MTN - Earnings call transcript Q3 2020

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Operator

Good day and welcome to the Vail Resorts Third 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 third 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

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

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

and by results communities. of and a quarter for the impacted for XXXX/XXXX the resort American made for March we Our decision our Ski Mountain significantly employees were resulting of and North closure Resorts American guests, our season XXXX; North full beginning the COVID-XX XX, safety the

we of COVID-XX believe In during a before was weeks of the first March, change experienced to behavior. on impact even in addition, the and that due closure negative two traveler performance we the

favorable million, to Relative March approximately cost had be April $XX in primarily expectation EBITDA actions by million results XXXX, the in implemented were As $XXX resort million, by XXXX. to our our on and compared that reported $XXX April by impacted XX, operating results expectations, XXXX. of March to negatively driven these X, would we anticipated we March

million approximately of reported related and pass the XXXX. impacted deferred for deferral quarter fiscal product costs $XXX negatively the by In addition, was to revenue EBITDA resort of

American As a to result of encourage renewal pass holder North next credits for to pass holders XXXX/XXXX offered season.

operations, could COVID-XX. to North Looking Ski which late summer early new health opening American are or dates information by July, to Australian to public regard each and to June resort, our business season be guidance ahead for vary are in we Summer the for operational and with subject and planning

expect fourth the travel results quarter to the fiscal We materially that in will lower will our we negatively impacted and XXXX of properties. be see visitation by our environment resort

to for time, fully impact be developed and quarter issuing plans we this have operating year. or not We we are that assess not believe at efficient able will guidance However, the to fourth fiscal this the and local adjust deliver a and at in to Australian North and guidelines Ski America the ability our summer for enjoyable demand and season, guest experience with shift. consumer as practices safe resorts

would financial the turn to discuss call Michael sheet over Now to further I liquidity. results, like balance and to our

Michael Barkin

good afternoon, everyone. Thanks, Rob and

was for third $X.XX the of Vail compared income net XXXX, for period As negative in period resulting for as implemented. the American to impacts diluted a quarter $XXX.X Resorts. Resort of prior XXXX, million $XXX.X share by the the million resort of attributable for year. compared the closure Rob our EBITDA were prior year, the result was income EBITDA impacted share mentioned, the our of $XXX.X North quarter significantly the reported offset million quarter or Resorts per COVID-XX, results primarily of same of fiscal $X.XX Mountain fiscal diluted reported third for same of the in actions cost or COVID-XX Net to per by and $XXX.X million, to

as the the of under Whistler with availability U.S. cash-on-hand, Holdings We we $XXX business continue under billion, Credit impacts COVID-XX revolver XXXX navigate of approximately of million to XX, of total as our support revolver revolver May the availability to million Vail Agreement. of million have availability expect Agreement, to with Credit cash sufficient $X.X liquidity of $XXX $XXX and and

entirety. XXXX, XX of In the which balance revolver months trailing our [ph], net to an As XXXX liquidity, XX, Vail X.XX% reported debt May, and $XXX the million of Holdings was U.S. utilized support down of and outstanding implemented unsecured X.X Credit our April portion including to under of our April offering times EBITDA. notes plans completing a due of was Agreement we pay it's total

cost XXXX to liquidity, our year associated furloughing the shareholders quarter six U.S. [ph] million we reductions tossed U.S. Additionally, offsets CARES employees and recognized which third capital million, the reducing among of two other by company a $XXX for million year implemented Act, for cash Australian Wage actions. liquidity by also for all $XX the additional of suspending quarters, and U.S. employees Keeper labor Subsidy, with implementing Job number to Canada approximately hourly $X our month fiscal significant round salary salaried in preserves plan $XX salaried our in plans calendar has legislation. Emergency million the in approximately an support to of The dividends and

terms, quarters covenants to that entered fiscal will to XXXX agreements of through Holdings such irrevocable the XX, for exempt exemption January July election with one-time XX, Vail date. make period a unless from ending maintenance each among financial the terminate we Additionally, prior an Holdings into Vail such Credit Holdings Vail to Agreement complying XXXX; amendment the providing be other

shutdowns. of in have these following extended the expect for years, resort We sufficient to to fund operations actions our liquidity upto extent two even

cash share During per a stock. common of the $X.XX of or company million paid approximately third $XX.X quarter, dividend fiscal the

$XXX.XX XX, of these call back per $XX Rob. now cash at an average our I'll was by million share, to of suspended a Additionally, price repurchased stock of we we events, to dividend two Subsequent approximately minimum turn March for which completed quarters. over XXXX. the

Rob Katz

Thanks, Michael.

early the difficult the coverage Resorts to about unprecedented out a decision surrounding closure address rolled [ph] our XX. the North plan comprehensive future. circumstances for path season to have this As COVID-XX, we of XXXX close provide past a for improved and announced American to those address the Mountain result our on April concerned, as

providing North purchase towards are holders will XXXX/XXXX credits a credit the We XX% pass towards to holders a apply receive Season of of season's pass minimum American to product. XXXX/XXXX pass. next pass

an not credits XX% who for For than will season who their pass, a unused be pass by our products holders five their pass will days who and pass be credit. for eligible we they season holders other less purchase be credits unused holders September pass a maximum for day use higher XX% pass at with The for pass available maximum for of upto based all, did will offering season credits Epic each use days, Card Edge remaining, frequency XXXX. day products XXXX/XXXX X, upto of

meaningful offering of of second As our delaying pass credits such pass a will to million credits pass XXXX/XXXX partially American related recognized purchase XXXX/XXXX we million as approximately recognition and XXXX. now the XXXX, of deferred shift as This recognized impact depending result would the the to be are been well timing be that towards upon pass or deferred of of products. and of remainder North of holders, being of the the quarters will in early season the credits closure negative of fiscal revenue, $X fiscal this primarily the we have North recognition $XXX and approximately in offered final the third usage American holders offset in fully will the costs

to is a pass Epic protect the Coverage of and any season in is unlikely are for launch We giving refund free for pass purchase holders Epic Coverage of passes that the redefining season the for Coverage. certain Epic how the resort including need pass provides holders event replaces American of insurance. we through closures, all lost. North will COVID-XX refunds completely portion

eligible covered Additionally, Epic refund other personal injuries, events. circumstances for pass Coverage our job and personal a by many for losses provides insurance

action increases, uncertainty have surrounded next price the or important COVID-XX make regarding to call the around expirations. they reductions it need is broader having Given we to to pass the And decisions economy, season. any we benefit our delayed feel intentionally time very holders give credit and

have world, with our the conversation we'll continue are labor we we going holders is cycle, get for pass in and and a in feel day necessary. much all better we season next begins, with really While is earlier have earlier to feature the time and they to fall the about agile, critical on continue And moment, us things purchases in that if monitor season. as is to be the the a to before leader this moving been bought in that pass the

September including receive XXXX/XXXX eliminated a deadlines As pass credit, buddy XXXX are holders and spring to X, traditional until providing benefits, result, spring to use tickets. their we and our

next holders to pass down extending We purchase period only the in are for months. $XX for with also the lock their few

first XX, the New our will deadline moving and in fourth in September, Victoria skiing not on Australia and be the approval on Season quarter plan sales until results of Creek of our for following to We result late Pass to open providing call earnings we conference Falls September. Perisher, governments. and a South Hotham an As update by snowboarding June Wales

to Epic final June holders new Pass request will Australia refund with as options the then the new provide upcoming refund pass dynamics, impacts or of guests made XX, the plan our this COVID-XX well season their date forward all move more the pass on address information in protection towards we a Pass pass will as to current by for pass, product. Epic the Given have option operations and payment season. extended payments Australia and pass about Australia our any to that a

operations uncertainty to Australian plants to delay and having on openings Australian the ski Given season fall. this clarity for the proximity greater season anticipate past the by American North we caused economy, sales reopening the of and the into broader heading the

and protocols, we leaders, within to late cleaning and consultation operations and in operating developing As distancing We on safe, regularly remain reopen services. plans the we June positioned to uniquely will quality to early include with focused experience. social industry are July, plan deliver our which government or necessary a we measures, industry safe in enhanced travel offered believe guest high changes programs

expectations Our relative drive demand. located believe major We the with provide and outdoor an that of will ski Canada travel drive area to strong broader Australia. and within this and network recovery are be to experiences outdoor be of that significant resorts early a and to leisure next U.S., summer centers experiences will season this of population unparalleled travel advantage in proximity

while base Blackcomb, visits domestic representing in to In a international approximately the fiscal strong Whistler very And the Blackcomb of of addition, guests the with our travelers. resorts has more XXXX. and vast it's guest also of of exception domestic are majority Whistler XX% focused, all

introduction of ability its marketing In Mountain efforts, travel position to addition, ski broad our experience, full Rewards, recovers. offering, data, the and Epic the guest digital on vacation targeted as leverage including discounts and well product associated will as our

that of the continue sophisticated We to provide of model the on guests, to and our confident lineup world-class guests. of irreplaceable prospects approach use of our be that with season on and our loyalty products resorts, communicate is built the we attract pass to long-term marketing network strong access business our

Australia that overtime. I'm our We commitment we answer and ready all and would North employees, I on and during will species employees passionate At the experience the soon look our we've employees our to for safe providing goals situation and particularly, American loyalty employees happy exceptional positions our questions. our to and our liquidity thank ski well for in our on and a your evaluating capitalization with and grateful this this focused questions. for as of of we by goal Michael passion be work time. We're the positions their for growth back to dedication as and us like and teams, are towards the to our made the time, Operator, technology, constantly be getting as strong supported investments of our pursue continued Summer, feasible, resorts and furlough, beyond. would guests now through the incredibly

Operator

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

Felicia Hendrix

good if could call us demand color the said you pass would sales few well? you hear experience ski was of share looks to can what far even seeing are wondering And know pass through any Hi, I COVID-XX all I season? regarding like? just points but the give at season good the for are afternoon. any It's you. next there both the walk September you you as so data more in you post

Rob Katz

the week provide details at that the put and XX next sharing are to And come some next together ski insight of as in Yes, will a and that like. think think experience this and we be ensure social American I terms the give where that same to I exactly hear a good too, people kind of year. in point, what a at to much confident will distancing. it Right days. that you time, terrific there North working now, who you certainly the experience can to point, at constantly we're focused all the capacity I Australia, But would environment limitation Felicia, the this we we'll terms we're very look over unique hard of in that season then protect think able very very plan resort, our moving be us, on for be know, we're think the will we'll -- to I teams experience use in ski we of total ski

And an of restrictions protect, course, remain continue single -- our -- we'll the look whatever next the in of that our us next to do to of of we improve, every what end the just over position fact time. will -- do the week as in at of some terms that find local couple wide are and experience all piece to based in terrific every for we a I based comments the on that, at right, of remain that -- -- really we will people really three the experience part feel pinch but to we months this single in outdoor can the of And was as enter said intend, part; by but going season, of of to particulars core guidelines still crowd though, on very local and the then our will those lift resort, out, improve, of of our while that inside and and will that closely [ph], are be our do. focus the we lines obviously, a to sure spread maintain we our great ways certainly our a giving of points, is guests expand to that believe allows people aspect have certainly to year social ski on some do over through piece opportunity for distancing the be that be every of be experience. we new each experience resorts, so monitoring obviously course, of people restaurants job our make and and right,

Felicia Hendrix

you And have any might in early terms data points demand? of

Rob Katz

really we Yes, don't.

incredibly skiers of who think seeing think there you lower I a although there good I they continue; and would from it's passionate another part skiing enthusiasm, -- whole is think, to I we as think what I past an obviously, that suggest and the not every that so riding even last sales I'd expect, seen. of core would feel, I remains would say have have what than company, our strength fact and we base far we that committed year, what see deadline, about passion think; but right, that's course are be to that of our exactly don't tremendous to takeaway the a that going very of what as we're expect only do level, our we indication is industry is of

Felicia Hendrix

do to the or And have are fully you. so opportunities been you as opening, past? as certain that though not profitable or you Thank may leaner been Michael, may away with as reevaluate that to open, as structure, you -- just found practices to in there at have contemplate have you -- cost be that able offerings your

Michael Barkin

Yes.

also think cost look talked sizing we're the gone really a reaction on I approach about we comprehensive well balanced actions a distancing to demand we that measured certainly as and deliver to Rob as while reopen review, scenarios. the to guest appropriately, that's requirements, ensuring a potential that shutdown that view, -- both taking for oriented operations the we experience that and, the the in take through that to certainly took trying we've to ensure as are

Felicia Hendrix

much. very thanks Okay,

Operator

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

Shaun Kelly

you good afternoon, everyone. well. are and Hi, safe Hope guys

of updates? I kind bit can you given little did Just really the change pass color versus only any gave that was kind moment. of program? you exactly little that digging we just behavior. think did behaviors; the to on much reaction you ask, said before a also deadline useful? material destination is is you bit further glean Rob, -- wanted made local I be real trend to a know about the the maybe tell the either; so you what no then, after of there the you how call or at were us that on as some But then, credit perhaps maybe, there action And saw before interesting materially or And seeing would could

Rob Katz

Yes.

the of cycle. are deadlines, one is that selling challenges of of key so around much that, done Shaun think they business part I our and the is with our

the at that more this them the to season. next best about think engagement. deadlines; pass it And is not seeing that now this at we might that, had so I next is last with point And say two really that think we're I tough anything would information of about when season to pleased into think conversation what enthusiasm, different our versus more given we're because to what had the give I there have been if the we deadlines. read have message absence information -- But time today with pleased have point obviously, we is year is the because seen holders

so away but might to trends, misleading say read any either be point, that. far we I to positive comment is I take think at so on this into hard I'd So, what think

Shaun Kelly

differences any rather like or bit is the material to little all just too it local destination on there is I piece; early a And mean tell?

Rob Katz

good good understand giving; the think that everybody Coverage pass our a early feel and I XX%, I I forums, deadlines, were about say, of a are the And who them, there there it. but one -- they people we're season, time; addition, that again, holders that pass don't think good past you think season negative, the I very eliminate I we're I feel good when we XX% feel into protected. feel pass so And that they the -- how of of it's enthusiasm not we and to being I of think percentage about from think commentary I again, moment. holder to passion of and this many, many want getting but we like feel -- about neither business that's certainly our like just is back giving number doing certainly we've both -- terms Epic different the perspective, tremendous of don't again, giving numbers, think credit think our good Again, we're get I disappointed play tough we a anything to the final from positive are at and credits in on I -- read next this reasons to feel huge about And again, would in up the -- are the think the we too point, providing tell. season, of many that, mean holders, they nor -- But last because people many think on suggest I think in I I indicators will we do we're why would at what is not when response that mountain. a again, out for anecdotally, all, -- we're is that I out certainly credits know. in don't the Exactly

we So has see reassuring. again, and say from what everything I'd what media we emails, been social hear on

Shaun Kelly

That's helpful.

travel. in relative and line a about quarters little trend it's Vail certainly, past, talked luxury recent -- -- I think relative you to the kind called for bit think then of to broader I in of

important, travel kind the or that that -- out Just watching behavior appreciate summer gauge last are you you're any the trying you're things or you're think eye of anything program? at else? just obviously indicators And next going capacity your it's an but on do -- maybe being of into as on you maybe what on kind broader Again, side gauge heading season? of -- airlift on that particularly to occupancy keep none as to way these decisions like trying piece minute anything piece whether just then, or maybe fall own the -- made that

Rob Katz

rigorously not right to where or are the at next listening I sector. capacity we is but smaller an is to sentiment are we're for well We're Yes. located where shorter local these airports; most we into seems of travel so metropolitan certain the travel; think mentioned. our the really doubt other there, people the so the the And think markets well. as in which is many look I feel much big does airports really efforts, we're travel, surveys, is fact a of of airport. spot but day, I as bodes our resorts; than that of air number a to which no think reiterating that benefit from in the the our advantage resorts, in better the takeaways we resorts, I locations, think us and to near part No I remain, piece international like have of travel, feedback have we most that's I better; well not a the we're domestic now, exposure another major that, tracking And, and as think located from regional doubt for getting smaller for going obviously, obviously, very consumer -- I our least of positive. near is in resorts is input all be that worth again, gives think distance, the as end urban largely of them -- so And obviously, major also mentioned Whistler we're we're are there dependent conveniently that think before travel some year to all them our necessarily we and subject most the on consumer

Shaun Kelly

ago, would working guidelines, in lots of different that you case conversation you this; is of into businesses. across just be expectation what plan Last constraints capacity be be probably -- Obviously, capacity Australia next base governments season? local some I is question around like about out through but to around that But thinking especially is how potential about your moment it? and alluded different you're some now, mean, a authorities? trying with way lots this the this might And center your of to are front right this figure industry restrictions. ski could not for can industries or kind there curious that Obviously, and either

Rob Katz

Yes.

on gondola between the Unclear lifts winter constraints; the whether something any I is next in and right; and be still could that's season, you're constraint. plan groups, that be on think a that will loading people time, of limit number put potential one and chair, put aware social at a certainly capacity the part of distancing that'll on to that's that the one of likely Australia. that well you gondolas, we're potential two places one but certainly unrelated extent maintaining necessary a that could

start our service, these be like; because well, were on two piece. that what how all like hard be the were experience the sure and clumsy But case to and service, on know I are of little more across -- the implemented manage which before were we whether some do we that think feel obviously, quickly, make those shift board, as food impacts focused -- experience people safety a these on our will next the and capacity apart food consumer actually in very side the winter. the And ability think the that shut top to again, even that year? that that any things for from mind right how could I will resorts; Certainly we I of what capacity are with we of to and probably the that travel will capacity could ultimate that question; will in in that the these fronts. so beverage in food case have up still March operation of have? December many could are and we bit the could with be restrictions terms in how And be constraint probably, us in things Interestingly, Another the demand of could time, depending of regulation we on will restriction we down I able And we be that down the Australia. but guest will think potential think there next look certainly marry terms now. is constraint is through narrow

Shaun Kelly

much. Thank very you

Operator

has Katz David next our question. Jeffries with

David Katz

how good the and the been In all everyone. quite the hear good have and -- for answer commentary. would to is afternoon, reevaluate? is? firm deadline; -- say sure. that could Or start listening voices, that [ph], historically context that In we you the September X to Last that get something you that getting and is our Hi, to to everyone's at closer right

Rob Katz

Yes.

I say that's open if a and course think, a required. to firm are adjusting right that we what's it's deadline, it's now I'd of deadline

doing that guests. think think and right if over long-term. shift for of with of going mindset this our the I are I and in what's months, that ground shift, and the we it's I very on anything number we've dynamics especially to holders on case, last think -- the And we're with focused the learned pass our

extent we're But what if earlier it. going think to about us, shift, making have we the to sure -- do protect we to too. value And And think the to that's provides going our deadlines we can great right this and going ultimately, we to to do that to do guests. if that we're -- is so, guest behavior, And we absolutely loyalty we inset thing for are that. we that that can

said, And every a probably so, to look spot the holders given feel at decision. this option. in we'll that as I like we Day, we're that to be to are Labor make point; And at on, trajectory get we ask a we going really pass our good think yes, -- to

David Katz

just And point, my the one back for and to apologies background if stuff. can Michael noise, senti but on dog not I it's [ph] go

ability subject better base; will seeing site to outcome companies restrictions. the and expected very is, is of lot endure. that a profitability, demand the do with we were what across reasonably On of But even opening structure here? with perhaps, things here a much And, cost limited so that asset-based perhaps

Michael Barkin

we've right that we're long-term that view those think it's the to the on profitability, I that that certainly I But giving next think we've way cash through, where place. think as with discipline that investing focus relative a would important take and give planning years over of we we continue will I that free balanced planning the eye go taken think And next to we'll for same involves that obviously, continue to earlier the margin an take think flow as take each towards our rigorous be certainly still we're and to for ensure I on will to into -- always the comment to appropriate. approach Felicia's I year; can't we said is evaluating cost we'll the experience. to but say demand to demonstrated very experience, overtime. our cost we assessing structure our if decisions really year all focus what really guests on continue as -- question; exactly I that ensuring beyond how again, that I Rob's But point

Rob Katz

and Even we to may just them. we have do [ph] maybe the that. important have and to, be be Yes, guests, that to on -- for with I going may of just think I'll that; full tag course, full still emphasize that the experience situations understand open we're mountain there left but where

they not come a to our could be are the expense of areas there would to of where on resorts. one all when potentially in be expect at will And so, we terms but load our what guest piece reduced going pull back obviously volume

David Katz

Thanks very much, and good luck.

Operator

Scholes would Patrick question come SunTrust. next Our with from

Patrick Scholes

you press into indicated at to end financially good or everyone. sure positive not the I'm a seem open season. a could press. had I'm pretty has it's get Breckenridge did a but good up that wondering what did I see to went know if Thank Breckenridge? you. basin it I of not prior afternoon, basically Hi, release open might possibly you you didn't reopened; in decision impactful the your

Rob Katz

Yes.

in I personally knew love it -- I to shared come back have enthusiasm, in we the be -- America. But resorts, email of yes, we certainly felt resorts we and right, knew an skis. there'd would popular back. that; North on also are think gotten most -- tremendous to our some

got a when we and let local know so, that going it's community; people there. moment come And we are both, back, obviously, our to Breckenridge, reopen and and we're be our resort, at very to at where the employees, intertwined

will to experience. start that they like good we little And the And based and all it wanted, do providing around, course. I a that We the think, was than us. think more have supportive to very I that experience them and some just folks on right back we're have obviously of -- think -- it a kind get shorter I for early of would did, on, to ultimately limited think thing it's be of anybody

year. resorts, of June of our think us any any could into have don't deep For or July gone I this

thing. So, really a for us, it's safety

Breckenridge nature I focus which dynamic, for going felt summer, in is weeks. enjoyable right a to attention think safe for going the couple all and experience given that a of And and get on yet. the unique really just our piece community really to bring us providing on and here of it like just we not just was the of

Patrick Scholes

Okay, thank you for the detail.

Rob Katz

Yes. Thank you.

Operator

we'll Next, Chris with from Deutsche hear Bank. Woronka

Chris Woronka

you the Hey, but structure good earlier, afternoon, couple hit on maybe time. addressed a just it one I more cost guys. questions know to

do goes now? to is to term, you labor, If getting the cost post-COVID a and think next And the slack more given you you adjusted any take changes at what environment? three you But the guys three also, situation model? from mean, higher view two, you would longer do where way the it how away over of have to have crazy really cost on this I think years in margins, you years, soon. the two so -- that hopefully from see which is

Rob Katz

experience; at we're term that necessarily to out -- anything or business, cost look were this I think take, terms impact think rate. technology before in other do And any we to but of we're to I think We that. doing looking again, opportunities terms of not have longer our I made don't always cost. at could kind point And reductions I not house; the the that's negatively productivity that I think there we're guest yes, the the any on -- on not of labor decisions yes, think table. always we -- is back think not of at that in extent labor; on we'll I that

I market certainly, communities. that local many of think easier of housing may be -- our I market may terms hiring, the think the the in in terms of easier be in

that's font; something positive so, is terms trend that now very make that's to And in five then use of three time is so. this And that otherwise easier some get years and don't time -- next And the we're sure issues ahead think we out and of which think sure -- an I that, going But And to out to I again; probably, challenging, opportunity margin think couple -- I over shared on improvement think for a ago, I and of this forward. we year. on. focused think very so to a we we that's of environment. this staffing to to this negative staffing small make see the I no, ahead stay will an or an in us fully us, cost for years, don't have ensure

that I be revenue for think the on piece. looking we'll line

Chris Woronka

think of possible of But it kind pass. product is then, in new Or current on is there summer Okay, the us season is understand of later pass maybe come form? stick the that And fold what's if into scenarios update where you more fair late do the an things that you'll give out there it's certain see to going enough. you kind season -- in that are could a different developing? there

Rob Katz

any not changes. this we're At point, yes, expecting

And -- bought own significant we've obviously, pass think compelling. we think comfort. course. know choice, of out, and go because domestic do who just a that again, I is well, way And think I to to year. got we remains were long we've drive we many for holders, holders, got -- not very the last pass will we that providing but for that reach credits people new intend And our product to I experience; they think price, I our obviously resorts to think think destination, know a in people people they

that think first, understand we're long they going a put also way. I safety think to and no matter I that will what; go

change. with changes direction think environment, so that this like have so anything the we're the we're going pass of we again, necessarily for the And it's Obviously, program. happening pass at many feel pretty in with but have who and comfortable I relationship course, that point, the will to say We're seeing so -- not that we this well there, in our I different knows; quickly, and width us. bode we

Chris Woronka

Thanks, very Okay, guys. good.

Rob Katz

thanks. Yes,

Operator

with next Alex Maroccia has Berenberg question. our

Alex Maroccia

guys. afternoon, good Hi,

Given the you trends demographics unemployment the customer and we're into abroad? in average pertains states on and as you it current your customers have visibility data can your declining seeing provide wage to any

Rob Katz

on from to I guests that before, and major our the impacted COVID, it like that share. that can that. certainly Obviously, been -- we've other shared moment, have provided areas impacted, I guests get have to this statistics of guests. are by unemployment. think part, demo's in our we've things don't cases, you some where maybe there think urban many our In I certainly to -- due In do of come

safe, unemployment that But where on -- sure have of -- I in the I the of also just be have that's time, what that that's from feel making they so as trust pent consumer people very in I next overcome, I we're again. the the year. operator we desire and think to on. that wouldn't to So, go going whatever something that relying and from it's up going, to is terms distinctly we're have all side, and the travel of at research of think, to experience I that think that a And location matter part we But same to have guests these a going is; look comfortable, they they're they that. the specifics hear

Alex Maroccia

weakness it any Epic the could information could And financial And you reputation the due And in some peers. this about of distress isn't partnership and be M&A the more provide around lower your [ph] understood. the currently? secondly, summer sure if impacting from there? to benefit resorts this smaller just capitalization or an in the the industry potentially bit potentially Okay, I'm how the present opportunities a Can could heavily, spring, cash yours, market?

Rob Katz

And we all for of employees; us. be course, I industry not our in like, previous lot I going crisis, feel the times our see. away; Yes. our certainly and see in that think right our and a point, think of this At of think is now to going this do think the And think our what we it's of in is a you existing existing that's true deep this many time -- players recessions going typically the of focus that would want right of properties, a focus many storm, I calls M&A or ton we part, for -- I is into moment are weather to resorts, where that. existing into

to is ramp COVID, as recovery, I you often think season as winter sometimes. start starts next past see a consistent up, happen there conversations point we more that bit of as get at historically, to

is lot just point. of to a open But provide making we safety, that be of it sure on the both I best right enjoyable just terms certainly focus and that in at is. we'll there experience, how can so, And think now, that

Alex Maroccia

Thank helpful. you. that's Great,

Operator

Ryan Sundby has William Blair next with our question.

Ryan Sundby

good Hi, is Hope with Michael, I'll everyone you. well. start maybe doing afternoon.

on to days directly where actual this [indiscernible] And refunds? on put passes be many they the work the year. will what forced do [ph] make resulted With the that extended through that can we to with restrictions you close coverage past based this Does next can opportunity to cash similar some how or problems? credits asset both the proportional and are the in

Michael Barkin

Yes.

take I think relates But Epic think piece any refunds piece, to Coverage as and or I'll deposits I'll those over probably the obviously made. I purchases relative to liquidity Rob. in made two, be turn to it would

of sales for So year. our past right, liquidity ahead is the largely today, next

that would So, collecting fall, those and have payments the then over obviously cash. we would be

So, our you liquidity Epic exclusive Coverage would not runway I I'm position just did, of that sure of and estimates totally kind but can rather copy piece, you if we that. the be win. the And -- for made

Rob Katz

come terms see any a issue. absence don't so up. that our providing we have yes, will as really absolutely things. And -- are decision I two as is early. not I these the do it Yes, an didn't past but company going and for did next right, were we to think program we were in backwards, refunds. closures that's provide of have issue that went liquidity And deserved that all. to there going to to, refund yes, obviously, of One, are that in going we runway on -- even long of something think that And again, the even still -- we we refunds But season, And program we shared should we that operations, that going for we obviously, we've provide we forward. felt a we made that. we it's -- closed kind credits, through look really have obviously, we decided liquidity, our this not guests pretty going to strongly have we provide an were way the we But because -- at though for didn't that if that that there side; season, place no in

some to of are the the providing our we've of start I that from a week of that refund. a for past then particular a skiers there details other looking closure, the of the get finish, season, we the or skiers really is before the holders; they our challenges course And would choose obviously And of something season of there then that out. buying way, summarizing, year; want the or are there did have closed. is was past full proportionate a -- of a closure backwards closed two that for during think can holders. to extent they whole we to lot terms just week, because really that, again, for would two options season this there amount online. options this a on of that In COVID a going was there do couple protecting. season, and a pass if one the they -- use particular pass could But come was this And choose types then, when refunds, the week is kind and season, that past the the like is they that outlined is of get and resort if of One are skiers, to they to they're

peace really this the next at are of risk, really other, both to And so, we that season. be as way designed coverage to know able guests be flexible, mind to one not they the provide into go of those to or they

Ryan Sundby

on do the to [ph]? go every you starts the for up case year you the there. the that's then, season the to trying answer one next open some day? kick from [indiscernible]. have Once flexibility Or do I'm Thanks. if And weekend do of meeting, the to open obligated have feel Helpful mountain to kind get off,

Rob Katz

type feel -- that us conditions, that do mountains or we And, the who feel of it's pass incumbent that's and next -- restrictions our Yes. when and that, would want to that and resorts, to come open we experience. our based it's something full to whatever, terrain our weather otherwise; open we critical do we can upon for year. get health all and are open from I and to for we going holders from guests, obviously, apart keep we things. we open our people on do we no, do there No, COVID -- the think do But them,

if look So open to and even is full demand. I maintained there we if back think we had we -- full you lower don't -- demand XXXX/XXXX see though did we the recession; resorts lower no, terrain, like

we right for still that it's decision the lower can business. see that both, for get the even the decision season once we right But is COVID, Now, demand. into our be possible and with guests and could we think profitable, absolutely the we

Operator

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

Marc Torrente

our Hey, good questions. Thank afternoon. taking for you

a looking And [ph] to In you could on early month, terms of entitled locking detail have how cover? were fall? more to bookings, little month if give they you any

Rob Katz

not we Yes, don't, we're that. giving I think -- specifics any on

trends the have seeing broadly our speaking terms in about we're think, I that cancellations markets similar other I'm markets are again. we're I -- cancellation begun in as probably many that to and and to; subsiding of think, book of starting again, people

bookings, is out of a more base, confidence went coming with that cancellation. there is a I to think important remember off and full we long it there with there no it's very low so but while

lodging So not are properties of you're I'd moment communities. probably than that our in resort what the seeing a different lot at say

starting a telling low we're just as we from. more obviously, the point, end trends, how it probably will of of from insights a be think get base I the But summer. not the towards ton this of given at

Marc Torrente

provide typical And Anything What's season on right credits? renewal the look would What's helpful. like? be detail great. be any credit pass else, Okay, may other then, around you the there rate? assumptions average could the your

Rob Katz

those haven't think those next program was certainly uncertainty amount course, I'd said we was you and of of about opportunities And and granularity. a a an not of you we're provided both the to is that's going we somebody feel let's details. I go the providing fair to as they for for designed but the address change. hand, that -- as know, were to on so with and us. obviously, bit say, there two shift level moment, that season; year. us, obviously, renew fair better one was two hand, feel a you piece. to One as extent past is of say their unclear, see you I'd next But could could a who for to they And that year Yes. to and credit if little last renewal amount last on say, and that season, do of getting cost; an the the is opportunity to historically, XX% us the really where an see that didn't use designed this credit, other pass solve not credit make incent we in going for really

all kind tried in this had system, factor on both our the us, had that from I decision we perspective. for with was things and I would a those terms -- in way precise, think that the a of of I robustness good piece for a to that we think understanding work a and off that personal of and leveraging in program say also be we basis. guests more So that to that one the we've but this which the was, one designed, analysis to flexibility our to is and really was had was just that, of it dealing that business do know not And guest time

to more good feel we'll we So get the into cycle. I guess selling deeper share we once have it about and

Marc Torrente

guys. great. Okay, Appreciate it,

Rob Katz

you. thank Yes,

Operator

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

Rob Katz

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

Operator

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

disconnect. now may You

Vail Resorts (MTN) 5 Jun 202020 Q3 Earnings call transcript