Vail Resorts Reports Fiscal 2013 First Quarter Results and Early Season Indicators
Highlights
- Resort Reported EBITDA loss, which includes the Company's Mountain and Lodging segments, was
$54.5 million for the first fiscal quarter of 2013, reflecting a decline of 8.6%, or$4.3 million , compared with the same period in the prior year. Excluding first quarter net seasonal losses related toKirkwood , Skiinfo andFlagg Ranch , which were acquired after the first quarter in the prior year, Resort Reported EBITDA declined 5.1%, which was slightly favorable to our expectations. - Net Loss Attributable to
Vail Resorts, Inc. was$60.6 million for the first fiscal quarter of 2013 compared to a net loss of$55.7 million in the same period in the prior year, a decline of 8.7%. - Sales of season passes (including 4-Packs) through
December 2, 2012 for the upcoming 2012/2013 ski season were up approximately 5% in units and approximately 8% in sales dollars compared to the same period in the prior year, adjusted as ifKirkwood were owned in both periods. - In the first quarter of fiscal 2013, we closed on four
Ritz-Carlton Residence units, with Real Estate net revenue of$11.9 million . Net Real Estate Cash Flow was$5.5 million for the first fiscal quarter of 2013.
Commenting on the Company's fiscal 2013 first quarter results,
Turning to Real Estate, Katz said, "In the first quarter of fiscal 2013, we closed on four condominiums at The
Katz continued "Our balance sheet remains in a very strong position. We ended the quarter with
Katz added "I am pleased to announce that our Board of Directors has declared a quarterly cash dividend on
Regarding the upcoming ski season, Katz said, "Our 2012/2013 ski season is just underway and we are looking forward to a memorable season. This year marks the 50th anniversary of
Moving to the early ski season indicators, Katz said, "All seven of our mountain resorts are open and ramping up operations for the upcoming holiday season. Season pass (including 4-Pack) sales are up approximately 5% in units and 8% in sales dollars through
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 first fiscal quarter of 2013 ended
Mountain Segment
- Mountain segment net revenue for the first fiscal quarter 2013 was
$51.9 million versus$49.7 million in the first fiscal quarter of 2012, an increase of 4.5%. Excluding Kirkwood and Skiinfo (acquired after the first fiscal quarter of 2012), net revenues increased$1.1 million or 2.3%. - First quarter Mountain Reported EBITDA declined from a loss of
$48.5 million in fiscal 2012 to a loss of$55.2 million in fiscal 2013. TheKirkwood and Skiinfo acquisitions generated$2.3 million in negative EBITDA in the current year first fiscal quarter. - Mountain Reported EBITDA includes
$2.7 million of stock-based compensation expense for the first quarter of fiscal 2013 compared to$2.6 million in the first quarter of fiscal 2012.
Strong summer visitation supported revenue growth in summer activities and dining operations, including group and wedding business. Dining revenues increased
Lodging Segment
- Lodging segment net revenue was
$52.5 million for the first quarter of fiscal 2013 compared to$53.6 million for the first quarter of the prior fiscal year, a 2.0% decrease. Excluding payroll cost reimbursement related to managed hotel properties, Lodging net revenues increased$3.5 million or 7.6%. - For the first quarter of fiscal 2013, revenue per available room ("RevPAR") increased 7.8%, and average daily rate ("ADR") decreased 2.6% at the Company's owned hotels and managed condominiums compared to the same period in the prior year.
- Lodging Reported EBITDA was
$0.7 million for the first quarter of fiscal 2013 compared to a loss of$1.7 million for the same period in the prior year, an increase of 141.1%.The Flagg Ranch acquisition generated$0.6 million in EBITDA in the current fiscal year first quarter. - Lodging Reported EBITDA includes
$0.4 million of stock-based compensation expense for the first quarter of fiscal 2013 compared to$0.6 million in the first quarter of fiscal 2012.
Revenue from owned hotel rooms increased
Resort — Combination of Mountain and Lodging Segments
- Resort net revenue was
$104.4 million for the first quarter of fiscal 2013 compared to$103.3 million in the first quarter of the prior fiscal year, a 1.1% increase. Resort Revenue increased 2.7% excluding payroll cost reimbursement related to managed hotel properties in both periods, and excluding the first quarter of fiscal 2013 revenues related toKirkwood , Skiinfo andFlagg Ranch . - Resort Reported EBITDA was a loss of
$54.5 million for the first quarter of fiscal 2013 compared to a loss of$50.2 million in the same period in the prior year. Excluding Kirkwood, Skiinfo andFlagg Ranch , Resort Reported EBITDA declined 5.1%.
Real Estate Segment
- Real Estate segment net revenue was
$11.9 million for the first quarter of fiscal 2013 compared to$13.1 million in the same period in the prior year. - Net Real Estate Cash Flow (a non-GAAP measure defined as Real Estate Reported EBITDA, plus non-cash real estate cost of sales, plus non-cash stock-based compensation expense, plus change in real estate deposits less investment in real estate) was a positive
$5.5 million for the first quarter of fiscal 2013. - Real Estate Reported EBITDA was a negative
$3.7 million the first quarter of fiscal 2013 compared to a negative$4.7 million in the same period in the prior fiscal year, a 22.2% improvement. - Real Estate Reported EBITDA includes
$0.4 million of stock-based compensation expense for the first quarter of fiscal 2013 compared to$0.9 million in the first quarter of fiscal 2012.
In the first quarter of fiscal 2013, we closed on four condominium units at The
Total Performance
- Total net revenue in the first quarter of fiscal 2013 was
$116.4 million , roughly flat compared to the same quarter in the prior year. - Net loss attributable to
Vail Resorts, Inc. was$60.6 million , or a loss of$1.70 per diluted share, for the first quarter of fiscal 2013 compared to net loss attributable toVail Resorts, Inc. of$55.7 million , or a loss of$1.54 per diluted share, in the first quarter of the prior year.
Outlook
Commenting on fiscal 2013 guidance, Katz continued, "In September, we issued guidance of 27-32% growth in Resort Reported EBITDA. Based on some of the most recent booking trends we are currently seeing, we believe that it will be more difficult to achieve that guidance than we anticipated in September. We will know more about the season after the holidays and intend to address our fiscal 2013 guidance when we release our ski season metrics in mid-January."
Earnings Conference Call
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About
Statements in this press release, other than statements of historical information, are forward looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include but are not limited to prolonged weakness in general economic conditions, including adverse affects on the overall travel and leisure related industries; unfavorable weather conditions or natural disasters; adverse events that occur during our peak operating periods combined with the seasonality of our business; competition in our mountain and
lodging businesses; our ability to grow our resort and real estate operations; our ability to successfully initiate, complete, and sell, new real estate development projects and achieve the anticipated financial benefits from such projects; further adverse changes in real estate markets; continued volatility in credit markets; our ability to obtain financing on terms acceptable to us to finance our real estate development, capital expenditures and growth strategy; our reliance on government permits or approvals for our use of Federal land or to make operational and capital improvements; demand for planned summer activities and our ability to successfully obtain necessary approvals and construct the planned improvements; adverse consequences of current or future legal claims; our ability to hire and retain a sufficient seasonal workforce; willingness of our guests to travel due to
terrorism, the uncertainty of military conflicts or outbreaks of contagious diseases, and the cost and availability of travel options; negative publicity which diminishes the value of our brands; our ability to integrate and successfully realize anticipated benefits of acquisitions or future acquisitions; and implications arising from new
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, except as may be required by law. Investors are also directed to other risks discussed in documents filed by us with the
We use the terms "Reported EBITDA" and "Net Debt" when reporting financial results in accordance with
Please see "Reconciliation of Non-GAAP Financial Measures" below for more information. For the Lodging segment we primarily focus on Lodging net revenue excluding payroll cost reimbursement and Lodging operating expense excluding reimbursed payroll costs (which are not measures of financial performance under GAAP) as the reimbursements are made based upon the costs incurred with no added margin, as such the revenue and corresponding expense have no effect on our Lodging Reported EBITDA which we use to evaluate Lodging segment performance.
| ||||||||
Consolidated Condensed Statements of Operations | ||||||||
(In thousands, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Three Months Ended October 31, | ||||||||
2012 |
2011 | |||||||
Net revenue: |
||||||||
Mountain |
$ 51,912 |
$ 49,670 | ||||||
Lodging |
52,508 |
53,594 | ||||||
Real estate |
11,930 |
13,109 | ||||||
Total net revenue |
116,350 |
116,373 | ||||||
Segment operating expense: |
||||||||
Mountain |
107,548 |
98,555 | ||||||
Lodging |
51,806 |
55,301 | ||||||
Real estate |
15,614 |
17,847 | ||||||
Total segment operating expense |
174,968 |
171,703 | ||||||
Other operating expense: |
||||||||
Depreciation and amortization |
(31,679) |
(28,930) | ||||||
Loss on disposal of fixed assets, net |
(2) |
(114) | ||||||
Loss from operations |
(90,299) |
(84,374) | ||||||
Mountain equity investment income, net |
434 |
430 | ||||||
Investment income, net |
54 |
64 | ||||||
Interest expense, net |
(8,375) |
(8,241) | ||||||
Loss before benefit from income taxes |
(98,186) |
(92,121) | ||||||
Benefit from income taxes |
37,583 |
36,387 | ||||||
Net loss |
|
| ||||||
Net loss attributable to noncontrolling interests |
23 |
25 | ||||||
Net loss attributable to |
|
| ||||||
Per share amounts: |
||||||||
Basic net loss per share attributable to |
$ (1.70) |
$ (1.54) | ||||||
Diluted net loss per share attributable to |
$ (1.70) |
$ (1.54) | ||||||
Cash dividends declared per share |
$ 0.1875 |
$ 0.15 | ||||||
Weighted average shares outstanding: |
||||||||
Basic |
35,700 |
36,066 | ||||||
Diluted |
35,700 |
36,066 | ||||||
Other Data (unaudited): |
||||||||
Mountain Reported EBITDA |
|
| ||||||
Lodging Reported EBITDA |
$ 702 |
$ (1,707) | ||||||
Resort Reported EBITDA |
|
| ||||||
Real Estate Reported EBITDA |
$ (3,684) |
$ (4,738) | ||||||
Total Reported EBITDA |
|
| ||||||
Mountain stock-based compensation |
$ 2,720 |
$ 2,560 | ||||||
Lodging stock-based compensation |
$ 370 |
$ 602 | ||||||
Resort stock-based compensation |
$ 3,090 |
$ 3,162 | ||||||
Real Estate stock-based compensation |
$ 382 |
$ 870 | ||||||
Total stock-based compensation |
$ 3,472 |
$ 4,032 | ||||||
| |||||||||||
Mountain Segment Operating Results | |||||||||||
(In thousands) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended October 31, |
Percentage Increase | ||||||||||
2012 |
2011 |
(Decrease) | |||||||||
|
|||||||||||
Lift tickets |
$ — |
$ — |
— | ||||||||
Ski school |
— |
— |
— | ||||||||
Dining |
6,373 |
5,647 |
12.9% | ||||||||
Retail/rental |
26,725 |
26,964 |
(0.9)% | ||||||||
Other |
18,814 |
17,059 |
10.3% | ||||||||
|
$ 51,912 |
$ 49,670 |
4.5% | ||||||||
Mountain operating expense: |
|||||||||||
Labor and labor-related benefits |
$ 34,294 |
$ 30,093 |
14.0% | ||||||||
Retail cost of sales |
16,191 |
15,530 |
4.3% | ||||||||
General and administrative |
27,304 |
25,706 |
6.2% | ||||||||
Other |
29,759 |
27,226 |
9.3% | ||||||||
|
|
$ 98,555 |
9.1% | ||||||||
Mountain equity investment income, net |
434 |
430 |
0.9% | ||||||||
Mountain Reported EBITDA |
|
|
(13.9)% | ||||||||
| |||||||||||
Lodging Operating Results | |||||||||||
(In thousands, except ADR and RevPAR) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended October 31, |
Percentage Increase | ||||||||||
2012 |
2011 |
(Decrease) | |||||||||
Lodging net revenue: |
|||||||||||
Owned hotel rooms |
|
|
13.8% | ||||||||
Managed condominium rooms |
5,814 |
5,546 |
4.8% | ||||||||
Dining |
10,610 |
9,557 |
11.0% | ||||||||
Transportation |
1,691 |
1,702 |
(0.6)% | ||||||||
Golf |
7,536 |
7,445 |
1.2% | ||||||||
Other |
9,983 |
9,577 |
4.2% | ||||||||
49,328 |
45,859 |
7.6% | |||||||||
Payroll cost reimbursement |
3,180 |
7,735 |
(58.9)% | ||||||||
Total Lodging net revenue |
|
|
(2.0)% | ||||||||
Lodging operating expense: |
|||||||||||
Labor and labor-related benefits |
|
|
3.9% | ||||||||
General and administrative |
7,024 |
7,528 |
(6.7)% | ||||||||
Other |
18,152 |
17,469 |
3.9% | ||||||||
48,626 |
47,566 |
2.2% | |||||||||
Reimbursed payroll costs |
3,180 |
7,735 |
(58.9)% | ||||||||
Total Lodging operating expense |
|
|
(6.3)% | ||||||||
Lodging Reported EBITDA |
$ 702 |
|
141.1% | ||||||||
Owned hotel statistics: |
|||||||||||
ADR |
$ 180.70 |
$ 188.98 |
(4.4)% | ||||||||
RevPar |
$ 113.32 |
$ 102.50 |
10.6% | ||||||||
Managed condominium statistics: |
|||||||||||
ADR |
$ 194.26 |
$ 191.48 |
1.5% | ||||||||
RevPar |
$ 30.75 |
$ 29.11 |
5.6% | ||||||||
Owned hotel and managed condominium statistics (combined): |
|||||||||||
ADR |
$ 184.89 |
$ 189.79 |
(2.6)% | ||||||||
RevPar |
$ 60.54 |
$ 56.15 |
7.8% | ||||||||
Key Balance Sheet Data | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
As of October 31, | ||||||||
2012 |
2011 | |||||||
Real estate held for sale and investment |
|
| ||||||
Total |
|
| ||||||
Long-term debt |
|
| ||||||
Long-term debt due within one year |
848 |
1,063 | ||||||
Total debt |
490,373 |
491,440 | ||||||
Less: cash and cash equivalents |
43,985 |
44,738 | ||||||
Net debt |
|
|
Reconciliation of Non-GAAP Financial Measures
Resort, Mountain and Lodging, and Real Estate Reported EBITDA have been presented herein as measures of the Company's financial operating performance. Reported EBITDA and Net Debt are not measures of financial performance or liquidity under accounting principles generally accepted in
Presented below is a reconciliation of Total Reported EBITDA to net loss attributable to
(In thousands) (Unaudited) Three Months Ended October 31, | ||||||||
2012 |
2011 | |||||||
Mountain Reported EBITDA |
|
| ||||||
Lodging Reported EBITDA |
702 |
(1,707) | ||||||
Resort Reported EBITDA* |
(54,500) |
(50,162) | ||||||
Real Estate Reported EBITDA |
(3,684) |
(4,738) | ||||||
Total Reported EBITDA |
(58,184) |
(54,900) | ||||||
Depreciation and amortization |
(31,679) |
(28,930) | ||||||
Loss on disposal of fixed assets, net |
(2) |
(114) | ||||||
Investment income, net |
54 |
64 | ||||||
Interest expense, net |
(8,375) |
(8,241) | ||||||
Loss before benefit from income taxes |
(98,186) |
(92,121) | ||||||
Benefit from income taxes |
37,583 |
36,387 | ||||||
Net loss |
(60,603) |
(55,734) | ||||||
Net loss attributable to noncontrolling interests |
23 |
25 | ||||||
Net loss attributable to |
|
|
* |
Resort represents the sum of Mountain and Lodging |
Presented below is a reconciliation of Total Reported EBITDA to net income attributable to
(In thousands) (Unaudited) Twelve Months Ended October 31, 2012 | |||
Mountain Reported EBITDA |
| ||
Lodging Reported EBITDA |
8,762 | ||
Resort Reported EBITDA* |
200,923 | ||
Real Estate Reported EBITDA |
(14,953) | ||
Total Reported EBITDA |
185,970 | ||
Depreciation and amortization |
(130,330) | ||
Loss on disposal of fixed assets, net |
(1,352) | ||
Investment income, net |
459 | ||
Interest expense, net |
(33,720) | ||
Income before provision for income taxes |
21,027 | ||
Provision for income taxes |
(9,505) | ||
Net income |
$ 11,522 | ||
Net loss attributable to noncontrolling interests |
60 | ||
Net income attributable to |
$ 11,582 | ||
* |
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 October 31, 2012.
(In thousands) (Unaudited) As of October 31, 2012 | ||||
Long-term debt |
| |||
Long-term debt due within one year |
848 | |||
Total debt |
490,373 | |||
Less: cash and cash equivalents |
43,985 | |||
Net debt |
| |||
Net debt to Total Reported EBITDA |
2.4 |
The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three months ended October 31, 2012.
(In thousands) (Unaudited) Three Months Ended October 31, 2012 | ||||
Real Estate Reported EBITDA |
$ (3,684) | |||
|
9,241 | |||
|
382 | |||
Change in Real Estate deposits less investments in Real Estate |
(477) | |||
Net Real Estate Cash Flow |
$ 5,462 |
SOURCE
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