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Vail Resorts Inc. Message Board

  • bluecheese4u bluecheese4u Dec 4, 2012 9:41 AM Flag

    Vail Resorts Reports Fiscal 2013 First Quarter Results and Early Season Indicators

    Vail Resorts Reports Fiscal 2013 First Quarter Results and Early Season Indicators

    BROOMFIELD, Colo., Dec. 4, 2012 /PRNewswire/ -- Vail Resorts, Inc. (NYSE: MTN) today reported results for the first quarter of fiscal 2013 ended October 31, 2012 as well as certain early season indicators.

    Highlights
    •Resort Reported EBITDA loss, which includes the Company's Mountain and Lodging segments, was $54.5 million for the first fiscal quarter of 2013, reflecting a decline of 8.6%, or $4.3 million, compared with the same period in the prior year. Excluding first quarter net seasonal losses related to Kirkwood, Skiinfo and Flagg Ranch, which were acquired after the first quarter in the prior year, Resort Reported EBITDA declined 5.1%, which was slightly favorable to our expectations.
    •Net Loss Attributable to Vail Resorts, Inc. was $60.6 million for the first fiscal quarter of 2013 compared to a net loss of $55.7 million in the same period in the prior year, a decline of 8.7%.
    •Sales of season passes (including 4-Packs) through December 2, 2012 for the upcoming 2012/2013 ski season were up approximately 5% in units and approximately 8% in sales dollars compared to the same period in the prior year, adjusted as if Kirkwood were owned in both periods.
    •In the first quarter of fiscal 2013, we closed on four Ritz-Carlton Residence units, with Real Estate net revenue of $11.9 million. Net Real Estate Cash Flow was $5.5 million for the first fiscal quarter of 2013.

    Commenting on the Company's fiscal 2013 first quarter results, Rob Katz, Chief Executive Officer said, "Our first fiscal quarter is historically a loss quarter since our mountain resorts are not open for winter ski operations during the period. The quarter is driven primarily by our late summer mountain activities, dining, retail and lodging operations, and administrative expenses for our year-round employees. In the first quarter of fiscal 2013, we observed improving trends in our summer business in both our Mountain and Lodging operations from improved summer visitation in our mountain resorts driving increased summer activities revenue, higher lodging RevPar and improved dining revenues. Our Lodging business also benefitted from increased group business at Keystone, as well as the addition of a new national park property, Flagg Ranch, partially offset by lower results at our Grand Teton Lodging Company ("GTLC") summer national park business, which was impacted by the effects of wildfires in the area. For the quarter, our Resort Reported EBITDA loss, excluding Kirkwood, Skiinfo and Flagg Ranch, declined 5.1%, which was slightly favorable to our expectations, reflecting the increase in revenues from our Mountain and Lodging summer operations, which was more than offset by normal expense increases across our business as well as lower retail sales compared to the record pre-ski season sales of the prior year."

    Turning to Real Estate, Katz said, "In the first quarter of fiscal 2013, we closed on four condominiums at The Ritz-Carlton Residences, Vail and are pleased with the continued momentum of sales at this luxury project. Although Real Estate Reported EBITDA was a negative $3.7 million in this year's first quarter, given that the vast majority of costs included in cost of sales were incurred in prior years, Net Real Estate Cash Flow was a positive $5.5 million in the first quarter of fiscal 2013."

    Katz continued "Our balance sheet remains in a very strong position. We ended the quarter with $44.0 million of cash on hand, and our Net Debt was 2.4 times trailing twelve months Total Reported EBITDA. We had no borrowings under the revolver component of our senior credit facility and we have virtually no principal payments on debt due until 2019."

    Katz added "I am pleased to announce that our Board of Directors has declared a quarterly cash dividend on Vail Resorts' common stock of $0.1875 per share, payable on December 27, 2012 to shareholders of record on December 19, 2012."

    Regarding the upcoming ski season, Katz said, "Our 2012/2013 ski season is just underway and we are looking forward to a memorable season. This year marks the 50th anniversary of Vail Mountain and we are looking forward to events all year long that celebrate this milestone. To commemorate the occasion, we recently christened our new state of the art, high-speed 10 passenger gondola at Vail, named Gondola One, as a tribute to Vail's original gondola that was the first gondola in Colorado when it opened in 1962. The new gondola is the first of its kind in North America and is the fastest gondola of its type in the world. Additionally, the gondola has cabins that include heated and cushioned seats and Wi-Fi access for our guests."

    Moving to the early ski season indicators, Katz said, "All seven of our mountain resorts are open and ramping up operations for the upcoming holiday season. Season pass (including 4-Pack) sales are up approximately 5% in units and 8% in sales dollars through December 2, 2012 compared with the similar period in the prior year and including Kirkwood in both periods. We are very pleased with the results of our pass sales effort this year, particularly given the challenging weather last season and the record performance we had in passes last year. We had anticipated the year-over-year percentage increase in season pass sales to come down from our last announcement in September. The total growth of the program is slightly below our expectations, as we believe that the amount of sales that we pulled forward to earlier selling periods was somewhat larger than expected and that weather was still a concern for those purchasers who delayed their purchasing decisions. Sales in Tahoe and international markets continued to show the most strength. We expect the final results of the program will be generally consistent with these percentage increases as final sales conclude in the coming weeks. As a reminder, revenue from season pass sales is recognized over the course of the second and third fiscal quarters. Lodging bookings for the winter season are slightly down to this time last year, with strength at Keystone, which has shown strong early bookings driven by our newly introduced "Kids Ski Free" program as well as strong results at our Doubletree at Breckenridge property that was branded at the end of calendar 2011. Based on historical averages, less than 50% of the bookings for the winter season have been made by this time."

    Operating Results

    A complete Management's Discussion and Analysis of Financial Condition and Results of Operations can be found in the Company's Form 10-Q for the first fiscal quarter of 2013 ended October 31, 2012 filed today with the Securities and Exchange Commission. The following are segment highlights:

    Mountain Segment
    •Mountain segment net revenue for the first fiscal quarter 2013 was $51.9 million versus $49.7 million in the first fiscal quarter of 2012, an increase of 4.5%. Excluding Kirkwood and Skiinfo (acquired after the first fiscal quarter of 2012), net revenues increased $1.1 million or 2.3%.
    •First quarter Mountain Reported EBITDA declined from a loss of $48.5 million in fiscal 2012 to a loss of $55.2 million in fiscal 2013. The Kirkwood and Skiinfo acquisitions generated $2.3 million in negative EBITDA in the current year first fiscal quarter.
    •Mountain Reported EBITDA includes $2.7 million of stock-based compensation expense for the first quarter of fiscal 2013 compared to $2.6 million in the first quarter of fiscal 2012.

    Strong summer visitation supported revenue growth in summer activities and dining operations, including group and wedding business. Dining revenues increased $0.7 million, or 12.9% in the first quarter of fiscal 2013 compared to the same period in the prior year, with the addition of Kirkwood contributing $0.4 million to total dining revenues. Retail/Rental revenues decreased by 0.9% compared to the same period in the prior year primarily due to lower sales at pre-ski season sales events compared to the prior year's record sales from these events. Mountain operating expenses increased $9.0 million, or 9.1%, for the three months ended October 31, 2012 compared to the three months ended October 31, 2011 primarily driven by $3.4 million in expenses related to Kirkwood and Skiinfo, $2.7 million in normal wage adjustments and increased staffing levels to support higher volumes in summer operations and new retail stores, and $1.1 million in increased general and administrative expenses that include timing of marketing campaigns and a shift in allocated corporate expenses from the Real Estate segment to the Mountain segment, partially offset by lower employee medical costs due to continued benefits from a new plan design.

    Lodging Segment
    •Lodging segment net revenue was $52.5 million for the first quarter of fiscal 2013 compared to $53.6 million for the first quarter of the prior fiscal year, a 2.0% decrease. Excluding payroll cost reimbursement related to managed hotel properties, Lodging net revenues increased $3.5 million or 7.6%.
    •For the first quarter of fiscal 2013, revenue per available room ("RevPAR") increased 7.8%, and average daily rate ("ADR") decreased 2.6% at the Company's owned hotels and managed condominiums compared to the same period in the prior year.
    •Lodging Reported EBITDA was $0.7 million for the first quarter of fiscal 2013 compared to a loss of $1.7 million for the same period in the prior year, an increase of 141.1%. The Flagg Ranch acquisition generated $0.6 million in EBITDA in the current fiscal year first quarter.
    •Lodging Reported EBITDA includes $0.4 million of stock-based compensation expense for the first quarter of fiscal 2013 compared to $0.6 million in the first quarter of fiscal 2012.

    Revenue from owned hotel rooms increased $1.7 million, or 13.8%, for the three months ended October 31, 2012 compared to the three months ended October 31, 2011, primarily driven by $1.0 million in incremental room revenue from Flagg Ranch (an NPS concessionaire contract was awarded in November 2011) and an increase in group business primarily at our Keystone resort, partially offset by a decrease in GTLC transient revenue due to adverse conditions caused by late summer wild fires. Dining revenues in the first quarter of fiscal 2013 were up $1.1 million, or 11.0% over the first fiscal quarter of the prior year, also primarily due to the addition of Flagg Ranch and increased group business at our Keystone resort. Increases in operating expenses were partially offset by lower overhead and labor costs associated with the previously announced RockResorts reorganization plan. Excluding reimbursed payroll costs, operating expenses increased $1.1 million, or 2.2% in the first quarter of fiscal 2013 compared to the same period in the prior fiscal year.

    Resort — Combination of Mountain and Lodging Segments
    •Resort net revenue was $104.4 million for the first quarter of fiscal 2013 compared to $103.3 million in the first quarter of the prior fiscal year, a 1.1% increase. Resort Revenue increased 2.7% excluding payroll cost reimbursement related to managed hotel properties in both periods, and excluding the first quarter of fiscal 2013 revenues related to Kirkwood, Skiinfo and Flagg Ranch.
    •Resort Reported EBITDA was a loss of $54.5 million for the first quarter of fiscal 2013 compared to a loss of $50.2 million in the same period in the prior year. Excluding Kirkwood, Skiinfo and Flagg Ranch, Resort Reported EBITDA declined 5.1%.

    Real Estate Segment
    •Real Estate segment net revenue was $11.9 million for the first quarter of fiscal 2013 compared to $13.1 million in the same period in the prior year.
    •Net Real Estate Cash Flow (a non-GAAP measure defined as Real Estate Reported EBITDA, plus non-cash real estate cost of sales, plus non-cash stock-based compensation expense, plus change in real estate deposits less investment in real estate) was a positive $5.5 million for the first quarter of fiscal 2013.
    •Real Estate Reported EBITDA was a negative $3.7 million the first quarter of fiscal 2013 compared to a negative $4.7 million in the same period in the prior fiscal year, a 22.2% improvement.
    •Real Estate Reported EBITDA includes $0.4 million of stock-based compensation expense for the first quarter of fiscal 2013 compared to $0.9 million in the first quarter of fiscal 2012.

    In the first quarter of fiscal 2013, we closed on four condominium units at The Ritz-Carlton Residences, Vail ($11.6 million of revenue with an average selling price per unit of $2.9 million and an average price per square foot of $1,165).

    Total Performance
    •Total net revenue in the first quarter of fiscal 2013 was $116.4 million, roughly flat compared to the same quarter in the prior year.
    •Net loss attributable to Vail Resorts, Inc. was $60.6 million, or a loss of $1.70 per diluted share, for the first quarter of fiscal 2013 compared to net loss attributable to Vail Resorts, Inc. of $55.7 million, or a loss of $1.54 per diluted share, in the first quarter of the prior year.

    Outlook

    Commenting on fiscal 2013 guidance, Katz continued, "In September, we issued guidance of 27-32% growth in Resort Reported EBITDA. Based on some of the most recent booking trends we are currently seeing, we believe that it will be more difficult to achieve that guidance than we anticipated in September. We will know more about the season after the holidays and intend to address our fiscal 2013 guidance when we release our ski season metrics in mid-January."

    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,

    investorsDOTvailresortsDOTcom/releasedetail.cfm?ReleaseID=724709

 
MTN
87.86-0.47(-0.53%)Sep 22 4:07 PMEDT

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