UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of the Securities Exchange Act of
1934
Date
of
report (Date of earliest event reported): March 12, 2007
Vail
Resorts, Inc.
(Exact
Name of Registrant as Specified in Charter)
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Delaware
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1-9614
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51-0291762
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(State
or Other Jurisdiction of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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390
Interlocken Crescent, Suite 1000,
Broomfield,
Colorado
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80021
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant's
telephone number, including area code:
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(303)
404-1800
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(Former
Name or Former Address, if Changed Since Last
Report)
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
2.02. Results of Operations and Financial Condition.
On
March
12, 2007, Vail Resorts, Inc. issued a press release announcing its results
for
the three and six months ended January 31, 2007. A copy of the press release
is
being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The
information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall
not be deemed to be “filed” for the purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, and will not be incorporated by reference
into
any registration statement filed under the Securities Act of 1933, as amended,
unless specifically identified therein as being incorporated therein by
reference.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
A
list of
exhibits furnished herewith is contained on the Exhibit Index which immediately
precedes such exhibits and is incorporated herein by reference.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Vail
Resorts, Inc.
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Date:
March 12, 2007
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By:
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/s/
Jeffrey W. Jones
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Jeffrey
W. Jones
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Senior
Executive Vice President and
Chief
Financial Officer
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EXHIBIT
INDEX
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Exhibit
No.
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Description
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99.1
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Press
Release, dated March 12, 2007, announcing fiscal 2007 second quarter
results.
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Exhibit
99.1
VAIL
RESORTS
NEWS
RELEASE
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FOR
IMMEDIATE RELEASE
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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 STRONG FISCAL 2007 SECOND QUARTER
RESULTS
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l
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Second
quarter net income of $53.0 million, or $1.35 per diluted share,
a 23%
increase in net income and a 21% increase in earnings per diluted
share
over the prior year second quarter.
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l
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Second
quarter Resort Reported EBITDA of $115.7 million, a 20% increase
over the
prior year second quarter.
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l
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Second
quarter Resort revenue of $304.8 million, a 9.5% increase over
the prior
year second quarter.
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BROOMFIELD,
Colo. - March 12, 2007 - Vail Resorts, Inc. (NYSE: MTN) announced today
financial results for the second quarter of fiscal 2007 ended January 31,
2007.
The
Company uses the term “Reported EBITDA” and “Reported EBITDA excluding
stock-based compensation” when reporting financial results in accordance with
SEC 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.
SECOND
QUARTER PERFORMANCE
Mountain
Segment
Mountain
revenue increased $25.8 million, or 10.5%, in the second quarter of fiscal
2007
to $272.0 million from $246.2 million for the comparable quarter last fiscal
year. Mountain expense increased $9.2 million, or 6.1%, to $159.9 million.
Reported EBITDA for the Mountain segment grew $16.6 million, or 17.1%, to
$113.7
million compared to $97.0 million for the comparable quarter last fiscal
year.
Lodging
Segment
Lodging
revenue increased $0.7 million, or 2.2%, in the second quarter of fiscal
2007 to
$32.8 million from $32.1 million for the comparable quarter last fiscal year.
Lodging expense decreased $2.1 million, or 6.5%, to $30.8 million. For the
second quarter of fiscal 2006, the Lodging segment included revenue of $1.9
million and operating expense of $1.8 million related to Snake River Lodge
&
Spa (“SRL&S”), which was sold by the Company in January 2006; the Company
subsequently obtained a long-term management contract for the hotel. Excluding
the impact of the sale of SRL&S, Lodging revenue increased $2.6 million, or
8.5%, while expenses remained relatively flat. Reported EBITDA for the Lodging
segment grew $2.9 million, or 350.2%, to $2.0 million compared to a loss
of $0.8
million for the comparable quarter last fiscal year.
Resort
- Combination of Mountain and Lodging Segments
Resort
revenue, the combination of Mountain and Lodging revenue, increased $26.5
million, or 9.5%, in the second quarter of fiscal 2007 to $304.8 million
from
$278.3 million for the comparable quarter last fiscal year. Resort expense
increased $7.1 million, or 3.9%, to $190.6 million. Second fiscal quarter
Resort
Reported EBITDA increased $19.5 million to $115.7 million, a 20.3% increase
over
the comparable quarter last fiscal year. Resort Reported EBITDA excluding
stock-based compensation increased $19.4 million, or 19.8%, to $117.0
million.
Real
Estate Segment
Real
Estate revenue increased $46.5 million, or 479.0%, in the second quarter
of
fiscal 2007 to $56.2 million from $9.7 million for the comparable quarter
last
fiscal year. Real Estate expense increased 689.5% to $50.4 million. Real
Estate
Reported EBITDA for the quarter ended January 31, 2007, increased $2.5 million,
or 73.5%, to $5.8 million compared to $3.4 million in the comparable quarter
last fiscal year.
Total
Performance
Total
revenue increased $73.0 million, or 25.4%, in the second quarter of fiscal
2007
to $361.0 million from $288.0 million for the comparable quarter last fiscal
year. Income from operations for the quarter increased $20.7 million, or
26.9%,
to $97.8 million. The Company recorded total pre-tax stock-based compensation
expense of $1.8 million in the three months ended January 31, 2007, which
was
relatively flat compared to the three months ended January 31,
2006.
The
Company reported second quarter fiscal 2007 net income of $53.0 million,
or
$1.35 per diluted share, compared to net income of $43.0 million, or $1.12
per
diluted share, for the same quarter last fiscal year. Excluding stock-based
compensation expense, the Company’s net income for the second quarter of fiscal
2007 would have been $54.1 million, or $1.38 per diluted share compared to
net
income of $44.1 million excluding stock-based compensation, or $1.15 per
diluted
share, for the same quarter last fiscal year.
SIX
MONTH PERFORMANCE
Mountain
Segment
Mountain
revenue grew $31.7 million, or 11.1%, for the six months ended January 31,
2007
to $318.2 million from $286.5 million for the comparable period last fiscal
year. Mountain expense increased $16.4 million, or 7.4%, to $239.4 million.
Reported EBITDA for the Mountain segment in the first half of fiscal 2007
grew
$15.3 million, or 23.2%, to $81.2 million compared to $65.9 million for the
comparable period last fiscal year.
Lodging
Segment
Lodging
revenue decreased by $0.6 million, or 0.8%, for
the
six months ended January 31, 2007
to $73.2
million from $73.8 million for the comparable period last fiscal year. Lodging
expense decreased $3.4 million, or 4.9%, to $67.1 million. For the first
half of
fiscal 2006, the Lodging segment included revenue of $5.2 million and operating
expense of $4.3 million related to SRL&S. Excluding the impact of the sale
of SRL&S, Lodging revenue increased $4.6 million, or 6.7%, and expenses
increased by $0.8 million, or 1.3%. Additionally, the Company recognized
$2.4
million of revenue in the first half of fiscal 2007 associated with a
termination fee pursuant to the terms of the management agreement at The
Lodge
at Rancho Mirage, in conjunction with the closing of the hotel as part of
a
redevelopment plan by the current hotel owner. Reported EBITDA for the Lodging
segment in the first half of fiscal 2007 grew $2.8 million, or 85.1%, to
$6.1
million compared to $3.3 million in the comparable period last fiscal year.
Resort
- Combination of Mountain and Lodging Segments
Resort
revenue, the combination of Mountain and Lodging revenue, increased $31.1
million, or 8.6%, for
the
six months ended January 31, 2007
to
$391.4 million from $360.3 million for the comparable period last fiscal
year.
Resort expense increased $13.0 million, or 4.4%, to $306.5 million. Resort
Reported EBITDA in the first half of fiscal 2007 increased $18.1 million
to
$87.3 million, a 26.2% increase over the comparable period last fiscal year.
Resort Reported EBITDA excluding stock-based compensation increased $18.0
million, or 25.0%, to $89.9 million.
Real
Estate Segment
Real
Estate revenue increased $70.0 million, or 534.5%, for the six months ended
January 31, 2007 to $83.1 million from $13.1 million for the comparable period
last fiscal year. Real Estate expense increased 514.4% to $76.5 million.
Real
Estate Reported EBITDA in the first half of fiscal 2007 increased $5.9 million,
or 783.9%, to $6.6 million compared to $0.8 million in the comparable period
last fiscal year.
Total
Performance
Total
revenue increased $101.1 million, or 27.1%, for the six months ended January
31,
2007 to $474.5 million from $373.4 million for the comparable period last
fiscal
year. Income from operations for the six months increased $19.8 million,
or
72.8%, to $46.9 million. The Company recorded total pre-tax stock-based
compensation expense of $3.7 million in the six months ended January 31,
2007,
as compared to $3.6 million, for the six months ended January 31,
2006.
The
Company reported first half fiscal 2007 net income of $17.2 million, or $0.44
per diluted share, compared to net income of $8.7 million, or $0.23 per diluted
share, for the same period last fiscal year. Excluding stock-based compensation
expense, the Company’s net income for the first half of fiscal 2007 would have
been $19.5 million, or $0.50 per diluted share compared to net income of
$10.9
million excluding stock-based compensation, or $0.29 per diluted share, for
the
same period last fiscal year.
Business
Commentary and Outlook
Robert
Katz, Chief Executive Officer, commented, “We are very pleased with our strong
performance in the second quarter, which clearly exceeded our expectations.
The
second quarter, which essentially contains the first half of the 2006/2007
ski
season, reflected a total Mountain segment revenue increase of 10.5% against
record prior year comparables, with lift revenues up 13.4% and the ancillary
businesses up commensurately. The lift revenue increase was helped by strong
season pass sales, up 20.0% over the prior year (of which we recognized 52.4%
in
the second quarter, with the remainder to be recognized in the third quarter).
Excluding skier visits from season passes, our skier visitation was up 4.8%
at
our Colorado resorts, reflecting strong destination guest visitation, partially
offset by a weather impacted decrease of 6.2% in total skier visits at our
Heavenly resort. Effective Ticket Price was up 7.0% excluding the season
pass
revenue, reflecting our continuing ability to increase absolute prices combined
with the favorable mix impact resulting from the increase in destination
guest
visitation. The increase in destination visitors at our mountain resorts
favorably impacted our lodging operations as well, with revenue per available
room, or RevPAR, up 16.7% for the quarter on a “same store” basis at our owned
lodging properties and condominiums we manage around our mountain resorts.
The
increased revenues in our Resort business flowed through at a very high rate
to
the bottom line, resulting in a 20.3% increase in Resort Reported EBITDA.
It is
certainly a testament to our incredible employee group that we continue to
build
upon our record success in prior years, while still delivering an exceptional
experience to our guests.”
Turning
to our real estate business, Katz commented, “We have numerous exciting
initiatives underway on the real estate side as well, which should also
contribute to further improved Resort operating performance down the road.
As
part
of Vail’s Front Door project, I am pleased to report that we
have
now entered into purchase and sale agreements for all 13 of The Lodge at
Vail
Chalets at an average price per square foot of $2,488. Additionally, marketing
of the Vail Mountain Club, an exclusive slope-side private club steps from
the
Vista Bahn Express lift, has continued. We
have
sold 88 full memberships, which include parking privileges, and an additional
77
social memberships, which exclude parking.
The full
memberships we have received to date carry a membership
initiation fee deposit of $250,000 and the social memberships we have received
to date carry a membership initiation fee deposit of $100,000. We
currently have total sales commitments representing $29.6 million of total
proceeds when paid in full. Given the current status of the Front Door project,
we are increasing our estimate on
expected income, before provision for income taxes and before allocated
corporate or Vail Resorts Development Company overhead from the sale of The
Lodge at Vail Chalets to a range of $65 million to $75 million. Similarly,
we
are reducing our estimate for investment in resort depreciable assets of
the
Front Door project to $25 million to $40 million, net of estimated cash proceeds
from the club initiation fee deposits.”
Commenting
on Breckenridge, Katz said “We opened the new Breckenridge gondola on December
31, 2006, truly connecting the Town and the Mountain and setting the stage
for
the development of Peaks 7 and 8. We
began
selling the Crystal Peak Lodge condominiums in December 2006, and currently
have
41 of the 46 units already under contract at an average sales price per square
foot of $958, almost double what the average sales price per square foot
on the
similarly finished Mountain Thunder townhomes in Breckenridge sold for just
two
years ago. In
addition, we closed on a land sale in the second quarter for a parcel of
land at
Peak 7 to a third party developer to build a fractional ownership property.
We
currently expect that income, before provision for income taxes and before
allocated corporate or Vail Resorts Development Company overhead, for the
Peak 7
projects will range from $8.0 million to $13.0 million.”
Katz
commented, “I am pleased to announce that we have launched The Ritz-Carlton
Residences, Vail project with 71, two to six bedroom condominiums currently
priced at an average of approximately $1,775 per square foot. We began
marketing this project in February 2007, and have already executed reservation
agreements on 54 units representing $185.4 million in gross sales
proceeds. We expect to convert those reservations to contracts in April
2007. In addition, in December 2006, the Company renegotiated its April 2005
license agreement related to this project with The Ritz-Carlton Hotel Company,
L.L.C. (“RCHC”). In exchange for a reduction in the license fee to be paid to
RCHC, the Company concurrently entered into a purchase and sale agreement
which
provided for The Ritz-Carlton Development Company, Inc.’s (“RCDC”) acquisition
of an incremental 45 units in the project for a total purchase price of $110.7
million; RCDC will, in turn, market and sell these 45 units as Ritz-Carlton
Club
fractional ownership units, creating additional hot beds for Vail
Mountain. We are very excited about bringing one of the premier fractional
programs to Vail. We
currently anticipate that income, before provision for income taxes and before
allocated corporate or Vail Resorts Development Company overhead, for The
Ritz-Carlton project will range from $80 million to $90 million.”
Katz
added, “Also
in
the second quarter, we closed on the remaining Gore Creek Place units in
LionsHead. Additionally, construction continues on The Arrabelle at Vail
Square
in LionsHead. Construction cost estimates have increased on the project,
caused
by, among other things, a potential scheduling delay in the closing on at
least
the condominium portion of The Arrabelle project. At this time, we are reducing
our estimate on expected income, before provision for income taxes and before
allocated corporate or Vail Resorts Development Company overhead, for The
Arrabelle and Gore Creek projects to $50 million to $60 million, of which
approximately $20 million has been recognized through the second quarter
of
fiscal 2007 on the Gore Creek project, which was as expected. Additionally,
given the current programming for The Arrabelle mountain club, we believe
proceeds from the sale of club memberships will be higher than originally
anticipated, and therefore are reducing our estimate of investment in resort
depreciable assets, net of club proceeds, to a current estimated range of
$50
million to $70 million, which includes an estimate of $95 million to $105
million for the resort depreciable assets and an estimate of $35 million
to $45
million of cash proceeds from the club initiation fee deposits. All of the
aforementioned estimates related to our real estate projects are based upon
our
most recent cost estimates based upon current plans and how the costs
relate to both the real estate and resort projects. We have also seen increased
construction costs on our development project in Jackson, WY, some of which
were
accrued in the most recent quarter. It is disappointing that we have not
been
able to fully overcome the challenges presented by the coordination and
implementation of the design at the beginning of both The Arrabelle and Jackson
developments. At the same time, I am confident that the processes we have
in
place for our most recent projects, including Front Door, Crystal Peak and
The
Ritz-Carlton Residences will allow us to better complete these efforts within
budget and on schedule.”
Finally
on real estate, Katz added, “On March 5, 2007, we announced our plans for a new
project to be called “Ever Vail.” The $1 billion project, which remains subject
to required approvals, will transform the 9.5-acre site, currently known
as West
LionsHead, into one of the largest LEED-certified projects for resort use
in
North America and one of the first projects for consideration in LEED’s new
“Neighborhood Development” certification program. Ever Vail will consist of
residences, a hotel, offices, retail shops and restaurants, mountain operations
facilities, a public parking garage, a new gondola and related skier portal
and
a public park. The Company anticipates a total of 600,000 to 700,000 saleable
square feet and beginning real estate sales on the project in 2009. The name
Ever Vail was thoughtfully chosen to reflect the project’s guiding principle of
sustainability, that is, pairing Vail Mountain’s enduring preeminent position in
the resort industry with an ongoing commitment to minimize the Company’s
footprint on the land.”
On
our
lodging business, Katz commented, “We recently announced the addition of the new
56 room and suite hotel, Eleven Biscayne Hotel & Spa in Miami, opening
in early 2009 as part of the RockResorts branded properties. RockResorts
will
manage the hotel while providing technical consulting services during the
development and pre-opening phases of the project. In addition, RockResorts
will
manage the new Rum Cay Resort in the Bahamas and will assist in the marketing
of
whole and fractional ownership units within the resort and provide technical
advisory services in the design and construction of the resort. However,
we have
been notified by the owners of The Equinox Resort & Spa in Vermont, which we
manage under the RockResorts brand, that the owner of this property has decided
to sell The Equinox hotel as part of a divestiture plan, at which time the
management agreement with RockResorts will be terminated (currently anticipated
to be in the Company’s third fiscal quarter ending April 30, 2007), which will
result in Vail Resorts receiving a termination fee, but loss of future
management fees.”
Katz
commented on the Cheeca award, “We were recently awarded $8.5 million in damages
against Cheeca Holdings LLC, the owner of the former RockResorts’ property at
Cheeca Lodge & Spa in Islamorada, Florida, which will not be reflected in
our financial results until it is received. The arbitrator’s decision
found that the owner of Cheeca Lodge & Spa had wrongfully terminated the
hotel management contract and that RockResorts did not breach the contract.
We
will
also seek recovery of our attorneys’ fees and costs in the last stage of
proceedings scheduled to occur within the next 90 days. The total arbitration
award is binding and non-appealable. We are extremely pleased with the
arbitrator’s decision in the case; it
vindicates our belief that RockResorts performed its management obligations
to
Cheeca in good faith and in accordance with the management contract. RockResorts
takes its contractual responsibilities seriously and is committed to delivering
quality management services and financial performance to our ownership groups
and exceptional vacation experiences to our lodging guests.”
Katz
concluded, “With the performance that we have achieved so far this fiscal year,
we would like to take this opportunity to update the fiscal 2007 guidance
that
we previously provided in our fiscal 2006 year-end earnings release and
reiterated during our first quarter earnings call. Based on our current
estimates, we expect full year Resort Reported EBITDA, the combination of
our
Mountain and Lodging segments, to range from $211 million to $219 million,
and
Resort Reported EBITDA excluding stock-based compensation expense to range
from
$216 million to $224 million. The Resort guidance includes a range for Mountain
Reported EBITDA of $193 million to $201 million, and Mountain Reported EBITDA
excluding stock-based compensation expense of $197 million to $205 million,
while we expect Lodging Reported EBITDA to range from $16 million to $21
million
and Lodging Reported EBITDA excluding stock-based compensation expense to
range
from $17 million to $22 million. Conversely, we are reducing our guidance
for
Real Estate Reported EBITDA, given the additional unanticipated costs we
incurred for our Jackson Hole Golf & Tennis Club development and timing of
closings on certain transactions, among other things. As a result, we now
expect
Real Estate Reported EBITDA to range from zero to negative $5 million and
Real
Estate Reported EBITDA excluding stock-based compensation expense to range
from
$2 million to negative $3 million. Finally, based on our current estimates,
we
expect net income to range from $55 million to $63 million and net income
excluding stock-based compensation expense to range from $60 million to $68
million. Also, in the second quarter, we continued our previously announced
share repurchase program, resulting in the repurchase of 167,700 shares at
an
average price of $44.76 for a total amount of $7.5 million. Since inception
of
this program in fiscal 2006, the Company has repurchased 673,500 shares at
an
average price of $38.38 for a total amount of approximately $25.8 million,
with
2,326,500 shares remaining available under the existing repurchase
authorization.”
Resort
Capital Expenditure Announcement
The
Company also announced its calendar 2007 Resort capital expenditure plans,
exclusive of resort depreciable assets associated with the Company’s various
real estate projects. The Company expects to spend approximately $90 million
to
$95 million of resort capital expenditures in calendar 2007, including $38
million to $40 million for capital expenditures necessary to maintain the
appearance and level of service at the Company’s five ski resorts and throughout
its hotels. Highlights of these “maintenance” capital expenditures include
snow-cat replacements, snowmaking equipment, uniforms for all five mountains,
lodging furniture fixture & equipment and rental equipment fleet capital.
Resort discretionary capital is expected to be in the range of $52 million
and
$55 million with expected projects including a new Beaver Creek children’s ski
school gondola and a related ski school building at the top of the new gondola,
replacement and realignment of Chair 10 and Chair 14 at Vail Mountain with
high-speed chairlifts, a new high-speed chairlift at Heavenly, an expanded
spa
at The Keystone Lodge and upgrades to the central reservations, marketing
database and e-commerce booking systems, among other projects.
Commenting
on the capital expenditure announcement, Katz said, “Our core mission is to
provide guests exceptional experiences at our extraordinary resorts. With
our
strong financial performance to date, our capital program for this year is
designed to further enhance and differentiate the experience at our Company’s
resorts and solidify our position as the premier mountain resort operator
in
North America.”
CONFERENCE
CALL
For
further discussion of the contents of this press release, please listen to
our
live webcast today at 11:00 am EDT, available on www.vailresorts.com. In
order
to access the non-GAAP financial information that will be referenced on the
call, click on the Regulation G Compliance section under the Investor Relations
tab at www.vailresorts.com.
Vail
Resorts, Inc. is the premier mountain resort operator in North America. The
Company’s subsidiaries operate the mountain resorts of Vail, Beaver Creek,
Breckenridge and Keystone in Colorado, Heavenly Resort in 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. The Vail Resorts corporate website is
www.vailresorts.com and the consumer websites are www.snow.com and
www.rockresorts.com. Vail Resorts, Inc. is a publicly held company traded
on the
New York Stock Exchange (NYSE: MTN).
***
Statements
in this press release, other than statements of historical information, are
forward looking statements that are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those projected. Readers are cautioned
not to place undue reliance on these forward-looking statements which speak
only
as of the date hereof. Such risks and uncertainties include but are not limited
to: economic downturns; terrorist acts upon the United States; threat of
or
actual war; unfavorable weather conditions; our ability to obtain financing
on
terms acceptable to us to finance our real estate investments, capital
expenditures and growth strategy; our ability to continue to grow our resort
and
real estate operations; competition in our Mountain and Lodging businesses;
termination of existing hotel management contracts; adverse changes in the
real
estate markets; failure to commence or complete the planned real estate
development projects; failure to achieve the anticipated short and long-term
financial benefits from the planned real estate development projects; shortages
or rising costs in construction materials; 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. 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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|||||||||
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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
|
|||||||||
|
January
31,
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|||||||||
|
2007
|
2006
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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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272,026
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$
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246,228
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|||||
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Lodging
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32,796
|
32,079
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|||||||
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Real
estate
|
56,216
|
9,709
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|||||||
|
Total
net revenue
|
361,038
|
288,016
|
|||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
159,871
|
150,666
|
|||||||
|
Lodging
|
30,757
|
32,894
|
|||||||
|
Real
estate
|
50,391
|
6,383
|
|||||||
|
Total
segment operating expense
|
241,019
|
189,943
|
|||||||
|
Other
operating (expense) income:
|
|||||||||
|
Depreciation
and amortization
|
(21,759
|
)
|
(21,431
|
)
|
|||||
|
Relocation
and separation charges
|
(500
|
)
|
--
|
||||||
|
Mold
remediation credit
|
--
|
852
|
|||||||
|
Loss
on disposal of fixed assets, net
|
(10
|
)
|
(486
|
)
|
|||||
|
Income
from operations
|
97,750
|
77,008
|
|||||||
|
Mountain
equity investment income, net
|
1,496
|
1,455
|
|||||||
|
Real
estate equity investment income
|
--
|
31
|
|||||||
|
Investment
income
|
2,417
|
1,046
|
|||||||
|
Interest
expense, net
|
(7,911
|
)
|
(9,502
|
)
|
|||||
|
Gain
on sale of businesses, net
|
--
|
4,625
|
|||||||
|
Contract
dispute charges
|
(672
|
)
|
--
|
||||||
|
Gain
on put options
|
--
|
1,026
|
|||||||
|
Other
income, net
|
--
|
51
|
|||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(6,152
|
)
|
(5,231
|
)
|
|||||
|
Income
before provision for income taxes
|
86,928
|
70,509
|
|||||||
|
Provision
for income taxes
|
(33,902
|
)
|
(27,498
|
)
|
|||||
|
Net
income
|
$
|
53,026
|
$
|
43,011
|
|||||
|
Per
share amounts:
|
|||||||||
|
Basic
net income per share
|
$
|
1.37
|
$
|
1.15
|
|||||
|
Diluted
net income per share
|
$
|
1.35
|
$
|
1.12
|
|||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
113,651
|
$
|
97,017
|
|||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
$
|
114,708
|
$
|
98,016
|
|||||
|
Lodging
Reported EBITDA
|
$
|
2,039
|
$
|
(815
|
)
|
||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
$
|
2,260
|
$
|
(401
|
)
|
||||
|
Resort
Reported EBITDA
|
$
|
115,690
|
$
|
96,202
|
|||||
|
Resort
Reported EBITDA excluding stock-based compensation
|
$
|
116,968
|
$
|
97,615
|
|||||
|
Real
Estate Reported EBITDA
|
$
|
5,825
|
$
|
3,357
|
|||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
$
|
6,311
|
$
|
3,758
|
|||||
|
Vail
Resorts, Inc.
|
|||||||||
|
Consolidated
Condensed Statements of Operations
|
|||||||||
|
(In
thousands, except per share amounts)
|
|||||||||
|
(Unaudited)
|
|||||||||
|
Six
Months Ended
|
|||||||||
|
January
31,
|
|||||||||
|
2007
|
2006
|
||||||||
|
Net
revenue:
|
|||||||||
|
Mountain
|
$
|
318,189
|
$
|
286,505
|
|||||
|
Lodging
|
73,204
|
73,829
|
|||||||
|
Real
estate
|
83,138
|
13,102
|
|||||||
|
Total
net revenue
|
474,531
|
|
373,436
|
||||||
|
Segment
operating expense:
|
|||||||||
|
Mountain
|
239,358
|
222,957
|
|||||||
|
Lodging
|
67,106
|
70,535
|
|||||||
|
Real
estate
|
76,509
|
12,452
|
|||||||
|
Total
segment operating expense
|
382,973
|
305,944
|
|||||||
|
Other
operating (expense) income:
|
|||||||||
|
Depreciation
and amortization
|
(43,344
|
)
|
(40,354
|
)
|
|||||
|
Relocation
and separation charges
|
(1,235
|
)
|
--
|
||||||
|
Asset
impairment charge
|
--
|
(136
|
)
|
||||||
|
Mold
remediation credit
|
--
|
852
|
|||||||
|
Loss
on disposal of fixed assets, net
|
(91
|
)
|
(726
|
)
|
|||||
|
Income
from operations
|
46,888
|
27,128
|
|
||||||
|
Mountain
equity investment income, net
|
2,331
|
2,305
|
|||||||
|
Real
estate equity investment income
|
--
|
100
|
|||||||
|
Investment
income
|
4,481
|
2,234
|
|||||||
|
Interest
expense, net
|
(16,847
|
)
|
(18,939
|
)
|
|||||
|
Gain
on sale of businesses, net
|
--
|
4,625
|
|||||||
|
Contract
dispute charges
|
(4,276
|
)
|
--
|
||||||
|
Gain
on put options
|
--
|
34
|
|||||||
|
Other
income, net
|
--
|
51
|
|||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,363
|
)
|
(3,305
|
)
|
|||||
|
Income
before provision for income taxes
|
28,214
|
14,233
|
|||||||
|
Provision
for income taxes
|
(11,004
|
)
|
(5,551
|
)
|
|||||
|
Net
income
|
$
|
17,210
|
$
|
8,682
|
|||||
|
Per
share amounts:
|
|||||||||
|
Basic
net income per share
|
$
|
0.44
|
$
|
0.23
|
|||||
|
Diluted
net income per share
|
$
|
0.44
|
$
|
0.23
|
|||||
|
Other
Data:
|
|||||||||
|
Mountain
Reported EBITDA
|
$
|
81,162
|
$
|
65,853
|
|||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
$
|
83,239
|
$
|
67,807
|
|||||
|
Lodging
Reported EBITDA
|
$
|
6,098
|
$
|
3,294
|
|||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
$
|
6,652
|
$
|
4,115
|
|||||
|
Resort
Reported EBITDA
|
$
|
87,260
|
$
|
69,147
|
|||||
|
Resort
Reported EBITDA excluding stock-based compensation
|
$
|
89,891
|
$
|
71,922
|
|||||
|
Real
Estate Reported EBITDA
|
$
|
6,629
|
$
|
750
|
|||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
$
|
7,723
|
$
|
1,531
|
|||||
|
Vail
Resorts, Inc.
|
||||||||||||||||||||||||||
|
Resort
Revenue by Business Line and Skier Visits
|
||||||||||||||||||||||||||
|
(In
thousands)
|
||||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||
|
Three
Months Ended
|
Percentage
|
Six
Months Ended
|
Percentage
|
|||||||||||||||||||||||
|
January
31,
|
Increase
|
January
31,
|
Increase
|
|||||||||||||||||||||||
|
2007
|
2006
|
(Decrease)
|
2007
|
2006
|
(Decrease)
|
|||||||||||||||||||||
|
Business
Line
|
||||||||||||||||||||||||||
|
Lift
tickets
|
$
|
128,617
|
$
|
113,468
|
13.4
|
%
|
$
|
128,617
|
$
|
113,468
|
13.4
|
%
|
||||||||||||||
|
Ski
school
|
34,198
|
30,752
|
11.2
|
%
|
34,198
|
30,752
|
11.2
|
%
|
||||||||||||||||||
|
Dining
|
22,468
|
21,266
|
5.7
|
%
|
26,354
|
24,772
|
6.4
|
%
|
||||||||||||||||||
|
Retail/rental
|
63,291
|
56,913
|
11.2
|
%
|
87,809
|
78,618
|
11.7
|
%
|
||||||||||||||||||
|
Other
|
23,452
|
23,829
|
(1.6
|
)
|
%
|
41,211
|
38,895
|
6.0
|
%
|
|||||||||||||||||
|
Total
Mountain Revenue
|
$
|
272,026
|
$
|
246,228
|
10.5
|
%
|
$
|
318,189
|
$
|
286,505
|
11.1
|
%
|
||||||||||||||
|
Total
Lodging Revenue
|
$
|
32,796
|
$
|
32,079
|
2.2
|
%
|
$
|
73,204
|
$
|
73,829
|
(0.8
|
)
|
%
|
|||||||||||||
|
Total
Resort Revenue
|
$
|
304,822
|
$
|
278,307
|
9.5
|
%
|
$
|
391,393
|
$
|
360,334
|
8.6
|
%
|
||||||||||||||
|
Three
Months Ended
|
Percentage
|
Six
Months Ended
|
Percentage
|
|||||||||||||||||||||||
|
January
31,
|
Increase
|
January
31,
|
Increase
|
|||||||||||||||||||||||
|
2007
|
2006
|
(Decrease)
|
2007
|
2006
|
(Decrease)
|
|||||||||||||||||||||
|
Skier
Visits
|
||||||||||||||||||||||||||
|
Vail
|
725
|
753
|
(3.7
|
)
|
%
|
725
|
753
|
(3.7
|
)
|
%
|
||||||||||||||||
|
Breckenridge
|
774
|
755
|
2.5
|
%
|
774
|
755
|
2.5
|
%
|
||||||||||||||||||
|
Keystone
|
598
|
547
|
9.3
|
%
|
598
|
547
|
9.3
|
%
|
||||||||||||||||||
|
Heavenly
|
407
|
434
|
(6.2
|
)
|
%
|
407
|
434
|
(6.2
|
)
|
%
|
||||||||||||||||
|
Beaver
Creek
|
408
|
386
|
5.7
|
%
|
408
|
386
|
5.7
|
%
|
||||||||||||||||||
|
Total
Skier Visits
|
2,912
|
2,875
|
1.3
|
%
|
2,912
|
2,875
|
1.3
|
%
|
||||||||||||||||||
|
Effective
Ticket Price
|
$
|
44.17
|
$
|
39.47
|
11.9
|
%
|
$
|
44.17
|
$
|
39.47
|
11.9
|
%
|
||||||||||||||
|
Key
Balance Sheet Data
|
|||||||
|
(In
thousands)
|
|||||||
|
(Unaudited)
|
|||||||
|
As
of January 31,
|
|||||||
|
2007
|
2006
|
||||||
|
Real
estate held for sale and investment
|
$
|
293,219
|
$
|
221,048
|
|||
|
Total
stockholders' equity
|
658,421
|
586,638
|
|||||
|
Long-term
debt
|
551,866
|
517,638
|
|||||
|
Long-term
debt due within one year
|
440
|
5,673
|
|||||
|
Total
debt
|
552,306
|
523,311
|
|||||
|
Less:
cash and cash equivalents
|
254,866
|
175,541
|
|||||
|
Net
debt
|
$
|
297,440
|
$
|
347,770
|
|||
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.
Reported EBITDA, Reported EBITDA excluding stock-based compensation and Net
Debt
do not purport to represent cash flows generated by operating, investing
or
financing activities or other financial statement data and should not be
considered in isolation or as a substitute for measures of financial performance
or liquidity prepared in accordance with GAAP. 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 determining management
bonuses.
Presented
below is a reconciliation of Reported EBITDA and Reported EBITDA excluding
stock-based compensation to net income for the Company calculated in accordance
with GAAP for the three and six months ended January 31, 2007 and 2006.
|
(In
thousands)
|
||||||||||
|
Three
Months Ended
|
||||||||||
|
January
31,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2007
|
2006
|
|||||||||
|
Mountain
revenue, net
|
$
|
272,026
|
$
|
246,228
|
||||||
|
Mountain
operating expense excluding stock-based compensation
|
(158,814
|
)
|
(149,667
|
)
|
||||||
|
Mountain
equity investment income, net
|
1,496
|
1,455
|
||||||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
114,708
|
98,016
|
||||||||
|
Mountain
stock-based compensation
|
(1,057
|
)
|
(999
|
)
|
||||||
|
Mountain
Reported EBITDA
|
113,651
|
97,017
|
||||||||
|
Lodging
revenue, net
|
32,796
|
32,079
|
||||||||
|
Lodging
operating expense excluding stock-based compensation
|
(30,536
|
)
|
(32,480
|
)
|
||||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
2,260
|
(401
|
)
|
|||||||
|
Lodging
stock-based compensation
|
(221
|
)
|
(414
|
)
|
||||||
|
Lodging
Reported EBITDA
|
2,039
|
(815
|
)
|
|||||||
|
Resort
Reported EBITDA*
|
115,690
|
96,202
|
||||||||
|
Resort
Reported EBITDA excluding stock-based compensation*
|
116,968
|
97,615
|
||||||||
|
Real
Estate revenue, net
|
56,216
|
9,709
|
||||||||
|
Real
Estate operating expense excluding stock-based
compensation
|
(49,905
|
)
|
(5,982
|
)
|
||||||
|
Real
Estate equity investment income
|
--
|
31
|
||||||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
|
6,311
|
3,758
|
|||||||
|
Real
Estate stock-based compensation
|
(486
|
)
|
(401
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
5,825
|
3,357
|
||||||||
|
Total
Reported EBITDA
|
121,515
|
99,559
|
||||||||
|
Depreciation
and amortization
|
(21,759
|
)
|
(21,431
|
)
|
||||||
|
Relocation
and separation charges
|
(500
|
)
|
--
|
|||||||
|
Mold
remediation credit
|
--
|
852
|
||||||||
|
Loss
on disposal of fixed assets, net
|
(10
|
)
|
(486
|
)
|
||||||
|
Investment
income
|
2,417
|
1,046
|
||||||||
|
Interest
expense, net
|
(7,911
|
)
|
(9,502
|
)
|
||||||
|
Gain
on sale of businesses, net
|
--
|
4,625
|
||||||||
|
Contract
dispute charges
|
(672
|
)
|
--
|
|||||||
|
Gain
on put options
|
--
|
1,026
|
||||||||
|
Other
income, net
|
--
|
51
|
||||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(6,152
|
)
|
(5,231
|
)
|
||||||
|
Income
before provision for income taxes
|
86,928
|
70,509
|
||||||||
|
Provision
for income taxes
|
(33,902
|
)
|
(27,498
|
)
|
||||||
|
Net
income
|
$
|
53,026
|
$
|
43,011
|
||||||
*
Resort
represents the sum of Mountain and Lodging
|
(In
thousands)
|
||||||||||
|
Six
Months Ended
|
||||||||||
|
January
31,
|
||||||||||
|
(Unaudited)
|
||||||||||
|
2007
|
2006
|
|||||||||
|
Mountain
revenue, net
|
$
|
318,189
|
$
|
286,505
|
||||||
|
Mountain
operating expense excluding stock-based compensation
|
(237,281
|
)
|
(221,003
|
)
|
||||||
|
Mountain
equity investment income, net
|
2,331
|
2,305
|
||||||||
|
Mountain
Reported EBITDA excluding stock-based compensation
|
83,239
|
67,807
|
||||||||
|
Mountain
stock-based compensation
|
(2,077
|
)
|
(1,954
|
)
|
||||||
|
Mountain
Reported EBITDA
|
81,162
|
65,853
|
||||||||
|
Lodging
revenue, net
|
73,204
|
73,829
|
||||||||
|
Lodging
operating expense excluding stock-based compensation
|
(66,552
|
)
|
(69,714
|
)
|
||||||
|
Lodging
Reported EBITDA excluding stock-based compensation
|
6,652
|
4,115
|
||||||||
|
Lodging
stock-based compensation
|
(554
|
)
|
(821
|
)
|
||||||
|
Lodging
Reported EBITDA
|
6,098
|
3,294
|
||||||||
|
Resort
Reported EBITDA*
|
87,260
|
69,147
|
||||||||
|
Resort
Reported EBITDA excluding stock-based compensation*
|
89,891
|
71,922
|
||||||||
|
Real
Estate revenue, net
|
83,138
|
13,102
|
||||||||
|
Real
Estate operating expense excluding stock-based
compensation
|
(75,415
|
)
|
(11,671
|
)
|
||||||
|
Real
Estate equity investment income
|
--
|
100
|
||||||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
|
7,723
|
1,531
|
|||||||
|
Real
Estate stock-based compensation
|
(1,094
|
)
|
(781
|
)
|
||||||
|
Real
Estate Reported EBITDA
|
6,629
|
750
|
||||||||
|
Total
Reported EBITDA
|
93,889
|
69,897
|
||||||||
|
Depreciation
and amortization
|
(43,344
|
)
|
(40,354
|
)
|
||||||
|
Relocation
and separation charges
|
(1,235
|
)
|
--
|
|||||||
|
Asset
impairment charge
|
--
|
(136
|
)
|
|||||||
|
Mold
remediation credit
|
--
|
852
|
||||||||
|
Loss
on disposal of fixed assets, net
|
(91
|
)
|
(726
|
)
|
||||||
|
Investment
income
|
4,481
|
2,234
|
||||||||
|
Interest
expense, net
|
(16,847
|
)
|
(18,939
|
)
|
||||||
|
Gain
on sale of businesses, net
|
--
|
4,625
|
||||||||
|
Contract
dispute charges
|
(4,276
|
)
|
--
|
|||||||
|
Gain
on put options
|
--
|
34
|
||||||||
|
Other
income, net
|
--
|
51
|
||||||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(4,363
|
)
|
(3,305
|
)
|
||||||
|
Income
before provision for income taxes
|
28,214
|
14,233
|
||||||||
|
Provision
for income taxes
|
(11,004
|
)
|
(5,551
|
)
|
||||||
|
Net
income
|
$
|
17,210
|
$
|
8,682
|
||||||
*
Resort
represents the sum of Mountain and Lodging
Presented
below is a reconciliation of net income excluding stock-based compensation,
tax
effected, to net income of the Company calculated in accordance with GAAP
for
the three and six months ended January 31, 2007 and 2006. Also presented
is a
reconciliation of net income per diluted share excluding stock-based
compensation, tax effected, to net income per diluted share of the Company
calculated in accordance with GAAP for the three and six months ended January
31, 2007 and 2006. The Company has presented these non-GAAP measures as it
believes that this presentation provides a more comparable measure of the
Company's historical results from ongoing operations for the three and six
months ended January 31, 2007 and January 31, 2006 to prior
periods.
|
Three
Months
|
|||||||||
|
Ended
January 31,
|
|||||||||
|
(Unaudited)
|
|||||||||
|
(In
thousands, except per share amounts)
|
2007
|
2006
|
|||||||
|
Net
income excluding stock-based compensation
|
$
|
54,121
|
$
|
44,144
|
|||||
|
Stock-based
compensation expense, before benefit from income taxes
|
(1,764
|
)
|
(1,814
|
)
|
|||||
|
Adjustment
for benefit from income taxes
|
669
|
681
|
|||||||
|
Net
income
|
$
|
53,026
|
$
|
43,011
|
|||||
|
Diluted
net income per share excluding stock-based compensation
|
$
|
1.38
|
$
|
1.15
|
|||||
|
Stock-based
compensation expense per diluted common share, before
benefit
|
|||||||||
|
from
income taxes
|
(0.04
|
)
|
(0.05
|
)
|
|||||
|
Adjustment
for benefit from income taxes, per diluted common share
|
0.02
|
0.02
|
|||||||
|
Diluted
net income per share
|
$
|
1.35
|
$
|
1.12
|
|||||
|
Six
Months
|
|||||||||
|
Ended
January 31,
|
|||||||||
|
(Unaudited)
|
|||||||||
|
(In
thousands, except per share amounts)
|
2007
|
2006
|
|||||||
|
Net
income excluding stock-based compensation
|
$
|
19,522
|
$
|
10,902
|
|||||
|
Stock-based
compensation expense, before benefit from income taxes
|
(3,725
|
)
|
(3,556
|
)
|
|||||
|
Adjustment
for benefit from income taxes
|
1,413
|
1,336
|
|||||||
|
Net
income
|
$
|
17,210
|
$
|
8,682
|
|||||
|
Diluted
net income per share excluding stock-based compensation
|
$
|
0.50
|
$
|
0.29
|
|||||
|
Stock-based
compensation expense per diluted common share, before
benefit
|
|||||||||
|
from
income taxes
|
(0.10
|
)
|
(0.09
|
)
|
|||||
|
Adjustment
for benefit from income taxes, per diluted common share
|
0.04
|
0.03
|
|||||||
|
Diluted
net income per share
|
$
|
0.44
|
$
|
0.23
|
|||||
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, 2007 is presented below.
|
(In
thousands)
|
|||||||
|
For
the Year Ending
|
|||||||
|
July
31, 2007
|
|||||||
|
Low
End Range
|
High
End Range
|
||||||
|
Resort
Reported EBITDA excluding stock-based compensation(1)
|
$
|
216,000
|
$
|
224,000
|
|||
|
Resort
segment stock-based compensation
|
(5,000
|
)
|
(5,000
|
)
|
|||
|
Resort
Reported EBITDA(1)
|
211,000
|
219,000
|
|||||
|
Real
Estate Reported EBITDA excluding stock-based compensation
|
(3,000
|
)
|
2,000
|
||||
|
Real
Estate segment stock-based compensation
|
(2,000
|
)
|
(2,000
|
)
|
|||
|
Real
Estate Reported EBITDA
|
(5,000
|
)
|
--
|
||||
|
Total
Reported EBITDA
|
206,000
|
219,000
|
|||||
|
Depreciation
and amortization
|
(85,500
|
)
|
(85,500
|
)
|
|||
|
Relocation
and separation charges
|
(1,500
|
)
|
(1,400
|
)
|
|||
|
Loss
on disposal of fixed assets, net
|
(550
|
)
|
(550
|
)
|
|||
|
Investment
income
|
11,000
|
11,200
|
|||||
|
Interest
expense, net
|
(34,000
|
)
|
(34,000
|
)
|
|||
|
Loss
on sale of business, net
|
(800
|
)
|
(800
|
)
|
|||
|
Contract
dispute credit, net(2)
|
4,300
|
4,300
|
|||||
|
Gain
on put options, net
|
700
|
700
|
|||||
|
Minority
interest in income of consolidated subsidiaries, net
|
(8,800
|
)
|
(9,100
|
)
|
|||
|
Income
before provision for income taxes
|
90,850
|
103,850
|
|||||
|
Provision
for income taxes
|
(35,400
|
)
|
(40,500
|
)
|
|||
|
Net
income
|
$
|
55,450
|
$
|
63,350
|
|||
| (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.
|
| (2) |
Assumes
receipt of $8.5 million judgment on or before July 31, 2007, as part
of
the damage award won against Cheeca Holdings
LLC.
|
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, 2007 is presented below.
|
(In
thousands)
|
|||||||
|
For
the Year Ending
|
|||||||
|
July
31, 2007
|
|||||||
|
Low
End Range
|
High
End Range
|
||||||
|
Net
income excluding stock-based compensation
|
$
|
59,720
|
$
|
67,620
|
|||
|
Stock-based
compensation expense, before benefit from income taxes
|
(7,000
|
)
|
(7,000
|
)
|
|||
|
Adjustment
for benefit from income taxes
|
2,730
|
2,730
|
|||||
|
Net
income
|
$
|
55,450
|
$
|
63,350
|
|||