Vail Resorts(MTN) - 2024 Q4 - Annual Results

Financial & Operational Highlights This section provides an overview of Vail Resorts' fiscal 2024 financial performance, season pass sales, strategic initiatives, and shareholder returns Fiscal 2024 Full-Year Results Vail Resorts experienced a decline in fiscal 2024 net income and Resort Reported EBITDA, primarily due to unfavorable weather and acquisition-related impacts Fiscal 2024 Full-Year Financial Performance | Financial Metric | Fiscal 2024 (USD) | Fiscal 2023 (USD) | Change | | :--- | :--- | :--- | :--- | | Net Income Attributable to Vail Resorts | $230.4 million | $268.1 million | -14.1% | | Resort Reported EBITDA | $825.1 million | $834.8 million | -1.2% | - The Crans-Montana acquisition had a negative impact of $11.1 million on fiscal 2024 Resort Reported EBITDA, which included $7.9 million in acquisition/integration expenses and a $3.2 million operating loss[3] - Overall performance was affected by a 9.5% decline in skier visitation due to unfavorable conditions in North America and Australia, as well as industry normalization post-COVID[6] Season Pass Sales Update Season pass sales for the 2024/2025 season show a decline in units but an increase in sales dollars, driven by price adjustments Season Pass Sales Performance (as of Sep 20, 2024) | Metric | Change vs. Prior Year | | :--- | :--- | | Pass Product Units Sold | ~ -3% | | Pass Product Sales Dollars | ~ +3% | - The decline in total units was driven by fewer new pass holders, which the company attributes to lower lift ticket visitation in the prior season (due to weather) reducing the pool of potential converts[14] Resource Efficiency Transformation Plan Vail Resorts initiated a two-year transformation plan to enhance efficiency, targeting significant annualized savings by fiscal 2026 - The plan focuses on three pillars: scaled operations, a global shared services model, and expanded workforce management[16] - Expected annualized savings are projected to be $100 million by the end of fiscal 2026[4][16] - In fiscal 2025, the company anticipates realizing approximately $27 million in savings, offset by $15 million in one-time implementation costs[4][16] Shareholder Returns Vail Resorts continues its commitment to shareholder returns through quarterly dividends and significant share repurchases in fiscal 2024 - A quarterly cash dividend of $2.22 per share will be paid on October 24, 2024[6][20] - In fiscal 2024, the company repurchased 0.7 million shares for $150 million, representing 1.9% of shares outstanding at the beginning of the year[6][20] - The Board of Directors increased the share repurchase authorization by 1.1 million shares, bringing the total authorization to approximately 1.7 million shares[6][20] Fiscal 2024 Operating Performance This section details the fiscal 2024 operating results across Vail Resorts' Mountain, Lodging, and combined Resort segments Overall Performance Fiscal 2024 saw nearly flat total net revenue, but net income and diluted EPS declined due to increased taxes, interest, and depreciation Fiscal 2024 Overall Financial Performance | Metric | Fiscal 2024 (USD) | Fiscal 2023 (USD) | | :--- | :--- | :--- | | Total Net Revenue | $2,885.2 million | $2,889.4 million | | Net Income Attributable to Vail Resorts | $230.4 million | $268.1 million | | Diluted EPS | $6.07 | $6.74 | Mountain Segment The Mountain segment experienced mixed results with increased lift revenue offset by lower retail/rental revenue and a decline in skier visits, leading to reduced EBITDA Mountain Segment Revenue Performance | Revenue Category | YoY Change | Key Driver(s) | | :--- | :--- | :--- | | Total Lift Revenue | +1.5% | +9.4% in pass revenue | | Ski School Revenue | +6.0% | Increased guest spending per visit | | Dining Revenue | +1.3% | Increased guest spending per visit | | Retail/Rental Revenue | -12.3% | Lower skier visitation and exit of some stores | - Total skier visits for the year decreased by 9.5% compared to fiscal 2023[38] - Mountain Reported EBITDA decreased by 2.5% to $802.1 million for fiscal 2024, down from $822.6 million in the prior year[9][37] Lodging Segment Despite a slight revenue decrease, the Lodging segment significantly improved its EBITDA due to effective operating expense reductions Lodging Segment Financial Performance | Metric | Fiscal 2024 (USD) | Fiscal 2023 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Lodging Net Revenue (excl. reimbursements) | $319.8 million | $323.1 million | -1.0% | | Lodging Reported EBITDA | $23.0 million | $12.3 million | +87.6% | - The decrease in revenue was driven by a reduction in managed condominium room inventory and lower demand, partially offset by increased revenue at Grand Teton Lodge Company[10] Resort - Combination of Mountain and Lodging Segments Combined Resort net revenue remained flat in fiscal 2024, but Resort Reported EBITDA declined due to challenges, especially in the Australian operations Resort Segment Combined Financial Performance | Metric | Fiscal 2024 (USD) | Fiscal 2023 (USD) | YoY Change | | :--- | :--- | :--- | :--- | | Resort Net Revenue | $2,880.5 million | $2,881.3 million | ~0.0% | | Resort Reported EBITDA | $825.1 million | $834.8 million | -1.2% | - Fourth quarter Resort Reported EBITDA declined from the prior year, primarily due to underperformance in the Australian winter business, where skier visitation fell 18% due to poor snowfall[6] Fiscal 2025 Outlook & Guidance This section outlines Vail Resorts' financial projections for fiscal 2025, including key assumptions and anticipated operational factors FY2025 Financial Guidance Vail Resorts provides fiscal 2025 guidance for net income and Resort Reported EBITDA, incorporating one-time transformation and acquisition costs Fiscal 2025 Financial Guidance | Metric | FY2025 Guidance (Low End, USD) | FY2025 Guidance (High End, USD) | | :--- | :--- | :--- | | Net Income Attributable to Vail Resorts | $224 million | $300 million | | Resort Reported EBITDA | $838 million | $894 million | | Total Reported EBITDA | $827 million | $889 million | - The guidance includes an estimated $15 million in one-time costs for the resource efficiency transformation plan and $1 million in integration expenses for Crans-Montana[17] Key Assumptions & Factors Fiscal 2025 guidance relies on assumptions including normal weather, stable economic conditions, and specific foreign exchange rates, factoring in Australian operational impacts - Assumes a return to normal weather conditions for the 2024/2025 Northern Hemisphere and 2025 Australian ski seasons[18] - A $10 million decline in Resort Reported EBITDA from Australian operations is expected in Q1 FY2025 compared to the prior year[17] - Guidance is predicated on the following exchange rates: USD/CAD at $0.74, USD/AUD at $0.67, and USD/CHF at $1.18[18] Capital Allocation & Investments This section reviews Vail Resorts' liquidity position, capital allocation strategy, and planned investments for calendar years 2024 and 2025 Liquidity and Return of Capital Vail Resorts maintains strong liquidity and a balanced net debt position, prioritizing capital returns to shareholders through dividends and repurchases - Total liquidity was $946 million, comprising $323 million in cash and $623 million in revolver availability[20] - Net Debt to trailing twelve months Total Reported EBITDA ratio was 3.0x[20][43] - Capital allocation priorities are investments in guest/employee experience, high-return projects, strategic acquisitions, and returning capital to shareholders[21] Calendar Year 2024 & 2025 Capital Investments Vail Resorts outlines significant capital investments for calendar years 2024 and 2025, focusing on lift upgrades, technology, and new guest programs - The total capital plan for calendar year 2024 is estimated at $216 million to $221 million[28] - Key 2024 projects include a new six-person lift at Whistler Blackcomb (Jersey Cream) and Hunter Mountain (Broadway), plus snowmaking enhancements[22][23] - The company is launching My Epic Gear for the 2024/2025 season at 12 resorts, supported by a $13 million incremental capital investment in 2024[26][28] - Announced calendar year 2025 projects include replacing the Sunrise lift at Park City with a 10-person gondola and replacing lifts at Perisher in Australia[28] Financial Statements & Reconciliations This section presents the detailed consolidated financial statements and reconciliations of non-GAAP financial measures for Vail Resorts Key Financial Tables Detailed financial statements and non-GAAP reconciliations are provided, highlighting fiscal 2024 total net revenue, net income, and diluted EPS Fiscal Year Consolidated Statement of Operations Highlights (in thousands USD) | Line Item | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Total net revenue | $2,885,191 | $2,889,364 | | Income from operations | $491,429 | $505,097 | | Net income attributable to Vail Resorts, Inc. | $230,405 | $268,148 | | Diluted net income per share | $6.07 | $6.74 | Reported EBITDA Reconciliation (in thousands USD) | Segment | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Mountain Reported EBITDA | $802,072 | $822,570 | | Lodging Reported EBITDA | $23,018 | $12,267 | | Resort Reported EBITDA | $825,090 | $834,837 | | Total Reported EBITDA | $826,565 | $833,109 |