Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to the Vail Resorts Fiscal 2023 Second Quarter Earnings Call. Today's conference is being recorded. Currently, all callers have been placed in a listen-only mode and following management's prepared remarks, the call will be opened up for your questions. [Operator Instructions]

I will now turn the call over to Kirsten Lynch, Chief Executive Officer of Vail Resorts.

begin. may You

Kirsten Lynch

recently afternoon, quarter Good have to fiscal today, our Korch, Financial as Thank Officer. conference everyone. call. second who call the earnings me to Vail I XXXX Resorts joining Chief you. on Welcome rejoined am Angela pleased

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

this Forward-looking call statements in unfold. afternoon, today, we our along as update made duty our press March this events release them on no XXXX, actual and issued undertake remarks of X, with are to as

financial which also and along were our Form section www.vailresorts.com. of include of the filed with our Today's Reconciliations website this in at provided on SEC the non-GAAP these with release, included are are remarks with press afternoon available Relations XX-Q tables on also measures. Investor quarterly report our measures certain the

scores. we resorts, fiscal by improved said, strong to which staffing experience our are satisfaction a our operations turn employee delivered to scores, pleased quarter greatly in made guest return and normal second resorts in with that our strong at Overall, So with results. investments let's the the satisfaction our enabled XXXX being we supported guest employees, levels and and

establish investments growth. foundation school, and dining, ancillary shortages the strong commitment of including in future rental constrained Our to staffing these prior for guest enhancing strong the our We ski ancillary when compared believe staffing businesses. experience to retail, period, a businesses, and and experienced year growth capacity

and resort to rebound Whistler Colorado, to easing resorts period. Utah strong the a contributed prior season conditions openings of in visitation, local and the early at Blackcomb destination Tahoe Improved drove relative restrictions travel Canada strong at in early and year select enabled our visitation

period, visitation release, disruptions resorts our at by severe disruptions metrics negatively impacted January travel our in well airline Tahoe was holiday U.S. weather our discussed As as western as peak the resorts. at during

and the Mid-Atlantic In to open of resorts, to results our Tahoe, for significant days, were operating by grooming activity our quarter. costs. which terrain XX resort offerings operating remainder our reduced continued snowmaking, U.S. including impacted labor the across ability increased Northeast availability and fully Across quarter as which throughout resorts region weather abnormal resorts, the and collectively negatively Midwest, limit impact to the demand related significantly and Eastern and our referred snowstorms costs, impacted access conditions,

In particular, did post-holiday only was incorporated results return of as period. terrain XX% XX% Eastern at conditions that the in resorts with not below U.S. significantly January after the period, holidays in normal and open to guidance, lifts our to during having as were our expectations

which to increased ride and to lodging, operations and drive mountain our relative spending. important and helped school, of ancillary prior levels rental experiences restaurants, ski as resorts return deliver staffing our continued to as Compared The quarter XX% increased of approximately the lines and significant net business we ancillary revenue second net our in outperform second quarter the of recent record employees and retail enabling our year, drive such the revenue resort guest fiscal locations, a of visitation normal to year. resort helped investment prior achieved significantly XXXX,

significant associated operational COVID-XX. rebounded expectations for dining revenue restrictions the guest quarter though years to of following pre-COVID-XX period, as fully has not prior underperformed year with levels two from the Dining strongly behavior returned

season are exceeded the to expanded conditions employee levels satisfaction significant this Resort at terrain early our increased well which delivering approximately investment experience, resorts, we reported weather as staffing the operating pleased strong the openings have guest year, a Western Eastern the prior guest from U.S. impacted ensure our our from scores, experience, costs and and abnormal resorts. in EBITDA as at X% pre-COVID-XX and with as normalized our we decreased was by improvement at profitability guest levels We are in resorts. achieved destination

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

Angela Korch

afternoon, Thanks, Kirsten, be and today. back is with be with good and everyone. great It Resorts you speaking to to Vail

of quarter, XXXX, $XXX.X For to the the million, attributable which was diluted in $XXX.X the in second quarter $X.XX was prior income or net reported million compared per or to resort reported per EBITDA diluted $X.XX year. compares period million the prior $XXX.X of the EBITDA share. second Resorts year of fiscal Vail $XXX.X to million, share, Resort fiscal in same

Turning to our season-to-date metrics.

Laurel through from For destination mountain year resorts Sunday, season in data the metrics is Australian and the X, periods excluding in X, the period results of in Mountain March XXXX. the areas and prior for reported Andermatt-Sedrun and beginning of results of ski American data period and to periods. company's both to end fiscal The compared quarter release adjustments. the ski Seven regional through and season Valley ski the interim period is The the both areas, Springs, North are subject including March ski mentioned XXXX the Hidden this review and

growth revenue year allocated continued the fiscal to lift XXXX Season-to-date, ticket year pass total season-to-date the X.X% applicable up was fiscal visitation season. season in including skier up of We XXXX for are portion compared and were Season-to-date each X.X% the period. total period. the revenue period, our pleased throughout season-to-date with visits revenue, to compared growth ancillary an

was at and XX.X%. negatively days, cold Eastern Dining revenue ski our increased results compared impacted operating resorts ski to impacted up costs. by up area And unseasonably store of results to the season-to-date For operating U.S. and up warm resort Season-to-date be period. ancillary was North school XX.X% periods locations and both revenue year retail demand, weather, American our rental for XX.X%. continued prior disrupted extreme which and was

events, planned with days partial for full of days by negatively operating over the including XXXX/XXXX XX% extreme many were season or U.S. resorts, resort Across our ski Eastern closures. weather impacted

At the the relative has In Rockies, open resorts, impact ability resort to to access expectations season period visitation has prior our improve rebound continues limited to progressed past by significant international, travel the strong including to our the as driven continued year our Whistler see destination relative Canada. a Tahoe resorts. to destination in holiday the peak snowstorms Blackcomb to and period. fully continued in visitation, easing restrictions of

growth locations, and helped ancillary staffing which to the return school, ride operations lodging, continued ancillary our that of as increased year to period, ski by spending. important resorts Our a and driven strong deliver businesses restaurants, of over experiences our drive levels enabled mountain such guest see prior retail and rental normal

to turning XXXX. fiscal outlook our Now for

the season-to-date While we Tahoe our we fiscal destination for the are for our western disruptions resorts primarily our guidance at U.S. guests significant continue to North lowering snowstorm to expect strong at Eastern demand throughout resorts well remainder due the weather continued from as of American period, the XXXX, resorts. our significant our as season, at disruptions

$XX increased costs. impacted of we margin disruptions in an both portion the U.S. approximately the with weather also provided XX to operating XXXX, resorts, peak by East of Tahoe period. expectations September Eastern visitation contribution fiscal pass our allocated excluding from The and the in XXXX in For the operating and after underperformance days expect and holiday occurring revenue, majority million, underperform product initial

visits resorts, our U.S. particularly advance in Our resorts of to further proportion our have destination northeast advance year western relative the this resolve financial in lower product, significantly Eastern markets. skier guests into products strengthen to commitment to an and our continue a results drive commitment

of to greater lowering our and be stability for to the guidance which company value our an we disappointed company provide are our financial was consumer commitment we mitigated the by While to disruptions fiscal the much and greatly incredible know advance weather travel that the and communities. impact to products, year,

the now and fiscal $XXX fiscal for $XXX to net for range. million. margin weather a attributable XXXX/XXXX ski or We guidance the to American associated COVID-XX ski current of conditions, updated XXXX resort assumes for impacts the between no XXXX approximately of We normal be and and resort Australian environment, for the between EBITDA season. be European to and year $XXX economic to with be remainder season Vail XX.X%, fiscal million XXXX the estimate XXXX midpoint expect reported for using million, million the XXXX $XXX EBITDA material continuation outlook and of North income fiscal The Resorts

movements that continues be XXXX on guidance, EBITDA. travel resort rates impact outlined September to there exchange the $X and original uncertainty estimate in the the exchange result The to as note current is outlook may our we in XXXX guidance to a important that rates around Relative guidance behavior. assumes economic reported and million for fiscal It negative of will have in approximately release. impact earnings consumer our

remains balance strong. Our sheet

hand, of as availability with of availability billion $X.X revolver our U.S. million $XXX $X.X was revolver of under revolver cash availability Our of XX, total and million $XXX approximately cash facility. on Canadian January billion, XXXX and

As debt confident January the of our total business XX, free We trailing the of XX XXXX, remain months and in stability X.Xx EBITDA. flow was cash underlying reported generation net strong model.

announce share, we will of Resorts' in be Board The XX, cash of a payable our X% quarterly XXXX. $X.XX these representing of common our dynamics, March increase to April as XXXX Given to record an are that shareholders quarterly declared XX, dividend per of pleased dividend Vail Directors stock on on dividend.

shares, by and the X.X for million has intend we our to while Directors in on of capital be Board million long-term of shares share to returning our Additionally, value to authorization X.X focusing always increased shareholders shares. aggressive approximately repurchases our

prioritizing capacity will strategic shareholders expanding to be and returning programs. experience, We capital employee opportunities dividend our our quarterly capital remain in our of repurchase stewards our disciplined to capital and committed guest to projects, share and through high-return and acquisition continue investments

back to call the over turn I'll Kirsten. Now

Kirsten Lynch

terrain to at guest and increasing continue prioritize capacity dedicated resorts, remain an the reinvesting expansion exceptional our and We will food to through in and experience Angela. you, lift, projects. Thank including beverage delivering experience consistently

Park to investments approximately announced, previously million investments capital Andermatt-Sedrun. million, associated with to expects the $X of $XX investments million one-time $XXX invest of to with growth reimbursable projects, related excluding and $XXX deferred integration at company insurance million associated activities, Keystone capital and the City recoveries, As

we Keystone, received At U.S.

a uphill replace Peak the increase this area plan lift. a The plan to well make as from more and lift-served terrain approvals complete At the capacity fixed-grip the high in a the new terrain Breckenridge, speed improvements, speed the beginner addition Service Bergman two-person high we of significant base, and lift enhance X-Chair transformational teaching Bowl, includes as existing XXX accessible. transport to four-person experience investment carpet base experience children's new popular plan increasing project beginner to from including the six-person new area. and to upgrade lift-served expansion by base X and with to acres the Forest terrain

lift, four-person Stevens increase the is time At which for experience. XXXX/XXXX four-person capacity improve planning to new to season. Pass, guest to Chair we high fixed-grip guests' Summit two-person the uphill replace fixed-grip reduce in with regulatory replace lift American at be we lift Attitash, new currently subject with and longest the a Triple three-person projects capacity and At plan are designed Kehr's to to the time a lift are lift completed are on resort. to and winter These planned approvals the North out-of-base speed

expand by to Sunapee, spaces plans and across guest than company parking Liberty the the Heavenly, improve Mount Roundtop XXX experience. more to Additionally,

new lift our Cream informed labor both business is Doppelmayr planning speed company subject to eight-person calendar in Blackcomb, this constraints. plan lifts XXXX. Resorts lift guests final XXXX, the will which year enhance speed to Canada and resource Fitzsimmons high to experience high certain rental given summer replace deferred a XXXX, plan four-person to high calendar replace their four-person Jersey in to gear now Whistler costs to Jersey year new to for Cream in lift calendar with the cannot accelerate investments offset a permitting, The with the speed lift install We lift high has the At six-person speed that Vail related into year they the due installation. we

ticket lift The loaded cards, phone in hands U.S. visiting need phone Low XXXX/XXXX will receive store for lift carrying their on hands-free, guests Once resorts on guests waiting product can and store and season plastic at planning mail. the free ski its to Bluetooth their pass Energy get the in or the that to allow eliminating is their technology introduce or directly their pocket, pass lift new lifts a in their scan at for company or ticket the line phones, window scanned using technology. ticket the to

company's chips, enhancement and the to of RFID commitment will addition pass significant the to waste as experience, plastic reduce lift tickets, guest of cards printing this products also zero. and In part technology a the ultimately for of

any future their For pass who to provide ticket. guests, the in the transition, not or to available to cannot years first year ensure store will a all cards to be plastic do phone and cards of will smooth want use launch, lift plastic or company to product their guests

excited We other interactive announce experience. our trail are and relevant predictive times, support accompany to lift Epic the of technology My personalized Mobile Pass the app, our guest will will to new line and also include wait maps, information launch stats, real-time which and

The also to scalable company technology conversion. messages target e-commerce improve engagement personalize our to improve our is outreach, network-wide in and enhance that and investing guest will our ability analytics, guest tools

will the addition step the in which at invested experience capital capital high-impact that are Andermatt-Sedrun in funded of in our million we as investment the of to million the multi-year approximately growth enhance In on $XX investments, planning a strategic be mountain, purchase to CHFXXX these invest initial an part stake was by as to majority guest growth Andermatt-Sedrun. projects plan

the part Sedrun's and are to As snowmaking investments, expand calendar XXXX of planning we enhance experience. year guest upgrade the to

on-mountain and completed of replacement ahead addition, renovations investments and the In of These Valtgeva plan to regulatory the are to dining to to we European with Natschen the expected the and season XXXX/XXXX experience subject be remain Milez ski restaurants restaurant. approvals. enhance

of to investments for $X Keystone $XX of million deferred capital approximately XXXX and investments $X plan our capital with one-time calendar million to total $XX City million insurance associated year growth reimbursable associated at recoveries, investments million is $XXX be related the activities, with integration of and Andermatt-Sedrun, of $XXX expected to million Including Park million. projects, capital

Turning to pass sales.

our our which our sales provides Day range excited days at with We for and to including pass Epic of a of owned season one launch to are XXXX/XXXX the access commitment Pass, seven wide at advance products XX any season provide and access products, the resort unlimited every access day except partner and Telluride. required no to resorts resorts, can additional resorts, with which to Pass operated Epic of unlimited reservations

access XXXX/XXXX European resort, Andermatt-Sedrun across add excited the the partner spanning of Disentis. are and long-term ski the ski Switzerland to largest to season, holders as pass we For a in Disentis area heart providing

our out next to as price our guests. season's holders new program. commitment we value our to pleased prices represent upgrades roll On the and back and are We welcome to X% over advance to more and to the guests we technology average, to have look pass program season, launch of welcoming a pass strong continue prior forward infrastructure benefits increased the our

a for our I state in to hard our In for passion, closing, of been a would to like look at as to the for all thank particularly employees especially welcoming mission center a thank success. of forward of as result employees region. declared priority. of and to of commitment region our our our and all company I continues storms employees A top upcoming our create guests. And the to guests our to resorts creating experience want the all mountain guest frontline lifetime of Tahoe the employees spring. We this be safety emergency expected guests our work our and The their an experience has the that of our team is and a Tahoe lies

this time, I be At ready answer for and Operator, to we Angela are questions. your questions. now happy will

Operator

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

Shaun Kelley

and Kirsten Angela. Hi, Hi. everyone. Good afternoon,

Kirsten Lynch

Shaun. Hi,

Shaun Kelley

Just pretty maybe was to environment. a lead off challenging here, obviously operating it

able there reason I'd just you ongoing One, to there northeast, read The do – or because in would love seen not to like headlines. Lake the you quantify it's haven't? we the So It some two seems could that Or areas be Tahoe? willing in that disruption that all on briefly. dramatic. is a of that hit material? pretty we've maybe Is is and but environment Tahoe, the were

of a Kirsten, to on the some and organization operations. And of then done adjust right what's executive sort the you was the if could relates you secondarily, little front that levels on volume to comment There to the bit now? seeing business being we're as in just comment. it change just that Could the maybe a

Kirsten Lynch

and worse. we are The through there lot region, environment and incredibly There have spring noted, comments. things a we about this it you your and Appreciate are are that impacts challenging expected very disappointed once a Shaun. storms pleased in us believe season to set of majority cycle, that a Thanks, operating as the guidance from we improve that are and to holiday peak we are in it the our Tahoe in area occurred east in because get Tahoe factored as the limits of how operations well. of the XX and Tahoe. got region up the our by as that particular We quantified we into well to the east we after season as and resorts – is it in storms region actually of that the instead impacts strong had those significant

As it can sure… operations relates just – you the repeat your second Shaun, make to to question, and

Shaun Kelley

Bill Operating mean, was there. what priorities the of what what Yes. volumes some on kind and in be Rock business obviously maybe we was will the the adjust of change promoted the Maybe I right I Chief as that changed. front the now? operating believe Officer to up are just prompted

Kirsten Lynch

Yes.

Division, leadership is future So me about right the decision this Mountain regarding for President the the of Division. to of the Mountain the

an is three operations future. Mountain brings the expertise division mountain the incredibly leaders strong the a and with right for incredible grateful James industry, and developing businesses, almost the his incredibly many across experience impact of in for future that the are the Division many and over leader Bill company, experience years is different of take We Rock Bill and the and contributions into leader. he's had he's significant been and decades including to

that very May are move X. effective excited we into Bill to So role have

Shaun Kelley

very much. Thank you

Kirsten Lynch

Thanks, Shaun.

Operator

of Ben from Chaiken is question Suisse. next Credit Our

Your line is open.

Benjamin Chaiken

it's Hey. How going?

Kirsten Lynch

Hi, Ben.

Benjamin Chaiken

guess different this Shaun's I parts question moving lot Hey. way. trying year. There's a a operationally of

lighter back You that the and of adding Colorado, discussed relative obviously. is January $XX or East And Tahoe a then contribution weather have – destination, delta East weaker update poor January lighter the expected, after simplistically, margin of $XX million was guide guess million you originally expected impact, the West if which of Coast to Utah, sense? Coast the was Tahoe, Coast Coast call I it makes snowfall, remainder post-holiday. being than in the impact East than out

Kirsten Lynch

is make the biggest adjustment, that. of the of think we Tahoe. the the current East, remainder that of guidance in is reduction we're majority those driver always FX that. the of The part impact guidance to well can The of Yes. looking The the we of experienced the Tahoe. we the indicators and that the as cost our quantified it are significant. can the which already we decrease resort driver to metrics being I most And a that demand it combination is that January impacts. and significant guidance sure you is that is just from why all But as East into factored impacts the of all wanted think at course, every that of it's next that But impact We so you and interpret I noted. interpret quantify

Benjamin Chaiken

of of you that investments. years we growth of you in is spend theoretical the eight this out then to I and terms you dig mentioned prepared broad be And you will year a any can great. provide in better helpful. season out there color guys? for full in then and as analyze. between? Now think both two day benefits somewhere very capturing a Like are strokes be pass related, Are That's remarks, ancillary XX, next area what penetrated have TAM? offered an how XX, Understood. might few Can gear there That of holder you some your rental

Kirsten Lynch

X we that built more that we've with We that foundation of and believe a we've pass for ancillary opportunities. we incredible opportunity foundation an big – that would ancillary believe we our the at as a the and million I you things Conference. holders we in anticipate more some detail haven't our that of those do that believe is able over know, network in us created past. one do Investor's to been about us upcoming is to enables talk will And

Benjamin Chaiken

that I guess And can the then we investments Is that? on color more then, Okay. or available now? do rental gear

Kirsten Lynch

We're discuss business, anything not that but in investing talk ancillary, on about want a we conference. in is an and else do at anything there more we're ready on we'll There big that there. the to believe that that a depth the share landscape. completely opportunity specific players to are as it's share lot we on you there's particular, gear competitive Investor continually and in a in that with very of market And opportunity. agree for growth rental But

Benjamin Chaiken

Okay. much. Thank appreciate you I very it.

Kirsten Lynch

Ben. Thanks,

Operator

Bank. question Woronka is next Our Deutsche from Chris of

open. Your line is

Chris Woronka

afternoon, Good Hi. everyone.

is think the Coast one a the do that are a you more East the was product. use to to there to into try to trying I or to function commitment is typically more comments, of do a So that of way How of mention that? to folks into those mean, just get do pass? folks get that of right, prepared – another price in you things to go an I going advanced have

Kirsten Lynch

Thanks our other that on for tickets and to relative for is unique question, East lift it geographies. The quite over-indexes the Chris. us

bit the the we've East when a our why large of a limitations on tickets. reliance on still operations that that an we on transformed part we business, progress that occurs there's Rockies where a saw in and and different, reason significant because think our from lift in impact percentage West is of and of impact have visitation that tickets, in Region lift the the resorts to about is made advance So really a our commitment terms our little pass. of you building The pass a

We that us company. big opportunity in stability and for terms the on a it for we focused believe are is of very it

already into products and our in is be benefits as the really launched already It is have strategy that the the ticket advanced on particular, many is why from commitment and use so the – a we product. pass guests In are convey here the East to exactly and exactly by happened our And with marketplace, what why a into East to into lift have pass. the moving focused to targeted moving data we pricing of goal targeted, critical. of an segmented is this of way, been have

value have been has northeast a market that a of in the pass We years. for couple

area. also for We is time Pass we East in more Midwest the specifically visits have And resorts that that an tickets lift – goal and to pass on at the Day pass to tailored and of And Epic same like those for out by continue is stability company grow those moving local the the that Mid-Atlantic our into create situations the East. that focused this. business, really for

I much could that have been company what the we're the late it has with openings, the have – early could in significance certainly the dealing that significance on with than been a in terms closures, dealing teams actually have guidance think limited announcing. what East significant this terrain, more they had of our of were impact of reduction

have so very that stability the and more we done to there. we there's with we're And believe that pleased be

Chris Woronka

Okay. Thanks. Super all with detail. helpful the

market us a pressure you a just or give where whether year, regard are a initiatives your in employee housing housing? are there you this less improving about maybe sounds investments. of on employee the conditions lot as you had year, like rundown quick and talked not update follow-up and guys and can It that Just there's last this but in

Kirsten Lynch

Absolutely.

to gotten communities to our challenge our fully a and continually that in obviously what it continually creating It our wages and so be mountain challenge, not, us a partnerships continues fully not are situation. I has be and communities to on for always employees or great staffed prevent in And a that this getting in time was to from really have the see thrilled a we you'll But land focused housing our benefits on a housing building it affordable year. getting is that looking challenge. long us been and is staffed. for projects. resulted in and We we whether think investments is from did it made opportunities, us Thankfully mountain own enable it will staffing

a from focus one are just we this of for not in always City going it something and since continual have ever projects, we or take that that but the Obviously to be is company. in that this couple mountain foot some this various So at stages have be to prevents this year we the staffed? got Is approvals came of Mountain, a challenge that getting not the to of such better that construction. needs fully Park online mean to process and a us make staffed huge getting we it because off does trying gas year, our our communities. And

Chris Woronka

Kirsten. Thanks, helpful. Very Okay.

Operator

question from Paribas. Vasilescu next Our is Laurent BNP of

Laurent Vasilescu

investments high speed Chair Good afternoon. in Kirsten, Thank you about the very much for taking my lift. question. it's great hear to the

long-term make have we ski might and been do this how capabilities the to as headwind? think the years. in think some potentially you offset Coast about East made investments it was disruptive in this snowmaking you just with know, you But season investments these over to more warm season, As the need

Kirsten Lynch

Yes.

that's will think something that's Laurent. question, And I assessing. that looking be great and I we absolutely think a at

get to areas reliant are And to cases order could virtually need this team cold high resorts in in do region snowmaking These related investments And as have what grouping temperatures We additional and actually as XXX% in efficiency they mountain looking need in some on to the incredible and and early particular East would East significant say is cold future. in some will temperatures. snowmaking, enough in make was grass where do impact in East temperatures. what for the cold you with some snowmaking the our to January. the make to of year situation operations this I this snow. the at not we happened be we're this happened down

So the pass. and yes, into and lift snowmaking on of continually a network pass that the out tickets on people and we've created moving

Laurent Vasilescu

you that with couple that I that technology hands-free that hands-free the the And XG maybe is T-Mobile good partnership capability, to maybe segue future ago, for or the to saw on rollout Great. rollout to supporting pass. weeks a pass is tied XG. Is front? a capabilities a announced

Kirsten Lynch

their We a partnership have we part experience directly to lifetime, related be are excited with The for of that an created the a to innovation very to it. very enthusiasm support a and of and they're we and do partnership are is and launching. not T-Mobile have proud in what creating

that ongoing make actually to overall find they to the as to years. it ways and know that I experience Although partners strong and guest in year want support next

Laurent Vasilescu

much you for Thank helpful. taking my Very very questions.

Operator

Katz question Our Jefferies. is from of next David

Your line is open.

David Katz

Thanks for minute was visits? just for doing pressure. segment where it skier about Good particularly the in But areas particular how can in think about terms are please my you talk And question. markets talk and those you strong. of in some Can taking morning. And talked Colorado about areas, I visitation? you a

Kirsten Lynch

Yes.

the to the Easter we strong vacations Rockies so meaning I set fantastic. a occurring I that that actually be over is the – think we The think timing for the Resorts, Colorado spring, spring in break. that and with conditions of very we're believe results up continue are pleased are or to seeing segment conducive

set we're up think spot. in So a I good

and place Blackcomb. we're that strong been The is Whistler with has really other very pleased

a should set at have of rest a of continue momentum, the return destination a Whistler visitation be support Blackcomb. indicators return incredible Whistler season Blackcomb, strong We visitation, to international for all up that very and seen to of of strong trends we and

David Katz

Understood. last talked get those unexpected one things. we quick ask the I driver the Analyst Am the just side year Meeting, – really an increases, and treat about to cost at It's separate are area on we're of our it costs we're XXX sounds a right? follow-up? that like should some to of wanted trying arms as beyond and around I permitted we

Kirsten Lynch

as made our investment We, not Yes. very changed employees. you and And we $XXX a have know, staffing deliberate wages. in in investment. that We million invested

the well cost fully Tahoe and form in that. or investment. directly severe do the are related We or impact business with can in of that our committed labor weather the as disruptions related the in see limits severe of We the more as to more snowmaking, drive impacts constraints other because though when weather grooming up to associated impacts it costs East the operations

would put We dramatically abnormal. is always I that and have budget and something normal not So for we of would what for. Tahoe the into that say planning category been I were East

David Katz

my insights Understood. taking thanks for and questions. Appreciate the

Kirsten Lynch

Thanks, David.

Operator

is Our Brandt next of Montour question Barclays. from

Your open. line is

Brandt Montour

Hey, for taking question. Thanks the everybody.

one on fair just X.X% trying first, So this. reported another Is up to skier low-teens. basis, Andermatt my visits. of I same-store This growth. on a I'm excluding think it But about arms get it's big and the how of should Andermatt and to that since assume that's gap think that of on rest – the there? so a it’s is much we around sort – of pretty season how

Kirsten Lynch

material a not on momentum we the that the see impacts I see impact impacts would but drivers negative on then constrained of Tahoe has our demand with closures East Andermatt at see that resorts. and Whistler that the demand biggest visitation visit the do those skier the number faced full-year company. are the for and this we say as that the challenging has resort some the conditions you on year, operations and Blackcomb, that Rockies, and from

Brandt Montour

back And Okay, this any but that the buyback that. buyback program, didn't then noticed great. you program, quarter. upped in you you for buy Thank stock the guys we

So quarter? I you're of us you more – think what or out help of and buybacks? how opportunistic what And kept more the programmatic market thinking about guess this are kind about of thinking you something

Angela Korch

that growth shareholders acquisitions. There's the high strategic one more part share the in outlook. then return that And share get we're indicated prioritize cash intend and to is Thanks, returning of how capital did approach excess how aggressive and Brandt. repurchase really shows We to are We allocation. authorization capital to in of to to of the investing we the we people in projects, that’s programs this the kind business both the of our increase change committed our repurchase an no in we and from dividend and disciplined authorization the and the be Board our believe authorization. stability did authorization always long-term share with still long-term increase our increase in kind

Brandt Montour

Okay. so Thanks much.

Operator

Patrick Our question next is of Truist. Scholes from

is line Your open.

Patrick Scholes

afternoon, Good everyone. Hey.

Kirsten Lynch

Hi, Patrick.

Patrick Scholes

that hiring see for regard, you attention of I less Colorado. and you an next was been Colorado sort can J-X media hiring There's in do social that situation? forward, J-Xs in that, based wonder hours some you. about of in Thank the on media touch especially negative over both print if in going just And Hi. year?

Kirsten Lynch

about of flexing, company business, of our less very be and goal in helping that based some Patrick. The XX% meet we expectations have demand, operate represent normal and that's to of on on Thanks, is that. in on And are do operators employees than that as our the of of J-Xs cost that Vail of not based and for week adjusting. we may and on demand. business always needs the try every And our way on It's that flex be address always not how the our do I on the We average some time of as based responsibility the employees a to disciplined the understand and them the year. running guarantee and ski our of them workforce we hours is Resorts. at clear, always a of support be company time the and on And J-X But constantly target. hours we're year. adjusting the resorts we to this based we operations business. this normal. based adjust flexing

Patrick Scholes

That's it. you. Thank Okay.

Kirsten Lynch

Thanks, Patrick.

Operator

JPMorgan. of next Sander Omer question is from Our

Omer Sander

the relative days of for expectation skier for initial your you visitation I Thanks standpoint accessible. seeing talk where Hey, specifically can Can Local passes? your some versus the you about question. hoping and open to Kirsten, from on resorts Angela. talk taking what day Epic Epic was my are and a just you're

Kirsten Lynch

early passes, because led macro to that up cycle. utilization well able disclose all people challenging time of poor that weren't What had as level very to feel conditions did The we we It would of into will be we that. terms In selling we about ski why up I the utilization passes is a reason going get obvious during say utilization a sets early and our the great us period overall next certainly where had way out season season Christmas. on snow and pass details. some most not up up year is the of utilization last don't the is

very that enjoying getting this like the use it pleased they're year, feel on level with they're the our pass, so macro that out I'm the resorts. with what see matters we pass out And see our a and I of utilization getting that and generally holders

we a that pass sales for great So as in our puts I into head think position us year. next

Omer Sander

Thank Okay. you.

Operator

is question Blair. of next William Our Ryan from Sundby

Ryan Sundby

Hey. of behavior you to as Thanks guest for to the on why more on about wanted pre-pandemic questions comments all your a here. to returned there levels. is of Any geographic across seeing there think a color that? hasn't touch you're lines? versus specific expectations more this or I business And underperforming dining some somewhat lag of other is Or resorts? kind the piece your occurring resort

Kirsten Lynch

Yes.

back prior able to of that just to more line back way can back quite the and we “training” bring those it It's guests other I incredibly think our to find consumer and on-mountain and we confident we resorts. to is was. get them find our am it in behavior of completely Ryan guests the that guests where to get on-mountain our do season that of sort do years spent we dining that need dining this restrictions that that confident all there's of be significant undo way in we a two go growth didn't is in and basically just to I will training of sort Our on-mountain, lagging is year, that. getting restrictions there. actually strong dining all and I'm right, into predominantly, back years the options work other And our but The to to alternatives. versus basically putting for two dining business

Ryan Sundby

makes it. pass Got because I guess of that And in revenue the closures. That on follow-up of my sense. resort forward the some million as was then $XX pulled

does modeling Or back half? QX we to is a the tied costs any Just that fully from that kind it or and a to then that think standpoint, dropping about reverse straight should in EBITDA are of pass there revenue?

Angela Korch

QX year in the openings. revenue pass impact the some QX year in movement The things. prior year two moving Yes. and from into relates the QX days Ryan. of more then that of out to we the this last the operating and QX of Thanks, into disclosed from One early

variable cost of we impact is it's the so million that some associated it, combined and with the $XX And very that that but disclosed has minor.

Ryan Sundby

you. Okay. Great. Thank

Operator

from Stantial is Stifel. Our of Jeff next question

Jackson Gibb

is This Yes. Jackson there. for on Hi, Gibb Jeff.

bit a reason to a us third it and the So like the was Are it dividend this early To I to wanted on raise is averages? not, than and little talk planning if again dividend the raise historically. it's a about raise. smaller there looks quarter been bit why you little quarter historical below any has

Angela Korch

is would we normally dividend. This when Yes. quarterly evaluate the

then where is share per $X.XX were had it, COVID from the when in COVID. partial an prior been dividend we level. it. it actually the during was it done we so with suspended we X% a And We And and at had the increase reinstated at historically consistent when level came that we've to

have with is And what actually consistent we done. so it

Jackson Gibb

understood. I more. Okay, Thank then, could one if you. And

window a so, more we into color passing season? inflation? advanced and drive mentioned bird Should to pattern a on next prepared X% the like you On an through looks your wanted get price It's increase as expect pricing? of years conversion was similar we if And ahead higher than more increase trying in the about season. to should this patterns think bit of Epic early balancing last and Pass, how commitment pricing like pricing ticket Just your of some elasticity remarks. pre-COVID

Kirsten Lynch

Yes.

also guests, achieve market our and about month doing the our single factoring always And are as the would price back, the we When into look priced But our have, is the and what with I passes. and experience are price what in consistent for their back have what we price of to do We trying we lot dynamics, constantly always business actions pass have is are we – dynamics this data historically business ahead what how say we see well. we're guest in a and make at view to years our and that investments pretty the every the historically right at behavior looking We X% and behavior are as objectives it decisions. pricing that I of is years historically this elasticity. you slightly would look know, guest year what is inflation right you assessing take. priced us you increase

periods consistent there were If taken, of you being it's how but where the with pretty sort time exclude unusual we've a COVID historically of it. actions lot approached

Operator

the for concludes back the like turn now remarks. Q&A over to This call. to Lynch I'd closing call Kirsten portion today's of

Kirsten Lynch

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

Operator

and concludes second quarter today's webcast. call fiscal This Vail XXXX earnings Resorts

You disconnect wonderful time, may line at and a have this day. your

Vail Resorts (MTN) 9 Mar 232023 Q2 Earnings call transcript