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Vail Resorts Reports 2Q2013FY Results; Announces Record Capitol Plan & Enhancements For 2013

Vail Resorts Reports FY2013 2nd Quarter Results, Unveiling Record Capitol Plans to Enhance Rider Experience at Several Resorts

PRESS RELEASE

BROOMFIELD, Colo.(March 6, 2013) – Vail Resorts, Inc. (NYSE: MTN) today announced today reported results for the second quarter of fiscal 2013 ended January 31, 2013, as well as the Company’s ski season-to-date metrics through March 3, 2013. Vail also announced its calendar 2013 capital expenditure plan. The Company’s 2013 capital plan includes a high-impact new lift, significant terrain expansion, a new restaurant and the fourth generation of EpicMix, as well as $25 million in spending for the first phase of its new summer operations and nearly $10 million in upgrades for each of the recently acquired Afton Alps and Mt. Brighton, resulting in the largest number of planned improvements in the Company’s history. The Company currently anticipates it will spend approximately $130 million to $140 million in resort capital expenditures in calendar year 2013, including approximately $47 million to $52 million in maintenance capital, which is necessary to maintain the appearance and level of service appropriate to resort operations, including routine replacement of snow grooming equipment and rental fleet equipment. All of the proposed capital projects are subject to applicable regulatory approvals, including U.S. Forest Service approval.

Robert Katz, Chief Executive Officer, commented, “We are very pleased with our performance in the second quarter of fiscal 2013, which was notable for two distinct dynamics we experienced in the quarter. The first was our results through the middle of December, which were marked by unusually warm and dry weather in Colorado that limited the terrain we could open, leading to lower than expected results for our four Colorado resorts. The second began with the Christmas and New Year’s holidays as weather conditions in Colorado returned to more normal patterns, leading to strong visitation and significant consumer spending in our ancillary businesses producing a record holiday season. Subsequent to the holidays, this momentum continued with solid results through the end of January. For the quarter, excluding the Acquisitions, lift revenue excluding season pass revenue was up 11.9% compared with the same period in the prior year and we saw continued growth in ancillary revenue, with dining revenue up 11.7%, retail/rental revenue up 10.7%, and ski school revenue up 9.5%. Additionally, excluding the Acquisitions, Mountain Reported EBITDA increased $16.6 million, or 13.7% compared to the three months ended January 31, 2012.

Our lodging results benefited from higher visitation in the peak holiday periods and higher demand for luxury rooms. Despite the slow start to the season for our Colorado properties, revenue at our owned hotels and managed condominiums increased 5.5%, contributing to a 43.4% increase in Lodging Reported EBITDA compared with the same period in the prior year.

We are continuing to see increasing levels of buyer interest and are encouraged by the rate of sales we are seeing at both of our development projects. During the quarter, we closed on four Ritz-Carlton Residences, Vail and three One Ski Hill Place units. Real Estate Reported EBITDA improved 26.0% for the second quarter of 2013, and Net Real Estate Cash Flow for the second quarter was $8.9 million and was $14.4 million year-to-date. Subsequent to the end of the quarter, we closed on two additional Ritz-Carlton Residence and five additional One Ski Hill Place units.

Our balance sheet remains in a very strong position. We ended the quarter with $136.6 million of cash on hand and no borrowings under the revolver component of our senior credit facility and our Net Debt was 1.7 times trailing twelve months Total Reported EBITDA.” Katz added, “I am also pleased to announce that that the Board of Directors has decided to increase our quarterly dividend by 10% and declared a quarterly cash dividend on Vail Resorts’ common stock of $0.2075 per share, payable on April 9, 2013 to stockholders of record on March 25, 2013. The decision to increase our dividend was due to the results we are seeing this season, the strength of our business model and balance sheet, and the confidence we have in our future growth prospects.”

With Vail Resorts’ recent acquisition of Afton Alps, Minnesota skiers and snowboarders can already look forward to next winter as the Company invests nearly $10 million in significant enhancements to the ski and ride experience and offers the greatest resort access and value in the snow sports industry on one season pass, the Epic Pass.

As part of Vail Resorts’ commitment to providing the experience of a lifetime to all of its guests, the Company plans to invest nearly $10 million in enhancements and upgrades to Afton Alps this summer to dramatically improve the guest experience next winter. Vail Resorts intends to significantly improve snowmaking to open the ski resort earlier, extend the season and provide a more consistent and high-quality snow surface; create state-of-the-art terrain parks with extensive new features and rope tows; energize and modernize the base area facilities; and add Vail Resorts’ signature EpicMix and EpicMix Racing technology to personalize the guest experience.

Vail Resorts also is bringing its popular season pass products, the Epic Pass and Epic Local Pass, to Minnesota skiers and riders and offering access to Afton Alps as well as eight iconic resorts in the West–Vail, Beaver Creek, Breckenridge, Keystone, and Arapahoe Basin in Colorado and Heavenly, Northstar and Kirkwood in Lake Tahoe. Even better, kids can ski and ride Afton Alps and these eight western resorts for $5 less than 2012-2013 Afton Alps Child Pass. Adults can ski or ride all nine resorts for $529, just $130 more than a current Afton Alps Pass. Purchasing next season’s pass now through April 14guarantees the lowest price and offers skiers and riders the option of making a $49 down payment now with the remainder due in the fall.

We’re thrilled that Afton Alps is now a part of our family of resorts. It’s a very special place steeped in snow sports tradition and we intend to honor that legacy by bringing additional enhancements to the ski area and creating more value for Minnesota skiers and riders in their season pass choices. Next winter, they’ll be able to ski as much as they want in their own backyard and at eight world-class resorts out West with the Epic Pass,” said Kirsten Lynch, executive vice president and chief marketing officer of Vail Resorts. “Vail Resorts’ season passes offer guests the flexibility to choose which pass is right for them based on how much and where they plan to ski and ride. We encourage all of our guests to purchase their passes this spring to take advantage of the lowest guaranteed price for next winter.”

The following guide can help Minnesota skiers and snowboarders choose the best season pass options for them, based on how much they plan to ski and ride locally and out West. All passes are available for purchase at www.epicpass.com

Continue to Page 2 for the highlights of the expenditure plan and seasonal passes

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