UNITED
STATES
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 (Date of earliest event reported): March 10, 2008
Vail Resorts,
Inc.
(Exact
Name of Registrant as Specified in Charter)
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Delaware
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001-09614
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51-0291762
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(State
or Other Jurisdiction of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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390
Interlocken Crescent, Suite 1000
Broomfield,
Colorado
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80021
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant's
telephone number, including area code:
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(303)
404-1800
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(Former
Name or Former Address, if Changed Since Last Report)
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Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
2.02. Results of Operations and Financial Condition.
On March
10, 2008, Vail Resorts, Inc. issued a press release announcing its results for
the three and six months ended January 31, 2008. A copy of the press
release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K
and is incorporated herein by reference.
The
information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall
not be deemed to be “filed” for the purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, and will not be incorporated by reference into
any registration statement filed under the Securities Act of 1933, as amended,
unless specifically identified therein as being incorporated therein by
reference.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
A list of
exhibits furnished herewith is contained on the Exhibit Index which immediately
precedes such exhibits and is incorporated herein by reference.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Vail
Resorts, Inc.
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Date:
March 10, 2008
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By:
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/s/
Jeffrey W. Jones
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Jeffrey
W. Jones
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Senior
Executive Vice President and
Chief
Financial Officer
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EXHIBIT
INDEX
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Exhibit No.
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Description
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99.1
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Press
Release, dated March 10, 2008, announcing fiscal 2008 second quarter
results.
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EXHIBIT
99.1
VAIL
RESORTS
For
Immediate Release
News
Release
Vail
Resorts Contacts:
Media: Kelly
Ladyga, (303) 404-1862, kladyga@vailresorts.com
Investor
Relations: Jeff Jones, CFO, (303) 404-1802,
jwjones@vailresorts.com
Vail Resorts Announces
Fiscal 2008 Second Quarter Results
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l
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Record
second quarter Resort revenue of $314.5 million, a 3.2% increase over the
prior year’s record second quarter.
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l
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Record
second quarter Mountain Reported EBITDA of $117.5 million, a 3.4% increase
over the prior year’s record second
quarter.
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BROOMFIELD,
Colo. - March 10, 2008 - Vail Resorts, Inc. (NYSE: MTN) announced today
financial results for the second quarter of fiscal 2008 ended January 31,
2008.
The
Company uses the term “Reported EBITDA,” “Reported EBITDA excluding stock-based
compensation,” “net income excluding stock-based compensation” and “Net Debt”
when reporting financial results in accordance with Securities and Exchange
Commission rules regarding the use of non-GAAP financial
measures. The Company defines Reported EBITDA as segment net revenue
less segment operating expense plus segment equity investment income or loss and
for the Real Estate segment, plus gain on sale of real property. The
Company defines Net Debt as long-term debt plus long-term debt due within one
year less cash and cash equivalents.
SECOND QUARTER
PERFORMANCE
Mountain
Segment
Mountain
revenue increased $7.7 million, or 2.8%, in the second quarter of fiscal 2008 to
$279.7 million from $272.0 million for the same quarter last fiscal
year. Mountain operating expense increased $3.3 million, or 2.1%, to
$163.2 million. Mountain equity investment income, net decreased $0.6
million. Mountain Reported EBITDA increased $3.8 million, or 3.4%, to
$117.5 million compared to $113.7 million for the same quarter last fiscal
year.
Lodging
Segment
Lodging
revenue increased $2.0 million, or 6.2%, in the second quarter of fiscal 2008 to
$34.8 million from $32.8 million for the same quarter last fiscal
year. Lodging operating expense increased $6.0 million, or 19.6%, to
$36.8 million. Lodging operating expense included approximately $2.2
million of start-up and pre-opening expenses related to The Arrabelle at Vail
Square hotel. Lodging Reported EBITDA decreased $4.0 million, or
195.9%, to a loss of $2.0 million compared to a profit of $2.0 million for the
same quarter last fiscal year.
Resort – Combination of
Mountain and Lodging Segments
Resort
revenue, the combination of Mountain and Lodging revenue, increased $9.7
million, or 3.2%, in the second quarter of fiscal 2008 to $314.5 million from
$304.8 million for the same quarter last fiscal year. Resort
operating expense increased $9.3 million, or 4.9% to $200.0
million. Resort equity investment income, net decreased $0.6
million. Resort Reported EBITDA decreased $0.2 million to $115.5
million, a 0.2% decrease from the same quarter last fiscal
year. Resort Reported EBITDA excluding stock-based compensation
decreased $0.4 million, or 0.3%, to $116.6 million.
Real Estate
Segment
Real
Estate revenue decreased $10.7 million, or 19.1%, in the second quarter of
fiscal 2008 to $45.5 million from $56.2 million for the same quarter last fiscal
year. Real Estate operating expense decreased $6.0 million, or 11.9%,
to $44.4 million. Gain on sale of real property increased $0.7
million. Real Estate Reported EBITDA decreased $4.1 million, or
69.6%, to $1.8 million compared to $5.8 million for the same quarter last fiscal
year.
Total
Performance
Total
revenue decreased $1.0 million, or 0.3%, in the second quarter of fiscal 2008 to
$360.0 million from $361.0 million for the same quarter last fiscal
year. Income from operations for the quarter decreased $5.2 million,
or 5.3%, to $92.6 million. The Company recorded total pre-tax
stock-based compensation expense of $1.9 million and $1.8 million in the three
months ended January 31, 2008 and January 31, 2007, respectively.
The
Company reported second quarter fiscal 2008 net income of $51.3 million, or
$1.31 per diluted share, compared to net income of $53.0 million, or $1.35 per
diluted share, for the same quarter last fiscal year. Excluding
stock-based compensation expense, the Company’s net income for the second
quarter of fiscal 2008 would have been $52.5 million, or $1.34 per diluted
share, compared to net income of $54.1 million excluding stock-based
compensation, or $1.38 per diluted share, for the same quarter last fiscal
year.
SIX MONTH
PERFORMANCE
Mountain
Segment
Mountain
revenue increased $4.1 million, or 1.3%, for the six months ended January 31,
2008, to $322.3 million from $318.2 million for the comparable period last
fiscal year. Mountain operating expense increased $4.8 million, or
2.0%, to $244.1 million. In the current fiscal year six month period,
Mountain operating expense included approximately $2.0 million in legal fees for
litigation related to the Company’s attempted acquisition of The Canyons ski
resort (“The Canyons”). Excluding the impact of The Canyons
litigation, Mountain operating expense would have increased approximately $2.8
million, or 1.2%. Mountain equity investment income, net increased
$0.6 million. Mountain Reported EBITDA decreased $0.1 million, or
0.2%, to $81.0 million compared to $81.2 million for the comparable period last
fiscal year.
Lodging
Segment
Lodging
revenue increased $4.9 million, or 6.7%, for the six months ended January 31,
2008, to $78.1 million from $73.2 million for the comparable period last fiscal
year. The prior year period included the recognition of $2.4 million
of revenue associated with the termination of the management agreement at The
Lodge at Rancho Mirage (pursuant to the terms of the management agreement) with
the closing of the hotel as part of a redevelopment plan by the hotel’s
owner. Excluding this termination fee, Lodging revenue would have
increased $7.3 million, or 10.4%. Lodging operating expense increased
$10.9 million, or 16.3%, to $78.0 million. Lodging operating expense
included approximately $3.0 million of start-up and pre-opening expenses related
to The Arrabelle at Vail Square hotel. Lodging Reported EBITDA
decreased $6.0 million, or 97.9%, to $0.1 million compared to $6.1 million for
the comparable period last fiscal year.
Resort – Combination of
Mountain and Lodging Segments
Resort
revenue, the combination of Mountain and Lodging revenue, increased $9.0
million, or 2.3%, for the six months ended January 31, 2008, to $400.4 million
from $391.4 million for the comparable period last fiscal
year. Excluding the impact of the prior year Rancho Mirage
termination fee, Resort revenue would have increased $11.4 million, or
2.9%. Resort operating expense increased $15.7 million, or 5.1%, to
$322.2 million. Excluding the current fiscal year legal expense
associated with The Canyons litigation, Resort operating expense would have
increased approximately $13.7 million, or 4.5%. Resort equity
investment income, net increased $0.6 million. Resort Reported EBITDA
decreased $6.1 million to $81.1 million, a 7.0% decrease from the comparable
period last fiscal year. Resort Reported EBITDA excluding stock-based
compensation decreased $6.3 million, or 7.0%, to $83.6 million.
Real Estate
Segment
Real
Estate revenue decreased $25.6 million, or 30.8%, for the six months ended
January 31, 2008, to $57.5 million from $83.1 million for the comparable period
last fiscal year. Real Estate operating expense decreased $25.2
million, or 32.9%, to $51.3 million. Gain on sale of real property
increased $0.7 million. Real Estate Reported EBITDA increased $0.3
million, or 4.0%, to $6.9 million compared to $6.6 million for the comparable
period last fiscal year.
Total
Performance
Total
revenue decreased $16.6 million, or 3.5%, for the six months ended January 31,
2008, to $457.9 million from $474.5 million for the comparable period last
fiscal year. Income from operations for the six months decreased $6.5
million, or 13.9%, to $40.4 million. The Company recorded total
pre-tax stock-based compensation expense of $3.9 million and $3.7 million in the
six months ended January 31, 2008 and January 31, 2007,
respectively.
The
Company reported first half fiscal 2008 net income of $26.7 million, or $0.68
per diluted share, compared to net income of $17.2 million, or $0.44 per diluted
share, for the comparable period last fiscal year. Included in the
first half fiscal 2008 results is the receipt of the final cash settlement from
Cheeca Holdings, LLC of which $11.9 million (net of final attorney fees and on a
pre-tax basis) was included in contract dispute credit (charges),
net. Excluding stock-based compensation expense, the Company’s net
income for the six months ended January 31, 2008, would have been $29.1 million,
or $0.74 per diluted share, compared to net income of $19.5 million excluding
stock-based compensation, or $0.50 per diluted share, for the comparable period
last fiscal year.
Business Commentary and
Outlook
Robert
Katz, Chief Executive Officer, commented, “I am pleased with our fiscal 2008
second quarter results. They reflect the commitment of our employees
and the strength of our resorts and the experience we provide. With
both very difficult early season weather and a challenging economy, our Mountain
Reported EBITDA still represented a new all-time record for our second quarter
and overall Resort Reported EBITDA was essentially flat with last year’s
all-time record second quarter. The second quarter basically contains
the first half of our 2007/2008 ski season with Mountain segment revenue up 2.8%
over the prior year’s record quarter with approximately 50% of our revenue
growth flowing through to Mountain Reported EBITDA. Lift ticket
revenue increased $5.4 million, or 4.2%, over the prior year’s quarter, driven
in part by an 11.2% increase in season pass revenue (of which we recognized 54%
in the second quarter with the remainder to be recognized in the third quarter),
as well as effective ticket price, or “ETP”, growth of 8.4%, driven by higher
season pass pricing and increased ETP excluding season pass products of 7.0%,
again caused by higher pricing. Partially offsetting the season pass
and ETP increases was a decline in skier visits excluding season pass holders of
5.3% at the Company’s five ski resorts, which entirely occurred from the start
of the ski season to the pre-Christmas holiday period in December, or the “Early
Season.” Snowfall for the Early Season in the current year was
significantly below the same period in the prior year. Lift revenue
was down approximately $4.9 million, or 13.6%, for the Early Season compared to
the same period in the prior year. However, for the remainder of the
quarter compared to the prior year starting with the Christmas holiday period
through January 31, lift revenue was higher by approximately $10.3 million, or
11.1%. Lift revenue was also favorably impacted by an approximate 23%
increase in international guest visitation compared to the same period in the
prior year.”
Katz
continued, “Revenue from our ancillary Mountain businesses including ski school,
dining and retail/rental businesses followed the same trends as lift tickets
described above, with overall revenue up $4.9 million, or 4.1%, for these three
areas in the quarter, despite revenue being down in these areas by approximately
$4.8 million, or 10.0%, in the Early Season, with revenue for these three areas
being up by approximately $9.7 million, or 13.5%, in the remainder of the
quarter. Also importantly, our yields for revenue per skier visit
relative to these ancillary businesses were all improved with our guests
spending more on ski school, dining and retail/rental per visit in the current
year. Looking at our lodging operations, our average daily rate
increased 9.6% and our revenue per available room increased 6.9% for the quarter
on a “same store” basis at our owned hotels and managed
condominiums. Our lodging results for the quarter absorbed
approximately $2.2 million of one-time start-up and pre-opening expenses related
to the new Arrabelle at Vail Square, a RockResort, and therefore the Lodging
segment Reported EBITDA was a loss for the quarter. Real Estate
Reported EBITDA decreased for the quarter due solely to the timing of closings
within the quarter. Overall, we remain on pace to close on all of The
Arrabelle condominium units and six of the thirteen Lodge at Vail Chalets in the
current fiscal year with the remaining Chalets anticipated to close in the first
half of fiscal 2009.” Katz added, “While there are challenges with
the U.S. economic climate, we believe our business remains solid as we enter our
third quarter, historically our strongest quarter of the season, as reflected in
the growth of our Mountain revenue results since the pre-holiday period, all
achieved within this current economic environment. Additionally our
balance sheet continues to strengthen with approximately $275 million of cash
and cash equivalents on hand and Net Debt of less than two times trailing twelve
months Total Reported EBITDA.”
Commenting
on One Ski Hill Place in Breckenridge, Katz said, “We had a successful launch of
the first of a multi-building project at One Ski Hill Place including 88
ski-in/ski-out residences ranging from studio to four-bedroom homes with
approximately 102,000 saleable residential square feet. To date, we
have released 66 units in five phases with an average price per square foot of
$1,244 (29% in excess of Crystal Peak released just a year ago, which has
already sold out). Currently, we have 38 units under contract,
representing gross sales proceeds of $54.5 million. We are
excited by the development opportunities that exist at Breckenridge with One Ski
Hill Place, a RockResort, creating a unique luxury experience at the base of
Peak 8.”
As an
update on the Vail Mountain Club, Katz added, “Vail Mountain Club sales continue
to be strong. To date, we have sold 332 memberships, including 161
full memberships, which include parking privileges, and an additional 171 social
memberships, which exclude parking privileges, representing total sales
commitments of $58.6 million of total proceeds when paid in
full. This includes the sale of 41 full memberships and 41 social
memberships since our December 10, 2007, earnings release. With the
pace of the membership sales, we have recently increased the membership
initiation fee deposit on the full memberships to $275,000 from $260,000 and on
the social memberships to $150,000 from $105,000 with eight full memberships and
seven social memberships sold at these new price points. The strength
of the Vail Mountain Club sales in this economic climate is certainly a
testament to the unique experience that the club will offer members steps from
the Vista Bahn chairlift beginning next ski season.”
Commenting
on the opening of The Arrabelle at Vail Square, Katz said, “On January 5th, we
opened the newest RockResort hotel, The Arrabelle at Vail Square, the crown
jewel of our hotel portfolio. This project including its hotel,
commercial and real estate components has redefined the look and feel of one of
the key base areas at Vail Mountain as guests experience a quintessential
European village in the heart of Vail. In addition to world class
skiing and snowboarding accessed via the gondola just steps away, lodging guests
at The Arrabelle can enjoy the highest level of amenities and services such as a
ski concierge, a premium RockResorts spa and fabulous new restaurants including
Centre V, a French inspired Brasserie. Since opening, we have had
rave reviews for this new luxury, signature property of the RockResorts brand
and for the surrounding village we have created, which has fundamentally changed
the landscape of one of the main portals to Vail Mountain. In
addition, we have closed on 12 of the 67 Arrabelle condominium units in the
second quarter with all of the remaining condominium units under contract and
expected to close during the remainder of fiscal 2008.”
Commenting
on our fiscal 2008 guidance, Katz said, “Based on our current estimates, we are
reaffirming our net income guidance, which was first issued in September,
2007. As components of the net income guidance, we are also
reaffirming our Lodging and Real Estate Reported EBITDA guidance, while we are
lowering our Mountain Reported EBITDA guidance by roughly the amount of the lift
ticket and the ancillary revenue area declines described earlier which occurred
during the Early Season. We currently expect full year Resort
Reported EBITDA, the combination of our Mountain and Lodging segments, to range
from $230 million to $240 million and Resort Reported EBITDA excluding
stock-based compensation expense to range from $235 million to $245
million. The Resort guidance includes a range for Mountain Reported
EBITDA of $218 million to $228 million and Mountain Reported EBITDA excluding
stock-based compensation expense of $222 million to $232 million, while we
expect Lodging Reported EBITDA to range from $8 million to $14 million and
Lodging Reported EBITDA excluding stock-based compensation expense expected to
range from $9 million to $15 million. Real Estate Reported EBITDA is
expected to range from $54 million to $60 million and Real Estate Reported
EBITDA excluding stock-based compensation expense is expected to range from $57
million to $63 million. Based on our current estimates, we expect net
income to range from $112 million to $122 million and net income excluding
stock-based compensation expense to range from $117 million to $127
million.”
Katz
concluded, “In addition, during the second quarter, we continued our previously
announced share repurchase program, resulting in the repurchase of 279,079
shares at an average price of $50.78 for a total amount of $14.2
million. Since inception of this program in fiscal 2006, the Company
has repurchased 1,185,083 shares at an average price of $43.64 for a total
amount of approximately $51.7 million, with 1,814,917 shares remaining available
under the existing repurchase authorization. Our purchases under this
program are reviewed with our Board quarterly and are based on a number of
factors as we evaluate the appropriate uses of our excess cash, including but
not limited to the share repurchase program.”
Resort Capital Expenditure
Announcement
The
Company also announced its calendar 2008 Resort capital expenditure plans,
exclusive of resort depreciable assets associated with the Company’s various
real estate projects. The Company expects to spend approximately $100
million to $110 million of resort capital expenditures in calendar 2008, which
includes $40 million to $42 million for capital expenditures that the Company
believe are necessary to maintain the high quality appearance and level of
service at the Company’s five ski resorts and throughout its
hotels. Highlights of these “maintenance” capital expenditures
include snow-cat replacements; uniforms for all five mountains; lift
maintenance; snowmaking equipment; lodging furniture, fixture & equipment
and rental equipment fleet capital. Resort discretionary capital is
expected to be in the range of $60 million to $68 million with projects
including a new state-of-the-art eight passenger Keystone River Run gondola,
including moving the bottom terminal into River Run Village; completion of the
second phase of the Beaver Creek children’s ski school improvements, including
an on-mountain ski school building following the new Buckaroo Express gondola
installed in 2007; full renovation of the Inn at Beaver Creek, including
substantial upgrades to create a unique ultra-luxury RockResorts branded hotel;
new snowmaking equipment at Peak 7 in Breckenridge; re-grading and snowmaking
for the main trail connecting California and Nevada at Heavenly; Jackson Lake
Lodge room remodel in Grand Teton National Park; and upgrades to the Company’s
central reservations, marketing database and e-commerce booking systems, among
other projects.
Commenting
on the capital expenditure announcement, Katz said, “Our calendar 2008 resort
capital plan is focused on continuing to improve the quality of our assets
across the Mountain and Lodging segments. With these capital
investment projects we have planned, we continue to differentiate ourselves from
the competition as we lead the way in offering our guests exceptional
experiences at all of our extraordinary resorts.”
CONFERENCE
CALL
For
further discussion of the contents of this press release, please listen to our
live webcast today at 11:00 am EDT, available at www.vailresorts.com in the
Investor Relations section. In order to access the non-GAAP financial
information that will be referenced on the call, click on
www.vailresorts.com/investors.
Vail
Resorts, Inc. is the leading mountain resort operator in the United
States. The Company's subsidiaries operate the mountain resort
properties at the Vail, Beaver Creek, Breckenridge and Keystone mountain resorts
in Colorado, the Heavenly Ski Resort in the Lake Tahoe area of California and
Nevada and the Grand Teton Lodge Company in Jackson Hole,
Wyoming. The Company's subsidiary, RockResorts, a luxury resort hotel
company, manages casually elegant properties across the United States and the
Caribbean. Vail Resorts Development Company is the real estate
planning, development and construction 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.
***
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:
economic downturns; terrorist acts upon the United States; threat of or actual
war; unfavorable weather conditions; our ability to obtain financing on terms
acceptable to us to finance our real estate investments, capital expenditures
and growth strategy; our ability to continue to grow our resort and real estate
operations; competition in our mountain and lodging businesses; our ability to
hire and retain a sufficient seasonal workforce; our ability to successfully
initiate and/or complete real estate development projects and achieve the
anticipated financial benefits from such projects; implications arising from new
Financial Accounting Standards Board (“FASB”)/governmental legislation, rulings
or interpretations; our reliance on government permits or approvals for our use
of federal land or to make operational improvements; our ability to integrate
and successfully operate future acquisitions; and adverse consequences of
current or future legal claims. 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 the Company with the
Securities and Exchange Commission.
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Vail
Resorts, Inc.
|
|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Three
Months Ended
|
|||||||||
|
January
31,
|
|||||||||
|
2008
|
2007
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
279,722
|
$
|
272,026
|
|||||
|
Lodging
|
34,827
|
32,796
|
|||||||
|
Real
estate
|
45,471
|
56,216
|
|||||||
|
Total
net revenue
|
360,020
|
361,038
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
163,188
|
159,871
|
|||||||
|
Lodging
|
36,782
|
30,757
|
|||||||
|
Real
estate
|
44,409
|
50,391
|
|||||||
|
Total
segment operating expense
|
244,379
|
241,019
|
|||||||
|
Other
operating income (expense):
|
|||||||||
|
Gain
on sale of real property
|
709
|
--
|
|||||||
|
Depreciation
and amortization
|
(23,621
|
)
|
(21,759
|
)
|
|||||
|
Relocation
and separation charges
|
--
|
(500
|
)
|
||||||
|
Loss
on disposal of fixed assets, net
|
(157
|
)
|
(10
|
)
|
|||||
|
Income
from operations
|
92,572
|
97,750
|
|||||||
|
Mountain
equity investment income, net
|
926
|
1,496
|
|||||||
|
Investment
income
|
2,019
|
2,417
|
|||||||
|
Interest
expense, net
|
(7,535
|
)
|
(7,911
|
)
|
|||||
|
Contract
dispute charges
|
--
|
(672
|
)
|
||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,910
|
)
|
(6,152
|
)
|
|||||
|
Income
before provision for income taxes
|
83,072
|
86,928
|
|||||||
|
Provision
for income taxes
|
(31,753
|
)
|
(33,902
|
)
|
|||||
|
Net
income
|
$
|
51,319
|
$
|
53,026
|
|||||
|
Per share
amounts:
|
|||||||||
|
Basic
net income per share
|
$
|
1.32
|
$
|
1.37
|
|||||
|
Diluted
net income per share
|
$
|
1.31
|
$
|
1.35
|
|||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
117,460
|
$
|
113,651
|
|||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
$
|
118,210
|
$
|
114,708
|
|||||
|
Lodging
Reported EBITDA
|
$
|
(1,955
|
)
|
$
|
2,039
|
||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
$
|
(1,616
|
)
|
$
|
2,260
|
||||
|
Resort
Reported EBITDA
|
$
|
115,505
|
$
|
115,690
|
|||||
|
Resort
Reported EBITDA excluding stock-based compensation
|
$
|
116,594
|
$
|
116,968
|
|||||
|
Real
Estate Reported EBITDA
|
$
|
1,771
|
$
|
5,825
|
|||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
$
|
2,608
|
$
|
6,311
|
|||||
|
Vail
Resorts, Inc.
|
|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Six
Months Ended
|
|||||||||
|
January
31,
|
|||||||||
|
2008
|
2007
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
322,258
|
$
|
318,189
|
|||||
|
Lodging
|
78,144
|
73,204
|
|||||||
|
Real
estate
|
57,504
|
83,138
|
|||||||
|
Total
net revenue
|
457,906
|
474,531
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
244,136
|
239,358
|
|||||||
|
Lodging
|
78,018
|
67,106
|
|||||||
|
Real
estate
|
51,322
|
76,509
|
|||||||
|
Total
segment operating expense
|
373,476
|
382,973
|
|||||||
|
Other
operating income (expense):
|
|||||||||
|
Gain
on sale of real property
|
709
|
--
|
|||||||
|
Depreciation
and amortization
|
(44,383
|
)
|
(43,344
|
)
|
|||||
|
Relocation
and separation charges
|
--
|
(1,235
|
)
|
||||||
|
Loss
on disposal of fixed assets, net
|
(391
|
)
|
(91
|
)
|
|||||
|
Income
from operations
|
40,365
|
46,888
|
|||||||
|
Mountain
equity investment income, net
|
2,895
|
2,331
|
|||||||
|
Investment
income
|
5,237
|
4,481
|
|||||||
|
Interest
expense, net
|
(15,179
|
)
|
(16,847
|
)
|
|||||
|
Contract
dispute credit (charges), net
|
11,920
|
(4,276
|
)
|
||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(2,847
|
)
|
(4,363
|
)
|
|||||
|
Income
before provision for income taxes
|
42,391
|
28,214
|
|||||||
|
Provision
for income taxes
|
(15,685
|
)
|
(11,004
|
)
|
|||||
|
Net
income
|
$
|
26,706
|
$
|
17,210
|
|||||
|
Per
share amounts:
|
|||||||||
|
Basic
net income per share
|
$
|
0.69
|
$
|
0.44
|
|||||
|
Diluted
net income per share
|
$
|
0.68
|
$
|
0.44
|
|||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
81,017
|
$
|
81,162
|
|||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
$
|
82,911
|
$
|
83,239
|
|||||
|
Lodging
Reported EBITDA
|
$
|
126
|
$
|
6,098
|
|||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
$
|
725
|
$
|
6,652
|
|||||
|
Resort
Reported EBITDA
|
$
|
81,143
|
$
|
87,260
|
|||||
|
Resort
Reported EBITDA excluding stock-based compensation
|
$
|
83,636
|
$
|
89,891
|
|||||
|
Real
Estate Reported EBITDA
|
$
|
6,891
|
$
|
6,629
|
|||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
$
|
8,298
|
$
|
7,723
|
|||||
|
Vail
Resorts, Inc.
|
|||||||||||||||||||||||||||||
|
Resort
Revenue by Business Line and Skier Visits
|
|||||||||||||||||||||||||||||
|
(In
thousands)
|
|||||||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||||||
|
Three
Months Ended
|
Percentage
|
Six
Months Ended
|
Percentage
|
||||||||||||||||||||||||||
|
January
31,
|
Increase
|
January
31,
|
Increase
|
||||||||||||||||||||||||||
|
2008
|
2007
|
(Decrease)
|
2008
|
2007
|
(Decrease)
|
||||||||||||||||||||||||
|
Business
Line
|
|||||||||||||||||||||||||||||
|
Lift
tickets
|
$
|
133,998
|
$
|
128,617
|
4.2
|
%
|
$
|
133,998
|
$
|
128,617
|
4.2
|
%
|
|||||||||||||||||
|
Ski
school
|
35,155
|
34,198
|
2.8
|
%
|
35,155
|
34,198
|
2.8
|
%
|
|||||||||||||||||||||
|
Dining
|
22,895
|
22,468
|
1.9
|
%
|
27,658
|
26,354
|
4.9
|
%
|
|||||||||||||||||||||
|
Retail/rental
|
66,771
|
63,291
|
5.5
|
%
|
90,311
|
87,809
|
2.8
|
%
|
|||||||||||||||||||||
|
Other
|
20,903
|
23,452
|
(10.9
|
)
|
%
|
35,136
|
41,211
|
(14.7
|
)
|
%
|
|||||||||||||||||||
|
Total Mountain
Revenue
|
$
|
279,722
|
$
|
272,026
|
2.8
|
%
|
$
|
322,258
|
$
|
318,189
|
1.3
|
%
|
|||||||||||||||||
|
Total
Lodging Revenue
|
$
|
34,827
|
$
|
32,796
|
6.2
|
%
|
$
|
78,144
|
$
|
73,204
|
6.7
|
%
|
|||||||||||||||||
|
Total
Resort Revenue
|
$
|
314,549
|
$
|
304,822
|
3.2
|
%
|
$
|
400,402
|
$
|
391,393
|
2.3
|
%
|
|||||||||||||||||
|
Three
Months Ended
|
Percentage
|
Six
Months Ended
|
Percentage
|
||||||||||||||||||||||||||
|
January
31,
|
Increase
|
January
31,
|
Increase
|
||||||||||||||||||||||||||
|
2008
|
2007
|
(Decrease)
|
2008
|
2007
|
(Decrease)
|
||||||||||||||||||||||||
|
Skier
Visits
|
|||||||||||||||||||||||||||||
|
Vail
|
680
|
725
|
(6.2
|
)
|
%
|
680
|
725
|
(6.2
|
)
|
%
|
|||||||||||||||||||
|
Breckenridge
|
743
|
774
|
(4.0
|
)
|
%
|
743
|
774
|
(4.0
|
)
|
%
|
|||||||||||||||||||
|
Keystone
|
571
|
598
|
(4.5
|
)
|
%
|
571
|
598
|
(4.5
|
)
|
%
|
|||||||||||||||||||
|
Heavenly
|
403
|
407
|
(1.0
|
)
|
%
|
403
|
407
|
(1.0
|
)
|
%
|
|||||||||||||||||||
|
Beaver
Creek
|
402
|
408
|
(1.5
|
)
|
%
|
402
|
408
|
(1.5
|
)
|
%
|
|||||||||||||||||||
|
Total
Skier Visits
|
2,799
|
2,912
|
(3.9
|
)
|
%
|
2,799
|
2,912
|
(3.9
|
)
|
%
|
|||||||||||||||||||
|
Effective
Ticket Price
|
$
|
47.87
|
$
|
44.17
|
8.4
|
%
|
$
|
47.87
|
$
|
44.17
|
8.4
|
%
|
|||||||||||||||||
|
Key
Balance Sheet Data
|
|||||||
|
(In
thousands)
|
|||||||
|
(Unaudited)
|
|||||||
|
As
of January 31,
|
|||||||
|
2008
|
2007
|
||||||
|
Real
estate held for sale and investment
|
$
|
381,379
|
$
|
293,219
|
|||
|
Total
stockholders' equity
|
720,884
|
658,421
|
|||||
|
Long-term
debt
|
554,411
|
551,866
|
|||||
|
Long-term
debt due within one year
|
100,710
|
440
|
|||||
|
Total
debt
|
655,121
|
552,306
|
|||||
|
Less:
cash and cash equivalents
|
274,433
|
254,866
|
|||||
|
Net
debt
|
$
|
380,688
|
$
|
297,440
|
|||
Reconciliation
of Non-GAAP Financial Measures
Resort,
Mountain, Lodging and Real Estate Reported EBITDA and Resort, Mountain, Lodging
and Real Estate Reported EBITDA excluding stock-based compensation have been
presented herein as measures of the Company's financial operating
performance. Reported EBITDA, Reported EBITDA excluding stock-based
compensation and Net Debt (defined as long-term debt plus long-term debt due
within one year less cash and cash equivalents) are not measures of financial
performance or liquidity under accounting principles generally accepted in the
United States of America ("GAAP"), and they might not be comparable to similarly
titled measures of other companies. Reported EBITDA, Reported EBITDA
excluding stock-based compensation and Net Debt 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 including net income,
net change in cash and cash equivalents or other financial statement
data. The Company believes that Reported EBITDA and Reported EBITDA
excluding stock-based compensation are indicative measures of the Company's
operating performance, and each similar to performance metrics generally used by
investors to evaluate companies in the resort and lodging
industries. The Company primarily uses Reported EBITDA excluding
stock-based compensation targets in evaluating performance. The
Company believes that Net Debt is an important measurement as it is an indicator
of the Company’s ability to obtain additional capital resources for its future
cash needs.
Presented
below is a reconciliation of Reported EBITDA and Reported EBITDA excluding
stock-based compensation to net income for the Company calculated in accordance
with GAAP for the three and six months ended January 31, 2008 and
2007.
|
(In
thousands)
|
||||||||||
|
Three
Months Ended
|
||||||||||
|
January
31,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2008
|
2007
|
|||||||||
|
Mountain
revenue, net
|
$
|
279,722
|
$
|
272,026
|
||||||
|
Mountain
operating expense excluding stock-based compensation
|
(162,438
|
)
|
(158,814
|
)
|
||||||
|
Mountain
equity investment income, net
|
926
|
1,496
|
||||||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
118,210
|
114,708
|
||||||||
|
Mountain
stock-based compensation
|
(750
|
)
|
(1,057
|
)
|
||||||
|
Mountain
Reported EBITDA
|
117,460
|
113,651
|
||||||||
|
Lodging
revenue, net
|
34,827
|
32,796
|
||||||||
|
Lodging
operating expense excluding stock-based compensation
|
(36,443
|
)
|
(30,536
|
)
|
||||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
(1,616
|
)
|
2,260
|
|||||||
|
Lodging
stock-based compensation
|
(339
|
)
|
(221
|
)
|
||||||
|
Lodging
Reported EBITDA
|
(1,955
|
)
|
2,039
|
|||||||
|
Resort
Reported EBITDA*
|
115,505
|
115,690
|
||||||||
|
Resort
Reported EBITDA excluding stock-based compensation*
|
116,594
|
116,968
|
||||||||
|
Real
Estate revenue, net
|
45,471
|
56,216
|
||||||||
|
Real
Estate operating expense excluding stock-based
compensation
|
(43,572
|
)
|
(49,905
|
)
|
||||||
|
Gain
on sale of real property
|
709
|
--
|
||||||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
2,608
|
6,311
|
||||||||
|
Real
Estate stock-based compensation
|
(837
|
)
|
(486
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
1,771
|
5,825
|
||||||||
|
Total
Reported EBITDA
|
117,276
|
121,515
|
||||||||
|
Depreciation
and amortization
|
(23,621
|
)
|
(21,759
|
)
|
||||||
|
Relocation
and separation charges
|
--
|
(500
|
)
|
|||||||
|
Loss
on disposal of fixed assets, net
|
(157
|
)
|
(10
|
)
|
||||||
|
Investment
income
|
2,019
|
2,417
|
||||||||
|
Interest
expense, net
|
(7,535
|
)
|
(7,911
|
)
|
||||||
|
Contract
dispute charges
|
--
|
(672
|
)
|
|||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,910
|
)
|
(6,152
|
)
|
||||||
|
Income
before provision for income taxes
|
83,072
|
86,928
|
||||||||
|
Provision
for income taxes
|
(31,753
|
)
|
(33,902
|
)
|
||||||
|
Net
income
|
$
|
51,319
|
$
|
53,026
|
||||||
* Resort represents the sum of Mountain
and Lodging
|
(In
thousands)
|
||||||||||
|
Six
Months Ended
|
||||||||||
|
January
31,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2008
|
2007
|
|||||||||
|
Mountain
revenue, net
|
$
|
322,258
|
$
|
318,189
|
||||||
|
Mountain
operating expense excluding stock-based compensation
|
(242,242
|
)
|
(237,281
|
)
|
||||||
|
Mountain
equity investment income, net
|
2,895
|
2,331
|
||||||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
82,911
|
83,239
|
||||||||
|
Mountain
stock-based compensation
|
(1,894
|
)
|
(2,077
|
)
|
||||||
|
Mountain
Reported EBITDA
|
81,017
|
81,162
|
||||||||
|
Lodging
revenue, net
|
78,144
|
73,204
|
||||||||
|
Lodging
operating expense excluding stock-based compensation
|
(77,419
|
)
|
(66,552
|
)
|
||||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
725
|
6,652
|
||||||||
|
Lodging
stock-based compensation
|
(599
|
)
|
(554
|
)
|
||||||
|
Lodging
Reported EBITDA
|
126
|
6,098
|
||||||||
|
Resort
Reported EBITDA*
|
81,143
|
87,260
|
||||||||
|
Resort
Reported EBITDA excluding stock-based compensation*
|
83,636
|
89,891
|
||||||||
|
Real
Estate revenue, net
|
57,504
|
83,138
|
||||||||
|
Real
Estate operating expense excluding stock-based
compensation
|
(49,915
|
)
|
(75,415
|
)
|
||||||
|
Gain
on sale of real property
|
709
|
--
|
||||||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
8,298
|
7,723
|
||||||||
|
Real
Estate stock-based compensation
|
(1,407
|
)
|
(1,094
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
6,891
|
6,629
|
||||||||
|
Total
Reported EBITDA
|
88,034
|
93,889
|
||||||||
|
Depreciation
and amortization
|
(44,383
|
)
|
(43,344
|
)
|
||||||
|
Relocation
and separation charges
|
--
|
(1,235
|
)
|
|||||||
|
Loss
on disposal of fixed assets, net
|
(391
|
)
|
(91
|
)
|
||||||
|
Investment
income
|
5,237
|
4,481
|
||||||||
|
Interest
expense, net
|
(15,179
|
)
|
(16,847
|
)
|
||||||
|
Contract
dispute credit (charges), net
|
11,920
|
(4,276
|
)
|
|||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(2,847
|
)
|
(4,363
|
)
|
||||||
|
Income
before provision for income taxes
|
42,391
|
28,214
|
||||||||
|
Provision
for income taxes
|
(15,685
|
)
|
(11,004
|
)
|
||||||
|
Net
income
|
$
|
26,706
|
$
|
17,210
|
||||||
* Resort represents the sum of
Mountain and Lodging
Presented
below is a reconciliation of Total Reported EBITDA to net income for the Company
calculated in accordance with GAAP for the twelve months ended January 31,
2008. Also presented is a reconciliation of Net Debt to Long-term
Debt and the calculation of Net Debt to Total Reported EBITDA.
|
(In
thousands)
|
||||||
|
Twelve
|
||||||
|
Months
Ended
|
||||||
|
January
31,
|
||||||
|
2008
|
||||||
|
Mountain
Reported EBITDA
|
$
|
207,583
|
||||
|
Lodging
Reported EBITDA
|
12,228
|
|||||
|
Resort
EBITDA*
|
219,811
|
|||||
|
Real
Estate Reported EBITDA
|
(2,219
|
)
|
||||
|
Total
Reported EBITDA
|
217,592
|
|||||
|
Depreciation
and amortization
|
(88,702
|
)
|
||||
|
Relocation
and separation charges
|
(198
|
)
|
||||
|
Loss
on disposal of fixed assets, net
|
(1,384
|
)
|
||||
|
Investment
income
|
13,159
|
|||||
|
Interest
expense, net
|
(30,957
|
)
|
||||
|
Loss
on sale of businesses, net
|
(639
|
)
|
||||
|
Contract
dispute credit, net
|
11,555
|
|||||
|
Gain
on put options, net
|
690
|
|||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(6,287
|
)
|
||||
|
Income
before provision for income taxes
|
114,829
|
|||||
|
Provision
for income taxes
|
(43,934
|
)
|
||||
|
Net
income
|
$
|
70,895
|
||||
* Resort represents the sum of Mountain
and Lodging
|
(In
thousands)
|
||||||
|
As
of
|
||||||
|
January
31,
|
||||||
|
2008
|
||||||
|
Long-term
debt
|
$
|
554,411
|
||||
|
Long-term
debt due within one year
|
100,710
|
|||||
|
Total
debt
|
655,121
|
|||||
|
Less:
cash and cash equivalents
|
274,433
|
|||||
|
Net
debt
|
$
|
380,688
|
||||
|
Net
debt to Total Reported EBITDA
|
1.75
|
|||||
Presented
below is a reconciliation of net income excluding stock-based compensation, tax
effected, to net income of the Company calculated in accordance with GAAP for
the three and six months ended January 31, 2008 and 2007. Also
presented is a reconciliation of net income per diluted share excluding
stock-based compensation, tax effected, to net income per diluted share of the
Company calculated in accordance with GAAP for the three and six months ended
January 31, 2008 and 2007. The Company has presented these non-GAAP
measures as it believes that this presentation provides a more comparable
measure of the Company's historical results from ongoing operations for the
three and six months ended January 31, 2008 and January 31, 2007 to prior
periods.
|
Three
Months
|
|||||||||
|
Ended
January 31,
|
|||||||||
|
(Unaudited)
|
|||||||||
|
(In
thousands, except per share amounts)
|
2008
|
2007
|
|||||||
|
Net
income excluding stock-based compensation
|
$
|
52,515
|
$
|
54,121
|
|||||
|
Stock-based
compensation expense, before benefit from income taxes
|
(1,926
|
)
|
(1,764
|
)
|
|||||
|
Adjustment
for benefit from income taxes
|
730
|
669
|
|||||||
|
Net
income
|
$
|
51,319
|
$
|
53,026
|
|||||
|
Diluted
net income per share excluding stock-based compensation
|
$
|
1.34
|
$
|
1.38
|
|||||
|
Stock-based
compensation expense per diluted common share, before
benefit
|
|||||||||
|
from
income taxes
|
(0.05
|
)
|
(0.04
|
)
|
|||||
|
Adjustment
for benefit from income taxes, per diluted common share
|
0.02
|
0.02
|
|||||||
|
Diluted
net income per share
|
$
|
1.31
|
$
|
1.35
|
|||||
|
Six
Months
|
|||||||||
|
Ended
January 31,
|
|||||||||
|
(Unaudited)
|
|||||||||
|
(In
thousands, except per share amounts)
|
2008
|
2007
|
|||||||
|
Net
income excluding stock-based compensation
|
$
|
29,127
|
$
|
19,522
|
|||||
|
Stock-based
compensation expense, before benefit from income taxes
|
(3,900
|
)
|
(3,725
|
)
|
|||||
|
Adjustment
for benefit from income taxes
|
1,479
|
1,413
|
|||||||
|
Net
income
|
$
|
26,706
|
$
|
17,210
|
|||||
|
Diluted
net income per share excluding stock-based compensation
|
$
|
0.74
|
$
|
0.50
|
|||||
|
Stock-based
compensation expense per diluted common share, before
benefit
|
|||||||||
|
from
income taxes
|
(0.10
|
)
|
(0.10
|
)
|
|||||
|
Adjustment
for benefit from income taxes, per diluted common share
|
0.04
|
0.04
|
|||||||
|
Diluted
net income per share
|
$
|
0.68
|
$
|
0.44
|
|||||
A
reconciliation of the low and high ends of the forecasted guidance range given
for Reported EBITDA and Reported EBITDA excluding stock-based compensation for
the Company's fiscal year ending July 31, 2008 is presented below.
|
(In
thousands)
|
|||||||
|
For
the Year Ending
|
|||||||
|
July
31, 2008
|
|||||||
|
Low
End Range
|
High
End Range
|
||||||
|
Resort
Reported EBITDA excluding stock-based compensation(1)
|
$
|
235,000
|
$
|
245,000
|
|||
|
Resort
segment stock-based compensation
|
(5,000
|
)
|
(5,000
|
)
|
|||
|
Resort
Reported EBITDA(1)
|
230,000
|
240,000
|
|||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
57,000
|
63,000
|
|||||
|
Real
Estate segment stock-based compensation
|
(3,000
|
)
|
(3,000
|
)
|
|||
|
Real
Estate Reported EBITDA
|
54,000
|
60,000
|
|||||
|
Total
Reported EBITDA
|
284,000
|
300,000
|
|||||
|
Depreciation
and amortization
|
(91,500
|
)
|
(90,500
|
)
|
|||
|
Loss
on disposal of fixed assets, net
|
(1,000
|
)
|
(1,000
|
)
|
|||
|
Investment
income
|
12,000
|
12,500
|
|||||
|
Interest
expense, net
|
(31,000
|
)
|
(30,000
|
)
|
|||
|
Contract
dispute credit, net
|
11,920
|
11,920
|
|||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(5,000
|
)
|
(6,000
|
)
|
|||
|
Income
before provision for income taxes
|
179,420
|
196,920
|
|||||
|
Provision
for income taxes
|
(67,900
|
)
|
(74,800
|
)
|
|||
|
Net
income
|
$
|
111,520
|
$
|
122,120
|
|||
|
(1)
|
Resort
represents the sum of Mountain and Lodging. The Company provides Reported
EBITDA ranges for the Mountain and Lodging segments, as well as for the
two combined. Readers are cautioned to recognize that the low
end of the expected ranges provided for the Lodging and Mountain segments,
while possible, do not sum to the low end of the Resort Reported EBITDA
range provided because we do not necessarily expect or assume that we will
actually hit the low end of both ranges, as the actual Resort Reported
EBITDA will depend on the actual mix of the Lodging and Mountain
components. Similarly, the high end of the ranges for the
Lodging and Mountain segments do not sum to the high end of the Resort
range.
|
A
reconciliation of the low and high ends of the forecasted guidance range given
for net income excluding stock-based compensation for the Company's fiscal year
ending July 31, 2008 is presented below.
|
(In
thousands)
|
|||||||
|
For
the Year Ending
|
|||||||
|
July
31, 2008
|
|||||||
|
Low
End Range
|
High
End Range
|
||||||
|
Net
income excluding stock-based compensation
|
$
|
116,520
|
$
|
127,120
|
|||
|
Stock-based
compensation expense, before benefit from income taxes
|
(8,000
|
)
|
(8,000
|
)
|
|||
|
Adjustment
for benefit from income taxes
|
3,000
|
3,000
|
|||||
|
Net
income
|
$
|
111,520
|
$
|
122,120
|
|||