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): September 25, 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
September 25, 2008, Vail Resorts, Inc. issued a press release announcing its
results for the three months and year ended July 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:
September 25, 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 September 25, 2008, announcing fiscal fourth quarter
and fiscal 2008 year-end 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 Year-End Results
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l
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Record
fiscal 2008 Resort revenue of $855.6 million and record total revenue of
$1.15 billion, a 3.4% and 22.5% increase, respectively over the prior
fiscal year.
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l
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Record
fiscal 2008 Mountain Reported EBITDA of $220.6 million, a 6.2% increase
over the prior fiscal year.
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l
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Record
fiscal 2008 Resort Reported EBITDA of $230.8 million, a 2.2% increase over
the prior fiscal year.
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l
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Record
fiscal 2008 Real Estate Reported EBITDA of $45.9
million.
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l
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Record
fiscal 2008 net income of $102.9 million, a 67.6% increase over the prior
fiscal year.
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BROOMFIELD,
Colo. - September 25, 2008 - Vail Resorts, Inc. (NYSE: MTN) announced today
financial results for the fiscal year ended July 31, 2008, including financial
results for the fiscal fourth quarter.
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.
FISCAL YEAR 2008
PERFORMANCE
Mountain
Segment
Mountain
revenue increased $20.2 million, or 3.0%, for the fiscal year ended July 31,
2008 (“fiscal 2008”), to $685.5 million from $665.4 million for the fiscal year
ended July 31, 2007 (“fiscal 2007”). Mountain operating expense
increased $7.7 million, or 1.7%, to $470.4 million. In
fiscal 2008, 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. Mountain equity investment income, net increased
$0.3 million. Mountain Reported EBITDA increased $12.8 million, or
6.2%, to $220.6 million in fiscal 2008 compared to $207.7 million in fiscal
2007.
Lodging
Segment
Lodging
revenue increased $7.6 million, or 4.7%, in fiscal 2008, to $170.1 million from
$162.5 million in fiscal 2007. Fiscal 2007 included $5.4 million of
revenue primarily associated with the termination of the management agreements
at The Equinox and The Lodge at Rancho Mirage (each pursuant to the terms of the
management agreements). Excluding these termination fees, Lodging
revenue would have increased $13.0 million, or 8.3%. Lodging
operating expense increased $15.6 million, or 10.8%, to $159.8
million. Fiscal 2008 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 $8.0 million, or
43.8%, to $10.2 million in fiscal 2008 compared to $18.2 million in fiscal
2007.
Resort – Combination of
Mountain and Lodging Segments
Resort
revenue, the combination of Mountain and Lodging revenue, increased $27.8
million, or 3.4%, in fiscal 2008 to $855.6 million from $827.8 million in fiscal
2007. Resort operating expense increased $23.2 million, or 3.8%, to
$630.2 million. Resort equity investment income, net increased $0.3
million. Resort Reported EBITDA increased $4.9 million, or 2.2%, to
$230.8 million in fiscal 2008 compared to $225.9 million in fiscal
2007. Resort Reported EBITDA excluding stock-based compensation
increased $5.1 million, or 2.2%, to $235.9 million in fiscal 2008 compared to
$230.8 million in fiscal 2007.
Real Estate
Segment
Real
Estate revenue increased $183.9 million, or 163.1%, in fiscal 2008, to $296.6
million from $112.7 million in fiscal 2007. Real Estate operating
expense increased $136.1 million, or 118.2%, to $251.3 million. Gain
on sale of real property increased $0.7 million. Real Estate Reported
EBITDA increased $48.4 million, or 1,950.8%, to $45.9 million in fiscal 2008
compared to a loss of $2.5 million in fiscal 2007.
Total
Performance
Total
revenue increased $211.6 million, or 22.5%, to $1.15 billion in fiscal 2008 from
$940.5 million in fiscal 2007. Income from operations increased $47.8
million, or 37.3%, to $176.0 million in fiscal 2008.
The
Company reported net income of $102.9 million, or $2.64 per diluted share, in
fiscal 2008, compared to net income of $61.4 million, or $1.56 per diluted
share, in fiscal 2007. Included in 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 fiscal 2008 net income would have been $108.1 million, or
$2.78 per diluted share, compared to net income of $65.8 million excluding
stock-based compensation, or $1.67 per diluted share, in fiscal
2007. The Company recorded total pre-tax stock-based compensation
expense of $8.3 million and $7.0 million in fiscal 2008 and 2007,
respectively.
FOURTH QUARTER
PERFORMANCE
Mountain
Segment
Mountain
revenue decreased $0.9 million, or 2.4%, in the fourth quarter of fiscal 2008 to
$37.5 million from $38.5 million in the fourth quarter of fiscal
2007. Mountain operating expense decreased $1.9 million, or 2.7%, to
$68.4 million. Mountain equity investment income, net increased $0.7
million. Mountain Reported EBITDA improved by $1.7 million, or 5.6%,
to a loss of $29.1 million in the fourth quarter of fiscal 2008 compared to a
loss of $30.8 million in the fourth quarter of fiscal 2007.
Lodging
Segment
Lodging
revenue increased $2.7 million, or 6.0%, in the fourth quarter of fiscal 2008 to
$48.3 million from $45.6 million in the fourth quarter of fiscal
2007. Lodging operating expense increased $0.3 million, or 0.6%, to
$46.3 million. Lodging Reported EBITDA increased $2.4 million, or
587.5%, to $2.0 million in the fourth quarter of fiscal 2008 compared to a loss
of $0.4 million in the fourth quarter of fiscal 2007.
Resort – Combination of
Mountain and Lodging Segments
Resort
revenue, the combination of Mountain and Lodging revenue, increased $1.8
million, or 2.1%, in the fourth quarter of fiscal 2008 to $85.9 million from
$84.1 million in the fourth quarter of fiscal 2007. Resort operating
expense decreased $1.7 million, or 1.4%, to $114.7 million. Resort
equity investment income, net increased $0.7 million. Resort Reported
EBITDA improved by $4.2 million, or 13.4%, to a loss of $27.1 million in the
fourth quarter of fiscal 2008 compared to a loss of $31.2 million in the fourth
quarter of fiscal 2007. Resort Reported EBITDA excluding stock-based
compensation improved $4.5 million, or 15.0%, to a loss of $25.7 million in the
fourth quarter of fiscal 2008 compared to a loss of $30.2 million in the fourth
quarter of fiscal 2007.
Real Estate
Segment
Real
Estate revenue increased $172.2 million, or 1,384.3%, in the fourth quarter of
fiscal 2008 to $184.6 million from $12.4 million in the fourth quarter of fiscal
2007. Real Estate operating expense increased $133.0 million, or
991.3%, to $146.5 million. Real Estate Reported EBITDA increased
$39.1 million, or 3,975.3%, to $38.1 million compared to a loss of $1.0 million
in the fourth quarter of fiscal 2007.
Total
Performance
Total
revenue increased $173.9 million, or 180.2%, in the fourth quarter of fiscal
2008 to $270.5 million from $96.5 million in the fourth quarter of fiscal
2007. Loss from operations for the quarter decreased $39.0 million,
or 71.2%, to a loss of $15.8 million, from a loss of $54.9 million in the fourth
quarter of fiscal 2007.
The
Company reported a fourth quarter fiscal 2008 net loss of $11.1 million, or
$0.29 per diluted share, compared to net loss of $34.3 million, or $0.88 per
diluted share, in the fourth quarter of fiscal 2007. Excluding
stock-based compensation expense, the Company’s net loss for the fourth quarter
of fiscal 2008 would have been $9.7 million, or $0.26 per diluted share,
compared to net loss of $33.4 million excluding stock-based compensation, or
$0.85 per diluted share, in the fourth quarter of fiscal 2007. The
Company recorded total pre-tax stock-based compensation expense of $2.2 million
and $1.5 million in the three months ended July 31, 2008 and July 31, 2007,
respectively.
Business Commentary and
Outlook
Robert
Katz, chief executive officer, commented, “I am pleased with our results for
fiscal 2008, which were achieved despite challenging early season conditions and
overall deterioration in the macro-economic environment. Results for
our seasonally low fourth quarter were as expected for our Resort business,
while our real estate results were impacted by a timing shift of having one of
The Lodge at Vail Chalets (‘Chalets’) close in August, just after our fiscal
year-end, as opposed to in the fiscal fourth quarter. We set new
records for our fiscal 2008 Mountain, Resort and Real Estate revenue; Mountain,
Resort and Real Estate Reported EBITDA and net income. Our Mountain
segment revenue for fiscal 2008 grew 3.0% on a ‘same
store’ basis with approximately 64% of the ‘same store’ revenue growth flowing
through to Mountain Reported EBITDA, driving a 100 basis point increase in
Mountain Reported EBITDA margin to 32.2%. Our total skier visits were
down 0.4% for the season; however, excluding the early season period from the
beginning of the ski season until December 23, 2007, our total skier visits were
up 4.1%, including the impact of season passholders who skied on average 9.7
days over the course of the season, up 0.4 days per passholder from the previous
season. The favorable Mountain results were also driven by a 5.6%
increase in effective ticket price (‘ETP’) and a 7.7% increase in season pass
revenue. Twenty six percent of lift ticket revenue was derived from
season pass revenue, which continues to provide stability to our Mountain
revenue. In addition, our overall performance was positively impacted
by an estimated 26% growth in international guest visitation. The
growth in ETP, season pass revenue and international visitors mitigated the
impact of the U.S. economic weakness we began to see in the second half of the
season.”
Katz
added, “Our Lodging segment on a ‘same store’ basis for the year reported a 5.7%
increase in revenue per available room due to strong peak period demand, driving
an 8.3% increase in Lodging revenue, excluding $5.4 million of revenue
associated with the prior year’s termination fees. These Lodging
results were achieved, despite overcoming similar challenges as faced by our
Mountain segment. In addition, our Real Estate segment in fiscal 2008
benefited from the closings of 64 Arrabelle units and five Chalets driving a
$48.4 million increase in Real Estate Reported EBITDA and marked a record year
as we transitioned from the construction phase to the closing phase of these two
projects.”
Highlighting
what’s new for the upcoming 2008/2009 ski season, Katz said, “We are excited to
unveil our newest resort improvements this winter as we continue to lead our
industry in investing in the guest experience we provide at all of our
properties, with $105 million to $115 million expected to be invested in
calendar year 2008. Importantly, this excludes all of our investment
in real estate and our investment in real estate related resort depreciable
assets, such as the Arrabelle hotel and the new spa at the Lodge at Vail, which
are dramatically improving the base areas of our world-class resorts. The
largest capital investment project for the 2008/2009 ski season is the new
state-of-the-art, eight passenger gondola in Keystone, which will include
relocating the base station into River Run Village, adding a mid-station and
enhancing the skier plaza area. At
Beaver Creek, following on the heels of last season’s highly successful new
Buckaroo Express Gondola, the resort will open a new children’s ski school
center, The Ranch, at the top of the Buckaroo Express Gondola, which will
revolutionize the way our guests learn to ski and snowboard. Also at
Beaver Creek, The Osprey, formerly the Inn at Beaver Creek, is undergoing a $7
million transformation this summer/fall and scheduled to be relaunched as
RockResorts' newest addition in time for Christmas 2008. This luxury,
boutique hotel, the nearest hotel to a chairlift in North America, will have a
more contemporary design and will feature 41 rooms situated in the heart of the
village of the world-class Beaver Creek Resort. New snowmaking at
Peak 7 in Breckenridge and re-grading and snowmaking for the main trail
connecting California and Nevada at Heavenly will also await guests this
winter. These are just a few of the many great additions that will
welcome our guests back for the 2008/2009 ski season.”
Katz
added, “Looking ahead to the 2008/2009 ski season, our new Epic Season Pass,
which will be used by guests for the first time this upcoming ski season, has
already made quite a splash since its introduction this past
spring. The Epic Season Pass allows guests unlimited skiing at all of
our resorts and Arapahoe Basin and is valid on all of the most coveted holidays,
all for a price of $579 for adults and $279 for kids. The Epic Season
Pass, which must be purchased by November 15, 2008, allows us to offer our
guests a true value this season. As a complement to the Epic Season
Pass, we have also introduced an unlimited ski/snowboard rental option starting
at $359 for the season, which eliminates the added airline costs and hassles of
transporting, storing and carrying equipment on your
vacation. Finally, we have launched our ‘Holidays on Us’ promotion,
which allows guests to stay for free at any of our owned or managed lodging
properties for the night of any of the best holidays, subject to certain
restrictions. As you can see, we are committed to making a vacation
with our resorts more accessible this season.”
“Turning
to our season pass sales and lodging bookings for the upcoming season,” Katz
continued, “we have certainly begun to see the impact of the current economic
softness during these unprecedented times. Whether these results
represent guests delaying their purchases or are signs of a visitation decline
for the upcoming season is not something we can discern yet, as we certainly
have less visibility into these early season indicators. This year’s
Colorado season pass sales, including Epic Season Passes sold to Colorado ‘Front
Range’ customers, are up 0.2% in sales dollars, while down 8.4% in units over
the prior year; including Heavenly sales are down 1.5% in sales dollars and
10.0% in units. At this point, these results historically represent
65% of the ultimate total sales of season passes for the year. As we
have previously disclosed, given the Epic Season Pass is a new product, we will
discuss total Epic Season Pass sales results after the selling period expires in
November. Advance bookings through our central reservations and
directly at our owned and managed properties are down 13.0% in sales dollars and
down 17.7% in room nights over the same period last year. It is
critical to remember that bookings to date represent only approximately 15-20%
of the ultimate total room nights for the season we historically have booked
through these channels.”
On the
Company’s real estate projects, Katz commented, “Fiscal 2008 marked a milestone
for Vail Resorts as we neared completion on both the Arrabelle and Chalets
projects. In fiscal 2008, we closed on 64 Arrabelle units with the
remaining two Arrabelle units expected to close in fiscal 2009. On
the Chalet project, we closed five of the expected six Chalets in July of fiscal
2008, with the sixth Chalet closing a few weeks after our fiscal year-end, in
August 2008. In fiscal 2009, including the August closing, we expect
to close the remaining eight Chalets. At our Crystal Peak Lodge
development on Peak 7 in Breckenridge, we currently have all 45 units under
contract and will be working to close all of the Crystal Peak Lodge units during
fiscal 2009. On our latest project, the RockResorts branded One Ski
Hill Place, which we brought to market in December 2007, at the base of Peak 8
in Breckenridge, we have released 70 units of the total 88 units; and we
currently have 50 units under contract. On the Ritz-Carlton
Residences, Vail, we have 47 units under contract as well as the 45 additional
units we sold to Ritz-Carlton for use in their club program, representing 79% of
total units under construction.” Addressing the current environment
for real estate, Katz commented, “We still remain very enthusiastic about the
quality, progress and strategic nature of all of our real estate
projects. Clearly, we are in an unprecedented environment for real
estate and related financings, marked by significant volatility and
uncertainty. While we believe that our resort communities are
ultimately more resilient, the severity of the current downturn could certainly
have an impact on the amount and timing of revenue from our projects, which
would affect the projections for project profit we previously
disclosed. At this point we do not expect to continually update our
projections for the individual projects as market conditions continue to
fluctuate, but may readdress them as the volatility subsides and we get closer
to project deliveries.”
As an
update on the Vail Mountain Club, Katz said, “We are very pleased with the
progress of the Vail Mountain Club. Since introduction, we have sold
386, or 97% of the available memberships, including 186 full memberships, which
include parking privileges, and an additional 200 social memberships, which
exclude parking privileges, with the total full and social sold memberships
representing $69.7 million of proceeds when paid in full. The private
club experience is certainly a unique opportunity for our guests to see what
makes our resorts truly unique and creates a long-term relationship between our
guests and resorts for many years to come.”
“Maybe
most importantly,” Katz continued, “we are very fortunate that we have a strong
balance sheet as we ended the fiscal year with $162 million of cash and cash
equivalents on hand, Net Debt of less than one and a half times trailing twelve
months Total Reported EBITDA and a $400 million Senior Credit Facility with no
revolver borrowings, currently priced at LIBOR plus 50 basis
points. This provides our Company significant financial flexibility
to continue to invest in the experience we provide our guests and remain
opportunistic during these challenging times.”
Katz
added, “We would like to take this opportunity to announce our guidance for
fiscal 2009. We have extraordinary, world-class resorts and a unique
customer demographic, but we are certainly not immune to the dramatic challenges
facing the economy today. It is important to note that at this point
in time it is very difficult to fully predict the impact to our business of the
current economic state as well as what that state will be as we go into our ski
season. However, given the early season indicators and the
unprecedented uncertainty of the future economic climate, we think it is prudent
at this time to forecast a decline in our fiscal 2009 guidance as compared to
the record results we reported for fiscal 2008. Based on our current
estimates, we expect full year Resort Reported EBITDA, the combination of our
Mountain and Lodging segments, to range from $200 million to $220 million and
Resort Reported EBITDA excluding stock-based compensation expense to range from
$206 million to $226 million. The Resort guidance includes a range
for Mountain Reported EBITDA of $182 million to $200 million and Mountain
Reported EBITDA excluding stock-based compensation expense of $186 million to
$204 million, while we expect Lodging Reported EBITDA to range from $14 million
to $24 million and Lodging Reported EBITDA excluding stock-based compensation
expense expected to range from $16 million to $26 million. The
Lodging segment guidance includes approximately $5 million to $7 million from
the planned Colorado Mountain Express acquisition, expected to close just prior
to the beginning of the ski season. Real Estate Reported EBITDA is
expected to range from $34 million to $40 million and Real Estate Reported
EBITDA excluding stock-based compensation expense is expected to range from $38
million to $44 million. Based on our current estimates, we expect net
income to range from $60 million to $76 million and net income excluding
stock-based compensation expense to range from $66 million to $82
million.”
Katz
concluded, “In addition, during the fourth quarter, we announced a three million
share increase to our previously announced share repurchase program and
continued repurchases under the program, resulting in the repurchase of
1,497,875 shares at an average price of $39.22 for a total amount of $58.7
million in the quarter. Since the inception of this program in fiscal
2006, the Company has repurchased 3,004,108 shares at an average price of $41.76
for a total amount of approximately $125.5 million, with 2,995,892 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.”
CONFERENCE
CALL
For
further discussion of the contents of this press release, please listen to our
live webcast today at 11:00 am ET, available at www.vailresorts.com in the
Investor Relations section.
ANNUAL REPORT ON FORM
10-K
The
Company today will file its Annual Report on Form 10-K for the fiscal year ended
July 31, 2008, with the Securities and Exchange Commission, which report will be
made available on the Company’s website in the SEC Filings section in the
Investor Relations section of our website at
www.vailresorts.com. Additionally, stockholders may receive a hard
copy of the Annual Report on Form 10-K, which includes the Company’s audited
financial statements, free of charge upon request. Written requests
should be sent to the attention of the Corporate Secretary at Vail Resorts,
Inc., 390 Interlocken Crescent, Broomfield, Colorado 80021.
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:
downturn in general economic conditions, including adverse affects on the
overall travel and leisure related industries; 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; adverse changes in real estate markets; 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
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|||||||||
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(In
thousands, except per share amounts)
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|||||||||
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(Unaudited)
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|||||||||
|
Three
Months Ended
|
|||||||||
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July
31,
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|||||||||
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2008
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2007
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||||||||
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Net
revenue:
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|||||||||
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Mountain
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$
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37,549
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$
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38,475
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|||||
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Lodging
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48,323
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45,604
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|||||||
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Real
estate
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184,587
|
12,436
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|||||||
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Total
net revenue
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270,459
|
96,515
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|||||||
|
Segment
operating expense:
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|||||||||
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Mountain
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68,421
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70,353
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|||||||
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Lodging
|
46,300
|
46,019
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|||||||
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Real
estate
|
146,454
|
13,420
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|||||||
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Total
segment operating expense
|
261,175
|
129,792
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|||||||
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Other
operating expense:
|
|||||||||
|
Depreciation
and amortization
|
(23,941
|
)
|
(20,807
|
)
|
|||||
|
Relocation
and separation charges
|
--
|
(32
|
)
|
||||||
|
Loss
on disposal of fixed assets, net
|
(1,167
|
)
|
(751
|
)
|
|||||
|
Loss
from operations
|
(15,824
|
)
|
(54,867
|
)
|
|||||
|
Mountain
equity investment income, net
|
1,797
|
1,068
|
|||||||
|
Investment
income, net
|
589
|
3,588
|
|||||||
|
Interest
expense, net
|
(7,047
|
)
|
(7,739
|
)
|
|||||
|
Loss
on sale of business, net
|
--
|
(38
|
)
|
||||||
|
Contract
dispute charges
|
--
|
(181
|
)
|
||||||
|
Minority
interest in loss of consolidated subsidiaries, net
|
2,548
|
1,903
|
|||||||
|
Loss
before benefit for income taxes
|
(17,937
|
)
|
(56,266
|
)
|
|||||
|
Benefit
for income taxes
|
6,814
|
21,944
|
|||||||
|
Net
loss
|
$
|
(11,123
|
)
|
$
|
(34,322
|
)
|
|||
|
Per share
amounts:
|
|||||||||
|
Basic
net loss per share
|
$
|
(0.29
|
)
|
$
|
(0.88
|
)
|
|||
|
Diluted
net loss per share
|
$
|
(0.29
|
)
|
$
|
(0.88
|
)
|
|||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
(29,075
|
)
|
$
|
(30,810
|
)
|
|||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
$
|
(28,090
|
)
|
$
|
(30,051
|
)
|
|||
|
Lodging
Reported EBITDA
|
$
|
2,023
|
$
|
(415
|
)
|
||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
$
|
2,377
|
$
|
(183
|
)
|
||||
|
Resort
Reported EBITDA
|
$
|
(27,052
|
)
|
$
|
(31,225
|
)
|
|||
|
Resort
Reported EBITDA excluding stock-based compensation
|
$
|
(25,713
|
)
|
$
|
(30,234
|
)
|
|||
|
Real
Estate Reported EBITDA
|
$
|
38,133
|
$
|
(984
|
)
|
||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
$
|
39,013
|
$
|
(451
|
)
|
||||
|
Vail
Resorts, Inc.
|
|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Twelve
Months Ended
|
|||||||||
|
July
31,
|
|||||||||
|
2008
|
2007
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
685,533
|
$
|
665,377
|
|||||
|
Lodging
|
170,057
|
162,451
|
|||||||
|
Real
estate
|
296,566
|
112,708
|
|||||||
|
Total
net revenue
|
1,152,156
|
940,536
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
470,362
|
462,708
|
|||||||
|
Lodging
|
159,832
|
144,252
|
|||||||
|
Real
estate
|
251,338
|
115,190
|
|||||||
|
Total
segment operating expense
|
881,532
|
722,150
|
|||||||
|
Other
operating income (expense):
|
|||||||||
|
Gain
on sale of real property
|
709
|
--
|
|||||||
|
Depreciation
and amortization
|
(93,794
|
)
|
(87,664
|
)
|
|||||
|
Relocation
and separation charges
|
--
|
(1,433
|
)
|
||||||
|
Loss
on disposal of fixed assets, net
|
(1,534
|
)
|
(1,083
|
)
|
|||||
|
Income
from operations
|
176,005
|
128,206
|
|||||||
|
Mountain
equity investment income, net
|
5,390
|
5,059
|
|||||||
|
Investment
income, net
|
8,285
|
12,403
|
|||||||
|
Interest
expense, net
|
(30,667
|
)
|
(32,625
|
)
|
|||||
|
Loss
on sale of businesses, net
|
--
|
(639
|
)
|
||||||
|
Contract
dispute credit (charges), net
|
11,920
|
(4,642
|
)
|
||||||
|
Gain
on put options, net
|
--
|
690
|
|||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,920
|
)
|
(7,801
|
)
|
|||||
|
Income
before provision for income taxes
|
166,013
|
100,651
|
|||||||
|
Provision
for income taxes
|
(63,086
|
)
|
(39,254
|
)
|
|||||
|
Net
income
|
$
|
102,927
|
$
|
61,397
|
|||||
|
Per
share amounts:
|
|||||||||
|
Basic
net income per share
|
$
|
2.67
|
$
|
1.58
|
|||||
|
Diluted
net income per share
|
$
|
2.64
|
$
|
1.56
|
|||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
220,561
|
$
|
207,728
|
|||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
$
|
224,395
|
$
|
211,552
|
|||||
|
Lodging
Reported EBITDA
|
$
|
10,225
|
$
|
18,199
|
|||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
$
|
11,519
|
$
|
19,290
|
|||||
|
Resort
Reported EBITDA
|
$
|
230,786
|
$
|
225,927
|
|||||
|
Resort
Reported EBITDA excluding stock-based compensation
|
$
|
235,914
|
$
|
230,842
|
|||||
|
Real
Estate Reported EBITDA
|
$
|
45,937
|
$
|
(2,482
|
)
|
||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
$
|
49,073
|
$
|
(399
|
)
|
||||
|
Vail
Resorts, Inc.
|
|||||||||||||||||||||||||||||
|
Resort
Revenue by Business Line and Skier Visits
|
|||||||||||||||||||||||||||||
|
(In
thousands)
|
|||||||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||||||
|
Three
Months Ended
|
Percentage
|
Twelve
Months Ended
|
Percentage
|
||||||||||||||||||||||||||
|
July
31,
|
Increase
|
July
31,
|
Increase
|
||||||||||||||||||||||||||
|
2008
|
2007
|
(Decrease)
|
2008
|
2007
|
(Decrease)
|
||||||||||||||||||||||||
|
Business
Line
|
|||||||||||||||||||||||||||||
|
Lift
tickets
|
$
|
123
|
$
|
--
|
n/a
|
$
|
301,914
|
$
|
286,997
|
5.2
|
%
|
||||||||||||||||||
|
Ski
school
|
--
|
--
|
--
|
%
|
81,384
|
78,848
|
3.2
|
%
|
|||||||||||||||||||||
|
Dining
|
4,504
|
4,675
|
(3.7
|
)
|
%
|
62,506
|
59,653
|
4.8
|
%
|
||||||||||||||||||||
|
Retail/rental
|
18,921
|
19,332
|
(2.1
|
)
|
%
|
168,765
|
160,542
|
5.1
|
%
|
||||||||||||||||||||
|
Other
|
14,001
|
14,468
|
(3.2
|
)
|
%
|
70,964
|
79,337
|
(10.6
|
)
|
%
|
|||||||||||||||||||
|
Total Mountain
Revenue
|
$
|
37,549
|
$
|
38,475
|
(2.4
|
)
|
%
|
$
|
685,533
|
$
|
665,377
|
3.0
|
%
|
||||||||||||||||
|
Total
Lodging Revenue
|
$
|
48,323
|
$
|
45,604
|
6.0
|
%
|
$
|
170,057
|
$
|
162,451
|
4.7
|
%
|
|||||||||||||||||
|
Total
Resort Revenue
|
$
|
85,872
|
$
|
84,079
|
2.1
|
%
|
$
|
855,590
|
$
|
827,828
|
3.4
|
%
|
|||||||||||||||||
|
Three
Months Ended
|
Percentage
|
Twelve
Months Ended
|
Percentage
|
||||||||||||||||||||||||||
|
July
31,
|
Increase
|
July
31,
|
Increase
|
||||||||||||||||||||||||||
|
2008
|
2007
|
(Decrease)
|
2008
|
2007
|
(Decrease)
|
||||||||||||||||||||||||
|
Skier
Visits
|
|||||||||||||||||||||||||||||
|
Vail
|
--
|
--
|
--
|
%
|
1,570
|
1,608
|
(2.4
|
)
|
%
|
||||||||||||||||||||
|
Breckenridge
|
--
|
--
|
--
|
%
|
1,630
|
1,650
|
(1.2
|
)
|
%
|
||||||||||||||||||||
|
Keystone
|
--
|
--
|
--
|
%
|
1,129
|
1,171
|
(3.6
|
)
|
%
|
||||||||||||||||||||
|
Heavenly
|
5
|
--
|
n/a
|
948
|
900
|
5.3
|
%
|
||||||||||||||||||||||
|
Beaver
Creek
|
--
|
--
|
--
|
%
|
918
|
890
|
3.1
|
%
|
|||||||||||||||||||||
|
Total
Skier Visits
|
5
|
--
|
n/a
|
6,195
|
6,219
|
(0.4
|
)
|
%
|
|||||||||||||||||||||
|
Effective
Ticket Price
|
$
|
24.60
|
$
|
--
|
n/a
|
$
|
48.74
|
$
|
46.15
|
5.6
|
%
|
||||||||||||||||||
|
Key
Balance Sheet Data
|
|||||||
|
(In
thousands)
|
|||||||
|
(Unaudited)
|
|||||||
|
As
of July 31,
|
|||||||
|
2008
|
2007
|
||||||
|
Real
estate held for sale and investment
|
$
|
249,305
|
$
|
357,586
|
|||
|
Total
stockholders' equity
|
728,756
|
714,039
|
|||||
|
Long-term
debt
|
541,350
|
593,733
|
|||||
|
Long-term
debt due within one year
|
15,355
|
377
|
|||||
|
Total
debt
|
556,705
|
594,110
|
|||||
|
Less:
cash and cash equivalents
|
162,345
|
230,819
|
|||||
|
Net
debt
|
$
|
394,360
|
$
|
363,291
|
|||
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 (loss) for the Company calculated in
accordance with GAAP for the three and twelve months ended July 31, 2008 and
2007.
|
(In
thousands)
|
||||||||||
|
Three
Months Ended
|
||||||||||
|
July
31,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2008
|
2007
|
|||||||||
|
Mountain
revenue, net
|
$
|
37,549
|
$
|
38,475
|
||||||
|
Mountain
operating expense excluding stock-based compensation
|
(67,436
|
)
|
(69,594
|
)
|
||||||
|
Mountain
equity investment income, net
|
1,797
|
1,068
|
||||||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
(28,090
|
)
|
(30,051
|
)
|
||||||
|
Mountain
stock-based compensation
|
(985
|
)
|
(759
|
)
|
||||||
|
Mountain
Reported EBITDA
|
(29,075
|
)
|
(30,810
|
)
|
||||||
|
Lodging
revenue, net
|
48,323
|
45,604
|
||||||||
|
Lodging
operating expense excluding stock-based compensation
|
(45,946
|
)
|
(45,787
|
)
|
||||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
2,377
|
(183
|
)
|
|||||||
|
Lodging
stock-based compensation
|
(354
|
)
|
(232
|
)
|
||||||
|
Lodging
Reported EBITDA
|
2,023
|
(415
|
)
|
|||||||
|
Resort
Reported EBITDA*
|
(27,052
|
)
|
(31,225
|
)
|
||||||
|
Resort
Reported EBITDA excluding stock-based compensation*
|
(25,713
|
)
|
(30,234
|
)
|
||||||
|
Real
Estate revenue, net
|
184,587
|
12,436
|
||||||||
|
Real
Estate operating expense excluding stock-based
compensation
|
(145,574
|
)
|
(12,887
|
)
|
||||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
39,013
|
(451
|
)
|
|||||||
|
Real
Estate stock-based compensation
|
(880
|
)
|
(533
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
38,133
|
(984
|
)
|
|||||||
|
Total
Reported EBITDA
|
11,081
|
(32,209
|
)
|
|||||||
|
Depreciation
and amortization
|
(23,941
|
)
|
(20,807
|
)
|
||||||
|
Relocation
and separation charges
|
--
|
(32
|
)
|
|||||||
|
Loss
on disposal of fixed assets, net
|
(1,167
|
)
|
(751
|
)
|
||||||
|
Investment
income, net
|
589
|
3,588
|
||||||||
|
Interest
expense, net
|
(7,047
|
)
|
(7,739
|
)
|
||||||
|
Loss
on sale of business, net
|
--
|
(38
|
)
|
|||||||
|
Contract
dispute charges
|
--
|
(181
|
)
|
|||||||
|
Minority
interest in loss of consolidated subsidiaries, net
|
2,548
|
1,903
|
||||||||
|
Loss
before benefit for income taxes
|
(17,937
|
)
|
(56,266
|
)
|
||||||
|
Benefit
for income taxes
|
6,814
|
21,944
|
||||||||
|
Net
loss
|
$
|
(11,123
|
)
|
$
|
(34,322
|
)
|
||||
* Resort represents the sum of Mountain
and Lodging
|
(In
thousands)
|
||||||||||
|
Twelve
Months Ended
|
||||||||||
|
July
31,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2008
|
2007
|
|||||||||
|
Mountain
revenue, net
|
$
|
685,533
|
$
|
665,377
|
||||||
|
Mountain
operating expense excluding stock-based compensation
|
(466,528
|
)
|
(458,884
|
)
|
||||||
|
Mountain
equity investment income, net
|
5,390
|
5,059
|
||||||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
224,395
|
211,552
|
||||||||
|
Mountain
stock-based compensation
|
(3,834
|
)
|
(3,824
|
)
|
||||||
|
Mountain
Reported EBITDA
|
220,561
|
207,728
|
||||||||
|
Lodging
revenue, net
|
170,057
|
162,451
|
||||||||
|
Lodging
operating expense excluding stock-based compensation
|
(158,538
|
)
|
(143,161
|
)
|
||||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
11,519
|
19,290
|
||||||||
|
Lodging
stock-based compensation
|
(1,294
|
)
|
(1,091
|
)
|
||||||
|
Lodging
Reported EBITDA
|
10,225
|
18,199
|
||||||||
|
Resort
Reported EBITDA*
|
230,786
|
225,927
|
||||||||
|
Resort
Reported EBITDA excluding stock-based compensation*
|
235,914
|
230,842
|
||||||||
|
Real
Estate revenue, net
|
296,566
|
112,708
|
||||||||
|
Real
Estate operating expense excluding stock-based
compensation
|
(248,202
|
)
|
(113,107
|
)
|
||||||
|
Gain
on sale of real property
|
709
|
--
|
||||||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
49,073
|
(399
|
)
|
|||||||
|
Real
Estate stock-based compensation
|
(3,136
|
)
|
(2,083
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
45,937
|
(2,482
|
)
|
|||||||
|
Total
Reported EBITDA
|
276,723
|
223,445
|
||||||||
|
Depreciation
and amortization
|
(93,794
|
)
|
(87,664
|
)
|
||||||
|
Relocation
and separation charges
|
--
|
(1,433
|
)
|
|||||||
|
Loss
on disposal of fixed assets, net
|
(1,534
|
)
|
(1,083
|
)
|
||||||
|
Investment
income, net
|
8,285
|
12,403
|
||||||||
|
Interest
expense, net
|
(30,667
|
)
|
(32,625
|
)
|
||||||
|
Loss
on sale of businesses, net
|
--
|
(639
|
)
|
|||||||
|
Contract
dispute credit (charges), net
|
11,920
|
(4,642
|
)
|
|||||||
|
Gain
on put options, net
|
--
|
690
|
||||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,920
|
)
|
(7,801
|
)
|
||||||
|
Income
before provision for income taxes
|
166,013
|
100,651
|
||||||||
|
Provision
for income taxes
|
(63,086
|
)
|
(39,254
|
)
|
||||||
|
Net
income
|
$
|
102,927
|
$
|
61,397
|
||||||
* 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 July 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
|
||||||
|
July
31,
|
||||||
|
2008
|
||||||
|
Mountain
Reported EBITDA
|
$
|
220,561
|
||||
|
Lodging
Reported EBITDA
|
10,225
|
|||||
|
Resort
EBITDA*
|
230,786
|
|||||
|
Real
Estate Reported EBITDA
|
45,937
|
|||||
|
Total
Reported EBITDA
|
276,723
|
|||||
|
Depreciation
and amortization
|
(93,794
|
)
|
||||
|
Loss
on disposal of fixed assets, net
|
(1,534
|
)
|
||||
|
Investment
income, net
|
8,285
|
|||||
|
Interest
expense, net
|
(30,667
|
)
|
||||
|
Contract
dispute credit, net
|
11,920
|
|||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,920
|
)
|
||||
|
Income
before provision for income taxes
|
166,013
|
|||||
|
Provision
for income taxes
|
(63,086
|
)
|
||||
|
Net
income
|
$
|
102,927
|
||||
* Resort represents the sum of Mountain
and Lodging
|
(In
thousands)
|
||||||
|
As
of
|
||||||
|
July
31,
|
||||||
|
2008
|
||||||
|
Long-term
debt
|
$
|
541,350
|
||||
|
Long-term
debt due within one year
|
15,355
|
|||||
|
Total
debt
|
556,705
|
|||||
|
Less:
cash and cash equivalents
|
162,345
|
|||||
|
Net
debt
|
$
|
394,360
|
||||
|
Net
debt to Total Reported EBITDA
|
1.43
|
|||||
Presented
below is a reconciliation of net income (loss) excluding stock-based
compensation, tax effected, to net income (loss) of the Company calculated in
accordance with GAAP for the three and twelve months ended July 31, 2008 and
2007. Also presented is a reconciliation of net income (loss) per
diluted share excluding stock-based compensation, tax effected, to net income
(loss) per diluted share of the Company calculated in accordance with GAAP for
the three and twelve months ended July 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 twelve months ended July 31, 2008 and July
31, 2007 to prior periods.
|
Three
Months
|
|||||||||
|
Ended
July 31,
|
|||||||||
|
(Unaudited)
|
|||||||||
|
(In
thousands, except per share amounts)
|
2008
|
2007
|
|||||||
|
Net
loss excluding stock-based compensation
|
$
|
(9,745
|
)
|
$
|
(33,370
|
)
|
|||
|
Stock-based
compensation expense, before benefit from income taxes
|
(2,219
|
)
|
(1,524
|
)
|
|||||
|
Adjustment
for benefit from income taxes
|
841
|
572
|
|||||||
|
Net
loss
|
$
|
(11,123
|
)
|
$
|
(34,322
|
)
|
|||
|
Diluted
net loss per share excluding stock-based compensation
|
$
|
(0.26
|
)
|
$
|
(0.85
|
)
|
|||
|
Stock-based
compensation expense per diluted common share, before
provision
|
|||||||||
|
from
income taxes
|
(0.06
|
)
|
(0.04
|
)
|
|||||
|
Adjustment
for benefit from income taxes, per diluted common share
|
0.02
|
0.01
|
|||||||
|
Diluted
net loss per share
|
$
|
(0.29
|
)
|
$
|
(0.88
|
)
|
|||
|
Twelve
Months
|
|||||||||
|
Ended
July 31,
|
|||||||||
|
(Unaudited)
|
|||||||||
|
(In
thousands, except per share amounts)
|
2008
|
2007
|
|||||||
|
Net
income excluding stock-based compensation
|
$
|
108,057
|
$
|
65,767
|
|||||
|
Stock-based
compensation expense, before provision for income taxes
|
(8,264
|
)
|
(6,998
|
)
|
|||||
|
Adjustment
for benefit from income taxes
|
3,134
|
2,628
|
|||||||
|
Net
income
|
$
|
102,927
|
$
|
61,397
|
|||||
|
Diluted
net income per share excluding stock-based compensation
|
$
|
2.78
|
$
|
1.67
|
|||||
|
Stock-based
compensation expense per diluted common share, before
provision
|
|||||||||
|
for
income taxes
|
(0.21
|
)
|
(0.18
|
)
|
|||||
|
Adjustment
for benefit from income taxes, per diluted common share
|
0.08
|
0.07
|
|||||||
|
Diluted
net income per share
|
$
|
2.64
|
$
|
1.56
|
|||||
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, 2009 is presented below.
|
(In
thousands)
|
|||||||
|
For
the Year Ending
|
|||||||
|
July
31, 2009
|
|||||||
|
Low
End Range
|
High
End Range
|
||||||
|
Resort
Reported EBITDA excluding stock-based compensation(1)
|
$
|
206,000
|
$
|
226,000
|
|||
|
Resort
segment stock-based compensation
|
(6,000
|
)
|
(6,000
|
)
|
|||
|
Resort
Reported EBITDA(1)
|
200,000
|
220,000
|
|||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
38,000
|
44,000
|
|||||
|
Real
Estate segment stock-based compensation
|
(4,000
|
)
|
(4,000
|
)
|
|||
|
Real
Estate Reported EBITDA
|
34,000
|
40,000
|
|||||
|
Total
Reported EBITDA
|
234,000
|
260,000
|
|||||
|
Depreciation
and amortization
|
(105,000
|
)
|
(105,000
|
)
|
|||
|
Loss
on disposal of fixed assets, net
|
(2,400
|
)
|
(2,400
|
)
|
|||
|
Investment
income
|
5,000
|
5,000
|
|||||
|
Interest
expense, net
|
(28,200
|
)
|
(28,000
|
)
|
|||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,900
|
)
|
(5,800
|
)
|
|||
|
Income
before provision for income taxes
|
98,500
|
123,800
|
|||||
|
Provision
for income taxes
|
(38,400
|
)
|
(48,300
|
)
|
|||
|
Net
income
|
$
|
60,100
|
$
|
75,500
|
|||
|
(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, 2009 is presented below.
|
(In
thousands)
|
|||||||
|
For
the Year Ending
|
|||||||
|
July
31, 2009
|
|||||||
|
Low
End Range
|
High
End Range
|
||||||
|
Net
income excluding stock-based compensation
|
$
|
66,200
|
$
|
81,600
|
|||
|
Stock-based
compensation expense, before benefit from income taxes
|
(10,000
|
)
|
(10,000
|
)
|
|||
|
Adjustment
for benefit from income taxes
|
3,900
|
3,900
|
|||||
|
Net
income
|
$
|
60,100
|
$
|
75,500
|
|||