Vail Resorts Results

Vail Resorts Reports Fiscal 2016 Third Quarter Results

Net income attributable to Vail Resorts, Inc. was $157.6 million for the third quarter of fiscal 2016, representing an 18.2% increase compared to the same period in the prior year.

Vail Resorts

Vail Resorts, Inc. (NYSE:  MTN) today reported results for its third quarter ended April 30, 2016, as well as the Company's results of its early season pass sales for the 2016/2017 U.S. ski season.

Highlights

  • Net income attributable to Vail Resorts, Inc. was $157.6 million for the third quarter of fiscal 2016, representing an 18.2% increase compared to the same period in the prior year. 
  • Resort Reported EBITDA was $306.6 million for the third quarter of fiscal 2016, an increase of 14.7% compared to the same period in the prior year, including $3.5 million of Lodging Reported EBITDA associated with the termination of the Company's management agreement with respect to the Half Moon Resort in Jamaica. 
  • Total lift revenue for the third quarter of fiscal 2016 increased 17.4%, while total skier visits increased 13.9% compared to the same period in the prior year. 
  • The Company increased its fiscal 2016 guidance range and is now expecting Resort Reported EBITDA to be between $448 million and $454 million. 
  • Season pass sales for the 2016/2017 U.S. ski season were up approximately 29% in units and approximately 34% in sales dollars through May 31, 2016 compared with the prior year period ended June 2, 2015.

Commenting on the Company's fiscal 2016 third quarter results, Rob Katz, Chief Executive Officer said, "We are very pleased with our performance in the quarter and for the entirety of the 2015/2016 U.S. ski season. Our results continued to demonstrate the strength of our season pass products, the momentum we have created by drawing destination guests to our resorts through more sophisticated marketing efforts and the benefit from good conditions throughout the season in each of our western resort areas. Mountain revenue increased 14.7% compared to the same period in the prior year, with lift revenue growing 17.4%, driven by strong season pass revenue and an increase in effective ticket price ("ETP") excluding season pass, of 8.2%. Guest spending was strong across the business in the third quarter with ski school revenue increasing 12.2% and dining revenue increasing 15.9% compared to the same period in the prior year. Our first season operating the new Park City resort proved to be a success, and results were in line with our ambitious expectations for what is now the largest ski resort in the U.S. In addition, our Tahoe resorts benefited from dramatically better conditions throughout the ski season and achieved record revenue levels in all key business lines. Our Colorado resorts continued to deliver outstanding results, with growth in visitation and revenue above our record prior year. We did experience a modest decline in total international visitation compared to the prior year, however, we did see strong growth from Australia, reflecting the benefit of our recent Perisher acquisition and the introduction of a season pass which provides access to Perisher and our U.S. resorts, called the Epic Australia Pass."

Katz continued, "This season highlighted the importance and success of our more sophisticated marketing efforts. We continued to see strong growth in our season pass program with season pass revenue increasing 18.9% year-to-date through the third fiscal quarter, excluding Perisher, compared to the prior year period, and represented approximately 41% of our total lift revenue. Our growth in season pass sales was primarily driven from increased sales to our destination guests who increasingly appreciate our network of resorts and the compelling value proposition our season pass products offer for their ski vacations, while also benefitting from our improved ability to segment our guests and personalize our messages to them. We are also driving our guests' purchases through our own online distribution channels, providing our guests with the confidence that they are getting the best value and ensuring we maintain a strong relationship with them. This was particularly helpful in Park City as we build brand awareness and loyalty for a completely new experience at the resort. At the same time, while we benefit from consistent price increases on lift tickets and season passes, we are offering guests a wide variety of products to access our mountains. This provides guests access to real savings for their vacations by purchasing in advance, purchasing multiple ski days or purchasing packages of products. Vail Mountain is a great example of this strategy, where the average price per day across all adult visitors was approximately $86, excluding complimentary tickets. This is far lower than the single day peak price of $175, which is purchased by a relatively small share of our visitors."

Regarding Lodging, Katz said, "Our Lodging results were strong for the third fiscal quarter with both occupancy and rate increases compared to the same period of the prior year. Revenue (excluding payroll cost reimbursements) increased 7.6% compared to the prior year period, and revenue per available room ("RevPAR") increased 7.2%. Our results reflect robust demand at our lodging properties across each of our geographies. During the third fiscal quarter, we terminated the management agreement with respect to the Half Moon Resort in Jamaica, resulting in a $3.5 million termination fee included in Lodging Revenue and received $4.5 million to repay the unamortized "key money" investment in the resort. The Company generated approximately $0.6 million of Resort Reported EBITDA from Half Moon in fiscal 2015 and will be forgoing approximately $0.2 million of expected Resort Reported EBITDA as a result of not managing the property for the remainder of fiscal 2016."

Katz continued, "Resort Reported EBITDA was $306.6 million for the fiscal quarter, an increase of 14.7% over the same period in the prior year. Resort EBITDA Margin for the quarter was 47.5%, an increase of 30 basis points."

Regarding Real Estate, Katz said, "We continue to see momentum in our resort real estate markets. During the fiscal quarter, we closed on two condominium units at Crystal Peak Lodge in Breckenridge and currently have two units at The Ritz-Carlton Residences, Vail under contract, which we expect to close in our fourth fiscal quarter."

Katz commented, "Given the strong performance to date this year, we expect that our fiscal 2016 Resort Reported EBITDA will finish the year between $448 million and $454 million, an increase of 7.3% to 8.7% relative to the midpoint of our original guidance range for fiscal 2016 issued in September 2015 and an increase of 28.2% to 29.9% compared to the prior year, excluding the non-cash gain on the Park City litigation settlement in fiscal 2015. We are also increasing our Resort EBITDA Margin guidance to 28.6% at the midpoint of our updated range, which would be a 630 basis point increase in margin over two years."

Katz continued, "Our balance sheet remains strong and the business continues to generate robust cash flow. We ended the quarter with $68.6 million of cash on hand and no borrowings under the revolver portion of our credit facility as we have fully paid down borrowings related to the Perisher acquisition. As of April 30, 2016, we had available borrowing capacity under the revolver component of our credit facility of $327.4 million. Our Net Debt, including the capitalized Canyons obligation, was 1.2 times trailing twelve months Total Reported EBITDA. I am also very pleased to announce that our Board of Directors has declared a quarterly cash dividend on Vail Resorts' common stock. The quarterly dividend will be $0.81 per share of common stock and will be payable on July 13, 2016 to shareholders of record on June 28, 2016. We repurchased $13.8 million of stock during the quarter at an average price of $127.59."

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 third quarter ended April 30, 2016 filed today with the Securities and Exchange Commission. The following are segment highlights:

Mountain Segment

  • Total lift revenue increased $49.5 million, or 17.4%, compared to the same period in the prior year, to $334.8 million, driven by a $33.2 million, or 18.5%, increase in lift revenue, excluding season pass revenue, as well as a $16.3 million, or 15.4%, increase in season pass revenue. 
  • Ski school revenue increased by $8.1 million, or 12.2%, and dining revenue increased $7.0 million, or 15.9%, compared to the same period in the prior year, primarily due to the strong results at our Colorado, Tahoe and Park City resorts. The increase in dining revenue was further bolstered by the opening of the new Miners' Camp restaurant and the upgrade of the Red Pine Lodge and Summit House at Park City. 
  • Retail/rental revenue increased $8.3 million, or 11.7%, compared to the same period in the prior year, primarily due to increases in retail sales in Tahoe and increases in rental revenue at stores proximate to our resorts in Tahoe and Colorado. 
  • Operating expense increased $37.3 million, or 15.2%, compared to the three months ended April 30, 2015, including incremental operating expenses of $5.7 million from Perisher. 
  • Mountain Reported EBITDA increased $36.3 million, or 14.2%, compared to the same period in the prior year, which includes $3.3 million of stock-based compensation expense compared to $2.6 million in the same period in the prior year.

Lodging Segment

  • Lodging segment net revenue (excluding payroll cost reimbursements) increased $4.9 million, or 7.6%, as compared to the same period in the prior year. 
  • Occupancy increased 2.0 percentage points and RevPAR increased 7.2% at the Company's owned hotels and managed condominiums compared to the same period in the prior year. 
  • Included in net revenue was the recognition of a $3.5 million termination fee (included in other revenue) associated with the termination of the management agreement with respect to the Half Moon Resort in Montego Bay, Jamaica. 
  • Lodging Reported EBITDA increased $2.9 million, or 23.1%, compared to the same period in the prior year, which includes $0.8 million of stock-based compensation expense as compared to $0.6 million in the same period in the prior year.

Resort - Combination of Mountain and Lodging Segments

  • Resort net revenue increased $78.9 million, or 13.9%, to $645.7 million as compared to the same period in the prior year. 
  • Resort Reported EBITDA was $306.6 million, an increase of $39.2 million, or 14.7%, compared to the same period in the prior year.

Real Estate Segment

  • Real Estate segment net revenue decreased $10.7 million, or 86.1%, as compared to the same period in the prior year. 
  • Net Real Estate Cash Flow was $0.6 million, a decrease of $12.1 million from the same period in the prior year, primarily resulting from higher condominium closings and the sale of a development land parcel in the same period in the prior year. 
  • Real Estate Reported EBITDA was a loss of $1.3 million, a 5.4% improvement as compared to the same period in the prior year, which includes $0.2 million of stock-based compensation as compared to $0.3 million in the same period in the prior year.

Total Performance

  • Total net revenue increased $68.1 million, or 11.8%, to $647.5 million as compared to the same period in the prior year. 
  • Net income attributable to Vail Resorts, Inc. was $157.6 million, or $4.23 per diluted share compared to $133.4 million, or $3.56 per diluted share, in the same period of the prior year. 

Return of Capital

The Company declared a quarterly cash dividend of $0.81 per share of common stock that will be payable on July 13, 2016 to shareholders of record on June 28, 2016. In the third quarter of fiscal 2016, the Company repurchased 108,036 shares at an average price of $127.59 for a total of $13.8 million.

Season Pass Sales

Commenting on the Company's season pass sales for the upcoming 2016/2017 U.S. ski season, Katz said, "We are thrilled with the results for our season pass sales to date. Pass sales through May 31, 2016 for the upcoming 2016/2017 U.S. ski season increased approximately 29% in units and approximately 34% in sales dollars, as compared to the prior year period through June 2, 2015. This compares to the growth we reported from our spring 2015 sales of 12% in units and 20% in sales dollars, which at the time were record results. The season pass results this spring represent our strongest absolute and percentage growth ever in our spring selling season and are a strong indication of the compelling value of our season pass products, our successful targeted marketing efforts and the significant investment we make in our resorts. Our spring pass sales included strong results from Northern California, likely due to the terrific conditions there this season, especially as compared to last season. But, we also saw very good momentum in Colorado and continued high growth in our destination markets, which combined represented over 70% of our total unit growth. Importantly, percentage growth from the Chicago area was nearly double the growth from our other destination markets as guests in the area are looking forward to next season at the newly improved Wilmot Mountain, as well as the opportunity to ski at our western resorts, all on the same pass."

Katz continued, "Our early season pass results demonstrate the success of our efforts to accelerate the timing of when our guests purchase their season passes. As always, it is important to note that we do not believe that the very strong growth rates from our early sales will be maintained through the remainder of the selling season, as our early growth includes pass holders who purchased 2015/16 U.S. ski season passes last fall. However, we believe that our success in moving our guest's purchase decision earlier in the year creates more opportunity for stable and consistent growth and overall results. Season passes sold for the 2016/2017 U.S. ski season through May 31, 2016 represent approximately 50% of the total season passes sold for 2015/2016 U.S. ski season."

Regarding Epic Australia Pass sales, Katz commented, "Perisher's 2016 season gets underway this weekend, and we are pleased with sales of the Epic Australia Pass to date, which are on sale through June 13, 2016."

Epic Discovery Update

Commenting on the launch of Epic Discovery this summer, Katz said, "We are very excited to welcome visitors to the first year of Epic Discovery at both Vail and Heavenly which will officially open in late June. Our summer guests will have the opportunity to enjoy a great lineup of activities for the whole family, including ropes courses, zip lines, summer tubing and alpine coasters, along with incredible opportunities for experiential learning in a high alpine environment."

Outlook

  • We have updated our estimated range of Resort Reported EBITDA for fiscal 2016 to $448 million to $454 million. 
  • We expect Resort EBITDA Margin (defined as Resort Reported EBITDA divided by Resort net revenue) to be approximately 28.6% in fiscal 2016, at the midpoint of our updated guidance range. This is an estimated 300 basis point increase over fiscal 2015, excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA in the prior year. 
  • Our fiscal 2016 Real Estate Reported EBITDA guidance has been updated and is now expected to range from break-even to positive $4 million. 
  • Our Net Real Estate Cash Flow guidance is unchanged and is expected to be $13 million to $28 million. 
  • Net income attributable to Vail Resorts, Inc. is now expected to be in a range of $146 million to $159 million in fiscal 2016.

The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2016, 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 2016.

 

Fiscal 2016 Guidance

(In thousands)

For the Year Ending

July 31, 2016

Low End

Range

High End

Range

Mountain Reported EBITDA (1)

$

421,000

$

427,000

Lodging Reported EBITDA (2)

25,000

29,000

Resort Reported EBITDA (3)

448,000

454,000

Real Estate Reported EBITDA (4)

4,000

Total Reported EBITDA

448,000

458,000

Depreciation and amortization

(163,000)

(157,000)

Loss on disposal of fixed assets and other, net

(4,500)

(3,500)

Change in fair value of contingent consideration (5)

Investment income, net

300

700

Interest expense

(44,000)

(41,000)

Income before provision for income taxes

236,800

257,200

Provision for income taxes

(91,000)

(98,600)

Net income

$

145,800

$

158,600

Net loss attributable to noncontrolling interests

200

400

Net income attributable to Vail Resorts, Inc.

$

146,000

$

159,000

(1) Mountain Reported EBITDA includes approximately $13 million of stock-based compensation.

(2) Lodging Reported EBITDA includes approximately $3 million of stock-based compensation.

(3) The Company provides Reported EBITDA ranges for the Mountain and Lodging segments, as well as for the two combined. The low and high of the expected ranges provided for the Mountain and Lodging segments, while possible, do not sum to the high or low end of the Resort Reported EBITDA range provided because we do not expect or assume that we will hit the low or high end of both ranges.

(4) Real Estate Reported EBITDA includes approximately $1 million of stock-based compensation.

(5) Our guidance excludes any change in the fair value of contingent consideration which is based upon, among other things, financial projections including long-term growth rates for Park City, which such change may be material.

About Vail Resorts, Inc. (NYSE: MTN)

Vail Resorts, Inc., through its subsidiaries, is the leading global mountain resort operator. The Company's subsidiaries operate nine world-class mountain resorts and three urban ski areas, including Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Perisher in New South Wales, Australia; Afton Alps in Minnesota, Mt. Brighton in Michigan and Wilmot Mountain in Wisconsin. The Company owns and/or manages a collection of casually elegant hotels under the RockResort brand, as well as the Grand Teton Lodge Company in Jackson Hole, Wyoming. Vail Resorts Development Company is the real estate planning and development subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE:  MTN). 

Vail Resorts, Inc.

Consolidated Condensed Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended April 30,

Nine Months Ended April 30,

2016

2015

2016

2015

Net revenue:

Mountain

$

572,805

$

499,551

$

1,206,610

$

1,022,968

Lodging

72,933

67,323

200,026

185,180

Real estate

1,734

12,469

14,766

29,694

Total net revenue

647,472

579,343

1,421,402

1,237,842

Segment operating expense:

Mountain

281,968

244,675

729,382

645,593

Lodging

57,422

54,726

176,170

166,407

Real estate

3,085

14,028

17,043

35,513

Total segment operating expense

342,475

313,429

922,595

847,513

Other operating (expense) income:

Depreciation and amortization

(41,472)

(38,242)

(120,713)

(111,587)

Gain on sale of real property

19

151

1,810

151

Gain on litigation settlement

16,400

Change in fair value of contingent consideration

4,550

Loss on disposal of fixed assets and other, net

(164)

(71)

(3,149)

(852)

Income from operations

263,380

227,752

376,755

298,991

Mountain equity investment income (loss), net

211

(129)

992

396

Investment income, net

150

119

509

155

Interest expense

(10,400)

(13,735)

(31,905)

(41,110)

Income before provision for income taxes

253,341

214,007

346,351

258,432

Provision for income taxes

(95,804)

(80,605)

(131,613)

(73,654)

Net income

$

157,537

$

133,402

$

214,738

$

184,778

Net loss attributable to noncontrolling interests

95

8

289

118

Net income attributable to Vail Resorts, Inc.

$

157,632

$

133,410

$

215,027

$

184,896

Per share amounts:

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

$

4.35

$

3.67

$

5.92

$

5.09

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

$

4.23

$

3.56

$

5.76

$

4.95

Cash dividends declared per share

$

0.8100

$

0.6225

$

2.0550

$

1.4525

Weighted average shares outstanding:

Basic

36,217

36,354

36,312

36,310

Diluted

37,268

37,453

37,328

37,362

Other Data:

Mountain Reported EBITDA

$

291,048

$

254,747

$

478,220

$

394,171

Lodging Reported EBITDA

15,511

12,597

23,856

18,773

Resort Reported EBITDA

306,559

267,344

502,076

412,944

Real Estate Reported EBITDA

(1,332)

(1,408)

(467)

(5,668)

Total Reported EBITDA

$

305,227

$

265,936

$

501,609

$

407,276

Mountain stock-based compensation

$

3,319

$

2,606

$

10,030

$

8,846

Lodging stock-based compensation

770

609

2,300

1,912

Resort stock-based compensation

4,089

3,215

12,330

10,758

Real Estate stock-based compensation

186

277

335

960

Total stock-based compensation

$

4,275

$

3,492

$

12,665

$

11,718

 

Vail Resorts, Inc.

Mountain Segment Operating Results

(In thousands, except ETP)

(Unaudited)

Three Months Ended

April 30,

Percentage

Increase

Nine Months Ended

April 30,

Percentage

Increase

2016

2015

(Decrease)

2016

2015

(Decrease)

Net Mountain revenue:

Lift

$

334,789

$

285,249

17.4%

$

642,627

$

524,537

22.5%

Ski school

74,279

66,216

12.2%

139,703

123,511

13.1%

Dining

51,000

44,003

15.9%

108,093

90,661

19.2%

Retail/rental

79,384

71,078

11.7%

214,748

195,563

9.8%

Other

33,353

33,005

1.1%

101,439

88,696

14.4%

Total Mountain net revenue

$

572,805

$

499,551

14.7%

$

1,206,610

$

1,022,968

18.0%

Mountain operating expense:

Labor and labor-related benefits

$

115,932

$

99,926

16.0%

$

283,353

$

245,401

15.5%

Retail cost of sales

26,123

23,520

11.1%

80,864

75,856

6.6%

Resort related fees

36,129

31,624

14.2%

66,473

57,773

15.1%

General and administrative

45,753

37,047

23.5%

130,901

112,613

16.2%

Other

58,031

52,558

10.4%

167,791

153,950

9.0%

Total Mountain operating expense

$

281,968

$

244,675

15.2%

$

729,382

$

645,593

13.0%

Gain on litigation settlement

—%

16,400

(100.0)%

Mountain equity investment income (loss), net

211

(129)

263.6%

992

396

150.5%

Mountain Reported EBITDA

$

291,048

$

254,747

14.2%

$

478,220

$

394,171

21.3%

Total skier visits

4,689

4,118

13.9%

9,705

8,189

18.5%

ETP

$

71.40

$

69.27

3.1%

$

66.22

$

64.05

3.4%

 

Vail Resorts, Inc.

Lodging Operating Results

(In thousands, except Average Daily Rate ("ADR") and RevPAR)

(Unaudited)

Three Months Ended

April 30,

Percentage

Increase

Nine Months Ended

April 30,

Percentage

Increase

2016

2015

(Decrease)

2016

2015

(Decrease)

Lodging net revenue:

Owned hotel rooms

$

13,813

$

13,097

5.5%

$

43,164

$

39,348

9.7%

Managed condominium rooms

23,110

21,904

5.5%

52,420

49,663

5.6%

Dining

10,167

9,778

4.0%

34,049

31,538

8.0%

Transportation

8,827

9,690

(8.9)%

19,440

20,504

(5.2)%

Golf

—%

8,722

7,805

11.7%

Other

13,634

10,190

33.8%

33,009

28,811

14.6%

69,551

64,659

7.6%

190,804

177,669

7.4%

Payroll cost reimbursements

3,382

2,664

27.0%

9,222

7,511

22.8%

Total Lodging net revenue

$

72,933

$

67,323

8.3%

$

200,026

$

185,180

8.0%

Lodging operating expense:

Labor and labor-related benefits

$

26,808

$

26,465

1.3%

$

82,529

$

79,783

3.4%

General and administrative

9,657

8,736

10.5%

27,036

25,102

7.7%

Other

17,575

16,861

4.2%

57,383

54,011

6.2%

54,040

52,062

3.8%

166,948

158,896

5.1%

Reimbursed payroll costs

3,382

2,664

27.0%

9,222

7,511

22.8%

Total Lodging operating expense

$

57,422

$

54,726

4.9%

$

176,170

$

166,407

5.9%

Lodging Reported EBITDA

$

15,511

$

12,597

23.1%

$

23,856

$

18,773

27.1%

Owned hotel statistics:

ADR

$

263.40

$

256.34

2.8%

$

232.50

$

224.50

3.6%

RevPAR

$

188.86

$

179.55

5.2%

$

156.09

$

143.37

8.9%

Managed condominium statistics:

ADR

$

407.96

$

395.30

3.2%

$

353.54

$

348.68

1.4%

RevPAR

$

185.19

$

171.64

7.9%

$

128.79

$

118.45

8.7%

Owned hotel and managed condominium statistics (combined):

ADR

$

359.55

$

348.59

3.1%

$

303.40

$

297.27

2.1%

RevPAR

$

186.10

$

173.53

7.2%

$

136.37

$

125.26

8.9%

 

Key Balance Sheet Data

(In thousands)

(Unaudited)

As of April 30,

2016

2015

Real estate held for sale and investment

$

116,874

$

137,740

Total Vail Resorts, Inc. stockholders' equity

965,663

963,490

Long-term debt

615,829

379,796

Long-term debt due within one year

13,349

256,953

Total debt

629,178

636,749

Less: cash and cash equivalents

68,565

125,214

Net debt

$

560,613

$

511,535

 

Reconciliation of Non-GAAP Financial Measures

Presented below is a reconciliation of Reported EBITDA to net income attributable to Vail Resorts, Inc. for the three and nine months ended April 30, 2016 and 2015.

(In thousands)

(Unaudited)

(In thousands)

(Unaudited)

Three Months Ended

April 30,

Nine Months Ended

April 30,

2016

2015

2016

2015

Mountain Reported EBITDA

$

291,048

$

254,747

$

478,220

$

394,171

Lodging Reported EBITDA

15,511

12,597

23,856

18,773

Resort Reported EBITDA*

306,559

267,344

502,076

412,944

Real Estate Reported EBITDA

(1,332)

(1,408)

(467)

(5,668)

Total Reported EBITDA

305,227

265,936

501,609

407,276

Depreciation and amortization

(41,472)

(38,242)

(120,713)

(111,587)

Loss on disposal of fixed assets and other, net

(164)

(71)

(3,149)

(852)

Change in fair value of contingent consideration

4,550

Investment income, net

150

119

509

155

Interest expense

(10,400)

(13,735)

(31,905)

(41,110)

Income before provision for income taxes

253,341

214,007

346,351

258,432

Provision for income taxes

(95,804)

(80,605)

(131,613)

(73,654)

Net income

$

157,537

$

133,402

$

214,738

$

184,778

Net loss attributable to noncontrolling interests

95

8

289

118

Net income attributable to Vail Resorts, Inc.

$

157,632

$

133,410

$

215,027

$

184,896

* Resort represents the sum of Mountain and Lodging

 

The following table reconciles Resort net revenue to Resort EBITDA Margin for the three months ended April 30, 2016 and 2015.

(In thousands)

(Unaudited)

Three Months Ended

April 30, 2016

(In thousands)

(Unaudited)

Three Months Ended

April 30, 2015

Resort net revenue*

$

645,738

$

566,874

Resort Reported EBITDA*

$

306,559

$

267,344

Resort EBITDA Margin

47.5%

47.2%

* 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. for the twelve months ended April 30, 2016.

 

(In thousands)

(unaudited)

Twelve Months Ended

April 30, 2016

Mountain Reported EBITDA

$

428,153

Lodging Reported EBITDA

26,759

Resort Reported EBITDA*

454,912

Real Estate Reported EBITDA

(1,714)

Total Reported EBITDA

453,198

Depreciation and amortization

(158,249)

Loss on disposal of fixed assets and other, net

(4,354)

Change in fair value of contingent consideration

(900)

Investment income, net

600

Interest expense

(42,036)

Loss on extinguishment of debt

(11,012)

Income before provision for income taxes

237,247

Provision for income taxes

(92,677)

Net income

$

144,570

Net loss attributable to noncontrolling interests

315

Net income attributable to Vail Resorts, Inc.

$

144,885

 

*

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 April 30, 2016.

(In thousands)

(Unaudited)

As of April 30, 2016

Long-term debt

$

615,829

Long-term debt due within one year

13,349

Total debt

629,178

Less: cash and cash equivalents

68,565

Net debt

$

560,613

Net debt to Total Trailing 12 Month Reported EBITDA

1.2

x

 

The following table reconciles Real Estate Reported EBITDA to Net Real Estate Cash Flow for the three and nine months ended April 30, 2016 and 2015.

(In thousands)

(Unaudited) 

Three Months Ended 

April 30,

(In thousands)

(Unaudited) 

Nine Months Ended 

April 30,

2016

2015

2016

2015

Real Estate Reported EBITDA

$

(1,332)

$

(1,408)

$

(467)

$

(5,668)

Non-cash real estate cost of sales

1,064

10,438

10,508

23,058

Non-cash real estate stock-based compensation

185

277

334

960

Change in real estate deposits and recovery of previously incurred project costs/land basis less investments in real estate

650

3,404

2,362

3,639

Net Real Estate Cash Flow

$

567

$

12,711

$

12,737

$

21,989

 

The following table reconciles Reported EBITDA to net income attributable to Vail Resorts, Inc. calculated in accordance with GAAP for the fiscal year ended July 31, 2015.

(In thousands)

(Unaudited)

Fiscal Year Ended July 31,

2015

Mountain Reported EBITDA excluding gain on litigation settlement and Perisher EBITDA

$

320,278

Lodging Reported EBITDA

21,676

Resort Reported EBITDA excluding gain on litigation settlement and Perisher EBITDA*

341,954

Gain on litigation settlement

16,400

Perisher EBITDA

7,426

Resort Reported EBITDA*

365,780

Real Estate Reported EBITDA

(6,915)

Total Reported EBITDA

358,865

Depreciation and amortization

(149,123)

Loss on disposal of fixed assets and other, net

(2,057)

Change in fair value of contingent consideration

3,650

Investment income, net

246

Interest expense

(51,241)

Loss on extinguishment of debt

(11,012)

Income before provision for income taxes

149,328

Provision for income taxes

(34,718)

Net income

$

114,610

Net loss attributable to noncontrolling interests

144

Net income attributable to Vail Resorts, Inc.

$

114,754

* Resort represents the sum of Mountain and Lodging

 

The following table reconciles Resort net revenue to Resort EBITDA Margin for fiscal 2016 guidance and fiscal 2015.

(In thousands)

(Unaudited)

Fiscal 2016

Guidance (2)

(In thousands)

(Unaudited) 

Fiscal Year Ended 

July 31, 2015

Resort net revenue (1)

$   1,579,000

$   1,358,582

Resort net revenue excluding Perisher (1)

n/a

$   1,337,345

Resort Reported EBITDA (1)

$      451,000

$      365,780

Resort Reported EBITDA (1), excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA

n/a

$      341,954

Resort EBITDA margin

28.6%

26.9%

Resort EBITDA margin, excluding the non-cash gain on the Park City litigation settlement and Perisher EBITDA

n/a

25.6%

(1) Resort represents the sum of Mountain and Lodging

(2) Represents the mid-point range of Guidance



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