BROOMFIELD, Colo., Dec. 9, 2019 /PRNewswire/ -- Vail Resorts, Inc.
(NYSE: MTN) today reported results for the first quarter of fiscal
2020 ended October 31, 2019, provided
season pass sales results and certain early ski season indicators
and reaffirmed its guidance for fiscal 2020.
Highlights
- Net loss attributable to Vail Resorts, Inc. was $106.5 million for the first fiscal quarter of
2020 compared to a net loss attributable to Vail Resorts, Inc. of
$107.8 million in the same period in
the prior year. Fiscal 2020 first quarter net loss included the
after-tax effect of acquisition and integration related expenses of
approximately $6.8 million and
approximately $1 million of
unfavorable foreign exchange as a result of the U.S. dollar
strengthening over the prior year compared to the Australian
dollar. Fiscal 2019 first quarter net loss included the after-tax
effect of acquisition and integration related expenses of
approximately $4.9 million.
- Resort Reported EBITDA loss was $76.7
million for the first fiscal quarter of 2020, which included
$9.0 million of acquisition and
integration related expenses and approximately $2 million of unfavorable foreign exchange as a
result of the U.S. dollar strengthening over the prior year
compared to the Australian dollar. In the same period in the prior
year, Resort Reported EBITDA loss was $72.5
million, which included $6.6
million of acquisition and integration related
expenses.
- Season pass sales through December 2,
2019 for the upcoming 2019/2020 North American ski season
increased approximately 17% in sales dollars (22% in units) as
compared to the period in the prior year through December 3, 2018, including Military Pass sales
and Peak Resorts pass sales in both periods. Pass sales are
adjusted to eliminate the impact of foreign currency by applying an
exchange rate of $0.75 between the
Canadian dollar and U.S. dollar in both periods for Whistler
Blackcomb pass sales.
- The Company reaffirmed its guidance for fiscal year 2020 of
$778 million to $818 million of Resort Reported EBITDA.
Unless otherwise noted, the commentary on results for the three
months ended October 31, 2019
includes the results of our recent acquisitions prospectively from
each respective acquisition date, including Peak Resorts (acquired
in September 2019), Falls Creek and Hotham (acquired in
April 2019), Triple Peaks (acquired
in September 2018) and Stevens Pass (acquired in August 2018).
Commenting on the Company's fiscal 2020 first quarter results,
Rob Katz, Chief Executive Officer,
said, "Our first fiscal quarter historically operates at a loss,
given that our North American mountain resorts are generally not
open for ski season operations during the period. The quarter's
results are primarily driven by winter operating results from our
Australian resorts and our North American resorts' summer
activities, dining, retail/rental and lodging operations, and
administrative expenses. Our Australian resorts had strong
performance during the quarter with another record year at Perisher
(on an Australian dollar basis) and very strong results in our
first year of operations at Falls
Creek and Hotham. Our strong Epic Australia Pass sales, good
conditions and the addition of the Leichhardt chairlift at Perisher
supported our continued momentum in the Australian market. Our
consolidated results from Perisher were negatively impacted by the
strong U.S. dollar, which created an approximate $2 million Resort Reported EBITDA headwind from
currency translation in the quarter relative to the prior year's
results. Whistler Blackcomb's summer business performed very well
with strong performance in its world class mountain biking
operations and sightseeing, supported by the addition of the new
Cloudraker Skybridge. Our U.S. Epic Discovery business continues to
grow and generate strong financial returns. Our lodging business
experienced mixed results, with continued success from our
properties at Grand Teton Lodge Company, partially offset by softer
results at our Colorado
properties, in part due to weaker group demand in comparison to the
prior year period."
Katz continued, "Our balance sheet at quarter end remains
strong. We ended the quarter with $136.3 million of
cash on hand and $1.9 billion of Net
Debt. As part of the Peak Resorts acquisition, we expanded our
existing term loan facility by approximately $336 million and assumed a portion of Peak
Resorts' debt. Our Net Debt was 2.8 times trailing twelve months
Total Reported EBITDA, though it is important to note that this
ratio only includes Peak Resorts' results for the loss period
between closing and quarter end and we expect that ratio to decline
as we incorporate the full season of Peak Resorts' results. I
am also very pleased to announce that our Board of Directors has
declared a quarterly cash dividend on Vail
Resorts' common stock. The quarterly dividend will
be $1.76 per share of common stock and will be payable
on January 9, 2020 to shareholders of record
on December 26, 2019. Additionally, the Company repurchased
approximately $21.4 million of stock
during the quarter at an average price of $224.28."
Moving on to season pass results, Katz said, "As we approach the
end of our selling period, season pass sales for the North American
ski season are up approximately 17% in sales dollars
through December 2, 2019 compared to the prior year
period ended December 3, 2018, including Military Pass sales
and Peak Resorts pass sales in both periods and adjusted to
eliminate the impact of foreign currency by applying an exchange
rate of $0.75 between the Canadian
dollar and U.S. dollar in both periods for Whistler Blackcomb pass
sales (unit sales were up approximately 22%). Excluding sales of
Military Passes, season pass sales increased approximately 16% in
sales dollars over the comparable prior year period (unit sales
were up 22%). As we expected, growth in sales dollars was lower
than our unit growth primarily from the inclusion of our Epic Day
Pass products.
"We are very pleased to see strong sales growth in our season
pass program that exceeded our expectations. We continue to see
very strong growth in our Northeast markets, which are benefiting
from the first full year of pass sales with unlimited access at
Stowe, Okemo and Mount Sunapee, the recent addition of Peak
Resorts, and the improved impact of the expanded guest data and
insight we now have in that region. Our destination markets outside
of the Northeast also saw very strong growth and continue to
perform well through our enhanced ability to reach destination
guests with our data-driven marketing and the introduction of Epic
Day Pass. Our local markets continue to show solid overall growth,
driven by favorable results among our local guests in the Whistler
Blackcomb region, with particular strength in Seattle from the first full pass sales season
with access to Stevens Pass. We
are also seeing strong results from our Northern California and Utah guests. Sales in our Colorado local market were softer, with solid
results in our Epic products, offset with declines in certain
regional products, which was expected without Arapahoe Basin on those passes, but those
declines will be more than offset by lower partnership
payments."
Katz continued, "The majority of our sales growth came from our
Epic and Epic Local products where we saw solid growth in new pass
holders and renewing pass holders, with less trade down to Epic Day
Pass than we were expecting. Epic Day Pass was a strong success in
its first year with an expanded product offering and was a
significant contributor to our overall growth and exceeded our
expectations, particularly in the Epic two and three day products.
We believe this bodes very well for the long-term opportunity of
Epic Day Pass, as we begin to highlight the incredible value to
lower frequency guests. Importantly, the vast majority of Epic Day
Pass sales came from new pass holders, with particular success in
destination markets. Our military program delivered strong growth,
with the program continuing to generate strong renewal rates while
also adding new pass holders. We expect that the total number of
guests on all advanced purchase passes this year will exceed 1.2
million (including all U.S., Canadian and Australian passes and
Epic Day Pass), representing an incredible group of highly loyal
and passionate guests."
Katz continued, "Overall, lodging bookings for the season ahead
are largely in-line with prior year bookings. Based on historical
averages, around half of the bookings for the winter season have
been made by this time, though it is important to note that our
lodging bookings represent a small portion of the overall lodging
inventory around our resorts. The early season experience at our
resorts has been encouraging, with strong conditions across our
Colorado, Tahoe and Northeastern
resorts. Both Keystone and
Vail have benefited from early
snow and our recent snowmaking investments, which allowed
Keystone to open on October 12 and Vail to open on November 15 and deliver a much improved
experience to guests over Thanksgiving. Our resorts in Tahoe and
Utah have opened with typical
conditions for this time of year, and our Northeast resorts have
started strong with certain resorts opening weeks earlier than in
prior years."
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 first fiscal quarter ended October 31, 2019, which was filed today with the
Securities and Exchange Commission. The following are segment
highlights:
Mountain Segment
- Mountain segment net revenue increased $35.8 million, or 24.7%, to $180.8 million for the three months ended
October 31, 2019 as compared to the
same period in the prior year, which was primarily attributable to
the incremental operations of Falls
Creek and Hotham.
- Mountain Reported EBITDA loss was $80.0
million for the three months ended October 31, 2019, which represents an incremental
loss of $3.6 million, or 4.7%, as
compared to the Mountain Reported EBITDA loss for same period in
prior year.
Lodging Segment
- Lodging segment net revenue (excluding payroll cost
reimbursements) increased $8.3
million, or 11.7%, to $79.6
million for the three months ended October 31, 2019 as compared to the same period
in the prior year, which was primarily attributable to the
incremental operations of Triple Peaks and Peak Resorts.
- Lodging Reported EBITDA was $3.3
million for the three months ended October 31, 2019, which represents a decrease of
$0.6 million, or 16.2%, as compared
to the same period in the prior year, primarily due to an increase
in expenses across our lodging properties, partially offset by the
benefit of the incremental operations of Peak Resorts.
Resort - Combination of Mountain and Lodging Segments
- Resort net revenue was $263.6
million for the three months ended October 31, 2019, an increase of $43.7 million as compared to resort net revenue
of $219.9 million for the same period
in the prior year.
- Resort Reported EBITDA loss was $76.7
million for the three months ended October 31, 2019, which included $9.0 million of acquisition and integration
related expenses; estimated incremental off-season losses of
$4.6 million from Peak Resorts and
$2.7 million from Triple Peaks and
Stevens Pass for the respective
periods that those resorts were not owned in the prior year; and
approximately $2 million of
unfavorability from currency translation, which the Company
calculated on a constant currency basis by applying current period
foreign exchange rates to the prior period results. In the same
period in the prior year, Resort Reported EBITDA loss was
$72.5 million, which included
$6.6 million of acquisition and
integration related expenses.
Total Performance
- Total net revenue increased $47.8
million, or 21.7%, to $267.8
million for the three months ended October 31, 2019 as compared to the same period
in the prior year.
- Net loss attributable to Vail Resorts, Inc. was $106.5 million, or a loss of $2.64 per diluted share, for the first quarter of
fiscal 2020 compared to a net loss attributable to Vail Resorts,
Inc. of $107.8 million, or a loss of
$2.66 per diluted share, in the first
quarter of fiscal 2019. Fiscal 2020 first quarter net loss included
the after-tax effect of acquisition and integration related
expenses of approximately $6.8
million; estimated incremental off-season losses of
approximately $4.2 million from Peak
Resorts and approximately $4.5
million from Triple Peaks and Stevens Pass for the respective periods that
those resorts were not owned in the prior year; and approximately
$1 million of unfavorability from
currency translation, which the Company calculated on a constant
currency basis by applying current period foreign exchange rates to
the prior period results. Fiscal 2019 first quarter net loss
included the after-tax effect of acquisition and integration
related expenses of $4.9
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 January 9, 2020 to
shareholders of record on December
26, 2019. Additionally, a Canadian dollar equivalent
dividend on the exchangeable shares of Whistler Blackcomb Holdings
Inc. will be payable on January 9,
2020 to shareholders of record on December 26, 2019. The exchangeable shares were
issued to certain Canadian persons in connection with our
acquisition of Whistler Blackcomb Holdings Inc. Additionally, in
the first quarter of fiscal 2020, the Company repurchased 95,618
shares at an average price of $224.28
for a total of approximately $21.4
million.
Capital Improvements
Commenting on the Company's capital investments for the
2019/2020 North American winter season, Katz said, "We are thrilled
to welcome guests to all of our resorts as the 2019/2020 North
American ski season kicks off with several transformational
enhancements to the guest experience at our resorts.
"In Colorado, we have made significant investments in our
snowmaking systems that have transformed the early-season terrain
experience at Vail, Keystone and Beaver
Creek. As a result of these investments, Keystone experienced its earliest opening in
more than 20 years, and Vail
opened earlier than usual with an improved terrain offering
available at opening, elevating the experience for our guests. At
Park City, we transformed the
Tombstone Express area with a new permanent Tombstone BBQ
restaurant and the new four-person Over and Out lift that provides
a quicker, more direct route for skiers and riders to access
Canyons village from the center of the resort. In addition, we
completed a full renovation of the Beaver
Creek children's ski school facilities and improvements to
the Peak 8 base area at Breckenridge with new ski school and childcare
facilities, as well as an improved ticket and retail and rental
experience.
"We remain highly focused on investments that will substantially
improve the guest experience across our resorts and implemented a
new mobile lift ticket express fulfillment technology that
eliminates the ticket window for guests who purchase their tickets
in advance. We also completed one of the final stages of our point
of sale modernization project and invested in technology to
automate our data-driven marketing efforts.
"We completed significant one-time investments across the
acquired resorts of Crested Butte,
Okemo and Stevens Pass, which
included replacing and upgrading the Daisy and Brooks lifts at
Stevens Pass and the Teocalli
lift at Crested Butte, as well as
on-mountain restaurant upgrades at Okemo."
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. We will announce our complete capital
plan for calendar year 2020 in March
2020, but we are pleased to announce several signature
investments planned for the 2020/2021 North American ski
season."
Katz continued, "We are excited to announce a 250 acre
lift-served terrain expansion in the signature McCoy Park area of
Beaver Creek. This new lift
accessed beginner and intermediate bowl experience is a rare
opportunity to expand with highly accessible terrain in one of the
most idyllic settings in Colorado
and will further differentiate the high-end, family focused
experience at Beaver Creek.
"At Breckenridge, we plan to install a new four-person high
speed lift to serve the popular Peak 7. This additional lift will
further enhance the guest experience at the most visited resort in
the U.S. and will significantly increase guest access and
circulation for the intermediate terrain on Peaks 6 and 7. Subject
to governmental approvals, at Keystone we plan to replace the four-person
Peru lift with a six-person high
speed chairlift in order to increase capacity out of a key base
area of the resort and improve guest access, circulation and
experience at one of the top performing resorts in the U.S.
"At Whistler Blackcomb, we intend to significantly increase the
seating capacity at the Rendezvous Lodge Restaurant on Blackcomb
Mountain. The expansion will add 250 seats at a critical
on-mountain restaurant, further enhancing the experience at
North America's largest
resort.
"Our capital plan includes several key investments that will
continue to further our company-wide data driven approach. We are
now in 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 will also be investing to completely revamp and
upgrade our digital ski rental online platforms to provide a more
seamless advanced purchasing process and to allow more dynamic
pricing and discounting to broaden access during off-peak times.
Finally, we will be launching a completely revamped EpicMix mobile
app that will offer new functionality and an improved user
experience.
"We will continue to invest in corporate infrastructure and
technology to improve our scalability and efficiency as we work to
optimize our processes, business analytics and cost discipline
across the network. This will include the implementation of an
automated workforce planning system to optimize our labor
scheduling and improved financial systems to enhance business
analytics.
"For the recently acquired resorts of Crested Butte, Okemo and Stevens Pass, we are planning to complete the
second and final phase of a two-year, $35
million investment program. Subject to governmental
approvals, we plan to complete a transformational investment at
Okemo including upgrading the Quantum lift from a four-person to a
six-person high speed chairlift, relocating the existing
four-person Quantum lift to replace the Green Ridge three-person
fixed-grip chairlift and improving the base area experience through
a renovation of the Base 68 restaurant, expansion and renovation of
the children's ski school facility and enhancement of the guest
arrival experience.
"We plan to spend approximately $24
million on integration activities primarily related to Peak
Resorts.
"Our capital plan for calendar 2020 includes one-time real
estate investments of approximately $3
million, which are related to and funded by land sales
completed in calendar 2019 with third party developers at
Keystone (One River Run site) and
Breckenridge (East Peak 8 site).
While we expect these projects to occur in calendar 2020, these
investments remain subject to municipal approvals of those
development projects, creating timing uncertainty.
"Our capital plan for calendar 2020 will be 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. Including these
one-time items, our total capital plan will be approximately
$210 million to $215 million. We will be providing further detail
on our calendar year 2020 capital plan in March 2020."
Outlook
Commenting on fiscal 2020 guidance, Katz continued, "Given our
first quarter results and the indicators we are seeing for the
upcoming season, we are reiterating our Resort Reported EBITDA
guidance for fiscal 2020 that was included in our September
earnings release, based on the assumptions incorporated at that
time, including foreign currency exchange rates. While pass
sales results to date have been encouraging, it is important to
remember that the North American ski season has just begun, with
our primary earnings period still in front of us."
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 December 23,
2019, at 8:00 p.m. eastern
time. To access the replay, dial (888) 203-1112 (U.S. and
Canada) or (719) 457-0820
(international), pass code 8586118. 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 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 fiscal
2020 performance (and our assumptions related thereto), including
our expected Resort Reported EBITDA; 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; 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;
willingness of our guests to travel due to terrorism, the
uncertainty of military conflicts or outbreaks of contagious
diseases, and the cost and availability of travel options and
changing consumer preferences; the seasonality of our business
combined with adverse events that occur during our peak operating
periods; competition in our mountain and lodging businesses; high
fixed cost structure of our business; our ability to fund resort
capital expenditures; risks related to a disruption in our water
supply that would impact our snowmaking capabilities and
operations; our reliance on government permits or approvals for our
use of public land or to make operational and capital improvements;
risks associated with obtaining governmental or third party
approvals; risks related to federal, state, local and foreign
government laws, rules and regulations; risks related to changes in
security and privacy laws and regulations which could increase our
operating costs and adversely affect our ability to market our
products and services effectively; 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
October 31,
|
|
|
2019
|
|
2018
|
Net
revenue:
|
|
|
|
|
Mountain and Lodging
services and other
|
|
$
|
180,031
|
|
|
$
|
144,022
|
|
Mountain and Lodging
retail and dining
|
|
83,559
|
|
|
75,884
|
|
Resort net
revenue
|
|
263,590
|
|
|
219,906
|
|
Real
Estate
|
|
4,180
|
|
|
98
|
|
Total net
revenue
|
|
267,770
|
|
|
220,004
|
|
Segment operating
expense:
|
|
|
|
|
Mountain and Lodging
operating expense
|
|
228,710
|
|
|
194,112
|
|
Mountain and Lodging
retail and dining cost of products sold
|
|
37,735
|
|
|
34,876
|
|
General and
administrative
|
|
75,055
|
|
|
64,379
|
|
Resort operating
expense
|
|
341,500
|
|
|
293,367
|
|
Real Estate operating
expense
|
|
5,293
|
|
|
1,370
|
|
Total segment
operating expense
|
|
346,793
|
|
|
294,737
|
|
Other operating
(expense) income:
|
|
|
|
|
Depreciation and
amortization
|
|
(57,845)
|
|
|
(51,043)
|
|
Gain on sale of real
property
|
|
207
|
|
|
—
|
|
Change in estimated
fair value of contingent consideration
|
|
(1,136)
|
|
|
(1,200)
|
|
Gain (loss) on
disposal of fixed assets and other, net
|
|
2,267
|
|
|
(619)
|
|
Loss from
operations
|
|
(135,530)
|
|
|
(127,595)
|
|
Mountain equity
investment income, net
|
|
1,191
|
|
|
950
|
|
Investment income and
other, net
|
|
277
|
|
|
463
|
|
Foreign currency gain
(loss) on intercompany loans
|
|
360
|
|
|
(2,311)
|
|
Interest expense,
net
|
|
(22,690)
|
|
|
(18,638)
|
|
Loss before benefit
from income taxes
|
|
(156,392)
|
|
|
(147,131)
|
|
Benefit from income
taxes
|
|
46,563
|
|
|
36,405
|
|
Net loss
|
|
(109,829)
|
|
|
(110,726)
|
|
Net loss attributable
to noncontrolling interests
|
|
3,354
|
|
|
2,931
|
|
Net loss attributable
to Vail Resorts, Inc.
|
|
$
|
(106,475)
|
|
|
$
|
(107,795)
|
|
Per share
amounts:
|
|
|
|
|
Basic net loss per
share attributable to Vail Resorts, Inc.
|
|
$
|
(2.64)
|
|
|
$
|
(2.66)
|
|
Diluted net loss per
share attributable to Vail Resorts, Inc.
|
|
$
|
(2.64)
|
|
|
$
|
(2.66)
|
|
Cash dividends
declared per share
|
|
$
|
1.76
|
|
|
$
|
1.47
|
|
Weighted average
shares outstanding:
|
|
|
|
|
Basic
|
|
40,342
|
|
|
40,505
|
|
Diluted
|
|
40,342
|
|
|
40,505
|
|
Vail Resorts,
Inc.
|
|
Consolidated
Condensed Statements of Operations - Other Data
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
October 31,
|
|
|
|
2019
|
|
2018
|
|
Other
Data:
|
|
|
|
|
|
Mountain Reported
EBITDA
|
|
$
|
(79,985)
|
|
|
$
|
(76,407)
|
|
|
Lodging Reported
EBITDA
|
|
3,266
|
|
|
3,896
|
|
|
Resort Reported
EBITDA
|
|
(76,719)
|
|
|
(72,511)
|
|
|
Real Estate Reported
EBITDA
|
|
(906)
|
|
|
(1,272)
|
|
|
Total Reported
EBITDA
|
|
$
|
(77,625)
|
|
|
$
|
(73,783)
|
|
|
Mountain stock-based
compensation
|
|
$
|
4,353
|
|
|
$
|
3,944
|
|
|
Lodging stock-based
compensation
|
|
847
|
|
|
787
|
|
|
Resort stock-based
compensation
|
|
5,200
|
|
|
4,731
|
|
|
Real Estate
stock-based compensation
|
|
51
|
|
|
22
|
|
|
Total stock-based
compensation
|
|
$
|
5,251
|
|
|
$
|
4,753
|
|
|
Vail Resorts,
Inc.
|
Mountain Segment
Operating Results
|
(In thousands,
except Effective Ticket Price ("ETP"))
|
(Unaudited)
|
|
|
|
Three Months
Ended
October 31,
|
|
Percentage Increase
|
|
|
2019
|
|
2018
|
|
(Decrease)
|
Net Mountain
revenue:
|
|
|
|
|
|
|
Lift
|
|
$
|
41,829
|
|
|
$
|
24,685
|
|
|
69.5
|
%
|
Ski school
|
|
8,534
|
|
|
4,272
|
|
|
99.8
|
%
|
Dining
|
|
21,629
|
|
|
18,292
|
|
|
18.2
|
%
|
Retail/rental
|
|
47,915
|
|
|
43,342
|
|
|
10.6
|
%
|
Other
|
|
60,925
|
|
|
54,415
|
|
|
12.0
|
%
|
Total Mountain net
revenue
|
|
180,832
|
|
|
145,006
|
|
|
24.7
|
%
|
Mountain operating
expense:
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
|
91,475
|
|
|
76,250
|
|
|
20.0
|
%
|
Retail cost of
sales
|
|
23,279
|
|
|
22,416
|
|
|
3.8
|
%
|
General and
administrative
|
|
64,669
|
|
|
54,703
|
|
|
18.2
|
%
|
Other
|
|
82,585
|
|
|
68,994
|
|
|
19.7
|
%
|
Total Mountain
operating expense
|
|
262,008
|
|
|
222,363
|
|
|
17.8
|
%
|
Mountain equity
investment income, net
|
|
1,191
|
|
|
950
|
|
|
25.4
|
%
|
Mountain Reported
EBITDA
|
|
$
|
(79,985)
|
|
|
$
|
(76,407)
|
|
|
(4.7)
|
%
|
|
|
|
|
|
|
|
Total skier
visits
|
|
934
|
|
|
507
|
|
|
84.2
|
%
|
ETP
|
|
$
|
44.78
|
|
|
$
|
48.69
|
|
|
(8.0)
|
%
|
Vail Resorts,
Inc.
|
Lodging Operating
Results
|
(In thousands,
except ADR and Revenue per Available Room
("RevPAR"))
|
(Unaudited)
|
|
|
|
Three Months
Ended
October 31,
|
|
Percentage Increase
|
|
|
2019
|
|
2018
|
|
(Decrease)
|
Lodging net
revenue:
|
|
|
|
|
|
|
Owned hotel
rooms
|
|
$
|
19,946
|
|
|
$
|
19,599
|
|
|
1.8
|
%
|
Managed condominium
rooms
|
|
14,740
|
|
|
11,118
|
|
|
32.6
|
%
|
Dining
|
|
18,143
|
|
|
16,129
|
|
|
12.5
|
%
|
Transportation
|
|
2,351
|
|
|
2,474
|
|
|
(5.0)
|
%
|
Golf
|
|
10,221
|
|
|
9,150
|
|
|
11.7
|
%
|
Other
|
|
14,166
|
|
|
12,777
|
|
|
10.9
|
%
|
|
|
79,567
|
|
|
71,247
|
|
|
11.7
|
%
|
Payroll cost
reimbursements
|
|
3,191
|
|
|
3,653
|
|
|
(12.6)
|
%
|
Total Lodging net
revenue
|
|
82,758
|
|
|
74,900
|
|
|
10.5
|
%
|
Lodging operating
expense:
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
|
37,615
|
|
|
33,451
|
|
|
12.4
|
%
|
General and
administrative
|
|
10,386
|
|
|
9,676
|
|
|
7.3
|
%
|
Other
|
|
28,300
|
|
|
24,224
|
|
|
16.8
|
%
|
|
|
76,301
|
|
|
67,351
|
|
|
13.3
|
%
|
Reimbursed payroll
costs
|
|
3,191
|
|
|
3,653
|
|
|
(12.6)
|
%
|
Total Lodging
operating expense
|
|
79,492
|
|
|
71,004
|
|
|
12.0
|
%
|
Lodging Reported
EBITDA
|
|
$
|
3,266
|
|
|
$
|
3,896
|
|
|
(16.2)
|
%
|
|
|
|
|
|
|
|
Owned hotel
statistics:
|
|
|
|
|
|
|
ADR
|
|
$
|
238.49
|
|
|
$
|
232.87
|
|
|
2.4
|
%
|
RevPAR
|
|
$
|
163.61
|
|
|
$
|
161.96
|
|
|
1.0
|
%
|
Managed condominium
statistics:
|
|
|
|
|
|
|
ADR
|
|
$
|
189.22
|
|
|
$
|
188.92
|
|
|
0.2
|
%
|
RevPAR
|
|
$
|
52.83
|
|
|
$
|
51.44
|
|
|
2.7
|
%
|
Owned hotel and
managed condominium statistics (combined):
|
|
|
|
|
|
|
ADR
|
|
$
|
210.60
|
|
|
$
|
210.85
|
|
|
(0.1)
|
%
|
RevPAR
|
|
$
|
79.18
|
|
|
$
|
82.44
|
|
|
(4.0)
|
%
|
Key Balance Sheet
Data
|
(In
thousands)
|
(Unaudited)
|
|
|
|
As of October
31,
|
|
|
2019
|
|
2018
|
Real estate held for
sale and investment
|
|
$
|
96,938
|
|
|
$
|
101,743
|
|
Total Vail Resorts,
Inc. stockholders' equity
|
|
$
|
1,302,488
|
|
|
$
|
1,339,595
|
|
Long-term debt,
net
|
|
$
|
2,005,057
|
|
|
$
|
1,486,968
|
|
Long-term debt due
within one year
|
|
63,807
|
|
|
48,482
|
|
Total debt
|
|
2,068,864
|
|
|
1,535,450
|
|
Less: cash and cash
equivalents
|
|
136,326
|
|
|
141,031
|
|
Net debt
|
|
$
|
1,932,538
|
|
|
$
|
1,394,419
|
|
Reconciliation of Measures of Segment Profitability and
Non-GAAP Financial Measures
Presented below is a reconciliation of Reported EBITDA to net
loss attributable to Vail Resorts, Inc. for the three months ended
October 31, 2019 and 2018.
|
|
(In thousands)
(Unaudited)
|
|
|
Three Months Ended
October 31,
|
|
|
2019
|
|
2018
|
Mountain Reported
EBITDA
|
|
$
|
(79,985)
|
|
|
$
|
(76,407)
|
|
Lodging Reported
EBITDA
|
|
3,266
|
|
|
3,896
|
|
Resort Reported
EBITDA*
|
|
(76,719)
|
|
|
(72,511)
|
|
Real Estate Reported
EBITDA
|
|
(906)
|
|
|
(1,272)
|
|
Total Reported
EBITDA
|
|
(77,625)
|
|
|
(73,783)
|
|
Depreciation and
amortization
|
|
(57,845)
|
|
|
(51,043)
|
|
Gain (loss) on
disposal of fixed assets and other, net
|
|
2,267
|
|
|
(619)
|
|
Change in estimated
fair value of contingent consideration
|
|
(1,136)
|
|
|
(1,200)
|
|
Investment income and
other, net
|
|
277
|
|
|
463
|
|
Foreign currency gain
(loss) on intercompany loans
|
|
360
|
|
|
(2,311)
|
|
Interest expense,
net
|
|
(22,690)
|
|
|
(18,638)
|
|
Loss before benefit
from income taxes
|
|
(156,392)
|
|
|
(147,131)
|
|
Benefit from income
taxes
|
|
46,563
|
|
|
36,405
|
|
Net loss
|
|
(109,829)
|
|
|
(110,726)
|
|
Net loss attributable
to noncontrolling interests
|
|
3,354
|
|
|
2,931
|
|
Net loss attributable
to Vail Resorts, Inc.
|
|
$
|
(106,475)
|
|
|
$
|
(107,795)
|
|
|
* Resort represents
the sum of Mountain and Lodging
|
Presented below is a reconciliation of Total Reported EBITDA to
net income attributable to Vail Resorts, Inc. calculated in
accordance with GAAP for the twelve months ended October 31, 2019.
|
|
(In thousands)
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
|
October 31,
2019
|
Mountain Reported
EBITDA
|
|
$
|
675,016
|
|
Lodging Reported
EBITDA
|
|
27,470
|
|
Resort Reported
EBITDA*
|
|
702,486
|
|
Real Estate Reported
EBITDA
|
|
(3,951)
|
|
Total Reported
EBITDA
|
|
698,535
|
|
Depreciation and
amortization
|
|
(224,919)
|
|
Gain on disposal of
fixed assets and other, net
|
|
2,222
|
|
Change in estimated
fair value of contingent consideration
|
|
(5,303)
|
|
Investment income and
other, net
|
|
2,900
|
|
Foreign currency loss
on intercompany loans
|
|
(183)
|
|
Interest expense,
net
|
|
(83,548)
|
|
Income before
provision for income taxes
|
|
389,704
|
|
Provision for income
taxes
|
|
(71,797)
|
|
Net income
|
|
317,907
|
|
Net income
attributable to noncontrolling interests
|
|
(21,907)
|
|
Net income
attributable to Vail Resorts, Inc.
|
|
$
|
296,000
|
|
|
* Resort represents
the sum of Mountain and Lodging
|
The following table reconciles Net Debt to long-term debt, net
and the calculation of Net Debt to Total Reported EBITDA for the
twelve months ended October 31,
2019.
|
(In thousands)
(Unaudited)
(As of October 31, 2019)
|
|
Long-term debt,
net
|
$
|
2,005,057
|
|
Long-term debt due
within one year
|
63,807
|
|
Total debt
|
2,068,864
|
|
Less: cash and cash
equivalents
|
136,326
|
|
Net debt
|
$
|
1,932,538
|
|
Net debt to Total
Reported EBITDA
|
2.8
|
x
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three months ended October 31, 2019 and 2018.
|
|
(In thousands)
(Unaudited)
Three Months Ended
October 31,
|
|
|
2019
|
|
2018
|
Real Estate Reported
EBITDA
|
|
$
|
(906)
|
|
|
$
|
(1,272)
|
|
Non-cash Real Estate
cost of sales
|
|
3,684
|
|
|
—
|
|
Non-cash Real Estate
stock-based compensation
|
|
51
|
|
|
22
|
|
Change in real estate
deposits and recovery of previously incurred project costs/land
basis less investments in real estate
|
|
155
|
|
|
(7)
|
|
Net Real Estate Cash
Flow
|
|
$
|
2,984
|
|
|
$
|
(1,257)
|
|
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SOURCE Vail Resorts, Inc.