MTN - Earnings call transcript Q2 2020

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Operator

Good day and welcome to the Vail Resorts Second 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 second XXXX our conference quarter to earnings fiscal 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

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

resorts Blackcomb Northwest, XXXX the visitation years for Stevens said, results be Pacific challenging North experiencing in through areas quarter. So, visitation. fiscal our resulting second year resorts early season across very total, of the below quarter XXXX, challenge a has to in in Overall, expected performance. and XX areas critical compared the to at poor down experienced and through than XX% season Northwest international American second recovery continued holiday strong the period. Whistler in our destination our lowest to was that resorts let’s Whistler had our weaker and prior January, Pacific turn Visitation In Pass, both the with expectations in and with over results. the Blackcomb those of and snowfall December XX,

in season, during in expectations. by at period, line offset the holiday our period a start at January continued post-holiday was our expectations significantly for through Colorado improved early below and the City Western the The though U.S. improvement modestly performance Park destination resorts visitation Resort. After with strong guest challenging was our partially our

resorts benefit by expanded resorts. which Finally, weather offset Midwest our off by great Northeast season, continued has the Northeast are variability start to across supported from been the network, to our partially a challenging the

Including results year, effective ticket second lift ticket in by pass the products and inclusion an lift skier generates driven price increased offset Total ticket from Peak from increases the to effective Resorts, Resorts, total with X.X% season our results compared both a X.X%, growth visitation. decreased prior by X.X% the which lower in price revenue in quarter Peak price. of

X% rental holders to XX.X%, Excluding season compared inclusion by effective to increased of the Peak dining, the prior the and prior school, revenues ticket compared Ski and X.X% year. retail Peak Resorts, & respectively, and XX.X%, year pass priceincreased driven Resorts primarily

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

Michael Barkin

good and Thanks, Rob, afternoon.

on currency foreign resort net to of As an X.X% approximately by period current basis Company X.X% of had resort million, acquisition year. quarter was and year. second million, performance. period Fiscal of of results. calculated expenses, $X.X million quarter, integration-related the XXXX Resort rates a was to $X revenue translation, second EBITDA reported strong the currency the areas mentioned, which constant included increase million and Rob compared from of and compared prior EBITDA In the has fiscal $XXX.X prior exchange favorability prior season applying reported increase an to $XXX.X challenge the the

period of per second share integration-related acquisition after-tax $X.X to net $X.XX prior included million expenses the diluted compared million $X.XX of year. $XXX.X of income income per $XXX.X quarter XXXX net XXXX same the to and attributable the for second Vail of diluted approximately income Fiscal the quarter Net or effect million. in share or was for fiscal Resorts

Our note on this includes hand, a was results it we the Resorts to trailing Peak reported results and our closing sheet times debt ended that X.X for from important balance remains only is full and quarter very ratio cash total million with of decline we expect as year Resorts. period end, strong. XX and months net quarter the EBITDA, Peak ratio We incorporate between that of second though to $XXX.X

our season season ski fiscal period pass and the impact the season to pass fiscal XXXX the Sunday, and season the results. of subject pass American metrics are rates and for to Turning metrics exchange is for revenue prior The season applying the Australian through for are adjusted beginning ski based and metrics resorts prior reported periods. period March North American ski growth the of foreign This include our compared including now period X, period peak XXXX. eliminate from year for ski in areas, fiscal results to is X, for end review quarter Blackcomb’s our currency excluding Sunday, metrics mountain on ski periods, resorts season-to-date and the XXXX adjustments. both Whistler interim current reported and both to of to revenue, by through XXXX, the in The North North regional areas American revenue estimated period results data March the of destination season

including each compared was Total to revenue for lift year of applicable period. season-to-date pass up an revenue season X.X% portion period prior the allocated

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

as offset coronavirus, XXXX indicators Reported the that $XX remainder identified million be January secondarily XXXX and guidance from resort. for Colorado the below February, the expected driven in challenging our of by to our Northwest at the by for XXXX, impact range our partially previously primarily issued on and XX, Based of resorts March approximately at and and EBITDA midpoint through continuation strong any year trends resorts below that we visitation on performance date Resort expectations excluding our City the at February, results X, the of estimate January Park was results fiscal were from modestly January of throughout and Pacific

impact guidance coronavirus uncertainty issuing XX, and for surrounding our our XXXX of broader the on not XXXX. travel time the impact performance the of U.S. on we this the any the are Given withdrawing January fiscal and market previous issued are to specific guidance at Company,

trend week potentially weeks. worsen With by modestly expect on visits results We our to destination X, provide In continue in a prior marked March updated week. from we below to saw intend the and the XX, XXXX. upcoming change skier and we ended this performance XXXX, in March negative commentary expectations

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

Rob Katz

Michael. Thanks,

confident remain cash of the flow We and generation business in stability our strong model.

will strategic We returning to high-return opportunities, people, to quarterly our remain in to continue plans. and be share capital our and projects, committed stewards repurchase dividend continuous strategic through investment our disciplined our capital capital of and acquisition shareholders

are X, XXXX. record announce of Vail Resorts’ a Directors that Board April the per shareholders on cash of to payable to pleased declared on of March common share, $X.XX XXXX XX, We quarterly stock dividend on

deferring our until current caused market June. we decision on coronavirus, instability the dividend a the Given are by increase

associated our our our guests approximately committed returns We capital to shareholders. XXXX lifetime plan, associated an insurance of XXXX. and year generating capital plan. invest expected in excluding items in calendar $XXX our recoveries million the one-time Triple and capital transformation $XXX $X strong expects Peaks occur integrations, calendar to with reinvesting Stevens to The for and with real investments for reimbursable Resorts to one-time improvements, remain Pass we million, creating Peak resorts, experience one-time originally Moving Company that had estate related million to a of

family to with expansion calendar a in Park a XXX rare year Creek, plan experience. focused further signature area opportunity differentiating As of announced, the expand terrain acre capital previously resort’s the the Beaver McCoy includes XXXX lift-served high-end,

the at new also a speed capacity to the Lodge lift to high Blackcomb high in increase Keystone, Mountain. seating add Rendezvous chairlift, Peak speed a six-person significant and with popular a at Breckenridge We the lift serve replacement on XXX-seat of the governmental X, to at plan a subject Peru Restaurant approvals, four-person

We digital guest implementing the lines phase remain to engagement view school company-wide will across allow holistic us will highly including data- second focused personalization driven improvements drive all automated that more of that our of will of the ski investments platform that a further on marketing and our aggregate business, approach, rentals. including in and

analytics. infrastructure financial scheduling technology new completely user functionality and efficiency, of in We and continue our planning optimize EpicMix offer system improved systems the upgrade are app, to to revamp an including automated platforms planning our labor and workforce and our mobile online phase implementation improved scalability and an plan also will invest first enhance which and to improve business our corporate to of rental to We experience. to ski digital

million We across program $X to phase million investment Peak the $XX initial Resorts. are planning complete a of two-year,

also Peak are Okemo to We approximately final and million $XX on investment two-year, Crested phase Stevens and of the to activities Resorts. planning Butte, integration related second $XX and planning million spend for program a Pass primarily complete to

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

expect prices through season. purchasing Day to lift unparalleled of XX% up day. of a Pass off we Pass, we advanced recently the in continued one The they which all and this skiers new advance and skiers transformational commitment launch launched its to and Vail holders, commitment ski products. skiing XXXX/XXXX and even Resorts ride of value ticket success Day same to all last pass North We purchasers Epic of for Epic products. growth Pass for plan riders ski convert ski now lift season. with discount were Day as the existing in window Day providing riders to only flexibility second Epic provides in season advanced the year, guests Epic by product skiers all Turning pass in to and we pleased best the to the if riders the ticket giving or season very launched to see through year is value its sales, American Pass committed into Epic prospective and the Pass Last and season, available value

we epic year, the products offered the with discounts are mountain our by pass Epic their of This experience holders pass introduction on providing with of Rewards. breadth our transforming Mountain value truly

positioned Mountain no XX is as designed incremental North For Resorts resorts. school and American integrated beverage, uniquely more, kind to to lessons, value potentially rentals Rewards point holders receive network group this Vail across-the-board No ski a simple be XXXX/XXXX to four. of equipment major for this offer of with product our per possible. pass of savings guests as and operated of through the ski and our and, and other our offering of to sign-up, owned and blackout creating pass XX% tracking dollars food rates skiers The guest across-the-board we lift for lodging, family will an conversion satisfaction. riders, off continue day Company hundreds guest where guests higher drive of expects the pass from of provides savings no product, purchasing no return and will season, commitment new and to advanced tickets Epic see ride is purchasing dates, of level

to value to are By in but and riders Blackcomb up a offering. guests Value ski the to Day advance in pass one who not purchasing unlimited is Blackcomb also deeply Northeast up in ski the holder. is for continue our XX% to in through on Company skiers a Northeast $XXX of access this will Whistler purchasing Company the a The the with and product. prices, world’s of Pass at more of the access and destinations. the offered key window Northeast all Whistler days off XX day ten passes commitment and introduction guests in Blackcomb $XXX days with students, new comes tickets for unlimited to with our advanced adults of pass the both lift regional value skiing flexibility the restrictions for traditional conversion and Vermont for can markets season The of that for of advanced commitment guests of need drive that to providing an season, offers interested discounted Pass guests of Value is college Pass. access Pass The from premier Day convenience Whistler being new Canadian to our exclusive and ticket This and pass customizable access The from and at holiday lift expects dollars, York mountain resorts product, New provides sold may delivering one value, Stowe. offers pass ideal purchasing ride

the our Finally, in on the potential address important we that to guests impacts and focused the moment coronavirus. employees highlight the and we of health remain current as safety of

from We are in and recommendations all local state contact with and precautions health and officials. following

are open and good normally Our fully resorts with conditions. operating

stakeholders. understand resources remind investments that We do creates an right team to provide with everyone on the of us make experience efforts. environment resorts time away In good a temporary to an many with footing pass our and all other, who financial a continue not remains class challenges. we of that from we And and current macroeconomic sound do ensure ways, to very importantly, the and those to lifetime that have how long-term the committed and our program, an to uncertainty we business of for company it’s understand when world incredible let any each dislocation external markets to even every dealing incredibly people guests day. this Most broader the in the take

of many our for very of at time But dedication. It’s been what incredible much engagement a and lies we their trying And success. appreciate has this our course, employees.

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

Operator

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

Felicia Hendrix

just your much. decision start kind so the wanted of on Thanks Hi. Rob, to off I on hold raising dividend. to

decision remarks prepared kind but wanted always you are hear highlighted is, of the conservative a just strength the of strong guys about prudent, how end your the Just, balance the business and of there, there. bit sheet, at given little you and your to more

Rob Katz

Yes.

the into I which think, shifting decision, trends, as the by seem I is marketplace quickly. think day. be was shifting to that The the went Board at macroeconomic obviously we looking

we’re being the that are the sense coronavirus that’s I a think in. impacts and particularly obviously also the industry obviously industry, within certainly felt travel

dividend, amount And sense so, decision had a record on increase of before out could the consistent we very we an any wait was could to or but how -- plays track increase. we’ve I that think there the making quarter see increasing a a this definitive of

Felicia Hendrix

Okay.

decision, of wise And so, look so in is and really, really to make change it a kind would waiting just for? that environment, the [indiscernible] so be would what you more like just overall would it that you’re

Rob Katz

Yes.

-- a I in think understanding markets, of now right in but lot also -- I travel. think both of the financial the movement there’s the in obviously just economic markets for

so, go. making or quarter, we will guess they a actually be weeks a the I seems given think, is And that least, going things changing a it increase decision Board moment to my to probably -- and And set it’s with today. within be the at the is where I certainly clear June I the more And information the a it that they everyone, like economic the be get more were bit month, tougher to at to lot than would be without few by time by day. little an making understanding of felt today, a will probably really think environment -- obviously, to think,

Felicia Hendrix

wondering, are closing you to fair. of go, in suddenly us really That’s said Are decision? also than are why but behind there off, with And guidance you little that but, a you any what to you certain you made totally significant seeing just uncertainty, could in just season then, color areas resorts early? have peak understandable mind, and this others, or would given isn’t decision, that left of that that the wondering, release could kind is up withdraw that what with better said, Yes. give so press your -- the are that holding much you drop anticipate just this

Rob Katz

seeing all are spring Easter. absolutely -- would We in keep we not not they’re moment, operating I think, previous experience think season. resorts open, that last the Yes. resorts off for turbulence really the our any see provide to And operating declines, actually all sudden many I that. week we plan on of we’ll a positive much our started were coming to left we want visits. any a there after we the schedules seeing and talked the looked weeks are the as of the of lot all think it’s ski to operating at in then break But say some won’t minds modest I course, to coronavirus, -- whatsoever our be they March, us, trends about continued in following and in that certainly, our that change. will weeks is as change of, and do expect for worsen indicators big that some pretty started And we -- of over I we on ski guests, be Obviously, think But of not true at Easter. be strength won’t I went we and those And that of normally. changing all any we a really doing declines to week’s way major open and our week, -- to bit.

where little to And would be bit sitting. a us so, unclear we

that to XX. though, performance of close we by a that season in coming an is a point the would provide the ski is weeks. also, on handful your why to fact the It March update about we It’s current said

a a So, still coming piece I probably by then, American the lot We more uncertainty a have is of summer than impactful all ago. how northern but will certainly some we’ll either. like another to as uncertainty think, will continue just little line, to our of be this we sense bit Obviously, that there’ll affect have Grand just ski Teton And we’ll on weeks final on coming where Company resorts than sense. less better line. a few not North have Australian feel may certainly our then us we for much resorts, have hemisphere Lodge

Felicia Hendrix

That’s for kind the last me super has across if client been if just wondering shortfall us that’s you just, effect how Japanese season could helpful, But thanks. that. the out been one early lag through and from for then -- of the your you and at of attributed shortfalls the And is there, Whistler, talk the part snowfall from it? demand

Rob Katz

that on doubt Japan, to don’t have you been the a give I Yes. soft. no has there specific international but business data

that hopeful really more we see and recovery quick not pickup, think were to and -- occur. think I a that see I just did

that And for so, biggest season. this us by drag the continued to be far for

Operator

hear We’ll Kelley now from Bank Shaun of with America.

Shaun Kelley

but, lot renewal you’re people. kind purchase from? able customer quickly sales? more pass in Rob, question, obviously, and do about with how across your to CEO side, landscape to the most a very And global because the some a going think to a change quick kind of the just travel starting just behavior experience virus. as you at a think how around fairly I then for markets insulated of level data end on high what’s even strategic travel in it, for the own is we’ve your or of we this maybe lot now have mean, So, it’s some instinct expensive sort high that of all? of around obviously seen a of possible kind do reaction started stock other also you very look side, your change we both, especially -- implications the of industry one And forward behavior purchasing just drive and on of the the and to thoughtful as a

but medium just sales of -- bit operating you pass the about So, just a here think impact kind can probably upfront, we thinking a also perspective? term a understand of help from little about us

Rob Katz

but I faced Yes. dynamics we’ll travel say caveat again, coronavirus. dynamics, yes, with around one we’re two of dynamics, in understanding think of itself, because I I saying I issues by say I’ll be this, would be will just all different think all pretty the would -- this travel

that; we domestic that focused I sure probably do think to travel, our not we’re have not. think immune the heavily that parts other I’m on of relative to I At to will same a business. inure going time, we’re I benefit. be to front, obviously, think And

season a our program pass this. huge think, I strength time like a in is

we inure our that’ll go to And as so I But immune whatever through be think won’t it. benefit, we go to through. again, we

is second travel. better I of of impact that, think, the again, any like this. piece I economic parts relatively also other would feel And we again, on say, -- fare the I should than

We our have characteristics industry. demand better supply in

to continued have invest. We

I it think like delivering will we now value. the think about our for through XXXX, is effort opportunity Rewards recession. when very the absolutely we season went our a and terrific I introduced And message. Mountain be Pass, back Epic program XXXX-XXXX pass pushing much Epic I this company really as And the think, in was was

Mountain honestly, is I I stronger. program think think, program, will Rewards today, much, much larger. our pass Epic much that The be

slowdown is we geographic we’re some I of of have now, data the feel piece going -- in. sort, stronger. Our about right position kind good we’re if some just that very the is that Company and much going through The

peace. coronavirus, the perfectly But any I some I think, not positioned purchases. Obviously longer sure feel, do the on. then continue incredibly issues attractive I’m actually for in there is But there be will quite sure happens feel And to from pass even are a there’ll I I like no short-term. with the making again, challenges. impact buyers, and to the doubt this, moment people in a for Company And I’m exactly what in remain be a if will short-term think that, term term, longer

Shaun Kelley

one And then, numbers to to one. maybe just turn the for specific

below expectations January. modestly out release Colorado called in the obviously that You in was

I is Could I update obviously, January at periods sort some just of quarter. It the specifically little probably on mentioned. factoring in into able lot be you you your at continue time, that post-holiday the of provide a to color leave this there, of doesn’t February. you give a in least think know as of period the XXth? the because more relates remaining to of think, it was But, -- end I as bit it

just changed us on was what of was kind not like we had what isolate going seemed or can help So January Because XX, there? it an at least issue. you through like what Colorado

Rob Katz

agree. I No,

the But some we obviously, disappointment I and I Colorado, not I’d think about across think, some year ski the felt of strength in Breckenridge. being previous good early And Keystone, we think we and Beaver And our we of say as industry to into before came overall softer even holiday year? saw, did an a we saw what truth this Is had the coronavirus? season. think it think felt, continued hard season last exactly see Creek was. sluggishness. I then, say looking It’s period, sluggishness over in kind throughout comping seeing City continue we’re in the year, as it, I very going issue we the strong industry and has in Park the I better that Vail resorts, Is is, then, that more we out travel it. got results and as to perform very well. that not

it that our was completely it there definitely gap the that as across was enough primary But added this really issue to Blackcomb. So, added again to Whistler board, -- well the it wasn’t the performance. issue but was there a --

last strongest we QX. But, have were into we now what to test the of and At Vail been. particularly shift the meaningful. was as we chance also Q But the that a there’s point, in that because to So, seen I’d and out pass of on going the to significant, March visitation some that out March in saw coming in into more sure the very both things we’ll also say Colorado. the a it the those but period, have strong our of indicators I’d the get we seen was highlighted actually than information what QX holidays, of We’ve expecting are is And in the this resorts that’s a to going of certainly, Easter. in allocating get Q. totality had we’re -- the visitation from more those QX we coming real not too and season, see any have year, -- revenue -- say, not -- terms of but one season, in of finish this later and would we right in in year QX that

be I’m there this not but point, assess So, some to of we’ll that coronavirus. that be shifting, could able at sure given completely

Shaun Kelley

Thank all color. I appreciate the it. you for

Rob Katz

Sure.

Operator

Woronka We’ll you. Thank take Deutsche Bank. question this from on Chris with

Chris Woronka

maybe new different this additional be you going kind to or Good want year? something of virus with early plans, a in early to throw or you and season purchase to what’s decision still you extend your know I kind -- date again Hey. or But, offer I to guys. of indicator process in to guys afternoon, ask make the the some fallout. at point, think that would might have

Rob Katz

ski we absolutely intend offer pretty our think that pass we guests guests -- XX% prospective new Rewards Mountain Epic is ensure school, feel right? and I holders It that, discount our Well, to it guests. on a rentals. and group offers really and very It’s both that lodging powerful a and understand different, to very existing food,

-- So, value we feel message want actually while. again, the this we to for this stronger much for in think program like is past. we -- a given current because has into it’s lean perfect been we the obviously a But, planning event,

So, very about we that. good feel

our or deadlines. I certainly world any no moving this change the things We like guess, everything in But, now, to right of point at have quickly. plans are dates

or of of So, always hard deadlines. to our of tell, resorts but at operations any this our to point normal no the any change path

Chris Woronka

would XX% underwrote more was volume, follow-up that -- sales pass think impact you appreciate what then, what initially hope And saw Just cetera, discount for question et terms guys how the really, going? holders. enough. is more Is etcetera? way of terms about how in on that. financial you of be that I in guess, Okay, fair kind do we you the of might that the I financially pass

Rob Katz

Yes.

-- discount products, using there’s a there’s obviously a currently couple who there’ll that cost pass feel I think, itself be us, pieces. holders a for a are existing discount and obviously. those we to Obviously, of that’s

folks I we’ve shared and destination have ticket lot these especially of holders think, local this engagement less buyers our lift do. businesses don’t pass that pass -- same our purchase tend and with the of these to ancillary rate with many a before, guests holders products of than

incentive And rental so, they with going in also the ski for ways, in the there’s or this this buying terms of haven’t when F&B, just discount we an to to gauge and either product. upsell terms school, incrementality some on like moment to in providing actually of before, more in feel be obviously people actually

it’s think to to program, we Vail to we program, buyers need of a great direct positive. real think, it of a a then, that. get that drive those into things, the And the offer is it side, on company booking lodging you I -- also be to XX%. when But, convert existing so, does at you the terms And to in plus ticket -- the Resorts, to all think to more take two the opportunity people people new prospects, program, into look when lift into the the

we lot a us commissions for eliminates have and indirect of pay. other that that obviously the So OTA to

this on we drive these like businesses, on for think and I that. of many ski capture. food, marketplace, think opportunity very a competing to gives we an like good in have are school really rental, I the lodging, us in opportunity, And And and compelling

a and compelling looked again, So, like was we proposition. very felt it obviously at it

Operator

William Ryan our question take with from next Blair. Sundby We’ll

Ryan Sundby

guess, second, left terms Felicia’s can of just from in kind out, have kind I of balance kind then -- on what levers of question think And want what a just look through Is if just do of ski can to of you week standpoint, from on? or we I maybe maybe follow help about the visitation? the what’s way seasons. mountain walk as on there you of on a profitability of pullback any see the visitation Xth of you manage us kind visitation, terms impacts and March or in you some in larger us bigger framework to up a

Rob Katz

Yes.

a through it’s different parse can’t kind I points -- of the think guidance, I in give season, really obviously.

historically have for, you a QX. think, I QX, sense

would Easter for you obviously important break period But time at look I can So, say an and is spring that. us.

important the the it’s it’s this that towards our season, end is think an part I also of impacting still season. but -- happening true it’s of So,

wouldn’t really providing be throughout are experience this full -- to going period. of comprehensive at see a I all Yes, we our resorts time

component are it. We any to pulling on of not back be going

comes bottom a think, to some if the will ensure to resorts outstanding we that -- our I obviously, on do we pullback that revenue lot has fall This is side, the see just experience. whoever an want to line. of

normally, the to. So, guests. point, operate that And experience are not our to fully at providing something to continue resorts also going I again, looking this and that we’re think to anticipating possible our yes, we’re best

Ryan Sundby

$XX allocations. million on just the shift then, that And pass in

think, profits, I think some -- is it the there? down is there was fair to straight there that’s the or sales that drop offset

Michael Barkin

our pass incremental, how Yes, it’s largely we incremental drops or allocate this is revenue. through. -- not mean, I

the shift we’ve QX year, And shift Rob period. affect in really break a historical between said, so, really and spring that it’s seen, reflection QX, is just doesn’t visiting of the a visitation to the moving just, as Easter but and overall

Operator

We’ll Markets. now KeyBanc Capital Robert next question with from a Aurand take

Robert Aurand

Robert for weekend resorts? talked between March difference the destination Andress any just out guess, to non-destination call I slowdown Aurand Was during on there start, to you today. about in and the Brett Xth.

Rob Katz

it I earlier, that would single -- the across and exact this amount fully is it. impact not say mentioned is know yes, every But, actually -- and I answered maybe I not don’t we’re resort. of

in our regions. definitely part between But So, just we normal fluctuations seeing that’s are fluctuations.

to obviously increasing definitely media -- as at certainly itself likely and the side and the days of so, we’re destination our modest continue worse. it overall, go that of some know And We mind, expect in the this to kind chatter, visit But get yet. the just seeing, potentially I we on. want given decline and get don’t point apart. on parsing think don’t then but I been kind of that’s into And something

Robert Aurand

the And cancellations, give to extent the And on guess, international of looking cancellations can cancellations? to versus you trends and I -- extent cancellations, any you’re you’re the you’re seeing us domestic kind forward color seeing. seeing

Rob Katz

Yes.

of slowdown weekend, look Xst, a to and both. increasing time kind kind I from think, March back -- saw period, of in so I if at also time last that the Xnd bookings that same cancellations,

certainly, And have into yes, -- negative already that the a is our Easter, of it this into you good. markedly doesn’t And of couple occupancy was we booked more will. weeks would I continued, impact, by Because properties. kind sure. look I the get trending the and imagine in occupancy trending definitely continues. But compared it of absolute Now bigger know went most next also a of obviously, whether year, the But, later for do don’t imagine, I the if into to would if numbers March amount either. it’ll have as again, point fair say, huge over not you as would

Operator

Alex We’ll with now take Maroccia our question next from Berenberg.

Alex Maroccia

as the Australian the It some as damage sad peers. was to your to areas pretty see resorts, around of well

seeing Given come area, and a the that properly infrastructure are in issues evacuations of inability season? prepare an the any you early it’s just or demand? of Whether the could loss the XXXX lack to in that

Rob Katz

season. seeing not expect to for the fires -- we’re summer, the and and issues ski to any operational fully there ready go be expect No, don’t from in their any operational down

huge don’t I and On the that, oil of think demand we but in and economic the of were I I certainly, -- point, been because July and prices for this all have we issue like absence side, impact some into that activity Australia, a at to August. going think coronavirus, going fires there things June, be potentially, was thinking the of think might

me affect how I coronavirus how current point, resources, natural going economic exactly to will other around is that at the for harder Australia. this tell and environment think

tell just I this early point. too think that’s to at

Alex Maroccia

Resorts all with tell just Thanks. mountains? of attendance All major any you Mountains there and the winter. some at any then, Peak if right, sense. snowmaking, And larger you saw in that us secondly, amount costs increases if makes are saw swings snow associated this then of minimal Can pretty

Rob Katz

Yes. Actually, we’re we’re quite of process still pleased with resorts. how we’ve done with Peak the integrating in Obviously, its first the in year.

as some some that terms the resorts, it in year Peak, process. in with Northeast we So, the called how a relative certainly resorts out make that the pleased of portfolio strong to did, certainly, resorts offset up you northeast. in including in more offset a the the northeast, bit by as our operational of Midwest disruptions mentioned in weaker but existing favorability that but had But snowfalls,

Operator

with from Scholes you. Thank now We’ll hear SunTrust. Patrick

Patrick Scholes

Good ski end Are in season, afternoon, if from the virus April to trends XXth gentlemen. saying missed were you’ve continue EBITDA the the the to apologize you able to if now Vail, point? quantify for I of be what would the that’s it. week impact to that over seen I that past

Rob Katz

Yes.

week from take week, saw well take last in understand of the on I Because time I enough. of shifting. guidance us intentionally rest commenting or the Because the the the I for in and even the think to not year uncertainty it’s the not that. way think that there’s it don’t I to And -- rest of for think, season, the more we’re matter. trend little a a last that and assess think we definitely parse simple it’ll

But will more on little provide like of it more again, minimum, on don’t what’s somewhat color seeing. -- color a be dependent able we’re have at I around results March to obviously, think, But actual we’re hopeful a XXth. this we’ll at kind today before that provide happening. I the point, we to

Patrick Scholes

tunnels various ago, negative see excessive would in overcrowding Okay, care of lift one-off or as be to going with About videos does prevent appear press just day you. any then, take you Vail. go sort limitation online that And to thank the event sort problem future some how there chairs can here. or that was itself? of at per cars some you taking or month of that Do at specifically of my lines be what a are the your steps a on and onetime showing to many what second the through question

Rob Katz

Yes.

that that to up I relatively the think to kind think, That and powder piece quickly, morning there people were pieces very long the on situation. of day, earlier really line skiing. early aware line two One, get not into obviously of day. a they’re kind long was huge Gondola One dissipated lining of it. at I up And, in go different

very little concerning. I One about high on line, good think, capacity going something days, bit get to as And, We that’s not huge that that powder sometimes envelope. we’re feel is of the Gondola a that. a

and we for a time, same At the Obviously, great powder of have the to didn’t have happen our open opportunity line think have chair That’s X want the to of unfortunately not -- yes, an guest our guests. experience. was this I definitely that again, probably a something more any understatement. day we huge not terrain.

intensity created snow Really was one handful in that the line of it, our bottom. they take area down, were that a a the we terms think going from So, of to as we guest that takeaway do away situation. kind from of of A that And guest people lot was last trying is, of folks open. be over that very more one-off or yes, I communication. when to cycle only the decade our have up the alert it. were was skiing that service them got pretty to I the big But think,

what the And of with that we be guests. and one think knows guest out absolutely a things have be and effort we make how singular talking exactly something that’s is to next when expect where. have responsibility front to about sure I to And dialed currently our upon, in we’re do a think, continuing we’ll I more be that to we’re going every year. sure we’ll makes for improve that

Operator

Jefferies. move with We’ll to Katz you. David on Thank

David Katz

info. you candor for greatly The appreciated. the is Thank always

it? And, think rest us you through of work with what As the aspects we’re for sitting of model expenses? the the our to mountain help about this between, Can segment, variable here talk aspect and us help just year. trying fixed that within breakdown

Rob Katz

Sure.

for -- we a obviously to it. of I have we us, pieces think, think have I number a

food down, U.S. if lower come school ski goes got most labor of card the of lower To on savings or that If that obviously will retail have we then components actually mountain. essentially revenue cost the either the seasonal our like schools, fees lot fire down. fees credit population we’ve sales down, really obviously utilities resort usage, ski But, extent fixed, or like have open obviously, the then are the the a So, as we’ll goods. which or have to of down, lower of things service piece. we come sales, is piece fixed, that and that goes need overhead will we other we have

any pull for all And that, a that and season we not at we not of best to guests. we’re all. have that ton our experience because there’s the to that long, from so we going back something And want would do do reduce to that ensure we that’s

so, obviously our as you look revenue. also revenue we component do see have a And large that’s -- of it, through pass I season

that in. portion somewhat so, is well revenue And of fixed and the locked really as

question And daily people ticket provide the a ticket yes, any paid of lift kind really our ancillary uptick to revenue, when revenue Is so helpful is, basic lift overview? are plus that there.

David Katz

is more nature, that it a the fixed base variable being with It follow of -- we you though, bit with mind, more with? to than more don’t cost if than I’d I sounds It of look we whatever is a revenue meaningfully total remainder as Can just wind the helpful. up half like half, directly. up more at

Michael Barkin

Yes.

otherwise. our majority labor short-term fixed of is with not, as cost outside our labor. our cost remainder is the structure I good highly Rob businesses that school portion of is as think, the a in a structure, a of outlined But the in most variable. for circumstances the financial articulated, statements to And including operations. Rob running our cost or finer point yes, Yes, aspects goods ski of on part, the that some which are of But put it. call I there’s think are sold articulated, like of of

Operator

Torrente Marc with from now Fargo Securities. Wells Moving

Marc Torrente

America? Australia, of how Asia, prior the international was South coronavirus, So, the to Japan, impact maybe trending, major markets from and broadly source visitation

Rob Katz

the the of in another because U.S., think challenges largely U.S. being business restrictions I international years, has declined the of component. number travel think, and I strong over last dollars,

a driver of it U.S. soft, material think not I was performance. So, but our

weather. it this large a has definitely was A think, the that been part year. decline I of

total lift but of I about think Whistler definitely some in would is driver cost seen and really the really but But, primary visitation Whistler, the other has component costs the another it there in -- seen is I partially vacation tickets, of really lodging with we’ve been -- the definitely say, the driver to primary pieces. Company international that there. conditions. shifting We’ve on was not

Marc Torrente

in have the Okay. the favorable the a year that does less how impact you And particular or next for when season, period conditions that? these visitation in after year comparable

Rob Katz

variety of a different seen we’ve think going I examples back.

I challenging and think, think year like as good rolling has -- I demand come back very we the which again, in we example, have Tahoe a came good seen with conditions saw XXXX-XXXX, back. of all but then,

to So, we pretty a from see tend do rebound strong that.

like I sales, think really through advanced to, navigate sometimes or effect there But, historically that could to that without have we seeing bookings again, tended relates lag again, a that. it pass immediate things as impact. be

the are I trend. been term late conditions one not in because last a region of that some over that years I be longer have when couple season. early that’s season number of the about the late to that bad But which sure from do able to there more to the in could seeing which any which migration degradation last have late this seem though reliable another. is been certainly, again, season, the the versus conditions, early be season, does we With assess of much think, be or one seen absolutely year, you to think, coronavirus, is, look of but obviously things season again we’re exactly not going years, back over constant

Marc Torrente

And you then, more shares capital near-term? think repurchased allocation some commentary on guys change this you quarter. going of did provide I then, does don’t M&A And expect in through any to But should during view we just market your lastly, volatility. step you this any on the here?

Rob Katz

Yes.

-- I we obviously, every assess with on the Board. think that quarter,

to the beyond think but wanted that committed to can’t remain for in -- long-term of comes sure things on investing really that look resorts And they be just But going absolutely always we them. we’ll to thoughtful disciplined opportunities comment to of on value make doing fully I sense, continue the those we pursue remain again the and going our it, make be to and obviously all we’re no, opportunities this when are. strategic one still and so, unique quarter, And we’re obviously, for is, that. I rest and aggressive we across and front, like

Operator

Stifel. Thank Boyer with final question take -- next you. Brad our question We’ll our from

Brad Boyer

guys. Thanks fitting me Yes. for in,

So, on the question, M&A just to Rob. expand

has over at offseason years, get some think the coincides your that with that I the this here the good in pretty you lot As of And several fact to a M&A with the historically of it guys a we been stock. seasonal time involved look execute last period.

-- as year out you’ve customer. going and So, by lower deal assess last of the the the doing you sort obviously landscape and kind in built you of getting closer Peak end the today, to

in today? would helpful. any additional it exposure at in the look market just regions anything -- business? are every if could have of have color there that on the looks we sense would a more strategic guys to Just more regional almost provide a of there sort as M&A exposure -- you today. you’d Could to there ski us here ski priority You out major Are like of around like in North like be you here you if America front give sort where any

Rob Katz

Yes.

integrating be opportunities have to resort, right, now. going our of could America, opportunities network think in And Europe. the we definitely whether -- also we no or opportunities on always I of opportunity very benefit is doubt a you’re that regional the a there’s would get think a right very-focused there’s resort. that Japan North maximum or handful strong very I actually We in are we remain the that in a there Obviously, a of think cognizant select that But focus something fact destination be we’re on pursue. I opportunities strategic could that’s it we lot of ensuring network have. that already and be still

disciplined and putting that the in lot disciplined But, going would a that very, our I context yes, operating we’re still really And so, say very kind of is is true. network we’ve of focused that we’re actually of remain our attention we’re where a lot the built. But in. whatever and the -- is all to leveraging of environment of that

for of new people whole And, environment, ability economic on set will of kind exists that. have a another deliver still a more benefits and opportunity travel challenging focus of think value and because major represents or by we moving we a to still think actually to that and of were -- whole Moving us kind of that even where we’ve number this people to years, there’s of a over from we’ve kind number been we in of commitment huge to the years a benefits through there’s last is that going business a But, we advanced huge where are seen years some today. kind of over shift moving pass and ago can in we of level. get on opportunity season number our that the

so, about M&A in help been. And as we be have really where we’ll that thoughtful to always can like strategy, just it

Brad Boyer

That’s just Michael, housekeeping the all item, us front? could authorization remind what for me. Thanks. buyback then, a existing And Helpful. as left you on on the have you

Michael Barkin

of get I’ll that to up to on look shares. specific back and Yes. go you have the number

Brad Boyer

Okay. Thanks I a guys. lot, it. appreciate

Michael Barkin

So, to that. just up follow on actually,

have X.X million about remaining. We shares

Operator

over the That today’s for or closing any turn Mr. Katz to does you. conclude back additional remarks. session. Thank conference question-and-answer I’ll

Rob Katz

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

Operator

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

disconnect. now may You

Vail Resorts (MTN) 9 Mar 202020 Q2 Earnings call transcript