Vail Resorts(MTN) - 2024 Q3 - Quarterly Results

Financial & Operational Highlights Vail Resorts reported increased Q3 FY2024 net income and EBITDA, but lowered full-year guidance due to weaker lift ticket sales and Australian resort performance, despite early season pass sales showing a slight dollar increase Q3 FY2024 Key Financial Metrics (vs. Q3 FY2023) | Metric | Q3 FY2024 ($) | Q3 FY2023 ($) | Change | | :--- | :--- | :--- | :--- | | Net Income Attributable to Vail Resorts | $362.0 million | $325.0 million | +11.4% | | Resort Reported EBITDA | $654.4 million | $623.3 million | +5.0% | - Early season pass sales for the 2024/2025 North American ski season decreased approximately 5% in units but increased 1% in sales dollars compared to the prior year period, benefiting from an 8% price increase[2][18] - Total skier visits for the 2023/2024 North American and European ski season declined 7.7% compared to the prior year, primarily driven by a 17% drop in lift ticket guest visitation due to unfavorable weather conditions[4] Updated Fiscal 2024 Guidance | Metric | Updated Guidance Range ($) | Prior Comparable Guidance ($) | | :--- | :--- | :--- | | Net Income Attributable to Vail Resorts | $224 million - $256 million | N/A | | Resort Reported EBITDA (including Crans-Montana) | $825 million - $843 million | N/A | | Resort Reported EBITDA (comparable basis) | $833 million - $851 million | Previously higher | Operating Results The company's Q3 FY2024 operating results showed growth in total net revenue, driven by the Mountain segment, despite a decline in the Lodging segment due to reduced inventory and lower demand Mountain Segment The Mountain segment's Q3 revenue grew 4.5%, driven by a 5.0% increase in total lift revenue, primarily from pass products, with strong growth in ski school and dining, offsetting a decline in retail/rental revenue Mountain Segment Revenue Breakdown (Q3 FY2024 vs Q3 FY2023) | Revenue Source | Q3 FY2024 Revenue ($) | YoY Change | Key Driver | | :--- | :--- | :--- | :--- | | Total Lift Revenue | $745.7 million | +5.0% | +13.7% in pass product revenue | | Ski School Revenue | $161.2 million | +11.1% | Increased guest spending per visit | | Dining Revenue | $109.5 million | +7.7% | Increased guest spending per visit | | Retail/Rental Revenue | $123.3 million | -8.7% | Exit of certain leased stores, lower visitation | Lodging Segment The Lodging segment's net revenue decreased by 6.8% in Q3, primarily due to a 7.9% drop in managed condominium room revenue, resulting from reduced available inventory and decreased demand - Lodging segment net revenue (excluding payroll cost reimbursements) fell by $6.0 million, or 6.8%, year-over-year[12] - The decline was mainly due to a $3.0 million (7.9%) reduction in managed condominium room revenue, attributed to less inventory and decreased demand[12] Total Performance Consolidated total net revenue for Q3 FY2024 increased by 3.6% to $1.28 billion, with net income attributable to Vail Resorts rising to $362.0 million, supported by revenue growth and lower pre-tax expenses Total Company Performance (Q3 FY2024 vs Q3 FY2023) | Metric | Q3 FY2024 ($) | Q3 FY2023 ($) | | :--- | :--- | :--- | | Total Net Revenue | $1,283.3 million | $1,238.4 million | | Resort Reported EBITDA | $654.4 million | $623.3 million | | Net Income Attributable to Vail Resorts | $362.0 million | $325.0 million | | Diluted EPS | $9.54 | $8.18 | Capital Allocation and Strategic Initiatives Vail Resorts maintains a strong balance sheet and continues its capital allocation strategy, including shareholder returns, strategic acquisitions like Crans-Montana, and resort investments, with a calendar year 2024 capital plan of approximately $219 million to $224 million Liquidity, Capital Structure, and Shareholder Returns The company maintained strong liquidity with approximately $1.3 billion in cash and revolver availability, refinanced $600 million in senior notes, repurchased $75 million of stock, and declared a $2.22 per share quarterly dividend - As of April 30, 2024, the company had total cash and revolver availability of approximately $1.3 billion, with Net Debt at 2.4 times trailing twelve months Total Reported EBITDA[14] - Completed a debt refinancing by issuing $600 million of 6.50% Senior Notes due 2032 to redeem 6.25% Senior Notes due 2025, and extended the maturity of its main credit facility to 2029[5][14] Q3 FY2024 Shareholder Returns | Action | Amount ($) | | :--- | :--- | | Share Repurchases | $75.0 million (0.3M shares) | | Quarterly Dividend Declared | $2.22 per share | Crans-Montana Mountain Resort Acquisition Vail Resorts closed its acquisition of an 84% stake in Crans-Montana Mountain Resort for CHF 97.2 million ($106.8 million), planning CHF 30 million in investments and expecting CHF 5 million in first-year EBITDA contribution - Closed the acquisition of an 84% stake in Crans-Montana for CHF 97.2 million ($106.8 million) on May 2, 2024[15] - Plans to invest approximately CHF 30 million in one-time capital spending over the next five years to elevate the guest experience[16] - Anticipates the resort will generate approximately CHF 5 million of Resort Reported EBITDA in its first full year of operations (fiscal year ending July 31, 2025)[16] Capital Investments The company's total capital plan for calendar year 2024 is projected at $219 million to $224 million, including base capital and incremental investments in My Epic Gear, Andermatt-Sedrun, and Crans-Montana - Total capital plan for calendar year 2024 is projected to be approximately $219 million to $224 million[17] - The plan includes $13 million for My Epic Gear expansion, $11 million for growth projects at Andermatt-Sedrun, and $5 million for maintenance and integration at Crans-Montana[17] Business Outlook Vail Resorts provided an updated fiscal 2024 outlook, lowering full-year Resort Reported EBITDA guidance to between $825 million and $843 million, reflecting challenges at Whistler Blackcomb, a softer outlook for Australia, and the financial impact of the Crans-Montana acquisition Season Pass Sales Spring sales for the 2024/2025 North American ski season saw a 5% decrease in units but a 1% increase in sales dollars due to price hikes, while Epic Australia Pass sales are down approximately 22% in units - North American 2024/2025 season pass sales through May 28, 2024, decreased approximately 5% in units and increased approximately 1% in sales dollars year-over-year[18] - The decline in units was primarily driven by a decrease in new pass holders, as lift ticket visitation (the primary source of new pass holders) was down in the prior season[19] - Epic Australia Pass sales for the 2024 season are down approximately 22% in units through May 29, 2024, attributed to poor conditions in the 2023 Australian ski season[20] Updated Fiscal 2024 Guidance The company revised its fiscal 2024 guidance, expecting Resort Reported EBITDA between $825 million and $843 million and net income between $224 million and $256 million, primarily due to lower spring lift ticket sales and a negative contribution from Crans-Montana Fiscal 2024 Full-Year Guidance | Metric | Low End of Range ($) | High End of Range ($) | | :--- | :--- | :--- | | Net Income Attributable to Vail Resorts | $224.0 million | $256.0 million | | Resort Reported EBITDA | $825.0 million | $843.0 million | | Total Reported EBITDA | $825.0 million | $845.0 million | - The guidance reduction is primarily due to lift ticket visitation not returning to historical spring levels at Whistler Blackcomb and lowered expectations for Australian resorts[6] - The newly acquired Crans-Montana resort is expected to contribute a negative $12 million to Resort Reported EBITDA in fiscal 2024, including operating results and acquisition-related expenses[6][21] Financial Statements & Reconciliations This section provides detailed, unaudited financial tables for Q3 and the first nine months of fiscal 2024, including Consolidated Condensed Statements of Operations, segment-level operating results, key balance sheet data, and non-GAAP reconciliations Consolidated Condensed Statements of Operations The statement shows total net revenue of $1.28 billion for the three months ended April 30, 2024, up from $1.24 billion in the prior year, with net income attributable to Vail Resorts, Inc. at $362.0 million Q3 FY2024 vs Q3 FY2023 Statement of Operations (in thousands) | Line Item | Three Months Ended April 30, 2024 (in thousands) | Three Months Ended April 30, 2023 (in thousands) | | :--- | :--- | :--- | | Total net revenue | $1,283,282 | $1,238,431 | | Income from operations | $546,632 | $500,526 | | Net income attributable to Vail Resorts, Inc. | $361,995 | $325,006 | | Diluted net income per share | $9.54 | $8.18 | Segment Operating Results For Q3 FY2024, Mountain Reported EBITDA increased 5.2% to $638.6 million, while Lodging Reported EBITDA decreased 3.7% to $15.8 million, with total skier visits down 3.2% but Effective Ticket Price up 8.5% Q3 FY2024 Segment EBITDA (in thousands) | Segment | Q3 2024 Reported EBITDA (in thousands) | Q3 2023 Reported EBITDA (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Mountain | $638,587 | $606,926 | +5.2% | | Lodging | $15,784 | $16,396 | -3.7% | - Total skier visits for the nine months ended April 30, 2024, decreased by 9.0% to 16.87 million from 18.54 million in the prior year period[37] Key Balance Sheet Data As of April 30, 2024, Vail Resorts had total debt of $2.77 billion and cash and cash equivalents of $705.4 million, resulting in net debt of $2.06 billion, compared to $1.95 billion in the prior year Balance Sheet Data (as of April 30, in thousands) | Metric | 2024 (in thousands) | 2023 (in thousands) | | :--- | :--- | :--- | | Total debt | $2,768,727 | $2,842,717 | | Cash and cash equivalents | $705,429 | $896,089 | | Net debt | $2,063,298 | $1,946,628 |