BROOMFIELD, Colo., June 5, 2014 /PRNewswire/ -- Vail Resorts, Inc. (NYSE: MTN) today reported results for the third quarter of fiscal 2014 ended April 30, 2014, as well as the Company's results of its spring season pass sales for the 2014/2015 ski season. Additionally, the Company provided its outlook for the full fiscal year ending July 31, 2014.

Highlights


    --  Resort Reported EBITDA increased 18.9% for the third quarter of fiscal
        2014 compared to the same period in the prior year.
    --  Net income attributable to Vail Resorts, Inc. was $117.9 million for the
        third quarter of fiscal 2014, representing a 20.8% increase compared to
        the same period in the prior year.
    --  Total skier visits for the third quarter of fiscal 2014 increased 11.2%
        compared to the same period in the prior year, including the addition of
        Canyons Resort.
    --  Skier visits at our Colorado resorts maintained the strong momentum from
        earlier in the year, growing 5.6% for the third quarter of fiscal 2014
        compared to the same period in the period year. The Tahoe resorts
        experienced a 4.4% decline in skier visitation for the third quarter of
        fiscal 2014 compared to the same period in the prior year, due to
        adverse weather conditions.
    --  The Company revised its fiscal 2014 guidance range upward to reflect
        strong results in Colorado in the third quarter of fiscal 2014. Resort
        Reported EBITDA is now expected to be between $267 million and $273
        million, which includes approximately $10 million of estimated Canyons
        integration and litigation expenses.
    --  During the third quarter of fiscal 2014, the Company closed on three
        units at the Ritz Carlton Residences, Vail, and closed on five units at
        One Ski Hill Place. Net Real Estate Cash Flow for the third quarter was
        $11.3 million and was $20.9 million year-to-date. Subsequent to quarter
        end, three Ritz-Carlton Residences, Vail, units and one One Ski Hill
        Place unit have closed.
    --  Spring season pass sales for the 2014/2015 ski season were up
        approximately 14% in units and approximately 20% in sales dollars
        through May 27, 2014 compared with the prior year period ended May 28,
        2013.

Commenting on the Company's fiscal 2014 third quarter results, Rob Katz, Chief Executive Officer said, "We are very pleased with our performance in the third quarter of fiscal 2014. We saw continued strong performance in Colorado and improved results in Tahoe, leading to an 11.2% increase in total visitation this quarter compared to the prior year. Total lift revenue increased by 17.1%, ski school revenue increased by 16.8% and total Mountain revenue increased by 14.6% compared to the prior year. Our mountain performance includes the results of Canyons, which were in line with our previous public estimates, and the results of our Urban ski areas, whose performance was ahead of our expectations."

"Our results in Colorado were particularly encouraging. Compared to the prior year, total visitation at our Colorado resorts increased 5.6%, ski school revenue increased 11.3% and dining revenue increased 9.5%, despite the unfavorable late timing of Easter in the current year. Our overall results continued to be negatively impacted in the quarter by the poor snowfall and warm weather experienced in Tahoe throughout the season. Late season storms helped mitigate early season declines and brought back more local California visitors with total visitation for the third quarter down only 4.4% compared to the prior year. Throughout the ski season, our Tahoe resorts consistently delivered some of the best conditions in the marketplace."

Regarding Lodging, Katz said, "Our lodging business continues to have a great year. Revenue, excluding payroll cost reimbursements, increased 24.6% compared to the prior year and revenue per available room, or RevPAR, increased 14.5% compared to the prior year. These results were driven by strong performance in our core Colorado markets with increased occupancy and favorable rate increases, along with the addition of the Canyons lodging properties to our portfolio. The Tahoe region does not represent a material component of our lodging business and therefore the challenging conditions in the region did not have a significant impact on lodging results."

Katz continued, "Resort Reported EBITDA was $241.1 million for the quarter, an increase of 18.9% over the prior year. Canyons integration and Park City Mountain Resort ("PCMR") litigation related expenses were $2.4 million in the quarter. We revised guidance upward for Resort Reported EBITDA for fiscal 2014 to $267 million to $273 million reflecting the better than anticipated results in Colorado in the third quarter. This guidance includes approximately $10 million of estimated Canyons integration and PCMR litigation expenses for fiscal 2014."

Regarding Real Estate, Katz said, "Net Real Estate Cash Flow for the third quarter of fiscal 2014 was $11.3 million and was $20.9 million year-to-date. During the quarter, we closed on three Ritz-Carlton Residences, Vail units, and five One Ski Hill Place units. We are continuing to see strong buyer interest at both of our properties and closed on three Ritz-Carlton Residences, Vail units, and one One Ski Hill Place unit subsequent to April 30, 2014."

Katz continued, "Our balance sheet remains very strong. We ended the quarter with $307.4 million of cash on hand, and no borrowings under the revolver of our senior credit facility. Our Net Debt, which includes $310.5 million of capitalized long-term obligations associated with the Canyons transaction, was 1.8 times trailing twelve months Total Reported EBITDA. I am pleased to announce that today we provided notice of a redemption for $175 million of our $390 million in outstanding principal amount of 6.50% Senior Subordinated Notes using available cash on hand. This will reduce our annual cash borrowing cost by approximately $11.4 million (before tax) without an impact to our Net Debt. Additionally, I am also pleased to announce that our Board of Directors has declared a quarterly cash dividend on Vail Resorts' common stock. The quarterly dividend will be $0.4150 per share of common stock and will be payable on July 8, 2014 to shareholders of record on June 23, 2014.

Operating Results

A complete Management's Discussion and Analysis of Financial Condition and Results of Operations can be found in the Company's Form 10-Q for the third fiscal quarter of 2014 ended April 30, 2014 filed today with the Securities and Exchange Commission. The following are segment highlights:

Mountain Segment


    --  Total lift revenue increased $36.8 million, or 17.1%, compared to the
        same period in the prior year, to $251.9 million for the three months
        ended April 30, 2014, driven by an increase in lift revenue excluding
        season pass revenue of $20.9 million, or 14.5%, as well as a $15.9
        million, or 22.3%, increase in season pass revenue. The increase in lift
        revenue excluding season pass revenue was driven by increases at our
        Colorado resorts and incremental revenue from Canyons, partially offset
        by lower lift revenue excluding season pass revenue from our Tahoe
        resorts driven by a decline in visitation excluding season pass holders
        in Tahoe.
    --  Ski school revenue increased by $9.0 million, or 16.8%, and dining
        revenue increased $4.4 million, or 11.7%, for the three months ended
        April 30, 2014 compared to the same period in the prior year.
    --  Retail/rental revenue increased $7.5 million, or 11.2%, for the three
        months ended April 30, 2014 compared to the same period in the prior
        year, due primarily to increases in rental and retail sales in our
        Colorado and Utah regions and incremental revenue generated by
        Hoigaard's (our mid-west retailer acquired in April 2013); partially
        offset by a decrease in on-line sales due to the shutdown of our on-line
        retail platform as we are transitioning to a different approach to
        on-line sales and rental revenue declines at stores proximate to our
        Tahoe resorts as a result of the decline in skier visitation due to the
        poor conditions in the region.
    --  Operating expense increased $25.3 million, or 12.2%, for the three
        months ended April 30, 2014 compared to the three months ended April 30,
        2013, primarily due to incremental expenses from Canyons of $13.0
        million (including current year integration and PCMR litigation related
        expense of $2.4 million, net of prior year Canyons transaction related
        expense of $2.6 million).
    --  Mountain Reported EBITDA increased $33.6 million, or 17.3%, for the
        third quarter of fiscal 2014 compared to the same period in the prior
        year.

Lodging Segment


    --  Lodging segment net revenue excluding payroll cost reimbursements
        increased $12.5 million, or 24.6%, for the three months ended April 30,
        2014, as compared to the same period in the prior year. The revenue
        increase includes $6.7 million from the addition of Canyons.
    --  For the three months ended April 30, 2014, average daily rate ("ADR")
        increased 0.8% and RevPAR increased 14.5% at the Company's owned hotels
        and managed condominiums compared to the same period in the prior year.
    --  Lodging Reported EBITDA increased 56.3% as compared to the same period
        in the prior year, to $13.1 million for the third quarter of fiscal
        2014.

Resort - Combination of Mountain and Lodging Segments


    --  Resort net revenue was $526.9 million for the third quarter of fiscal
        2014, up 15.6% from the same period in the prior year.
    --  Resort Reported EBITDA was $241.1 million for the third quarter of
        fiscal 2014, up 18.9% from the same period in the prior year.

Real Estate Segment


    --  Real Estate segment net revenue increased $2.3 million, or 16.8%, as
        compared to the same period in the prior year, to $16.2 million for the
        three months ended April 30, 2014.
    --  Net Real Estate Cash Flow was $11.3 million for the three months ended
        April 30, 2014, up $5.3 million from the same period in the prior year.
    --  Real Estate Reported EBITDA improved by $0.9 million, or 27.8%, as
        compared to the same period in the prior year, to a loss of $2.3 million
        for the three months ended April 30, 2014.

Total Performance


    --  Total net revenue increased $73.4 million, or 15.6%, as compared to the
        same period in the prior year, to $543.0 million for the three months
        ended April 30, 2014.
    --  Net income attributable to Vail Resorts, Inc. was $117.9 million, or
        $3.18 per diluted share, for the third quarter of fiscal 2014, compared
        to net income attributable to Vail Resorts, Inc. of $97.6 million, or
        $2.66 per diluted share, in the third fiscal quarter of the prior year.

Spring Pass Sales

Commenting on the Company's spring season pass sales for the upcoming 2014/2015 ski season, Katz said, "We are extremely pleased that our spring season pass sales through May 27, 2014 for the upcoming 2014/2015 ski season, increased approximately 14% in units and approximately 20% in sales dollars, as compared to the prior year period through May 28, 2013. These strong season pass results followed record sales last spring and are driven by our successful marketing efforts, the compelling value of our products and our ability to drive the purchase decision earlier in the year. The results include very good momentum in Colorado, which was partially offset by softer results in Tahoe. Most importantly, we saw very strong growth from our destination markets, which represented more than half of our total growth for the spring selling period and remains the largest area of untapped potential for our season pass program. We saw continuing success expanding the pass holder base in our Urban ski area markets in Minneapolis and Detroit, with both metropolitan areas growing faster than any of our other major destination markets."

Katz continued, "Our effort to drive spring pass sales continues to accelerate the timing of when our guests purchase their passes for skiing and riding. As always, it is important to note that we do not believe that the growth rates from this spring will be maintained through the fall, as our spring growth includes pass holders who purchased last fall. However, we believe the earlier we can move our guest's purchase decision in the year, the more opportunity it provides us for stable and consistent growth. It is also important to remember that nearly all of the 2014 spring pass sales will be recorded as revenue in fiscal 2015, over the course of the 2014/2015 ski season."

Updated Guidance


    --  We now estimate Resort Reported EBITDA for fiscal 2014 will be $267
        million to $273 million, representing an approximate 11% to 13% increase
        over fiscal 2013.
    --  Included in our estimates for fiscal 2014 Resort Reported EBITDA is
        approximately $10 million of integration and litigation related
        expenses, including approximately $9 million in fees associated with the
        PCMR litigation.
    --  We expect Resort EBITDA Margin (defined as Resort Reported EBITDA
        divided by Resort net revenue) to be approximately 22.4% in fiscal 2014
        at the midpoint of the revised guidance range.
    --  We have narrowed our estimate of fiscal 2014 Real Estate Reported EBITDA
        to negative $7 million to negative $9 million.
    --  We have increased our Net Real Estate Cash Flow guidance to $27 million
        to $32 million (defined as Real Estate Reported EBITDA, plus non-cash
        real estate cost of sales, plus non-cash stock-based compensation
        expense, plus change in real estate deposits and recovery of previously
        incurred project costs less investment in real estate).
    --  Net income attributable to Vail Resorts, Inc. is now expected to be in a
        range of $26 million to $33.5 million in fiscal 2014 after the loss on
        extinguishment of debt.

The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2014, for Reported EBITDA (after stock-based compensation expense) and reconciles such Reported EBITDA guidance to net income attributable to Vail Resorts, Inc. guidance for fiscal 2014.



                                             Fiscal 2014
                                               Guidance

                                           (In thousands)

                                        For the Year Ending

                                            July 31, 2014
                                            -------------

                                      Low End              High End

                                       Range               Range
                                       -----               -----

    Mountain Reported EBITDA (1)                 $251,000           $256,000

    Lodging Reported EBITDA (2)                    15,000             18,000
    --------------------------                     ------             ------

    Resort Reported EBITDA (3)                    267,000            273,000

    Real Estate Reported EBITDA  (4)               (9,000)            (7,000)
    --------------------------------               ------             ------

    Total Reported EBITDA                         258,000            266,000

    Depreciation and amortization                (141,000)          (139,000)

    Loss on disposal of fixed
     assets, net                                   (1,000)              (500)

    Investment income, net                            300                400

    Interest expense                              (65,000)           (64,000)

    Loss on extinguishment of debt                (10,800)           (10,800)
    ------------------------------                -------            -------

    Income before provision for
     income taxes                                  40,500             52,100

    Provision for income taxes                    (14,700)           (19,000)
    --------------------------                    -------            -------

    Net income                                     25,800             33,100
    ==========                                     ======             ======

    Net loss attributable to
     noncontrolling interests                         200                400
    -------------------------                         ---                ---

    Net income attributable to Vail
     Resorts, Inc.                                $26,000            $33,500
    ===============================               =======            =======



    (1) Mountain Reported EBITDA
     includes approximately $10
     million of stock-based
     compensation.

    (2) Lodging Reported EBITDA
     includes approximately $2
     million of stock-based
     compensation.

    (3) The Company provides
     Reported EBITDA ranges for
     the Mountain and Lodging
     segments, as well as for the
     two combined. The low and
     high end of the expected
     ranges provided for the
     Lodging and Mountain
     segments, while possible, do
     not sum to the low or high
     end of the Resort Reported
     EBITDA range provided because
     we do not expect or assume
     that we will hit the low or
     high end of both ranges.

    (4) Real Estate Reported
     EBITDA includes approximately
     $2 million of stock-based
     compensation.

Partial Bond Redemption

The Company announced today that it has provided a notice to the trustee to redeem $175 million of its $390 million in outstanding principal amount of 6.50% Senior Subordinated Notes on July 7, 2014, the redemption date, using available cash on hand. The Company will pay a 4.875% call premium and expects to record a loss on extinguishment of debt in its fourth quarter fiscal 2014 of approximately $10.8 million including a write-off of unamortized debt issuance costs. This will save approximately $11.4 million in annual interest expense. After the partial redemption, $215 million of the 6.50% Senior Subordinated Notes will remain outstanding.

Earnings Conference Call

The Company will conduct a conference call today at 4:30 p.m. eastern time to discuss the financial results. The call will be webcast and can be accessed at www.vailresorts.com in the Investor Relations section, or dial (877) 723-9517 (U.S. and Canada) or (719) 325-4903 (international). A replay of the conference call will be available two hours following the conclusion of the conference call through June 19, 2014, at 7:30 p.m. eastern time. To access the replay, dial (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (international), pass code 7201123. The conference call will also be archived at www.vailresorts.com.

About Vail Resorts, Inc. (NYSE: MTN)

Vail Resorts, Inc., through its subsidiaries, is the leading mountain resort operator in the United States. The Company's subsidiaries operate the mountain resorts of Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Canyons in Park City, Utah; Afton Alps in Minnesota and Mt. Brighton in Michigan; and the Grand Teton Lodge Company in Jackson Hole, Wyoming. The Company's subsidiary, RockResorts, a luxury resort hotel company, manages casually elegant properties. Vail Resorts Development Company is the real estate planning, development and construction subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE: MTN). The Vail Resorts company website is www.vailresorts.com and consumer website is www.snow.com.

Forward-Looking Statements

Statements in this press release, other than statements of historical information, are forward looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include but are not limited to prolonged weakness in general economic conditions, including adverse effects on the overall travel and leisure related industries; unfavorable weather conditions or natural disasters; adverse events that occur during our peak operating periods combined with the seasonality of our business; competition in our mountain and lodging businesses; our ability to grow our resort and real estate operations; our ability to successfully initiate, complete, and sell real estate development projects and achieve the anticipated financial benefits from such projects; further adverse changes in real estate markets; continued volatility in credit markets; our ability to obtain financing on terms acceptable to us to finance our capital expenditures, growth strategy and future real estate development; our reliance on government permits or approvals for our use of Federal land or to make operational and capital improvements; demand for planned summer activities and our ability to successfully obtain necessary approvals and construct the planned improvements; adverse consequences of current or future legal claims; our ability to hire and retain a sufficient seasonal workforce; willingness of our guests to travel due to terrorism, the uncertainty of military conflicts or outbreaks of contagious diseases, and the cost and availability of travel options; negative publicity which diminishes the value of our brands; our ability to integrate and successfully realize anticipated benefits from the lease of Canyons operations or future acquisitions; the ultimate outcome of litigation regarding the ski terrain of Park City Mountain Resort; adverse consequences on lease payment obligations for Canyons due to increases in consumer price index, or CPI; our ability to realize the anticipated tax benefits from Canyons transaction; implications arising from new Financial Accounting Standards Board ("FASB")/governmental legislation, rulings or interpretations; and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2013.

All forward-looking statements attributable to us or any persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All guidance and forward-looking statements in this press release are made as of the date hereof and we do not undertake any obligation to update any forecast or forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by law.

Statement Concerning Non-GAAP Financial Measures

When reporting financial results, we use the terms Reported EBITDA, Resort EBITDA Margin, Net Debt, Net Real Estate Cash Flow, Lodging net revenue excluding payroll cost reimbursement, and Lodging operating expense excluding reimbursed payroll costs, which are not financial measures under accounting principles generally accepted in the United States of America ("GAAP"). We define Reported EBITDA as segment net revenue less segment operating expense plus or minus segment equity investment income or loss and for the Real Estate segment plus gain on sale of real property. For Resort, we define Resort EBITDA Margin as Resort Reported EBITDA divided by Resort net revenue. We define Net Debt as long-term debt plus long-term debt due within one year less cash and cash equivalents. For the Real Estate segment, we define Net Real Estate Cash Flow as Real Estate Reported EBITDA, plus non-cash real estate cost of sales, plus non-cash stock-based compensation expense, plus change in real estate deposits and recovery of previously incurred project costs less investment in real estate. For the Lodging segment we primarily focus on Lodging net revenue excluding payroll cost reimbursement and Lodging operating expense excluding reimbursed payroll costs as the reimbursements are made based upon the costs incurred with no added margin, as such the revenue and corresponding expense have no effect on our Lodging Reported EBITDA which we use to evaluate Lodging segment performance. Please see "Reconciliation of Non-GAAP Financial Measures" below for more information.




                                      Vail Resorts, Inc.

                        Consolidated Condensed Statements of Operations

                           (In thousands, except per share amounts)

                                          (Unaudited)


                                          Three Months
                                              Ended                       Nine Months Ended

                                           April 30,                          April 30,

                                        2014              2013              2014              2013
                                        ----              ----              ----              ----

    Net revenue:

    Mountain                                   $460,587          $402,017          $909,574          $815,670

    Lodging                           66,293             53,834             179,694            152,885

    Real estate                       16,167             13,840             29,890            39,937
    -----------                       ------             ------             ------            ------

    Total net
     revenue                         543,047             469,691             1,119,158            1,008,492

    Segment operating
     expense:

    Mountain                         233,301             207,953             601,587            536,498

    Lodging                           53,182             45,446             163,346            142,055

    Real estate                       18,445             16,996             35,682            49,349
    -----------                       ------             ------             ------            ------

    Total segment
     operating
     expense                         304,928             270,395             800,615            727,902

    Other operating
     expense:

    Depreciation
     and
     amortization                   (35,588)             (33,730)              (105,948)           (98,827)

    Gain (loss) on
     disposal of
     fixed assets,
     net                                 634             (224)             (839)             (757)
    --------------                       ---              ----              ----              ----

    Income from
     operations                      203,165             165,342             211,756            181,006

    Mountain equity
     investment
     income, net                         665               266             1,282               799

    Investment
     income, net                         124               153               289               306

    Interest
     expense                        (16,408)             (8,359)             (48,745)            (25,268)
    --------                         -------             ------             -------            -------

    Income before
     provision for
     income taxes                    187,546             157,402             164,582            156,843

    Provision for
     income taxes                   (69,680)             (59,814)             (60,953)            (59,329)
    -------------                    -------             -------             -------            -------

    Net income                                 $117,866           $97,588          $103,629           $97,514

    Net loss
     attributable
     to
     noncontrolling
     interests                            80                52               204                97
    ===============                      ===               ===               ===               ===

    Net income
     attributable
     to Vail
     Resorts, Inc.                             $117,946           $97,640          $103,833           $97,611
    ==============                             ========           =======          ========           =======

    Per share amounts:

    Basic net
     income per
     share
     attributable
     to Vail
     Resorts, Inc.                                $3.26             $2.72             $2.88             $2.72
    ==============                                =====             =====             =====             =====

    Diluted net
     income per
     share
     attributable
     to Vail
     Resorts, Inc.                                $3.18             $2.66             $2.80             $2.66
    ==============                                =====             =====             =====             =====

    Cash dividends
     declared per
     share                                      $0.4150           $0.2075             $0.83           $0.5825
    ==============                              =======           =======             =====           =======

    Weighted average shares
     outstanding:

    Basic                             36,159             35,911             36,105            35,835
    =====                             ======             ======             ======            ======

    Diluted                           37,054             36,774             37,025            36,681
    =======                           ======             ======             ======            ======

    Other Data:

    Mountain
     Reported
     EBITDA                                    $227,951          $194,330          $309,269          $279,971

    Lodging
     Reported
     EBITDA                                     $13,111            $8,388           $16,348           $10,830
    ---------                                   -------            ------           -------           -------

    Resort Reported
     EBITDA                                    $241,062          $202,718          $325,617          $290,801

    Real Estate
     Reported
     EBITDA                                     $(2,278)          $(3,156)          $(5,792)          $(9,412)

    Total Reported
     EBITDA                                    $238,784          $199,562          $319,825          $281,389
    ==============                             ========          ========          ========          ========

    Mountain stock-
     based
     compensation                                $2,475            $2,073            $7,657            $7,008

    Lodging stock-
     based
     compensation                                  $587              $494            $1,599            $1,436
    --------------                                 ----              ----            ------            ------

    Resort stock-
     based
     compensation                                $3,062            $2,567            $9,256            $8,444

    Real Estate
     stock-based
     compensation                                  $423              $346            $1,283            $1,100

    Total stock-
     based
     compensation                                $3,485            $2,913           $10,539            $9,544
    =============                                ======            ======           =======            ======


                                                     Vail Resorts, Inc.

                                             Mountain Segment Operating Results

                                   (In thousands, except effective ticket price ("ETP"))

                                                        (Unaudited)


                    Three Months           Percentage       Nine Months
                        Ended                                  Ended        Percentage Increase
                     April 30,
                                            Increase         April 30,

                            2014                 2013      (Decrease)                      2014     2013          (Decrease)
                            ----                 ----      ---------                       ----     ----          ---------

    Net Mountain
     revenue:

    Lift                         $251,914                      $215,163                    17.1%         $447,271                $390,820 14.4%

    Ski school            62,512                   53,531                                  16.8% 109,442                  95,254          14.9%

    Dining                42,303                   37,876                                  11.7%  82,369                  74,075          11.2%

    Retail/
     rental               73,785                   66,329                                  11.2% 188,401                 176,802           6.6%

    Other                 30,073                   29,118                                   3.3%  82,091                  78,719           4.3%

    Total
     Mountain
     net revenue                 $460,587                      $402,017                    14.6%         $909,574                $815,670 11.5%
    ============                 ========                      ========                    ====          ========                ======== ====

    Mountain
     operating
     expense:

    Labor and
     labor-
     related
     benefits                     $92,342                       $83,372                    10.8%         $226,143                $201,350 12.3%

    Retail cost
     of sales             25,419                   23,795                                   6.8%  76,109                  75,230           1.2%

    Resort
     related
     fees                 26,117                   22,445                                  16.4%  47,148                  40,830          15.5%

    General and
     administrative       36,073                   31,581                                  14.2% 105,010                  93,698          12.1%

    Other                 53,350                   46,760                                  14.1% 147,177                 125,390          17.4%

    Total
     Mountain
     operating
     expense                     $233,301                      $207,953                    12.2%         $601,587                $536,498 12.1%
    ==========                   ========                      ========                    ====          ========                ======== ====

    Mountain
     equity
     investment
     income, net             665                      266                                 150.0%   1,282                     799          60.5%

    Mountain
     Reported
     EBITDA                      $227,951                      $194,330                    17.3%         $309,269                $279,971 10.5%
    =========                    ========                      ========                    ====          ========                ======== ====


    Total skier
     visits                4,176                    3,756                                  11.2%   7,688                   6,977          10.2%

    ETP                            $60.32                        $57.29                     5.3%           $58.18                  $56.02  3.9%


                                               Vail Resorts, Inc.

                                            Lodging Operating Results

                                      (In thousands, except ADR and RevPAR)

                                                   (Unaudited)


                      Three Months          Percentage       Nine Months
                          Ended                                 Ended       Percentage
                       April 30,
                                             Increase         April 30,      Increase

                              2014                2013       (Decrease)           2014     2013          (Decrease)
                              ----                ----        ---------           ----     ----          ---------

    Lodging net
     revenue:

    Owned hotel rooms              $12,632                       $10,966          15.2%          $36,943                 $33,566     10.1%

    Managed
     condominium
     rooms                  20,578                  16,110                        27.7%  46,474                  36,529              27.2%

    Dining                   9,768                   6,044                        61.6%  31,016                  22,146              40.1%

    Transportation           9,865                   8,756                        12.7%  19,489                  17,570              10.9%

    Golf                         -                   -                -%        7,642    7,711               (0.9)%

    Other                   10,757                   9,180                        17.2%  30,225                  26,868              12.5%
    -----                   ------                   -----                        ----   ------                  ------

                            63,600                  51,056                        24.6% 171,789                 144,390              19.0%

    Payroll cost
     reimbursements          2,693                   2,778                       (3.1)%   7,905                   8,495             (6.9)%
                                                                                                                                 -----

    Total Lodging net
     revenue                       $66,293                       $53,834          23.1%         $179,694                $152,885     17.5%
    =================                =====                         =====          ====          ========                ========     ====

    Lodging operating
     expense:

    Labor and labor-
     related benefits              $24,918                       $21,384          16.5%          $76,841                 $66,306     15.9%

    General and
     administrative          8,571                   7,553                        13.5%  24,900                  21,814              14.1%

    Other                   17,000                  13,731                        23.8%  53,700                  45,440              18.2%
    -----                   ------                  ------                        ----   ------                  ------              ----

                            50,489                  42,668                        18.3% 155,441                 133,560              16.4%

    Reimbursed
     payroll costs           2,693                   2,778                       (3.1)%   7,905                   8,495             (6.9)%
    --------------           -----                   -----                       -----    -----                   -----

    Total Lodging
     operating
     expense                       $53,182                       $45,446          17.0%         $163,346                $142,055     15.0%
    =============                    =====                         =====          ====          ========                ========     ====

    Lodging Reported
     EBITDA                        $13,111                        $8,388          56.3%          $16,348                 $10,830     51.0%
    ================                 =====                        ======          ====           =======                 =======     ====


    Owned hotel
     statistics:

    ADR                            $243.33                       $244.97         (0.7)%          $218.30                 $212.16      2.9%

    RevPar                         $183.02                       $157.73          16.0%          $141.33                 $128.40     10.1%

    Managed
     condominium
     statistics:

    ADR                            $394.52                       $382.80           3.1%          $366.41                 $358.09      2.3%

    RevPar                         $165.49                       $145.48          13.8%          $111.82                  $98.92     13.0%

    Owned hotel and
     managed
     condominium
     statistics
     (combined):

    ADR                            $333.26                       $330.70           0.8%          $294.17                 $287.46      2.3%

    RevPar                         $170.32                       $148.71          14.5%          $120.96                 $107.75     12.3%


                  Key Balance Sheet Data

                      (In thousands)

                        (Unaudited)


                                     As of April 30,

                                    2014              2013
                                    ----              ----

    Real estate held for sale
     and investment                        $170,818          $201,861


    Total Vail Resorts, Inc.
     stockholders' equity        907,149             888,748


    Long-term debt               799,223             489,240

    Long-term debt due within
     one year                        879               518
    -------------------------        ---               ---

    Total debt                   800,102             489,758

    Less: cash and cash
     equivalents                 307,431             237,735

    Net debt                               $492,671          $252,023
    ========                               ========          ========

Reconciliation of Non-GAAP Financial Measures

Reported EBITDA, Resort EBITDA Margin, Net Debt, and Net Real Estate Cash Flow are not measures of financial performance under GAAP, and they might not be comparable to similarly titled measures of other companies. Reported EBITDA, Resort EBITDA Margin, Net Debt, and Net Real Estate Cash Flow should not be considered in isolation or as an alternative to, or substitute for, measures of financial performance or liquidity prepared in accordance with GAAP including net income, net change in cash and cash equivalents or other financial statement data.

Reported EBITDA and Net Real Estate Cash Flow have been presented herein as measures of the Company's performance. The Company believes that Reported EBITDA is an indicative measurement of the Company's operating performance, and is similar to performance metrics generally used by investors to evaluate other companies in the resort and lodging industries. The Company primarily uses Reported EBITDA based targets in evaluating performance. For Resort, the Company defines Resort EBITDA Margin as Resort Reported EBITDA divided by Resort net revenue, which is not a measure of financial performance under GAAP, as the Company believes it is an important measurement of operating performance. The Company believes that Net Debt is an important measurement of liquidity as it is an indicator of the Company's ability to obtain additional capital resources for its future cash needs. Additionally, the Company believes Net Real Estate Cash Flow is important as a cash flow indicator for its Real Estate segment.

Presented below is a reconciliation of Total Reported EBITDA to net income attributable to Vail Resorts, Inc. calculated in accordance with GAAP for the three and nine months ended April 30, 2014 and 2013.



                                                           (In thousands)                  (In thousands)
                                                            (Unaudited)                     (Unaudited)

                                                            Three Months                     Nine Months
                                                                Ended                           Ended

                                                             April 30,                       April 30,

                                                          2014             2013            2014             2013
                                                          ----             ----            ----             ----

    Mountain Reported EBITDA                                     $227,951        $194,330         $309,269        $279,971

    Lodging Reported EBITDA                             13,111            8,388           16,348            10,830
    -----------------------                             ------            -----           ------            ------

    Resort Reported EBITDA*                            241,062            202,718           325,617            290,801

    Real Estate Reported EBITDA                         (2,278)           (3,156)           (5,792)            (9,412)
    ---------------------------                         ------            ------           ------            ------

    Total Reported EBITDA                              238,784            199,562           319,825            281,389

    Depreciation and amortization                     (35,588)            (33,730)            (105,948)           (98,827)

    Gain (loss) on disposal of fixed assets, net           634            (224)           (839)            (757)

    Investment income, net                                 124              153             289              306

    Interest expense                                  (16,408)            (8,359)           (48,745)            (25,268)
    ----------------                                   -------            ------           -------            -------

    Income before provision for income taxes           187,546            157,402           164,582            156,843

    Provision for income taxes                        (69,680)            (59,814)           (60,953)            (59,329)
    --------------------------                         -------            -------           -------            -------

    Net income                                                   $117,866         $97,588         $103,629         $97,514

    Net loss attributable to noncontrolling interests       80               52             204               97

    Net income attributable to Vail Resorts, Inc.                $117,946         $97,640         $103,833         $97,611
    =============================                                ========         =======         ========         =======



    *                          Resort represents the
                               sum of Mountain and
                               Lodging

Presented below is a reconciliation of Total Reported EBITDA to net income attributable to Vail Resorts, Inc. calculated in accordance with GAAP for the twelve months ended April 30, 2014.



                                   (In thousands)
                                     (Unaudited)

                                    Twelve Months
                                        Ended

                                      April 30,

                                             2014
                                             ----

    Mountain Reported EBITDA                           $257,997

    Lodging Reported EBITDA                17,679
    -----------------------                ------

    Resort Reported EBITDA*               275,676

    Real Estate Reported EBITDA            (5,486)
    ---------------------------            ------

    Total Reported EBITDA                 270,190

    Depreciation and amortization        (139,809)

    Loss on disposal of fixed
     assets, net                           (1,304)

    Investment income, net                    334

    Interest expense                      (62,443)
    ----------------                      -------

    Income before provision for
     income taxes                          66,968

    Provision for income taxes            (23,243)
    --------------------------            -------

    Net income                                          $43,725

    Net loss attributable to
     noncontrolling interests                 240

    Net income attributable to
     Vail Resorts, Inc.                                 $43,965
    ==========================                          =======



    *                          Resort represents the
                               sum of Mountain and
                               Lodging

The following table reconciles Net Debt to long-term debt and the calculation of Net Debt to Total Reported EBITDA for the twelve months ended April 30, 2014.



                             (In thousands)

                               (Unaudited)

                               As of April
                                 30, 2014
                              ------------

    Long-term debt                               $799,223

    Long-term debt due
     within one year                    879
    ------------------                  ---

    Total debt                      800,102

    Less: cash and cash
     equivalents                    307,431
    -------------------             -------

    Net debt                                     $492,671
    ========                                     ========

    Net debt to Total
     Reported EBITDA                    1.8  x
    =================                   ===

The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three and nine months ended April 30, 2014.



                          (In thousands)          (In thousands)

                            (Unaudited)           (Unaudited)

                           Three Months            Nine Months
                               Ended                 Ended

                          April 30, 2014          April 30, 2014
                          --------------          --------------

    Real Estate Reported
     EBITDA                              $(2,278)                $(5,792)

    Non-cash Real Estate
     cost of sales                12,531            22,635

    Non-cash Real Estate
     stock-based
     compensation                    423             1,283

    Change in Real Estate
     deposits and
     recovery of
     previously incurred
     project costs less
     investments in Real
     Estate                          641             2,751

    Net Real Estate Cash
     Flow                                $11,317                 $20,877
    ====================                 =======                 =======

The following table reconciles Resort Net Revenue to Resort EBITDA Margin for fiscal 2014 guidance.



                                       (In
                                   thousands)

                                  (Unaudited)

                                  Fiscal 2014

                                  Guidance**
                                   ---------

    Resort net revenue*                        $1,208,000

    Resort EBITDA*                    270,000

    Resort EBITDA margin*                22.4%
    ====================                 ====


    * Resort represents the sum
     of Mountain and Lodging

    **Represents the mid-point
     range of Guidance

SOURCE Vail Resorts, Inc.