Vail Resorts Inc. reported that retail/rental sales rose to $20.8 million in the fourth quarter ended July 31, up 11.9 percent from a year earlier as summer visitation to its growing portfolio of mountain resorts continued to grow.
Vail Resorts reported that sales of season passes through Sept. 23, 2012 for the upcoming 2012/2013 ski season were up approximately 17% in units and approximately 21% in sales dollars versus the comparable period in the prior year, adjusted as if its recently acquired Kirkwood resort were owned in both periods. Based on historical patterns, approximately 60% of our total sales are made by this date.
In the Mountain Segment, which includes sales of lift tickets, net revenues actually increased 1.9% for Fiscal 2012 despite total skier visits declining 12.1% compared to Fiscal 2011, said CEO Rob Katz.
- Total Skier Visits for Fiscal 2012 were 6.1 million, versus 7.0 million in Fiscal 2011, a 12.1% decrease.
- Mountain segment net revenue was $766.6 million for Fiscal 2012 compared to $752.2 million in the same period in the prior year, a 1.9% increase.
- Mountain Reported EBITDA was $198.9 million for Fiscal 2012 compared to $213.2 million in the same period in the prior year, a 6.7% decrease. Excluding $3.1 million of Northstar Fiscal 2012 first quarter EBITDA losses and transition costs net of the prior year transaction costs, and $2.6 million of Kirkwood and Skiinfo acquisition timing and acquisition related costs, Mountain Reported EBITDA would reflect a 4.1% decrease from Fiscal 2011.
- Mountain Reported EBITDA includes $7.6 million and $7.1 million of stock-based compensation expense for Fiscal 2012 and 2011, respectively.
Despite the unprecedented adverse weather conditions, Fiscal 2012 Mountain revenue was stable due to increased season pass sales, higher pricing and increased average guest spend. Total Effective Ticket Price (“ETP”) (calculated by dividing lift ticket revenue by total skier visits) for Fiscal 2012 increased 13.8% to $55.75 from $48.99 in Fiscal 2011, driven by price increases and a decline from Fiscal 2011 in visitation from season pass holders of approximately 1.2 days per pass. ETP excluding season passes increased by 9.3% and season pass revenue increased by 13.2%, including a 3% increase in units. Both ski school and dining revenues increased in Fiscal 2012 (0.6% and 0.5%, respectively) over the prior fiscal year, with retail/rental revenues increasing 4.3%. Fiscal 2012 fourth quarter results reflect strong momentum in summer revenues, with Mountain net revenues rising 11.3% to $46.4 million from $41.7 million in the same period of the prior year.
Outlook and fiscal year 2013 guidance
Commenting on the Company's season pass sales for the upcoming 2012/2013 ski season, Katz said, “We continue to be extremely pleased with the strength of our season pass sales to date, especially coming off the challenging weather of the past ski season and the record performance we had in season passes last year. Sales of season passes through September 23, 2012 for the upcoming 2012/2013 season were up approximately 17% in units and approximately 21% in sales dollars versus the comparable period in the prior year, adjusted as if Kirkwood were owned in both periods.
Regarding advance Lodging bookings, Katz said, “Although it is still early in the cycle (less than 15% of winter season bookings are historically made by this time), we are pleased that at this point bookings are up in both room nights and revenue over the prior year.”
Commenting on Fiscal 2013 guidance, Katz continued, “We would like to announce our guidance for Fiscal 2013. As always, our visibility on the upcoming season at this point in time is limited. Our guidance for Fiscal 2013 anticipates a return to more normal weather conditions and the continuation of a challenging, but stable economic environment. Based on our current estimates, our Fiscal 2013 guidance range anticipates Resort Reported EBITDA of between $260 million and $270 million, reflecting a 27% to 32% increase over Resort Reported EBITDA in Fiscal 2012. Our Real Estate segment results are impacted in any given year by the timing and mix of real estate sold and closed. For Fiscal 2013, we are estimating Real Estate Reported EBITDA of negative $9 million to negative $17 million, including approximately $2 million of non-cash stock-based compensation expense. Included in these estimates are Net Real Estate Cash Flow of $15-$25 million (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). Net income attributable to Vail Resorts, Inc. is expected to be in a range of $50 to $60 million in Fiscal 2013.”
Vail Resorts, Inc. | ||||||||||||||
Mountain Segment Operating Results and Skier Visits | ||||||||||||||
(In thousands, except Effective Ticket Price) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Percentage | Twelve Months Ended | Percentage | |||||||||||
July 31, | Increase | July 31, | Increase | |||||||||||
2012 | 2011 | (Decrease) | 2012 | 2011 | (Decrease) | |||||||||
Net Mountain revenue: | ||||||||||||||
Lift tickets | $ | 89 | $ | — | nm | $ | 342,500 | $ | 342,514 | 0.0 | % | |||
Ski school | 1 | — | nm | 84,292 | 83,818 | 0.6 | % | |||||||
Dining | 6,619 | 5,808 | 14.0 | % | 68,376 | 68,052 | 0.5 | % | ||||||
Retail/rental | 20,814 | 18,602 | 11.9 | % | 181,772 | 174,339 | 4.3 | % | ||||||
Other | 18,891 | 17,307 | 9.2 | % | 89,668 | 83,468 | 7.4 | % | ||||||
Total Mountain net revenue | $ | 46,414 | $ | 41,717 | 11.3 | % | $ | 766,608 | $ | 752,191 | 1.9 | % | ||
Mountain operating expense: | ||||||||||||||
Labor and labor-related benefits | $ | 29,277 | $ | 27,207 | 7.6 | % | $ | 203,515 | $ | 198,659 | 2.4 | % | ||
Retail cost of sales | 12,069 | 10,320 | 16.9 | % | 79,657 | 71,961 | 10.7 | % | ||||||
Resort related fees | 908 | 1,037 | (12.4) | % | 39,557 | 39,476 | 0.2 | % | ||||||
General and administrative | 23,807 | 22,030 | 8.1 | % | 112,879 | 104,848 | 7.7 | % | ||||||
Other | 24,262 | 23,276 | 4.2 | % | 132,970 | 125,422 | 6.0 | % | ||||||
Total Mountain operating expense | $ | 90,323 | $ | 83,870 | 7.7 | % | $ | 568,578 | $ | 540,366 | 5.2 | % | ||
Mountain equity investment (loss) income, net | (66) | 18 | (466.7) | % | 878 | 1,342 | (34.6) | % | ||||||
Mountain Reported EBITDA | $ | (43,975) | $ | (42,135) | (4.4) | % | $ | 198,908 | $ | 213,167 | (6.7) | % |
Twelve Months Ended | Percentage | |||||
July 31, | Increase | |||||
2012 | 2011 | (Decrease) | ||||
Skier Visits | ||||||
Colorado Resorts | 4,853 | 5,329 | (8.9) | % | ||
Tahoe Resorts | 1,291 | 1,662 | (22.3) | % | ||
Total skier visits |