MTN - Earnings call transcript Q4 2019

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Operator

Good day, and welcome to the Vail Resorts Fourth Quarter Fiscal 2019 Earnings Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mr. Katz. Please go ahead.

Rob Katz

you. Thank everyone. afternoon, Good fiscal earnings our call. XXXX to conference year-end Welcome

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

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

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

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

like special our results, Before Resorts the send welcome to I jumping team. Peak to into would a

connection some to the population States able Vail around expansion with in XX the their America into world. this employees With skiing much family. making in largest riding the Resorts and our the are bring a stronger create in and network, guests North we of We to of resorts are accessible the and thrilled United directly centers significant more

So with that said, our results. let’s turn XXXX to fiscal

across including the strong our conditions our for compared in overall year with season the and pleased results the resorts. with finish to a strong are year, with spending We U.S. visitation to prior good growth

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

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

compared across conditions strong, Blackcomb. destination visitation local the and in addition sales favorable supported by continued company and In Falls experienced relative particularly to and The Creek prior resorts weakness were Hotham momentum. visitation, experienced at XXXX by the year, Utah, Tahoe the western results supported strong the Colorado, international year and pass fiscal U.S. Our of Australia, throughout Whistler

Our temperatures summer line continued Discovery Epic in with offset momentum results fourth and XXXX late the quarter our to in by Colorado fiscal expectations in Whistler slow with to June. were and Heavenly at cold start strong snowfall due a Blackcomb season

XXXX/XXXX to season Turning sales. now pass our

Through Military both American adjusted XXXX, from for in approximately very eliminate period foreign the units are rates sales impact the the date. ski and pleased prior XXXX, prior year XX, to pass period pass of by to to currency pass including through pass with We sales the September season Resorts North compared periods in dollars sales Whistler periods, XX, as and excluding sales. September sales results in Blackcomb current the pass increased sales our XX% Peak season both in applying in to XX% exchange for period

approximately increased XX% units period sales prior over comparable Excluding dollars in the passes, sales the Military XX% of year. pass and sales season in in

pass point this with our through season of strong Our modestly growth the markets. destination results our was sales in ahead in expectations

the and with expanded Local first the Epic and on Stowe, data very which seen the In impact particular, of of Okemo, from now we insight our year benefiting at we products, region. Mount and full unlimited have strong the included have access guest Sunapee and in Northeast sales in markets are improved growth pass pass that Epic

data-driven reach destination our through guests with continue broader marketing. markets destination enhanced Our to to our well perform ability

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

we Pass and the anticipate remainder the the Epic contributions Day Military new We also sales offset in and of Colorado modest Epic by concentrated in Day California product and Northern that local and from more selling material our Pass from driving products, Epic We guests, Pass be are partially are will from growth our Epic the also majority growth of Local Utah strong our our market. came seeing sales of products. of majority period. the results The vast

to We are size very our program. the scale and of increased date, especially pleased the effort of pass given with performance sales the

of will for rate As Resorts' season driven lower in Peak impact passes pass year reporting offset reported the selling earlier by than final moving ramp period in Epic the non-military sales, by the be the sales. XXXX our December our growth primarily up and inclusion we pass prior purchasers modestly enter sales in rates season expect of growth we Day of our the the cycle, success Pass and partially current today,

XX, very the year are August to sales a season it that cycle. remains for to to important through Pass the XX% and start prior XXXX, approximately Australia of sales Epic with strong ended Our note XXXX, September XX, XX, is in next off it launched compared XXXX on early growth period dollars in Australian sales September though

with three the who together America Creek, as to Australian of product compelling We leading in through the are off-season Hakuba offer sales at pleased which guests our well very continue Japan. our sales with Hotham locally Falls our with ski Australian Pass season. growing results Perisher and addition in North XXXX experience Valley in at our a Australian can up for the will Victoria and resorts and as Rusutsu network

Now, to and over fiscal XXXX results turn further to our call I outlook. financial to Michael our the discuss would like

Michael Barkin

everyone. good afternoon, Thanks, Rob, and

we from As fiscal Rob very XXXX. with results are the pleased mentioned,

marketing across to With the of to strong base Mountain network segment. drive we're guest of growing spending continuing strategies consumers, high-end sophisticated leverage our resorts and our

which Pass, the collectively result refer of revenue a Acquired Resorts XXXX, fiscal to across skier the net XX.X%, approximately and the U.S. increased as our Peaks, XX.X% Hotham, billion. of For resorts. addition Stevens Total Mountain total primarily to and favorable conditions Creek, increased visits we Triple as $X Falls

prior to primarily from lift increases higher pass Pass, Acquired Military ETP the both in new Total Epic price visitation and X.X% our season products. partially ticket the ETP to decreased the season year, effective lower by offset Resorts, by holders, ticket and price compared due or pass skier

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

or Resort $XXX.X compared EBITDA net to $XX.X revenue XX.X% an compared increase prior Resort year. year. XX.X% of was million, increase of the reported $X.X billion, to million was the prior an

basis resort period to foreign from the constant which the period currency XXXX results. includes applying exchange acquisition of and reported unfavorability $X million company by of prior million current EBITDA rates expenses translation, on a Fiscal currency approximately $XX.X and integration-related calculated

owning reported Triple operate estimate benefited during $X We and that loss. resort from a those million of approximately period fiscal EBITDA portion XXXX that a the EBITDA Pass a of resorts Stevens reported Peaks by August at months September, resort in and not

CEO’s income awards, million Net rights. share to $XX.X approximately Vail primarily exercise fiscal the exercises fiscal or the Resorts year. $XXX.X million Net income $X.XX employee prior XXXX compared stock appreciation of of Vail to attributable $X.XX to share million related per attributable Resorts tax per equity diluted a diluted related $XXX.X in to of the benefit was or to included for

translation, and included Vail to period calculated $XX.X unfavorability after-tax income period prior approximately net from effect million currency the exchange and current attributable by expenses which results. of of acquisition of the the $X integration-related applying Resorts to foreign XXXX company fiscal million Additionally, approximately rates

our hand Our continues of and balance with year business strong X.Xx cash XXXX ended million on remains flow. sheet the We robust cash and fiscal total was net EBITDA. $XXX.X generate to fiscal reported the debt

the loan into of company $XXX.X Peak of Restated term were incremental certain for $X.XX principal Amendment previous and used loan the provides in of the connection assumed prepay billion, the the XXXX. Credit The XXXX, to to Amended Eighth On an million September portions as a in to the Resorts an amended increase of July amount debt XX, entered facility Second acquisition loan term Agreement. agreement proceeds acquisition. facility aggregate term the XX, from with The fund and

quarterly share will Directors payable October very record XXXX. Vail October dividend The dividend shareholders common X, has I declared $X.XX and pleased a XX, of stock. am our that be of common Board quarterly to on be on will on to announce XXXX per of stock cash also Resorts'

to Net and to now XXXX. for attributable $XXX and estimate million XXXX. Vail $XXX our between will be outlook million resort XXXX income for million for We fiscal between to fiscal Resorts Turning $XXX million. $XXX EBITDA is fiscal expected reported be

Resorts contribution XX, $XX incurring of guidance resort Peak $X for estimated XXXX. which from million from through reported of the not million Our closing includes XXXX operations, August date X, benefit off-season an an losses includes September estimated EBITDA

acquisitions the Hotham. integration-related $XX million approximately Creek The in company related Falls expects of Peak to fiscal expenses XXXX to and acquisition and Resorts, incur of

fiscal fiscal of the completing We XXXX as expect activities but we continue XXXX/XXXX in will integration do be the into we resorts integration XXXX, opening. ski for season significant prepare Resorts Peak to

Peak the the resort by expect EBITDA impact and XX% an inclusion driven lower which primarily XX estimated losses. basis of be year business to transaction full our XXXX midpoint the margins fiscal integration the using which expenses, Resorts a decrease for to point Acquired is margin including We of and Resorts, stand-alone as XXXX, approximately off-season fiscal all guidance historically range of compared generated

million. and between reported estimate XXXX $X will estate We be real EBITDA million fiscal for negative $X positive

the the U.S. of Creek weather are dollar conditions and the recovery in All which the the these of economic predicated to dollars weakness of dollar the rate and related in throughout Hotham related environment season ski U.S. and an $X.XX in rate exchange operations the have exchange and Blackcomb normal between $X.XX to current of season, a international seen between Falls assumption dollar Perisher, relative and early in of significant Canadian of operations Whistler visitation performance, Australia. estimates continuation of Australian no in on Canada we

awards. related any guidance of impacts or does to exercise tax Fiscal the XXXX CEO income not appreciation potential benefits payroll stock include tax

the now I’ll turn back to call Rob.

Rob Katz

Michael. Thanks,

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

to our ski will season Creek. season of snowmaking and Vail, completing important experience a investment of will As that systems Beaver in Colorado the capital prior including at transform expect number Keystone be previously we the terrain strategic start in announced, significant early a we projects the

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

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

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

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

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

In like year working coming our an commitment to our to ski and lifetime together providing forward looking last a on for to create this throughout thank our a I season closing, to their experience winter. great to promise would of we’re the guests of employees deliver

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

Operator

[Operator take Barclays. We’ll question Please Hendrix ahead. from Felicia our from first Instructions]. Thank you. go

Felicia Hendrix

thank usual. all Good afternoon color the you as and for

a community looks so seems growth, organic guidance for there it on X%. making adjustments to be – your of your wanted some just implies investment so lot it by to about of the Just numbers, kind like focus

how relative for sales, upon grow do So pass seem just it think and to organic growth to you is about to could season look if the thing kind that of I correct growth your touch wondering was faster? you or a rate to which proper at moment

Rob Katz

and we and broader say time overall we growth we think on a focused pressures, our a growth revenue period moderates continued we I economy into forward. think based that’s I growth, on where we’re think we of little very kind of entering strong after would and probably a a of do think organic years that – expect very we’re what the cost going bit bit, Yes, number obviously obviously

from to to many our and passes that guests Pass, Epic think Day certainly expect I our pass including we’re moving Epic overall our tickets be growth in buying advance. or lift largely day would in sales part, excess Day buying single of season of because right, in growth we passes

but reduction because business on to a over and will and the the our growth in it an how provides expectation Sometimes, that this think part for rate, That growth increase and about guests EBITDA we’ll then of data, the strong stability the part a loyalty, absolutely long-term the trade, last relationship that core that’s such churn the every at that value year’s for driving that of we’re decade and lifetime we’d that year. sales have the season in value pass the stability grow pressure we us we we’ve of is really making been price long-term value have been of guests. that’s see

Felicia Hendrix

think am, rate, that might purposes, really about a for modeling Thanks. guidance and And I’m kind for just mid-single-digit of you asking organic into growth? give maybe to fair you that to think near-term just is not although then I perpetuity future

Rob Katz

right. you’re we’re talking maybe like about That Yes, guidance. sounds

So, travel be why internal absolutely all both come industry, the on economy. bound somewhat I’m structural the the to factors that I other of outperform broader in and on to going ahead. marketing, to by all our the depends say always comment reasons resort broader going a have strength we that apply the business, our we our obviously we to we industry. see said, would we in the But we’re of not But rest think is trends of the number somewhat data-driven again, travel that. the the out but to But portfolio use sophistication goal can

Felicia Hendrix

and just Great. is And on closing congratulations my then Peak follow that. on up

Rob Katz

Thanks.

Felicia Hendrix

adjust The I is million tad the for XXXX us you for than benefit. EBITDA was that higher X you’ve given just a even what expecting if

might I – still XX more that sorry, XXXX. along you made but just including I’m you closed, thought? And that XX those have in synergies million do optimistic you know expect than in saw the synergies originally So you you XXXX? is million just in lines, there EBITDA in the anything

Michael Barkin

Yes, kind benefits the so about this first it’s period anticipate that next that out, at benefit the prior go year. then, cost we you we’ll growth this synergies through start mentioned, not in it’s the as you we to fully included. but integrated X integration certainly I has included would of When that the as that. see modest stub yes, pass level the do think year. for full that full where a was year, full of this and benefit we over have do of million we which And look get process XX some the back sales year year of we of real as full season when We

Felicia Hendrix

you. Okay, great. Thank

Rob Katz

you. Thank

Operator

Thank you. [Operator Instructions].

Bank Next, we’ll from go of Kelley Shaun America. with

Shaun Kelley

lapping level a issues some Hi. documented the obviously earnings how are kind of us last looking you Good just of question terms the afternoon, I strip throughout to Maybe to some guys about sort season? everyone. these go core of when or then high back tell Day just we back at challenge you period. timing are pretty the growth layers. of thought you of a Can a and being well that of early these from the in including mean, Rob, Analyst snowfall of season the some for

incorporated balancing about like terms you So least the we little just can a in what or you help at of kind that some frame thought us for bit in those us received? how of just guidance of you

Rob Katz

Sure.

the of about I tell no normal really about can able season drivers guidance no the from to like, I doubt as a from Blackcomb, of probably last there’s a year be a feel includes and softer little factored forward a probably this have that we that what to think a broader we a Whistler doubt strength I’d growth And off slower and of coming little and think grow U.S., very there and would season then little growth that as I’d little lot stronger the look as bit year in say conditions U.S. in be I strong I strong would in to are little we and those thought less economic U.S. season we picture leverage things said, in the Canada. this look robust bit Whistler I which about growth there in in terms And bit bit are earlier Blackcomb, a we best of is there sales, even the year. bit a think the say think doubt rates, we season better is there in in coming the That well. pass like last no discussion

you’ve sales using got drive it of pass sophisticated aligns for year. of along initiatives did different approaches revenue can at school, with So ski obviously think think last how to in about lift that more our year which the that’s much we this terms we we to which driving I we’ve on a have talk kind whether Investor talked which that’s the growth, we of of of all all driving to about, whether food, ticket driving lot of Conference that

But us into a like into benefit, can because number growth action the the feel have that this the been that flows about year the a things so, in a out. put what that in put going showcase actually slower range that guidance we year we gives can given confidence of we last that growth feel us the so was all what rate that high. think might works, And core have just that’s of now rate, which lot this were of year like things we into boost many we and really discussion absolutely over we give

Shaun Kelley

obviously and some pricing specifically on – as year product the of as virtually or although the particularly some destination as Great, areas, as think about a or ago of or side growth we growth and there. there? impacted not any you any out areas you but all you environment think that broader seems competitive region the questions Can competitive the about call-out saw many then thanks. A-Basin loss still Colorado I every and strong side think it line get the then we help in landscape on the at sort pricing up, And by like some us comments of in surprised being nearly

Rob Katz

surprised that say nothing us. would I has necessarily

products structure changes haven’t preexisting are, pricing of to certainly are huge made any really and in with of the the think ours I that. most line we largely

line we Pass we have Of course, obviously this of part that seen expanded the product in even Day Epic selling with success and good season. early with the

So a positive. a had been we Colorado, I at year pretty think that’s last Colorado. I strong year in And clearly think

So I some think there’s component obviously geographies. our this of with lapping

A-Basin, our I I like results we’re is a offset growth we’re little into are as so Obviously, renewing doubt no And sure think we of there’s some we because we’re of payments. because will are softer the folks seeing. would that. resort. we feel But bit expect that think who I’m pleased seeing there Obviously that quite a great But that. partnership be with guidance in baked our said, with which total total some of not

on the in constant improvement of actually guests. giving terms the and think growth the options sell our continue growth that up of putting we options able and them to speaks that feel personalization over of we’re given we and how to years many I the we’ve both the had think resorts, showcase and to terms revenue we’re to in size products really giving guests like so to communicate we’re the the the I the be program then

Shaun Kelley

just of me. hotel about it what us but the underlying that’s just than the Great. help better in contribution Can guidance lodging underneath I you’re actually it some of core you’re think And of given kind in think trend guidance front or were for seeing that me is would bookings last what came lodging? there we seeing does kind from include little be lodging sort on a And Peak. the from what expecting you thing it

Michael Barkin

predicated that that I’m positioning obviously guess actually help, not you’re feel we we more broader that generally per the because front of obviously also economic seeing. we that se, can baked new our have. where but new beyond We markets properties number all But information lodging under of of will lodging we’ve continuing. into so on Peak, we on our this and say taken number think business that management going more guidance all flows we are, put that kind good travel numbers we the the the is unique into trends, the do speaking environment about numbers markets, broadly a which have that even of out outperform of I’d the to year lot think I

Shaun Kelley

Thank much. you very

Michael Barkin

Thanks.

Operator

Chris you. next go with Deutsche We’ll Thank ahead. Please Woronka Bank. from go

Chris Woronka

than bit a how are at international, destination your the guys. but or anything drill us looking tell look your looking. visitors afternoon, kind can going there you peak more can of anything to going as you Good Is there about look Hi. worse Is to your maybe Wanted better little to year? international be from period? to it’s that down out winter last forward on during tells comments

Rob Katz

I’d the Well, the that international there’s international say front is on we think still what front. challenges on

visa softer, of in I seem continues certainly certain issues UK think areas. a the combination currency factors; to issues,

would we guidance. think bake that in we – think that’s as that go into to I imagine have I So tried our we

largely the be that of our lot in. think yes, more for be factored especially based see so will business North driver And certainly of a in year. But broader of I this I terms company will our – over American a would hopefully results and

guidance, or on no on international on can that but based hurt in think a help soft the we’re I think I there’s margin environment factoring front. continued doubt

Chris Woronka

some to down the five about of day, kind of going three you day, Do or do algo of break have try prior guys four of trends? – based an that to one on figure guys how’s of out think your your kind two day? kind day, underwrite we day, that marketing as the Day internally then how you impact Pass, And enough. fair Okay, to

Rob Katz

up yes, a say more ranges the choices that this to how November know biggest the different that’s Yes, so probably through front But of Probably one is market lot that’s in a that the really that the we’ll offered say And days. would business we’ve think product various estimates certainly more frequency. that biggest. we Obviously come probably the of I now as lower on no higher kind and unknown just the is terms a that something I would on the while. come went in, two-day October probably absolutely. frequency and Obviously through there’s components of frequency December. and a then products of that’s with doubt. all that that But business. about learn product for will into most we’re been going on side area we go product and about in the helping toward end. in in lower that’s and mostly the have to We thinking the We’ve

we expectation, it really all say of is product, uptake, terms that that playing is product. powerful which it actually this of again of was is gives how with think confidence can aligning trade trends what feel us down, largely or good launching up trade the really major a our expect terms unknowns of all there out really product I in that is in with this mind so the many point, is pleased thing we given that good is in to I performing along a new which a

how options get into take and Of think is wants how the market of of mountain. more chose of years they but to less a to and season public I more terms than for fully access obviously pick real integrated to choice full will number looking a a the course, in and that core group skiing speaks want the to it

And can and so the stability and all be getting purchase. now commitment, we loyalty the the they advanced still do of can that of

Chris Woronka

of are know guess just see multiyear I a – ancillary of there kind the Peak of there as say opportunities these is Okay, color. are revenue should Colorado, in a side or kind at but do opportunities but time? and Whistler that’s the little process, on forward on look resorts the kind great And not on the same know I on I you of have I you all you over kind side? then many such, ancillary this bit, side are

Rob Katz

out when how I to see and with it’s integrating think but the give Yes, wouldn’t network. and specific years you that resorts the in going major I line successfully do access calling we’re Peak. the the to so of a complementary opportunity destination our they look and Peak network that at business, resort over we necessarily is the built of say resorts a lot with population of skiing U.S. some network, that centers in our the what pass can really access local regional on same is within

terms investments is there we of a experiences that up think benefits lot the network from in teams the pass putting on wide. data working and And going make wind the there as so well to can of we lot with of we think onto that people just side be opportunity going a to having there’s as the

impact the going Peak’s over yes, have that years. about the optimistic very So, to we’re

Chris Woronka

Okay, good. guys. Thanks, very

Operator

with Sundby Thank ahead. go next William Ryan of you. Please go We’ll Blair.

Ryan Sundby

the my and for question taking finish congrats Hi. a on Thanks year strong to guys.

Rob Katz

Thanks.

Ryan Sundby

guess you a you kind you pass feel are helping adoption feel there like market the bit? do in given little I sounds drive then and slow on I call pass last you either summer Rob you two holdings your or on you Can it’s a to there? tried maybe about up beefed like where questions for Do like talk Icon you’ve seemed it thought Because there the might that that it and over then maybe sales? Michael. function switching Epic outperformed guess in resorts quite now And more it broader seems growth you the flipped. added recapturing have again dig the Northeast, some second, have that can the what prior overall out and that of now end like back strong of to holders of or pick up are year of might you’ve at

Rob Katz

would wouldn’t board. Memorial Yes, on segment, pass performance on the or really Labor say an I Day overall really a the our stronger certainly than expecting stronger sale but I single performance somewhat likewise I geo program across performance think performance. Day the necessarily every I say would just say or and we saw were market

it bit how think we’re to with both people. I marketing, speaks the little approach engaging a So on

helping. absolutely I think the Day Epic Pass

I in buy to think that how absolutely earlier people looking always Military their the passes, which opportunity is we right, helping. And pass this we’re do cycle. at are move

us deadline that’s we the we because maybe but that true. also earlier in So between I of that that think buying doesn’t new at confidence targets who pulling year it’s and a about for see grow in in time estimating It saw now gives out, overall that’s usually same of who great Labor or know always necessarily people have to that October of kind when the just flipping, move sign. we seeing we’re think I the of Day deadline. that the and some whether can real on we cycle people growth And forward. cautious earlier, them the some knowing kind your point when success we’re were of more mean Again, that top people about renew

it’s those important of really all we out. point that. go have And – number a into So factors to

can’t pass to think but benefit therefore know having big tried there’s right. everyone could say got makes of data, point, resort markets focuses say, I little that given time with precision the perfect that what Northeast to amount this it products of the just of I deepen that same the impact out things of to true. a but And it, the great, have is the us grow components we multiyear a program makes on. guests on absolutely. tends number call to and it’s the We complexity the the yes, fair our and on to that’s we’re allowing a the now, tougher I a have it and certainly you’ve think to Icon be We forecasting I the to. of resort. different at broaden better one Oh now selling lot program would speak a I But not it that’s in having different resort, the obviously was

we an these we on those send all And to for can So to a in all us informed and relevant make direct have went lot personalize this to with capture this City Web efforts. that’s to more other and and a a more Canyons, ad saw make or it on we’re were kind that just can and the with opportunities Whistler, when people. information year somebody these data, we’ve we That and their resorts acquisitions. that huge who it running even we of able from an outperforms last marketing at long-term all of drive we more guests comes data or newspaper the with a pitch component some where data piece lift tickets a is Park program seen site certainly seeing them, these therefore far email resorts. them to of and this in growth how we broad-based buy people And the are

think is helping. it’s that we So that combination

Ryan Sundby

Great. the Thanks for color. so much

Rob Katz

Thanks.

Operator

[Operator with We’ll Alex Berenberg. next Mr. you. go Thank Instructions]. ahead. Maroccia go Please from

Alex Maroccia

taking Thanks the afternoon, Good question. Hi. guys. for

due ran And people to that Peak conversion type purchasing how Peak people of passes the any delayed their acquisition. from to of know the then had you who did opportunity the Peak or prior with the issues I acquisition? up see Epic? you So end pass to the converting potential a many Did

Rob Katz

and their for what Epic exchange So Peak to did a that pass mean that’s if they yes, where you closing I Peak make those an a a who to a it into allow this get folks people will them. actually time way, take pass customer to of want we’ve not and to pass lot them for process that think until there’s support service to of and is for no choice have guided our start because folks rush try actually to, kind

So we’ve maybe deadline wait fact in mid-October. after to them next advised until even actually in our

to Peak those insight So tell now and it’s point who people you’re maybe they’re for would us haven’t Epic. as and because at pass pass. And some and we don’t buying will honestly look you have point yet bought bought like. There’s out, this too on Other the conversions right. people who have the hard Peak what that

the fall matter bought no Some people who what. have in

Peak really a on so into ago access us couple any literally got any we hard and to on their pass of have or for side insight had dynamics. those do of of And deep obviously really dive trends the days have a a Peak So again, just not on to kind information chance to their program.

passes So behind both had look year who put this that customers who are that’s But the will are marketing give really that Peak either year quite or our a been understanding we all full and in to still opportunity they chance Peak campaign hopeful would ticket this first for Epic though of buyers haven’t will of customers to the it. a – close come. have that is a We lift products. obviously a lot about to

Alex Maroccia

you of now and on long one but for I not and other Europe helpful. a the both in great. and get resorts one competitor bigger a That’s Japan resorts U.S. you looking M&A guess in the what with necessarily And Okay, in here right partnerships with Thanks. then you’ve thing are term, in recently over the of just Asia? Europe into elsewhere, there. partner terms the done globally just second potential with had seeing to at you front

Rob Katz

think certainly I having something it’s always conversations about. we’re

bringing which our additive to We that see bring like partners. don’t kind existing to partner we the about that of is in that selective pretty We’re make to We relationships to and duplication. sure partners any we’re want. in want

that see to duplication. like don’t kind of partners Our

that right the front. I think have this in now in we on coverage feel we Japan in good North about Europe, America,

dialogue are not new be major have but continue se I’m sure per driver. we’ll going a So that partners always to to

to we the term Snowbasin Japan, a have the an benefit program. take these acquisitions, to think our a opportunity with been year and for number been Valley can pass to I have into alliances and or is in Japan and really think addition that in impactful added a kind our years, and all to this stronger in Asia that added of the holders a or that some of I quite have. will up kind deeper Obviously notch investments, think Rusutsu also have obviously have impact of we whether going have we and be relationship of longer those resorts, hope in Europe which Europe of benefit for piece, which Sun we’ve the had actually

Alex Maroccia

All right. Thank you. I it. appreciate

Rob Katz

Thanks.

Operator

from with Scholes go you. Thank go We’ll next SunTrust. Patrick Please ahead.

Patrick Scholes

question resorts rolling be product other Colorado, that light far you upgrading out season? making Hi. as in afternoon. doing A on snowmaking upgrades. you and consistent you’re the Western for sort of Good would snowmaking as of especially to for what In more early

Rob Katz

location many, sure ago many mountain think to at of the efficient base our of probably where say change coverage I of Yes, many snowmaking just I not biggest I’m less and also would our in would the happening, has if the impactful we think many, time which most I I Vail historically investment place than Vail over most think coverage season. the the that’s which years was the of up other resorts set say about Lionshead is start had really or is

feel the out the made a Chair elevation better And top this into because opened bring X area get investment product. just that’s of of to to reasons the of going able And and mid-Vail it so be one much why the much, be we the higher that to to like main we’ve won’t is mountain yes earlier.

say would probably So unique. more I that’s

absolutely looking be for the resorts resort, every that that in have or same approach U.S. be our resorts. the to Keystone, of each one like one the not of open strategy would think first I’m we’re I sure Keystone

piece to then I Keystone to don’t so Other improve know open indication those probably this were we And lot U.S. other would those we we’ll scale a know because see a don’t one-off. really resorts. unique In be the I of take say one that more going of I What at Vail opportunity much going of stands But Western a kind necessarily forward. the of that is what situations larger first Beaver resorts I out, more that’s I unique. some probably offer. to that is thing investment snowmaking an Creek, you’re an our of opportunity there in of be know a can will – that look certain the don’t want probably of in more area

probably had we very would think year. each why this reason unique resort thought be own impactful this its I

Patrick Scholes

Colorado with past Okay. up and a apologize you. I earnings on quick is cost those snowmaking? in said this follow the calls. if And of just Thank What you’ve already upgrades

Rob Katz

But this cost was snowmaking more Vail the part point. no the of We’ve a not discretionary I any capital investment year. of at can’t significant provide doubt our this individual details released but for our efforts,

Patrick Scholes

Okay. Thank much. very you

Rob Katz

Thanks.

Operator

[Operator Please Jefferies. Thank next Instructions]. We’ll you. ahead. Katz from go take David

David Katz

and respects of being on urban getting system you’ve the suppose congrats cherry that wanted is are of within best? I you and are year. in And systems customers is a the at at the picking the the to captured, afternoon when theoretical there the capture fit theoretical that system, value discussed that those trending? ask of some or lower we Good I new look Peak’s what it how sort average sort about I’m to ones Hi. are strategy value in as customers great that the deal entrants

Rob Katz

I think there’s a mix for sure.

come obviously of at especially the So that never large out markets for visitation going true ski probably our are percentage and a from of the any other lot West think those urban to of folks ski I a and resorts. local never

And may come it – take said, those call folks in they of is value. would years of that back to all trip Brighton, can a another to Brighton terms go a to now value move a sudden lowest back Brighton, Mt. we the to taking so to let’s have person if of three – come somebody system the then the let’s come that into probably take of But Mt. year course could first in resort. Mt. year the if years, can all we West. be that them But get two their out where kids, for get be sudden they it that

out use system allow personal West guests. now see trips the have folks do even into to the system. our if time kind our do take into absolutely from or the their our do all huge maybe And first the this them us pass local do program, that as but then is lifetime we So get we not the two in like local value to high, to them relationship these who see or year And has value one days we value more resort make data and in to to resort. get them, to with ability of

two people piece a would got this of I – for opportunities. just urban local say who the couple other opportunity The that the go different we now really have is We’ve resort. to

go opportunity because now have come in of folks now these We we region the an West. the Northeast. in have them good to some resorts a And mid-Atlantic and actually number to the Northeast, now mid-West out up have opportunity have to we that have of destination

being ski direction, a really them on somebody’s how it we with that right of to skiing with, like starts them our they broaden multitude often this gets that promote behavior, company. relationship with this see understanding their and mind migration So understanding in us then our to who but a pattern all the relationship, to go product can having able

David Katz

real thinking you at in continue particularly does versus look? partnerships should internationally, just the estate the landscape to that to model own mountain, as opportunities Thank follow in bringing growing think one about up last look partnership investing we you. internationally? about more And How is versus the

Rob Katz

I strong have right. say a Yes, assets, in estate, know I but that I’d real let’s call still interest don’t we it think investing

on it’s investments of So these component lot and comes in in a support in still business to the no have these has screen may be a the think Potentially radar have that’s I partnerships to think often and something operation do which But step. we I opportunity for the that that that first markets. partnership on a resorts, the with bigger local pass having – there’s like would I had investment, a the think the doubt businesses our ownership if think interest even can they on having there’s doubt no have these to a have partners an that many we in still the we at same program. operating and impact strong of can us time resort resorts more help the the good resort, impact our stake, the or local having you we financial of that is deeper

partnerships we got So aggressive resort, obviously got big investment, the an our obviously we’ve these willingness we’ve if investment if own to changes in certainly be on a more resort. the if

of opportunities So there’s or migrate take like but see in and my right wait to number mind a the does I think opportunities would operating opportunities for ones. right, to partnerships we from we still opportunities, time, investment limited have it the and to

David Katz

taking for your my Thanks question. for and answers good. Very

Rob Katz

you. Thank Sure.

Operator

We’ll next Boyer take Brad Stifel. from

Brad Boyer

Thanks for taking the question, guys.

no their Just strongest followed a big it’s years, priced to for capital suit. Having me. quick Peak several one wasn’t the reasonably necessarily surprise for access

Just a of curious, EBITDA particular their the to decent as capital amount transform you an inject of you to asset? see opportunity where really assess productivity a is XX resorts, there anywhere

Rob Katz

said that’s where as we’re to benefit, I highest can and at spend to we kind spend something we’re at can the assessing. on return. season, something drive look absolutely get going before where think that resorts focused that’s think but biggest really the time we this on projects on you the of going discretionary this significant I to opportunity no be dollars Obviously, year

pass for that bring program. people about share that more the our of of that broaden the some Some can about will be resort resort market so will be how itself, we into that we

at actually to lodge, have look amount that. So I in and in Mount snowmaking, certainly things were And think spend, we’ll put a like all also I that. they significant Snow, think base able of kind capital like water of of

good we think feel about that. I So

good a into number job have what done capital can – Snow and I of I of think certainly has resort. of from put did it the a had resorts a been the done Time from lot they distance see we a bit just think a maintaining

City in that there’s with amounts and nice dollar a of that don’t connection have kind would capital or know Park impact I they one So go terms that their inflection have nice there’s terms that smaller Whistler the size doubt of guests. of of probably in, but that maybe of a these any could no is resorts point in

Brad Boyer

just be labor challenges upon We we are sort me. any of front? you Obviously, a seasonal market. then are follow put all initiatives lastly know That’s place you’ve that that’s mitigate might the you labor. labor give just just helpful. any dependent that pressures And these Can that on the of on sense us all feeling the that for help to And in businesses Thanks. all front. facing

Rob Katz

couple to trying ever anywhere why because communities that, overall a just housing different it’s I Many critical on health projects say the we that sure front think critical help finding I we as – is challenging. company absolutely unemployment Yes, terms the are makes a resorts labor out side up seen the right resort can, Affordable as we’re is a is terms on last for our it’s the of we talent the housing around push operating low at making – so we we’re doing and in numbers aggressive we’ve marketing the in ability provide recruiting And things that that side out environment. people would think labor can which forward is affordable in level lowest we And scarcity years acquisition of using fairly the that in leverage I a community. using what of remain lot techniques remain even in and the right on reaching really of we I of because of more in experience of at with at right possible of as on look so very with still those market, basic possible to find still way. to use resorts the our people, the of recruit. to best on high more a jobs many the and lot aggressive and sophisticated recruiting the match that even more and this but many go centralized level of when our them labor the that a same that

and I we you’ll to labor that’s they’re about I even labor in general most to something be are of we can can There but maximize think hours talk think use once how, way the the most how technological opportunity certainly that how here us probably with candidly everybody terms efficient the there’s hear in great more number sophistication to in again, to do. possible. we of seasonal has than more solutions systematized more a get

in we’re So planning the overall that. economy shift, it’s not obviously but could our mind for

use the We’re data, successful to planning talent more skillful be and front. technology, to on more systems

Brad Boyer

Rob. appreciate the Thanks, I thoughts.

Operator

Please our Wells final for Fargo. take And Marc from ahead. question, Torrente go we’ll

Marc Torrente

afternoon. Good Hi.

but going any got of sense on the of Just need some and that improved? the data the that of to is be that pass key earlier something access capture, you will of the questions contributions at quality their season to program recognizing just company,

Rob Katz

we I don’t have of sense great that. a think

the data but our again, certainly that think we pass good I that. would on season on there just they’ve side, got assumption got in be

same the not think have procedure. I or the capturing a probably and don’t they that systems that think have operating mixture their data resorts how are we of then leveraging I certainly – same

that see real opportunity. we a think I So as

will we Just when to going this is unfortunately best but – data to deal given big we’re can that us. our be announced, do do a closing think something we’re radically to when is improvements going we’re whatever for not but able it the for capture, certainly opportunity change their something to I year to be long-term

Marc Torrente

weak that the that guess you maybe Discovery, are lastly the where And original over targets going start you for to see I it season perform year? great. your but once snowfall, program on Epic Okay, given And contribution or Discovery how your did did this expectations against slow then season a time? for start versus where do

Rob Katz

We and lot just think there, the business a the progressed, a combination from of think the and that would which on we bit cold normally Epic summer I snow obviously almost as of the to literally better ski just season. many Epic up of got finish would that Discovery Yes, provided better had bookings overall a out but and hand say think retail other I in Discovery again, lodging, held little that X was activities actually and not impacted a beyond June, of strong I the results through impacted I areas story. July impacted some through see back the very temperatures

of little there. a bit a So balance

think absolutely on think think program. below original our I broadly Discovery hopes of the it’s I Epic I for some

expectations of is, been I and exceed visitation. we every maximum we I very feel we the provide they remain opportunities, think think time and that think to on – the for constantly of flow-through And we’re visitation, up how a like resort, turned maybe The we I a the of single fully flow them impressed ownership surprised good and with the be both path the results of summer drive through, the Whistler resorts maximum under that All are this great long things that do that. Blackcomb’s for but get the takes ultimately we’ve the financial ROI, pivot like in overall haven’t and to strong very around on get from just corner to over getting have of good completely the a it. the year experience people ability very, the summer invested kind total business that’s continues to that on bit thriving takes stable obviously long our in that And to and still is in terms we we’re build focused business news there. out us piece far going so

might been an there’s bit and in of offset Blackcomb. So maybe to strong very the a we in U.S. growth than growth wanted have a slower Whistler

Marc Torrente

All right, you, Thank guys. great.

Rob Katz

Thank you.

Operator

over moment, Thank you. questions. to to conference there the are further turn At no like the moderators. I’d this

Rob Katz

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

Operator

This for concludes participation. you today’s call. your Thank

may now You disconnect.

Vail Resorts (MTN) 26 Sep 192019 Q4 Earnings call transcript