VAIL RESORTS INC (MTN) SEC Filing 10-Q Quarterly report for the period ending Tuesday, October 31, 2017
Net loss attributable to Vail Resorts, Inc. was $28.4 million for the first fiscal quarter of 2018 compared to a net loss attributable to Vail Resorts, Inc. of $62.6 million in the same period in the prior year. Fiscal 2018 first quarter net loss included a tax benefit of approximately $51.8 million (or $1.29 earnings per diluted share) related to employee exercises of equity awards, primarily attributable to the CEO’s exercise of expiring stock appreciation rights (SARs) during the quarter. This tax benefit is recorded in net income (loss) as a result of the adoption of revised accounting guidance related to employee stock compensation.
Resort Reported EBITDA loss was $54.1 million for the first fiscal quarter of 2018, which includes $0.7 million of acquisition and integration related costs and approximately $1.9 million of additional payroll taxes related to the CEO’s exercise of expiring SARs, compared to a Resort Reported EBITDA loss of $53.3 million in the same period in the prior year, which included $2.8 million of acquisition and integration related expenses.
Season pass sales through December 3, 2017 for the upcoming 2017/2018 North American ski season increased approximately 14% in units and 20% in sales dollars as compared to the period in the prior year through December 4, 2016, including Whistler Blackcomb and Stowe pass sales in both periods, adjusted to eliminate the impact of foreign currency by applying current period exchange rates to the prior period.
The Company reaffirmed its core operating guidance for fiscal year 2018, with certain adjustments related to the CEO’s exercise of expiring SARs and currency fluctuations.
The following information was filed by VAIL RESORTS INC on Thursday, December 7, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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- mtn_10q_2017-12-07_117_137Financial - DividendSince the initial commencement of a regular quarterly cash dividend, our Board of Directors has annually approved an increase to our cash dividend on our common stock and on March 9, 2017, our Board of Directors approved a 30% increase to our quarterly cash dividend to $1.053 per share or approximately $42.6 million per quarter based upon shares outstanding as of October 31, 2017.
- mtn_10q_2017-12-07_68_215Financial - ExpenseOther operating expense of $1.5 million was primarily comprised of general and administrative costs, which includes marketing expense for the real estate available for sale, carrying costs for units available for sale and overhead costs, such as labor and labor-related benefits and allocated corporate costs.
- mtn_10q_2017-12-07_119_152Financial - DebtThe most restrictive of those covenants include the following covenants: for the Vail Holdings Credit Agreement, Net Funded Debt to Adjusted EBITDA ratio and the Interest Coverage ratio each as defined in the Vail Holdings Credit Agreement and for the Whistler Credit Agreement, Consolidated Total Leverage Ratio and Consolidated Interest Coverage Ratio each as defined in the Whistler Credit Agreement.
- mtn_10q_2017-12-07_55_73Financial - ExpenseOther expense increased 6.4%, primarily due to increases in variable operating expenses, including food and beverage and retail cost of sales and credit card fees, as well as an increase in property taxes.
- mtn_10q_2017-12-07_110_107MA - OtherCash used in financing activities increased $620.5 million during the three months ended October 31, 2017, compared to the three months ended October 31, 2016, primarily due to the reduction of proceeds from incremental term loan borrowings under our Vail Holdings Credit Agreement of $509.4 million during the three months ended October 31, 2016, which was used to fund a portion of the cash consideration for the Whistler Blackcomb acquisition, as well as increases in net payments under the Vail Holdings Credit Agreement and Whistler Credit Agreement of $24.4 million and $5.2 million, respectively.
- mtn_10q_2017-12-07_74_81Financial - IncomeInvestment income and other, net for the three months ended October 31, 2016 included a $3.4 million gain recognized on foreign currency forward contracts that were entered into in conjunction with funding the cash consideration required for the Whistler Blackcomb acquisition and a $0.8 million non-cash gain recognized on an investment in Whistler Blackcomb shares that we held prior to the acquisition.
- mtn_10q_2017-12-07_41_56Revenue - ProductAdditionally, dining revenue benefited from the inclusion of Stowe operations and an increase in dining revenue at Perisher, which was the result of higher visitation.
- mtn_10q_2017-12-07_19_29Revenue - ProductManagement primarily focuses on Lodging net revenue excluding payroll cost reimbursements and Lodging operating expense excluding reimbursed payroll costs which are not measures of financial performance under GAAP as the reimbursements are made based upon the costs incurred with no added margin, as such the revenue and corresponding expense do not affect our Lodging Reported EBITDA, which we use to evaluate Lodging segment performance.
- mtn_10q_2017-12-07_27_49Financial - Shares / EquityWe believe our liquidity will allow us to consider strategic investments and other forms of returning value to our stockholders including additional share repurchases and the continued payment of a quarterly cash dividend.
- mtn_10q_2017-12-07_99_101Other - OtherWe believe the Vail Holdings Credit Agreement, which matures in October 2021, provides adequate flexibility and is priced favorably with any new borrowings currently priced at LIBOR plus 1.25%.
- mtn_10q_2017-12-07_108_106MA - OtherThese increases were partially offset by an increase in cash interest payments during the three months ended October 31, 2017, compared to the three months ended October 31, 2016, from incremental term loan borrowings under our Vail Holdings Credit Agreement and borrowings under the Whistler Credit Agreement assumed by us as a result of the acquisition of Whistler Blackcomb in October 2016.
- mtn_10q_2017-12-07_108_104Other - OtherWe generated $148.8 million of cash from operating activities during the three months ended October 31, 2017, an increase of $91.7 million compared to $57.0 million of cash generated during the three months ended October 31, 2016.
- mtn_10q_2017-12-07_110_108Financial - DividendAdditionally, dividends paid increased $13.2 million during the three months ended October 31, 2017, compared to October 31, 2016, and cash payments for employee taxes related to exercises of share awards increased $58.0 million.
- mtn_10q_2017-12-07_109_246MA - OtherCash used in investing activities for the three months ended October 31, 2017 decreased by $516.5 million, primarily due to cash payments related to the acquisition of Whistler Blackcomb during the three months ended October 31, 2016 of $512.3 million, net of cash acquired, and a decrease in capital expenditures of $8.6 million during the three months ended October 31, 2017 compared to the three months ended October 31, 2016, partially offset by a reduction in cash received from the sale of real property.
- mtn_10q_2017-12-07_118_143Financial - Shares / EquityOn March 9, 2006, our Board of Directors initially authorized the repurchase of up to 3,000,000 shares of Vail Resorts common stock Vail Shares and later authorized additional repurchases of up to 3,000,000 additional Vail Shares July 16, 2008 and 1,500,000 shares December 4, 2015, for a total authorization to repurchase up to 7,500,000 Vail Shares.
- mtn_10q_2017-12-07_119_153Financial - DividendIn addition, our financing arrangements limit our ability to make certain restricted payments, pay dividends on or redeem or repurchase stock, make certain investments, make certain affiliate transfers and may limit our ability to enter into certain mergers, consolidations or sales of assets and incur certain indebtedness.
- mtn_10q_2017-12-07_23_183Other - OtherTogether with those risk factors we have identified in our Form 10-K, we have identified the following important factors as well as risks and uncertainties associated with such factors that could impact our future financial performance or condition:
- mtn_10q_2017-12-07_66_213Financial - ExpenseOther operating expense of $1.2 million was primarily comprised of general and administrative costs, such as labor and labor-related benefits and allocated corporate costs.
- mtn_10q_2017-12-07_106_244Other - OtherNet increase in cash and cash equivalents
- mtn_10q_2017-12-07_55_71Financial - ExpenseOperating expense excluding reimbursed payroll costs increased 5.6%.
- mtn_10q_2017-12-07_41_55Revenue - ProductDining revenue increased $4.9 million, or 36.9%, primarily due to incremental revenue from Whistler Blackcomb, reflecting a full quarter of operations as compared to prior year period which included operations from the date of acquisition, October 17, 2016, through October 31, 2016.
- mtn_10q_2017-12-07_100_103Financial - Cash FlowAdditionally, as of August 1, 2017, we retrospectively presented cash paid to taxing authorities on an employees behalf as financing activities on our Consolidated Condensed Statements of Cash Flows, which resulted in a $11.5 million decrease to cash provided by financing activities with a corresponding increase to cash provided by operating activities for the three months ended October 31, 2016, as shown below in thousands.
- mtn_10q_2017-12-07_118_147Financial - Shares / EquityVail Shares purchased pursuant to the repurchase program will be held as treasury shares and may be used for the issuance of shares under our share award plan.
- mtn_10q_2017-12-07_44_66Financial - ExpenseOther expense increased 21.9% compared to the same period in the prior year due to incremental expense from Whistler Blackcomb, as well as increases in repairs and maintenance expense, property tax expense, food and beverage cost of sales, supplies and rent expense, partially offset by a reduction of acquisition and integration related expenses.
- mtn_10q_2017-12-07_53_68Revenue - ProductRevenue from managed condominium rooms increased $1.7 million, or 19.4%, primarily due to incremental revenue from Whistler Blackcomb and increased revenue at our Colorado managed properties primarily as a result of increased occupancy.
- mtn_10q_2017-12-07_41_54Revenue - ProductPerisher generated increases of $4.0 million, or 18.9%, and $0.6 million, or 15.2%, in lift revenue and ski school revenue, respectively, primarily due to increases in pricing and higher visitation.
- mtn_10q_2017-12-07_44_65Financial - ExpenseGeneral and administrative expense increased 17.5% due to incremental expense from Whistler Blackcomb and Stowe, as well as increased corporate overhead costs.
- mtn_10q_2017-12-07_131_257Other - Otherour reliance on government permits or approvals for our use of public land or to make operational and capital improvements
- mtn_10q_2017-12-07_54_70Revenue - ProductOther revenue increased $0.7 million, or 6.1%, primarily due to increases in ancillary services, conference services and lodging retail, partially offset by the recording of business interruption insurance recovery in the prior year related to the early closure of our Flagg Ranch property in September 2016.
- mtn_10q_2017-12-07_42_57Revenue - ProductRetailrental revenue increased $8.9 million, or 24.5%, primarily due to an increase in retail sales of $7.3 million, or 23.2%, and an increase in rental revenue of $1.6 million, or 32.0%.
- mtn_10q_2017-12-07_34_190Other - OtherMountain segment operating results for the three months ended October 31, 2017 and 2016 are presented by category as follows in thousands, except effective ticket price ETP :
- mtn_10q_2017-12-07_112_113Other - OtherWe evaluate additional discretionary capital improvements based on an expected level of return on investment.
- mtn_10q_2017-12-07_24_40Revenue - ProductWe cannot predict the ultimate impact that season pass sales will have on total lift revenue or effective ticket price for the 20172018 North American ski season.
- mtn_10q_2017-12-07_56_75Financial - ExpenseSince the reimbursements are made based upon the costs incurred with no added margin, the revenue and corresponding expense have no effect on our Lodging Reported EBITDA.
- mtn_10q_2017-12-07_26_45Other - OtherAdditionally, under our Whistler Blackcomb credit facility the Whistler Credit Agreement , as of October 31, 2017, we had C$164.0 million $127.1 million available under the revolver component of the Whistler Credit Agreement which represents the total commitment of C$300.0 million $232.5 million less outstanding borrowings of C$135.0 million $104.6 million and a letter of credit outstanding of C$1.0 million $0.8 million.
- mtn_10q_2017-12-07_112_112Other - OtherCurrently planned capital expenditures primarily include investments that will allow us to maintain our high-quality standards, as well as certain incremental discretionary improvements at our mountain resorts and Urban ski areas and throughout our owned hotels.
- mtn_10q_2017-12-07_54_69Revenue - ProductDining revenue increased $0.5 million, or 3.5%, primarily due to increased revenue at our Colorado lodging properties and at Park City.
- mtn_10q_2017-12-07_97_95Financial - Cash FlowHistorically, our operations generate seasonally low operating cash flow in the first fiscal quarter given that the first and the prior years fourth fiscal quarters have limited North American Mountain segment operations.
- mtn_10q_2017-12-07_116_134Other - OtherOur long term liquidity needs depend upon operating results that impact the borrowing capacity under our credit agreements, which can be mitigated by adjustments to capital expenditures, flexibility of investment activities and the ability to obtain favorable future financing.
- mtn_10q_2017-12-07_77_90Other - OtherThe effective tax rate benefit for the three months ended October 31, 2017 was 74.5% compared to 34.5% for the three months ended October 31, 2016.
- mtn_10q_2017-12-07_99_100Financial - Cash FlowWe expect that our liquidity needs in the near term will be met by continued use of operating cash flows and borrowings under both the Vail Holdings Credit Agreement and Whistler Credit Agreement, if needed.
- mtn_10q_2017-12-07_53_67Revenue - ProductRevenue from owned hotel rooms increased $1.6 million, or 8.7%, primarily due an increase in occupancy at Flagg Ranch, which incurred an early closure in the prior year period as a result of a forest fire in Grand Teton National Park, as well as an increase in revenue at GTLC.
- mtn_10q_2017-12-07_129_255Financial - Expensehigh fixed cost structure of our business
- mtn_10q_2017-12-07_112_116Other - OtherIncluded in these estimated capital expenditures are approximately $65.0 million of maintenance capital expenditures excluding maintenance capital expenditures at Whistler Blackcomb, which are necessary to maintain appearance and level of service appropriate to our resort operations.
- mtn_10q_2017-12-07_99_99Other - OtherAlso, to further support the liquidity needs of Whistler Blackcomb, we had C$164.0 million $127.1 million available under the revolver component of our Whistler Credit Agreement which represents the total commitment of C$300.0 million $232.5 million less outstanding borrowings of C$135.0 million $104.6 million and a letter of credit outstanding of C$1.0 million $0.8 million.
- mtn_10q_2017-12-07_118_149Financial - Shares / EquityThe timing as well as the number of Vail Shares that may be repurchased under the program will depend on several factors, including our future financial performance, our available cash resources and competing uses for cash that may arise in the future, the restrictions in our Vail Holdings Credit Agreement, prevailing prices of Vail Shares and the number of Vail Shares that become available for sale at prices that we believe are attractive.
- mtn_10q_2017-12-07_42_58Revenue - ProductThe increase in retail revenue was primarily attributable to incremental revenue from Whistler Blackcomb and increased sales at our front range stores in Colorado.
- mtn_10q_2017-12-07_42_59Revenue - ProductThe increase in rental revenue was primarily attributable to incremental revenue from Whistler Blackcomb as well as increased rental sales at Perisher.
- mtn_10q_2017-12-07_39_52MA - OtherMountain Reported EBITDA decreased by $1.8 million, or 3.1%, which includes an operating loss from Stowe acquired in June 2017 due to no ski operations.
- mtn_10q_2017-12-07_27_48Financial - Cash FlowThis, combined with the continued positive cash flow from operating activities of our Mountain and Lodging segments less resort capital expenditures, has and is anticipated to continue to provide us with significant liquidity.
- mtn_10q_2017-12-07_74_82Financial - IncomeAs a result, investment income and other, net for the three months ended October 31, 2017 decreased $4.1 million compared to the same period in the prior year.
- mtn_10q_2017-12-07_5_17Financial - EarningsMountain, Lodging and Real Estate, the measure of segment profit or loss required to be disclosed in accordance with GAAP, may not be comparable to other similarly titled measures of other companies.
- mtn_10q_2017-12-07_134_260Other - Otherrisks related to our reliance on information technology, including our failure to maintain the integrity of our customer or employee data
- mtn_10q_2017-12-07_82_223Other - OtherGain loss on disposal of fixed assets, net
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- Form Type: Quarterly
- Number of times amended: 0
- Accession Number: 0000812011-17-000131
- Filing Date: Thursday, December 7, 2017
- Accepted by the SEC: Thursday, December 7, 2017 8:02:29 AM EST
- Period Ending: October 2017