Industry News
Yesterday, Vail Resorts, Inc. reported its fiscal 2024 fourth quarter and full-year results, revealing a decline in net income to $230.4 million, down from $268.1 million in the previous year.
Despite challenging weather conditions and industry normalization post-COVID, Vail Resorts demonstrated resilience through its advance commitment strategy. The company saw a 9.5% decrease in skier visitation, primarily due to unfavorable conditions across North American and Australian resorts.
Mountain Segment
• Total lift revenue increased by $21.9 million (1.5%) to $1,442.8 million
• Pass revenue increased by 9.4%
• Non-pass revenue decreased by 10.7%
• Ski school revenue increased by $17.3 million (6.0%)
• Dining revenue increased by $2.9 million (1.3%)
• Retail/rental revenue decreased by $44.3 million (12.3%)
• Operating expense increased by $24.4 million (1.4%)
• Mountain Reported EBITDA decreased by $20.5 million (2.5%)
Lodging Segment
• Lodging segment net revenue decreased by $3.3 million (1.0%)
• Operating expense decreased by $14.1 million (4.5%)
• Lodging Reported EBITDA increased by $10.8 million (87.6%)
Resort – Combination of Mountain and Lodging Segments
• Resort net revenue decreased slightly by $0.8 million to $2,880.5 million
• Resort Reported EBITDA decreased by $9.7 million (1.2%) to $825.1 million
Total Performance
• Total net revenue decreased by $4.2 million (0.1%) to $2,885.2 million
• Net income attributable to Vail Resorts, Inc. decreased $37.7 million to $230.4 million
Season Pass Sales
• Pass product sales for the 2024/2025 North American ski season (through September 20, 2024) decreased by approximately 3% in units. Next season’s passes are, on average, 8% more expensive than 2023-24.
• Pass product sales increased approximately 3% in sales dollars compared to the prior year period
Key Highlights for Skiers
• Challenging weather conditions impacted North American and Australian resorts
• Snowfall across western U.S. resorts was down 28% from the previous year
• Eastern U.S. resorts experienced limited natural snow and variable temperatures
• Australian resorts saw a 28% decline in snowfall, 44% below the ten-year average
CEO Kirsten Lynch highlighted the stability of the company’s performance, noting that Resort Reported EBITDA remained consistent with the prior year, excluding the impact of the Crans-Montana acquisition. Strong growth in ancillary spending per visit across ski school, dining, and rental businesses helped offset the decline in visitation.
“Vail Resorts results for the year highlight the stability and resilience of our advance commitment strategy. Skier visitation declined 9.5% compared to the prior year, driven by unfavorable conditions across our resorts in North America and Australia, combined with the impact of broader industry normalization post-COVID following record visitation in North America during the 2022/2023 ski season. In North America, snowfall across our western resorts was down 28% from the prior year and our eastern U.S. resorts experienced limited natural snow and variable temperatures. Despite industry normalization and challenging conditions, Resort Reported EBITDA, excluding the impact of the Crans-Montana acquisition, remained consistent with prior year results. Performance was supported by strong growth in ancillary spending per visit across ski school, dining, and rental businesses at our resorts, and by strong delivery of the guest experience and cost discipline across our operations.”
– Kristen Lynch
Looking ahead, Vail Resorts announced a $100 million multi-year resource efficiency transformation plan to create organizational effectiveness and scale for operating leverage. The company expects to achieve $100 million in annualized savings by the end of fiscal 2026.
For the upcoming 2024/2025 North American ski season, pass product sales through September 20, 2024, showed a 3% decrease in units but a 3% increase in sales dollars compared to the prior year period.
Vail Resorts provided its fiscal 2025 outlook, projecting net income attributable to Vail Resorts, Inc. to be between $224 million and $300 million. Resort Reported EBITDA expected to range from $838 million to $894 million.
The company also declared a quarterly cash dividend of $2.22 per share and repurchased approximately 0.1 million shares during the quarter.
