SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: November 6, 1997
Date of earliest event reported: November 6, 1997
VAIL RESORTS, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-9614 51-0291762
(State or other (Reporting File (I.R.S. Employer
jurisdiction of organization) Number) Identification No.)
137 Benchmark Road
Avon, Colorado 81620
(Address of principal executive offices) (Zip Code)
(970) 476-5601
(Registrant's telephone number, including area code)
Item 5. Other Events
On November 6, 1997 Vail Resorts, Inc. (the "Company") announced financial
results for the fiscal year and fourth fiscal quarter ended September 30, 1997.
A copy of the press release setting forth such results is filed as an Exhibit
hereto.
The Company also announced that it has changed its fiscal year-end to July
31 from September 30. The Company stated that the change in the fiscal year-end
would ensure that every fiscal year revenues from the Christmas and New Year
holidays will be captured entirely in the second fiscal quarter ending January
31 and revenues from the Easter holiday will be captured entirely in the third
quarter ending April 30, allowing for more accurate year-to-year quarterly
comparisons. As a result, the vast majority of the ski season will be reported
in the second and third fiscal quarters. Filed as an Exhibit hereto are revenues
by business line and consolidated quarterly results restated to reflect what
such revenues and results would have been if the Company's fiscal year had ended
on July 31, 1997, giving pro forma effect to the acquisition of Ralston Resorts
and the Company's initial public offering as if they had occurred on August 1,
1996. The pro forma data is not intended to be indicative of either future
results of operations or results that might have been achieved had such
transactions actually occurred on such date.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press release dated November 6, 1997.
99.2 Vail Resorts, Inc., Restated Pro Forma Revenue by Business
Line and Restated Pro Forma Consolidated Quarterly Results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
VAIL RESORTS, INC.
By: /s/ James S. Mandel
-------------------------------
Name: James S. Mandel
Title: Senior Vice President,
General Counsel and
Secretary
Date: November 6, 1997
Exhibit Index
Exhibit
Number Exhibit
99.1 Press release dated November 6, 1997.
99.2 Vail Resorts, Inc., Restated Pro Forma Revenue by Business
Line and Restated Pro Forma Consolidated Quarterly Results.
Exhibit 99.1
Vail Resorts, Inc.
Consolidated Financial Statements
(in thousands of dollars except per share amounts)
-PRO FORMA-
Three Months Ended September 30, Year Ended September 30,
1997 1996 1997 1996
Net Revenues
Resort 23,417 21,503 291,203 267,409
Real estate 9,596 14,033 71,737 49,831
--------- --------- ------------- ----------
Net Revenues 33,013 35,536 362,940 317,240
Operating Expenses
Resort 32,309 30,979 198,315 182,581
Real estate 12,315 9,905 66,382 41,085
Corporate expense* 1,430 747 4,663 4,198
Depreciation and amortization 9,459 8,137 38,935 35,517
Reorganization charge -- -- 2,200 --
-------- --------- ------------ ----------
Total operating expenses 55,513 49,768 310,495 263,381
Income from operations (22,500) (14,232) 52,445 53,859
Other income (expense)
Investment income 536 (793) 2,194 1,141
Interest expense (4,528) (1,383) (16,685) (16,760)
Gain (loss) on sale of fixed assets (26) (201) (129) (2,454)
Other (481) (621) 173 (1,500)
Income before income taxes (26,999) (17,230) 37,998 34,286
Provision for income taxes 10,844 6,644 (15,738) (14,824)
---------- ---------- ----------- ----------
Net income (16,155) (10,586) 22,260 19,462
========== ========== =========== ==========
Weighted average shares outstanding 34,908,182 34,345,081 34,671,691 34,345,081
========== ========== =========== ==========
Earnings per share ($0.46) ($0.31) $0.64 $0.57
========== ========== =========== ==========
Other data:
Resort operating cash flow** (8,892) (9,476) 92,888 84,828
Resort EBITDA** (10,322) (10,223) 88,225 80,630
Net income** (16,155) (10,586) 23,619 19,462
Earnings per share** ($0.46) ($0.31) $0.68 $0.57
Revenue from real estate sales 9,596 14,033 71,737 49,831
Real estate operating profit (2,719) 4,128 5,355 8,746
* For comparative purposes, corporate expense for the three months and fiscal
year ended 9/30/96 excludes a one-time, pre-tax $8.5 million charge
incurred in the fourth quarter of fiscal 1996.
** Fiscal 1997 ROCF, Resort EBITDA, EPS and Net Income were recalculated for
comparative purposes, excluding a one-time, $2.2 million reorganization
charge incurred in the third quarter of fiscal 1997.
Vail Resorts, Inc.
Consolidated Financial Statements
(in thousands of dollars except per share amounts)
-ACTUAL-
Three Months Ended September 30, Year Ended September 30,
1997 1996* 1997** 1996*
Net Revenues
Resort 23,417 8,030 259,038 140,288
Real estate 9,596 12,941 71,485 48,655
---------- ----------- ---------- ---------
Net Revenues 33,013 20,971 330,523 188,943
Operating Expenses
Resort 32,309 12,652 170,515 89,890
Real estate 12,315 9,839 66,307 40,801
Corporate expense 1,430 9,247 4,663 12,698
Depreciation and amortization 9,642 4,558 34,054 18,148
Reorganization charge -- -- 2,200 --
---------- ----------- ---------- ---------
Total operating expenses 55,696 36,296 277,739 161,537
Income from operations (22,683) (15,325) 52,784 27,406
Other income (expense)
Investment income 536 (358) 1,762 586
Interest expense (4,454) (1,226) (20,307) (14,904)
Loss on sale of fixed assets (26) (1) (182) (2,630)
Other (461) (621) (374) (1,500)
---------- ---------- ---------- ---------
Income before income taxes (27,088) (17,531) 33,683 8,958
Provision for income taxes 10,566 7,003 (13,985) (4,223)
---------- ---------- ---------- ---------
Net income (16,522) (10,528) 19,698 4,735
========== ========== ========== ==========
Weighted average shares outstanding 34,908,182 21,455,352 30,979,448 21,455,352
========== ========== ========== ==========
Earnings per share ($0.47) ($0.49) $0.64 $0.22
=========== ========== ========== ==========
* Excludes results of Ralston Resorts.
** Includes results of Ralston Resorts for the 270 day period from January 4,
1997 to September 30, 1997.
Vail Resorts, Inc.
Supplemental Data
(in thousands)
4Q 96 4Q 97 % Change FY 96 FY 97 % Change
Resort Revenues
Lift ticket - - - $127,663 $135,884 6.4%
Ski school - - - 33,091 34,471 4.2%
Food service 5,792 7,169 23.8% 38,133 43,704 14.6%
Retail/rental 604 1,218 101.7% 13,362 17,624 31.9%
Hospitality 6,578 7,049 7.2% 31,822 33,984 6.8%
Other 8,529 7,981 -6.4% 23,338 25,536 9.4%
-------- --------- --------- ---------- ---------- -----
Total Resort Revenues 21,503 23,417 8.9% 267,409 291,203 8.9%
======== ========= ========= ========== ========== =====
TOTAL SKIER VISITS - - - 4,643,777 4,890,032 5.3%
Exhibit 99.2
Vail Resorts, Inc.
Restated Pro Forma Revenue By Business Line
Fiscal Year 1997
Quarter Quarter Quarter Quarter Fiscal Year
Ended Ended Ended Ended Ended
10/31/96 1/31/97 4/30/97 7/31/97 7/31/97
Winter Lift Tickets 253 58,746 75,955 873 135,827
Ski School 26 14,154 20,256 26 34,462
Food Service 4,013 13,651 20,570 4,865 43,099
Retail/Rental 490 7,047 8,880 748 17,165
Hospitality 5,292 9,848 13,540 5,385 34,065
Other 5,914 8,551 5,504 7,437 27,406
------- --------- -------- ------- ---------
Total Revenues 15,988 111,997 144,705 19,334 292,024
======= ========= ======== ======= =========
Skier Visits 20 2,120 2,698 52 4,890
Vail Resorts, Inc.
Restated Pro Forma Consolidated Quarterly Results
Fiscal Year 1997
Quarter Quarter Quarter Quarter Fiscal Year
Ended Ended Ended Ended Ended
10/31/96 1/31/97 4/30/97 7/31/97 7/31/97
Net Revenues
Resort 15,988 111,997 144,705 19,334 292,024
Real estate 12,978 50,305 3,607 7,466 74,356
--------- -------- -------- -------- ---------
Net Revenues 28,966 162,302 148,312 26,800 366,380
Operating Expenses:
Resort 33,559 67,708 67,453 31,665 200,385
Real Estate 9,803 43,226 4,133 7,484 64,646
Corporate expense* 834 919 1,766 717 4,236
Depreciation and amortization 8,558 9,990 9,714 9,735 37,995
Reorganization charge - - - 2,200 2,200
--------- -------- -------- -------- ---------
Total operating expenses 52,754 121,843 83,066 51,801 309,462
Income from operations (23,788) 40,460 65,247 (25,001) 56,918
Other income (expense)
Investment income 171 691 1,370 509 2,741
Interest expense (3,685) (4,434) (4,435) (4,245) (16,799)
Gain(loss) on sale of fixed assets (147) 23 43 (65) (146)
Other (810) (559) 410 237 (722)
--------- -------- -------- -------- ---------
Income (loss) before income taxes (28,259) 36,181 62,635 (28,565) 41,992
Credit (provision) for income taxes 11,699 (14,979) (25,931) 11,826 (17,385)
--------- -------- -------- -------- ---------
Net income (loss) (16,559) 21,202 36,704 (16,739) 24,607
--------- -------- -------- -------- ---------
Weighted average shares outstanding 34,375 34,395 34,398 34,398
--------- -------- -------- -------- ---------
Earnings per share (0.48) 0.62 1.07 (0.49) 0.72
--------- -------- -------- -------- ---------
**Other data:
Resort cash flow (17,571) 44,289 77,252 (12,331) 91,639
Resort EBITDA (18,405) 43,370 75,486 (13,048) 87,403
Net income (loss) (16,559) 21,202 36,704 (15,380) 25,966
Earnings per share (0.48) 0.62 1.07 (0.45) 0.75
Real estate operating income 3,175 7,079 (526) (18) 9,710
FY AVG.
-------
Total debt 228,780 231,029 231,025 239,522 232,589
Less: cash and cash equivalents 9,320 47,211 51,951 10,511 29,748
--------- -------- -------- -------- ---------
Net debt 219,460 183,818 179,074 229,011 202,841
========= ======== ======== ======== =========
* Corporate expense excludes $8.5 million in one-time non-recurring charges.
** Resort cash flow, resort EBITDA, net income and earnings per share under
"other data" were calculated for comparison purposes excluding the
one-time, pre-tax $2.2 million reorganization charge incurred in the fourth
quarter of fiscal 1997.
