Vail Resorts(US:MTN)2021-09-24 01:53Financial Data and Key Metrics Changes - For fiscal year 2021, net income attributable to Vail Resorts was $127.9 million, or $3.13 per diluted share, compared to $98.8 million, or $2.42 per diluted share in the prior fiscal year [22] - Resort reported EBITDA was $544.7 million for fiscal year 2021, an increase of $41.3 million compared to fiscal year 2020 [22] - The guidance for net income attributable to Vail Resorts for fiscal 2022 is estimated to be between $278 million and $349 million, with resort reported EBITDA expected to be between $785 million and $835 million [24] Business Line Data and Key Metrics Changes - Total skier visitation at US destinations was down only 6% compared to fiscal 2019, while Whistler Blackcomb saw a 51% decline due to COVID-19 impacts [9][10] - Resort reported EBITDA margin for fiscal 2021 was 28.5%, driven by disciplined cost controls and a higher proportion of lift revenue [11] - Season pass sales increased approximately 42% in units and approximately 17% in sales dollars compared to the prior year [15] Market Data and Key Metrics Changes - In Australia, financial results were negatively impacted by approximately $8 million due to COVID-19 related stay-at-home orders and temporary resort closures [12] - The anticipated reduction in international visitation is expected to generate approximately $27 million lower resort reported EBITDA at Whistler Blackcomb compared to fiscal 2019 [26] Company Strategy and Development Direction - The company is focused on enhancing guest experience while maintaining cost discipline, with a capital investment plan for calendar year 2022 aimed at increasing lift capacity and improving guest experience [32][34] - The strategy includes a significant investment in technology enhancements and a commitment to internal leadership development [40][44] - The company plans to return capital spending to typical long-term levels in calendar year 2023 after the increased spending in 2022 [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust demand from guests and the strength of advanced commitment product sales, despite challenges from COVID-19 [24][30] - The company anticipates a net loss attributable to Vail Resorts in the first quarter of fiscal 2022 due to COVID-19 impacts, particularly in Australia [26][27] - Management highlighted the importance of staffing and wage increases to ensure a quality guest experience amid ongoing hiring challenges [75] Other Important Information - The company declared a cash dividend of $0.88 per share, reflecting confidence in free cash flow generation despite ongoing COVID-19 risks [30] - Total cash and revolver availability as of July 31, 2021, was approximately $1.9 billion, with $1.2 billion in cash on hand [29] Q&A Session Summary Question: Thoughts on pass sales trends and ancillary spending outlook - Management noted strong trends in renewals and new pass holders, indicating positive guest engagement, but acknowledged uncertainties due to pull forward dynamics and COVID-19 impacts [49][50] Question: Insights on lift investments and ROI - Management emphasized the importance of lifts in enhancing guest experience and supporting future growth, despite challenges in tracking specific ROI [55][57] Question: Pricing strategy for future years - Management indicated a history of consistent price increases and viewed the recent price reduction as a strategic reset to drive long-term guest value [61][62] Question: Guidance context and normalization of EBITDA - Management confirmed that the guidance accounts for anticipated challenges, particularly in international visitation and group business, and noted that the baseline would be higher without these impacts [91][92] Question: Impact of COVID protocols on consumer spending - Management expressed confidence that full capacity would be maintained at resorts, mitigating potential impacts on consumer spending from COVID protocols [100][101]