Vail Resorts(US:MTN)2025-12-10 21:07Financial Performance - For the three months ended October 31, 2025, the net loss attributable to Vail Resorts, Inc. was $186.8 million, compared to a net loss of $173.3 million for the same period in 2024, representing a year-over-year increase in loss of approximately 7.9%[92] - Resort Reported EBITDA for the three months ended October 31, 2025, was $(139.7) million, slightly improved from $(139.7) million in 2024, indicating a stable performance despite seasonal challenges[92] - The Mountain Reported EBITDA for the three months ended October 31, 2025, was $(142.6) million, a 1.0% improvement from $(144.1) million in 2024, attributed to increased visitation and resource efficiency[94] - The Real Estate segment reported EBITDA of $11.5 million for the three months ended October 31, 2025, down from $15.1 million in 2024, reflecting fluctuations in real estate sales timing[92] - The Lodging segment reported EBITDA of $2.9 million for the three months ended October 31, 2025, a decrease from $4.4 million in 2024, highlighting challenges in the lodging operations[92] Revenue and Sales - Mountain segment net revenue increased by 6.9% to $185.2 million for the three months ended October 31, 2025, up from $173.3 million in 2024, driven by a 22.8% increase in lift revenue[94] - Total skier visits for the Mountain segment increased by 34.9% to 739,000 in the three months ended October 31, 2025, compared to 548,000 in the same period in 2024[94] - Ski school revenue increased by $1.0 million or 15.3%, driven by improved visitation at Australian resorts and increased lesson pricing[99] - Other revenue rose by $1.3 million or 1.6%, primarily due to increased summer activities and sightseeing revenue from higher pricing[100] - Lodging segment total net revenue decreased by $1.2 million or 1.4%, with owned hotel rooms revenue increasing by 1.3% while managed condominium rooms revenue decreased by 17.2%[104][106] - Real Estate segment net revenue increased by $17,000 or 27.0%, while Real Estate Reported EBITDA decreased by $3.6 million or 23.9%[109] Operating Expenses and Cash Flow - Operating expenses increased by $9.4 million or 2.9%, mainly due to higher variable expenses linked to increased revenue in Australia[101] - Net cash provided by operating activities increased by $33.2 million to $315.9 million, driven by decreased income tax payments and increased product sales[114] - Cash and cash equivalents as of October 31, 2025, totaled $581.5 million, with an additional $507.7 million available under the Vail Holdings Credit Agreement, ensuring sufficient liquidity for operations[91] - Cash and cash equivalents rose to $581.5 million as of October 31, 2025, compared to $403.8 million in the prior year[117] - The company anticipates continued significant operating cash flows from its Mountain and Lodging segments for at least the next 12 months[117] Debt and Liquidity - Total long-term debt increased from $2.8 billion as of October 31, 2024, to $3.2 billion as of October 31, 2025, with net debt rising from $2.4 billion to $2.6 billion[121] - The company has approximately $1.0 billion of variable-rate debt outstanding, with a 100-basis point change in borrowing rates affecting annual interest payments by approximately $9.5 million[124] - The company expects to meet liquidity needs through existing cash, operating cash flows, and borrowings under credit agreements if necessary[121] - The company amended the Whistler Credit Agreement to extend the maturity date to September 24, 2030, and reduced the total size of the credit facility from C$300.0 million to C$250.0 million[122] - The company was in compliance with all restrictive financial covenants in its debt instruments as of October 31, 2025[129] Shareholder Returns - A cash dividend of $2.22 per share was approved, payable on January 12, 2026, with $79.8 million paid in dividends during the three months ended October 31, 2025[125] - The company repurchased 114,800 shares during the three months ended October 31, 2024, at an average cost of $174.21, totaling approximately $20.0 million[126] - The company has repurchased a total of 11,060,183 shares at a cost of approximately $1,399.4 million since the inception of the share repurchase program[126] Risks and Challenges - The company experienced inflationary pressures and one-time operating expenses of $3.6 million in the Mountain segment for the three months ended October 31, 2025, impacting overall profitability[97] - Risks related to high fixed cost structure and reliance on government permits for operational improvements were highlighted[136] - The company faces risks associated with labor disruptions and increased labor costs impacting operational efficiency[136] - There are risks related to the integration of acquired businesses and their performance in new markets, including Europe[136] - The company is subject to various risks from changes in tax laws and regulations that could adversely affect financial results[136] Foreign Currency Exposure - Foreign currency translation adjustments for the three months ended October 31, 2025, resulted in losses of $8,396 thousand, compared to losses of $3,854 thousand in the same period of 2024[140] - Foreign currency loss on intercompany loans for the three months ended October 31, 2025, was $79 thousand, down from $264 thousand in the same period of 2024[140] - The company is exposed to currency translation risk due to fluctuations in the Canadian dollar, Australian dollar, and Swiss franc compared to the U.S. dollar[138] - The company does not currently enter into hedging arrangements to minimize the impact of foreign currency fluctuations on operations[138]