Thu. 6 Jun 2024, 4:17pm ET
Benzinga
News, Guidance
Updated Outlook
- Resort Reported EBITDA, on a comparable basis with its prior guidance issued on March 11, 2024 which included $4 million of acquisition related expenses specific to Crans-Montana but excluded closing costs, operating results, and integration expenses associated with Crans-Montana, is expected to be between $833 million and $851 million for fiscal 2024. With the closing of the acquisition, Crans-Montana is now expected to contribute negative $12 million of Resort Reported EBITDA for fiscal 2024, including negative $3 million from operating results and negative $9 million from acquisition, closing, and integration expenses. Including the full impact of Crans-Montana, the Company expects net income attributable to Vail Resorts, Inc. to be between $224 million and $256 million and Resort Reported EBITDA to be between $825 million and $843 million.
- For the fiscal year to date period, the Company reported an increase of $37 million in expense associated with a change in the estimated fair value of the contingent consideration liability related to our Park City resort lease.
- Resort EBITDA Margin is expected to be approximately 28.9% in fiscal 2024 at the midpoint of our guidance range. Excluding the impact from Crans-Montana, Resort EBITDA Margin would be 29.2% in fiscal 2024 at the midpoint of our guidance range.
- The updated outlook for fiscal year 2024 assumes a continuation of the current economic environment and normal weather conditions and operations throughout the Australian ski season and North America summer season, both of which begin in our fourth quarter.
- The guidance assumes an exchange rate of $0.73 between the Canadian dollar and U.S. dollar related to the operations of Whistler Blackcomb in Canada, an exchange rate of $0.66 between the Australian dollar and U.S. dollar related to the operations of Perisher, Falls Creek and Hotham in Australia, and an exchange rate of $1.10 between the Swiss Franc and U.S. dollar related to the operations of Andermatt-Sedrun and Crans-Montana in Switzerland.
The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2024, for Total Reported EBITDA (after stock-based compensation expense) and reconciles net income attributable to Vail Resorts, Inc. guidance to such Total Reported EBITDA guidance.
Fiscal 2024 Guidance | |||
(In thousands) | |||
For the Year Ending | |||
July 31, 2024 (6) | |||
Low End | High End | ||
Range | Range | ||
Net income attributable to Vail Resorts, Inc. | $ 224,000 | $ 256,000 | |
Net income attributable to noncontrolling interests | 20,000 | 14,000 | |
Net income | 244,000 | 270,000 | |
Provision for income taxes (1) | 91,000 | 101,000 | |
Income before income taxes | 335,000 | 371,000 | |
Depreciation and amortization | 277,000 | 273,000 | |
Interest expense, net | 164,000 | 160,000 | |
Other (2) | 49,000 | 41,000 | |
Total Reported EBITDA | $ 825,000 | $ 845,000 | |
Mountain Reported EBITDA (3) | $ 802,000 | $ 820,000 | |
Lodging Reported EBITDA (4) | 22,000 | 24,000 | |
Resort Reported EBITDA (5) | 825,000 | 843,000 | |
Real Estate Reported EBITDA | — | 2,000 | |
Total Reported EBITDA | $ 825,000 | $ 845,000 |
(1) The provision for income taxes may be impacted by excess tax benefits primarily resulting from vesting and exercises of equity awards. Our estimated provision for income taxes does not include the impact, if any, of unknown future exercises of employee equity awards, which could have a material impact given that a significant portion of our awards may be in-the-money depending on the current value of the stock price. | |||
(2) Our guidance includes certain forward looking known changes in the fair value of the contingent consideration based solely on the passage of time and resulting impact on present value. Guidance excludes any forward looking change based upon, among other things, financial projections including long-term growth rates for Park City, which such change may be material. Separately, the intercompany loan associated with the Whistler Blackcomb transaction requires foreign currency remeasurement to Canadian dollars, the functional currency of Whistler Blackcomb. Our guidance excludes any forward looking change related to foreign currency gains or losses on the intercompany loans, which such change may be material. Additionally, our guidance excludes the impact of any future sales or disposals of land or other assets, which are contingent upon future approvals or other outcomes. | |||
(3) Mountain Reported EBITDA also includes approximately $23 million of stock-based compensation. | |||
(4) Lodging Reported EBITDA also includes approximately $4 million of stock-based compensation. | |||
(5) 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. | |||
(6) Guidance estimates are predicated on an exchange rate of $0.73 between the Canadian dollar and U.S. dollar, related to the operations of Whistler Blackcomb in Canada; an exchange rate of $0.66 between the Australian dollar and U.S. dollar, related to the operations of our Australian ski areas; and an exchange rate of $1.10 between the Swiss franc and U.S. dollar, related to the operations of Andermatt-Sedrun and Crans-Montana in Switzerland. |