BROOMFIELD, Colo., June 4, 2020 /CNW/ -- Vail Resorts, Inc. (NYSE:
MTN) today reported results for the third quarter of fiscal 2020
ended April 30, 2020, which were
significantly impacted by COVID-19 and the resulting closure of the
Company's North American destination mountain resorts and regional
ski areas on March 15, 2020.
Highlights
- As a result of the disruptions caused by COVID-19, we took the
following strategic actions to address the public health situation
and strengthen the Company's financial and liquidity position to
navigate through the current circumstances and position the
business for long-term success:
-
- Closed operations at all North American resorts and
rental/retail stores from March 15,
2020 through the remainder of the 2019/2020 winter ski
season;
- Reduced our capital plan for calendar year 2020 by $80-$85
million;
- Suspended our cash dividend for a minimum of two quarters
(preserving approximately $142
million);
- Furloughed the majority of year-round hourly and certain
salaried employees in the U.S.;
- Implemented a six month salary reduction for all salaried
employees in the U.S.;
- Eliminated full salary for CEO and 100% of cash compensation of
Board of Directors for six months;
- Suspended our 401(k) match for six months;
- Raised $600 million in 6.250%
unsecured senior notes due May 2025;
and
- Obtained financial covenant maintenance waivers under the Vail
Holdings, Inc. ("Vail Holdings") revolving credit facility through
January 2022.
- Net income attributable to Vail Resorts, Inc. was $152.5 million for the third fiscal quarter of
2020 compared to net income attributable to Vail Resorts, Inc. of
$292.1 million in the same period in
the prior year, primarily as a result of the negative impacts of
COVID-19 as outlined further in the details below.
- Resort Reported EBITDA was $304.4
million for the third fiscal quarter of 2020, compared to
Resort Reported EBITDA of $480.7
million for the same period in the prior year, primarily as
a result of the negative impacts of COVID-19 offset by cost actions
implemented, as described above.
Commenting on the Company's fiscal 2020 third quarter results,
Rob Katz, Chief Executive Officer,
said, "Our results for the quarter and for the full 2019/2020 North
American ski season were significantly impacted by COVID-19 and the
resulting closure of our North American mountain resorts beginning
March 15, 2020 for the safety of our
guests, employees and resort communities. In addition, even before
the closure and during the first two weeks of March, we experienced
a negative change in performance that we believe was due to the
impact of COVID-19 on traveler behavior. As of March 18, 2020, we anticipated that our operating
results in March and April would be negatively impacted by
$180 million to $200 million compared to the Resort Reported
EBITDA expectation we had on March 1,
2020. Relative to these expectations, our results were
favorable by approximately $40
million, primarily driven by cost actions implemented in
April 2020. In addition, Resort
Reported EBITDA for the quarter was negatively impacted by the
deferral of approximately $113
million of pass product revenue and related deferred costs
to fiscal 2021 as a result of pass holder credits offered to
2019/2020 North American pass holders to encourage renewal for next
season."
Regarding the Company's summer operations, Katz said, "We are
planning to be operational for the North American summer and
Australian ski season in late June or early July, which could vary
by resort, and opening dates for each business are subject to new
information and public health guidance with regard to COVID-19. We
expect that our results in the fourth quarter of fiscal 2020 will
be materially negatively impacted by the travel environment and we
will see lower visitation to our resort properties. However,
we are not able to fully assess that impact at this time and will
not be issuing guidance for the fourth quarter or fiscal year. We
believe we have developed efficient operating plans to deliver a
safe and enjoyable guest experience at our resorts this summer in
North America and for the
Australian ski season, with the ability to adjust as consumer
demand and local guidelines and practices shift."
Balance Sheet & Liquidity
Commenting on the Company's liquidity, Katz stated, "Our total
cash and revolver availability as of May 31,
2020 was approximately $1.1
billion, with $465 million of
cash on hand, $419 million of U.S.
revolver availability under the Vail Holdings Credit Agreement
("Credit Agreement") and $168 million
of revolver availability under the Whistler Credit Agreement.
As of April 30, 2020, our Net Debt
was 3.6 times trailing twelve months Total Reported EBITDA.
"In April, we announced plans to support our liquidity by
reducing our capital plan for calendar year 2020 by approximately
$80-85 million, suspending cash
dividends to shareholders for two quarters (preserving an
additional $142 million of
liquidity), furloughing a significant number of our year-round
hourly and salaried employees in the U.S., and implementing
six-month salary reductions for all salaried employees in the U.S.,
among other cost actions.
"As previously disclosed, on May 4,
2020, we completed an offering of $600 million in aggregate principal amount of
6.25% unsecured senior notes due 2025, a portion of which was
utilized to pay down the outstanding balance of our U.S. revolver
under the Vail Holdings Credit Agreement in its entirety.
Additionally, we entered into an amendment to the Vail Holdings
Credit Agreement, providing, among other terms, that Vail Holdings
will be exempt from complying with the agreement's financial
maintenance covenants for each of the fiscal quarters ending
July 31, 2020 through January 31, 2022 unless Vail Holdings makes a
one-time irrevocable election to terminate such exemption period
prior to such date. We expect to have sufficient liquidity
following these actions to fund our operations for up to two years,
even in the event of extended resort shutdowns."
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,
2020, 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,
2020 to the comparable quarter ended April 30, 2019 unless otherwise noted. The
following are segment highlights:
Mountain Segment
- Total lift revenue decreased $152.1
million, or 28.9%, to $374.8
million primarily due to decreased visitation associated
with the closure of our North American destination mountain resorts
and regional ski areas due to COVID-19, as well as the deferral of
$121 million of pass product revenue
to fiscal 2021 ($115 million of which
would have been recognized in the third quarter of fiscal 2020) as
a result of credits offered to 2019/2020 North American pass
product holders.
- Ski school revenue decreased $34.2
million, or 30.9%; dining revenue decreased $17.3 million, or 21.9% and retail/rental revenue
decreased $35.9 million, or 31.5%,
all primarily as a result of our resort and retail store closures
due to COVID-19, partially offset by incremental revenue from Peak
Resorts, Inc.
- Mountain Reported EBITDA decreased $166.7 million, or 35.6%, primarily due to
decreased visitation associated with the closure of our North
American destination mountain resorts and regional ski areas due to
COVID-19, as well as the deferral of $113
million of pass product revenue and related deferred costs
to fiscal 2021 as a result of credits offered to 2019/2020 North
American pass holders and adjusted for final foreign exchange
rates. Mountain Reported EBITDA includes $4.4 million of stock-based compensation expense
for the three months ended April 30,
2019 compared to $4.0 million
in the same period in the prior year.
Lodging Segment
- Lodging segment net revenue (excluding payroll cost
reimbursements) decreased $20.5
million, or 27.0%, primarily due to the closure of our North
American lodging properties as a result of COVID-19.
- Lodging Reported EBITDA, which includes $0.8 million of stock-based compensation expense
for the both the three months ended April
30, 2020 and 2019, decreased $9.7
million, or 76.8%, primarily due to the closure of our North
American lodging properties as a result of COVID-19.
Resort - Combination of Mountain and Lodging Segments
- Resort net revenue decreased $264.1
million, or 27.6%, to $693.7
million, primarily due to decreased visitation associated
with the closure of our resorts, retail stores and lodging
properties due to COVID-19, as well as the deferral of $121 million of pass product revenue to fiscal
2021 ($115 million of which would
have been recognized in the third quarter of fiscal 2020) as a
result of credits offered to 2019/2020 North American pass
holders.
- Resort Reported EBITDA was $304.4
million for the three months ended April 30, 2020, a decrease of $176.4 million, or 36.7%, compared to the same
period in the prior year, which includes impacts from the deferral
of $113 million of pass product
revenue and related deferred costs to fiscal 2021 as a results of
credits offered to 2019/2020 North American pass product holders,
$1.4 million of acquisition and
integration related expenses and approximately $1 million of net unfavorability from currency
translation related to operations at Whistler Blackcomb and our
Australian ski areas, 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 decreased $263.9
million, or 27.5%, to $694.1
million.
- Net income attributable to Vail Resorts, Inc. was $152.5 million, or $3.74 per diluted share, for the third quarter of
fiscal 2020 compared to net income attributable to Vail Resorts,
Inc. of $292.1 million, or
$7.12 per diluted share, in the third
fiscal quarter of the prior year. Fiscal 2020 third quarter net
income included the after-tax effect of asset impairments related
to the Company's Colorado resort
ground transportation company of approximately $21.3 million and acquisition and integration
related expenses of approximately $1.0
million.
Season Pass Sales
Commenting on the Company's season pass program, Katz said, "As
announced on April 27, 2020, to
address the difficult decision to close our North American mountain
resorts as a result of the unprecedented circumstances surrounding
COVID-19, we have rolled out a comprehensive plan to address our
pass holders' concerns about the early closure this past season and
provide improved coverage for the future.
"We are providing credits to 2019/2020 North American pass
holders to apply toward the purchase of a 2020/2021 pass product.
Season pass holders will receive a minimum credit of 20% toward
next season's pass. For season pass holders who used their pass
less than five days, they will be eligible for higher credits up to
a maximum of 80% for season pass holders who did not use their
season pass at all. For Epic Day Pass, Edge Card and other
frequency based products with unused days remaining, we will be
offering credits for each unused day up to a maximum of an 80%
credit. The credits will be available for our pass holders who
purchase 2020/2021 pass products by September 7, 2020.
"As a result of the early closure this season and the meaningful
credits we are offering to 2019/2020 North American pass holders,
we will be delaying the recognition of approximately $121 million of our deferred pass revenue, as
well as approximately $3 million of
related deferred costs (a net Resort Reported EBITDA impact of
approximately $118 million), that
would have been recognized in the remainder of fiscal 2020 and will
now be recognized primarily in the second and third quarters of
fiscal 2021. This shift in recognition timing will partially or
fully offset the negative impact of the credits being offered to
pass holders, depending upon the final usage of such credits
towards the purchase of 2020/2021 North American pass products.
"We are redefining how we will protect season passes through the
launch of 'Epic Coverage.' Epic Coverage is free for all North
American pass holders and completely replaces the need to purchase
pass insurance. Epic Coverage provides refunds in the unlikely
event of certain resort closures (e.g., for COVID-19), giving pass
holders a refund for any portion of the season that is lost.
Additionally, Epic Coverage provides a refund for personal
circumstances covered by our pass insurance for eligible injuries,
job losses and many other personal events. In addition to these
changes, in order to give our pass holders the time they need to
make decisions regarding next season, we are extending the deadline
for pass holders to receive spring benefits (including Buddy
Tickets) until September 7, 2020, and
we are extending the period for pass holders to lock in their
purchase with only $49 down for the
next few months. We will not be providing an update on the
results of season pass sales until our fourth quarter earnings
conference call in late September.
"We continue to be confident in the long-term prospects of our
business model that is built on the loyalty of our guests, the
strong lineup of season pass products that provide access to our
irreplaceable network of world-class resorts and the sophisticated
marketing approach we use to communicate with and attract our
guests. As we head into this summer and next ski season, we
will be providing an exceptional experience for our guests through
our passionate employees and the investments we've made in our
resorts and technology, supported by our strong capitalization and
liquidity that positions us well to pursue our growth goals over
time."
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
(866) 548-4713 (U.S. and Canada)
or (323) 794-2093 (international). A replay of the conference call
will be available two hours following the conclusion of the
conference call through June 18,
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 5152919. 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 destination mountain resorts and regional 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 future
liquidity; the effects of the COVID-19 pandemic on, among other
things, our operations and the travel patterns of our current and
potential customers; fiscal 2020 lift revenue and Resort Reported
EBITDA and our fiscal 2021 lift revenue and Resort Reported EBITDA;
and our expectations, including timing and plans for opening,
regarding the 2020 summer season and the 2020/2021 North American
ski season. 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 the ultimate duration of COVID-19
and its short-term and long-term impacts on consumer behaviors, the
economy generally and our business and results of operations;
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 COVID-19), 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
April 30,
|
|
Nine Months
Ended
April 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
revenue:
|
|
|
|
|
|
|
|
|
Mountain and Lodging
services and other
|
|
$
|
582,890
|
|
|
$
|
800,816
|
|
|
$
|
1,516,679
|
|
|
$
|
1,631,957
|
|
Mountain and Lodging
retail and dining
|
|
110,799
|
|
|
156,930
|
|
|
365,032
|
|
|
395,017
|
|
Resort net
revenue
|
|
693,689
|
|
|
957,746
|
|
|
1,881,711
|
|
|
2,026,974
|
|
Real
Estate
|
|
398
|
|
|
241
|
|
|
4,784
|
|
|
595
|
|
Total net
revenue
|
|
694,087
|
|
|
957,987
|
|
|
1,886,495
|
|
|
2,027,569
|
|
Segment operating
expense:
|
|
|
|
|
|
|
|
|
Mountain and Lodging
operating expense
|
|
285,764
|
|
|
349,647
|
|
|
902,316
|
|
|
894,392
|
|
Mountain and Lodging
retail and dining cost of products sold
|
|
42,663
|
|
|
59,615
|
|
|
147,533
|
|
|
157,996
|
|
General and
administrative
|
|
60,818
|
|
|
68,213
|
|
|
227,175
|
|
|
209,954
|
|
Resort operating
expense
|
|
389,245
|
|
|
477,475
|
|
|
1,277,024
|
|
|
1,262,342
|
|
Real Estate operating
expense
|
|
1,128
|
|
|
1,382
|
|
|
7,926
|
|
|
4,141
|
|
Total segment
operating expense
|
|
390,373
|
|
|
478,857
|
|
|
1,284,950
|
|
|
1,266,483
|
|
Other operating
(expense) income:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(64,730)
|
|
|
(55,260)
|
|
|
(186,387)
|
|
|
(161,541)
|
|
Gain on sale of real
property
|
|
—
|
|
|
268
|
|
|
207
|
|
|
268
|
|
Asset
impairments
|
|
(28,372)
|
|
|
—
|
|
|
(28,372)
|
|
|
—
|
|
Change in estimated
fair value of contingent consideration
|
|
8,000
|
|
|
(1,567)
|
|
|
5,264
|
|
|
(3,467)
|
|
(Loss) gain on
disposal of fixed assets and other, net
|
|
(380)
|
|
|
27
|
|
|
1,178
|
|
|
505
|
|
Income from
operations
|
|
218,232
|
|
|
422,598
|
|
|
393,435
|
|
|
596,851
|
|
Mountain equity
investment (loss) income, net
|
|
(90)
|
|
|
445
|
|
|
1,270
|
|
|
1,555
|
|
Investment income and
other, net
|
|
361
|
|
|
1,727
|
|
|
999
|
|
|
2,697
|
|
Foreign currency loss
on intercompany loans
|
|
(7,753)
|
|
|
(3,319)
|
|
|
(8,191)
|
|
|
(5,180)
|
|
Interest expense,
net
|
|
(24,479)
|
|
|
(19,575)
|
|
|
(73,303)
|
|
|
(59,215)
|
|
Income before
provision for income taxes
|
|
186,271
|
|
|
401,876
|
|
|
314,210
|
|
|
536,708
|
|
Provision for income
taxes
|
|
(26,440)
|
|
|
(93,346)
|
|
|
(47,190)
|
|
|
(120,914)
|
|
Net income
|
|
159,831
|
|
|
308,530
|
|
|
267,020
|
|
|
415,794
|
|
Net income
attributable to noncontrolling interests
|
|
(7,285)
|
|
|
(16,396)
|
|
|
(14,579)
|
|
|
(25,106)
|
|
Net income
attributable to Vail Resorts, Inc.
|
|
$
|
152,546
|
|
|
$
|
292,134
|
|
|
$
|
252,441
|
|
|
$
|
390,688
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
|
Basic net income per
share attributable to Vail Resorts, Inc.
|
|
$
|
3.79
|
|
|
$
|
7.26
|
|
|
$
|
6.26
|
|
|
$
|
9.68
|
|
Diluted net income
per share attributable to Vail Resorts, Inc.
|
|
$
|
3.74
|
|
|
$
|
7.12
|
|
|
$
|
6.17
|
|
|
$
|
9.48
|
|
Cash dividends
declared per share
|
|
$
|
1.76
|
|
|
$
|
1.76
|
|
|
$
|
5.28
|
|
|
$
|
4.70
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
40,237
|
|
|
40,255
|
|
|
40,299
|
|
|
40,364
|
|
Diluted
|
|
40,744
|
|
|
41,020
|
|
|
40,900
|
|
|
41,201
|
|
Vail Resorts,
Inc.
Consolidated
Condensed Statements of Operations - Other Data
(In
thousands)
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
April 30,
|
|
Nine Months
Ended
April 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
Mountain Reported
EBITDA
|
|
$
|
301,429
|
|
|
$
|
468,089
|
|
|
$
|
594,472
|
|
|
$
|
743,907
|
|
|
Lodging Reported
EBITDA
|
|
2,925
|
|
|
12,627
|
|
|
11,485
|
|
|
22,280
|
|
|
Resort Reported
EBITDA
|
|
304,354
|
|
|
480,716
|
|
|
605,957
|
|
|
766,187
|
|
|
Real Estate Reported
EBITDA
|
|
(730)
|
|
|
(873)
|
|
|
(2,935)
|
|
|
(3,278)
|
|
|
Total Reported
EBITDA
|
|
$
|
303,624
|
|
|
$
|
479,843
|
|
|
$
|
603,022
|
|
|
$
|
762,909
|
|
|
Mountain stock-based
compensation
|
|
$
|
4,453
|
|
|
$
|
4,049
|
|
|
$
|
13,418
|
|
|
$
|
12,258
|
|
|
Lodging stock-based
compensation
|
|
831
|
|
|
790
|
|
|
2,551
|
|
|
2,413
|
|
|
Resort stock-based
compensation
|
|
5,284
|
|
|
4,839
|
|
|
15,969
|
|
|
14,671
|
|
|
Real Estate
stock-based compensation
|
|
54
|
|
|
47
|
|
|
158
|
|
|
115
|
|
|
Total stock-based
compensation
|
|
$
|
5,338
|
|
|
$
|
4,886
|
|
|
$
|
16,127
|
|
|
$
|
14,786
|
|
|
Vail Resorts,
Inc.
|
Mountain Segment
Operating Results
|
(In thousands,
except ETP)
|
(Unaudited)
|
|
|
|
Three Months
Ended
April 30,
|
|
Percentage
Increase
|
|
Nine Months
Ended
April 30,
|
|
Percentage
Increase
|
|
|
2020
|
|
2019
|
|
(Decrease)
|
|
2020
|
|
2019
|
|
(Decrease)
|
Net Mountain
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lift
|
|
$
|
374,818
|
|
|
$
|
526,881
|
|
|
(28.9)
|
%
|
|
$
|
900,995
|
|
|
$
|
999,124
|
|
|
(9.8)
|
%
|
Ski school
|
|
76,563
|
|
|
110,755
|
|
|
(30.9)
|
%
|
|
187,840
|
|
|
207,271
|
|
|
(9.4)
|
%
|
Dining
|
|
61,632
|
|
|
78,928
|
|
|
(21.9)
|
%
|
|
158,980
|
|
|
162,629
|
|
|
(2.2)
|
%
|
Retail/rental
|
|
78,133
|
|
|
114,082
|
|
|
(31.5)
|
%
|
|
259,761
|
|
|
285,860
|
|
|
(9.1)
|
%
|
Other
|
|
44,158
|
|
|
47,252
|
|
|
(6.5)
|
%
|
|
154,105
|
|
|
144,093
|
|
|
6.9
|
%
|
Total Mountain net
revenue
|
|
635,304
|
|
|
877,898
|
|
|
(27.6)
|
%
|
|
1,661,681
|
|
|
1,798,977
|
|
|
(7.6)
|
%
|
Mountain operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
|
140,839
|
|
|
168,144
|
|
|
(16.2)
|
%
|
|
427,538
|
|
|
417,212
|
|
|
2.5
|
%
|
Retail cost of
sales
|
|
23,476
|
|
|
38,191
|
|
|
(38.5)
|
%
|
|
88,740
|
|
|
104,328
|
|
|
(14.9)
|
%
|
Resort related
fees
|
|
31,361
|
|
|
49,725
|
|
|
(36.9)
|
%
|
|
74,175
|
|
|
92,919
|
|
|
(20.2)
|
%
|
General and
administrative
|
|
52,252
|
|
|
58,402
|
|
|
(10.5)
|
%
|
|
194,896
|
|
|
178,952
|
|
|
8.9
|
%
|
Other
|
|
85,857
|
|
|
95,792
|
|
|
(10.4)
|
%
|
|
283,130
|
|
|
263,214
|
|
|
7.6
|
%
|
Total Mountain
operating expense
|
|
333,785
|
|
|
410,254
|
|
|
(18.6)
|
%
|
|
1,068,479
|
|
|
1,056,625
|
|
|
1.1
|
%
|
Mountain equity
investment (loss) income, net
|
|
(90)
|
|
|
445
|
|
|
(120.2)
|
%
|
|
1,270
|
|
|
1,555
|
|
|
(18.3)
|
%
|
Mountain Reported
EBITDA
|
|
$
|
301,429
|
|
|
$
|
468,089
|
|
|
(35.6)
|
%
|
|
$
|
594,472
|
|
|
$
|
743,907
|
|
|
(20.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total skier
visits
|
|
5,303
|
|
|
7,183
|
|
|
(26.2)
|
%
|
|
13,333
|
|
|
14,211
|
|
|
(6.2)
|
%
|
ETP
|
|
$
|
70.68
|
|
|
$
|
73.35
|
|
|
(3.6)
|
%
|
|
$
|
67.58
|
|
|
$
|
70.31
|
|
|
(3.9)
|
%
|
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
|
|
|
2020
|
|
2019
|
|
(Decrease)
|
|
2020
|
|
2019
|
|
(Decrease)
|
Lodging net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
rooms
|
|
$
|
8,126
|
|
|
$
|
12,352
|
|
|
(34.2)
|
%
|
|
$
|
39,323
|
|
|
$
|
43,499
|
|
|
(9.6)
|
%
|
Managed condominium
rooms
|
|
23,744
|
|
|
30,671
|
|
|
(22.6)
|
%
|
|
69,984
|
|
|
69,835
|
|
|
0.2
|
%
|
Dining
|
|
8,099
|
|
|
11,067
|
|
|
(26.8)
|
%
|
|
37,353
|
|
|
37,385
|
|
|
(0.1)
|
%
|
Transportation
|
|
5,672
|
|
|
8,578
|
|
|
(33.9)
|
%
|
|
15,748
|
|
|
18,774
|
|
|
(16.1)
|
%
|
Golf
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
10,606
|
|
|
9,628
|
|
|
10.2
|
%
|
Other
|
|
9,775
|
|
|
13,278
|
|
|
(26.4)
|
%
|
|
37,411
|
|
|
37,697
|
|
|
(0.8)
|
%
|
|
|
55,416
|
|
|
75,946
|
|
|
(27.0)
|
%
|
|
210,425
|
|
|
216,818
|
|
|
(2.9)
|
%
|
Payroll cost
reimbursements
|
|
2,969
|
|
|
3,902
|
|
|
(23.9)
|
%
|
|
9,605
|
|
|
11,179
|
|
|
(14.1)
|
%
|
Total Lodging net
revenue
|
|
58,385
|
|
|
79,848
|
|
|
(26.9)
|
%
|
|
220,030
|
|
|
227,997
|
|
|
(3.5)
|
%
|
Lodging operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
|
26,448
|
|
|
32,396
|
|
|
(18.4)
|
%
|
|
97,992
|
|
|
98,020
|
|
|
—
|
%
|
General and
administrative
|
|
8,566
|
|
|
9,811
|
|
|
(12.7)
|
%
|
|
32,279
|
|
|
31,002
|
|
|
4.1
|
%
|
Other
|
|
17,477
|
|
|
21,112
|
|
|
(17.2)
|
%
|
|
68,669
|
|
|
65,516
|
|
|
4.8
|
%
|
|
|
52,491
|
|
|
63,319
|
|
|
(17.1)
|
%
|
|
198,940
|
|
|
194,538
|
|
|
2.3
|
%
|
Reimbursed payroll
costs
|
|
2,969
|
|
|
3,902
|
|
|
(23.9)
|
%
|
|
9,605
|
|
|
11,179
|
|
|
(14.1)
|
%
|
Total Lodging
operating expense
|
|
55,460
|
|
|
67,221
|
|
|
(17.5)
|
%
|
|
208,545
|
|
|
205,717
|
|
|
1.4
|
%
|
Lodging Reported
EBITDA
|
|
$
|
2,925
|
|
|
$
|
12,627
|
|
|
(76.8)
|
%
|
|
$
|
11,485
|
|
|
$
|
22,280
|
|
|
(48.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
341.75
|
|
|
$
|
291.68
|
|
|
17.2
|
%
|
|
$
|
269.62
|
|
|
$
|
257.83
|
|
|
4.6
|
%
|
RevPAR
|
|
$
|
105.91
|
|
|
$
|
206.41
|
|
|
(48.7)
|
%
|
|
$
|
141.20
|
|
|
$
|
177.42
|
|
|
(20.4)
|
%
|
Managed condominium
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
404.57
|
|
|
$
|
403.04
|
|
|
0.4
|
%
|
|
$
|
334.32
|
|
|
$
|
355.74
|
|
|
(6.0)
|
%
|
RevPAR
|
|
$
|
108.08
|
|
|
$
|
167.49
|
|
|
(35.5)
|
%
|
|
$
|
102.04
|
|
|
$
|
125.42
|
|
|
(18.6)
|
%
|
Owned hotel and
managed condominium statistics (combined):
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
392.88
|
|
|
$
|
376.83
|
|
|
4.3
|
%
|
|
$
|
315.62
|
|
|
$
|
324.21
|
|
|
(2.6)
|
%
|
RevPAR
|
|
$
|
107.77
|
|
|
$
|
173.45
|
|
|
(37.9)
|
%
|
|
$
|
109.58
|
|
|
$
|
135.60
|
|
|
(19.2)
|
%
|
Key Balance Sheet
Data
|
(In
thousands)
|
(Unaudited)
|
|
|
|
As of April
30,
|
|
|
2020
|
|
2019
|
Real estate held for
sale and investment
|
|
$
|
96,565
|
|
|
$
|
101,251
|
|
Total Vail Resorts,
Inc. stockholders' equity
|
|
$
|
1,422,123
|
|
|
$
|
1,666,359
|
|
Long-term debt,
net
|
|
$
|
2,365,372
|
|
|
$
|
1,310,870
|
|
Long-term debt due
within one year
|
|
63,566
|
|
|
48,504
|
|
Total debt
|
|
2,428,938
|
|
|
1,359,374
|
|
Less: cash and cash
equivalents
|
|
482,656
|
|
|
59,636
|
|
Net debt
|
|
$
|
1,946,282
|
|
|
$
|
1,299,738
|
|
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
nine months ended April 30, 2020 and
2019.
|
(In thousands)
(Unaudited)
|
|
(In thousands)
(Unaudited)
|
|
Three Months Ended
April 30,
|
|
Nine Months Ended
April 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
152,546
|
|
|
$
|
292,134
|
|
|
$
|
252,441
|
|
|
$
|
390,688
|
|
Net income
attributable to noncontrolling interests
|
7,285
|
|
|
16,396
|
|
|
14,579
|
|
|
25,106
|
|
Net income
|
159,831
|
|
|
308,530
|
|
|
267,020
|
|
|
415,794
|
|
Provision for income
taxes
|
26,440
|
|
|
93,346
|
|
|
47,190
|
|
|
120,914
|
|
Income before
provision for income taxes
|
186,271
|
|
|
401,876
|
|
|
314,210
|
|
|
536,708
|
|
Depreciation and
amortization
|
64,730
|
|
|
55,260
|
|
|
186,387
|
|
|
161,541
|
|
Asset
impairments
|
28,372
|
|
|
—
|
|
|
28,372
|
|
|
—
|
|
Loss (gain) on
disposal of fixed assets and other, net
|
380
|
|
|
(27)
|
|
|
(1,178)
|
|
|
(505)
|
|
Change in fair value
of contingent consideration
|
(8,000)
|
|
|
1,567
|
|
|
(5,264)
|
|
|
3,467
|
|
Investment income and
other, net
|
(361)
|
|
|
(1,727)
|
|
|
(999)
|
|
|
(2,697)
|
|
Foreign currency loss
on intercompany loans
|
7,753
|
|
|
3,319
|
|
|
8,191
|
|
|
5,180
|
|
Interest expense,
net
|
24,479
|
|
|
19,575
|
|
|
73,303
|
|
|
59,215
|
|
Total Reported
EBITDA
|
$
|
303,624
|
|
|
$
|
479,843
|
|
|
$
|
603,022
|
|
|
$
|
762,909
|
|
|
|
|
|
|
|
|
|
Mountain Reported
EBITDA
|
$
|
301,429
|
|
|
$
|
468,089
|
|
|
$
|
594,472
|
|
|
$
|
743,907
|
|
Lodging Reported
EBITDA
|
2,925
|
|
|
12,627
|
|
|
11,485
|
|
|
22,280
|
|
Resort Reported
EBITDA*
|
304,354
|
|
|
480,716
|
|
|
605,957
|
|
|
766,187
|
|
Real Estate Reported
EBITDA
|
(730)
|
|
|
(873)
|
|
|
(2,935)
|
|
|
(3,278)
|
|
Total Reported
EBITDA
|
$
|
303,624
|
|
|
$
|
479,843
|
|
|
$
|
603,022
|
|
|
$
|
762,909
|
|
|
* 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 April 30, 2020.
|
(In thousands)
(Unaudited)
|
|
Twelve Months
Ended April 30,
|
|
2020
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
162,916
|
|
Net income
attributable to noncontrolling interests
|
11,803
|
|
Net income
|
174,719
|
|
Provision for income
taxes
|
1,748
|
|
Income before
provision for income taxes
|
176,467
|
|
Depreciation and
amortization
|
242,963
|
|
Gain on disposal of
fixed assets and other, net
|
(9)
|
|
Asset
impairments
|
28,372
|
|
Change in fair value
of contingent consideration
|
(3,364)
|
|
Investment income and
other, net
|
(1,388)
|
|
Foreign currency loss
on intercompany loans
|
5,865
|
|
Interest expense,
net
|
93,584
|
|
Total Reported
EBITDA
|
$
|
542,490
|
|
|
|
Mountain Reported
EBITDA
|
$
|
529,159
|
|
Lodging Reported
EBITDA
|
17,305
|
|
Resort Reported
EBITDA*
|
546,464
|
|
Real Estate Reported
EBITDA
|
(3,974)
|
|
Total Reported
EBITDA
|
$
|
542,490
|
|
|
* 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 April 30,
2020.
|
In thousands)
(Unaudited)
(As of April 30, 2020)
|
|
Long-term debt,
net
|
$
|
2,365,372
|
|
|
Long-term debt due
within one year
|
63,566
|
|
|
Total debt
|
2,428,938
|
|
|
Less: cash and cash
equivalents
|
482,656
|
|
|
Net debt
|
$
|
1,946,282
|
|
|
Net debt to Total
Reported EBITDA
|
3.6
|
x
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three and nine months ended
April 30, 2020 and 2019.
|
|
(In thousands)
(Unaudited)
Three Months Ended
April 30,
|
|
(In thousands)
(Unaudited)
Nine
Months Ended
April
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Real Estate Reported
EBITDA
|
|
$
|
(730)
|
|
|
$
|
(873)
|
|
|
$
|
(2,935)
|
|
|
$
|
(3,278)
|
|
Non-cash Real Estate
cost of sales
|
|
—
|
|
|
—
|
|
|
3,684
|
|
|
—
|
|
Non-cash Real Estate
stock-based compensation
|
|
54
|
|
|
47
|
|
|
158
|
|
|
115
|
|
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
|
|
(27)
|
|
|
5,113
|
|
|
111
|
|
|
5,205
|
|
Net Real Estate Cash
Flow
|
|
$
|
(703)
|
|
|
$
|
15,437
|
|
|
$
|
1,018
|
|
|
$
|
13,192
|
|
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SOURCE Vail Resorts, Inc.