Vail Resorts (MTN) Q4 Earnings & Revenues Miss Estimates
Vail Resorts, Inc. MTN reported fourth-quarter fiscal 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased on a year-over-year while the bottom line declined from the prior year quarter’s figure.
The company reported solid season pass sales for the upcoming 2023/24 North American ski season. Season-to-date (through Sep 22, 2023), the company stated that Pass product sales had increased approximately 7% in units and approximately 11% in sales dollars compared with the prior-year period’s (through Sep 23, 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).
Earnings & Revenues
In the quarter under review, the company reported a loss of $3.35 per share, wider than the Zacks Consensus Estimate of a loss of $3.24. In the prior-year quarter, the company had reported a loss of $2.70 per share.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote
Quarterly revenues amounted to $269.8 million, missing the consensus mark of $282 million. The top line rose 1% on a year-over-year basis.
During the quarter, the company’s North American summer operations were impacted by lower demand for destination mountain travel and weather-related operational disruptions.
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
The Mountain segment generated revenues of $181 million in the quarter under review, down 2% year over year. The figure compares to our projection of $207.7 million. During the quarter, revenues from dining rose 2.2% year over year to $17.7 million. Revenues from Ski school increased 6.1% year over year to $9.8 million. Revenues from lift and retail/rental declined 1.5% and 12.9%, respectively on a year-over-year basis.
The segment’s reported EBITDA amounted to ($91.1) million in the fiscal fourth quarter compared with ($62.4) million reported in the prior-year quarter. Operating expenses in the Mountain segment totaled $272.2 million, up 10.2% year over year.
Lodging’s net revenues in the reported quarter were $88.7 million, up 7.8% year over year, primarily due to increases in dining and ancillary revenue. The figure compares to our projection of $70.7 million. During the quarter, the segment’s EBITDA came in at $4.3 million against ($0.7) million reported in the year-ago quarter.
During the quarter, operating expenses in the Lodging segment increased 1.7% year over year to $84.4 million.
Operating Results
Vail Resorts reported EBITDA of ($88) million in the quarter compared with ($64.2) million reported in the prior-year quarter. Operating expenses totaled $357.9 million compared with $331.3 million reported in the prior-year quarter.
Balance Sheet
Cash and cash equivalents as of Jul 31, 2023, totaled $563 million compared with $1,107.4 million reported in the year-ago period.
Net long-term debt amounted to $2,750.7 million at the end of the quarter, compared with $2,670.3 million at the end of the prior-year quarter.
As of Jul 31, 2023, the company had total cash and revolver availability of approximately $1.2 billion. This includes $563 million cash in hand, $421 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $225 million of revolver availability under the Whistler Credit Agreement.
Fiscal 2023 Highlights
Fiscal 2023 adjusted earnings per share (EPS) came in at $6.74 compared with $8.55 reported in the previous year.
Total revenues in fiscal 2023 came in at $2,372.2 million compared with $2,116.5 million in fiscal 2022.
Adjusted EBITDA in fiscal 2023 totaled $833.1 million compared with $832.9 million reported in the prior fiscal year.
Fiscal 2024 Guidance
In fiscal 2024, net income (attributable to Vail Resorts) is estimated in the range of $316-$394 million. Total EBITDA is expected in the range of $910-$972 million. Resorts reported EBITDA is expected in the range of $912-$968 million. Resorts reported EBITDA margin is anticipated to be nearly 31%, using the midpoint of the guidance.
Zacks Rank and Stocks to Consider
Currently, Vail Resorts carries a Zacks Rank #3 (Hold).
Some other top-ranked stocks in the Zacks Consumer Discretionary sector include:
Live Nation Entertainment, Inc. LYV sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have increased 11.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a rise of 21% and 57.8%, respectively, from the year-ago period’s levels.
Hilton Worldwide Holdings Inc. HLT currently carries a Zacks Rank #2 (Buy). HLT has a trailing four-quarter earnings surprise of 12.5% on average. Shares of the company have gained 26.1% in the past year.
The Zacks Consensus Estimate for HLT’s 2023 sales and EPS indicates a rise of 14.8% and 23.7%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited OSW currently carries a Zacks Rank #2. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have increased 24.8% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
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