MTN - Earnings call transcript Q2 2019

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Operator

Good day ladies and gentlemen welcome to the Vail Resorts Second Quarter Fiscal 2019 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to today’s speakers Mr. Katz and Mr. Barkin. sir. ahead, go Please

Robert Katz

morning, conference to call. Good fiscal second XXXX earnings everyone. you. our Welcome quarter Thank

Joining is Chief Michael on Barkin, me the our Financial call Officer. this morning

during you Before our are that SEC described future of certain subject actual some we risks me are on may results remind filings. that materially. a begin, information forward-looking And let based provided may in to this assumptions statements and call include as that vary number uncertainties

with report this morning today, which, Forward-looking with our with And Investor statements unfold. our the release issued on also Reconciliations certain www.vailresorts.com. are of update of these in on Relations Form Today's measures on remarks SEC as available we to of include call events are this non-GAAP March included along press this as our duty and along press our provided our morning XXXX. quarterly the actual were section tables financial in them remarks undertake filed XX-Q also with at measures. are release made no Xth, website the

with So, turn said, quarter our results. that fiscal XXXX second let's to

two year. guest years visitation was overall are strong the in We the prior preholiday to expected which and than In less guest visitation destination prior after quarter of spending, to our for preholiday, in concerns growth our compared resorts with pleased results with U.S conditions. attribute we poor

purchasers. strong quarter expectations the visitation in saw local with of largely visitation during key U.S. the destination Our the primarily who was are our our among resorts, favorable and with line remainder past guests holiday the guess January. growth Throughout with we weeks through

of impacted results. of have by into that strong the visitation have holidays that negatively the events with periods in numerous expectations. saw holiday and Tahoe also resorts there visitation Our our holiday strong been Colorado post period weather the Utah Blackcomb that experienced Whistler quarter the and and resorts aligned during remainder impacted

addition, throughout was Blackcomb the below year visitation In international prior quarter. the at Whistler

XXXX, season are Our the continue well off Mount Northeast to benefit results from are higher season to resorts quarter across decreased driven lift of price second of to Peaks by in up pass first XX% by remainder pass offset quarter the second for visitation. the network. good Sunapee Including X.X% Okemo year, in increases the Military XX.X% as and revenue and increased and skier of the the great fiscal from a season the and network with the lift set the and start visitation Triple growth the as we to both price of new holders Pass compared part Conditions products. season. by skier tickets Stevens effective a in conditions Total Pass, in to due impact our prior season total primarily partially ticket Epic the

Excluding revenue, dining prior increase prior drove in to addition revenue compared and with season in a revenue pass rental an .X% holders, retail increase prior the along spending, and and Triple Pass school the Stevens X.X% ski XX.X% XX.X% a Peaks in and year, of and to year. XX the visitation the compared increase increase rebound strong year. compared effective in ticket price The to

over I our and to financial further outlook. metrics would to the updated turn like call results, our season-to-date Now, our Michael discuss to

Michael Barkin

Thanks, Rob, and good morning everyone.

of reported prior from up $XXX was second growth prior to Resort are to $XXX.X of we the million, compared and with performance strong visitation EBITDA prior our revenue mentioned, compared pleased in As second XX.X% an year. year. prior was XXX.X net an year. Resort spending, year Rob the quarter XX.X% the was XX.X% XX.X% revenue increase mountain compared while the reported million increase quarter million million, of Mountain was year. the prior EBITDA to for $XXX.X from with

result operations net for lodging to compared $X.XX rate due Peaks. positive, compared per resorts Tahoe the lodging second $X.XX of to compared to segment. the net to for the the lodging Net to fiscal year. attributable second year of as rate the prior U.S. were for incremental average inclusion a period share the as prior quarter the incremental the decreased million the revenue primarily diluted Triple manage a $XXX.X we $XX.X diluted managed Peaks prior compared Our payroll was to our approximately tax prior million, income the to all Resorts or one-time as tax reimbursement quarter benefit Triple per fiscal excluding related results diluted million second of XX.X% of of Fiscal daily well legislation. included reform of primarily broader XXXX per XXXX, as increasing properties income of share Vail with quarter not average in did or share year, lower which same year $X.XX net income The $XXX.X generate cost daily or a provisional in that

Additionally, fiscal results. to $X million after-tax the translation, approximately of million to prior primarily at Whistler Company operations net Blackcomb, the calculated income period foreign exchange XXXX rates included and of related headwind and current of acquisition quarter expenses $X.X by period related applying integration which second currency the effect from

trailing our $XXX.X We X.X very and Our the of net balance was total months on strong. sheet hand second million ended reported with times XX debt quarter EBITDA. cash remains

Perisher in metrics periods. metrics prior the include of by areas results. Blackcomb's for ski reported Whistler ski XXXX both to rates interim season-to-date revenue Sunday, were the season from X, currency American reported through and review sales resorts XXXX beginning sales, This Sunday, period foreign exclude this are period The period ski March Peaks, end fiscal North The prior mountain both metrics of the to now March season for fiscal season pass in is growth periods American for Steven season season season X, to based subject and Triple on impact and is to the our fiscal XXXX. Turning estimated the and owned XXXX period applying through for the if and eliminate North metrics the year adjusted our data results from for are period urban our metrics American and pass and and pass North compared to exchange adjusted current as adjustments. quarter Pass ski LLC

at expected, prior Colorado allocated conditions American to up season-to-date As year our in that post from revenue each Company's rates holiday mount Total year's period metrics for our in season-to-date period period. resorts, lift was applicable came our including down last the North season portion reported growth January the for given of pass revenue compared an the Resorts. X.X% improved

visits revenue X.X% X.X% up rental to resort the X.X%, all increased revenue increased period. total year retail ski dining season-to-date to prior Our the and season-to-date compared Total skier compared and year X.X% period. revenue were prior increased

from fiscal expectations As guidance to also at results noted press in primarily the results. Tahoe lowering are our and disappointing for XXXX our visitation the January due shortfalls and preholiday our release, Whistler period in Blackcomb destination we from to due

open Our between weather on Blackcomb from travel open from and weather being numerous was the most all days. events impacted Tahoe revenue mountains impacted results reported were impacted also EBITDA remain three to growth in with $XXX or resulted Whistler expect fully a Whistler January. which intense fiscal to lower which by significant the in visitation our international for generally resorts events adversely addition XXXX at $XXX prevented in of years million to certain be resort in million, the which after expectations at increases Blackcomb. decline and consistent now We

expenses, remainder $X.XX rates rates Canadian predicated on the estimated been payments half September million Australian current as guidance the in Hotham, of of The Creek closing we reported guidance the stamp of which The recently to currency $X each of including exchange results currency for year, Falls year-to-date. million Falls acquisition $XX resort and the guidance duty an included $X Our the represents and which Hotham reduction for plan dollar the issued for foreign announced update the incorporate incorporates Creek nearly following and transaction. to XXXX, we in updated in the to or fiscal from transaction. of guidance does respectively, which for is expected operating integration million realized $X.XX, not EBITDA an resorts and U.S. and

group excluding to $X resorts Our to ski the U.S the approximately economic the stable entered and Specific expected transaction, we to June remainder at December AUDX capital prior the Merlin of any generate and closing into certain Australia After of to agreement an were resort a support to in acquire million our fiscal of we $X for operating Hotham AUDXXX certain AUDX Rob. very over fiscal Falls these expense. expenditures resorts The to losses are or with normal resort Falls closing the XX, approximately back to transaction. purchase in through for subject months and Entertainments reported the that Hotham $XX approximately price approvals and two acquisition, estimate approximately season the million, will XXXX. will guidance dollars first ongoing regulatory Company of million in during in now a also anticipate resorts. the Australia The pay of year. I pleased acquisition in to by environment expected increase to living associated integration be or a of million to the for anticipate expenses in million expects period the to ski call this a gains Alpine Victoria incurred million Australians the following combined approximately proximally We the or including annual conditions from million. adjustments related duty, million is incremental or the transaction operations for subsidiary closing. AUDXX AUDX that turn transaction, announce Creek subject from of we assumes addition will the of for these the in increase stamp resort EBITDA price to of XXXX Alpine Creek approximately reduction the are occur February XXXX commencement XX which an closing, million $X to we closing

Robert Katz

through in We generation our our return Michael. investment and strategic of disciplined committed strong the shareholders be continue our cash capital remaining to dividend acquisition model to projects, share returning in quarterly continuous stability people, to high confident will and repurchase program. and capital and stewards strategic flow our our opportunities business we remain capital Thanks, of

to March April over quarterly Board We are cash of last dividend $X.XX the XX, dividend XXXX. approved a three in payable shareholders approval provides pleased of this XX% Directors Resorts' stock increase common dividend declared Vail overall has quarterly the record our on on and that a per an share, and years. shareholders The XXXX year dividend growth XX, with on XX% to of averaging announce of to increase our per

Additionally, quarter, second during shares total stock price of $XX an million. at our approximately XXX,XXX for we common average approximately the $XXX.XX repurchased a of of

with resorts, to calendar to XXXX shareholder. we returns our approximately of associated expects and remain Triple XXX for capital, capital Moving lifetime million, our a reinvesting to plan, integrations, committed creating to estate XXX our our guests a Pass experience and an items generating year for Company and the plan, excluding transformation investments. summer one-time invest reimbursable real The related strong one-time million Stevens in capital Peaks

As calendar snowmaking and early-season significant that year Creek. Vail, the our at Colorado includes systems investment XXXX capital announced, previously Keystone a terrain will our experience in Beaver transform plan in

as school and improve and a with mobile ticket lift as Creek facilities, the We substantially the Children's at including area ticket fulfillment we and experience highly our investments that one-time capacity who are Breckenridge to purchase the Park advance. eliminate a across full retail at new ticket restaurant focused for We barbecue to ski the will will where well a experience. will window an in investment in technology investing ski X rental guest transform facilities Beaver guests of new on childcare express tickets and that guest resorts, remain permanent new improved renovation their be city, to of the planning base school X Peak experience a make base at Tombstone Peak the improvements also

final and of of investing our technology in stage We to efforts. marketing completing will our be project data-driven sale automate modernization the point

calendar and at to We XXXX on include significant the Pass and at the to Mount Stevens XX Daisy Okemo Butte, which Pass, We two-year also as and one-time will Brooks Okemo. at acquired recently make and plan now the across Sunapee lift as investments upgrading the resorts mountain well lift Butte, Stevens replacing and spend plan of acquired restaurant in the Teocalli resorts. XX million Crested expect upgrades million at of of Crested

estate resorts, $X approximately excluding investments real summer and the associated total our reimbursable acquisitions, million recently million activities approximately approximately of projects and plan and for spending spend be recoveries will XX capital million acquired to XXX Including Creek any improvements capital, insurance on Hotham. investments to across We and also related integration related to tenant XXX with integration Falls plan million.

for of previously our unheard price, to affordable. with to pass everyone. the of season season by XXXX, and introduction pass ago XXXX guests sales. discounts industry the launched accessible in our at world the Earlier Pass guests best riding skiing the Epic for low pass the level for transformed transformational offering lineup XXXX-XXXX all now offering sales making and another The season season. this resorts Turning skiing takes week more pass XX we leap ski unlimited years by Epic

pass come of guests grown a The Pass, create purchasing now may guests convenience starting and to $XXX, the is ski window pass the ticket with skiing of unlimited value number for customizable just new part XX% As from XXXX and of day off Day that whether nearly a need program ride a offering own with days, lift they traditional fiscal selecting Day with by discount season, Epic receive XX% not introduction, lift not a access. revenue. to the Guests season in providing the of Company or of by of Pass, to The plan holder. offered our pass all prices add ski who skiers passes. Epic riders season comprise the holiday price advance their flexibility this to can by and the in pass seven or has being allows one days to

at the there portion at frequency an of However, ticket to lift skiers is lift provides in with currently per despite for our success participate a of base in opportunity pass still converting provides time X.X our occasional guest meaningful that purchases average visits pass our guests all a with tickets to discounts greater daily skier and assets Epic season annual everyone purchaser. guests first estimated family. more opportunity for a are program, this the which resorts those giving year, XXX,XXX holders to Armed resorts to incredible country to expand our new entire as our their sport the an to their and Military Epic representing company as make us launched new we Pass past delivered to in acceptable the pass serve opportunity our the Forces industry. nearly who This well grow

holiday the XXXX a introducing compelling XXXX, offering Keystone the unlimited at season, The $XXX. is new of For Pass will the Military Plus continue price Pass Company days the we a Epic for also providing season pass County and plans with from pass who a open after will deadline before. with the holiday Day, Keystone At year restrictions. of longest XX Tickets, to key access Keystones $XXX Breckenridge Buddy price Xst five to our per stay is skiing and first in one up unlimited discounted in XXXX, With guess kids. two the of open and April Butte starting to six the U.S. $XXX adult Crested before Breckenridge season the restrictions at planning the season resort seasons receive until be in purchases Also Memorial country. for Summit will the XXXX that offer new selling spring resorts

a Operator, moment tireless to your of now pleased to ready closing, to in we a all pass to and also dedication for answer would begin Michael as Vail guest. At questions. passion happy this Sun their to In well our for I partnerships lifetime be are I Valley employees Japan. of and We’re take an experience and time, deliver questions. to Snow Rusutsu our Hokkaido, new as want with Basin, thank Resorts our

Operator

Hendrix question from Felicia [Operator with Barclays. will We take first Instructions] our

Felicia Hendrix

the in wondering, little Whistler? wondering was you talk could items. at you of challenges you back regarding bit each that just more comps in a to going if weather subs I I’m saw Tahoe things with few the just those visitation international

if did guidance? what And us The did you if lost each visitation reported? are over the your Europe? demand mostly seen wondering, at Wondering coming the then there you they you've for days EBITDA many drop of much your on could in first, years just reasons Also and you how on data these of seeing strength Latin from past items season-to-data America, or Whistler? in some have that from week impact give affect the international several Tahoe variety how you of is

Robert Katz

would I close which our timing open significant make those those or weather happens of on and we two What say storms closure do and the with detail can obviously, days. the think snow, out impact because the obviously make there. not to days do resorts I for date, guest status our a on things having It's one pretty it is your up resorts that period, think, it sure weekend I’m business that have peal though later and great impact that. the can provide I is that do of big from of challenging more we come left, think the hit and all when along I is like see they necessarily its up often the it

So I we that great tailwind into was would countering and already experienced what our factored we've some the that snow obviously say and the guidance And of great of obviously of condition. factored terms in in though can season, some from have a the see into headwind a spring. hope we that really bit through I the think that benefit and the rest that is season the rest moderation go as certainly I the of think little our of we of that

price lower done. you most the it the historically had would from at on little resort international is that Blackcomb business I say business know was international Whistler on challenges the think the I bit of a a

lodging of that Whistler strategies think we Blackcomb important a of slowdown that even than up had come more the haul its to and happened of was Whistler to to experience we over room seeing part than the was Southeast the and Blackcomb quite bit think little a it long might growing also that in quicker out I bit that over of maybe over market China the little couple the Asia. And cost both prior be the but think something resort has long-term last the own just for make grown I thought what have years. critical in expected the sense pricing and our of protect a for certainly bit We years. continue given to think significantly business make I three going so

what's a So movement, say I in transition certainly I the year. I a less bit side there on based I see broad of for would international I actually very say little well the little think future, and bit America a headwind think would but a again countries. other but a Latin fairly this the positioned than

Felicia Hendrix

you that And just of again guidance the terms today. provided in EBITDA

Tahoe You won't of kind combined quantify and how headwinds? much were Whistler

Robert Katz

expectation, is, guess think results I as I and specific beginning if at high change is early you of think those been certainly you is, of biggest also but our down you part we guidance see significant. I the the guidance snowfall during of in the are periods say much -- like resorts variation our would impacted. we that some up how would resorts going season, what heavenly, weather exactly obviously, as Well, pretty say down in plenty we the this pretty let's It of was the disclosed what at know a to think be have I terms looked it to But the year, our the still providing I time no, from not before.

way on this and about is next potentially So, share better us or that think investor we maybe there for to take about talk the at conference will a week.

Felicia Hendrix

clarify just it. then to And

window. you Epic So, the there a of day questions and terms a on of the about gotten questions parts buying of people in have is ticket pass got versus Day Pass, at some revenues kind bunch just more are we the two making still the trade of onto -- we by transitioning that on off expensive that the

year your you think questions of past all that data which you royalty, decision numbers of I we noise gotten faced? the the building your also now move could folks you rather us know just of product have just demand in had you behind have but the the any years is creating about for you competition in more to we through your terms of expected what be next then strategy XX or base and you And because offensive stability an just So just be? driver the defensive walk those that continuation if that would might at of

Robert Katz

who one grow our out as that years Ikon. the Yes, we who pass second the I would people are continuation guests there has many been the I things to one who continued and with own we I place to season is, in do having think has of frequency. And for that’s lower our that strategy the there that think there get think it is destination the highest the view local plus that our and is strategy to fact much are many, first. the for that out into of to say of and and surely skier certainly program then very had kind convert have obviously volume I are products there we nothing that slowly but think huge lot have a for I been those are folks that just skier, that important business that our makes resort have move quite four start of a other But to market products potentially there part folks frequency, them. yes, lower days with sense a of

look day steps one mean, introduced point kind four that maturity. in they number our that successful And seven that we guest frequency going of now with our off-peak lower think our of that the year deal that a at introduce the you before the offering discount We days. and a discount season we the higher in for decide to discounts with a we think epic day four actually on we this we the seven line in did epic do if a obviously we so, in to complexity after some are to a day people place I a those four more flow and day, like the off-peak potentially are epic the And seven do lot a epic in tools in to us pass, back time. And come had years for of to The times. were lot day see been epic way. we slightly a discounts offered that’s the historically because had we for towards mind used peak day, was more program opportunity the great introduced of more of in epic

consistent broaden increase then So, on with in of is mind period, we back then, this But so see we over there that. that as to there positive. opportunity and an immediate a on out look conversion that which kind an our some that would is price build have when of we obviously, you've step the consistent we it product dilution. trade-off is product potentially its seen day our quite impact we is But in pretty from -- a in financials, take strategies, have price. obviously a And our multiyear initial advanced I to mind terms to people transition and

of of know time and in trade-off. you get for mind, life think you think about that the -- that satisfaction I is that’s higher value kind rate to of guests get which as defiantly season the higher, we it pass that it work return So, right goes significantly up our all stability

Operator

Brett And we our will next question KeyBanc. Andress with from take

Dan Charrow

This is Dan for Charrow Brett.

touching extension lengthier to about And more next Memorial of in a would operations to Just over in have potential or past more so the we in continue ski for are with or broadly month that season Colorado you get the years? the see guide? constructive rest on of you to Can now what the Breckenridge couple contemplating you we see to any talk Day. outlook posed about the for for that season, maybe season the the

Robert Katz

have the I results we in current guidance I the I defiantly into that our think season would extent have there extensions. would say and impact material other factoring think on to our for year. were of don't the a

just I in on an obviously, permitting were to Colorado. -- to little strong, conditions. Tahoe, there. Breckenridge, ago it the us think of resorts again. go continue Day. In there, think consider will to to important were you to and I a already we've extent obviously seems going announced we conditions to monitor We is so that Memorial obviously, long-term in monitor are commitment like we while conditions the we continue way extending continue our think strategy that’s that are, made certainly the We each to three to all will still Yes, for demand will think that

necessarily on that that that’s, year. we their I about for material impact were our having think yes, opportunity see long a that in more about experience less the providing and the season results the

Felicia Hendrix

of of any bit seems wondering, around are footprint the Australian And And like expand some provide closer those way cities? nice size indications and from the overseas epic of how Falls around early should you attendance to in third impact maybe those inclusion larger total the perspective, Perisher, the can any and color resorts, Creek if the about a may as Hotham cohort? think the we to network

Robert Katz

we’re deals. think, I Creek and very the about Yes, Falls excited Hotham

with in there. have experience South have we New Epic Perisher a the Victoria Australia opportunity lot the and on Pass we a success with the had the markets. could and the have Melbourne largely because same market Perisher Perisher and serve serving think one, couple now But from that Wales basis, region of does I really Sydney had in of not

more The present really advanced with compelling a more Victoria, in really And kind oriented really full both and so, has great model the the do of Creek very for We the in opportunity those a population good compelling. together about same skiing. Melbourne opportunity offers family experience, lot really two to Hotham which use a is paired broadly of area. which quite Falls that feel skier

then we And the there right opportunity is So, the primarily, it have from destinations connection we against XXXX. to executed We of clearly that particularly rollout the one to have the is when primary North strategy relative feel America now and we Epic build is which to for skiers. Blackcomb, like great. in Australia which Whistler Pass already to did Perisher Australian right

And this that well offer directly to compelling and offers for a base new that those two market market. so, to to data in very Japan be to able opportunity to our as partnerships us to in collect guests guest as

Asia longer of year well really the So, the relative to we out -- best like, in think size, ballpark. strategically to in we put the are we term, look same together the I the of is yes, and Perisher comparison certainly feel that positioned important in EBITDA one kind at as terms two probably

Operator

our Kelly next of comes Sean with question Bank And America. from

Sean Kelly

products, I to think to move you I to bit with little want might back new you the question for year announced this what mentioned the of the also seeing talk go maybe could mean for a might start. it Felicia's to for yields the and do that products are you to expectation? continued ancillary and just to the your experience there out transition the some and pretty what all the sort that of But pricing. military the advance just what you Rob, relative kind of clearly make about, do spending think you

Robert Katz

think different there. definitely two I pieces Yes,

how often into military, every good and opportunity has multiyear three to great obviously ticket will mind up. revenue versus to see are season, are and pass period, to from on somebody but paid total move help on see the somebody year of over adding military is the that better the program about our often day somebody And number the we somebody go people I a that frequency we when in pass well, over military lift they on may of went terms performed frequency. that we the higher householders. see to obviously the extent a metric. getting we frequency to get almost that down being are that four their tend season a a again ancillary And think season when certainly we yield from thinking per as from to we that goes total On left much the is who see days in

stand because not lot not of last visit for this the budget lower totally to it who surprising gets price the from a lot have think but we season. of other I and that’s get incremental necessarily us, folks to total just acceptable see to destination would guests may obviously highly per a destination in made other up,

Sean Kelly

upside of question then peek what Seems supply strong think destination and limitation it overall sort move local given And as destination from those spending we in the is you’re there, of point and pretty really can to other think seems condition, benefits or bit sort see you is visitation seeing like of outside a blend it spending from peeks? you show this like to what there between on would take upside I target are that would just the offering cycle? at think an you that the about really period of saw in the destination the we just, that some little But optimized. optimize, you’re anything maybe mentioned do the

Robert Katz

as think lot epic four and things, season. of to I and I our the of with period day get it the into Product the that’s things tend pass. one just that epic of or with us one two and the strategies early the Christmas I product the of go down to goes holders that way our is I will would that one launch, think part it day say, January use off-peak we even need think to see as in by resort people we

of actually, the the so spring day is lower restrictions a the about the terms to pass version epic which entirety of get on so XX% in spring not and pass, the And is access than actually XX% actually break. the peak break to than whole period lower unrestricted

in really but So a big are to that even spring these for actually us traveler obviously lot consider who we’re path, further are break win. potentially advance, of they though, hoping obviously being move folks a to buying a that’s even

school the to we that, for that SMB yet right the have rental some marketing biggest past or not even really I ski around specification a we’re stock. listing, taken we we as data I starting have and on opportunity where the we not use think ancillary think driven spend see really that taken that and is same or in

talk in and see on and that actually an we about I this think we years opportunity prior So, progression.

the to take and through moving then keep stream. first our of biggest of kind trying revenue opportunity best We’re and each piece

of And to and product so, product obviously another lot that of years. and on we do flow-through each I think that pretty use there level the take couple over we how relatively ski in And especially school. this is visitors of guests think our total small an actually opportunity roadmap school, of these our whole so to engage minds really, ski our defiantly a next our percentage deliver strong

Sean Kelly

run you Last of and rate with question difficult obviously expense sort all centralized in M&A activity G&A you the me, investment. if for if see

of same seeing bit So you basis, in right of some following kind of give of of markets now? have force the of there when think a sense you type market or still Mountain I work operate tax may the some same you help same basis? us you out on Can significant seeing you’re what there, inflation can reform. investments made give you’re or resort guidepost look what mountain little conditions a us you’re you resorts n current that same labor your Obviously,

Robert Katz

normal kind one would But identified inflation previously. can of year, guess address we think here I I think something can seeing, going road. yes, that don’t and are I seen wage we headwinds that over And for I a wage of the the maybe but you was stat, that $XX pressure. the down we have that million I this give above into the off top right we investments and say

certainly are but that that seeing will made and team we feel. think I to the would country pressures helped we that the that continue is that I expect pressures are across seeing progress, everyone that

the again in think seeing lodging rest like we the of industry. I are

our significant that's have more until may think we continue been I to this year the minds as a go shift market. to So some be topic but in that's the think going I challenge forward a be headwind, going are I there employment -- is in this to think one-time in of terms

Operator

question Blair. And our comes from with William Sundby next Ryan

Ryan Sundby

like on you day follow try color incrementality with the and kind the passes? the pass and a similar provide did on year military local plan of this Felicia's then Epic you between baseline up summer, will and kind John's versus going these epic the all epic of I the and of Day go combined seven or big we kind guess of size base question as any Just And and kind breakdown Pass. through buying do to Can on we year four next the season forward? provide view or get of the the

Robert Katz

think what not on I think I I additional we -- is, we're the color are So our breakdown would providing say don't amongst passes.

we on be opportunity incrementality do Obviously, on think guests. lower a lower that will Pass significant think there's price Day with at the I with a these Epic frequency point.

incrementality. perspective, there some So in minds from but EPP, are dilution a we that revenue certainly, be our on on focused would

ability a we multiyear more more communicate we for is the stability see, through our with over think consistent And and more stable then guests looking yes, period. the that more personalized in that way. are targeted obviously the plus incrementality rates I a return

other we out So, holders pass of churn we see that benefit is the the benefit owe our program. that one of for some

of the top justify think enough don’t next pass. is they going that they why are ski that give reasons out One for they year they to to churn

is important And most car. skier of which in so have, their how frequency is one concerns this addressing mind, our the people now alive terms own they in buy of a

how In that with more will the somehow reporting, lot can where the we the portray obviously similar terms program a military have pull epic this do and to to Epic I helpful we Pass impact discretely terms be we of best we don't out because some a we think definitely our will that overall think we well, to June and look of epic of how entirety can of in when in get we results But seven at a program situation results, will take of already support, look the four. first the and investors today. we absolutely understanding insight provide to people is our at Day

Ryan Sundby

contains guess are expect coming guess I I into early Rob, period onetime snow in future? kind this with Then Or you more of the year of and we the should and change do that some the the investments this guests around destination see better is that of event? the of and behavior weakness a capabilities, preholiday season snow year kind kind

Robert Katz

know. don’t I

we and we piece that look pass more that of coverage to a be local to few is we look yes, think see of could of the know next when it a at maybe to I to didn’t we book to expect that that. a obviously that pass, had this felt years the people we more don't It more I will was year a onetime change good repeat to whether don't if tough year, are the on not early kind conditions in is or very in of as be and the know back season, the and move season snow snow and we ago things obviously and that and two I skier so, side. will longer kind -- willing whether year it that early people event, good. And this confidence it's have or change is that, year this whether change people next skiers. likely again, no years

when think So, less when these of Colorado, it's imagine much the that to we that's have Tahoe but and can thing would historically, in may again, do back, been up. But that's an that one buyers confidence see see I certainly terms think not ticker see do we not you in lags And look predict I again, show you you whether that show at comfortable something the back-up weather. might the happen get I point. people

Operator

Tyler Batory comes Capital Markets. Janney from with question our And next

Tyler Batory

season. Just but and Rob, want were discussed the know updated on basically may or this other your here, Ikon pass not how on thoughts you've results? up before, the I follow entire now have influenced may to Any the some through they ski questions of

Robert Katz

we of go. a to say, would I season One, as lot saw

in March of period out obviously, in put QX to and we're our obviously not is yet, as April that and I significant. and just end still again just significant done a time total So, was there

holidays think as there having a we that that it's talked than for growth. even last what really hard have seen held pretty maybe on again, was beyond. little before our expectations us Obviously, I growth a say, It's seen season growth and year. program we if year, Utah we about the to for think little been last our for. that done resorts once I And this less so, into strong in versus we and strong a Colorado year obviously, pass we've

a I it's me, it impact any to has to say my whether that for is -- would us guess comment. to know and I hard So

point they've important that broadly the And being is an competing pass many always are for and that great years resorts Ikon that's think they're truly are the competitors great I with that, in XX cases. in our been resorts resorts.

were many obviously is that And that there the is other was so competing that even Ikon that new a the and that's pass before. fact replacing there we new not in, with out passes pass were

even a has to so, dynamics two and because very existed And sure impact, am has with a there it don’t Ikon most is think primary job it. had ago. product, some business but I the I change think drivers I these me, of a think great nice to structural our it again I years is of And they've doubt that the done no

Tyler Batory

properties or And on incremental as you You outright how the your privileges visit partnerships using partnership that guys updates far have thinking then are their going in ask Do to you folks in and have pass of you Japan. market? be then, sales? as seen think that I go those driver are about acquisitions to wanted relationship those any to

Robert Katz

get enthusiasm in when a we mean more certainly, been sharing will we think about adding again like would and June's be it's Australia say read Falls about we when will and definitely what's choices from now, a And I guest of think having enthusiasm think actual that that addition do to coming think more impact give hear will communication and and also -- in what I I but Hotham and call. positive. market the I to Creek, And I Rusutsu information from data boost. I that opportunity. in our sales hard be to yes, I that, us two earnings in on market. we see the pass feel in Hokkaido people alone, excited terms at to are the a results we having forward, the I just channels, absolutely quite share able going tell, will June. little Actual terms a we guest again, I of always think Melbourne resort think a meaningful think added we very to Rusutsu Hokkaido, through least is

Tyler Batory

quarter guides then last the housekeeping item. The about me flow to estate think the EBITDA there any to driving could And or just one for third real And as quarter? mid-point in flat, the way fourth EBITDA how that? real were is it's What's now five. estate down

Robert Katz

is Yes, point. largely lumpy just as at in it land tracks about primarily sales real talked bit little we this that before, a the with estate have

guidance so, any And year. deals the various of can timing comes impact as within one that moves together,

as update So, make that the then at it of best start we of obviously and the goes. year estimates our that

Operator

question Brad from Our Boyer Stifel. next is with

Brad Boyer

comfortable partnership curious Valley you're and step the First little in Snow as in taking more what seeing if further, the just bit And North owning to arrangements with outright a Sun and America? announcements? just particularly thinking is Basin resorts around you that guys just question, today receipted about a opposed M&A pursuing environment, are getting

Robert Katz

make think that that I we adding certainly we powerful. aggressive network are don’t the I but on per think about still think will resorts comment environment more se, our we can

And and patient we're partnerships disciplined we to some think, not We about cases opportunity. going a I interested into are we of morph can that resort, opportunity, be good in they to that much In going acquisition. when like are are be selective with think have those the and the we for sometimes partnership selling owners discussion. right a discussion

the really resorts. is we the really dilute it's goal our the of to highly incremental. network think resorts think not of be The don't I power So, that selection experience, can for those

to on it, incredibly it. to disciplined So, like we I just be about we’re going acquisition but open still will be think

Brad Boyer

splitting And looks the you you then probably year one here bit, drivers little just just like resorts. one, that? the I in talk a hairs it but a a second accelerating bit the Can of behind acquired investment mean, are little about some guys

Robert Katz

I was after closed month guidance think I that we put the just we when know, or deal. you that original it a some us out half only ultimately, of was think,

can the first we and had And so, the made what of get time. benefit we think what little in year an thought more I initial then we done pass

could positive. anything done obviously to how year much would in able this we get okay, was this, identify then get be this our We’re down of goal to

in some was and and thing. greater we the think opportunities So a I this saw good year full that just detail get plan assist for

Operator

And comes question Deutsche Woronka our from next Bank. Chris with

Chris Woronka

subscription is you're second is, ask new you build you going able like to you that Is to monthly something model? a going your more be internally more of for And the pretty sure this on year? the is is do price viewed next own more to daily closer an Wanted permanent forward? or or move being epic for pass to of that part maybe lower of experiment point

Robert Katz

And a for pretty think $XX what and spring the has in the for it’s create with people could that because are going in risk monthly the pass down full commitment only buying the And been season September. don’t we how a their then successful who for piece, approach differentiation lot I taken we've earlier seen pay that a their to the getting. us see we've on been pretty term the on and something that pay over by is of their of we'll I for of into an charging So, us competitive in had spring that. where towards would than payment people be people amount years. that or pass it compelling the plan

off as to We don’t very an that of we've don’t folks done. so already that. we’re this Yes, of as essentially what always say be for before begin, experiment. this going I extension see logical see much their have season So, a pass will we to pay the see moving that

think I you are there We true product. it's know don't will that migrate fast unknowns. this to how know guest

is historically, guests you focused on even great, if when great, buying take I it years who number the the here a the even does think doubt move path, discount benefits of are a it number back have still takes when see not look had we initiative seen we to I Pass. Epic really and have almost that with that Day of no and will we needle that years a

of rates sure, So, from I that the will don't we frequency able of enough the we side that we’ve in end, kind that seen company. products know don’t the same of existing and opportunities this the to benefit exactly the our on But deliver that know for be stability required piece. think, and return the confidence from

Operator

comes us from our Brennan Berenberg. And question next from to Matthews

Brennan Matthews

expect impact you all this pass that’s decision Do sales any I to think Just A the on one recent here Basin season? partnership and you. the on with for by ended next

Robert Katz

Again, that to at point, think say offering, feel are we hard certainly. like the product we this I

and the had Butte Telluride One the collection to we things. we Colorado have resorts. of So, I Pass. we've Epic Epic a and feel think we on like, Crested those pass, certainly the certainly, a and obviously, added Epic different of local Pass, couple was And Basin on, added within A then terrific

that So, have and pretty we our also And opened And of a we one having has feel, in provided the value Pass of That for been to A Basin Keystone think open Keystone offer, terms with resort. offers planning long I a transition. of both. through a think in the we A first did guests it’s the lot which the more pass then a Basin Basin giving of it’s portfolio country Breckenridge we time. lot by A to Keystone a opportunities of think Plus that compelling our said a great replaced obviously then, resorts. big for I be in benefit open we the being the are

is, information So, we have I we are compelling a offering necessarily even certainly product but we what them. perfect think without the think on impact pretty don’t

Operator

time. no like the the there And at further to would our queue for back speakers questions over concluding I any this remarks. are conference turn in to

Robert Katz

to any time feel call. contact fiscal second Thank and the conference quarter who you, should you everyone our concludes joined for your Michael call Thank or to XXXX directly on operator. further me free This good-bye. morning Please earnings have you us Thanks questions. today. this

Operator

again, Once conference. participation today's and gentlemen, concludes ladies today. your that appreciate We

now may You disconnect.

Vail Resorts (MTN) 8 Mar 192019 Q2 Earnings call transcript