Industry News
Vail Resorts yesterday announced its financial results for the third quarter of fiscal 2024, which ended on April 30. Despite challenging weather conditions, the company reported significant growth in key areas and provided updates on its fiscal 2024 guidance and early season pass sales.
Key Highlights:
- Net Income and EBITDA Growth: Vail Resorts reported a net income of $362.0 million for the third quarter, up from $325.0 million in the same period last year. Resort Reported EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also increased to $654.4 million, compared to $623.3 million in the prior year.
- Season Pass Sales: Early season pass sales for the 2024/2025 North American ski season saw a 5% decrease in units but a 1% increase in sales dollars compared to the previous year. This indicates a strong commitment from returning pass holders, despite a decline in new pass holders.
- Acquisition of Crans-Montana: Vail Resorts completed the acquisition of Crans-Montana Mountain Resort in Switzerland, marking its second European ski resort. The company plans to invest approximately CHF 30 million over the next five years to enhance the guest experience at Crans-Montana.
- Capital Investments: The company announced a capital plan of approximately $219 million to $224 million for calendar year 2024. This includes investments in My Epic Gear, a new premium rental service, and improvements at Crans-Montana.
Mountain Segment
- Total Lift Revenue: Increased by $35.6 million (5.0%) to $745.7 million, driven by a 13.7% increase in pass product revenue, despite a 5.7% decrease in non-pass product lift revenue due to lower skier visitation and post-COVID normalization.
- Ski School Revenue: Increased by $16.1 million (11.1%), benefiting from higher guest spending per visit.
- Dining Revenue: Increased by $7.8 million (7.7%), also due to increased guest spending per visit.
- Retail/Rental Revenue: Decreased by $11.7 million (8.7%), with retail sales down $6.6 million (10.0%) and rental sales down $5.1 million (7.5%), primarily due to exiting certain leased store operations and decreased skier visitation.
- Operating Expense: Increased by $20.7 million (3.8%), mainly due to higher general and administrative expenses and variable expenses linked to increased revenue.
Lodging Segment
- Net Revenue: Decreased by $6.0 million (6.8%), primarily due to a $3.0 million (7.9%) decrease in revenue from managed condominium rooms and a $2.2 million (17.4%) decrease in other revenues, driven by reduced inventory and decreased skier visitation.
- Operating Expense: Decreased by $5.4 million (7.5%), mainly due to lower staffing needs and reduced labor hours.
Total Performance
- Total Net Revenue: Increased by $44.9 million (3.6%) to $1,283.3 million.
- Net Income: Increased to $362.0 million ($9.54 per diluted share) from $325.0 million ($8.18 per diluted share) in the prior year, including $37 million in pre-tax expenses related to the Park City resort lease and $1.0 million in after-tax acquisition-related expenses.
CEO’s Comments:
Kirsten Lynch, CEO of Vail Resorts, highlighted the company’s resilience despite unfavorable weather conditions. She noted that while lift ticket visitation did not return to typical levels, the company’s season pass program and strong ancillary spending (such as ski school, dining, and rentals) helped achieve record revenue and EBITDA levels.
Conclusion:
Vail Resorts continues to demonstrate strong financial performance and strategic growth, even in the face of weather-related challenges. The company’s focus on enhancing the guest experience and expanding its portfolio with acquisitions like Crans-Montana positions it well for future success.
For more detailed financial information, readers can refer to the full earnings report on the Vail Resorts investor relations website.
