MTN - Earnings call transcript Q3 2021

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Operator

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

Rob Katz

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

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

we and forward-looking actual vary you this Before are filings, subject on remind and information number and described we during of materially. in a provided SEC risks certain that assumptions may call as that future statements some include results to are uncertainties based may begin, our

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

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

continued with results. ticket the the relative improve to lift for overall operating Given Utah American XXXX North quarter of a as to Results XXXX, ski the stronger full at for XXXX our and the result including the of results resorts, very destination quarter repurchases are as season. environment visitation COVID-XX, we result second continued improved challenging a pleased season progressed, primarily and our fiscal Colorado as

X% Whistler to the closure quarter fiscal government XXXX. be performance quarter international quarter XX, from Blackcomb's was further impacted to guests Columbia. was regional negatively Blackcomb's U.S. by compared mountain Canadian of to down and health following U.S., third areas expected of at the March continued impacted ski XXXX. a nearly XXXX, for the for our XX% visitation total border quarter the a third Whistler on resort the of order continued third third due of earlier to the Resorts' the issued the the destination British closing Peak Excluding and fiscal only declined than total including visitation provincial by guests, resorts to

revenue continue ancillary reduced be ancillary throughout quarter, significantly controls our visitation maintained and to cost beverage capacity. the and school. of particularly by quarter and operating business We constraints COVID-XX-related our disciplined and of negatively lines improved and continue trends business impacted and While in food at throughout the ski limitations, lines capacity

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

Michael Barkin

afternoon, everyone. Rob, Thanks, and good

As ski for Rob mentioned, we're very the XXXX and for pleased results season. North XXXX, full American with our overall the quarter

and the reminder, a season we As fiscal XXXX. of rental a the properties quarter XXXX for results the North XXXX. a result closure ski operations ski retail early areas, XXXX our lodging These year, announced beginning as actions of the impact stores our third COVID-XX on of the in XX, pandemic prior March of significant adverse for American on had

the sales resorts. to North third the continued from offered million season, third was the as the of of deferral income or costs third XX.X%. the American million to to prior primarily approximately the reported product XXXX-XXXX of EBITDA American approach at lines to of to and ongoing and results pass related net was our product and demand company fiscal or our per for third XXXX for compares cost restrictions for growth Resorts compared prior impact year. attributable XXXX-XXXX year million prior due reflect ski prior share as year. same full These which both fiscal impact increase results and EBITDA fiscal North pandemic of XX%, our as fiscal for a the share non-pass of credits including to pass $X.XX business the $XXX.X relative season $XXX.X as third period particularly higher Net in resulting lift revenue million Resort Colorado holders periods. the attributable million to deferral XXXX $X.X resort XXXX. in Resorts revenue $XXX.X for of diluted the XXXX in proportion current The the of improved to third visitation of in quarter $XXX.X period diluted margin to of operations million well of our was ancillary of an strong per have Additionally, passover limitations the and to with as $X.XX income the COVID-XX adverse destination reported in due $XXX.X strong to compared a fiscal pass exceeding quarter quarter, Utah of the Vail on Resort-reported U.S. was result on quarter quarter quarter XX.X% ski operating rigorous the management the well XXXX EBITDA the fiscal year to Vail

for expected $XX income $XXX and million million outlook be Resorts, attributable for fiscal to our fiscal Vail XXXX. between to Net turning XXXX. to Now Inc. is

and guidance XX.X% resort-reported expect EBITDA the margin will midpoint We XXXX using expect fiscal XXXX the range. approximately the $XXX be of between will million fiscal the for and million, for be we EBITDA $XXX resort-reported

no potential season, in no the Australia. current impact there with lockdowns operational continue. specifically guidance and or from protocols North operations normal is weather associated the assumes American our disruptions with throughout restrictions. summer East Australia's trends are season Victoria, COVID-XX-related lockdowns. demand and or potential from conditions capacity demand shutdowns open and aligned assumes guidance current and health We all of The experienced Current and safety Our impact

significant maintain We continue liquidity. to

Credit billion, Whistler Agreement. U.S. the and cash million Holdings on availability $XXX was million the $X.X total availability XXXX, Our under XX, April availability as Vail credit hand, revolver agreement of revolver billion $XXX cash of of revolver approximately with of and under $X

We reported a April our of in and As and model, strategic trailing to people continue in capital business acquisition generation was on flow of projects, our investment XX, and high-return remain debt focus our opportunities. cash X.Xx the capital strong net our of stability with be months stewards will continuous XXXX, disciplined confident XX we EBITDA. total

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

Rob Katz

units increased products, date by in the with Michael. for season. showing product X, to prices any pass June to all enhanced June June sales our very X, trends. year-over-year XXXX-XXXX for as in Pass not between the deadlines XX% strong the pleased in an currency season Thanks, impact the X, through American the North making guests the exchange the enthusiasm for lack North Blackcomb. in proposition a sales the sales season dollar approximately of COVID-XX, to driven eliminate through the the to pass through spring product in performance ski pass part comparison XXXX-XXXX season sales results results ski significantly XXXX-XXXX by North of of reduction American $X.XX result We're to in our upcoming the pass Resorts' and very XXXX, to sales pass Peak applying the season XXXX, sales season compared with of adjusted pass both increased XXXX for of and Compared periods X, for and product sales XX% are ski XXXX, for as rate June due spring sales relevant the dollars. U.S. Whistler to foreign XXXX, both XX% Canadian upcoming for include periods in dollar sales for value XXXX for American XXXX-XXXX

we in for in XXXX, X, pass units season-to-date Relative dollars. XXXX, season-to-date, sales product season compared the purchase a compared the spend through pass holders unit pricing to products. propensity sale pass price December this decrease pass a pass includes to holders, new our our pass this for believe as -- selling to markets, period we XX% particularly the approximately XX% stronger destination strong our and that December our guests discount previously to XXXX, lower growth XXXX, highlights year. the through season We price full our to and the new did reminder, of are approximately passes pass how in had XX% previous higher-valued X, in increased products and which to the growth markets. even the or relative unit the to very and not database. a product X, guests growth selling completely Northeast lift our who unit in full also local in saw ended June June saw sales pass growth the has XXXX-XXXX buy pass As We sales implemented Compared our to across season increased through of tickets strong season new in purchased with X, as renewing holders strongest portion effective very decreased XX% database, the

pass the and incremental increased trade higher We expected in higher-value reduction renewal network. drive would our to rates, result to passes that up price guests

which We are supports price expectations the results in guest encouraged long-term exceeded sales XX% of to of the as pass our we evident results for the year increasing is expected our lifetime that each the The next expected value. believe well of season-to-date benefits as pass reduction. these results, trends original impact

pass selling yet of However, through season fall. still not the is if we our us, the ahead trends clear majority of it these will continue have and

North will XXXX including sales September to XXXX-XXXX the pass our in more American information release. results pass to about for season ski We comparisons our provide earnings results, sales

compared Hotham we up which sales ongoing April In June to as ends very XX% units representing significant following XXXX, growth are in in approximately addition, XXXX. X, the XX, June the XXXX, the June X, are Australia on comparable Epic through Falls pleased and Creek that pass, through of acquisition of period XXXX,

recent Victoria, Australia, impacts on the pass will we Given lockdowns any Australia Epic the monitoring be sales. COVID-XX-related in

our and in Our reinvesting commitment to the of remains our guest one priorities. resorts highest experience

we several this terrain with family in the Creek, XXX-acre will experience. subject McCoy the summer be area further regulatory moving signature Colorado, resort's expansion investments approvals. completing lift-served of Park to differentiating As fall, focused In signature are previously we high-end Beaver forward a announced and

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

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

continue also resorts. maintenance to to our support ongoing will infrastructure invest We capital across in

per of which and we operating our a portion we As material our carry be investment will into it expense this California wages of we be success, know dynamics. will minimum is. will will while discretionary entry this entry This local be believe we $XX in talent critical that will set based that year, offset other we the year, market Washington upon raising savings staffing year for in our which And their announced largest always our increases by to resorts, in next next head be also Eastern year. and making be wages Colorado, will from into we have hour Utah, as

guests like tireless for As to questions. and we the North and and ski I incredible dedication our exceptional to transition now full American be to COVID-XX despite thank I Operator, your employees pandemic. deeply I'm are for their summer to would safe all a throughout North we demonstrate our challenges answer our the a season, unprecedented experience delivering of to American our take to questions. during ready Michael at resorts, operations teams XXXX/XXXX circumstances. to these passion of would for commitment time, happy At the continue grateful this moment

Operator

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

Shaun Kelley

a product I obviously, and little versus of could that? more pass lines bit are that you mix, just to sales. there Rob, that data points that you gap sort of statistic talk bit really kind of XX%, see. if that of up wanted a interesting. with we meaning couple the the a a to start start sort a in explain down effective of help there how about XX% I on, wanted Or were that there little sort the Is of like-for-like could in the clearly? price you difference gave, the just

Rob Katz

Yes. up up EPP just, you XX%, right, take think, the up down units if XX%, revenue with really our I you then do you an take It's when wind right, and XX%. percentage,

kind higher-priced the So of that's is was like, we which we the And trade little up to what trading bit products. a think we saw up. is math that what a that I I saw people what something material say the call, would But from how net -- did works. in products I that would lower-priced increase expect,

people the we product trade year, one to a material up with year, saw who which product number, or from product XX% trade this one they reduction renew. a of from in pass lower-priced that and ameliorated pass that every have down another and that. price pass So revenue And to as kind we does increase decline, surprise the net the obviously significantly not us,

Shaun Kelley

the it. here. from sort just other Got is season question the And of balance cadence the have on I the of

September, it's you help takes what's about we in us have the loaded. period the and early but you little kind Sometimes some of a of has you set puts bit the the coming products, of through that some back-half things a remaining. on new introduction that and when very had little obviously that think give of think last deadline bigger you made color, of Could just more the sort

in in left? should pass in just Or actually you. the the Just of products terms the you kind to numbers on like day remark ahead Is specifically, is of historic comment across selling literally, of sort the of that of majority relative And the days these then be that your the investors out than prepared to mix, how more there's the your season? majority of for remainder your of majority sell period? the a season balance of

Rob Katz

Yes.

than very yes, both I counted potentially, is, we exactly it's But before. haven't but more yes, on, think focused actually, sales I Day -- we it's but Memorial it's historically, definitely today, do I think pass year, I season, wasn't balance -- more Day would in what significant or the last Day Labor of September though, but Labor it the say, on obviously, had a deadline. past

earnings year, I September be think when largely release, will comped this year. in we last we results from report our

to Now I last credits in those right, had we which September, issued think driver, last that sales year, the of certainly, another people expired. that was year we

significant which or many the to was as there were renewing year. September. sales, a be a you as last if pass renew spring this gave September, you last And that not a pass probably you reason price holder, there'll a increase So for had people, but were huge benefits, spring there credit

end exactly that's get September. we So comp to when that the even of not be will something

of that buy lot see end Epic the Day as a typically Epic we've products to Day new the that last predominant are I new season yes, that new well, season, the did We the we of think, Epic second selling information in be of limited half talked of the do year, at -- out, in I option that we've the year, we Day the about think if Pass. put for you fall. the These the benefit the especially folks And Pass. to Pass. in order business more definitely tend resort on think,

some And may reduction both think head some to as is, the the spring. only trends selling the into even fall. thing pulled there of an the So offers into that won't again, or either know obviously, fair I the amount we season. fall, ways are through new opportunity think rest spring, think go until we get but enthusiasm a renewers the much the we And maybe how actually that sales the other price as created people we I I go that of have in of

Operator

take next Chaiken We'll question from Suisse. with Credit our Ben

Ben Chaiken

On highlighting? would way of this past, well. returning the in of view as from M&A, customers, a your new Does after at growth look Obviously, -- getting it that's saw guess, worth not I geographies lot any data you recent so guys to pass like just from presumably in whether inform do M&A you but compelling of some outside like most are the want any or less or are more there not, more that of any XX units? a geographies

Rob Katz

results we open as sales. dynamics then past bringing to typically, done. acquisitions that, very where pass -- we have we pass we we for we that think, on date, it's we that in there. sales. that obviously, M&A of right? approach the when resort, can of knowing support part, a But grow I around And having picking the most I think markets, market think we've we're think seen you like that's yes, clearly gleaned our knowing In pretty we're before because also I from resort's new that impact local the believe feel up can But and when done I an our we've mentioned, on selectively, the markets we've the by historical top

about impact, think that means that would any don't about difference than So but buy we we're necessarily it. I resort pretty thoughtful has other that

value, remain do our absolutely really remains only strategy we and to which for we're but just looking that date, that opportunities will different I to we would had. things same, I difference. a really we've add think think, we in that is So markets And disciplined make aggressively M&A approach think our are the say that reconfirm results will going that to

Ben Chaiken

you. Got

felt lot passes like that on a That's was strength it if Northeast. of I the even where like with I made there that's was didn't that of just Okay. or going kind the sold geography if sounds I more much just convicted -- it. you're helpful. in from know not,

Rob Katz

the At also in we would have yes, the I mean, lot resorts on a geography. I a geography. the time, of certainly I we of conviction lot have say same yes, think

same which we're exactly resorts versus where additive resort So mean it doesn't at looking at that buy the always be think see just the more should you we I would incremental opportunity. And geography. looking in

it's like selective. So right, to in minds, it's our -- be important

we the Northeast opportunity. And lot we no mid-Atlantic, to the And have about And and there's that they've pick right same of the so like doubt efforts yes, to the conviction feel greatly. we've a at got that time, yes, for matter. our added

Ben Chaiken

That's then if I you. helpful. more, super Got one And may.

Just it side lot break the things. the like well sounds of both -- of in pass a new customers there as pass strength holder as was returning

from the that entirely basically and I pass On much how this to to sense, new as didn't can make the there single it to If any day say new down? holders, returning came differently. well is old pass customers the from try way as break versus Like, pass? database conversion

Rob Katz

data, across us I obviously, pass we that pieces, were understand. say, we we lapsed So strength have we providing I And pass a think no, but holders specifics all But coming and would People of once lot back. who strength on yes, for those think of I saw saw, right? No, holders. not yes, have that we're that. on insight, I

year on before saw or buyers were we either previously, that. lift who think strength I last people ticket

we also not strength might saw what we our think who's database. call prospects, I somebody in

spring in think typically, that in because, fall. lot that to new, of more So strength of which terrific see see especially was you the the I in strength a

be I we for folks forward it into said here, yet because do move what And again, either will it's see we was so we clear. not to us in selling it's can. the to whether early great that, additive always of to way, or cycle some positive fall, as earlier, the pulled But like it's as a want

Operator

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

Jeff Stantial

new to wanted on the base. up I holders pass right follow question the there on

about Are Specifically completely have new there helpful. versus the what color your holder on cohort any as interesting the any be enter Just this here high-level new just they that you pass the to differences existing database? are there learned base? customers database, would curious,

Rob Katz

time of we're I I strength even was we'll information mean behavior on Yes. but broad-based have fairly I point, that translate At we see season. more on this on as to we've selling end get the of the more we selling -- yes, by throughout folks, to information think, And would the share the kind go the and their details through of season seen. maybe it probably going itself in not the demo that say think and how those I breakdowns terms season

that cohort I So don't but specific that to there's overall the think in. new people share, at any saw thing broad-based yes, point, coming this of strength just, we in

Jeff Stantial

season season Great. might on my Okay. year, just next but in And likely on how initial the the this Pass for and recognize some get for then this you depends thoughts how I follow-up, beyond. part trends to Epic selling think Understood. about past wanted pricing I

base? you've level that new might something XX% maybe that Or or this a next that think like something do on recent drive baseline return some it, more inflation might your you on inflationary lower of reset forward that of more moving better to sort with you based of commitment conversion? price call tempered, do ratable, think this Now mid-single-digit learnings you cut, advanced the

Rob Katz

Yes.

we -- also that we was we it opportunity. we looking -- at. we've like I this think do -- candidly I we change were substantive this a data saw decision and think the this think And price when previous the approach. aligned that believe one discrete to felt that the definitely ratable a changes don't that's And as pricing year necessarily make sense. look Epic decision the I pricing Pass XX that long certainly in And the you our had we've that I years a run was the think approach over to year doesn't having view. And

future. could not yes, good like broad pricing don't this read I course, to yes, the will away product. price we approach was longer-term be have But us the data, but decision not people yes, And in this stability I yes, reset. to -- necessarily more, more we're I'm that guests our think and a of should committing of we to ratable our takeaway, the we what at point year that's felt from takes had our the providing and think and it that

Operator

question next Brandt from Our comes JPMorgan. Montour with

Brandt Montour

my so is share point is guys cut. the all on competitive the high end, far mean Do of their that -- know the just we're think all sense that share at first this system, are maybe strong. maybe I I think isn't going have assuming you a at So question your landscape. you Icon that at really on margin? I I sort it's little the think to data data? price retention And bit gaining match the from you What's from your losing

Rob Katz

Very hard tell. to

the our pass a grew think Icon was And think I we more years as and there's year for after came our Icon I ultimately been positive bring overall Obviously, have year. products. launched, to performed this growth to no industry. in bit, insight more to they it even the in and in a the into sales I market, how an we pass pass opportunity see this market obviously, came into will providing the into like think I'd own very strong And people last real the the decision continued quite that over that, industry. market, number think overall of stability

what feel say, we would good. think I I So

opportunities made new we all with feel like launched first hoping to we the progress were almost we aligned there and were we that real think we every that when strategies in I approach. the of and category felt

me that, dynamics share because at trending. feel hard their on for so of not market comment yes, all about I'm aware good And but we it's to

Brandt Montour

-- see just on cash? to then for what on excess this have And the What is the in are you just priorities Okay. of hand. before dividend? reimplementing Is powder? of tied there the the does $X.X Board M&A we And temporarily really that? cash sheet, of balance or dry about keeping billion plenty potential need opportunities, Or terms how to think should it hindered like

Michael Barkin

Yes. Thanks.

capital our and think in in in priorities to continue the be the comments, in Rob prioritize. to year, our continuing some which quite technology is I outlined in continue investing which business. reinvest coming to allocation ways of And resort the we're which consistent, we'll the

think, I is second opportunities. certainly, strategic investment

we acquisitions, as aggressive feel current do state that capital of feel will balance pursue to And access like on Rob we the to have we lot to And think those continue of I a liquidity we also with and flexibility and like we said. so have the be certainly markets, the sheet the the acquisitions.

very as look go into we're evaluate next to that. focused with the Board think like very we dividend. we obviously, business' monitor be comfortable So feel mentioned to the feel in as good about with continue a we'll And and earlier, outlook. to quarters the spot at performance on And dividend and I going we're I outlook, as the that the the as the we've described relative but it, that we

Operator

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

Chris Woronka

early, appear to next I to and given expectations. any there sounds on you more update, you lot your of your thoughts like Is ahead go, to a of it's it's Or capacity any refreshed to own about season? I guess thoughts given on to where initial know impact and it pass is some permanent well have reservation sales how but be internal this having other move going more system? kind volume,

Rob Katz

also do around -- more it of we're on get don't how assuming we'll But reservation things anticipating mountains. we're be into lot things a year. and folks this a COVID-XX, don't that that from, seeing We changes a very We're will paid people growth a accessing fall always for important really capacity have who of over holders talking We coming change that were I next the remember lot a growth we nothing the the I for or holders. to buying no, value of -- are course, pass in -- think system last it's just -- seeing that higher upgrading experience previously manage good that not be better, of pass having their Yes. as the works, learned about pass. year. are ticket we And we in that about lot the our of view. our doesn't lift from in people we terms renewing feel

those critical. things are all So of

We our spread time throughout there out in pass especially the visitation also season, see of holders some periods. their key

Of course, other and when lodging it limitations to pieces. there's comes

and from right, the or moving So with all vacation, is see Christmas, the on their that Xnd people -- opportunities. what XXth ending to adjust will or Those are we and Xrd. Xst, on incremental hugely moving at tend even XXth us to to passes things and great ending the XXrd the

-- for so and season. positive throughout entire try the think to I to and for spread and out are the ecosystem and capacity just the and positive continue the the And community resort actually

And so I of no, going lift will we which commitment experience lot have think about course, absolutely things, about time, life and to the including we're make and season day. good we're that that this, to improvements our every experience the it, for feel a of a feeling yes, next very good new new process of and is,

Chris Woronka

the environment menu on to how be lift obviously or opportunity of take school any still nice strong things ski the consumer on the dining you've and pricing some And holders given Great. value on economic pricing fall? should the given in a ticket, Okay. really list proposition but pass pricing like or

Rob Katz

Yes.

month-to-month, all price And try at unique lean increases. to We aggressive are these if really my yes. dynamics we that's tend strong but even for based like of the resort environment, quite the I independently. experience. more want -- think of price still products, the yes, are following that products for we're and local we that keep, a the -- other we our good more the we're priced move products And in. we to aggressive, of consumer on some to bit, important. our like bit there, of that in comments, other resort has. we'll level that course, each areas, and in gyrate gyrations. think nothing that And week-to-week, think market room season on kind We rates there more are the rest would the economic the on products based a that's hotel be certainly, many that sometimes of little certainly we We certainly -- on hotel don't the a lot a feel to see a But ratable, of of consistent because price out more approach in huge day earlier bit week overall don't respect. And I in right, a

Operator

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

Patrick Scholes

paid parking X lots parking initiatives parking light there A may in that couple lines, those Snow in upcoming the expanding formally of free I other the be were here. regard. to of visits? free tack-on questions have season, along which experience become that Mount other for of instituting been Will questions for And have any resorts? be previous the seasons, paid skier ski will initiative now now In a this the parts for charge could for you

Rob Katz

Sure.

think of the want our they for we I do some of say, more not the And paid use just the resort want just think other do take in a and forms I pricing. when many assessment, as can. certainly our instituting operator, important at resorts I'd of help -- one don't. communities as some of parking. day, base, mentioned, component that sometimes we to We And at the our I our to us have goes resorts them parking And certain of but a not each people is paid that you're seeing to transportation number with -- parking, incent at of mean through of we their on to certain more people it's end to times is incent resorts I that carpool. capacity. think ration own

I seeing think resort you're many environment that cities. the outside in

component. So to really one big -- it's moneymaker It's whatsoever. us not for not -- a us, a it's just is parking

really is it something the overall in that used by So the company, the how of resort all. terms to to performance it's being our It's financial material assess not capacity. best manage valuation to or of at local

take we on basis. it resort-by-resort so And a

Patrick Scholes

past on what the you're not usage? that new I is just this Will other coming of had, this tack in that items be maybe resort, tack-on I working meaning for was but more Okay. on, there that season been charges again, guess that charge. for sort free a

Rob Katz

to decision-by-decision. the important definitely we'll their ours no, obviously, the is that local of that a try so any we makes corporate to Again, we'd would parking Obviously, see every those not even are -- manage yes, them across out to strategy resort making the really again, decisions resort. performance dynamics Not lots their do. looks of that like But extent at changes, of unique the overall as that extent have a not resorts. that come parking, something And each unique capacity of to at we own to our up, those communicate It's some on and material get I kind we're here. and as early it's level. when And of possible.

them, capacity. to help may a Some charge parking yes, of add manage for

of remain Some free. them

a So of we kind situation-by-situation take a approach.

Patrick Scholes

price some, macro curious part just in was Okay. the discount to I on if make pass additional yes, strategy was the this by of items. adding up like

Rob Katz

no. do that's the focused prices. we're on going in we talked not how not drive that's things Unfortunately, terms we And pass upfront yes, about really to those No, more it. all of --

Patrick Scholes

question here. just And then quick Understood. one

was wage had comparable a season percentage? You your minimum the What instituting for mentioned at How wage some resorts? $XX last those much of resorts.

Rob Katz

Yes.

highest. lowest $XX California. our it's Some $XX, bit Colorado of And Washington, entry the below the a probably mid-$XX, resorts Utah, wage. were I were California, hour an around little -- -- somewhere and obviously, the was think

pretty especially be East, in see resort in the well. some X the increase. So will wage again, for they'll resorts, but resort those by also pretty as And meaningful a it's non-entry meaningful it increases

Operator

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

David Katz

a just which is gating ground domestic the Congrats your takes of touch And does business to price would they're finding time. it going? aside a how just frequently business? towards lot at much quarter. puts discussion And and it pretty on factors up passes. the I the follow-up piece sort American or with or to long from the some Europe are to the because international Covered come -- wanted or about back and right already respect What leverage North international right whether be exposure it there getting Asia, of the goes the specifically, of M&A, on partner,

Rob Katz

pretty probably many out think trying U.S., at in terms but of it. challenge about I and think similar think I North if XX America, do in and the in is the you it even of -- to -- we go it diligent M&A here forget, stuck people I was back or disciplined we're years, the XX

I think to able progress. we're make real some

of that the same just the some and more to challenging of think pride, in national and, the I these resorts. given have of true is connection -- for course, of internationally, like many some so much we the resorts in cases, even exists local

busy, of important, in it's and, that so think, find and part, or And wants we right we who say, the the course, would the sell right, quite have or resort, over the also we that to partner right decade. goes I buyer for partner And U.S. Australia that right the are resort, in been the person in that I forward. last plan

some been opportunities it center then then, hit. of we we've to no and there's hasn't course, front and pursue integrate trying of course, so And COVID been having these conversations, the were as here, doubt while and as that that of

feel opportunity. that still opportunities to critical -- strategic exist coming than us know where very think still because today obviously, we have X of North I direction, COVID, less it's So America, specific and so especially like in we out It's critical I there's -- that a this years have ago. unique we

area on. So that that that's to focus know an we we want

make our quite will our and time and But around get that wisely I we're and, we about be yes, use sure to confident capital there. think -- disciplined again, that it. going that we

incrementality, have immediate doubt, I terms between in our I benefit, Japan U.S. would think, something Canada and the Australia, Japan, to doing of think, In no connection

And In stronger don't less so same Europe, I we would I be think, that so patterns. a visitation those think see immunity boost. because

market much bigger. the hand, in On the is other Europe

get the creating term And Europe longer time certainly, in a as the on of overlap opportunity, growing have course, it's America basis So quite some Europe been think, U.S. South the it economy. that unique stand-alone is strong, I take we've U.K. other highlighted more in world with platform even will and in but going. of in the to and a about -- parts more and

of and over center much very radar front on as been years. the So still other as and much yes, hasn't obviously, couple some last just things the

Operator

Laurent Paribas. question Exane from Vasilescu with comes next Our BNP

Laurent Vasilescu

the minimum there and regards potentially the question the Is labor I out upcoming border with that wanted will talent hire? to on to Curious follow there hire season? wage U.S. Patrick's to do what you're increase. And can know well for talent in you as market. seeing anticipate to up foreign the reopen enough you

Rob Katz

think labor a right now. challenging I market it's definitely

was I hit. before think it in some respects, right, COVID

some And of up pandemic. pick of so you're I think come out that seeing as we the

concern as summer. course, I big winter. it us, the a as a for is for It's of it's the in think not concern, us certainly for

to H-XB But return to certain will committed did hopeful program are past. in position J-X the we our we Student as the select something very our program Visa able critical, that was even be of also obviously, was We and abroad for to recruiting bringing workers the the from in through that efforts COVID. U.S. in before continuing I all of improve think the and couple of challenges That years staffing we're to with grow

a improve even aggressive quite going and continue helped and -- as go year, both the season. We to competitiveness into that that way critical entry we're next to it about recruiting, level. as and to went our that and the the wage our felt 'XX into and we was And we 'XX increased obviously, again bit above went have I wages think that a ski we be leveraging more on and us for leading us

out of trend. the getting front we best getting are the getting talent only current talent, but not of yes, So kind and

Laurent Vasilescu

helpful. Very Australia. follow-up, I as about a And ask to wanted

no your from impact specifically lockdown. assumes guidance think the I

in to like just interesting the what a so boots across up you curious share -- to And the regards why I impact with your And for on breakdown you'd on assuming unit X stack. were also guidance U.S. with to similar Australia? terms you're consumer? resorts with there, XX% XQ? know then Anything far? of it seeing to what was passes the the saw the on ground the Is X-year in that, of growth, there think no Just

Rob Katz

would say, Perisher I one, opened. think Yes. I

And so New to Wales the Sydney and and I engagement think we're seeing South Perisher. market good enthusiasm in

I so very think about that. And feeling good

I Melbourne. I the of think open prejudge of outside the want but market, say. on in it's of Melbourne schedule. to for restrictions now, And relax the some the hard don't Victoria in Obviously, happen did planning to right are to they state to and what's going we rest

Of optimistic. yes, but we're subject to there, as it's, unfold course, things

think all for I to season think good good across -- And a a have us feel very the, resorts. I there's opportunity X yes, all like strength. we broad-based

feel yes, would obviously, I just I say growth segments. that, And and growth, seeing markets So that kind across, of good. yes, with lots of we're unit consumer

it's think that to I in some the demand pent-up ways you similar here. have

here. Australia And our I products in think in the in Australia, terms very competitive like price is way we we also closed. bit were border we a the are of obviously,

travel So is more outside of limited. Australia

And domestic time so at for travel we're for the the least being. country, stronger anticipating

Operator

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

Paul Golding

has ancillary just digitized? coming lighter of experience was. ancillary the efficient I'm been could for coming if color on this around experience, how margin it what on other margin in ancillary of that. services I through back. quarter wondering either is services you dining user maybe look sense labor some conscious And services, the follow-up been or Just have have but to trying could like, COVID, after give I has or question first the The get impact a where being then a more

Rob Katz

Yes.

remember, us around margin costs. being to improvement part margin I year of disciplined think of the on was, by it's that course, this right, important

lift well did is Some because in which was ticket, business, we margin really the have lower-margin also in businesses. it challenges and of more highest

the from sales. ticket businesses. Now we our that ancillary actually businesses margin flow-through than all get just are high-margin lower They're

the but about, SMB profit learned absolutely improvements dining we've I'd And around not as into most our And insight a opportunities efficiency. a on next establishments think that cost for system have I lot dining before. of to lot efficiency, around going I bit, didn't factors a of think, go our say, of around all implement know did business, we we reservation think -- number using or efficiency past us say, and the year, dining that quite of really having gave we're particularly business. our -- a we for year, I'd I our necessarily absolutely, of

season. don't So we same use I Even we use as if system think that. into go actually use in next the the data can reservation we we again, that way can

yes, very opportunity have more for and good I capacity saw, to close business we obviously, sizes. feel, And operated ski the that cases. launch school, we we We didn't opportunity So about didn't for think most on that. instructor I couldn't certainly think we have with have the the class in the

this experience we been business from would is think think the -- the unfortunately, but to has what those year, closer I experience, the guest so were but historically. say I itself it And takeaways for -- much I

takeaways probably F&B. So we on not the given on insights much saw good that, but I that huge think as disruption and

Paul Golding

term? just customer you plateau up the because a Or for And the sticking staff, around labor just onboarding going trend members then with new that wondering you're something to how where you're many of more on bulking on just the that see of backdrop, transitory business is if the disruption? long is sort current pass that experienced and COVID just

Rob Katz

Yes.

is obviously and it to going commitment to the think stick around. I the investment

that, with and and yes, And where coverage are course, correct. behind Epic lot before think, I've feel, that But the it unique which, obviously, resourced and unique think challenging. I and understaffed and a was clear, of year as as backwards situation, this complexity that clear, mistake made in credits of I were all going under year more a have with of not to we been because been we to COVID and was but we've of on that to areas. I terms different we past we in go were we're a

there's hopefully, great But people this on will of environment not chat we So operated our I times, deadline, pass on yes, and think see stable. and And we the same going last over the will the quite be likely lot obviously more because forward, complexity, both that no is deadline. the room. selling which a we have strong, into response coming phone doubt

for that. go to don't sure practices -- standards within we we And the bodes we I backwards on make want that, so that move best well to within as industry want us and We on think, well future, to that. and stay

up we're on. that's going to So not something yes, give

Operator

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

Ryan Sundby

a border when weather past lean with a Rob, that have bad maybe X.X the has Whistler can look But resort challenges in you seasons. for an at for seeing early almost on the of you couple example years restriction, the that's the beyond? seen now, have see the reserve resort for about closures, a you resort or getting maybe developments to certainly guess, share And visits season I to next you or concern season that leads, year X? any do can of -- the back mind either the camp you

Rob Katz

that Yes. Really no concerns about at all.

of feel cross, and resilience Whistler's could feel is, the people world. weather, and Whistler the Whistler that experience spectacular that border this I No, year. really resort with that and border year in one future a yes, unfortunately, And No, think course, but we're strength levels, in obviously, was the many confident that's quite the very both by have didn't snow that the we unparalleled, actually in show. a which, continue of than to the history. opening better good resorts we certainly good with way, quality we -- so with the of an on most previous in long-term will long and the

largest obviously the North terms for also people America. It's and the different moving access it's Australia, some again, outside have, another people of mountain. at think, don't we I markets see and the come. not all. that that huge the community in and mountain vibrancy ski Asia and of certainly, the in yes, U.S. And is why the the uniqueness itself draw It's community they that

prior and were something that they America. to I COVID, South Mexico, inroads think, were also in to again, helping making we good support

the -- we're that all once not it's right, world. it's gems, miss in So it's one COVID. just get to at going we And of really past something the a truly concerned beat not the current of challenges anywhere

Operator

Instructions] from [Operator our Take next Maroccia with question Alex Berenberg.

Alex Maroccia

Have First the of then think your seen that you year? major CapEx There's could material this you next And projects earlier assumptions about days. outlined question the impact year? outlined. price in of plenty headlines and capital employment and it impact costs labor for increases pertains these do chain the can supply resumption constraints budgeting you to you

Rob Katz

that not at don't highlighting this impact think budgeting that year. don't real, we're Yes. that's -- is -- I but there's point I yes, those we going overall think, something dynamics for the as looking to that at, and something are we're I gave this you're see

out as to of the for we but opportunity that. continued -- do -- get COVID, there's come of we we And improve opportunity think go year, like into think end, impact, to next we it's But be us, I it we terrain something new going we experience, in us until an to could no possible, be obviously, where to investments. in think make we're in the from going yet on reinvesting don't for I we the still inflation, that that that us all there's there. know continuing add I deter can, some And if won't improve lift resorts. these as be aggressive see doubt restaurant, that

Alex Maroccia

bit cycles? estate price strategy your real it a secondly, helpful. opportunistic Understood. and are then seeing is right of now, That's Obviously, less portfolio communities possible the estate many in increases. see topic the pretty a segment. Is is robust Okay. market these discussed mountain your housing impressive of And more types real to with

Rob Katz

love either on we number ground, these a now our to -- are on those have, their the their projects strength way, off I that cetera. et land think of working actually we by getting the markets that see and construction to certainly the or sold project or to we where developers, getting projects approvals have will help current in working the developers

think help absolutely engage absolutely on Obviously, extent yes, that. go really market not that developers. We other there, business our I new current could projects are going to hopeful with fit there attract the the are market out And to with own. we to the into current and development we're use will the that that

some issue we we'll We projects done, they We focus can they our be this to putting that debate whether in is resorts also barrier behind is a our -- communities, about communities, of or housing. ensure the another also to invest to how where think have think done many continue affordable and people. think of livable it's I capital housing each critical affordable committed our these and of projects -- for should remain be in on remain range that of and hope accessible to should our to employee getting a but wide certainly

Operator

closing I Thank Rob back would over you. to the time, to turn At this remarks. like Katz call for

Rob Katz

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

Operator

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

now may disconnect. You

Vail Resorts (MTN) 8 Jun 212021 Q3 Earnings call transcript