MTN - Earnings call transcript Q1 2020

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Operator

Good day and welcome to the Vail Resorts First Quarter Fiscal 2020 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Katz. Please go ahead, sir.

Rob Katz

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

afternoon on Barkin, the me is call Joining Officer. this Michael 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 December 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 our Relations website, quarterly which these certain also were 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 along Today's the filed are with non-GAAP our available also www.vailresorts.com. with

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

Overall, we in the pleased results fiscal quarter. first with are our

Australian Falls performance first record of on at at Perisher in Hotham. and basis with Australian strong year strong resorts dollar delivered year an our and operations another very Our Creek a results

of Pass conditions, sales, Our our strong Epic Australia chairlift and the the at momentum the good Australian addition in Leichhardt continued supported Perisher market.

currency which Our year consolidated from results the to an in approximate created the dollar, million from impacted $X reported results. U.S. negatively the Perisher headwind translation were quarter strong resort EBITDA by prior relative

addition new Skybridge. Blackcomb's in by operations strong sightseeing, its the performance business world-class Cloudraker well, the biking very and with Whistler mountain supported summer performed of

returns. grow and Our U.S. Epic business Discovery generate strong financial to continues

Teton to properties partially with from group our period. Lodge by due demand results part comparison Colorado properties mixed continued Our softer prior weaker lodging the year at experienced our results at Company, in to business in offset success Grand

XXXX/XXXX and resorts our early pass sales North to now indicators. season Turning American for our

for December units of year December the season our XX% to pass dollars in prior selling compared up X, North XXXX, approximately sales the period, sales in through ski are X, season ended XXXX. XX% approach we end period As the American approximately and

The impact Blackcomb to currency Peak an $X.XX pass foreign periods pass Resorts by sales the both exchange adjusted dollar Whistler eliminate and in both between Military include sales. are of rate and results applying sales Canadian Pass periods the U.S. dollar and for of in

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

growth, from growth As Epic primarily we dollars Day our sales expected, Pass of the lower products. inclusion in unit our than was

to program We see growth in are expectations. very pleased our the our exceeded pass strong sales that season

Sunapee, in Mount year strong the now full expanded We guest to and we growth of access from are in at addition the that benefiting the unlimited and impact Peak of our data Stowe, have recent region. see continue Resorts, and Okemo, the pass markets, which insight very with sales improved first Northeast of

our growth through ability markets data reach outside the destination Epic driven North of Day also well and strong Our with perform and continue saw enhanced of very destination guests our East introduction to the marketing to Pass. the

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

from results our California guests. We Northern are also and Utah seeing strong

those were Basin results Epic local lower expecting. we Epic will renewing declines saw with holders were Colorado our products solid expected in pass without partnership be with with to trade more passes. came products, offset where in our products, Arapahoe softer market from on and Sales offset Pass Local certain growth than declines majority less and Those holders than new which down payments. was in The by of regional growth our our in we solid sales Epic pass Day Epic

year and product We Epic its and to Pass particularly in strong value Day as our with an believe success in opportunity our very expanded of overall begin for incredible frequency growth exceeded Epic products. offering two a significant expectations, Epic to this three-day and was the lower well the the we Day first bodes contributor guests. was to Pass, long-term a highlight

Epic with the pass destination particular of came vast majority Pass new holders markets. success sales Importantly, in from Day

strong the with program rates, pass Our delivered adding military program generate also while renewal continuing strong holders. growth to new

including passes will total that incredible year U.S., loyal guests Epic the expect of Australian $X.X group Canadian, Pass, purchase million, all and guests. this an highly Day passes and exceed and We number of advanced passionate on all representing

portion largely line is around lodging our by lodging of averages in the on are lodging a resorts. our prior it for historical bookings season for small the bookings to that inventory Based bookings. have overall the important year around bookings made with this though represent the half season winter of time, note been Overall,

The deliver experience has snowmaking have and early Both open on to Vail Keystone resorts guests been strong allowed early investments, to Thanksgiving. across over Vail October and with which snow Northeastern Colorado, at conditions on our a experience from and resorts. and encouraging season our benefited much Keystone Tahoe, October XX to open improved our and XX recent

have opening time and of for this Tahoe Northeast and opened than with have strong earlier Utah years. weeks prior resorts resorts typical in our certain Our conditions started in year with resorts

ski to to resorts with transformational off as all our guest North are the experience of American several our enhancements welcome to the XXXX/XXXX We guests season kicks resorts. thrilled at

have experience our Vail, Beaver snowmaking and Creek. significant made have Keystone, at early transformed the we terrain season Colorado, in that systems In investments

of at earlier these than for Vail more than terrain years its investments, with guests. experienced offering opening in XX result and Keystone our improved opened opening, a experience earliest the As an usual elevating available

direct to the village resort. a for the Tombstone At Park with and Canyons that Express route more center over the and lift permanent new barbecue of quicker, restaurant four-person riders City, the a area from out Tombstone we transformed skiers new and provides access

In base with Breckenridge full a as of improved experience. completed new and the as and children's and ski Creek and renovation school ski facilities, at the facilities Beaver school rental area well addition, Peak child an ticket care improvements to we retail X

remain our highly ticket a guests for investments purchase tickets resorts that and guest substantially on their ticket advance. experience window the will focused mobile improve technology implemented the eliminates across lift new We fulfillment that who in

which technology Crested stages as Butte, investments marketing one Stevens lift point also and significant restaurant on the our the project across final upgrades sale resorts at of data-driven as replacing our included We completed and in efforts. at automate of invested We Okemo Teocalli Butte, and the mountain upgrading Stevens and one-time of well and lifts Daisy completed at Pass, acquired modernization Crested the to Pass, Okemo. Brooks of

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

Michael Barkin

and afternoon good Rob everyone. Thanks,

period quarter of reported prior prior $XX.X mentioned, compares the million our reported first million in with EBITDA of Resort the $XX.X was first to million are million, we $XX.X loss compared of revenue As which pleased a $XXX.X was same in the year. first to Resort loss Rob resort the an fiscal the performance. in net quarter, in increase EBITDA fiscal year. a quarter,

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

loss of and attributable $XXX.X same $X.X to the approximately share, diluted $X foreign $X.XX loss the share million currency fiscal compared Resorts Net million $XXX.X for a quarter as by prior million million current diluted translation, first Vail for of the the in included the for to of calculated basis net after-tax a results. a integration-related of or loss The was expenses constant of loss the unfavorability first prior a XXXX and fiscal period exchange applying to of or rates quarter XXXX the period year. which loss net period company $X.XX of effect currency per on of acquisition per from

$X.X the on quarter of hand and strong. of net Our balance ended sheet $XXX.X cash at We debt. with end quarter remains billion million

As Resorts we of and $XXX existing part approximately Resorts Peak portion million of acquisition, Peak a our facility expanded by term debt. loan the assumed

X.X total the note that though for and ratio Peak end quarter is this only Resorts we to to between that of includes full results. EBITDA, debt and reported important Our results Peak was expect it we do months net XX incorporate ratio trailing closing as the Resorts times loss period decline season

declared payable December on on has I'm XX, also January $X.XX per record announce cash dividend common of XXXX. shareholders stock share X, Vail Board that a Directors XXXX our to to quarterly on very of of pleased Resorts'

at of million Additionally, of the $XXX.XX. price company an average stock quarter repurchased $XX.X the approximately during

turning our outlook XXXX. fiscal for Now, to

the which for based seeing are we in that for resort reiterating was indicators exchange the and season, results XXXX that currency quarter foreign is EBITDA the first reported are at our September guidance our Given rates. we earnings time, incorporated release, including assumptions fiscal upcoming included on our

results sales still to period to been us. North primary in it is encouraging, our that season ski of date begun has just have American remember pass important the earnings While with front

plan upcoming of report to the period and XX, January certain to always, date season As season period holiday the ski XXXX. publicly on key ski metrics season is we a

Rob. turn to now back I'll the call

Rob Katz

for Michael. generating committed of to experience shareholders. and resorts, a guests an lifetime in our creating Thanks, reinvesting our We remain returns for strong our

but XXXX, plan for are complete capital we to investments our signature XXXX, announce announce in March pleased season. XXXX for calendar will We XXXX our plan year

experience expand Park Creek. XXX-acre one lift Colorado and We further the family intermediate highly expansion to in focused we'll in lift-served high-end McCoy settings This with is most experience and are Beaver accessible the area idyllic announce excited signature at differentiate to rare terrain the a opportunity accessed in terrain Beaver new of beginner Creek. a of

at visited At guest to popular Breckenridge, serve X in intermediate enhance circulation the the lift most speed the high lift X. for increase to a will install and guest and additional U.S. plan will and the on Peaks This significantly new experience access Peak X. we the further terrain resort four-person

to to resort at the chairlift key with and the and base government six-person high a experience replace and of a improved U.S. circulation Keystone, guest access increase out order capacity resorts speed Peru in of plan to approvals, Subject of four-person top lift the the performing area we the in one

at increase add enhancing critical we restaurant significantly at to seating seats Blackcomb a the largest America's Blackcomb, expansion on-mountain restaurant The further on Mountain. North will experience XXX Rendezvous the Whistler capacity Lodge resort. intend The at the

to our companywide plan approach. capital will includes several that key further Our investments continue data-driven

the business, automated lines in including allow engagements that We ski second all across our of in implementing marketing are phase will that the aggregate view a platform and will guest rentals. personalization of and now to of holistic more digital improvements school drive us

to and completely and allow more investing platforms our a ski and revamp off be during times. seamless to purchasing also provide upgrade digital online access to broaden will peak process pricing more to dynamic We discounting advanced rental

Finally, that improved launching we and will be app user a will offer revamped experience. an mobile EpicMix functionality completely new

continue to scalability the include our discipline implementation processes, in an our We technology labor business efficiency to improve financial our improved to optimize This across our as corporate to infrastructure and planning systems network. optimize enhance invest workforce and we will will to and cost system of analytics. automated work analytics, scheduling and business

the of Butte, resorts to Pass, at approvals, acquired the to upgrading two-year the government existing a $XX lift experience. ski improving replace including Okemo, XX program. chairlift school from we a of of of and the relocating children to investment recently a person area a Crested four transformational complete Quantum the renovation and phase chairlift, lift, to experience complete facility plan are the renovation Green through guest base to final planning million six-person and fixed-grip we and second restaurant, Stevens investment Ridge Base four-person Quantum a the expansion speed the Okemo, the arrival of three-person Subject and enhancement high For

Peak activities to We spend Resorts. on $XX plan integration approximately to million primarily related

One third-party by capital for $X at of calendar Breckenridge includes estate Keystone real site XXXX plan sales XXXX one-time related calendar million, to East Run River Peak the Our developers and site. which with are approximately X and land investments funded in completed

investments to timing creating projects occur municipal projects those remain development XXXX, these in While approvals of calendar we expect subject these to uncertainty.

in one-time for Triple associated plan with real to one-time that related we originally Peak million expected capital Our recoveries Pass investments occur improvements, XXXX and reimbursable items Resorts and million will capital, $XXX $X million, integrations, Stevens the estate transformation had XXXX. be insurance of associated plan, calendar capital $XXX Peaks approximately excluding with to one-time calendar

one-time will items, total approximately these be our to $XXX million Including million. capital $XXX plan

We will calendar detail be our plan providing XXXX. capital year further in on XXXX March

Resorts focus across experience year. to Peak commitment the holders outstanding to be guest Our our areas attention of continue this to the to to our thrilled service delivering and XX we are our company's an network ski And our pass welcome efforts.

our a to our fun the employees all hope like of and of ahead. their has enjoy passion, We to thank hard would commitment lifetime a lies of the at I for our which and success. for always experience all season that safe center creating work you guests,

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

Operator

[Operator you. first question take today Felicia with Thank Hendrix Instructions] from We'll our Barclays.

Felicia Hendrix

Hi, afternoon good thank and you.

season than it you that was you going really it you're pass and what your considering Congratulations in, in strong Wondering guys percentage Peak kind what to so, folks or better, if worse question, there. don't to that understand And were answer any can of I the expected? chance on of year Epic sales by of converted great. a help think kind you maybe us frame can line,

Rob Katz

Yes. typically don't actually in One, the together. two that two of bringing would we're we're the but that say, sharing kind also we not reasons. process databases share detail, I for just of

just And a say, so, pleased to at from just their of most even of results the this point, look quite results base the really that would little with that could results in ended think from at public I obviously they chance us a because while see I a obviously say including have program, fully haven't ago. Peak, we yeah, been here. we had we've Peak's from passes you couldn't because

then program growth a has in having opportunity obviously might our the an different new terms to obviously convert or the rate that both incremental by of the Obviously, Peak in depresses passes, resort. in who but Peak over upgrade coming people but our modestly, also there's destinations from where people

those feel it. capture, believe opportunity about opportunity of Again, and full very strong next to yet first all do our on we still front that collection guests really So, market so to year, year. to had in the very a there haven't is data for good a we we

And we the on also I strong we across saw of pleased destination in our trends side quite are network. the we think a that Northeast that the saw lot

this to laid in felt I out Peak. So, confident just that everything season for year for pass come think including seeing out the very fruition, and we it

Felicia Hendrix

down, you you That's to release did helpful. the remarks mention both much see really in in see then, press did prepared didn't And the that entrants and trading you your and new program.

also just you little expected, was and see complexion as there as wondering you maybe give more of So, down you I much of didn't kind the can you the why bit trade coming a sales color folks on program to us can the then the if on their didn't you're able needs because now it but back? suit past, let are recapture they're and who tell in Epic

Rob Katz

Yes.

offered Epic those and as think holders – on of down, kind see I we price more of those lower didn't broad for kind very think think speaks happen, trade might number options X in lot higher obviously into products. A think one, the those and from assumed a what products. to even holders I of I our have and broadly, that points, obviously X the the would is down, which I there which I at we well lot we little of that a trade say loyalty Epic volume connection Epic we Local to of guests. the loyalty And pass Epic in bit

take the season just them. who also our just time we pass, challenge like resort that I potential – program didn't the that introduced over the Epic it's biggest for think of it's a live things one convincing ski a first was that it when to – people a option Pass, was near will time was

that we're into these makes think marketing is that on convincing of discount. message journey, one, the a all three, great Now, is a obviously that effort clearly, actually a I two, but pass new a out economics product skiers them and gives which right four-day put them, really sense getting number years The takes it. we for

I and Epic is for So, with Pass. still ahead, the minds Day I the program lies kind that think our in opportunity of overall think

specifics bringing that terms into terms people some program, program. people but the introducing think on comment Yes, the of I in I trading, benefit to saw new importantly, back a of most we of the can't in – absolutely both but really the of

with was our predominant database Pass on that that saw Day in and people So in success who the we of terms previously necessarily people were were Epic I not think both lift tickets before. who prospects

for of good all are the those signs future. think I So,

Felicia Hendrix

are you. How Whistler my slow the that folks that Thank then thinking I helpful. there? That's And getting about final Whistler, just some concerned starts. demand you is is patterns seeing just question are think you're on

Rob Katz

conditions anywhere that think network. And key are definitely turnaround Yes, else Whistler to before going Christmas obviously see we're I in obviously holiday. hopeful probably think at we're than more I the challenging that our

on results think Whistler, look holidays I that's for beyond. certainly the people of in the with certainly again and what will in depend – the our of part fine points to going expect. some But when line data obviously upon course would I conditions we generally think come actual largely

I good longer who that think one Whistler times. is of of a the people have with obviously lot book you lead about things

a so the what as gives conditions still comp to opportunity holidays, at on us think think, But a be some the And I that of said, to of this time. the I going still yeah, good so, kind strong have, essentially that obviously, holiday before think conditions still is period. are I long dependent

Felicia Hendrix

Great. Thank so you much.

Rob Katz

absolutely. Yes,

Operator

Shaun from Kelley America. hear we'll Next, of with Bank

Shaun Kelley

kind an four-day about I think results more took, Epic won't, give think color saw you you how of but with has of maybe build, or off the units. kind or maybe different everyone. and of start was us like to about probably relative close some from maybe you saw product Can what was outside to past upfront talking specifics of the maybe military four-day adoption product? Day the huge some introduction, because a in from military to just the either time afternoon, know the Day about pass day relative incremental variety. just the Pass? some products, just I Michael, gone kind initial good the and XXX,XXX behaviors Hi, perspective, to help to pretty us it without or giving took Rob the you how those launch

Rob Katz

in line but just in I more than was to very, the Definitely Obviously, I product say really Yes, definitely it by that those served not of who broadly. was discounted different more the military. would kind specific, specific, with provided broadly mean, changed access forces. and how we four-day. armed very military significantly a

would we results I our obviously the a in the quite mentioned think more pleased and we're and but that in revenue the program. say improvement I from So, much was remarks, certainly see obviously the adoption, to seeing second quick the both year there's loyalty in

of belief think that continue Day Epic my Pass, to to I take will broaden. is it on years a number

so those a is be it's could because expectations we're would and I'm I exceeded to take number to that on will – where that pass in and take start that I begin how that frequency such the product. to little part we get think, our adoption come in a Epic product, and where for design sure products that strong of as close X launched when for but us years very we think it X, maturity long lower like we to it and off said certainly foot, it us a on pleased to to the especially us unclear

Shaun Kelley

kind and the were toward then for as the you on both lot new destination And of are I Pass. think are lodging lumpier, if that think we like, such in little see there seeing destination Thanks. like probably movement strength times I the that maybe know new similar and market-to-market ski of noted lodging lodging, around throughout, obviously some even sign-ups they longer you're Why would I but think a Day just Great. seeing any markets have likely seeing the you to depend, little lead going a observation so business on what also I from guest the commentary why side? in pattern bit is might great be a a and destination, activity maybe different? to more

Rob Katz

you're on. Well, looking I that at going dynamics are different think

right at great I talking season’, if the think obviously Pass how on we're still of we're of come think, a into doesn't bookings if the resort. people making many the I obviously to then represent huge Epic terms total ‘lodging in what about that's although ultimately strides percentage looking Day we're the

obviously change feel any speak But the Epic market. again lodging that also is that, I on like guidance about bookings we release the it support it's and they builds a operated that for in of see I to and lot over really where and we're think smaller overall lodging enough to the our don't would we total the Pass, managed lodging And especially certainly bookings talking know properties our confidence. feel our a and resorts the delivery of right, think percentage Day overall for drivers good right year of that yet about our owned I

Shaun Kelley

Right.

the for may to kind dilute put less line growth in accretive missed – we that total or it growth in Okay. and we base. of rate, I you then the the that did me than the – growth when now Peak last was rate just, to you about sort think have it of saw answered that. overall? the or impact at question as again, move about to trend for total all, I question, it core you it contribution with it what overall, this would it, be was did Was the and to from Peak I overall just what did Thanks but Peak if think alluded apologize Felicia's think And

Rob Katz

And us we it's with the because think them things track are at to happening of that precision. include again, Peak. many be so Yes, different any for can't precise necessarily there I time around you same hard when

the have pulls it Passes program because but Then that, Peak Epic the Peak moved actually Passes you down been to our increases mentioned, in kind about program, for us who year. certainly who people and the all I out certainly bump able come growth feel two Peak, and So, piece. from But haven't by every are in then of to we people as analysis is do base. obviously, is – a every databases good there rate in Pass to there for including we those piece there

so, to around And a Peak buying is pickup were we they understand in Peak little right who pushed verge us on it's of of for bit hard fully that and the people – see is markets Peak, is it when them before that because were Peak, going edge. the just over to

overall of we'll I primary all any think but those driver our of to absolutely was a like I not think mean I positive results the now assess I this next Peak we're trying positive, feel by for we things impact think stretch, can step a our Peak and again, first see impact I absolutely in we year year. a bigger think, of think I the think make, kind that

parse So, in and we out. truly kind line I possible think largely but it's to not to what expected, unfortunately it of

Shaun Kelley

much. very you Thank

Rob Katz

Thank you.

Operator

David now Baron from We'll Baron hear with Capital.

David Baron

in. dial didn't I No,

Sorry.

Operator

Mr. Baron, did a have you question?

David Baron

not. not No, did question. a I bring did I

Sorry.

Operator

you. Thank Okay.

hear Maroccia will with Alex from Berenberg. We

Alex Maroccia

guys. afternoon, good Hi,

in you're in for wondering sales I'm some looking me. now. early political what buys pass America of the and down of season international those some to South one just Just seeing year-over-year customers. right unrest the I'm at

Rob Katz

this is important very obviously, at think Mexico us. point, Yes, for a – don't I market I

little the other less we've some the in Mexico years that in those important, challenges especially a a are a over couple the important, of think of countries outside couple and the both dollar bit Brazil the years. Latin of have of markets America because other some think has of receded become less with last seen little bit strong over I economies the U.S. last I

this see – trend. we at other don't of don't So, countries being I think those don't we I point, to think is some a overall of Mexico, present outside – material

in So, year. probably we're company a bit thing, a impact to but same the the of upcoming smaller little the watching

Alex Maroccia

That Alright. was it it. me. Thanks. Got from

Operator

hear We'll KeyBanc with Capital now Markets. from Andress Brett

Brett Andress

Hi. Good afternoon.

Just question quick for a me.

off caught period On any most guard holiday the you the give that have not, early that this last period, could confidence leading do December year year, you us that one stabilize year? indicators versus of the improve, if last

Rob Katz

we say as and whatever the but we at think have would we stretch lodging indicators, reaffirming stare don't in totality said, that have we same we market. make we Yes, about I different time, obviously don't information by they on indicators decision have the certainly obviously of at of some represent perfect the include in but that any the I guidance, cases

that matter experience sale guidance always our Obviously, thinking course going we no are from good, feel the as say about incorporated reaffirmed taken what. last year put but this feel and we uncertainty is, on our year, of Pass in and be there good is conditions, going to piece, be we we obviously those the certainly always but have so to yes, variable, what I'd

Brett Andress

you. Alright. Thank

Rob Katz

Thanks.

Operator

we'll hear Patrick from SunTrust. with Next, Scholes

Patrick Scholes

and good Hi, Michael. Rob evening.

Rob Katz

evening. Good

Michael Barkin

Good evening.

Patrick Scholes

on or Just a – of point clarification. question

for the To rate, does about specific, largely talked bookings? prior lodging year coming overall just are is You season the in be those how book books ADR line occupancy up the with and bookings. room on bookings for that

Rob Katz

yes, books about nights not we're just and room comment does on commenting occupancy rate. and is on the that – So, not

Patrick Scholes

Okay, I'll you. Thank – it. Okay. That's

Rob Katz

Thanks.

Operator

from Katz Our next Jefferies. question will come David with

David Katz

Good evening everyone, quarter. and on congrats the

Rob Katz

Thanks.

David Katz

I wanted about a of longer-term growth. kind to ask

in we've is what front seen and may domestic discussions acquisitions We market, that many where in in made the very about the past lies terms focus Europe productively in we've and M&A particular and the M&A have your be, Asia going ahead on forward? of you've the talked what's about –

Rob Katz

been we've the – successful our think I very been North one acquisitions well, I think Australia. Yes, in in just with we've would acquisitions I add not think, only domestically America, but successful I with have

been quite months the been I also opportunity contributors huge have the certainly summer strong. in incremental has and think that know to I growth, think Australia in past You

select I North in are bolster to can think America opportunities where like feel be we going to we there network. continue the

also obviously better And our those open any approach, resorts from focused using enter both in probably to think like term in tougher I there in been flexible Europe. markets. particularly be a short more we could think way in and we'll markets to opportunities And feel in of are of but markets, those in we certainly then bring that are collaboration we data from are that we've Asia, to Japan terms passes long-term and the have quite think in into those ultimately I I partnership, from and and obviously

in doubt as we been number pre-occupied from front years, no North and opportunity of doubt also look future, America. North outside takes a been on no to over last the we but the that things certainly more – of coming it we've So, longer with doing we've lot see ultimately America the

David Katz

Got economy. it. the broad been that Irrespective seeing appetite, not a haven't quarter, have recall of in counted ago? the the we Rob, but through I productive. And to in what are you're weakness days economy, consumer international asking intend acquisitions what very versus transcript call went your the of been XX the did last acquisitions all strength, was very, for you just and it as on I business from references – perceptions where the and suggest to not Vail's terms

Rob Katz

I don't know.

that I business, the inside about of necessarily seen certainly seeing our I U.S. that terms I'm sure not U.S., reading same we a think our think we're reports I obviously but research quite discernible in stories sure change that that the still a business, we've change, trends discernible is, in think mean – I'm the inside and I'm feel we're the I in good and not everybody seeing

a was I in obviously U.S. little think Europe. elsewhere instability dollar on the mentioned of some it's in what tougher terms with with earlier international front, stronger

I So, season. not bit our big since has September more the unclear, a that on call I outlook a for that, are certainly it think enough affected seeing change think but that front, little the

David Katz

Got it. Thanks very much.

Rob Katz

Thanks.

Operator

hear William Sundby we'll from Next, Ryan with Blair.

Ryan Sundby

Thanks taking Hi, for congrats Yes, my and the quarter. on question

Rob Katz

Thanks.

Ryan Sundby

upside so, I Rob, I came any base, expectations feels one years was more off-mountain drivers exceeding the sales you at great. kind or capacity the from you guess, pass where maybe it Thanks. guess, maybe for on-mountain two kind driver of or pass that handful thought even out selling what could you've it's to of kind or the that – look prohibiting doubled upside you upside would biggest over the like of And constraints as second, kind you just going that are year, are your forward? from, to biggest or when see then starting passes for maybe of last of maybe be point

Rob Katz

Sure. We're not seeing capacity constraints.

lodging I feel places true think handful a of And into stay. people issues. I the often, only limiter there is to run for that capacity in of in terms side, like days, on-mountain, especially any destination the typically really year we and on we are capacity think,

I really concerned I think, pass so, would the – has program the side. that about something I'm moment, at obviously, our grown, do our and being stability not for that not added to think quite the company, the bodes the capacity that in And tremendous we're constrict though, growth on having short-term something long-term. that loyalty and dramatically well that's

is, the think which I probably different on say, we in the we've selling opportunity. which pieces. knew potential two upside particularly, was later Epic two Epic strength One, three-day, we I saw cycle, driver, On certainly great the biggest and talked obviously, already about, would the

of coming I program, lot that to the quite into think, of a all the positive. both prospects was program Pass new new people,

And real the products. in I Epic Epic the strength other was and Local think piece

that well both speaks think it. and guests I market design those do quite again, experience this the we So, about year. the our it and the we fact volumes of the offer, product with how saw Yes, we of to communicate both

of those were year. strong this all yeah, So, positives

Ryan Sundby

Thanks. Great.

Rob Katz

Thanks.

Operator

Our final come from Marc Wells will with Fargo. question Torrente

Marc Torrente

taking for quarter. on questions. Hi thanks the guys, our Congrats

Rob Katz

Thanks.

Marc Torrente

day, provide to on type days your And you it's base can local then compared destination, more expectations purchased to originally? purchase, product detail are versus of are maybe product that sales, lift makeup With those since you buying able more tickets, affordable? tell more on who consumer the they those any Epic of previously

Rob Katz

know in strength product, many the go will you of have don't out Obviously, versus in I our say, the would you who prospect I that I've say, just the I mostly obviously, don't with expectation, on just your new that currently that what Yes. pleasantly when sharing market terms by think of aligned database. the earlier, would – surprised for product. how the been come in you – people

all Pass think So, I real program, to are a who new that, between just was of the again people that positive.

markets, so very The the much more the in Epic in markets. strength much Day than Pass destination local of is

I opportunity forward, think continue towards. our to we where craft is it's exactly go was marketing we very as may it that, as that that's because targeted now, which product, represent an again, and But right approach. a much good, destination

increases, say. but seeing to are hard we And

have about that season we've overall opportunity see better opportunity kind again, as improvement provided we'll given the people the now, – of out, on of the probably we insight the company. and good that the think feeling frequency but right kind play it's I

Marc Torrente

Okay. Great. one And just more. then

their in Peak weaknesses, for what additional have their program, learned months, you've that of Pass a owned strength, Now terms etcetera? data, few needs, you

Rob Katz

been, I think, the really one, impressed we've with people.

a totally committed. through got I they've a to big, like guests. the And Obviously, challenge committed terrific experience they've to think big incredibly I transition and mountain employee this. it's go the passionate, been a very base, on the think

see. So, that I strong, resorts. great to is their very right, was snowmaking for quite obviously, critical of also Their think operations, many their expertise

And real so, there. have no they a surprise strength

Pass effort. And I – are couple data, with think program, opportunities in years of had early think they're they their first very around still but good I that absolutely, new obviously, a

the And of data basis we kind have that that a of for here serve. really at think markets capture broaden we us to that the they that rigorous disposal team use much have impact local they and an our have on can the more tools for data that's use our and bit can so especially year I next as a little opportunity, we in better,

So, I resorts, expectations. our aligned well. think, much very Good run with

and a broader history the bit be more value. addition just us – bit great think to Obviously, a they'll I functions. a to we to right and think little opportunity behind of corporate marketing, that just drive can help then many have on mountain our us that for we more data, little a use real team sophisticated the approaches

Marc Torrente

Great. Okay. Thank you.

Rob Katz

Thank you.

Operator

That will remarks. to conclude additional any Mr. today's closing question-and-answer session. I will now or turn over the for Katz conference

Rob Katz

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

Operator

today's conclude conference. does That you your Thank participation. for

disconnect. now may You

Vail Resorts (MTN) 9 Dec 192020 Q1 Earnings call transcript