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Vail Resorts Reports Fiscal 2017 Second Quarter Results and Increases Quarterly Dividend by 30%

BROOMFIELD, Colo., March 10, 2017 /PRNewswire/ -- Vail Resorts, Inc. (NYSE: MTN) today reported results for the second quarter of fiscal 2017 ended January 31, 2017 and provided the Company's ski season-to-date metrics through March 5, 2017.

Highlights

Commenting on the Company's fiscal 2017 second quarter results, Rob Katz, Chief Executive Officer said, "We are very pleased with our results for the quarter. We had strong results during the holidays and the month of January despite a slower start to the season at our U.S. resorts resulting from below average early season conditions. Including results from Whistler Blackcomb in the second quarter of fiscal 2017, total lift revenue increased 24.5%, driven by a 15.7% growth in visitation and a 7.7% increase in effective ticket price ("ETP") in the second quarter compared to the prior year. We continue to see robust destination guest spending trends which, along with the addition of Whistler Blackcomb, drove a 25.9% increase in ski school revenue and a 21.5% increase in food and beverage revenue compared to the prior year."

"Results from Whistler Blackcomb in the second quarter of fiscal 2017 were stronger than our initial expectations and helped to offset the slower start at our U.S. resorts. The resort has benefited from good conditions throughout the season, a low Canadian dollar versus the U.S. dollar and the outstanding brand and guest experience delivered by the Whistler Blackcomb team. Excluding Whistler Blackcomb operations, total lift revenue increased 7.3% and yields improved in each of our ancillary businesses. Park City continues to deliver the strongest growth among our U.S. resorts with increasing visitation and yields in our second season following the transformational investments to combine Park City and Canyons. Our Colorado resorts delivered results that were in line with their record prior year performance despite the slower start to the season, benefiting from robust guest spending and growth in season pass sales. The Tahoe resorts benefited from significant snow storms that, while creating outstanding conditions for the rest of the season, led to road and resort closures during the month of January, primarily during off-peak periods. While U.S. destination visitation was robust, international visitation to our U.S. resorts was down in the second quarter compared to the prior year impacted by the strong U.S. dollar and a notable decline in Mexican visitation. Whistler Blackcomb continues to see strong international visitation. Our results in the second quarter demonstrate the benefit of our growing geographic diversification and the success of our season pass and destination guest focused marketing strategies."

Regarding the Company's Lodging segment, Katz said, "Our lodging results were positive for the second fiscal quarter but were adversely impacted by the same poor early season conditions as our mountain results. Revenue (excluding payroll cost reimbursements) increased 4.0% compared to the prior year primarily driven by the addition of Whistler Blackcomb."

Katz continued, "Resort Reported EBITDA was $305.2 million for the fiscal quarter, an increase of 26.1% compared to the same period in the prior year. Our Resort EBITDA Margin for the fiscal quarter improved 180 basis points over the prior year as we continue to drive strong flow through from our revenue growth and leverage our scale. Given our performance to date and assuming normal conditions through the remainder of the season, we expect Resort Reported EBITDA for fiscal 2017 to be between $577 million and $597 million."

Regarding the Company's Real Estate segment, Katz said, "During the fiscal quarter, we closed on one condominium unit at The Ritz-Carlton Residences, Vail and the last two condominium units remaining at One Ski Hill Place in Breckenridge, which is now completely sold-out. Net Real Estate Cash Flow for the second quarter of fiscal 2017 was $3.9 million. Since January 31, 2017, we have closed on two additional units at Ritz-Carlton Residences, Vail, with only one unit remaining to be sold."

Regarding capital allocation, Katz said, "We remain confident in the strong cash flow generation and stability of our business model, and we are committed to returning capital to our shareholders. We are pleased to announce that the Board of Directors has approved a 30% increase to our quarterly dividend and declared a quarterly cash dividend on Vail Resorts' common stock of $1.053 per share, payable on April 13, 2017 to stockholders of record on March 29, 2017." Katz added, "Our balance sheet remains very strong. We ended the fiscal quarter with $140.9 million of cash on hand and our Net Debt, including the capitalized Canyons obligation, was 2.2 times trailing twelve months Total Reported EBITDA, though it is important to note that while this ratio includes our outstanding debt as of January 31, 2017, it only includes Whistler Blackcomb's EBITDA results from the date of acquisition."

The Company expects to invest approximately $103 million in its calendar year 2017 capital plan, excluding anticipated investments at Whistler Blackcomb, capital expenditures for U.S. summer related activities and one-time integration capital expenditures at Whistler Blackcomb. The plan includes approximately $65 million of maintenance capital expenditures and a number of high-impact, high ROI discretionary investments. Commenting on the capital plan, Katz said, "At Vail Mountain, we will continue to improve lift capacity at one of the resort's busiest chairlifts by upgrading the Northwoods high speed four person chair (#11) to a new high speed six person chairlift. At Breckenridge, we will be upgrading the Peak 10 Falcon Chair from a four person high speed chair to a six person high speed chair, allowing more guests to experience some of the best intermediate and advanced terrain on the mountain. At Keystone, we will be investing significant capital to continue to enhance the experience at this outstanding family focused resort. We will be upgrading the four person Montezuma chair to a six person high speed chair to improve circulation on the front side of the mountain, and we will be renovating and expanding Labonte's restaurant by 150 indoor seats to increase mountain dining capacity at the fourth most visited resort in the U.S. At Beaver Creek, we will be upgrading the fixed grip two person Drink of Water chair (#5) to a four person high speed chair, increasing the capacity for important beginner and intermediate terrain and, upon completion, all primary chairlifts on Beaver Creek will be high speed. Our capital plan also includes the second phase of a two-year process to revamp our primary websites to a single 'responsive' desktop/mobile platform which will be integrated with our data-based and personalized marketing technology and the first phase of a three year plan to completely revamp and modernize RPOS, the primary software platform for all of our resort operations."

The Company also plans to invest approximately $6 million in calendar year 2017 for Epic Discovery summer activities. This capital will be focused on activity construction at Breckenridge in conjunction with the official launch of Epic Discovery at the resort this summer with more modest spending at Vail and Heavenly.

At Whistler Blackcomb, the Company plans to invest approximately C$23 million (US$17 million) in calendar year 2017 for maintenance and discretionary projects. The plan includes key summer investments for the resort with the expansion of the bike park into the Creekside area, the construction of a signature suspension bridge at the top of Whistler Mountain and other summer amenities that support the already robust summer visitation at the resort. These investments are the first capital projects associated with the Renaissance plan following the renewal of the Master Development Agreements. The Company anticipates that additional spending related to the Renaissance plan will commence in calendar year 2018 and additional details will be provided as the timing of the projects is refined.

Additionally, the Company plans to invest approximately $17 million in capital during calendar year 2017 for the Whistler Blackcomb integration. These investments will allow us to fully integrate Whistler Blackcomb's systems, marketing and operations, including hardware at the resort, to achieve our anticipated synergies and create the streamlined, centralized approach that is consistent across our network for guests and employees.

Stowe Mountain Resort Acquisition

As previously announced on February 21, 2017, the Company entered into an agreement to acquire the mountain operations of Stowe Mountain Resort in Stowe, Vermont from Mt. Mansfield Company, Inc., a wholly owned subsidiary of American International Group, Inc., for a cash purchase price of $50 million, subject to certain adjustments. At closing, the purchase price will be adjusted for certain agreed upon terms, including a reduction (or increase) in the purchase price by the amount that the resort's EBITDA exceeds capital expenditures for the period from November 1, 2016 through closing of the acquisition. Stowe Mountain Resort is expected to generate incremental annual EBITDA in excess of $5 million in Vail Resorts' fiscal year ending July 31, 2018. The transaction is subject to Vermont administrative review. The Company expects the acquisition to close in late spring.

Whistler Blackcomb Master Development Agreements

As previously announced on February 24, 2017, Whistler Blackcomb's Master Development Agreements with the Province of British Columbia have been renewed for a 60-year term and the associated Master Plans have also been approved by the Province.

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 second fiscal quarter ended January 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-to-Date Metrics through March 5, 2017

The Company announced ski season-to-date metrics for the comparative periods from the beginning of the ski season through Sunday, March 5, 2017, and for the prior year period through Sunday, March 6, 2016. The reported ski season metrics are for our North American resorts, adjusted as if Whistler Blackcomb was owned in both periods using comparable exchange rates in each applicable period. The metrics exclude results from Perisher and our urban ski areas in both periods. The following data is interim period data and subject to fiscal quarter end review and adjustments.

Return of Capital

The Company declared a quarterly cash dividend of $1.053 per share of Vail Resorts common stock that will be payable on April 13, 2017 to stockholders of record on March 29, 2017. Additionally, a Canadian dollar equivalent dividend on the exchangeable shares of Whistler Blackcomb Holdings Inc. will be payable on April 13, 2017 to shareholders of record on March 29, 2017. The exchangeable shares were issued to certain Canadian persons in connection with our acquisition of Whistler Blackcomb Holdings Inc.

Outlook

The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2017, 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 2017.

 

Fiscal 2017 Guidance

 

(In thousands)

 

For the Year Ending

 

July 31, 2017 (5)

   

Low End

Range

   

High End

Range

Mountain Reported EBITDA (1)

$

547,000

 

$

565,000

Lodging Reported EBITDA (2)

 

30,000

   

32,000

Resort Reported EBITDA (3)

 

577,000

   

597,000

Real Estate Reported EBITDA

 

2,000

   

6,000

Total Reported EBITDA

 

579,000

   

603,000

Depreciation and amortization

 

(193,000)

   

(187,000)

Loss on disposal of fixed assets and other, net

 

(5,000)

   

(3,000)

Change in fair value of contingent consideration (4)

 

   

Investment income and other, net

 

6,100

   

6,500

Interest expense and other, net

 

(51,000)

   

(47,000)

Income before provision for income taxes

 

336,100

   

372,500

Provision for income taxes

 

(117,100)

   

(129,500)

Net income

$

219,000

 

$

243,000

Net income attributable to noncontrolling interests

 

(23,000)

   

(21,000)

Net income attributable to Vail Resorts, Inc.

$

196,000

 

$

222,000

           

(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 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.

(5) Guidance estimates are predicated on an exchange rate of $0.75 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.77 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 Standard 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) 504-7960 (U.S. and Canada) or (719) 325-2353 (International). A replay of the conference call will be available two hours following the conclusion of the conference call through March 24, 2017, at 12:30 p.m. Eastern Standard Time. To access the replay, dial (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International), pass code 7904086. 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. Vail Resorts' subsidiaries operate ten 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; Perisher in 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, including our expectations regarding the timing of closing of the Stowe Mountain Resort acquisition, the expected incremental annual EBITDA in fiscal 2018 related to Stowe and our fiscal 2017 performance, including Resort Reported EBITDA, Resort EBITDA margin, Real Estate Reported EBITDA and net income attributable to Vail Resorts, Inc. as well as our expectations regarding calendar year 2017 capital plan, capital expenditures for summer related activities and one-time integration expenditures at Whistler Blackcomb. These statements are forward-looking statements within the meaning of 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, 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; 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; 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 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 that acquired businesses may fail to perform in accordance with expectations, including Whistler Blackcomb and Stowe Mountain Resort or future acquisitions; our ability to realize anticipated financial benefits from Park City; 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; 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, 2016, which was filed on September 26, 2016 and the Company's Quarterly Report on Form 10-Q for the quarter ended October 31, 2016, which was filed on December 9, 2016.

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

Statement Concerning Non-GAAP Financial Measures

When reporting financial results, we use the terms Reported EBITDA, Resort EBITDA Margin, Net Debt 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, 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. Accordingly, these measures may not be comparable to similarly-titled measures of other companies.

Reported EBITDA 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 Condensed Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 
   

Three Months Ended January 31,

 

Six Months Ended January 31,

   

2017

 

2016

 

2017

 

2016

Net revenue:

               

Mountain

 

$

654,099

   

$

532,872

   

$

764,866

   

$

633,805

 

Lodging

 

65,884

   

62,807

   

133,286

   

127,093

 

Real estate

 

5,215

   

3,684

   

5,311

   

13,032

 

Total net revenue

 

725,198

   

599,363

   

903,463

   

773,930

 

Segment operating expense:

               

Mountain

 

355,239

   

296,256

   

523,492

   

447,414

 

Lodging

 

59,683

   

57,311

   

123,763

   

118,748

 

Real estate

 

5,841

   

4,617

   

7,326

   

13,958

 

Total segment operating expense

 

420,763

   

358,184

   

654,581

   

580,120

 

Other operating (expense) income:

               

Depreciation and amortization

 

(49,626)

   

(40,541)

   

(90,207)

   

(79,241)

 

Gain on sale of real property

 

   

(1,206)

   

6,466

   

1,791

 

Change in fair value of contingent consideration

 

(300)

   

   

(600)

   

 

Loss on disposal of fixed assets and other, net

 

(2,231)

   

632

   

(2,781)

   

(2,985)

 

Income from operations

 

252,278

   

200,064

   

161,760

   

113,375

 

Mountain equity investment income (loss), net

 

157

   

(61)

   

989

   

781

 

Investment income and other, net

 

1,148

   

161

   

5,671

   

359

 

Interest expense and other, net

 

(9,048)

   

(10,910)

   

(21,012)

   

(21,505)

 

Income before provision for income taxes

 

244,535

   

189,254

   

147,408

   

93,010

 

Provision for income taxes

 

(84,807)

   

(72,383)

   

(51,298)

   

(35,809)

 

Net income

 

159,728

   

116,871

   

96,110

   

57,201

 

Net (income) loss attributable to noncontrolling interests

 

(10,549)

   

111

   

(9,518)

   

194

 

Net income attributable to Vail Resorts, Inc.

 

$

149,179

   

$

116,982

   

$

86,592

   

$

57,395

 

Per share amounts:

               

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

 

$

3.72

   

$

3.23

   

$

2.25

   

$

1.58

 

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

 

$

3.63

   

$

3.14

   

$

2.19

   

$

1.54

 

Cash dividends declared per share

 

$

0.81

   

$

0.6225

   

$

1.62

   

$

1.245

 

Weighted average shares outstanding:

               

Basic

 

40,050

   

36,246

   

38,442

   

36,359

 

Diluted

 

41,107

   

37,256

   

39,529

   

37,358

 

Other Data:

               

Mountain Reported EBITDA

 

$

299,017

   

$

236,555

   

$

242,363

   

$

187,172

 

Lodging Reported EBITDA

 

6,201

   

5,496

   

9,523

   

8,345

 

Resort Reported EBITDA

 

305,218

   

242,051

   

251,886

   

195,517

 

Real Estate Reported EBITDA

 

(626)

   

(301)

   

4,451

   

865

 

Total Reported EBITDA

 

$

304,592

   

$

241,750

   

$

256,337

   

$

196,382

 

Mountain stock-based compensation

 

$

3,691

   

$

3,331

   

$

7,547

   

$

6,711

 

Lodging stock-based compensation

 

817

   

783

   

1,606

   

1,530

 

Resort stock-based compensation

 

4,508

   

4,114

   

9,153

   

8,241

 

Real Estate stock-based compensation

 

66

   

186

   

(2)

   

149

 

Total stock-based compensation

 

$

4,574

   

$

4,300

   

$

9,151

   

$

8,390

 

 

Vail Resorts, Inc.

Mountain Segment Operating Results

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

(Unaudited)

 
   

Three Months Ended January 31,

 

Percentage

Increase

 

Six Months Ended January 31,

 

Percentage

Increase

   

2017

 

2016

 

(Decrease)

 

2017

 

2016

 

(Decrease)

Net Mountain revenue:

                       

Lift

 

$

358,251

   

$

287,685

   

24.5

%

 

$

379,677

   

$

307,838

   

23.3

%

Ski school

 

78,119

   

62,040

   

25.9

%

 

81,970

   

65,424

   

25.3

%

Dining

 

54,366

   

44,738

   

21.5

%

 

67,734

   

57,093

   

18.6

%

Retail/rental

 

123,233

   

102,975

   

19.7

%

 

159,712

   

135,364

   

18.0

%

Other

 

40,130

   

35,434

   

13.3

%

 

75,773

   

68,086

   

11.3

%

Total Mountain net revenue

 

654,099

   

532,872

   

22.7

%

 

764,866

   

633,805

   

20.7

%

Mountain operating expense:

                       

Labor and labor-related benefits

 

136,531

   

$

114,794

   

18.9

%

 

194,213

   

166,593

   

16.6

%

Retail cost of sales

 

44,984

   

38,262

   

17.6

%

 

63,388

   

54,741

   

15.8

%

Resort related fees

 

34,722

   

28,452

   

22.0

%

 

37,066

   

30,344

   

22.2

%

General and administrative

 

60,470

   

50,030

   

20.9

%

 

102,454

   

88,629

   

15.6

%

Other

 

78,532

   

64,718

   

21.3

%

 

126,371

   

107,107

   

18.0

%

Total Mountain operating expense

 

355,239

   

296,256

   

19.9

%

 

523,492

   

$

447,414

   

17.0

%

Mountain equity investment (loss) income, net

 

157

   

(61)

   

357.4

%

 

989

   

781

   

26.6

%

Mountain Reported EBITDA

 

$

299,017

   

$

236,555

   

26.4

%

 

$

242,363

   

$

187,172

   

29.5

%

                         

Total skier visits

 

5,299

   

4,581

   

15.7

%

 

5,728

   

5,016

   

14.2

%

ETP

 

$

67.61

   

$

62.80

   

7.7

%

 

$

66.28

   

$

61.37

   

8.0

%

 

Vail Resorts, Inc.

Lodging Operating Results

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

(Unaudited)

 
   

Three Months Ended January 31,

 

Percentage

Increase

 

Six Months Ended January 31,

 

Percentage

Increase

   

2017

 

2016

 

(Decrease)

 

2017

 

2016

 

(Decrease)

Lodging net revenue:

                       

Owned hotel rooms

 

$

12,002

   

$

12,045

   

(0.4)

%

 

$

30,065

   

$

29,351

   

2.4

%

Managed condominium rooms

 

22,989

   

21,063

   

9.1

%

 

31,510

   

29,310

   

7.5

%

Dining

 

8,723

   

8,841

   

(1.3)

%

 

24,060

   

23,882

   

0.7

%

Transportation

 

8,344

   

8,293

   

0.6

%

 

10,817

   

10,613

   

1.9

%

Golf

 

   

     

nm

 

8,729

   

8,502

   

2.7

%

Other

 

9,976

   

9,425

   

5.8

%

 

21,178

   

19,595

   

8.1

%

   

62,034

   

59,667

   

4.0

%

 

126,359

   

121,253

   

4.2

%

Payroll cost reimbursements

 

3,850

   

3,140

   

22.6

%

 

6,927

   

5,840

   

18.6

%

Total Lodging net revenue

 

65,884

   

62,807

   

4.9

%

 

133,286

   

127,093

   

4.9

%

Lodging operating expense:

                       

Labor and labor-related benefits

 

27,434

   

27,026

   

1.5

%

 

57,311

   

55,721

   

2.9

%

General and administrative

 

10,748

   

9,410

   

14.2

%

 

19,512

   

17,379

   

12.3

%

Other

 

17,651

   

17,735

   

(0.5)

%

 

40,013

   

39,808

   

0.5

%

   

55,833

   

54,171

   

3.1

%

 

116,836

   

112,908

   

3.5

%

Reimbursed payroll costs

 

3,850

   

3,140

   

22.6

%

 

6,927

   

5,840

   

18.6

%

Total Lodging operating expense

 

59,683

   

57,311

   

4.1

%

 

123,763

   

118,748

   

4.2

%

Lodging Reported EBITDA

 

$

6,201

   

$

5,496

   

12.8

%

 

$

9,523

   

$

8,345

   

14.1

%

                         

Owned hotel statistics:

                       

ADR

 

$

289.03

   

$

255.44

   

13.1

%

 

$

240.20

   

$

219.94

   

9.2

%

RevPAR

 

$

181.82

   

$

161.66

   

12.5

%

 

$

157.56

   

$

143.94

   

9.5

%

Managed condominium statistics:

                       

ADR

 

$

442.05

   

$

403.76

   

9.5

%

 

$

350.56

   

$

316.44

   

10.8

%

RevPAR

 

$

167.14

   

$

159.75

   

4.6

%

 

$

109.92

   

$

101.59

   

8.2

%

Owned hotel and managed condominium statistics (combined):

                       

ADR

 

$

395.58

   

$

353.96

   

11.8

%

 

$

301.52

   

$

272.20

   

10.8

%

RevPAR

 

$

170.19

   

$

160.21

   

6.2

%

 

$

123.10

   

$

114.02

   

8.0

%

 

Key Balance Sheet Data

(In thousands)

(Unaudited)

 
   

As of January 31,

   

2017

 

2016

Real estate held for sale and investment

 

$

112,633

   

$

117,999

 

Total Vail Resorts, Inc. stockholders' equity

 

1,477,903

   

840,607

 

Long-term debt

 

1,216,721

   

680,002

 

Long-term debt due within one year

 

38,379

   

13,340

 

Total debt

 

1,255,100

   

693,342

 

Less: cash and cash equivalents

 

140,909

   

45,368

 

Net debt

 

$

1,114,191

   

$

647,974

 

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 six months ended January 31, 2017 and 2016.

   

(In thousands)

(Unaudited)

 

(In thousands)

(Unaudited)

   

Three Months Ended January 31,

 

Six Months Ended January 31,

   

2017

 

2016

 

2017

 

2016

Mountain Reported EBITDA

 

$

299,017

   

$

236,555

   

$

242,363

   

$

187,172

Lodging Reported EBITDA

 

6,201

   

5,496

   

9,523

   

8,345

Resort Reported EBITDA*

 

305,218

   

242,051

   

251,886

   

195,517

Real Estate Reported EBITDA

 

(626)

   

(301)

   

4,451

   

865

Total Reported EBITDA

 

304,592

   

241,750

   

256,337

   

196,382

Depreciation and amortization

 

(49,626)

   

(40,541)

   

(90,207)

   

(79,241)

Loss on disposal of fixed assets and other, net

 

(2,231)

   

(1,206)

   

(2,781)

   

(2,985)

Change in fair value of contingent consideration

 

(300)

   

   

(600)

   

Investment income and other, net

 

1,148

   

161

   

5,671

   

359

Interest expense and other, net

 

(9,048)

   

(10,910)

   

(21,012)

   

(21,505)

Income before provision for income taxes

 

244,535

   

189,254

   

147,408

   

93,010

Provision for income taxes

 

(84,807)

   

(72,383)

   

(51,298)

   

(35,809)

Net income

 

159,728

   

116,871

   

96,110

   

57,201

Net (income) loss attributable to noncontrolling interests

 

(10,549)

   

111

   

(9,518)

   

194

Net income attributable to Vail Resorts, Inc.

 

$

149,179

   

$

116,982

   

$

86,592

   

$

57,395

                 

* Resort represents the sum of Mountain and Lodging

   

The following table reconciles Resort Net Revenue to Resort EBITDA Margin for the three months ended January 31, 2017 and 2016.

   

(In thousands)

(Unaudited)

Three Months Ended

January 31, 2017

 

(In thousands)

(Unaudited)

Three Months Ended

January 31, 2016

Resort net revenue*

 

$

719,983

   

$

595,679

 

Resort Reported EBITDA*

 

$

305,218

   

$

242,051

 

Resort EBITDA margin

 

42.4%

   

40.6%

 
         

* Resort represents the sum of Mountain and Lodging

       

Presented below is a reconciliation of Total Reported EBITDA to net income attributable to Vail Resorts, Inc. calculated in accordance with GAAP for the twelve months ended January 31, 2017.

   

(In thousands)

(Unaudited)

   

Twelve Months Ended January 31, 2017

Mountain Reported EBITDA

 

$

479,606

Lodging Reported EBITDA

 

29,347

Resort Reported EBITDA*

 

508,953

Real Estate Reported EBITDA

 

6,370

Total Reported EBITDA

 

515,323

Depreciation and amortization

 

(172,454)

Loss on disposal of fixed assets and other, net

 

(5,214)

Change in fair value of contingent consideration

 

(4,800)

Investment income and other, net

 

6,035

Interest expense and other, net

 

(41,873)

Income before provision for income taxes

 

297,017

Provision for income taxes

 

(108,654)

Net income

 

188,363

Net income attributable to noncontrolling interests

 

(9,412)

Net income attributable to Vail Resorts, Inc.

 

$

178,951

     

* 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 January 31, 2017.

 

In thousands)

(Unaudited)

(As of January 31, 2017)

 

Long-term debt

$

1,216,721

Long-term debt due within one year

38,379

Total debt

1,255,100

Less: cash and cash equivalents

140,909

Net debt

$

1,114,191

 

Net debt to Total Reported EBITDA

2.2

x

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

   

(In thousands)

(Unaudited)

Three Months Ended

January 31,

 

(In thousands)

(Unaudited)

Six Months Ended

January 31,

   

2017

 

2016

 

2017

 

2016

Real Estate Reported EBITDA

 

$

(626)

   

$

(301)

   

$

4,451

   

$

865

 

Non-cash Real Estate cost of sales

 

4,203

   

2,504

   

4,203

   

9,444

 

Non-cash Real Estate stock-based compensation

 

65

   

186

   

(3)

   

149

 

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

 

239

   

(212)

   

1,820

   

1,712

 

Net Real Estate Cash Flow

 

$

3,881

   

$

2,177

   

$

10,471

   

$

12,170

 

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

   

(In thousands)

(Unaudited)

Fiscal 2017 Guidance (2)

Resort net revenue (1)

 

$

1,880,000

Resort Reported EBITDA (1)

 

$

587,000

Resort EBITDA margin

 

31.2%

     

(1) Resort represents the sum of Mountain and Lodging

   

(2) Represents the mid-point range of Guidance

   

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/vail-resorts-reports-fiscal-2017-second-quarter-results-and-increases-quarterly-dividend-by-30-300421833.html

SOURCE Vail Resorts, Inc.

 

 

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