Vail Resorts Inc Q2 FY2025 Earnings Call

Good afternoon, everyone, and welcome to the Vail Resorts Fiscal Second Quarter 2025 Earnings Conference Call. Just a reminder, today's call is being recorded. Currently, all callers are in a listen-only mode. After management’s prepared remarks, the call will be opened up for your questions. Now, I'll turn things over to Kirsten Lynch, Chief Executive Officer of Vail Resorts. Please go ahead.

Thank you. Good afternoon, everyone. Welcome to our fiscal 2025 second quarter earnings conference call. Joining me on the call this afternoon is Angela Korch, our Chief Financial Officer. Before we begin, let me remind you that some information provided during this call may include forward-looking statements that are based on certain assumptions and are subject to a number of risks and uncertainties, as described in our SEC filings; actual future results may vary materially. Forward-looking statements in our press release issued this afternoon, along with our remarks on this call, are made as of today, March 10, 2025, and we undertake no duty to update them as actual events unfold. Today's remarks also include certain non-GAAP financial measures. Reconciliations of these measures are provided in the tables included with our press release, which, along with our quarterly report on Form 10-Q were filed this afternoon with the SEC and are also available on the Investor Relations section of our website at www.vailresorts.com. Let's turn to our fiscal 2025 second quarter results. We are pleased with our overall results for the quarter, with 8% growth in resort-reported EBITDA compared to the prior year. Our results reflect the stability provided by our Season Pass Program, our investments in the guest experience, and the strong execution of our teams across all of our Mountain Resorts. Second quarter visitation at our North American resorts was slightly above prior year levels with the benefit of improved conditions, partially offset by the expected continued industry demand normalization and the shift in destination guest visitation for the spring. Destination guest visitation at our Western North American destination Mountain Resorts was below prior year levels, which we believe was driven by the continued shift in historical visitation patterns across the ski industry to later in the ski season, which increased after challenging early season conditions in the prior year. Local guest visitation was in line with expectations as conditions across our North American resorts improved from the prior year and returned to more typical conditions. Ancillary spend per destination guest visit was strong across our Ski School and Dining businesses throughout the quarter. While overall revenue in our Ancillary businesses was impacted by the lower mix of destination visitation. Moving to our resource efficiency transformation plan, Vail Resorts is on track to achieve its two-year Resource Efficiency Transformation Plan, which was announced in our September 2024 earnings through scaled operations, global shared services, and expanded workforce management. The company is on track to improve organizational effectiveness and scale for operating leverage as the company grows globally, and deliver the expected cost efficiencies in fiscal year 2025 along with the $100 million in annualized cost efficiencies by the end of its fiscal 2026 fiscal year. Now I would like to turn the call over to Angela to further discuss our financial results, season-to-date metrics, and fiscal 2025 outlook.

Thanks, Kirsten, and good afternoon, everyone. As Kirsten mentioned, this quarter's results were driven by the benefit of improved conditions, partially offset by the expected continued industry demand normalization and the shift in destination guest visitation to the spring. Net income attributable to Vail Resorts was $245.5 million or $6.56 per diluted share for the second quarter of fiscal 2025, compared to net income attributable to Vail Resorts of $219.3 million or $5.76 per diluted share in the same period in the prior year. Resort reported EBITDA was $459.7 million for the second fiscal quarter, which did include $2.9 million of one-time costs related to the previously announced two-year Resource Efficiency Transformation Plan and $0.1 million of acquisition and integration-related expenses, which compares to resort reported EBITDA of $425 million in the same period in the prior year, which included $2.1 million of acquisition-related expenses. Turning to our season-to-date metrics. The reported ski season metrics are for the period from the beginning of the ski season through Sunday, March 2, 2025, and compared to the prior year period through March 3, 2024, and are for the company's North American destination Mountain Resorts and regional ski areas, excluding the results of Australian and European resorts in both periods. The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments. Season-to-date, total skier visits were down 2.5% compared to the fiscal year 2024 season-to-date period. Season-to-date total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period was up 4.1% compared to the fiscal year 2024 season-to-date period. For our Ancillary business results, season-to-date ski school revenue was up 3%, dining revenue was up 3.1%, and combined retail and rental revenue for North American Resort and ski area locations was down 2.9% compared to the prior year period. Similar to the drivers in the second quarter, season-to-date results through March 2, 2025, reflect strong local visitation from the improved conditions early in the season and with destination visitation impacted by the industry demand normalization and an expected shift in destination guest visitation to the spring. Ancillary spend per destination guest visit was strong across the company's Ski School and Dining businesses with overall performance reflecting the higher mix of local visitation during the period. Now turning to our outlook for fiscal 2025. Excluding a $7 million negative impact from the change in foreign currency rates, the company's resort reported EBITDA guidance midpoint for fiscal 2025 is unchanged from the original guidance provided on September 26, 2024. For the remainder of the season, the company is expecting improved performance compared to the season-to-date period, including a continued shift in destination visitation patterns to later in the ski season. And this is based on a significant amount of pre-committed guests, our current lodging booking trends, and historical guest behavior patterns. The company now expects net income attributable to Vail Resorts for fiscal 2025 to be between $257 million and $309 million. The company expects resort reported EBITDA for the fiscal 2025 period to be between $841 million and $877 million, consistent with the original fiscal 2025 guidance provided on September 26, 2024. The updated guidance includes an estimated $15 million in one-time costs related to multiyear Resource Efficiency Transformation Plan and an estimated $1 million of acquisition and integration-related expenses specific to Crans-Montana. In addition, compared to the original guidance, the updated guidance includes an estimated $7 million impact from foreign exchange rates. At the midpoint, the guidance implies an estimated resort EBITDA margin for fiscal 2025 to be approximately 28.8% or 29.3% before the one-time costs related to the Resource Efficiency Transformation Plan. The updated guidance also assumes a continuation of the current economic environment, industry normalization to pre-COVID guest behavior, and normal weather conditions for the remainder of the 2024-2025 North American and European ski season and the 2025 Australian ski season. In addition, updated guidance reflects the foreign currency exchange rate volatility as compared to the original assumptions. The updated guidance assumes a currency rate as of March 7, 2025, including an exchange rate of $0.70 between the Canadian dollar and U.S. dollar related to the operations of Whistler Blackcomb in Canada, an exchange rate of $0.63 between the Australian dollar and the U.S. dollar related to the operations of Perisher, False Creek, and Hotham in Australia, and an exchange rate of $1.13 between the Swiss franc and the U.S. dollar related to the operations of Andermatt-Sedrun and Crans-Montana in Switzerland and does not include any potential impacts related to future fluctuations in foreign currency exchange rates, which may be impacted by tariffs, trade disputes, or other factors. As of January 31, 2025, the company's total liquidity as measured by total cash plus revolver availability and delayed draw term loan availability was approximately $1.7 billion. This includes $488 million of cash on hand, $509 million U.S. revolver availability, and $450 million of U.S. delayed draw term loan availability under the Vail Holdings credit agreement and $204 million of revolver availability under the Whistler Credit Agreement. On January 27, 2025, the company completed an amendment of its Vail Holdings credit agreement, which increased the U.S. revolver by an incremental $100 million to $600 million and provided an incremental $450 million term loan facility in the form of a delayed draw term loan, which the company can draw upon at any time at its option until January 2026, when any unused amount of the delayed draw term loans will expire. Additionally, on January 30, 2025, the company repurchased approximately $50 million of its zero percent convertible senior notes for an aggregate cash repurchase amount of approximately $48 million, representing a 4% discount to par value. Following the closing of these repurchases, the company has $525 million of zero percent convertible senior notes outstanding, which mature on January 1, 2026. Proceeds from any borrowings on the incremental term loan facility and the increase in the revolver credit loan commitment, both of which are coming drawn, are available to be used to refinance the company's zero percent convertible senior notes or for other general corporate purposes. Until the convertible notes mature or otherwise refinanced or repurchased, the company will continue to benefit from the zero percent interest coupon. Overall, the company continues to have a strong balance sheet. As of January 31, 2025, the company's net debt was 2.5 times its trailing 12 months total reported EBITDA. The company declared a quarterly cash dividend on Vail Resorts' common stock of $2.22 per share. The dividend will be payable on April 10, 2025, to shareholders of record as of March 27, 2025. In addition, the company repurchased approximately 0.1 million shares during the quarter at an average price of approximately $196 per share for a total of $20 million. The company has 1.5 million shares remaining under its authorization for share repurchases. We will continue to be disciplined stewards of our shareholders' capital and prioritizing investments in our guests and our employee experience, high-return capital projects, strategic acquisition opportunities, and returning capital to our shareholders. The company has a strong balance sheet and remains focused on returning capital to shareholders while always prioritizing the long-term value of our shares. Now I'll turn the call back to Kirsten.

Thank you, Angela. We are dedicated to delivering an exceptional guest experience, and we'll continue to prioritize reinvesting in the experience at our resorts, including consistently increasing capacity through lift, terrain, and food and beverage expansion projects, along with investments in technology to further elevate the guest and employee experience at our resorts. The company expects its capital plan for calendar year 2025 to be approximately $198 million to $203 million in core capital before $45 million of growth capital investments at its European resorts, including $41 million at Andermatt-Sedrun and $4 million at Crans-Montana and $6 million of real estate-related capital projects to complete multiyear transformational investments at the key base area portals of Breckenridge Peak 8 and Keystone River Run, and planning investments to support the development of the West Lionshead area into a fourth base village at Vail Mountain. Including European growth capital investments and real estate-related capital, the company plans to invest approximately $249 million to $254 million in calendar year 2025. Key capital investments include the launch of two multiyear transformational investment plans at Park City Mountain and Vail Mountain, significant lift, snowmaking, and restaurant upgrades at Andermatt-Sedrun, a new 6-pack lift at Perisher, new functionality for the May Epic App, more advanced AI capabilities for My Epic Assistant, and technology investments across the company's Ancillary businesses. Our guests are passionate about the mountains they love, and so are we. Our investments in innovation have set the standard for the guest and employee experience across the ski industry. Our business model has made the sport more accessible and created unprecedented stability amid climate change for our shareholders, mountain communities, and the sport more broadly. Throughout this journey, we have achieved numerous successes as well as learned valuable lessons. Vail Resorts has a proven track record of turning challenges into opportunities for innovation and enhancement. We have listened to our guest feedback and are proud of the progress we have made in the following key areas: reducing friction in the guest experience. Over the last 10 years, we have invested nearly $2 billion in capital improvements, including more than 30 new lifts in the last five years. Our award-winning digital innovations such as Mobile Pass, My Epic Assistant, and My Epic Gear have significantly reduced friction in the guest experience. These investments have contributed to a decrease in lift-line wait times year-over-year for the last three seasons. This season, lift lines lasting more than 10 minutes have occurred approximately 3% of the time, including during weekends and holidays. Also, accessibility. The introduction of products such as Epic Day Pass provide exceptional value to even the occasional skier or snowboarder, keeping the Epic Pass unparalleled in access and unmatched in value. To further illustrate, an adult Epic 1-day pass for next season is available for as low as $56, significantly lower than a lift ticket. Also, the employee experience our frontline team members are key to creating an experience of a lifetime. By investing in their experience, we are investing in the guest experience; continued investment in wages and benefits have transformed talent into a strategic competitive advantage, leading to the highest return rate of frontline talent in our company's history. And stability; ensuring the ski industry not only survives but thrives is crucial to our business, guests, employees, and the communities in which we operate. Our continued focus on growing our Season Pass Program has created unprecedented stability for our industry, and our recent financial results highlight this stability. Through the second quarter, guest satisfaction scores across our destination mountain resorts and regional ski areas were strong and grew relative to scores in the prior three years, excluding Park City Mountain, where the guests experienced during the 13-day petroleum union strike was not the experience we wanted to provide. Turning to Pass Sales, the company launched Pass Sales for the 2025-2026 season with a wide range of advanced commitment products, including the Epic Pass, which offers unlimited unrestricted access to Vail Resorts' 42 owned and operated Mountain Resorts and access to additional partner resorts across South America, Japan, and Europe, and the Epic Day Pass, which allows skiers and riders to build their own pass and provides up to 65% savings compared to lift ticket prices. New to the 2025-2026 season, access to Verbier 4 Vallées is expanded to more Epic passes, with five consecutive days of unrestricted access included on the Epic Pass and Epic Adaptive Pass and five consecutive days access with some restricted dates included on the Epic Local Pass, Epic Australia Pass, and the Epic Australia Adaptive Pass. On average, pass prices have increased 7% over the prior season pass launch price and continue to represent tremendous value to our guests, further supported by our compelling network of Mountain Resorts, our strong guest experience created at each Mountain Resort, and our commitment to continually investing in the guest experience. We appreciate the loyalty of guests visiting all of our Mountain resorts this season and for the continued loyalty of our pass holders that have already committed to next season. In closing, I would like to thank all of our employees, especially our frontline employees for their passion, hard work, and commitment to creating an experience of a lifetime for our guests. The guest experience that our employees created is our mission as a company and lies at the center of our success. We all look forward to welcoming guests to our Mountain Resorts this spring. At this time, Angela and I are happy to answer your questions. Operator, we're now ready for questions.

Thank you very much. We'll go first this afternoon to Shaun Kelley of Bank of America.

Hi, good afternoon. Thanks for taking my questions. Kirsten or Angela, can we just start with kind of the core conditions on the ground? Obviously, if we look at the season-to-date metrics provided, it looks like visitation actually slowed a little bit in North America from what was provided in the early season update. So you've talked a lot about things improving from here or on balance. So could you just walk us through whether it's calendar and timing of spring breaks? We know Easter falls quite late. What kind of improvement do you need to see? Should we see it more on the visitation side or more on the mix side? Just maybe help level set expectations from here? And maybe a little bit of color about what you saw in February, just to help us kind of get a sense of how much things need to improve to hit the numbers from here.

Thank you for the questions. Currently, we feel positive about the conditions at our resorts. We have a mix of resorts with some at historical normal snowpack levels, some slightly below, and others slightly above. Overall, we are within the range of historically normal conditions. In terms of Q2 compared to season-to-date metrics, which included February, our visitation at North American resorts was slightly higher than the previous year, benefiting from improved conditions, although this was partly offset by the ongoing normalization of industry demand and a shift in guest behavior towards spring vacation timing. Therefore, Q2 visitation exceeded the prior year's levels. In February, however, we did see a decrease in visitation compared to last year, which we anticipated. The comparisons for December and January were easier due to the significant impact conditions had last year. February presented more challenges, alongside the continued normalization of industry demand. Looking ahead to spring, we believe our conditions are solid and our local visitation aligns with our expectations. We're evaluating indicators for destination guest visitation, including a strong base of pre-committed guests such as our pass holders and analyzing their usage patterns. Additionally, we're monitoring lodging-booking trends for the spring in both our owned properties and the broader market where our Mountain Resorts are located. There has also been a long-term trend in the ski industry toward visits occurring more frequently in spring, likely due to favorable weather conditions, which has been a period of increased guest interest for over a decade, and this trend informs our assumptions as well.

Thank you. As a follow-up, I wanted to zoom out a bit. In your prepared remarks, you provided more insight than we typically receive regarding key constituencies and your messaging. Kirsten, you mentioned guest satisfaction scores and touched on employee satisfaction, particularly concerning frontline team members and lift lines. Considering all of this, do you think there’s a need for a broader shift in how you communicate your narrative? There’s a lot happening around Park City, but the issues extend beyond that, affecting employees, mountain towns, and consumers. Given the current social media landscape, how are you approaching this? Are there initiatives in place to reengage those core constituencies and possibly convey your message more effectively?

Thanks, Shaun. I completely agree. Our guests are very passionate about our Mountain Resorts and their experiences. We are fortunate to have such a dedicated customer base. While we strive for perfection, we recognize that there are times when things don't go as planned. It's important for us to acknowledge when challenges arise and take steps to address them. Sharing these insights shows that we are consistently listening and responding accordingly. It's crucial to convey that the situation during the 13-day petroleum union strike at Park City Mountain was difficult and did not meet our expectations for guest experience. We recognize this and are taking action. However, it's worth noting that this situation does not reflect the guest experience at our other resorts during that period. Our employee engagement and the quality of guest experiences, excluding Park City, were very strong, and we want to ensure that this message is communicated. Thank you for bringing this up.

We go next now to Jeff Stantial at Stifel.

Hey, good afternoon Kirsten and Angela thanks for taking our questions. Maybe starting out here on some of the more recent demand trends that you've been seeing. We've been hearing that there's some softening in room rates and visitation trends at some of the U.S. resorts that are closer to the Canadian border just as the consumer up there starts to respond to the preparers and some of the rhetoric coming out of Washington. I'm just curious, is this something that you have seen recently at any of the resorts, I guess, on either side of the border? And then similarly, if you could add some color on just how the broader international guests have behaved this season in light of all the FX, the political and the macro volatility? That would be helpful. Thanks.

Thanks, Jeff. We monitor very closely the visitation trends as well as the lodging and booking trend. I can't say that right now, we've seen a very overt or explicit reaction to the tariffs. We will continue to monitor that very closely. I think that our largest international visitation resort is Whistler Blackcomb. And when we look at Whistler Blackcomb, we are seeing it perform similarly to the other resorts in our portfolio where we have strong local visitation the destination visitation has not been to where we would want it to be. And of course, because they have such a strong international visitation, there is a bit of longer planning or booking curve associated with that. I think in December, we had called out that the bookings were lagging prior year levels. We have seen the Whistler Blackcomb bookings improve through the season, but they are still lagging our U.S. resort markets potentially in reaction to the really tough year that they had last year. And we continue to make sure that we're building the awareness of how strong the conditions are there and encourage our international and domestic destination guests to come visit.

That's great. And you do have some destination visitation coming up next week. So hopefully, that helps. And then for my follow-up, just turning over to the Epic Pass launch for the upcoming season. It sounds like based on the commentary in the prepared remarks that base of kind of core destination visitation does seem to be back on track this season and we'll kind of monitor and see how the remainder of the season plays out, but it does seem to be back on track, back to normalize. So my question is, is your expectation that pass sales in units get back to growth this year? Are there other kind of multiyear headwinds or puts and takes that we should be contemplating just as we think about trajectory of pass sales from here? Just any thoughts there would be great. Thanks.

Thanks, Jeff. Yeah, we continue to believe that the Pass has plenty of room and opportunity for growth because of the database that we have to talk to guests one-to-one because of the upside potential in the East in destination markets and then eventually long-term in Europe as well. I would say that we will probably have a better perspective when we get through this season. Right now, yes, we do expect to continue to grow that business. In terms of like any multiyear normalization impact right now, we are assuming that we took the normalization impact in this prior sales cycle. And if we get any indications otherwise, we'll make sure that we share that.

We go next now to Megan Clapp with Morgan Stanley.

Hi, good evening. Thanks so much. I maybe wanted to ask Shaun's first question on visitation just a bit differently. In January, you did say in the release that you expected improved performance compared to the season-to-date period. Obviously, you said February contracted. That was as you expected, but sitting here today, you are still saying you expect improved performance, and you didn't change the guide. So putting that together, is it fair to assume that you'd still expect visitation to improve from that down 2.5% today to something positive? I'm just thinking relative to the flattish in January? Or has what you're expecting for overall visitation maybe changed a bit and there's something else offsetting maybe some conservatism that's allowing you to maintain the guide today?

Thanks, Megan. I'll take that one. So yes, we did expect the comparison in February; we knew right that's when conditions in the prior year had improved. So we knew that, that would be a tougher comp, if you will, than the Q2 period. So as we talked about kind of that progression, that's what we were seeing into February. The improvement that we're expecting for the rest of the season is really an improved trend from the trend currently season. So that's down 2.5%. And we are not expecting to turn positive for the full year, though. And so we're just saying that this shift in destination behavior that's coming later will improve it from what we've seen currently through the season-to-date period.

And Megan, just to build on that, the reason why we're not expecting it to turn positive again is the underlying core assumption of a normalization of guest participation, guest frequency relative to pre-cut. So I just wanted to make sure I reiterated that.

Thank you for your comments. I would like to follow up on Pass sales. I understand you have recently launched them and will have more insights later in the season. However, reflecting on your experience with the Epic Pass, you've been selling passes for around 15 years, or even longer. Considering recent trends, I am interested in your perspective on how these factors might affect Pass sales, based on historical data. There seems to be increasing concern regarding consumer behavior, as demonstrated by Delta's mention of softer demand. Additionally, the Park City strike has impacted guest experiences. On the other hand, strong conditions might indicate pent-up demand. Given these factors, I would like to know your thoughts on how they might influence Pass sales as we approach the selling season in the coming months.

I'll first address the situation at Park City. We quickly decided to offer credits to guests because we wanted to respond to the fact that even though the resort remained open during the petroleum strike, the experience was not what we had hoped for due to the snow conditions. Our goal is to show our commitment to pass holders, acknowledging that their experience was unsatisfactory, and the credits can be used toward next year's pass, allowing us to regain their loyalty. It's essential for us to earn back that loyalty and recognize that we did not meet the expectations of our team or the guests. Regarding consumer demand in the current macroeconomic climate, it's challenging to predict the exact impact at this moment. However, if we finish the season with the expected visitation and pass usage, I would be optimistic that we will be positioned for a strong sales season for next winter's passes.

We go next now to David Katz with Jefferies.

Good morning, everyone. Thank you for taking my questions. I wanted to ask about Europe and how your progress is there, what kind of traffic you are seeing, and what trends, if any, you are noticing from the U.S., particularly as it relates to travel costs for those going to Europe. Any insights would be appreciated.

Hi David, we are excited to have our first year at Crans-Montana this year. Operating the two resorts in Switzerland, we are starting to gather a lot of insights. We're learning about the market, especially from our experiences over the past few years in Andermatt. We're focused on understanding where we can find success across the region. While travel from the U.S. isn't the main aspect of our strategy, it's a valuable benefit for our Epic Pass holders to have access to Switzerland. The market is primarily attracting visitors from within Europe and beyond, which is where we see long-term growth opportunities. It's still early to observe a significant shift in travel patterns between North America and Europe.

The only build, I would agree with all of that, David, and the only build I would say is that our teams are learning a lot about the market, the guest, that the European ski market is huge and really understanding that guest better their expectations, but also even some unique differences in how the mountains are operated. For example, some of the European resorts are very sophisticated and automated snowmaking, automated avalanche control, autonomous lift systems. So there's some really great learnings about how we operate the mountains that we're gaining during this early tenure as well.

Hi, thanks for taking my question. I wanted to go back to EBITDA guidance for just one second. So you mentioned some relative FX impact on EBITDA, so at midpoint Resort EBITDA is unchanged. But I was wondering if you could give a bit more color on puts and takes for the top end of range? It seems like that came down more than the FX impact? And then I have a quick follow-up.

Arpine, this is Angela. We did include a $7 million negative impact on operating expenses at the midpoint of our range, which reflects the shift from the September guidance. This is the only change noted at the midpoint. Typically, as we approach March, we narrow the range, which results in an increase in both the upper and lower ends proportionate to the new midpoint. The factors that can influence whether we end up at the top or bottom of these ranges are primarily based on our key assumptions for the remainder of the year regarding improvements in destination visitation and how we anticipate the industry will contract over the full year. Additionally, external conditions can also have an effect, although their impact tends to be less significant at this point in the season.

Great. Thank you. That's helpful. And then I was wondering, would it be possible to talk kind of more broadly about labor cost pressures? This is a question that we get often. Is it possible to quantify what you were expecting a quarter ago and how those puts and takes have changed in light of some of the labor agreements you've made throughout the quarter? Kind of that incremental pressure on EBITDA this year and more importantly, sort of run rating into '26. Would you say there is a material impact in your outlook as you look at the cost basis on a run rate basis outside of the $100 million of cost savings? Thanks.

Thank you. No, we would not say there is a material impact from the labor contracts that we have negotiated. We also have made significant changes in terms of how we manage our labor. One thing you've probably heard us talking about as an example is workforce management as a tool that is actually a benefit to how we utilize our labor on the mountain and enables us to have strong efficiencies this year, but also as we look forward with the Resource Efficiency Transformation Plan, we believe that this will have a significant impact on that as well. But the labor union contracts and just for some context, obviously, those teams and those contracts are very, very important to us. The number of labor unions we have is five out of our 37 North American Ski Patrol Teams are unionized in two out of our 37 North American Lift Maintenance Teams are unionized. So when we look at the decisions that we're making on those labor contracts, we are looking at them in totality across the entire enterprise and the impact they have.

Thank you. We'll go next now to Brandt Montour of Barclays.

Hello, everyone. I appreciate you letting me ask a question. I wanted to inquire about the Day Pass prices. Kirsten, you mentioned a 7% increase, but when I examine the all resorts Day Pass, it appears to have increased much more than that, around 25% to 30%. Am I interpreting this incorrectly, because it doesn't seem to align with the 7%? More importantly, is this a strategic change regarding Day Pass pricing? My follow-up question is about demand elasticity. When you lowered prices in '21, you experienced a significant rise in units. Do you have any concerns about demand decreasing if you're raising the Day Pass prices at that level?

Thanks, Brandt. We'll follow up with you offline. I think it's important to ensure you have the correct comparison point. The overall increase is 7% across the board. It seems the Epic Day passes may have been compared to an incorrect benchmark from previous years. We'll provide that data separately offline to ensure we're aligned. We're not significantly increasing the price of the Epic Day Pass for the reasons you've mentioned, as we have a strong understanding of price elasticity. We view that pass as an entry point for many low-frequency skiers who transition from lift tickets to that pass, allowing us to retain them and encourage increased usage over time, as well as promote other pass products. We did not increase prices by 25% to 30%. We'll ensure we clarify this in our follow-up. Yeah. Thanks for that follow-up. We factor that into our decision making. And it is, as you noted, I mean, it is always threading a needle in understanding the guest behavior or the price elasticity, but also what we're providing on the pass to access to the resorts and then the investments that we've made. And so we feel good about the 7% and where we're landing on that pass product. And we are constantly trying to make sure that we strike the right balancing act in not tipping too far on price, because we still do believe that there is growth to be had here. Hence, the reset that we took. And so making sure that these price increases we've taken that reset are appropriate for the experience and the investments we've made, but not taking it too far. And we believe the 7% strikes that balance. Thank you, operator. This concludes our fiscal 2025 second quarter earnings call. Thanks to everyone who joined us today. Please feel free to contact Angela or me directly should you have any further questions. Thank you for your time this afternoon.

Thank you, Ms. Lynch again. Ladies and gentlemen, this concludes today's Vail Resorts fiscal second quarter 2025 earnings conference call and webcast. You may disconnect your line at any time, and have a wonderful day. Thanks again, everyone.