MTN - Earnings call transcript Q2 2024

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Operator

Good afternoon, and welcome to the Vail Resorts Fiscal Second 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. Please go ahead, ma'am.

Kirsten Lynch

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

now to our results. turn second XXXX quarter fiscal Let's

were prior North margin and by Given the results resiliency the to the resorts, business the our quarter period driven unfavorable and strategic EBITDA North management. season points of our our of demonstrate quarter our resorts, American Western created the The compared across Midwest, stability quarter for pass by improved conditions that year, compared same our and cost X.X reported American we in impacted are which snow American second increased North of the EBITDA approximately second and variable the network negatively our model loyal and our to at Resort Northeast results year. approximately conditions, lower for guests. the at resorts our conditions second in across snowfall year, disciplined Mid-Atlantic pleased the impacts quarter compared results. temperatures resorts for by primarily Eastern natural X% with And U.S. all resort of challenging XX% the also through January prior our limited resource resorts. Despite the by the prior comprise driven to

our declined and businesses spending rental year. to In strong the and school, experienced businesses per ski particular, ride in dining our growth visit visitation While well. ancillary compared performed prior

We pleased resorts company's our strong the the well investments of technology the are in and employees, our with experience. execution mountain mountain across impact on as as

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

Angela Korch

Thanks, Kirsten, everyone. good and afternoon,

the the resorts. XXXX EBITDA share by or for were to reported Resorts attributable in our $X.XX unfavorable to million attributable North share million diluted impacted was per fiscal the or of compared EBITDA Vail in year. quarter income second million million diluted Resorts $X.XX net $XXX.X Resort reported year. to to of in across the which fiscal prior was same the results the quarter second compares resort in mentioned, period of second $XXX $XXX.X prior quarter, $XXX.X negatively per Kirsten the conditions American As Net for income Vail

metrics. XXXX compared our ticket of season-to-date regional of of period year period. Season-to-date season-to-date and Unfavorable applicable the reported the for March to end the from to-date periods. destination allocated ski period. Andermatt-Sedrun season metrics scores, which period interim XXXX. both including is the subject through ski impacted XXXX was Australian up each revenue are release total The areas X.X% beginning year results revenue, X, was mentioned to conditions season year prior and the North fiscal an resorts X.X% March fiscal visitation, season excluding this negatively to adjustments. our to Sunday, is portion down review and season The in And Turning data period, compared in the data season-to-date compared XXXX, period through mountain the American fiscal lift for X, ski for company's quarter pass to the

and For combined our ski rental and binding for was resorts, retail to [ the revenue compared import was X.X% X.X% school Across their frequency. based below our North period. and North prior and area up and down year prior was the season-to-date year on business conditions results, was visiting X.X% both guests ] and revenue of ski visitation, number season-to-date American American revenue negatively resort down impacted unfavorable which expectations levels our locations

Following our while challenging and And our King the and persisted Blackcomb as improved March Whistler resorts, Jr. did holiday not weekend, Luther Eastern quickly Martin improve at Rockies conditions at resorts. as Tahoe conditions until visitation early expected.

season to portion pass skier We season program, to the per the school, prior the spending related we half Despite growth in and as conditions our lower challenging a in of decline created strength stability in the improving visitation are relative lift a first season-to-date the the the pleased rental visit as with the our of period, trends driven as revenue patterns. progresses. ski is season dining shift from visitation visitation the and well ancillary in expect businesses by across year the

for Now XXXX. the turning fiscal for to XXXX. to our our season-to-date underperformance, outlook are guidance we fiscal lowering Due

base improved we into for based historical including on our is visitation and North compared For across an precommitted are Northeast Western the season, remainder March period, patterns performance patterns, This and and to April. the in improvement significant resorts conditions spring our break expected of our shift trends the of behavior booking American their period. guests season-to-date lodging the and in the expecting

be for While to between know Resorts to greatly XXXX our We products, EBITDA XX.X% $XXX the be $XXX for to company, mitigated for we an impact Vail XXXX guidance was to million, which midpoint net million be million. of creates to stability fiscal our financial and range. resort incredible between margin for using in disruptions and now our million weather the by communities and our of guest. value that the the for attributable lowering XXXX commitment approximately EBITDA advanced expect shareholders exchange $XXX $XXX reported fiscal fiscal year, we fiscal the income We guidance are the resort for estimate and

an the of the includes and spring. dollar and of to related or the and but specific expense closing Whistler the million rate assumes North U.S. Canadian not any of updated results Canada guidance acquisition, XXXX operations dollar Australian does for ski guidance to related weather of costs, for for exchange XXXX rate outlook The include operating of the dollar of and Franc expected Switzerland. XXXX this the U.S. estimated $X.XX European close normal XXXX, ski between acquisition-related Australian to season. The Creek for and an operations continuation assumes exchange with the a U.S. the Perisher, of operations Hotham $X.XX Australia the Crans-Montana, to Falls the and American fiscal and season, to between in environment in conditions an current Our exchange dollar associated $X.XX rate the related and Andermatt-Sedrun the estimates dollar integration of is the $X expenses which economic Blackcomb Swiss remainder between of the Crans-Montana in

XX, including credit agreements. XXXX, Our across of and of million hand combined revolver cash as total of $XXX balance remains and cash million strong, our January $XXX billion of on with revolver sheet approximately $X.X availability availability

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

an per of Given to approach to XXXX, Vail $X.XX dividend of XX, and as cash April maintain these Resorts share dynamics, March repurchases. remain pleased on returning our committed declared stock shareholders to payable The on to of are we be Directors common shareholders to of XXXX. will X% to our We in an XX, Board dividend record share, that capital announce increase a intend dividend. quarterly opportunistic quarterly representing

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

region. the Crans-Montana to even Swiss with growth. a The third-party creating destination aligns Resort XX, Europe, resort acquisition second majority to a value company Much spring, our Crans-Montana into passionate in train, is like more believes transaction previously unique close Mountain The to growth announced heritage, November the team of unique network the Switzerland. agreement for in resort consents. of its the to As the future community on dedicated in holders an incredible This opportunity success expanding and company's company expected the a Andermatt-Sedrun, ski company's iconic pass an Crans-Montana the strategy the a for stake world. heart subject and of XXXX, acquire has is to Alps, in the around guests in entered Europe. ski

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

Kirsten Lynch

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

to snowmaking and the plan and $XXX at XXXX is $XX season, provide we fulfillment reimbursable approximately increase investments, company at capital the of replace to of total lift investments we Broadway lift X-person a the and fulfillment a plan My process capacity the to capital the lift and be fixed-grip guests plans which onetime Sunrise support for expenditures guests. replacement providing Epic our X-person X-person is This City, of year Hunter fixed-grip million, in future At capital, to to new the million calendar excludes season and capital terrain XX-person that to My early the distribute we a is fleet gondola, increase a Park Blackcomb, of to improve our experience million improved for partnership XXXX Epic the enhanced the calendar official This approximately planning with high lift. guest acquisition, Whistler better capital snowguns. replace expect a support lift plan installation with the approvals, X-person plan the experience with and excluding and to Mountain, investments $XXX $XX efficiency to progressive the announced, capital and to Gear Subject previously central automated provide including lift in Hunter infrastructure Village $X X-person the lift, the terrain, Crans-Montana resort. to winter Management uphill capacity plan million lift premium systems beyond closing. At Association be uphill key consistency fleet improved our Park replace As At million to year learning planned to through $XXX are lift calendar E within we existing Village. At enhance for speed part to Canyons developments in investments, meaningful existing any in launch and premium high-speed $XXX million the subject for Jersey approved expected new increase and XXXX-XXXX with Mountain, relocate the meaningful to experience for of associated capital incremental Cream new the and the of to improve remains Andermatt-Sedrun year Canyons growth Broadway in energy-efficient infrastructure the XXXX, which of City for access to with high-speed million. to expected Gear will a and access terrain

Alps, parking install chairs new in a to Mount further into to waste experience. of new in Seven subject These and the across improve guest to spending [ and and commencing At Afton to investing capacity with the in by X-person in calendar lift remain ] the and a winter X triple resorts Alpine support to XXXX restaurant we year double XXX Australia, of plan we approvals. to company's spaces to waste Perisher create replace to Perisher, We to goal year high-speed capital advance season enhance experience. plan by building increase to also tubing our calendar XXXX Zero we experience projects At Commitment further add the XXX-seat continuing existing the XXXX. with renovate to the XX-lane the projects Springs, XXXX. At a landfill achieve plan reduction plan

the to are to app technology new to and both resorts. select technologies and for addition, Pass in functionality continuing invest Epic In are Mobile My we in the coming the expanding year, In enhance guest innovative and we easier experience. Across investing Lift our to we dine resorts, Blackcomb. at guests plan to at make for to faster pilot tickets Mobile it our new restaurants Whistler

members Gear for pilot in of order Keystone strong our support for learnings technology XXXX/XXXX logistics Epic guests. The to Epic addition, My gear for the Breckenridge, Gear every and delivering where popular guest up Epic from full off experience My to selection participants the season valuable delivered infrastructure ski launch. help with and business most slopeside snowboard pilot it, transformational to and want, drop provides or elevated the the and have at My to experience plan Gear, choose it deliver for the they and we In its of and and invest the and and want access to day, Creek, to a latest including launch they Vail, gear in ability Beaver a a is the pick them when models, day.

Epic the XXXX/XXXX we gear, majority part updates delivery, boot Gear in In this entire Epic to To year North personalized Gear skis premium be are stake personalized Andermatt-Sedrun, in business America, brand, guest the investment in of capital membership also launch. At on needs business invested latest business, on after My season fingertips be plans $XX was Company -- fitting invest pleased to as the beyond gear My calendar that Epic as gear XX high-quality to support which plan and snowboard will and the plan in new the provide the the the year the $XX in members' offer insoles growth resorts plans the addition ski Company XX,XXX scales. and million will mountain, anticipated purchase My invest of snowboards, to and multi-year to the infrastructure plans fleet name fulfillment of at XX,XXX first regional support additional for to boot and of the scanning capital by boots the launch year strategic membership, Gear My funded to to initial new XXX Epic in selection to announce to the this the We recommendations projects boot members including will as limiting to winter be The million our Andermatt-Sedrun. destination technology. app. The offering and X on-going year approximately enhance our launch Gear from growth million across annual My to fit business. Epic kids at and of typical CHF XXXX will growth high-impact with fit a part plan experience capital capital the of incremental to

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

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

prices our for mountain advance Epic Pass, pleased our with North Turning X Subject to to a Resorts of launch day Friend average, riding to frontline of at commitment created in and continually to the to the which resort, resorts, by X% at sales ride unlimited guest season. We continue to over experience can have compelling ticket skip represent guest the and reservations guests, Telluride. strong to each the resorts, tremendous our lift. On experience. a in our to our invest mountain to supported experience American teams guest of this be access go Ski questions. Epic and XXXX/XXXX of partner further center holders range Pass our greatly to Angela season, to pass of and and success. prior to I with value with our the to to pass owned Mountain when network would or pass experience our pass the season's the entire every spring. At our provide creating of Day The are products and our line a price launch to an ski all a and forward of work resort have directly resorts continued XXXX/XXXX this employees which closing, resorts can increased across thank skiing Vail create we of no employees, loyalty X of to lifetime XX the season, resorts, and guests. next commitment Resort access season. In Tickets our for already loyalty at passion, like the any XXXX/XXXX they are now Tickets, except that utilizing this days products, unlimited our network our and as the lies to Buddy appreciate pass additional wide regional desk on that guests ready for our We I access Starting we our close, visiting resorts of committed for pass our products especially select are including Mountain their will all your provides hard happy operated Crans-Montana answer mission questions. for and season holders Operator, and required our Epic include sales, and access and guest season time, company commitment is with plans Pass at the and look a ski welcoming

Operator

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

Shaun Kelley

-- saw maybe just we in Angela, there's it seems X visitation clearly here. with the patterns there's like parts you could Kirsten, start because

You conditions. those out challenging called

year. that of they certainly if we next the start continued. this saw kind help you you could documented maybe for you you year them X clearly, so the if just building if wondering I about sort which patterns. see as up a season could buckets as bit, little divide the thinking quantify weather and help get and changing impacts you sense And you early X visitation behaviorally? then saw some all overall, could where those And them saw second between part us what us think of some I to in help could the explain of you investors a of

Kirsten Lynch

Shaun. you, Thank

conditions, look the post lower you shifted. XX% things some an impact snowfall prior than at QX, MLK, I If year, we say, incredibly on challenging When noted, would had visitation. definitely look we as which

did while and some that did expected. President's to we not Rockies -- see continue improve the at Blackcomb all see expectations, weekend but however, were however, over trends had the Tahoe our conditions the the improve We did, as not Visits, holiday. President's and improve, Whistler the challenging conditions East. to trends Day Rockies the We at improved way in

which and precommitted into a have the visitation into visibility even Lift in yet well forward of on guest and that different has as data resorts those our already guests conditions are lot pre-committed season. looking our pass obviously not our until assumption there lodging. their seeing we're good pretty a say behavior, lodging a at market One, lodging our relates As to looking same of the as has Ticket I information, of a most we and indicators overall. to all at also what that our then look yet. And later say, well. in significant pass, Shaun. but about and resorts is behavior, apply and is percentage at utilized shift a higher two, pass spring, not it across visibility based as I board who their visited would base we're have have is suggests our historical we And importantly, the we holders into guests that season-to-date would would have guests as

not see the guests can pre-committed, really our combination conditions that visited think indicators then looking because data the are our that for we it's so of favorable the So lodging a many they think we in our of and how are markets to are if are have forward the good when resorts frequently. shape, in or in have we we and and lodging spring,

Shaun Kelley

just I sorry, happening And sort question terms any in on they're change pricing help same pattern we're a may to people really to the season a a some a follow-up looking just to Is of the this here, so -- willing the sort of go, guess because is of us is Or they're a be changing question your just consuming what the And a maybe here kind was shifting? is of lot but as we're all timing? that's what be it or there it as could risk there environment? Just by are we that reaction seeing the way is think is have lot of in there well. that best the Or investor think it the some permanent. change behavior? what is do visitation or that you're of when had base Again, just there's go about again, willing data, more you of far. Is possibly why? getting skiing, behavioral even at season

sense So how we some should acting. have of just they're

Kirsten Lynch

Yes.

that information lot a are on. obviously normal visit. not or have behavior, about there's And they based guests our of an that historical kind going pass have a on trend will already holders precommitted. making still those We at Whether we're of who and a broader assumption historical level

to say is is I it hard really over not yet. given the think season

shift, get probably better get appear through into I that our think can is the by and for season. that underlying data impacted certain is is I on it impact. moving that have in on through spring, would there's like season-to-date but that we guest once would a we'll behavior and time, full direction, trends know lodging really historical we more appear kind significantly conditions, there that our see unfavorable don't that once certainly we a of this we at based anything on it broader we'll going visibility and say think

Operator

Stifel. comes question Stantial with Our from Jeff next

Jeffrey Stantial

last. consistent last this pricing That's suggest over that think to Pass to relative spread upcoming starting does taking here X% pricing price you higher about on with season's pronounced announced for as But a if the Just action. seem the prices off more the season, year Epic and CPI year-on-year.

you guess, comfort I So get of look as more? around can a you potential at what you elasticity? just on more expand sort And do that specifically, data this bit decision

Kirsten Lynch

Jeff. Thanks,

at priced as that experience resorts. the investments the know, inflation historically above given and we make guest consistently have, you our We

If We the services you also look the we're and we inflation at looking year, services look we at we're data at guest in look look at is inflation. admissions business, and at total things inflation, each we at behavior. also inflation. looking making, at we're that looking look because, we're obviously, the but at inflation, investments When like we're

So business. price we're inflation holistically own really have -- on looking we at the pass our behavior guest of and elasticity that in and then our results based our

overall, are noted, that a So the go increase, year Last factors all you the those an of and year into was our was prior decision increase. also as X% X% this increase. an year, the X% is

Jeffrey Stantial

recent That's that great. and was resiliency in school called guess. particular just of you some in ski upon ancillary return initiatives of for growth is hope on I mix of expand this or dining, per And revenue underlying some much a I about then you've the or mostly some of Or out the the How might demand be lines, by in my guest going to strong driven that at could visit you is follow-up, in conferences? easy comps? this talked

Kirsten Lynch

Yes.

are the is seeing on that are we're what think coming I ancillary those spending money guests businesses. that still

for a My heard behavior you're Epic to overall be like as but business initiative that only the expect not impact ancillary school, and given business -- scales. business, and up forward will some would our a about But that not dining, material I going even spending that snow pleased for we're on new in would lower was with is that think pilot about you quarter. our about in certainly, rental to visitation a gear it it's challenging ski to year, having as the maybe is a EBITDA the that conditions in we comments I indicator as think, alluding really the So see the positive of initiatives really the this

Operator

with from Paribas. comes question Laurent next Our Vasilescu BNP

Laurent Vasilescu

to bit beyond required In How you this technology more And that expect it's rolling there? ask roll resorts? to Mountain Kirsten, provide wanted guest out. disruptions. Park a the X you can City should different Hunter at is How systems experience. improve CapEx the from spend to mentioned you're detail about I much is weather out currently? have rollout snowmaking enhanced we what and the little remarks, to this technology these prepared

Kirsten Lynch

maximize at automation and things automated snowmaking look anticipate resorts of snowmaking an as that looking our also highest keep and can we Yes. expand we some snowmaking that growth impact. do to year opportunities that view the but Obviously, can currently investing high-efficiency snowmaking from growth other one we'll efficiency things capital, strategies key the automation and would going always that about where that. We area efficiency and have us. When strategies we like automated is opportunity resorts, further that of get help like is to self can a guest resource season that ensure investment in to be the where of contribute at for the that, and we're one assessing our forward, to we do at we can we really every comes the ways is have of I comes talk key and through and and if there's service, [indiscernible] it ways

Laurent Vasilescu

Very the about in quarter. to And It I ask and retail then helpful. want declined rental XX% revenues.

my I across Is So ecosystem? in with about rental gets going and out you that, North to you Or was X the reduce locations year. exit there's locations Gear think forward? current of as it think points retail rolled of do Are the that, especially math, driven My XXX certain footprint of lease on the at last by that Epic America? the number an opportunity right

Kirsten Lynch

rental in alluded Telluride, achieve about retail I to, then retail forward, pleased was to exit by our focus business locations and did rental So noted, which to we locations exit and that just growth chose to Aspen XX those regarding resorts The and very and as priorities. deliberately the about rental rental, as season-to-date. which side, resources retail. think we're which our we overall, rental you we yields, impacted talk retail strategic in Rental, Mountain our of on and core

QX. in from well And there what's as outdoor right that retail headwinds happening also retail now. the dissimilar I impact in an are some was in that So not industry overall think are

In and in Gear evolution a brick-and-mortar business. terms that on means of My model, the of versus think business the I and looking My success Gear forward for the the what Epic that of will Epic depend lot

out that things through need essentially and really really for that because to it gear and distribution of utilizes they say I delivering as how about when locations, on for infrastructure I know more we'll terms can't we in of warehouses guest of definitely I probably X the how evolve, the a locations for the broader we're brick-and-mortar that want, performs One have location the the going play gear sure launch the scale. And business the through is for and that but centers level get year terms without will brick-and-mortar like of the model need business in they to a that's want the existing go at especially. app we into it,

A early know. to So that. come more little too on to

Operator

Matthew question comes from with Boss Our JPMorgan. next

Matthew Boss

the all color. appreciate I Great.

or recapturing below on? And see you cited, And top view multiyear mid-single-digit most weather you change So you're line year Kirsten, spending this maybe in your structural margin the focused X-part just lead that EBITDA about through year? the on that Angela, there can question. expected customer are underlying any when any there elaborate think this based of maybe constraints core if think about visitation XXX season underlying is trends? the to with Or XXXX, margins to you you is shortfall the dollar growth. growth and growth basis underlying then a shifts the on any next that indicators you business, points for

rate. run the been that's your that Any think view? change in historical to I

Kirsten Lynch

and tack point, is spend sales big and by and XX% of QX a I'm impacted dollar and of snowfall you less indicators about a trends indicator. spending now past flow-through kind underlying strong part very into the about that first [indiscernible] trends. is not spring season, other visitation Thanks, we sales visitation second and which I first season, reflect think, looking I'm December, seeing price would ended let the outlined this underlying in that Matt. rental, so would the on is any pass that back I'm question seems sales the I in shift right am spending guests assuming. terms for of At right on spend. What visit seeing now. high shift on Angela the spending concerning, on I'll are we're what us. that the pulling I'll a from answer dining in that on the would their a seeing that early is certainly had indicator pass healthy question are also big margin. strong sales, of not seeing [indiscernible] school, very our ski growth our unit indicators any in obviously, reflect any not when the indicators

Angela Korch

this though this midpoint was margin, on we to kind talked by Yes, prior guidance the our our year XX%. impacted going happened Matt, season expected about into that what conditions obviously in saw, to with that margins QX. of of season-to-date. about And back the what we revenue into winter, of our QX, just winter the QX continued by we impact Outside what the talked and impacted you margins saw in we of and for season that the right, go

operating broadly company. this the forecast We time, move revenue year, our the see have to our broadly to ability the your to structure, right? over revised tied would -- is We for midpoint. I question cost XX.X% this leverage time. the growth really full high over which gives say So a do at us of more do the to ability the about the expand

here And of talked time. over about ways efficiency we've margins that so expand in we do for, resource can terms we right, what both and for see our opportunities

growth pass model, which of is your we really And see ability inflation the coming above in forward-looking algo was did what what the on for our for you've that second commitment growth give launch talk right, continue part price grow of terms rate. we your take price kind our growth what our of Sorry, year. do to right? in We you seen see or are, do historically, but don't drivers revenue advanced continue the to about also we kind those to us question of EBITDA with this and business

Kirsten Lynch

fortunate really app pass to about. and our like asked we guest -- it in our Epic that enormous base experience loyalty the holder the that that base, amount to it reinvesting and Gear, back is guest very Matt, on us My question guest loyalty -- spend spend, that retain keep comment, incumbent other innovation are that into dining, that keep also you and retain is have just your circle we among also on one is So an on of

Operator

Jefferies. from Our next Katz, question comes David

David Katz

thinking kind In I'm things. are think at to of we we European that mostly that value market? guide, time. weather in the just -- because the mountains mountains follow-up of we look I'm company what entirely curious over in a that little these is sort historically the adding they in because we change quick of of bit. are can Or ton And one of a terms, the weather general part is X on trying the just of a of to sort about sort different of done just add had really unpack those weather, value? have, part which are context has terms I of that them When on visitation? or

Kirsten Lynch

I'd network and we investment that which the the has brand, David, say of there with been believe unique Europe we very that because the make can into strategy to potential made the for that we And for European well-known investments absolutely the resorts, approach That there what Similar the opportunity growth is individually we is from Is are here. greater Each in potential. can stability potential build on. that them opportunity there? the have it North further but can to focused create to unlock longer unique where of had Europe we really we an America. a similar Andermatt-Sedrun there. growth real that And of even and value to has believe regards resort we take a Crans-Montana, have nature a is term the and believe in creation. potential will with drive and resorts expand

Angela Korch

quarter the American Western hit the in our part I'll down snowfall have called question. of big David, And change across in right, XX% terms of resorts. big and the that when obviously factor North That's And were second impact, visitation. on we conditions a impacts out we obviously our the a your

noted data lodging of we noted reduced factor respond seeing -- pattern March it kind guidance have was things based slower, here and what period right into obviously, the behavior holder in of East, shift indicators contributing is was items just the results, also quickly which in conditions a when in there for so terms some the full we year. And it didn't also our as to the the we improving. we we that though, behavior, our outlined as expected, improves we're the Rockies also in And did improved although right, pass and April of kind earlier, in and their on of see

Kirsten Lynch

is important our expectations think for I behavior guest debt. it of that information spring tied -- we to have we very pre-committed are very the have our the about and base

Operator

Our Patrick from Scholes comes next Truist. question with

Charles Scholes

A couple here. questions of

Was New as to? one was your how versus, but more expected? to, the that Christmas a bit alluded visitor or that comes destination say destination performed somewhat you drive Year's would you a as that your scale, over say, Or well? disappointment one, and First the perform

Kirsten Lynch

Patrick. Thanks,

our was by impacted of Our conditions. visitation -- season-to-date the all having snow

the that noted, for strong guests did per come, guest. we as did see, we think the spend I

to dining on visits But overall, board guests visitation the I'd tend So is spending which having that down would are network. impacted ski school that and to across that so snowfall and great was the reflect substantially say if across we a by rental destination orient have sign. more

Charles Scholes

Okay.

for were, equally that worse disappointing? I Or less both was say to bad fair So rough one guess, expectations or those than -- expected? less of the were any than you

Kirsten Lynch

impact snow versus both due of base the -- pre-committed strong are so to were enable were segments our we to pass, period the destination both us we'll much this a the quantifying other right in EBITDA deliver say time But the certainly, better board, year-over-year across And now. total us and local many We're I that have the guests expectations, saw Having terms would and impacted. upcoming of up. given the at [indiscernible]. a into a of impacts. is think really conditions on versus impacted the not understanding I season, of end the the or helped one

Charles Scholes

question Then Was you -- Or A-Basin is you about next question recent my on that? looked this at? okay. concerned antitrust sale. with were that something My next issues

Kirsten Lynch

actually to is saw of model. the XXXXs a makes which over a back to a in that had sense Breckenridge, to it and obviously lot an we long-term Arapahoe successfully of Arapahoe into we hope them. then appears over a Basin And Thanks. lot XX successful for Yes, Alterra our and and transitioned owned Basin divested strategy years. strategy the us very with of of Alterra very more it that for XX made for that partnership, very relationship there. have way we Keystone A-Basin an years acquired partnership announcement and might a we a when operated and had be pursuing And of we be similar respect acquisition

Operator

Morgan Megan with question comes next Alexander Stanley. from Our

Elise Louise Doss

a are expecting It's you some also visitation. your it an Megan. based improvement commentary, you've wanted quarter-to-date asking but questions April. to on the already March in by and follow-up like start Louise that of We encouraging for Doss on to here earlier improvement then on seems further seen

as of what you improvement and dynamics? were we saw embedded So are could XQ? given February relates that you is to expecting more hoping and maybe Easter the or it early kind perhaps you for the of visitation guide quantify that some break spring updated similar in And

Angela Korch

their and progressed Thanks we as at base of our the season-to-date say kind of behavior. pre-committed guests through looking to of our understand a right, year significant then guest we're for about why we've been period trends guidance, think rest And that said as we looking the have the at we've behavior question. do we have Yes, that implies.

as we'll Obviously, just in well. year conditions so both rest from we of we that March lodging and rest mentioned are in in is that have of shift translates the also the the April and before raise in terms assuming a that what And guidance for the of that revenue and bookings and into visitation patterns your visitation assumptions.

Kirsten Lynch

better Another historical would those our expectation to in place a guests think about conditions spring, it are typical that to more -- way the behavior. that given is the much in return

Elise Louise Doss

But Okay. questions was related reduction to of getting to about the perhaps year? for get much quantify of ] one maybe Great. guide related you for to next the thus how back to of Would possible XQ be in the how abnormal at point. much weather guidance underperformance just how And to weather? this could I going understand that aren't [ XXXX is that the you and it think

Kirsten Lynch

next a changes be more when much so able season we're provide this are the season part into think year for substantial the because the there's year is if a go we we'll to heading of through. what I behavior as on left of get context seeing fiscal full through year basis, us. fiscal we And still

details you provide more year. expect that can that commentary later fiscal in and So our we'll on

Operator

Our next question comes Chris from Deutsche Woronka, Bank.

Chris Woronka

kind get a could little drill what's about of price way us the that slice ask versus from visits. for down of a to your And just better a the up how right? we lot for and wanted bit to in maybe versus is maybe pricing transactional? using kind of growth some ancillary, I items than are give way ancillary coming what's much of held people Can it sense the price? Any sense a you skier

Kirsten Lynch

on to any the Angela wanted or pricing let And of combination Angela, combination you what easiest I her this business. a as I'll it generally on of -- it well. weigh a was you business, perspective the think the was to in very way on of that our thoughts guests it? that by comments line of factors. about have also spend on per did other per visit those but taken capture based make to and capture varies each guest increase and business think line But is additional on with the the Yes. --

Angela Korch

Yes.

of lines look on inflation all we plus price that, business ] course, generally and look building of our -- we there. Just we see take [ of across do that

F&B, which initiatives of particular, peak some captured see, And -- then to growth, we we on or initiatives we by do line higher how we're across trend, particular, a seeing F&B. much really up in saw to and dynamically obviously line our well. driving was this other as component and is continue you'll where there also business capture about pricing have And that than and you on ski talked X.X% on of awareness depending So business. returning getting demand that in that back that specific and revenue periods around both right, the drive which to campaigns shows success school, visitation volume year,

Chris Woronka

Okay. rental And second I know I program. the to that tell units of follow-up rent that a appreciate many more Can us then lodging. of how related that. year in something you Or going really that -- available? year And structural Is is have terms you to the through question is the vary that issue? fewer to called to -- out forward? going you is just having

Kirsten Lynch

own Yes. that management their of on of things, can depending on our both terms Also have owners' which year the desire units of we needs. to pools. in year. a to It depend kind depend property take in and does market, lot off can properties vary on from on

based will seeing. year each just trends that that on So vary we're

Operator

Montour comes next from Brandt Our from question Barclays.

Brandt Montour

I at certain seems COVID, use extent. hike going to post pass And elasticity going you churn we're concerned people your it over the sort price some normalization during So thoughts guess guys are that What you're and you from travel phase all question of now days right? the this as not on the are XX% work price cut like seeing and travel that? pass many pricing the of units grew is, either meaningfully, to some having the to folks back through. revenge not all with And or elevated from

Kirsten Lynch

year. greater based exact 'XX percentage variability weather that stability XX% to advance the timing visits pass, took create trying Pass our when, frequency again, varies Brandt. reset on -- this correct, a guess, reason ski price doing that's the That's a utilization, goal in year. took of last and group committed or data We quite every another because again and the I for in passes use move then in were passes that. successful we FY X% of much of the X% in whether impacts to that and group elasticity industry, their price and you took

the when data pass might lot on how of we've the renewal December a you of our a recall program. even data We and with had, growth, to was rate. renewal on of have it, the we predicted variability and lot driver as pass that's which huge our loyalty from sales, have that we information is a finished our And to their weather

industry. we don't is and impacted by can about on enough this year, think greatly utilization a ski the year down as -- snowfall is impact emphasize XX% this I their being significant So think I

the about next we based for then really the based that we to our holders, still behavior we And say the reminder, forward. and just did our return the that. reset, a on pass price data reset, as take were increase took could price consistently belief when historical pricing should right is from on year believed consistently price typical still is price normal that going increases so we've what we that our on there and taking utilization. And their were is And we have -- to that and elasticities approach executed we we delivered believe the a we're on the the that have

Brandt Montour

question, sort follow-up, a a flavor. same then And or helpful. of super question That's Okay. different different

XX then You years. data, XX a right? have have guys for lot or you past of And data

correlation we can so poor negative, a And mean, year. weather year you are churn? likely year that, and if positive there's you sales you're X I had next with to row had back weather poor how pass last either X even great of times whether to any following see or elevated see or a year. a when more pass years had sales you look likely had demand? I'm you Or And at go in you pent-up year, the for curious of more

Kirsten Lynch

Yes.

Brandt. absolutely You're right,

what when a like. years their a data someone rate their day We really have lot years of looks past and single pass use doesn't data even and of understanding renewal years and

will season predictive that and be can of we and pass 'XX the we the challenges by And in about course, where our in holders going for the so spring going the that we data historical and get pretty on into see just many this into we've had FY in that can weather renewal utilization business we, have of following factored disruptions past year have have based and much as expect -- terms is so the accurate being what into years And pass ski well. sales so data data that published because guidance on factored we forecast their that. That our is into highly we had behavior we that. of

Operator

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

Kirsten Lynch

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

Operator

This concludes Earnings Resorts today's XXXX Vail Call Quarter Fiscal and Second Webcast.

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

Vail Resorts (MTN) 11 Mar 242024 Q2 Earnings call transcript