MTN - Earnings call transcript Q3 2019

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Operator

Good day, ladies and gentlemen, and welcome to today's Vail Resorts Third Quarter Fiscal 2019 Earnings Call.

Just as a quick reminder, today's program is being recorded.

And at this time, I'd like to turn the floor over to Mr. Rob Katz.

Rob Katz

Thank you. everyone. afternoon, Good third our XXXX conference earnings Welcome quarter call. to fiscal

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

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

with press X, release them on issued undertake Forward-looking our statements along as June remarks events call afternoon today no in XXXX, made are unfold. our as actual update this this we duty of to and

release, include provided and a Relations website quarterly which these certain also are section measures. financial report measures on remarks Form our in Reconciliations this SEC included are tables the the XX-Q afternoon with of on Investor of press www.vailresorts.com. along Today's the filed are with non-GAAP our available also at with

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

are with good finish Western for full including ski Destination the strong with year, American quarter season, visitation the North XXXX-XXXX and our for season, the prior We overall growth spending the compared our a and conditions to in across to with strong results U.S. pleased resorts.

period our expectations. original After results for visitation, line with were early-season Destination the the challenging season our for in remainder of largely the

from stability marketing in success the the the throughout season diversification, our sophisticated resulting and results XXXX-XXXX the Our our our data-driven and growth benefit season North of resorts ski make our the pass, American we investments geographic efforts. of highlight

in quarter, Western by throughout and experienced of Tahoe. also resorts for U.S., favorable ski an select the strong conditions and third Utah destination Colorado, resorts the for Our visitation season local the allowed Colorado extension which across Tahoe supported fiscal and

skier particularly visitation, a prior company Blackcomb. to in relative Triple Peaks and driven XX.X% at primarily increased XX.X%, by international experiencing year, weakness visitation revenue The the growth Stevens continued Pass. lift Whistler in compared from Total

quarter pass compared to in ETP by products, effective ETP, Total Pass resorts, pass season price, season the lower prior acquired due from or both by Stevens ticket the increases ticket Triple the to in the Peaks visitation new our and holders, lift partially offset and year, third skier higher Epic primarily increased and Military X.X% Pass. price

season prior year. Excluding compared the increased ETP pass holders, to X.X%

The to compared X.X% Stevens retail revenue dining growth and the school and year, the in rental in and addition prior increase in compared spending X.X% in with revenue a increase of a Triple drove along revenue, prior XX.X% the increase ski Peaks visitation Pass, and year. to

like financial Now results to call the updated outlook. Michael our over discuss I'd further to our and to turn

Michael Barkin

Thanks, Rob, good and afternoon, everyone.

are spending the mentioned, growth year. was the compared with net to prior to year. pleased revenue million, $XXX.X with we Resort As visitation compared our quarter Rob performance, strong and increase in third an prior XX.X% of

third quarter, Resort and an the from of revenue million EBITDA for million, mountain year. up Reported Mountain to prior year. from XX.X% EBITDA reported was compared the was million, XX.X% up the prior $XXX.X prior increase XX.X% was $XXX.X year the $XXX.X

as average to a well properties third Triple year, prior operations fiscal managed the of lodging compared segment. prior the Peaks with Resorts, as Tahoe primarily incremental cost daily that results of manage as our incremental generate the compared rate due of lower as compared we which the quarter to year, Lodging in did not result the lodging prior the positive, reimbursements the to daily The a all inclusion Triple year, increasing Our excluding for of XX.X% the revenue decreased rate average to payroll were Peaks. primarily broader

$XXX.X million, XXXX, the income per or prior diluted the third fiscal for per income share, of share, $X.XX $X.XX compared quarter million, was $XXX.X or the of diluted year. attributable quarter Vail to Net third to Resorts, in Inc. fiscal net

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

per EBITDA. sheet also and dividend has X.X $XX.X hand that on XXXX Board ended XX, pleased balance quarterly record will Our of a remains announce generate to Vail debt shareholders very XXXX. stock. be payable was to common our total cash $X.XX cash share the quarter stock our Directors business flow. times and on XX, to XX of continues on cash on will months quarterly declared of the be and common The with of net June strong We I reported am dividend robust trailing Resorts' million July

prior between excluded finish which the and we basis season discipline, Resort guidance Reported million. on X, March on cost Resort Given be EBITDA and the $XXX now EBITDA strong continued to focus our Resorts our million Falls and the season, $XXX Hotham contribution a comparable successful XXXX, the issued extensions our Reported to from expected with expect Creek

to between estimated $XXX of issued $X strengthening, unfavorable September and and integration Resorts XXXX million approximately of time of million in $X acquisition, initial EBITDA and million duty XXXX. Creek expenses exchange of million, fiscal between and of For Resort of and fiscal Including expected Reported and foreign for guidance Hotham, expects stamp Reported XXXX, U.S. to Falls $XX million which to Resort result contribute as the company $X million a $XXX Creek $X impact million dollar integration-related income million an $XXX relative are stamp includes our be and net the to and a EBITDA, payment expenses. Hotham $XXX duty Falls of the million the including be

now over Rob. I'll turn back the to call

Rob Katz

Thanks Michael.

deadline. excluding XXXX products season upcoming of rate XX, the Stevens North sales X% sales last pass sales. eliminate currency all the increased sales showed to the pass We of for period Day which Pass the results over periods in of pass Pass XXXX, Memorial May American strength are period prior-year Whistler and the of May and and growth with particular ski Triple in in the by the over and to as applying the in XX% our XX, an season spring, approximately Peaks sales units adjusted sales we between results XXXX-XXXX $X.XX pass pass exchange impact military dollar very strong and dollars U.S. pleased sales both Canadian foreign record including periods both compared through through to-date, saw the period dollar to Blackcomb prior with for current

verification but to provide plan the are updates we our progresses. remain pass will off on Military period sales and strong to a trends further as sales start, season in selling

particular, Sunapee driven pass Our of pass sales products. unlimited Epic we on Mount with was our growth and primarily Local our are had sales access strong very in markets, destination growth strong Okimo benefiting from full which markets. Stowe, results In included northeast the Pass in the year by Epic first with and

we Our destination marketing. Sun continue the recent perform including our well reach network, on enhanced data-driven available Rusutsu ability with as broader markets resorts to expand destination our and guests of Valley our to the and addition

in in driven Our local results first local the Stevens Pass. strength full Seattle growth, our sales favorable with with markets solid particular including by to Whistler the access pass guests season continued Blackcomb region show to among

in partially by offset from Colorado and Utah seeing more also growth local results guests, Northern strong California our our sales are modest We market.

Arapahoe be we're loss Value than access rate products; Basin. our expected, to offset on more of expect As Summit products, Basin to payments removing to renewal pass lowered Keystone Plus revenue on our any Pass Arapahoe our the the of we by elimination and but partnership

have sales seen from of sales anticipate concentrated We in primarily new this the be our growth to it Epic spring growth and the material overall new pass product that in fall. was Day Pass, good though not we our will dollar

the Pass. important kicked relative It is versus Day that growth Epic with pass year to spring, growth sales note guests in XXXX XXXX Australia purchase more we the stronger on than the we years. rate of which the sales due of performance units pass the lower drive late introduction dollar military another off Day as growth as full early to rate The approximately significant in ski XXXX sales XX% will season and ongoing over Labor our Perisher, Pass of spring in believe to XXXX the June through be year excluding fall XX, passes up three Australia growth prior-year X, end are period compared to past XX% at are very June with pleased and representing through June and we the Epic X, in

year Australia Japan. of have the This addition Epic sales Rusutsu benefited in from Pass

we that the access of we this for the next timing current on closing full the and Hotham week Creek are at April, and benefit in of Hotham ski Falls Epic include until the transaction won't unlimited in the but Hotham requisite final year, Pass we Australia to the to the XXXX pleased Creek report Australia. acquisition season Given see approval Falls received

to highest commitment experience our resorts of and in Our our remains priorities. guest one the reinvesting

previously the Colorado Creek. a completing we and including Keystone significant systems investment fall, strategic snowmaking projects this As that in announced, at transform and experience we'll capital will Vail, Beaver summer important be in our early-season expect terrain

of Tombstone will At the Canyons transform skiers more resort. person route and Over riders access for restaurant to provide plan barbeque Out quicker, to a lift area new the from a we permanent the this that Express Tombstone Park and with four – Village City, direct new and

we improved Breckenridge facilities Peak experience. plan improvements invest the child of and ski to the Ski as Creek care to ticket Beaver base addition, retail School area In eight with an new renovation and full facilities a rental and school in well and as Children's at

We on the eliminate advance. resorts experience purchased tickets new that express, will our guests who mobile ticket technology guest for a window investments will fulfillment substantially ticket their in believe lift remain that improve highly the across including focused we

and We of marketing final data-driven automate technology complete in are also our to our modernization efforts. investing project expect the point-of-sale to stage

and Butte, investments make We Mount which lift on Okemo, upgrade mountain resorts Crested will Pass recently Brooks Daisy and Crested and significant lift also the at restaurant well to as Stevens Pass, replacing across acquired Stevens and as Sunapee Butte, of Okemo. include at the one-time at Teocalli upgrading the plan

of our the passion As summer thank and dedication American season. operations at their resorts, delivering we XXXX-XXXX to for moment to a during our to I ski American to North guests employees of tireless transition our to like experiences North take all lifetime a would

At this questions. ready to I happy are we Michael answer time, be Operator, your and questions. now for would

Operator

very Barclays, Hendrix. we [Operator first Instructions] from have much. you Thank Felicia And

Felicia Hendrix

you Thank afternoon. your Good time. Hi. for

sales So, sales your also pass well. increased think spread I between as Rob, season than And expecting. most the overall people were were units better and

that all there. I strength? competition dig the given if but driving into data-driven we're in could you so strategy, Icon continued the was well-versed I and just about think think And wondering your what concerns was you

just also that well? kick-in but next wondering really It the the as a like end could then rest on minute you kind you relative out sounds in the then acceleration it perhaps spell dig the of you the see into in sales could did the if last slow for quarter a folks the release And an Day year but it selling repeated come on at the basis as more in prepared can cadence bit as of and sales of season the Pass just just you just remarks in.

just it? to appropriate about an if So wondering was think that way

Rob Katz

I we would with far selling what in really so pleased the season. yeah. we Sure, are say saw

markets we I Northeast. very well. think performed highlighted very, our the Obviously, strength particular destination in

to of and year the really more guests having full first benefiting sophisticated strong a we're portfolio, from kind a that opportunity our guests different kind are – think obviously of resort approaches support marketing of with engagement having those in connect to I data, board. across spring seeing more all think Northeast the kind how the and of to I people that, is we're

really So we about good feel that.

a what over the think we driven of we that is spring have years couple necessarily acknowledge unit more a in wanted lot that, growth the also I to our we've fall. in of than seen

that trends expect. will the that typically go we on growth seeing of rate based we into see come as even selling fall season we're so some down and the And

then that see Epic do a provide between And boost the Pass Day we two absolutely seasons fall, period. as the the in in selling late sales the will fall

of Day product kind to in an we'll But you our we're be. growth the then new course, probably, point, of a fall. less have the on expecting pick will in be it's so exactly what we the kind impact numbers yes, December obviously, we us, precision see end publish period, that of time at see that But of that Labor lowest Now, acceleration before up and season. for the

Felicia Hendrix

then And that effect? the there. else? describe Is the word sales something mostly you. was Or in That's pass you to Okay. Thank just helpful. there A-Basin modest Colorado used growth the season

Rob Katz

two thing, strongest strong growth we've last would say, things. It one pretty was saw of our I in probably year Well, One we that Colorado. seen. years

think this growth I So lapping that year. we're

think I weighs down growth probably so And that -- bit. the rate is little a

a a -- that no critical then there's kind of slightly saw product A-Basin terrific doubt but rates There's we on had expected portion them. partnership of yes, season lower that on it. we And as all to it renewal pass the product -- what is kind is resort, and A-Basin of up two expected expect we more the payment this we made for from than of elimination by

Felicia Hendrix

the Whistler, international Thanks. weakness there Okay, way at that? to any great. And one mitigate one is final just on

Rob Katz

Yes.

growth an on been has Whistler like feel I think incredible I trajectory.

both years, that revenue profitability especially visits after all incredibly strong. we been resort had over look the five since the the to you to resort acquired of last their four If and

I And sure appropriately moderation so think a want is because we of I at protect manage think to that growth want the of which experience saw we the we we kind end we that. to the see make there. Whistler important, -- in

business said, Whistler -- critical is us. to at the we That international absolutely

will we business back may able bring have to with in market a for year plans of avenues in so to different of some to a that, provide have that option in Whistler of pass this that and them with do lot got that Creek And now huge and even number be Obviously, providing be of that Melbourne them. in that Hotham year, will be place kind we've connecting and of just the come next local terms to that. will adding Falls also Australia not access

the also the number across little build for trend resorts. critical And business. to the U.S. of to so the market been than domestic downward try by in Obviously, strategies more the bit and also Unfortunately, and Whistler but a we a Canada, market, U.S. on our both and terrific for a part think up it's a by international. build it's both but Germany are that's of out the us opportunity of U.K. made business way,

to see year. And so we intend that next rebound absolutely

Felicia Hendrix

Hey, great. Thank Very helpful. you.

Rob Katz

Thanks.

Operator

And moving Shaun America. have Bank we Kelley of with on

Shaun Kelley

to start. good season Hey, everyone. Maybe afternoon, just with to stick passes

any why right there. over any action deadline you and Rob, to kind or consumer did Or drove Memorial change the specific experiences was. call strength promotion in out You you think call Day the color on particular that? as of into that Was there to just you have

the the I did. the just that why on so kind curious Buddy Pass discount earlier, you think -- you of behavior saw decently actual biggest actually maybe end

Rob Katz

Yes.

deadline. we that did think strength I over see real

that I number resorts. certainly we've a a it think extended be in of seasons had could of piece the our

I price right competitors. at think of terms we've competitive lot got products versus a offering our the a of looking price of very now in our

value kind the I the show for think a who now deadline. of for up think And are that getting -- year. right Memorial best Day next guests value interested pretty on very I experience and I really a just that in did think side through opportunity, best it's compelling

strong not pleased It's away such end a analysis since far all But ended, very so spring the to detailed -- we actually that -- deadline since was we of season. we were it the see don't selling of that it. have to

Shaun Kelley

spread curious pass was was question unit side. mentioned on just other show of And being Was and I the here particularly experience dollars Day XX%? Pass Great. number, that didn't had all the to impactful between roughly materially but Epic the between did X% and we then you dollar the did it the at for or you on material kind X% the that price units move sound I actually enough large

Rob Katz

be its Overall, obviously a I that the comment would of What think a the obviously, units. Yes. unit. going of item were about lower out if impact fall put pretty Epic is X-Day on -- per given look bigger say, would dollar that revenue the say product. kind impact to on it's its a last than growth. of product units didn't cost on direction yes, is didn't But it's we historically impact we spring, you there that so in Epic year the are X-Day the out numbers put there. strong it itself any even With prime I and -- within change said, not I the But --

material base. growth, be a for overall great at And to so results necessarily small a not our going the just saw because we that's season, we're to starting but

Shaun Kelley

into think two the just we moving the then And small about ones as fall. of sort cadence Right.

to So all of of and one out think just moving integration different obviously expenses wanted is I in $XX I total million pieces. ask specifically the just between

of Just as a bridges, get about slate? coming subject as expenses about anything in of if we fall should occur? all season season -- are to to there sort we Or start change sort of we that's largely to expected given integration that's the think the coming XXXX-XXXX thinking to at those we our as be is the acquisitions were clean out continue

Michael Barkin

Yes.

think And big the year the announcement I Pass associated and Hotham expenses and actually acquisition to certainly that that of there. of the did Falls one and clearly this was going Triple $X with million the Hotham Stevens stamp out call pieces big the acquisition closed. integrations goes tied We on Creek course, Peaks, of Creek that Falls and getting with is duty of there. is then year a

going we into year. provide certainly deals. of yet associated will that but will So that, be and expenses for their guidance sized those just when next and not they're additional given season. Creek those pieces We've would go Falls integration away we absence in with There Hotham the deals any closed

Shaun Kelley

loop as one together these to sort of looking sort one of just then we're And other all great. Okay ahead.

back been much it looking obviously, that since everything has part So expectation. with the very season much early on experienced pretty line in of

you're look coming too overall. lumps, snow. but pretty As of season fantastic much a snowfall it because off we had of its ahead, usually was It probably

little kind just early-season or back? segment or that customer should forward? think expect a that is of a may just it's that specifically different will talking something group to bit early a behavior sort that that pattern we possibly we year, of of view you little we would for season. behavior as any know of think area specific Or the a to just I guidance, of about new where about I'm would on or that thinking kind move for be this that but So a about is be bounce be was pattern next the be obviously of an or behavior that saw period this that sort given thought

Rob Katz

think this early our I a our was assumption would going we -- of see into Yes, season, rebound. certainly more that

to us I more there's year. opportunity for think see a of next an rebound

I part a is make conditions be experience said, before of on we're the any think I season a the been that predicting given think have we're years going I people early making few see certainly rebound that going think predictions we're early cautious to in the a this -- year, that. we season about ago. the resorts. of think year, And to might've where it to our I in our snowmaking is maybe the investment too from stronger their to number But confidence the this given given early

Shaun Kelley

you much. Thank very

Operator

And Andress with comes Capital question Markets. next KeyBanc from Brett

Brett Andress

afternoon. good Hey,

the right XX% plus is of the of because slowdown? have be how Or to to we you to on season? similar the how current Pass last you're about you year past I any the So XX%. modest, magnitude guess magnitude pull-forward tailwinds expecting you of more start year, where just at at that and to color XX%? slowed from the it thinking slow that? up the additional amount of end think presumably the full on I Are about expected are the questions, Day is following So thinking But Epic the

Rob Katz

in think commentary -- Yeah, that's not release. I the I providing beyond guidance we're the

think it's on that. to comment I for me tough

deadlines and releases some that think, provide to to between precision point around and some we there then I earnings at prepared color think directional but this we color out the the provide two will more like directional two felt we're that. I upcoming wanted not play

Brett Andress

they the then I what sales frequency And question seeing a a customers Are four day choice? early Epic higher enough. have had Fair those opting Day a come pass who far know it's last the later. they frequency, lower and or are Pass, so But seven a now on year? you among for options

Rob Katz

would trends for and holders this higher spring certainly not think we're which say terms what historically is think, is later into product, for for say terrific. good seeing I we're lower frequency coming point surprising been strength to probably people think frequency new I strength across that in is get into some I'd of in I the portfolio. that we'll seeing, Actually line a engagement. products, And our entry into new we're of it fall. seeing is products good that those in create right strength up guess I pass And the I And the product pass see has as which we spring. them

us surprising but seeing the We're to product of of some options, us great provides interest a which build price not the it's in helping the point season. opportunity for also terms to lower a again of parts real that nonpeak since restricted in

a would course I we what So our say it's would of what that And with expected right of pretty results have much would line very hoped. now have in we early. are lot and

that we important obviously the yet terms of So to the part and part selling a of most season product. have selling of go long season the in

Brett Andress

one I the so California And Understood. Northern Utah. last in softness have, in season you selling last had

today. strong You that called it's out,

that. in general? markets what's this different are marketing strategy? doing different curious anything just year, stronger Or just those driving Are in markets any I'm you So those

Rob Katz

sure a say, Hard winter, had strong I'm a that had obviously, strong spring. that's helping. to very very California Northern

end the value feel help. like I that best will think of I competitive think just the -- our And that we we're we in that pass competitive that think And in to terms mentioned and ultimately I experience. certainly terrific I track pass dynamic the have for to the more broaden providing a reach position continuing as us more the be there's in program. people provides. again understand And record of of and expect would long continue just benefit to the that as I able a

Brett Andress

you. Thank

Operator

will with Next Woronka come from Deutsche Bank. question Chris

Chris Woronka

guys, Hey, good afternoon.

Rob Katz

Hey.

Chris Woronka

Hey. what to I acquisitions premium season of kind wanted the Peaks that the in same you Triple terms them as underwrote Stevens you the of buy in when recent ask more to way of scrub results seeing are you're about the have and you Pass from early from some they have might expected -- passes them?

Rob Katz

I we're benefit terms the the the have quite provide the would think that of there expectations with again pleased for access. resorts we we're new seeing and what that in

into I factors we It's target access. of resort to people the course, data to communication it's getting and and both people, us getting think additional of a at better approach yeah bring program. how though. able And, combination skilled having there's more be and always better having more our

certainly to terms whatever have We their of in had customer data list. also access those resorts

So, that database obviously, well. into bringing as our

I yeah there. components. three about in right terms now, all really it's yeah, So we're what of trends really good again seeing And feel

Chris Woronka

I should then that of guess expected? you you now full I total or And have spend lower? ancillary spend the look data or as on passes to a just is Or at, ski is it say the about Okay. the higher military season

Rob Katz

I'd what expectations. particularly that's are a guest engagement. you that completely holder And lower. One, from good obviously, the two guest. We've aligned our is seen destination -- if seen we've things. either pass think as good comparing I local, say say from pretty frequency with spend but would that I

that really we that think good our engage think we've really -- I we're resorts. I seeing so And with been feel -- guest

certainly so holders a is it's additive holders us our our before. folks still really percentage database even of are such in getting other those we And basis of that bottom-line pass huge some new pass were especially though and our not on than groups, because pass right a -- ancillary it's holders spend and that to right that visit per lower had

in terms opportunity make also folks important we incremental in a the at connection right to as business group same to of countries So, for great that really access their view provide countries, a time, and side. strong of these served such real opportunity but an a have who us the from all

Chris Woronka

and that I urban kind And strategy last me years available? acquisitions The results just network then do the to this think to how those Great. -- had one And or you're you've acquisitions now for make you of initial does since maybe you those bunch several several of you've a more. and you now? at more back had that's the the effect, sit from the ones. want it seeing right of extent one what they're as from Or do you've done look

Rob Katz

from strong those on more to that's on some that terms in side I seen those they've visitation driven shared engagement our acquisitions. the of think been destination information of resort. some pass And the benefits -- I we we've think at driving our markets conference in Western investor

for strategy think feel that we a it's out so And good about. us played is and we absolutely

for opportunity all additional that if provide and be aggressive right our moment. the to that into network align, resorts disciplined on we that to really be to obviously go factors acquisitions, In the have going experience the and and patient. think make we're that. on about be better. don't And stars our we're you of when guests going add we future And other and terms we're the will looking terms fit based But it the still obviously, absolutely right

Chris Woronka

good. very Rob. Thanks Okay,

Operator

we have from Matthews. Next Berenberg, Brennan

Brennan Matthews

Just lot market from you for but and pass initial kind them, Hi, did season visited? maybe see of any being away this it's the know for looking been Epic them Valley to have partnership. a a anything at of taking you wanted my thank there? Hakuba you've a just I interesting is took Japan first I if the partner. I season some ask in been maybe time you first that question. -- you know kind a little about of you holders bit your guys with learnings

Michael Barkin

partnership Hakuba the in with pleased year. very -- its think I Yes first

the resorts a been working importantly, Australia from I the benefit at able of North relationship groups was significant that when I Epic to we add we would like there that have folks it being in established access their and we like Japan. could our about the the America great felt engagement think resort and partnership, that pass a think then in with Australia talked we to of and both it's piece the of perspective. we value Yes who one that in were level Pass and considering thought premier the of a over accomplish with guest big

we we the think of as a terms year we Rusutsu see of will our And of this for Australian in then multiyear And Epic Pass, growth pass adding another Hakuba holders particular. driver be benefit that. being the partnership with certainly Australia the noted certainly in

that So, for about the coming we year. partnership and feel yes, very good the establishing Rusutsu partnership

Brennan Matthews

from all me. much. so Thank you That's

Operator

right. All

we Next, Scholes, hear SunTrust. with will from Patrick he's

Patrick Scholes

of been Epic it specifically, couple I'm South guests bit how trends a Latin relates if trending -- international as guests, sales questions. wondering to talk for in wondering American for could has your and about American? versus product North I'm it you Pass a little American

Rob Katz

dominant it's commentary specific biggest obviously the America another certainly North market providing smaller. Mexico markets of say our our be pass within So Australia of is Mexico Latin not in what obviously penetration American market And very right? it. of other would on much is the that. would I of parts outside far right, is large our we're different by that, Well, but component program component

of seeing we the the there. program. Mexican in that don't the materiality overall feel about about good terms results in of particularly we in But say kind the know driving the results good I there America we down feel I'd see that Latin we're Mexico any or engagement are the trends in market.

Patrick Scholes

reason there's is December trip, I Okay. spoken The season. of my on asked Spanish that peak holiday Christmas lot being certainly that's a and a

questions. season was Colorado was that I guest. on that Two curious at in So just extension on all? more material earnings The

Michael Barkin

Yes.

us. season the was extension for definitely think I a success

also not our a to more extended that could into yes certainly part But think make I oriented a overall season. positive conditions relative the seeing guests decision substantive clearly the near-end and of earnings. certainly May who to was local

Patrick Scholes

cobranded of thought Certainly a types one sort Any for then seen with doing mass resorts question, Amex? very we've nature on that sizable on level have that last of folks relationships high you have and profitable with about those thoughts critical say And Okay. a hotel being question companies. fairly card you certainly regard? credit a

Rob Katz

Yes something is are actually it looking that we into.

think that I transaction there kind out say. significant are of more successful programs would the of I size customer or some the cobranded size is more typically

then less we much more the our in of limited transactions summer we obviously the winter transactions that of year. of a is One of in a lot then and and have are challenges transactions occurring other the even the have couple months

kind program kind of right with create your and to that. customer with but successful especially So us -- opportunity we're have an we the the the scale people of the had reach. terms our think do we right kind And that point as partner more reaching think we overall we And reflects for other to be of of company that. seen size in of that is

Patrick Scholes

That me. you Thank very it Okay. does much. for

Operator

David Katz Jefferies. with we'll go to Moving on

David Katz

for me. issues the Hi, I've Thanks scale Europe the that have you that there? that skier would European any magnitude or specific of other the are And one environment. factors participating market quick just made of related and question. any there -- I from you you the given including And is to past sort visits wanted prevent that to afternoon, then in in I the ask gating have everyone. observations the of one M&A about

Rob Katz

any don't in And couldn't about participating our open be in interest in I some company quite fact time. for not we've the in of quite mean The market reason different No. that think Europe. I why our the in business quite Europe I'm -- aware in U.S. structural been business I than is

were if we were in if there we have somewhat certainly we be anything that taking so it approaches approach And that to be true America. different. to is would be in would business the as operate North different taking the again in That Europe to Japan do -- well would to we're

skier European of all different terms that is the breadth size number of there biggest the of number find the business the and countries to of do resorts market the in both is of And we think throughout think I the that visits, opportunity the the Europe. out need really network we I to to add whatever there opportunity that is opportunities our and we adds value feel our we existing it right believe like value where we existing we whatever can have approach. in

there kind of us. successful make to whatever or partners local it for We're effort the respectful come a need really to together that's of of other and community components kind

disciplined it much years different that of of just patient the make to also all we're our to the any talked success. we've connection find just factors we've how sure And it's about opportunities, so be also as as acquisition impactful like a be, going could right to the -- over and

David Katz

just I that If can follow up.

longtime of today the think When pricing, a value that globe identifying to finding what How issue of the would there you look speaks opportunities amount targets? out you acquisition has for the to you at added itself. acquired, and those follower, are acquire the environment I company more sort As look you issues at is the or stuff, just bigger rank targets, as order overall? or it's

Rob Katz

resorts that that, not this of maybe I slightly sellers. travel the of makes there's industry owners would lot of some than are other of is parts a ski what that active different say

a particular can the of you selling both obviously then and and approach go company I pretty activity of the obviously So in by market, if But transaction you in had a we've think without ski a outside you seeing the and Australia. methodical years last look here a hotel where XX back and would there's And look market. some of resorts at buying Alterra. people in over robust pretty a Canada our recent hotels market longtime

the be we we that we and -- Resorts bring that's tend kind and owners resorts that the that that and their hallmarks resorts. to is thoughtful into Vail of passion runoff don't think forever just of approach feels I our I part the want on one connection or something of there's anything a time is been lot, to of companies of do the Vail for Resorts' owner sure every And the other very But we've we we because have think side make amazing our success each an that family yeah, so will themselves group take. of the with and

so And those necessarily way price. a rather usually it of our people. time than opportunity to more bit on takes comfortable quite the And right we're the -- usually waiting with It's hurdles for get are to right that. in the right

David Katz

I been detail clarify been look know sales at sales out all. it and past discussed took it's I way -- if that we to pass one because the we can entirely Got it. don't far mountains, we this new have versus And will year? last may attribute I just know If look sales at the still when at is we the so that up

Rob Katz

Yeah.

So, don't … that what about in is have live, terms people we I not mean, -- kind would in we of markets we I don't say -- we're about talking really -- where of somebody talked but when really

David Katz

Yeah.

Rob Katz

to acquired resorts this, our I addition included sales in products that buys just one we that to -- year or year. they are don't Certainly know gives pass why that of access it. of prior Stowe mean, clarify the our to at … any York preexisting bought the terms New in this reason of the in was Okemo,

kind giving adding were we're that pro the in -- speak, more forma, is of at pass that to those So, preexisting not in of we're terms you just not for when resorts. sales pass new we're sales Does look our at that of so help? a a numbers --

David Katz

it. for your answers. Thanks Appreciate Absolutely.

Operator

no ladies turn questions from I'll the remarks. the back And at any time, floor to there's and closing gentlemen, additional or for this further audience. management

Rob Katz

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

Operator

and again, that today. us. our Once gentlemen, ladies for Thanks joining for concludes call

may now You disconnect.

Vail Resorts (MTN) 6 Jun 192019 Q3 Earnings call transcript