Vail Resorts Reports Fiscal 2012 Fourth Quarter and Full Year Results and Provides 2013 Outlook

BROOMFIELD, Colo., Sept. 25, 2012 /PRNewswire/ -- Vail Resorts, Inc. (NYSE:  MTN) today reported results for the fourth quarter and fiscal year ended July 31, 2012 and provided its outlook for the fiscal year ending July 31, 2013.

Highlights

  • Resort Reported EBITDA (which includes the Company's Mountain and Lodging segments) was $205.3 million for Fiscal 2012 reflecting a decline of 7.5%, or $16.7 million, compared with the same period in the prior year.  When adjusting for acquisition and litigation settlement related items in both current and prior year, Fiscal 2012 Resort Reported EBITDA declined 3.8% from Fiscal 2011.
  • Net income attributable to Vail Resorts, Inc. of $16.5 million in Fiscal 2012 declined from $34.5 million in Fiscal 2011.
  • Sales of season passes through September 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 Kirkwood were owned in both periods.  Based on historical patterns, approximately 60% of our total sales are made by this date.
  • During the 2012 fiscal year, we closed on thirteen Ritz-Carlton Residence units and seven One Ski Hill Place units, with Real Estate net revenue of $47.2 million in Fiscal 2012.

Commenting on the Company's Fiscal 2012 results, Rob Katz, Chief Executive Officer said, "I am very pleased with our fourth quarter and fiscal year results. In the fourth quarter, our Resort Reported EBITDA was improved compared to the prior year, reflecting enhanced summer guest visitation. For the full fiscal year, I am very proud of our results given that the 2011/ 2012 ski season was the most challenging winter in the history of the United States ski industry and our performance demonstrated the resiliency of our business model.  In particular, the strength of our growing season pass business and the comprehensive and differentiated experience we provide at our resorts stabilized our revenues, in the face of very challenging weather." 

Katz added, "In the Mountain Segment, net revenues actually increased 1.9% for Fiscal 2012 despite total skier visits declining 12.1% compared to Fiscal 2011.  Several key factors contributed to our Mountain Segment results: the strength of season pass sales, which were up $15.8 million or 13.2% in revenue over a year ago; an increase in our effective ticket price, excluding season passes, of 9.3%; enhanced consumer spending resulting in double-digit growth in yield-per-skier visit in our ski school and dining operations and increased international visitation of approximately 2%.  Each of these factors is a positive indicator as we look towards the upcoming season."

Regarding Lodging, Katz said, "Our Lodging business was also impacted by the decline in skier visitation during the season, but mitigated that impact through increased average daily rate ("ADR") and a higher mix of luxury room nights as well as strong summer operations, particularly at our Grand Teton Lodge Company operations, including the addition of the Flagg Ranch National Park concession, all resulting in an increase in total Lodging revenues (excluding payroll cost reimbursement related to managed hotel properties) of 1.1% compared to the prior fiscal year."

Katz added, "Resort Reported EBITDA declined 3.8% from Fiscal 2011 when adjusting for one time items (including the timing of the Northstar, Kirkwood and Skiinfo acquisitions and a prior year litigation settlement).  We feel this modest decline is particularly noteworthy when considering that Fiscal 2011 was an all-time record snowfall year and Fiscal 2012 was the lowest snowfall season in our history."

Turning to Real Estate, Katz said, "Sales of units at The Ritz-Carlton Residences, Vail and One Ski Hill Place in Breckenridge continue to demonstrate strong momentum and met our expectations for the year.  In the last quarter of Fiscal 2012, we closed on four units at The Ritz-Carlton Residences, Vail, and one unit at One Ski Hill Place in Breckenridge.  For the entire fiscal year, we have closed on thirteen units at The Ritz-Carlton Residences, Vail, and seven units at One Ski Hill Place.  Real Estate net revenue in Fiscal 2012 was $47.2 million."

Katz added, "Our balance sheet remains in a very strong position.  In Fiscal 2012, we generated $185.4 million of operating cash flow and ended the fiscal year with $46.1 million of cash on hand.  In the fourth quarter of fiscal 2012, in addition to paying out our quarterly dividend, we repurchased $22.5 million of stock at an average price of $46.78.  As of July 31, 2012, Net Debt was 2.3 times trailing twelve months Total Reported EBITDA, and we had no borrowings under the revolver component of our senior credit facility. Additionally, we have virtually no principal payments due on debt until 2019."

Katz concluded, "I am pleased to announce that our Board of Directors has declared a quarterly cash dividend on Vail Resorts' common stock of $0.1875 per share, payable on October 25, 2012 to shareholders of record on October 10, 2012."

Operating Results

A complete Management's Discussion and Analysis of Financial Condition and Results of Operations can be found in the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 2012 filed with the Securities and Exchange Commission.  The following are segment highlights:

Mountain Segment

  • 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.

Lodging Segment

  • Lodging segment net revenue was $210.6 million for Fiscal 2012 compared to $214.7 million for the prior fiscal year, a 1.9% decrease.  Excluding payroll cost reimbursement related to managed hotel properties, Total Lodging revenues increased 1.1%.
  • For Fiscal 2012, ADR increased 6.1% and revenue per available room ("RevPAR") decreased 3.7% at the Company's owned hotels and managed condominiums compared to the same period in the prior year.
  • Lodging Reported EBITDA was $6.4 million for Fiscal 2012 compared to $8.8 million for the same period in the prior year, a decrease of 27.4%.  Lodging Reported EBITDA for the first fiscal quarter of 2011 included a $2.9 million benefit from a legal settlement.  Excluding the settlement, Lodging Reported EBITDA increased 9.0% in Fiscal 2012.
  • Lodging Reported EBITDA includes $1.7 million of stock-based compensation expense for Fiscal 2012 compared to $2.1 million in Fiscal 2011. 

Revenue from owned hotel rooms and managed condominiums increased by 4.2% and 3.1% respectively in Fiscal 2012, despite a decrease in winter transient guest visitation as well as lower levels of group business at Keystone Resort.  These increases were driven by an ADR increase of 4.8% at our owned hotels with a RevPar increase of nearly 1.0%, while our managed condominium ADR increase was 7.9% supported by a higher mix of luxury properties including increased units at The Ritz-Carlton Residences, Vail and One Ski Hill Place in Breckenridge. Additionally, summer operations at Grand Teton Lodge Company were strong in Fiscal 2012 with room revenues increasing $1.1 million from prior year, driven by higher ADR as well as improved weather conditions in May and June 2012 compared to the prior fiscal year and the addition of Flagg Ranch (awarded National Park Service concessionaire contract in November 2011).

Resort – Combination of Mountain and Lodging Segments

  • Resort net revenue was $977.2 million for Fiscal 2012 compared to $966.8 million in the prior fiscal year, a 1.1% increase.
  • Resort Reported EBITDA was $205.3 million for the Fiscal 2012 compared to $221.9 million in the same period in the prior year.  Adjusted for the acquisition and legal settlement items described above, Resort Reported EBITDA decreased 3.8%.

Real Estate Segment

  • Real Estate segment net revenue was $47.2 million for Fiscal 2012 compared to $200.2 million in the prior fiscal year.
  • Real Estate Reported EBITDA was a negative $16.0 million for Fiscal 2012 compared to a negative $5.0 million in the prior year.   
  • Real Estate Reported EBITDA includes $2.6 million of stock-based compensation expense for Fiscal 2012 compared to $3.3 million in Fiscal 2011. 

In Fiscal 2012, we closed on thirteen condominium units at The Ritz-Carlton Residences, Vail ($33.2 million of revenue with an average selling price per unit of $2.6 million and an average price per square foot of $1,146) and seven condominium units at One Ski Hill Place ($8.6 million of revenue with an average selling price per unit of $1.2 million and an average price per square foot of $975).  The large year-over-year variance in net revenue and EBITDA is driven by the Fiscal 2011 closing of 71 condominium units at The Ritz-Carlton Residences, Vail for $186.4 million, which included 45 units sold to The Ritz-Carlton Development Company at the completion of construction on the project.

Total Performance

  • Total net revenue was $1,024.4 million for Fiscal 2012 compared to $1,167.0 million in the prior year, a 12.2% decrease.
  • Net income attributable to Vail Resorts, Inc. was $16.5 million, or $0.45 per diluted share, for Fiscal 2012 compared to net income attributable to Vail Resorts, Inc. of $34.5 million, or $0.94 per diluted share, in the prior year.  In Fiscal 2011, net income attributable to Vail Resorts, Inc. included a pretax charge of $7.4 million, or $4.6 million after tax, for extinguishment of debt related to the Company's successful bond refinancing.

Dividends and Share Repurchases

In Fiscal 2012, total dividends paid were $0.675 per share, after increasing the dividend amount by 25% in the third fiscal quarter from $0.15 to $0.1875 per share.

In the fourth quarter of Fiscal 2012, the Company repurchased 480,930 shares at an average price of $46.78 for a total of $22.5 million. Since inception of the share repurchase program, the Company has repurchased 4,949,111 shares of stock, at an average share price of $39.04 for a total amount of $193.2 million. There are approximately 1.1 million shares remaining available for repurchase under the current authorization.

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.  To date, we have sold approximately 178,000 passes for the upcoming 2012/2013 ski season. We have seen strong gains across all our key products and geographies, including from both our destination and regional guests, with particularly strong momentum in Tahoe, with the addition of Kirkwood and the Tahoe Local Pass, and in international markets.  We anticipate seeing continued strength in the Tahoe market and from Europe, particularly with the recently announced addition of 3 days of skiing at Verbier to our Epic Pass. While we believe that a portion of the significant increase in sales to date is due to some timing shifts, we hope to maintain the vast majority of these absolute gains through the rest of the selling period, with a resulting moderation of the ultimate percentage increase in the program.  Based on historical purchasing patterns, approximately 60% of our passes have typically been sold at this point in the selling process. It is also important to remember that all of the pass sales for the upcoming 2012/2013 ski season will be recorded as revenue in Fiscal 2013, over the course of the 2012/2013 ski season. This season pass sales performance provides a strong, pre-season indicator as we head into the 2012/2013 ski season."

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."  

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)

$

250,000



$

260,000


Lodging Reported EBITDA (2)


8,000




13,000


Resort Reported EBITDA (3)


260,000




270,000


Real Estate Reported EBITDA  (4)


(17,000)




(9,000)


Total Reported EBITDA


243,000




261,000


Depreciation and amortization


(127,500)




(129,000)


Loss on disposal of fixed assets, net


(750)




(1,250)


Investment income


500




600


Interest expense, net


(34,000)




(34,000)


Income before provision for income taxes


81,250




97,350


Provision for income taxes


(31,340)




(37,440)


Net income


49,910




59,910


Net loss attributable to the noncontrolling interests


90




90


Net income attributable to Vail Resorts, Inc.

$

50,000



$

60,000




(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

For further discussion of the contents of this press release, please listen to our live webcast today at 11:00 am ET, available at www.vailresorts.com in the Investor Relations section.

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 mountain resorts in Colorado, and Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada, 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, Inc. 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.

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; and implications arising from new Financial Accounting Standards Board ("FASB")/governmental legislation, rulings or interpretations. 

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, except as may be required by law.  Investors are also directed to other risks discussed in documents filed by us with the Securities and Exchange Commission.

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.  Please see"Reconciliation of Non-GAAP Financial Measures" below for more information  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. 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.

 

Vail Resorts, Inc.



Consolidated Statements of Operations



(In thousands, except per share amounts)



(Unaudited)








Twelve Months Ended




July 31,




2012

2011



Net revenue:





Mountain

$

766,608


$

752,191


Lodging

210,623


214,658


Real Estate

47,163


200,197


Total net revenue

1,024,394


1,167,046


Segment operating expense:



Mountain

568,578


540,366


Lodging

204,270


205,903


Real Estate

63,170


205,232


Total segment operating expense

836,018


951,501


Other operating expense:



Depreciation and amortization

(127,581)


(117,957)


Loss on disposal of fixed assets, net

(1,464)


(555)


Asset impairment charge

--


(2,561)


Income from operations

59,331


94,472


Mountain equity investment income, net

878


1,342


Investment income, net

469


719


Interest expense, net

(33,586)


(33,641)


Loss on extinguishment of debt

--


(7,372)


Income before provision for income taxes

27,092


55,520


Provision for income taxes

(10,701)


(21,098)


Net income

$

16,391


$

34,422


Net loss attributable to noncontrolling interests

62


67


Net income attributable to Vail Resorts, Inc.

$

16,453


$

34,489





Per share amounts:



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

$

0.46


$

0.96


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

$

0.45


$

0.94


Cash dividends declared per share

$

0.675


$

0.15









Weighted Average shares outstanding:







Basic


36,004



36,009


Diluted


36,673



36,754









Other Data (unaudited):







Mountain Reported EBITDA

$

198,908


$

213,167


Lodging Reported EBITDA


6,353



8,755


Resort Reported EBITDA


205,261



221,922


Real Estate Reported EBITDA


(16,007)



(5,035)


Total Reported EBITDA

$

189,254


$

216,887









Mountain stock-based compensation

$

7,614


$

$7,140


Lodging stock-based compensation


1,744



2,088


Resort stock-based compensation


9,358



9,228


Real Estate stock-based compensation


2,641



3,265


Total stock-based compensation

$

11,999


$

12,493













Vail Resorts, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)


Three Months Ended


July 31,


2012

2011

Net revenue:



Mountain

$

46,414


$

41,717


Lodging

54,751


54,388


Real Estate

12,379


12,568


Total net revenue

113,544


108,673


Segment operating expense:



Mountain

90,323


83,870


Lodging

54,773


56,891


Real Estate

16,691


16,516


Total segment operating expense

161,787


157,277


Other operating expense:



Depreciation and amortization

(32,335)


(29,012)


Loss on disposal of fixed assets, net

(341)


(212)


Loss from operations

(80,919)


(77,828)


Mountain equity investment (loss) income, net

(66)


18


Investment income, net

113


141


Interest expense, net

(8,360)


(8,531)


Loss on extinguishment of debt

--


(757)


Loss before benefit for income taxes

(89,232)


(86,957)


Benefit for income taxes

35,408


33,042


Net loss

$

(53,824)


$

(53,915)


Net loss attributable to noncontrolling interests

28


9


Net loss attributable to Vail Resorts, Inc.

$

(53,796)


$

(53,906)





Per share amounts:



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

$

(1.50)


$

(1.49)


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

$

(1.50)


$

(1.49)


Cash dividends declared per share

$

0.1875


$

0.15









Weighted Average shares outstanding:







Basic


35,915



36,069


Diluted


35,915



36,069









Other Data (unaudited):







Mountain Reported EBITDA

$

(43,975)


$

(42,135)


Lodging Reported EBITDA


(22)



(2,503)


Resort Reported EBITDA


(43,997)



(44,638)


Real Estate Reported EBITDA


(4,312)



(3,948)


Total Reported EBITDA

$

(48,309)


$

(48,586)









Mountain stock-based compensation

$

1,668


$

1,740


Lodging stock-based compensation


386



532


Resort stock-based compensation


2,054



2,272


Real Estate stock-based compensation


596



883


Total stock-based compensation

$

2,650


$

3,155





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


6,144


6,991

(12.1)

%








Effective Ticket Price

$

55.75

$

48.99

13.8

%



Vail Resorts, Inc.

Lodging Operating Results

(In thousands, except ADR and RevPAR)

(Unaudited)







Three Months Ended

Percentage

Twelve Months Ended

Percentage


July 31,

Increase

July 31,

Increase


2012

2011

(Decrease)

2012

2011

(Decrease)

Lodging net revenue:















     Owned hotel rooms

$

14,239


$

12,095


17.7

%

$

45,131

$

43,327

4.2

%

     Managed condominium rooms


6,412



6,289


2.0

%


40,473


39,239

3.1

%

     Dining


9,625



8,733


10.2

%


29,980


29,885

0.3

%

     Transportation


1,972



1,799


9.6

%


18,860


19,810

(4.8)

%

     Golf


7,523



7,293


3.2

%


15,159


14,461

4.8

%

     Other


11,234



10,881


3.2

%


38,383


39,301

(2.3)

%


$

51,005


$

47,090


8.3

%

$

187,986

$

186,023

1.1

%

     Payroll cost reimbursement


3,746



7,298


(48.7)

%


22,637


28,635

(20.9)

%

Total Lodging net revenue

$

54,751


$

54,388


0.7

%

$

210,623

$

214,658

(1.9)

%

Lodging operating expense:















     Labor and labor-related benefits

$

24,311


$

22,500


8.0

%

$

88,777

$

86,584

2.5

%

     General and administrative


6,666



8,659


(23.0)

%


29,280


31,265

(6.3)

%

     Other


20,050



18,434


8.8

%


63,576


59,419

7.0

%


$

51,027


$

49,593


2.9

%

$

181,633

$

177,268

2.5

%

    Reimbursed payroll costs


3,746



7,298


(48.7)

%


22,637


28,635

(20.9)

%

Total Lodging operating expense

$

54,773


$

56,891


(3.7)

%

$

204,270

$

205,903

(0.8)

%

Lodging Reported EBITDA

$

(22)


$

(2,503)


99.1

%

$

6,353

$

8,755

(27.4)

%
















Owned hotel statistics:















     ADR

$

191.63


$

187.89


2.0

%

$

205.02

$

195.69

4.8

%

     RevPAR

$

107.84


$

96.86


11.3

%

$

114.73

$

114.03

0.6

%
















Managed condominium statistics:















     ADR

$

196.18


$

209.54


(6.4)

%

$

320.30

$

296.74

7.9

%

     RevPAR

$

31.84


$

34.99


(9.0)

%

$

78.65

$

83.54

(5.9)

%
















Owned hotel and managed condominium statistics (combined):















     ADR

$

193.13


$

195.31


(1.1)

%

$

260.04

$

245.03

6.1

%

     RevPAR

$

60.04


$

58.69


2.3

%

$

90.36

$

93.79

(3.7)

%



Key Balance Sheet Data

(In thousands)

(Unaudited)






As of July 31,



2012


2011

Real estate held for sale and investment


$

237,668


$

273,663

Total Vail Resorts, Inc. stockholders' equity


$

802,311


$

829,723








Long-term debt


$

489,775


$

490,698

Long-term debt due within one year



990



1,045

Total debt



490,765



491,743

Less: cash and cash equivalents



46,053



70,143

Net debt


$

444,712


$

421,600

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, 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. 

Presented below is a reconciliation of Total Reported EBITDA to net income attributable to Vail Resorts, Inc. calculated in accordance with GAAP for the three and twelve months ended July 31, 2012 and 2011.


(In thousands)


(Unaudited)


Three Months Ended


Twelve Months Ended


 July 31,


 July 31,


2012


2011


2012


2011

Mountain Reported EBITDA

$

(43,975)



$

(42,135)



$

198,908



$

213,167


Lodging Reported EBITDA


(22)




(2,503)




6,353




8,755


Resort Reported EBITDA*


(43,997)




(44,638)




205,261




221,922


Real Estate Reported EBITDA


(4,312)




(3,948)




(16,007)




(5,035)


Total Reported EBITDA


(48,309)




(48,586)




189,254




216,887


Depreciation and amortization


(32,335)




(29,012)




(127,581)




(117,957)


Loss on disposal of fixed assets, net


(341)




(212)




(1,464)




(555)


Asset impairment charge


--




--




--




(2,561)


Investment income, net


113




141




469




719


Interest expense, net


(8,360)




(8,531)




(33,586)




(33,641)


Loss on extinguishment of debt


--




(757)




--




(7,372)


(Loss) income before benefit (provision) for income taxes


(89,232)




(86,957)




27,092




55,520


Benefit (provision) for income taxes


35,408




33,042




(10,701)




(21,098)


Net (loss) income


(53,824)




(53,915)




16,391




34,422


Net loss attributable to noncontrolling interests


28




9




62




67


Net (loss) income attributable to Vail Resorts, Inc.

$

(53,796)



$

(53,906)



$

16,453



$

34,489


* Resort represents the sum of Mountain and Lodging

Presented below is a reconciliation of Net Debt to Long-term Debt and the calculation of Net Debt to Total Reported EBITDA as of and for the twelve months ended July 31, 2012.


(In thousands)


(Unaudited)


As of July 31, 2012

Long-term debt

$

489,775


Long-term debt due within one year


990


Total debt


490,765


Less: cash and cash equivalents


46,053


Net Debt

$

444,712






Net Debt to Total Reported EBITDA


2.3

x

 

 

SOURCE Vail Resorts, Inc.



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