Vail Resorts Reports Fiscal 2023 Third Quarter Results and Provides Early Season Pass Sales Results

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08 Jun, 2023, 16:05 ET

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BROOMFIELD, Colo., June 8, 2023 /PRNewswire/ -- Vail Resorts, Inc. (NYSE: MTN) today reported results for the third quarter of fiscal 2023 ended April 30, 2023, early season pass sales results, updated fiscal 2023 guidance and completed $400 million in share repurchases during the quarter.

Highlights

Commenting on the Company's fiscal 2023 third quarter results, Kirsten Lynch, Chief Executive Officer, said, "We are pleased with our overall results for the quarter and for the 2022/2023 North American ski season, with strong growth in visitation and spending versus the prior year. After the challenges experienced in the second quarter of fiscal 2023 driven by weather disruptions in Tahoe and across our Midwest, Mid-Atlantic and Northeast resorts (collectively "Eastern" U.S. resorts), the results in March and April improved as expected, with strong demand from local and destination guests, driving visitation and resort net revenue above prior year record levels. Favorable conditions enabled an extended season at resorts across Utah, Tahoe, and the Northeastern U.S., while some resorts in the Midwest and Mid-Atlantic regions closed earlier than originally intended due to unseasonably warm weather and lack of terrain.

"Our results throughout the 2022/2023 North American ski season highlight both the stability resulting from the advance commitment from season pass products and our strong operational execution through the season. The winter season included significant weather-related challenges related to the travel disruptions over the peak holiday period, abnormal weather variability across our Eastern U.S. resorts, and significant storm related disruptions at our Tahoe resorts. Despite these weather events, the Company grew visitation, resort net revenue and Resort Reported EBITDA to record levels, supported by the stability created from our advance commitment strategy, and a strong finish to the season with good spring conditions at our resorts in Colorado, Utah, Tahoe and the Northeastern U.S. Our ancillary businesses, including ski school, dining, and retail/rental, experienced strong growth compared to the prior year period, when those businesses were impacted by capacity constraints driven by staffing, and in the case of dining, by operational restrictions associated with COVID-19. Staffing levels enabled our mountain resorts to deliver a strong guest experience resulting in a significant improvement in guest satisfaction scores, which exceeded pre-COVID-19 levels at our destination resorts."

Regarding the outlook for fiscal 2023, Lynch said, "The strong finish to the season produced Resort Reported EBITDA results that were in line with our expectations, and we now expect net income attributable to Vail Resorts, Inc. for fiscal 2023 to be between $251 million and $283 million, and Resort Reported EBITDA for fiscal 2023 to be between $837 million and $853 million."

Lynch continued, "Our balance sheet remains strong and the business continues to generate robust cash flow. We remain focused on returning capital to shareholders and are very pleased to announce that the Company repurchased approximately 1.8 million shares during the quarter at an average price of $225.01 for a total of approximately $400 million and declared a quarterly cash dividend of $2.06 per share of Vail Resorts' common stock that will be payable on July 12, 2023 to shareholders of record as of June 27, 2023."

Operating Results

A more complete discussion of our operating results can be found within the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the Company's Form 10-Q for the third fiscal quarter ended April 30, 2023, which was filed today with the Securities and Exchange Commission. The following are segment highlights:

Mountain Segment

Lodging Segment

Resort - Combination of Mountain and Lodging Segments

Total Performance

Return of Capital

Commenting on capital allocation, Lynch said, "Our balance sheet remains strong. Our total cash and revolver availability as of April 30, 2023 was approximately $1.5 billion, with $896 million of cash on hand, $420 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $208 million of revolver availability under the Whistler Credit Agreement. As of April 30, 2023, our Net Debt was 2.3 times trailing twelve months Total Reported EBITDA. The Company repurchased 1,777,730 shares at an average price of $225.01 for a total of approximately $400.0 million during the quarter, representing 4.4% of the Company's outstanding stock as of the beginning of the third quarter. We have approximately 1.8 million shares remaining under our authorization for share repurchases and remain focused on returning capital to shareholders while always prioritizing the long-term value of our shares. Additionally, the Company declared a quarterly cash dividend on Vail Resorts' common stock of $2.06 per share. The dividend will be payable on July 12, 2023 to shareholders of record as of June 27, 2023. We will continue to be disciplined stewards of our capital and remain committed to prioritizing investments in our guest and employee experience, high return capacity expanding capital projects, strategic acquisition opportunities and returning capital to our shareholders through our quarterly dividend and share repurchase program."

Season Pass Sales

Commenting on the Company's season pass sales for the upcoming 2023/2024 North American ski season, Lynch said, "We are pleased with the results for our season pass sales to date with continued unit growth over the strong pass sales results we saw last spring. Pass product sales through May 30, 2023 for the upcoming 2023/2024 North American ski season increased approximately 6% in units and approximately 11% in sales dollars as compared to the period in the prior year through May 31, 2022. Pass product sales are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.74 between the Canadian dollar and U.S. dollar in both periods for Whistler Blackcomb pass sales."

Lynch continued, "Relative to season to date pass product sales for the 2022/2023 season, the Company achieved strong unit growth among renewing pass holders. The Company successfully grew units across destination, international and local geographies, with the strongest unit growth in destination markets, particularly in the Northeast, and across all major pass product segments, with the strongest product growth in regional unlimited pass products and Epic Day Pass products as lower frequency guests and local Northeast guests continue to be attracted by the strong value proposition of these products. Pass sales dollars are benefiting from the 8% price increase relative to the 2022/2023 season, partially offset by the mix impact from the growth of Epic Day Pass products. While pass results to date have been strong, we still have the majority of our pass selling season ahead of us, and given our efforts to drive more guests to purchase passes in the spring, we expect the full year pass sales growth rate may moderate relative to our spring growth rate. We will provide more information about our pass sales results in our September 2023 earnings release."

Regarding Epic Australia Pass sales, Lynch commented, "We are pleased with ongoing sales of the Epic Australia Pass, which end on June 14, 2023 and are up approximately 16% in units through June 1, 2023, as compared to the comparable period through June 2, 2022. These passes provide advance commitment for this winter in Australia but also provide advance commitment from Australian guests for our North American ski resorts for the 2023/2024 winter season."

Introduction of My Epic Gear

Commenting on the Company's March announcement, Lynch said, "We are pleased to be piloting My Epic Gear at Vail, Beaver Creek, Breckenridge, and Keystone for a limited number of pass holders during the 2023/2024 North American ski season, which will introduce a new membership program that provides the best benefits of gear ownership but with more choice, lower cost and no hassle. My Epic Gear provides its members with the ability to choose the gear they want, for the full season or for the day, from a selection of the most popular and latest ski and snowboard models, and have it delivered to them when and where they want it, guaranteed, with free slopeside pick up and drop off every day. In addition to offering the best skis and snowboards, My Epic Gear will also offer name brand, high-quality ski and snowboard boots with customized insoles and boot fit scanning technology. The entire My Epic Gear membership, from gear selection to boot fit to personalized recommendations to delivery, will be at the members' fingertips through the new My Epic app.

"My Epic Gear will officially launch ahead of the 2024/2025 winter season at Vail, Beaver Creek, Breckenridge, Keystone, Whistler Blackcomb, Park City Mountain, Crested Butte, Heavenly, Northstar, Stowe, Okemo and Mount Snow. Further expansions are expected in future years."

Updated Outlook

The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2023, for Reported EBITDA (after stock-based compensation expense) and reconciles net income attributable to Vail Resorts, Inc. guidance to such Reported EBITDA guidance.

Fiscal 2023 Guidance

(In thousands)

For the Year Ending

July 31, 2023 (6)

Low End

High End

Range

Range

Net income attributable to Vail Resorts, Inc.

$ 251,000

$ 283,000

Net income attributable to noncontrolling interests

21,000

15,000

Net income

272,000

298,000

Provision for income taxes (1)

92,000

100,000

Income before income taxes

364,000

398,000

Depreciation and amortization

270,000

266,000

Interest expense, net

154,000

150,000

Other (2)

47,000

39,000

Total Reported EBITDA

$ 835,000

$ 853,000

Mountain Reported EBITDA (3)

$ 827,000

$ 842,000

Lodging Reported EBITDA (4)

9,000

12,000

Resort Reported EBITDA (5)

837,000

853,000

Real Estate Reported EBITDA

(2,000)

—

Total Reported EBITDA

$ 835,000

$ 853,000

(1) The provision for income taxes may be impacted by excess tax benefits primarily resulting from vesting and exercises of equity awards. Our estimated provision for income taxes does not include the impact, if any, of unknown future exercises of employee equity awards, which could have a material impact given that a significant portion of our awards are in-the-money.

(2) Our guidance includes certain forward looking known changes in the fair value of the contingent consideration based solely on the passage of time and resulting impact on present value. Guidance excludes any forward looking change based upon, among other things, financial projections including long-term growth rates for Park City, which such change may be material. Separately, the intercompany loan associated with the Whistler Blackcomb transaction requires foreign currency remeasurement to Canadian dollars, the functional currency of Whistler Blackcomb. Our guidance excludes any forward looking change related to foreign currency gains or losses on the intercompany loans, which such change may be material.

(3) Mountain Reported EBITDA also includes approximately $21 million of stock-based compensation.

(4) Lodging Reported EBITDA also includes approximately $4 million of stock-based compensation.

(5) The Company provides Reported EBITDA ranges for the Mountain and Lodging segments, as well as for the two combined. The low and high of the expected ranges provided for the Mountain and Lodging segments, while possible, do not sum to the high or low end of the Resort Reported EBITDA range provided because we do not expect or assume that we will hit the low or high end of both ranges.

(6) Guidance estimates are predicated on an exchange rate of $0.75 between the Canadian dollar and U.S. dollar, related to the operations of Whistler Blackcomb in Canada; an exchange rate of $0.67 between the Australian dollar and U.S. dollar, related to the operations of our Australian ski areas; and an exchange rate of $1.10 between the Swiss Franc and U.S. dollar, related to the operations of Andermatt-Sedrun in Switzerland.

Earnings Conference Call

The Company will conduct a conference call today at 5:00 p.m. eastern time to discuss the financial results. The call will be webcast and can be accessed at www.vailresorts.com in the Investor Relations section, or dial (800) 225-9448 (U.S. and Canada) or +1 (203) 518-9708 (international). The conference ID is MTNQ323. A replay of the conference call will be available two hours following the conclusion of the conference call through June 15, 2023, at 8:00 p.m. eastern time. To access the replay, dial (800) 934-2750 (U.S. and Canada) or +1 (402) 220-1142 (international). The conference call will also be archived at www.vailresorts.com.

About Vail Resorts, Inc. (NYSE: MTN)

Vail Resorts is a network of the best destination and close-to-home ski resorts in the world including Vail Mountain, Breckenridge, Park City Mountain, Whistler Blackcomb, Stowe, and 32 additional resorts across North America; Andermatt-Sedrun in Switzerland; and Perisher, Hotham, and Falls Creek in Australia. We are passionate about providing an Experience of a Lifetime to our team members and guests, and our EpicPromise is to reach a zero net operating footprint by 2030, support our employees and communities, and broaden engagement in our sport. Our company owns and/or manages a collection of elegant hotels under the RockResorts brand, a portfolio of vacation rentals, condominiums and branded hotels located in close proximity to our mountain destinations, as well as the Grand Teton Lodge Company in Jackson Hole, Wyo. Vail Resorts Retail operates more than 250 retail and rental locations across North America. Learn more about our company at www.VailResorts.com, or discover our resorts and pass options at www.EpicPass.com.

Forward-Looking Statements

Certain statements discussed in this press release and on the conference call, other than statements of historical information, are forward-looking statements within the meaning of the federal securities laws, including the statements regarding expected fiscal 2023 performance (including the assumptions related thereto), including our expected Resort Reported EBITDA and expected net income; our expectations regarding our liquidity; sales patterns and expectations related to our pass products; our expectations related to the 2023 Australian ski season and the 2023 North American summer season; our expectations regarding our ancillary lines of business; our expectations regarding the My Epic Gear program; the payment of dividends; and our capital plans and expectations related thereto. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include but are not limited to the economy generally and our business and results of operations, including the ultimate amount of refunds that we would be required to refund to our pass product holders for qualifying circumstances under our Epic Coverage program; prolonged weakness in general economic conditions, including adverse effects on the overall travel and leisure related industries; unfavorable weather conditions or the impact of natural disasters; the willingness of our guests to travel due to terrorism, the uncertainty of military conflicts or outbreaks of contagious diseases (such as the COVID-19 pandemic), and the cost and availability of travel options and changing consumer preferences or willingness to travel; risks related to interruptions or disruptions of our information technology systems, data security or cyberattacks; risks related to our reliance on information technology, including our failure to maintain the integrity of our customer or employee data and our ability to adapt to technological developments or industry trends; the seasonality of our business combined with adverse events that may occur during our peak operating periods; competition in our mountain and lodging businesses or with other recreational and leisure activities; risks related to the high fixed cost structure of our business; our ability to fund resort capital expenditures; risks related to a disruption in our water supply that would impact our snowmaking capabilities and operations; our reliance on government permits or approvals for our use of public land or to make operational and capital improvements; risks related to federal, state, local and foreign government laws, rules and regulations; risks related to changes in security and privacy laws and regulations which could increase our operating costs and adversely affect our ability to market our products, properties and services effectively; risks related to our workforce, including increased labor costs; loss of key personnel and our ability to hire and retain a sufficient seasonal workforce; a deterioration in the quality or reputation of our brands, including our ability to protect our intellectual property and the risk of accidents at our mountain resorts; our ability to successfully integrate acquired businesses, including their integration into our internal controls and infrastructure, our ability to successfully navigate new markets, or that acquired businesses may fail to perform in accordance with expectations, including the Seven Springs Resorts and Andermatt-Sedrun; risks associated with international operations; risks associated with the effects of high or prolonged inflation; fluctuations in foreign currency exchange rates where the Company has foreign currency exposure, primarily the Canadian and Australian dollars and the Swiss franc, as compared to the U.S. dollar; changes in tax laws, regulations or interpretations, or adverse determinations by taxing authorities; risks related to our indebtedness and our ability to satisfy our debt service requirements under our outstanding debt including our unsecured senior notes, which could reduce our ability to use our cash flow to fund our operations, capital expenditures, future business opportunities and other purposes; a materially adverse change in our financial condition; adverse consequences of current or future legal claims; changes in accounting judgments and estimates, accounting principles, policies or guidelines; and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2022, which was filed on September 28, 2022.

All forward-looking statements attributable to us or any persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All guidance and forward-looking statements in this press release are made as of the date hereof and we do not undertake any obligation to update any forecast or forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by law.

Statement Concerning Non-GAAP Financial Measures

When reporting financial results, we use the terms Resort Reported EBITDA, Total Reported EBITDA, Resort EBITDA Margin, Net Debt and Net Real Estate Cash Flow, which are not financial measures under accounting principles generally accepted in the United States of America ("GAAP"). Resort Reported EBITDA, Total Reported EBITDA, Resort EBITDA Margin, Net Debt and Net Real Estate Cash Flow should not be considered in isolation or as an alternative to, or substitute for, measures of financial performance or liquidity prepared in accordance with GAAP. In addition, we report segment Reported EBITDA (i.e. Mountain, Lodging and Real Estate), the measure of segment profit or loss required to be disclosed in accordance with GAAP. Accordingly, these measures may not be comparable to similarly-titled measures of other companies. Additionally, with respect to discussion of impacts from currency, the Company calculates the impact by applying current period foreign exchange rates to the prior period results, as the Company believes that comparing financial information using comparable foreign exchange rates is a more objective and useful measure of changes in operating performance.

Reported EBITDA (and its counterpart for each of our segments) has been presented herein as a measure of the Company's performance. The Company believes that Reported EBITDA is an indicative measurement of the Company's operating performance, and is similar to performance metrics generally used by investors to evaluate other companies in the resort and lodging industries. The Company defines Resort EBITDA Margin as Resort Reported EBITDA divided by Resort net revenue. The Company believes Resort EBITDA Margin is an important measurement of operating performance. The Company believes that Net Debt is an important measurement of liquidity as it is an indicator of the Company's ability to obtain additional capital resources for its future cash needs. Additionally, the Company believes Net Real Estate Cash Flow is important as a cash flow indicator for its Real Estate segment. See the tables provided in this release for reconciliations of our measures of segment profitability and non-GAAP financial measures to the most directly comparable GAAP financial measures.

Vail Resorts, Inc.

Consolidated Condensed Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended April 30,

Nine Months Ended April 30,

2023

2022

2023

2022

Net revenue:

Mountain and Lodging services and other

$ 1,054,134

$ 1,020,544

$ 2,166,357

$ 1,912,704

Mountain and Lodging retail and dining

184,142

155,992

445,272

345,448

Resort net revenue

1,238,276

1,176,536

2,611,629

2,258,152

Real Estate

155

129

7,967

624

Total net revenue

1,238,431

1,176,665

2,619,596

2,258,776

Segment operating expense:

Mountain and Lodging operating expense

462,613

417,422

1,212,115

965,483

Mountain and Lodging retail and dining cost of products sold

63,575

57,174

174,091

135,118

General and administrative

88,860

91,764

304,275

260,259

Resort operating expense

615,048

566,360

1,690,481

1,360,860

Real Estate operating expense

1,679

1,609

9,371

4,590

Total segment operating expense

616,727

567,969

1,699,852

1,365,450

Other operating (expense) income:

Depreciation and amortization

(69,097)

(65,655)

(199,700)

(189,214)

Gain on sale of real property

88

189

845

1,151

Change in estimated fair value of contingent consideration

(45,900)

(2,800)

(47,636)

(21,580)

(Loss) gain on disposal of fixed assets and other, net

(6,269)

(51)

(8,055)

16,163

Income from operations

500,526

540,379

665,198

699,846

Mountain equity investment income, net

94

363

482

2,695

Investment income and other, net

7,740

224

17,734

980

Foreign currency loss on intercompany loans

(1,766)

(1,040)

(5,563)

(3,079)

Interest expense, net

(39,139)

(35,132)

(112,811)

(112,043)

Income before provision for income taxes

467,455

504,794

565,040

588,399

Provision for income taxes

(124,289)

(118,211)

(145,315)

(110,407)

Net income

343,166

386,583

419,725

477,992

Net income attributable to noncontrolling interests

(18,160)

(14,033)

(23,011)

(21,383)

Net income attributable to Vail Resorts, Inc.

$ 325,006

$ 372,550

$ 396,714

$ 456,609

Per share amounts:

Basic net income per share attributable to Vail Resorts, Inc.

$ 8.20

$ 9.18

$ 9.90

$ 11.27

Diluted net income per share attributable to Vail Resorts, Inc.

$ 8.18

$ 9.16

$ 9.87

$ 11.20

Cash dividends declared per share

$ 2.06

$ 1.91

$ 5.88

$ 3.67

Weighted average shares outstanding:

Basic

39,620

40,568

40,082

40,518

Diluted

39,724

40,678

40,180

40,784

Vail Resorts, Inc.

Consolidated Condensed Statements of Operations - Other Data

(In thousands)

(Unaudited)

Three Months Ended April 30,

Nine Months Ended April 30,

2023

2022

2023

2022

Other Data:

Mountain Reported EBITDA

$ 606,926

$ 596,000

$ 913,644

$ 873,529

Lodging Reported EBITDA

16,396

14,539

7,986

26,458

Resort Reported EBITDA

623,322

610,539

921,630

899,987

Real Estate Reported EBITDA

(1,436)

(1,291)

(559)

(2,815)

Total Reported EBITDA

$ 621,886

$ 609,248

$ 921,071

$ 897,172

Mountain stock-based compensation

$ 4,881

$ 5,084

$ 15,960

$ 15,867

Lodging stock-based compensation

947

879

2,957

2,856

Resort stock-based compensation

5,828

5,963

18,917

18,723

Real Estate stock-based compensation

45

66

145

210

Total stock-based compensation

$ 5,873

$ 6,029

$ 19,062

$ 18,933

Vail Resorts, Inc.

Mountain Segment Operating Results

(In thousands, except ETP)

(Unaudited)

Three Months Ended April 30,

Percentage

Increase

Nine Months Ended April 30,

Percentage

Increase

2023

2022

(Decrease)

2023

2022

(Decrease)

Net Mountain revenue:

Lift

$ 710,052

$ 714,708

(0.7) %

$ 1,362,195

$ 1,250,619

8.9 %

Ski school

145,134

120,897

20.0 %

277,512

214,442

29.4 %

Dining

101,683

79,826

27.4 %

206,953

146,395

41.4 %

Retail/rental

135,008

126,497

6.7 %

335,284

281,704

19.0 %

Other

52,853

42,707

23.8 %

177,945

135,150

31.7 %

Total Mountain net revenue

1,144,730

1,084,635

5.5 %

2,359,889

2,028,310

16.3 %

Mountain operating expense:

Labor and labor-related benefits

242,275

209,729

15.5 %

627,857

468,848

33.9 %

Retail cost of sales

36,551

34,940

4.6 %

105,489

85,851

22.9 %

Resort related fees

53,454

49,426

8.1 %

100,635

89,419

12.5 %

General and administrative

73,791

77,000

(4.2) %

254,445

219,262

16.0 %

Other

131,827

117,903

11.8 %

358,301

294,096

21.8 %

Total Mountain operating expense

537,898

488,998

10.0 %

1,446,727

1,157,476

25.0 %

Mountain equity investment income, net

94

363

(74.1) %

482

2,695

(82.1) %

Mountain Reported EBITDA

$ 606,926

$ 596,000

1.8 %

$ 913,644

$ 873,529

4.6 %

Total skier visits

9,242

8,702

6.2 %

18,543

16,279

13.9 %

ETP

$ 76.83

$ 82.13

(6.5) %

$ 73.46

$ 76.82

(4.4) %

Vail Resorts, Inc.

Lodging Operating Results

(In thousands, except Average Daily Rate ("ADR") and Revenue per Available Room ("RevPAR"))

(Unaudited)

Three Months Ended April 30,

Percentage

Increase

Nine Months Ended April 30,

Percentage

Increase

2023

2022

(Decrease)

2023

2022

(Decrease)

Lodging net revenue:

Owned hotel rooms

$ 15,091

$ 18,295

(17.5) %

$ 52,135

$ 53,362

(2.3) %

Managed condominium rooms

38,409

37,494

2.4 %

82,604

83,703

(1.3) %

Dining

15,422

14,646

5.3 %

45,435

33,296

36.5 %

Transportation

6,924

6,862

0.9 %

14,272

14,421

(1.0) %

Golf

—

—

nm

6,072

5,138

18.2 %

Other

12,380

9,925

24.7 %

37,235

31,641

17.7 %

88,226

87,222

1.2 %

237,753

221,561

7.3 %

Payroll cost reimbursements

5,320

4,679

13.7 %

13,987

8,281

68.9 %

Total Lodging net revenue

93,546

91,901

1.8 %

251,740

229,842

9.5 %

Lodging operating expense:

Labor and labor-related benefits

35,482

35,187

0.8 %

111,894

92,925

20.4 %

General and administrative

15,069

14,764

2.1 %

49,830

40,997

21.5 %

Other

21,279

22,732

(6.4) %

68,043

61,181

11.2 %

71,830

72,683

(1.2) %

229,767

195,103

17.8 %

Reimbursed payroll costs

5,320

4,679

13.7 %

13,987

8,281

68.9 %

Total Lodging operating expense

77,150

77,362

(0.3) %

243,754

203,384

19.8 %

Lodging Reported EBITDA

$ 16,396

$ 14,539

12.8 %

$ 7,986

$ 26,458

(69.8) %

Owned hotel statistics:

ADR

$ 357.18

$ 330.52

8.1 %

$ 313.59

$ 307.80

1.9 %

RevPAR

$ 170.35

$ 173.30

(1.7) %

$ 156.55

$ 167.90

(6.8) %

Managed condominium statistics:

ADR

$ 514.61

$ 508.24

1.3 %

$ 450.98

$ 443.10

1.8 %

RevPAR

$ 218.79

$ 215.48

1.5 %

$ 146.33

$ 142.55

2.7 %

Owned hotel and managed condominium statistics (combined):

ADR

$ 478.35

$ 458.99

4.2 %

$ 407.07

$ 399.21

2.0 %

RevPAR

$ 208.59

$ 205.50

1.5 %

$ 148.72

$ 148.14

0.4 %

Key Balance Sheet Data

(In thousands)

(Unaudited)

As of April 30,

2023

2022

Real estate held for sale and investment

$ 90,078

$ 95,519

Total Vail Resorts, Inc. stockholders' equity

$ 1,273,918

$ 1,829,317

Long-term debt, net

$ 2,773,747

$ 2,687,488

Long-term debt due within one year

68,970

63,736

Total debt

2,842,717

2,751,224

Less: cash and cash equivalents

896,089

1,401,168

Net debt

$ 1,946,628

$ 1,350,056

Reconciliation of Measures of Segment Profitability and Non-GAAP Financial Measures

Presented below is a reconciliation of net income attributable to Vail Resorts, Inc. to Total Reported EBITDA for the three and nine months ended April 30, 2023 and 2022.

(In thousands)

(Unaudited)

(In thousands)

(Unaudited)

Three Months Ended April 30,

Nine Months Ended April 30,

2023

2022

2023

2022

Net income attributable to Vail Resorts, Inc.

$ 325,006

$ 372,550

$ 396,714

$ 456,609

Net income attributable to noncontrolling interests

18,160

14,033

23,011

21,383

Net income

343,166

386,583

419,725

477,992

Provision for income taxes

124,289

118,211

145,315

110,407

Income before provision for income taxes

467,455

504,794

565,040

588,399

Depreciation and amortization

69,097

65,655

199,700

189,214

Loss (gain) on disposal of fixed assets and other, net

6,269

51

8,055

(16,163)

Change in fair value of contingent consideration

45,900

2,800

47,636

21,580

Investment income and other, net

(7,740)

(224)

(17,734)

(980)

Foreign currency loss on intercompany loans

1,766

1,040

5,563

3,079

Interest expense, net

39,139

35,132

112,811

112,043

Total Reported EBITDA

$ 621,886

$ 609,248

$ 921,071

$ 897,172

Mountain Reported EBITDA

$ 606,926

$ 596,000

$ 913,644

$ 873,529

Lodging Reported EBITDA

16,396

14,539

7,986

26,458

Resort Reported EBITDA*

623,322

610,539

921,630

899,987

Real Estate Reported EBITDA

(1,436)

(1,291)

(559)

(2,815)

Total Reported EBITDA

$ 621,886

$ 609,248

$ 921,071

$ 897,172

* Resort represents the sum of Mountain and Lodging

Presented below is a reconciliation of net income attributable to Vail Resorts, Inc. to Total Reported EBITDA calculated in accordance with GAAP for the twelve months ended April 30, 2023.

(In thousands)

(Unaudited)

Twelve Months Ended

April 30, 2023

Net income attributable to Vail Resorts, Inc.

$ 288,028

Net income attributable to noncontrolling interests

22,042

Net income

310,070

Provision for income taxes

123,732

Income before provision for income taxes

433,802

Depreciation and amortization

262,877

Gain on disposal of fixed assets and other, net

(19,774)

Change in fair value of contingent consideration

46,336

Investment income and other, net

(20,472)

Foreign currency loss on intercompany loans

5,166

Interest expense, net

148,951

Total Reported EBITDA

$ 856,886

Mountain Reported EBITDA

$ 851,282

Lodging Reported EBITDA

7,275

Resort Reported EBITDA*

858,557

Real Estate Reported EBITDA

(1,671)

Total Reported EBITDA

$ 856,886

* Resort represents the sum of Mountain and Lodging

The following table reconciles long-term debt, net to Net Debt and the calculation of Net Debt to Total Reported EBITDA for the twelve months ended April 30, 2023.

(In thousands)

(Unaudited)

As of April 30, 2023

Long-term debt, net

$ 2,773,747

Long-term debt due within one year

68,970

Total debt

2,842,717

Less: cash and cash equivalents

896,089

Net debt

$ 1,946,628

Net debt to Total Reported EBITDA

2.3x

The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three and nine months ended April 30, 2023 and 2022.

(In thousands)

(Unaudited)

(In thousands)

(Unaudited)

Three Months Ended April 30,

Nine Months Ended April 30,

2023

2022

2023

2022

Real Estate Reported EBITDA

$ (1,436)

$ (1,291)

$ (559)

$ (2,815)

Non-cash Real Estate cost of sales

—

—

5,138

227

Non-cash Real Estate stock-based compensation

45

66

145

210

Change in real estate deposits and recovery of previouslyincurred project costs/land basis less investments in real estate

(284)

(196)

(180)

692

Net Real Estate Cash Flow

$ (1,675)

$ (1,421)

$ 4,544

$ (1,686)

The following table reconciles Resort net revenue to Resort EBITDA Margin for fiscal 2023 guidance.

(In thousands)

(Unaudited)

Fiscal 2023 Guidance (2)

Resort net revenue (1)

2,890,000

Resort Reported EBITDA (1)

845,000

Resort EBITDA margin (1)

29.2 %

(1) Resort represents the sum of Mountain and Lodging

(2) Represents the mid-point of Guidance

SOURCE Vail Resorts, Inc.