MTN Q3 2021 Earnings

Call Details

• Call Title: Vail Resorts Q3 2021 Earnings Call
• Date: June 7, 2021 9:00 PM UTC
• Management Team:
  • Rob Katz (Chief Executive Officer)
  • Michael Barkin (President)

Call Summary

Financial Performance

• Net income attributable to Vail Resorts for Q3 fiscal 2021 was $274.6M or $6.72 per diluted share on a GAAP basis.
• Net income attributable to Vail Resorts for Q3 fiscal 2020 was $152.5M or $3.74 per diluted share on a GAAP basis.
• Resort reported EBITDA for Q3 fiscal 2021 was $462.2M on a company-reported (non-GAAP) basis compared to $304.4M in the prior-year period.
• Resort reported EBITDA margin for Q3 fiscal 2021 was 52%, compared to 43.9% in Q3 fiscal 2020 and 50.2% in Q3 fiscal 2019.
• The quarter included a deferral impact of approximately $120.9M of past product revenue and $2.9M of related deferral costs shifted from Q3 fiscal 2020 into fiscal 2021.
• Ancillary revenue lines such as food and beverage and ski school remained significantly constrained and materially depressed versus lift revenue.
• The company maintained disciplined cost controls and operated ancillary lines at reduced capacity, which materially supported margin expansion in the quarter.

Guidance

• Fiscal 2021 net income attributable to Vail Resorts is expected to be between $93M and $139M on a GAAP basis.
• Fiscal 2021 resort-reported EBITDA guidance is $530M-$570M on a company-reported (non-GAAP) basis.
• The company expects resort-reported EBITDA margin for fiscal 2021 to be approximately 28.9% using the midpoint of the guidance range.
• Guidance assumptions explicitly include all operations open with current health protocols, normal Australia ski and North American summer weather, and no COVID-19-related shutdowns.
• Guidance explicitly assumes no impact from potential demand or operational disruptions associated with the lockdowns in Victoria, Australia.
• The company did not reinstate the dividend this quarter and stated the board will monitor the public health and economic outlook quarterly before reinstating the dividend.