Vail Resorts Reports Fiscal 2024 Second Quarter Results, Increases Quarterly Dividend, and Provides Updated Fiscal 2024 Guidance
- Net income for the second fiscal quarter of 2024 was $219.3 million, up from $208.7 million in the same period the previous year.
- Resort Reported EBITDA for Q2 fiscal 2024 was $425.0 million, including $2.1 million of acquisition related expenses, compared to $394.8 million in the prior year.
- Season-to-date total skier visits decreased by 9.7%, but total lift revenue increased by 2.6% through March 3, 2024 compared to the same period in the prior year.
- The Company updated its guidance for fiscal year 2024, expecting net income between $270 million and $325 million and Resort Reported EBITDA between $849 million and $885 million.
- The Board approved an 8% increase in the quarterly cash dividend to $2.22 per share, payable on April 11, 2024.
- Despite challenging conditions at North American resorts, Resort Reported EBITDA in Q2 increased by approximately 8% compared to the prior year, driven by stable season pass results and improved Resort EBITDA Margin.
- Season-to-date total skier visits decreased by 9.7%, impacting visitation levels.
- Retail/rental revenue for North American resort and ski area store locations was down 9.3% compared to the prior year season-to-date period.
- Dining revenue decreased by 4.4% primarily due to decreased revenue from on-mountain dining venues at Eastern U.S. and Tahoe resorts.
- Operating expense decreased by 5.8% due to reduced labor hours and disciplined cost management.
- Lodging segment net revenue decreased by 3.0%, driven by decreased demand and reduced inventory of managed condominium rooms proximate to mountain resorts.
Insights
The reported increase in Vail Resorts' net income and Resort Reported EBITDA despite a decrease in skier visits is indicative of the company's strategic resilience. The growth in net income from $208.7 million to $219.3 million and EBITDA from $394.8 million to $425.0 million, suggests effective cost management and a robust season pass program. The stability of pass revenue, which tends to be less variable than single-day lift ticket sales, provides a financial cushion against external challenges such as unfavorable weather conditions.
Furthermore, the 8% dividend increase signals confidence in the company's financial health and its commitment to shareholder returns. However, investors should consider the juxtaposition of reduced skier visits with increased lift revenue and ancillary services spending, which could imply a shift towards a more premium market segment or higher spending per visitor. The updated guidance for the fiscal year 2024, projecting net income between $270 million and $325 million, should be analyzed in the context of historical performance and industry benchmarks to assess growth potential and sustainability.
The reported decrease in skier visits by 9.7% juxtaposed with an increase in lift revenue by 2.6% suggests a change in consumer behavior. This may reflect a trend where fewer visitors are spending more, possibly due to the increased uptake of premium services such as ski schools, which saw a 5.5% revenue increase. The decline in retail/rental revenue by 9.3% could be attributed to a shift in consumer spending patterns or the impact of operational changes, such as the exit from certain leased store operations.
The strategic focus on season pass sales seems to be paying off, providing revenue stability and potentially attracting a loyal customer base willing to commit upfront. This could be a trend worth monitoring for businesses in the leisure and hospitality sector, as it may indicate the importance of creating loyal customer communities through subscription or pass-based models.
The resilience of Vail Resorts' business model amidst unfavorable conditions is a testament to the inelastic nature of demand within certain segments of the tourism and leisure industry. Even with lower snowfall, the company managed to improve its EBITDA margin by 3.3 points, which is a strong indicator of its ability to control costs and optimize operations in response to external pressures. The increase in net income and EBITDA, along with the dividend hike, may have positive implications for the local economy, potentially signaling continued investment in employment and regional development.
However, the decrease in visitation raises questions about the broader economic impacts on the industry, particularly for businesses reliant on high visitor volumes. It is essential to monitor whether this is a temporary dip due to specific seasonal factors or part of a longer-term trend that could affect the sector's growth trajectory.
Highlights
- Net income attributable to Vail Resorts, Inc. was
$219.3 million $208.7 million - Resort Reported EBITDA was
$425.0 million $2.1 million $394.8 million $0.3 million - Season-to-date total skier visits decreased
9.7% and total lift revenue increased2.6% through March 3, 2024 compared to the fiscal year 2023 season-to-date period through March 5, 2023. Season-to-date ski school revenue was up5.5% and dining revenue was down0.5% compared to the prior year season-to-date period. Retail/rental revenue for North American resort and ski area store locations was down9.3% compared to the prior year season-to-date period. - The Company updated its guidance for fiscal year 2024 and is now expecting net income attributable to Vail Resorts, Inc. to be between
$270 million $325 million $849 million $885 million $4 million - The Company's Board of Directors approved an
8% increase in the quarterly cash dividend to$2.22
Commenting on the Company's fiscal 2024 second quarter results, Kirsten Lynch, Chief Executive Officer, said, "Given the unfavorable conditions across our North American resorts, we are pleased that our results for the quarter demonstrate the resiliency of our strategic business model and our network of resorts and loyal guests. The results for the second quarter were negatively impacted by challenging conditions at all of our North American resorts, with approximately
"Despite the impacts of conditions, Resort Reported EBITDA in the second quarter increased approximately
"While visitation declined, our ancillary businesses performed well, in particular our ski and ride school, dining and rental businesses experienced strong growth in spending per visit compared to the prior year. We are pleased with the strong execution across our mountain resorts, as well as the impact of the Company's investments in our employees, technology, and on-mountain experience."
Season-to-Date Metrics through March 3, 2024 & Interim Results Commentary
The Company reported certain ski season metrics for the comparative periods from the beginning of the ski season through March 3, 2024, and for the prior year period through March 5, 2023. The reported ski season metrics are for the Company's North American destination mountain resorts and regional ski areas, excluding the results of the Australian ski areas and Andermatt-Sedrun in both periods. The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments.
- Season-to-date total skier visits were down
9.7% compared to the prior year season-to-date period. - Season-to-date total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period, was up
2.6% compared to the prior year season-to-date period. - Season-to-date ski school revenue was up
5.5% and dining revenue was down0.5% compared to the prior year season-to-date period. Retail/rental revenue for North American resort and ski area store locations was down9.3% compared to the prior year season-to-date period.
Commenting on the season-to-date metrics, Lynch said, "Across our North American resorts, unfavorable conditions negatively impacted season-to-date visitation, which was below both prior year levels and our expectations based on the number of guests visiting and their frequency. Following the Martin Luther King Jr. holiday weekend, challenging conditions persisted until early March at Whistler Blackcomb and our Tahoe resorts, and while conditions improved at our Rockies and Eastern resorts, visitation did not improve as quickly as expected. We expect a portion of the lower visitation is related to the challenging conditions in the first half of the season as well as a shift in visitation patterns. Despite the decline in season-to-date visitation relative to the prior year period, we are pleased with lift revenue growth driven by the stability created from the season pass program, the strength in ancillary spending per skier visit across our ski school, dining, and rental businesses, and the improving trends as the season progresses."
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 second fiscal quarter ended January 31, 2024, which was filed today with the Securities and Exchange Commission. The following are segment highlights:
Mountain Segment
- Total lift revenue increased
$10.9 million 1.8% , compared to the same period in the prior year, to$603.5 million 8.3% due to an increase in pass product sales for the 2023/2024 North American ski season compared to the prior year. Pass product revenue, although primarily collected prior to the ski season, is recognized in the Consolidated Condensed Statements of Operations throughout the ski season on a straight-line basis using the skiable days of the season to date period relative to the total estimated skiable days of the season. Challenging conditions during the early portion of the 2023/2024 North American ski season resulted in delayed openings for a number of our resorts and, as a result, we expect to recognize approximately$14 million 13.1% , driven by a decrease in skier visitation across all regions, which was impacted by limited natural snow and variable temperatures that resulted in delayed openings and reduced terrain offerings as compared to the prior year, and particularly impacted our resorts in theEastern U.S. and Tahoe, partially offset by an increase in non-pass Effective Ticket Price ("ETP") of10.8% . - Ski school revenue increased
$3.2 million 2.6% , primarily driven by increased revenue at our resorts inColorado andPark City , which benefited from an increase in guest spending per visit. - Dining revenue decreased
$3.8 million 4.4% , primarily due to decreased revenue from on-mountain dining venues at our resorts in theEastern U.S. and Tahoe, partially offset by an increase in guest spending per visit. - Retail/rental revenue decreased
$23.8 million 14.9% , for which retail sales decreased$15.9 million 17.2% , and rental sales decreased$7.9 million 11.6% . The decrease in both retail and rental revenue was primarily driven by a decrease in skier visitation, as well as our exit of certain leased store operations which we operated in the prior year and resulted in a reduction in revenue of approximately$8.4 million - Operating expense decreased
$35.6 million 5.8% , which was primarily attributable to reduced labor hours at our North American resorts as a result of challenging early season weather conditions including limited natural snow and variable temperatures that resulted in delayed openings and reduced terrain offerings which impacted our ability to operate at full capacity, as compared to the prior year, as well as lower variable expenses associated with decreased revenue, and disciplined cost management. - Mountain Reported EBITDA increased
$21.5 million 5.4% , for the second quarter compared to the same period in the prior year, which includes$6.3 million $5.7 million
Lodging Segment
- Lodging segment net revenue (excluding payroll cost reimbursements) for the three months ended January 31, 2024 decreased
$2.3 million 3.0% , driven primarily by a decrease in revenue from managed condominium rooms of$3.0 million 9.7% , as a result of decreased demand, including the impact of decreased skier visitation driven by challenging weather conditions, as well as a reduction in our inventory of available managed condominium rooms proximate to our mountain resorts. - Operating expense (excluding reimbursed payroll costs) decreased
$11.0 million 13.8% , which was primarily attributable to: a reduction in labor hours associated with decreased demand, as well as lower staffing required to support a reduced inventory of managed condominium rooms; a decrease in allocated corporate overhead costs; and the receipt of property tax refunds during the three months ended January 31, 2024. - Lodging Reported EBITDA increased
$8.8 million 216.1% , for the second quarter compared to the same period in the prior year, which includes$0.9 million $1.1 million
Resort - Combination of Mountain and Lodging Segments
- Resort net revenue decreased
$16.2 million 1.5% , compared to the same period in the prior year, to$1,077.8 million - Resort Reported EBITDA was
$425.0 million $30.2 million 7.7% , compared to the same period in the prior year, which includes$2.1 million $0.3 million
Total Performance
- Total net revenue decreased
$23.8 million 2.2% , to$1,078.0 million - Net income attributable to Vail Resorts, Inc. was
$219.3 million $5.76 $208.7 million $5.16 $1.6 million $0.2 million
Return of Capital
Commenting on capital allocation, Lynch said, "Our balance sheet remains strong, including total cash and revolver availability as of January 31, 2024 of approximately
Crans-Montana Acquisition
As previously announced on November 30, 2023, the Company entered into an agreement to acquire a majority stake in Crans-Montana Mountain Resort ("Crans-Montana") in
Capital Investments
Regarding calendar year 2024 capital expenditures, Lynch said, "We remain dedicated to delivering an exceptional guest experience and will continue to prioritize reinvesting in the experience at our resorts, including consistently increasing capacity through lift, terrain, and food and beverage expansion projects, along with investments in technology to further elevate the guest and employee experience at our resorts. As previously announced, we expect our capital plan for calendar year 2024 to be approximately
"At Whistler Blackcomb, the Company plans to replace the four-person high speed Jersey Cream lift with a new six-person high speed lift. This lift is expected to provide a meaningful increase to uphill capacity and better distribute guests at a central part of the resort. At Hunter Mountain, subject to approvals, we plan to replace the four-person fixed-grip Broadway lift with a new six-person high speed lift and plan to relocate the existing Broadway lift to replace the two-person fixed-grip E lift, providing a meaningful increase in uphill capacity and improved access to terrain that is key to the progressive learning experience for our guests. At
"At Park City and Hunter Mountain beyond the planned lift investments we plan to enhance snowmaking systems to improve the experience for key terrain, increase early season terrain consistency, and improve the efficiency through the installation of automated and energy-efficient snowguns. We also plan to further support the Company's Commitment to Zero by investing in waste reduction projects across our resorts to achieve the goal of zero waste to landfill by 2030. At Afton Alps, we plan to install a 10-lane tubing experience and renovate the existing Alpine Building to create a 200 seat restaurant to further enhance the guest experience. At Seven Springs, we plan to add 390 new parking spaces to increase capacity and improve the guest experience. At Perisher, in advance of the 2025 winter season in
"In addition, we are continuing to invest in innovative technology to enhance the guest experience. In the coming year, we are investing in new functionality for the My Epic App, and expanding Mobile Pass and Mobile Lift Tickets to Whistler Blackcomb. Across our resorts, we plan to pilot new technologies at select restaurants to make it both easier and faster for guests to dine at our resorts. In addition, in order to support the launch of My Epic Gear, we plan to invest in logistics and technology infrastructure to help deliver a transformational and elevated gear access experience for our guests.
"The 2023/2024 My Epic Gear pilot at Vail,
"At Andermatt-Sedrun, we are pleased to announce plans to invest approximately
Pass Sales Launch
Commenting on the launch of season pass sales for the 2024/2025 North American ski season, Lynch said, "We are pleased to launch pass sales for the 2024/2025 season with a wide range of advance commitment products including our Epic Day Pass, which provides 1 to 7 days of access at our owned and operated resorts, and our unlimited Epic Pass and regional pass products, which can provide unlimited access to 41 resorts every day of the season and access to additional partner resorts, with no reservations required at any resort except Telluride. Subject to close, Vail Resorts plans to include access to Crans-Montana Mountain Resort on select Epic Pass products for the 2024/2025 ski and ride season. Starting in the 2024/2025 North American ski season, when pass holders are skiing or riding with a guest utilizing Buddy Tickets and Ski with a Friend Tickets, they can now skip the ticket line and go directly to the lift. On average, pass prices have increased
Outlook
Commenting on fiscal 2024 guidance, Lynch said, "Due to the season-to-date underperformance, we are lowering our guidance for fiscal 2024. For the remainder of the season, we are expecting improved performance compared to the season-to-date period, including an expected shift in visitation patterns into March and April. This is based on our significant base of pre-committed guests and guest historical behavior patterns, the improvement in conditions across our western North American and Northeast resorts, and our lodging booking trends for the Spring Break period. While we are lowering guidance for the fiscal year, we know that the financial impact of the weather disruptions was greatly mitigated by our advance commitment products, which create stability for our Company, our shareholders, and our communities in exchange for an incredible value to the guest.
"We now expect net income attributable to Vail Resorts, Inc. for fiscal 2024 to be between
The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2024, for Total Reported EBITDA (after stock-based compensation expense) and reconciles net income attributable to Vail Resorts, Inc. guidance to such Total Reported EBITDA guidance.
Fiscal 2024 Guidance | |||
(In thousands) | |||
For the Year Ending | |||
July 31, 2024 (6) | |||
Low End | High End | ||
Range | Range | ||
Net income attributable to Vail Resorts, Inc. | $ 270,000 | $ 325,000 | |
Net income attributable to noncontrolling interests | 26,000 | 18,000 | |
Net income | 296,000 | 343,000 | |
Provision for income taxes (1) | 105,000 | 122,000 | |
Income before income taxes | 401,000 | 465,000 | |
Depreciation and amortization | 274,000 | 266,000 | |
Interest expense, net | 164,000 | 158,000 | |
Other (2) | 8,000 | — | |
Total Reported EBITDA | $ 847,000 | $ 889,000 | |
Mountain Reported EBITDA (3) | $ 830,000 | $ 864,000 | |
Lodging Reported EBITDA (4) | 18,000 | 22,000 | |
Resort Reported EBITDA (5) | 849,000 | 885,000 | |
Real Estate Reported EBITDA | (2,000) | 4,000 | |
Total Reported EBITDA | $ 847,000 | $ 889,000 | |
(1) The provision for income taxes may be impacted by excess tax benefits primarily resulting from vesting and exercises of equity awards. Our estimated provision for income taxes does not include the impact, if any, of unknown future exercises of employee equity awards, which could have a material impact given that a significant portion of our awards may be in-the-money depending on the current value of the stock price. | |||
(2) Our guidance includes certain forward looking known changes in the fair value of the contingent consideration based solely on the passage of time and resulting impact on present value. Guidance excludes any forward looking change based upon, among other things, financial projections including long-term growth rates for | |||
(3) Mountain Reported EBITDA also includes approximately | |||
(4) Lodging Reported EBITDA also includes approximately | |||
(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 | |||
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) 267-6316 (
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts is a network of the best destination and close-to-home ski resorts in the world including Vail Mountain,
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 2024 performance (including the assumptions related thereto), including our expected Resort Reported EBITDA and expected net income; our expectations regarding our liquidity; our expectations regarding the Crans-Montana acquisition; our expectations related to our season pass sales and products; our expectations regarding our My Epic App and My Epic Gear program; our expectations related to customer demand and lift ticket sales for the remainder of the 2023/2024 North American ski season; our expectations for the 2024/2025 ski season and 2025 winter season; our expectations regarding our ancillary lines of business; the payment of dividends; our calendar year 2024 capital plans and expectations related thereto, including expected capital investments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, the economy generally and our business and results of operations, including the ultimate amount of refunds that we would be required to refund to our pass product holders for qualifying circumstances under our Epic Coverage program; prolonged weakness in general economic conditions, including adverse effects on the overall travel and leisure related industries; risks associated with the effects of high or prolonged inflation, rising interest rates and financial institution disruptions; unfavorable weather conditions or the impact of natural disasters or other unexpected events; the willingness of our guests to travel due to terrorism, the uncertainty of military conflicts or public health emergencies, and the cost and availability of travel options and changing consumer preferences, discretionary spending habits, or willingness to travel; risks related to interruptions or disruptions of our information technology systems, data security, or cyberattacks; risks related to our reliance on information technology, including our failure to maintain the integrity of our customer or employee data and our ability to adapt to technological developments or industry trends; our ability to acquire, develop and implement relevant technology offerings for customers and partners, including effectively implementing our My Epic application; the seasonality of our business combined with adverse events that may occur during our peak operating periods; competition in our mountain and lodging businesses or with other recreational and leisure activities; risks related to the high fixed cost structure of our business; our ability to fund resort capital expenditures; risks related to a disruption in our water supply that would impact our snowmaking capabilities and operations; our reliance on government permits or approvals for our use of public land or to make operational and capital improvements; risks related to federal, state, local and foreign government laws, rules, and regulations, including environmental and health and safety laws and regulations; risks related to changes in security and privacy laws and regulations which could increase our operating costs and adversely affect our ability to market our products, properties, and services effectively; potential failure to adapt to technological developments or industry trends regarding information technology; risks related to our workforce, including increased labor costs, loss of key personnel, and our ability to maintain adequate staffing, including hiring and retaining a sufficient seasonal workforce; a deterioration in the quality or reputation of our brands, including our ability to protect our intellectual property and the risk of accidents at our mountain resorts; risks related to scrutiny and changing expectations regarding our environmental, social and governance practices and reporting; our ability to successfully integrate acquired businesses, or that acquired businesses may fail to perform in accordance with expectations, such as, the Seven Springs Resorts, including their integration into our internal controls and infrastructure; our ability to successfully navigate new markets, including
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
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 January 31, | Six Months Ended January 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net revenue: | |||||||
Mountain and Lodging services and other | $ 905,053 | $ 901,837 | $ 1,087,887 | $ 1,112,223 | |||
Mountain and Lodging retail and dining | 172,745 | 192,182 | 244,187 | 261,130 | |||
Resort net revenue | 1,077,798 | 1,094,019 | 1,332,074 | 1,373,353 | |||
Real Estate | 160 | 7,699 | 4,449 | 7,812 | |||
Total net revenue | 1,077,958 | 1,101,718 | 1,336,523 | 1,381,165 | |||
Segment operating expense: | |||||||
Mountain and Lodging operating expense | 474,170 | 507,216 | 729,746 | 749,502 | |||
Mountain and Lodging retail and dining cost of products sold | 65,289 | 75,431 | 96,584 | 110,516 | |||
General and administrative | 112,714 | 116,616 | 220,739 | 215,415 | |||
Resort operating expense | 652,173 | 699,263 | 1,047,069 | 1,075,433 | |||
Real Estate operating expense | 1,676 | 6,310 | 6,857 | 7,692 | |||
Total segment operating expense | 653,849 | 705,573 | 1,053,926 | 1,083,125 | |||
Other operating (expense) income: | |||||||
Depreciation and amortization | (69,399) | (65,989) | (136,127) | (130,603) | |||
Gain on sale of real property | — | 757 | 6,285 | 757 | |||
Change in estimated fair value of contingent consideration | (3,400) | (1,100) | (6,457) | (1,736) | |||
Loss on disposal of fixed assets and other, net | (758) | (1,780) | (2,801) | (1,786) | |||
Income from operations | 350,552 | 328,033 | 143,497 | 164,672 | |||
Mountain equity investment (loss) income, net | (579) | 42 | 280 | 388 | |||
Investment income and other, net | 4,863 | 7,108 | 8,547 | 9,994 | |||
Foreign currency gain (loss) on intercompany loans | 3,040 | 2,338 | (1,925) | (3,797) | |||
Interest expense, net | (40,585) | (38,370) | (81,315) | (73,672) | |||
Income before provision for income taxes | 317,291 | 299,151 | 69,084 | 97,585 | |||
Provision for income taxes | (87,486) | (79,032) | (22,326) | (21,026) | |||
Net income | 229,805 | 220,119 | 46,758 | 76,559 | |||
Net income attributable to noncontrolling interests | (10,506) | (11,440) | (2,971) | (4,851) | |||
Net income attributable to Vail Resorts, Inc. | $ 219,299 | $ 208,679 | $ 43,787 | $ 71,708 | |||
Per share amounts: | |||||||
Basic net income per share attributable to Vail Resorts, Inc. | $ 5.78 | $ 5.17 | $ 1.15 | $ 1.78 | |||
Diluted net income per share attributable to Vail Resorts, Inc. | $ 5.76 | $ 5.16 | $ 1.15 | $ 1.77 | |||
Cash dividends declared per share | $ 2.06 | $ 1.91 | $ 4.12 | $ 3.82 | |||
Weighted average shares outstanding: | |||||||
Basic | 37,967 | 40,327 | 38,042 | 40,313 | |||
Diluted | 38,046 | 40,434 | 38,133 | 40,408 | |||
Vail Resorts, Inc. Consolidated Condensed Statements of Operations - Other Data (In thousands) (Unaudited) | |||||||
Three Months Ended January 31, | Six Months Ended January 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Other Data: | |||||||
Mountain Reported EBITDA | $ 420,340 | $ 398,851 | $ 280,815 | $ 306,718 | |||
Lodging Reported EBITDA | 4,706 | (4,053) | 4,470 | (8,410) | |||
Resort Reported EBITDA | 425,046 | 394,798 | 285,285 | 298,308 | |||
Real Estate Reported EBITDA | (1,516) | 2,146 | 3,877 | 877 | |||
Total Reported EBITDA | $ 423,530 | $ 396,944 | $ 289,162 | $ 299,185 | |||
Mountain stock-based compensation | $ 6,346 | $ 5,732 | $ 12,194 | $ 11,079 | |||
Lodging stock-based compensation | 932 | 1,060 | 1,828 | 2,010 | |||
Resort stock-based compensation | 7,278 | 6,792 | 14,022 | 13,089 | |||
Real Estate stock-based compensation | 58 | 52 | 110 | 100 | |||
Total stock-based compensation | $ 7,336 | $ 6,844 | $ 14,132 | $ 13,189 | |||
Vail Resorts, Inc. Mountain Segment Operating Results (In thousands, except ETP) (Unaudited) | |||||||||||
Three Months Ended January 31, | Percentage Increase | Six Months Ended January 31, | Percentage Increase | ||||||||
2024 | 2023 | (Decrease) | 2024 | 2023 | (Decrease) | ||||||
Net Mountain revenue: | |||||||||||
Lift | $ 603,459 | $ 592,603 | 1.8 % | $ 648,849 | $ 652,143 | (0.5) % | |||||
Ski school | 126,629 | 123,451 | 2.6 % | 133,807 | 132,378 | 1.1 % | |||||
Dining | 82,060 | 85,828 | (4.4) % | 100,137 | 105,270 | (4.9) % | |||||
Retail/rental | 136,156 | 159,932 | (14.9) % | 169,630 | 200,276 | (15.3) % | |||||
Other | 51,677 | 51,628 | 0.1 % | 120,013 | 125,092 | (4.1) % | |||||
Total Mountain net revenue | 999,981 | 1,013,442 | (1.3) % | 1,172,436 | 1,215,159 | (3.5) % | |||||
Mountain operating expense: | |||||||||||
Labor and labor-related benefits | 252,641 | 277,537 | (9.0) % | 364,690 | 385,582 | (5.4) % | |||||
Retail cost of sales | 41,177 | 48,197 | (14.6) % | 58,998 | 68,938 | (14.4) % | |||||
Resort related fees | 44,568 | 43,550 | 2.3 % | 48,263 | 47,181 | 2.3 % | |||||
General and administrative | 96,353 | 97,365 | (1.0) % | 189,521 | 180,654 | 4.9 % | |||||
Other | 144,323 | 147,984 | (2.5) % | 230,429 | 226,474 | 1.7 % | |||||
Total Mountain operating expense | 579,062 | 614,633 | (5.8) % | 891,901 | 908,829 | (1.9) % | |||||
Mountain equity investment (loss) income, net | (579) | 42 | (1,478.6) % | 280 | 388 | (27.8) % | |||||
Mountain Reported EBITDA | $ 420,340 | $ 398,851 | 5.4 % | $ 280,815 | $ 306,718 | (8.4) % | |||||
Total skier visits | 7,264 | 8,308 | (12.6) % | 7,922 | 9,301 | (14.8) % | |||||
ETP | $ 83.08 | $ 71.33 | 16.5 % | $ 81.90 | $ 70.12 | 16.8 % | |||||
Vail Resorts, Inc. Lodging Operating Results (In thousands, except Average Daily Rate ("ADR") and Revenue per Available Room ("RevPAR")) (Unaudited) | |||||||||||
Three Months Ended January 31, | Percentage Increase | Six Months Ended January 31, | Percentage Increase | ||||||||
2024 | 2023 | (Decrease) | 2024 | 2023 | (Decrease) | ||||||
Lodging net revenue: | |||||||||||
Owned hotel rooms | $ 13,583 | $ 13,479 | 0.8 % | $ 38,760 | $ 37,044 | 4.6 % | |||||
Managed condominium rooms | 28,308 | 31,336 | (9.7) % | 40,311 | 44,195 | (8.8) % | |||||
Dining | 13,609 | 13,184 | 3.2 % | 31,692 | 30,013 | 5.6 % | |||||
Transportation | 6,405 | 5,888 | 8.8 % | 7,910 | 7,348 | 7.6 % | |||||
Golf | — | — | nm | 6,471 | 5,939 | 9.0 % | |||||
Other | 11,417 | 11,700 | (2.4) % | 26,540 | 24,988 | 6.2 % | |||||
73,322 | 75,587 | (3.0) % | 151,684 | 149,527 | 1.4 % | ||||||
Payroll cost reimbursements | 4,495 | 4,990 | (9.9) % | 7,954 | 8,667 | (8.2) % | |||||
Total Lodging net revenue | 77,817 | 80,577 | (3.4) % | 159,638 | 158,194 | 0.9 % | |||||
Lodging operating expense: | |||||||||||
Labor and labor-related benefits | 33,151 | 39,497 | (16.1) % | 70,626 | 76,412 | (7.6) % | |||||
General and administrative | 16,361 | 19,251 | (15.0) % | 31,218 | 34,761 | (10.2) % | |||||
Other | 19,104 | 20,892 | (8.6) % | 45,370 | 46,764 | (3.0) % | |||||
68,616 | 79,640 | (13.8) % | 147,214 | 157,937 | (6.8) % | ||||||
Reimbursed payroll costs | 4,495 | 4,990 | (9.9) % | 7,954 | 8,667 | (8.2) % | |||||
Total Lodging operating expense | 73,111 | 84,630 | (13.6) % | 155,168 | 166,604 | (6.9) % | |||||
Lodging Reported EBITDA | $ 4,706 | $ (4,053) | 216.1 % | $ 4,470 | $ (8,410) | 153.2 % | |||||
Owned hotel statistics: | |||||||||||
ADR | $ 317.51 | $ 337.16 | (5.8) % | $ 308.89 | $ 297.69 | 3.8 % | |||||
RevPAR | $ 140.65 | $ 145.48 | (3.3) % | $ 151.64 | $ 151.19 | 0.3 % | |||||
Managed condominium statistics: | |||||||||||
ADR | $ 522.29 | $ 514.29 | 1.6 % | $ 403.05 | $ 405.00 | (0.5) % | |||||
RevPAR | $ 164.43 | $ 171.81 | (4.3) % | $ 106.98 | $ 112.21 | (4.7) % | |||||
Owned hotel and managed condominium statistics (combined): | |||||||||||
ADR | $ 463.26 | $ 469.72 | (1.4) % | $ 365.67 | $ 365.05 | 0.2 % | |||||
RevPAR | $ 159.13 | $ 166.37 | (4.4) % | $ 118.73 | $ 121.74 | (2.5) % | |||||
Key Balance Sheet Data (In thousands) (Unaudited) | |||
As of January 31, | |||
2024 | 2023 | ||
Total Vail Resorts, Inc. stockholders' equity | $ 829,904 | $ 1,462,578 | |
Long-term debt, net | $ 2,721,598 | $ 2,789,827 | |
Long-term debt due within one year | 69,135 | 69,582 | |
Total debt | 2,790,733 | 2,859,409 | |
Less: cash and cash equivalents | 812,163 | 1,295,252 | |
Net debt | $ 1,978,570 | $ 1,564,157 | |
Reconciliation of Measures of Segment Profitability and Non-GAAP Financial Measures
Presented below is a reconciliation of net income attributable to Vail Resorts, Inc. to Total Reported EBITDA for the three and six months ended January 31, 2024 and 2023.
(In thousands) (Unaudited) | (In thousands) (Unaudited) | ||||||
Three Months Ended January 31, | Six Months Ended January 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income attributable to Vail Resorts, Inc. | $ 219,299 | $ 208,679 | $ 43,787 | $ 71,708 | |||
Net income attributable to noncontrolling interests | 10,506 | 11,440 | 2,971 | 4,851 | |||
Net income | 229,805 | 220,119 | 46,758 | 76,559 | |||
Provision for income taxes | 87,486 | 79,032 | 22,326 | 21,026 | |||
Income before provision for income taxes | 317,291 | 299,151 | 69,084 | 97,585 | |||
Depreciation and amortization | 69,399 | 65,989 | 136,127 | 130,603 | |||
Loss on disposal of fixed assets and other, net | 758 | 1,780 | 2,801 | 1,786 | |||
Change in fair value of contingent consideration | 3,400 | 1,100 | 6,457 | 1,736 | |||
Investment income and other, net | (4,863) | (7,108) | (8,547) | (9,994) | |||
Foreign currency (gain) loss on intercompany loans | (3,040) | (2,338) | 1,925 | 3,797 | |||
Interest expense, net | 40,585 | 38,370 | 81,315 | 73,672 | |||
Total Reported EBITDA | $ 423,530 | $ 396,944 | $ 289,162 | $ 299,185 | |||
Mountain Reported EBITDA | $ 420,340 | $ 398,851 | $ 280,815 | $ 306,718 | |||
Lodging Reported EBITDA | 4,706 | (4,053) | 4,470 | (8,410) | |||
Resort Reported EBITDA* | 425,046 | 394,798 | 285,285 | 298,308 | |||
Real Estate Reported EBITDA | (1,516) | 2,146 | 3,877 | 877 | |||
Total Reported EBITDA | $ 423,530 | $ 396,944 | $ 289,162 | $ 299,185 | |||
* Resort represents the sum of Mountain and Lodging | |||||||
Presented below is a reconciliation of net income attributable to Vail Resorts, Inc. to Total Reported EBITDA calculated in accordance with GAAP for the twelve months ended January 31, 2024.
(In thousands) (Unaudited) | |
Twelve Months Ended | |
January 31, 2024 | |
Net income attributable to Vail Resorts, Inc. | $ 240,227 |
Net income attributable to noncontrolling interests | 15,075 |
Net income | 255,302 |
Provision for income taxes | 89,714 |
Income before provision for income taxes | 345,016 |
Depreciation and amortization | 274,025 |
Loss on disposal of fixed assets and other, net | 10,085 |
Change in fair value of contingent consideration | 54,557 |
Investment income and other, net | (22,297) |
Foreign currency loss on intercompany loans | 1,035 |
Interest expense, net | 160,665 |
Total Reported EBITDA | $ 823,086 |
Mountain Reported EBITDA | $ 796,667 |
Lodging Reported EBITDA | 25,147 |
Resort Reported EBITDA* | 821,814 |
Real Estate Reported EBITDA | 1,272 |
Total Reported EBITDA | $ 823,086 |
* Resort represents the sum of Mountain and Lodging |
The following table reconciles long-term debt, net to Net Debt and the calculation of Net Debt to Total Reported EBITDA for the twelve months ended January 31, 2024.
(In thousands) (Unaudited) | |
As of January 31, 2024 | |
Long-term debt, net | $ 2,721,598 |
Long-term debt due within one year | 69,135 |
Total debt | 2,790,733 |
Less: cash and cash equivalents | 812,163 |
Net debt | $ 1,978,570 |
Net debt to Total Reported EBITDA | 2.4x |
The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three and six months ended January 31, 2024 and 2023.
(In thousands) (Unaudited) | (In thousands) (Unaudited) | ||||||
Three Months Ended January 31, | Six Months Ended January 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Real Estate Reported EBITDA | $ (1,516) | $ 2,146 | $ 3,877 | $ 877 | |||
Non-cash Real Estate cost of sales | — | 5,138 | 3,607 | 5,138 | |||
Non-cash Real Estate stock-based compensation | 58 | 52 | 110 | 100 | |||
Change in real estate deposits and recovery of previously incurred project costs/land basis less investments in real estate | (25) | 150 | 181 | 104 | |||
Net Real Estate Cash Flow | $ (1,483) | $ 7,486 | $ 7,775 | $ 6,219 | |||
The following table reconciles Resort net revenue to Resort EBITDA Margin for the three months ended January 31, 2024 and 2023, and fiscal 2024 guidance.
(In thousands) (Unaudited) | (In thousands) (Unaudited) | (In thousands) (Unaudited) | |
Three Months Ended January 31, 2024 | Three Months Ended January 31, 2023 | Fiscal 2024 Guidance (2) | |
Resort net revenue (1) | $ 1,077,798 | $ 1,094,019 | $ 2,931,000 |
Resort Reported EBITDA (1) | $ 425,046 | $ 394,798 | $ 867,000 |
Resort EBITDA margin (1) | 39.4 % | 36.1 % | 29.6 % |
(1) Resort represents the sum of Mountain and Lodging | |||
(2) Represents the mid-point of Guidance | |||
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SOURCE Vail Resorts, Inc.
FAQ
What was Vail Resorts, Inc.'s net income for the second fiscal quarter of 2024?
How did Resort Reported EBITDA for Q2 fiscal 2024 compare to the prior year?
What were the changes in season-to-date skier visits and total lift revenue through March 3, 2024?
What is the expected range for net income in fiscal year 2024 according to the updated guidance?
How much was the increase in the quarterly cash dividend approved by the Board?
What factors contributed to the increase in Resort Reported EBITDA in Q2 despite challenging conditions?
