MTN - Earnings call 1 2024 | Vail Resorts, Inc.

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Operator

Good afternoon, and welcome to the Vail Resorts Fiscal First Quarter 2024 Earnings Call. Today's conference is being recorded. [Operator Instructions]

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

You may begin.

Kirsten Lynch

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

afternoon on Korch, the me is call Joining Officer. this Angela Financial our Chief

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

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

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

primarily We to for with our expenses which ramp-up quarter, our season due pleased to timing of the expectations activities. the are exceeded results related

following foreign million weather-related well that to $X summer operations for due travel summer and as negative resort fiscal EBITDA demand lower demand lower prior impact expected, rates. results as terrain. America cost inflation, due and compared challenges, from North EBITDA year resorts the prior to $XX our EBITDA current weather-related favorable in challenges year from the record and period, we from As reported normalized million impacted exchange to lower million primarily declined conditions from year $X driven by our Australian mountain

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

American created the the compelling our at demonstrate of experience our our mountain strong We in network of XXXX. the XX% increased guest X, resorts, X, continue experience. X% approximately proposition continually Pass with the in are value North December units period XXXX, commitment invest approximately and through as resort pass the products, product in for sales, our the through year dollars prior which December guest sales pleased to ski season each season the compared of to mountain results to in pass sales and

are applying sales. both Pass of in an by eliminate $X.XX and product of the dollar currency sales Blackcomb Whistler Canadian adjusted impact exchange for foreign rate to U.S. between pass the the dollar periods

North Australian have all million nonrefundable $XXX We skier products and advance American, expect million of to expected in X.X visits, over XX% visits. to revenue the of resorts and which committed season European approximately this over XX our in complementary generate to guests commitment are excluding year, of advanced

in loyalty strong demonstrate pass from in pass particularly with sales The strong among pass holders our North growth sales previously results including previous with markets, who destinations, pass our American and from passes, guests not Northeast. successfully purchased database also renewing unit of in our local holders, but geographies pass across company buy units grew largest in the growth the season. international the did The a and destination

guests the The East. growth of drive Mid-Atlantic, program, stability our challenging advance achieved the Midwest to after conditions of season loyalty last in penetration the business pass and also which highlights our commitment significant in and opportunity

cycle, successfully products. including in in in product the proposition rate our pass pass attracted offerings value period. Pass and segments the continue growth the moderated purchased local by products product frequency product sales the pass as lower major and be Epic grew all -- growth Northeast rate unit regional to September strong who we Day year earlier prior moved selling of relative guests these newer The our XXXX to purchasers growth with across strongest guests guests products products segment as

sales program partially season, the year relative XXXX of Epic coming products. higher-priced and Pass the the the mix pass to into products new benefited offset increase from and by from holders XXXX, prior in price in period, the the growth impact X% to Day the regional relative dollars Pass sales results

Heading XXXX/XXXX especially season, our for committed has European provides economic for of past our during doubled guests, significant into base the and meaningful which North stability American approximately years, the over uncertainty. us, ski X company,

has Rockies seasonal had typical start and warm season. the season. resorts season and variability and in been East date, this conditions for has conditions time to temperatures year, and resorts with Blackcomb have for opened the have Tahoe's particularly limited challenging Whistler to Our early this of our point the snowfall strong more typical with Andermatt-Sedrun experienced in

the for the are prior trends year with consistent levels. season upcoming booking Lodging generally

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

prior the the hire strong employees While season, of and return the rate our to on our mountain from with for winter continuing resorts plans staffing are season. we track by encouraged are

are guests and of all our American guest off significant in as ski kick the investments North We XXXX/XXXX experience. welcome pleased resorts with the to season to European

At expansion includes new project XXX high-speed of lift-served Keystone, by addition this lift. with acres the Bowl, X-person increasing terrain a in transformational Bergman the terrain lift-served

X transport X-person increasing a Peak accessible. experience this popular replace base the and new to upgrades the existing to X-Chair terrain new fixed Breckenridge, children's make capacity high-speed At area carpet includes beginner this a and from uphill the to and more X-person grip base teaching enhancing base experience beginner from lift, including area, the the

this X-person Blackcomb, Whistler high-speed of replacement At a new lift. the X-person with the includes Fitzsimmons high-speed lift

to a X-person capacity lift, with and this Pass, which lift designed the grip experience. improve fixed Stevens guest is X-person out-of-base new includes Chair Kehr's At replacing

Summit lift time capacity lift lift this replacement at the fixed the on a X-person Triple guest of longest uphill includes the resort. Attitash, X-person grip the At increase high-speed and reduce with new to

XXXX/XXXX North piloting the provides introduce gear of Keystone best American the program also during choice, is for but ski Vail, will with cost at lower new Beaver membership gear a Breckenridge and no season, pass company Gear benefits of which Creek, number that Epic holders ownership, The hassle. more limited My a and

they ability have season or with the drop choose ski it, including the day. want day Epic the a and full gear provides its it where with select and most to of models snowboard selection delivered to the members and and popular My want a they for the when latest for off every from -- Gear pickup slopeside them and

name personalized fit to the and recommendations boot Gear be the selection fingertips App. gear ski My best membership In addition insoles snowboards, high-quality Epic fit Gear also members' The brand, skis My will snowboard to will Epic boots entire and at offer with offering from delivery and customized Epic technology. My scanning to through to boot the new

season is and are Gear Park in at for Beaver future Keystone, Mount Epic further the Whistler Blackcomb, expected years. XXXX Vail, Stowe, XXXX, launch officially Crested My winter Creek, expansions City, and Butte, Snow Heavenly, Breckenridge, expected to Okemo Northstar,

ticket for receive cards, allow eliminating The season guests lift a in lift store or plastic also new their introducing at to carrying ticket window ski company the mail. product the is the directly resorts at their the pass on or that need technology XXXX/XXXX to pass phone visiting will lifts waiting or hands-free, ticket for scan its U.S. and

Energy in on pocket usage Bluetooth store to low their phones, technology, get life. is can the in phone impact lift battery a line energy hands-free for scanned loaded and which the minimize Once on their Low phone's guests designed their using

and lift will To this [indiscernible] company part reduce less to efforts also for of or waste enhance guests. look in cards make guest type future strategy available [indiscernible] sustainability use be plastic [indiscernible] phone their any the pass the cards a the guest their to product [indiscernible] store all And experience, will will as ticket. years, company's ultimately of ambition, to

personalized to lift new App, My of Pass Mobile Mobile guest real-time our relevant are launch and We maps, information and support announce wait Epic Tickets, other which experience. line Lift stacks, My predictive excited Gear the to includes Epic the interactive trail and times, also

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

call to discuss financial Crans-Montana Angela turn the would to to Now I our results, over outlook like and acquisition the fiscal XXXX our further announcement.

Angela Korch

good Thanks, Kirsten, afternoon, and everyone.

which are to the season timing our related expenses, performance, we expectations activities. mentioned, primarily our ramp-up due pleased of with to Kirsten first quarter As exceeded

loss was attributable fiscal the for year. Vail the net attributable loss reported $XX.X of to to quarter EBITDA of a compared XXXX loss the of to $XXX.X quarter compared prior Resorts million in of million Vail first to XXXX Net in was loss resort first $XXX.X $XXX year. of for Resorts . million Resort fiscal million EBITDA a prior the

generate balance sheet robust the remains flow. continues business strong, cash to Our and

million $XXX $X.X approximately of million Our hand XX, $XXX credit total and as on across with combined revolver cash agreements. October our of and availability with revolver availability cash billion XXXX, of

was cash dividend on X, EBITDA. XX, total of Vail October XXXX. quarterly December As trailing be XX of per XXXX, will share that The of XX, debt record of common net stock shareholders $X.XX payable to months X.Xx XXXX, as January a of company Resorts our declared reported

During X.X total of at the quarter, the a common average $XXX of shares million. price $XX stock company of approximately repurchased million an approximately for

an capital returning to to intend and committed repurchases. remain opportunistic to We future maintain shareholders to share approach

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

now fiscal to Moving XXXX outlook.

season, Resorts Based continuation at the attributable $XXX indicators environment XXXX time, weather Resort our upcoming $XXX normal Vail September the $XXX the for guidance currency million we reported in to and net current are and economic EBITDA guidance earnings including foreign Given on million release. a our to of incorporated rates, of to exchange income included that the was million $XXX fiscal reaffirming million conditions. assumptions of that

to it strength Heading the continue deliver staffing of Our closing. fiscal as pass season, the to from ski note lift excludes sales, associated successfully we're that the remains XXXX/XXXX is encouraged important products. Crans-Montana, our are on lift American an XXXX pass convert tickets to And to in to expected European guests offset though outstanding track guidance sales we into that to by partially reduced growth and pass subject levels impact our which tickets experience. is with be guest North

as operating may there and we behaviors continues travel economic uncertainty around and that outlook head be our addition, the consumer season. into In primary on the impact have to

We are in second week company's stake Crans-Montana Resort last a an in Switzerland. share resort entered into that pleased in agreement to to ski acquire majority announcement Mountain we The our success is Europe. a dedicated Crans-Montana the to region. and community heritage, an destination in a heart the passionate with the team Alps unique incredible of the Swiss of iconic ski terrain,

world. Much Europe, of the strategy its opportunity for guests network acquisition resort has for value Andermatt-Sedrun, growth and expanding growth. the company like This our more to company's holders future unique aligns even in a the around pass Crans-Montana believes creating

of closing located the XXX% acquire ski resort entity will all Upon in and on operates resorts operations at the XX% controls mountain of which XX located schools and one acquisition, an around ownership ownership the the in lifts and and stake XX% supporting and restaurants mountain. stake SportLife, the of company operates the that the

to closing approximately the including million, million the enterprise is that to resort debt of Subject expected value operations remain of XXX.X CHF in adjustments, place. X will CHF be

July the the cash its to fiscal full EBITDA generate The anticipates X or acquired the operations expected of CHF XXXX, in following approximately of operations ending through that Resorts its will price company first fiscal XXXX. hand. later in of fund for Vail year year on -- the the ownership the in first expects closing purchase million resort XX, interest resort

from Vail guest Epic Resorts anticipates experience. the the on products resort time EBITDA of inclusion the Pass growth and over investments in the

the Epic and of project onetime EBITDA of million and to approximately to to the Pass. Subject the is CHF annual elevate is these investments XX the spending over timing the X experience, to Resorts capital years expected resort capital on Vail CHF following generate planning over next inclusion completion, million approvals invest XX in guest and

efficiencies focused capabilities. investments resort is initiatives, snowmaking expected be by This maximizing marketing the operating improving gastronomy driven initial and expanding and and along growth with of primarily on of capital to phase

during normal transaction, the ski closing close capital certain subject to are Crans-Montana XXXX/XXXX third-party expenditures The season, be the is approximately CHF to After consents. X ride expected annual maintenance for and million. to transaction expected

the XXXX/XXXX to season ordinary products in Crans-Montana the ski on for Resorts winter course the select Crans-Montana any not continue included Pass The at plans XXXX/XXXX will of to Epic ride will after season. closes. be Vail Operations the resort business. include remaining season access Pass deal on Epic part the the and of for for XXXX/XXXX

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

Kirsten Lynch

Thank you, Angela.

We are the pleased to efficiency, resource the model, calendar the to drive our grow ancillary further unlock and differentiate XXXX year subscription company's which details of announce growth, additional strategies experience. plan, capital guest support

be excluding Andermatt-Sedrun capital our the growth calendar investments official at premium capital. $XXX launch plan capital million approximately expect $XX fleet million My season, the investments to and We in of of for infrastructure XXXX of million fulfillment to and million for $X capital reimbursable year incremental winter $XXX $XX XXXX/XXXX to million, Epic of Gear support

to My acquisition, premium be to Including the infrastructure capital which capital our calendar Epic any is This XXXX million. associated approximately expected remains fulfillment Gear excludes expenditures $XXX and plan investments, and $XXX fleet for Crans-Montana to million onetime total capital year closing. with subject

new high-speed to a a the replace upheld resort. better at Blackcomb, As Cream part the company announced plans lift at September, of expected is X-person the a capacity central Jersey and high-speed meaningful with This increase in distribute lift. provide to lift in X-person guests Whistler

Mountain, Broadway X-person within increase X-person guests. At in and Village Hunter calendar in we will to X-person relocate Sunrise plan These the for fixed grip with is planning Management E capacity key a the Village. in to a developments to lift the City, approval. XX-person subject to the fixed providing to for a the future experience plan provide Association lift Canyons improved to terrain progressive lift and experience guest that uphill with the XXXX, lift, lift high-speed our At replace existing and we replace and existing support the the to access projects replacement Canyons Park process of learning meaningful access new year improved grip Broadway partnership remain gondola are which with enhanced in new

announced for and season to the installation early experience projects Hunter systems snowmaking increase guns. terrain to planned key the In the consistency September, energy-efficient we and and plan of at lift addition the Park efficiency automated Mountain, to investments, in City enhance improve the snow improve terrain, through beyond

resorts We to waste also Commitment to waste our landfill by in achieve goal by reduction further the to the XXXX. support investing company's plan across X Zero of to projects

create enhance Alps, experience to At experience. existing Alpine install plan renovate Building XX-lane a to the further and restaurant guest Afton a tubing the XXX-seat we to

At we Seven Springs, increase periods. add capacity spaces XXX new for to to parking plan peak demand

spending plan Perisher the calendar new of XXXX remain in triple Perisher, lift, winter to we chairs capital XXXX Mount and and into replace These commencing high-speed At the year season in a advance X-person in Australia, to approvals. double projects continuing calendar with with year XXXX. subject

guests technologies for guests. restaurants the in to technology resorts. In investing addition, year, coming we easier are plan continuing our experience our invest for new guest pilot we communicate select it the make are Epic to to at better Across personalize resorts, functionality new faster our to the both and with for and we dine the In to at to My App in enhance innovative experience.

to help order our plan a launch logistics the in deliver gear experience Gear, and guests. to invest to improvement technology support in rental we the to Epic infrastructure In for addition, transformational of My

at the winter The My kids to and planning and America, to membership resorts XX,XXX company gear, destination Epic is for XX launch we across members. XXXX/XXXX XX,XXX will Gear to North limiting be regional including season

$XX million premium XXXX, to this of fulfillment new beyond growth invest company to business. annual an plans capital To support gear of typical support year business year and in incremental the the this the plan calendar initial anticipated infrastructure our fleet

capital business launch. We X and to provide the Epic after needs the additional Gear the My of updates ongoing plan on year

was plans a be strategic approximately multiyear guest part plan the by $XX our investment projects capital enhance At CHF pleased as of high-impact announce as will the to are of million which, in invest in million purchase majority that of the experience XXX of growth part mountain growth Andermatt-Sedrun, to on we to the funded Andermatt-Sedrun. stake invested capital

and improve upgrade to to beginner the side we investments, of the Sedrun-Milez year enhance experience part eastern at the are capital infrastructure intermediate on energy snowmaking key As area XXXX terrain guest replace significantly the of and planning efficiency. for the resort and

addition, Milez Resorts waste to net investments to In restaurants. dining take and the be remain announced we including completed plan our action Natschen ski are and on the and with forests ahead operating footprint to the improvements approvals. In to regulatory These season invest an subject net zero to impact environment impact on-mountain to of the achieve XXXX, to XXXX/XXXX address zero to in with net experience commitment expected European ambitious zero direct operating emissions, plan Vail XXXX, zero on habitat. a landfill, by

achieve by to footprint We continue be on track zero operating our to net XXXX.

we electricity $XX second American North achieved investments operations a million in across renewable by fiscal energy since in over driven energy In XX% our fiscal efficiency for we achieved early, year And XXXX, goal savings XXX% the row. XXXX.

a of diverting landfill achieved million to waste XX% we Additionally, waste landfills. overall reduction from nearly in XX pounds

With progress, to is its to landfill forest on zero a track habitat zero on waste reach and operating of by emissions impact is and the XXXX. schedule this zero operating achieve meet goals net to ahead company and to footprint net

In continue equity program and youth protecting inclusion. to environment, expand promote addition diversity, the to our and we access

create season, Resort youth Everyone XX,XXX to aims our access Epic winter sport program, resorts. mentorship During to by and providing our more access through multi-day around youth lessons, which the posted a barriers remove for gear, more youth entry than and for inclusive XXXX/XXXX Vail

doing committed outdoors the our responsible part and the our and to stewards ski as dedicated communities. great future the remain partners of to of We industry

coming to report Commitment our towards information our found and epicpromise.com, about the be Zero fiscal sustainability at More be expect can released efforts progress and weeks. to in XXXX we

team for of success. an forward mountain their teams a mountain to members our your time, to our welcoming create and work to I answer Switzerland. will a In lifetime happy our Operator, for And team like I in this employees commitment across be frontline passion, any our our gears snow welcome experience at would this Crans-Montana and as a is mission of questions. would The members, to now of I core company our Angela resorts borders ready especially season. At guest that special to hard look to thank like the experience guests. our to resorts winter We is of for closing, are all our all all we and extend creating questions. to and

Operator

Our Shaun from of comes [Operator first question Bank Kelley, Instructions] America.

Shaun Kelley

other color the side, told spread I pretty Kirsten I I terms that would that down dollar probably you products double-digit Epic played I out. on or pass the And you Angela, a mean, if drag very the here. encouraging Pass guess bit. able us can wondering growth value those lower in start, did slightly of this regional little side, are how one lot Northeast on But I obviously, area give on composition think the But a the maintain you And on in just Day kind were to of were of that side. the that know strong.

just you and little a a dollars maintain talk widespread such how can can that So mix that units? bit you about evolved that and between

Kirsten Lynch

Yes.

X% including did across pass-through, all that to grow segments, Epic and took by this very pleased part We were able the see -- Epic in We with major are product strong Local. an year, very driven were Shaun, price renewals price we and increase. we

year. product the holders higher-priced We relative net holders prior year. the the I think into And pass more a launched was reminder, last products last Day as towards new came Epic versus was And program the geographies. of our new a improved migration in to pass also at renewing importantly, pass that targeted the that cycle of acquisition a holders saw had in version year, late prior Pass local among coming that which our year, drove we new selling significant

Shaun Kelley

Got it.

actual area and snow think into is That of season. we're kind helpful. questions other And of terrain the getting handful I probably -- then a look, we Okay. think, most just where you big last point, the tilt package the is the on as I

closer set sense again, of the but return need point us the condition loss we in maybe we some holidays meaning a sort do season of terms when So pretty of when season conditions, and updates, of terrain to to good here? kind as give launch have for financial is get really opening a give into of results us no and --

Kirsten Lynch

Christmas obviously, time, and geographies. is period guests I mean, for vary mean really the well, time the in performance. across important I important at now, our for right point holiday our this conditions

Rockies, to snowfall. quite challenge. which and temps, time this this most what it's the typical probably the seeing with year, more snow. for the hard typical say, Whistler in in Tahoe East right off I early had period. now, there's is Blackcomb They've is experiencing I'd very and And submitted for slower with and encouraging. probably seeing And we're call snow strong think now. the is time was I for typically it currently, what would variability variable forecast, making Andermatt-Sedrun last start season fairly warm would call a strong that variability a right the start year, snowfall, early that of we make we're challenging is then differences. the to us a

geography has in head just us, time in spot the be yes, varies we're geography a into ahead we're peak hope Christmas but as it season pretty of that where begun sort So a to the significantly of period. good the and situation we would

Operator

Our comes BNP question next from Laurent Vasilescu, Paribas.

Laurent Vasilescu

anticipated was impact that to million $XX lot it I of remarks, add EBITDA. buckets the on the there but up math. parsed release quarter, the and in they Last press XQ out prepared to questions million appreciate regarding in rough per $XX a you

onetime then actually are about materialize? total? in to $XX any are too consider? And about XQ, would be XQ, we other that that know out is the other should Just Or call as think we curious small to parts that -- were if there there number impact EBITDA million that

Angela Korch

didn't part which the balance inflation variance. the in the the And is cost number called pieces Angela. the is Yes, think QX of walking. that put key but there we of really we variance piece, this I Laurent, you're that certain in Thanks, is out

expectations season. million with as that of There part into So cost season, full will those that's the there's we wage $XX like is also variance remaining the their some cost to season And core a invest of so And for really always the right? we line noted we investment between in in within inflation inflation. total, also $X QX was ahead of And timing our some part relates invest the things that that million that typical, that move as around QX. typical move of ahead and winter QX. QX and that

Laurent Vasilescu

about could And years for million X Very Andermatt are that I In to week, increased is in innings, to Is ownership you And release $XX get EBITDA higher on early of the Crans-Montana and press that EBITDA. expect any know helpful, wanted then Or to from drive up over you 'XX I that? in year the but fiscal can Angela. think are of driving invitations? follow on? eventually execute What's efficiencies to there resort you to there Crans-Montana. the apply last that you the million Andermatt? $X business learnings

Kirsten Lynch

questions. for the Thanks

We experience. the guest potential a operations the and and returning full strength expertise network we Pass and our that's top-tier expansive terrain, with this brand and the to is and Switzerland. it part effect being resort its are Fed Epic through Crans-Montana When because base, is base the marketing and dining, about strong think of lodging, areas a it bringing very retail believe ski in that potential, of about large the company. in Europe part of growth there's we This opportunity in experience our a excited with brand by of future investing growth resort,

driving learned is had was we resort. operating pleased we with a view primarily Andermatt-Sedrun. first lot. in a year operations we're really about our there of and say -- the first I potential. We've very our would year be that operations I'd what what's to that say growth as the So at and

operating unique we It's has and about as about pressures in the have have Crans-Montana. that learned we a conditions transformational lot really excited really capital -- year, challenges growth costs. that regarding are did well energy we to some and some about the of a related feel as way the first ski Our for Europe special We plan regarding we potential, resort and Andermatt-Sedrun. same there, unique

Operator

next Our from comes Stifel. question Jeff Stantial,

Jeffrey Stantial

here, earlier. Shaun's I was to up Starting question follow hoping just off on

sounds like that dollars, launch new pass as things you're X into season. coming as spread in sort products the prior and the expansion units the it Epic the anniversarying that's between of Day really well driving of holders in Limited higher-priced the So in now and leaning

the sense on kind these you're customers sort to Just that passes? seem any limited regarding anything they but of full have buyers? these into Focusing first lift ticket do you or leaning and their on cohort, you have I recognize that in sense data be holders new the are pass, available, sort the of of coming any can from other characteristics? is add Were there you pass they complexion previously of

Kirsten Lynch

Thanks, Jeff.

our some importantly, the were highlight we really I loyalty, is at value -- proposition speaks the critical really renewals which because critical to to the compelling grew of is more driver note a dynamics resorts. renewals and our of overall, then pass, -- pass-through. international destination, the of growth also the talk business but loyalty and the think I we strength important and that price the driving local that really deliver is and I mean experience great the and couple to a there's of the we and to can in the think part growth, see which about model

side. saw the Another on interesting dynamic new we

they then lapsed it's think X and last ago, people not that a years are pass holders of prior composed of of list past. we people actually of year were brand ago, database of different It's new, couple comprised when years X have a So they years, might holders, been segments. -- pass ticket purchasers. meaning includes in and any shown at It coming then And up our who our last yet have us. it also includes resorts holder not pass and to the so back are new to

to what strong we is And call saw pass pass return the of very loyalty lapsed prior and and addition that renewals holders, one in growth strong really would holders. dynamic the I

the were So these with pass again, resorts. I of in the us the last which, back our strength are pass and to not past, again, holders program speaks and but we've experience at think, our people who gained year, them

was pleased that. to see I really So

new segments, we and the year can pass of our pass think In Epic among that this and talk that year-over-year. holders improving terms price helped net including the product grew the we the of and about, migration -- the Epic across fact Local, renewing and strength certainly price well, holders pass-through I the the differential, all renewals

And just and the migration measure holders. up difference -- our among a defined what is we down renewing that net pass trade the trade reminder, is between as

encouraged most higher-priced them. products. some that to dynamics, you trade that we also into really And coming pass the the of the renewal holders years, get were for within and to striving dynamics point when at coming see to certainly into people the holders up, pass prior then I'm growth of program contributed. And renewals, the So always pass to relative look products higher is acquired guests price new but able into we're suitable

those launch people in in noted, we spent that late designed product specifically product in to note typically come new is because geographies acquisition that penetration access was cycle. drove the that did last I important is some have in eastern of geographies. Shaun's very some when specifically to late as And of season as a And year question, to increase the that our the selling very new local new in those a that was

pleased So actually I'm dynamics, who think those who's to the -- health the the overall, strong movements look we're I acquiring within business. business, for indicators the business, as all renewing, very of the at of when I underlying very are

Jeffrey Stantial

That is both into well it really to indicators season. forward helpful heading commentary the encouraging as as as relates

generally bit levels. so more my And specifically term to helpful. just perhaps on as with trying into than that you was release, your much a typically there used For be what might year thoughts hoping verbiage expand I you the to you by well to just was any meant the in [indiscernible] consistent some to any lodging of upon I'm dispersion refer reading see? I but term generally? Just was what follow-up, geographic bookings, thoughts if Were sort well, you too commentary the would turn there? hoping prior

Kirsten Lynch

Sure.

just and seeing and and And the important, spring and would season. look spring say I'm geography. represent is relatively bookings our would reminder, of now, seeing we resorts. here's I we I small bookings as still by when lodging go I as what our break. see between softness we holiday to some will in lodging portion in it's actually properties solid early, right by at the also, monitor overall, holiday like the into our it's we're a months, think variance overall bookings continue I a inventory say, around And this

bookings. That's a is critical lodging for our year when with with I look consistent lodging trends it pretty prior holiday sales Pass at generally levels the for spring. indicator. And solid and looking overall, yes, booking

Operator

from comes question JPMorgan. next Matthew Our Boss,

Matthew Boss

the speak behavior, any And notable on initiative? maybe front on the Kirsten, see to Angela, real-time customer workforce front, on can elaborate see Epic you the from could management then margin far from ancillary So out you the ski you opportunity opportunity call just trends season? My on so Gear? to you And multiyear this maybe the

Kirsten Lynch

a time to businesses, early have really on say bit too any Matthew, ancillary would So indicators. it's real other I

gave So lodging, to Jeff I an on that. just overview

insights into bit ancillary once more we I In other the terms of or have get bookings, the think too sales in early further cycle, a it's season. we'll

of in people own on those frustrations, skiing there's their you There barriers who this right? lot X sport. we who and part people North think and ton who gear gear and average, to X lot learn excited My hope of or it, the guest about of this real about you experience. gear very about. coming It days a a call have strong Epic in and of of But ancillary when and to gear and of a obviously, we are America. of the sort fronts, Gear, rent a I'll Everyone the logistical have ski in On a business, season, ton a participate as delivery pilot needs is business. people just snowboard both are gear frequency is to very we of

airport, destination the cost in an the sits in have asset mountain for we that but talking to majority the The own snow and -- to people their of borders it that obviously, the of much markets, destination the the about more, skier garage, local more their guests. our purchasing skiers hassle who are using gear transporting the I'm gear who up airport live through -- of at the frustrations

to up for the time off. don't And line people who then and gear, hassle rental the drop standing the in store of in pick on or own side, the

offer it, experience believe have idea want, brands is condo or The when where brand-new app top this select business managing you go. of that gear that on either at for and the model in So we that gear delivered that transporting gear We hassle the your hotel, our guests transform gear you is want your can ready business all completely resort you you best want alternative an the It's a basically it. you don't to or and it. to can slopeside.

it can hassle. slopeside, any the and drop of experience can off the you app your on manage without You whole

which And subscription. is turnover to convert into opportunity a we think a rent existing our there's real this,

our our owners want to need looking they a So the and as it really membership of We of wherever they're have being is for stickiness this resorts stickiness by to important. to and gear really that convert network create mountains get part whatever own who can the can to resorts a asset don't well. enjoy

at pilot we'll of that terms learned and the about X as next And season, year is We'll from say I a insights learning we which launch, lot would the the more a of is end It in season the this what a business have lot. be pilot. well.

Angela Korch

this And is our season excited we and lot workforce Matt, strategy talked resorts. that really across on part of resource this a to yes, of out all management, efficiency about, roll we're this our

of takes course, at a of Blackcomb resorts tool, And a Whistler of we As time to know, any our and did X good optimize. got at some new pilot lot you and learnings. City at Park

we're And multiyear various very is but the really historically all we're be we've of What excited first in so ways managed opportunity. management, about to year, change different does these rollout this in and it tools. going

and allows to our employees of of a both that So important schedules track to managers things guest that time our other than, great enabler them these free some for keeping our do employees. give a up better service our managers their will to those systems and right, more on tool be and many so

excited that year. really about this we're so rolling out And

Kirsten Lynch

on management, the on Just expect this big year over in be as to a believe time tool. over focused period to the build this for training, financial of the we to a the what Angela which impact would do is But modest said, terms implementation we're X company the of change the in year efficiency. X, benefit we be multiyear to

Operator

next Katz, Our from question Jefferies. comes David

David Katz

all a volume, in more of a mountains fits I driven did that it's other aspirational in other cetera, Mountain, latest wanted a that? guidance above? margin give lot the mountain longer-term of more your pricing pricing is many has days, how your is that had context how today by cases, sort or it. putting whether in wondering to this Swiss et I'm I'm acquisition earnings into or Just lower. about premier U.S.? to your the been often has that lot wondering And historical is and but ask Europe And you some mountains on And level relative it pricing skier volumes, the what just

Kirsten Lynch

Yes, lot Epic what pricing that a lot American did before you consistent David, looks market, European see say it North perspective, the a across of launch I of right, a like from with the would Pass. the

as build get like too, network creating a forward over on there's what through commitment advanced at out doing terms moving an compelling point. pricing to yes, do guest-centric think a the time, so into commenting But exact we we're And opportunity more strategy, in network this we within there. of right we're not Crans-Montana here

David Katz

capital respect planning that how prospectively just a time, fiscal be might year you're the we that thinking the that? assuming including with would of closing? And this you CapEx we Understood. in to about the for out follow-up some time in do future some post close plan CapEx Or on there,

Kirsten Lynch

announced going we David, regulatory what be is XX with to the approvals. million CHF to that we subject get

expect So still as that, learning right? after be close. come likely year, you this in first a that we We're mode going to will should

capital get And the to years. it plan will and so our full our plan, we occur and will approval with a go evaluating through that communities out process build following over

Operator

Scholes, Securities. Patrick from Truist comes question next Our

Charles Scholes

X pace now X Europe, accelerate the at to of acquisitions, years, it's that expect in had, I would forward, over or the years Going you've X point? acquisitions guess, last this you

Kirsten Lynch

the Europe. to Obviously, they of progress so, have what predict we are owners but on doing. Patrick. and these we really the assets way will But in industry, here we predicting to see that market in hard dynamics where kind of to and So driven continue It interested no of they're this. is make we this hope and hope would so by certainly

Europe time. long on a focused opportunity know, As and for we've you market growth been this as for a big

of of size have there we're And last is visits Andermatt-Sedrun of over here and almost the North encouraged skier couple to market So of years. Crans-Montana number America. the Xx very the the

a progress fast to build to be. aspiration hope there. idea we to is wish that network make going with continue how I to no pace I But So the knew.

Charles Scholes

all related in Vermont A at Europe. the do perhaps specifically Northern perhaps on this tuck-in follow-up question. North you see so, or in think, enough. has Fair say, focus, opportunities for been or alike? still in Vermont I Certainly, But America rightfully point acquisitions, international,

Kirsten Lynch

in has Europe. see North and opportunities focus been on our we Absolutely, America acquisition Yes.

then between believe are in really ski destination local areas. believe in to we still network As and markets North network And regional connect we also there our opportunities can major our you a our there's big in America that that accretive add and know, to acquisition opportunity Japan. our areas,

continue stay that And as focused so on to we well.

Charles Scholes

say, Okay. you maybe in a Do year, first expect question target to here. I positive give EBITDA Epic year last if one And for target? I us or you do first be you initiative can't EBITDA that Gear just have may should an slip

Kirsten Lynch

the from this lot very on learn we I go would learnings, a with we're yet more the which pilot execution. and yet believe to We're this you have is journey. have pilot, into those going not to And limited be, think have we year, not targets going we would and gained what we but a along exactly I information share disclosed as the

Operator

Deutsche from question next comes Woronka, Chris Bank. Our

Chris Woronka

guys you I or moderate back gives might go there a year pass date pace want sales last year to as lift you kind pass might to -- as have I product to opposed what's implied pull expect you revenue know the pace a look could that to by can the what as kind ticket color unfold? pace that -- you the how ticket give on of moderation to people expect anything lift to indication saw anything of you or that product. that to else of of kind of lift any to mentioned guess more any you us like, is I ticket the this as --

Kirsten Lynch

increase, our right, lifetime the path renewal, the about always stability convert Well, creates I when our lift to mean, striving we're that think the retention, every value. purchasers year, the the we business, a because of into ticket pass frequency

are factoring expectations a It's the into coming reaffirmed total we that And we very that share view about just on to guests on as visitation and we and pass, that that acknowledge we upcoming closely. those guidance, are obviously to track lift in from good sure thing. our want tickets growth to that some so as We guidance. they lift everyone that just just and those think rates make our So incorporated when that remembers have how they're season. our we revenue of

Chris Woronka

a kind And here. of you enough. for then Fair question Okay. longer-term

capital other is time, over about level an -- acquisitions as opinion revenue mindful to that the years of relative intensity go increasing of back any something well. of revenue do time, a maybe and of bunch could that? like over a investment or to Is over it's some there you've about look metric, we that, level number again, of have As or think on we I'm way percentage at the you done think

Kirsten Lynch

out and for And Yes, next actually, if back we've you we in for with about with grow more capital. acquisitions. time, of our will put how it efficient typically year, look more that more become put the adjust think forward with we it we of revenue and then we any line just you'll which what capital, there capital in over inflation have as our Chris, see terms a percent historically

translated so time. of you see been disciplined we've And kind very in can and more to more which has approach, that efficiency over

Operator

Our next question comes Barclays. from Brandt Montour,

Unknown Analyst

new evolved this relatively We've It's was that's could for good either year? if passes to wondering the I year. some how for Brandt. impact NV this competing for been [ seeing passes [indiscernible] lot that's Chris on you and pass performance, talk about of receive like ] the a attention or bad landscape your us. competitive And all

Kirsten Lynch

in the the we path this in we better. honestly, of and is it's industry think great. this committed advance view mean, that industry, I that Yes, more a

great are it's to you to. think I to the that go love you that there. often the and see decisions out So resorts pass want other tied emergence And to of passes

we Can't a those But came if And pass back came growth to a returning amount so loyalty program resorts. us. highlighted into to view substantial, more last to not I into were see that what year people last on while were when back and could year you more products there's -- pass pass we're them of continue pleased Epic us. also certain earlier, back back and they and was . And they fierce fortunate of people terms as been we've were exactly of percentage but who have then that dynamics, bring to people last pass say holders in competitive -- new what in renewals. as back they year our holders to were really or in that the

and and loyalty, lift, continue may make to like attracts tried whole our strategy with that guest back Pass million My that Gear for to reinvest results. in of who have path things part people something to Thanks growth the we and investments driving brings this are this Mobile a and so experience But people is that Epic those or and else, the our that guests And much season. for we the season, pleased part have resorts it My keeps coming of X we incredibly App question. whole Epic we're coming for our upcoming know incredibly over our pleased in

Operator

Morgan Our comes Megan Stanley. question next from Alexander

Megan Christine Alexander

and as Maybe pretty one you a kind I longer-term transitory. that's impact, us. a of from imagine $XX question shorter-term then The Australian million quantified probably,

in back guide there add this equal midpoint the in EBITDA that range. -- sit to a a kind So we all XX.X% your year, imply normal of sit margin and kind that of of else environment EBITDA I if guess resort would the here

couldn't any see environment, we above forward, equal level again, Gear else As to margins about investments going all in My it's there else, next OpEx whether think why year? you related a anything normal reason that or is

Angela Korch

prior first highlighted had right, very years from Thanks, down your Yes, the We of year, pent-up the record impacted X seasons in question, pieces of after first impact. had the versus part on year. the Megan. that. warmest COVID just this some being one had by challenging really conditions demand of dynamics which the current weather this quarter of year, there was obviously X right, finish and of on Australia which, to season, One phenomenal a

between so those And roughly and the kind $XX both of the of is million equal X. of combination those factors

long our have of strategy efficiency, on should a on onetime question, term about well, to your on driving the So forward how haven't to intend we kind moving then about how improvement given specific but versus we that's maybe think grow we margin yes, going type that. lot is forward, guidance of about focused forward. talked growth ongoing how we're of as which very you resource We've talked impact. And kind margins,

Megan Christine Alexander

the And to whether Fair -- you you've scale a level in know How U.S. Europe, about then similar it's localized able about about it's creating think of how about enough. might and in what that the terms need in Okay. you highlights early, of done there? penetration. you think U.S., of of the market that. pass might general, you like what in Switzerland kind to the kind you are scale drive you Europe of talked in do be the a what When but Kirsten, to network do or some Europe differences need, think between to I

Kirsten Lynch

protection I and because a that view of Europe that that say and stability would a that and to -- means on structured resorts growth scale and network some market such opportunity, of or operated long-term creates help have need market the I market to is Crans-Montana, we these is, initial think some strategy in as thinking that structured and partner will evolution versus a of operators market big our the an in will being lot we owned model flow Europe new way refine cash as that Andermatt-Sedrun we that and can and from we that by would strong what I a certainly huge real we enables be the that and of with creates business terms a way impacts beneficial also in think have in us in be. in model about it the operator Well, free resorts. I that is driven say that climate with business resorts. reinvestment commitment closing being obviously, would advanced a what learn in and the and think, our But that think being very there in change,

like in to evolve us And to or learn need on we in adjust a that may order to be model still have how Europe. a for successful lot market business

about, So very cognizant dynamics than into right different as and think you we're quite I long-term excited a and we give market very I because market. the a we to this want answer as are this be go don't specific view North we new growth now strategy thoughtful America, that can but

Operator

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

Kirsten Lynch

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

Operator

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

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

Vail Resorts (MTN) 7 Dec 232024 Q1 Earnings call transcript