BROOMFIELD, Colo., June 6, 2024
/PRNewswire/ -- Vail Resorts, Inc. (NYSE: MTN) today reported
results for the third quarter of fiscal 2024 ended April 30, 2024, reported early season pass sales,
updated fiscal 2024 guidance, and announced share repurchases
completed during the quarter.
Highlights
- Net income attributable to Vail Resorts, Inc. was $362.0 million for the third fiscal quarter of
2024 compared to net income attributable to Vail Resorts, Inc. of
$325.0 million in the same period in
the prior year.
- Resort Reported EBITDA was $654.4
million for the third quarter of fiscal 2024, which included
$1.3 million of acquisition related
expenses. In the same period in the prior year, Resort Reported
EBITDA was $623.3 million, which
included $0.1 million of acquisition
and integration related expenses.
- The Company updated its fiscal 2024 guidance range. On a
comparable basis with its prior guidance issued on March 11, 2024, Resort Reported EBITDA is now
expected to be between $833 million
and $851 million. With the closing of
the acquisition of Crans-Montana Mountain Resort ("Crans-Montana"),
the Company now expects net income attributable to Vail Resorts,
Inc. to be between $224 million and
$256 million and Resort Reported
EBITDA to be between $825 million and
$843 million.
- Pass product sales through May 28,
2024 for the upcoming 2024/2025 North American ski season
decreased approximately 5% in units and increased approximately 1%
in sales dollars as compared to the prior year period through
May 30, 2023. Pass product sales are
adjusted to eliminate the impact of changes in foreign currency
exchange rates by applying current U.S. dollar exchange rates to
both current period and prior period sales for Whistler
Blackcomb.
- The Company declared a quarterly cash dividend of $2.22 per share of Vail Resorts' common stock
that will be payable on July 10, 2024
to shareholders of record as of June 25,
2024 and repurchased approximately 0.3 million shares during
the quarter at an average price of approximately $217 for a total of approximately $75 million. This amount brings the Company's
total fiscal year-to-date repurchases to $125 million for a total of 0.6 million
shares.
- On May 2, 2024, the Company
closed on its acquisition of Crans-Montana Mountain Resort in
Switzerland, the Company's second
ski resort in Europe.
- On May 8, 2024, the Company
completed an offering of $600 million
aggregate principal amount of 6.50% Senior Notes due 2032. The
Company used the net proceeds from the issuance of these notes to
fund the redemption of the entire amount of $600 million 6.25% Senior Notes due 2025 on
May 15, 2024 at par. Additionally,
the Company completed an amendment of its Vail Holdings Credit
Agreement to extend the maturity of the $969
million term loan and $500
million revolver from 2026 to 2029.
Commenting on the Company's fiscal 2024 third quarter results,
Kirsten Lynch, Chief Executive
Officer, said, "Given the unfavorable conditions across our North
American resorts for a large portion of the 2023/2024 North
American ski season, we were pleased to see improved results in
March and April, with visitation across our western North American
resorts in particular benefiting from improved conditions. While
pass product visitation returned as expected, as we communicated in
April, lift ticket visitation did not return to typical historical
guest behavior for the spring, primarily at Whistler Blackcomb,
which was down significantly relative to the prior year period.
Despite these challenges, the Company grew resort net revenue and
Resort Reported EBITDA to record levels in the third quarter,
supported by the stability created from our advance commitment
strategy, operations executional excellence, and continued strong
growth in ancillary spending per skier visit across our ski school,
dining, and rental businesses at our resorts.
"Our results throughout the 2023/2024 North American ski season
highlight both the stability provided by our season pass program
and the investments we have made in our resorts and employees. The
winter season included significant weather-related challenges, with
approximately 28% lower snowfall for the full winter season across
our western North American resorts compared to the same period in
the prior year and limited natural snow and variable temperatures
at our Eastern U.S. resorts (comprising the Midwest, Mid-Atlantic,
and Northeast). For the 2023/2024 North American and European ski
season, total skier visits declined 7.7% as compared to the prior
year period, which we believe was driven by a combination of
unfavorable conditions and broader industry normalization
post-COVID following record visitation in the U.S. during the
2022/2023 ski season. Skier visitation from lift ticket guests was
particularly impacted, declining 17% compared to the prior year
period. Despite the decline in visitation, ancillary spending was
strong across our ski school, dining, and rental businesses at our
resorts. Resort net revenue for the second and third quarter
combined period increased 1% and Resort Reported EBITDA increased
6% over the prior year, supported by our advance commitment
strategy, strong growth in guest ancillary spending per visit, and
continued cost discipline."
Regarding the outlook for fiscal 2024, Lynch said, "While
late season results improved, we now expect Resort Reported EBITDA
to be between $833 million and
$851 million on a comparable basis
with our prior guidance issued March 11,
2024, which included $4
million of acquisition related expenses specific to
Crans-Montana, but excluded closing costs, operating results, and
integration expenses associated with Crans-Montana. The reduction
relative to the guidance provided on March
11, 2024 is primarily from lift ticket visitation not
returning to typical historical spring behavior as expected in the
March and April period, primarily at Whistler Blackcomb, along with
lowered expectations for the fourth quarter of $9 million primarily related to the demand
outlook for our Australian resorts. In addition, with the closing
of the acquisition, we now expect Crans-Montana to contribute
negative $12 million of Resort
Reported EBITDA for fiscal 2024, including negative $9 million from acquisition, closing, and
integration expenses and negative $3
million from operating results in the fourth quarter.
Including the full impact of Crans-Montana, the Company now expects
net income attributable to Vail Resorts, Inc. to be between
$224 million and $256 million and Resort Reported EBITDA to be
between $825 million and $843 million."
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 fiscal quarter ended April 30, 2024, which was filed today with the
Securities and Exchange Commission. The following are segment
highlights:
Mountain Segment
- Total lift revenue increased $35.6
million, or 5.0% compared to the same period in the prior
year, to $745.7 million for the three
months ended April 30, 2024,
primarily due to an increase in pass product revenue of 13.7%,
which was primarily driven by an increase in pass product sales for
the 2023/2024 North American ski season, partially offset by a
decrease in non-pass product lift revenue of 5.7%. The decrease in
non-pass product lift revenue was driven by a decrease in skier
visitation across all regions, which was impacted by challenging
conditions at our North American resorts for a large portion of the
season and broader industry normalization post-COVID following
record visitation in the U.S. during the 2022/2023 ski season,
partially offset by an increase in non-pass Effective Ticket Price
("ETP") of 9.9%.
- Ski school revenue increased $16.1
million, or 11.1% and dining revenue increased $7.8 million, or 7.7%, which each benefited from
an increase in guest spending per visit across our North American
resorts.
- Retail/rental revenue decreased $11.7
million, or 8.7%, for which retail sales decreased
$6.6 million, or 10.0%, and rental
sales decreased $5.1 million, or
7.5%. The decrease in both retail and rental revenue was primarily
driven by our exit of certain leased store operations which we
operated in the prior year, which resulted in a reduction in
revenue of approximately $7.8
million, as well as a decrease in skier visitation which
impacted sales at our on-mountain retail outlets.
- Operating expense increased $20.7
million, or 3.8%, which was primarily attributable to an
increase in general and administrative expenses and increased
variable expenses associated with increased revenue.
- Mountain Reported EBITDA increased $31.7
million, or 5.2%, for the third quarter compared to the same
period in the prior year, which includes $5.4 million of stock based compensation expense
for the three months ended April 30,
2024 compared to $4.9 million
in the same period in the prior year.
Lodging Segment
- Lodging segment net revenue (excluding payroll cost
reimbursements) for the three months ended April 30, 2024 decreased $6.0 million, or 6.8%, as compared to the same
period in the prior year, primarily due to a decrease in revenue
from managed condominium rooms of $3.0
million or 7.9%, as a result of a reduction in our inventory
of available managed condominium rooms proximate to our mountain
resorts, as well as decreased demand, including the impact of
decreased skier visitation driven by challenging weather conditions
at our North American resorts for a large portion of the season
compared to the prior year. Other revenue also decreased
$2.2 million or 17.4%, primarily due
to decreases in ancillary and other revenues.
- Operating expense (excluding payroll cost reimbursements)
decreased $5.4 million, or 7.5%,
which was primarily attributable to lower staffing required to
support a reduced inventory of managed condominium rooms and a
reduction in labor hours as a result of decreased demand.
- Lodging Reported EBITDA for the three months ended April 30, 2024 decreased $0.6 million, or 3.7%, for the third quarter
compared to the same period in the prior year, which includes
$0.7 million of stock-based
compensation expense for the three months ended April 30, 2024 compared to $0.9 million in the same period in the prior
year.
Resort - Combination of Mountain and Lodging Segments
- Resort net revenue increased $44.8
million, or 3.6%, compared to the same period in the prior
year, to $1,283.1 million for the
three months ended April 30,
2024.
- Resort Reported EBITDA was $654.4
million for the three months ended April 30, 2024, an increase of $31.0 million, or 5.0%, compared to the same
period in the prior year.
Total Performance
- Total net revenue increased $44.9
million, or 3.6%, to $1,283.3
million for the three months ended April 30, 2024 as compared to the same period in
the prior year.
- Net income attributable to Vail Resorts, Inc. was $362.0 million, or $9.54 per diluted share, for the third quarter of
fiscal 2024 compared to the net income attributable to Vail
Resorts, Inc. of $325.0 million, or
$8.18 per diluted share, in the third
quarter of the prior year. Net income for the third quarter of
fiscal 2024 includes approximately $37
million of pre-tax expense associated with a change in the
estimated fair value of the contingent consideration liability
related to our Park City resort lease, compared to approximately
$46 million of pre-tax expense in the
third quarter of the prior year. Additionally, net income for the
third quarter of fiscal 2024 includes the after-tax effect of
acquisition related expenses of approximately $1.0 million, compared to $0.1 million of acquisition and integration
related expenses in the third quarter of the prior year.
Liquidity and Capital Structure Update
Commenting on capital allocation, Lynch said, "Our balance sheet
remains strong, including total cash and revolver availability as
of April 30, 2024 of approximately
$1.3 billion, with $705 million of cash on hand, $409 million of U.S. revolver availability under
the Vail Holdings Credit Agreement and $216
million of revolver availability under the Whistler Credit
Agreement. As of April 30, 2024, our
Net Debt was 2.4 times trailing twelve months Total Reported
EBITDA. On May 8, 2024, we completed
an offering of $600 million aggregate
principal amount of 6.50% Senior Notes due 2032, and used the net
proceeds from these notes to fund the redemption of the entire
amount of $600 million 6.25% Senior
Notes due 2025 on May 15, 2024.
Additionally, the Company completed an amendment of its Vail
Holdings Credit Agreement to extend the maturity of the
$969 million term loan and
$500 million revolver from 2026 to
2029. The Company repurchased approximately 0.3 million shares at
an average price of approximately $217 for a total of $75.0
million during the quarter. For the nine months ended
April 30, 2024, the Company
repurchased 0.6 million shares for approximately $125 million. We have approximately 0.8 million
shares remaining under our authorization for share repurchases and
remain focused on returning capital to shareholders while always
prioritizing the long-term value of our shares. Additionally, the
Company declared a quarterly cash dividend on Vail Resorts' common
stock of $2.22 per share. The
dividend will be payable on July 10,
2024 to shareholders of record as of June 25, 2024. We will continue to be disciplined
stewards of our capital and remain committed to prioritizing
investments in our guest and employee experience, high-return
capital projects, strategic acquisition opportunities such as the
recent addition of Crans-Montana, and returning capital to our
shareholders through our quarterly dividend and share repurchase
program."
Crans-Montana Mountain Resort
As previously announced, on May 2,
2024, the Company closed on the purchase of its second
European resort acquisition, Crans-Montana, for a purchase price of
CHF 97.2 million ($106.8 million), after adjustments for certain
agreed-upon items, including a CHF 4
million reduction in the purchase price to account for
timing of closing after the winter season. The Company acquired an
84-percent ownership stake in Remontées Mécaniques Crans Montana
Aminona (CMA) SA, which controls and
operates all the resort's lifts and supporting mountain operations,
including four retail and rental locations. The Company also
acquired full ownership of SportLife AG (increased from the
previously announced 80% ownership stake), which operates one of
the ski schools located at the resort, and full ownership of 11
restaurants located on and around the mountain. This world-class
resort spans over 1,400 meters (approximately 4,593 feet) of
skiable vertical terrain and 140 kilometers (approximately 87
miles) of trails. Located in the Valais canton of Switzerland, Crans-Montana is approximately
two and a half hours from Geneva
and less than four hours from Milan and Zurich. The valuation for the entirety of the
resort operations was CHF 118.5
million, including approximately CHF
7 million of debt that will remain in place and adjusted for
purchase price adjustments to account for seasonality and closing
timing. Vail Resorts anticipates that the resort will generate
approximately CHF 5 million of Resort
Reported EBITDA in its fiscal year ending July 31, 2025, the first full year of operations
under the Company's ownership. We expect significant EBITDA growth
over time from the inclusion of the resort on the Epic Pass
products, network synergy, and investments in the guest experience.
Subject to the timing of capital project approvals and completion,
Vail Resorts is planning to invest approximately CHF 30 million over the next five years in
one-time capital spending to elevate the guest experience. Normal
annual maintenance capital spending is expected to be approximately
CHF 3 million.
Capital Investments
Regarding calendar year 2024 capital expenditures, Lynch said,
"As previously announced, we expect our capital plan for calendar
year 2024 to be approximately $189
million to $194 million,
excluding $13 million of incremental
capital investments in premium fleet and fulfillment infrastructure
to support the official launch of My Epic Gear for the 2024/2025
winter season at 12 destination and regional resorts across
North America, $11 million of growth capital investments at
Andermatt-Sedrun, $1 million of
reimbursable capital, and investments at Crans-Montana, which
we expect will include $3 million of
maintenance capital expenditures and $2
million associated with integration activities at
Crans-Montana. Including My Epic Gear premium fleet, fulfillment
infrastructure capital, one-time investments, and investments at
Crans-Montana, our total capital plan for calendar year 2024 is now
expected to be approximately $219
million to $224 million."
Season Pass Sales
Commenting on the Company's season pass sales for the upcoming
2024/2025 North American ski season, Lynch said, "Pass product
sales through May 28, 2024 for the
upcoming North American ski season decreased approximately 5% in
units and increased approximately 1% in sales dollars as compared
to the period in the prior year through May
30, 2023. Pass sales dollars are benefiting from the 8%
price increase relative to the 2023/2024 season, partially offset
by the mix impact from the growth of Epic Day Pass products. Pass
product sales are adjusted to eliminate the impact of foreign
currency by applying an exchange rate of $0.73 between the Canadian dollar and U.S. dollar
in both periods for Whistler Blackcomb pass sales."
Lynch continued, "Pass product sales for this past season, the
2023/2024 North American ski season, had grown 62% in units and 43%
in sales dollars over the past three years. Since the pass price
reset in the spring of 2021, we have increased pass product pricing
25% through spring 2024. We believe the spring pass results for
guests committing for winter 2024/2025 were impacted by the
industry decline in visitation following a record 2022/2023 U.S.
ski season. The decline in units relative to the prior year season
to date results was primarily driven by a decline in new pass
holders. The primary source of new pass holders in the spring are
lift ticket guests that visited in the prior winter season. This
past season, lift ticket visitation declined due to weather, and
did not fully return to typical behavior after conditions improved,
creating a smaller audience as the primary source of new pass
holders in the spring. For renewing pass holders, the Company
achieved strong unit growth among the Company's most loyal, tenured
renewing pass holders (those who have had a pass for three years or
more). Spring renewals for lower tenured pass holders (first time
and second year pass holders) demonstrated lower renewal rates in
the spring, which may reflect delayed decision making to the fall.
Overall renewing pass holder product net migration was positive,
and Epic Day Pass products experienced modest unit growth driven by
the strength in renewing pass holders.
"The majority of our pass selling season is ahead of us, and we
believe the full year pass unit and sales dollar trends will be
relatively stable with the spring results. We will provide more
information about our pass sales results in our September 2024 earnings release."
Regarding Epic Australia Pass sales, Lynch commented, "Epic
Australia Pass sales end on June 12,
2024 and are down approximately 22% in units through
May 29, 2024, which we believe is
primarily a result of the historically poor conditions during the
2023 ski season in Australia. The
Epic Australia Pass has grown 43% in units over the past three
years."
Updated Outlook
- Resort Reported EBITDA, on a comparable basis with its prior
guidance issued on March 11, 2024
which included $4 million of
acquisition related expenses specific to Crans-Montana but excluded
closing costs, operating results, and integration expenses
associated with Crans-Montana, is expected to be between
$833 million and $851 million for fiscal 2024. With the closing of
the acquisition, Crans-Montana is now expected to contribute
negative $12 million of Resort
Reported EBITDA for fiscal 2024, including negative $3 million from operating results and negative
$9 million from acquisition, closing,
and integration expenses. Including the full impact of
Crans-Montana, the Company expects net income attributable to Vail
Resorts, Inc. to be between $224
million and $256 million and
Resort Reported EBITDA to be between $825
million and $843 million.
- For the fiscal year to date period, the Company reported an
increase of $37 million in expense
associated with a change in the estimated fair value of the
contingent consideration liability related to our Park City resort
lease.
- Resort EBITDA Margin is expected to be approximately 28.9% in
fiscal 2024 at the midpoint of our guidance range. Excluding the
impact from Crans-Montana, Resort EBITDA Margin would be 29.2% in
fiscal 2024 at the midpoint of our guidance range.
- The updated outlook for fiscal year 2024 assumes a continuation
of the current economic environment and normal weather conditions
and operations throughout the Australian ski season and
North America summer season, both
of which begin in our fourth quarter.
- The guidance assumes an exchange rate of $0.73 between the Canadian dollar and U.S. dollar
related to the operations of Whistler Blackcomb in Canada, an exchange rate of $0.66 between the Australian dollar and U.S.
dollar related to the operations of Perisher, Falls Creek and
Hotham in Australia, and an
exchange rate of $1.10 between the
Swiss Franc and U.S. dollar related to the operations of
Andermatt-Sedrun and Crans-Montana in Switzerland.
The following table reflects the forecasted guidance range for
the Company's fiscal year ending July 31,
2024, for Total Reported EBITDA (after stock-based
compensation expense) and reconciles net income attributable to
Vail Resorts, Inc. guidance to such Total Reported EBITDA
guidance.
|
Fiscal 2024
Guidance
|
|
(In
thousands)
|
|
For the Year
Ending
|
|
July 31, 2024
(6)
|
|
Low
End
|
|
High
End
|
|
Range
|
|
Range
|
Net income attributable
to Vail Resorts, Inc.
|
$
224,000
|
|
$
256,000
|
Net income attributable
to noncontrolling interests
|
20,000
|
|
14,000
|
Net income
|
244,000
|
|
270,000
|
Provision for income
taxes (1)
|
91,000
|
|
101,000
|
Income before income
taxes
|
335,000
|
|
371,000
|
Depreciation and
amortization
|
277,000
|
|
273,000
|
Interest expense,
net
|
164,000
|
|
160,000
|
Other
(2)
|
49,000
|
|
41,000
|
Total Reported
EBITDA
|
$
825,000
|
|
$
845,000
|
|
|
|
|
Mountain Reported
EBITDA (3)
|
$
802,000
|
|
$
820,000
|
Lodging Reported EBITDA
(4)
|
22,000
|
|
24,000
|
Resort Reported EBITDA
(5)
|
825,000
|
|
843,000
|
Real Estate Reported
EBITDA
|
—
|
|
2,000
|
Total Reported
EBITDA
|
$
825,000
|
|
$
845,000
|
|
(1)
The provision for income taxes may be
impacted by excess tax benefits primarily resulting from vesting
and exercises of equity awards. Our 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 may be
in-the-money depending on the current value of the stock
price.
|
(2)
Our guidance includes certain forward
looking 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 forward looking
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.
Additionally, our guidance excludes the impact of any future sales
or disposals of land or other assets, which are contingent upon
future approvals or other outcomes.
|
(3)
Mountain Reported EBITDA also includes
approximately $23 million of stock-based compensation.
|
(4)
Lodging Reported EBITDA also includes
approximately $4 million of stock-based compensation.
|
(5)
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.
|
(6)
Guidance estimates are predicated on an
exchange rate of $0.73 between the Canadian dollar and U.S. dollar,
related to the operations of Whistler Blackcomb in Canada; an
exchange rate of $0.66 between the Australian dollar and U.S.
dollar, related to the operations of our Australian ski areas; and
an exchange rate of $1.10 between the Swiss franc and U.S. dollar,
related to the operations of Andermatt-Sedrun and Crans-Montana in
Switzerland.
|
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) 343-5419 (U.S. and Canada)
or +1 (203) 518-9731 (international). The conference ID is MTNQ324.
A replay of the conference call will be available two hours
following the conclusion of the conference call through
June 13, 2024, at 8:00 p.m. eastern time. To access the replay,
dial (800) 839-1320 (U.S. and Canada) or +1 (402) 220-0488 (international).
The conference call will also be archived at
www.vailresorts.com.
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts is a network of the best destination and
close-to-home ski resorts in the world including Vail Mountain,
Breckenridge, Park City Mountain,
Whistler Blackcomb, Stowe, and 32 additional resorts across
North America; Andermatt-Sedrun
and Crans-Montana in Switzerland;
and Perisher, Hotham, and Falls Creek in Australia. We are passionate about providing
an Experience of a Lifetime to our team members and guests, and our
EpicPromise is to reach a zero net operating footprint by 2030,
support our employees and communities, and broaden engagement in
our sport. Our company owns and/or manages a collection of elegant
hotels under the RockResorts brand, a portfolio of vacation
rentals, condominiums and branded hotels located in close proximity
to our mountain destinations, as well as the Grand Teton Lodge
Company in Jackson Hole, Wyo. Vail
Resorts Retail operates more than 250 retail and rental locations
across North America. Learn more
about our company at www.VailResorts.com, or discover our resorts
and pass options at www.EpicPass.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 the statements regarding expected fiscal
2024 performance (including the assumptions related thereto),
including our expected Resort Reported EBITDA and expected net
income; our expectations regarding the Crans-Montana acquisition;
our expectations regarding our liquidity; sales patterns and
expectations related to our pass products; our expectations related
to the 2024 Australian ski season and the 2024 North American
summer season; our expectations regarding our ancillary lines of
business; our expectations regarding the My Epic Gear program; the
payment of dividends; and our capital plans and expectations
related thereto. 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 economy generally and our
business and results of operations, including the ultimate amount
of refunds that we would be required to refund to our pass product
holders for qualifying circumstances under our Epic Coverage
program; prolonged weakness in general economic conditions,
including adverse effects on the overall travel and leisure related
industries; risks associated with the effects of high or prolonged
inflation, rising interest rates and financial institution
disruptions; unfavorable weather conditions or the impact of
natural disasters or other unexpected events; the willingness of
our guests to travel due to terrorism, the uncertainty of military
conflicts or public health emergencies, and the cost and
availability of travel options and changing consumer preferences,
discretionary spending habits, or willingness to travel; risks
related to interruptions or disruptions of our information
technology systems, data security, or cyberattacks; 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;
our ability to acquire, develop and implement relevant technology
offerings for customers and partners, including effectively
implementing our My Epic application; the seasonality of our
business combined with adverse events that may occur during our
peak operating periods; competition in our mountain and lodging
businesses or with other recreational and leisure activities; risks
related to the 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 related to federal, state, local and
foreign government laws, rules , and regulations, including
environmental and health and safety laws 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, properties and services
effectively; potential failure to adapt to technological
developments or industry trends regarding information technology;
risks related to our workforce, including increased labor costs,
loss of key personnel, and our ability to maintain adequate
staffing, including hiring and retaining a sufficient seasonal
workforce; 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; risks related to
scrutiny and changing expectations regarding our environmental,
social and governance practices and reporting; our ability to
successfully integrate acquired businesses, or that acquired
businesses may fail to perform in accordance with expectations,
such as, the Seven Springs Resorts, including their integration
into our internal controls and infrastructure; our ability to
successfully navigate new markets , including Europe; risks associated with international
operations; fluctuations in foreign currency exchange rates where
the Company has foreign currency exposure, primarily the Canadian
and Australian dollars and the Swiss franc, as compared to the U.S.
dollar; changes in tax laws, regulations or interpretations, or
adverse determinations by taxing authorities; risks related to our
indebtedness and our ability to satisfy our debt service
requirements under our outstanding debt including our unsecured
senior notes, which could reduce our ability to use our cash flow
to fund our operations, capital expenditures, future business
opportunities and other purposes; a materially adverse change in
our financial condition; adverse consequences of current or future
legal claims; changes in accounting judgments and estimates,
accounting principles, policies or guidelines; 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, 2023, which was filed on September 28, 2023.
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,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net revenue:
|
|
|
|
|
|
|
|
Mountain and Lodging
services and other
|
$ 1,098,619
|
|
$ 1,054,134
|
|
$ 2,186,506
|
|
$ 2,166,357
|
Mountain and Lodging
retail and dining
|
184,494
|
|
184,142
|
|
428,681
|
|
445,272
|
Resort net
revenue
|
1,283,113
|
|
1,238,276
|
|
2,615,187
|
|
2,611,629
|
Real Estate
|
169
|
|
155
|
|
4,618
|
|
7,967
|
Total net
revenue
|
1,283,282
|
|
1,238,431
|
|
2,619,805
|
|
2,619,596
|
Segment operating
expense:
|
|
|
|
|
|
|
|
Mountain and Lodging
operating expense
|
471,182
|
|
462,613
|
|
1,200,928
|
|
1,212,115
|
Mountain and Lodging
retail and dining cost of products sold
|
64,439
|
|
63,575
|
|
161,023
|
|
174,091
|
General and
administrative
|
94,214
|
|
88,860
|
|
314,953
|
|
304,275
|
Resort operating
expense
|
629,835
|
|
615,048
|
|
1,676,904
|
|
1,690,481
|
Real Estate operating
expense
|
1,258
|
|
1,679
|
|
8,115
|
|
9,371
|
Total segment
operating expense
|
631,093
|
|
616,727
|
|
1,685,019
|
|
1,699,852
|
Other operating
(expense) income:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
(68,486)
|
|
(69,097)
|
|
(204,613)
|
|
(199,700)
|
Gain on sale of real
property
|
—
|
|
88
|
|
6,285
|
|
845
|
Change in estimated
fair value of contingent consideration
|
(36,500)
|
|
(45,900)
|
|
(42,957)
|
|
(47,636)
|
Loss on disposal of
fixed assets and other, net
|
(571)
|
|
(6,269)
|
|
(3,372)
|
|
(8,055)
|
Income from
operations
|
546,632
|
|
500,526
|
|
690,129
|
|
665,198
|
Mountain equity
investment income, net
|
1,093
|
|
94
|
|
1,373
|
|
482
|
Investment income and
other, net
|
5,096
|
|
7,740
|
|
13,643
|
|
17,734
|
Foreign currency loss
on intercompany loans
|
(2,305)
|
|
(1,766)
|
|
(4,230)
|
|
(5,563)
|
Interest expense,
net
|
(39,853)
|
|
(39,139)
|
|
(121,168)
|
|
(112,811)
|
Income before provision
for income taxes
|
510,663
|
|
467,455
|
|
579,747
|
|
565,040
|
Provision for income
taxes
|
(129,280)
|
|
(124,289)
|
|
(151,606)
|
|
(145,315)
|
Net income
|
381,383
|
|
343,166
|
|
428,141
|
|
419,725
|
Net income
attributable to noncontrolling interests
|
(19,388)
|
|
(18,160)
|
|
(22,359)
|
|
(23,011)
|
Net income attributable
to Vail Resorts, Inc.
|
$
361,995
|
|
$
325,006
|
|
$
405,782
|
|
$
396,714
|
Per share
amounts:
|
|
|
|
|
|
|
|
Basic net income per
share attributable to Vail Resorts, Inc.
|
$
9.57
|
|
$
8.20
|
|
$
10.69
|
|
$
9.90
|
Diluted net income per
share attributable to Vail Resorts, Inc.
|
$
9.54
|
|
$
8.18
|
|
$
10.66
|
|
$
9.87
|
Cash dividends
declared per share
|
$
2.22
|
|
$
2.06
|
|
$
6.34
|
|
$
5.88
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
37,839
|
|
39,620
|
|
37,974
|
|
40,082
|
Diluted
|
37,936
|
|
39,724
|
|
38,067
|
|
40,180
|
Vail Resorts,
Inc.
Consolidated
Condensed Statements of Operations - Other Data
(In
thousands)
(Unaudited)
|
|
Three Months Ended
April 30,
|
|
Nine Months Ended
April 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Other
Data:
|
|
|
|
|
|
|
|
Mountain Reported
EBITDA
|
$
638,587
|
|
$
606,926
|
|
$
919,402
|
|
$
913,644
|
Lodging Reported
EBITDA
|
15,784
|
|
16,396
|
|
20,254
|
|
7,986
|
Resort Reported
EBITDA
|
654,371
|
|
623,322
|
|
939,656
|
|
921,630
|
Real Estate Reported
EBITDA
|
(1,089)
|
|
(1,436)
|
|
2,788
|
|
(559)
|
Total Reported
EBITDA
|
$
653,282
|
|
$
621,886
|
|
$
942,444
|
|
$
921,071
|
Mountain stock-based
compensation
|
$
5,355
|
|
$
4,881
|
|
$
17,549
|
|
$
15,960
|
Lodging stock-based
compensation
|
712
|
|
947
|
|
2,540
|
|
2,957
|
Resort stock-based
compensation
|
6,067
|
|
5,828
|
|
20,089
|
|
18,917
|
Real Estate stock-based
compensation
|
52
|
|
45
|
|
162
|
|
145
|
Total stock-based
compensation
|
$
6,119
|
|
$
5,873
|
|
$
20,251
|
|
$
19,062
|
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
|
|
2024
|
|
2023
|
|
(Decrease)
|
|
2024
|
|
2023
|
|
(Decrease)
|
Net Mountain
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Lift
|
$
745,677
|
|
$
710,052
|
|
5.0 %
|
|
$
1,394,526
|
|
$
1,362,195
|
|
2.4 %
|
Ski school
|
161,248
|
|
145,134
|
|
11.1 %
|
|
295,055
|
|
277,512
|
|
6.3 %
|
Dining
|
109,471
|
|
101,683
|
|
7.7 %
|
|
209,608
|
|
206,953
|
|
1.3 %
|
Retail/rental
|
123,262
|
|
135,008
|
|
(8.7) %
|
|
292,892
|
|
335,284
|
|
(12.6) %
|
Other
|
56,400
|
|
52,853
|
|
6.7 %
|
|
176,413
|
|
177,945
|
|
(0.9) %
|
Total Mountain net
revenue
|
1,196,058
|
|
1,144,730
|
|
4.5 %
|
|
2,368,494
|
|
2,359,889
|
|
0.4 %
|
Mountain operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
246,563
|
|
242,275
|
|
1.8 %
|
|
611,253
|
|
627,857
|
|
(2.6) %
|
Retail cost of
sales
|
36,668
|
|
36,551
|
|
0.3 %
|
|
95,666
|
|
105,489
|
|
(9.3) %
|
Resort related
fees
|
55,945
|
|
53,454
|
|
4.7 %
|
|
104,208
|
|
100,635
|
|
3.6 %
|
General and
administrative
|
79,969
|
|
73,791
|
|
8.4 %
|
|
269,490
|
|
254,445
|
|
5.9 %
|
Other
|
139,419
|
|
131,827
|
|
5.8 %
|
|
369,848
|
|
358,301
|
|
3.2 %
|
Total Mountain
operating expense
|
558,564
|
|
537,898
|
|
3.8 %
|
|
1,450,465
|
|
1,446,727
|
|
0.3 %
|
Mountain equity
investment income, net
|
1,093
|
|
94
|
|
1,062.8 %
|
|
1,373
|
|
482
|
|
184.9 %
|
Mountain Reported
EBITDA
|
$
638,587
|
|
$
606,926
|
|
5.2 %
|
|
$
919,402
|
|
$
913,644
|
|
0.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Total skier
visits
|
8,943
|
|
9,242
|
|
(3.2) %
|
|
16,865
|
|
18,543
|
|
(9.0) %
|
ETP
|
$
83.38
|
|
$
76.83
|
|
8.5 %
|
|
$
82.69
|
|
$
73.46
|
|
12.6 %
|
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
|
|
2024
|
|
2023
|
|
(Decrease)
|
|
2024
|
|
2023
|
|
(Decrease)
|
Lodging net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
rooms
|
$
14,978
|
|
$
15,091
|
|
(0.7) %
|
|
$
53,738
|
|
$
52,135
|
|
3.1 %
|
Managed condominium
rooms
|
35,390
|
|
38,409
|
|
(7.9) %
|
|
75,701
|
|
82,604
|
|
(8.4) %
|
Dining
|
14,482
|
|
15,422
|
|
(6.1) %
|
|
46,174
|
|
45,435
|
|
1.6 %
|
Transportation
|
7,150
|
|
6,924
|
|
3.3 %
|
|
15,060
|
|
14,272
|
|
5.5 %
|
Golf
|
—
|
|
—
|
|
nm
|
|
6,541
|
|
6,072
|
|
7.7 %
|
Other
|
10,230
|
|
12,380
|
|
(17.4) %
|
|
36,700
|
|
37,235
|
|
(1.4) %
|
|
82,230
|
|
88,226
|
|
(6.8) %
|
|
233,914
|
|
237,753
|
|
(1.6) %
|
Payroll cost
reimbursements
|
4,825
|
|
5,320
|
|
(9.3) %
|
|
12,779
|
|
13,987
|
|
(8.6) %
|
Total Lodging net
revenue
|
87,055
|
|
93,546
|
|
(6.9) %
|
|
246,693
|
|
251,740
|
|
(2.0) %
|
Lodging operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
31,852
|
|
35,482
|
|
(10.2) %
|
|
102,478
|
|
111,894
|
|
(8.4) %
|
General and
administrative
|
14,245
|
|
15,069
|
|
(5.5) %
|
|
45,463
|
|
49,830
|
|
(8.8) %
|
Other
|
20,349
|
|
21,279
|
|
(4.4) %
|
|
65,719
|
|
68,043
|
|
(3.4) %
|
|
66,446
|
|
71,830
|
|
(7.5) %
|
|
213,660
|
|
229,767
|
|
(7.0) %
|
Reimbursed payroll
costs
|
4,825
|
|
5,320
|
|
(9.3) %
|
|
12,779
|
|
13,987
|
|
(8.6) %
|
Total Lodging operating
expense
|
71,271
|
|
77,150
|
|
(7.6) %
|
|
226,439
|
|
243,754
|
|
(7.1) %
|
Lodging Reported
EBITDA
|
$
15,784
|
|
$
16,396
|
|
(3.7) %
|
|
$
20,254
|
|
$
7,986
|
|
153.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
$
341.00
|
|
$
357.18
|
|
(4.5) %
|
|
$
317.87
|
|
$
313.59
|
|
1.4 %
|
RevPAR
|
$
166.25
|
|
$
170.35
|
|
(2.4) %
|
|
$
155.75
|
|
$
156.55
|
|
(0.5) %
|
Managed condominium
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
$
521.58
|
|
$
514.61
|
|
1.4 %
|
|
$
454.12
|
|
$
450.98
|
|
0.7 %
|
RevPAR
|
$
215.53
|
|
$
218.79
|
|
(1.5) %
|
|
$
142.49
|
|
$
146.33
|
|
(2.6) %
|
Owned hotel and managed
condominium statistics (combined):
|
|
|
|
|
|
|
|
|
ADR
|
$
475.96
|
|
$
478.35
|
|
(0.5) %
|
|
$
407.48
|
|
$
407.07
|
|
0.1 %
|
RevPAR
|
$
204.56
|
|
$
208.59
|
|
(1.9) %
|
|
$
145.82
|
|
$
148.72
|
|
(1.9) %
|
Key Balance Sheet
Data
(In
thousands)
(Unaudited)
|
|
|
As of April
30,
|
|
2024
|
|
2023
|
Total Vail Resorts,
Inc. stockholders' equity
|
$ 1,003,508
|
|
$ 1,273,918
|
Long-term debt,
net
|
$ 2,700,257
|
|
$ 2,773,747
|
Long-term debt due
within one year
|
68,470
|
|
68,970
|
Total debt
|
2,768,727
|
|
2,842,717
|
Less: cash and cash
equivalents
|
705,429
|
|
896,089
|
Net debt
|
$ 2,063,298
|
|
$ 1,946,628
|
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, 2024 and 2023.
|
(In thousands)
(Unaudited)
|
|
(In thousands)
(Unaudited)
|
|
Three Months Ended
April 30,
|
|
Nine Months Ended
April 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net income attributable
to Vail Resorts, Inc.
|
$
361,995
|
|
$
325,006
|
|
$
405,782
|
|
$
396,714
|
Net income attributable
to noncontrolling interests
|
19,388
|
|
18,160
|
|
22,359
|
|
23,011
|
Net income
|
381,383
|
|
343,166
|
|
428,141
|
|
419,725
|
Provision for income
taxes
|
129,280
|
|
124,289
|
|
151,606
|
|
145,315
|
Income before
provision for income taxes
|
510,663
|
|
467,455
|
|
579,747
|
|
565,040
|
Depreciation and
amortization
|
68,486
|
|
69,097
|
|
204,613
|
|
199,700
|
Loss on disposal of
fixed assets and other, net
|
571
|
|
6,269
|
|
3,372
|
|
8,055
|
Change in fair value of
contingent consideration
|
36,500
|
|
45,900
|
|
42,957
|
|
47,636
|
Investment income and
other, net
|
(5,096)
|
|
(7,740)
|
|
(13,643)
|
|
(17,734)
|
Foreign currency loss
on intercompany loans
|
2,305
|
|
1,766
|
|
4,230
|
|
5,563
|
Interest expense,
net
|
39,853
|
|
39,139
|
|
121,168
|
|
112,811
|
Total Reported
EBITDA
|
$
653,282
|
|
$
621,886
|
|
$
942,444
|
|
$
921,071
|
|
|
|
|
|
|
|
|
Mountain Reported
EBITDA
|
$
638,587
|
|
$
606,926
|
|
$
919,402
|
|
$
913,644
|
Lodging Reported
EBITDA
|
15,784
|
|
16,396
|
|
20,254
|
|
7,986
|
Resort Reported
EBITDA*
|
654,371
|
|
623,322
|
|
939,656
|
|
921,630
|
Real Estate Reported
EBITDA
|
(1,089)
|
|
(1,436)
|
|
2,788
|
|
(559)
|
Total Reported
EBITDA
|
$
653,282
|
|
$
621,886
|
|
$
942,444
|
|
$
921,071
|
|
|
|
|
|
|
|
|
* 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,
2024.
|
(In thousands)
(Unaudited)
|
|
Twelve Months
Ended
|
|
April 30,
2024
|
Net income attributable
to Vail Resorts, Inc.
|
$
277,216
|
Net income attributable
to noncontrolling interests
|
16,303
|
Net income
|
293,519
|
Provision for income
taxes
|
94,705
|
Income before
provision for income taxes
|
388,224
|
Depreciation and
amortization
|
273,414
|
Loss on disposal of
fixed assets and other, net
|
4,387
|
Change in fair value of
contingent consideration
|
45,157
|
Investment income and
other, net
|
(19,653)
|
Foreign currency loss
on intercompany loans
|
1,574
|
Interest expense,
net
|
161,379
|
Total Reported
EBITDA
|
$
854,482
|
|
|
Mountain Reported
EBITDA
|
$
828,328
|
Lodging Reported
EBITDA
|
24,535
|
Resort Reported
EBITDA*
|
852,863
|
Real Estate Reported
EBITDA
|
1,619
|
Total Reported
EBITDA
|
$
854,482
|
|
|
* 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, 2024.
|
(In
thousands)
(Unaudited)
|
|
As of April 30,
2024
|
Long-term debt,
net
|
$
2,700,257
|
Long-term debt due
within one year
|
68,470
|
Total debt
|
2,768,727
|
Less: cash and cash
equivalents
|
705,429
|
Net debt
|
$
2,063,298
|
Net debt to Total
Reported EBITDA
|
2.4x
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three and nine months ended
April 30, 2024 and 2023.
|
(In thousands)
(Unaudited)
|
|
(In thousands)
(Unaudited)
|
|
Three Months Ended
April 30,
|
|
Nine Months Ended
April 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Real Estate Reported
EBITDA
|
$
(1,089)
|
|
$
(1,436)
|
|
$
2,788
|
|
$
(559)
|
Non-cash Real Estate
cost of sales
|
—
|
|
—
|
|
3,607
|
|
5,138
|
Non-cash Real Estate
stock-based compensation
|
52
|
|
45
|
|
162
|
|
145
|
Change in real estate
deposits and recovery of previously incurred project costs/land
basis less investments in real estate
|
(20)
|
|
(284)
|
|
161
|
|
(180)
|
Net Real Estate Cash
Flow
|
$
(1,057)
|
|
$
(1,675)
|
|
$
6,718
|
|
$
4,544
|
The following table reconciles Resort net revenue to Resort
EBITDA Margin for fiscal 2024 guidance.
|
(In
thousands)
(Unaudited)
|
|
Fiscal 2024 Guidance
(2)
|
Resort net revenue
(1)
|
$
2,890,000
|
Resort Reported EBITDA
(1)
|
$
834,000
|
Resort EBITDA margin
(1)
|
28.9 %
|
|
|
(1)
Resort represents the sum of Mountain and
Lodging
|
|
(2)
Represents the mid-point of
Guidance
|
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SOURCE Vail Resorts, Inc.