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): June 5, 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 June
5, 2008, Vail Resorts, Inc. issued a press release announcing its results for
the three and nine months ended April 30, 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:
June 5, 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 June 5, 2008, announcing fiscal 2008 third 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 Third Quarter Results
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l
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Record
third quarter Resort revenue of $369.3 million, a 4.8% increase over the
prior year’s record third quarter.
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l
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Record
third quarter Mountain Reported EBITDA of $168.6 million, a 7.1% increase
over the prior year’s record third quarter.
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l
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Record
third quarter Resort Reported EBITDA of $176.7 million, a 4.0% increase
over the prior year’s record third quarter.
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l
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Record
third quarter net income of $87.3 million, an 11.3% increase over the
prior year’s record third quarter.
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BROOMFIELD,
Colo. - June 5, 2008 - Vail Resorts, Inc. (NYSE: MTN) announced today financial
results for the third quarter of fiscal 2008 ended April 30, 2008.
The
Company uses the terms “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.
THIRD QUARTER
PERFORMANCE
Mountain
Segment
Mountain
revenue increased $17.0 million, or 5.5%, in the third quarter of fiscal 2008 to
$325.7 million from $308.7 million for the same quarter last fiscal
year. Mountain operating expense increased $4.8 million, or 3.1%, to
$157.8 million. Mountain equity investment income, net decreased $1.0
million. Mountain Reported EBITDA increased $11.2 million, or 7.1%,
to $168.6 million compared to $157.4 million for the same quarter last fiscal
year.
Lodging
Segment
Lodging
revenue of $43.6 million was flat in the third quarter of fiscal
2008. The prior year period included $2.6 million of revenue
associated with the termination of the management agreement at The Equinox
(pursuant to the terms of the management agreement) as a result of the sale of
the hotel by the hotel owner. Excluding the termination fee, Lodging
revenue would have increased $2.6 million, or 6.3%. Lodging operating
expense increased $4.4 million, or 14.1%, to $35.5 million. Lodging
Reported EBITDA decreased $4.4 million, or 35.5%, to $8.1 million compared to
$12.5 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 $17.0
million, or 4.8%, in the third quarter of fiscal 2008 to $369.3 million from
$352.4 million for the same quarter last fiscal year. Resort
operating expense increased $9.2 million, or 5.0%, to $193.3
million. Resort equity investment income, net decreased $1.0
million. Resort Reported EBITDA increased $6.8 million, or 4.0%, to
$176.7 million compared to $169.9 million for the same quarter last fiscal
year. Resort Reported EBITDA excluding stock-based compensation
increased $6.8 million, or 4.0%, to $178.0 million.
Real Estate
Segment
Real
Estate revenue increased $37.3 million, or 217.9%, in the third quarter of
fiscal 2008 to $54.5 million from $17.1 million for the same quarter last fiscal
year. Real Estate operating expense increased $28.3 million, or
112.0%, to $53.6 million. Real Estate Reported EBITDA increased $9.0
million, or 111.2%, to $0.9 million compared to a loss of $8.1 million for the
same quarter last fiscal year.
Total
Performance
Total
revenue increased $54.3 million, or 14.7%, in the third quarter of fiscal 2008
to $423.8 million from $369.5 million for the same quarter last fiscal
year. Income from operations for the quarter increased $15.3 million,
or 11.2%, to $151.5 million.
The
Company reported third quarter fiscal 2008 net income of $87.3 million, or $2.24
per diluted share, compared to net income of $78.5 million, or $1.99 per diluted
share, for the same quarter last fiscal year. Excluding stock-based
compensation expense, the Company’s net income for the third quarter of fiscal
2008 would have been $88.7 million, or $2.28 per diluted share, compared to net
income of $79.6 million excluding stock-based compensation, or $2.02 per diluted
share, for the same quarter last fiscal year. The Company recorded
total pre-tax stock-based compensation expense of $2.1 million and $1.7 million
in the three months ended April 30, 2008 and April 30, 2007,
respectively.
NINE MONTH
PERFORMANCE
Mountain
Segment
Mountain
revenue increased $21.1 million, or 3.4%, for the nine months ended April 30,
2008, to $648.0 million from $626.9 million for the comparable period last
fiscal year. Mountain operating expense increased $9.6 million, or
2.4%, to $401.9 million. In the current fiscal year nine 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”). Mountain equity investment
income, net decreased $0.4 million. Mountain Reported EBITDA
increased $11.1 million, or 4.7%, to $249.6 million compared to $238.5 million
for the comparable period last fiscal year.
Lodging
Segment
Lodging
revenue increased $4.9 million, or 4.2%, for the nine months ended April 30,
2008, to $121.7 million from $116.8 million for the comparable period last
fiscal year. The prior year period included the $2.6 million of
revenue associated with the termination of the management agreement at The
Equinox (pursuant to the terms of the management agreement) and $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), in
conjunction with the closing of the hotel as part of a redevelopment plan by the
current hotel owner. Excluding the termination fees, Lodging revenue
would have increased $9.9 million, or 8.9%. Lodging operating expense
increased $15.3 million, or 15.6%, to $113.5 million. Lodging
operating expense included approximately $3.1 million of start-up and
pre-opening expenses related to The Arrabelle at Vail Square
hotel. Lodging Reported EBITDA decreased $10.4 million, or 55.9%, to
$8.2 million compared to $18.6 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 $26.0
million, or 3.5%, for the nine months ended April 30, 2008, to $769.7 million
from $743.8 million for the comparable period last fiscal
year. Excluding the impact of the prior year Equinox and The Lodge at
Rancho Mirage termination fees, Resort revenue would have increased $31.0
million, or 4.2%. Resort operating expense increased $24.9 million,
or 5.1%, to $515.5 million for the nine months ended April 30,
2008. Excluding the $2.0 million of expense associated with The
Canyons litigation and $3.1 million of start-up and pre-opening expenses related
to The Arrabelle at Vail Square hotel, Resort expenses would have increased
$19.8 million, or 4.0%. Resort equity investment income, net
decreased $0.4 million. Resort Reported EBITDA increased $0.7
million, or 0.3%, to $257.8 million compared to $257.2 million for the
comparable period last fiscal year. Resort Reported EBITDA excluding
stock-based compensation increased $0.6 million, or 0.2%, to $261.6
million.
Real Estate
Segment
Real
Estate revenue increased $11.7 million, or 11.7%, for the nine months ended
April 30, 2008, to $112.0 million from $100.3 million for the comparable period
last fiscal year. Real Estate operating expense increased $3.1
million, or 3.1%, to $104.9 million. Gain on sale of real property
increased $0.7 million. Real Estate Reported EBITDA increased $9.3
million, or 620.8%, to $7.8 million compared to a loss of $1.5 million for the
comparable period last fiscal year.
Total
Performance
Total
revenue increased $37.7 million, or 4.5%, for the nine months ended April 30,
2008, to $881.7 million from $844.0 million for the comparable period last
fiscal year. Income from operations for the nine months increased
$8.8 million, or 4.8%, to $191.8 million.
The
Company reported net income of $114.0 million, or $2.91 per diluted share, for
the first nine months of fiscal 2008, compared to net income of $95.7 million,
or $2.44 per diluted share, for the comparable period last fiscal
year. Included in the first nine months fiscal 2008 results is the
receipt of the final cash settlement from Cheeca Holdings, LLC of which $11.9
million (net of final attorney’s 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 nine months ended April
30, 2008, would have been $117.8 million, or $3.01 per diluted share, compared
to net income of $99.1 million excluding stock-based compensation, or $2.52 per
diluted share, for the comparable period last fiscal year. The Company recorded
total pre-tax stock-based compensation expense of $6.0 million and $5.5 million
in the nine months ended April 30, 2008 and April 30, 2007,
respectively.
Business Commentary and
Outlook
Robert
Katz, chief executive officer, commented, “I am quite pleased with our results
for the fiscal 2008 third quarter and for the nine months ended April 30, 2008,
which includes virtually all of the 2007/2008 ski season. Despite the
worsened U.S. economy and its impact on the travel sector, as well as the very
slow start to the ski season due to difficult weather conditions, our results
for the third quarter and first nine months of fiscal year 2008 set new all-time
records in Resort revenue, Mountain and Resort Reported EBITDA and net
income. Importantly, all of this growth was achieved on an organic
basis at our existing resorts. Mountain segment revenue in the third
quarter increased 5.5% over the prior year’s third quarter with approximately
66% of our incremental revenue growth flowing through to Mountain Reported
EBITDA, resulting in Mountain Reported EBITDA margins increasing from 51.0% to
51.8%. For the 2007/2008 season compared to the 2006/2007 season,
total skier visits were slightly down by 0.5%. However, excluding the
Early Season (defined as the period from the start of the season through
December 23, 2007), total skier visits were up 4.1%. Lift revenue for
the season (excluding season pass revenue) was up 4.3%, reflecting effective
ticket price growth of 7.7% (excluding season pass) and solid visitation during
peak periods offsetting softer visitation during the Early Season and other
non-peak periods. Season pass revenue was also up 7.6% for the season
and season pass holders skied an extra one half day per pass on
average. During the quarter, our ski school, dining and retail/rental
ancillary Mountain segment businesses grew, outpacing our total skier visit
growth, with guests continuing to spend more on these areas per
visit. A key driver in our growth for the year was an estimated 26%
increase in international guest visitation compared to the prior year, which
included an estimated 28% increase over the prior year third
quarter. This growth in international visitation mitigated softness
in U.S. destination visitation due to U.S. economic weakness.”
Katz
continued, “As we look ahead to the 2008/2009 ski season, we are very excited
with the launch of the Epic Season Pass. It offers unlimited and
unrestricted skiing at all five of our resorts for the entire season at an
initial price of $579. The pass must be purchased on or before
November 15, 2008. With this new product, we expect to build on the
success of our Colorado, Heavenly and other season pass products, which
currently represent approximately 26% of our total lift ticket revenue, the vast
majority of which are purchased prior to start of the ski season, providing
greater stability to our results. With the Epic Season Pass, we are
hoping to increase that percentage and provide our guests from around the world
a true “full season” experience at our resorts. Additionally, we have
just concluded our Colorado spring pass sales efforts, which historically have
represented approximately 26% of our total Colorado season passes sold in sales
dollars, prior to the Epic Season Pass introduction. This year’s
Colorado spring pass sales, excluding Epic Season Passes sold to new pass
holders, were up 2% in sales dollars over the prior year. It is
important to note that the comparable Colorado spring pass sales in the prior
year were up 59% in sales dollars over spring pass sales for the 2006/2007 ski
season, though ultimately flattened out in the fall, so at this point we are
satisfied with these results.”
Katz
added, “Despite the fact that our mountain related lodging properties
experienced similar trends that we indicated above, our Lodging segment, on a
“same store” basis for the quarter, benefited from a 6.9% average daily rate
increase due to strong demand during the peak periods, which also helped drive a
6.3% increase in total Lodging revenue, excluding the impact of the revenue
associated with the prior year’s termination fee of $2.6 million. In
addition, our Real Estate segment benefited from the closings of 17 additional
Arrabelle units in the third quarter driving a $9.0 million increase in Real
Estate Reported EBITDA.”
Commenting
on the Company’s Breckenridge and Vail real estate development projects, Katz
said, “As we lead the way in transforming the Breckenridge real estate
landscape, we are very excited with our ski-in/ski-out projects currently under
development, including Crystal Peak Lodge at the base of Peak 7 with all 46
units under contract and closings on these units expected to occur in the winter
of 2008. In addition, our latest project, the RockResorts branded One
Ski Hill Place, which we brought to market in December 2007, will create a
unique luxury experience at the base of Peak 8. To date, we have
released 70 units of the total 88 units with an average price per square foot of
$1,246 (29% in excess of Crystal Peak released just a year
ago). Currently, we have 49 units under contract, representing gross
sales proceeds of $69.6 million and have commenced construction on this exciting
project. We currently expect that income, before provision for income
taxes and before allocated corporate or Vail Resorts Development Company
overhead, for One Ski Hill Place will range from $15 million to $25
million. Turning to our Vail development projects, one additional
Ritz-Carlton Residences, Vail unit was placed under contract in the quarter with
currently 47 of the 71 available two- to six- bedroom whole ownership
condominium units and all 45 fractional condominium units under contract,
representing 67% of total expected revenue. With respect to The
Arrabelle at Vail Square project, to date we have closed on 29 of the 67 units,
and anticipate closing on 35 of the remaining 38 units in the fiscal fourth
quarter. We are shifting the expected closing of three of the
remaining Arrabelle units into fiscal 2009 based on the timing of completing
construction on those units including one unit, which is no longer under
contract but has been relisted for approximately 36% over its previous contract
price. Finally, we still anticipate closing on six of the thirteen
Lodge at Vail Chalets in the fiscal fourth quarter with the remaining seven
Chalets closing in the first half of fiscal 2009.”
As an
update on the Vail Mountain Club, Katz commented, “We are incredibly excited
with the sales at the Vail Mountain Club, as we have nearly sold all of the
currently available social and full memberships. To date, we have
sold 383, or 96% of the available memberships, including 184 full memberships,
which include parking privileges, and an additional 199 social memberships,
which exclude parking privileges, representing total sales commitments of $69.0
million of total proceeds when paid in full. This includes the sale
of 23 full memberships and 28 social memberships since our March 10, 2008,
earnings release. The sales of these memberships, in the midst of
this economy and before the club has opened, which will occur next ski season,
certainly signal the extraordinary experience that membership in the Vail
Mountain Club will offer and provides another exclusive commitment to Vail from
many of our guests.”
On the
Company’s lodging development, Katz said, “We are excited with the development
occurring at our RockResorts lodging brand with the announcement this quarter of
two new properties to the brand, including another new warm weather destination
with the management of the Third Turtle Club & Spa in the Turks & Caicos
Islands. This property is expected to open in 2011 and will feature
approximately 280 total ocean and marina front one-, two-, three- and
four-bedroom units. In addition to managing the project's luxury
residences and suites, spa facilities and restaurants, RockResorts will also
manage the resort's commercial activities, private yacht harbor and beach
club. We also announced The Osprey at Beaver Creek will join the
RockResorts brand as an owned hotel, formerly known as the Inn at Beaver
Creek. The Osprey is undergoing a $7 million transformation this
summer and scheduled to be relaunched as RockResorts' newest addition in time
for the 2008-2009 ski season. The 41-room hotel is situated in the
heart of the village of the world-class Beaver Creek Resort, set against a
spectacular mountain backdrop and is the closest hotel to a chairlift in North
America. The addition of these properties reflects the tremendous
opportunity of the RockResorts brand as we continue to add to our collection of
unique upscale resort hotels.”
Katz
added, “While challenges exist with the U.S. economic climate and outlook, we
feel that our business model remains resilient, supported by the results of our
third quarter, the strongest quarter of our fiscal year. Furthermore,
we continue to maintain a very strong balance sheet position with $304 million
of cash and cash equivalents and a net debt position of less than one and a half
times trailing twelve months Total Reported EBITDA, which provides us additional
flexibility to take advantage of future opportunities. Given our
performance to date and with the conclusion of our winter season including a
softer April for the Resort business than had been expected, I wanted to take
this opportunity to reaffirm our previously announced guidance that we issued in
March 2008, although we now estimate falling at the lower end of our Resort and
Real Estate guidance ranges and at or slightly below our net income
range. We currently expect full year Resort Reported EBITDA, the
combination of our Mountain and Lodging segments, to fall at the lower end of
the $230 million to $240 million range and Resort Reported EBITDA excluding
stock-based compensation expense to fall at the lower end of the $235 million to
$245 million range. 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. With respect to Real Estate,
given the shifting of three of The Arrabelle units into fiscal 2009, we expect
our Real Estate Reported EBITDA to be at the lower end of the previously
announced $54 million to $60 million range and Real Estate Reported EBITDA
excluding stock-based compensation expense expected to be at the lower end of
the $57 million to $63 million range. Based on our current estimates,
we expect net income to be at or slightly below the lower end of the $112
million to $122 million range and net income excluding stock-based compensation
expense to be at or slightly below the lower end of the $117 million to $127
million range.”
Katz
concluded, “In addition, during the third quarter, we continued our previously
announced share repurchase program, resulting in the repurchase of 321,150
shares at an average price of $46.70 for a total amount of $15.0
million. Since inception of this program in fiscal 2006, the Company
has repurchased 1,506,233 shares at an average price of $44.29 for a total
amount of approximately $66.7 million, with 1,493,767 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.”
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.
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|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Three
Months Ended
|
|||||||||
|
April
30,
|
|||||||||
|
2008
|
2007
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
325,726
|
$
|
308,712
|
|||||
|
Lodging
|
43,590
|
43,643
|
|||||||
|
Real
estate
|
54,474
|
17,134
|
|||||||
|
Total
net revenue
|
423,790
|
369,489
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
157,807
|
152,997
|
|||||||
|
Lodging
|
35,513
|
31,126
|
|||||||
|
Real
estate
|
53,562
|
25,261
|
|||||||
|
Total
segment operating expense
|
246,882
|
209,384
|
|||||||
|
Other
operating income (expense):
|
|||||||||
|
Depreciation
and amortization
|
(25,471
|
)
|
(23,513
|
)
|
|||||
|
Relocation
and separation charges
|
--
|
(166
|
)
|
||||||
|
Gain
(loss) on disposal of fixed assets, net
|
24
|
(242
|
)
|
||||||
|
Income
from operations
|
151,461
|
136,184
|
|||||||
|
Mountain
equity investment income, net
|
698
|
1,660
|
|||||||
|
Investment
income
|
2,459
|
4,334
|
|||||||
|
Interest
expense, net
|
(8,441
|
)
|
(8,039
|
)
|
|||||
|
Loss
on sale of business
|
--
|
(601
|
)
|
||||||
|
Contract
dispute charges
|
--
|
(184
|
)
|
||||||
|
Gain
on put options, net
|
--
|
690
|
|||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,621
|
)
|
(5,343
|
)
|
|||||
|
Income
before provision for income taxes
|
141,556
|
128,701
|
|||||||
|
Provision
for income taxes
|
(54,215
|
)
|
(50,193
|
)
|
|||||
|
Net
income
|
$
|
87,341
|
$
|
78,508
|
|||||
|
Per share
amounts:
|
|||||||||
|
Basic
net income per share
|
$
|
2.26
|
$
|
2.02
|
|||||
|
Diluted
net income per share
|
$
|
2.24
|
$
|
1.99
|
|||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
168,617
|
$
|
157,375
|
|||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
$
|
169,572
|
$
|
158,361
|
|||||
|
Lodging
Reported EBITDA
|
$
|
8,077
|
$
|
12,517
|
|||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
$
|
8,418
|
$
|
12,823
|
|||||
|
Resort
Reported EBITDA
|
$
|
176,694
|
$
|
169,892
|
|||||
|
Resort
Reported EBITDA excluding stock-based compensation
|
$
|
177,990
|
$
|
171,184
|
|||||
|
Real
Estate Reported EBITDA
|
$
|
912
|
$
|
(8,127
|
)
|
||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
$
|
1,761
|
$
|
(7,671
|
)
|
||||
|
Vail
Resorts, Inc.
|
|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Nine
Months Ended
|
|||||||||
|
April
30,
|
|||||||||
|
2008
|
2007
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
647,984
|
$
|
626,902
|
|||||
|
Lodging
|
121,734
|
116,848
|
|||||||
|
Real
estate
|
111,978
|
100,272
|
|||||||
|
Total
net revenue
|
881,696
|
844,022
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
401,942
|
392,355
|
|||||||
|
Lodging
|
113,530
|
98,233
|
|||||||
|
Real
estate
|
104,885
|
101,770
|
|||||||
|
Total
segment operating expense
|
620,357
|
592,358
|
|||||||
|
Other
operating income (expense):
|
|||||||||
|
Gain
on sale of real property
|
709
|
--
|
|||||||
|
Depreciation
and amortization
|
(69,854
|
)
|
(66,857
|
)
|
|||||
|
Relocation
and separation charges
|
--
|
(1,401
|
)
|
||||||
|
Loss
on disposal of fixed assets, net
|
(367
|
)
|
(332
|
)
|
|||||
|
Income
from operations
|
191,827
|
183,074
|
|||||||
|
Mountain
equity investment income, net
|
3,592
|
3,990
|
|||||||
|
Investment
income
|
7,697
|
8,815
|
|||||||
|
Interest
expense, net
|
(23,620
|
)
|
(24,885
|
)
|
|||||
|
Loss
on sale of business
|
--
|
(601
|
)
|
||||||
|
Contract
dispute credit (charges), net
|
11,920
|
(4,460
|
)
|
||||||
|
Gain
on put options, net
|
--
|
690
|
|||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(7,468
|
)
|
(9,707
|
)
|
|||||
|
Income
before provision for income taxes
|
183,948
|
156,916
|
|||||||
|
Provision
for income taxes
|
(69,901
|
)
|
(61,197
|
)
|
|||||
|
Net
income
|
$
|
114,047
|
$
|
95,719
|
|||||
|
Per
share amounts:
|
|||||||||
|
Basic
net income per share
|
$
|
2.94
|
$
|
2.47
|
|||||
|
Diluted
net income per share
|
$
|
2.91
|
$
|
2.44
|
|||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
249,634
|
$
|
238,537
|
|||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
$
|
252,483
|
$
|
241,601
|
|||||
|
Lodging
Reported EBITDA
|
$
|
8,204
|
$
|
18,615
|
|||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
$
|
9,144
|
$
|
19,474
|
|||||
|
Resort
Reported EBITDA
|
$
|
257,838
|
$
|
257,152
|
|||||
|
Resort
Reported EBITDA excluding stock-based compensation
|
$
|
261,627
|
$
|
261,075
|
|||||
|
Real
Estate Reported EBITDA
|
$
|
7,802
|
$
|
(1,498
|
)
|
||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
$
|
10,058
|
$
|
52
|
|||||
|
Vail
Resorts, Inc.
|
|||||||||||||||||||||||||||||
|
Resort
Revenue by Business Line and Skier Visits
|
|||||||||||||||||||||||||||||
|
(In
thousands)
|
|||||||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||||||
|
Three
Months Ended
|
Percentage
|
Nine
Months Ended
|
Percentage
|
||||||||||||||||||||||||||
|
April
30,
|
Increase
|
April
30,
|
Increase
|
||||||||||||||||||||||||||
|
2008
|
2007
|
(Decrease)
|
2008
|
2007
|
(Decrease)
|
||||||||||||||||||||||||
|
Business
Line
|
|||||||||||||||||||||||||||||
|
Lift
tickets
|
$
|
167,793
|
$
|
158,380
|
5.9
|
%
|
$
|
301,791
|
$
|
286,997
|
5.2
|
%
|
|||||||||||||||||
|
Ski
school
|
46,229
|
44,650
|
3.5
|
%
|
81,384
|
78,848
|
3.2
|
%
|
|||||||||||||||||||||
|
Dining
|
30,344
|
28,624
|
6.0
|
%
|
58,002
|
54,978
|
5.5
|
%
|
|||||||||||||||||||||
|
Retail/rental
|
59,533
|
53,401
|
11.5
|
%
|
149,844
|
141,210
|
6.1
|
%
|
|||||||||||||||||||||
|
Other
|
21,827
|
23,657
|
(7.7
|
)
|
%
|
56,963
|
64,869
|
(12.2
|
)
|
%
|
|||||||||||||||||||
|
Total Mountain
Revenue
|
$
|
325,726
|
$
|
308,712
|
5.5
|
%
|
$
|
647,984
|
$
|
626,902
|
3.4
|
%
|
|||||||||||||||||
|
Total
Lodging Revenue
|
$
|
43,590
|
$
|
43,643
|
(0.1
|
)
|
%
|
$
|
121,734
|
$
|
116,848
|
4.2
|
%
|
||||||||||||||||
|
Total
Resort Revenue
|
$
|
369,316
|
$
|
352,355
|
4.8
|
%
|
$
|
769,718
|
$
|
743,750
|
3.5
|
%
|
|||||||||||||||||
|
Three
Months Ended
|
Percentage
|
Nine
Months Ended
|
Percentage
|
||||||||||||||||||||||||||
|
April
30,
|
Increase
|
April
30,
|
Increase
|
||||||||||||||||||||||||||
|
2008
|
2007
|
(Decrease)
|
2008
|
2007
|
(Decrease)
|
||||||||||||||||||||||||
|
Skier
Visits
|
|||||||||||||||||||||||||||||
|
Vail
|
890
|
883
|
0.8
|
%
|
1,570
|
1,608
|
(2.4
|
)
|
%
|
||||||||||||||||||||
|
Breckenridge
|
887
|
875
|
1.4
|
%
|
1,630
|
1,650
|
(1.2
|
)
|
%
|
||||||||||||||||||||
|
Keystone
|
558
|
573
|
(2.6
|
)
|
%
|
1,129
|
1,171
|
(3.6
|
)
|
%
|
|||||||||||||||||||
|
Heavenly
|
540
|
493
|
9.5
|
%
|
943
|
900
|
4.8
|
%
|
|||||||||||||||||||||
|
Beaver
Creek
|
516
|
483
|
6.8
|
%
|
918
|
890
|
3.1
|
%
|
|||||||||||||||||||||
|
Total
Skier Visits
|
3,391
|
3,307
|
2.5
|
%
|
6,190
|
6,219
|
(0.5
|
)
|
%
|
||||||||||||||||||||
|
Effective
Ticket Price
|
$
|
49.48
|
$
|
47.89
|
3.3
|
%
|
$
|
48.75
|
$
|
46.15
|
5.6
|
%
|
|||||||||||||||||
|
Key
Balance Sheet Data
|
|||||||
|
(In
thousands)
|
|||||||
|
(Unaudited)
|
|||||||
|
As
of April 30,
|
|||||||
|
2008
|
2007
|
||||||
|
Real
estate held for sale and investment
|
$
|
394,008
|
$
|
305,085
|
|||
|
Total
stockholders' equity
|
796,168
|
743,189
|
|||||
|
Long-term
debt
|
575,275
|
575,162
|
|||||
|
Long-term
debt due within one year
|
74,192
|
401
|
|||||
|
Total
debt
|
649,467
|
575,563
|
|||||
|
Less:
cash and cash equivalents
|
304,133
|
316,439
|
|||||
|
Net
debt
|
$
|
345,334
|
$
|
259,124
|
|||
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 nine months ended April 30, 2008 and
2007.
|
(In
thousands)
|
||||||||||
|
Three
Months Ended
|
||||||||||
|
April
30,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2008
|
2007
|
|||||||||
|
Mountain
revenue, net
|
$
|
325,726
|
$
|
308,712
|
||||||
|
Mountain
operating expense excluding stock-based compensation
|
(156,852
|
)
|
(152,011
|
)
|
||||||
|
Mountain
equity investment income, net
|
698
|
1,660
|
||||||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
169,572
|
158,361
|
||||||||
|
Mountain
stock-based compensation
|
(955
|
)
|
(986
|
)
|
||||||
|
Mountain
Reported EBITDA
|
168,617
|
157,375
|
||||||||
|
Lodging
revenue, net
|
43,590
|
43,643
|
||||||||
|
Lodging
operating expense excluding stock-based compensation
|
(35,172
|
)
|
(30,820
|
)
|
||||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
8,418
|
12,823
|
||||||||
|
Lodging
stock-based compensation
|
(341
|
)
|
(306
|
)
|
||||||
|
Lodging
Reported EBITDA
|
8,077
|
12,517
|
||||||||
|
Resort
Reported EBITDA*
|
176,694
|
169,892
|
||||||||
|
Resort
Reported EBITDA excluding stock-based compensation*
|
177,990
|
171,184
|
||||||||
|
Real
Estate revenue, net
|
54,474
|
17,134
|
||||||||
|
Real
Estate operating expense excluding stock-based
compensation
|
(52,713
|
)
|
(24,805
|
)
|
||||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
1,761
|
(7,671
|
)
|
|||||||
|
Real
Estate stock-based compensation
|
(849
|
)
|
(456
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
912
|
(8,127
|
)
|
|||||||
|
Total
Reported EBITDA
|
177,606
|
161,765
|
||||||||
|
Depreciation
and amortization
|
(25,471
|
)
|
(23,513
|
)
|
||||||
|
Relocation
and separation charges
|
--
|
(166
|
)
|
|||||||
|
Gain
(loss) on disposal of fixed assets, net
|
24
|
(242
|
)
|
|||||||
|
Investment
income
|
2,459
|
4,334
|
||||||||
|
Interest
expense, net
|
(8,441
|
)
|
(8,039
|
)
|
||||||
|
Loss
on sale of business
|
--
|
(601
|
)
|
|||||||
|
Contract
dispute charges
|
--
|
(184
|
)
|
|||||||
|
Gain
on put options, net
|
--
|
690
|
||||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,621
|
)
|
(5,343
|
)
|
||||||
|
Income
before provision for income taxes
|
141,556
|
128,701
|
||||||||
|
Provision
for income taxes
|
(54,215
|
)
|
(50,193
|
)
|
||||||
|
Net
income
|
$
|
87,341
|
$
|
78,508
|
||||||
* Resort represents the sum of Mountain
and Lodging
|
(In
thousands)
|
||||||||||
|
Nine
Months Ended
|
||||||||||
|
April
30,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2008
|
2007
|
|||||||||
|
Mountain
revenue, net
|
$
|
647,984
|
$
|
626,902
|
||||||
|
Mountain
operating expense excluding stock-based compensation
|
(399,093
|
)
|
(389,291
|
)
|
||||||
|
Mountain
equity investment income, net
|
3,592
|
3,990
|
||||||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
252,483
|
241,601
|
||||||||
|
Mountain
stock-based compensation
|
(2,849
|
)
|
(3,064
|
)
|
||||||
|
Mountain
Reported EBITDA
|
249,634
|
238,537
|
||||||||
|
Lodging
revenue, net
|
121,734
|
116,848
|
||||||||
|
Lodging
operating expense excluding stock-based compensation
|
(112,590
|
)
|
(97,374
|
)
|
||||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
9,144
|
19,474
|
||||||||
|
Lodging
stock-based compensation
|
(940
|
)
|
(859
|
)
|
||||||
|
Lodging
Reported EBITDA
|
8,204
|
18,615
|
||||||||
|
Resort
Reported EBITDA*
|
257,838
|
257,152
|
||||||||
|
Resort
Reported EBITDA excluding stock-based compensation*
|
261,627
|
261,075
|
||||||||
|
Real
Estate revenue, net
|
111,978
|
100,272
|
||||||||
|
Real
Estate operating expense excluding stock-based
compensation
|
(102,629
|
)
|
(100,220
|
)
|
||||||
|
Gain
on sale of real property
|
709
|
--
|
||||||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
10,058
|
52
|
||||||||
|
Real
Estate stock-based compensation
|
(2,256
|
)
|
(1,550
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
7,802
|
(1,498
|
)
|
|||||||
|
Total
Reported EBITDA
|
265,640
|
255,654
|
||||||||
|
Depreciation
and amortization
|
(69,854
|
)
|
(66,857
|
)
|
||||||
|
Relocation
and separation charges
|
--
|
(1,401
|
)
|
|||||||
|
Loss
on disposal of fixed assets, net
|
(367
|
)
|
(332
|
)
|
||||||
|
Investment
income
|
7,697
|
8,815
|
||||||||
|
Interest
expense, net
|
(23,620
|
)
|
(24,885
|
)
|
||||||
|
Loss
on sale of business
|
--
|
(601
|
)
|
|||||||
|
Contract
dispute credit (charges), net
|
11,920
|
(4,460
|
)
|
|||||||
|
Gain
on put options, net
|
--
|
690
|
||||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(7,468
|
)
|
(9,707
|
)
|
||||||
|
Income
before provision for income taxes
|
183,948
|
156,916
|
||||||||
|
Provision
for income taxes
|
(69,901
|
)
|
(61,197
|
)
|
||||||
|
Net
income
|
$
|
114,047
|
$
|
95,719
|
||||||
* 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 April 30,
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
|
||||||
|
April
30,
|
||||||
|
2008
|
||||||
|
Mountain
Reported EBITDA
|
$
|
218,825
|
||||
|
Lodging
Reported EBITDA
|
7,788
|
|||||
|
Resort
EBITDA*
|
226,613
|
|||||
|
Real
Estate Reported EBITDA
|
6,820
|
|||||
|
Total
Reported EBITDA
|
233,433
|
|||||
|
Depreciation
and amortization
|
(90,660
|
)
|
||||
|
Relocation
and separation charges
|
(32
|
)
|
||||
|
Loss
on disposal of fixed assets, net
|
(1,118
|
)
|
||||
|
Investment
income
|
11,284
|
|||||
|
Interest
expense, net
|
(31,359
|
)
|
||||
|
Loss
on sale of businesses, net
|
(38
|
)
|
||||
|
Contract
dispute credit, net
|
11,739
|
|||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(5,565
|
)
|
||||
|
Income
before provision for income taxes
|
127,684
|
|||||
|
Provision
for income taxes
|
(47,956
|
)
|
||||
|
Net
income
|
$
|
79,728
|
||||
* Resort represents the sum of Mountain
and Lodging
|
(In
thousands)
|
||||||
|
As
of
|
||||||
|
April
30,
|
||||||
|
2008
|
||||||
|
Long-term
debt
|
$
|
575,275
|
||||
|
Long-term
debt due within one year
|
74,192
|
|||||
|
Total
debt
|
649,467
|
|||||
|
Less:
cash and cash equivalents
|
304,133
|
|||||
|
Net
debt
|
$
|
345,334
|
||||
|
Net
debt to Total Reported EBITDA
|
1.48
|
|||||
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 nine months ended April 30, 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 nine months ended
April 30, 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 nine months ended April 30, 2008 and April 30, 2007 to prior
periods.
|
Three
Months
|
|||||||||
|
Ended
April 30,
|
|||||||||
|
(Unaudited)
|
|||||||||
|
(In
thousands, except per share amounts)
|
2008
|
2007
|
|||||||
|
Net
income excluding stock-based compensation
|
$
|
88,672
|
$
|
79,599
|
|||||
|
Stock-based
compensation expense, before benefit from income taxes
|
(2,145
|
)
|
(1,748
|
)
|
|||||
|
Adjustment
for benefit from income taxes
|
814
|
657
|
|||||||
|
Net
income
|
$
|
87,341
|
$
|
78,508
|
|||||
|
Diluted
net income per share excluding stock-based compensation
|
$
|
2.28
|
$
|
2.02
|
|||||
|
Stock-based
compensation expense per diluted common share, before
benefit
|
|||||||||
|
from
income taxes
|
(0.06
|
)
|
(0.04
|
)
|
|||||
|
Adjustment
for benefit from income taxes, per diluted common share
|
0.02
|
0.02
|
|||||||
|
Diluted
net income per share
|
$
|
2.24
|
$
|
1.99
|
|||||
|
Nine
Months
|
|||||||||
|
Ended
April 30,
|
|||||||||
|
(Unaudited)
|
|||||||||
|
(In
thousands, except per share amounts)
|
2008
|
2007
|
|||||||
|
Net
income excluding stock-based compensation
|
$
|
117,799
|
$
|
99,136
|
|||||
|
Stock-based
compensation expense, before benefit from income taxes
|
(6,045
|
)
|
(5,473
|
)
|
|||||
|
Adjustment
for benefit from income taxes
|
2,293
|
2,056
|
|||||||
|
Net
income
|
$
|
114,047
|
$
|
95,719
|
|||||
|
Diluted
net income per share excluding stock-based compensation
|
$
|
3.01
|
$
|
2.52
|
|||||
|
Stock-based
compensation expense per diluted common share, before
benefit
|
|||||||||
|
from
income taxes
|
(0.15
|
)
|
(0.14
|
)
|
|||||
|
Adjustment
for benefit from income taxes, per diluted common share
|
0.06
|
0.05
|
|||||||
|
Diluted
net income per share
|
$
|
2.91
|
$
|
2.44
|
|||||
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
|
|||