VAIL RESORTS BROOMFIELD, Colo., June 9, 2016 /PRNewswire/ -- Vail Resorts, Inc. (NYSE: MTN) today reported results for its third quarter ended April 30, 2016, as well as the Company's results of its early season pass sales for the 2016/2017 U.S. ski season.
Highlights
-- Net income attributable to Vail Resorts, Inc. was $157.6 million for the
third quarter of fiscal 2016, representing an 18.2% increase compared to
the same period in the prior year.
-- Resort Reported EBITDA was $306.6 million for the third quarter of
fiscal 2016, an increase of 14.7% compared to the same period in the
prior year, including $3.5 million of Lodging Reported EBITDA associated
with the termination of the Company's management agreement with respect
to the Half Moon Resort in Jamaica.
-- Total lift revenue for the third quarter of fiscal 2016 increased 17.4%,
while total skier visits increased 13.9% compared to the same period in
the prior year.
-- The Company increased its fiscal 2016 guidance range and is now
expecting Resort Reported EBITDA to be between $448 million and $454
million.
-- Season pass sales for the 2016/2017 U.S. ski season were up
approximately 29% in units and approximately 34% in sales dollars
through May 31, 2016 compared with the prior year period ended June 2,
2015.
Commenting on the Company's fiscal 2016 third quarter results, Rob Katz, Chief Executive Officer said, "We are very pleased with our performance in the quarter and for the entirety of the 2015/2016 U.S. ski season. Our results continued to demonstrate the strength of our season pass products, the momentum we have created by drawing destination guests to our resorts through more sophisticated marketing efforts and the benefit from good conditions throughout the season in each of our western resort areas. Mountain revenue increased 14.7% compared to the same period in the prior year, with lift revenue growing 17.4%, driven by strong season pass revenue and an increase in effective ticket price ("ETP") excluding season pass, of 8.2%. Guest spending was strong across the business in the third quarter with ski school revenue increasing 12.2% and dining revenue increasing 15.9% compared to the same period in the prior year. Our first season operating the new Park City resort proved to be a success, and results were in line with our ambitious expectations for what is now the largest ski resort in the U.S. In addition, our Tahoe resorts benefited from dramatically better conditions throughout the ski season and achieved record revenue levels in all key business lines. Our Colorado resorts continued to deliver outstanding results, with growth in visitation and revenue above our record prior year. We did experience a modest decline in total international visitation compared to the prior year, however, we did see strong growth from Australia, reflecting the benefit of our recent Perisher acquisition and the introduction of a season pass which provides access to Perisher and our U.S. resorts, called the Epic Australia Pass."
Katz continued, "This season highlighted the importance and success of our more sophisticated marketing efforts. We continued to see strong growth in our season pass program with season pass revenue increasing 18.9% year-to-date through the third fiscal quarter, excluding Perisher, compared to the prior year period, and represented approximately 41% of our total lift revenue. Our growth in season pass sales was primarily driven from increased sales to our destination guests who increasingly appreciate our network of resorts and the compelling value proposition our season pass products offer for their ski vacations, while also benefitting from our improved ability to segment our guests and personalize our messages to them. We are also driving our guests' purchases through our own online distribution channels, providing our guests with the confidence that they are getting the best value and ensuring we maintain a strong relationship with them. This was particularly helpful in Park City as we build brand awareness and loyalty for a completely new experience at the resort. At the same time, while we benefit from consistent price increases on lift tickets and season passes, we are offering guests a wide variety of products to access our mountains. This provides guests access to real savings for their vacations by purchasing in advance, purchasing multiple ski days or purchasing packages of products. Vail Mountain is a great example of this strategy, where the average price per day across all adult visitors was approximately $86, excluding complimentary tickets. This is far lower than the single day peak price of $175, which is purchased by a relatively small share of our visitors."
Regarding Lodging, Katz said, "Our Lodging results were strong for the third fiscal quarter with both occupancy and rate increases compared to the same period of the prior year. Revenue (excluding payroll cost reimbursements) increased 7.6% compared to the prior year period, and revenue per available room ("RevPAR") increased 7.2%. Our results reflect robust demand at our lodging properties across each of our geographies. During the third fiscal quarter, we terminated the management agreement with respect to the Half Moon Resort in Jamaica, resulting in a $3.5 million termination fee included in Lodging Revenue and received $4.5 million to repay the unamortized "key money" investment in the resort. The Company generated approximately $0.6 million of Resort Reported EBITDA from Half Moon in fiscal 2015 and will be forgoing approximately $0.2 million of expected Resort Reported EBITDA as a result of not managing the property for the remainder of fiscal 2016."
Katz continued, "Resort Reported EBITDA was $306.6 million for the fiscal quarter, an increase of 14.7% over the same period in the prior year. Resort EBITDA Margin for the quarter was 47.5%, an increase of 30 basis points."
Regarding Real Estate, Katz said, "We continue to see momentum in our resort real estate markets. During the fiscal quarter, we closed on two condominium units at Crystal Peak Lodge in Breckenridge and currently have two units at The Ritz-Carlton Residences, Vail under contract, which we expect to close in our fourth fiscal quarter."
Katz commented, "Given the strong performance to date this year, we expect that our fiscal 2016 Resort Reported EBITDA will finish the year between $448 million and $454 million, an increase of 7.3% to 8.7% relative to the midpoint of our original guidance range for fiscal 2016 issued in September 2015 and an increase of 28.2% to 29.9% compared to the prior year, excluding the non-cash gain on the Park City litigation settlement in fiscal 2015. We are also increasing our Resort EBITDA Margin guidance to 28.6% at the midpoint of our updated range, which would be a 630 basis point increase in margin over two years."
Katz continued, "Our balance sheet remains strong and the business continues to generate robust cash flow. We ended the quarter with $68.6 million of cash on hand and no borrowings under the revolver portion of our credit facility as we have fully paid down borrowings related to the Perisher acquisition. As of April 30, 2016, we had available borrowing capacity under the revolver component of our credit facility of $327.4 million. Our Net Debt, including the capitalized Canyons obligation, was 1.2 times trailing twelve months Total Reported EBITDA. I am also very pleased to announce that our Board of Directors has declared a quarterly cash dividend on Vail Resorts' common stock. The quarterly dividend will be $0.81 per share of common stock and will be payable on July 13, 2016 to shareholders of record on June 28, 2016. We repurchased $13.8 million of stock during the quarter at an average price of $127.59."
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 quarter ended April 30, 2016 filed today with the Securities and Exchange Commission. The following are segment highlights:
Mountain Segment
-- Total lift revenue increased $49.5 million, or 17.4%, compared to the
same period in the prior year, to $334.8 million, driven by a $33.2
million, or 18.5%, increase in lift revenue, excluding season pass
revenue, as well as a $16.3 million, or 15.4%, increase in season pass
revenue.
-- Ski school revenue increased by $8.1 million, or 12.2%, and dining
revenue increased $7.0 million, or 15.9%, compared to the same period in
the prior year, primarily due to the strong results at our Colorado,
Tahoe and Park City resorts. The increase in dining revenue was further
bolstered by the opening of the new Miners' Camp restaurant and the
upgrade of the Red Pine Lodge and Summit House at Park City.
-- Retail/rental revenue increased $8.3 million, or 11.7%, compared to the
same period in the prior year, primarily due to increases in retail
sales in Tahoe and increases in rental revenue at stores proximate to
our resorts in Tahoe and Colorado.
-- Operating expense increased $37.3 million, or 15.2%, compared to the
three months ended April 30, 2015, including incremental operating
expenses of $5.7 million from Perisher.
-- Mountain Reported EBITDA increased $36.3 million, or 14.2%, compared to
the same period in the prior year, which includes $3.3 million of
stock-based compensation expense compared to $2.6 million in the same
period in the prior year.
Lodging Segment
-- Lodging segment net revenue (excluding payroll cost reimbursements)
increased $4.9 million, or 7.6%, as compared to the same period in the
prior year.
-- Occupancy increased 2.0 percentage points and RevPAR increased 7.2% at
the Company's owned hotels and managed condominiums compared to the same
period in the prior year.
-- Included in net revenue was the recognition of a $3.5 million
termination fee (included in other revenue) associated with the
termination of the management agreement with respect to the Half Moon
Resort in Montego Bay, Jamaica.
-- Lodging Reported EBITDA increased $2.9 million, or 23.1%, compared to
the same period in the prior year, which includes $0.8 million of
stock-based compensation expense as compared to $0.6 million in the same
period in the prior year.
Resort - Combination of Mountain and Lodging Segments
-- Resort net revenue increased $78.9 million, or 13.9%, to $645.7 million
as compared to the same period in the prior year.
-- Resort Reported EBITDA was $306.6 million, an increase of $39.2 million,
or 14.7%, compared to the same period in the prior year.
Real Estate Segment
-- Real Estate segment net revenue decreased $10.7 million, or 86.1%, as
compared to the same period in the prior year.
-- Net Real Estate Cash Flow was $0.6 million, a decrease of $12.1 million
from the same period in the prior year, primarily resulting from higher
condominium closings and the sale of a development land parcel in the
same period in the prior year.
-- Real Estate Reported EBITDA was a loss of $1.3 million, a 5.4%
improvement as compared to the same period in the prior year, which
includes $0.2 million of stock-based compensation as compared to $0.3
million in the same period in the prior year.
Total Performance
-- Total net revenue increased $68.1 million, or 11.8%, to $647.5 million
as compared to the same period in the prior year.
-- Net income attributable to Vail Resorts, Inc. was $157.6 million, or
$4.23 per diluted share compared to $133.4 million, or $3.56 per diluted
share, in the same period of the prior year.
Return of Capital
The Company declared a quarterly cash dividend of $0.81 per share of common stock that will be payable on July 13, 2016 to shareholders of record on June 28, 2016. In the third quarter of fiscal 2016, the Company repurchased 108,036 shares at an average price of $127.59 for a total of $13.8 million.
Season Pass Sales
Commenting on the Company's season pass sales for the upcoming 2016/2017 U.S. ski season, Katz said, "We are thrilled with the results for our season pass sales to date. Pass sales through May 31, 2016 for the upcoming 2016/2017 U.S. ski season increased approximately 29% in units and approximately 34% in sales dollars, as compared to the prior year period through June 2, 2015. This compares to the growth we reported from our spring 2015 sales of 12% in units and 20% in sales dollars, which at the time were record results. The season pass results this spring represent our strongest absolute and percentage growth ever in our spring selling season and are a strong indication of the compelling value of our season pass products, our successful targeted marketing efforts and the significant investment we make in our resorts. Our spring pass sales included strong results from Northern California, likely due to the terrific conditions there this season, especially as compared to last season. But, we also saw very good momentum in Colorado and continued high growth in our destination markets, which combined represented over 70% of our total unit growth. Importantly, percentage growth from the Chicago area was nearly double the growth from our other destination markets as guests in the area are looking forward to next season at the newly improved Wilmot Mountain, as well as the opportunity to ski at our western resorts, all on the same pass."
Katz continued, "Our early season pass results demonstrate the success of our efforts to accelerate the timing of when our guests purchase their season passes. As always, it is important to note that we do not believe that the very strong growth rates from our early sales will be maintained through the remainder of the selling season, as our early growth includes pass holders who purchased 2015/16 U.S. ski season passes last fall. However, we believe that our success in moving our guest's purchase decision earlier in the year creates more opportunity for stable and consistent growth and overall results. Season passes sold for the 2016/2017 U.S. ski season through May 31, 2016 represent approximately 50% of the total season passes sold for 2015/2016 U.S. ski season."
Regarding Epic Australia Pass sales, Katz commented, "Perisher's 2016 season gets underway this weekend, and we are pleased with sales of the Epic Australia Pass to date, which are on sale through June 13, 2016."
Epic Discovery Update
Commenting on the launch of Epic Discovery this summer, Katz said, "We are very excited to welcome visitors to the first year of Epic Discovery at both Vail and Heavenly which will officially open in late June. Our summer guests will have the opportunity to enjoy a great lineup of activities for the whole family, including ropes courses, zip lines, summer tubing and alpine coasters, along with incredible opportunities for experiential learning in a high alpine environment."
Outlook
-- We have updated our estimated range of Resort Reported EBITDA for fiscal
2016 to $448 million to $454 million.
-- We expect Resort EBITDA Margin (defined as Resort Reported EBITDA
divided by Resort net revenue) to be approximately 28.6% in fiscal 2016,
at the midpoint of our updated guidance range. This is an estimated 300
basis point increase over fiscal 2015, excluding the non-cash gain on
the Park City litigation settlement and Perisher EBITDA in the prior
year.
-- Our fiscal 2016 Real Estate Reported EBITDA guidance has been updated
and is now expected to range from break-even to positive $4 million.
-- Our Net Real Estate Cash Flow guidance is unchanged and is expected to
be $13 million to $28 million.
-- Net income attributable to Vail Resorts, Inc. is now expected to be in a
range of $146 million to $159 million in fiscal 2016.
The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2016, 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 2016.
Fiscal 2016 Guidance
(In thousands)
For the Year Ending
July 31, 2016
-------------
Low End High End
Range
Range
-----
Mountain Reported
EBITDA (1) $421,000 $427,000
Lodging Reported EBITDA (2) 25,000 29,000
-------------------------- ------ ------
Resort Reported EBITDA (3) 448,000 454,000
Real Estate Reported EBITDA
(4) - 4,000
--------------------------- --- -----
Total Reported EBITDA 448,000 458,000
Depreciation and
amortization (163,000) (157,000)
Loss on disposal of fixed
assets and other, net (4,500) (3,500)
Change in fair value of
contingent consideration
(5) - -
Investment income, net 300 700
Interest expense (44,000) (41,000)
Income before provision for
income taxes 236,800 257,200
Provision for income taxes (91,000) (98,600)
-------------------------- ------- -------
Net income $145,800 $158,600
Net loss attributable to
noncontrolling interests 200 400
Net income
attributable to
Vail Resorts,
Inc. $146,000 $159,000
================ ======== ========
(1) Mountain Reported EBITDA includes approximately $13 million of stock-based compensation.
(2) Lodging Reported EBITDA includes approximately $3 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 of the expected ranges provided for the Mountain and
Lodging segments, while possible, do not sum to the high or low 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 $1 million of stock-based compensation.
(5) Our guidance excludes any change in the fair value of contingent consideration which is based
upon, among other things, financial projections including long-term growth rates for Park City,
which such change may be material.
Earnings Conference Call
The Company will conduct a conference call today at 11:30 a.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 (888) 349-9582 (U.S. and Canada) or (719) 325-2356 (international). A replay of the conference call will be available two hours following the conclusion of the conference call through June 23, 2016, at 12:30 p.m. eastern time. To access the replay, dial (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (international), pass code 8354044. The conference call also will be archived at www.vailresorts.com.
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts, Inc., through its subsidiaries, is the leading global mountain resort operator. The Company's subsidiaries operate nine world-class mountain resorts and three urban ski areas, including Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Perisher in New South Wales, Australia; Afton Alps in Minnesota, Mt. Brighton in Michigan and Wilmot Mountain in Wisconsin. The Company owns and/or manages a collection of casually elegant hotels under the RockResort brand, as well as the Grand Teton Lodge Company in Jackson Hole, Wyoming. Vail Resorts Development Company is the real estate planning and development 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
Certain statements discussed in this press release and on the conference call, other than statements of historical information, are forward-looking statements, including our expectations regarding our fiscal 2016 Resort Reported EBITDA and our Resort EBITDA margin. These statements 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; 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; adverse events that occur during our peak operating periods combined with the seasonality of our business; competition in our mountain and lodging businesses; high fixed cost structure of our business; our ability to fund resort capital expenditures; our reliance on government permits or approvals for our use of public land or to make operational and capital improvements; risks related to federal, state, local and foreign government laws, rules and regulations; risks related to our reliance on information technology; our failure to maintain the integrity of our customer or employee data; adverse consequences of current or future legal claims; a deterioration in the quality or reputation of our brands, including from the risk of accidents at our mountain resorts; our ability to hire and retain a sufficient seasonal workforce; risks related to our workforce, including increased labor costs; loss of key personnel; our ability to successfully integrate acquired businesses or future acquisitions; our ability to realize anticipated financial benefits from Park City; fluctuations in foreign currency exchange rates, in particular the Australian dollar; impairments or write downs of our assets; changes in accounting estimates and judgments, accounting principles, policies or guidelines; a materially adverse change in our financial condition; 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, 2015.
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, Reported EBITDA excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA, Resort EBITDA Margin, Resort EBITDA Margin excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA, Net Debt and Net Real Estate Cash Flow, which are not financial measures under accounting principles generally accepted in the United States of America ("GAAP"). Reported EBITDA, Reported EBITDA excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA, Resort EBITDA Margin, Resort EBITDA Margin excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA, 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. Accordingly, these Non-GAAP measures may not be comparable to similarly-titled measures of other companies.
Reported EBITDA and Reported EBITDA excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA 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. For Resort, the Company defines Resort EBITDA Margin as Resort Reported EBITDA divided by Resort net revenue. The Company believes Resort EBITDA Margin is an important measurement of operating performance. In this release, we also separately present Resort EBITDA Margin excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA. 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. See the tables provided in this release for reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures.
Vail Resorts, Inc.
Consolidated Condensed Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended April 30, Nine Months Ended April 30,
2016 2015 2016 2015
---- ---- ---- ----
Net revenue:
Mountain $572,805 $499,551 $1,206,610 $1,022,968
Lodging 72,933 67,323 200,026 185,180
Real estate 1,734 12,469 14,766 29,694
----------- ----- ------ ------ ------
Total net revenue 647,472 579,343 1,421,402 1,237,842
Segment operating expense:
Mountain 281,968 244,675 729,382 645,593
Lodging 57,422 54,726 176,170 166,407
Real estate 3,085 14,028 17,043 35,513
----------- ----- ------ ------ ------
Total segment operating
expense 342,475 313,429 922,595 847,513
Other operating (expense) income:
Depreciation and
amortization (41,472) (38,242) (120,713) (111,587)
Gain on sale of real
property 19 151 1,810 151
Gain on litigation
settlement - - - 16,400
Change in fair value of
contingent consideration - - - 4,550
Loss on disposal of fixed
assets and other, net (164) (71) (3,149) (852)
------------------------- ---- --- ------ ----
Income from operations 263,380 227,752 376,755 298,991
Mountain equity investment
income (loss), net 211 (129) 992 396
Investment income, net 150 119 509 155
Interest expense (10,400) (13,735) (31,905) (41,110)
---------------- ------- ------- ------- -------
Income before provision for
income taxes 253,341 214,007 346,351 258,432
Provision for income taxes (95,804) (80,605) (131,613) (73,654)
-------------------------- ------- ------- -------- -------
Net income $157,537 $133,402 $214,738 $184,778
Net loss attributable to
noncontrolling interests 95 8 289 118
------------------------- --- --- --- ---
Net income attributable to
Vail Resorts, Inc. $157,632 $133,410 $215,027 $184,896
========================== ======== ======== ======== ========
Per share amounts:
Basic net income per share
attributable to Vail
Resorts, Inc. $4.35 $3.67 $5.92 $5.09
========================== ===== ===== ===== =====
Diluted net income per
share attributable to Vail
Resorts, Inc. $4.23 $3.56 $5.76 $4.95
=========================== ===== ===== ===== =====
Cash dividends declared per
share $0.8100 $0.6225 $2.0550 $1.4525
=========================== ======= ======= ======= =======
Weighted average shares outstanding:
Basic 36,217 36,354 36,312 36,310
===== ====== ====== ====== ======
Diluted 37,268 37,453 37,328 37,362
======= ====== ====== ====== ======
Other Data:
Mountain Reported EBITDA $291,048 $254,747 $478,220 $394,171
Lodging Reported EBITDA 15,511 12,597 23,856 18,773
----------------------- ------ ------ ------ ------
Resort Reported EBITDA 306,559 267,344 502,076 412,944
Real Estate Reported EBITDA (1,332) (1,408) (467) (5,668)
Total Reported EBITDA $305,227 $265,936 $501,609 $407,276
===================== ======== ======== ======== ========
Mountain stock-based
compensation $3,319 $2,606 $10,030 $8,846
Lodging stock-based
compensation 770 609 2,300 1,912
------------------- --- --- ----- -----
Resort stock-based
compensation 4,089 3,215 12,330 10,758
Real Estate stock-based
compensation 186 277 335 960
Total stock-based
compensation $4,275 $3,492 $12,665 $11,718
================= ====== ====== ======= =======
Vail Resorts, Inc.
Mountain Segment Operating Results
(In thousands, except ETP)
(Unaudited)
Three Months Ended Percentage Nine Months Ended Percentage
April 30, April 30, Increase
Increase
2016 2015 (Decrease) 2016 2015 (Decrease)
---- ---- --------- ---- ---- ---------
Net Mountain revenue:
Lift $334,789 $285,249 17.4% $642,627 $524,537 22.5%
Ski school 74,279 66,216 12.2% 139,703 123,511 13.1%
Dining 51,000 44,003 15.9% 108,093 90,661 19.2%
Retail/rental 79,384 71,078 11.7% 214,748 195,563 9.8%
Other 33,353 33,005 1.1% 101,439 88,696 14.4%
------ ------ ------- ------
Total Mountain net revenue $572,805 $499,551 14.7% $1,206,610 $1,022,968 18.0%
========================== ======== ======== ==== ========== ========== ====
Mountain operating expense:
Labor and labor-related
benefits $115,932 $99,926 16.0% $283,353 $245,401 15.5%
Retail cost of sales 26,123 23,520 11.1% 80,864 75,856 6.6%
Resort related fees 36,129 31,624 14.2% 66,473 57,773 15.1%
General and administrative 45,753 37,047 23.5% 130,901 112,613 16.2%
Other 58,031 52,558 10.4% 167,791 153,950 9.0%
------ ------ ------- -------
Total Mountain operating
expense $281,968 $244,675 15.2% $729,382 $645,593 13.0%
======================== ======== ======== ==== ======== ======== ====
Gain on litigation
settlement - - -% - 16,400 (100.0)%
Mountain equity investment
income (loss), net 211 (129) 263.6% 992 396 150.5%
--- ---- --- ---
Mountain Reported EBITDA $291,048 $254,747 14.2% $478,220 $394,171 21.3%
======================== ======== ======== ==== ======== ======== ====
Total skier visits 4,689 4,118 13.9% 9,705 8,189 18.5%
ETP $71.40 $69.27 3.1% $66.22 $64.05 3.4%
Vail Resorts, Inc.
Lodging Operating Results
(In thousands, except Average Daily Rate ("ADR") and RevPAR)
(Unaudited)
Three Months Ended Percentage Nine Months Ended Percentage
April 30, April 30, Increase
Increase
2016 2015 (Decrease) 2016 2015 (Decrease)
---- ---- --------- ---- ---- ---------
Lodging net revenue:
Owned hotel rooms $13,813 $13,097 5.5% $43,164 $39,348 9.7%
Managed condominium rooms 23,110 21,904 5.5% 52,420 49,663 5.6%
Dining 10,167 9,778 4.0% 34,049 31,538 8.0%
Transportation 8,827 9,690 (8.9)% 19,440 20,504 (5.2)%
Golf - - -% 8,722 7,805 11.7%
Other 13,634 10,190 33.8% 33,009 28,811 14.6%
----- ------ ------ ---- ------ ------ ----
69,551 64,659 7.6% 190,804 177,669 7.4%
Payroll cost reimbursements 3,382 2,664 27.0% 9,222 7,511 22.8%
----- ----- ----- -----
Total Lodging net revenue $72,933 $67,323 8.3% $200,026 $185,180 8.0%
========================= ======= ======= === ======== ======== ===
Lodging operating expense:
Labor and labor-related
benefits $26,808 $26,465 1.3% $82,529 $79,783 3.4%
General and administrative 9,657 8,736 10.5% 27,036 25,102 7.7%
Other 17,575 16,861 4.2% 57,383 54,011 6.2%
----- ------ ------ --- ------ ------ ---
54,040 52,062 3.8% 166,948 158,896 5.1%
Reimbursed payroll costs 3,382 2,664 27.0% 9,222 7,511 22.8%
------------------------ ----- ----- ---- ----- ----- ----
Total Lodging operating
expense $57,422 $54,726 4.9% $176,170 $166,407 5.9%
======================= ======= ======= === ======== ======== ===
Lodging Reported EBITDA $15,511 $12,597 23.1% $23,856 $18,773 27.1%
======================= ======= ======= ==== ======= ======= ====
Owned hotel statistics:
ADR $263.40 $256.34 2.8% $232.50 $224.50 3.6%
RevPAR $188.86 $179.55 5.2% $156.09 $143.37 8.9%
Managed condominium statistics:
ADR $407.96 $395.30 3.2% $353.54 $348.68 1.4%
RevPAR $185.19 $171.64 7.9% $128.79 $118.45 8.7%
Owned hotel and managed condominium statistics
(combined):
ADR $359.55 $348.59 3.1% $303.40 $297.27 2.1%
RevPAR $186.10 $173.53 7.2% $136.37 $125.26 8.9%
Key Balance Sheet Data
(In thousands)
(Unaudited)
As of April 30,
2016 2015
---- ----
Real estate held
for sale and
investment $116,874 $137,740
Total Vail Resorts,
Inc. stockholders'
equity 965,663 963,490
Long-term debt 615,829 379,796
Long-term debt due
within one year 13,349 256,953
------------------ ------ -------
Total debt 629,178 636,749
Less: cash and cash
equivalents 68,565 125,214
Net debt $560,613 $511,535
======== ======== ========
Reconciliation of Non-GAAP Financial Measures
---------------------------------------------
Presented below is a reconciliation of Reported EBITDA to net income attributable to Vail Resorts, Inc. for the three and nine months ended April 30, 2016 and 2015.
(In thousands) (In thousands)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
April 30, April 30,
2016 2015 2016 2015
---- ---- ---- ----
Mountain Reported
EBITDA $291,048 $254,747 $478,220 $394,171
Lodging Reported
EBITDA 15,511 12,597 23,856 18,773
---------------- ------ ------ ------ ------
Resort Reported
EBITDA* 306,559 267,344 502,076 412,944
Real Estate
Reported EBITDA (1,332) (1,408) (467) (5,668)
---------------- ------ ------ ---- ------
Total Reported
EBITDA 305,227 265,936 501,609 407,276
Depreciation and
amortization (41,472) (38,242) (120,713) (111,587)
Loss on disposal
of fixed assets
and other, net (164) (71) (3,149) (852)
Change in fair
value of
contingent
consideration - - - 4,550
Investment income,
net 150 119 509 155
Interest expense (10,400) (13,735) (31,905) (41,110)
---------------- ------- ------- ------- -------
Income before
provision for
income taxes 253,341 214,007 346,351 258,432
Provision for
income taxes (95,804) (80,605) (131,613) (73,654)
------------- ------- ------- -------- -------
Net income $157,537 $133,402 $214,738 $184,778
Net loss
attributable to
noncontrolling
interests 95 8 289 118
Net income
attributable to
Vail Resorts,
Inc. $157,632 $133,410 $215,027 $184,896
================ ======== ======== ======== ========
* Resort represents the sum of Mountain and Lodging
The following table reconciles Resort net revenue to Resort EBITDA Margin for the three months ended April 30, 2016 and 2015.
(In thousands) (In thousands)
(Unaudited) (Unaudited)
Three Months Ended Three Months Ended
April 30, 2016 April 30, 2015
Resort
net
revenue* $645,738 $566,874
Resort
Reported
EBITDA* $306,559 $267,344
Resort
EBITDA
Margin 47.5% 47.2%
* 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. for the twelve months ended April 30,
2016.
(In
thousands)
(unaudited)
Twelve Months
Ended
April 30,
2016
----------
Mountain Reported EBITDA $428,153
Lodging Reported EBITDA 26,759
----------------------- ------
Resort Reported EBITDA* 454,912
Real Estate Reported EBITDA (1,714)
--------------------------- ------
Total Reported EBITDA 453,198
Depreciation and amortization (158,249)
Loss on disposal of fixed assets
and other, net (4,354)
Change in fair value of contingent
consideration (900)
Investment income, net 600
Interest expense (42,036)
Loss on extinguishment of debt (11,012)
------------------------------ -------
Income before provision for income
taxes 237,247
Provision for income taxes (92,677)
-------------------------- -------
Net income $144,570
Net loss attributable to
noncontrolling interests 315
Net income attributable to Vail
Resorts, Inc. $144,885
=============================== ========
* 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, 2016.
(In thousands)
(Unaudited)
As of April 30, 2016
--------------------
Long-
term
debt $615,829
Long-
term
debt
due
within
one
year 13,349
------ ------
Total
debt 629,178
Less:
cash
and
cash
equivalents 68,565
----------- ------
Net
debt $560,613
===== ========
Net
debt
to
Total
Trailing
12
Month
Reported
EBITDA 1.2 x
========= ===
The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three and nine months ended April 30, 2016 and 2015.
(In thousands) (In thousands)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
April 30, April 30,
2016 2015 2016 2015
---- ---- ---- ----
Real Estate
Reported EBITDA $(1,332) $(1,408) $(467) $(5,668)
Non-cash real
estate cost of
sales 1,064 10,438 10,508 23,058
Non-cash real
estate stock-
based
compensation 185 277 334 960
Change in real
estate deposits
and recovery of
previously
incurred project
costs/land basis
less investments
in real estate 650 3,404 2,362 3,639
Net Real Estate
Cash Flow $567 $12,711 $12,737 $21,989
=============== ==== ======= ======= =======
The following table reconciles Reported EBITDA to net income
attributable to Vail Resorts, Inc. calculated in accordance with GAAP
for the fiscal year ended July 31, 2015.
(In thousands)
(Unaudited)
Fiscal Year Ended July
31,
2015
----
Mountain
Reported
EBITDA
excluding
gain on
litigation
settlement
and
Perisher
EBITDA $320,278
Lodging
Reported
EBITDA 21,676
--------- ------
Resort
Reported
EBITDA
excluding
gain on
litigation
settlement
and
Perisher
EBITDA* 341,954
Gain on
litigation
settlement 16,400
Perisher
EBITDA 7,426
-------- -----
Resort
Reported
EBITDA* 365,780
Real
Estate
Reported
EBITDA (6,915)
--------- ------
Total
Reported
EBITDA 358,865
Depreciation
and
amortization (149,123)
Loss on
disposal
of fixed
assets
and
other,
net (2,057)
Change in
fair
value of
contingent
consideration 3,650
Investment
income,
net 246
Interest
expense (51,241)
Loss on
extinguishment
of debt (11,012)
--------------- -------
Income
before
provision
for
income
taxes 149,328
Provision
for
income
taxes (34,718)
--------- -------
Net
income $114,610
Net loss
attributable
to
noncontrolling
interests 144
Net
income
attributable
to Vail
Resorts,
Inc. $114,754
============= ========
* Resort represents the sum of
Mountain and Lodging
The following table reconciles Resort net revenue to Resort EBITDA Margin for fiscal 2016 guidance and
fiscal 2015.
(In thousands) (In thousands)
(Unaudited)
(Unaudited) Fiscal Year Ended
July 31, 2015
Fiscal 2016
Guidance (2)
Resort net
revenue
(1) $1,579,000 $1,358,582
Resort net
revenue
excluding
Perisher
(1) n/a $1,337,345
Resort
Reported
EBITDA (1) $451,000 $365,780
Resort
Reported and
EBITDA Perisher
(1), EBITDA
excluding
the non-
cash gain
on the
Park City
litigation
settlement $341,954
Resort
EBITDA n/a
margin 28.6% 26.9%
Resort
EBITDA Perisher
margin, EBITDA
excluding
the non-
cash gain
on the
Park City
litigation
settlement
and 25.6%
(1) Resort represents the sum of Mountain and Lodging
(2) Represents the mid-point range of Guidance
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SOURCE Vail Resorts, Inc.
