BROOMFIELD, Colo., Sept. 26, 2016 /PRNewswire/ -- Vail Resorts,
Inc. (NYSE: MTN) today reported results for its fourth
quarter and fiscal year ended July 31,
2016 and provided its outlook for the fiscal year ending
July 31, 2017.
Highlights
- Net income attributable to Vail Resorts, Inc. was $149.8 million for fiscal 2016, an increase of
30.5% compared to fiscal 2015 or 46.6%, excluding the $12.6 million after-tax non-cash gain on the
Park City litigation settlement in
fiscal 2015.
- Resort Reported EBITDA was $452.6
million for fiscal 2016, an increase of 29.5%, excluding the
$16.4 million non-cash gain on the
Park City litigation settlement in
fiscal 2015.
- Season pass sales through September 18,
2016 for the upcoming 2016/2017 U.S. ski season increased
approximately 24% in units and 29% in sales dollars versus the
comparable period in the prior year.
- On August 8, 2016, the Company
announced that it signed an agreement to acquire all of the
outstanding shares of Whistler Blackcomb Holdings Inc. The Company
continues to expect the acquisition to close this fall pending
Whistler Blackcomb shareholder and Canadian regulatory
approval.
- The Company issued its fiscal 2017 guidance range and expects
Resort Reported EBITDA to be between $480
million and $510 million, excluding results from Whistler
Blackcomb and any transaction-related or integration costs.
Commenting on the Company's fiscal 2016 results, Rob Katz, Chief Executive Officer, said, "We
achieved another year of record-breaking results with significant
growth across our business. We are very pleased to complete the
year with Resort Reported EBITDA of $452.6
million, which included $1.4
million of transaction expenses related to the pending
Whistler Blackcomb acquisition. Our results were driven by the
strength of our network and excellent results across all of our
resort locations. Our season pass program continued to drive both
growth and stability with season pass revenue increasing 21.5%
compared to the prior year, including a full season of Perisher
season pass revenue in fiscal 2016. We experienced another
outstanding year in Colorado with
visitation and guest spending outperforming last year's results. In
Park City, we met our very high
expectations following our capital transformation last summer that
combined Park City and Canyons
into the largest mountain resort in the U.S. Tahoe results
rebounded strongly as favorable weather conditions helped to
reactivate visitation in the region. We officially launched Epic
Discovery at Vail and Heavenly
this summer, driving significant increases in visitation and
revenue in the fourth quarter of fiscal 2016 compared to the prior
year. Our summer business will continue to grow as we further build
out activities at Vail and
Heavenly and officially launch Epic Discovery at Breckenridge next summer. Finally, we continue
to execute our strategy with a focus on disciplined cost management
which played a critical part in achieving Resort EBITDA Margin for
the year of 28.7%, a 300 basis point expansion compared to fiscal
2015, excluding the non-cash gain on the Park City litigation settlement in fiscal
2015."
Katz added, "With a strong high-end U.S. consumer, we are
continuing to leverage our growing network of resorts and
sophisticated marketing strategies to drive higher visitation and
yields across our Mountain segment. For fiscal 2016, total Mountain
net revenue increased 18.2% to $1.3
billion. Total skier visits, including a full year of
Perisher results, increased 18.5%, while total U.S. skier visits
increased 13.2%. Total Effective Ticket Price ("ETP") increased
3.5%, driven by season pass and lift ticket price increases across
our resorts, partially offset by higher visitation per pass. Our
ancillary businesses also experienced growth with ski school,
dining and retail/rental revenue, up 13.5%, 19.8% and 10.0%,
respectively, compared to the prior year."
Regarding Lodging, Katz said, "Fiscal 2016 was another strong
year for our Lodging segment with net revenue increasing 7.9% and
Lodging Reported EBITDA increasing 30.0% compared to fiscal 2015,
including $3.5 million of Lodging
Reported EBITDA associated with the termination of the Company's
management agreement with Half Moon Resort in Jamaica. These improvements were primarily
driven by a 210 basis point improvement in occupancy and a 3.5%
growth in average daily rate ("ADR"), resulting in an 8.8%
improvement in revenue per available room ("RevPAR") compared to
the prior year. Our Lodging segment benefited from increased
visitation at our mountain resorts during the ski season as well as
continued growth in summer visitation."
Turning to Real Estate, Katz commented, "We generated
$22.0 million of Net Real Estate Cash
Flow in fiscal 2016. For the full fiscal year, we closed on five
units at Ritz-Carlton Residences, Vail, three Crystal Peak Lodge units in
Breckenridge and two One Ski Hill
Place units in Breckenridge.
During the fourth quarter we closed on two units at Ritz-Carlton
Residences, Vail and one unit at
Crystal Peak Lodge. Subsequent to the end of fiscal 2016, we closed
on the sale of a land parcel at the base of Breckenridge for $9.25
million. As of September 23,
2016, we have four units at Ritz-Carlton Residences,
Vail and two units at One Ski Hill
Place remaining to be sold and approximately $94.7 million of real estate held for sale and
investment associated with land parcels at our resorts."
Katz continued, "Our balance sheet continues to be very strong.
We ended the fiscal year with $67.9
million of cash on hand and $75.0
million of borrowings under the revolver portion of our
senior credit facility. As of July 31,
2016, we had available borrowing capacity under the revolver
component of our credit facility of $252.8
million. Our Net Debt was 1.4 times trailing twelve months
Total Reported EBITDA, which includes $323.1
million of long-term capital lease obligations associated
with the Canyons transaction. 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
$0.81 per share of common stock and
will be payable on October 25, 2016
to shareholders of record on October 7,
2016. Additionally, the Company repurchased 485,866 shares
for a total of $53.8 million during
fiscal 2016."
Operating Results
A complete Management's Discussion and Analysis of Financial
Condition and Results of Operations can be found in the Company's
Form 10-K for the fiscal year ended July 31,
2016 filed today with the Securities and Exchange
Commission. The following are segment highlights:
Mountain Segment
- Total skier visits for fiscal 2016 increased to approximately
10.0 million, an increase of 18.5% compared to the prior fiscal
year.
- Season pass revenue increased $46.6
million, or 21.5%, compared to the prior fiscal year.
- U.S. ETP, excluding season pass holders, increased $8.49, or 9.8%, compared to the prior fiscal
year.
- Mountain net revenue was $1,304.6
million for fiscal 2016, an increase of 18.2% compared to
the prior fiscal year.
- Mountain Reported EBITDA for fiscal 2016 increased $96.7 million, or 29.5%, to $424.4 million, excluding the non-cash gain on
the Park City litigation
settlement in the prior fiscal year.
- Mountain Reported EBITDA includes $13.4
million and $11.8 million of
stock-based compensation expense for fiscal 2016 and fiscal 2015,
respectively.
Lodging Segment
- Lodging net revenue was $274.6
million for fiscal 2016, an increase of 7.9% compared to the
prior fiscal year.
- Lodging net revenue (excluding payroll cost reimbursements) was
$262.2 million for fiscal 2016
compared to $244.2 million for the
prior fiscal year, a 7.4% increase.
- ADR increased 3.5% and RevPAR increased 8.8% in fiscal 2016 at
the Company's owned hotels and managed condominiums, compared to
the prior fiscal year.
- Lodging Reported EBITDA increased 30.0% to $28.2 million for fiscal 2016 compared to the
prior fiscal year, which includes a $3.5
million termination fee (included in other revenue)
associated with the termination of the management agreement with
respect to the Half Moon Resort in Montego Bay, Jamaica.
- Lodging Reported EBITDA includes $3.1
million and $2.6 million of
stock-based compensation expense for fiscal 2016 and fiscal 2015,
respectively.
Resort - Combination of Mountain and Lodging Segments
- Resort net revenue was $1,579.2
million for fiscal 2016, an increase of 16.2%, compared to
the prior fiscal year.
- Resort Reported EBITDA increased 29.5% to $452.6 million for fiscal 2016, excluding the
$16.4 million non-cash gain on the
Park City litigation settlement in
the prior fiscal year.
- Resort EBITDA Margin was 28.7% in fiscal 2016, an increase of
300 basis points from the prior fiscal year, excluding the
$16.4 million non-cash gain on the
Park City litigation settlement in
the prior fiscal year.
Real Estate Segment
- Real Estate net revenue decreased $19.2
million, or 46.5%, as compared to the same period in the
prior year.
- Net Real Estate Cash Flow was $22.0
million, a decrease of $6.9
million compared to the prior fiscal year.
- Real Estate Reported EBITDA was $2.8
million, a 140.3% improvement as compared to the prior
fiscal year.
- Real Estate Reported EBITDA includes $0.5 million of stock-based compensation as
compared to $1.3 million in the same
period in the prior fiscal year.
Total Performance
- Total net revenue increased $201.4
million, or 14.4%, to $1,601.3
million as compared to the prior fiscal year.
- Net income attributable to Vail Resorts, Inc. was $149.8 million, or $4.01 per diluted share compared to $114.8 million, or $3.07 per diluted share, in the prior fiscal
year.
Season Pass Sales
Commenting on season pass sales, Katz said, "We are extremely
pleased with our season pass sales to date. Through September 18, 2016, U.S. ski season pass sales
increased approximately 24% in units and 29% in sales dollars,
compared to the prior year period ended September 20, 2015. Our growth continues to be
driven by our increasingly sophisticated and targeted marketing
efforts to move destination guests into our season pass products,
with this segment representing over half of this year's growth. As
always, we do expect our season pass growth rates to decline
through the end of our selling season, given that some of the
increase is driven by our efforts to encourage guests to purchase
their passes earlier in the year. Last year at this point in the
year, we had sold approximately 60% of our season passes for the
upcoming ski season, though we believe that figure may be higher
this year, given the aforementioned efforts to move purchases
earlier in the selling cycle."
Guidance
Commenting on guidance for fiscal 2017, Katz said, "We estimate
Resort Reported EBITDA for fiscal 2017 will be between $480 million and $510 million. We expect Resort
EBITDA Margin to be approximately 29.7% in fiscal 2017, using the
midpoint of the guidance range. This is an estimated 100 basis
point increase over fiscal 2016. We estimate fiscal 2017 Real
Estate Reported EBITDA to be between $2
million and $8 million. Net Real Estate Cash Flow is
expected to be between $10 million and $20
million. Net income attributable to Vail Resorts, Inc.
is expected to be between $165.5 million and
$194.5 million in fiscal 2017. All of these estimates are
predicated on an exchange rate of $0.77 between the Australian Dollar and U.S.
Dollar, related to the operations of Perisher in Australia. In addition, all of these estimates
exclude any operating results from the pending acquisition of
Whistler Blackcomb, including associated transaction-related and
integration costs."
The following table reflects the forecasted guidance range for
the Company's fiscal year ending July 31,
2017, for Reported EBITDA (after stock-based compensation
expense) and reconciles such Reported EBITDA guidance to net income
attributable to Vail Resorts, Inc. guidance for fiscal 2017.
|
Fiscal 2017
Guidance
|
|
(In
thousands)
|
|
For the Year
Ending
|
|
July 31,
2017
|
|
Low
End
Range
|
|
High
End
Range
|
Mountain Reported
EBITDA (1)
|
$
|
452,000
|
|
|
|
$
|
478,000
|
|
|
Lodging Reported
EBITDA (2)
|
|
25,000
|
|
|
|
|
35,000
|
|
|
Resort Reported
EBITDA (3)
|
|
480,000
|
|
|
|
|
510,000
|
|
|
Real Estate Reported
EBITDA
|
|
2,000
|
|
|
|
|
8,000
|
|
|
Total Reported
EBITDA
|
|
482,000
|
|
|
|
|
518,000
|
|
|
Depreciation and
amortization
|
|
(167,000)
|
|
|
|
|
(161,000)
|
|
|
Loss on disposal of
fixed assets and other, net
|
|
(1,700)
|
|
|
|
|
(500)
|
|
|
Change in fair value
of contingent consideration (4)
|
|
—
|
|
|
|
|
—
|
|
|
Investment income,
net
|
|
700
|
|
|
|
|
1,100
|
|
|
Interest
expense
|
|
(44,000)
|
|
|
|
|
(41,000)
|
|
|
Income before
provision for income taxes
|
|
270,000
|
|
|
|
|
316,600
|
|
|
Provision for income
taxes
|
|
(104,600)
|
|
|
|
|
(122,400)
|
|
|
Net income
|
$
|
165,400
|
|
|
|
$
|
194,200
|
|
|
Net loss attributable
to noncontrolling interests
|
|
100
|
|
|
|
|
300
|
|
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
165,500
|
|
|
|
$
|
194,500
|
|
|
|
|
|
|
|
|
|
|
(1)
Mountain Reported EBITDA includes approximately $15 million of
stock-based compensation.
|
(2)
Lodging Reported EBITDA includes approximately $3 million of
stock-based compensation.
|
(3) The
Company provides Reported EBITDA ranges for the Mountain and
Lodging segments, as well as for the two combined. The low and high
of the expected ranges provided for the Mountain and Lodging
segments, while possible, do not sum to the high or low end of the
Resort Reported EBITDA range provided because we do not expect or
assume that we will hit the low or high end of both
ranges.
|
(4) Our
guidance excludes any change in the fair value of contingent
consideration which is based upon, among other things, financial
projections including long-term growth rates for Park City, which
such change may be material.
|
Whistler Blackcomb Acquisition Update
As previously announced on August 8,
2016, the Company entered into an agreement to acquire 100%
of the stock of Whistler Blackcomb Holdings Inc., which operates
North America's largest and most
visited mountain resort. We are pleased to report that the Canadian
Competition Bureau has issued a no-action letter for the
transaction and we continue to expect that the deal will close this
fall pending Whistler Blackcomb shareholder and remaining Canadian
regulatory approvals. The Company intends to share additional
detail on its expectations from the Whistler Blackcomb acquisition
during its December earnings conference call.
Earnings Conference Call
The Company will conduct a conference call today at 11:30 a.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
(888) 417-8465 (U.S. and Canada)
or (719) 457-2607 (international). A replay of the conference call
will be available two hours following the conclusion of the
conference call through October 10,
2016, at 12:30 p.m. eastern
time. To access the replay, dial (888) 203-1112 (U.S. and
Canada) or (719) 457-0820
(international), pass code 1900352. The conference call will also
be archived at www.vailresorts.com.
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts, Inc., through its subsidiaries, is the leading
global mountain resort operator. The Company's subsidiaries operate
nine world-class mountain resorts and three urban ski areas,
including Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park
City in Utah; Heavenly,
Northstar and Kirkwood in the Lake
Tahoe area of California
and Nevada; Perisher in
New South Wales, Australia; Afton
Alps in Minnesota, Mt.
Brighton in Michigan and Wilmot
Mountain in Wisconsin. The
Company owns and/or manages a collection of casually elegant hotels
under the RockResort 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, including our expectations
regarding our fiscal 2017 performance, including Resort Reported
EBITDA, Resort EBITDA margin, Real Estate Reported EBITDA, Net Real
Estate Cash Flow and net income attributable to Vail Resorts, Inc.,
as well as the expected timing for closure of the Whistler
Blackcomb acquisition. These statements are forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. 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 natural disasters;
willingness of our guests to travel due to terrorism, the
uncertainty of military conflicts or outbreaks of contagious
diseases, 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; our reliance on government permits or approvals for
our use of public land or to make operational and capital
improvements; risks related to a disruption in our water supply
that would impact our snowmaking capabilities; risks related to
federal, state, local and foreign government laws, rules and
regulations; risks related to our reliance on information
technology, including our failure to maintain the integrity of our
customer or employee data; 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 hire and retain a sufficient seasonal workforce; risks
related to our workforce, including increased labor costs; loss of
key personnel; our ability to successfully integrate acquired
businesses or that acquired businesses may fail to perform in
accordance with expectations, including Whistler Blackcomb or
future acquisitions; whether the Whistler Blackcomb acquisition
will be consummated, including the ability and timing to obtain
required regulatory approvals and approval by Whistler Blackcomb
shareholders, and to satisfy other closing conditions and our
ability to obtain the required financing for the cash portion of
the consideration for the Whistler Blackcomb transaction; our
ability to realize anticipated financial benefits from Park City; risks associated with international
operations; fluctuations in foreign currency exchange rates;
changes in accounting estimates and judgments, accounting
principles, policies or guidelines; 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,
2016, which was filed on September
26, 2016.
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 Measures of Segment Profitability and
Non-GAAP Financial Measures
When reporting financial results, we use the terms 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"). 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. Accordingly, these measures may not be comparable to
similarly-titled measures of other companies.
Reported EBITDA 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
July 31,
|
|
Twelve Months
Ended July 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
revenue:
|
|
|
|
|
|
|
|
|
Mountain
|
|
97,994
|
|
|
81,061
|
|
|
$
|
1,304,604
|
|
|
$
|
1,104,029
|
|
Lodging
|
|
74,528
|
|
|
69,373
|
|
|
274,554
|
|
|
254,553
|
|
Real
estate
|
|
7,362
|
|
|
11,648
|
|
|
22,128
|
|
|
41,342
|
|
Total net
revenue
|
|
179,884
|
|
|
162,082
|
|
|
1,601,286
|
|
|
1,399,924
|
|
Segment operating
expense:
|
|
|
|
|
|
|
|
|
Mountain
|
|
152,090
|
|
|
131,554
|
|
|
881,472
|
|
|
777,147
|
|
Lodging
|
|
70,215
|
|
|
66,470
|
|
|
246,385
|
|
|
232,877
|
|
Real
estate
|
|
7,596
|
|
|
12,895
|
|
|
24,639
|
|
|
48,408
|
|
Total segment
operating expense
|
|
229,901
|
|
|
210,919
|
|
|
1,152,496
|
|
|
1,058,432
|
|
Other operating
(expense) income:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
(40,775)
|
|
|
(37,536)
|
|
|
(161,488)
|
|
|
(149,123)
|
|
Gain on sale of real
property
|
|
3,485
|
|
|
—
|
|
|
5,295
|
|
|
151
|
|
Gain on litigation
settlement
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,400
|
|
Change in fair value
of contingent consideration
|
|
(4,200)
|
|
|
(900)
|
|
|
(4,200)
|
|
|
3,650
|
|
Loss on disposal of
fixed assets and other, net
|
|
(2,269)
|
|
|
(1,205)
|
|
|
(5,418)
|
|
|
(2,057)
|
|
(Loss) income from
operations
|
|
(93,776)
|
|
|
(88,478)
|
|
|
282,979
|
|
|
210,513
|
|
Mountain equity
investment income, net
|
|
291
|
|
|
426
|
|
|
1,283
|
|
|
822
|
|
Investment income,
net
|
|
214
|
|
|
91
|
|
|
723
|
|
|
246
|
|
Interest
expense
|
|
(10,461)
|
|
|
(10,131)
|
|
|
(42,366)
|
|
|
(51,241)
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
(11,012)
|
|
|
—
|
|
|
(11,012)
|
|
(Loss) income before
provision for income taxes
|
|
(103,732)
|
|
|
(109,104)
|
|
|
242,619
|
|
|
149,328
|
|
Benefit (provision)
for income taxes
|
|
38,448
|
|
|
38,936
|
|
|
(93,165)
|
|
|
(34,718)
|
|
Net (loss)
income
|
|
$
|
(65,284)
|
|
|
$
|
(70,168)
|
|
|
$
|
149,454
|
|
|
$
|
114,610
|
|
Net loss attributable
to noncontrolling interests
|
|
11
|
|
|
26
|
|
|
300
|
|
|
144
|
|
Net (loss) income
attributable to Vail Resorts, Inc.
|
|
$
|
(65,273)
|
|
|
$
|
(70,142)
|
|
|
$
|
149,754
|
|
|
$
|
114,754
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
|
Basic net (loss)
income per share attributable to Vail Resorts, Inc.
|
|
$
|
(1.80)
|
|
|
$
|
(1.92)
|
|
|
$
|
4.13
|
|
|
$
|
3.16
|
|
Diluted net (loss)
income per share attributable to Vail Resorts, Inc.
|
|
$
|
(1.80)
|
|
|
$
|
(1.92)
|
|
|
$
|
4.01
|
|
|
$
|
3.07
|
|
Cash dividends
declared per share
|
|
$
|
0.8100
|
|
|
$
|
0.6225
|
|
|
$
|
2.8650
|
|
|
$
|
2.0750
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
36,170
|
|
|
36,438
|
|
|
36,276
|
|
|
36,342
|
|
Diluted
|
|
36,170
|
|
|
36,438
|
|
|
37,312
|
|
|
37,406
|
|
Other
Data:
|
|
|
|
|
|
|
|
|
Mountain Reported
EBITDA
|
|
$
|
(53,805)
|
|
|
$
|
(50,067)
|
|
|
$
|
424,415
|
|
|
$
|
344,104
|
|
Lodging Reported
EBITDA
|
|
4,313
|
|
|
2,903
|
|
|
28,169
|
|
|
21,676
|
|
Resort Reported
EBITDA
|
|
(49,492)
|
|
|
(47,164)
|
|
|
452,584
|
|
|
365,780
|
|
Real Estate Reported
EBITDA
|
|
3,251
|
|
|
(1,247)
|
|
|
2,784
|
|
|
(6,915)
|
|
Total Reported
EBITDA
|
|
$
|
(46,241)
|
|
|
$
|
(48,411)
|
|
|
$
|
455,368
|
|
|
$
|
358,865
|
|
Mountain stock-based
compensation
|
|
$
|
3,374
|
|
|
$
|
2,995
|
|
|
$
|
13,404
|
|
|
$
|
11,841
|
|
Lodging stock-based
compensation
|
|
794
|
|
|
709
|
|
|
3,094
|
|
|
2,621
|
|
Resort stock-based
compensation
|
|
4,168
|
|
|
3,704
|
|
|
16,498
|
|
|
14,462
|
|
Real Estate
stock-based compensation
|
|
192
|
|
|
331
|
|
|
527
|
|
|
1,291
|
|
Total stock-based
compensation
|
|
$
|
4,360
|
|
|
$
|
4,035
|
|
|
$
|
17,025
|
|
|
$
|
15,753
|
|
Vail Resorts,
Inc.
Mountain Segment Operating Results
(In thousands, except ETP)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
July 31,
|
|
Percentage
Increase
|
|
Twelve Months
Ended July 31,
|
|
Percentage
Increase
|
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
Net Mountain
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lift
|
|
$
|
15,420
|
|
|
$
|
11,921
|
|
|
29.4%
|
|
$
|
658,047
|
|
|
$
|
536,458
|
|
|
22.7%
|
Ski school
|
|
3,546
|
|
|
2,695
|
|
|
31.6%
|
|
143,249
|
|
|
126,206
|
|
|
13.5%
|
Dining
|
|
12,915
|
|
|
10,349
|
|
|
24.8%
|
|
121,008
|
|
|
101,010
|
|
|
19.8%
|
Retail/rental
|
|
26,386
|
|
|
23,590
|
|
|
11.9%
|
|
241,134
|
|
|
219,153
|
|
|
10.0%
|
Other
|
|
39,727
|
|
|
32,506
|
|
|
22.2%
|
|
141,166
|
|
|
121,202
|
|
|
16.5%
|
Total Mountain net
revenue
|
|
$
|
97,994
|
|
|
$
|
81,061
|
|
|
20.9%
|
|
$
|
1,304,604
|
|
|
$
|
1,104,029
|
|
|
18.2%
|
Mountain operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
|
$
|
54,898
|
|
|
$
|
46,181
|
|
|
18.9%
|
|
$
|
338,250
|
|
|
$
|
291,582
|
|
|
16.0%
|
Retail cost of
sales
|
|
13,082
|
|
|
11,961
|
|
|
9.4%
|
|
93,946
|
|
|
87,817
|
|
|
7.0%
|
Resort related
fees
|
|
2,417
|
|
|
1,911
|
|
|
26.5%
|
|
68,890
|
|
|
59,685
|
|
|
15.4%
|
General and
administrative
|
|
36,578
|
|
|
31,159
|
|
|
17.4%
|
|
167,480
|
|
|
143,772
|
|
|
16.5%
|
Other
|
|
45,115
|
|
|
40,342
|
|
|
11.8%
|
|
212,906
|
|
|
194,291
|
|
|
9.6%
|
Total Mountain
operating expense
|
|
$
|
152,090
|
|
|
$
|
131,554
|
|
|
15.6%
|
|
$
|
881,472
|
|
|
$
|
777,147
|
|
|
13.4%
|
Gain on litigation
settlement
|
|
—
|
|
|
—
|
|
|
—%
|
|
—
|
|
|
16,400
|
|
|
(100.0)%
|
Mountain equity
investment income, net
|
|
291
|
|
|
426
|
|
|
(31.7)%
|
|
1,283
|
|
|
822
|
|
|
56.1%
|
Mountain Reported
EBITDA
|
|
$
|
(53,805)
|
|
|
$
|
(50,067)
|
|
|
(7.5)%
|
|
$
|
424,415
|
|
|
$
|
344,104
|
|
|
23.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total skier
visits
|
|
327
|
|
|
277
|
|
|
18.1%
|
|
10,032
|
|
|
8,466
|
|
|
18.5%
|
ETP
|
|
$
|
47.16
|
|
|
$
|
43.04
|
|
|
9.6%
|
|
$
|
65.59
|
|
|
$
|
63.37
|
|
|
3.5%
|
Vail Resorts,
Inc.
Lodging Operating Results
(In thousands, except Average Daily Rate ("ADR") and RevPAR)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
July 31,
|
|
Percentage
Increase
|
|
Twelve Months
Ended July 31,
|
|
Percentage
Increase
|
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
Lodging net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
rooms
|
|
$
|
20,356
|
|
|
$
|
18,568
|
|
|
9.6%
|
|
$
|
63,520
|
|
|
$
|
57,916
|
|
|
9.7%
|
Managed condominium
rooms
|
|
9,514
|
|
|
9,273
|
|
|
2.6%
|
|
61,934
|
|
|
58,936
|
|
|
5.1%
|
Dining
|
|
15,176
|
|
|
14,671
|
|
|
3.4%
|
|
49,225
|
|
|
46,209
|
|
|
6.5%
|
Transportation
|
|
2,765
|
|
|
2,575
|
|
|
7.4%
|
|
22,205
|
|
|
23,079
|
|
|
(3.8)%
|
Golf
|
|
8,797
|
|
|
8,535
|
|
|
3.1%
|
|
17,519
|
|
|
16,340
|
|
|
7.2%
|
Other
|
|
14,824
|
|
|
12,949
|
|
|
14.5%
|
|
47,833
|
|
|
41,760
|
|
|
14.5%
|
|
|
71,432
|
|
|
66,571
|
|
|
7.3%
|
|
262,236
|
|
|
244,240
|
|
|
7.4%
|
Payroll cost
reimbursements
|
|
3,096
|
|
|
2,802
|
|
|
10.5%
|
|
12,318
|
|
|
10,313
|
|
|
19.4%
|
Total Lodging net
revenue
|
|
$
|
74,528
|
|
|
$
|
69,373
|
|
|
7.4%
|
|
$
|
274,554
|
|
|
$
|
254,553
|
|
|
7.9%
|
Lodging operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and
labor-related benefits
|
|
$
|
31,875
|
|
|
$
|
30,385
|
|
|
4.9%
|
|
$
|
114,404
|
|
|
$
|
110,168
|
|
|
3.8%
|
General and
administrative
|
|
8,315
|
|
|
7,379
|
|
|
12.7%
|
|
35,351
|
|
|
32,481
|
|
|
8.8%
|
Other
|
|
26,929
|
|
|
25,904
|
|
|
4.0%
|
|
84,312
|
|
|
79,915
|
|
|
5.5%
|
|
|
67,119
|
|
|
63,668
|
|
|
5.4%
|
|
234,067
|
|
|
222,564
|
|
|
5.2%
|
Reimbursed payroll
costs
|
|
3,096
|
|
|
2,802
|
|
|
10.5%
|
|
12,318
|
|
|
10,313
|
|
|
19.4%
|
Total Lodging
operating expense
|
|
$
|
70,215
|
|
|
$
|
66,470
|
|
|
5.6%
|
|
$
|
246,385
|
|
|
$
|
232,877
|
|
|
5.8%
|
Lodging Reported
EBITDA
|
|
$
|
4,313
|
|
|
$
|
2,903
|
|
|
48.6%
|
|
$
|
28,169
|
|
|
$
|
21,676
|
|
|
30.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned hotel
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
216.28
|
|
|
$
|
201.08
|
|
|
7.6%
|
|
$
|
227.27
|
|
|
$
|
216.76
|
|
|
4.8%
|
RevPAR
|
|
$
|
146.83
|
|
|
$
|
133.77
|
|
|
9.8%
|
|
$
|
153.13
|
|
|
$
|
140.28
|
|
|
9.2%
|
Managed condominium
statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
204.46
|
|
|
$
|
188.28
|
|
|
8.6%
|
|
$
|
325.38
|
|
|
$
|
316.32
|
|
|
2.9%
|
RevPAR
|
|
$
|
52.18
|
|
|
$
|
48.94
|
|
|
6.6%
|
|
$
|
109.68
|
|
|
$
|
101.19
|
|
|
8.4%
|
Owned hotel and
managed condominium statistics (combined):
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
211.45
|
|
|
$
|
195.69
|
|
|
8.1%
|
|
$
|
280.38
|
|
|
$
|
270.84
|
|
|
3.5%
|
RevPAR
|
|
$
|
85.51
|
|
|
$
|
78.57
|
|
|
8.8%
|
|
$
|
122.61
|
|
|
$
|
112.67
|
|
|
8.8%
|
Key Balance Sheet
Data
(In thousands)
(Unaudited)
|
|
|
|
|
|
As of July
31,
|
|
|
2016
|
|
2015
|
Real estate held for
sale and investment
|
|
$
|
111,088
|
|
|
$
|
129,825
|
|
Total Vail Resorts,
Inc. stockholders' equity
|
|
874,540
|
|
|
866,568
|
|
Long-term
debt
|
|
686,909
|
|
|
804,347
|
|
Long-term debt due
within one year
|
|
13,354
|
|
|
10,154
|
|
Total debt
|
|
700,263
|
|
|
814,501
|
|
Less: cash and cash
equivalents
|
|
67,897
|
|
|
35,459
|
|
Net debt
|
|
$
|
632,366
|
|
|
$
|
779,042
|
|
Reconciliation of Measures of Segment Profitability and
Non-GAAP Financial Measures
Presented below is a reconciliation of Reported EBITDA to net
(loss) income attributable to Vail Resorts, Inc. for the three and
twelve months ended July 31, 2016 and
2015.
|
|
(In thousands)
(Unaudited)
|
|
(In thousands)
(Unaudited)
|
|
|
Three Months Ended
July 31,
|
|
Twelve Months
Ended July 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Mountain Reported
EBITDA
|
|
$
|
(53,805)
|
|
|
$
|
(50,067)
|
|
|
$
|
424,415
|
|
|
$
|
344,104
|
|
Lodging Reported
EBITDA
|
|
4,313
|
|
|
2,903
|
|
|
28,169
|
|
|
21,676
|
|
Resort Reported
EBITDA*
|
|
(49,492)
|
|
|
(47,164)
|
|
|
452,584
|
|
|
365,780
|
|
Real Estate Reported
EBITDA
|
|
3,251
|
|
|
(1,247)
|
|
|
2,784
|
|
|
(6,915)
|
|
Total Reported
EBITDA
|
|
(46,241)
|
|
|
(48,411)
|
|
|
455,368
|
|
|
358,865
|
|
Depreciation and
amortization
|
|
(40,775)
|
|
|
(37,536)
|
|
|
(161,488)
|
|
|
(149,123)
|
|
Loss on disposal of
fixed assets and other, net
|
|
(2,269)
|
|
|
(1,205)
|
|
|
(5,418)
|
|
|
(2,057)
|
|
Change in fair value
of contingent consideration
|
|
(4,200)
|
|
|
(900)
|
|
|
(4,200)
|
|
|
3,650
|
|
Investment income,
net
|
|
214
|
|
|
91
|
|
|
723
|
|
|
246
|
|
Interest
expense
|
|
(10,461)
|
|
|
(10,131)
|
|
|
(42,366)
|
|
|
(51,241)
|
|
Loss on
extinguishment of debt
|
|
—
|
|
|
(11,012)
|
|
|
—
|
|
|
(11,012)
|
|
(Loss) income before
provision for income taxes
|
|
(103,732)
|
|
|
(109,104)
|
|
|
242,619
|
|
|
149,328
|
|
Benefit (provision)
for income taxes
|
|
38,448
|
|
|
38,936
|
|
|
(93,165)
|
|
|
(34,718)
|
|
Net (loss)
income
|
|
$
|
(65,284)
|
|
|
$
|
(70,168)
|
|
|
$
|
149,454
|
|
|
$
|
114,610
|
|
Net loss attributable
to noncontrolling interests
|
|
11
|
|
|
26
|
|
|
300
|
|
|
144
|
|
Net (loss) income
attributable to Vail Resorts, Inc.
|
|
$
|
(65,273)
|
|
|
$
|
(70,142)
|
|
|
$
|
149,754
|
|
|
$
|
114,754
|
|
|
|
|
|
|
|
|
|
|
* Resort represents
the sum of Mountain and Lodging
|
|
|
|
|
|
|
|
|
The following table reconciles Net Debt to long-term debt and
the calculation of Net Debt to Total Reported EBITDA for the twelve
months ended July 31, 2016.
|
|
(In thousands)
(Unaudited)
As of July 31, 2016
|
Long-term
debt
|
|
$
|
686,909
|
|
|
Long-term debt due
within one year
|
|
13,354
|
|
|
Total debt
|
|
700,263
|
|
|
Less: cash and cash
equivalents
|
|
67,897
|
|
|
Net debt
|
|
$
|
632,366
|
|
|
Net debt to Total
Trailing 12 Month Reported EBITDA
|
|
1.4
|
|
x
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three and twelve months ended
July 31, 2016 and 2015.
|
|
(In thousands)
(Unaudited)
Three Months Ended
July 31,
|
|
(In thousands)
(Unaudited)
Three Months Ended
July 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Real Estate Reported
EBITDA
|
|
$
|
3,251
|
|
|
$
|
(1,247)
|
|
|
$
|
2,784
|
|
|
$
|
(6,915)
|
|
Non-cash real estate
cost of sales
|
|
5,216
|
|
|
9,132
|
|
|
15,724
|
|
|
32,190
|
|
Non-cash real estate
stock-based compensation
|
|
193
|
|
|
331
|
|
|
527
|
|
|
1,291
|
|
Change in real estate
deposits and recovery of previously incurred project costs/land
basis less investments in real estate
|
|
628
|
|
|
(1,291)
|
|
|
2,991
|
|
|
2,348
|
|
Net Real Estate Cash
Flow
|
|
$
|
9,288
|
|
|
$
|
6,925
|
|
|
$
|
22,026
|
|
|
$
|
28,914
|
|
The following table reconciles Resort net revenue to Resort
EBITDA Margin for fiscal 2017 guidance and fiscal 2016.
|
|
(In thousands) (Unaudited) Fiscal 2017
Guidance (2)
|
|
(In thousands)
(Unaudited)
Fiscal Year Ended
July 31, 2016
|
Resort net revenue
(1)
|
|
$
1,663,900
|
|
$
1,579,158
|
Resort Reported
EBITDA (1)
|
|
$
495,000
|
|
$
452,584
|
Resort EBITDA
margin
|
|
29.7%
|
|
28.7%
|
|
|
|
|
|
(1) Resort
represents the sum of Mountain and Lodging
|
(2)
Represents the mid-point range of Guidance
|
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SOURCE Vail Resorts, Inc.