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 24, 2009
Vail Resorts,
Inc.
(Exact
Name of Registrant as Specified in Charter)
|
Delaware
|
001-09614
|
51-0291762
|
||
|
(State
or Other Jurisdiction of Incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
||
|
390
Interlocken Crescent
Broomfield,
Colorado
|
80021
|
|||
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
|||
|
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
September 24, 2009, Vail Resorts, Inc. issued a press release announcing its
results for the three months and year ended July 31, 2009. 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.
|
Vail
Resorts, Inc.
|
||
|
Date:
September 24, 2009
|
By:
|
/s/
Jeffrey W. Jones
|
|
Jeffrey
W. Jones
|
||
|
Senior
Executive Vice President and
Chief
Financial Officer
|
EXHIBIT
INDEX
|
Exhibit No.
|
Description
|
|
99.1
|
Press
Release, dated September 24, 2009, announcing fiscal fourth quarter
and fiscal 2009 year-end results.
|
Exhibit 99.1
Vail
Resorts, Inc.
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 Results and 2010 Outlook
BROOMFIELD,
Colo. - September 24, 2009 - Vail Resorts, Inc. (NYSE: MTN) today
reported results for the fiscal year ended July 31, 2009.
Fiscal 2009
Highlights
|
·
|
Resort
Reported EBITDA, which includes the Company’s Mountain and Lodging
segments, of $171.1 million in Fiscal 2009 decreased $59.6 million, or
25.8%, from the prior year.
|
|
·
|
Real
Estate Reported EBITDA of $44.1 million in Fiscal 2009 decreased $1.9
million, or 4.0%, from the prior
year.
|
|
·
|
Net
income of $49.0 million in Fiscal 2009 decreased $54.0 million, or 52.4%,
from the prior year.
|
|
·
|
Net
Debt leverage ratio of 1.96 times trailing twelve months Total Reported
EBITDA, $69.3 million of cash and cash equivalents on hand as of July 31,
2009, and no revolver borrowings under the Company’s $400 million senior
credit facility.
|
Commenting
on the Company’s Fiscal 2009 results, Rob Katz, Chief Executive Officer said, “I
am pleased that Vail Resorts was able to deliver solid results for the fiscal
year ended July 31, 2009, given the unprecedented economic environment and its
impact on the travel and leisure sectors. Our fourth fiscal quarter
is a seasonally low quarter with no ski operations. Therefore, our
year-end results, especially in our Mountain segment, tracked with trends
previously reported for our third quarter to date. Overall, our
Fiscal 2009 net income as well as Resort Reported EBITDA fell in the upper end
of our guidance ranges (which we issued in March 2009 and reaffirmed in June
2009, in our second and third quarter earnings releases, respectively), while
Real Estate Reported EBITDA slightly exceeded the upper end of our previous
range. These results all benefited from our continued focus on cost
controls. The Company implemented cost savings initiatives in Fiscal
2009, which helped to insulate our results from the full impact of the downturn
in travel and leisure spending and better position the Company for Fiscal
2010. Importantly, we were able to achieve these expense reductions,
while actually improving our company-wide overall guest satisfaction scores over
the prior year. Total skier visits declined 5.3% for the 2008/2009
ski season and total lift ticket revenue declined 8.4%. We estimate
that total Destination (out-of-state and international) visitation declined by
approximately 15% for the 2008/2009 ski season, while we saw overall visits from
season pass holders improve by 17.0% due to an increase in the number of passes
sold and an increase in pass usage during the season. Visitation at
our Colorado resorts declined by 3.5% during the 2008/2009 ski season compared
to the 2007/2008 ski season. This compares very favorably to the
skier visit results reported by the rest of the Colorado ski industry, which
declined 6.9% over the same period and the Utah ski industry, which declined
6.5%. The number of season passes sold for the 2008/2009 ski season
was 12.2% greater than the number of passes sold for the 2007/2008 ski season,
due in large part to the introduction of the Epic Season Pass in the 2008/2009
season, and when combined with an 8.3% increase in effective pass price, drove a
21.7% increase in season pass revenue. Season pass revenue as a
percent of total lift ticket revenue grew from 26% for the 2007/2008 ski season
to 34% for the 2008/2009 ski season. Our ancillary business
revenue lines, including ski school, dining and retail/rental, experienced
greater percentage declines than our lift ticket revenue variance due to the
combination of lower Destination visitation and lower average guest spend during
their stay.”
Katz
continued, “The impact of the economic environment continued into the fourth
quarter for our Lodging segment, where our properties continued to experience a
much closer-in booking window and offered an increased level of promotions and
packaging discounts that reduced revenue per available room
(“RevPAR”). RevPAR at our owned hotels, on a same store basis,
declined by 10.9% for Fiscal 2009, which was a smaller decline than that
experienced by the luxury and the upper upscale segments of the lodging industry
as a whole, which had estimated RevPAR declines of approximately 21% and 15%,
respectively. Our group lodging business was also negatively impacted
and as a result the Company saw a mix shift from group to transient
business. While the Company was able to reduce Resort operating
expenses, including from our previously announced cost savings initiatives,
our Resort
Reported EBITDA as a percentage of revenue for Fiscal 2009 declined by 5.4
percentage points as cost reductions could not offset revenue
declines. We were very pleased with our Fiscal 2009 Real Estate
segment results, which included the closing on eight Lodge at Vail Chalet units,
42 residences at Crystal Peak Lodge and two condominium units at the Arrabelle,
which together represented the vast majority of our $186 million in Fiscal 2009
Real Estate segment revenue. In addition, we received final
initiation fee deposits on 400 memberships to the Vail Mountain Club and
Arrabelle Club representing total membership proceeds in excess of $71
million. Our Fiscal 2009 Resort operating results, real estate sales
proceeds and private club initiation fee deposits, combined with stringent
discipline in managing our balance sheet and capitalization positioned us well
in this challenging environment with Net Debt leverage less than two times
trailing twelve months Total Reported EBITDA, no borrowings under our revolver
and virtually no principal maturities due on any of our debt until
2014.”
Mountain
Segment
|
·
|
Mountain
segment net revenue was $614.6 million in Fiscal 2009 compared to $685.5
million in Fiscal 2008, a decline of
10.3%.
|
|
·
|
Mountain
Reported EBITDA was $164.4 million in Fiscal 2009 compared to $220.6
million in Fiscal 2008, a decline of
25.5%.
|
Lift
ticket revenue in Fiscal 2009 decreased $25.4 million, or 8.4%, from the prior
fiscal year primarily due to a 21.1% decrease in visits excluding season pass
holders, driving an 18.8% decrease in lift revenue excluding season pass
revenue, partially offset by the 21.7% increase in season pass revenue and a
2.9% increase in effective ticket price excluding season passes. The
overall visitation decline was primarily as a result of the decrease in
visitation from Destination guests, partially offset by strong visitation from
season pass holders, especially from the new Epic Season Pass holders, who on
average skied more in the current year per pass than holders of our other season
pass products. Our season pass holders used their season passes to a
greater degree this season, skiing on average 10.6 times in the 2008/2009 ski
season compared to 9.7 times per season pass in the prior season. A
portion of the decline in lift revenue excluding season pass revenue was caused
by a shift in Destination guests purchasing the Epic Season Pass instead of
other lift ticket products, with the increase in season pass visits causing the
overall decline in effective ticket price of 3.2% for the fiscal
year. The mix of Destination to in-state guest visits for the
2008/2009 ski season was approximately 57% to 43%, respectively, compared to
approximately 63% to 37%, respectively, in the prior ski season.
Revenues
for the Company's ski school, dining and retail/rental operations, were all
negatively impacted by the severe downturn in the economic environment, which
resulted from the decrease in Destination guest visitation as well as an overall
decrease in spending per guest. Ski school revenue decreased $16.0
million, or 19.7%, in Fiscal 2009 compared to Fiscal 2008, as ski school revenue
is primarily driven by Destination guests. Dining revenue decreased
$10.2 million, or 16.4%, in Fiscal 2009 compared to Fiscal 2008, due to an
approximate 11% decrease in the number of total on-mountain food and beverage
transactions, coupled with an even greater decline in fine
dining. Revenue from retail/rental operations decreased $21.4
million, or 12.7%, in Fiscal 2009 compared to Fiscal 2008 primarily due to lower
sales and rental volumes at the Company’s mountain resort stores. For
Fiscal 2009, other revenue increased $2.1 million, or 2.9%, favorably impacted
by private club operations (which revenue increased $4.1 million) resulting from
the opening of the Vail Mountain Club in November 2008, which partially offset
other revenue declines.
Mountain
segment operating expenses decreased $19.3 million, or 4.1%, during Fiscal 2009
compared to Fiscal 2008, which primarily resulted from a decrease in labor and
labor-related benefits expense of $10.1 million, or 5.8%, as well as a $6.5
million, or 9.0%, decrease in retail cost of sales (commensurate with the
decrease in retail revenue). The labor expense decline was primarily
due to decreased staffing levels driven by lower volume in ski school, dining
and retail/rental operations as well as the impacts of cost reduction
initiatives including the suspension of the Company’s matching contribution to
its 401(k) program effective January 2009 and a company-wide wage reduction plan
implemented in April 2009. Additionally, resort related fees
(including Forest Service fees, other resort-related fees, credit card fees and
commissions) decreased $3.2 million, or 8.9%, compared to Fiscal 2008 due to
overall declines in revenue on which those fees are calculated, and other
expenses decreased $1.3 million, or 1.3%, due primarily to lower food and
beverage cost of sales, supplies and fuel expense, partially offset by higher
property taxes, utilities and repairs and maintenance expense. All of
the above decreases were slightly offset by a $1.9 million, or 2.3%, increase in
general and administrative expenses primarily due to higher allocated corporate
expenses. The decreases in operating expenses however were not enough
to offset the declines in segment net revenues resulting in lower flow through
of net revenue to Mountain Reported EBITDA of approximately 5.5 percentage
points for Fiscal 2009, compared to the same period in the prior
year. Mountain equity investment income, which primarily includes the
Company's share of income from the operations of a real estate brokerage joint
venture, decreased $4.6 million for Fiscal 2009 compared to Fiscal 2008
primarily due to decreased commissions earned by the brokerage due to a lower
level of real estate closures compared to Fiscal 2008.
Lodging
Segment
|
·
|
Lodging
segment net revenue was $176.2 million in Fiscal 2009 compared to $170.1
million in Fiscal 2008, an increase of 3.6%, primarily due to the
acquisition of Colorado Mountain Express (“CME”) on November 1, 2008 and a
full year of operations at The Arrabelle at Vail Square hotel (the
“Arrabelle”), which opened in January 2008. Excluding the
impact of CME, Lodging segment net revenue would have decreased $11.8
million, or 6.9%.
|
|
·
|
Fiscal
2009 average daily rate (“ADR”) decreased 5.2% and RevPAR decreased 15.0%
at the Company’s owned hotels and managed condominiums on a "same store"
basis, excluding the Arrabelle, compared to the prior
year.
|
|
·
|
Lodging
Reported EBITDA was $6.8 million in Fiscal 2009 compared to $10.2 million
in Fiscal 2008, a decline of 33.9%. Fiscal 2009 Lodging segment
results included $18.0 million of revenue and $12.8 million of operating
expense from CME, while the prior year Lodging segment results included
approximately $3.1 million of start-up and pre-opening expenses related to
the Arrabelle.
|
The
Lodging segment experienced significantly less visibility in Fiscal 2009 with a
much closer-in booking window in both peak and non-peak periods with Lodging
segment results impacted by similar trends realized by the Mountain segment,
including the decline in Destination visitation at our mountain
resorts. Total Lodging net revenue for Fiscal 2009 increased $6.2
million, or 3.6%, compared to Fiscal 2008, primarily due to the acquisition of
CME on November 1, 2008 and a full year of operations at the Arrabelle, which
opened in January 2008. CME operations contributed $18.0 million in
net revenue for Fiscal 2009 and the full year operations of the Arrabelle
contributed $11.3 million in net revenue for Fiscal 2009 compared to net revenue
of $5.2 million for the partial year of operations of the Arrabelle in Fiscal
2008.
Revenue
from owned hotel rooms, including the Arrabelle, decreased $3.7 million, or
7.8%, for Fiscal 2009 compared to Fiscal 2008, which was driven by a decrease in
occupancy of 6.2 percentage points, which primarily occurred at the lodging
properties proximate to the Company’s ski resorts. This was due to a
decline in Destination visitation and declines in group business (including a
decrease in Grand Teton Lodge Company’s (“GTLC”) room revenue of $0.8 million in
the fourth quarter of Fiscal 2009 compared to the fourth quarter of Fiscal 2008
primarily due to a decline in group business) as well as decreases in ADR of
0.5%, partially offset by the full year of operations at the Arrabelle (the
Arrabelle generated $0.8 million of incremental owned hotel room revenue for
Fiscal 2009 compared to Fiscal 2008). Revenue from managed
condominium rooms decreased $2.6 million, or 6.9%, for Fiscal 2009, due to
decreases in visitation as noted above, declines in group business primarily at
Keystone and decreases in ADR of 2.5%, partially offset by the full year of
operations at the Arrabelle, which includes condominium property management (the
Arrabelle generated $2.1 million of incremental revenue from managed properties
for Fiscal 2009 compared to Fiscal 2008).
Dining
revenue for Fiscal 2009 decreased $1.6 million, or 4.9%, as compared to Fiscal
2008 mainly due to decreased overall guest and group visitation as well as
decreases in guest spending per visit (GTLC’s dining revenue decreased $1.0
million in the fourth quarter of Fiscal 2009 compared to the fourth quarter of
Fiscal 2008 primarily due to a decline in group business). The
decline in dining revenue was partially offset by a full year of dining
operations at the Arrabelle (the Arrabelle generated $1.2 million of incremental
dining revenue for Fiscal 2009 compared to Fiscal 2008). Golf
revenues decreased $1.2 million, or 7.5%, for Fiscal 2009 compared to Fiscal
2008, primarily resulting from a 6.0% decrease in the number of golf rounds
played. Other revenue decreased $2.8 million, or 7.3%, in Fiscal 2009
compared to Fiscal 2008 primarily due to a reduction in commissions earned from
reservations booked through the Company’s central reservation system, which were
partially offset by a full year of spa operations at the Arrabelle (the
Arrabelle generated $0.9 million of incremental spa revenue for Fiscal 2009
compared to Fiscal 2008).
Lodging
segment operating expense increased $9.7 million, or 6.0%, for Fiscal 2009
compared to Fiscal 2008. Operating expenses for Fiscal 2009 included
$12.8 million of CME operating expenses as well as an increase in operating
expenses at the Arrabelle of $6.8 million as a result of a full year of
operations in Fiscal 2009, which was partially offset by $3.1 million of
start-up and pre-opening expenses associated with the Arrabelle recorded in
Fiscal 2008. Excluding the impact of CME operating expenses and
operating expenses for the Arrabelle due to a full year of operations (net of
start-up and pre-opening expenses recorded in Fiscal 2008), total operating
expenses decreased $6.9 million, or 4.6%, in Fiscal 2009 compared to Fiscal
2008, primarily due to a decrease in labor and labor-related benefits of $4.9
million, or 6.9%, due primarily to lower staffing levels associated with
decreased occupancy and wage decreases as a result of a company-wide wage
reduction plan and a decrease in other expenses of $3.0 million, or 5.6%,
primarily due to decreased variable operating costs associated with lower
revenue resulting in lower food and beverage cost of sales and credit card fees,
offset by an increase in general and administrative expenses of $1.0 million due
to higher allocated corporate expenses.
Resort – Combination of
Mountain and Lodging Segments
|
·
|
Resort
net revenue was $790.8 million in Fiscal 2009 compared to $855.6 million
in Fiscal 2008, a decline of 7.6%.
|
|
·
|
Resort
Reported EBITDA was $171.1 million in Fiscal 2009 compared to $230.8
million in Fiscal 2008, a decline of
25.8%.
|
Real Estate
Segment
|
·
|
Real
Estate segment net revenue was $186.2 million in Fiscal 2009 compared to
$296.6 million in Fiscal 2008, a decline of
37.2%.
|
|
·
|
Real
Estate Reported EBITDA was $44.1 million in Fiscal 2009 compared to $45.9
million in Fiscal 2008, a decline of
4.0%.
|
In Fiscal
2009, Real Estate revenue was driven primarily by the closings of eight Lodge at
Vail Chalet units with an average price per square foot of $2,860, 42 residences
at Crystal Peak Lodge with an average price per square foot of $1,038 and two
condominium units at the Arrabelle with an average price per square foot of
$1,623. Real Estate revenue for Fiscal 2008 was driven primarily by
the closings of 64 condominium units at the Arrabelle with an
average price per square foot of $1,220, the closings of five Lodge at Vail
Chalet units with an average price per square foot of $2,336, the closings of
the remaining Jackson Hole Golf & Tennis Club (“JHG&TC”) cabins and
contingent gains of $13.0 million on development parcel sales that closed in
previous periods.
In Fiscal
2009, Real Estate segment operating expenses included cost of sales of $101.1
million commensurate with revenue recognized, sales commissions of approximately
$10.6 million commensurate with revenue recognized and general and
administrative costs of approximately $27.6 million (including $4.1 million of
stock-based compensation expense). General and administrative costs
were primarily comprised of marketing expenses for the major real estate
projects under development (including those that have not yet closed), overhead
costs such as labor and labor-related benefits and allocated corporate
costs. In addition, included in segment operating expense for Fiscal
2009, the Company recorded $2.8 million of estimated costs in excess of
anticipated sales proceeds for an affordable housing commitment resulting from
the cancellation of a contract by a third party developer related to its
JHG&TC development. Real Estate segment operating expenses
for Fiscal 2008 included cost of sales of $208.8 million commensurate with
revenue recognized, sales commissions of approximately $17.1 million
commensurate with revenue recognized and general and administrative costs of
approximately $25.4 million (including $3.1 million of stock-based compensation
expense).
Total
Performance
|
·
|
Total
net revenue was $977.0 million in Fiscal 2009 compared to $1.2 billion in
Fiscal 2008, a decline of 15.2%.
|
|
·
|
Net
income was $49.0 million, or $1.33 per diluted share, in Fiscal 2009
compared to net income of $102.9 million, or $2.64 per diluted share, in
Fiscal 2008. Included in the Fiscal 2008 net income results was
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 July
31, 2009, the Company had cash and cash equivalents on hand of $69.3 million,
Net Debt of 1.96 times trailing twelve months Total Reported EBITDA and a $400
million senior credit facility, which matures in 2012, with no revolver
borrowings under the facility. The Company has virtually no principal
maturities due until 2014.
Stock Repurchase
Program
During
Fiscal 2009, the Company repurchased 874,427 shares of common stock at a cost of
$22.4 million. Since inception of this stock repurchase plan in 2006,
the Company has repurchased 3,878,535 shares at a cost of approximately $147.8
million, through July 31, 2009. As of July 31, 2009, 2,121,465 shares
remained available to repurchase 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, including the
Company’s expected 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 senior 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 and Fiscal Year 2010
Guidance
Providing
an update on the Company’s 2009/2010 season pass sales, Katz said, “We are very
pleased with our advance period season pass sales for our upcoming 2009/2010 ski
season, compared to the comparable period of the prior year. It is
clearly a key early indicator for Fiscal 2010 as the Company is able to lock-in
a greater portion of its lift ticket revenue before the start of the ski season,
which provides significant operating stability as more of our guests each year
are willing to commit, prior to the season, to visiting our resorts during the
season, in exchange for the value that the pass price provides to the guests
relative to our individual day ticket pricing. Through September 20,
2009, our total season pass sales to date for the upcoming 2009/2010 ski season
have increased approximately 15% in sales dollars and approximately 14% in
units, over the same period last year, with the prior year selling period
representing approximately 55% of the total passes sold for the 2008/2009 ski
season. The pace of the increase to prior year reflects that more
people have committed to our pass products earlier in the selling period as
compared to the prior year, indicating the strength of our marketing efforts and
customer database expansion, with the sales of the Epic Season Pass continuing
to outpace our other pass products. While this remains strong
pre-season performance, it is too early to discern the extent to which this
trend will continue, and what the ultimate level of any incremental new season
pass purchases may be.”
Highlighting
some of the Company’s new initiatives, Katz commented, “We have recently
announced some very exciting new initiatives for the 2009/2010 ski season
targeted at recapturing certain revenue that we lost in our ski school and
dining areas in Fiscal 2009. ‘The Adventure Sessions’ program is
tailored to give guests a whole new way to explore the mountain with an expert
guide to gain insider’s knowledge of each resort and receive tips to improve
their skiing and riding throughout the day. The program, which teams
up guests with other like-minded skiers or riders, is geared towards
intermediate, advanced and expert level skiers and riders who are looking for
more adventure with the locals’ view of the mountain and less instruction, while
at a similar price point to a group lesson. We also will introduce a
guaranteed small group class size program tailored for children, which will
offer a cap of four students per class on a reservation only
basis. In addition, we have unveiled new mountain dining initiatives
designed to offer the highest quality food combined with some great
values. This includes higher quality signature burgers, a new daily
value meal for $9.95 at our on-mountain dining establishments at each resort and
a convenient new pre-paid Mountain Meal Card, which will offer added value by
providing up to a 20% discount based upon the amount purchased. We
look forward to aggressively marketing these and other programs to our guests
throughout this coming year.”
Commenting
on Fiscal 2010 guidance, Katz continued, “We would like to announce our guidance
for Fiscal 2010. After the economic turbulence experienced in Fiscal
2009, we expect to benefit from a relatively more stable overall macro economic
environment in Fiscal 2010, although our visibility at this point is limited as
we are not yet in a period where our ski operations have commenced for the
upcoming ski season nor where we would expect to see meaningful bookings for the
ski season. In addition, supported by the momentum of our advance
season pass sales for the upcoming 2009/2010 ski season combined with our
focused efforts on improving Destination visitation and ancillary business
spend, including from newly formulated programs and offerings, we anticipate
that the revenue lines of our Resort business will improve
year-over-year. Additionally, the cost savings initiatives
implemented during Fiscal 2009 will provide a favorable full year impact in
Fiscal 2010. Therefore based on our current estimates, our Fiscal
2010 guidance range anticipates growth in year-over-year Resort Reported
EBITDA. Contrasting the Resort segment, our Real Estate segment
results, which are impacted in any given year by the timing and mix of real
estate sold and closed, are expected to decrease significantly given the type
and number of units closed in Fiscal 2009 as compared to anticipated closings
for Fiscal 2010.”
The
following table reflects the forecasted guidance range for the Company’s Fiscal
year ending July 31, 2010, for Reported EBITDA (after stock-based compensation
expense) and reconciles such Reported EBITDA guidance to net income guidance for
Fiscal 2010.
|
Fiscal
2010 Guidance
|
|||||||
|
(In
thousands)
|
|||||||
|
For
the Year Ending
|
|||||||
|
July
31, 2010
|
|||||||
|
Low
End
Range
|
High
End Range
|
||||||
|
Mountain
Reported EBITDA (1)
|
$
|
170,000
|
$
|
180,000
|
|||
|
Lodging
Reported EBITDA (2)
|
5,000
|
11,000
|
|||||
|
Resort
Reported EBITDA (3)
|
178,000
|
188,000
|
|||||
|
Real
Estate Reported EBITDA (4)
|
(8,000
|
)
|
--
|
||||
|
Total
Reported EBITDA
|
170,000
|
188,000
|
|||||
|
Depreciation
and amortization
|
(111,000
|
)
|
(111,000
|
)
|
|||
|
Loss
on disposal of fixed assets, net
|
(1,100
|
)
|
(1,100
|
)
|
|||
|
Investment
income
|
800
|
850
|
|||||
|
Interest
expense, net
|
(17,000
|
)
|
(17,000
|
)
|
|||
|
Income
before provision for income taxes
|
41,700
|
59,750
|
|||||
|
Provision
for income taxes
|
(16,050
|
)
|
(23,000
|
)
|
|||
|
Net
income
|
$
|
25,650
|
$
|
36,750
|
|||
|
Net
income attributable to the non-controlling interests
|
$
|
(650
|
)
|
$
|
(1,750
|
)
|
|
|
Net
income attributable to Vail Resorts, Inc.
|
$
|
25,000
|
$
|
35,000
|
|||
|
(1)
|
Mountain
Reported EBITDA includes approximately $5 million of stock-based
compensation.
|
|
(2)
|
Lodging
Reported EBITDA includes approximately $2 million of stock-based
compensation.
|
|
(3)
|
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
Reported EBITDA range.
|
|
(4)
|
Real
Estate Reported EBITDA includes approximately $4 million of stock-based
compensation.
|
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., through its subsidiaries, is the leading mountain resort operator
in the United States. The Company's subsidiaries operate the mountain resort
properties of 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: prolonged downturn in general economic conditions, including
continued adverse affects on the overall travel and leisure related industries;
unfavorable weather conditions or natural disasters; competition in our mountain
and lodging businesses; our ability to grow our resort and real estate
operations; our ability to successfully complete real estate development
projects and achieve the anticipated financial benefits from such projects;
further adverse changes in real estate markets; continued volatility in credit
markets; our ability to obtain financing on terms acceptable to us to finance
our real estate development, capital expenditures and growth strategy; our
reliance on government permits or approvals for our use of Federal land or to
make operational improvements; adverse consequences of current or future legal
claims; our ability to hire and retain a sufficient seasonal workforce;
willingness of our guests to travel due to terrorism, the uncertainty of
military conflicts or outbreaks of contagious diseases, and the cost and
availability of travel options; negative publicity or unauthorized use of our
trademarks which diminishes the value of our brands; our ability to integrate
and successfully operate future acquisitions; and implications arising from new
Financial Accounting Standards Board (“FASB”)/governmental legislation, rulings
or interpretations. 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 or minus
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.
|
Vail
Resorts, Inc.
|
|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Three
Months Ended
|
|||||||||
|
July
31,
|
|||||||||
|
2009
|
2008
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
36,150
|
$
|
37,549
|
|||||
|
Lodging
|
44,942
|
48,323
|
|||||||
|
Real
estate
|
20,836
|
184,587
|
|||||||
|
Total
net revenue
|
101,928
|
270,459
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
68,616
|
68,421
|
|||||||
|
Lodging
|
46,899
|
46,300
|
|||||||
|
Real
estate
|
17,056
|
146,454
|
|||||||
|
Total
segment operating expense
|
132,571
|
261,175
|
|||||||
|
Other
operating expense:
|
|||||||||
|
Depreciation
and amortization
|
(27,115
|
)
|
(23,941
|
)
|
|||||
|
Loss
on disposal of fixed assets, net
|
(256
|
)
|
(1,167
|
)
|
|||||
|
Loss
from operations
|
(58,014
|
)
|
(15,824
|
)
|
|||||
|
Mountain
equity investment (loss) income, net
|
(949
|
)
|
1,797
|
||||||
|
Investment
income, net
|
365
|
589
|
|||||||
|
Interest
expense, net
|
(5,816
|
)
|
(7,047
|
)
|
|||||
|
Minority
interest in loss of consolidated subsidiaries, net
|
2,588
|
2,548
|
|||||||
|
Loss
before benefit for income taxes
|
(61,826
|
)
|
(17,937
|
)
|
|||||
|
Benefit
for income taxes
|
23,096
|
6,814
|
|||||||
|
Net
loss
|
$
|
(38,730
|
)
|
$
|
(11,123
|
)
|
|||
|
Per share
amounts:
|
|||||||||
|
Basic
net loss per share
|
$
|
(1.07
|
)
|
$
|
(0.29
|
)
|
|||
|
Diluted
net loss per share
|
$
|
(1.07
|
)
|
$
|
(0.29
|
)
|
|||
|
Weighted
average shares outstanding:
|
|||||||||
|
Basic
|
36,312
|
38,031
|
|||||||
|
Diluted
|
36,312
|
38,031
|
|||||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
(33,415
|
)
|
$
|
(29,075
|
)
|
|||
|
Lodging
Reported EBITDA
|
$
|
(1,957
|
)
|
$
|
2,023
|
||||
|
Resort
Reported EBITDA
|
$
|
(35,372
|
)
|
$
|
(27,052
|
)
|
|||
|
Real
Estate Reported EBITDA
|
$
|
3,780
|
$
|
38,133
|
|||||
|
Total
Reported EBITDA
|
$
|
(31,592
|
)
|
$
|
11,081
|
||||
|
Mountain
stock-based compensation
|
$
|
1,415
|
$
|
985
|
||
|
Lodging
stock-based compensation
|
$
|
406
|
$
|
354
|
||
|
Resort
stock-based compensation
|
$
|
1,821
|
$
|
1,339
|
||
|
Real
Estate stock-based compensation
|
$
|
1,114
|
$
|
880
|
||
|
Total
stock-based compensation
|
$
|
2,935
|
$
|
2,219
|
|
Vail
Resorts, Inc.
|
|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Twelve
Months Ended
|
|||||||||
|
July
31,
|
|||||||||
|
2009
|
2008
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
614,597
|
$
|
685,533
|
|||||
|
Lodging
|
176,241
|
170,057
|
|||||||
|
Real
estate
|
186,150
|
296,566
|
|||||||
|
Total
net revenue
|
976,988
|
1,152,156
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
451,025
|
470,362
|
|||||||
|
Lodging
|
169,482
|
159,832
|
|||||||
|
Real
estate
|
142,070
|
251,338
|
|||||||
|
Total
segment operating expense
|
762,577
|
881,532
|
|||||||
|
Other
operating (expense) income:
|
|||||||||
|
Gain
on sale of real property
|
--
|
709
|
|||||||
|
Depreciation
and amortization
|
(107,213
|
)
|
(93,794
|
)
|
|||||
|
Loss
on disposal of fixed assets, net
|
(1,064
|
)
|
(1,534
|
)
|
|||||
|
Income
from operations
|
106,134
|
176,005
|
|||||||
|
Mountain
equity investment income, net
|
817
|
5,390
|
|||||||
|
Investment
income, net
|
1,793
|
8,285
|
|||||||
|
Interest
expense, net
|
(27,548
|
)
|
(30,667
|
)
|
|||||
|
Contract
dispute credit, net
|
--
|
11,920
|
|||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(1,602
|
)
|
(4,920
|
)
|
|||||
|
Income
before provision for income taxes
|
79,594
|
166,013
|
|||||||
|
Provision
for income taxes
|
(30,644
|
)
|
(63,086
|
)
|
|||||
|
Net
income
|
$
|
48,950
|
$
|
102,927
|
|||||
|
Per share
amounts:
|
|||||||||
|
Basic
net income per share
|
$
|
1.34
|
$
|
2.67
|
|||||
|
Diluted
net income per share
|
$
|
1.33
|
$
|
2.64
|
|||||
|
Weighted
average shares outstanding:
|
|||||||||
|
Basic
|
36,546
|
38,616
|
|||||||
|
Diluted
|
36,673
|
38,934
|
|||||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
164,389
|
$
|
220,561
|
|||||
|
Lodging
Reported EBITDA
|
$
|
6,759
|
$
|
10,225
|
|||||
|
Resort
Reported EBITDA
|
$
|
171,148
|
$
|
230,786
|
|||||
|
Real
Estate Reported EBITDA
|
$
|
44,080
|
$
|
45,937
|
|||||
|
Total
Reported EBITDA
|
$
|
215,228
|
$
|
276,723
|
|||||
|
Mountain
stock-based compensation
|
$
|
4,826
|
$
|
3,834
|
||
|
Lodging
stock-based compensation
|
$
|
1,778
|
$
|
1,294
|
||
|
Resort
stock-based compensation
|
$
|
6,604
|
$
|
5,128
|
||
|
Real
Estate stock-based compensation
|
$
|
4,129
|
$
|
3,136
|
||
|
Total
stock-based compensation
|
$
|
10,733
|
$
|
8,264
|
|
Vail
Resorts, Inc.
|
||||||||||||||
|
Mountain
Segment Operating Results
|
||||||||||||||
|
(In
thousands, except Effective Ticket Price)
|
||||||||||||||
|
(Unaudited)
|
||||||||||||||
|
Three
Months Ended
|
Percentage
|
Twelve
Months Ended
|
Percentage
|
|||||||||||
|
July
31,
|
Increase
|
July
31,
|
Increase
|
|||||||||||
|
2009
|
2008
|
(Decrease)
|
2009
|
2008
|
(Decrease)
|
|||||||||
|
Net
Mountain revenue:
|
||||||||||||||
|
Lift
tickets
|
$
|
--
|
$
|
123
|
(100.0
|
)
%
|
$
|
276,542
|
$
|
301,914
|
(8.4
|
)
%
|
||
|
Ski
school
|
--
|
--
|
--
|
|
65,336
|
81,384
|
(19.7
|
)
%
|
||||||
|
Dining
|
3,803
|
4,504
|
(15.6
|
)
%
|
52,259
|
62,506
|
(16.4
|
)
%
|
||||||
|
Retail/rental
|
17,537
|
18,921
|
(7.3
|
)
%
|
147,415
|
168,765
|
(12.7
|
)
%
|
||||||
|
Other
|
14,810
|
14,001
|
5.8
|
%
|
73,045
|
70,964
|
2.9
|
%
|
||||||
|
Total
Mountain net revenue
|
$
|
36,150
|
$
|
37,549
|
(3.7
|
)
%
|
$
|
614,597
|
$
|
685,533
|
(10.3
|
)
%
|
||
|
Mountain
operating expense:
|
||||||||||||||
|
Labor
and labor-related benefits
|
$ |
22,075
|
$ |
22,615
|
(2.4
|
)
%
|
$
|
165,550
|
$
|
175,674
|
(5.8
|
)
%
|
||
|
Retail
cost of sales
|
10,273
|
10,713
|
(4.1
|
)
%
|
66,022
|
72,559
|
(9.0
|
)
%
|
||||||
|
Resort
related fees
|
763
|
670
|
13.9
|
%
|
33,102
|
36,335
|
(8.9
|
)
%
|
||||||
|
General
and administrative
|
16,862
|
15,873
|
6.2
|
%
|
83,117
|
81,220
|
2.3
|
%
|
||||||
|
Other
|
18,643
|
18,550
|
0.5
|
%
|
103,234
|
104,574
|
(1.3
|
)
%
|
||||||
|
Total
Mountain operating expense
|
$ |
68,616
|
$ |
68,421
|
0.3
|
%
|
$
|
451,025
|
$
|
470,362
|
(4.1
|
)
%
|
||
|
Mountain
equity investment (loss) income, net
|
(949
|
)
|
1,797
|
(152.8
|
)
%
|
817
|
5,390
|
(84.8
|
)
%
|
|||||
|
Total
Mountain Reported EBITDA
|
$ |
(33,415
|
)
|
$ |
(29,075
|
)
|
(14.9
|
)
%
|
$
|
164,389
|
$
|
220,561
|
(25.5
|
)
%
|
|
Total
skier visits
|
--
|
5
|
(100.0
|
)
%
|
5,864
|
6,195
|
(5.3
|
)
%
|
||||||
|
ETP
|
$
|
--
|
$
|
24.60
|
(100.0
|
)
%
|
$
|
47.16
|
$
|
48.74
|
(3.2
|
)
%
|
||
|
Twelve
Months Ended
|
Percentage
|
||||||
|
July
31,
|
Increase
|
||||||
|
2009
|
2008
|
(Decrease)
|
|||||
|
Skier
Visits
|
|||||||
|
Vail
|
1,622
|
1,570
|
3.3
|
%
|
|||
|
Breckenridge
|
1,528
|
1,630
|
(6.3
|
)
|
%
|
||
|
Keystone
|
981
|
1,129
|
(13.1
|
)
|
%
|
||
|
Beaver
Creek
|
931
|
918
|
1.4
|
%
|
|||
|
Heavenly
|
802
|
948
|
(15.4
|
)
|
%
|
||
|
Total
Skier Visits
|
5,864
|
6,195
|
(5.3
|
)
|
%
|
||
|
ETP
|
$
|
47.16
|
$
|
48.74
|
(3.2
|
)
|
%
|
|
Vail
Resorts, Inc.
|
|||||||||||||
|
Lodging
Operating Results
|
|||||||||||||
|
(In
thousands, except ADR and RevPAR)
|
|||||||||||||
|
(Unaudited)
|
|||||||||||||
|
Three
Months Ended
|
Percentage
|
Twelve
Months Ended
|
Percentage
|
||||||||||
|
July
31,
|
Increase
|
July
31,
|
Increase
|
||||||||||
|
2009
|
2008
|
(Decrease)
|
2009
|
2008
|
(Decrease)
|
||||||||
|
Lodging
net revenue:
|
|||||||||||||
|
Owned
hotel rooms
|
$
|
11,686
|
$
|
12,968
|
(9.9
|
)
%
|
$
|
43,153
|
$
|
46,806
|
(7.8
|
)
%
|
|
|
Managed
condominium rooms
|
5,164
|
5,771
|
(10.5
|
)
%
|
34,571
|
37,132
|
(6.9
|
)
%
|
|||||
|
Dining
|
8,920
|
10,578
|
(15.7
|
)
%
|
30,195
|
31,763
|
(4.9
|
)
%
|
|||||
|
Transportation
|
1,861
|
--
|
--
|
|
17,975
|
--
|
--
|
||||||
|
Golf
|
6,873
|
7,975
|
(13.8
|
)
%
|
15,000
|
16,224
|
(7.5
|
)
%
|
|||||
|
Other
|
10,438
|
11,031
|
(5.4
|
)
%
|
35,347
|
38,132
|
(7.3
|
)
%
|
|||||
|
Total
Lodging net revenue
|
$
|
44,942
|
$
|
48,323
|
(7.0
|
)
%
|
$
|
176,241
|
$
|
170,057
|
3.6
|
%
|
|
|
Lodging
operating expense
|
|||||||||||||
|
Labor
and labor-related benefits
|
$ |
20,396
|
$ |
21,514
|
(5.2
|
)
%
|
$
|
81,290
|
$
|
75,746
|
7.3
|
%
|
|
|
General
and administrative
|
7,319
|
5,944
|
23.1
|
%
|
27,823
|
26,877
|
3.5
|
%
|
|||||
|
Other
|
19,184
|
18,842
|
1.8
|
%
|
60,369
|
57,209
|
5.5
|
%
|
|||||
|
Total
Lodging operating expense
|
$ |
46,899
|
$ |
46,300
|
1.3
|
%
|
$
|
169,482
|
$
|
159,832
|
6.0
|
%
|
|
|
Total
Lodging Reported EBITDA
|
$ |
(1,957
|
)
|
$ |
2,023
|
(196.7
|
)
%
|
$
|
6,759
|
$
|
10,225
|
(33.9
|
)
%
|
|
Owned
hotel statistics:
|
|||||||||||||
|
ADR
|
$
|
164.82
|
$
|
165.36
|
(0.3
|
)
%
|
$
|
183.59
|
$
|
184.42
|
(0.5
|
)
%
|
|
|
RevPAR
|
$
|
87.63
|
$
|
103.08
|
(15.0
|
)
%
|
$
|
107.06
|
$
|
118.97
|
(10.0
|
)
%
|
|
|
Managed
condominium statistics:
|
|||||||||||||
|
ADR
|
$
|
166.04
|
$
|
172.52
|
(3.8
|
)
%
|
$
|
273.38
|
$
|
280.37
|
(2.5
|
)
%
|
|
|
RevPAR
|
$
|
37.84
|
$
|
46.76
|
(19.1
|
)
%
|
$
|
84.50
|
$
|
98.68
|
(14.4
|
)
%
|
|
|
Owned
hotel and managed condominium statistics (combined):
|
|||||||||||||
|
ADR
|
$
|
165.26
|
$
|
167.99
|
(1.6
|
)
%
|
$
|
225.12
|
$
|
230.17
|
(2.2
|
)
%
|
|
|
RevPAR
|
$
|
59.48
|
$
|
70.86
|
(16.1
|
)
%
|
$
|
93.10
|
$
|
106.43
|
(12.5
|
)
%
|
|
|
Key
Balance Sheet Data
|
|||||||
|
(In
thousands)
|
|||||||
|
(Unaudited)
|
|||||||
|
As
of July 31,
|
|||||||
|
2009
|
2008
|
||||||
|
Real
estate held for sale and investment
|
$
|
311,485
|
$
|
249,305
|
|||
|
Total
stockholders' equity
|
$
|
765,295
|
$
|
728,756
|
|||
|
Long-term
debt
|
$
|
491,608
|
$
|
541,350
|
|||
|
Long-term
debt due within one year
|
352
|
15,355
|
|||||
|
Total
debt
|
491,960
|
556,705
|
|||||
|
Less:
cash and cash equivalents
|
69,298
|
162,345
|
|||||
|
Net
debt
|
$
|
422,662
|
$
|
394,360
|
|||
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, 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 Total Reported EBITDA to net income (loss) for the
Company calculated in accordance with GAAP for the three and twelve months ended
July 31, 2009 and 2008.
|
(In
thousands)
|
||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||||
|
July
31,
|
July
31,
|
|||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||
|
Mountain
Reported EBITDA
|
$
|
(33,415
|
)
|
$
|
(29,075
|
)
|
$
|
164,389
|
$
|
220,561
|
||||||||
|
Lodging
Reported EBITDA
|
(1,957
|
)
|
2,023
|
6,759
|
10,225
|
|||||||||||||
|
Resort
Reported EBITDA*
|
(35,372
|
)
|
(27,052
|
)
|
171,148
|
230,786
|
||||||||||||
|
Real
Estate Reported EBITDA
|
3,780
|
38,133
|
44,080
|
45,937
|
||||||||||||||
|
Total
Reported EBITDA
|
(31,592
|
)
|
11,081
|
215,228
|
276,723
|
|||||||||||||
|
Loss
on disposal of fixed assets, net
|
(256
|
)
|
(1,167
|
)
|
(1,064
|
)
|
(1,534
|
)
|
||||||||||
|
Depreciation
and amortization
|
(27,115
|
)
|
(23,941
|
)
|
(107,213
|
)
|
(93,794
|
)
|
||||||||||
|
Investment
income, net
|
365
|
589
|
1,793
|
8,285
|
||||||||||||||
|
Interest
expense, net
|
(5,816
|
)
|
(7,047
|
)
|
(27,548
|
)
|
(30,667
|
)
|
||||||||||
|
Contract
dispute credit, net
|
--
|
--
|
--
|
11,920
|
||||||||||||||
|
Minority
interest in loss (income) of consolidated subsidiaries,
net
|
2,588
|
2,548
|
(1,602
|
)
|
(4,920
|
)
|
||||||||||||
|
(Loss)
income before benefit (provision) for income taxes
|
(61,826
|
)
|
(17,937
|
)
|
79,594
|
166,013
|
||||||||||||
|
Benefit
(provision) for income taxes
|
23,096
|
6,814
|
(30,644
|
)
|
(63,086
|
)
|
||||||||||||
|
Net
(loss) income
|
$
|
(38,730
|
)
|
$
|
(11,123
|
)
|
$
|
48,950
|
$
|
102,927
|
||||||||
|
*
Resort represents the sum of Mountain and
Lodging
|
||||||||||||||||||
Presented
below 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 July 31,
2009.
|
(In
thousands)
|
||||||
|
As
of July 31, 2009
|
||||||
|
Long-term
debt
|
$
|
491,608
|
||||
|
Long-term
debt due within one year
|
352
|
|||||
|
Total
debt
|
491,960
|
|||||
|
Less:
cash and cash equivalents
|
69,298
|
|||||
|
Net
debt
|
$
|
422,662
|
||||
|
Net
debt to Total Reported EBITDA
|
1.96
|
x
|
||||