Stock in the Spotlight: Vail Resorts, Inc. (NYSE:MTN)

On Thursday, Vail Resorts, Inc. (NYSE:MTN) has shown upward/downward move of +1.24% and ended the last trade at $223.32. The trading volume was recorded to 246,836 shares as compared to average traded volume of 369,345 shares.

Vail Resorts, Inc. (MTN) recently stated results for the second quarter of fiscal 2019 ended January 31, 2019 and provided the Company’s ski season-to-date metrics through March 3, 2019.

Highlights

  • Net income attributable to Vail Resorts, Inc. was $206.3M for the second fiscal quarter of 2019 contrast to net income attributable to Vail Resorts, Inc. of $235.7Min the same period in the previous year. As before revealed, fiscal 2018 second quarter net income included a one-time, net tax benefit of about $64.6M (or about $1.55earnings per diluted share) related to the U.S. Tax Cuts and Jobs Act.
  • Resort Stated EBITDA was $358.0M for the second fiscal quarter of 2019, which includes the operations of Triple Peaks and Stevens Pass and $2.9M of acquisition and integration related expenses. In the same period in the previous year, Resort Stated EBITDA was $308.9M, which included $1.4M of acquisition and integration related expenses.
  • The Company updated its fiscal 2019 guidance range and is now expecting Resort Stated EBITDA to be between $690M and $710M. The updated guidance incorporates $12M of acquisition and integration expenses, including $2M for the recently-reported Falls Creek and Hotham resorts transaction and $4M of unfavorable foreign exchange as a result of the U.S. Dollar strengthening relative to the time of our initial guidance issued in September 2018, of which nearly half has been realized year to date. The guidance does not incorporate any predictable results or stamp duty payments for Falls Creek and Hotham.
  • The Company’s Board of Directors accepted a 20% raise in the quarterly cash dividend to $1.76 per share from $1.47 per share starting with the dividend payable on April 11, 2019 to shareholders of record as of March 27, 2019.
  • On February 21, 2019, the Company reported that it entered into an contract to acquire Falls Creek and Hotham resorts in Victoria, Australia. The Company expects the acquisition to close previous to the commencement of the Australian ski season in June 2019.

“Including results from Triple Peaks and Stevens Pass in the second quarter of fiscal 2019, total lift revenue raised 17.2%, driven by a 27.0% growth in skier visitation. Total effective ticket price (“ETP”) reduced 7.8% in the second quarter contrast to the previous year, primarily Because of higher skier visitation by season pass holders and the impact of the new Military Epic Pass, partially offset by price raises in both our lift ticket and season pass products. Not Including season pass holders, ETP raised 8.3% contrast to the previous year. The strong rebound in visitation and spending contrast to the previous year, together with the addition of Triple Peaks and Stevens Pass, drove a 15.1% raise in ski school revenue, a 21.3% raise in dining revenue and an 11.3% raise in retail/rental revenue contrast to the previous year.”

Operating Results

A more complete discussion of our operating results can be found within the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of the Company’s Form 10-Q for the second quarter ended January 31, 2019, which was filed recently with the Securities and Exchange Commission. The following are section highlights:

Mountain Section

  • Total lift revenue raised $65.6M, or 17.2%, contrast to the same period in the previous year, to $447.6M for the three months ended January 31, 2019, primarily Because of strong North American pass sales growth for the 2018/2019 North American ski season, raised non-pass skier visitation at our western U.S. resorts and incremental revenue from Triple Peaks and Stevens Pass.
  • Ski school revenue raised $12.1M, or 15.1%, and dining revenue raised $11.5M, or 21.3%, for the three months ended January 31, 2019 contrast to the previous year, primarily as a result of incremental revenue from Triple Peaks and Stevens Pass and raised revenue at our other U.S. resorts as a result of higher skier visitation.
  • Retail/rental revenue raised $13.0M, or 11.3%, for the three months ended January 31, 2019 contrast to the same period in the previous year, primarily Because of higher sales volumes at stores proximate to our western U.S. resorts and other stores in Colorado, as well as incremental revenue from Triple Peaks and Stevens Pass.
  • Operating expense raised $58.4M, or 16.0%, which includes incremental operating expenses from Triple Peaks and Stevens Pass.
  • Mountain Stated EBITDA raised $47.0M, or 15.4%, for the fiscal quarter contrast to the same period in the previous year, which includes $4.3M of stock-based compensation expense for the three months ended January 31, 2019 contrast to $4.0M in the same period in the previous year.

Quick ratio for most recent quarter was 0.40 while current ratio for time period was 0.50. In most recent quarter, LT Debt/Equity ratio was listed at 0.92 and Total Debt/Equity ratio was noted at 0.95.

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