MTN - Earnings call transcript Q1 2021

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Operator

Good day and welcome to the Vail Resorts First Quarter 2021 Earnings Call. Today's conference is being recorded. [Operator Instructions]. At this time, I would like to turn the conference over to Rob Katz, CEO. Please go ahead, sir.

Rob Katz

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

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

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

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

including the of for orders the by for and Victorian entire with be but quarter Blackcomb, in from Whistler closed negatively the guests, summer Canadian Creek fiscal prior U.S. results remained and quarter the improved to to from relative in to continued home government leisure constraints. At border restrictions, travel compared on Australia, year available the Our visitation quarter levels fourth resulting Hotham levels. to continued quarter but COVID-XX July Falls period. resorts below following trends closed international quarter results visitation July XXXX X, the remaining in due demand a of guests stay entire U.S. in part the historical significantly increased, revenue decline below remained improved demand America, terrain relative first year remained COVID-XX North significant Perisher, at the capacity issuance our to by impacted impacted XXXX, be well to related the by to At as negatively travelers throughout the prior XXXX, experienced In

maintain while for Resort saving EBITDA combination and quarter Resort a of only quarter the over first year declined period, cost as the throughout million million and well declined mitigate revenue actions. same reductions prior levels. net reduced to $XXX.X labor We rigorous cost expenses disciplined Reported the revenue seasonal to time by overhead $XX.X cost as the continued reduced significant reflecting to controls driven partially compared the

includes North total a related for sales pass of the million offered pass recognized would recognition approximately September of of quarter been credits year to from XX, during fiscal million $XXX.X lift of our American net revenue prior of First revenue revenue which which have we holders, expiration $XX.X Resort to otherwise XXXX/XXXX and the unredeemed XXXX deferred XXXX.

recognize as the of and to Credit associated remainder primarily quarters XXXX. deferred revenue expect the We second the lift the revenue third fiscal during of with Offer

pass our North to now Turning season sales. XXXX/XXXX American

Epic in Without and ski the American the adjusted XX% to the increased sales value include reduced XXXX, sales by redeemed period, Pass provided Pass the prior ended foreign end our Coverage X, the with the eliminate American requests sales results X, units both for applying redeemed for North for by the in of dollars deducting pass rate exchange were holders. North and but refund dollars XX% processed $X.XX are pass December credits, sales sales. period this U.S. Coverage compared do flat the Blackcomb the not XXXX/XXXX year. future approximately Whistler for between through XXXX, an year sales currency amount dollar December approach estimated Epic through for December of of to impact periods are we by pass selling XXXX increased year season refunds. reduced to sales credits value As of the of the of to reductions X, approximately dollar compared season any in dollars prior Canadian

pleased season very impacts challenging are with We growth COVID-XX. the the pass particularly program, of our surrounding circumstances in the given

not September, of demand database, Day for strong We of were our from Australian expect that primarily all Pass all exceed exceeded significant our this driven lower loyalty to by in demonstrating pass the guests sales American advanced including destination the total purchase and our demand passes base sales million pass number Since in and and on our resorts, for growth guests North products. will the particularly expectations in mountain continued guests X.X Epic strong previously who passes year resorts. guest significant our frequency

For the unit saw we growth our Destination across season, full pass very broadly markets. sales strong

of new unit not our pass to and frequent very The Epic to created move our We markets holders success our was pass guest products, of renewing strong and Epic to demonstrating growth and Pass products. saw were into Whistler pass credit in in our offered in growth also pass guests, previously performance also in Northern our incentive guest long-term in saw strong given California but holders, growth with programs have guests solid driver particularly both database. products who guests the strong saw for last year. less growth our loyalty Pass our strong and saw in unit Local the Utah, the from and core Epic our new growth renewing and sales comparable primary We Colorado we Pass Day in we in growth strategy

to year of future. result will supported The the total some accelerate by year year into this guests program has our our our the guests and of value the advanced may new growth into ability success this season, commitment also of products our Epic expect credits, move new been data-driven Epic pass proposition system, additional the reservation steps in our surrounding Peak network, taken our included pass this our we and from broader the extended our we Coverage employees pass believe products Resorts products. of to Day with that deadlines, Pass Day no the including be of efforts, Pass offering circumstances program safety into growth While product pass that every top purchase Epic address marketing of be our guests, to the current the a priority. charge, second holder environment, continues inclusion for and of communities The continued our

reservation safely pass opened on lift operating holders including our XXXX reservation XXXX, systems restrictions continues purchasers X, around for the XX system during procedures guests. our December season resort the our surrounding resorts. we mentioned, has expect days changing the will capacity our for jurisdictions, almost the continue enable to to ticket operations our a circumstances will across have As throughout X, American positioned that our us planning ski reservation North and the to operate COVID-XX contingency resorts previously which Currently, across and we November season, throughout us react we across all of implemented to implementation to on system, available which core season. quickly The believe the

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

Michael Barkin

Thanks, afternoon, Robin. everyone. Good

fiscal million the North million, loss and of for first a a of was same the Resorts $XX.X loss $X.XX COVID-XX. period XXXX $XXX.X to results the prior million year Reported diluted diluted a in fiscal first Vail to loss result as impacted loss the the to per impacts Net Resorts the or of $X.XX in quarter As Resort share American and million Vail in $XX.X attributable compared compares for loss quarter our in EBITDA Resort of per mountain year. COVID-XX quarter, prior Rob primarily or Australian of first our a resulting by negative of the share resorts. significantly Reported was loss attributable of the a of impacts to to mentioned, were EBITDA which $XXX.X net

to billion, of Credit strong million COVID-XX further of $X.X availability remains approximately under $XXX mitigate cash on with the million Agreement. as XX, With position cash availability and November impacts Agreement, hand, pandemic. liquidity of XXXX revolver under million the disruptions of availability Credit the Holdings revolver Vail U.S. the from $XXX and total of Whistler revolver $XXX Our

XX, total October months As debt XXXX, X.X XX EBITDA. trailing net of times reported or was

to extended operations through even to at in expect shutdowns. of fund have least ski XXXX/XXXX resort season, the liquidity event We the continue sufficient to

to our turning Now for outlook fiscal XXXX.

Given the ultimate season the demand, said, XXXX and the spending operating pleased created at resorts, the pass travel sales restrictions, with results this for uncertainty providing are to that and of strong heading our into our fiscal revenue COVID-XX of not will full the year visitation be visitation and at has and for season. foundation time. That company creates the we guidance very

associated declines visitation our non-pass ticket for in revenue primarily result to destination among we continue relative challenging the more visitation as to with Given XXXX COVID-XX, expected our XXXX from declines and to in due original material visitation dynamics in declines reduced international purchases resorts fiscal specifically with of to expect material fiscal expectations guests. a lift associated declines

the of on declines we While a impact the be of during demand. that we negative reduced for limitations peak will our season have travel driver visitation ski capacity a to primary periods, expect North mandated result expect visitation American

negative Vermont for closures of Whistler including quarantine additional given policy heightened as to domestic and Blackcomb, result visitation regions impacts travel a We travelers. border select exist, guidance, restrictions in expect Canadian and the where out-of-state

we remain limitations excess with operating of outlined with actions school. in call a to have In to eliminated our we tightly release. on options. impacts significant the deliver cost have Since sizes in to in the and been restaurants our at response our guests, ski other manage back I'll costs cost our of and primary in has a visitation while our ancillary of revenue expenses, earnings and expect maintaining beverage confident disciplined expectations. in a over to plans ability Rob. in focus, implemented lines to-date lesson result September our COVID-XX of have previously select and food we structure also against decline beverage, turn for and that the We and In We taken grab-and-go many our food types management day COVID-XX XXXX recently materially resorts financial reduced and experience many to in COVID-XX, restaurants significant start manage our at and the restrictions. business, negative now group restrictions, actively of high-quality significant particularly and reduced variability full limitations reduced as on-mountain capacity limited school, ski

Rob Katz

and uncertainty to the our due lifetime an reduced creating core a to given Thanks, levels guests disciplined resorts, to investments, plan for for our a maintain approach experience our capital Michael. at We of committed capital continued remain to in generating We strong returns reinvesting COVID-XX. keeping our shareholders.

lift-served with opportunity capacity. to will Creek. further focused beginner rare a Creek. North bowl high differentiate American but to in calendar our subject the terrain expansion of area for XXXX The Colorado, move XXXX the to -- install highlight for plan of four-person experience lift and in This March with capacity Breckenridge, Keystone, guest of at performing We in will McCoy out from as services Beaver XXX-acre intermediate in lift of of forward fixed-grip to the to experience are four-person the we season, plan with base accessible planned circulation most a circulation experience that lift-serviced and and and and will idyllic X. in At new one intermediate and regulatory in year At Crested U.S. result XXXX/XXXX family were the ski the three-person capital two-person several Colorado pleased approvals. and At to improve beginner complete lift will plan will investments lift a chairlift a at with chairlift we access of speed accessed year X access, is announce improve experience top Butte, are Beaver XXXX, further Peaks most In base to at calendar increase which in one we plan the Park enhance signature expand and the new deferred visited the guest popular we previously speed highly terrain settings we COVID-XX Peru high-end, serve the additional terrain to significantly of and terrain the plan resort the the the resorts Peachtree a guest the at uplift for U.S. new on resort increase lift X. replace fixed-grip key replace to high area six-person resort the Peak the a order

high a terrain school upgrading the investment a These six-person plan our to uplift to Peachtree from three-person guest experience will a a speed plan including lift greatly grading we experience Quantum the to the more to Additionally, improve $XX transformational capacity, of further and lift consistent lift the the replace the chairlift, investments relocating chairlift. Quantum four-person we for guests. beginner capital Ridge enhance improve the for four-person Peaks. Okemo, plan serviced existing our and fixed-grip million by At Green complete Triple complete to create ski

also continue our data which our the infrastructure service we our work approach invest support efficiency enhancements cost to particular, these and our network. to optimize to in intend processes, to contact our number as centers of will technology to business across the bring a In scalability We corporate to in infrastructure guest channels. driven company-wide we and and we will analytics how approach invest a through guests and of discipline best-in-class upgrades improve

past chat call functionality months, chat for our the we were well Our the suited created guests. experience over which not challenging a and centers in than call to six saw handle more increase fourfold volume and

calendar integrations Including also with to across activities, to we reimbursable one-time support plan $XX for million associated expect approximately and expect resorts. of total excluding $X to primarily these We our approximately be $XXX maintenance one-time million infrastructure related million capital to items, In ongoing our our will Resorts. We in $XXX be spend XXXX capital capital on will plan invest $XXX $XXX total, items plan will to million. continue million, we our approximately investments. Peak to integration million

model and be of the our approach of in to will further the our will March of detail attract world and calendar built with of to a marketing guests, in products line the of use including resorts business loyalty pass sophisticated provide level capital our remain irreplaceable we that class We to our opportunities the potential is season XXXX. confident XXXX guests. on continue progresses, updates We evaluating providing season and long-term the data-driven strong our access and prospects our as network plan year investments increase communicate that planned

evolving to continue in our strong for our and to employees our people, the remaining positions Our guests. caused work COVID-XX. their hard while resorts, by creating like circumstances guest thank of a commitment flexible experience us capitalization the and our to for would to through safe, invest passion, to experience, I all manage exceptional

While lies full changing the of take upcoming and engagement this the always various environment. external never ahead over stakeholders the in past center been nine it months, the challenges pride of and what our more has in new in an the I success, tremendous internal at team's lies balancing ever for requirements tested and than our our season. needs of all in

the your While ever core been have for consistently time, clear of it's would we nothing founding. we now guided questions. all answer to is how by our At since are it company do your be very always efforts I the improved, can perfect and same that at remain ready questions. of its center Operator, values Michael happy be and this

Operator

Felicia from with first our Barclays. take We'll question instructions]. Hendrix [Operator

Felicia Hendrix

on The on surprise season the first question upside your I pass have sales. is

the original between was expectation day demand and new your major passes. demand then the the you particularly difference destination the in As outlined,

of you and pass told us see us then different, you there you extended different? like can date expecting through information, is thought wondering, you and parse also. mean, pass through where what in the but quarter, just I the kind season over when more way And give Just that, were any sales that happen guidance I also, cutoff for parse you was if to Why? were you would the of last for up was what end if you just to kind gave that? what you when

Rob Katz

true. were we forward holders. guess what turned renewal to December, we two -- -- had to see be were guess we we I piece, on a I of the from felt I like, lot component was, the pulled were And we as out going would One pass September last that through there that And components. say is, many renewals. So first And renewals not we did as to year. going

our to think with paid either their we're, again, the you, pass a this to assess ticket of assess who or tell trying is, I year. in And I’d last year line in buy that. or pass ticket, database, in piece second were propensity time in largely people last our last conversion to the pay

case was for call every in who to that new I to a because think there these the to was lower hardest this of are the the history would forecast thing obviously restricted hand, at conversion And people opportunities on Obviously, be of be for us don't we maybe company. would year. lose in our do made probability really database those then lift assess. not year, typically have so We them we any people other of tickets because some folks. more all, COVID-XX, on being

But in But year. harder always exactly We just and tell particularly it the going ultimately, had And something it our product of is a did its Epic obviously, hard drove obviously, do pleased high conservative year. three were I launched of think to in the that September the so saw, we lot new in about was even that. when what the to we in that expectations when group is hopes only second that and given when middle that, upside from for we're to one to you're we were environment we that products, again, really it this quite into. a product that pandemic. that see day And

Xth be December it the was at On pass deadline the deadline, kept pass to scheduled Xth. and was December

selection days, Coverage would pick to time their the I little the thing terms extended work just a more gave Epic for we in about Coverage for how Epic their was only we situation. of that that we did think for even reservation to priority people so people opportunity the week make a

Felicia Hendrix

And percentage then just your, guess, you is, what for I remind visitation your local? that And can of what of visitation Whistler, of EBITDA? then us versus percentages overall, and/or destination is

Michael Barkin

break don't Pass by at Epic being out entire We the the network. allocated this the because of of Yes. resort nature point, across

at where business Whistler the was international. their did If look deal, half U.S. we you of the came from or when about roughly

and half that's as And about So much about Canada provide it non-Canadian. domestic can about we was half at this point. as

Felicia Hendrix

what just then company, versus local? overall on is the of visitation And your destination percentage

Michael Barkin

that Yes. Peak. We actually haven't updated with

were for versus number in destination on We new a last -- put a our skewed numbers out. have don't local over I destination we you half that bit on that. So resorts, our for we

Operator

Shaun our take from Bank America. next question We'll Kelley with of

Shaun Kelley

them to bit of of stick part with just I Rob, down they just about about I bit came to just if a that it by season? don't one Wondering first cohort attracted new a of that seems product. little new thinking the of you but group set how But going could the talk know sort give the most after of the you've type pass. valuable the are little cohort regional kind you color of that broken when product, for last I know that or by destination mean, even you customer like or what in this you nature the into three-day about think kind them, question. be of us kind they're are forward could much

Rob Katz

something think had country. designed the array Yes. this good was it put it, I markets And a is, say, -- news of the do forward product, for coming destination put know year. I much last -- think from I very I we broad And We this a that. would introduced certainly again, already obviously, us across guest. think

though we have marketing try approaches, Obviously, people. channels information. their we contact we have So upped and reach we didn't had even that their

the this be I it we that that. So out for to there. And think out right turned market right had in now product exactly

into to I or trip. for planning days but think reservation the clearly were of be potential to trip days a they these system -- folks they of know come and of a maybe an get a these at longer they upfront in take for whether able them, to lot figured I are They planning were a couple value would a early. don't planning lock attractive couple only obviously,

add may days season they the So goes as on.

this was more committed pandemic, when we'll all people again, you think I about that, when were learn talked would that who this we launched that Day as broadly, an who is this vacation, doubt resonated. interest it, over And a Pass and a have trip the was no appears really looking potential that those exactly think I they progresses. take that outside, a of the outdoor we just some coming, I But looking may though it being for to this the product say, an clearly, are in winter opportunity. what for was as of Epic think for. season experience are I aware people to into think I certainly clearly kind winter And being be

Shaun Kelley

expect on ability the coming things, of some closer about retain to think elevated it you you levels? of I combine pattern it this? level? And mean little thoughts kind your existing gave kind theoretical, the just to out? Because should if what but ski would worked why really Have learned you say, both is with retention thinking how are you're you obviously, to this season, -- of -- of has are more historical question on play stay last the what year, other one next out between the can you large Or what this why well bit travel rate reservation this the thinking? on think be would or a sort people. to season, next saw you could an discount I what credit, Second you think returned a or normal like, is fast and of year by Do variety and of by forward things and your at we around revert

Rob Katz

Yes.

the who a probably helped. I But results particular, ended kind I a that because doubt final what that it's have were would this helped COVID think people with for understood of no because bit over say views -- as that in during I analyzing, minimum that obviously, And us was we steers clearly there skiers credits the there some retain, people still and is for think And benefit obviously, helped on little I our frequency early think think, certainly helped products credit. certainly to to week accelerated the a a of the it it XX% that helped I high-frequency I little we're in just low think, getting still season ago. of were certainly year. and And digesting early.

other it's really On the hand, important to not overlook this.

We travel middle very of are the in a uncertain environment.

And a was so that think, things it focus normal having like be on selling I which there'd huge as think balance, us understanding benefit, all Epic restrictions, this as to we year. I near the typically nowhere the are environment be experience, important more into, Coverage, understanding in on would where

of flex a I other areas. would honestly bit think to more that little all in us allow

and introduce obviously to a future. the dramatically I to of the So hard you middle was people I But market a bit holder program. data, is how able our I to to that balances when them pass for thing ability having we having the the core mean, them to important right into that out next me, say right, customers think risk, were new them at think COVID-XX most retain, little improves year, as And lot the now. that's know, retain their once, and as to actually in a certainly

no to and were guest was these everybody way, brought product our who -- them. the credit by that lot them. as discount the else. in not a people for and They in, database prospects before, offered getting no -- there Obviously, were same we the think there I So was

how from out. we think good will exactly balance, work math feeling walk away I on this, So very the

we've positive go where think seen, have season and about what But program leave is we selling think we'll as the we going. about more say this to next quite I year. probably into I

Shaun Kelley

and possible stay-at-home be, would this urban headlines Tahoe California activities. in talk some impact broader given orders have we're with town. around could Lake you of just it’s that there sort of I were kind portfolio, -- operating about morning, thing Last struggle imagine out a how would But could have to bit dense the the I going to little just regarding some possibly something

You little is about confusing policies. I a which some it’s a talked Vermont -- think very bit,

challenges you of it just operational what with how a right and now? kind on know contending little it this of about like can of what So you based right or you at you're now the know the with regional or for level exactly resort or talk some the as season kind bit of dealing kind on local comes just

Rob Katz

Sure. kind that at of do I do in having during at making and will navigate going one, of the yes, to that think people we do are should positive that portfolio too also ones restrictions, right some And at restrictions point throughout further lot be we But would I resort. every think the And season. some can the say, assume on the those activities then every new I season. right, throughout regulations are what can there's probably every be changes we number I trends a that the do to ever-changing these and with locale resort, community that think certainly, now,

I may company as all we So well. communities know see to case right, loosening bring are load the and some of our down our obviously focused partnering, And on everywhere.

end our And of end, why this. my standpoint, said I remarks what kind about think think said at the I of an sides the the reasons it's one from of in employees. no, of we'll I both I see operational So

this address and put as this. the tremendous company I whole strain a think challenge and try and does on everybody, to right,

the preparation, advantage think a lot that with of I the have have -- is, went we we I in system. think lot reservation one we a upfront,

central of going of all We health, local that are on, everything all constantly teams that. heavily have public that of are monitoring engaged a number with local regulators, these that's

the address central information, And of in else, number can we central it up a I they we and it have something that Tahoe resorts, because for we whatever new use best that can think, and going seen that resorts really through on the kind to we that's And become already obviously the push gets also know a kind in by and because that a it's of each like they that having up. of these can approach actually, place. real rest and or of take the we as standpoint leader enacted, restriction advantage, from put so how can immediately of practice what's shows understand. somewhere we We've of having the go approach that And company. we

doubt prepared, this a no but I be operationally season we're going there's So ahead. very like is to that well feel challenging

Operator

We'll Chris Deutsche take our Woronka question with next Bank. from

Chris Woronka

mechanics to the are wanted on about I ask work event. to going system reservation the how

Someone trigger how a does a they on that work? reservation want. that just the refund can't that process? Or day get Does

Rob Katz

refund have that out So that the what terms have works to, opportunity to the opportunity this of course, the again, people where we the anything not I'm on get were say our go to of our going they in wanted, able through holders get reservations. And X. they X, a the program that I'd way on -- are on of and caveat and the yes, period time system shorthand, to -- website. they But and conditions, course, had then extent the get days a December through pass December all to the to is,

the they at sure and comes that. obviously, we're we'll make in And is of so we'll, the terms did, what going that review. follow alliance with not course, conditions. then And something to look that obviously that on And through with and now the all guests extent to they're

not and from can't forward, a if Going that new event. that reservation they forward, in make does of refund want, a here create itself they

Chris Woronka

But haven't home figure holidays folks to you so there they're hit the in know from helpful. of realize early kind databases New out showing peak going through reservations, home to to it's making the I your season. are are up and folks hard of early and it's there Vail. York magnitude staying Again, you or are really maybe validate close kind yet. where yet Is data people out more going thesis how still anything as than are to I of comb and Very Vermont to there staying? the Okay. to that then very closer And people any is the

Rob Katz

Yes.

Colorado data are think that early a it's from destination potentially of looking we're I -- assessments that. -- it's no to of West. Utah that, the will the Whistler more numbers guys option absolutely biggest many course, reservation don't And especially I doubt the in really our resort. of definitely U.S., people make biggest not to of I looking any think travel an think that and in where little Western I for at, put our too resorts -- I the think our that, I course, reservations, are some to and that interest, within do of think, is there's

But now, an see the plays out. markets, right, broadly our the markets, given at them saw, strong to of many for I of this destination home. our don't across we'll again, our have So most to moment, right that option how ski destination think momentum we markets close destination

or to plane a either our willing are to So on resorts. are folks obviously, get out longer drive difference a these who

Operator

question Vasilescu our from Paribas. with BNP take Exane We'll next Laurent

Laurent Vasilescu

On illustrative for on fiscal declined was the updated XXXX, given an if expect resort we fiscal through XX% I was the that $XXX last example any be thoughts to year? just progress we revenues can year curious, that Resort about framework call, as EBITDA million.

Michael Barkin

No. updates At this it. no time, to

mentioned think and our on focused earlier release, I we've very think I the I stayed that. remarks, our in cost through very, As managed in discipline, and

that that the that illustrative through as remain we you QX think season in changes September. see results go and committed results to I in And can we the managing into of example provided no the certainly our here. to

Laurent Vasilescu

focus hear. good curious, even on some that be shifting That's an might potentially to thoughts standalone balance acquire mountains here. just you And to not opportunity share front? great sheet or -- take create Any in that shape. COVID that the does Does have. have COVID then Might same

Rob Katz

hard think say. I it's to

upcoming that think will play months. XX out I the to XX over

to interested discussions. as when strategic other you differentiated whatever side, have make in a it an for been yes, maybe it's those think strategic -- the things 'XX, be I are think right opportunities capital, on But both tougher to of capital focused of our where having come discussions back able liquidity us, of most certainly, again. were seen stabilize, of things, we strength, now. to Again, to the we side events recession. think, sometimes do sometimes think usually able a And that are there. we that's destabilizing I that positioning look we out out in opportunity. is certainly And strength externally sometimes And previous instability, out access, historically, the coming I have 'XX I think company I on there's we're more to in a and the think people of lot the has internally the and as middle that after right, are very I the

sure make XX can over -- next anything I is months, we the to don't that that critical. leveraging so think, And miss we

Laurent Vasilescu

lastly, Australia track sizable then believe that's a Winter leverage little visitations market to for North to I you America a partnerships is Beijing hosting will Japan? and or in How are your out, positioning have but I consumer. this some Games the over the mountains And know the maybe Chinese you Whistler of year more a be with yourself whether games and from the maybe in Asia is

Rob Katz

Yes.

and travel course, travel drive food hiatus with think connection it's the restrictions. primary that we during continue Whistler many But the opportunity potentially Japan, think I the lead think connection, attractive on acquisition a why reenergize knew an such going it's in and the an once was efforts. partnerships something because opportunity they that with such in acquisition And I America I I through the was North COVID all reasons the of of yes, for think both us, had of the COVID But Asian fronts, language through that of or one many long-term market good in absolutely those like way. many some business. think, critical. little to we're us relationships things that level, -- ultimately, it's whether best And around we a at really providers has we're China is amongst I and and resort are wholesalers an behind that felt that's bit on opportunity there or the that pause resort done to to to

seen I in -- think Australia. and the real that already opportunity, a they've there's yes,

biggest So industry -- that global for the the again, one is making all opportunity make the moves we we that the around and benefit right, the sure can from of entire that oriented the trend. I in think get company China market maybe best, strategically are

Operator

our Scholes We'll with question Patrick Truist. take next from

Patrick Scholes

County run the impact designation in COVID the County the to ability designation. governor and you. orange in lifts? level, if red to Eagle in your that what that is Has for the Colorado Summit I Question highest Would you for happen see move is would the told those purple?

Rob Katz

and no, an posted, at would it I level just in are no, the we we're have be basis, both high-frequency regulations we county on obviously, level. state out are the what additional -- other that level county that the And isn't mean, the that than at don't it's obviously But and dialogue. -- decisions made information. state Yes. both communication in -- local there ongoing is at

County that's get that. as know slope red both see. are be is down and we'll to them can move looking know County County critical County would And move is and orange players obviously, So a very to decreasing both Summit working to to whatever to focused are if from right and ultimately of I intensely that very think, orange. I obviously made of keeping we caseload beyond for Summit hopefully bring the What in Eagle is, we say possible, I Eagle are those decisions I now. terms in Whether

Yes, going XXX% exactly outcome or So lot be on, the at clear. what regulations of level, not will if purple but to move the a would work the on what again, every be they point? this

Operator

question of Katz next our from take David Jefferies. We'll

David Katz

areas love bit those any unusually impact and may high, what largest of lines it But I'd a certain your in happens And buying hear helpful. like number in longer discussions you've and all areas number is right, presumably, renting thought on growth, an there's people seeing around right, results population about evident same the of there or either just at more people if what of that the where you had permanent, about mountains? long-term, to over far? not late And term, I've homes near remains be so published along in near-term? moving what then a surprising,

Rob Katz

Yes.

would we agree. certainly, think, I

think, that's video But I of we that of other hopefully, outside looking people I big probably is strongest behind yes, a ways to lot clearly not some demand, think like on are critically strong transactions trend, we've going I right, the seen XXXX I -- many us, XXXX. has sure. resort technology How this, the shifts say trend very we're people that using work-from-home since COVID properties because demand level. for I'm or that cities so would work would it technologies put remotely, and for and be of COVID. the right, of can seeing in many opportunities to seem And enough, think continue

be probably I that's particularly for some true think higher to on level education. the in schooling, going

out to into would it's school to times remotely, buy obviously, can extent throughout of just whether the to company. people do obviously do not not off-peak to struggle a able a put into potential -- are mean, people the industry just benefit and that job times. peak that still resort be season. way more in their as even peak real down balanced and and obviously, I estate more We extent way or they're move people our times, would these think, it's the throughout the then will to, to so or travel huge And And the year on cluster to themselves that vacation and that in spots, tied to that a I things

of a opportunity represent vacation industry, particularly could our COVID the that the think for entire I company. dynamic to coming out major but

David Katz

XX, next what may And the out. may is with is but there's whether the question, some unknowns, but essentially they where program open, whatever apologies And the or right? very rolling fulfill, I'm missed potentially. any season And mountain days the getting person circumstances can't mountain. they within made ourselves for near the that -- prospect laid as it's there well, assume some I would can't get road. XX as that and credits the latitude fulfill, bear I short-term right? opportunity, one, can't we for at which have into down respect to term, the a to reason, They a reservation we find have are should and

Rob Katz

Yes.

program feel that to I think coverage available make our address the I it's in will necessarily likely doubt people like strong will a scenarios it. think that, And hopeful our think perfect going best beginning. think most it's the a for of that guests. the very we And I everybody's all need pass of to are at in right when yes, I they also products -- basically No and we're a point, products be be any tried like we solve won't that to the have obviously, at this our And won't throughout long season. many -- be We're available season. our comprehensive it we're problem. solution. year, that a other to now, lot our a obviously, the is very -- And just pass provide season. view it of support But end, throughout

take trip. potentially that multiple so opportunities people a gives really And to

that that. just We're not situation. helps I think in one also about talking So

at on point, good where feel that front. about this I think that are we we So

Operator

We'll Capital. Golding take our question next from Paul with Macquarie

Paul Golding

database the into ticket day single around -- of I traded customers Epic. what up that how was or could lift from anything So wondering many was lift proportion there if -- tickets you share

the pass maybe extent you you Rob, network? and a on you Just the priority trying talking what up that contributed people to of being color to tiering to pass this, maybe that able dynamic, earlier, for to understand get if were without tailwind into have any about not the fear

Rob Katz

Yes.

again, to I dialed. point, early perfectly in insights have all think our process little those a too at this

with them. with and people -- who dynamic in think it, the have sure a are don't I was that just urgency specific -- on ticket important on to all so at I of would getting the the wouldn't guess, the there, priority comment seeing I in the exactly cross I seeing I'm right And we not database terms but strength say

came has these every one of Now say a them Not that reservations. that said, lot I'd folks made their end. in also of towards the

was part value one. also proposition, of And no so big that this I have doubt a the

of And remember because that Pass last so didn't it value [pass Day Epic offered. obviously, have when for it's that was important a the we good], us strong performer to year, very that

don't they're of so each we're product both type quite pass our But point have share for -- and actually in of And doubt points. been I've conversion And the I lot dynamics, this product those different exact the would helped buying who, all by somewhat. because a type the of seeing any for to that lot a now, by that customers. are guest ticket -- for on quite the kind of I this and last year, lift type, them geography year no have think yes, absence no doubt these again additional are likely folks most information obviously at

of we we'll next quite year. things one go of before bit that's obviously on So into time the spend a

Paul Golding

to And follow-on it. around database. a then that the just Got

retarget integration you of selling season, essentially as to being far end uniques there or like-for-like the able volumes insight process? you're going to around been able any you've into that your own uniques more what into on were is integrate as As and that or there you successfully the of give database is can anything any progress carry over you Peak to the able

Rob Katz

would the that, in year having Vermont. feel our had right, a And say first on first Northeast, very specifics Peak, good some but the is, especially in I program good in good of I feel first good fully we this share about database. and can't with really restrictions we are we that with feel year Peak think I like year, given I the a what results with the think, about

that see Tougher we we're and ourselves have than we've fully history and lot that. integrate to a is I an and added. of ourselves acquisitions think for with generated other the third what getting, cleansed of the seen when is that of because all often we data the kind year us second in acceleration

But with Peak. I I go forward. So as that think about feel year that's first us an we opportunity good for yes,

Operator

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

Alex Maroccia

Just [Technical Difficulty] one

Rob Katz

of having actually a hard you. time a hearing we're Alex, bit

You're breaking bit. up little a

Alex Maroccia

any now? it Is better

Rob Katz

you. Thank is. It

Alex Maroccia

so problem. no still Last on XX,XXX to quarter, were forms or online waiting Yes, you process.

get give just passes their you So going other sense of downgrade how to some many just ended a across And the what you were issues. Can seeing deal can how you're in many random with portfolio? downgrading? general, a us people of and up sense

Rob Katz

product piece, of on would those pass convert that forms the but were I into a folks not able say What Yes. a few everyone. quite think we to I

people we or they I whatever interested people doubt wasn't in, they think were or nice not wasn't who maybe our that huge announced some their contributor proceed. fulfill. were ultimately -- in requesting but I surprise there that total, of form We something -- number whether were whatever a were could the September, in numbers, were to total isn't a decided a to us. we it the to which think But actually, forms that

downgrading between I huge the difference units and a think had we I revenue brought kind lot think was This much on no, the material And we the but downgrade year, downgrade, by issues. was think pass into new saw frequency of that coming or I a products. yield, effective it average impacted wasn't down fact that don't the well that the driver. people price more necessarily very of

Operator

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

Ryan Sundby

at the here we for year, started year, during you COVID cases final that Paul's increase all for couple there. does units weeks throughout question look guess, follow-up to pace back XX% the as rise shape of on change I of pass as When at look growth just the the a the see that you at in going country?

Rob Katz

kind did so see on program. I the broadly No. mean, any we not impact of

we Northeast the saw mean, obviously, the Northeast. still -- whether I better that in than saw growth strength I think, Northeast, that But at very end. something has definitely that's in outside as -- think I inside good the the we

and final know, certainly would of went that at attribute material all, timing whether as on don't whether just or was So that I nothing but deadline in we or we we COVID. -- that what restrictions, see that not we any change because seeing was to we're trajectory into the did decline

we of see think But are I in ultimate resort I either terms from be restrictions or there that Now in place. impact visitation belief it's our that said, ticket a still while to guess seen. that's material pass the these COVID paid again, holders to will holders,

Ryan Sundby

then can this just the season or in you surprised were over That's with super carry for year? And that anything Okay. start that helpful. here you key learnings Rob, any into Australia as you U.S. there

Rob Katz

we that the was, environment be I learning like but think on prepared Obviously, that on to we everything could you tough think a try few could and prepared critical. as unique thrown key everything learnings felt the was at were: one, could systems, and it to whatever get it's be is forecast best as we this one such really can. environment a operate I get was yes, better happen, better us, through to

was come there demand still the in that for there, resort. to Even demand. in saw was passes. middle also we that, think demand still still of I pandemic Australia to the There there the was

insights I I would business. us the plan. our Australia I And think our people that insight, Australian resort things at think took things if helped coverage, the us really confidence from from leaned in lot think right then the we that really on those we something if help too, kinds time, all approach, a we of gave of ultimately, we introduced that gave again that credit that

to whether So show was who how it from service, compared it was a we on especially -- to how lot who that ski points food school. up, pass whether do on to wasn't, on that it’s to used, whether there are of took it we whether data was sales, was going

all So were first the our same we advantage. and in I of as getting I America North that resort, think and Breckenridge. Keystone learnings opened Keystone an us And by immediately immediately learnings token, think Breckenridge getting open, all from of resorts XX gave from our

again, try really this as for very I of positive, us So doing ops as, our think, from that's, learn mountain who and tough I is the a environment. can navigate So yes, job team we think using we what? terrific

Operator

Hendrix take with our from Felicia We'll question next Barclays.

Felicia Hendrix

actually data, given in so -- really I restrictions, much I the have it's season, certain follow-up. but that's I Look, was we a wondering, things. all not just a early might hear did you the have know anecdotal that

to far So there could scores if just extent are so wondering satisfaction any? your you talk about the

Rob Katz

Oh Yes. with guests?

I comment think early. it's to definitely on. Tough too

lot are this skiing, -- outside everybody a great be talk are I of come are time, skiing, think but people. are think think who we I I accustomed I again, at as mean, opportunity obviously for think to I they who I anecdotally, their -- go know mean, to I whatever or to just are people of the looking their wants them, to more be One, resort who family, over people together. go to there people thrilled a still these to lot up to. who be can to friends a

feel about pursue. I definitely chatter family this having There's their options mask to and So limited of is them long period think have people they over a I think wearing. one want still like time, that

have challenge with partners these else, do. are a probably strict over -- we is there'll the I the with just very ever whole everybody community season. had it's yes, But think of in our compliance have a things We -- all we very are face doing terms but best obviously, remain to going be to that's that to covering like now our clear, local of most we've have alignment --

-- things think can't people I that there are and get I that deliver, certain they that. think we also can't we understand

been of think calling we're and with like our overwhelmed talk more little our in don't release about lot that the the to to that. that. -- are really have bit agents talk going center, fully to a of and the reservation have call I to things a questions infrastructure and support people trying things one as the We've mentioned we we

would we've that probably dealing just been good for the broadly feel again, address we're time on and seen. obviously that in One think and to really I biggest But guest couldn't this I -- we with. that given, service about environment the where that's the side we're challenge fix a fall. we that say, sit, going do speaking,

Operator

management concludes Thank to today's like it back question-and-answer I you. closing session. remarks. to This for turn would

Rob Katz

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

Operator

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

disconnect. now may You

Vail Resorts (MTN) 10 Dec 202021 Q1 Earnings call transcript