MTN - Earnings call transcript Q1 2022

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Operator

Please stand by. Good day and welcome to the Vail Resorts First Quarter 2022 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Kirsten Lynch, Chief Executive Officer. Please go ahead ma'am.

Kirsten Lynch

everyone. afternoon, good you, Thank Welcome to earnings call. first fiscal XXXX quarter conference our you to my Officer. pleased be today Chief I'm with Executive as on call first earnings

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

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

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

related throughout resort We and which resorts periodic performance COVID-XX at negatively restrictions, for during was and are our including quarter. orders closures the the with limitations results exceeded pleased by impacted Australian our stay-at-home quarter, our expectations, the first quarter

season, able our in to the few favorability expectations. will last weeks of We re-open resulting the ski Australian to for resorts relative

early closure fire, Caldor by in the were of the in resorts operations Tahoe Our impacted resulted the negatively our summer region. which

believe for to we challenges, see which the demand continued outdoor desire unique guests quarter, our strong these from highlights throughout experiences. continued Aside we

and to indicators. applying ski compared XX% XXXX dollars units XX% American sales dollars include increased the compared ski peak approximately are with early period $X.XX American XXXX the for to Pass XX% in both to in units Pass the December now American between North our currency product sales for for December eliminate and exchange ski XX% holders season adjusted the rate North for sales the certain approximately in X, season of pass the through X, American foreign as approximately without Canadian through adjusted in approximately in December sales XXXX-XXXX product North Past sales season sales season of the credits the dollar North December by the sales sales. increased season Blackcomb in XXXX periods. to pass period. in any X, pass deducting sales X, through Turning pass all American and the sales in an XXXX, pass prior product and year XXXX-XXXX Whistler the North for provided as through value periods redeemed to product XXXX impact of XXXX, resorts to dollar US prior

of to the our million, we approximately of of increase the Australian the We resorts, guests products XXX,XXX and an year American advanced in year for price results an on and this approximately will analytics season, pass expect capabilities proposition of holders pass Driven two our by compelling XXX,XXX years last the the X.X part of for our number pleased and ago. pass data from demonstrate the XXXX-XXXX all XX% pass continue with sales, which pass are that total products North very strength holders value commitment passes exceed season all a representing products. in of from including increase reduction

passes our previously but holders new are unit holders, growth new as saw and guests to who which our season, renewing not previous unit who from we a lift sales stronger pass in well did For completely as tickets includes buy guests growth database database. the full pass significantly in strong season, or the pass pass a from purchased

strong unit local we We growing significant all we growth very And most of across in destination pass last guests those the expanded our was holder our years, Our of the base on growth markets have from the advanced have network, destination markets. focused markets, as our doubled two our have the had number also of particularly course over and we nearly from commitment Northeast.

products. saw planning was Epic Day by strong growth a which to our lower growth products, point at led ski very from new Epic products, And unit Epic Epic Pass Day Pass including for absolute also and core Pass limited and Pass Our offer price select our Local our not we strength guests resorts.

To to products, which to lower up passes. total price estimates continue price to represent decrease sales Compared was we Epic help driven offering commitment which increase passes, our advance sales. priced our Pass when decrease Day in continue XX% our ended significantly the more growth and product announced product in move we for December our portion We passholders outperformed to increasing product. provided decreased XXXX our significant past Epic expectations XX% we commitment advanced an of despite we higher into refine relative original this by gas new value the the Day trading the -- XX% significant to X, Pass offer and the price the of period year gap As implemented

We strong into are indicators indicators. encouraged by American demand the of XXXX-XXXX leisure ski travel with the season heading North demand

are on the around due the guests sales visitors pass bookings, the for of our upcoming for time. of bookings are season, Blackcomb on have ahead while Our XXXX-XXXX into Whistler ahead. at international to made demand impact we year by our visibility the lodging visit winter lagging historical this to season anticipate the at restrictions travel levels the Based which half is bookings the the to resorts resort. XXXX-XXXX Lodging of been season bookings averages, in resorts for robust trending provide strong pre-COVID-XX US for

the around our lodging inventory So a portion to resorts. it is that of lodging note our important small overall bookings represent

conditions to of given excitement of We communicate very commitment experience, the are business. Our our for and been a season. have across significant our the advanced to strategy reduce dedicated to stability ahead allow to which early recently revenue limited travel open for wait to more demand us significant and Despite in us of times season the of amount the terrain expect creates open the transparently experiencing guests, resulting early expand our challenging which challenging snowfall especially coming guest secure delayed that allows and resorts the and our demand network, openings this will with continuing and our been have terrain. colder improve soon. conducive remain snowmaking, temperatures season, opening to season we Many success

additional popular prioritize deploying plan, announced daily resorts new line holders the gondolas, skiers experience forecast app, this and of steps EpicMix on on riders holiday three significantly this new of we including season. a lift lift limiting the pass and the at we times November an of experience our and have a ensure reduce operating in taken which lifts and in new mountain periods, and launching lifetime order expanded efficiently As investing wait during wait XX, to most ticket to a times season, how lifts, improving to have includes sales load, terrain

focused In completed transformational XXXX-XXXX are American North XXX the as we enhancements off terrain the We to all high end Beaver of resorts family guest served several acre experience. experience. further the Park guests ski Creek, to signature of with season to Colorado, lift thrilled expansion welcome McCoy our the and a kicks differentiating resorts area

the added also serve replaced new a seven, including with replace the a We we high a the Ridge Lift upgrading to four Crested lift at speed Keystone At with investment, at person lift high six to Green Lift fixed-grip Butte lift. person, chairlift transformational person Peru new Breckenridge three a popular Peachtree speed peak chairlift. the three-person, replace a fixed-script Quantum Okemo, completed and

greatly investments approach uplift channels. guests of these addition customer we how a service company-wide technology we to best-in-class our invested capacity, In have to in a number service enhancements, improve through to bring will including our upgrades that

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

Michael Barkin

afternoon. Kirsten, good Thanks, and

our in pleased of for in $XXX.X performance. first in Vail -- XXXX, the period restrictions. the negatively of quarter in mentioned, prior continued we the compared fiscal EBITDA Vail the year. million limitations be of first year. Resort fiscal Kirsten Both As first with the loss related was and compares reported loss to million Resorts reported Resorts to million million periods fiscal EBITDA to of was period which are $XXX.X by same to $XXX.X a loss impacted COVID-XX and $XX.X same quarter, to fiscal prior resort with attributable quarter quarter Net attributable our a first in loss net the

the Additionally, the the holders were of closures. million approach focused with the allocation. associated on lift in revenue prior We product year COVID-XX-related period of pass credit offers $XX.X recognition disciplined to capital remain made included with connection that of to our XXXX, XXXX expiration

Our Our free business liquidity model. confident of and generation remains position stability are flow strong in cash our we the

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

reflects be effective will the period pre-pandemic free directors record Vail and net stock. XX confidence December As equates and flow debt times EBITDA reported of XXXX stock board dividend This XX, of be of XX, our our dividend consistent with temporary was levels, Resorts Credit business and of cash payable with cash XXXX. common to on has risks the quarter the a continued COVID-XX. The Agreement, I'm our XXXX, under January October of will dividend strong to generation dividend to October pleased prior declared common XX, Vail and also stability XXXX. despite of share ongoing announce waiver X.X model Holdings cash in trailing the per total XX, payment shareholders months on our exited associated we our that $X.XX XX% on

to a and level forward. Directors quarterly dividend of closely monitor of going the health quarterly our to on basis will the Board economic assess public Our continue outlook

our Moving rates. given on EBITDA we reported we in quarter our earnings time, guidance our results at was reaffirming now foreign first in based the resort fiscal for million exchange the for XXXX that indicators XXXX to outlook, including $XXX are that September assumptions of seeing $XXX fiscal release upcoming included to currency the our incorporated million season, are

Springs includes integration related Seven expenses any Springs Our of closing the this $X or costs, is which include close acquisition specific estimated associated Seven results expense winter. an guidance with the to to later but does acquisition, operating not expected million for estimate

important in and We pass demand trends, quarter travel the we it's season, our favorable from our are to in to the reduced pass seeing continue we booking sales that encouraged convert products. tickets be heading to note sales US into as expected sales offset by pass to is strong ticket and our growth partially strong across are first very guests by our results lift successfully leisure lift

COVID-XX the openings across our we guidance periods XXXX, regarding American across the changes COVID-XX. in resulting to in in holders. ticket travel these year our communities, conditions have regulations from front Additionally, us. that anticipate various holidays. by But There terrain our offsets still up to period and most changing impact our North ultimate limiting with for season limited negative prioritize resort and American we ski resulting begun just COVID-XX including anticipate conditions of lift many our in North and holiday of well uncertainty a challenging, to primary And regulate the as bodies delayed results consumer will continues access Early sales has of business impact three leading results pass the and modest on have fiscal that our the earnings any be resorts. from to on as governmental response popular operations been during resorts behavior season

serving and EBITDA. home riders income Mountain ski or Resorts Resort Pittsburgh, were our regional our could conditions on same impact and These period is Ski Springs negatively for EBITDA We The from network, resort move and Our mountain a was fiscal impact expected attributable no its Lodging from This resorts dining announcement a release. entered shift revised Cleveland, operating managed. to has and the to XXXX normal XXXX reporting guests Springs year our from lodging travel and and COVID-XX this are into reported conditions agreement Laurel with ski that net DC onward company the acquire reported to opportunity create Mountain an of Seven in expected Seven results. Resort, Baltimore. holiday segment, assumes Pennsylvania guidance with restrictions segment The us guidance for EBITDA incremental is the associated excuse me, Hidden leading destination segment the Vail impact weather to yesterday weather in Resorts thrilled no area -- fiscal consistent another in Valley bring western relative $X that golf or at our skiers yet operations certain to and from reporting to Resorts revision million Pittsburgh, area. assumes our how opportunity for earnings Pennsylvania, share we on into to the guests in with of providing guidance results pass approximately Destination to close product. shift Vail to the reported included the that those World-Class operations September Washington, to normal Mountain

acquiring the associated now operations. add ski million for The incremental $XX close the Kirsten. hotel our to Springs price to the We Seven XXXX XXXX, Springs The fiscal expected XXX-room a Seven Pass purchase its capital the and with Seven million facilities year. that plan $X is to subject American which includes approximately in I'll XX, to lodging Slopeside Epic to $X approximately We to the winter. North over and of We EBITDA to adjustments. expected in ending approximately will back resorts will conference million generate three are transaction July operations expenditures of ongoing associated for products access this the XXXX, Springs for certain company's million turn be estimate be call season. excess per $XXX annual year

Kirsten Lynch

Thank you, Michael.

investment the across our guest value includes Pennsylvania The capacity increased to served the lift ambitious As lift drive XXXX increase we loyalty Jack we and replacement transformational capital guests calendar experience Frost the installation Big to incremental two our resorts and guest plan of products. enhance a announced terrain our resorts excited year at and lifts resorts. commitment new expansion are proposition million for updated Boulder or our Upgrade in includes XX $XXX be of capacity XX provide our September, with improve to $XXX million across improved of of in plan replacement experience The Lift approximately proceeding from and significantly as to continuously the at lifts Keystone. Plan at and advanced increased

projects the subject to in All plan of regulatory are the approvals.

lift previously and details are in our upgrade expansion terrain we addition these to excited In to highlighted September projects, announce on additional investment not announcement. plans our

remain to data leveraging We continue operating focused on to developing and business. the approach our driven highly and marketing

include and analytics, Our improve planned our and our guest to engagement will wide improve technology conversion. scalable network our target e-commerce personalized tools outreach, to that guest investments enhance messages ability

capabilities also online broader self-service will experience improve investing We be engagement. in to and guest

and and XXXX in snowmaking, Vail infrastructure heating toward cooling excited In targeted meaningful to improve efficiency investment addition, goal. to including lighting plan to and make initiative, further zero our capital progress investments efficiency are $X.X we our Resorts energy announce high a million commitment and

capital, incremental estate Peak Triple inflation and one-time includes million acquisitions. million. annual to capital to calendar approximately items which and approximately $XXX $XXX is on is We expect acquisitions real million $X based capital be million be our any expenditures associated with and total This to acquisition, related plan the related approximately plan above typical for plans with capital capital approximately real spending Peaks closing. XXXX million $XXX of plan to Seven Including million our estate for million to excluding our previous and $XX excluding associated $XXX with Resorts to $XXX of capital subject remains additions one-time associated one-time capital the complete expected Springs the approximately

XX,XXX lead make providing will calendar culture detail We than XXXX. much. am employees capital to honored more this so and our be special. further on so company grateful am I XXXX in March and I who love that Resorts year especially the plan I Vail to excited

service of network special success. which all a Laurel center I commitment Valley of Mountain. to for resort a would company's is the extend across thank I continues highlighted be our as supporting recent am and to sustainability lies of on always, welcome delivering to would our our our work Epic report an communities, environmental to also to for guests, experience of commitment employees team incredibly I commitment the to Progress proud our Springs, Promise outstanding website. of to and members company. which are our our our our attention passion, most at guest hard the the Hidden focus available creating Our inclusivity, that like their Seven experience our and like of and of to lifetime all in

the We that a of resorts and later to questions. this fun are closes. safe excited to enjoy we the Vail ahead. welcoming time, and our we and you Resorts have this to look will you happy answer winter I forward be Michael when At questions. family ready you network join transaction Operator, season are to hope to all take We

Operator

And of Instructions] from our Bank America. of that, ahead. Shaun with first question Kelley we Please [Operator go take

Shaun Kelley

Great. you welcome. and to afternoon. Kirsten, on Thank you, have Glad good board.

Kirsten Lynch

Thank Shaun. you,

Shaun Kelley

a I'm off I start go going to Maybe to with strategic mean, one. then

outperformed know, that of sort your pretty think speak the themselves You and expectations. was results you exceptional pass for clear reaction obviously I were that the this

the for what know how through how bit traffic first term Obviously, you the know, my for initiative So coming have big season? you can little be impact you you expecting maybe You longer your around a would the know just planning? question resorts talk already it and investment movement does reaction this you're demand? how about and even outlined level think do the much a this need and much are and calendar of level bigger now and you things demand And just bigger just do think do plays out to program that much to year. accommodate you But strategically? how think that, bigger you Much you you there program of it’s just bigger beyond capital know,

Kirsten Lynch

Shaun. Thanks

We’re Overall our coming it's are expectations, a that model lifetime people very a pass yes think incredibly pleased remember portion advance the on an season important our the moving subscription to them who to into pass sales I resorts exceeded that with we’re our value. commitment. of creating from and while just focused and we scalable coming already we're are of results holders strategically

year path would that, capital into question where and have transparency holders continually ancillary that will decisions key doing the experience all pass of we announced experience as announced floating plan to list experience you as enabling Moving of or sense, the of to the advance make a this incumbent be provide our I use earlier list. the When achieve significant this and on what is make guests. experience do of an vision we your over continue at technology Which is revenue that those new it's mountain retention, just benefits that people you lifetime, there new most our investments see know, create ultimate including about think we season to communities, investment a have well and in do is guest to us that some total the this it saw and as do specifically best few commitment. and to investments, use us on to we XX% looking of next efficient that the the operation long-term the more guests enable and year are we past to about I that investments and do of frequency, year steps how We our to second to stability, operating years have capture do you will next about, is new that creates the to the we our part we for on how is, data and give anticipate deliberate our us our is our piece significant terrain obviously our a value what employees, business, think lift experience other

continue All our of the we at would anticipate it's actions, and data best where on appropriate focused experience. will to I feel the create be that we those to investing looking resources have we most

Shaun Kelley

guess I you. to follow-up, then little just my a as I about ask Thank right. bit And retention, want

two you sort year? know, a the that did was you that, there's guests about here was But how big in and very you clear of obviously retention when variables upside So know, from line new to your side last feel and saw you you what surprise. were with that think repeat relative passholder was, expectations

Kirsten Lynch

from on in we line discount program not lift pass ticket that we being expectation, up, came higher which and a and strong renewables new trade people was basically that right more the but or a of have our trade laps we new expected or price up over-delivered performance on where was last year, renewables, our a which really gas frequency. strong portion Shaun, spending with all But the year is into saw expectations a into or were It our this in and come expectations. the pass did pass

Operator

to Next, Laurent with Paribas ahead. line Exane. Please we the go go Vasilescu BNP of

Unidentified Analyst

it's expand incremental know, less and This taking mentioned is the Thanks you of the little converts, to Laurent. on you for maybe question. system. to Maybe people the cost new tassels flaps the old composition a [indiscernible] sales, more the bit on for in

here to you sales are you mix grow from new estimate those the -- how from said help guest the conversion the you think new kind I -- that quantify lift. of give of new think you But you think the that? pass large us how maybe do think database ballpark are can the Do part kind or the of people do incremental and that about evolves? of

Kirsten Lynch

- we are our some say on when delivery expectations combination guests really our versus Yes those new of into over it and new a an database. new, is we saw over of

a them lift of on be used to Some ticket.

past back and they meaning a of they’re one on are we perspective to us. is from every single So saw geographies to market in new prior our our some is ticket that doubled, nearly willing is real two being of guests understanding or actually came years type guest came would to want strength years holder, in lap proposition value the really a a lift is advance the a of importantly, is and we and you mix to in over destination see local from the exactly What in can commit passes being that pass have. a so that pass the of pass what

Unidentified Analyst

lot as then think a And maybe guest. tracking a you're I seemed of follow-up, like, move this

So you it should feels be like gaining market share.

same Just wondering - know, is do to what think of all to that react how share on the that and don't of can of some and are just think other you’re own share wondering the passes about where your expectations that can't the you maybe kind market have this for how I has one competition But and resorts react the I evolve? maybe thinking price the you advantages way

Kirsten Lynch

frequency people value the pass to broad enables based that terms what of are we're needs their and network own we different access. on operated we It all of of proposition We just only and think commit clearly of more and to is industry. have is in commitment in our that's growing the you And that entire actually owned data. are we're more actually tell because I advance and guests what always think in good if opt passes the for really But us in market our share products difficult for to are said because what really also willing seeing well-positioned the and to the advance. portfolio fits

say position comment the market. are. market can't or I really I I And where tell well in can while and positioned in on So share, we're we I feel a really think good you

Operator

Credit to ahead. Suisse. go Chaiken the go line Next, of with we Ben Please

Benjamin Chaiken

pass I might the Is group? much overall one there pass differently. I know the - might to more… way the trade little to to buyer a And up contributed ballpark question try then pass You how a

Kirsten Lynch

pass our lower an that. But already is our would I which on don't Day the price, XX%, down you would look if we release -- effective mix pass in shared say pass reduction of No. effective price XX% price and what a Pass, We despite what disclose Epic I a is at price increasing was product.

exact to think So can't amount effective contributed while they you I those despite our give only other price factors. can enabled strong would have that infer two be that we I the down trade-up XX% path had you

Benjamin Chaiken

very sense. Springs Got just destination any, the And whatever the if of around from share or and personal Baltimore a you on area Pittsburgh curious then bottom data perspective. just or it guess logical makes you you. points That maybe this But if fit in that made historical like seems a Seven appropriate? saw what transaction, visits there's team any I assets data from like well line, points the group be might can portfolio?

Kirsten Lynch

specifically acquisitions of of resorts strategically is outside because approach the significant skiers you've us Yes, resorts, skiing is about seen resides. currently, ski that, for riding. which I'll but network areas a really start riders population are and acquisitions also That where is making density answering to our has been think to metropolitan the as in major there future that where of and and our business

a important acquisition really links for other strategy acquisitions. and it is strategically also and serves Baltimore. Cleveland, major markets a to like Pittsburgh major with for and market Washington, DC is Springs and Seven approach our so of us because very guests consistent And And this

Operator

Bank. with of Deutsche the go ahead. Next, Please we Woronka go Chris to line

Chris Woronka

was through everyone. Welcome, when thanks I I to release. the afternoon, Good of going company. the front -- as through happy going was I at the Kirsten, was just curious you have we're

EBITDA this I if not bottom did was the of that -- And guys was quarter Thanks. last ahead the not going I did margin I as you put you initial resort be think guys going you I through. did through quarter on guidance. think would at know kind the the the go you release,

to fiscal is guidance kind as guidance last in curious even resort, any that made for whether in the assumption unchanged, So, changes -- was your though embedded you have EBITDA your quarter. XXXX your I'm your of revenue

Michael Barkin

is Yes, the Chris. Thanks. margin, not updates it's to no which Hey, why Yes. included.

Chris Woronka

it back to of going the, and going EBITDA Epic And and acquisitions right I I Seven in to million there, full and when So, get that XXXX, million installed know follow-up Springs, you make Pass is takes the a mentioned the in Epic really fiscal a that. then like there? the couple seems the Pass $XX think it include probably benefit having bring historically you you you've back of not after the a -- of Is bigger seasons benefit $XX does right?

Michael Barkin

any that lodging in know, this be actually we're full think Yes, know, that, it, like a XXXX the there And certainly as Seven visibility that, that but we be, we right into what is be announce after the not with which us proximity for the will think which year brand of the time and Springs it's will offers year to options. which a first that that's will know, mentioned, Springs. and know, of trying you do offers, deal way Kirsten that the think strength FY and operations Ski the under, we a fact I you to one, think Resort, you Seven to Pittsburgh, acquisition, benefits about is even you provide experience just the do Day

will with a announcement that up. East do -- what really that, we consistent as for big ramp multiyear a course, to ramp not but similar have a provide, it's region. you know, to in up going seen tend that But regional We specific yes, a we've that's to be of certainly over yes, destination acquisitions also we forecasts this is So suggested, you would be was time. that, be, with looking that on the that

Operator

line Securities. of go Next, with Patrick we Truist go Please ahead. the to Scholes

Patrick Scholes

question operational I an type of have a -- evening, here. guess, Good I of everyone. bit

How talk and sudden are of your that period. on of that really sales vacation, You go seen wrong that I limiting like it logistically and expect many that at could is four expecting holiday customers lift How that horribly and their seasons during -- anywhere. and can't. all a could staying going you're do could time? be imagine communicate lists people to to I'm a lift ticket about and to be you. know, going -- the sounds potential families to on ski to ticket buy Thank You they they expensive I work? if marketing of plan ahead distribution noted you haven't

Kirsten Lynch

Thanks for lift announced We question. ticket… the the

Patrick Scholes

yes. -- correctly that understand If

Sorry.

Kirsten Lynch

Yes.

Patrick Scholes

If you. I be what understand thank -- you that’s how worked, to what going

Kirsten Lynch

Yes.

are correctly. a are understand very days. a the through lift announce January those We on that lift our select media and XX the did periods goes make them through XX XX December available time that through if that out. We we database I is aware emails inventory also is February all of actually to our for announced sent XX have and press in and sold and it. website very think also February days and way on we of many still XX; to that via January specific of those so the tickets not are It release, social guests by only the you limiting X; someone there

that in is really And see buying particular the guest purchase on tickets that really if of is a goes ticket approach best is broad not, the calendar a will or lift want inventory we there for our actually not they ultimately for our all pass advance on to that's day resort lift lift that what or and or on whether to whether our guests. ticket, So website in advance online. that's available that a on our buy guests message their

Operator

Katz of to go the we Next, with line Jefferies. ahead. Please go David

David Katz

mountain? just is Welcome Good wondered, would know, you this continue to can are I rollout? you execute return like congrats question. Kirsten, there thanks a qualitative you notionally so With say, to But opportunity with know, everyone. this more the on there share you you out my respect for evening, that of one on how acquisition, And can in and many taking anything that that. terms

Kirsten Lynch

its Thanks Thanks. the about for Seven acquisition the I Springs of Sure. good return we really of profile think, Yes, social the resorts. question, feel two you David. know, and

is very know, acquire. that what you to we're really Springs selective at and hits that, at we've targeted we resorts earlier it the the areas the to to Seven for, sizeable know perspective, and look past, success think that I resorts in key acquisition our and we Seven just in year multiple done get and great of I you hit past to of again of expect very resort, scale think the it, a I which the do also we this as so major like at think it’s the impact perspective, And certainly destinations, to a both you earlier, the to the experience in to the Springs. math we multiple look similar guest that $XX all all is these for that to that the if know and would Kirsten we from from you in expand as us a close just Springs really particularly explain we you metropolitan We've you all attracting think into deals, relates look look when Seven regional which I urban from criteria acquire I and know certainly generate million I go it'll this as to from is described you guests the with integrate network. about on attractive that start areas, you know seen look continue see one, but as EBITDA financially think with in

urban regional terms been expansion, and selective we acquisitions we're additional have the the we us absolutely very excited I perspective very quite certainly there's it, think as in we think also over and know from with - you the as financially, I both time, we about North destination believe the think to our that - question other in for network resorts think I America, that be So as and opportunities very, we've to of at clear look that that. both resorts

we're obviously to numbers, very continuing ability North continue going to look of the we're what opportunities not targeted example as specific so America the to it in And find but relates to that being internationally. we'll course, I we universe and be attractive any targets in disclose specific Seven another our of also way, see or is to Springs think

David Katz

when that quick you you with your on that $XXX at at guess done sort would cancel as two, speaking past and assume if on spend follow-up million, you program accelerated CapEx know I may Understood a it and qualitatively that's that incremental know, fair out you of to your is the in returns the with really I'm are probably your what I least year what normal know normally is cutbacks? you've you getting consistent three what better than see there, year

Michael Barkin

on our the I guidance higher do to we’ve to held return mean, you Yes, growth in capital. I company. would seen specific lift providing But particular a know capital. not really returns think you've next in that broader that, capital you on ourselves we're say on past, incremental know, spend as upgrades Certainly, in the the relative to we're the the of year with the focused I on that coming in the ties

of expect As the overall at the you we talked holder, had expansion I we've you about, pass outlook in our growing which look demand and the visitation right highlighted. of we've terms know, success Kirsten the that in what think that

course, business. prioritize think as we -- projects of across the How so the return holistically deliver for we right. ultimately we highest how And certainly see it we will and the that return deliver the we do business do the

that in certainly ourselves we're outlooks to return holding but ourselves profiles the financial to specific relative So, itself, similar past. providing held capital to we've not the

Operator

Stifel. the with to Jeff go of Stantial we Next, line

Your open. line is

Jeffrey Stantial

everyone. our commentary on bookings indicators. all appreciate demand Good I and afternoon, Thanks the lodging for for questions. Kirsten, taking

the weeks, any the Christmas Just news all week specifically holidays, volatility if can bookings you curious, coming have past you that's noticed two out look flow Omicron. or in for given the at the

Kirsten Lynch

for our seen this at the one right can't travel changes indicators other what as well. we've we that Hi, demand, any material question, I those of leisure But now, have I seen see thanks being changes is sales report pass strong any not time.

Jeffrey Stantial

follow-up, the to cost the my drill Okay, of wanted to very labor equation. on I helpful. side And then as

recently One the after raise your your that does given question did expect $XX already resorts, that’s wage in back season so, their thanks. or them continued still how labor is rate into market pressure inflationary the into that for November into and peak already the me, back that if again in October, minimum right the set period guidance, all baked it hiring July, you peers September, that hiking trended destination of XX we should feel

Kirsten Lynch

Yes, and did wage July, that feel Thanks. we we significant in announce about wage a increase good increase.

time, are focused just how that approach needed sector the priority, the We travel for immune overall what our retention, incredibly is we we’re delivering and the focused industry very and for at and our our prioritize the and guest upcoming season. not facing. is challenges some we’re of allocation top certainly of labor and Staffing hiring, on leisure are to in resources this on point this experience

Operator

Next, go Please we of the Ryan line to go Blair. William ahead. Sundby with

Ryan Sundby

my taking Hi for question. thanks

points the key Going back this back from that? would viewing otherwise it's passes price driving thoughts know, any discount? of kind with this just Or on unattainable have like guest money, What's being and these that or to on to the what's is increased been year just higher house discount either You kind comment the hear that frequency. price to takeaway of before spend? playing a guess

Kirsten Lynch

back responses with expectations that there Well, to discount. on be they we in back and some there say did originally could what specific this when can I terms assume decided it I spend going would I trade guests as from that think exactly up don't has of in why minds say get And to back some we think our associated announced our definitively you have the exceeded multiple up. -- don't We are I psychology March. I -- on hypotheses have in there trade guest don't there. the our would was that to is why.

and was with pleased are about our in is, thing most by really is you core our the those know, led unit passes which the the Epic Epic price portfolio. discount, growth think I'm Local, absolute our expensive I

with a Day So and and think, was an of discount the the outdoors riding We of strong the absolute back products put rationale as of they're come what excitement people skiing maybe the is our right some really, entry could some for trade strong the the percentage that not of definitively to frequency in than great sort that growth and to which to value want in get growth signal I pass in is I season. maybe feeling guests the say those a more. unit enthusiasm into the is proposition so up advanced to gives commitment a saw Epic well, level which and their the Pass enjoy now, access other and customization. our a willing own level of But and occur and

Ryan Sundby

of committee Got year? or a season in the behind of the understanding your our just you period help can color. full initial expectations? important how you a then preholiday Just year on here start of get it. flow great put contribution better us how That's kind the is And understand to terms trying

Kirsten Lynch

Yes.

for revenue a a in and kinds this small good And of is first us. we've season, experienced news. early I we part is of in has resulted period Kirkwood the these been our -- primary have the openings relatively in Heavenly is which your Saturday, and very conditions season this season ski very earnings portion are not of earlier the announced front Tahoe just conditions. It in today pleased actually, opening is that call, terrain. delayed of time the early As mentioned limited our and still some I'm really the

Operator

session. This question-and-answer our concludes

We closing will remarks. return Lynch to for Kirsten

Kirsten Lynch

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

Operator

your today's participation. you. We This concludes thank teleconference. for you Thank

You your may time. disconnect lines at this

Vail Resorts (MTN) 10 Dec 212022 Q1 Earnings call transcript