MTN - Earnings call transcript Q3 2024

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Operator

Good afternoon, and welcome to the Vail Resorts Fiscal Third Quarter 2024 Earnings Call. Today's conference is being recorded. And following management's prepared remarks, the call will be opened up for your questions.[Operator Instructions]

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

You may begin.

Kirsten Lynch

you. Thank everyone. afternoon, Good 'XX Earnings to Call. Third welcome Conference Quarter and

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

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

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

Let's now results. Xrd XXXX, to fiscal our quarter

are XXXX Given American a large improved our Western XXXX, conditions in benefiting resorts ski resorts, American particular, for March the of improved from the conditions. season, with across unfavorable portion results see visitation across our North pleased we in April, to North and North American

spending commitment did businesses record by ticket our period. stability the Blackcomb, created the ski relative rental spring, the quarter. ancillary excellence visitation significantly strong per revenue third advanced resort products at return executional in the these which skier visit net our our prior visitation levels school, and operations, continued across in reported dining lift and to pass returned growth typical While grew not the from and resort EBITDA strategy, year Supported down resorts. April, historical we as to was as Whistler company behavior challenges, in to expected, at primarily for Despite guest communicated

Western results our the winter XXXX, North American in approximately investments XXXX provided highlight weather-related winter same to season by compared pass full period ski The season and and year and season comprise made significant through lower in prior included the season the resorts with variable stability our resorts, across natural and challenges snow employees. resorts have XX% Our our program our our for Eastern Mid-Atlantic North both which the American the snowfall Midwest, the temperatures we at Northeast resorts. U.S. and limited

committed particularly visitation total refundable we Despite decline of was during U.S. XXXX businesses in record compared season skier declining not Skier ticket XXXX, year to the driven school, the post-COVID, in as is XX% unfavorable period. the the which spending and combination at impacted, ancillary from guests, and rental ski strong year dining across compared period. by the broader was our XXXX prior of XXXX, visitation to For our season. industry North normalization conditions visits resorts. lift and ski advance season, prior visitation in ski and following declined European the X.X% which American believe was a the

cost third supported year, for in the over strategy, ancillary strong by X% continued our increased X% commitment resort the growth quarter EBITDA discipline. per and increased and Resort spending net revenue and second prior and visit combined advanced reported period guest

to I to Angela outlook. Now [indiscernible] turn like to over further would XXXX the call

Angela Korch

afternoon, good everyone. Thanks, Kirsten, and

the in of Vail share value pretax of expense third share $XX income contingent per resort per the or consideration includes Resorts the million XXXX see quarter approximately for net and Compared expense results quarter of million income approximately mentioned, million fiscal pleased $XXX change City improved to prior million our or income in of $XX of to in lease. pretax liability fiscal related fair Resorts year. for of compared the April. we prior attributable $X.XX to Park Net estimated in to diluted associated Vail Kristen was the of diluted the $X.XX XXXX third the were $XXX quarter to year. with Net attributable As the third March to

million fiscal net approximately income respectively. of for integration-related XXXX fiscal third Additionally, quarter the effect and expenses includes of of and after-tax the XXXX acquisition $XXX,XXX, $X and

to outlook XXXX. Now fiscal our turning for

$XXX While expenses is guidance million we with our acquisition-related Australian to the expenses with prior the March lowered but typical associated Resort expectations closing XXXX, operating demand primarily Crans-Montana, and Crans-Montana. reported with returning XX, the comparable period, outlook resorts. be basis specific $XXX million the now we related improved, expect as EBITDA lift the our million March results from expected guidance on million to with March on included and results to Along to not Blackcomb visitation, see provided issued to between the spring excluded April The XXXX, $X historical costs, in of for XX, a which quarter integration . $X and primarily of and primarily behavior fourth ticket relative for reduction

In million now closing in Crans-Montana including and the addition, resort $X the from XXXX. $XX with negative of results integration fiscal expect reported million $X EBITDA from the contribute quarter. closing and negative negative operating million acquisition, And of the to for fourth acquisition, we expenses

XX.X% the margin to XX.X% resort would midpoint of the million to excluding of EBITDA and EBITDA XXXX midpoint Crans-Montana, million income range. And net Resort Resorts expected guidance be of the between margin at Crans-Montana, be at impact the approximately million be Vail impact fiscal Resort range. the between guidance is $XXX of company and in to EBITDA the Including attributable reported million. $XXX now $XXX be expects to and full $XXX the

of BallzCreek and per and Australia economic related rate dollar $X.XX in the to exchange fiscal related Australian U.S. quarter. conditions the which outlook dollar assumes fourth Canada for of Both a continuation updated summer The rate Canadian the the season. throughout to $X.XX rate Hazem weather operations in normal North between Blackcomb and of of XXXX [indiscernible]. Perisher dollar [ began season of in guidance the OndermotSadrum [ current assumes and operations ski operations ] and operations environment related of and the American The our an and Whistler the to the exchange franc U.S. an an between Swiss and dollar between of ] Australian and $X.XX of exchange the at dollar U.S.

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

EBITDA. our X.Xx was XXXX, XX, debt total trailing April of As net reported XX months

the maturity on end. amount substantial debt our XXXX, an dates a May aggregate the X, $XXX On In We completed XXXX. fund redemption May net notes of proceeds XXXX. subsequent from quarter of due senior of the announce notes to these entire principal addition, the XX, amount the offering due a X.XX% we opportunistically to the senior X.X% million amount XXXX. million of used $XXX On extended company

amendment $XX approximately Holdings the also shares of maturity $XXX loan its the approximately million total for failed Additionally, extend of price million agreement million at of of X.X an company revolver to term repurchased $XXX an to company average XXXX. and the credit from the million The quarter. completed during a XXXX $XXX

for repurchased the April XX, million. months XXXX, shares For the ended million X.X company $XXX approximately X

of for repurchases while shareholders We returning shares. value on share and capital always remain have to the focused approximately X.X our under long-term million prioritizing authorization our shares remaining

XX, declared record will on per common quarterly Additionally, XXXX. as shareholders Resorts dividend XX, Vail June the company $X.XX a stock payable on of share. cash of July dividend of The to be XXXX,

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

agreed after or from XXXX, CHF of controls full the season. of Life lists supporting a locations. timing CHF on previously USD a announced X including X, AG, on company operates European the the one the mountain. previously an purchase price restaurants located ownership which acquired of second all entity The closed Crans-Montana ownership of winter rental million ownership purchase upon adjustments resort the announced million around price for operates of XXX.X certain stake, at stake and operations, XX Mountain the in XX% ski school and the million XX.X full the retail for ownership the increasing to located in the and reduction The closing after Sport [ for account a the XX% that of acquired items, company also As resort, including on purchase X and the resorts company and ]

CHF in of less will remain or XX Switzerland, from This for XX.X timing. that and train approximately resort X place miles Milan entirety CHF of for a or in valuation meters hours to the debt closing hours Geneva seasonality X.X resort X,XXX Crans-Montana the XXX La trails. Located was of million, spans from has approximately approximately X,XXX skiable including million account Canton approximately kilometers X the purchase vertical Zurich. The for world-class and and feet as operations adjusted price than of over adjustments and in

that XXXX, of approximately CHF full resort in the million anticipates the X the Resorts Bill will first July of generate operations ending ownership. the year company's XX, under year fiscal reported EBITDA

project Subject growth significant of on XX CHF network the the approximately completion, to expected X million capital in capital investments in time products, next of Epic [ spending inclusion from annual EBITDA the synergy and and is We X million. approvals spending over be invest onetime timing maintenance over Ball experience. guest to expect planning is Resource Normal guest experience. approximately to the capital CHF Pass the resort the ] years elevate to the

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

Kirsten Lynch

the Epic XXXX, by partially season Pass dollars X% are sales the the both Day Whistler Thank benefiting compared periods the increase Angela. the sales dollars dollar X% in for adjusted rate American units XXXX, impact the by foreign period currency year of are XXXX, X% XX, from Pass prior XXXX applying through XXXX, ski the of in May and an for dollar the approximately price U.S. exchange sales product eliminate the from to season North product of as in products. in growth pass to May Blackcomb increased XXXX. sales mix Pass sales. you, offset relative Canadian decreased XX, through between impact Pass $X.XX in to upcoming

in lift pass over sales are XXXX units in by have sales spring for The season-to-date visited increased XXXX for for the XX% XX% season. season spring in North new winter decline and XX% results winter guests. We past holders. the in has pass product decline this Pass product guests to new dollars The was were pricing believe prior Pass visitation ticket industry source ski a XXXX X results XXXX, pass from decline the following season. XXXX-XXXX prior grown season, driven a XXXX. years. units the sales in XXXX, the holders American relative spring past of in the record spring by to U.S. the impacted That year in ski primarily committing primary

ticket past behavior visitation of source This audience fully declined spring. due new as lift after a holders the and to typical primary season, Creating conditions improved. pass to in did weather the smaller return not

For lower pass more. for X company holders the renewal tenured among unit pass decision-making time strong lower in year pass including holders, renewing most have for second spring, achieved holders, the holders, guests years fall. growth may and delayed company's demonstrated or renewals loyal a renewing to pass who Spring reflect tenured the rates pass first the which had

product modest year Pass strength and relatively believe majority renewing to holders. ahead pass stable Day holder pass -- is trends net pass the The growth sales will was growth spring and dollar be by of unit as full Overall, positive. we compared the product renewing season selling in results. experienced Epic unit pass unit the us, our migration driven of An

the XXXX, about poor We on historically believe our are units XXXX Epic will end in down Australia and is release. results conditions May through of primarily more our approximately which XX, ski result XXXX sales pass during season in XXXX, the and provide information XX, earnings sales September XX% Australia. we in pass a June

the over past Pass Epic years. XX% has Australia X grown units The in

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

fleet, million we myopic incremental be plan $XXX season approximately capital for capital million regional announced, investments integration across fulfillment will $X activities, year million. official at million investments North capital launch previously My premium premium million million million investments $XX infrastructure approximately including plan for maintenance XXXX we and As winter calendar of expect at be Montana, $XXX for Andermatt-Sedrun, is in calendar XXXX support Lantana, fleet with reimbursable investments and the $X to capital our of Epic infrastructure total of expected $XXX resorts and growth at to and Crown which capital include now year million, at $XXX Gear the expect associated destination capital $X to investments million $XX to XX XXXX-XXXX fulfillment expenditures America. capital, of excluding and to onetime our of Crown

loyalty our that of greatly season. our of guests loyalty to that committed the holders and past resorts have season Mountain across In this closing, appreciate next already the pass we all our visited of continued

American to an ski With like to of thank and the guests. lifetime experience I coming North and our European our an their dedication frontline especially a season would for to to employees end, delivering passion

Angela Mountain to of time, in create I forward are happy mission all to your Resorts employees the and a season ski our resorts And ride X Our looking questions. an the answer to At and be experience Australia. lifetime. are core this we of will Vail at

ready we for Operator, are questions.

Operator

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

Shaun Kelley

wondering you've behavior saw, feedback on wondering are just pass younger activity us you Angela, cohort could you kind dig sale I pulling guests forward if hearing of deeper historically, insight the didn't are that the a the renew pass in in you little give from done on and of of could this that we just a incentivizing and new if period in on Kerstin, over sort that this what that well guess, pretty little specifically bit past cohort season. earlier that, because

bit. could some you're we're now little that a So trend deteriorate getting concerns whatever seeing actually

sense some So maybe bit. us waited give why to they maybe can little as a behavior some

hearing period you from past you that people what what early do from the maybe into in back as -- Just you kind some are of feedback here? the dug you've behavior saw

Kirsten Lynch

Shaun. you, Thank Yes.

most or growth. what or holders, rate. they pass our renewal holders, more X first-time Very I pass renewing had as lower are pass tenure. with our pleased is renewing strong tenured holders think holders that unit loyal those that -- when look lower-tenured see see that mentioned, years at to the I different pass and on pass holders demonstrate their we When depending renewals for year those we second tend been, decision-making making of they This behavior decision in had many about we audience, and to cases, decisions because group, conditions of them the vacations ski accustomed be this to by to still tend can their their there strong their look in particular is see renew to timing impacted this they closer we season. fall. a we When the volume see make in at did that

are The among scores audience experience strong. guest that have this we quite

because with I So is tell is have say behavior it decision that decision-making what is making this that have. a can't they're with there that past. in going to audience would you possible we the seen delayed I certainty What

Shaun Kelley

connected would it And was the a new normalization, around -- then to here you my feels passholders And right? follow-up like the activity be post-COVID with mentioned the second helpful. That's release lot in my -- of bit so visitation. just around -- a little especially

to of obviously, and piece have postcode to factor. of back sell that normalization lot that the You to, weather. base a traces But a is customers didn't different

you elaborate could there's of, meant a cross-currency And lot here. again, just So you of on by what that? kind

just factors? do you how the of of So both kind are those X, separate

Kirsten Lynch

was impacting on very we factors and I mentioned see the our for Spring can overall, versus came where it not say hard look a back to behavior be as the we conditions there's say ticket there. season conditions holders is guest improve biggest over up before conditions recovered being to both Thanks the on this the past in normalization And lift look and by us improved [indiscernible] where March driven season mentioned, season did at that that it's sales given post-COVID results sales, when impact with is or We conditions believe improve new is not conditions if spring the pass is that challenging see to it a were when we the or the where guests. When this material . normalization and not and and a normalization the impact behavior are single over, did do the to behavior when we Yes. And that question, look and Shaun. this when component season. for with that Pass pass easier able at

this not holders. the coming And from gas that source. to in that down the in or I highlight, is season, then holders though, audience -- the primary is of that lift context of behavior size significantly is that, into new pass new source spring of only also source It that pass impacting pass the conversion is ability is the new which of them convert our off primary ticket holders. would

As see head prospects for holders with we impacting holders being time we impacting new as well do the is the pass by this spring driven pass as But that sales it's size audience. lapsed pass industry also we fall, into normalization believe lapsed though, period, that because guests. of and ticket

We also conditions are factor, conditions good during during they look is conversion their not who primary can a at the will what poor conditions but visited factor. pass that and pass a rate and and see are to holders

Operator

Our with next from Stantial comes Jeff Stifel. question

Jeffrey Stantial

starting off, to slightly a ask way. question Shauns try I'll maybe first different just Angela, Kirsten,

like lift selling and lift the to So ticket up Kirsten, conversion demand going more me, Epic a ease of to headwind lot you to your talked selling season a seems the season during this season progresses. passes impacting spring spring soft about past from that as

conversions about selling You pass in some the and summer accelerate to of for the less talked tenured holders potential season. also fall in

the words, being you're it just you levels fair just Just color to help comments would remain reported stable trends us reconcile remainder. In to conclude conservative through expectation you a comment? with can is bit the the for be that with other there helpful? guess any So I to X those

Kirsten Lynch

of a different you that that Jeff. the the And fall have first-time the happen later shift possible highlight, holders is or highlighted as lot Thanks, we Yes, past. factors decision-making in moving XX-year pass and the it are in that those think in seen as I there in some spring year I terms holders, of versus pass did of season passholders second early their the behavior.

we decline for pool industry it think X%, our that a that is There is visits impact pass. through into have and in flows. does do which the believe why cycle, selling which we ski with rest X%, decline reduce And that it important I impact that transition an consistent. to the of is are guests to and of ebbs the an it remain would of was having us of will highlight consistent we said believe that the U.S.

the lift of a fall. improvement material a the But with right will prospect and in are here be We impact seeing negative spring. possible the from projecting overall, for the we not cycle. are in selling now, It's tickets successful we actually lapsed remainder

Jeffrey Stantial

Okay. wanted season the [indiscernible] in on I And then very later softness of year. in follow-up, Perfect. for click to this commentary. the my some helpful the That's double

you're You to might of versus in guess, of called little nuances a your out specifically the that higher you the resort there sort it nuances on to that Whistler terms resort is anything I seeing U.S. -- with Blackcomb that that Is traffic? as more? that here. explains anything that Just headwinds expand explain most more of showing resorts? could bit

Kirsten Lynch

saw longer. improve Resort U.S. Blackcomb at for home. our we very Yes. results conditions were Those in challenged at earlier looking Rockies we When did than stayed we Whistler conditions,

in destination When of the and is resort. we three, the spring into who's we we very that noted tickets, is lost we guests them susceptible So had visitation that one. use the that the recouping improving, we what started we didn't success have had we happen, guests weather that's we we we earlier historical returned visitation season, behavior. as on pre-committed two, to to is heading conditions. that past lift we -- very precommitted were that saw because ticket conditions expected will Jeff, believe tell And resort and to can had been spring, then that that were actually guest path, typical that visitation important expected expect those and lift expected Number number data, their

susceptible not in lift conditions did that is variable, see to we which very Whistler, improved we and And the the conditions why dragged oriented conditions the particular, at to the on see where is ticket and and longer we're with pass, visitation highly impact.

era think is potentially there well. Whistler that be restrictions some impacted impacts as post-COVID normalization also I and border Blackcomb could there that happening during

Operator

Mizuho. question Our from with next comes Chaiken Ben

Benjamin Chaiken

guests You decline weather, is that reasonable new guess largely holders primarily better lower the in passes with worse? pass driven pool with at that who pool noted to when you ticket pool being that given the look expected was you poor very have a consistent window decided day it the guests. pass, subsequently smaller, the at by I or penetration of it's would smaller single of purchase what was window scale, but just a

Kirsten Lynch

you're I'm I'm exactly asking sorry, to what Ben, make understanding reframe just can me. you question your sure

Benjamin Chaiken

catch given Sure, of reasonable from of Sure. the decrease smaller, window larger is new owners. the the weather, later? for saying make saying the the lower in but I'm season that a was were that past of it's that with expected? purchase who up penetration pass that, reasons guests the you that previous pool poor people did in purchase pool or guess And what And of sense, the you did major season. worse. very window line was we Better the pass, would one the can that have subsequently is didn't who if

Kirsten Lynch

No. I it. got

the not is an primary ticket audience the conversion that it what we that largest We lift our the pass is relative It for the size audience would of decrease. biggest driver. sales impact do is decline size expected, but year-over-year. impacts. the spring to is the The was year-over-year also impact that in see a have driver of primary the of there and So on guess new and in the the is both

Benjamin Chaiken

it. Got

And assume of years been you there's are then were or destination as there X customers the I not who of helpful. who now past, evolution of a would lot the pass about ago. part the That's program think Okay. X

sense guests You way extend who to evolve smooth the to seasonality or pass? to lower to the pass think season. mentioned tenure Do closer the of retail in the tend other add that for any demand partnerships, you utility core some renew In the add needs outside past extending the demand the the in to or make outside it season. otherwise the past core of and season would words, of essence,

would your Just thoughts up there?

Kirsten Lynch

Yes.

changed to loyal of compelling decision-making. your guests. behavior and has very as between to and for extent We the time that to benefit fall decision-making, and I think To on path local versus the the looking we're to the time our I company. composition cost dynamics over that shift the company do do shifts and and whether I'd and summer say spring or constantly ski at pass-holders destination ideas but That valuable different our tenured provide of that between proposition more our would have the pass think holder could between past, utilization changed even make have and always access the experiences season. is over spring has commitment the beyond then fall new season in, ski experience newer advanced the opportunities. long you're real and coming other and

Operator

from comes Vasilescu question next Our with BNP Paribas. Laurent

Laurent Vasilescu

U.S. Australia just weather. learnings was this -- guide that bad can the you -- provide weather for leading some Kirsten, in sales apply due the will how react pass Australia you noted indicator press And 'XX audience, when for the in FY primarily the quarter? could the this context there are season might Epic a release could if on you bad XX% any are actually Australia weather how in continue next going you is the next be to It's from so Could few when far? that for down units seasons.

Kirsten Lynch

Australia seasons, high a of has very that in variable the X next very, unfortunately, then decades. worst season like record season had Yes, highly amazing And conditions. year ago, years

the X of course tale extremes of years. over So X

I think pass there's is so dynamics think Australia Australia, the making unique I happening the yes, that or that economy. impacting -- do a in to condition about decision in related other

resource about factor unique a there of in the holders American the Epic Australia lot if are of pass the lot think our -- benefits more San of . And is is North you local good limited. a visiting see I optionality. our is what optionality lot our pass you of to And just North are and versus our resort. poor Colorado. business Tahoe, America or conditions or there's if is winter have live Whistler of Park in options challenging go when level of go you in go Francisco things in one to Australia to to That a a City

more in a dynamic are more that. a diversity of unique are us give with bit more little North dynamic guests it's little a So sort to the unfortunately, different, visitation stability destination help more local it is bit not around to versus that options to our flying, when oriented Australia at America geographic the resorts there and

Laurent Vasilescu

ratio XXX% the Very XX-month going another your payout how returns. different prioritize helpful. second basis. forward? dividend payout your you on Angela, at do question, discuss across the Kirsten, Can you strategy my allocation And asked in terms of way, ratio avenues Or ideal a is for what's shareholder trailing . capital

Angela Korch

Yes.

balance return at dividend the I we've fundamentals employee the at, did a And allowed specific place for generation us in the quarter. and over the we To capital experience ratio and route think, capital to see the underlying free how we to did looking the and resort of in currently, that do do is time, to that. have be per a got But where sheet capital se. all always of we think very we flow just that repurchase, allocation looking the been this business prioritize opportunistic strong all at priorities payout our do at of reinvesting looked at, like M&A cash we right? and Crans-Montana. experience. We for primary priority right, look We've our what our our return like we're And do our has been have look able dividend we to with not consistently allocation. in share shareholders, like we through capital

Operator

Alexander question next Stanley. comes with Our Morgan from Megan

Megan Christine Alexander

the a again. visitation on reason on your the having down price big to recently is is window prices whether of And But customer. ask -- largest lift that see weather won't lift obviously competitor a I'm I headwind that say curious impact? was thoughts from us clear just tickets tune your think you It's something just taking on Maybe ticket. follow-up did was ticket any you lift know said I it to anymore. I

So bigger just dynamic thoughts of potentially strategy something like changes would pricing. and some maybe room could to get pricing love some more there be think kind your your broadly you whether on for picture,

I goal commitment. that. lift funnel to ticket to advanced the time, about talking in people guests for understand same at the But is you're the push the being the

ability trying just kind how I'm about acquire strategy to to understand you the of think the So and guess? pricing and retain or

Kirsten Lynch

pass a with gas, is very from ticket a less variable people new is creates a as into primarily of Thanks, have, like often lift season, deliberately ticket for strategy be it lift Megan. decision-making refundable because them is it that The able pass selling yes. guests to new and our in they an ticket price, from stability no set on we and noted also guests, advanced to database connect comes but the basis, But skied extensive when pass where lapsed prior versus skied, we pass full to they holders you ticket holders move for I our to comes when prospects. lift spring holders are is And skied what as source our -- to look us source laps the one-to-one. know, comes that they know those from ticket. pricing the Related how with product cycle commitment

called as we lower part When I people XX% frequency product a skiing a huge that. of have In is units and a are are And of dollars X success. from guests to have strong sales into [indiscernible] and of of are local, correctly. those this diverse years enables grown launched our past in tickets we've days. enormous regional But launched that XX% have our strategy had script, those over remembering was of X doing some move FY to portfolio capture a it some sales, that portion line we've Day that transition I'm a in us resorts we that and past Epic mentioned I very during a the and -- that 'XX, have that product are order actually and the other been in if the allows Pass We of that, through past into destination. those to believe those some X at lift

taking And then when this meaning resort a are port starting price versus ticket one we and a resorts. you resort, to are look versus regional people destination resort buying often ticket for up them sport, of at local the traveling a the see [indiscernible] for a who don't destination plane

with support price reasonable as prices And at regional ticket to move local a to them purchase network We low very a destination. lift they as a and that then at to resorts. first-time those support programs a start they allows have

So that industry right people tend and to I'm also the a is sport. behavior. when based being do in it not, lift impact, an we is to the impact relative into is were leaving of our believe good there versus lift think but conditions to conditions move versus because we ticket at direct bad the decline this Day look price normalization just point, we on now, those when that related Pass what when tickets the conditions Epic I I XX% decline the lift decline, there the at if the were ticket see is data,

Megan Christine Alexander

And don't to but have necessarily people units full perspective, X%, the vail said I color. past industry, from some point, both appreciate follow-up Vail's a so the helpful. guess, the and just recovery. from just then I you a a maybe I you guess perhaps perspective down there. XXXX, How just this pretty be mountain an you there And we to what perspective. industry at at you're for going weather think from lapping really on about visitation less That's get challenging from end the skiing. should then a normalization season, was

of a that. Just as result

these all to just of year. any way how the next of kind about So net impact I factors guess of think should

the Does any one others? weight more factor kind of have over

Kirsten Lynch

on conditions normalization are both We We the the weather visitation, meaningful yet. -- factors quantifying yes. think and those

volume about on provide in will the guidance that information more share September we We as visitation expectations. and our

the On When sort what's that results at returning and and similar normalization. at look industry, normalization close at leisure normalized ski happening hearing fully not industry trend. that back or do -- in travel industry look leisure in or in whether like, I the the is industry done to I about commentary I you're continues that or the the and look it it's what of year. a or next to hard least travel to is say into ski does it mostly completely

Operator

from comes question Patrick next Truist. Our Scholes with

Charles Scholes

are part and weeks up why thing to Icon Good the hearing are to least curious between basin, couple is icon. at then -- they I difference been at I've unit last Certainly, the Blue X? you Crystal industry digits is back evening, between might opinion have as think they are. everyone. difference year-over-year. One of the will full of your what And going unlimited how Camelback added. were and I Anything are tracking sales I'm to the is in the about account that else a mid-single where think for the between think up least

Kirsten Lynch

some results helpful business always share can't was is frequency, in of our and that than results I anyone that converting I pass or product significantly think of were can the since where Thanks, a the for days, or high their they longer the cycle of reminder, early in results high drivers. on past existence we disclosures passes. business public types their its a context guests. Patrick. guests our been do has past were a now and don't And committed Yes, icons really What which life else's comment have is a and I

new make not as it markets, committed to think after I sense, launch just So products frequency new would you've the go most seen skiers. us high addressable evolve and

We when -- the their I'd offer the skiers if hard started dramatically to and say, product pass And pass think because are that of did, in context, our frequency dramatically when less in the business compare into stage for where the you growth we is the of ours have about the life versus different X or types are cycle we expanded lower dramatically riders. -- the committed if of different. guests and products going

is like say difference. likely key I not that it's peak a stage I'd mostly, think So

Charles Scholes

is Okay. operating of also And more question. follow-up this high-level what with? it community go to the You my ski is centralized HR, strategy then to in one investors question, the and competitor leaves There's of as a regarding resort bit the better main a with debate out to whereas certainly make more more operations it Mountain local a to folks greenfield your relates have and seem subsequently to decisions. of up

guess what, why one? your methodology, I your is in superior opinion, the

Kirsten Lynch

Well, finance, are our as the there's mountain HR, would is what's have That I Patrick. support accounting, marketing, important misunderstanding about a there's because decentralized operations. What to decentralized, operations, something this decisions be misperception Operations centralized a think like into Thanks, think resorts. things centralized procurement, support talking function. to not if about versus company, we or our about I we're centralized this. clarify functions

for running And comment That centralized resort. compares is on us. that operators not to the terrain, Altera. Our about responsible labor, I about decisions about of are the can't how safety, really about for

functions to own important Mountain is we have team in the consistency better or team have the or think and said, procurement have efficiency why I finance, do and I a can is support centralized providing company. That finance that cost operations for those provide support for that have accounting think or it's it's that we HR, HR is our we and when our centralized provide. of team really everyone marketing, more to good that have We not can don't their because team need qualify every mountain resort But we centralized resorts. support

of order operation. In enable to the our Mountain success

So mountain the and is operations believe having do changing. is think mountain operations strategy decision-making I our anticipate that also very and that successful. in that, right think also don't And and approach, reside resorts I the I and that

Operator

David with Our Katz Jefferies. next question comes from

David Katz

sense hear it. here? of appreciate Obviously, I just and how in a for but ramp thoughts we about I it's drill Can down that just is bit your some -- past on your underwriting, we my think sales that to expectations you've a little would there. and love Switzerland included

Kirsten Lynch

network we it And the as America, what really but important thank And to in a I unlike with build the continue years, sales. fully couple we've owned Europe for but positive, over a is opportunity highlighted, you Switzerland, of the ramp, David, for believe think significant X where started operated out do question. and pass us and feel in to unlock potential think unlock network build few that then the I started yes, resorts all to North a on a us see for now. resorts last order to incredibly happened strong I for not and we is of you there the got us.

Cran partnerships change. some trajectory and Europe. [ that the I under that, we that from having Europe see growth don't will think in and ] Matsudrun owning I think incredible I Do do is in some

we be what will X would go to early it you That time, you like saw and think would or happen. we've just had I out if of gradual the resorts is it X days built time. Epic only when anticipate over over back I Pass

value are and type that lot is definitely long-term offer there And and resort networks, that's have passes are market not we access, the of growth growth capable and it stability a strategy we see we as but there network, not in that take know, of the that time. significant, are of of the vision the a lot is that offering, you that and multi-resort potential will Europe a skier because

David Katz

my ask new to as any great? benefits? any learnings, knowable data that's about there app I follow-up, points, And the wanted Understood. would any Anything be and

Kirsten Lynch

will and is important is, I'm believe lift on track know, ticket, track the really adoption hope our base importantly, X. Most the you expanding the the that among have we new lift experience lines ticket on the David, year season and it in out pleased what my because improves we increase also expected our the and their in plastic all critical or reduces to our our with pass that for a of that move source into and my RFID guests. or expectations key actually is goal waste of mobile mobile It their and and the and in mail. create which with, ticket into is pass which was guests lift with using the to mobile as most in for Yes, We're also pass as that of for for expectations. which particular, more phone for that And including myopic next we innovations guest. we the we us Blackcomb. app piloting Whistler start experience the information, one ticket delivered will guest And cost waiting assistant, move more delivered be of also for cost guests arrive but mobile and efficiency app in future.

you say with track in everything year using all of phones to the with So our people that holds now. their of are excited I'm -- expectations, and terms adoption the given are all second of would on for those guest things I see

Operator

Our next comes question with Chris from Woronka Deutsche Bank.

Chris Woronka

of predictive know look weather the use do is and But impacting got I same question books to And initial when talked guys back at guidance the things you bookings? So of that the side more really end at -- level on you periods. typically side. store was kind look expect? than the Or hotel first about peak were say those the on September, the in that bookings, for it's what that of hotel I as you just now we ski hotel season, they the the have value offer do they hotel on initially you you've know for

Kirsten Lynch

We our close more really go kind we right, holiday bookings. in, looking when always those what indicator -- lodging do for Yes. But on for question. the at we're period comment our right, the seeing of Thanks, season, passed. we're also always best into Chris, being

you the see do markets what and lot that. And at, And so we think monitoring that for factor fill resort it look is we as not expected this in you saw actually continuing is kind a did as a year I of you of terms the the also there this talking normalization will, in, for in and, some as impacting fill well. of season conditions from with both through of if factors same that but travel the from you we're about think, I went likely behavior, the lodging keep

And for around X points the resort for really the occupancy communities, we winter saw season. declines

Chris Woronka

in more kind who rates launch, have renewing do is comments follow-up in confidence your with you have think gear better while, you And what available. given of of as about for the well we pass your holders? you're next Or think Okay. then you been lot and that with a right, Epic preliminary would rates? And think the you're doing change fully that about gear Epic look a that views renewal participation fact very being and we your out taking doing about to on year uptake into with any folks of you context that

Kirsten Lynch

not discretionary. we those about as needs providing for on get gear. the next think Epic revisit we of our pretty gear business place gear, My feel Thanks, that But right? needs Chris. Epic budget is course, in refine I assumptions It's but good our guidance everyone year. the will I of gear, beauty those and my I for that Everyone

actually for ready really the It's option you latest best So there this owning incumbent renting that is better for it's and because can the it's either have subscription, or gear. convenient guests more our and you. us to get a and it that we gear -- they convince on

that, and large, feel you gear that for is compelling the the and see I when I the addressable because that's market large, is So -- addressable needs a there. so everyone about potential it, idea market think why very very

I our a prove tenured, it's is So regardless low to that to of very proposition. And us compelling high guests. tenured on or think

Operator

Brandt from question Montour comes with Barclays. next Our

Brandt Montour

that and assuming weekends that alluded of tailwind already a something on to behavior comments, normalization you But holidays, a does of that more to. is an creating a touched that this. be the if also was I'm So something pressure business on for that a could additional could peak travel and a consumer shift definitely include total nice i.e., travel load it period, comment COVID. your you was headwind operations? that this in demand, -- headwind Kirsten, Is the COVID already that be it you which apologies -- early on But on sort obviously back included

Kirsten Lynch

was see years periods into people branch we if We versus those least strength grew see back did off-peak dynamic times. that period. in in sales, coming past natural data season, we And don't the a we saw -- post-COVID, at in there during that Including really, -- really shift anyway. of of our into are on that as recall periods not you'll this peak peak I'm periods, the still big shifting some we and I those right the those price see not seeing there that limiters peak signs past now.

year-over-year the is, the shifted say as -- see consumer do you've well, and I pretty I'd travel changed seen. has overall, What dramatically COVID, since overall, behavior

when look a industry, leisure And behavior seeing off from peak lot a the look believe outstanding, year of look peak travel talking the numbers of industry last with we signs this that, You've the industry, to down saying ski when to at visitation normalized in them. [indiscernible] X% and lapping ski more of conditions and look you ski when the season, but does past I about do a them for of some I as would would normalization had those more trend, say. year. consistent overtly line that, at consider X% year companies that the headwind this that's And of it last down -- with even or were past we what be heard

I'm right being between big At off-peak. least now, not peak seeing and shifts that

Brandt Montour

since not then yours, if And your data skier landscape. tiered super think, are than of strategic how you question widest And that initial product -- I guess level sort on Based from from and widening on you peer, they any another the position helpful. past Altera, every curious they That's profitability. reason their there's is think the terms of equal I'm if competitive Okay. versus positioning like in -- prices out the look might higher be that obviously launched. maybe And I ask it's a it created is available publicly trying and standpoint, does as yours. concern a I about to themselves mid-season

And you so that do how competitive think positioning? about

Kirsten Lynch

I X goal variety that that our over is our strategy, mind our visits the a And think They for in likely years over of committed to that don't of advance. get for the XX% to them. is good based and about I positioning research competitive our a business guest and about pass XX% dollars good feel very about that XX% on very in grew We Epic closely. our our and feel which units the have in the I perceptions different also Pass we very mature growth. past reasons. is monitor in And focus. same guests have

really is us, weather for it stability and move people of because path. to the But important impacts into a that create

loyal, pass have lot We of a long-tenured holders. very

do We that decision-making is did pass purchasing between our know price keep of of what have doing lot the pass, that have us up price price is we a take data to sensitive. about a acquired lift seen and move we price you've And doesn't pass since to change we holders, to new price it reset reset. XX% since and FX ticket pass that. the pass is the and on over what a pass lot Related sensitivity them up a that goal,

that results a is this EBITDA doing of highly be tickets will snowfall out need less visits monitoring when X%. that be revenue XX% to saw X%, up stability keep in to the that, revenue what still a we for deliver move into business having up winter the back we and and business people creates X% down high variable cost to dynamic are the not that fixed you but year, elasticity us able that And because price but always pass goal for lift is and because, we

think they're to pay yes, goals -- and what I doing, trying our attention we accomplish. to than different they're strategies are business I what but obviously So

Operator

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

Kirsten Lynch

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

Operator

concludes Earnings This Third Quarter Webcast. Fiscal today's XXXX and Vail Call Resort

time, disconnect and your have a at day. may any You lines wonderful

Vail Resorts (MTN) 6 Jun 242024 Q3 Earnings call transcript