Vail Resorts, Inc. (NYSE:MTN) Q3 2021 Earnings Conference Call June 7, 2021 5:00 PM ET Company Participants Rob Katz - CEO Michael Barkin - CFO Conference Call Participants Shaun Kelley - Bank of America Ben Chaiken - Credit Suisse Jeff Stantial - Stifel Brandt Montour - JPMorgan Chris Woronka - Deutsche Bank Patrick Scholes - Truist Securities David Katz - Jefferies Laurent Vasilescu - Exane BNP Paribas Paul Golding - Macquarie Capital Ryan Sundby - William Blair Alex Maroccia - Berenberg Operator Good day ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-09614 Vail Resorts, Inc. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization ...

Financial Data and Key Metrics Changes - For Q2 fiscal 2021, net income attributable to Vail Resorts was $147.8 million, or $3.62 per diluted share, compared to $206.4 million, or $5.04 per diluted share in the prior year [17] - Resort reported EBITDA was $276.1 million, down from $378.3 million in the same period last year, primarily due to COVID-19 impacts [18] - Resort reported EBITDA margin for Q2 was 40.3%, slightly down from 40.9% in the prior year [15] Business Line Data and Key Metrics Changes - Total visitation across North American resorts was down approximately 5% compared to the same period last year, with local visitation up slightly and destination visitation more stable than expected [7][9] - Season pass unit sales grew by 20% for fiscal year 2021, with 71% of visitation coming from season pass-holders compared to 59% in the prior year [12][13] - Ancillary business lines, including ski school and dining, were significantly impacted, with ski school revenues down 43.2% and dining revenue down 56.9% compared to the prior year [24] Market Data and Key Metrics Changes - International visitation decreased significantly due to COVID-19 travel restrictions, with destination guests comprising 53% of U.S. destination mountain resorts skier visits, down from 57% in the prior year [10] - Whistler Blackcomb was disproportionately affected, with destination guests declining to 15% of visits, down from 48% in the prior year [11] Company Strategy and Development Direction - The company plans to maintain a disciplined approach to capital investments, with an increased core capital plan of approximately $115 million to $120 million for 2021 [35] - The focus remains on moving lift ticket purchases into the Pass program and providing value to skiers who purchase in advance [14] - The company is committed to strategic acquisitions and maintaining liquidity, with total cash and revolver availability of approximately $2 billion as of February 28, 2021 [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong cash flow generation and stability of the business model, despite ongoing uncertainty due to COVID-19 [30] - The company expects net income for the 9-month period ending April 30, 2021, to be between $204 million and $247 million, with Resort Reported EBITDA expected between $560 million and $600 million [27] - Management noted that while visitation trends improved, ancillary lines of business continue to be negatively impacted by COVID-19-related capacity constraints [26] Other Important Information - The company raised $575 million of 0% convertible notes in December 2020 to pursue high-impact acquisitions and reinvest in the resort portfolio [30] - A one-time end-of-season bonus totaling approximately $15 million was implemented to thank over 28,000 employees for their dedication during the challenging season [41] Q&A Session All Questions and Answers Question: Can you elaborate on the cost side and any specific reductions? - Management indicated that they prepared for a challenging environment and managed expenses effectively without adding significant costs, which contributed to better-than-expected revenue outcomes [45][46] Question: What insights have you gained about new pass-holders? - Management noted that there are two types of new pass-holders: those previously in the database and truly new customers. The conversion from ticket buyers to pass-holders has been positive, indicating a shift in customer behavior towards season-long engagement [52][56] Question: How do you view pricing in the context of potential pent-up travel demand? - Management emphasized a consistent approach to pricing, focusing on providing value in advanced commitment products rather than driving prices up significantly [61][64] Question: What are the thoughts on the Peak Resorts acquisition? - Management expressed confidence in the contributions from Peak Resorts, noting the opportunity to convert lift ticket buyers into pass-holders and the positive impact on results despite the pandemic [68][69] Question: How do you assess the potential for acquisitions in the current market? - Management remains interested in strategic acquisitions, emphasizing the importance of discipline and the potential for opportunities as the market stabilizes post-pandemic [75][76] Question: How has the pandemic affected labor costs and availability? - Management noted a unique labor environment this year, with challenges in accessing international labor but also an increase in local interest due to closures in other sectors [97][100] Question: How has the early Easter impacted visitation? - Management indicated that an earlier Easter is generally positive for engagement in skiing, although the overall impact remains uncertain due to various factors [102] Question: How has the Epic Mountain Rewards program performed this year? - Management acknowledged engagement with the program but noted that capacity challenges limited its effectiveness in driving business this season [108][110]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29.) Presents Vail Resorts, Inc.'s unaudited consolidated financial statements for the quarter ended January 31, 2021, covering balance sheets, operations, cash flows, and notes [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Total assets reached **$6.17 billion** by January 31, 2021, driven by cash, with liabilities at **$4.48 billion** from debt Consolidated Condensed Balance Sheet Highlights (in thousands) | Metric | Jan 31, 2021 | Jan 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,301,003 | $126,793 | | Total current assets | $1,573,451 | $413,802 | | Total assets | $6,165,833 | $5,113,679 | | **Liabilities & Equity** | | | | Total current liabilities | $982,452 | $918,378 | | Long-term debt, net | $2,768,015 | $1,817,058 | | Total liabilities | $4,479,387 | $3,463,481 | | Total stockholders' equity | $1,686,446 | $1,650,198 | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Total net revenue decreased to **$684.6 million** for the three months ended January 31, 2021, leading to a net income of **$147.8 million** Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Jan 31, 2021 | Three Months Ended Jan 31, 2020 | | :--- | :--- | :--- | | Total net revenue | $684,644 | $924,638 | | Income from operations | $207,716 | $310,733 | | Net income attributable to Vail Resorts, Inc. | $147,798 | $206,370 | | Diluted net income per share | $3.62 | $5.04 | | Cash dividends declared per share | $— | $1.76 | [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$459.1 million**, while financing activities provided **$513.3 million**, significantly increasing cash Cash Flow Summary for Six Months Ended January 31 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $459,069 | $537,689 | | Net cash used in investing activities | $(65,730) | $(445,746) | | Net cash provided by (used in) financing activities | $513,287 | $(69,836) | | Net increase in cash | $909,918 | $22,059 | [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Detailed notes cover accounting policies, COVID-19 revenue impact, financing activities, and the Peak Resorts acquisition - Due to early resort closures from COVID-19 in the 2019/2020 season, the company offered a credit to pass holders, resulting in the deferral of approximately **$120.9 million** of pass product revenue into fiscal 2021[36](index=36&type=chunk) - In December 2020, the company completed a private placement of **$575.0 million** in **0.0% Convertible Senior Notes** due 2026. The liability component was valued at **$465.3 million** at issuance[54](index=54&type=chunk)[60](index=60&type=chunk) - On December 18, 2020, the company amended its **Vail Holdings Credit Agreement** to obtain a waiver from key financial covenants through **January 31, 2022**, providing financial flexibility during the pandemic[51](index=51&type=chunk) - The company acquired Peak Resorts on September 24, 2019, for a total purchase price of approximately **$334.7 million**, which included the repayment of Peak Resorts' debt[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses COVID-19's adverse impact on Q2 FY2021 results, including reduced visitation, operational limits, and a **24%** drop in Mountain EBITDA [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Operating results were significantly impacted by COVID-19, with Mountain Reported EBITDA decreasing **24.0%** to **$283.6 million** and ancillary revenues sharply declining Mountain Segment Performance - Three Months Ended Jan 31, 2021 vs 2020 | Metric | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Mountain net revenue | $641.5M | $845.5M | (24.1)% | | Lift revenue | $430.8M | $484.3M | (11.1)% | | Ski school revenue | $56.4M | $102.7M | (45.1)% | | Dining revenue | $31.8M | $75.7M | (58.0)% | | Mountain Reported EBITDA | $283.6M | $373.0M | (24.0)% | Lodging Segment Performance - Three Months Ended Jan 31, 2021 vs 2020 | Metric | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Lodging net revenue | $42.9M | $78.9M | (45.7)% | | Lodging Reported EBITDA | $(7.5)M | $5.3M | (242.2)% | | Combined RevPAR | $88.98 | $144.56 | (38.4)% | - Interest expense increased by **44.8%** for the quarter and **50.0%** for the six months year-over-year, primarily due to borrowings under the new **6.25% Notes** and non-cash interest from the **0.0% Convertible Notes**[146](index=146&type=chunk)[148](index=148&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Strong liquidity with **$1.3 billion** cash, bolstered by new debt and covenant waivers, with **$135-$140 million** in planned capital expenditures - As of January 31, 2021, the company had **$1.3 billion** of cash and cash equivalents, plus **$418.6 million** available under its Vail Holdings revolver and **C$222.1 million ($173.8 million)** under its Whistler revolver[109](index=109&type=chunk)[159](index=159&type=chunk) - The company secured a 'Financial Covenants Temporary Waiver Period' through **January 31, 2022**, exempting it from leverage and interest coverage ratio tests but limiting dividends and share repurchases to **$38.2 million** per quarter under certain liquidity conditions[163](index=163&type=chunk)[176](index=176&type=chunk) - Planned resort capital expenditures for calendar year 2021 are estimated to be **$115 million** to **$120 million**, with a total capital plan of **$135 million** to **$140 million** including one-time integration and real estate items[161](index=161&type=chunk) - Dividends were suspended in April 2020 and remain so, with payments restricted under the terms of the **Fourth Amendment** to the credit agreement[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are interest rate fluctuations on variable-rate debt, impacting annual interest by **$8.8 million** per 100-basis point change, and foreign currency exchange rates - The company is exposed to interest rate risk on approximately **$0.9 billion** of variable-rate debt. A **100-basis point** change in borrowing rates would change annual interest payments by approximately **$8.8 million**[187](index=187&type=chunk) - The company has foreign currency exchange risk from translating the results of its Canadian (Whistler Blackcomb) and Australian resorts into U.S. dollars, and from an intercompany loan to its Canadian entity[188](index=188&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures are **effective**, with **no material changes** in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period[192](index=192&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[194](index=194&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits, but management expects **no material adverse impact** on its financial position, results, or cash flows - The company is a party to various lawsuits arising in the ordinary course of business but does not expect them to have a **material adverse impact** on its financial position[195](index=195&type=chunk) [Item 1A. Risk Factors](index=48&type=page&id=Item%201A.%20Risk%20Factors) The COVID-19 pandemic remains a **significant risk**, with potential for continued negative impacts on financial condition, operations, and pass product refunds - The COVID-19 outbreak has had, and is expected to continue to have, a **significant negative impact** on the company's financial condition and operations due to travel restrictions, economic disruptions, and operational limits[197](index=197&type=chunk)[198](index=198&type=chunk) - Specific risks include the ability to keep resorts open, attract guests amid public health concerns, manage capacity restrictions, and the potential for significant refunds to pass holders under the **Epic Coverage** program if resorts are forced to close[199](index=199&type=chunk)[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section discloses information about **Exchangeco Shares** issued during the 2016 Whistler Blackcomb acquisition, with **34,612** shares unexchanged as of January 31, 2021 - As of January 31, 2021, **34,612 Exchangeco Shares**, issued during the Whistler Blackcomb acquisition, remained outstanding and exchangeable into Vail Resorts common stock[203](index=203&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the **Indenture** for **0.0% Convertible Senior Notes** and the **Fourth Amendment** to the credit agreement - Key exhibits filed include the **Indenture** for the **0.0% Convertible Notes** and the **Fourth Amendment** to the Eighth Amended and Restated Credit Agreement, both dated December 18, 2020[210](index=210&type=chunk)

Vail Resorts, Inc. (NYSE:MTN) Q1 2021 Earnings Conference Call December 10, 2020 5:00 PM ET Company Participants Rob Katz - Chairman and CEO Michael Barkin - CFO Conference Call Participants Felicia Hendrix - Barclays Shaun Kelley - Bank of America Chris Woronka - Deutsche Bank Patrick Scholes - Truist David Katz - Jefferies Paul Golding - Macquarie Capital Alex Maroccia - Berenberg Ryan Sundby - William Blair Operator Good day and welcome to the Vail Resorts First Quarter 2021 Earnings Call. Today's con ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-09614 Vail Resorts, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 51-0291762 (State or Other Jurisdiction of Incorpo ...

Vail Resorts, Inc. (NYSE:MTN) Q4 2020 Earnings Conference Call September 24, 2020 5:00 PM ET Company Participants Rob Katz - Chairman and CEO Michael Barkin - CFO Conference Call Participants Felicia Hendrix - Barclays Shaun Kelley - Bank of America Chris Woronka - Deutsche Bank David Katz - Jefferies Patrick Scholes - Truist Alex Maroccia - Berenberg Paul Golding - Macquarie Ryan Sundby - William Blair Operator Good day and welcome to the Vail Resort Fourth Quarter Fiscal 2020 Earnings Call. Today???s conf ...

Part I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Vail Resorts operates through Mountain, Lodging, and Real Estate segments, with the Mountain segment being the primary revenue driver significantly impacted by the COVID-19 pandemic in Fiscal 2020 | Segment | Percentage of Net Revenue | | :--- | :--- | | Mountain | ~87% | | Lodging | ~13% | | Real Estate | ~0% | - The COVID-19 pandemic caused the temporary closure of North American resorts and retail operations starting March 15, 2020, leading to an early end to the 2019/2020 ski season, which had a significant adverse impact on Fiscal 2020 results and is expected to continue to negatively affect Fiscal 2021[23](index=23&type=chunk) - As of July 31, 2020, the Mountain segment operates **37 destination mountain resorts** and regional ski areas, including Whistler Blackcomb, the most visited resort in North America[21](index=21&type=chunk)[25](index=25&type=chunk) [Mountain Segment](index=7&type=section&id=Mountain%20Segment) The Mountain segment, operating 37 resorts, generates revenue from various on-mountain activities, with pass products contributing significantly to lift revenue and customer loyalty - The company's North American resorts accounted for approximately **12.4 million skier visits** during the 2019/2020 season, representing about **18.2% of the total North American market share**[39](index=39&type=chunk) - Pass products are a key component of the Mountain segment, generating approximately **51% of total lift revenue** in Fiscal 2020, including the impact of a **$121 million deferral of pass product revenue** into Fiscal 2021 due to credits offered to 2019/2020 pass holders[48](index=48&type=chunk) - In response to COVID-19, the company introduced Epic Coverage for the 2020/2021 season, providing refunds for resort closures and certain personal circumstances, and Epic Mountain Rewards, offering pass holders a **20% discount** on various on-mountain services[52](index=52&type=chunk) [Lodging Segment](index=15&type=section&id=Lodging%20Segment) The Lodging segment manages approximately 6,000 hotel and condominium units, including National Park Service concessionaire properties, competing in luxury and upper upscale markets Fiscal 2020 Owned Hotel Performance vs. Industry | Metric | Vail Resorts Owned Hotels | Upper Upscale Segment | | :--- | :--- | :--- | | ADR | $266.43 | $182.00 | | Occupancy | 45.9% | 53.5% | | RevPAR | $122.34 | $97.30 | - The company operates Grand Teton Lodge Company (GTLC) and Flagg Ranch under concessionaire agreements with the National Park Service, with agreements expiring in **December 2021** and **October 2026**, respectively[59](index=59&type=chunk) [Real Estate Segment](index=17&type=section&id=Real%20Estate%20Segment) The Real Estate segment focuses on planning and selling land parcels to third-party developers, aiming to expand resort amenities with limited financial risk - The segment's principal activities include selling land parcels to third-party developers and planning for future projects, a strategy that aims to expand the resort bed base and enhance amenities with limited financial risk to the company[61](index=61&type=chunk)[62](index=62&type=chunk) [Contracts with Governmental Authorities for Resort Operations](index=19&type=section&id=Contracts%20with%20Governmental%20Authorities%20for%20Resort%20Operations) A substantial portion of resort operations occur on public lands under government permits and leases, requiring fee payments and adherence to environmental regulations - **Eleven U.S. resorts**, including Vail, Breckenridge, and Heavenly, operate on U.S. Forest Service land under Special Use Permits (SUPs) with expiration dates ranging from **2029 to 2058**[77](index=77&type=chunk)[79](index=79&type=chunk) - Whistler Blackcomb's operations are governed by **60-year Master Development Agreements** with the Province of British Columbia, expiring in **2077**[84](index=84&type=chunk) - Australian resorts (Perisher, Falls Creek, Hotham) operate within national parks under long-term leases and licenses with government agencies, with expiration dates extending to **2048 and beyond**[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) [Item 1A. Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, economic conditions, weather, competition, and substantial indebtedness, impacting its financial stability and operations - The COVID-19 outbreak is identified as a primary risk, having already caused significant negative impacts and expected to continue disrupting business through travel restrictions, reduced consumer confidence, and potential future resort closures[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The business is vulnerable to unfavorable weather, natural disasters, and the long-term effects of climate change, which can impact snowfall, increase operational costs, and reduce skier visits[111](index=111&type=chunk)[113](index=113&type=chunk) - The company has a substantial amount of debt (**$2.4 billion as of July 31, 2020**), which could affect its financial condition, limit operational flexibility, and divert cash flow from operations to debt service payments[159](index=159&type=chunk) - As a response to COVID-19's financial impact, the company amended its Vail Holdings Credit Agreement to obtain a temporary waiver from certain financial covenants through **January 2022**, but is subject to restrictions on dividends, share repurchases, and capital expenditures during this period[164](index=164&type=chunk)[166](index=166&type=chunk) [Item 2. Properties](index=38&type=section&id=Item%202.%20Properties) This section details the company's diverse principal properties across the U.S., Canada, and Australia, specifying their location, ownership status, and primary use - The company's properties include a mix of owned real estate and assets operated under long-term leases, Special Use Permits (SUPs) with the U.S. Forest Service, and concessionaire contracts with the National Park Service[173](index=173&type=chunk) - Key ski resort operations like Vail Mountain, Breckenridge, and Heavenly are conducted on land under SUPs, while international resorts like Whistler Blackcomb and Perisher operate under Master Development Agreements (MDAs) or long-term leases with foreign governments[173](index=173&type=chunk)[176](index=176&type=chunk) [Item 3. Legal Proceedings](index=43&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various ordinary course lawsuits, but management anticipates no material adverse financial impact due to adequate insurance and accruals - The company is party to various lawsuits arising from normal business operations but does not anticipate these proceedings will have a material adverse financial impact[180](index=180&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE, with quarterly cash dividends suspended and share repurchases limited due to the COVID-19 pandemic and credit agreement amendments - The quarterly dividend was suspended in April 2020 in response to the COVID-19 pandemic, with the last declared dividend being **$1.76 per share** for the quarter ended April 30, 2020[185](index=185&type=chunk) - As of July 31, 2020, **1,338,859 shares** remained available for repurchase under the company's existing authorization, with no shares repurchased in the fourth quarter of Fiscal 2020[186](index=186&type=chunk)[169](index=169&type=chunk) [Item 6. Selected Financial Data](index=46&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year summary of key financial data, highlighting the significant decline in Fiscal 2020 performance due to the COVID-19 pandemic and the impact of acquisitions Selected Financial Data (Fiscal Years 2018-2020) | (In thousands, except per share data) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Total net revenue | $1,963,704 | $2,271,575 | $2,011,553 | | Net income attributable to Vail Resorts, Inc. | $98,833 | $301,163 | $379,898 | | Diluted net income per share | $2.42 | $7.32 | $9.13 | | Total assets | $5,244,232 | $4,426,077 | $4,064,984 | | Long-term debt, net | $2,450,799 | $1,576,260 | $1,272,732 | - Fiscal 2020 financial results were significantly impacted by one-time adjustments, including the deferral of **$120.9 million in season pass revenue** due to pass holder credits and a **$28.4 million asset impairment** related to the company's transportation business, both stemming from the effects of the COVID-19 pandemic[192](index=192&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant Fiscal 2020 performance decline to the COVID-19 pandemic, impacting EBITDA across segments and prompting liquidity measures including capital expenditure reductions and credit agreement amendments Reported EBITDA Summary (Fiscal Years 2018-2020) | (In thousands) | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Mountain Reported EBITDA | $500,080 | $678,594 | $591,605 | | Lodging Reported EBITDA | $3,269 | $28,100 | $25,006 | | Resort Reported EBITDA | $503,349 | $706,694 | $616,611 | - The early closure of North American resorts due to COVID-19 was the primary driver of poor Fiscal 2020 results, also leading to the deferral of **$120.9 million in pass revenue** to Fiscal 2021 as a result of credits offered to 2019/2020 pass holders[205](index=205&type=chunk)[208](index=208&type=chunk) - To maintain liquidity, the company reduced its calendar 2020 capital plan by approximately **$80-$85 million**, deferring all new chair lifts and terrain expansions[283](index=283&type=chunk) - On May 4, 2020, the company issued **$600.0 million in 6.25% Senior Notes due 2025** to bolster its cash position and pay down its revolving credit facility[219](index=219&type=chunk)[293](index=293&type=chunk) [Results of Operations](index=57&type=section&id=Results%20of%20Operations) Fiscal 2020 results were severely impacted by COVID-19, leading to significant declines in Mountain and Lodging segment EBITDA and revenues, partially offset by new acquisitions Mountain Segment Net Revenue (FY2020 vs FY2019) | (In thousands) | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Lift | $913,091 | $1,033,234 | (11.6)% | | Ski school | $189,131 | $215,060 | (12.1)% | | Dining | $160,763 | $181,837 | (11.6)% | | Retail/rental | $270,299 | $320,267 | (15.6)% | | **Total Mountain net revenue** | **$1,710,443** | **$1,956,201** | **(12.6)%** | - Mountain Reported EBITDA decreased by **$178.5 million (26.3%)** in FY2020 compared to FY2019, primarily due to the impacts of COVID-19 and the deferral of pass revenue[226](index=226&type=chunk) - Lodging Reported EBITDA decreased by **$24.8 million (88.4%)** in FY2020, with significant revenue declines across all categories including owned hotels, managed condominiums, and transportation[245](index=245&type=chunk) - An asset impairment charge of **$28.4 million** was recorded in Fiscal 2020 related to the company's Colorado resort ground transportation company due to the effects of the COVID-19 pandemic[263](index=263&type=chunk)[264](index=264&type=chunk) [Liquidity and Capital Resources](index=68&type=section&id=Liquidity%20and%20Capital%20Resources) The company enhanced liquidity by issuing senior notes, drawing on credit facilities, and amending its credit agreement, while reducing capital expenditures and suspending dividends due to decreased operating cash flow Cash Flow Summary (Fiscal Years 2019-2020) | (In thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $394,950 | $634,231 | | Net cash used in investing activities | ($492,739) | ($596,034) | | Net cash provided by (used in) financing activities | $376,233 | ($99,558) | - As of July 31, 2020, the company had **$391.0 million in cash and cash equivalents**, plus **$418.8 million** available under its Vail Holdings revolver and **C$221.1 million ($165.1 million)** under its Whistler revolver[219](index=219&type=chunk)[282](index=282&type=chunk) - The company amended its Vail Holdings Credit Agreement, providing a waiver from key financial covenants through **January 2022** in exchange for restrictions on capital expenditures, dividends, and share repurchases[289](index=289&type=chunk)[291](index=291&type=chunk) [Critical Accounting Policies](index=76&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies involve significant judgment in goodwill impairment testing, tax contingencies, asset depreciable lives, and business combination valuations, notably the $28.4 million impairment in FY2020 - Goodwill and Intangible Assets: Annual impairment testing requires significant judgment, and due to COVID-19 impacts, the company recorded a **$28.4 million impairment charge** related to its Colorado resort ground transportation company in Fiscal 2020[312](index=312&type=chunk)[315](index=315&type=chunk) - Tax Contingencies: The company maintains a reserve of **$76.5 million** for uncertain tax positions, primarily related to the tax treatment of the Canyons lease obligation and goodwill[319](index=319&type=chunk)[321](index=321&type=chunk) - Business Combinations: Accounting for acquisitions requires significant estimates for valuing acquired assets and liabilities, and the valuation for the recent Peak Resorts acquisition is still preliminary[326](index=326&type=chunk)[327](index=327&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=80&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations on its $0.9 billion variable-rate debt and foreign currency exchange rate risk from Canadian and Australian operations - A **100-basis point change in LIBOR** would impact annual interest payments by approximately **$9.1 million** on the company's **$0.9 billion of net variable-rate debt**[335](index=335&type=chunk) - The company is exposed to foreign currency risk from its operations in Canada and Australia, where fluctuations in the Canadian and Australian dollars relative to the U.S. dollar impact the consolidated financial statements[337](index=337&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=81&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for Fiscal Years 2018-2020, including the independent auditor's report and notes to financial statements - The independent auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting as of July 31, 2020[347](index=347&type=chunk)[348](index=348&type=chunk) - The auditor's report identifies two critical audit matters: the fair value measurement of the Park City contingent consideration and the valuation of acquired property, plant, and equipment from the Peak Resorts acquisition[356](index=356&type=chunk)[357](index=357&type=chunk)[360](index=360&type=chunk) - As of August 1, 2019, the company adopted the new lease accounting standard (ASC 842), resulting in the recognition of **$221.8 million of operating right-of-use assets** and **$254.2 million of related operating lease liabilities** on the balance sheet[198](index=198&type=chunk)[413](index=413&type=chunk) [Item 9A. Controls and Procedures](index=142&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of July 31, 2020, excluding certain controls of the recently acquired Peak Resorts - Management concluded that the company's disclosure controls and procedures were effective as of July 31, 2020[540](index=540&type=chunk)[541](index=541&type=chunk) - The assessment of internal control over financial reporting excluded certain elements of Peak Resorts, which was acquired in September 2019[343](index=343&type=chunk) Part III [Items 10-14](index=143&type=section&id=Items%2010-14) Information for Items 10 through 14, covering corporate governance, executive compensation, and security ownership, is incorporated by reference from the forthcoming 2020 Proxy Statement - Information regarding directors, executive compensation, security ownership, and related party transactions is incorporated by reference from the forthcoming 2020 Proxy Statement[548](index=548&type=chunk)[549](index=549&type=chunk)[550](index=550&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=144&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section provides an index to financial statements and lists all exhibits filed with the Form 10-K, including key corporate documents, material contracts, and certifications - This item lists all exhibits filed with the Form 10-K, including material contracts like credit agreements, government permits for resort operations, and executive compensation plans[551](index=551&type=chunk)[552](index=552&type=chunk)

Vail Resorts, Inc. (NYSE:MTN) Q3 2020 Results Conference Call June 4, 2020 5:00 PM ET Company Participants Rob Katz - Chairman & Chief Executive Officer Michael Barkin - Chief Financial Officer Conference Call Participants Felicia Hendrix - Barclays Shaun Kelley - Bank of America David Katz - Jefferies Patrick Scholes - SunTrust Chris Woronka - Deutsche Bank Alex Maroccia - Berenberg Ryan Sundby - William Blair Marc Torrente - Wells Fargo Securities Operator Good day and welcome to the Vail Resorts Third Qu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission File Number: 001-09614 Vail Resorts, Inc. WASHINGTON, D.C. 20549 (Exact Name of Registrant as Specified in Its Charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Delaware 51-0291762 (State or Other Jurisdiction of Incorpora ...