was $206.4 million for the second fiscal quarter of
2020 compared to net income attributable to Vail Resorts, Inc. of
$206.3 million in the same period in
the prior year. Fiscal 2020 second quarter net income included the
after-tax effect of acquisition and integration related expenses of
approximately $1.4 million. Fiscal
2019 second quarter net income included the after-tax effect of
acquisition and integration related expenses of approximately
$2.2 million.
- Resort Reported EBITDA was $378.3
million for the second fiscal quarter of 2020, which
included $1.9 million of acquisition
and integration related expenses and approximately $1 million of favorable foreign exchange as a
result of the U.S. dollar weakening over the prior year compared to
the Canadian dollar. In the same period in the prior year, Resort
Reported EBITDA was $358.0 million,
which included $2.9 million of
acquisition and integration related expenses.
- Based on results through March 1,
2020 and indicators for the remainder of the year as of that
date, and excluding any identified impact from coronavirus, the
Company estimated that Resort Reported EBITDA for fiscal 2020 was
expected to be approximately $20
million below the midpoint of the guidance range previously
issued on January 17, 2020.
- Given the uncertainty surrounding the impact of the coronavirus
on the broader U.S. travel market and any specific impact to the
performance of the Company, the Company is not issuing guidance at
this time for fiscal 2020 and is withdrawing its previous guidance
issued on January 17, 2020. In the
week ended March 8, 2020, the Company
saw a marked negative change in performance from the prior week,
with destination skier visits modestly below expectations. The
Company expects this trend to continue and potentially worsen in
upcoming weeks. The Company intends to provide updated commentary
on its results by March 18,
2020.
Unless otherwise noted, the commentary on results for the three
months ended January 31, 2020
includes a full quarter of results from our recent acquisitions of
Peak Resorts (acquired in September
2019) and Falls Creek and
Hotham (acquired in April 2019).
Commenting on the Company's fiscal 2020 second quarter results,
Rob Katz, Chief Executive Officer,
said, "Overall we feel good about the season so far, but have had
both areas of challenge and areas of strong performance. Our
Pacific Northwest resorts (Whistler Blackcomb and Stevens Pass)
experienced the lowest snowfall in over 30 years through
December 31, 2019, resulting in very
poor results through the early season and critical holiday period.
Visitation at those resorts continued to be challenging and below
our expectations in January, with Whistler Blackcomb experiencing a
weaker than expected recovery in North American and international
destination visitation. In total, visitation across our Pacific
Northwest resorts was down 14% compared to the prior year for the
second quarter. After a challenging start in the early season,
destination guest visitation at our western U.S. resorts improved
significantly during the holiday period and was in line with our
expectations. The improvement continued through January though
Colorado was modestly below our
expectations for the post-holiday period, partially offset by
strong performance at our Park
City resort. Our Northeast resorts are off to a great start
to the season, supported by the continued benefit from our expanded
Northeast network which has been partially offset by challenging
weather variability across the Midwest resorts.
"Including results from Peak Resorts, total lift revenue
increased 8.2%, driven by an 8.8% growth in skier visitation. Total
effective ticket price ("ETP") decreased 0.5% in the second quarter
compared to the prior year, with price increases in both our lift
ticket and season pass products offset by the inclusion of results
from Peak Resorts which generates lower ETP. Excluding season pass
holders and Peak Resorts, ETP increased 4.0% compared to the prior
year. Ski school, dining and retail/rental revenues increased
11.4%, 15.8% and 4.1% compared to the prior year, respectively,
primarily driven by the inclusion of Peak Resorts."
Regarding the Company's Lodging segment, Katz said, "Our lodging
business experienced mixed results during the quarter, with revenue
(excluding payroll cost reimbursements) increasing 8.4% compared to
the prior year, primarily due to the incremental operations of Peak
Resorts, partially offset by softer results at our Colorado properties, in part due to weaker
group demand in comparison to the prior year period."
Regarding the Company's outlook, Katz said, "Given the
uncertainty surrounding the impact of the coronavirus on the
broader U.S. travel market and any specific impact to the
performance of our Company, we are not issuing guidance at this
time for fiscal 2020 and are withdrawing our previous guidance
issued on January 17, 2020. In the
week ended March 8, 2020, we saw a
marked negative change in performance from the prior week, with
destination skier visits modestly below expectations. We expect
this trend to continue and potentially worsen in upcoming
weeks."
Regarding capital allocation, Katz said, "We remain confident in
the strong cash flow generation and stability of our business
model. We will continue to be disciplined stewards of our capital
and remain committed to strategic, high-return capital projects,
continuous investment in our people, strategic acquisition
opportunities and returning capital to our shareholders through our
quarterly dividend and share repurchase programs. We are pleased to
announce that the Board of Directors declared a quarterly cash
dividend on Vail Resorts' common stock of $1.76 per share, payable on April 9, 2020 to shareholders of record on
March 26, 2020. Given the current
market instability caused by the coronavirus, we are deferring our
decision on a dividend increase until June." Katz added, "Our
balance sheet remains very strong. We ended the second quarter with
$126.8 million of cash on hand and
our Net Debt was 2.4 times trailing twelve months Total Reported
EBITDA, though it is important to note that this ratio only
includes Peak Resorts' results for the period between closing and
quarter end, and we expect that ratio to decline as we incorporate
a full year of results from Peak Resorts."
Season-to-Date Metrics through March
1, 2020 & Interim Results Commentary
The Company announced ski season-to-date metrics for the
comparative periods from the beginning of the ski season through
Sunday, March 1, 2020, and for the
prior year period through Sunday, March 3,
2019. The reported ski season metrics are for our North
American destination mountain resorts and regional ski areas,
including the results of Peak Resorts in both periods and excluding
the results of our Australian ski areas in both periods. The
reported ski season metrics include growth for season pass revenue
based on estimated fiscal 2020 North American season pass revenue
compared to fiscal 2019 North American season pass revenue, and the
metrics are adjusted to eliminate the impact of foreign currency by
applying current period exchange rates to the prior period for
Whistler Blackcomb's results. The data mentioned in this release is
interim period data and is subject to fiscal quarter end review and
adjustments.
- Season-to-date total lift ticket revenue, including an
allocated portion of season pass revenue for each applicable
period, was up 0.8% compared to the prior year season-to-date
period.
- Season-to-date ski school revenue was up 2.8% and dining
revenue was down 1.4% compared to the prior year season-to-date
period. Retail/rental revenue for North American resort and ski
area store locations was down 0.6% compared to the prior year
season-to-date period.
- Season-to-date total skier visits were down 5.2% compared to
the prior year season-to-date period.
Based on results through March 1,
2020 and indicators for the remainder of the year as of that
date, and excluding any identified impact from coronavirus, the
Company estimated that Resort Reported EBITDA for fiscal 2020 was
expected to be approximately $20
million below the midpoint of the guidance range previously
issued on January 17, 2020, driven
primarily by the continuation of challenging visitation trends at
our Pacific Northwest resorts throughout January and February and
secondarily from results at our Colorado resorts that were modestly below our
expectations in January and February, partially offset by strong
performance at our Park City
resort.
Epic Pass
Vail Resorts is committed to providing the best value in skiing
for all skiers and riders through its transformational Epic Pass
and Epic Day Pass advanced commitment products. Last year, we
launched the Epic Day Pass, giving all skiers and riders the same
value and flexibility available to season pass holders, even if
they only plan to ski or ride one day. The Epic Day Pass provides
unparalleled value to all skiers and riders through a discount of
up to 50% off of lift ticket window prices by purchasing in advance
of the ski season. We were very pleased with the success of the
Epic Day Pass launch last year and expect to see continued growth
in this product in its second season, as we convert existing lift
ticket purchasers and new prospective guests into advanced
commitment products.
This year, we are transforming the breadth of value offered with
our pass products by providing our pass holders truly epic
discounts on their mountain experience with the introduction of
Epic Mountain Rewards. For the 2020/2021 North American ski season,
pass holders will receive 20% off of food and beverage, lodging,
group ski and ride school lessons, equipment rentals and more,
creating incremental savings of potentially hundreds of dollars per
day for a family of four. No other major pass product provides this
level of across-the-board savings for skiers and riders, and, with
no sign-up, no point tracking and no blackout dates, Epic Mountain
Rewards is designed to be as simple as possible. Vail Resorts is
uniquely positioned to offer this kind of across-the-board value to
our guests through our integrated network of 37 owned and operated
resorts. The Company expects the new offering will continue to
drive conversion of our guests from purchasing lift tickets to
purchasing an advanced commitment pass product, where we see higher
guest return rates and guest satisfaction.
The Company is also delivering more value to our guests in key
regional markets through the introduction of the Northeast Value
Pass and Whistler Blackcomb Day Pass. The Northeast Value Pass
offers unlimited skiing in the Northeast for $599 for adults and $419 for college students, with holiday
restrictions at our Vermont and
New York resorts and up to 10 days
of access at Stowe. The Whistler
Blackcomb Day Pass is a deeply discounted product, sold in Canadian
dollars, that provides exclusive access to one of the world's
premier mountain destinations. This new customizable pass offers
from one day to ten days of access and is ideal for skiers and
riders who may not need the unlimited access offered on a
traditional season pass but are interested in the value of this
advanced commitment offering. By purchasing in advance of the ski
season, Whistler Blackcomb guests can ski and ride for up to 50%
off of lift ticket window prices, providing all guests with the
value, flexibility and convenience that comes with being a pass
holder. The Company expects both new passes will continue to drive
conversion of our guests from purchasing lift tickets to purchasing
an advanced commitment pass product.
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 second fiscal quarter ended January 31, 2020, which was filed today with the
Securities and Exchange Commission. The following are segment
highlights:
Mountain Segment
- Total lift revenue increased $36.8
million, or 8.2%, compared to the same period in the prior
year, to $484.3 million for the three
months ended January 31, 2020,
primarily due to an increase in pass product revenue and
incremental revenue from Peak Resorts. Pass product revenue,
although primarily collected prior to the ski season, is recognized
in the Consolidated Condensed Statements of Operations throughout
the ski season primarily based on historical visitation. For the
2019/2020 North American ski season, our historical visitation
trend has shifted the allocation of pass holder visitation to our
fiscal third quarter as compared to our fiscal second quarter. As a
result, our allocation of fiscal year 2020 pass revenue for the
three months ended January 31, 2020
is approximately $11 million lower
than it would have been under the prior year allocation.
- Ski school revenue increased $10.5
million, or 11.4%, primarily as a result of incremental
revenue from Peak Resorts of approximately $7.5 million, as well as increased revenue from
our western U.S. resorts and Whistler Blackcomb.
- Dining revenue increased $10.3
million, or 15.8%, primarily as a result of incremental
revenue from Peak Resorts of approximately $11.7 million, partially offset by a decrease in
revenue at our western U.S. resorts and Whistler Blackcomb.
- Retail/rental revenue increased $5.3
million, or 4.1%, primarily as a result of incremental
revenues from Peak Resorts of approximately $12.6 million, partially offset by a decrease in
retail sales volumes primarily at our stores proximate to the
San Francisco Bay Area.
- Operating expense increased $48.7
million, or 11.5%, which was primarily attributable to
incremental operating expenses from Peak Resorts.
- Mountain Reported EBITDA increased $20.8
million, or 5.9%, for the second quarter compared to the
same period in the prior year, which includes $4.6 million of stock-based compensation expense
for the three months ended January 31,
2020 compared to $4.3 million
in the same period in the prior year.
Lodging Segment
- Lodging segment net revenue (excluding payroll cost
reimbursements) for the three months ended January 31, 2020 increased $5.8 million, or 8.4%, as compared to the same
period in the prior year, primarily due to incremental revenue from
Peak Resorts.
- Lodging Reported EBITDA for the three months ended January 31, 2020 decreased $0.5 million, or 8.0%, for the second quarter
compared to the same period in the prior year, which includes
$0.9 million of stock-based
compensation expense for the three months ended January 31, 2020 compared to $0.8 million in the same period in the prior
year.
Resort - Combination of Mountain and Lodging Segments
- Resort net revenue increased $75.1
million, or 8.8%, compared to the same period in the prior
year, to $924.4 million for the three
months ended January 31, 2020,
primarily due to strong North American pass sales growth for the
2019/2020 North American ski season and incremental revenue from
Peak Resorts.
- Resort Reported EBITDA was $378.3
million for the three months ended January 31, 2020, an increase of $20.3 million, or 5.7%, compared to the same
period in the prior year, which includes $1.9 million of acquisition and integration
related expenses and approximately $1
million of favorable foreign exchange 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.
Total Performance
- Total net revenue increased $75.1
million, or 8.8%, to $924.6
million for the three months ended January 31, 2020 as compared to the same period
in the prior year.
- Net income attributable to Vail Resorts, Inc. was $206.4 million, or $5.04 per diluted share, for the second quarter
of fiscal 2020 compared to net income attributable to Vail Resorts,
Inc. of $206.3 million, or
$5.02 per diluted share, in the
second fiscal quarter of the prior year. Additionally, fiscal 2020
second quarter net income included the after-tax effect of
acquisition and integration related expenses of approximately
$1.4 million.
Calendar Year 2020 Capital Expenditures
Regarding calendar year 2020 capital expenditures, Katz said,
"We remain committed to reinvesting in our resorts, creating an
experience of a lifetime for our guests and generating strong
returns for our shareholders. The Company expects to invest
approximately $155 million to
$160 million, excluding one-time
items associated with integrations, the one-time Triple Peaks and
Stevens Pass transformation plan, one-time Peak Resorts capital
improvements, real estate related capital and $4 million of reimbursable investments associated
with insurance recoveries that we had originally expected to occur
in calendar 2019.
"As previously announced, the calendar year 2020 capital plan
includes a rare opportunity to expand with a 250 acre lift-served
terrain expansion in the signature McCoy Park area of Beaver Creek, further differentiating the
resort's high-end, family focused experience. We also plan to add a
new four-person high speed lift at Breckenridge to serve the popular Peak 7, a
replacement of the Peru lift at
Keystone, subject to governmental
approvals, with a six-person high speed chairlift, and a
significant 250 seat increase in the seating capacity at the
Rendezvous Lodge Restaurant on Blackcomb Mountain. We remain highly
focused on investments that will further our company-wide data
driven approach, including the second phase of implementing our
automated digital marketing platform that will allow us to
aggregate a more holistic view of the guest that will drive
improvements in personalization and engagement across all lines of
business, including ski school and rentals. We are also planning to
completely revamp and upgrade our digital ski rental online
platforms and our EpicMix mobile app, which will offer new
functionality and an improved user experience. We plan to continue
to invest in corporate infrastructure and technology to improve our
scalability and efficiency, including the first phase of
implementation of an automated workforce planning system to
optimize our labor scheduling and improved financial systems to
enhance business analytics.
"We are planning to complete the $3
million initial phase of a two-year, $15 million investment program across Peak
Resorts. We are also planning to complete the second and final
phase of a two-year, $35 million
investment program for Crested
Butte, Okemo and Stevens Pass and planning to spend
approximately $24 million on
integration activities primarily related to Peak Resorts.
"Including one-time items associated with integrations, the
one-time Triple Peaks and Stevens Pass transformation plan,
one-time Peak Resorts capital improvements, real estate related
capital and $4 million of
reimbursable investments associated with insurance recoveries that
we had originally expected to occur in calendar 2019, we expect our
total capital plan to be approximately $210
million to $215 million."
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 April 9, 2020 to
shareholders of record on March 26,
2020. Additionally, a Canadian dollar equivalent dividend on
the exchangeable shares of Whistler Blackcomb Holdings Inc. will be
payable on April 9, 2020 to
shareholders of record on March 26,
2020. The exchangeable shares were issued to certain
Canadian persons in connection with our acquisition of Whistler
Blackcomb Holdings Inc.
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) 263-0877 (U.S. and Canada)
or (646) 828-8143 (international). A replay of the conference call
will be available two hours following the conclusion of the
conference call through March 23,
2020, 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 8417438. 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. Vail Resorts' subsidiaries operate
37 world-class mountain resorts and 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;
Perisher, Falls Creek and Hotham
in Australia; Stowe, Mount
Snow, Okemo in Vermont;
Hunter Mountain in New York; Mount
Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens Pass in Washington; Liberty, Roundtop, Whitetail,
Jack Frost and Big Boulder in
Pennsylvania; Alpine Valley,
Boston Mills, Brandywine and Mad
River in Ohio; Hidden Valley and Snow Creek in Missouri; Wilmot in Wisconsin; Afton Alps in Minnesota; Mt. Brighton in Michigan; and Paoli Peaks in Indiana. 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
2020 performance (and our assumptions related thereto), including
our expected Resort Reported EBITDA; the effects of the outbreak of
coronavirus on our business and results of operations; the payment
of dividends; sales patterns and expectations related to our season
pass products; and planned capital projects for calendar year 2020.
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; willingness or ability of our guests to travel due to
terrorism, the uncertainty of military conflicts or outbreaks of
contagious diseases (such as the current outbreak of coronavirus),
and the cost and availability of travel options and changing
consumer preferences; 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 and our ability to adapt to technological
developments or industry trends; risks related to cyber-attacks;
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; risks related to our workforce, including increased
labor costs; loss of key personnel and our ability to hire and
retain a sufficient seasonal workforce; 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 Falls
Creek, Hotham, Peak Resorts 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 as well as risks associated with uncertainty of
the impact of 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, 2019, which was filed on September 26, 2019.
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
January 31,
|
|
Six Months
Ended
January 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
revenue:
|
|
|
|
|
|
|
|
|
Mountain and Lodging
services and other
|
|
$
|
753,758
|
|
|
$
|
687,119
|
|
|
$
|
933,789
|
|
|
$
|
831,141
|
|
Mountain and Lodging
retail and dining
|
|
170,674
|
|
|
162,203
|
|
|
254,233
|
|
|
238,087
|
|
Resort net
revenue
|
|
924,432
|
|
|
849,322
|
|
|
1,188,022
|
|
|
1,069,228
|
|
Real
Estate
|
|
206
|
|
|
256
|
|
|
4,386
|
|
|
354
|
|
Total net
revenue
|
|
924,638
|
|
|
849,578
|
|
|
1,192,408
|
|
|
1,069,582
|
|
Segment operating
expense:
|
|
|
|
|
|
|
|
|
Mountain and Lodging
operating expense
|
|
387,842
|
|
|
350,633
|
|
|
616,552
|
|
|
544,745
|
|
Mountain and Lodging
retail and dining cost of products sold
|
|
67,135
|
|
|
63,505
|
|
|
104,870
|
|
|
98,381
|
|
General and
administrative
|
|
91,302
|
|
|
77,362
|
|
|
166,357
|
|
|
141,741
|
|
Resort operating
expense
|
|
546,279
|
|
|
491,500
|
|
|
887,779
|
|
|
784,867
|
|
Real Estate operating
expense
|
|
1,505
|
|
|
1,389
|
|
|
6,798
|
|
|
2,759
|
|
Total segment
operating expense
|
|
547,784
|
|
|
492,889
|
|
|
894,577
|
|
|
787,626
|
|
Other operating
(expense) income:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(63,812)
|
|
|
(55,238)
|
|
|
(121,657)
|
|
|
(106,281)
|
|
Gain on sale of real
property
|
|
—
|
|
|
—
|
|
|
207
|
|
|
—
|
|
Change in estimated
fair value of contingent consideration
|
|
(1,600)
|
|
|
(700)
|
|
|
(2,736)
|
|
|
(1,900)
|
|
(Loss) gain on
disposal of fixed assets and other, net
|
|
(709)
|
|
|
1,097
|
|
|
1,558
|
|
|
478
|
|
Income from
operations
|
|
310,733
|
|
|
301,848
|
|
|
175,203
|
|
|
174,253
|
|
Mountain equity
investment income, net
|
|
169
|
|
|
160
|
|
|
1,360
|
|
|
1,110
|
|
Investment income and
other, net
|
|
361
|
|
|
507
|
|
|
638
|
|
|
970
|
|
Foreign currency
(loss) gain on intercompany loans
|
|
(798)
|
|
|
450
|
|
|
(438)
|
|
|
(1,861)
|
|
Interest expense,
net
|
|
(26,134)
|
|
|
(21,002)
|
|
|
(48,824)
|
|
|
(39,640)
|
|
Income before
provision for income taxes
|
|
284,331
|
|
|
281,963
|
|
|
127,939
|
|
|
134,832
|
|
Provision for income
taxes
|
|
(67,313)
|
|
|
(63,973)
|
|
|
(20,750)
|
|
|
(27,568)
|
|
Net income
|
|
217,018
|
|
|
217,990
|
|
|
107,189
|
|
|
107,264
|
|
Net income
attributable to noncontrolling interests
|
|
(10,648)
|
|
|
(11,641)
|
|
|
(7,294)
|
|
|
(8,710)
|
|
Net income
attributable to Vail Resorts, Inc.
|
|
$
|
206,370
|
|
|
$
|
206,349
|
|
|
$
|
99,895
|
|
|
$
|
98,554
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
|
Basic net income per
share attributable to Vail Resorts, Inc.
|
|
$
|
5.12
|
|
|
$
|
5.12
|
|
|
$
|
2.48
|
|
|
$
|
2.44
|
|
Diluted net income
per share attributable to Vail Resorts, Inc.
|
|
$
|
5.04
|
|
|
$
|
5.02
|
|
|
$
|
2.44
|
|
|
$
|
2.39
|
|
Cash dividends
declared per share
|
|
$
|
1.76
|
|
|
$
|
1.47
|
|
|
$
|
3.52
|
|
|
$
|
2.94
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
40,316
|
|
|
40,328
|
|
|
40,329
|
|
|
40,416
|
|
Diluted
|
|
40,941
|
|
|
41,126
|
|
|
40,973
|
|
|
41,286
|
|
Vail Resorts,
Inc.
|
Consolidated
Condensed Statements of Operations - Other Data
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
January 31,
|
|
Six Months
Ended
January 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Other
Data:
|
|
|
|
|
|
|
|
|
Mountain Reported
EBITDA
|
|
$
|
373,028
|
|
|
$
|
352,225
|
|
|
$
|
293,043
|
|
|
$
|
275,818
|
|
Lodging Reported
EBITDA
|
|
5,294
|
|
|
5,757
|
|
|
8,560
|
|
|
9,653
|
|
Resort Reported
EBITDA
|
|
378,322
|
|
|
357,982
|
|
|
301,603
|
|
|
285,471
|
|
Real Estate Reported
EBITDA
|
|
(1,299)
|
|
|
(1,133)
|
|
|
(2,205)
|
|
|
(2,405)
|
|
Total Reported
EBITDA
|
|
$
|
377,023
|
|
|
$
|
356,849
|
|
|
$
|
299,398
|
|
|
$
|
283,066
|
|
Mountain stock-based
compensation
|
|
$
|
4,612
|
|
|
$
|
4,265
|
|
|
$
|
8,965
|
|
|
$
|
8,209
|
|
Lodging stock-based
compensation
|
|
873
|
|
|
836
|
|
|
1,720
|
|
|
1,623
|
|
Resort stock-based
compensation
|
|
5,485
|
|
|
5,101
|
|
|
10,685
|
|
|
9,832
|
|
Real Estate
stock-based compensation
|
|
53
|
|
|
46
|
|
|
104
|
|
|
68
|
|
Total stock-based
compensation
|
|
$
|
5,538
|
|
|
$
|
5,147
|
|
|
$
|
10,789
|
|
|
$
|
9,900
|
|
Vail Resorts,
Inc.
|
Mountain Segment
Operating Results
|
(In thousands,
except ETP)
|
(Unaudited)
|
|
|
|
Three Months
Ended
January 31,
|
|
Percentage
Increase
|
|
Six Months
Ended
January 31,
|
|
Percentage
Increase
|
|
|
2020
|
|
2019
|
|
(Decrease)
|
|
2020
|
|
2019
|
|
(Decrease)
|
Net Mountain
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lift
|
|
$
|
484,348
|
|
|
$
|
447,558
|
|
|
8.2
|
%
|
|
$
|
526,177
|
|
|
$
|
472,243
|
|
|
11.4
|
%
|
Ski school
|
|
102,743
|
|
|
92,244
|
|
|
11.4
|
%
|
|
111,277
|
|
|
96,516
|
|
|
15.3
|
%
|
Dining
|
|
75,719
|
|
|
65,409
|
|
|
15.8
|
%
|
|
97,348
|
|
|
83,701
|
|
|
16.3
|
%
|
Retail/rental
|
|
133,713
|
|
|
128,436
|
|
|
4.1
|
%
|
|
181,628
|
|
|
171,778
|
|
|
5.7
|
%
|
Other
|
|
49,022
|
|
|
42,426
|
|
|
15.5
|
%
|
|
109,947
|
|
|
96,841
|
|
|
13.5
|
%
|
Total Mountain net
revenue
|
|
845,545
|
|
|
776,073
|
|
|
9.0
|
%
|
|
1,026,377
|
|
|
921,079
|
|
|
11.4
|
%
|
Mountain operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
|
195,224
|
|
|
172,818
|
|
|
13.0
|
%
|
|
286,699
|
|
|
249,068
|
|
|
15.1
|
%
|
Retail cost of
sales
|
|
41,985
|
|
|
43,721
|
|
|
(4.0)
|
%
|
|
65,264
|
|
|
66,137
|
|
|
(1.3)
|
%
|
Resort related
fees
|
|
38,368
|
|
|
39,830
|
|
|
(3.7)
|
%
|
|
42,814
|
|
|
43,194
|
|
|
(0.9)
|
%
|
General and
administrative
|
|
77,975
|
|
|
65,847
|
|
|
18.4
|
%
|
|
142,644
|
|
|
120,550
|
|
|
18.3
|
%
|
Other
|
|
119,134
|
|
|
101,792
|
|
|
17.0
|
%
|
|
197,273
|
|
|
167,422
|
|
|
17.8
|
%
|
Total Mountain
operating expense
|
|
472,686
|
|
|
424,008
|
|
|
11.5
|
%
|
|
734,694
|
|
|
646,371
|
|
|
13.7
|
%
|
Mountain equity
investment income, net
|
|
169
|
|
|
160
|
|
|
5.6
|
%
|
|
1,360
|
|
|
1,110
|
|
|
22.5
|
%
|
Mountain Reported
EBITDA
|
|
$
|
373,028
|
|
|
$
|
352,225
|
|
|
5.9
|
%
|
|
$
|
293,043
|
|
|
$
|
275,818
|
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total skier
visits
|
|
7,096
|
|
|
6,521
|
|
|
8.8
|
%
|
|
8,030
|
|
|
7,028
|
|
|
14.3
|
%
|
ETP
|
|
$
|
68.26
|
|
|
$
|
68.63
|
|
|
(0.5)
|
%
|
|
$
|
65.53
|
|
|
$
|
67.19
|
|
|
(2.5)
|
%
|
Vail Resorts,
Inc.
|
Lodging Operating
Results
|
(In thousands,
except Average Daily Rate ("ADR") and Revenue per Available Room
("RevPAR"))
|
(Unaudited)
|
|
|
|
Three Months
Ended
January 31,
|
|
Percentage
Increase
|
|
Six Months
Ended
January 31,
|
|
Percentage
Increase
|
|
|
2020
|
|
2019
|
|
(Decrease)
|
|
2020
|
|
2019
|
|
(Decrease)
|
Lodging net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
rooms
|
|
$
|
11,251
|
|
|
$
|
11,548
|
|
|
(2.6)
|
%
|
|
$
|
31,197
|
|
|
$
|
31,147
|
|
|
0.2
|
%
|
Managed condominium
rooms
|
|
31,500
|
|
|
28,046
|
|
|
12.3
|
%
|
|
46,240
|
|
|
39,164
|
|
|
18.1
|
%
|
Dining
|
|
11,111
|
|
|
10,189
|
|
|
9.0
|
%
|
|
29,254
|
|
|
26,318
|
|
|
11.2
|
%
|
Transportation
|
|
7,725
|
|
|
7,722
|
|
|
—
|
%
|
|
10,076
|
|
|
10,196
|
|
|
(1.2)
|
%
|
Golf
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
10,543
|
|
|
9,459
|
|
|
11.5
|
%
|
Other
|
|
13,855
|
|
|
12,120
|
|
|
14.3
|
%
|
|
27,699
|
|
|
24,588
|
|
|
12.7
|
%
|
|
|
75,442
|
|
|
69,625
|
|
|
8.4
|
%
|
|
155,009
|
|
|
140,872
|
|
|
10.0
|
%
|
Payroll cost
reimbursements
|
|
3,445
|
|
|
3,624
|
|
|
(4.9)
|
%
|
|
6,636
|
|
|
7,277
|
|
|
(8.8)
|
%
|
Total Lodging net
revenue
|
|
78,887
|
|
|
73,249
|
|
|
7.7
|
%
|
|
161,645
|
|
|
148,149
|
|
|
9.1
|
%
|
Lodging operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
|
33,929
|
|
|
32,173
|
|
|
5.5
|
%
|
|
71,544
|
|
|
65,624
|
|
|
9.0
|
%
|
General and
administrative
|
|
13,327
|
|
|
11,515
|
|
|
15.7
|
%
|
|
23,713
|
|
|
21,191
|
|
|
11.9
|
%
|
Other
|
|
22,892
|
|
|
20,180
|
|
|
13.4
|
%
|
|
51,192
|
|
|
44,404
|
|
|
15.3
|
%
|
|
|
70,148
|
|
|
63,868
|
|
|
9.8
|
%
|
|
146,449
|
|
|
131,219
|
|
|
11.6
|
%
|
Reimbursed payroll
costs
|
|
3,445
|
|
|
3,624
|
|
|
(4.9)
|
%
|
|
6,636
|
|
|
7,277
|
|
|
(8.8)
|
%
|
Total Lodging
operating expense
|
|
73,593
|
|
|
67,492
|
|
|
9.0
|
%
|
|
153,085
|
|
|
138,496
|
|
|
10.5
|
%
|
Lodging Reported
EBITDA
|
|
$
|
5,294
|
|
|
$
|
5,757
|
|
|
(8.0)
|
%
|
|
$
|
8,560
|
|
|
$
|
9,653
|
|
|
(11.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
265.15
|
|
|
$
|
269.45
|
|
|
(1.6)
|
%
|
|
$
|
247.92
|
|
|
$
|
245.76
|
|
|
0.9
|
%
|
RevPAR
|
|
$
|
143.15
|
|
|
$
|
177.04
|
|
|
(19.1)
|
%
|
|
$
|
155.22
|
|
|
$
|
167.47
|
|
|
(7.3)
|
%
|
Managed condominium
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
404.14
|
|
|
$
|
407.11
|
|
|
(0.7)
|
%
|
|
$
|
313.72
|
|
|
$
|
323.44
|
|
|
(3.0)
|
%
|
RevPAR
|
|
$
|
144.85
|
|
|
$
|
145.76
|
|
|
(0.6)
|
%
|
|
$
|
100.40
|
|
|
$
|
103.33
|
|
|
(2.8)
|
%
|
Owned hotel and
managed condominium statistics (combined):
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
371.45
|
|
|
$
|
372.43
|
|
|
(0.3)
|
%
|
|
$
|
291.74
|
|
|
$
|
294.63
|
|
|
(1.0)
|
%
|
RevPAR
|
|
$
|
144.56
|
|
|
$
|
150.61
|
|
|
(4.0)
|
%
|
|
$
|
111.59
|
|
|
$
|
117.21
|
|
|
(4.8)
|
%
|
Key Balance Sheet
Data
|
(In
thousands)
|
(Unaudited)
|
|
|
|
As of January
31,
|
|
|
2020
|
|
2019
|
Real estate held for
sale and investment
|
|
$
|
96,944
|
|
|
$
|
101,730
|
|
Total Vail Resorts,
Inc. stockholders' equity
|
|
$
|
1,425,482
|
|
|
$
|
1,463,278
|
|
Long-term debt,
net
|
|
$
|
1,817,058
|
|
|
$
|
1,345,262
|
|
Long-term debt due
within one year
|
|
63,556
|
|
|
48,493
|
|
Total debt
|
|
1,880,614
|
|
|
1,393,755
|
|
Less: cash and cash
equivalents
|
|
126,793
|
|
|
158,561
|
|
Net debt
|
|
$
|
1,753,821
|
|
|
$
|
1,235,194
|
|
Reconciliation of Measures of Segment Profitability and
Non-GAAP Financial Measures
Presented below is a reconciliation of net income attributable
to Vail Resorts, Inc. to Total Reported EBITDA for the three and
six months ended January 31, 2020 and
2019.
|
(In thousands)
(Unaudited)
|
|
(In thousands)
(Unaudited)
|
|
Three Months Ended
January 31,
|
|
Six Months Ended
January 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
206,370
|
|
|
$
|
206,349
|
|
|
$
|
99,895
|
|
|
$
|
98,554
|
|
Net income
attributable to noncontrolling interests
|
10,648
|
|
|
11,641
|
|
|
7,294
|
|
|
8,710
|
|
Net income
|
217,018
|
|
|
217,990
|
|
|
107,189
|
|
|
107,264
|
|
Provision for income
taxes
|
67,313
|
|
|
63,973
|
|
|
20,750
|
|
|
27,568
|
|
Income before
provision for income taxes
|
284,331
|
|
|
281,963
|
|
|
127,939
|
|
|
134,832
|
|
Depreciation and
amortization
|
63,812
|
|
|
55,238
|
|
|
121,657
|
|
|
106,281
|
|
Loss (gain) on
disposal of fixed assets and other, net
|
709
|
|
|
(1,097)
|
|
|
(1,558)
|
|
|
(478)
|
|
Change in fair value
of contingent consideration
|
1,600
|
|
|
700
|
|
|
2,736
|
|
|
1,900
|
|
Investment income and
other, net
|
(361)
|
|
|
(507)
|
|
|
(638)
|
|
|
(970)
|
|
Foreign currency loss
(gain) on intercompany loans
|
798
|
|
|
(450)
|
|
|
438
|
|
|
1,861
|
|
Interest expense,
net
|
26,134
|
|
|
21,002
|
|
|
48,824
|
|
|
39,640
|
|
Total Reported
EBITDA
|
$
|
377,023
|
|
|
$
|
356,849
|
|
|
$
|
299,398
|
|
|
$
|
283,066
|
|
|
|
|
|
|
|
|
|
Mountain Reported
EBITDA
|
$
|
373,028
|
|
|
$
|
352,225
|
|
|
$
|
293,043
|
|
|
$
|
275,818
|
|
Lodging Reported
EBITDA
|
5,294
|
|
|
5,757
|
|
|
8,560
|
|
|
9,653
|
|
Resort Reported
EBITDA*
|
378,322
|
|
|
357,982
|
|
|
301,603
|
|
|
285,471
|
|
Real Estate Reported
EBITDA
|
(1,299)
|
|
|
(1,133)
|
|
|
(2,205)
|
|
|
(2,405)
|
|
Total Reported
EBITDA
|
$
|
377,023
|
|
|
$
|
356,849
|
|
|
$
|
299,398
|
|
|
$
|
283,066
|
|
|
* Resort represents
the sum of Mountain and Lodging
|
Presented below is a reconciliation of net income attributable
to Vail Resorts, Inc. to Total Reported EBITDA calculated in
accordance with GAAP for the twelve months ended January 31, 2020.
|
(In thousands)
(Unaudited)
|
|
Twelve Months
Ended January 31,
|
|
2020
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
302,504
|
|
Net income
attributable to noncontrolling interests
|
20,914
|
|
Net income
|
323,418
|
|
Provision for income
taxes
|
68,654
|
|
Income before
provision for income taxes
|
392,072
|
|
Depreciation and
amortization
|
233,493
|
|
Gain on disposal of
fixed assets and other, net
|
(416)
|
|
Change in fair value
of contingent consideration
|
6,203
|
|
Investment income and
other, net
|
(2,754)
|
|
Foreign currency loss
on intercompany loans
|
1,431
|
|
Interest expense,
net
|
88,680
|
|
Total Reported
EBITDA
|
$
|
718,709
|
|
|
|
Mountain Reported
EBITDA
|
$
|
695,819
|
|
Lodging Reported
EBITDA
|
27,007
|
|
Resort Reported
EBITDA*
|
722,826
|
|
Real Estate Reported
EBITDA
|
(4,117)
|
|
Total Reported
EBITDA
|
$
|
718,709
|
|
|
* Resort represents
the sum of Mountain and Lodging
|
The following table reconciles long-term debt, net to Net Debt
and the calculation of Net Debt to Total Reported EBITDA for the
twelve months ended January 31,
2020.
|
In thousands)
(Unaudited)
(As of January 31, 2020)
|
Long-term debt,
net
|
$
|
1,817,058
|
|
Long-term debt due
within one year
|
63,556
|
|
Total debt
|
1,880,614
|
|
Less: cash and cash
equivalents
|
126,793
|
|
Net debt
|
$
|
1,753,821
|
|
Net debt to Total
Reported EBITDA
|
2.4
|
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three and six months ended
January 31, 2020 and 2019.
|
|
(In thousands)
(Unaudited)
Three Months Ended
January 31,
|
|
(In thousands)
(Unaudited)
Six
Months Ended
January
31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Real Estate Reported
EBITDA
|
|
$
|
(1,299)
|
|
|
$
|
(1,133)
|
|
|
$
|
(2,205)
|
|
|
$
|
(2,405)
|
|
Non-cash Real Estate
cost of sales
|
|
—
|
|
|
—
|
|
|
3,684
|
|
|
—
|
|
Non-cash Real Estate
stock-based compensation
|
|
53
|
|
|
46
|
|
|
104
|
|
|
68
|
|
Change in real estate
deposits and recovery of previously incurred project costs/land
basis less investments in real estate
|
|
(17)
|
|
|
98
|
|
|
138
|
|
|
92
|
|
Net Real Estate Cash
Flow
|
|
$
|
(1,263)
|
|
|
$
|
(989)
|
|
|
$
|
1,721
|
|
|
$
|
(2,245)
|
|
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SOURCE Vail Resorts, Inc.