Vail Resorts Reports Fiscal 2013 First Quarter Results and Early
Season Indicators
BROOMFIELD, Colo., Dec. 4, 2012 /PRNewswire/ -- Vail Resorts,
Inc. (NYSE: MTN) today reported results for the first quarter
of fiscal 2013 ended October 31, 2012
as well as certain early season indicators.
Highlights
- Resort Reported EBITDA loss, which includes the Company's
Mountain and Lodging segments, was $54.5
million for the first fiscal quarter of 2013, reflecting a
decline of 8.6%, or $4.3 million,
compared with the same period in the prior year. Excluding
first quarter net seasonal losses related to Kirkwood, Skiinfo and Flagg Ranch, which were
acquired after the first quarter in the prior year, Resort Reported
EBITDA declined 5.1%, which was slightly favorable to our
expectations.
- Net Loss Attributable to Vail Resorts, Inc. was $60.6 million for the first fiscal quarter of
2013 compared to a net loss of $55.7
million in the same period in the prior year, a decline of
8.7%.
- Sales of season passes (including 4-Packs) through December 2, 2012 for the upcoming 2012/2013 ski
season were up approximately 5% in units and approximately 8% in
sales dollars compared to the same period in the prior year,
adjusted as if Kirkwood were owned
in both periods.
- In the first quarter of fiscal 2013, we closed on four
Ritz-Carlton Residence units, with Real Estate net revenue of
$11.9 million. Net Real Estate Cash
Flow was $5.5 million for the first
fiscal quarter of 2013.
Commenting on the Company's fiscal 2013 first quarter results,
Rob Katz, Chief Executive Officer
said, "Our first fiscal quarter is historically a loss quarter
since our mountain resorts are not open for winter ski operations
during the period. The quarter is driven primarily by our
late summer mountain activities, dining, retail and lodging
operations, and administrative expenses for our year-round
employees. In the first quarter of fiscal 2013, we observed
improving trends in our summer business in both our Mountain and
Lodging operations from improved summer visitation in our mountain
resorts driving increased summer activities revenue, higher lodging
RevPar and improved dining revenues. Our Lodging business
also benefitted from increased group business at Keystone, as well as the addition of a new
national park property, Flagg Ranch, partially offset by lower
results at our Grand Teton Lodging Company ("GTLC") summer national
park business, which was impacted by the effects of wildfires in
the area. For the quarter, our Resort Reported EBITDA loss,
excluding Kirkwood, Skiinfo and
Flagg Ranch, declined 5.1%, which was slightly favorable to our
expectations, reflecting the increase in revenues from our Mountain
and Lodging summer operations, which was more than offset by normal
expense increases across our business as well as lower retail sales
compared to the record pre-ski season sales of the prior year."
Turning to Real Estate, Katz said, "In the first quarter of
fiscal 2013, we closed on four condominiums at The Ritz-Carlton
Residences, Vail and are pleased
with the continued momentum of sales at this luxury project.
Although Real Estate Reported EBITDA was a negative $3.7 million in this year's first quarter, given
that the vast majority of costs included in cost of sales were
incurred in prior years, Net Real Estate Cash Flow was a positive
$5.5 million in the first quarter of
fiscal 2013."
Katz continued "Our balance sheet remains in a very strong
position. We ended the quarter with $44.0 million of cash on hand, and our Net Debt
was 2.4 times trailing twelve months Total Reported EBITDA.
We had no borrowings under the revolver component of our senior
credit facility and we have virtually no principal payments on debt
due until 2019."
Katz added "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 December 27, 2012 to shareholders
of record on December 19, 2012."
Regarding the upcoming ski season, Katz said, "Our 2012/2013 ski
season is just underway and we are looking forward to a memorable
season. This year marks the 50th anniversary of Vail Mountain
and we are looking forward to events all year long that celebrate
this milestone. To commemorate the occasion, we recently
christened our new state of the art, high-speed 10 passenger
gondola at Vail, named Gondola
One, as a tribute to Vail's
original gondola that was the first gondola in Colorado when it opened in 1962. The new
gondola is the first of its kind in North
America and is the fastest gondola of its type in the
world. Additionally, the gondola has cabins that include
heated and cushioned seats and Wi-Fi access for our guests."
Moving to the early ski season indicators, Katz said, "All seven
of our mountain resorts are open and ramping up operations for the
upcoming holiday season. Season pass (including 4-Pack) sales
are up approximately 5% in units and 8% in sales dollars through
December 2, 2012 compared with the
similar period in the prior year and including Kirkwood in both periods. We are very
pleased with the results of our pass sales effort this year,
particularly given the challenging weather last season and the
record performance we had in passes last year. We had anticipated
the year-over-year percentage increase in season pass sales to come
down from our last announcement in September. The total
growth of the program is slightly below our expectations, as we
believe that the amount of sales that we pulled forward to earlier
selling periods was somewhat larger than expected and that weather
was still a concern for those purchasers who delayed their
purchasing decisions. Sales in Tahoe and international markets
continued to show the most strength. We expect the final
results of the program will be generally consistent with these
percentage increases as final sales conclude in the coming
weeks. As a reminder, revenue from season pass sales is
recognized over the course of the second and third fiscal
quarters. Lodging bookings for the winter season are slightly
down to this time last year, with strength at Keystone, which has shown strong early
bookings driven by our newly introduced "Kids Ski Free" program as
well as strong results at our Doubletree at Breckenridge property that was branded at the
end of calendar 2011. Based on historical averages, less than
50% of the bookings for the winter season have been made by this
time."
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 first fiscal quarter of 2013 ended October 31, 2012 filed today with the Securities
and Exchange Commission. The following are segment
highlights:
Mountain Segment
- Mountain segment net revenue for the first fiscal quarter 2013
was $51.9 million versus $49.7 million in the first fiscal quarter of
2012, an increase of 4.5%. Excluding Kirkwood and Skiinfo
(acquired after the first fiscal quarter of 2012), net revenues
increased $1.1 million or 2.3%.
- First quarter Mountain Reported EBITDA declined from a loss of
$48.5 million in fiscal 2012 to a
loss of $55.2 million in fiscal
2013. The Kirkwood and
Skiinfo acquisitions generated $2.3
million in negative EBITDA in the current year first fiscal
quarter.
- Mountain Reported EBITDA includes $2.7
million of stock-based compensation expense for the first
quarter of fiscal 2013 compared to $2.6
million in the first quarter of fiscal 2012.
Strong summer visitation supported revenue growth in summer
activities and dining operations, including group and wedding
business. Dining revenues increased $0.7 million, or 12.9% in the first quarter of
fiscal 2013 compared to the same period in the prior year, with the
addition of Kirkwood contributing
$0.4 million to total dining
revenues. Retail/Rental revenues decreased by 0.9% compared
to the same period in the prior year primarily due to lower sales
at pre-ski season sales events compared to the prior year's record
sales from these events. Mountain operating expenses
increased $9.0 million, or 9.1%, for
the three months ended October 31,
2012 compared to the three months ended October 31, 2011 primarily driven by $3.4 million in expenses related to Kirkwood and Skiinfo, $2.7 million in normal wage adjustments and
increased staffing levels to support higher volumes in summer
operations and new retail stores, and $1.1
million in increased general and administrative expenses
that include timing of marketing campaigns and a shift in allocated
corporate expenses from the Real Estate segment to the Mountain
segment, partially offset by lower employee medical costs due to
continued benefits from a new plan design.
Lodging Segment
- Lodging segment net revenue was $52.5
million for the first quarter of fiscal 2013 compared to
$53.6 million for the first quarter
of the prior fiscal year, a 2.0% decrease. Excluding payroll
cost reimbursement related to managed hotel properties, Lodging net
revenues increased $3.5 million or
7.6%.
- For the first quarter of fiscal 2013, revenue per available
room ("RevPAR") increased 7.8%, and average daily rate ("ADR")
decreased 2.6% at the Company's owned hotels and managed
condominiums compared to the same period in the prior year.
- Lodging Reported EBITDA was $0.7
million for the first quarter of fiscal 2013 compared to a
loss of $1.7 million for the same
period in the prior year, an increase of 141.1%. The Flagg
Ranch acquisition generated $0.6
million in EBITDA in the current fiscal year first
quarter.
- Lodging Reported EBITDA includes $0.4
million of stock-based compensation expense for the first
quarter of fiscal 2013 compared to $0.6
million in the first quarter of fiscal 2012.
Revenue from owned hotel rooms increased $1.7 million, or 13.8%, for the three months
ended October 31, 2012 compared to
the three months ended October 31,
2011, primarily driven by $1.0
million in incremental room revenue from Flagg Ranch (an NPS
concessionaire contract was awarded in November 2011) and an increase in group business
primarily at our Keystone resort,
partially offset by a decrease in GTLC transient revenue due to
adverse conditions caused by late summer wild fires. Dining
revenues in the first quarter of fiscal 2013 were up $1.1 million, or 11.0% over the first fiscal
quarter of the prior year, also primarily due to the addition of
Flagg Ranch and increased group business at our Keystone resort. Increases in operating
expenses were partially offset by lower overhead and labor costs
associated with the previously announced RockResorts reorganization
plan. Excluding reimbursed payroll costs, operating expenses
increased $1.1 million, or 2.2% in
the first quarter of fiscal 2013 compared to the same period in the
prior fiscal year.
Resort – Combination of Mountain and Lodging Segments
- Resort net revenue was $104.4
million for the first quarter of fiscal 2013 compared to
$103.3 million in the first quarter
of the prior fiscal year, a 1.1% increase. Resort Revenue
increased 2.7% excluding payroll cost reimbursement related to
managed hotel properties in both periods, and excluding the first
quarter of fiscal 2013 revenues related to Kirkwood, Skiinfo and Flagg Ranch.
- Resort Reported EBITDA was a loss of $54.5 million for the first quarter of fiscal
2013 compared to a loss of $50.2
million in the same period in the prior year.
Excluding Kirkwood, Skiinfo and Flagg Ranch, Resort Reported EBITDA
declined 5.1%.
Real Estate Segment
- Real Estate segment net revenue was $11.9 million for the first quarter of fiscal
2013 compared to $13.1 million in the
same period in the prior year.
- Net Real Estate Cash Flow (a non-GAAP measure 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) was a positive
$5.5 million for the first quarter of
fiscal 2013.
- Real Estate Reported EBITDA was a negative $3.7 million the first quarter of fiscal 2013
compared to a negative $4.7 million
in the same period in the prior fiscal year, a 22.2% improvement.
- Real Estate Reported EBITDA includes $0.4 million of stock-based compensation expense
for the first quarter of fiscal 2013 compared to $0.9 million in the first quarter of fiscal
2012.
In the first quarter of fiscal 2013, we closed on four
condominium units at The Ritz-Carlton Residences, Vail ($11.6
million of revenue with an average selling price per unit of
$2.9 million and an average price per
square foot of $1,165).
Total Performance
- Total net revenue in the first quarter of fiscal 2013 was
$116.4 million, roughly flat compared
to the same quarter in the prior year.
- Net loss attributable to Vail Resorts, Inc. was $60.6 million, or a loss of $1.70 per diluted share, for the first quarter of
fiscal 2013 compared to net loss attributable to Vail Resorts, Inc.
of $55.7 million, or a loss of
$1.54 per diluted share, in the first
quarter of the prior year.
Outlook
Commenting on fiscal 2013 guidance, Katz continued, "In
September, we issued guidance of 27-32% growth in Resort Reported
EBITDA. Based on some of the most recent booking trends we
are currently seeing, we believe that it will be more difficult to
achieve that guidance than we anticipated in September. We
will know more about the season after the holidays and intend to
address our fiscal 2013 guidance when we release our ski season
metrics in mid-January."
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.
About Vail Resorts
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. 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.
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.
Vail
Resorts, Inc.
|
Consolidated Condensed Statements of
Operations
|
(In
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
Three
Months Ended
October 31,
|
|
|
2012
|
|
2011
|
Net
revenue:
|
|
|
|
|
Mountain
|
|
$
51,912
|
|
$
49,670
|
Lodging
|
|
52,508
|
|
53,594
|
Real estate
|
|
11,930
|
|
13,109
|
Total net revenue
|
|
116,350
|
|
116,373
|
Segment
operating expense:
|
|
|
|
|
Mountain
|
|
107,548
|
|
98,555
|
Lodging
|
|
51,806
|
|
55,301
|
Real estate
|
|
15,614
|
|
17,847
|
Total segment operating expense
|
|
174,968
|
|
171,703
|
Other
operating expense:
|
|
|
|
|
Depreciation and amortization
|
|
(31,679)
|
|
(28,930)
|
Loss on disposal of fixed assets, net
|
|
(2)
|
|
(114)
|
Loss from
operations
|
|
(90,299)
|
|
(84,374)
|
Mountain equity investment income, net
|
|
434
|
|
430
|
Investment income, net
|
|
54
|
|
64
|
Interest expense, net
|
|
(8,375)
|
|
(8,241)
|
Loss
before benefit from income taxes
|
|
(98,186)
|
|
(92,121)
|
Benefit from income taxes
|
|
37,583
|
|
36,387
|
Net
loss
|
|
$
(60,603)
|
|
$
(55,734)
|
Net loss
attributable to noncontrolling interests
|
|
23
|
|
25
|
Net loss
attributable to Vail Resorts, Inc.
|
|
$
(60,580)
|
|
$
(55,709)
|
Per
share amounts:
|
|
|
|
|
Basic net loss per share attributable to Vail
Resorts, Inc.
|
$
(1.70)
|
|
$
(1.54)
|
Diluted net loss per share attributable to Vail
Resorts, Inc.
|
$
(1.70)
|
|
$
(1.54)
|
Cash dividends declared per share
|
|
$
0.1875
|
|
$
0.15
|
Weighted average shares
outstanding:
|
|
|
|
|
Basic
|
|
35,700
|
|
36,066
|
Diluted
|
|
35,700
|
|
36,066
|
Other
Data (unaudited):
|
|
|
|
|
Mountain
Reported EBITDA
|
|
$
(55,202)
|
|
$
(48,455)
|
Lodging
Reported EBITDA
|
|
$
702
|
|
$
(1,707)
|
Resort Reported EBITDA
|
|
$
(54,500)
|
|
$
(50,162)
|
Real
Estate Reported EBITDA
|
|
$
(3,684)
|
|
$
(4,738)
|
Total
Reported EBITDA
|
|
$
(58,184)
|
|
$
(54,900)
|
Mountain
stock-based compensation
|
|
$
2,720
|
|
$
2,560
|
Lodging
stock-based compensation
|
|
$
370
|
|
$
602
|
Resort stock-based compensation
|
|
$
3,090
|
|
$
3,162
|
Real
Estate stock-based compensation
|
|
$
382
|
|
$
870
|
Total
stock-based compensation
|
|
$
3,472
|
|
$
4,032
|
|
|
|
|
Vail
Resorts, Inc.
|
Mountain Segment Operating Results
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
October 31,
|
|
Percentage
Increase
|
|
|
2012
|
|
2011
|
|
(Decrease)
|
Net
Mountain revenue:
|
|
|
|
|
|
|
Lift tickets
|
|
$
—
|
|
$
—
|
|
—
|
Ski school
|
|
—
|
|
—
|
|
—
|
Dining
|
|
6,373
|
|
5,647
|
|
12.9%
|
Retail/rental
|
|
26,725
|
|
26,964
|
|
(0.9)%
|
Other
|
|
18,814
|
|
17,059
|
|
10.3%
|
Total
Mountain net revenue
|
|
$
51,912
|
|
$
49,670
|
|
4.5%
|
Mountain
operating expense:
|
|
|
|
|
|
|
Labor and labor-related benefits
|
|
$
34,294
|
|
$
30,093
|
|
14.0%
|
Retail cost of sales
|
|
16,191
|
|
15,530
|
|
4.3%
|
General and administrative
|
|
27,304
|
|
25,706
|
|
6.2%
|
Other
|
|
29,759
|
|
27,226
|
|
9.3%
|
Total
Mountain operating expense
|
|
$
107,548
|
|
$
98,555
|
|
9.1%
|
Mountain
equity investment income, net
|
|
434
|
|
430
|
|
0.9%
|
Mountain
Reported EBITDA
|
|
$
(55,202)
|
|
$
(48,455)
|
|
(13.9)%
|
|
|
|
|
Vail
Resorts, Inc.
|
Lodging
Operating Results
|
(In
thousands, except ADR and RevPAR)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
October 31,
|
|
Percentage
Increase
|
|
|
2012
|
|
2011
|
|
(Decrease)
|
Lodging
net revenue:
|
|
|
|
|
|
|
Owned hotel rooms
|
|
$
13,694
|
|
$
12,032
|
|
13.8%
|
Managed condominium rooms
|
|
5,814
|
|
5,546
|
|
4.8%
|
Dining
|
|
10,610
|
|
9,557
|
|
11.0%
|
Transportation
|
|
1,691
|
|
1,702
|
|
(0.6)%
|
Golf
|
|
7,536
|
|
7,445
|
|
1.2%
|
Other
|
|
9,983
|
|
9,577
|
|
4.2%
|
|
|
49,328
|
|
45,859
|
|
7.6%
|
Payroll cost reimbursement
|
|
3,180
|
|
7,735
|
|
(58.9)%
|
Total
Lodging net revenue
|
|
$
52,508
|
|
$
53,594
|
|
(2.0)%
|
Lodging
operating expense:
|
|
|
|
|
|
|
Labor and labor-related benefits
|
|
$
23,450
|
|
$
22,569
|
|
3.9%
|
General and administrative
|
|
7,024
|
|
7,528
|
|
(6.7)%
|
Other
|
|
18,152
|
|
17,469
|
|
3.9%
|
|
|
48,626
|
|
47,566
|
|
2.2%
|
Reimbursed payroll costs
|
|
3,180
|
|
7,735
|
|
(58.9)%
|
Total
Lodging operating expense
|
|
$
51,806
|
|
$
55,301
|
|
(6.3)%
|
Lodging
Reported EBITDA
|
|
$
702
|
|
$
(1,707)
|
|
141.1%
|
Owned
hotel statistics:
|
|
|
|
|
|
|
ADR
|
|
$
180.70
|
|
$
188.98
|
|
(4.4)%
|
RevPar
|
|
$
113.32
|
|
$
102.50
|
|
10.6%
|
Managed
condominium statistics:
|
|
|
|
|
|
|
ADR
|
|
$
194.26
|
|
$
191.48
|
|
1.5%
|
RevPar
|
|
$
30.75
|
|
$
29.11
|
|
5.6%
|
Owned
hotel and managed condominium statistics (combined):
|
|
|
|
|
|
|
ADR
|
|
$
184.89
|
|
$
189.79
|
|
(2.6)%
|
RevPar
|
|
$
60.54
|
|
$
56.15
|
|
7.8%
|
|
|
|
|
Key
Balance Sheet Data
|
(In
thousands)
|
(Unaudited)
|
|
|
|
As of
October 31,
|
|
|
2012
|
|
2011
|
Real
estate held for sale and investment
|
|
$
227,662
|
|
$
263,130
|
Total Vail
Resorts, Inc. stockholders' equity
|
|
$
738,371
|
|
$
763,430
|
Long-term
debt
|
|
$
489,525
|
|
$
490,377
|
Long-term
debt due within one year
|
|
848
|
|
1,063
|
Total
debt
|
|
490,373
|
|
491,440
|
Less: cash
and cash equivalents
|
|
43,985
|
|
44,738
|
Net debt
|
|
$
446,388
|
|
$
446,702
|
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 (loss), 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. In addition, the Company also uses the term Net
Real Estate Cash Flow, which is not a measure of financial
performance or liquidity under GAAP, as the Company believes it is
important as a cash flow indicator for our Real Estate segment.
Presented below is a reconciliation of Total Reported EBITDA to
net loss attributable to Vail Resorts, Inc. calculated in
accordance with GAAP for the three months ended October 31,
2012 and 2011.
|
|
(In
thousands)
(Unaudited)
Three
Months Ended
October 31,
|
|
|
2012
|
|
2011
|
Mountain
Reported EBITDA
|
|
$
(55,202)
|
|
$
(48,455)
|
Lodging
Reported EBITDA
|
|
702
|
|
(1,707)
|
Resort Reported EBITDA*
|
|
(54,500)
|
|
(50,162)
|
Real
Estate Reported EBITDA
|
|
(3,684)
|
|
(4,738)
|
Total Reported EBITDA
|
|
(58,184)
|
|
(54,900)
|
Depreciation and amortization
|
|
(31,679)
|
|
(28,930)
|
Loss on
disposal of fixed assets, net
|
|
(2)
|
|
(114)
|
Investment
income, net
|
|
54
|
|
64
|
Interest
expense, net
|
|
(8,375)
|
|
(8,241)
|
Loss
before benefit from income taxes
|
|
(98,186)
|
|
(92,121)
|
Benefit from income taxes
|
|
37,583
|
|
36,387
|
Net
loss
|
|
(60,603)
|
|
(55,734)
|
Net loss
attributable to noncontrolling interests
|
|
23
|
|
25
|
Net loss
attributable to Vail Resorts, Inc.
|
|
$
(60,580)
|
|
$
(55,709)
|
|
|
*
|
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. calculated in
accordance with GAAP for the twelve months ended October 31,
2012.
|
(In thousands)
(Unaudited)
Twelve
Months Ended
October 31, 2012
|
Mountain
Reported EBITDA
|
$
192,161
|
Lodging
Reported EBITDA
|
8,762
|
|
|
Resort Reported EBITDA*
|
200,923
|
Real
Estate Reported EBITDA
|
(14,953)
|
|
|
Total Reported EBITDA
|
185,970
|
Depreciation and amortization
|
(130,330)
|
Loss on
disposal of fixed assets, net
|
(1,352)
|
Investment
income, net
|
459
|
Interest
expense, net
|
(33,720)
|
|
|
Income
before provision for income taxes
|
21,027
|
Provision for income taxes
|
(9,505)
|
|
|
Net
income
|
$
11,522
|
Net loss
attributable to noncontrolling interests
|
60
|
|
|
Net income
attributable to Vail Resorts, Inc.
|
$
11,582
|
|
|
*
|
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 October 31, 2012.
|
|
(In thousands)
(Unaudited)
As of October 31,
2012
|
Long-term
debt
|
|
$
489,525
|
Long-term
debt due within one year
|
|
848
|
Total
debt
|
|
490,373
|
Less: cash
and cash equivalents
|
|
43,985
|
Net debt
|
|
$
446,388
|
Net debt to Total Reported EBITDA
|
|
2.4
|
The following table reconciles Real Estate Reported EBITDA to
Net Real Estate Cash Flow for the three months ended
October 31, 2012.
|
|
(In thousands)
(Unaudited)
Three
Months Ended
October 31, 2012
|
Real
Estate Reported EBITDA
|
|
$
(3,684)
|
Non-cash
Real Estate cost of sales
|
|
9,241
|
Non-cash
Real Estate stock-based compensation
|
|
382
|
Change in
Real Estate deposits less investments in Real Estate
|
|
(477)
|
Net Real Estate Cash Flow
|
|
$
5,462
|
SOURCE Vail Resorts, Inc.