Vail Resorts Results

Vail Resorts Reports Fiscal 2018 Third Quarter Results and Early Season Pass Sales Results

Vail Resorts

Vail Resorts, Inc. (NYSE:   MTN) today reported results for its third quarter ended April 30, 2018, as well as the Company's results of its early season pass sales for the 2018/2019 North American ski season.

Highlights

  • Net income attributable to Vail Resorts, Inc. was $256.3 million for the third quarter of fiscal 2018, an increase of 41.5% compared to net income of $181.1 million for the third fiscal quarter of 2017, which includes the reduction in the provision for income taxes resulting from U.S. Tax Reform.
  • Resort Reported EBITDA was $419.7 million for the third fiscal quarter of 2018, which includes the operations of Stowe (acquired in June 2017), $2.8 million of Triple Peaks and Stevens Pass acquisition related expenses and $0.7 million of Whistler Blackcomb and Stowe integration related expenses, compared to Resort Reported EBITDA of $392.0 million in the same period in the prior year, which included $2.3 million of acquisition and integration related expenses.
  • The Company updated its fiscal 2018 guidance range and is now expecting Resort Reported EBITDA to be between $612 million and $622 million, including an estimated $7.0 million of acquisition and integration related expenses specific to Triple Peaks and Stevens Pass and an estimated $3.2 million of integration related expenses specific to Whistler Blackcomb and Stowe.
  • Season pass sales for the 2018/2019 North American ski season, excluding military pass products, increased approximately 12% in units and approximately 19% in sales dollars through May 29, 2018, compared with the prior year period ended May 30, 2017, adjusted to eliminate the impact of foreign currency by applying current period exchange rates to the prior period for Whistler Blackcomb pass sales. The Company also had significant sales of its Military Epic pass products.
  • On June 4, 2018, the Company announced that it had entered into an agreement to acquire Triple Peaks, LLC, the parent company of Okemo Mountain Resort, Mount Sunapee Resort, and Crested Butte Mountain Resort, and separately entered into an agreement to acquire Stevens Pass Resort.

Commenting on the Company's fiscal 2018 third quarter results, Rob Katz, chief executive officer said, "We are pleased with our performance in the quarter and for the full 2017/2018 North American ski season, particularly given the challenging weather conditions across the western U.S. for much of the season. Our performance demonstrates the resiliency of our business model, the stability provided by our geographically diverse resort network and the importance of increased advanced purchase products, including our season passes. Our improved results in the third fiscal quarter also underscore the strength of the high-end consumer's demand for ski vacations once conditions improved across our network.

"Mountain revenue increased 7.1% for the third fiscal quarter compared to the same period in the prior year, with lift revenue growing 7.9%, primarily as a result of strong season pass sales for the 2017/2018 North American ski season and the inclusion of Stowe, which was partially offset by lower non-pass lift revenue at our western U.S. resorts. Total visitation, including Stowe, grew 6.4% for the third fiscal quarter compared to the prior year period. Whistler Blackcomb experienced excellent conditions and achieved another season of record results. As conditions improved across the western U.S. in the second half of the ski season, overall skier visits rebounded sharply despite total snowfall remaining significantly below the long-term average at many of our western U.S. resorts."

Katz continued, "With our winter season behind us, we are pleased that our year-to-date results delivered growth over the prior year despite the very challenging conditions in the first half of the season. We believe this highlights the continued success of our season pass and guest-focused marketing efforts, the importance of geographic diversification in our resort network and the outstanding experience we provide at our resorts. We also continue to benefit from our improved ability to target and personalize our marketing messages to guests, resulting from the significant investments we have made in data capture and data-driven marketing capabilities over the past several years."

Regarding Lodging, Katz said, "Our lodging results for the third fiscal quarter were relatively flat as compared to the prior year period, with Lodging revenue (excluding payroll cost reimbursements) declining 0.2%." Katz continued, "Resort Reported EBITDA was $419.7 million for the fiscal quarter, an increase of 7.1% over the same period in the prior year. Resort EBITDA margin for the quarter was 49.9%, an increase of 30 basis points over the same period in the prior year."

Regarding Real Estate, Katz said, "During the third fiscal quarter, we closed on the sale of a development land parcel for $3.0 million. Real Estate EBITDA for the quarter also includes the recognition of a legal settlement totaling $5.5 million. The cash proceeds related to this legal settlement were received in a prior fiscal year."

Regarding the Company's outlook, Katz said, "Given our performance to date this year, we expect that our fiscal 2018 Resort Reported EBITDA will finish the year between $612 million and $622 million, an increase of 3.1% to 4.8% compared to the prior year. Our fiscal 2018 Resort Reported EBITDA guidance includes an estimated $10.2 million of acquisition and integration related expenses."

Katz continued, "Our balance sheet remains strong and the business continues to generate robust cash flow. We ended the quarter with $181.6 million of cash on hand and our Net Debt was 1.5 times trailing twelve months Total Reported EBITDA, which includes our outstanding debt of $1.1 billion as of April 30, 2018. 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 $1.47 per share of common stock and will be payable on July 12, 2018, to shareholders of record on June 27, 2018. Additionally, the Company repurchased $25.8 million of stock during the quarter at an average price of $223.51."

Acquisitions

As previously announced on June 4, 2018, the Company entered into an agreement to purchase Triple Peaks, LLC, the parent company of Okemo Mountain Resort in Vermont, Mount Sunapee Resort in New Hampshire, and Crested Butte Mountain Resort in Colorado. The Company will acquire Triple Peaks, LLC from the Mueller family for a cash purchase price of $82 million, subject to certain adjustments at closing, and will simultaneously pay $155 million to pay off the leases that all three resorts have with Ski Resort Holdings, LLC, an affiliate of Oz Real Estate. In a separate transaction, Vail Resorts also entered into an agreement to purchase Stevens Pass Resort in Washington State from Ski Resort Holdings, LLC for a cash purchase price of $67 million, subject to certain adjustments. The transactions are expected to close this summer, subject to receipt of new Special Use Permits from the U.S. Forest Service for Crested Butte Mountain Resort and Stevens Pass Resort, as well as administrative review and consent from the States of Vermont and New Hampshire. The acquisitions are collectively expected to generate incremental annual EBITDA in excess of $35 million in Vail Resorts' fiscal year ending July 31, 2019.

Subsequent to the closing of the two transactions, Vail Resorts plans to invest $35 million over the following two years, incremental to our normal rate of capital expenditures, to continue to elevate the guest experience across the four resorts. In addition, annual ongoing capital expenditures are expected to increase in the aggregate by $7 million to support the addition of these four resorts.

Operating Results

A more complete discussion of our operating results can be found within the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the Company's Form 10-Q for the third fiscal quarter ended April 30, 2018, which was filed today with the Securities and Exchange Commission. The following are segment highlights, all of which is as of, or for the three month period ended April 30, 2018, as compared to the three month period ended April 30, 2017, unless otherwise noted:

Mountain Segment

  • Total lift revenue increased $33.1 million, or 7.9%, to $452.7 million, primarily due to strong North American pass sales growth for the 2017/2018 North American ski season and incremental operations of Stowe.
  • Ski school revenue increased $9.5 million, or 10.4%, and dining revenue increased $5.1 million, or 7.7%. These increases were the result of increased revenue at our Colorado resorts and at Whistler Blackcomb, as well as incremental revenue from Stowe.
  • Retail/rental revenue increased $2.1 million, or 2.0%, primarily due to incremental revenue from Stowe and an increase in revenue at Whistler Blackcomb, partially offset by decreased revenue at stores proximate to our western U.S. resorts and other city stores.
  • Operating expense increased $23.5 million, or 6.9%, which was primarily attributable to the inclusion of incremental operating expenses from Stowe.
  • Mountain Reported EBITDA increased $28.0 million, or 7.3%.
  • Mountain Reported EBITDA includes $3.8 million of stock-based compensation expense compared to $3.6 million in the same period in the prior year. Additionally, we recorded $3.5 million of acquisition and integration related expenses compared to $2.3 million of acquisition and integration related expenses in the same period in the prior year.

Lodging Segment

  • Lodging segment net revenue (excluding payroll cost reimbursements) decreased $0.1 million, or 0.2%.
  • Occupancy increased 0.4 percentage points and Average Daily Rate ("ADR") was flat at the Company's owned hotels and managed condominiums.
  • Lodging Reported EBITDA decreased $0.2 million, or 2.1%.
  • Lodging Reported EBITDA includes $0.8 million of stock-based compensation expense for the both the three months ended April 30, 2018 and 2017.

Resort - Combination of Mountain and Lodging Segments

  • Resort net revenue increased $51.6 million, or 6.5%, to $841.4 million primarily due to strong North American pass sales growth for the 2017/2018 North American ski season and the incremental operations of Stowe.
  • Resort Reported EBITDA was $419.7 million, an increase of $27.7 million, or 7.1%. Results included $3.5 million of acquisition and integration related expenses compared to $2.3 million of acquisition and integration related expenses in the same period in the prior year.

Real Estate Segment

  • Real Estate segment net revenue decreased $1.7 million, or 35.5%. Real Estate segment operating expense for the three months ended April 30, 2018, includes the recognition of a $5.5 million benefit of non-cash income in the current period related to a legal settlement in fiscal 2015 for which cash proceeds were received and established as a liability for estimated future remediation costs of a construction development. All known items have been remediated and, based on continued monitoring, the Company has concluded that the need for further remediation is remote.
  • Net Real Estate Cash Flow of $2.8 million, which includes a $4.3 million contribution to the new Town of Vail public parking structure that was paid during the three months ended April 30, 2018, was flat to the same period in the prior year.
  • Real Estate Reported EBITDA increased $8.7 million, or 175.5%.

Total Performance

  • Total net revenue increased $49.9 million, or 6.3%, to $844.5 million.
  • Net income attributable to Vail Resorts, Inc. was $256.3 million, or $6.17 per diluted share, for the third quarter of fiscal 2018 compared to net income attributable to Vail Resorts, Inc. of $181.1 million, or $4.40 per diluted share, in the third fiscal quarter of the prior year.

Return of Capital

The Company declared a quarterly cash dividend of $1.47 per share of Vail Resorts common stock that will be payable on July 12, 2018, to shareholders of record on June 27, 2018. Additionally, a Canadian dollar equivalent dividend on the exchangeable shares of Whistler Blackcomb will be payable on July 12, 2018, to exchangeable shareholders of record on June 27, 2018. The exchangeable shares were issued to certain Canadian persons in connection with our acquisition of Whistler Blackcomb. In the third quarter of fiscal 2018, the Company repurchased 115,422 shares at an average price of $223.51 for a total of $25.8 million.

Season Pass Sales

Commenting on the Company's season pass sales for the upcoming 2018/2019 North American ski season, Katz said, "We are very pleased with the results for our season pass sales to date. Excluding sales of our Military Epic pass products, pass sales through May 29, 2018 for the upcoming 2018/2019 North American ski season increased approximately 12% in units and approximately 19% in sales dollars, as compared to the prior year period through May 30, 2017. Our spring pass sales included strong growth across nearly all markets, with continued strong performance among our destination guests in the U.S. and internationally. We had particularly strong pass sales in Whistler Blackcomb's regional market, with solid growth in Colorado and Tahoe, despite the challenging conditions experienced throughout the season in those regions. As a result of the strength of our network and the new resort partnerships we entered into, our premium Epic Pass has been the fastest growing product among all of our pass products this year. In addition to all of these results, we also saw very strong sales of our new Military Epic Pass, with huge enthusiasm and engagement from current and past members of the armed forces. We saw significant Military Epic Pass sales to new guests, as well as to guests who had previously purchased one of our season pass products. We are still in the processes of verifying our new Military Epic Pass sales and will be releasing additional information on those results in the fall. Whistler Blackcomb pass products are included in both current and prior year, adjusted to eliminate the impact of foreign currency by applying current period exchange rates to the prior period. It is important to note that a portion of our spring growth includes passholders who purchased 2017/18 North American ski season passes last fall."

Regarding Epic Australia Pass sales, Katz commented, "Perisher's 2018 ski season kicks off this weekend and we are very pleased with ongoing sales of the Epic Australia Pass, which end on June 12, 2018, and are up 19% in units through June 3, 2018, as compared to the prior year period through June 4, 2017. Epic Australia Pass sales have benefited from the addition of Hakuba Valley in Japan under a long-term pass alliance, which is an extremely popular option with Australian skiers and snowboarders."

North American Summer Business

Commenting on North American summer business, Katz said, "With the ski season behind us we are very excited to welcome summer visitors to our resorts, including Whistler Blackcomb, which has a full calendar of incredible events and some of the best mountain biking on the planet. At Vail, Heavenly and Breckenridge, Epic Discovery summer operations will begin in the coming weeks. Our Epic Discovery guests will have the opportunity to enjoy a great lineup of activities for the whole family, including experiential learning exhibits in a high alpine environment, ropes courses, zip lines, summer tubing and alpine coasters, including the return of the mountain coaster at Heavenly."

Updated Outlook

  • Net income attributable to Vail Resorts, Inc. is expected to be between $360 million and $381 million in fiscal 2018.
  • Resort Reported EBITDA is expected to be between $612 million and $622 million for fiscal 2018, which is predicated on current Canadian and Australian foreign exchange rates and includes an estimated $7.0 million of acquisition and integration related expenses specific to Triple Peaks and Stevens Pass and an estimated $3.2 million of integration related expenses specific to Whistler Blackcomb and Stowe. The updated outlook for fiscal year 2018 does not include any estimate for the closing costs, including transfer taxes, or operating results of the Triple Peaks and Stevens Pass acquisitions as the transactions remain subject to closing, which is expected to occur this summer.
  • Resort EBITDA Margin is expected to be approximately 30.7% in fiscal 2018, at the midpoint of our guidance range.
  • Fiscal 2018 Real Estate Reported EBITDA is expected to be between $0 and $2 million.

The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2018, 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 2018.

 

Fiscal 2018 Guidance

(In thousands)

For the Year Ending

July 31, 2018 (6)

Low End

Range

High End

Range

Mountain Reported EBITDA (1)

$

586,000

$

596,000

Lodging Reported EBITDA (2)

25,000

27,000

Resort Reported EBITDA (3)

612,000

622,000

Real Estate Reported EBITDA

2,000

Total Reported EBITDA

612,000

624,000

Depreciation and amortization

(205,000)

(201,000)

Interest expense, net

(64,000)

(61,000)

Other (4)

(5,100)

(3,600)

Income before benefit from income taxes

337,900

358,400

Benefit from income taxes (5)

45,100

41,600

Net income

383,000

400,000

Net income attributable to noncontrolling interests

(23,000)

(19,000)

Net income attributable to Vail Resorts, Inc.

$

360,000

$

381,000

 

 

(1) Mountain Reported EBITDA includes an estimated $7.0 million of acquisition and integration related expenses specific to Triple Peaks and Stevens Pass and an estimated $3.2 million of integration related expenses specific to Whistler Blackcomb and Stowe. Mountain Reported EBITDA also includes approximately $16 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) Our guidance includes the year-to-date foreign currency actuals through April 30, 2018 related to the remeasurement of the intercompany loan to Whistler Blackcomb to Canadian dollars, the functional currency of Whistler Blackcomb. Our guidance excludes any forward-looking change related to foreign currency gains or losses on the intercompany loans, which such change may be material. Additionally, our guidance includes the year-to-date actual change in the fair value of contingent consideration through April 30, 2018 and certain known changes in the fair value of contingent consideration based solely on the passage of time and resulting impact on present value. Guidance excludes any change based upon, among other things, financial projections including long-term growth rates for Park City, which such change may be material.

(5) The fiscal 2018 benefit from income taxes is impacted by several discrete items. Through the third quarter of fiscal 2018, as a result of the adoption of revised accounting guidance on employee stock compensation, the Company recorded $54.5 million of excess tax benefits primarily resulting from vesting and exercises of equity awards. During the second quarter of fiscal 2018, as a result of the Tax Act, the Company recorded a one-time provisional net tax benefit of approximately $64.6 million related to the remeasurement of deferred tax liabilities and transition tax. Additionally, estimated benefit from income taxes for the remainder of fiscal 2018 is benefiting from a reduction in the U.S. statutory tax rate from 35% to 21%. Our fiscal 2018 estimated benefit from income taxes does not include the impact, if any, of future exercises of employee equity awards, which could have a material impact given that a significant portion of our awards are in-the-money.

(6) Guidance estimates are predicated on an exchange rate of $0.77 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.76 between the Australian Dollar and U.S. Dollar, related to the operations of Perisher in Australia.

About Vail Resorts, Inc. (NYSE: MTN)

Vail Resorts, Inc., through its subsidiaries, is the leading global mountain resort operator. The Company's subsidiaries operate eleven 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; Whistler Blackcomb in British Columbia, Canada; Stowe in Vermont; Perisher in New South Wales, Australia; Wilmot Mountain in Wisconsin; Afton Alps in Minnesota; and Mt. Brighton in Michigan. Vail Resorts owns and/or manages a collection of casually elegant hotels under the RockResorts 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).

 

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,

2018

2017

2018

2017

Net revenue:

Mountain and Lodging services and other

$

700,033

$

653,510

$

1,437,753

$

1,338,836

Mountain and Lodging retail and dining

141,318

136,251

358,253

349,077

Resort net revenue

841,351

789,761

1,796,006

1,687,913

Real Estate

3,140

4,870

3,910

10,181

Total net revenue

844,491

794,631

1,799,916

1,698,094

Segment operating expense:

Mountain and Lodging operating expense

301,760

281,778

780,539

717,318

Mountain and Lodging retail and dining cost of products sold

54,289

52,673

147,205

142,422

General and administrative

66,181

63,836

194,780

185,802

Resort operating expense

422,230

398,287

1,122,524

1,045,542

Real Estate, net

(597)

9,818

2,301

17,144

Total segment operating expense

421,633

408,105

1,124,825

1,062,686

Other operating (expense) income:

Depreciation and amortization

(54,104)

(50,029)

(154,132)

(140,236)

Gain on sale of real property

515

6,466

Change in estimated fair value of contingent consideration

2,454

(14,500)

2,454

(15,100)

Loss on disposal of fixed assets and other, net

(3,230)

(1,924)

(2,125)

(4,705)

Income from operations

367,978

320,073

521,803

481,833

Mountain equity investment income, net

607

521

1,094

1,510

Investment income and other, net

736

210

1,516

5,881

Foreign currency loss on intercompany loans

(9,502)

(9,065)

(6,511)

(3,899)

Interest expense, net

(15,648)

(14,248)

(46,795)

(40,426)

Income before (provision) benefit from income taxes

344,171

297,491

471,107

444,899

(Provision) benefit from income taxes

(71,896)

(100,635)

17,914

(151,933)

Net income

272,275

196,856

489,021

292,966

Net income attributable to noncontrolling interests

(16,023)

(15,749)

(25,463)

(25,267)

Net income attributable to Vail Resorts, Inc.

$

256,252

$

181,107

$

463,558

$

267,699

Per share amounts:

Basic net income per share attributable to Vail Resorts, Inc.

$

6.34

$

4.52

$

11.48

$

6.87

Diluted net income per share attributable to Vail Resorts, Inc.

$

6.17

$

4.40

$

11.13

$

6.68

Cash dividends declared per share

$

1.47

$

1.053

$

3.576

$

2.673

Weighted average shares outstanding:

Basic

40,438

40,068

40,374

38,972

Diluted

41,545

41,181

41,641

40,069

 

 

 

 

Vail Resorts, Inc.

Consolidated Condensed Statements of Operations - Other Data

(In thousands)

(Unaudited)

Three Months Ended

April 30,

Nine Months Ended

April 30,

2018

2017

2018

2017

Other Data:

Mountain Reported EBITDA

$

409,253

$

381,291

$

656,078

$

623,654

Lodging Reported EBITDA

10,475

10,704

18,498

20,227

Resort Reported EBITDA

419,728

391,995

674,576

643,881

Real Estate Reported EBITDA

3,737

(4,948)

2,124

(497)

Total Reported EBITDA

$

423,465

$

387,047

$

676,700

$

643,384

Mountain stock-based compensation

$

3,827

$

3,592

$

11,613

$

11,139

Lodging stock-based compensation

773

781

2,383

2,387

Resort stock-based compensation

4,600

4,373

13,996

13,526

Real Estate stock-based compensation

44

64

60

62

Total stock-based compensation

$

4,644

$

4,437

$

14,056

$

13,588

 

Vail Resorts, Inc.

Mountain Segment Operating Results

(In thousands, except Effective Ticket Price ("ETP"))

(Unaudited)

Three Months Ended

April 30,

Percentage

Increase

Nine Months Ended

April 30,

Percentage

Increase

2018

2017

(Decrease)

2018

2017

(Decrease)

Net Mountain revenue:

Lift

$

452,723

$

419,647

7.9

%

$

860,103

$

799,324

7.6

%

Ski school

101,213

91,704

10.4

%

185,767

173,674

7.0

%

Dining

70,678

65,618

7.7

%

142,890

133,352

7.2

%

Retail/rental

104,162

102,104

2.0

%

265,015

261,816

1.2

%

Other

43,748

42,087

3.9

%

137,776

117,860

16.9

%

Total Mountain net revenue

772,524

721,160

7.1

%

1,591,551

1,486,026

7.1

%

Mountain operating expense:

Labor and labor-related benefits

147,722

139,811

5.7

%

365,618

334,024

9.5

%

Retail cost of sales

34,944

34,875

0.2

%

98,425

98,263

0.2

%

Resort related fees

46,021

41,910

9.8

%

83,404

78,976

5.6

%

General and administrative

56,473

53,988

4.6

%

165,406

156,442

5.7

%

Other

78,718

69,806

12.8

%

223,714

196,177

14.0

%

Total Mountain operating expense

363,878

340,390

6.9

%

936,567

863,882

8.4

%

Mountain equity investment income, net

607

521

16.5

%

1,094

1,510

(27.5)

%

Mountain Reported EBITDA

$

409,253

$

381,291

7.3

%

$

656,078

$

623,654

5.2

%

Total skier visits

6,283

5,907

6.4

%

11,914

11,635

2.4

%

ETP

$

72.06

$

71.04

1.4

%

$

72.19

$

68.70

5.1

%

 

Vail Resorts, Inc.

Lodging Operating Results

(In thousands, except ADR and Revenue per Available Room ("RevPAR"))

(Unaudited)

Three Months Ended

April 30,

Percentage

Increase

Nine Months Ended

April 30,

Percentage

Increase

2018

2017

(Decrease)

2018

2017

(Decrease)

Lodging net revenue:

Owned hotel rooms

$

12,518

$

12,494

0.2

%

$

43,506

$

42,559

2.2

%

Managed condominium rooms

24,604

23,907

2.9

%

58,133

55,417

4.9

%

Dining

8,660

9,324

(7.1)

%

32,409

33,384

(2.9)

%

Transportation

8,164

8,611

(5.2)

%

18,177

19,428

(6.4)

%

Golf

%

8,903

8,921

(0.2)

%

Other

11,074

10,820

2.3

%

32,626

31,806

2.6

%

65,020

65,156

(0.2)

%

193,754

191,515

1.2

%

Payroll cost reimbursements

3,807

3,445

10.5

%

10,701

10,372

3.2

%

Total Lodging net revenue

68,827

68,601

0.3

%

204,455

201,887

1.3

%

Lodging operating expense:

Labor and labor-related benefits

27,318

27,204

0.4

%

86,966

84,515

2.9

%

General and administrative

9,708

9,848

(1.4)

%

29,374

29,360

%

Other

17,519

17,400

0.7

%

58,916

57,413

2.6

%

54,545

54,452

0.2

%

175,256

171,288

2.3

%

Reimbursed payroll costs

3,807

3,445

10.5

%

10,701

10,372

3.2

%

Total Lodging operating expense

58,352

57,897

0.8

%

185,957

181,660

2.4

%

Lodging Reported EBITDA

$

10,475

$

10,704

(2.1)

%

$

18,498

$

20,227

(8.5)

%

Owned hotel statistics:

ADR

$

291.94

$

294.75

(1.0)

%

$

257.27

$

254.29

1.2

%

RevPAR

$

198.97

$

200.94

(1.0)

%

$

175.73

$

168.45

4.3

%

Managed condominium statistics:

ADR

$

428.57

$

428.83

(0.1)

%

$

369.54

$

382.35

(3.4)

%

RevPAR

$

185.54

$

183.08

1.3

%

$

135.12

$

134.38

0.6

%

Owned hotel and managed condominium statistics (combined):

ADR

$

389.90

$

389.94

%

$

327.86

$

332.33

(1.3)

%

RevPAR

$

188.23

$

186.72

0.8

%

$

144.87

$

143.03

1.3

%

 

Key Balance Sheet Data

(In thousands)

(Unaudited)

As of April 30,

2018

2017

Real estate held for sale and investment

$

99,623

$

108,217

Total Vail Resorts, Inc. stockholders' equity

$

1,770,673

$

1,576,740

Long-term debt, net

$

1,078,005

$

1,168,210

Long-term debt due within one year

38,444

38,386

Total debt

1,116,449

1,206,596

Less: cash and cash equivalents

181,597

195,818

Net debt

$

934,852

$

1,010,778

Reconciliation of Measures of Segment Profitability and 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, 2018 and 2017.

 

(In thousands)

(Unaudited)

(In thousands)

(Unaudited)

Three Months Ended April 30,

Nine Months Ended April 30,

2018

2017

2018

2017

Mountain Reported EBITDA

$

409,253

$

381,291

$

656,078

$

623,654

Lodging Reported EBITDA

10,475

10,704

18,498

20,227

Resort Reported EBITDA*

419,728

391,995

674,576

643,881

Real Estate Reported EBITDA

3,737

(4,948)

2,124

(497)

Total Reported EBITDA

423,465

387,047

676,700

643,384

Depreciation and amortization

(54,104)

(50,029)

(154,132)

(140,236)

Loss on disposal of fixed assets and other, net

(3,230)

(1,924)

(2,125)

(4,705)

Change in estimated fair value of contingent consideration

2,454

(14,500)

2,454

(15,100)

Investment income and other, net

736

210

1,516

5,881

Foreign currency loss on intercompany loans

(9,502)

(9,065)

(6,511)

(3,899)

Interest expense, net

(15,648)

(14,248)

(46,795)

(40,426)

Income before (provision) benefit from income taxes

344,171

297,491

471,107

444,899

(Provision) benefit from income taxes

(71,896)

(100,635)

17,914

(151,933)

Net income

272,275

196,856

489,021

292,966

Net income attributable to noncontrolling interests

(16,023)

(15,749)

(25,463)

(25,267)

Net income attributable to Vail Resorts, Inc.

$

256,252

$

181,107

$

463,558

$

267,699

 

The following table reconciles Resort Net Revenue to Resort EBITDA Margin for the three months ended April 30, 2018 and 2017.

 

(In thousands)

(Unaudited)

Three Months Ended

April 30, 2018

(In thousands)

(Unaudited)

Three Months Ended

April 30, 2017

Resort net revenue*

$

841,351

$

789,761

Resort Reported EBITDA*

$

419,728

$

391,995

Resort EBITDA margin

49.9

%

49.6

%

 

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, 2018.

 

(In thousands)

(Unaudited)

Twelve Months Ended April 30,

2018

Mountain Reported EBITDA

$

598,762

Lodging Reported EBITDA

25,358

Resort Reported EBITDA*

624,120

Real Estate Reported EBITDA

2,222

Total Reported EBITDA

626,342

Depreciation and amortization

(203,053)

Loss on disposal of fixed assets and other, net

(3,850)

Change in estimated fair value of contingent consideration

1,254

Investment income, net

1,749

Foreign currency gain on intercompany loans

12,673

Interest expense, net

(60,458)

Income before benefit from income taxes

374,657

Benefit from income taxes

53,116

Net income

427,773

Net income attributable to noncontrolling interests

(21,361)

Net income attributable to Vail Resorts, Inc.

$

406,412

 

The following table reconciles Net Debt to long-term debt, net and the calculation of Net Debt to Total Reported EBITDA for the twelve months ended April 30, 2018.

 

The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three and nine months ended April 30, 2018 and 2017.

 

(In thousands)

(Unaudited)

Three Months Ended

April 30,

(In thousands)

(Unaudited)

Nine Months Ended

April,

2018

2017

2018

2017

Real Estate Reported EBITDA

$

3,737

$

(4,948)

$

2,124

$

(497)

Non-cash Real Estate cost of sales

3,271

3,814

3,750

8,017

Non-cash Real Estate stock-based compensation

44

65

60

62

One-time charge for Real Estate contingency

(4,300)

4,300

(4,300)

4,300

Change in real estate deposits and recovery of previously incurred project costs/land basis less investments in real estate

(1)

(416)

(242)

1,404

Net Real Estate Cash Flow

$

2,751

$

2,815

$

1,392

$

13,286

 



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