Vail Resorts Reports Fiscal 2024 Third Quarter Results, Provides Updated Fiscal 2024 Guidance, and Provides Early Season Pass Sales Results

Core Insights - Vail Resorts, Inc. reported a net income of $362 million for Q3 fiscal 2024, an increase from $325 million in the same period last year, reflecting strong operational performance despite challenging conditions [2][4] - The company updated its fiscal 2024 guidance, expecting Resort Reported EBITDA to be between $833 million and $851 million, influenced by the acquisition of Crans-Montana Mountain Resort and lower-than-expected lift ticket visitation [2][14] - Season pass sales for the upcoming 2024/2025 ski season decreased approximately 5% in units but increased about 1% in sales dollars compared to the previous year, indicating a shift in consumer behavior post-COVID [2][13] Financial Performance - Resort net revenue increased by $44.8 million, or 3.6%, to $1,283.1 million for the three months ended April 30, 2024, compared to the same period last year [4][11] - Resort Reported EBITDA for the same period was $654.4 million, up 5.0% from $623.3 million in the prior year [2][4] - Total lift revenue rose by $35.6 million, or 5.0%, to $745.7 million, driven by a 13.7% increase in pass product revenue [11][12] Operational Highlights - The company experienced a 7.7% decline in total skier visits compared to the prior year, attributed to unfavorable weather conditions and broader industry normalization post-COVID [2][14] - Ancillary spending per skier visit increased, with ski school revenue up 11.1% and dining revenue up 7.7%, indicating strong performance in non-lift revenue streams [11][12] - The acquisition of Crans-Montana Mountain Resort is expected to contribute negatively to Resort Reported EBITDA for fiscal 2024, with an anticipated impact of negative $12 million [2][14] Capital Management - The company declared a quarterly cash dividend of $2.22 per share, payable on July 10, 2024, and repurchased approximately 0.3 million shares at an average price of $217, totaling about $75 million [2][12] - Vail Resorts completed a $600 million offering of 6.50% Senior Notes due 2032, using the proceeds to redeem existing debt, thereby extending the maturity of its credit facilities [2][12] - The total capital plan for calendar year 2024 is expected to be approximately $219 million to $224 million, including investments in Crans-Montana and the launch of My Epic Gear [6][12]