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Vail Resorts (MTN) Q2 Earnings & Revenues Beat Estimates

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Vail Resorts, Inc. MTN reported second-quarter fiscal 2021 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. However, both the metrics declined year over year. Following the results, the company’s shares gained 9.7% in after-hour trading session on Mar 11.

In the quarter under review, the company reported earnings of $3.62 per share, against the Zacks Consensus Estimate of a loss of $2.19. In the prior-year quarter, the company had reported earnings of $5.04 per share.

Quarterly revenues were $684.7 million, which surpassed the consensus mark of $623 million. However, the top line fell 26% on a year-over-year basis. The downside was due to dismal performance by the Mountain segment and Lodging segments.

The company’s RevPAR declined 38.4% in the quarter, while ADR increased 2.9%.

Segment Results

The Mountain segment reported revenues of $641.5 million in the quarter under review, down 24.1% year over year due to limitation and restrictions on its North American operations on account of the COVID-19 outbreak. The downside can also be attributed to 11.1% decline in lift revenues. Moreover, Ski school, dining and retail/rental revenues decreased 45.1%, 58.0%, and 32.6%, respectively.

The segment’s EBITDA amounted to $283.6 million, down 24% from the prior-year quarter. Meanwhile, operating expenses at the Mountain segment totaled $186.1 million, down 29% year over year. EBITDA was impacted by coronavirus pandemic, marginally overshadowed by disciplined cost management.

Lodging net revenues in the reported quarter were $42.9 million, down 45.7% year over year primarily due to operational restrictions of North American lodging properties as a result of the pandemic. Under the segment, EBITDA declined to ($7.5) million from the prior-year quarter figure of $5.3 million.

Meanwhile, operating expenses at the Lodging segment contracted 31.5% year over year to $50.4 million.

Vail Resorts, Inc. Price, Consensus and EPS Surprise

Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts, Inc. Price, Consensus and EPS Surprise

Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote

Operating Results

Vail Resorts reported adjusted EBITDA of $274.8 million in the quarter under review compared with $373 million in the prior-year quarter. The decline was primarily due to negative impact of the coronavirus pandemic.

Resort operating expenses totaled $409.5 million, down 25% year over year. Meanwhile, total segmental operating expenses contracted 25% year over year to $411 million.

Balance Sheet

Cash and cash equivalents as Jan 31, 2021, totaled $1,301 million, up from $126.8 million in the year-ago period.

Net long-term debt amounted to $2,768 million at the end of the quarter, up from $1,817.1 million at the end of the prior-year quarter.

As of Feb 28, 2021, the company had total cash and revolver availability of approximately $2 billion. This includes $1.4 billion of cash in hand, $419 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $179 million of revolver availability under the Whistler Credit Agreement.

Fiscal 2021 Guidance

The company provided results for nine months ended Apr 30, 2021. The company anticipates net income in the range of $204 million to $247 million. Resort reported EBITDA is expected between $560 million and $600 million.

Vail Resorts, which shares space with Camping World Holdings, Inc. CWH, Cedar Fair, L.P. FUN and Bluegreen Vacations Holding Corporation BVH, carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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