BROOMFIELD, Colo., March 6, 2013 -- Vail Resorts, Inc. (NYSE:
MTN) today reported results for the second quarter of fiscal 2013 ended
January 31, 2013, as well as the
Company's ski season-to-date metrics through March
3, 2013.
Highlights
- Resort Reported EBITDA increased 17.0% for the second
quarter of fiscal 2013 compared to the same period in the prior year.
- Net Income attributable to Vail Resorts, Inc. was $60.6 million for the second quarter of fiscal
2013, representing a 30.5% increase compared to the same period in the
prior year.
- Excluding Kirkwood,
Skiinfo, Afton Alps and Mt. Brighton
(the "Acquisitions"), all of which were acquired subsequent to the
second quarter of fiscal 2012:
- Total Mountain net revenue increased 9.5% for the
second quarter of fiscal 2013 compared to the same period in the prior
year.
- Mountain Reported EBITDA increased 13.7% for the second
quarter of fiscal 2013 compared to the same period in the prior year.
- Total skier visitation increased 2.9% for the second
quarter of fiscal 2013 compared to the same period in the prior year.
- Season-to-date skier metrics through March
3, 2013 across our seven mountain resorts improved from our
metrics release in mid-January with increases in year-over-year growth
in revenues in each line of business.
- The Company's Board of Directors authorized a 10% increase
in the quarterly cash dividend to $0.2075
per share from $0.1875 per share
beginning with the dividend payable on April 9,
2013.
- During the second quarter of fiscal 2013, we closed on four
units at the Ritz-Carlton Residences, Vail
and three One Ski Hill Place units in Breckenridge. Net Real Estate
Cash Flow for the second quarter was $8.9
million and was $14.4 million
year-to-date. Subsequent to quarter end, two additional Ritz-Carlton
Residences, Vail and five additional
One Ski Hill Place units have closed.
Robert Katz, Chief Executive
Officer, commented, "We are very pleased with our performance in the
second quarter of fiscal 2013, which was notable for two distinct
dynamics we experienced in the quarter. The first was our results
through the middle of December, which were marked by unusually warm and
dry weather in Colorado that limited
the terrain we could open, leading to lower than expected results for
our four Colorado resorts. The second
began with the Christmas and New Year's
holidays as weather conditions in Colorado
returned to more normal patterns, leading to strong visitation and
significant consumer spending in our ancillary businesses producing a
record holiday season. Subsequent to the holidays, this momentum
continued with solid results through the end of January. For the
quarter, excluding the Acquisitions, lift revenue excluding season pass
revenue was up 11.9% compared with the same period in the prior year
and we saw continued growth in ancillary revenue, with dining revenue
up 11.7%, retail/rental revenue up 10.7%, and ski school revenue up
9.5%. Additionally, excluding the Acquisitions, Mountain Reported
EBITDA increased $16.6 million, or 13.7%
compared to the three months ended January 31,
2012."
Regarding Lodging, Katz said, "Our lodging results benefited
from higher visitation in the peak holiday periods and higher demand
for luxury rooms. Despite the slow start to the season for our Colorado properties, revenue at our owned
hotels and managed condominiums increased 5.5%, contributing to a 43.4%
increase in Lodging Reported EBITDA compared with the same period in
the prior year."
Regarding Real Estate, Katz said, "We are continuing to see
increasing levels of buyer interest and are encouraged by the rate of
sales we are seeing at both of our development projects. During the
quarter, we closed on four Ritz-Carlton Residences, Vail and three One Ski Hill Place units.
Real Estate Reported EBITDA improved 26.0% for the second quarter of
2013, and Net Real Estate Cash Flow for the second quarter was $8.9 million and was $14.4
million year-to-date. Subsequent to the end of the quarter, we
closed on two additional Ritz-Carlton Residence and five additional One
Ski Hill Place units."
Katz continued, "Our balance sheet remains in a very strong
position. We ended the quarter with $136.6
million of cash on hand and no borrowings under the revolver
component of our senior credit facility and our Net Debt was 1.7 times
trailing twelve months Total Reported EBITDA." Katz added, "I am also
pleased to announce that that the Board of Directors has decided to
increase our quarterly dividend by 10% and declared a quarterly cash
dividend on Vail Resorts' common stock of $0.2075
per share, payable on April 9, 2013 to
stockholders of record on March 25,
2013. The decision to increase our dividend was due to the results we
are seeing this season, the strength of our business model and balance
sheet, and the confidence we have in our future growth prospects."
The Company also announced its calendar year 2013 capital plan
at a range of $130 million to $140 million,
which is discussed in more detail in a concurrently issued separate
press release.
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 second quarter of 2013 ended January 31, 2013 filed today with the
Securities and Exchange Commission. The following are segment
highlights:
Mountain Segment
- Lift revenue increased $22.0 million,
or 14.3%, to $175.7 million for the
three months ended January 31, 2013 compared to the same period in the
prior year.
- ETP excluding season pass holders, and excluding the
Acquisitions, increased $5.46, or 7.6%
for the quarter compared to the same period in the prior year.
- Mountain Reported EBITDA increased $20.2
million, or 16.8% to $140.8 million
for the quarter compared to the same period in the prior year.
- Mountain Reported EBITDA includes $2.2
million and $1.8 million of
stock-based compensation expense for the three months ended January 31, 2013 and 2012, respectively.
Strong visitation and increases in guest spending supported
revenue growth in all our major lines of businesses. Lift revenue
excluding season pass revenue increased $15.1
million, or 17.9%, in the second quarter of fiscal 2013 compared
to the same period in the prior year. The increase in lift revenue
excluding season pass revenue was driven by an increase in visitation
excluding season pass holders of 14.3% and an increase in ETP excluding
season pass holders of $2.23, or 3.1%.
Season pass revenue increased $6.9 million,
or 9.9%, for the quarter compared to the same period in the prior year.
Ski school revenue increased $4.5 million,
or 12.0%, and dining revenue increased $5.1
million, or 20.6%, for the quarter compared to the same period
in the prior year. Ski school and dining revenues benefited from a
56.1% increase in skier visitation at our Tahoe resorts (including Kirkwood, which was acquired in April 2012), which experienced significantly
better snowfall and weather conditions during the current year fiscal
quarter compared to the same period in the prior year. Excluding the
Acquisitions, Lift Revenue excluding season pass revenue, increased $10.1 million, or 11.9%, ski school revenue
increased $3.5 million, or 9.5%, and
dining revenue increased $2.9 million,
or 11.7%, in the quarter compared to the same period in the prior year.
Retail/rental revenues increased by $9.9 million,
or 13.4%, due in large part to increases in rental revenue; strong
growth in retail sales generated from O2 Gearshop, our recently
acquired online retailer; and increases at stores at our Tahoe resorts,
which saw significantly better snowfall and weather conditions during
the current year fiscal quarter compared to the same period in the
prior year. Other revenue increased $4.4 million,
or 16.5%, for the quarter compared to the same period in the prior
year, primarily due to incremental internet advertising revenue from
Skiinfo (acquired in February 2012) of $1.9 million, an increase in strategic
alliance marketing revenue, increased employee housing revenue and
additional revenue associated with other mountain recreation activity.
Mountain segment operating expenses increased $25.5 million, or 13.0%, for the second fiscal
quarter of 2013 compared to the same period in the prior year.
Excluding incremental operating expenses from the Acquisitions, segment
operating expenses increased $13.5 million,
or 6.9%.
Lodging Segment
- Total Lodging net revenue (excluding payroll cost
reimbursements) for the three months ended January
31, 2013 increased $1.2 million,
or 2.8%, as compared to the same period in the prior year.
- For the three months ended January
31, 2013, average daily rate ("ADR") increased 6.4% and revenue
per available room ("RevPAR") increased 1.5% at the Company's owned
hotels and managed condominiums compared to the same period in the
prior year.
- Lodging Reported EBITDA increased 43.4% to $1.7 million for the second quarter of fiscal
2013 compared to the same period in the prior year.
- Lodging Reported EBITDA includes $0.6
million and $0.4 million of
stock-based compensation expense for the three months ended January 31, 2013 and 2012, respectively.
The 6.4% increase in ADR from the same period in the prior
year helped maintain revenue growth at owned hotels and managed
condominiums. Dining revenues in the second quarter of fiscal 2013 were
up $0.4 million, or 7.8%, over the
second fiscal quarter of the prior year, primarily due to an increase
in group business at our Keystone
resort. Lodging segment operating expenses (excluding reimbursed
payroll costs) increased $0.7 million,
or 1.7%, compared to the same period in the prior year which increases
were partially offset by lower overhead and labor costs associated with
the previously announced RockResorts reorganization plan.
Resort – Combination of Mountain and Lodging Segments
- Resort net revenue was $408.3
million for the second quarter of fiscal 2013 up 12.1% compared
to $364.2 million in the second quarter
of the prior year.
- Resort Reported EBITDA was $142.6
million for the second quarter of fiscal 2013 up 17.0% compared
to $121.8 million in the same period in
the prior year.
Real Estate Segment
- Real Estate segment net revenue was $14.2
million for the second quarter of fiscal 2013 compared to $9.1 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 $8.9 million for the second quarter of fiscal
2013.
- Real Estate Reported EBITDA was a negative $2.6 million the second quarter of fiscal 2013
compared to a negative $3.5 million in
the same period in the prior year.
- Real Estate Reported EBITDA includes $0.4
million and $0.6 million of
stock-based compensation expense for the three months ended January 31,
2013 and 2012, respectively.
Real Estate segment net revenue for the second quarter of
fiscal 2013 was driven by the closing of four condominium units at The
Ritz-Carlton Residences, Vail ($8.9 million of revenue with an average
selling price per unit of $2.2 million
and a price per square foot of $1,221)
and three condominium units at One Ski Hill Place in Breckenridge ($3.3
million of revenue with an average selling price per unit of $1.1 million and an average price per square
foot of $964). In addition to revenue
generated from real estate closings, Real Estate segment net revenue
also included $0.7 million of rental
revenue from placing unsold units into our rental program. Subsequent
to the end of the quarter, two additional Ritz-Carlton Residences, Vail and five additional One Ski Hill Place
units have closed.
Total Performance
- Total net revenue in the second quarter of fiscal 2013 was $422.5 million, or a 13.2% increase, when
compared to the same quarter in the prior year.
- Net income attributable to Vail Resorts, Inc. was $60.6 million, or $1.65
per diluted share, for the second quarter of fiscal 2013 compared to
net income attributable to Vail Resorts, Inc. of $46.4
million, or $1.27 per diluted
share, in the second quarter of the prior year.
Share Repurchase
The Company did not repurchase any shares of common stock
during the three months ended January 31,
2013. Since inception of this stock repurchase program in 2006, the
Company has repurchased an aggregate of 4,949,111 shares at a cost of
approximately $193.2 million. As of January 31, 2013, 1,050,889 shares remained
available to repurchase under the existing repurchase authorization.
Season-to-Date Metrics through March
3, 2013
The Company announced ski season-to-date metrics for the
comparative periods from the beginning of the ski season through Sunday, March 3, 2013, and for the similar
prior year period through Sunday, March 4, 2012,
adjusted as if Kirkwood, which was
acquired in April 2012, was owned in
both periods. The reported ski season metrics do not include the
results of Afton Alps and Mt. Brighton
in either period. The following data is interim period data and subject
to fiscal quarter end review and adjustments.
Highlights
- Season-to-date total lift ticket revenue, including an
allocated portion of season pass revenue for each applicable period,
was up approximately 10.3% compared to the prior year season-to-date
period.
- Season-to-date ancillary spending outpaced our growth in
skier visitation, with dining revenue up 12.5%, ski school revenue up
11.8%, and retail/rental revenue up 10.0% compared to the prior year
season-to-date period.
- Season-to-date total skier visits were up 3.8% compared to
the prior year season-to-date.
Commenting on the ski season-to-date, Rob
Katz, said, "The growth in season-to-date visitation and
ancillary revenue reflects the continued strong performance of our
business despite managing through a challenging start to the season. We
are seeing continued success from our efforts as the trends in
visitation, lift ticket revenue and guest spending have all accelerated
since we last reported metrics in mid-January. This season further
underscores the strength of our business model, which is to continually
reinvest in our world-class resorts and provide exceptional guest
service and a comprehensive vacation experience, driving continued
guest loyalty, including through our industry-leading season pass
programs."
Outlook
Commenting on fiscal 2013 guidance, Katz continued, "We
are pleased with our year-to-date performance and are reiterating the
fiscal year 2013 guidance issued on January 15,
2013."
The following table reflects the forecasted guidance range for
the Company's fiscal year ending July 31, 2013,
for Reported EBITDA (after stock-based compensation expense) and
reconciles such Reported EBITDA guidance to net income attributable to
Vail Resorts, Inc. guidance for fiscal 2013.
|
Fiscal
2013 Guidance
|
|
(In
thousands)
|
|
For
the Year Ending
|
|
July
31, 2013
|
|
Low
End
Range
|
|
|
High
End
Range
|
Mountain
Reported EBITDA (1)
|
$
|
234,000
|
|
$
|
244,000
|
Lodging
Reported EBITDA (2)
|
|
8,000
|
|
|
13,000
|
Resort
Reported EBITDA (3)
|
|
244,000
|
|
|
254,000
|
Real
Estate Reported EBITDA (4)
|
|
(17,000)
|
|
|
(9,000)
|
Total
Reported EBITDA
|
|
227,000
|
|
|
245,000
|
Depreciation
and amortization
|
|
(130,000)
|
|
|
(131,500)
|
Loss
on disposal of fixed assets, net
|
|
(500)
|
|
|
(1,100)
|
Investment
income
|
|
500
|
|
|
600
|
Interest
expense, net
|
|
(34,000)
|
|
|
(34,000)
|
Income
before provision for income taxes
|
|
63,000
|
|
|
79,000
|
Provision
for income taxes
|
|
(24,090)
|
|
|
(30,090)
|
Net
income
|
|
38,910
|
|
|
48,910
|
Net
loss attributable to noncontrolling interests
|
|
90
|
|
|
90
|
Net
income attributable to Vail Resorts, Inc.
|
$
|
39,000
|
|
$
|
49,000
|
(1)
|
Mountain
Reported EBITDA includes approximately $9 million of stock-based
compensation.
|
(2)
|
Lodging
Reported EBITDA includes approximately $2 million of stock-based
compensation.
|
(3)
|
Resort
Reported EBITDA represents the sum of Mountain and Lodging. The Company
provides Reported EBITDA ranges for the Mountain and Lodging segments,
as well as for the two combined. Readers are cautioned to recognize
that the low end of the expected ranges provided for the Lodging and
Mountain segments, while possible, do not sum to the low end of the
Resort Reported EBITDA range provided because we do not necessarily
expect or assume that we will actually hit the low end of both ranges,
as the actual Resort Reported EBITDA will depend on the actual mix of
the Lodging and Mountain components. Similarly, the high end of the
ranges for the Lodging and Mountain segments do not sum to the high end
of the Resort Reported EBITDA range.
|
(4)
|
Real
Estate Reported EBITDA includes approximately $2 million of stock-based
compensation.
|
Earnings Conference Call
The Company will conduct a conference call today at 4:30 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 (877) 941-8609 (U.S. and Canada) or (480) 629-9692 (international).
A replay of the conference call will be available two hours following
the conclusion of the call through March 20,
2013. To access the replay, dial (800) 406-7325 (U.S. and Canada) or (303) 590-3030 (international),
pass code 4602101. The conference call will also be archived at www.vailresorts.com.
About Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts, Inc., through its subsidiaries, is the
leading mountain resort operator in the
United States. The Company's subsidiaries operate the mountain
resorts of Vail, Beaver Creek, Breckenridge
and Keystone in Colorado; Heavenly, Northstar and Kirkwood
in the Lake Tahoe area of California and Nevada;
Afton Alps in Minnesota and Mt. Brighton in Michigan;
and the Grand Teton Lodge Company in Jackson
Hole, Wyoming. The Company's subsidiary, RockResorts, a luxury
resort hotel company, manages casually elegant properties. Vail Resorts
Development Company is the real estate planning, development and
construction subsidiary of Vail Resorts, Inc. Vail Resorts is a
publicly held company traded on the New York Stock Exchange (NYSE:
MTN). The Vail Resorts company website is www.vailresorts.com
and consumer website is www.snow.com.
Forward-Looking Statements
Statements in this press release, other than statements
of historical information, are forward looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those projected. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Such risks and
uncertainties include but are not limited to prolonged weakness in
general economic conditions, including adverse affects on the overall
travel and leisure related industries; unfavorable weather conditions
or natural disasters; adverse events that occur during our peak
operating periods combined with the seasonality of our business;
competition in our mountain and lodging businesses; our ability to grow
our resort and real estate operations; our ability to successfully
initiate, complete, and sell, new real estate development projects and
achieve the anticipated financial benefits from such projects; further
adverse changes in real estate markets; continued volatility in credit
markets; our ability to obtain financing on terms acceptable to us to
finance our real estate development, capital expenditures and growth
strategy; our reliance on government permits or approvals for our use
of Federal land or to make operational and capital improvements; demand
for planned summer activities and our ability to successfully obtain
necessary approvals and construct the planned improvements; adverse
consequences of current or future legal claims; our ability to hire and
retain a sufficient seasonal workforce; willingness of our guests to
travel due to terrorism, the uncertainty of military conflicts or
outbreaks of contagious diseases, and the cost and availability of
travel options; negative publicity which diminishes the value of our
brands; our ability to integrate and successfully realize anticipated
benefits of acquisitions or future acquisitions; implications arising
from new Financial Accounting Standards Board ("FASB")/governmental
legislation, rulings or interpretations; 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,
2012.
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
We use the terms "Reported EBITDA" and "Net Debt" when
reporting financial results in accordance with Securities and Exchange
Commission rules regarding the use of non-GAAP financial measures. We
define Reported EBITDA as segment net revenue less segment operating
expense plus or minus segment equity investment income or loss and for
the Real Estate segment plus gain on sale of real property. We define
Net Debt as long-term debt plus long-term debt due within one year less
cash and cash equivalents. In addition, for the Real Estate segment we
define Net Real Estate Cash Flow (which is not a measure of financial
performance under GAAP) 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, which we use as a cash flow indicator for our Real Estate
segment. For the Lodging segment we primarily focus on Lodging net
revenue excluding payroll cost reimbursement and Lodging operating
expense excluding reimbursed payroll costs (which are not measures of
financial performance under GAAP) as the reimbursements are made based
upon the costs incurred with no added margin, as such the revenue and
corresponding expense have no effect on our Lodging Reported EBITDA
which we use to evaluate Lodging segment performance. Please see
"Reconciliation of Non-GAAP Financial Measures" below for more
information.
|
Vail
Resorts, Inc.
|
|
Consolidated
Condensed Statements of Operations
|
|
(In
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
Three
Months Ended
January 31,
|
Six
Months Ended
January
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
Mountain
|
|
$
|
361,741
|
|
$
|
315,938
|
|
$
|
413,653
|
|
$
|
365,608
|
Lodging
|
|
46,543
|
|
48,306
|
|
99,051
|
|
101,900
|
Real
estate
|
|
14,167
|
|
9,088
|
|
26,097
|
|
22,197
|
Total
net revenue
|
|
422,451
|
|
373,332
|
|
538,801
|
|
489,705
|
Segment
operating expense:
|
|
|
|
|
|
|
|
Mountain
|
|
220,997
|
|
195,489
|
|
328,545
|
|
294,044
|
Lodging
|
|
44,803
|
|
47,093
|
|
96,609
|
|
102,394
|
Real
estate
|
|
16,739
|
|
12,563
|
|
32,353
|
|
30,410
|
Total
segment operating expense
|
|
282,539
|
|
255,145
|
|
457,507
|
|
426,848
|
Other
operating expense:
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
(33,418)
|
|
(33,050)
|
|
(65,097)
|
|
(61,980)
|
Loss
on disposal of fixed assets, net
|
|
(531)
|
|
(919)
|
|
(533)
|
|
(1,033)
|
Income
(loss) from operations
|
|
105,963
|
|
84,218
|
|
15,664
|
|
(156)
|
Mountain
equity investment income, net
|
|
99
|
|
178
|
|
533
|
|
608
|
Investment
income, net
|
|
99
|
|
310
|
|
153
|
|
374
|
Interest
expense, net
|
|
(8,534)
|
|
(8,542)
|
|
(16,909)
|
|
(16,783)
|
Income
(loss) before (provision) benefit from income taxes
|
|
97,627
|
|
76,164
|
|
(559)
|
|
(15,957)
|
(Provision)
benefit from income taxes
|
|
(37,098)
|
|
(29,743)
|
|
485
|
|
6,644
|
Net
income (loss)
|
|
$
|
60,529
|
|
$
|
46,421
|
|
$
|
(74)
|
|
$
|
(9,313)
|
Net
loss (income) attributable to noncontrolling interests
|
|
22
|
|
(32)
|
|
45
|
|
(7)
|
Net
income (loss) attributable to Vail Resorts, Inc.
|
|
$
|
60,551
|
|
$
|
46,389
|
|
$
|
(29)
|
|
$
|
(9,320)
|
Per
share amounts:
|
|
|
|
|
|
|
|
Basic
net income (loss) per share attributable to Vail Resorts, Inc.
|
|
$
|
1.69
|
|
$
|
1.29
|
|
$
|
—
|
|
$
|
(0.26)
|
Diluted
net income (loss) per share attributable to Vail Resorts, Inc.
|
|
$
|
1.65
|
|
$
|
1.27
|
|
$
|
—
|
|
$
|
(0.26)
|
Cash
dividends declared per share
|
|
$
|
0.1875
|
|
$
|
0.15
|
|
$
|
0.3750
|
|
$
|
0.30
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
35,895
|
|
36,005
|
|
35,798
|
|
36,036
|
Diluted
|
|
36,663
|
|
36,651
|
|
35,798
|
|
36,036
|
Other
Data (unaudited):
|
|
|
|
|
|
|
|
|
|
Mountain
Reported EBITDA
|
|
$
|
140,843
|
|
$
|
120,627
|
|
$
|
85,641
|
|
$
|
72,172
|
Lodging
Reported EBITDA
|
|
$
|
1,740
|
|
$
|
1,213
|
|
$
|
2,442
|
|
$
|
(494)
|
Resort
Reported EBITDA
|
|
$
|
142,583
|
|
$
|
121,840
|
|
$
|
88,083
|
|
$
|
71,678
|
Real
Estate Reported EBITDA
|
|
$
|
(2,572)
|
|
$
|
(3,475)
|
|
$
|
(6,256)
|
|
$
|
(8,213)
|
Total
Reported EBITDA
|
|
$
|
140,011
|
|
$
|
118,365
|
|
$
|
81,827
|
|
$
|
63,465
|
Mountain
stock-based compensation
|
|
$
|
2,215
|
|
$
|
1,757
|
|
$
|
4,935
|
|
$
|
4,317
|
Lodging
stock-based compensation
|
|
$
|
572
|
|
$
|
399
|
|
$
|
942
|
|
$
|
1,001
|
Resort
stock-based compensation
|
|
$
|
2,787
|
|
$
|
2,156
|
|
$
|
5,877
|
|
$
|
5,318
|
Real
Estate stock-based compensation
|
|
$
|
372
|
|
$
|
632
|
|
$
|
754
|
|
$
|
1,502
|
Total
stock-based compensation
|
|
$
|
3,159
|
|
$
|
2,788
|
|
$
|
6,631
|
|
$
|
6,820
|
Vail
Resorts, Inc.
|
Mountain
Segment Operating Results
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
January
31,
|
|
Percentage
Increase
|
|
Six
Months Ended
January
31,
|
|
Percentage
Increase
|
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
Net
Mountain revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lift
tickets
|
|
$
|
175,658
|
|
$
|
153,699
|
|
14.3
|
%
|
|
$
|
175,658
|
|
$
|
153,699
|
|
14.3
|
%
|
Ski
school
|
|
41,723
|
|
37,252
|
|
12.0
|
%
|
|
41,723
|
|
37,252
|
|
12.0
|
%
|
Dining
|
|
29,826
|
|
24,722
|
|
20.6
|
%
|
|
36,199
|
|
30,369
|
|
19.2
|
%
|
Retail/rental
|
|
83,748
|
|
73,850
|
|
13.4
|
%
|
|
110,473
|
|
100,814
|
|
9.6
|
%
|
Other
|
|
30,786
|
|
26,415
|
|
16.5
|
%
|
|
49,600
|
|
43,474
|
|
14.1
|
%
|
Total
Mountain net revenue
|
|
$
|
361,741
|
|
$
|
315,938
|
|
14.5
|
%
|
|
$
|
413,653
|
|
$
|
365,608
|
|
13.1
|
%
|
Mountain
operating expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor
and labor-related benefits
|
|
$
|
83,684
|
|
$
|
72,730
|
|
15.1
|
%
|
|
$
|
117,978
|
|
$
|
102,821
|
|
14.7
|
%
|
Retail
cost of sales
|
|
35,244
|
|
29,427
|
|
19.8
|
%
|
|
51,435
|
|
44,954
|
|
14.4
|
%
|
Resort
related fees
|
|
17,396
|
|
16,742
|
|
3.9
|
%
|
|
18,385
|
|
17,826
|
|
3.1
|
%
|
General
and administrative
|
|
34,813
|
|
31,699
|
|
9.8
|
%
|
|
62,117
|
|
57,406
|
|
8.2
|
%
|
Other
|
|
49,860
|
|
44,891
|
|
11.1
|
%
|
|
78,630
|
|
71,037
|
|
10.7
|
%
|
Total
Mountain operating expense
|
|
$
|
220,997
|
|
$
|
195,489
|
|
13.0
|
%
|
|
$
|
328,545
|
|
$
|
294,044
|
|
11.7
|
%
|
Mountain
equity investment income, net
|
|
99
|
|
178
|
|
(44.4)%
|
|
|
533
|
|
608
|
|
(12.3)%
|
|
Mountain
Reported EBITDA
|
|
$
|
140,843
|
|
$
|
120,627
|
|
16.8
|
%
|
|
$
|
85,641
|
|
$
|
72,172
|
|
18.7
|
%
|
Vail
Resorts, Inc.
|
Lodging
Operating Results
|
(In
thousands, except ADR and RevPAR)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
January
31,
|
|
Percentage
Increase
|
|
Six
Months Ended
January
31,
|
|
Percentage
Increase
|
|
|
2013
|
|
2012
|
|
(Decrease)
|
|
2013
|
|
2012
|
|
(Decrease)
|
Lodging
net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
hotel rooms
|
|
$
|
8,906
|
|
$
|
8,691
|
|
2.5
|
%
|
|
$
|
22,600
|
|
$
|
20,723
|
|
9.1
|
%
|
Managed
condominium rooms
|
|
14,605
|
|
13,594
|
|
7.4
|
%
|
|
20,419
|
|
19,140
|
|
6.7
|
%
|
Dining
|
|
5,492
|
|
5,094
|
|
7.8
|
%
|
|
16,102
|
|
14,651
|
|
9.9
|
%
|
Transportation
|
|
7,123
|
|
7,089
|
|
0.5
|
%
|
|
8,814
|
|
8,791
|
|
0.3
|
%
|
Golf
|
|
—
|
|
—
|
|
—
|
|
|
7,647
|
|
7,573
|
|
1.0
|
%
|
Other
|
|
7,880
|
|
8,324
|
|
(5.3)%
|
|
|
17,752
|
|
17,773
|
|
(0.1)%
|
|
|
|
44,006
|
|
42,792
|
|
2.8
|
%
|
|
93,334
|
|
88,651
|
|
5.3
|
%
|
Payroll
cost reimbursements
|
|
2,537
|
|
5,514
|
|
(54.0)%
|
|
|
5,717
|
|
13,249
|
|
(56.8)%
|
|
Total
Lodging net revenue
|
|
$
|
46,543
|
|
$
|
48,306
|
|
(3.6)%
|
|
|
$
|
99,051
|
|
$
|
101,900
|
|
(2.8)%
|
|
Lodging
operating expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor
and labor-related benefits
|
|
$
|
21,472
|
|
$
|
20,839
|
|
3.0
|
%
|
|
$
|
44,922
|
|
$
|
43,408
|
|
3.5
|
%
|
General
and administrative
|
|
7,236
|
|
7,630
|
|
(5.2)%
|
|
|
14,261
|
|
15,158
|
|
(5.9)%
|
|
Other
|
|
13,558
|
|
13,110
|
|
3.4
|
%
|
|
31,709
|
|
30,579
|
|
3.7
|
%
|
|
|
42,266
|
|
41,579
|
|
1.7
|
%
|
|
90,892
|
|
89,145
|
|
2.0
|
%
|
Reimbursed
payroll costs
|
|
2,537
|
|
5,514
|
|
(54.0)%
|
|
|
5,717
|
|
13,249
|
|
(56.8)%
|
|
Total
Lodging operating expense
|
|
$
|
44,803
|
|
$
|
47,093
|
|
(4.9)%
|
|
|
$
|
96,609
|
|
$
|
102,394
|
|
(5.6)%
|
|
Lodging
Reported EBITDA
|
|
$
|
1,740
|
|
$
|
1,213
|
|
43.4
|
%
|
|
$
|
2,442
|
|
$
|
(494)
|
|
594.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
hotel statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
232.85
|
|
$
|
223.98
|
|
4.0
|
%
|
|
$
|
198.83
|
|
$
|
202.64
|
|
(1.9)%
|
|
RevPar
|
|
$
|
124.06
|
|
$
|
120.49
|
|
3.0
|
%
|
|
$
|
117.46
|
|
$
|
109.56
|
|
7.2
|
%
|
Managed
condominium statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
416.08
|
|
$
|
387.57
|
|
7.4
|
%
|
|
$
|
338.20
|
|
$
|
323.70
|
|
4.5
|
%
|
RevPar
|
|
$
|
122.84
|
|
$
|
121.65
|
|
1.0
|
%
|
|
$
|
76.58
|
|
$
|
75.57
|
|
1.3
|
%
|
Owned
hotel and managed condominium statistics (combined):
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR
|
|
$
|
344.26
|
|
$
|
323.41
|
|
6.4
|
%
|
|
$
|
262.07
|
|
$
|
259.87
|
|
0.8
|
%
|
RevPar
|
|
$
|
123.16
|
|
$
|
121.33
|
|
1.5
|
%
|
|
$
|
89.49
|
|
$
|
86.62
|
|
3.3
|
%
|
Key
Balance Sheet Data
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
As
of January 31,
|
|
|
2013
|
|
2012
|
Real
estate held for sale and investment
|
|
$
|
216,815
|
|
$
|
257,169
|
Total
Vail Resorts, Inc. stockholders' equity
|
|
796,014
|
|
807,261
|
|
|
|
|
|
Long-term
debt
|
|
489,497
|
|
490,302
|
Long-term
debt due within one year
|
|
806
|
|
1,058
|
Total
debt
|
|
490,303
|
|
491,360
|
Less:
cash and cash equivalents
|
|
136,579
|
|
95,642
|
Net
debt
|
|
$
|
353,724
|
|
$
|
395,718
|
Reconciliation of Non-GAAP Financial Measures
Resort, Mountain and Lodging, and Real Estate Reported
EBITDA have been presented herein as measures of the Company's
financial operating performance. Reported EBITDA and Net Debt are not
measures of financial performance or liquidity under accounting
principles generally accepted in the United
States of America ("GAAP"), and they might not be comparable to
similarly titled measures of other companies. Reported EBITDA and Net
Debt 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 including net income (loss), net change in cash
and cash equivalents or other financial statement data. 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 companies in the resort and
lodging industries. The Company primarily uses Reported EBITDA based
targets in evaluating performance. The Company believes that Net Debt
is an important measurement as it is an indicator of the Company's
ability to obtain additional capital resources for its future cash
needs. In addition, the Company also uses the term Net Real Estate Cash
Flow, which is not a measure of financial performance or liquidity
under GAAP, as the Company believes it is important as a cash flow
indicator for our Real Estate segment.
Presented below is a reconciliation of Total Reported EBITDA
to net income (loss) attributable to Vail Resorts, Inc. calculated in
accordance with GAAP for the three and six months ended January 31,
2013 and 2012.
|
|
(In
thousands)
(Unaudited)
Three
Months Ended
January
31,
|
|
(In
thousands)
(Unaudited)
Six
Months Ended
January
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Mountain
Reported EBITDA
|
|
$
|
140,843
|
|
$
|
120,627
|
|
$
|
85,641
|
|
$
|
72,172
|
Lodging
Reported EBITDA
|
|
1,740
|
|
1,213
|
|
2,442
|
|
(494)
|
Resort
Reported EBITDA*
|
|
142,583
|
|
121,840
|
|
88,083
|
|
71,678
|
Real
Estate Reported EBITDA
|
|
(2,572)
|
|
(3,475)
|
|
(6,256)
|
|
(8,213)
|
Total
Reported EBITDA
|
|
140,011
|
|
118,365
|
|
81,827
|
|
63,465
|
Depreciation
and amortization
|
|
(33,418)
|
|
(33,050)
|
|
(65,097)
|
|
(61,980)
|
Loss
on disposal of fixed assets, net
|
|
(531)
|
|
(919)
|
|
(533)
|
|
(1,033)
|
Investment
income, net
|
|
99
|
|
310
|
|
153
|
|
374
|
Interest
expense, net
|
|
(8,534)
|
|
(8,542)
|
|
(16,909)
|
|
(16,783)
|
Income
(loss) before (provision) benefit from income taxes
|
|
97,627
|
|
76,164
|
|
(559)
|
|
(15,957)
|
(Provision)
benefit from income taxes
|
|
(37,098)
|
|
(29,743)
|
|
485
|
|
6,644
|
Net
income (loss)
|
|
60,529
|
|
46,421
|
|
(74)
|
|
(9,313)
|
Net
loss (income) attributable to noncontrolling interests
|
|
22
|
|
(32)
|
|
45
|
|
(7)
|
Net
income (loss) attributable to Vail Resorts, Inc.
|
|
$
|
60,551
|
|
$
|
46,389
|
|
$
|
(29)
|
|
$
|
(9,320)
|
*
|
Resort
represents the sum of Mountain and Lodging
|
Presented below is a reconciliation of Total Reported EBITDA
to net income attributable to Vail Resorts, Inc. calculated in
accordance with GAAP for the twelve months ended January 31, 2013.
|
(In
thousands)
(Unaudited)
Twelve
Months Ended
January
31, 2013
|
Mountain
Reported EBITDA
|
$
|
212,377
|
Lodging
Reported EBITDA
|
9,289
|
Resort
Reported EBITDA*
|
221,666
|
Real
Estate Reported EBITDA
|
(14,050)
|
Total
Reported EBITDA
|
207,616
|
Depreciation
and amortization
|
(130,698)
|
Loss
on disposal of fixed assets, net
|
(964)
|
Investment
income, net
|
248
|
Interest
expense, net
|
(33,712)
|
Income
before provision for income taxes
|
42,490
|
Provision
for income taxes
|
(16,860)
|
Net
income
|
$
|
25,630
|
Net
loss attributable to noncontrolling interests
|
114
|
Net
income attributable to Vail Resorts, Inc.
|
$
|
25,744
|
*
|
Resort
represents the sum of Mountain and Lodging
|
The following table reconciles Net Debt to long-term debt and
the calculation of Net Debt to Total Reported EBITDA for the twelve
months ended January 31, 2013.
|
|
(In
thousands)
(Unaudited)
As
of January 31, 2013
|
|
Long-term
debt
|
|
$
|
489,497
|
|
Long-term
debt due within one year
|
|
806
|
|
Total
debt
|
|
490,303
|
|
Less:
cash and cash equivalents
|
|
136,579
|
|
Net
debt
|
|
$
|
353,724
|
|
Net
debt to Total Reported EBITDA
|
|
1.7
|
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three and six months ended January
31, 2013.
|
|
(In
thousands)
(Unaudited)
Three
Months Ended
January
31, 2013
|
|
(In
thousands)
(Unaudited)
Six
Months Ended
January
31, 2013
|
Real
Estate Reported EBITDA
|
|
$
|
(2,572)
|
|
$
|
(6,256)
|
Non-cash
Real Estate cost of sales
|
|
10,659
|
|
19,900
|
Non-cash
Real Estate stock-based compensation
|
|
372
|
|
754
|
Change
in Real Estate deposits less investments in Real Estate
|
|
451
|
|
(26)
|
Net
Real Estate Cash Flow
|
|
$
|
8,910
|
|
$
|
14,372
|
|