Vail Resorts(US:MTN)2023-12-08 02:15Financial Data and Key Metrics Changes - The company reported a net loss attributable to Vail Resorts of $175.5 million for the first quarter of fiscal 2024, compared to a net loss of $137 million in the prior year [71] - Resort reported EBITDA was a loss of $139.8 million for the first quarter of fiscal 2024, compared to a loss of $96.5 million in the prior year [44] - Pass product sales for the North American ski season increased approximately 4% in units and approximately 11% in sales dollars compared to the prior year [37] Business Line Data and Key Metrics Changes - Pass sales grew across all major product segments, with the strongest growth in regional pass products and Epic Day products [33] - The company achieved growth in pass sales dollars due to an 8% price increase relative to the 2022/2023 season [33] - The growth in pass sales was partially offset by reduced lift ticket sales as the company successfully converted guests from lift tickets to pass products [74] Market Data and Key Metrics Changes - The company expects to have approximately 2.4 million guests committed to its resorts in advance of the season, generating over $900 million of revenue [64] - Lodging booking trends for the upcoming season are generally consistent with prior-year levels, with solid holiday and spring bookings but some softness in between [65] Company Strategy and Development Direction - The company announced an agreement to acquire a majority stake in Crans-Montana Mountain Resort in Switzerland, aligning with its growth strategy to expand its resort network in Europe [47] - The company plans to invest approximately CHF30 million over the next five years to elevate the guest experience at Crans-Montana [76] - The launch of My Epic Gear is expected to transform the gear rental experience, providing a subscription model for guests [125] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming ski season, noting strong pass sales and staffing levels on track to deliver an outstanding guest experience [74] - There is uncertainty around the economic outlook and its potential impact on travel and consumer behavior as the primary operating season approaches [74] - The company remains committed to sustainability goals, aiming for zero waste to landfill and a zero net operating footprint by 2030 [82] Other Important Information - The company declared a quarterly cash dividend of $2.06 per share, payable on January 9, 2024 [45] - The total cash and revolver availability as of October 31, 2023, was approximately $1.4 billion, with $729 million in cash on hand [72] Q&A Session Summary Question: What is the impact of the anticipated $46 million on 1Q EBITDA? - Management clarified that the variance was primarily due to cost inflation, with a $7 million wage investment and a total of $21 million related to cost inflation [88] Question: What is the expected EBITDA from Crans-Montana? - Management expects Crans-Montana to generate approximately CHF5 million of EBITDA in its first fiscal year, with growth potential driven by investments in guest experience and operational efficiencies [89] Question: How does the company view the competitive landscape for passes? - Management acknowledged the presence of competing passes like the Indy Pass but emphasized the strength of their own pass program and the value proposition it offers [138]