Core Insights - Vail Resorts reported a 3% year-to-date increase in resort reported EBITDA despite a 3% decline in skier visits, with updated guidance for fiscal 2025 EBITDA set between $831 million and $851 million [1] - The company is implementing a $100 million Resource Efficiency Transformation Plan aimed at achieving annualized cost savings by the end of fiscal 2026, with $35 million expected in fiscal 2025 [2][3] - Season pass sales decreased by 1% in units but increased by 2% in dollar value, reflecting a 7% price increase, while overall visitation declined by 7% [4][5] - Vail Resorts maintains a conservative capital allocation strategy with $1.6 billion in total liquidity and a net leverage ratio of 2.6 times EBITDA, having repurchased $30 million in shares during the quarter [6][7] - Management's updated guidance for fiscal 2025 includes a net income forecast of $264 million to $298 million and emphasizes the importance of advanced commitment in its business model [8]

Core Insights - Vail Resorts, Inc. reported third-quarter fiscal 2025 results with earnings exceeding estimates but revenues falling short, leading to a 1.3% decline in shares post-results [1][3][10] Financial Performance - Earnings per share (EPS) for the quarter was $10.54, surpassing the Zacks Consensus Estimate of $10, and up from $9.54 in the prior year [3][10] - Quarterly net revenues reached $1,295.6 million, missing the consensus estimate of $1,303 million, but reflecting a 1% year-over-year increase [3][10] Segment Analysis - **Mountain Segment**: Generated net revenues of $1.2 billion, a 1.4% increase year-over-year, with dining revenues up 1.4% to $111 million, while retail/rental revenues decreased by 7.8% to $113.7 million [5][6] - **Lodging Segment**: Reported total net revenues of $82.9 million, down 4.8% year-over-year, with EBITDA declining to $12.3 million from $15.8 million in the previous year [6][7] Operating Results - Consolidated EBITDA for the quarter was $654.1 million, slightly up from $653.3 million year-over-year, with operating expenses totaling $650 million compared to $631.1 million in the prior year [8] Balance Sheet - Cash and cash equivalents as of April 30, 2025, were $467 million, down from $705.4 million a year ago [9] - Net long-term debt stood at $2.1 billion, reduced from $2.7 billion as of April 30, 2024 [11] Future Guidance - For fiscal 2025, net income is now estimated between $285 million and $313 million, with total reported EBITDA expected to be between $848 million and $870 million [14]

Core Insights - Vail Resorts reported $1.3 billion in revenue for the quarter ended April 2025, marking a year-over-year increase of 1% and an EPS of $10.54, up from $9.54 a year ago, with a slight revenue surprise of -0.55% against estimates [1] - The company’s stock has returned +10.6% over the past month, outperforming the Zacks S&P 500 composite's +5.2% change, and currently holds a Zacks Rank 3 (Hold) [3] Revenue and Earnings Performance - Total skier visits reached 8.61 thousand, slightly above the estimated 8.6 thousand [4] - Managed condominium RevPAR was reported at $206.66, below the estimated $214.69 [4] - Owned hotel RevPAR was $165.54, compared to the average estimate of $170.86 [4] - Mountain net revenue was $1.21 billion, slightly below the $1.22 billion estimate, but represents a +1.4% year-over-year change [4] - Lodging net revenue was $82.89 million, below the estimated $89.11 million, reflecting a -4.8% change year-over-year [4] - Real estate revenue was $0.12 million, significantly below the $1.05 million estimate, indicating a -32% year-over-year change [4] Additional Metrics - Mountain net revenue from retail/rental was $113.68 million, below the $119.17 million estimate, showing a -7.8% year-over-year change [4] - Dining revenue was reported at $110.97 million, slightly above the $110.73 million estimate, with a +1.4% year-over-year change [4] - Managed condominium rooms revenue was $32.63 million, below the average estimate of $35.12 million, reflecting a -7.8% year-over-year change [4]

Vail Resorts (MTN) came out with quarterly earnings of $10.54 per share, beating the Zacks Consensus Estimate of $10 per share. This compares to earnings of $9.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.40%. A quarter ago, it was expected that this ski resort operator would post earnings of $6.29 per share when it actually produced earnings of $6.56, delivering a surprise of 4.29%.Over the last four quarters, the com ...

Financial Data and Key Metrics Changes - The company's resort net revenue, excluding Cremontana, remained consistent with the prior year despite a 7% decline in visitation [17] - Resort reported EBITDA year to date achieved a 3% growth, driven by a 4% increase in season pass revenue and increased ancillary spend per guest [19] - The updated fiscal guidance for net income attributable to Vail Resorts is projected to be between $264 million and $298 million, with resort reported EBITDA expected to be between $831 million and $851 million [22] Business Line Data and Key Metrics Changes - Ancillary spend per destination guest visit was strong across ski school and dining businesses, although overall revenue in ancillary business was impacted by lower visitation [18] - The company achieved record frontline return rates and strong employee engagement scores across mountain resorts during the winter season [20] Market Data and Key Metrics Changes - North American visitation reflects improved conditions in the second quarter relative to the prior year, offset by a decline in visitation from selling fewer pass units this season [19] - Pass product sales through May 27, 2025, decreased approximately 1% in units but increased approximately 2% in sales dollars compared to the prior year [28] Company Strategy and Development Direction - The company aims to enhance guest and employee experience while driving financial success, focusing on guest engagement and loyalty as top priorities [14][16] - The resource efficiency transformation plan is expected to deliver approximately $100 million in annualized cost efficiencies by the end of fiscal year 2026 [21] - The company remains committed to balancing share repurchases and dividends while prioritizing investments that enhance guest and employee experience [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of macroeconomic volatility on guest behavior and ticket sales, emphasizing the importance of advanced commitment strategies [28][60] - The company is optimistic about maintaining trends in season pass sales, assuming a relatively stable macroeconomic environment [101] Other Important Information - The company declared a quarterly cash dividend of $2.22 per share, payable on July 9, 2025 [24] - The company repurchased approximately 200,000 shares at an average price of approximately $161 per share, totaling $30 million [25] Q&A Session Summary Question: What are the key levers for improving customer experience and revenue growth? - Management highlighted the need to build on existing investments in guest experience and innovate marketing efforts to connect with guests more effectively [35][37] Question: How does the company view the pricing strategy for lift ticket sales? - Management stated that while weather volatility is a factor, the focus remains on advanced commitment products and exploring pricing and product strategy adjustments [39][41] Question: What is the company's approach to labor and seasonal hiring? - Management emphasized the importance of employee experience and the need to support unionized employees while maintaining high retention rates [56][58] Question: How does the company plan to address the decline in lift ticket sales? - Management acknowledged the need for new approaches to drive lift ticket sales, particularly during off-peak periods, while maintaining the value of season passes [47][48] Question: What is the company's strategy regarding European partnerships and acquisitions? - Management expressed a preference for owning and operating resorts but remains open to partnerships that enhance the guest experience [72][74] Question: How does the company plan to innovate in ancillary revenue streams? - Management confirmed that enhancing offerings like Epic Gear and ski school remains a priority, alongside improved marketing strategies [108][110]

Financial Data and Key Metrics Changes - The company reported resort net revenue, excluding Cremontana, remained consistent with the prior year despite a 7% decline in visitation [16] - Resort reported EBITDA year to date achieved a 3% growth, driven by a 4% increase in season pass revenue and increased ancillary spend per guest [17] - The updated fiscal guidance for net income attributable to Vail Resorts is now between $264 million and $298 million, with resort reported EBITDA expected to be between $831 million and $851 million [21] Business Line Data and Key Metrics Changes - Ancillary spend per destination guest visit was strong across ski school and dining businesses, although overall revenue in ancillary business was impacted by lower visitation [16] - The company achieved record frontline return rates and strong employee engagement scores across mountain resorts during the winter season [19] Market Data and Key Metrics Changes - North American visitation reflected improved conditions in the second quarter relative to the prior year, offset by a decline in visitation from selling fewer pass units this season [17] - Pass product sales through May 27, 2025, decreased approximately 1% in units but increased approximately 2% in sales dollars compared to the prior year [27] Company Strategy and Development Direction - The company aims to enhance guest and employee experience while driving financial success, focusing on driving guest engagement and loyalty [12][15] - The resource efficiency transformation plan is expected to deliver approximately $100 million in annualized cost efficiencies by the end of fiscal 2026 [20] - The company remains committed to investments that enhance guest experience and provide high return capital projects [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by weather volatility and emphasized the importance of advanced commitment strategies [12][59] - The macroeconomic environment is seen as a risk, but the company feels confident about maintaining trends in season pass sales assuming stability [100] Other Important Information - The company declared a quarterly cash dividend of $2.22 per share, payable on July 9, 2025 [22] - The company repurchased approximately 200,000 shares at an average price of approximately $161 per share, totaling $30 million [23] Q&A Session Summary Question: What are the key levers for improving customer experience and revenue growth? - Management highlighted the need for consistent guest experiences across all resorts and innovative marketing strategies to connect with guests effectively [34][36] Question: How does the company view its pricing strategy and the mix of lift ticket sales? - Management emphasized the importance of advanced commitment products and indicated opportunities to innovate pricing strategies while maintaining value for season passholders [38][40] Question: What is the company's approach to labor and seasonal workers? - Management acknowledged the importance of employees in delivering guest experiences and emphasized ongoing efforts to support and retain talent [54][56] Question: How does the company plan to address the decline in lift ticket sales? - Management expressed the intention to convert lift ticket buyers to pass products and innovate approaches to drive lift ticket sales, especially during off-peak periods [45][46] Question: What is the company's strategy regarding European partnerships and acquisitions? - Management stated a preference for owning and operating resorts but remains open to partnerships that enhance the guest experience [70][72] Question: How does the company view the impact of tariffs on its business model? - Management noted limited direct exposure to tariffs but acknowledged potential impacts on consumer spending patterns [48][49]

Revenue Performance - For the year-to-date period, Resort net revenue increased by 3%, driven by a 4% increase in pass revenue and increased ancillary spending per guest across ski school and dining businesses [91]. - Resort Reported EBITDA grew by 3% year-to-date despite a 3% decline in total skier visits across North American Resorts [91]. - Total Mountain net revenue for the three months ended April 30, 2025, was $1,212,549,000, up 1.4% from $1,196,058,000 in 2024 [94]. - Lift revenue increased by $24,600,000, or 3.3%, primarily due to a 5.5% increase in pass revenue for the 2024/2025 North American ski season [96]. - Other revenue increased by $16,000,000, or 9.0%, driven by increased early season skier visitation and demand for ancillary services [107]. Skier Visits and Pass Sales - Total skier visits for the nine months ended April 30, 2025, were 16,912,000, a slight increase of 0.3% compared to 16,865,000 in 2024 [102]. - Pass product sales for the upcoming 2025/2026 North American ski season decreased by approximately 1% in units but increased by approximately 2% in sales dollars compared to the prior year [91]. - Lift ticket sales represented approximately 64% and 62% of Mountain segment net revenue for the three months ended April 30, 2025 and 2024, respectively [80]. Financial Position - As of April 30, 2025, the company had $467.0 million in cash and cash equivalents and $508.4 million available under its credit agreement [91]. - Cash provided by operating activities increased to $726.4 million for the nine months ended April 30, 2025, a rise of 6.7% compared to $681.0 million for the same period in 2024 [137]. - Cash and cash equivalents decreased to $467.0 million as of April 30, 2025, down from $705.4 million as of April 30, 2024, primarily due to the acquisition of Crans-Montana [140]. - Long-term debt, net as of April 30, 2025 was $2.7 billion, with principal payments on the majority not due until fiscal year 2029 and beyond [144]. Expenses and EBITDA - Operating expenses for the three months ended April 30, 2025, increased by $19,200,000, or 3.4%, primarily due to incremental expenses from Crans-Montana [99]. - General and administrative expenses increased by 13.4% for the three months ended April 30, 2025, due to higher corporate overhead costs [100]. - Total Reported EBITDA for the nine months ended April 30, 2025 was $987.5 million, up 4.8% from $942.4 million for the same period in 2024 [134]. - Lodging Reported EBITDA decreased by $3.5 million, or 22.1%, primarily due to a net reduction in available managed condominium rooms and decreased demand from lower skier visitation [113]. Real Estate Performance - The Real Estate segment's revenue can fluctuate significantly based on the timing of closings and the type of real estate sold [90]. - Real Estate net revenue for the three months ended April 30, 2025, decreased by 32.0% to $115,000 compared to $169,000 in the same period of 2024 [124]. - Real Estate Reported EBITDA for the three months ended April 30, 2025, increased to $6.351 million from a loss of $1.089 million in the same period of 2024, driven by a gain on sale of real property [124]. - Total Real Estate net revenue for the nine months ended April 30, 2025, decreased by 92.4% to $349,000 compared to $4.618 million in the same period of 2024 [126]. Shareholder Returns - The company paid cash dividends of $6.66 per share ($248.5 million) during the nine months ended April 30, 2025, compared to $6.34 per share ($240.5 million) in the same period of 2024 [149]. - The share repurchase program authorized the repurchase of up to 11,100,000 shares, with 403,883 shares repurchased at an average cost of $173.32 for a total cost of approximately $70.0 million during the nine months ended April 30, 2025 [150]. - The company has repurchased a total of 9,773,563 shares at a cost of approximately $1,199.4 million since the inception of the stock repurchase program [150]. Tax and Capital Expenditures - The effective tax rate for the three months ended April 30, 2025 was 24.0%, down from 25.3% for the same period in 2024, reflecting a decrease in pretax losses at foreign entities [132][133]. - Capital expenditures for calendar year 2025 are expected to be approximately $249 million to $254 million, including $124 million to $128 million for maintenance capital expenditures [143]. Debt and Interest Rate Sensitivity - As of April 30, 2025, the company had approximately $1.0 billion of variable-rate debt outstanding, representing about 36.1% of total debt, with an average interest rate of approximately 6.2% [159]. - A 100-basis point change in borrowing rates would result in annual interest payments changing by approximately $9.8 million [159]. - The company expects to meet all applicable financial maintenance covenants in effect in its credit agreements through the next twelve months [152].

Exhibit 99.1 "Our performance throughout the 2024/2025 North American ski season reflects the strength of our advance commitment strategy, strong destination guest spending, and the impact of our resource efficiency transformation plan. The Company achieved 3% growth in Resort Reported EBITDA year-to-date despite total skier visits declining 3% across our North American destination mountain resorts and regional ski areas from the beginning of the ski season through April 30, 2025. North American visitation ...

Core Insights - Vail Resorts, Inc. reported third quarter fiscal 2025 results, showing resilience in net revenue despite a 7% decline in visitation [1][3] - The company updated its fiscal 2025 guidance, expecting net income between $264 million and $298 million, and Resort Reported EBITDA between $831 million and $851 million [6][11] Financial Performance - Net income attributable to Vail Resorts for the third quarter was $392.8 million, up from $362.0 million in the prior year [6][10] - Resort Reported EBITDA for the third quarter was $647.7 million, a decrease of 1.0% from $654.4 million in the same period last year [6][10] - Total net revenue increased by $12.3 million, or 1.0%, to $1,295.6 million compared to the same period in the prior year [10][11] Season Pass Sales - Season pass sales through May 27, 2025, decreased approximately 1% in units but increased approximately 2% in sales dollars compared to the prior year [23][24] - The decline in units was attributed to new pass holders and lower tenured renewing pass holders, reflecting macro-economic conditions [24][25] - Epic Australia Pass sales increased approximately 20% in units and 8% in sales dollars compared to the prior year [25][26] Operational Highlights - Resort net revenue increased 3% year-to-date, driven by a 4% increase in season pass revenue and strong ancillary spending [4][10] - Ancillary spend per destination guest visit was strong, particularly in ski school and dining, despite lower overall visitation [3][4] - The company achieved 3% growth in Resort Reported EBITDA year-to-date, despite a 3% decline in total skier visits [4][10] Cost Management and Efficiency - The company is on track to achieve $100 million in annualized cost efficiencies by the end of fiscal year 2026, with $35 million expected in fiscal year 2025 [5][6] - One-time costs related to the resource efficiency transformation plan and CEO transition are expected to impact EBITDA by approximately $15 million and $9 million, respectively [11][12] Capital Allocation - The company declared a quarterly cash dividend of $2.22 per share, payable on July 9, 2025, and repurchased approximately 0.2 million shares during the quarter [20][22] - Total liquidity as of April 30, 2025, was approximately $1.6 billion, including $467 million in cash [19][20] Future Outlook - The updated guidance assumes a continuation of the current economic environment and normal weather conditions for the upcoming seasons [12][11] - The company plans to invest approximately $249 million to $254 million in capital expenditures for calendar year 2025, focusing on core capital and growth investments [21][22]

Core Viewpoint - Wall Street analysts anticipate Vail Resorts (MTN) to report quarterly earnings of $10 per share, reflecting a year-over-year increase of 4.8%, with revenues expected to reach $1.3 billion, up 1.5% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.3% in the last 30 days, indicating a reassessment by analysts [1][2] - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock [2] Revenue Estimates - Analysts project 'Net Revenue- Lodging net revenue' to be $89.11 million, a year-over-year increase of 2.4% [4] - 'Net Revenue- Mountain net revenue' is expected to reach $1.22 billion, indicating a change of 1.8% year over year [4] - The estimate for 'Net Revenue- Resort net revenue' stands at $1.30 billion, reflecting a 1.4% increase from the prior year [4] Specific Revenue Components - 'Net Revenue- Lodging net revenue- Owned hotel rooms' is forecasted at $15.49 million, up 3.4% from the previous year [5] - 'Net Revenue- Mountain net revenue- Other' is estimated to be $58.24 million, a 3.3% increase year over year [5] - 'Net Revenue- Mountain net revenue- Lift' is projected at $758.84 million, reflecting a 1.8% increase [6] - 'Net Revenue- Mountain net revenue- Ski school' is expected to be $163.57 million, indicating a 1.4% increase [6] - 'Net Revenue- Mountain net revenue- Dining' is estimated at $110.73 million, a 1.2% increase from the prior year [7] Visitor and Performance Metrics - 'Mountain - Total skier visits' is expected to be 8.6 thousand, down from 8.94 thousand year over year [7] - 'Lodging - Managed condominium statistics - RevPAR' is projected to reach $214.69, slightly down from $215.53 in the same quarter last year [8] - 'Lodging - Owned hotel statistics - RevPAR' is expected to be $170.86, up from $166.25 in the same quarter last year [8] - 'Mountain - ETP' is projected at $88.50, an increase from $83.38 in the same quarter last year [9] Stock Performance - Vail Resorts shares have returned +14% over the past month, outperforming the Zacks S&P 500 composite's +6.1% change [9][10] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [10]