BROOMFIELD, Colo., Dec. 9, 2021 /PRNewswire/ -- Vail Resorts, Inc.
(NYSE: MTN) today reported results for the first quarter of fiscal
2022 ended October 31, 2021, provided
season pass sales results and certain early ski season indicators,
reaffirmed its guidance for Resort Reported EBITDA for fiscal 2022,
provided additional detail on its CY22 capital plan and declared a
dividend payable in January 2022.
Highlights
- Net loss attributable to Vail Resorts, Inc. was $139.3 million for the first quarter of fiscal
2022 compared to a net loss attributable to Vail Resorts, Inc. of
$153.8 million in the same period in
the prior year. Both periods continued to be negatively impacted by
COVID-19 and related limitations and restrictions.
- Resort Reported EBITDA loss was $108.4
million for the first quarter of fiscal 2022, compared to a
Resort Reported EBITDA loss of $94.8
million for the first quarter of fiscal 2021. Both periods
continued to be negatively impacted by COVID-19 and related
limitations and restrictions. Additionally, the prior year period
included the recognition of $15.4
million of lift revenue associated with the expiration of
the credit offers that were made to 2019/2020 pass product holders
in connection with COVID-19 related closures.
- Pass product sales through December 5,
2021 for the upcoming 2021/2022 North American ski season
increased approximately 47% in units and approximately 21% in sales
dollars as compared to the period in the prior year through
December 6, 2020, without deducting
for the value of any redeemed credits provided to certain North
American pass product holders in the prior period. Pass product
sales are adjusted to eliminate the impact of foreign currency by
applying an exchange rate of $0.78
between the Canadian dollar and U.S. dollar in both periods for
Whistler Blackcomb pass sales.
- The Company continues to maintain significant liquidity with
$1.5 billion of cash on hand as of
October 31, 2021 and $636.2 million of availability under our U.S. and
Whistler Blackcomb revolving credit facilities. The Company
declared a cash dividend of $0.88 per
share payable in January 2022 and
exited the temporary waiver period under the Vail Holdings, Inc.
revolving credit facility (the "VHI Credit Agreement") effective
October 31, 2021.
- The Company reaffirmed its guidance for fiscal year 2022 of
$785 million to $835 million of Resort Reported EBITDA, including
an estimated $2 million of
acquisition related expenses specific to Seven Springs.
- On December 8, 2021, the Company
announced that it had entered into an agreement to acquire Seven
Springs Mountain Resort, Hidden Valley Ski Resort and Laurel Mountain ski area. The Company expects
the acquisition to close this winter.
Commenting on the Company's fiscal 2022 first quarter results,
Kirsten Lynch, 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. We are pleased with our results for the
quarter, which exceeded our expectations. Performance at our
Australian resorts during the first quarter was negatively impacted
by COVID-19-related limitations and restrictions including
stay-at-home orders and periodic resort closures throughout the
quarter. We were able to reopen our Australian resorts for the last
few weeks of the ski season, resulting in favorability relative to
our expectations. Our Tahoe resorts were negatively impacted by the
Caldor fire, which resulted in the early closure of our summer
operations in the region. Aside from these unique challenges, we
continued to see strong demand throughout the quarter, which we
believe highlights our guests' continued desire for outdoor
experiences.
Commenting on the Company's liquidity, Lynch stated, "We remain
focused on our disciplined approach to capital allocation. Our
liquidity position remains strong, and we are confident in the free
cash flow generation and stability of our business model. Our total
cash and revolver availability as of October
31, 2021 was approximately $2.1
billion, with $1.5 billion of
cash on hand, $417 million of
revolver availability under the VHI Credit Agreement, and
$220 million of revolver availability
under the Whistler Blackcomb Credit Agreement. As of October 31, 2021, our Net Debt was 2.6 times
trailing twelve months Total Reported EBITDA, and we exited the
temporary waiver period under the VHI Credit Agreement effective
October 31, 2021. I am also pleased
to announce that our Board of Directors has declared a cash
dividend on Vail Resorts' common stock. The dividend will be
$0.88 per share of common stock and
will be payable on January 11, 2022
to shareholders of record on December 28,
2021."
Moving on to season pass results, Lynch said, "Pass product
sales for the North American ski season increased approximately 47%
in units and approximately 21% in sales dollars through
December 5, 2021 as compared to the
period in the prior year through December 6,
2020, without deducting for the value of any redeemed
credits provided to certain North American pass holders in the
prior period. Pass product sales through December 5, 2021 for the 2021/2022 North American
ski season increased approximately 76% in units and approximately
45% in sales dollars as compared to sales for the 2019/2020 North
American ski season through December 8,
2019, with pass product sales adjusted to include Peak
Resorts pass sales in both periods. Pass product sales are adjusted
to eliminate the impact of foreign currency by applying an exchange
rate of $0.78 between the Canadian
dollar and U.S. dollar in all periods for Whistler Blackcomb pass
sales.
"We are very pleased with the results of our season pass sales,
which continue to demonstrate the strength of our data analytics
capabilities and the compelling value proposition of our pass
products, driven in part by the 20% reduction in pass prices for
the 2021/2022 season. We expect that the total number of guests on
all advance commitment products this year will exceed 2.1 million
including all pass products for our North American and Australian
resorts, an increase of approximately 0.7 million from last year
and an increase of approximately 0.9 million from two years
ago.
"For the full pass sales season, we saw strong unit growth from
renewing pass holders and significantly stronger unit growth from
new pass holders, which include guests in our database who
previously purchased lift tickets or passes but did not buy a pass
in the previous season as well as guests who are completely new to
our database. Our most significant unit growth was from our
destination markets, particularly in the Northeast, and we also had
very strong growth across all of our local markets. We have focused
on growing our destination pass holder base as we have expanded our
network, and over the course of the last two years, we have nearly
doubled the number of advance commitment guests from those markets.
Our absolute unit growth was led by our core Epic and Epic Local
pass products, and we also saw very strong growth from our Epic Day
Pass products, including strength in our new Epic Day Pass Limited
products, which offer a lower price point for guests not planning
to ski at select resorts. Compared to the period ended December 6, 2020, effective pass price decreased
17% despite the 20% price decrease we implemented this year and the
significant growth of our lower priced Epic Day Pass products,
which continue to represent an increasing portion of our total
advance commitment product sales. We significantly outperformed our
original expectations for pass sales relative to the estimates we
provided when we announced the 20% price decrease in our passes,
which was driven by the significant increase in new pass holders
and guests trading up to higher value passes."
Lynch continued, "We are encouraged by the indicators of demand
heading into the 2021/2022 North American ski season with strong
leisure travel demand indicators. Our strong pass sales
provide visibility into the robust demand for guests to visit our
resorts in the year ahead. Lodging bookings at our U.S. resorts for
the upcoming season are trending ahead of pre-COVID-19 levels for
the 2019/2020 season, while lodging bookings at Whistler Blackcomb
are lagging 2019/2020 bookings, which we anticipate is due to the
impact of travel restrictions on international visitors to the
resort. 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. Our
early season conditions have been challenging across the network,
resulting in delayed openings and limited open terrain. Many of our
resorts are very recently experiencing snowfall and colder
temperatures that have been more conducive to snowmaking which we
expect will allow us to expand our open terrain soon. Despite
the challenging early season conditions, the success of our advance
commitment strategy allows us to secure a significant amount of our
demand and revenue ahead of the season which creates significant
stability for our business."
Seven Springs Acquisition
As previously announced on December 8,
2021, the Company entered into an agreement to acquire Seven
Springs Mountain Resort, Hidden Valley Ski Resort and Laurel Mountain ski area in the Pittsburgh, Pennsylvania area (collectively
"Seven Springs") for a purchase price of approximately $125 million, subject to certain adjustments. We
estimate that Seven Springs will generate incremental annual EBITDA
in excess of $15 million in the
Company's fiscal year ending July 31,
2023, which includes approximately $5
million for the 418-room Slopeside Hotel and associated
conference facilities and lodging operations. The ongoing capital
expenditures associated with the Seven Springs operations are
expected to be approximately $3
million per year. We plan to add access to the three resorts
to our Epic Pass products for the 2022/2023 North American ski
season. The transaction is expected to close this winter.
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, 2021, which was filed today with the
Securities and Exchange Commission. The following are segment
highlights:
Mountain Segment
- Mountain segment net revenue increased $9.8 million, or 9.9%, to $109.3 million for the three months ended
October 31, 2021 as compared to the
same period in the prior year, primarily due to fewer COVID-19
related limitations and restrictions as compared to the prior year,
partially offset by the prior year recognition of $15.4 million of lift revenue associated with the
expiration of the credit offers to 2019/2020 pass product
holders.
- Mountain Reported EBITDA loss was $111.0
million for the three months ended October 31, 2021, which represents an incremental
loss of $25.8 million, or 30.3%, as
compared to Mountain Reported EBITDA loss for the same period in
the prior year, primarily due to the recognition of $15.4 million of lift revenue associated with the
expiration of the credit offers to 2019/2020 pass product holders
in the prior year as well as decreased results at our Australian
ski areas, primarily due to periodic COVID-19 related closures at
Perisher in the current year. Additionally, Mountain Reported
EBITDA decreased due to increased general & administrative
expenses primarily due to COVID-19 related cost management in the
prior year. These decreases were partially offset by an increase in
our North American summer operations as a result of fewer COVID-19
related limitations and restrictions as compared to the prior
year.
Lodging Segment
- Lodging Segment net revenue (excluding payroll cost
reimbursements) increased $33.4
million, or 108.2%, to $64.2
million for the three months ended October 31, 2021 as compared to the same period
in the prior year, primarily as a result of fewer COVID-19 related
limitations and restrictions as compared to the prior year, as well
as increased demand.
- Lodging Reported EBITDA was $2.6
million for the three months ended October 31, 2021, which represents an increase of
$12.2 million, or 126.5%, as compared
to the Lodging Reported EBITDA loss for the same period in the
prior year, primarily as a result of fewer COVID-19
capacity-related restrictions and limitations on our North American
summer operations compared to the prior year as well as increased
demand, partially offset by increased general & administrative
expenses primarily due to COVID-19 related cost management in the
prior year.
Resort - Combination of Mountain and Lodging Segments
- Resort net revenue was $175.3
million for the three months ended October 31, 2021, an increase of $43.7 million as compared to Resort net revenue
of $131.5 million for the same period
in the prior year.
- Resort Reported EBITDA loss was $108.4
million for the three months ended October 31, 2021, a decrease of $13.6 million as compared to Resort Reported
EBITDA loss of $94.8 million for the
same period in the prior year.
Total Performance
- Total net revenue increased $43.8
million, or 33.2%, to $175.6
million for the three months ended October 31, 2021 as compared to the same period
in the prior year.
- Net loss attributable to Vail Resorts, Inc. was $139.3 million, or a loss of $3.44 per diluted share, for the first quarter of
fiscal 2022 compared to a net loss attributable to Vail Resorts,
Inc. of $153.8 million, or a loss of
$3.82 per diluted share, in the prior
year.
Return of Capital
The Company exited the temporary waiver period under the Vail
Holdings Credit Agreement effective October
31, 2021 and declared a quarterly cash dividend of
$0.88 per share of Vail Resorts'
common stock that will be payable on January
11, 2022 to shareholders of record on December 28, 2021. Additionally, a Canadian
dollar equivalent dividend on the exchangeable shares of Whistler
Blackcomb Holdings Inc. will be payable on January 11, 2022 to shareholders of record on
December 28, 2021. The exchangeable
shares were issued to certain Canadian persons in connection with
our acquisition of Whistler Blackcomb Holdings Inc. This dividend
payment equates to 50% of pre-pandemic levels, consistent with the
Company's prior quarter cash dividend, and reflects our continued
confidence in the strong free cash flow generation and stability of
our business model despite the ongoing risks associated with
COVID-19. Our Board of Directors will continue to closely monitor
the economic and public health outlook on a quarterly basis to
assess the level of our quarterly dividend going forward.
Capital Investments
Commenting on the Company's focus on the guest experience, Lynch
said, "We remain dedicated to continuing to improve the guest
experience, reduce wait times and communicate transparently with
guests, especially given the excitement and demand for travel this
coming season. As announced on November
16, we have taken additional steps to prioritize the
on-mountain experience of pass holders this season, including
limiting lift ticket sales during the three most popular holiday
periods, deploying a new operating plan which includes
significantly improving how efficiently we load lifts and gondolas,
launching a new daily forecast of lift line wait times in the
EpicMix app, and investing in new lifts and expanded terrain to
reduce wait times to ensure skiers and riders have an Experience of
a Lifetime at our resorts this season.
"We are thrilled to welcome guests to all of our resorts as the
2021/2022 North American ski season kicks off with several
transformational enhancements to the guest experience. In
Colorado, we completed a 250 acre
lift-served terrain expansion in the signature McCoy Park area of
Beaver Creek, further
differentiating the resort's high-end, family focused experience.
We also added a new four-person high speed lift at Breckenridge to serve the popular Peak 7,
replaced the Peru lift at
Keystone with a six-person high
speed chairlift, and replaced the Peachtree lift at Crested Butte with a new three-person
fixed-grip lift. At Okemo, we completed a transformational
investment including upgrading the Quantum lift to replace the
Green Ridge three-person fixed-grip chairlift. In addition to these
investments that will greatly improve uplift capacity, we have
invested in company-wide technology enhancements, including a
number of upgrades to bring a best-in-class approach to how we
service our guests through our customer service channels.
Regarding calendar year 2022 capital expenditures, Lynch said,
"As announced in September, we are excited to be proceeding with
our ambitious capital investment plan for calendar year 2022 of
approximately $318 million to
$328 million across our resorts to
significantly increase lift capacity and enhance the guest
experience as we drive increased loyalty from our guests and
continuously improve the value proposition of our advance
commitment products. The plan includes the installation of 21 new
or replacement lifts across 14 of our resorts that collectively
will increase lift capacity in those lift locations by more than
60% and a transformational lift-served terrain expansion at
Keystone. The updated lift upgrade
plan includes two incremental replacement lifts at Jack Frost and
Big Boulder in Pennsylvania to
provide increased capacity and improved guest experience at the
resorts. All of the projects in the plan are subject to regulatory
approvals.
"In addition to these lift upgrade and terrain expansion
projects, we are excited to announce additional details on our
investment plans not previously highlighted in our September
announcement. We continue to remain highly focused on developing
and leveraging our data-driven approach to marketing and operating
the business. Our planned investments include network-wide scalable
technology that will enhance our analytics, e-commerce and guest
engagement tools to improve our ability to target our guest
outreach, personalize messages and improve conversion. We will also
be investing in broader self-service capabilities to improve
guests' online experience and engagement. In addition, we are
excited to announce a $3.6 million
capital investment plan in Vail Resorts' Commitment to Zero
initiative, including targeted investments in high efficiency
snowmaking, heating and cooling infrastructure and lighting to
further improve our energy efficiency and make meaningful progress
toward our 2030 goal.
"We expect our capital plan for calendar year 2022 to be
approximately $315 million to
$325 million, excluding approximately
$3 million of one-time items
associated with real estate related capital, and excluding any
capital expenditures associated with the Seven Springs acquisition,
which remains subject to closing. This is approximately
$150 million above our typical annual
capital plan, based on inflation and previous additions for
acquisitions, and includes approximately $20 million of
incremental spending to complete the one-time capital plans
associated with the Peak Resorts and Triple Peaks acquisitions.
Including one-time real estate related capital, our total capital
plan is expected to be approximately $318
million to $328 million. We
will be providing further detail on our calendar year 2022 capital
plan in March 2022."
Outlook
Commenting on fiscal 2022 guidance, Lynch said, "Given our first
quarter results and the indicators we are seeing for the upcoming
season, we are reaffirming our Resort Reported EBITDA guidance for
fiscal 2022 of $785 million to
$835 million that was included in our September earnings
release based on the assumptions incorporated at that time,
including foreign currency exchange rates. Our guidance includes an
estimated $2 million of acquisition
related expenses specific to Seven Springs, but does not include
any estimate for the closing costs, operating results or
integration expense associated with the Seven Springs acquisition,
which is expected to close this winter.
"We are encouraged by our very strong pass sales heading into
the season, our favorable first quarter results and the strong
demand we are seeing across leisure travel and in our U.S. booking
trends. It is important to note that our growth in pass sales
is expected to be partially offset by reduced lift ticket sales as
we continue to successfully convert guests from lift tickets to
pass products. Additionally, we anticipate modest offsets from
limiting lift ticket sales during the three most popular holiday
periods across our North American resorts to prioritize access for
pass holders. Early season conditions have been challenging,
resulting in delayed openings and limited terrain across many of
our resorts, and we anticipate that these conditions will have a
negative impact on our results leading up to the holidays but the
North American ski season has just begun with our primary earnings
period still in front of us. There continues to be uncertainty
regarding the ultimate impact of COVID-19 on our business results
in fiscal year 2022, including any response to changing COVID-19
guidance and regulations by the various governmental bodies that
regulate our operations and resort communities, as well as changes
in travel and consumer behavior resulting from COVID-19. Our
guidance for fiscal year 2022 assumes normal weather and conditions
from the holiday period onward and no impact from incremental
travel or operating restrictions associated with COVID-19 that
could negatively impact our results.
"The Company revised its segment reporting to move certain
dining and golf operations from the Lodging segment to the Mountain
segment, consistent with how these operations are managed. The
expected result of this reporting revision is a shift of
approximately $6 million from Lodging
Reported EBITDA to Mountain Reported EBITDA for our fiscal 2022
guidance relative to our guidance that was included in our
September earnings release. This shift has no impact on expected
Net Income Attributable to Vail Resorts, Inc. or Resort Reported
EBITDA."
The following table reflects the forecasted guidance range for
the Company's fiscal year ending July 31,
2022, for Reported EBITDA (after stock-based compensation
expense) and reconciles net income attributable to Vail Resorts,
Inc. guidance to such Reported EBITDA guidance.
|
Fiscal 2022
Guidance
|
|
(In
thousands)
|
|
For the Year
Ending
|
|
July 31, 2022
(6)
|
|
Low
End
|
|
High
End
|
|
Range
|
|
Range
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
278,000
|
|
|
$
|
349,000
|
|
Net income
attributable to noncontrolling interests
|
24,000
|
|
|
18,000
|
|
Net income
|
302,000
|
|
|
367,000
|
|
Provision for income
taxes (1)
|
82,000
|
|
|
100,000
|
|
Income before
provision for income taxes
|
384,000
|
|
|
467,000
|
|
Depreciation and
amortization
|
250,000
|
|
|
238,000
|
|
Interest expense,
net
|
150,000
|
|
|
142,000
|
|
Other
(2)
|
(5,000)
|
|
|
(12,000)
|
|
Total Reported
EBITDA
|
$
|
779,000
|
|
|
$
|
835,000
|
|
|
|
|
|
Mountain Reported
EBITDA (3)
|
$
|
772,000
|
|
|
$
|
820,000
|
|
Lodging Reported
EBITDA (4)
|
10,000
|
|
|
18,000
|
|
Resort Reported EBITDA
(5)
|
785,000
|
|
|
835,000
|
|
Real Estate Reported
EBITDA
|
(6,000)
|
|
|
—
|
|
Total Reported
EBITDA
|
$
|
779,000
|
|
|
$
|
835,000
|
|
|
|
|
|
(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 are in-the-money.
|
(2) Our
guidance includes certain 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 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.
|
(3)
Mountain Reported EBITDA also includes approximately $21 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 $0.80
between the Canadian Dollar and U.S. Dollar, related to the
operations of Whistler Blackcomb in Canada and an exchange rate of
$0.74 between the Australian Dollar and U.S. Dollar, related to the
operations of our Australian ski areas.
|
Earnings Conference Call
The Company will conduct a conference call today at 5:00 p.m. eastern time to discuss the financial
results. The call will be webcast and can be accessed at
www.vailresorts.com in the Investor Relations section, or dial
(866) 548-4713 (U.S. and Canada)
or (323) 794-2093 (international). A replay of the conference call
will be available two hours following the conclusion of the
conference call through December 23,
2021, 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 5370828. The conference call will also
be archived at www.vailresorts.com.
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts, Inc., through its subsidiaries, is the leading
global mountain resort operator. Vail Resorts' subsidiaries operate
37 destination mountain resorts and regional ski areas, including
Vail, Beaver Creek, Breckenridge, Keystone and Crested
Butte in Colorado;
Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake
Tahoe area of California
and Nevada; Whistler Blackcomb in
British Columbia, Canada;
Perisher, Falls Creek and Hotham
in Australia; Stowe, Mount
Snow, and 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 the statements regarding fiscal 2022
performance (including the assumptions related thereto), including
our expected Resort Reported EBITDA; our expectations regarding our
liquidity; the effects of the COVID-19 pandemic on, among other
things, our operations; expectations related to our season pass
sales and products; our expectations regarding our ancillary lines
of business; the payment of dividends; our calendar year 2022
capital plan and expectations related thereto; the timing of
closing of the Seven Springs transaction and the expected estimated
incremental annual EBITDA and capital expenditures 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 ultimate duration of COVID-19 and its short-term
and long-term impacts on consumer behaviors, the economy generally
and our business and results of operations, 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; the willingness of our guests to travel due to
terrorism, the uncertainty of military conflicts or outbreaks of
contagious diseases (such as the ongoing COVID-19 pandemic), and
the cost and availability of travel options and changing consumer
preferences; 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 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; 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; 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; 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; risks related to our workforce, including
increased labor costs; loss of key personnel and our ability to
hire and retain 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; our ability to successfully integrate acquired
businesses, or that acquired businesses may fail to perform in
accordance with expectations; risks associated with international
operations; fluctuations in foreign currency exchange rates where
the Company has foreign currency exposure, primarily the Canadian
and Australian dollars, 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, 2021,
which was filed on September 23,
2021.
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, 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, 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 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,
|
|
2021
|
|
2020
|
Net
revenue:
|
|
|
|
Mountain and Lodging
services and other
|
$
|
121,860
|
|
|
$
|
104,274
|
|
Mountain and Lodging
retail and dining
|
53,401
|
|
|
27,258
|
|
Resort net
revenue
|
175,261
|
|
|
131,532
|
|
Real Estate
|
315
|
|
|
254
|
|
Total net
revenue
|
175,576
|
|
|
131,786
|
|
Segment operating
expense:
|
|
|
|
Mountain and Lodging
operating expense
|
183,725
|
|
|
154,137
|
|
Mountain and Lodging
retail and dining cost of products sold
|
24,229
|
|
|
17,132
|
|
General and
administrative
|
77,234
|
|
|
59,029
|
|
Resort operating
expense
|
285,188
|
|
|
230,298
|
|
Real Estate operating
expense
|
1,470
|
|
|
1,450
|
|
Total segment
operating expense
|
286,658
|
|
|
231,748
|
|
Other operating
(expense) income:
|
|
|
|
Depreciation and
amortization
|
(61,489)
|
|
|
(62,628)
|
|
Gain on sale of real
property
|
31
|
|
|
—
|
|
Change in estimated
fair value of contingent consideration
|
(2,000)
|
|
|
(802)
|
|
Gain (loss) on
disposal of fixed assets and other, net
|
8,867
|
|
|
(569)
|
|
Loss from
operations
|
(165,673)
|
|
|
(163,961)
|
|
Mountain equity
investment income, net
|
1,514
|
|
|
3,986
|
|
Investment income and
other, net
|
499
|
|
|
343
|
|
Foreign currency gain
on intercompany loans
|
831
|
|
|
540
|
|
Interest expense,
net
|
(39,545)
|
|
|
(35,407)
|
|
Loss before benefit
from income taxes
|
(202,374)
|
|
|
(194,499)
|
|
Benefit from income
taxes
|
59,853
|
|
|
37,478
|
|
Net loss
|
(142,521)
|
|
|
(157,021)
|
|
Net loss attributable
to noncontrolling interests
|
3,189
|
|
|
3,255
|
|
Net loss attributable
to Vail Resorts, Inc.
|
$
|
(139,332)
|
|
|
$
|
(153,766)
|
|
Per share
amounts:
|
|
|
|
Basic net loss per
share attributable to Vail Resorts, Inc.
|
$
|
(3.44)
|
|
|
$
|
(3.82)
|
|
Diluted net loss per
share attributable to Vail Resorts, Inc.
|
$
|
(3.44)
|
|
|
$
|
(3.82)
|
|
Cash dividends
declared per share
|
$
|
0.88
|
|
|
$
|
—
|
|
Weighted average
shares outstanding:
|
|
|
|
Basic
|
40,448
|
|
|
40,248
|
|
Diluted
|
40,448
|
|
|
40,248
|
|
Vail Resorts,
Inc.
|
Consolidated
Condensed Statements of Operations - Other Data
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
October 31,
|
|
2021
|
|
2020
(1)
|
Other
Data:
|
|
|
|
Mountain Reported
EBITDA
|
$
|
(110,964)
|
|
|
$
|
(85,160)
|
|
Lodging Reported
EBITDA
|
2,551
|
|
|
(9,620)
|
|
Resort Reported
EBITDA
|
(108,413)
|
|
|
(94,780)
|
|
Real Estate Reported
EBITDA
|
(1,124)
|
|
|
(1,196)
|
|
Total Reported
EBITDA
|
$
|
(109,537)
|
|
|
$
|
(95,976)
|
|
Mountain stock-based
compensation
|
$
|
5,368
|
|
|
$
|
4,801
|
|
Lodging stock-based
compensation
|
995
|
|
|
891
|
|
Resort stock-based
compensation
|
6,363
|
|
|
5,692
|
|
Real Estate
stock-based compensation
|
62
|
|
|
62
|
|
Total stock-based
compensation
|
$
|
6,425
|
|
|
$
|
5,754
|
|
|
|
|
|
(1) On August 1, 2021, the Company
revised its segment reporting to move certain dining and golf
operations from the Lodging segment to the Mountain segment.
Segment results for the three months ended October 31, 2020 have
been retrospectively adjusted to reflect current period
presentation.
|
Vail Resorts,
Inc.
|
Mountain Segment
Operating Results
|
(In thousands,
except Effective Ticket Price "ETP")
|
(Unaudited)
|
|
|
Three Months Ended
October 31,
|
|
Percentage
Increase
|
|
2021
|
|
2020
(2)
|
|
(Decrease)
|
Net Mountain
revenue:
|
|
|
|
|
|
Lift
|
$
|
14,329
|
|
|
$
|
33,091
|
|
|
(56.7)
|
%
|
Ski school
|
1,473
|
|
|
2,044
|
|
|
(27.9)
|
%
|
Dining
|
12,520
|
|
|
3,068
|
|
|
308.1
|
%
|
Retail/rental
|
28,376
|
|
|
22,306
|
|
|
27.2
|
%
|
Other
|
52,602
|
|
|
38,970
|
|
|
35.0
|
%
|
Total Mountain net
revenue
|
109,300
|
|
|
99,479
|
|
|
9.9
|
%
|
Mountain operating
expense:
|
|
|
|
|
|
Labor and
labor-related benefits
|
80,427
|
|
|
66,796
|
|
|
20.4
|
%
|
Retail cost of
sales
|
14,623
|
|
|
12,852
|
|
|
13.8
|
%
|
General and
administrative
|
64,737
|
|
|
49,961
|
|
|
29.6
|
%
|
Other
|
61,991
|
|
|
59,016
|
|
|
5.0
|
%
|
Total Mountain
operating expense
|
221,778
|
|
|
188,625
|
|
|
17.6
|
%
|
Mountain equity
investment income, net
|
1,514
|
|
|
3,986
|
|
|
(62.0)
|
%
|
Mountain Reported
EBITDA
|
$
|
(110,964)
|
|
|
$
|
(85,160)
|
|
|
(30.3)
|
%
|
|
|
|
|
|
|
Total skier
visits
|
218
|
|
|
287
|
|
|
(24.0)
|
%
|
ETP
|
$
|
65.73
|
|
|
$
|
115.30
|
|
|
(43.0)
|
%
|
|
|
|
|
|
|
(1) On August 1, 2021, the Company
revised its segment reporting to move certain dining and golf
operations from the Lodging segment to the Mountain segment.
Segment results for the three months ended October 31, 2020 have
been retrospectively adjusted to reflect current period
presentation.
|
Vail Resorts,
Inc.
|
Lodging Operating
Results
|
(In thousands,
except Average Daily Rate ("ADR") and Revenue per Available Room
("RevPAR"))
|
(Unaudited)
|
|
|
Three Months Ended
October 31,
|
|
Percentage
Increase
|
|
2021
|
|
2020
(1)
|
|
(Decrease)
|
Lodging net
revenue:
|
|
|
|
|
|
Owned hotel
rooms
|
$
|
21,483
|
|
|
$
|
7,365
|
|
|
191.7
|
%
|
Managed condominium
rooms
|
13,084
|
|
|
9,329
|
|
|
40.3
|
%
|
Dining
|
10,275
|
|
|
1,093
|
|
|
840.1
|
%
|
Golf
|
5,109
|
|
|
3,689
|
|
|
38.5
|
%
|
Other
|
14,269
|
|
|
9,374
|
|
|
52.2
|
%
|
|
64,220
|
|
|
30,850
|
|
|
108.2
|
%
|
Payroll cost
reimbursements
|
1,741
|
|
|
1,203
|
|
|
44.7
|
%
|
Total Lodging net
revenue
|
65,961
|
|
|
32,053
|
|
|
105.8
|
%
|
Lodging operating
expense:
|
|
|
|
|
|
Labor and
labor-related benefits
|
27,649
|
|
|
18,481
|
|
|
49.6
|
%
|
General and
administrative
|
12,497
|
|
|
9,074
|
|
|
37.7
|
%
|
Other
|
21,523
|
|
|
12,915
|
|
|
66.7
|
%
|
|
61,669
|
|
|
40,470
|
|
|
52.4
|
%
|
Reimbursed payroll
costs
|
1,741
|
|
|
1,203
|
|
|
44.7
|
%
|
Total Lodging
operating expense
|
63,410
|
|
|
41,673
|
|
|
52.2
|
%
|
Lodging Reported
EBITDA
|
$
|
2,551
|
|
|
$
|
(9,620)
|
|
|
126.5
|
%
|
|
|
|
|
|
|
Owned hotel
statistics:
|
|
|
|
|
|
ADR
|
$
|
274.51
|
|
|
$
|
204.44
|
|
|
34.3
|
%
|
RevPAR
|
$
|
168.84
|
|
|
$
|
57.33
|
|
|
194.5
|
%
|
Managed condominium
statistics:
|
|
|
|
|
|
ADR
|
$
|
233.02
|
|
|
$
|
232.11
|
|
|
0.4
|
%
|
RevPAR
|
$
|
50.13
|
|
|
$
|
29.32
|
|
|
71.0
|
%
|
Owned hotel and
managed condominium statistics (combined):
|
|
|
|
|
|
ADR
|
$
|
252.62
|
|
|
$
|
224.59
|
|
|
12.5
|
%
|
RevPAR
|
$
|
78.43
|
|
|
$
|
35.00
|
|
|
124.1
|
%
|
|
|
|
|
|
|
(1) On August 1, 2021, the Company
revised its segment reporting to move certain dining and golf
operations from the Lodging segment to the Mountain segment.
Segment results for the three months ended October 31, 2020 have
been retrospectively adjusted to reflect current period
presentation.
|
Key Balance Sheet
Data
|
(In
thousands)
|
(Unaudited)
|
|
|
As of October
31,
|
|
2021
|
|
2020
|
Real estate held for
sale and investment
|
$
|
98,833
|
|
|
$
|
96,668
|
|
Total Vail Resorts,
Inc. stockholders' equity
|
$
|
1,432,471
|
|
|
$
|
1,166,120
|
|
Long-term debt,
net
|
$
|
2,704,583
|
|
|
$
|
2,387,861
|
|
Long-term debt due
within one year
|
114,795
|
|
|
63,707
|
|
Total debt
|
2,819,378
|
|
|
2,451,568
|
|
Less: cash and cash
equivalents
|
1,468,380
|
|
|
462,212
|
|
Net debt
|
$
|
1,350,998
|
|
|
$
|
1,989,356
|
|
Reconciliation of Measures of Segment Profitability and
Non-GAAP Financial Measures
Presented below is a reconciliation of net loss attributable to
Vail Resorts, Inc. to Total Reported EBITDA for the three months
ended October 31, 2021 and 2020.
|
(In thousands)
(Unaudited)
|
|
Three Months Ended
October 31,
|
|
2021
|
|
2020
(2)
|
Net loss attributable
to Vail Resorts, Inc.
|
$
|
(139,332)
|
|
|
$
|
(153,766)
|
|
Net loss attributable
to noncontrolling interests
|
(3,189)
|
|
|
(3,255)
|
|
Net loss
|
(142,521)
|
|
|
(157,021)
|
|
Benefit from income
taxes
|
(59,853)
|
|
|
(37,478)
|
|
Loss before benefit
from income taxes
|
(202,374)
|
|
|
(194,499)
|
|
Depreciation and
amortization
|
61,489
|
|
|
62,628
|
|
(Gain) loss on
disposal of fixed assets and other, net
|
(8,867)
|
|
|
569
|
|
Change in fair value
of contingent consideration
|
2,000
|
|
|
802
|
|
Investment income and
other, net
|
(499)
|
|
|
(343)
|
|
Foreign currency gain
on intercompany loans
|
(831)
|
|
|
(540)
|
|
Interest expense,
net
|
39,545
|
|
|
35,407
|
|
Total Reported
EBITDA
|
$
|
(109,537)
|
|
|
$
|
(95,976)
|
|
|
|
|
|
Mountain Reported
EBITDA
|
$
|
(110,964)
|
|
|
$
|
(85,160)
|
|
Lodging Reported
EBITDA
|
2,551
|
|
|
(9,620)
|
|
Resort Reported EBITDA
(1)
|
(108,413)
|
|
|
(94,780)
|
|
Real Estate Reported
EBITDA
|
(1,124)
|
|
|
(1,196)
|
|
Total Reported
EBITDA
|
$
|
(109,537)
|
|
|
$
|
(95,976)
|
|
|
|
|
|
(1) Resort represents the sum of
Mountain and Lodging
|
(2) On August 1, 2021, the Company
revised its segment reporting to move certain dining and golf
operations from the Lodging segment to the Mountain segment.
Segment results for the three months ended October 31, 2020 have
been retrospectively adjusted to reflect current period
presentation.
|
Presented below is a reconciliation of net loss attributable to
Vail Resorts, Inc. to Total Reported EBITDA calculated in
accordance with GAAP for the twelve months ended October 31,
2021.
|
(In thousands)
(Unaudited)
|
|
Twelve Months
Ended
|
|
10/31/2021
(2)
|
Net income
attributable to Vail Resorts, Inc.
|
$
|
142,284
|
|
Net loss attributable
to noncontrolling interests
|
(3,327)
|
|
Net income
|
138,957
|
|
Benefit from income
taxes
|
(21,649)
|
|
Income before
provision for income taxes
|
117,308
|
|
Depreciation and
amortization
|
251,446
|
|
Gain on disposal of
fixed assets and other, net
|
(4,063)
|
|
Change in fair value
of contingent consideration
|
15,600
|
|
Investment income and
other, net
|
(742)
|
|
Foreign currency gain
on intercompany loans
|
(8,573)
|
|
Interest expense,
net
|
155,537
|
|
Total Reported
EBITDA
|
$
|
526,513
|
|
|
|
Mountain Reported
EBITDA
|
$
|
526,950
|
|
Lodging Reported
EBITDA
|
4,073
|
|
Resort Reported EBITDA
(1)
|
531,023
|
|
Real Estate Reported
EBITDA
|
(4,510)
|
|
Total Reported
EBITDA
|
$
|
526,513
|
|
|
|
(1) Resort represents the sum of
Mountain and Lodging
|
(2) On
August 1, 2021, the Company revised its segment reporting to move
certain dining and golf operations from the Lodging segment to the
Mountain segment. Segment results for the twelve months ended
October 31, 2021 have been retrospectively adjusted to reflect
current period presentation.
|
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 October 31, 2021.
|
(In
thousands)
(Unaudited)
|
|
As of October 31,
2021
|
Long-term debt,
net
|
$
|
2,704,583
|
|
Long-term debt due
within one year
|
114,795
|
|
Total debt
|
2,819,378
|
|
Less: cash and cash
equivalents
|
1,468,380
|
|
Net debt
|
$
|
1,350,998
|
|
Net debt to Total
Reported EBITDA
|
2.6x
|
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three months ended
October 31, 2021 and 2020.
|
(In thousands)
(Unaudited)
|
|
Three Months Ended
October 31,
|
|
2021
|
|
2020
|
Real Estate Reported
EBITDA
|
$
|
(1,124)
|
|
|
$
|
(1,196)
|
|
Non-cash Real Estate
cost of sales
|
227
|
|
|
188
|
|
Non-cash Real Estate
stock-based compensation
|
62
|
|
|
62
|
|
Change in real estate
deposits and recovery of previously incurred project costs/land
basis less investments in real estate
|
437
|
|
|
(2)
|
|
Net Real Estate Cash
Flow
|
$
|
(398)
|
|
|
$
|
(948)
|
|
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SOURCE Vail Resorts, Inc.