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Vail Resorts Reports Fiscal 2017 Fourth Quarter and Full Year Results and Provides Fiscal 2018 Outlook

BROOMFIELD, Colo., Sept. 28, 2017 /PRNewswire/ -- Vail Resorts, Inc. (NYSE:  MTN) today reported results for its fourth quarter and fiscal year ended July 31, 2017 and provided its outlook for the fiscal year ending July 31, 2018.

Highlights

Commenting on the Company's fiscal 2017 results, Rob Katz, Chief Executive Officer, said, "We achieved another year of record-breaking results with strong growth across our business. We are very pleased to complete the year with Resort Reported EBITDA of $593.4 million, which included $10.8 million of acquisition and integration related expenses. Our results were driven by our world-class network, the acquisition of Whistler Blackcomb and strong results across our resort locations. Our season pass program continued to drive both growth and stability with season pass revenue increasing 32.9% compared to the prior year, including Whistler Blackcomb results in fiscal 2017. Resort Reported EBITDA in fiscal 2017 increased $41.1 million, or 9.1%, compared to the prior year, excluding acquisition and integration related expenses and results from the Inn at Keystone in both periods, Whistler Blackcomb and Stowe operations in fiscal 2017, and the one-time $3.5 million fee associated with the termination of the management agreement for Half Moon Resort in Jamaica (the "Half Moon termination fee") in fiscal 2016.

"This year's results highlight the positive impact of our expanding geographic diversification, the stability provided by our growing pass program and the success of our guest-focused marketing efforts. Our U.S. resorts delivered another year of strong performance.  In Park City, we experienced a double-digit EBITDA growth rate as our investment to create the largest ski resort in the U.S. continues to generate excitement among skiers and drive strong yield growth. Our Colorado resorts achieved incremental revenue and EBITDA growth over the record prior year, despite less favorable conditions that impacted visitation, particularly in the early part of the season, and the late timing of the Easter holiday. Tahoe also experienced significant growth, achieving record revenues in all lines of business as the region benefited from another year of good conditions. In its first year as part of Vail Resorts, Whistler Blackcomb delivered outstanding results that were well above our expectations, benefiting from excellent conditions throughout the season and a low Canadian dollar relative to the U.S. dollar driving significant destination growth from U.S. and other international guests. Our U.S. summer business continued to grow with the launch of Epic Discovery at Breckenridge this summer although results in the fourth quarter of fiscal 2017 were below expectations, primarily as a result of a delayed opening for Breckenridge's new activities due to late snowfall and the Heavenly Coaster being closed this summer due to damage from the significant snowfall in Tahoe this past winter.  As our summer business continues to mature, we expect to continue improving and developing our operational consistency and our pricing and promotion to make the most of the already existing summer visitation at our resorts. At Perisher, fiscal 2017 results were in line with expectations as the current ski season got off to a slower start in June due to poor conditions but rebounded in July, supported by continued strong pass sales and growth in guest spending. Finally, we continue to execute our strategy with a focus on disciplined cost management, which played a critical part in achieving Resort EBITDA Margin for the year of 31.4%, a 270 basis point expansion compared to fiscal 2016."

Katz added, "With a strong high-end consumer, we are continuing to leverage our growing network of resorts and sophisticated marketing strategies to drive guest spending across our Mountain segment. For fiscal 2017, total Mountain net revenue increased 23.5% to $1.6 billion. Total skier visits, including a full season of Whistler Blackcomb results, increased 20.1%, while total visitation at our U.S. resorts declined 5.4%, primarily as a result of the poor early season conditions in Colorado and the late timing of the Easter holiday. Total Effective Ticket Price ("ETP") increased 3.6%, driven by season pass and lift ticket price increases across our resorts and lower visitation per pass but partially offset by the inclusion of Whistler Blackcomb's ETP in results in fiscal 2017 which is lower on a U.S. dollar basis than the Company-wide average. Total ETP, excluding Whistler Blackcomb, increased 11.4%. Our ancillary businesses also experienced growth with ski school, dining and retail/rental revenue, up 24.1%, 24.4% and 21.7%, respectively, compared to the prior year. Excluding results from Whistler Blackcomb, ski school, dining and retail/rental revenues were up 2.7%, 0.6% and 1.6%, respectively, as yield growth was largely offset by the decline in U.S. resort visitation."

Regarding Lodging, Katz said, "Fiscal 2017 Lodging results were impacted by less favorable conditions in Colorado during the ski season compared to the prior year, as well as the sale of the Inn at Keystone in November 2016. Revenue (excluding payroll cost reimbursements) increased 0.8% and revenue per available room ("RevPAR") increased 4.4% compared to the prior year, while Lodging Reported EBITDA declined 3.8% compared to fiscal 2016. Excluding the results from the Inn at Keystone in both periods, the Half Moon termination fee in the prior year and Lodging results from Whistler Blackcomb in fiscal 2017, Lodging Reported EBITDA grew 9.2%, compared to the prior year."

Turning to Real Estate, Katz commented, "We generated $18.5 million of Net Real Estate Cash Flow in fiscal 2017. During fiscal 2017, we closed on the sale of a land parcel at the base of Breckenridge for $9.3 million as well as four units at Ritz-Carlton Residences, Vail, and two units at One Ski Hill Place in Breckenridge, representing the last of our condominium inventory. As of July 31, 2017, we had approximately $103.4 million of real estate held for sale and investment associated with land parcels at our resorts."

Katz continued, "Our balance sheet continues to be very strong. We ended the fiscal year with $117.4 million of cash on hand, $50.0 million of borrowings under the revolver portion of our senior credit facility and total long-term debt, net (including long-term debt due within one year) of $1,272.4 million. As of July 31, 2017, we had available borrowing capacity under the revolver component of our Vail Holdings, Inc. credit facility of $280.2 million. In addition, we had $126.7 million available under the revolver component of our Whistler Blackcomb credit facility. Our Net Debt was 1.9 times trailing twelve months Total Reported EBITDA, which includes $328.8 million of long-term capital lease obligations associated with the Canyons transaction. 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 $1.053 per share of common stock and will be payable on October 27, 2017 to shareholders of record on October 10, 2017."

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-K for the fiscal year ended July 31, 2017 filed today with the Securities and Exchange Commission. The following are segment highlights:

Mountain Segment

Lodging Segment

Resort - Combination of Mountain and Lodging Segments

Real Estate Segment

Total Performance

Season Pass Sales

Commenting on season pass sales, Katz said, "We are extremely pleased with our season pass sales to date. Through September 24, 2017, North American ski season pass sales increased approximately 17% in units and 23% in sales dollars, compared to the prior year period ended September 25, 2016. We saw a significant acceleration in our season pass sales (excluding Whistler Blackcomb only pass products) across our destination and local products through our important Labor Day deadline.  We believe this growth continues to be driven by our increasingly sophisticated and targeted marketing efforts to move destination guests into our season pass products, the full inclusion of Whistler Blackcomb and Stowe on the Epic Pass and Epic Local Pass for the 2017/2018 ski season, as well as strong results from guests in Northern California and the Pacific Northwest following great conditions in the 2016/2017 ski season. We also believe we are continuing to move people to purchase their season pass earlier in the selling period.  Additionally, we saw a significant increase in Whistler Blackcomb pass products, in large part due to an earlier price deadline than Whistler Blackcomb has had in the past. With the significant growth already achieved, we do expect our percentage growth rate for the remainder of the selling period to be more modest, resulting in a lower overall percentage growth rate for the year. Whistler Blackcomb and Stowe pass products are included in both current and prior year periods, with the exception of Whistler Blackcomb one and three day EDGE cards, the vast majority of which were sold after the beginning of the ski season and will not be offered for the 2017/2018 ski season. Whistler Blackcomb pass sales are adjusted to eliminate the impact of foreign currency by applying the current period exchange rates to the prior period."

Guidance

Commenting on guidance for fiscal 2018, Katz said, "Net income attributable to Vail Resorts, Inc. is expected to be between $234 million and $272 million in fiscal 2018. We estimate Resort Reported EBITDA for fiscal 2018 will be between $652 million and $682 million. Our Resort Reported EBITDA guidance includes the first full fiscal year of operating results for Whistler Blackcomb and Stowe and also includes an estimated $2.6 million of anticipated integration related expenses. Given the very strong performance at Whistler Blackcomb in fiscal 2017, we expect the resort's fiscal 2018 contribution will exceed our initial expectations but the year-over-year growth will be slower due to the outperformance in fiscal 2017.  We do expect to see a rebound in our performance in Colorado, assuming more normal early season conditions, an earlier Easter holiday and more available lodging inventory in both Vail and Breckenridge.  We expect Stowe's fiscal 2018 results to be in line with our previously issued expectations. We expect Resort EBITDA Margin to be approximately 31.9% in fiscal 2018, using the midpoint of the guidance range. This is an estimated 50 basis point increase over fiscal 2017. We estimate fiscal 2018 Real Estate Reported EBITDA to be between negative $8 million and negative $2 million. Net Real Estate Cash Flow is expected to be between $0 million and $10 million, excluding our expected $4.3 million contribution to the Town of Vail parking structure. All of these estimates are predicated on an exchange rate of $0.81 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.80 between the Australian Dollar and U.S. Dollar, related to the operations of Perisher in Australia ."

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)

$

623,000



$

651,000


Lodging Reported EBITDA (2)

26,000



34,000


Resort Reported EBITDA (3)

652,000



682,000


Real Estate Reported EBITDA

(8,000)



(2,000)


Total Reported EBITDA

644,000



680,000


Depreciation and amortization

(200,000)



(194,000)


Interest expense, net

(60,000)



(56,000)


Other (4)

(8,300)



(5,300)


Income before provision for income taxes

375,700



424,700


Provision for income taxes (5)

(119,700)



(134,700)


Net income

$

256,000



$

290,000


Net income attributable to noncontrolling interests

(22,000)



(18,000)


Net income attributable to Vail Resorts, Inc.

$

234,000



$

272,000






(1) Mountain Reported EBITDA 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 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. Separately, the intercompany loan associated with the Whistler Blackcomb transaction requires foreign currency remeasurement 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.


(5) As a result of the adoption of revised accounting guidance related to employee stock compensation during the first quarter of 2018, the provision for income taxes may change materially based on our closing stock price at the time stock compensation awards vest or are exercised.  Based on our current stock price, a significant portion of our outstanding awards are significantly in-the-money and, to the extent exercised, could reduce our provision for income taxes, which is not reflected in our Fiscal 2018 guidance.


(6) Guidance estimates are predicated on an exchange rate of $0.81 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.80 between the Australian Dollar and U.S. Dollar, related to the operations of Perisher in Australia.

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 by dialing (866) 548-4713 (U.S. and Canada) or (323) 794-2093 (international). A replay of the conference call will be available two hours following the conclusion of the conference call through October 12, 2017, 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 9181655. 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 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). 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 within the meaning of the federal securities laws, including our expectations regarding our fiscal 2018 performance; including our expected Resort Reported EBITDA, expected expenses associated with acquisition and integration related activities; our expectations regarding Whistler Blackcomb year-over-year growth, Stowe results, and Colorado performance; Resort EBITDA margin; Real Estate Reported EBITDA; Net Real Estate Cash Flow; net income attributable to Vail Resorts, Inc.; trends in consumer spending and pass sales; exchange rates; the payment of dividends; and the effects of our marketing and season pass sales efforts. 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 the impact of natural disasters; willingness of our guests to travel due to terrorism, the uncertainty of military conflicts or outbreaks of contagious diseases, the cost and availability of travel options and changing consumer preferences; the seasonality of our business combined with adverse events that occur during our peak operating periods; 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 a disruption in our water supply that would impact our snowmaking capabilities and operations; risks related to federal, state, local and foreign government laws, rules and regulations; risks related to our reliance on information technology, including our failure to maintain the integrity of our customer or employee data; our ability to hire and retain a sufficient seasonal workforce; risks related to our workforce, including increased labor costs; loss of key personnel; adverse consequences of current or future legal claims; a deterioration in the quality or reputation of our brands, including our ability to protect our intellectual property and the risk of accidents at our mountain resorts; our ability to successfully integrate acquired businesses or that acquired businesses may fail to perform in accordance with expectations, including Whistler Blackcomb and Stowe or future acquisitions; our ability to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, with respect to acquired businesses; risks associated with international operations; fluctuations in foreign currency exchange rates, particularly the Canadian dollar and Australian dollar; changes in accounting estimates and judgments, accounting principles, policies or guidelines or adverse determinations by taxing authorities; 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, 2017, which was filed on September 28, 2017.

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 Segment and Non-GAAP Financial Measures

When reporting financial results, we use the terms Resort Reported EBITDA, Total Reported EBITDA, Resort EBITDA Margin, 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"). Resort Reported EBITDA, Total 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. In addition, we report segment Reported EBITDA (i.e. Mountain, Lodging and Real Estate), the measure of segment profit or loss required to be disclosed in accordance with GAAP. Accordingly, these measures may not be comparable to similarly-titled measures of other companies.

Reported EBITDA (and its counterpart for each of our segments) has been presented herein as a measure 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 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. 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 measures of segment profitability and non-GAAP financial measures to the most directly comparable GAAP financial measures.

Vail Resorts, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)




Three Months Ended July 31,


Twelve Months Ended July 31,



2017 (1)


2016 (1)


2017 (1)


2016 (1)

Net revenue:









Mountain and Lodging services and other


$

138,818



$

117,438



$

1,477,654



$

1,228,716


Mountain and Lodging retail and dining


63,569



55,084



412,646



350,442


Resort net revenue


202,387



172,522



1,890,300



1,579,158


Real estate


6,737



7,362



16,918



22,128


Total net revenue


209,124



179,884



1,907,218



1,601,286


Segment operating expense:









Mountain and Lodging operating expense


173,817



150,666



891,135



775,590


Mountain and Lodging retail and dining cost of products sold


28,402



24,902



170,824



143,276


General and administrative


50,997



46,737



236,799



208,991


Resort operating expense


253,216



222,305



1,298,758



1,127,857


Real estate


6,939



7,596



24,083



24,639


Total segment operating expense


260,155



229,901



1,322,841



1,152,496


Other operating (expense) income:









Depreciation and amortization


(48,921)



(40,775)



(189,157)



(161,488)


Gain on sale of real property


300



3,485



6,766



5,295


Change in fair value of contingent consideration


(1,200)



(4,200)



(16,300)



(4,200)


Loss on disposal of fixed assets and other, net


(1,725)



(2,269)



(6,430)



(5,418)


(Loss) income from operations


(102,577)



(93,776)



379,256



282,979


Mountain equity investment income, net


373



291



1,883



1,283


Investment income and other, net


233



214



6,114



723


Foreign currency gain on intercompany loans


19,184





15,285




Interest expense, net


(13,663)



(10,461)



(54,089)



(42,366)


(Loss) income before provision for income taxes


(96,450)



(103,732)



348,449



242,619


Benefit (provision) for income taxes


35,202



38,448



(116,731)



(93,165)


Net (loss) income


(61,248)



(65,284)



231,718



149,454


Net loss (income) attributable to noncontrolling interests


4,102



11



(21,165)



300


Net (loss) income attributable to Vail Resorts, Inc.


$

(57,146)



$

(65,273)



$

210,553



$

149,754


Per share amounts:









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


$

(1.43)



$

(1.80)



$

5.36



$

4.13


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


$

(1.43)



$

(1.80)



$

5.22



$

4.01


Cash dividends declared per share


$

1.053



$

0.81



$

3.726



$

2.865


Weighted average shares outstanding:









Basic


40,079



36,170



39,251



36,276


Diluted


40,079



36,170



40,366



37,312



(1) The Consolidated Statements of Operations for the three and twelve months ended July 31, 2016 have been revised to separately disclose revenues and costs from retail and dining operations, as well as general and administrative costs. Retail and dining revenues were previously included within Mountain and Lodging revenues, and the related costs were previously included in Mountain and Lodging operating costs. Management considers the change in presentation of our Consolidated Statement of Operations to be immaterial to all periods presented. There is no change to previously reported total net revenue, operating expense, income from operations, net income attributable to Vail Resorts, Inc., per share amounts or segment results.


Vail Resorts, Inc.

Consolidated Statements of Operations - Other Data

(In thousands)

(Unaudited)


Other Data:









Mountain Reported EBITDA


$

(57,316)



$

(53,805)



$

566,338



$

424,415


Lodging Reported EBITDA


6,860



4,313



27,087



28,169


Resort Reported EBITDA


(50,456)



(49,492)



593,425



452,584


Real Estate Reported EBITDA


98



3,251



(399)



2,784


Total Reported EBITDA


$

(50,358)



$

(46,241)



$

593,026



$

455,368


Mountain stock-based compensation


$

3,830



$

3,374



$

14,969



$

13,404


Lodging stock-based compensation


828



794



3,215



3,094


Resort stock-based compensation


4,658



4,168



18,184



16,498


Real Estate stock-based compensation


69



192



131



527


Total stock-based compensation


$

4,727



$

4,360



$

18,315



$

17,025


 

Vail Resorts, Inc.

Mountain Segment Operating Results

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

(Unaudited)




Three Months Ended July 31,


Percentage

Increase


Twelve Months Ended July 31,


Percentage

Increase



2017


2016


(Decrease)


2017


2016


(Decrease)

Net Mountain revenue:













Lift


$

19,017



$

15,420



23.3

%


$

818,341



$

658,047



24.4

%

Ski school


4,074



3,546



14.9

%


177,748



143,249



24.1

%

Dining


17,235



12,915



33.4

%


150,587



121,008



24.4

%

Retail/rental


31,612



26,386



19.8

%


293,428



241,134



21.7

%

Other


53,822



39,727



35.5

%


171,682



141,166



21.6

%

Total Mountain net revenue


125,760



97,994



28.3

%


1,611,786



1,304,604



23.5

%

Mountain operating expense:













Labor and labor-related benefits


68,996



54,898



25.7

%


403,020



338,250



19.1

%

Retail cost of sales


14,639



13,082



11.9

%


112,902



93,946



20.2

%

Resort related fees


4,527



2,417



87.3

%


83,503



68,890



21.2

%

General and administrative


43,140



38,422



12.3

%


199,582



173,640



14.9

%

Other


52,147



43,271



20.5

%


248,324



206,746



20.1

%

Total Mountain operating expense


183,449



152,090



20.6

%


1,047,331



881,472



18.8

%

Mountain equity investment income, net


373



291



28.2

%


1,883



1,283



46.8

%

Mountain Reported EBITDA


$

(57,316)



$

(53,805)



6.5

%


$

566,338



$

424,415



33.4

%














Total skier visits


412



327



26.0

%


12,047



10,032



20.1

%

ETP


$

46.16



$

47.16



(2.1)

%


$

67.93



$

65.59



3.6

%

 

Vail Resorts, Inc.

Lodging Operating Results

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

(Unaudited)




Three Months Ended July 31,


Percentage

Increase


Twelve Months Ended July 31,


Percentage

Increase



2017


2016


(Decrease)


2017


2016


(Decrease)

Lodging net revenue:













Owned hotel rooms


$

21,380



$

20,356



5.0

%


$

63,939



$

63,520



0.7

%

Managed condominium rooms


10,277



9,514



8.0

%


65,694



61,934



6.1

%

Dining


15,065



15,176



(0.7)

%


48,449



49,225



(1.6)

%

Transportation


2,745



2,765



(0.7)

%


22,173



22,205



(0.1)

%

Golf


8,916



8,797



1.4

%


17,837



17,519



1.8

%

Other


14,432



14,824



(2.6)

%


46,238



47,833



(3.3)

%



72,815



71,432



1.9

%


264,330



262,236



0.8

%

Payroll cost reimbursements


3,812



3,096



23.1

%


14,184



12,318



15.1

%

Total Lodging net revenue


76,627



74,528



2.8

%


278,514



274,554



1.4

%

Lodging operating expense:













Labor and labor-related benefits


32,668



31,875



2.5

%


117,183



114,404



2.4

%

General and administrative


7,857



8,315



(5.5)

%


37,217



35,351



5.3

%

Other


25,430



26,929



(5.6)

%


82,843



84,312



(1.7)

%



65,955



67,119



(1.7)

%


237,243



234,067



1.4

%

Reimbursed payroll costs


3,812



3,096



23.1

%


14,184



12,318



15.1

%

Total Lodging operating expense


69,767



70,215



(0.6)

%


251,427



246,385



2.0

%

Lodging Reported EBITDA


$

6,860



$

4,313



59.1

%


$

27,087



$

28,169



(3.8)

%














Owned hotel statistics:













ADR


$

228.05



$

216.28



5.4

%


$

245.31



$

227.27



7.9

%

RevPAR


$

167.48



$

146.83



14.1

%


$

168.14



$

153.13



9.8

%

Managed condominium statistics:













ADR


$

208.24



$

204.46



1.8

%


$

347.64



$

325.38



6.8

%

RevPAR


$

52.13



$

52.18



(0.1)

%


$

113.08



$

109.68



3.1

%

Owned hotel and managed condominium statistics (combined):













ADR


$

219.58



$

211.45



3.8

%


$

302.80



$

280.38



8.0

%

RevPAR


$

88.27



$

85.51



3.2

%


$

127.95



$

122.61



4.4

%

 

Key Balance Sheet Data

(In thousands)

(Unaudited)




As of July 31,



2017


2016

Real estate held for sale and investment


$

103,405



$

111,088


Total Vail Resorts, Inc. stockholders' equity


1,571,156



874,540


Long-term debt


1,234,024



686,909


Long-term debt due within one year


38,397



13,354


Total debt


1,272,421



700,263


Less: cash and cash equivalents


117,389



67,897


Net debt


$

1,155,032



$

632,366


 

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 twelve months ended July 31, 2017 and 2016.



(In thousands)

(Unaudited)


(In thousands)

(Unaudited)



Three Months Ended July 31,


Twelve Months Ended July 31,



2017


2016


2017


2016

Mountain Reported EBITDA


$

(57,316)



$

(53,805)



$

566,338



$

424,415


Lodging Reported EBITDA


6,860



4,313



27,087



28,169


Resort Reported EBITDA*


(50,456)



(49,492)



593,425



452,584


Real Estate Reported EBITDA


98



3,251



(399)



2,784


Total Reported EBITDA


(50,358)



(46,241)



593,026



455,368


Depreciation and amortization


(48,921)



(40,775)



(189,157)



(161,488)


Loss on disposal of fixed assets and other, net


(1,725)



(2,269)



(6,430)



(5,418)


Change in fair value of contingent consideration


(1,200)



(4,200)



(16,300)



(4,200)


Investment income and other, net


233



214



6,114



723


Foreign currency gain on intercompany loans


19,184





15,285




Interest expense, net


(13,663)



(10,461)



(54,089)



(42,366)


(Loss) income before provision for income taxes


(96,450)



(103,732)



348,449



242,619


Benefit (provision) for income taxes


35,202



38,448



(116,731)



(93,165)


Net (loss) income


(61,248)



(65,284)



231,718



149,454


Net loss (income) attributable to noncontrolling interests


4,102



11



(21,165)



300


Net (loss) income attributable to Vail Resorts, Inc.


$

(57,146)



$

(65,273)



$

210,553



$

149,754











* 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 July 31, 2017.


In thousands)

(Unaudited)

(As of July 31, 2017)


Long-term debt

$

1,234,024



Long-term debt due within one year

38,397



Total debt

1,272,421



Less: cash and cash equivalents

117,389



Net debt

$

1,155,032



Net debt to Total Reported EBITDA

1.9


x

The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three and twelve months ended July 31, 2017 and 2016.



(In thousands)

(Unaudited)

Three Months Ended

July 31,


(In thousands)

(Unaudited)

Twelve Months Ended

July 31,



2017


2016


2017


2016

Real Estate Reported EBITDA


$

98



$

3,251



$

(399)



$

2,784


Non-cash Real Estate cost of sales


5,080



5,216



13,097



15,724


Non-cash Real Estate stock-based compensation


68



193



130



527


One-time charge for Real Estate contingency






4,300




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


(81)



628



1,323



2,991


Net Real Estate Cash Flow


$

5,165



$

9,288



$

18,451



$

22,026


The following table reconciles Resort net revenue to Resort EBITDA Margin for fiscal 2018 guidance and fiscal 2017.



(In thousands)

(Unaudited)

Fiscal 2018
Guidance (2)

(In thousands)

(Unaudited)

Fiscal Year Ended 
July 31, 2017

Resort net revenue (1)


$

2,090,000


$

1,890,300


Resort Reported EBITDA (1)


$

667,000


$

593,425


Resort EBITDA margin


31.9

%

31.4

%





(1) Resort represents the sum of Mountain and Lodging


(2) Represents the mid-point range of Guidance


 

Vail Resorts, Inc. logo (PRNewsFoto/Vail Resorts, Inc.)

 

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