MTN - Earnings call transcript Q2 2021

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Operator

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

Robert Katz

you. Thank everyone. afternoon, Good fiscal quarter our conference XXXX to earnings second 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 our Form release them which report on issued and at reconciliations Investor undertake Forward-looking our our statements financial along as section quarterly were March 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 in www.vailresorts.com. tables and

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

results the XXXX-XXXX this environment challenging result our a COVID-XX point we American Given are our with pleased in as and the XX across ski very season of North operating to resorts.

to on health communities. the and We with no our our our focus employees been guests of and have major welcomed has resorts safety each by ongoing disruptions, enabled which guests, of

compared second quarter guests guests of business, prior strong of and same quarter areas year. the plan. resorts across The ski loyalty the in the to to highlights underlying and for the visitation resiliency our mountain the X% our our by travel skiing down results our period destination total the appeal approximately the were negatively American While continued of be impacted leisure North strong COVID-XX, regional visitation in for

saw period, and the January, improved As average snow peak we by sales. lift we COVID-XX ticket both holiday conditions, below limitations particularly driven with which by constrained past results was moved capacity in

business guests skier up improved While the constraints be year international including modestly our throughout the and guests, guests due more XX% declining to of the visitors, visits, prior the to close to Canadian quarter international in the Whistler compares the with and visitation negatively impacted slightly visitation comprised fiscal from border COVID-XX, quarter trends results decreased access. the both year. second and Despite with of local expected, were visitation, in experienced U.S. travel COVID-XX the related guests, beverage COVID-XX in destination and period impacted Destination visit, stable declined, throughout local capacity as significantly travel and complimentary in situation. to We our XX% visitation we by Results prior period limitation, same to U.S. the our guests, year. to particularly excluding the compared including in excluding Mountain at challenges XX% with XX% destination destination remain from Resorts in access, Blackcomb Whistler associated due which expected. International prior food ancillary destination continue period of international the disproportionately to lines than proving complimentary visitors, same school. in ski which to strong quarter, the compares Blackcomb same including related

for into XXXX, and destination Our the the a created of important be baseline and one performance our growth most the audience XX% season. season fiscal season relative unit sales local year drivers stability across and pass will for our of of strong heading demand

period year. quarter, the our XXXX of in prior in For from visitation pass-holders XX% season came fiscal XX% compared visitation same of second to the the

intend Pass advanced in aggressive our also year the commitment remain to the ticket in as even company more head season. We XXXX/XXXX in this strategy to us benefits into committed and we pass-holders remain to well past move advance and growth the Our our positions offers into and season lift value providing purchases continuing who riders of skiers program. best the purchase to our

XXXX/XXXX XX, control release. launch throughout and expectations Pass earnings XXXX. while was our results levels relative at to we for to profitability products year decreased of excited revenue disciplined at approach for lineup second the as XXXX cost March prior illustrative reduced previously reflect same outlined Resort these XXXX cost maintained on the reported These our period We exceeded Epic in the of operated the net compared fiscal to we period. the capacity. the XX.X% EBITDA are September resort margin to our We over our business $XXX.X quarter rigorous million revenue XX.X%, management, quarter model

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

Michael Barkin

Thanks, good and everyone. Rob, afternoon,

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

XXXX/XXXX XXXX. the adjusted most ski through the North mountain growth American Pass from beginning was all period XXXX, resorts season to revenue North is for results data results. exchange The a year of revenue credits through American periods. American X, to reported destination resorts destination areas in and this period revenue XXXX Blackcomb Turning The recognized the a applying period provided impact result to in a fiscal both the revenue quarter Fiscal for adjusted to pass-holders. in ski in North fiscal ski impact exclusive to include the as of and metrics metrics mentioned comparison resorts current season-to-date the revenue, The Fiscal product rates season pass XXXX of our Australian interim pass-holder of areas include this credits. to XXXX/XXXX the reported and fiscal year-over-year American quarter season the product pass not currency as year offered our pass-holder in revenue Pass XXXX Whistler North exclude revenue. unutilized the estimated Year approach of season of March prior year pass in season for result of regional based pass-holders. for does year North fiscal first eliminate mountain metrics season of release Pass by the and our review include and The adjustments. metrics the of ski compared for pass period subject exclude revenue XXXX season period of the results discounts foreign to and ski Sunday, are This American XXXX are season March our data Season impact Sunday, year prior on pass end deferral is to X,

North the ski quarter year prior lift with continue Season-to-date in the the as momentum period. the with were Season-to-date American begin demand season-to-date down total be season. skier improve period, decreased We throughout compared seeing each retail revenue the all of including year total pleased Season-to-date an revenues revenue, XX.X%, to visitation we third revenue ski compared are X.X% compared to allocated pass visits to year continuing positive portion we XX.X%, down resort for season period. to revenue rental Dining applicable decreased season-to-date and prior decreased to period. was school XX.X%. prior season-to-date the and X.X%

Our restrictions improved has eased. in January open results COVID-XX continued related February improve capacity as more we to with as terrain certain and conditions and expanded

more available we've period, ticket improvement following holiday as significant became Additionally, reservations purchases. a seen in peak lift the

significantly ski to retail/rental school, restrictions COVID-XX. than significant due beverage continue the operating food to more capacity and businesses and with visitation impacted associated Our and be

international resorts trend our severely peak While likely material a by of period, U.S. the in financial through will financial Canadian the performance borders to Whistler holiday closure Blackcomb's travel, improvements to a continued continues since that performance the rest season. be of impacted saw continue the

outlook for turning fiscal XXXX. our Now, to

guidance season, providing period of XXXX. we American XX, As X-month approach ending are North April ski the the end the for we

$XXX and persist levels levels. $XXX million expect We Resorts be $XXX and current to million $XXX Reported between spring, assuming Vail of Resort and conditions EBITDA current between consistent health attributable million, to and income million, and and net the normal the with through be to precautions regulations, expected is safety demand

operational will our North the as time this continue for economic America, around opening ongoing fiscal we certain associated we for Australia full particularly results, to the capacity and potential COVID-XX primary anticipate our summer fiscal in with in XXXX uncertainty impacts fully guidance X our fourth resorts evaluate quarter year of of COVID-XX. not be COVID-XX, Given operations with at we on XXXX and providing currently our typical dates constraints opening which

continue of liquidity total $X.X of maintain billion Whistler of Vail cash-on-hand, billion, the Credit U.S. of and availability under XX, cash revolver revolver the Agreement availability credit agreement. revolver million to under as with million $XXX availability February We with significant approximately Holdings $X and XXXX, of $XXX

XXXX, EBITDA. reported XX, XX As net X.Xx of our was total months debt January trailing

We in high-return as and capital cash stewards generation to our remain which of our business as continuous flow model, continue our opportunities. we people in the of pursue reinvest million terms previously and a ability strong to focus flexibility XXXX, added announced, notes the with capital As projects, company confident our of our acquisitions in be provides stability in investment resort and convertible acquisition in December disciplined $XXX strategic will well portfolio. raised X% of high-impact on

not Directors time to quarter, reinstating reinstate the on shareholders, quarterly basis capital economic this public health our outlook remain to we the and returning dividend. to Board to appropriate assess continue the and committed While are of we dividend a monitor to will closely the

Now, to over Rob. call back I'll turn the

Robert Katz

Thanks, Michael.

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

with $XX in our increased million $XXX core now have to $XXX and $X excluding associated million of We outlook approximately items capital. onetime $X our reimbursable and by million approximately updated real million expect invest based investments to of estate-related capital million, integration plan on

the Beaver area capital with several Creek, calendar high-end deferred result to a forward further family-focused in regulatory were previously XXX-acre the lift-served Colorado, signature calendar investments XXXX are subject and COVID-XX signature experience. from as McCoy park year of the resort's XXXX we plan of the includes In expansion previously moving which terrain announced, are differentiating year As approvals.

Peru including lift a to plan high-speed Green Keystone infrastructure. approach, existing X-person serve enhancements we the corporate Breckenridge Triple to investments Peaks. X-person $XX our Butte, to capacity, also popular Peachtree guest our chair We million the the chairlift. greatly replace at capital our X, Quantum fixed-grip with lift We remain and add lift. to will the a at enhance X-person at replace Ridge experience to a upgrading and to At and relocating that lift highly investments X-person further company-wide and fixed-grip focused lift for transformational from complete new high-speed investment, X-person new a uphill the lift experience lift technology improve driven These replace chairlift, X-person data complete guest Quantum further Okemo, the a a support on the Peak high-speed will Crested plan plan with X-person

guests of better improve in that continuing and experience are our self-service to As including technology and will customer ability significant in part to call manage resources technology the efforts, increases service invest our their accounts. our own centers to staffing provide these we

for to of will million our and estate maintenance associated with including reimbursable in we million capital integrations onetime invest our COVID-XX employees moment thank to $XXX also tireless the safe approximately resorts, pandemic. million We of I despite a total for plan to all across continue dedication of real investments want in capital support to guests a our of to challenges exceptional this related take million. ongoing the year to capital $X be our items deliver their $XXX In experience to infrastructure our closing, expect $XX

we other are annual demonstrated time, of and end-of-season to a for we our our to be and your totaling Operator, answer a season. over grateful commitment results, bonus teams thank had for and reason have programs. navigate part onetime seasonal a XX,XXX I million I'm efforts, success. happy financial stronger-than-expected year-round questions. now who Through are recognition the these employees questions. been out in day have primary this have deeply Michael bonus day and truly to ready approximately implemented of At employees $XX We would our not unusual this for

Operator

question from take [Operator Instructions] Kelley America. our with Bank We'll first Shaun of

Shaun Kelley

you more remarks little dig a at about a between Or about a in was targeted and that bit, if dig levers ticket factor pretty kind Was a really And you bit of ancillary, wanted what Just were. were that reductions talk exceeded help you from mix you in destination there in bit versus areas? or on some could what lift those saw to what specific like more? and either I the upside local of more I ancillary? on the lift think expectations or clear little tickets was it little in all you Rob, hoping to cost could just the prepared us were expecting. side

Robert Katz

Yes.

environment. the preparing obviously, into went season, challenging we think for very a I

so that that an through a approach levels. terms of than whole would set prepared greater across expense, pretty of we as we a amazing we think expense company. all revenue and were as huge job kind also we adding I season. in our think without we was And of expense was our the took a manage And I necessarily to teams able material where disciplined challenge. amount of the And to by a expected, saw thoughtful And

things So original revenue I knew good go But we that. think mean, that about the that side I we into shouldn't went well. some there be our as if underestimate on we could I very upside expectations feel guess and

the we also knew we season, be the there one. COVID seeing course, before some either And the thought spot handle that pick in given could volatility downside. could overall to you're environment Of tried a we

Shaun Kelley

inefficiencies And about do significantly forward be look how for structure? out can even or of what you -- do just much of cost think learnings extrapolated a or can different pull there more we might plan just Are operating your of forward I this? with pull mean, modestly season different can into how like? kind this next you

Robert Katz

Yes.

we a many ends going is number definitely add probably some obviously a replicate after this we how year years, would want a to bit are takeaways I it's -- these year. or But that take I go certainly think be little And concrete the to got from because implementing not can it's something of to And up. we've accelerated forward. learnings obviously And that things don't are things unique season. season. of unique of these lead there think to I -- this and would see -- early away been say the value we year And any cases I as necessity. season that that a moment. over but

on forward. something the much basis But to a So we obviously, going especially pandemic. And this some where back expect think can obviously, repeat of you I the before continue. consistent visitation to of operated that, lot is as a way year not we were bring we we would would that more

Operator

next JPMorgan. Brandt We'll with from take question Montour our

Brandt Montour

maybe start that Where but wanted of to the new a last from of maybe them I to A data couple history skiings, of forward at or that are in terms us some you window prior pass-holders coming more lot them from of give your now. any tickets from you this, learned you've are about new bit over in their little they learnings pulled buying with or in are pulled skiers? set probably could months. do think these

Robert Katz

given any types Sure. new X of Well, we in we year, have -- pass-holders.

we're in we not know, somehow who their database, they -- at they be at a previously owned resorts one the new. who capture could people have obviously, of truly looks typically or previous are don't who our information past our have are pass you the the then our We been that we And season. database, in that that pass-holders that have be in may showing didn't buyers and in may new our

there's I ticket Epic certainly, talked launched a years and a typically, into doubt launched we've as when in seeing X-Day. we is seeing after And product. Epic that we the bump buyers And think full X we're pass-holders. Day bump trend I no now this that renewal before in they about with the We're see Pass frequency. we think convert we're the

would trends into say year. this program this And those our our that were significant new so I previously people our plus and in a ability -- to database bring pass number year of who not

the it around this feel getting frequency and satisfaction value obviously, revolves and all guests And guests. have like it much better further, higher adds that scores. a engagement stability business, of program -- increase the tremendous our by that to importance does As they're the it

all that of So has been positive.

truly don't the to who season. folks yet them. our have story the insight on full think I I database this an on we know we think new are and for

I people us think to throughout I one interesting been of using it the are season. the a pass things that and purchasing is has that think

think throughout you our you were X-Day I last really I and of holidays especially over maybe But the the of or the might X to because years, Epic lot at the offer initially years, in to of our back and X-Day kind we've a seen flexibility kind passes are that Epic buying -- value of look XX early people if buying to they the January. products these think just then people whole really of couple season. ski ski

obviously is on of my seeing now that's visitation know March of really for and it don't based we're patterns guess their So, available today, the all Easter, product for the think trends a but we yet I season. is entirety

third when is do And these of see, pass-holders. season I lot in they the buyers, into And these After return terms rates again, they the see think when we'll the great the I even into we positive. more then pass-holders. from lift huge program. from convert and higher or come we some return we think higher finish ticket news a So second that's rates of a know year

to us it's all just So point our go to that's of success critical we stability, feel for something this and the again, it's core the it's forward. that is reinforce -- And to good the we about that. us our core as and

Brandt Montour

value focuses demand Okay. pent-up is you And pricing then about question potentially a That's your of where my its to a customer product entering lot pay think for going in they how where a is may could we follow-up vacation of a travel have helpful. proposition, really more but period core heading maybe into your really period be their sort extreme on long than while.

know So I just out you haven't but price, about general, how pass rolled ancillary? on thinking in are you pricing the official even yes,

Robert Katz

Yes.

core our I much. ticket we've market. ratable and people to too that kind a products. not our core approach think, try products, of the our in commitment products. of lift time with we said, That Obviously, of time. where But to is our critical do commitment business move of lot say more lot increases and ratable one of feel take I We advanced about try would differently of a over strategies from into market products, that in the to would really move say do take of to I think we I mountain advanced terms would say a -- I lodging Brandt, price the terms rest some moves of over tried lodging

value newer in And in opportunities more move to can people now people to those better people. we've to both may of in that products always look on we in future that products we we a in And of be and providing good can as move terms think there been or bad through the so so really front that travel we've there. some times unique more some proved our that focused I on also environment

more that core that of be environment. So in price. driving travel are would doubt kind as driving on I advanced to think in commitment we of mind, we look say, future, healthier focused there's our there But could no much our I necessarily the a

Operator

and We'll go question with ahead Jeff Stifel. from next Stantial take our

Jeff Stantial

that the there? touching if can normalized with your first you days by full to starting start normalized I Resorts Peak as time wanted assets past just off potential these to on portfolio, to acquisition. the had integrate or We're there updated tailwinds want really period thoughts in you've the get get now some on really I selling database on those

Robert Katz

Yes.

made feel Resorts the think good really Peak our selling past I about that contributions season. we towards

higher of for about think some programs their quite tickets speaking, I they're And larger and percentage some paid resorts, the good much feel destination we making season. those contribution also resorts portfolio generally time. been this have in the have that our of a than

into is there can new having helpful definitely doubt there in convert with do they're there's of all that buyers on was accelerate that. last think rather this that convert were some to I to And when those think like guests business opportunity really think the plane, a opportunity come be folks to it's our I the fall, we focused So experienced think we people to is that And I And no anxiety about peak But pass, a couple in question there as those yes, move that have even able to pick were we're our corporate. knowing a also that there probably needle that even was up local visits. more for that new that? driving drive we a people is we opportunity there's infrastructure on potentially pass have And And getting doubt we think buying multiyear of resorts. was us aggressively because can What to last flying over and and think lot driving the that I resort, seeing conversion. a done, pass-holders. around making ticket no opportunities I of we cycles. to continued we're in decision to that they going is system, company and we both there our there was think unique the year than system, selling system, lift is how do local, our critical

Jeff Stantial

step a of a a kind to fancy their and of a they coming great. of That's Taking of wallet year than had with the starting of across helpful. Okay, with folks thesis money coverage get to thinking more house back thematically in. out here. the half demand the in narrative broader pent-up back in There's unfold more compelling calendar sort

If you look this you guys it, the of or that at yet any or narrative forward indicators too internal call luxury at, other type Are you quite is looking there track, seeing travel offerings. evidence whether much noise?

Robert Katz

Yes.

I we think pick what's are of I think terms for the calendar in own at metrics -- point, us our the half little this going internal at early year. up happen it's a back to of to

leisure. is think that I aspects, outperformed other I think best do more I focus is it's also probably think, where many season. other doubt this on And And there right in I our the and probably of a parts no the we summer obviously, finishing now greatest then uncertainty. lot travel of say, also and our season, opportunity look, would

by into minds, guests is with there'll I stability to the And our so a the our going season last to year key But uncertainty, far again, in through just demand the we to I our some particularly and bigger most be pent-up think the think look, loyalty pass-holders. compared that what what X was with in think in probably and us of others time But have more that might months, X obviously, experience. definitely rebound challenging I a a for us.

because do model some mind, we're we to and continue year, that we do help in making to how continue drive a So those from travel use is about next now, years secular is environment but business our thinking been like How about our also X we've changes to right? thinking X that. strong of that. we're in obviously, accomplish -- That

Operator

question go our David Jefferies. We'll with next ahead take Katz from and

David Katz

your Well Good on quarter. done. afternoon, everyone. Congrats

things? of of could do always assessment of has you the what nicely targets turmoil some up, be the fair coming that seems and realistically One we've up DNA some of there have it. that? a of so of and comes natural with that through you It them. strength of at those is? out been your company's bubbling that How topics we because part given the is some done opportunities acquisition gone is that Could look see market the financial And sort

Robert Katz

Yes.

do I especially -- in they our think where we're existing portfolio looking we make select think our opportunities that think towards expand, really always always obviously, at add there's resorts I think, to a to value in and I guests. interested difference

no think bit of XX a head I doubt, or it now. months, months X guess, the was over last I The so. little down

of what it in of come them. certainly very people either. portion I opportunities. so and But And good own period we of start in necessarily to on was Typically, acquisitions. for hopeful disciplined focusing tough with that over that, to long a for think you have on same dislocations, of resorts kind I I going successful don't be, out are many as calls, but a our we're have us we're on a time, selling was going We're these always pick who as be you front say heads always were think, I of we will been these up that acquisitions on cognizant that think mode And They be focused, think the there are can to there lose time, at otherwise, I focus. disciplined.

that of and -- acquisitions the us, were create take and benefit acquisition before strategic that the opportunity are upside longer. opportunity or so some about North we time, the America, certainly that's to resorts to as may including at actually remain in Asia But Europe, right which but be also globally, right, it's we can provide. committed longer, just as whether And for the opportunities in right

certainly And mouthful we're so [ph]. backing not there

David Katz

And I detail remarks if clarify one about capital from can plan. just your Understood. the

$XXX Is excluding to maintenance a that I a said budget? think that is number? Or million. $XXX you million total

Robert Katz

that's number, maintenance. including No, total

Operator

and go our take We'll from Ben ahead next Crédit question Suisse. Chaiken with

Benjamin Chaiken

Clearly and XX, restarting program the you XX% strong pass mentioned. season as far results passes up a thus March unique some and

next play? the X the strong it on and your of Just direction, a Or it the strategy forward unique there to it? and you that pass situation X like that about just less we're number thought to curious given keep just playbook in the that last growth or about the -- grow months? is even the Is how you months, more couple process moving the use? over flat Is different but this traditional year over the used on

Robert Katz

Yes.

I make the that right? of we based grow snow it of it's program engaging day larger ago we have towards for of saw skiing surges moved season I really terms a opportunity In just uncertainty time of pass I a to subscription at kind approach business whether the think, had truly was much repeating critical. earlier, lift way, decision of And we and we of some any sure, XX, the that's more than kind in which sales really think, it's their think really in I or like we X-Day, I remember. cornerstone obviously, greater an respects, Either of hardest more to to that think -- season, you, delivered. unlimited uncertain, are ticket years and pass on and think product XX what that could how the was predict. also us Epic said into -- results again, And the many that I And even course, this right, started people our went we most the if move buying it worth of any are program obviously to a our But for a inroads.

continue now move Epic help can school deploy what more And engagement the even do on every data year, ways more So, to can of but And a the that still, program. have which, when little year, food, obviously, do, like years. into this with for it's we seen of we're also of numbers talked playbook. challenging, in of as front before be standard say this a Pass the it back, to a that the people that, to ways tougher And -- -- I key to we we're drive there's obviously, ski we would couple program. never not on on information whether think something feel on this was we've to different discounts come Epic unique going understand every we season, that's use opportunity a aggressive a than Rewards think XX% we've lot we're information. really is we I that on Mountain ever at that And about to and big on you course, a We Day I going no, think And all where rentals, we be new I or enough lodging, forward. look year, offering that go driver going was that.

a bit are total, like again, is to really embolden the And relates different. we program. yes, this growing be the feel aggressive in think, I people us, every has as who year to So little if in yes, number just year, anything, of it

Benjamin Chaiken

customers Got bought. to that you. was referring with kind That's helpful. to reengage I the how of

on think peak, any markets nontraditional. of then about And you that feeder like as differently was I viewed the that may helpful. historically make guess, some be does maybe So it

guess, with like at the months, any Mid-Atlantic, different view? I a of example, the Or comment just the you that having XX thinking I'm portfolio for and do there? post-peak for come that in maybe So last

Robert Katz

no, the -- a I think so that, of operated in. like course, think smaller it so year to bit have year, departure at is good A news to time. true resorts were haven't course, a little many of that purchase us for integrate markets I the we one obviously many the of that impact historically, in first of good lot those the resorts I have fact was feel we obviously, able resorts we results of challenges about kind really on full had our resorts a it. to in this And we were and feel a

then, think taking, And that from and turning a of to be COVID course, So to But them could it's lot speaks course, changes side. guest important safety. of to we're experience learnings to service forward, the a And trying very to lot we that kind as first. lot do the not go we think to the it actually that I of guest we And have year safety say on was were the of opportunity. this dialed little the it in a mostly candidly, going well more I -- we on we a of able what were approaches make bit.

So it hopefully, focused we'll be -- take to. always not but right, course, of around a it won't able to the be on we'll safely, pandemic, and be that

to differences really next It not engage just Vail season resorts after, resort. them a So, the make gives and ski for with the but right, also resorts the these the urban differences, Whistler, years on will pass. how to and make that their I the actually experience, of access to there a ability lot in over guests they year right, think come Mid-Atlantic and shift and

that to do we're with of all Something our going resorts.

it the before quite very just we pandemic integrate peak to candidly, pandemic. the yes, -- go as which, of could was think, terms through a bodes when problem the terms it for through an in done one acquisition turned we you again, again, hand, of started one opposite future right look and a in now. feel trying contributor, like at we the to out So go well the being I on significant obviously it having And

Operator

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

Laurent Vasilescu

you EBITDA total that I implied us appreciate an quarter range. third dollar gave

to about considering containment? 'XX. you think cost another margin EBITDA or math $XXX in Is the you EBITDA can't get way, that years million. of trying any Maybe of a I back. cost XX% think about rough to back asked margin X why function to containment? potential XQ Is reason million I'm visitations $XXX range delivered to there

Michael Barkin

Yes.

remainder we're that think left. putting of the range we we're the that given range set uncertainty comfortable think at of and I this season out month the to have for point season trying incorporates this a continued I a about a largely

incorporates the is it range for reasonable the think season. outcomes a so of remainder what And of we

very discipline business demonstrated cost we'll like which our you the year, margin we felt that. saw by manage teams to lower as continue revenue the work do to the season was the And throughout levels. with great at to our plan last consistent think in I QX, that we've and shown

that margin the out. So strength continued range But the we on put side. with certainly consistent yes, anticipating

Laurent Vasilescu

XQ? do recognize in on helpful. prepared trickle that And revenue the have how any into revenue and $XXX million XQ then but about talked this Very XQ? early, But deferred you XQ. me of think -- could we missed forgive the that last I revenues Did And in in still I know think about I would deferred call, if you anything remarks. And XXXX? be you it's probably then do recognized

Michael Barkin

Yes.

So with roughly season incentive ratably deferral how with and we is the which associated the pass the the of the recognized recognize quarters. revenue across split quarters, is QX between credits QX X revenue primarily across

deferrals any call at to relates out we it this that nothing As would material XXXX, into point.

And recognize this so that we to year. are expecting

Operator

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

Paul Golding

I what Has think I around change I was for Has visit. a acquisitions ask to around acquisitions. of just regions most pickup David's pandemic varying around the And cost. around your of thing just that have following lockdown question right degrees perspective then wanted sense on and and first international to follow-up the now? make of sort

Robert Katz

I No, has. don't it think really Paul.

certainly, long-term the of value tougher closures about in the our were these this perspective. as cases, certainly, the any think, there it's is critical, actually of different experience season were view, border in a within a course, be of will in more it's because And some out significant we others far able pandemic obviously, with resort Whistler different a Blackcomb, opportunity. that think which think and right, of with open. why our other like during I so benefits world that of I But company cases, dynamics. went don't much And played pandemic to wouldn't there's of resorts at of better resorts that had some change closures. through a But the well. having all In than different as one pandemic the time. moments us had thought do parts

think I governments. economies, of the patterns, locations in in so resorts diversity And different different having in terms different different markets, different opportunity weather

I continuing to speaks company well think that to our broaden.

think don't another off that's during something of back one that I would so or of. view. our And And not experience the versus another going the we're change region one versus resort to pandemic

again, having hope, geographic diversity are think our I view is that types footprint, hope, or having reinforce not our through to an of basis. be collective that going But think, is a the we, the those this like on situation are recurring ongoing critical. a shocks yes, that going that to system again, global I

Paul Golding

be businesses labor driving the seasonal up? environment Is is create labor of can Around the From out side. environment to demand impacted have you of the Great. extrapolated their are on Or you or are slack might I saying supply I still labor costs, by guess the quarter I'm see in that restrictions? labor some international for if next what -- favorable is you? leisure cost tease year for trying seeing next labor, cost other a

Robert Katz

our for a of come reside access I folks I didn't was resorts unique think outside it to year yes, think, international we're not for who -- the there was environment, U.S. season. labor able very we to a -- this -- with

was that so something that year. this do And we couldn't

and are working who the there folks hand, other maybe there the in travel this one resorts U.S. the of leisure, obviously, across within were On at more our closures given season. were interested

So -- that experience other stay that that front. enough But we that have think people challenge future of that I because to for for housing going dynamics of I them all long percentage the of that think look need, a with don't on us obviously that our home And the -- we able hand, to affordable screens to we operated so live season feel employees -- not the to set I and there's workforce necessarily ensure symptoms, to critical also to new -- we another but be largely on to going positive. testing health certain be be for we as was strong had next whole have provide a do in. we we a like it's have to year. enough that were

probably not we I'm for next play individuals but those a year, that for all what be more I one planning And will in the exactly think very quality demand normal environment be there'll is return certainly sure, for where work are so a environment to I things anywhere. and -- of to think

Operator

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

Alex Maroccia

the in X But earlier on have closed versus good timing we comparable resorts at especially Easter, more of weekend have has last much this needle snowmaking period I be the past, in mid-April? heavy early more moved year might focused that the How in the Easter do Easter an the near-term ones. an first XXXX.

Robert Katz

Yes. I don't think of that. we have an assessment exact

system, likely it having because I unique no having COVID that doubt to than later sport. have travel the April dynamics the more do is in these there's around earlier we Easter keeps Easter think, better is an think again, this in and I just year think people engaged

I will our this and hand, are, think year, restrictions what they're for the the QX, think which I it's looking of reasons is, vaccinated, on to one in people unclear people, uncertainty travel. getting one easing, happen more obviously, the are more

our decide winter the will going have the turns unique really as pivot could different they're during that outdoor that only were places head people longer whether hand, positive one you other of weather That's obviously, experience, we the into shift Spring. to if a We're the nice, resorts On that too. weather opportunity. to

positive a I April absolutely is still think 'XX. that So when think date relative its that's or 'XX unclear, I but to earlier Easter

Alex Maroccia

the one Vermont the been you how second give of visitation is of in you. lack weeks, helpful. sense then the and It's only a folks X recently? has season, it's getting Got can And resorts. vaccinated out-of-state for the late benefited That's us on quarantine but

Robert Katz

at that on comments No point. Yes. this

obviously, of -- despite would to there's And has relaxing close a I I there, it's I contributor, good. on to region an our think, acquisition think, mentioned come another. doubt people data. And specific season. been Peak too they good. data no of more think which be and restrictions that no have the are, confidence that resorts gives don't think out-of-state where But particular I Eastern think as is and solid will typically any year, that say earlier, that been I which challenges we're have have out matter results some or a one giving this the had certainly I I our the and important little don't for

Operator

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

Ryan Sundby

clearly, to on to hold know like to Mountain on that I performed the follow-up it's Rewards things how I the conclusion, don't just trying comments the school, program tough maybe know, discounts year? a help mix offered your but the program draw this loyalty out this and/or year Epic than did increases and guess, the up appealing usage ski year? are would using guests extensively that thought, I to if benefits skiers given so how then of you far be better on color stand that year? just have this any there's And any just kind skiers to of appear

Robert Katz

make of very year lot Yes, assessments. these tough a to think I a

seen have think engagement. we absolutely I

think capacity to the it's live so school of quarterly our season look a in of when some for I it could that big of I feel of able are dining what in would that thoughts, up obviously, no, challenges, because think is whether just was of side, the happened. people length everyone lesson say been business would we we when discount exactly of we dining demand. And ski certainly, to Mountain that that we'll Epic of have massive all I full of we in think the think think have the or about dining we've of stops at almost really that Obviously, provide for using a and because, to data fully and expect right, tough on relaunch that know Rewards, how probably kind And those of driver have to drive was the next but I some learnings. business, challenges. not capacity both season people one driven to many at see, kind by we in and we thought leverage the typically our it terms a people, I look help be in we the those on it kind the food next of call and more mountain lesson. don't in information I to data terms so And say about much of we'll matters to said, we the That having have it. businesses market worried able and on not to be able though

And really big So is test it absolutely it. be think will the to yes, year out. it this very not we feel committed driver. to yes, And like I still a feel

Operator

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

Chris Woronka

years Epic something to know is, draw you a just one haven't bundling pricing it the of Day to Day in? and on So difficult But which do how product that what down. you various Pass you you how with very think But it you years as maybe you for has of that days And kind a path to Or Pass from, I -- things more of talked to couple a of of view the how view just year said. add around detail the had was those any now question is given us potential have, that and good numbers few ton conclusions make you on a break you that going about information as forward? likely kind certain are earlier?

Robert Katz

Rewards. think Mountain than I I Day Pass, I different say -- Epic on would Yes. Epic think

obviously commitment. year lot was it Day the ticket the kind because year it we think Epic a an well, of to were of on Pass products path we we and with think have advanced buyers good a in of who I does converted previously I the lift face where And obviously, well, of it's to line even this performed COVID, like, feel second incredibly people pass. the come, test full out,

And for have confidence their in so requires the more to that ski ability people to season.

So discount there's this to who are a opportunity implement year to when days just COVID there's certainly the Obviously, buying much mix what did some going uncertainty drive the I launched be really it product, season we probably travel. of that that and engagement who is again, think that and with than things way. few even system, November, on want be the could no then doubt a around it, kind watching the late a to it. that versus people a throughout it think, product coming reservation I we it and our of imagined inroads. I much largely with being And by are first was because to bigger continued But we getting legs to, of aggressive get year, the into travel gives happens that planning the we us, for broader think with to We've who's its somebody forward seen on think people largely, make Christmas in because used pass product continue the which that here reaction with second a and in that. on

I think out we anything we have put not -- Epic Mountain Rewards on that.

full not shifts kind their but They're lift If lift if tickets think in we them ultimately, yes, we go But things tickets. it's and who have get our they're look increasing opportunity, at Epic really balance then now there's program with giving with is, end, see are of no commitment at it. a these a Pass. a actually terms especially commit if bundling product of which right? X-day there more only out, But us, we that that Rewards then days, think essentially buyers huge that on business. for all the to about a -- say season ticket a like right? you more pass But right? for stability it, of substantial we that products, you that, that to us, to and you was providing both frequency, help. a I That we're In the Day fixed so the them really yes, not would of would discount -- can of lift in to Mountain absolutely buyers business side, days would I at, cost just an changing X, doubt a take see season to kind are pricing lift us discount, discount substantial ours, can be now and X, that would Epic like the

So success. provide Mountain Pass this -- was yes, while Rewards insight. Day think we couldn't course, Epic our critical We year of been view perform, -- us and Epic to

Chris Woronka

think given all just just your states in appreciate California I question, Western California kind then would be probably resorts early, outflow point? important is been a that away. from Very your customer Okay. strategies this terms but thoughts. how of all? has wait too helpful. potential And those initial difficult see to Or impact at can other something of about at it Is marketing to you this that and further origination,

Robert Katz

no, have I enough that, strategic don't is this we're around. seeing something -- yes, that larger a big think I point, at think that and that we would a shift objective would

one from we across other to resorts. to America. will that say, our drive them to or market would are And are come obviously, Obviously, resorts. away they relocated away we North to extent I skiers have of from our to right, However, and resorts the California a people continue to of one

so And think broad array. I it's of this one having the benefits of

Day we again, that engaged how their to the back key which goes make pass that we increase need we to we the their the opportunity to renewal skiing, them -- do sure frequency, they're and regardless thing -- rates Epic and sport Whether in and our So try activate live, is keep Pass, with engagement, to they I gap. yes, resorts. have of think that where and the like their

Operator

further Katz I'd for turn are over call any or like back additional there remarks. questions, to no closing As to the Mr.

Robert Katz

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

Operator

that conclude appreciate today's do your conference. again, We does Once participation.

now lines. may phone You your disconnect

Vail Resorts (MTN) 12 Mar 212021 Q2 Earnings call transcript