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): December 9, 2008
Vail Resorts,
Inc.
(Exact
Name of Registrant as Specified in Charter)
|
Delaware
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001-09614
|
51-0291762
|
||
|
(State
or Other Jurisdiction of Incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
||
|
390
Interlocken Crescent
Broomfield,
Colorado
|
80021
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|||
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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:
|
(303)
404-1800
|
|
(Former
Name or Former Address, if Changed Since Last Report)
|
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
December 9, 2008, Vail Resorts, Inc. (the “Company”) issued a press release
announcing its financial results for the three months ended October 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 Company uses the terms “Reported EBITDA” 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. The most directly comparable GAAP financial measure to this
non-GAAP financial measure is net loss for the three months ended October 31,
2008 and 2007, which is set forth in the press release and below. The
Company defines Net Debt as long term debt plus long-term debt due within one
year less cash and cash equivalents.
|
(In
thousands)
|
Three
Months Ended October 31,
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||||||
|
2008
|
2007
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||||||
|
Net
loss
|
$
|
(34,504
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)
|
$
|
(24,610
|
)
|
|
Reconciliations
of the non-GAAP financial measures to the most directly comparable GAAP
financial measures are included in the press release.
The
Company is also furnishing to the Securities and Exchange Commission as Exhibit
99.2 to this Current Report on Form 8-K the trailing twelve months Total
Reported EBITDA for the period ended October 31, 2008, including a
reconciliation to the most directly comparable GAAP financial
measure.
The
information furnished pursuant to this Item 2.02, including Exhibit 99.1 and
99.2, 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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||
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Date:
December 9, 2008
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By:
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/s/
Jeffrey W. Jones
|
|
Jeffrey
W. Jones
|
||
|
Senior
Executive Vice President and
Chief
Financial Officer
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EXHIBIT
INDEX
|
Exhibit No.
|
Description
|
|
99.1
|
Press
Release, dated December 9, 2008, announcing fiscal 2009 first quarter
results.
|
|
99.2
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Reconciliations
of Non-GAAP Financial Measures.
|
Exhibit
99.1
Vail
Resorts
For
Immediate Release
News
Release
Vail
Resorts Contacts:
Investor
Relations: Michelle Lang, (303) 404-1819,
mlang@vailresorts.com
Media: Kelly
Ladyga, (303) 404-1862, kladyga@vailresorts.com
Vail Resorts Reports Fiscal
2009 First Quarter Results
BROOMFIELD,
Colo. - December 9, 2008 - Vail Resorts, Inc. (NYSE: MTN) today
reported results for the first quarter of fiscal 2009 ended October 31, 2008,
and the status of certain real estate projects and indicators for the 2008/2009
ski season.
Highlights
|
·
|
Season
pass sales to date, including the Epic Season Pass, up 29% in sales
dollars compared to the prior year same time
period.
|
|
·
|
Advance
bookings to date down 23% in room nights compared to the prior year same
time period.
|
|
·
|
Company
received final deposits on 384 memberships to date to the Vail Mountain
Club resulting in $70.1 million of total initiation deposit
proceeds.
|
|
·
|
Company
closed on 42 units to date at Crystal Peak Lodge project for $54.6 million
of proceeds.
|
|
·
|
Strong
balance sheet and liquidity with Net Debt leverage ratio of 1.38 times
trailing twelve months Total Reported EBITDA, $102.7 million of cash and
cash equivalents on hand as of October 31, 2008, and a $400.0 million
credit facility with no revolver
borrowings.
|
Commenting
on our first quarter of fiscal 2009 results, Rob Katz, Chief Executive Officer
said, “The Company’s results for the first quarter cover a seasonally low period
in which we historically incur a substantial loss and the results were generally
consistent with our expectations. These results were driven by our
summer mountain and lodging business, including our summer Grand Teton Lodge
Company (“GTLC”) operations, golf operations and the timing of real estate
closings. The results were also impacted by normal increases in
fixed, non-ski season related expenses, which expenses drive the historical
first quarter net loss each year. Importantly, we are very pleased
that in this unprecedented period of disarray in the global economy and capital
markets, our balance sheet remains very strong, even after two consecutive
seasonally low quarters with virtually no ski
operations. Additionally, we saw promising signs of the resiliency of
the Vail Resorts guests, as season pass sales strengthened over the prior year
during our fall selling period both in Colorado and through the introduction of
the Epic Season Pass, bringing a whole new group of guests into our season pass
programs. Further, we closed on 42 of 45 units to date in our Crystal
Peak, Breckenridge real estate project for gross proceeds of $54.6
million. We also received final deposits on 384 of the 390 reserved
memberships to date for our newly opened Vail Mountain Club, representing gross
proceeds from initiation deposits of $70.1 million. Lodging bookings
for our upcoming ski season, however, continued to track significantly below
bookings at the same time in the prior year and are currently 23% below last
year’s levels in room nights. This reflects a similar trend that
others have seen in the travel and leisure sector. Clearly, many
consumers are, at a minimum, delaying their travel decisions, while some are
apparently choosing not to travel at all this year; a trend that makes us
grateful for the significant season pass and ‘drive to’ business that we have,
while we remain committed to creating an exceptional experience for each and
every guest that spends their hard-earned money at our resorts this
year.”
Mountain
Segment
|
·
|
Mountain
segment revenue was $40.8 million in the first quarter of fiscal 2009
compared to $42.5 million in the first quarter of fiscal 2008, a decline
of 4.1%.
|
|
·
|
Mountain
Reported EBITDA was a loss of $39.4 million in the first quarter of fiscal
2009 compared to a loss of $36.4 million in the first quarter of fiscal
2008, a decline of 8.2%.
|
During
the first quarter of fiscal 2009, the summer mountain operations were negatively
impacted by the temporary closures of Keystone on-mountain dining facilities due
to the construction of the new Keystone gondola and other revenue was also
negatively impacted by the temporary closure of the summer on-mountain
activities in Breckenridge, including the alpine slide, due to real estate
construction activities at Peak 8. In addition, retail/rental revenue
was negatively impacted by lower sales volumes primarily in the Colorado Front
Range. The Mountain segment first fiscal quarter contains
non-seasonal, predominantly fixed expenses and allocated corporate expenses,
which increased in the current year fiscal quarter.
Lodging
Segment
|
·
|
Lodging
segment revenue was $45.3 million in the first quarter of fiscal 2009
compared to $43.3 million in the first quarter of fiscal 2008, an increase
of 4.5%, positively impacted by The Arrabelle Hotel, which opened in
January 2008.
|
|
·
|
First
quarter average daily rate increased 6.0% with flat revenue per available
room (“RevPAR”) for our owned hotels and managed
condominiums. On a “same store” basis, excluding The Arrabelle
Hotel, RevPAR was down 1.5%.
|
|
·
|
Lodging
Reported EBITDA was $0.4 million in the first quarter of fiscal 2009
compared to $2.1 million in the first quarter of fiscal
2008.
|
During
the first quarter of fiscal 2009, Lodging segment results contained a full
quarter of expected seasonally low results from The Arrabelle Hotel, which were
lower than the impact from pre-opening and start-up costs in the prior
year. Additionally, there was a decline in conference and group room
nights in the current year across the Company’s lodging properties, especially
at GTLC.
During
the first quarter, the Company announced continued growth in its RockResorts
portfolio, including its return to the Northeast with the planned addition of
The Mansfield Inn at Stowe in Stowe, Vermont. In addition, The Osprey
at Beaver Creek, formerly the Inn at Beaver Creek, will be relaunched as
RockResorts’ newest addition expected in time for Christmas 2008, following a $7
million transformation. 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. The RockResort brand will continue to seek
opportunities to diversify its portfolio in truly iconic new mountain resort and
warm weather locations.
On
November 1, 2008, the Company closed its acquisition of Colorado Mountain
Express (“CME”) for a total consideration of $38.3 million, as well as $0.9
million to reimburse the seller for certain new capital
expenditures. The operating results of CME will be reported within
the Lodging segment beginning with the three and six months ending January 31,
2009. CME is Colorado’s leading ground transportation company
providing service between the Company’s four Colorado ski resorts, other
locations in Summit County and Aspen and both Denver International Airport and
Eagle County Airport.
Resort Segment – Combination
of Mountain and Lodging Segments
|
·
|
Resort
revenue was $86.0 million in the first quarter of fiscal 2009 compared to
$85.9 million in the first quarter of fiscal 2008, an increase of
0.2%.
|
|
·
|
Resort
Reported EBITDA was a loss of $39.1 million in the first quarter of fiscal
2009 compared to a loss of $34.4 million in the first quarter of fiscal
2008, a decline of 13.7%.
|
Real Estate
Segment
|
·
|
Real
estate revenue was $66.8 million in the first quarter of fiscal 2009
compared to $12.0 million in the first quarter of fiscal
2008.
|
|
·
|
Real
Estate Reported EBITDA was $15.4 million in the first quarter of fiscal
2009 compared to $5.1 million in the first quarter of fiscal
2008.
|
In the
first quarter of fiscal 2009, the Company closed on 39 of the 45 Crystal Peak
Lodge units in Breckenridge and one Lodge at Vail Chalet. Subsequent
to the end of the first quarter of fiscal 2009, the Company closed on an
additional three Crystal Peak Lodge units, two Lodge at Vail Chalet units and
one Arrabelle unit. Four additional Chalet units are anticipated to
close during the second quarter of fiscal 2009 with the remaining unit expected
to close in the third quarter of fiscal 2009, due to the extensive nature of the
buyer upgrades associated with this unit.
In
addition, the Company completed construction on the Crystal Peak Lodge project
at lower than anticipated project costs, making the Crystal Peak Lodge real
estate development project more successful from both an absolute contribution
basis as well as a contribution margin basis, than what had previously been
estimated.
As an
update on the Vail Mountain Club, which opened on November 15, 2008, the Company
has received the remaining deposit balances on all but six of the 390 total
memberships sold to date, including 191 full memberships, which include parking
privileges, and 199 social memberships, which exclude parking privileges,
representing $70.1 million of total proceeds. This
includes an additional four full memberships sold in the current year
quarter.
“We are
very pleased,” said Katz, “that during these times of economic uncertainty, the
confidence of the Vail Resorts customer in the strength of our product continued
to show through, with the vast majority of scheduled closings occurring on
Crystal Peak Lodge and almost all of the remaining deposits paid when due on the
Vail Mountain Club. With $70.1 million of proceeds now received for
the Vail Mountain Club, it is one of the most successful projects in our
history; and with the doors just opening for the club, we look forward to having
our loyal members start to enjoy one of the finest club experiences available
anywhere.”
Total
Performance
|
·
|
Total
revenue was $152.8 million in the first quarter of fiscal 2009 compared to
$97.9 million in the first quarter of fiscal
2008.
|
|
·
|
Net
loss was $34.5 million, or $0.93 per diluted share, in the first quarter
of fiscal 2009 compared to a net loss of $24.6 million, or $0.63 per
diluted share, in the first quarter of fiscal 2008. Included in
the prior year 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,
net.
|
Balance
Sheet
At
October 31, 2008, the Company had cash and cash equivalents on hand of $102.7
million, Net Debt of 1.38 times trailing twelve months Total Reported EBITDA and
a $400.0 million credit facility, which matures in 2012, with no revolver
borrowings under the facility, currently priced at LIBOR plus 50 basis
points. The Company has only $3.2 million of principal maturities due
in total over the next five years, after paying off the non-recourse financing
for The Lodge at Vail Chalets and a $15.0 million revenue bond at its maturity
in the first quarter of fiscal 2009.
Stock Repurchase
Program
During
the first quarter of fiscal 2009, the Company repurchased 278,400 shares of
common stock at an average price of $26.63 for a total amount of approximately
$7.4 million in the quarter. Since the inception of this program in
fiscal 2006, the Company has repurchased 3,282,508 million shares at an average
price of $40.48 for a total amount of approximately $132.9 million, with
2,717,492 shares remaining available under the existing repurchase
authorization. The purchases under this program are reviewed by the
Company’s Board quarterly and are based on a number of factors to determine the
appropriate uses of excess cash, including the Company’s future financial
performance, the Company’s available cash resources and competing uses for cash
that may arise in the future, the restrictions in the Company’s credit facility
and in the indenture governing the outstanding 6.75% senior subordinated notes,
prevailing prices of the Company’s common stock and the number of shares that
become available for sale at prices that the Company believes are
attractive.
Outlook
Commenting
on the Company’s season pass sales, Katz said, “I am also very pleased with the
sales of our season passes for the 2008/2009 ski season, especially considering
the overall economic climate. We gained momentum and strong sales as
we neared the end of the season pass selling period combined with the favorable
impact of the introduction of the Epic Season Pass for this season, which
substantially boosted the number of units sold and average season pass
price. For the 2008/2009 season, we have sold to date approximately
204,000 total season passes including Epic Season Passes, for total sales of
$90.9 million as compared to approximately 173,000 passes and $70.5 million in
sales dollars in the prior year same time period, an increase of 18.0% and
28.8%, respectively. The current year includes total Epic Season Pass
sales of approximately 59,100 passes and $32.5 million in sales
dollars. The number of Colorado and Summit season passes sold for the
2008/2009 season are down 2.6% in units as compared to the number of passes sold
in the prior season, when including Epic Season Passes sold to former
Colorado/Summit season pass holders in the current year; including
sales of Heavenly season passes to date, the decline is 4.7%. Our
season pass program continues to be a fundamental and growing part of our
operating model, offering stability from economic and weather related concerns,
by locking in a significant amount of our lift revenue before the winter ski
season even begins. Historically, season pass revenue has represented
approximately 26% of lift ticket revenue with this percentage expected to
increase due to the success of the Epic Season Pass.”
Turning
to our lodging bookings, Katz added, “We have certainly seen the impact of the
challenging economic environment on our bookings trends. The advance
bookings through our central reservations and directly at our owned and managed
properties are down 23% in room nights over the same period last
year. It is critical to remember that bookings to date represent
approximately 50% of the ultimate total room nights for the season we
historically have booked through these channels. Given our limited
visibility on bookings in this environment, it remains too early to discern how
much of the decrease is a result of guests delaying their purchases or to
estimate the magnitude of an absolute visitation decline for the 2008/2009 ski
season.”
Commenting
on the fiscal 2009 outlook for the Company, Katz continued, “While we can not
say with any certainty at this point in time what impact the macro economic
environment will have on the ultimate visitation and guest spend for the
2008/2009 ski season, we feel very fortunate to manage a company with
world-class assets, a strong balance sheet and terrific
employees. However, there is no doubt that the travel and leisure
sector is being, and will continue to be, negatively impacted in the short-term;
and while we have many attributes that differentiate us from other options
guests may have, we are not immune to these negative trends. Since
issuing our fiscal 2009 guidance in late September 2008, we have seen a further
deterioration in the overall economic fundamentals. In addition,
while our season pass sales have been relatively strong, our advanced lodging
bookings have not improved. We have just begun our 2008/2009 ski
season and still have limited near-term visibility; therefore, we believe that
it is too early to formally adjust our fiscal 2009 guidance. However,
if booking trends do not improve from their current level, we almost certainly
will fall below the low end of our guidance range.”
Earnings 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.
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, Inc. 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 effects 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.
The
Company uses the terms “Reported EBITDA” 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. The Company defines Net Debt as long-term
debt plus long-term debt due within one year less cash and cash
equivalents.
|
Vail
Resorts, Inc.
|
|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Three
Months Ended
|
|||||||||
|
October
31,
|
|||||||||
|
2008
|
2007
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
40,778
|
$
|
42,536
|
|||||
|
Lodging
|
45,253
|
43,317
|
|||||||
|
Real
estate
|
66,750
|
12,034
|
|||||||
|
Total
net revenue
|
152,781
|
97,887
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
81,223
|
80,947
|
|||||||
|
Lodging
|
44,898
|
41,236
|
|||||||
|
Real
estate
|
51,377
|
6,913
|
|||||||
|
Total
segment operating expense
|
177,498
|
129,096
|
|||||||
|
Other
operating expense:
|
|||||||||
|
Depreciation
and amortization
|
(25,078
|
)
|
(20,761
|
)
|
|||||
|
Loss
on disposal of fixed assets, net
|
(180
|
)
|
(234
|
)
|
|||||
|
Loss
from operations
|
(49,975
|
)
|
(52,204
|
)
|
|||||
|
Mountain
equity investment income, net
|
1,015
|
1,969
|
|||||||
|
Investment
income
|
643
|
3,218
|
|||||||
|
Interest
expense, net
|
(7,947
|
)
|
(7,644
|
)
|
|||||
|
Contract
dispute credit, net
|
--
|
11,920
|
|||||||
|
Minority
interest in loss of consolidated subsidiaries, net
|
2,351
|
2,063
|
|||||||
|
Loss
before benefit from income taxes
|
(53,913
|
)
|
(40,678
|
)
|
|||||
|
Benefit
from income taxes
|
19,409
|
16,068
|
|||||||
|
Net
loss
|
$
|
(34,504
|
)
|
$
|
(24,610
|
)
|
|||
|
Per share
amounts:
|
|||||||||
|
Basic
net loss per share
|
$
|
(0.93
|
)
|
$
|
(0.63
|
)
|
|||
|
Diluted
net loss per share
|
$
|
(0.93
|
)
|
$
|
(0.63
|
)
|
|||
|
Weighted
average shares outstanding:
|
|||||||||
|
Basic
|
36,922
|
38,892
|
|||||||
|
Diluted
|
36,922
|
38,892
|
|||||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
(39,430
|
)
|
$
|
(36,442
|
)
|
|||
|
Lodging
Reported EBITDA
|
$
|
355
|
$
|
2,081
|
|||||
|
Resort
Reported EBITDA
|
$
|
(39,075
|
)
|
$
|
(34,361
|
)
|
|||
|
Real
Estate Reported EBITDA
|
$
|
15,373
|
$
|
5,121
|
|||||
|
Total
Reported EBITDA
|
$
|
(23,702
|
)
|
$
|
(29,240
|
)
|
|||
|
Mountain
stock-based compensation
|
$
|
1,193
|
$
|
1,144
|
||
|
Lodging
stock-based compensation
|
$
|
429
|
$
|
261
|
||
|
Resort
stock-based compensation
|
$
|
1,622
|
$
|
1,405
|
||
|
Real
Estate stock-based compensation
|
$
|
945
|
$
|
568
|
||
|
Total
stock-based compensation
|
$
|
2,567
|
$
|
1,973
|
|
Vail
Resorts, Inc.
|
|||||||||
|
Resort
Revenue by Business Line
|
|||||||||
|
(In
thousands)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Three
Months Ended
|
Percentage
|
||||||||
|
October
31,
|
Increase
|
||||||||
|
2008
|
2007
|
(Decrease)
|
|||||||
|
Lift
tickets
|
$
|
--
|
$
|
--
|
--
|
%
|
|||
|
Ski
school
|
--
|
--
|
--
|
%
|
|||||
|
Dining
|
3,929
|
4,762
|
(17.5
|
)
|
%
|
||||
|
Retail/rental
|
22,426
|
23,540
|
(4.7
|
)
|
%
|
||||
|
Other
|
14,423
|
14,234
|
1.3
|
%
|
|||||
|
Total
Mountain net revenue
|
40,778
|
42,536
|
(4.1
|
)
|
%
|
||||
|
Total
Lodging net revenue
|
45,253
|
43,317
|
4.5
|
%
|
|||||
|
Total
Resort net revenue
|
$
|
86,031
|
$
|
85,853
|
0.2
|
%
|
|||
|
Key
Balance Sheet Data
|
|||||||
|
(In
thousands)
|
|||||||
|
(Unaudited)
|
|||||||
|
As
of October 31,
|
|||||||
|
2008
|
2007
|
||||||
|
Real
estate held for sale and investment
|
$
|
256,323
|
$
|
415,411
|
|||
|
Total
stockholders' equity
|
$
|
688,111
|
$
|
681,372
|
|||
|
Long-term
debt
|
$
|
491,778
|
$
|
534,527
|
|||
|
Long-term
debt due within one year
|
354
|
76,944
|
|||||
|
Total
debt
|
492,132
|
611,471
|
|||||
|
Less:
cash and cash equivalents
|
102,668
|
166,044
|
|||||
|
Net
debt
|
$
|
389,464
|
$
|
445,427
|
|||
Reconciliation
of Non-GAAP Financial Measures
Resort,
Mountain and Lodging, and Real Estate Reported EBITDA have been presented herein
as measures of the Company's financial operating
performance. Reported EBITDA and Net Debt are not measures of
financial performance or liquidity under accounting principles generally
accepted in the United States of America ("GAAP"), and they might not be
comparable to similarly titled measures of other companies. Reported
EBITDA 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 (loss), net change in cash and cash
equivalents or other financial statement data. The Company believes
that Reported EBITDA is an indicative measurement of the Company's operating
performance, and is similar to performance metrics generally used by investors
to evaluate companies in the resort and lodging industries. The
Company primarily uses Reported EBITDA based 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 to net loss for the Company
calculated in accordance with GAAP for the three months ended October 31, 2008
and 2007.
|
(In
thousands)
|
||||||||||
|
Three
Months Ended
|
||||||||||
|
October
31,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2008
|
2007
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
(39,430
|
)
|
$
|
(36,442
|
)
|
||||
|
Lodging
Reported EBITDA
|
355
|
2,081
|
||||||||
|
Resort
Reported EBITDA*
|
(39,075
|
)
|
(34,361
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
15,373
|
5,121
|
||||||||
|
Total
Reported EBITDA
|
(23,702
|
)
|
(29,240
|
)
|
||||||
|
Depreciation
and amortization
|
(25,078
|
)
|
(20,761
|
)
|
||||||
|
Loss
on disposal of fixed assets, net
|
(180
|
)
|
(234
|
)
|
||||||
|
Investment
income
|
643
|
3,218
|
||||||||
|
Interest
expense, net
|
(7,947
|
)
|
(7,644
|
)
|
||||||
|
Contract
dispute credit, net
|
--
|
11,920
|
||||||||
|
Minority
interest in loss of consolidated subsidiaries, net
|
2,351
|
2,063
|
||||||||
|
Loss
before benefit for income taxes
|
(53,913
|
)
|
(40,678
|
)
|
||||||
|
Benefit
from income taxes
|
19,409
|
16,068
|
||||||||
|
Net
loss
|
$
|
(34,504
|
)
|
$
|
(24,610
|
)
|
||||
| * 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 October 31,
2008. Also presented is a reconciliation of Net Debt to Long-term
Debt and the calculation of Net Debt to Total Reported EBITDA for the twelve
months ended October 31, 2008.
|
(In
thousands)
|
||||||
|
Twelve
|
||||||
|
Months
Ended
|
||||||
|
October
31,
|
||||||
|
2008
|
||||||
|
Mountain
Reported EBITDA
|
$
|
217,573
|
||||
|
Lodging
Reported EBITDA
|
8,499
|
|||||
|
Resort
Reported EBITDA*
|
226,072
|
|||||
|
Real
Estate Reported EBITDA
|
56,189
|
|||||
|
Total
Reported EBITDA
|
282,261
|
|||||
|
Depreciation
and amortization
|
(98,111
|
)
|
||||
|
Loss
on disposal of fixed assets, net
|
(1,480
|
)
|
||||
|
Investment
income, net
|
5,710
|
|||||
|
Interest
expense, net
|
(30,970
|
)
|
||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,632
|
)
|
||||
|
Income
before provision for income taxes
|
152,778
|
|||||
|
Provision
for income taxes
|
(59,745
|
)
|
||||
|
Net
income
|
$
|
93,033
|
||||
| * Resort represents the sum of Mountain and Lodging | ||||||
|
(In
thousands)
|
||||||
|
As
of
|
||||||
|
October
31,
|
||||||
|
2008
|
||||||
|
Long-term
debt
|
$
|
491,778
|
||||
|
Long-term
debt due within one year
|
354
|
|||||
|
Total
debt
|
492,132
|
|||||
|
Less:
cash and cash equivalents
|
102,668
|
|||||
|
Net
debt
|
$
|
389,464
|
||||
|
Net
debt to Total Reported EBITDA
|
1.38
|
|||||
Exhibit
99.2
|
(In
thousands)
|
||||||
|
Twelve
|
||||||
|
Months
Ended
|
||||||
|
October
31,
|
||||||
|
2008
|
||||||
|
Mountain
Reported EBITDA
|
$
|
217,573
|
||||
|
Lodging
Reported EBITDA
|
8,499
|
|||||
|
Resort
Reported EBITDA*
|
226,072
|
|||||
|
Real
Estate Reported EBITDA
|
56,189
|
|||||
|
Total
Reported EBITDA
|
282,261
|
|||||
|
Depreciation
and amortization
|
(98,111
|
)
|
||||
|
Loss
on disposal of fixed assets, net
|
(1,480
|
)
|
||||
|
Investment
income, net
|
5,710
|
|||||
|
Interest
expense, net
|
(30,970
|
)
|
||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,632
|
)
|
||||
|
Income
before provision for income taxes
|
152,778
|
|||||
|
Provision
for income taxes
|
(59,745
|
)
|
||||
|
Net
income
|
$
|
93,033
|
||||
| * Resort represents the sum of Mountain and Lodging | ||||||
|
(In
thousands)
|
||||||
|
As
of
|
||||||
|
October
31,
|
||||||
|
2008
|
||||||
|
Long-term
debt
|
$
|
491,778
|
||||
|
Long-term
debt due within one year
|
354
|
|||||
|
Total
debt
|
492,132
|
|||||
|
Less:
cash and cash equivalents
|
102,668
|
|||||
|
Net
debt
|
$
|
389,464
|
||||
|
Net
debt to Total Reported EBITDA
|
1.38
|
|||||