Vail Resorts (MTN) Q1 Earnings Miss Estimates, Decline Y/Y
Vail Resorts, Inc. MTN reported dismal first-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line declined from the prior-year quarter’s figure. The company’s performance was impacted by cost inflation, lower demand for summer mountain travel and weather-related challenges.
Earnings & Revenues
In the quarter under review, the company reported a loss of $4.60 per share, wider than the Zacks Consensus Estimate of a loss of $4.54. In the prior-year quarter, the company reported a loss of $3.40 per share.
Quarterly revenues amounted to $258.6 million, missing the consensus mark of $272 million. The top line fell 7.5% on a year-over-year basis.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
The Mountain segment generated revenues of $172.5 million in the quarter under review, down 14.5% year over year. The figure compares with our projection of $193.9 million. During the quarter, revenues from dining fell 7% year over year to $18.1 million. Revenues from Ski school declined 19.6% year over year to $7.2 million. Revenues from lift and retail/rental declined 23.8% and 17%, respectively, on a year-over-year basis.
The segment’s reported EBITDA amounted to ($139.5) million in the fiscal first quarter compared with ($92.1) million reported in the prior-year quarter. Operating expenses in the Mountain segment totaled $312.8 million, up 6.3% year over year.
Total lodging’s net revenues in the reported quarter were $81.8 million, up 5.4% year over year. The upside was primarily driven by positive weather conditions in the Grand Teton region and increases in owned hotel room revenues and ancillary product sales. The figure compares with our projection of $78.4 million. During the quarter, the segment’s EBITDA came in at ($0.2) million compared with ($4.4) million reported in the year-ago quarter.
During the quarter, operating expenses in the Lodging segment inched up 0.1% year over year to $82.1 million.
Operating Results
Vail Resorts reported EBITDA of ($134.4) million in the quarter compared with ($97.8) million reported in the prior-year quarter. Operating expenses totaled $400.1 million compared with $377.6 million reported in the prior-year quarter.
Balance Sheet
Cash and cash equivalents as of Oct 31, 2023, totaled $728.9 million compared with $1,180.9 million reported in the year-ago period.
Net long-term debt amounted to $2.73 billion at the end of the quarter compared with $2.77 billion at the end of the prior-year quarter.
As of Oct 31, 2023, the company had total cash and revolver availability of approximately $1.4 billion. This includes $729 million cash in hand, $420 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $214 million of revolver availability under the Whistler Credit Agreement.
Other Updates
The company reported solid season pass sales for the upcoming 2023/24 North American ski season. Season-to-date (through Dec 4, 2023), the company stated that Pass product sales increased approximately 4% in units and nearly 11% in sales dollars compared with the prior-year period’s (through Dec 5, 2022) levels. The company reported strong unit growth concerning its renewing pass holders in destination markets. Also, it stated benefits from an 8% price increase (relative to the 2022/23 season).
The company anticipates having approximately 2.4 million guests committed to 41 North American, Australian and European resorts through non-refundable advance commitment products. This paves a path for revenue yields exceeding $900 million and contributions of more than 73% of total skier visits (excluding complimentary visits).
Fiscal 2024 Guidance
In the fiscal 2024, net income (attributable to Vail Resorts) is estimated in the range of $316-$394 million. Resorts reported EBITDA is expected in the range of $912-$968 million.
Zacks Rank and Stocks to Consider
Currently, Vail Resorts carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector include:
Royal Caribbean Cruises Ltd. RCL sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.3% on average. Shares of RCL have surged 109.3% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 57.7% and 187.9%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. LYV sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 37.5% on average. Shares of LYV have increased 17.9% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 28.6% and 132.8%, respectively, from the year-ago period’s levels.
Cedar Fair, L.P. FUN carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 50.3% on average. Shares of FUN have declined 2.2% in the past year.
The Zacks Consensus Estimate for FUN’s 2024 sales and EPS indicates a rise of 3.8% and 25%, respectively, from the year-ago period’s levels.
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Vail Resorts, Inc. (MTN) : Free Stock Analysis Report
