Vail Resorts Inc 10-Q for FY2025 Q1

Vail Resorts Inc (MTN)

10-Q 2024-12-09 For: 2024-10-31

Added on April 09, 2026

About this 10-Q

Vail Resorts Inc filed this 10-Q on December 9, 2024, covering the quarter ended October 31, 2024 (FY2025 Q1).

Headline figures

Quarter ended October 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $260.28M; up 0.7% from $258.57M a year earlier
Net loss: $172.84M; compared with a net loss of $175.51M a year earlier
Diluted EPS: -$4.61; compared with -$4.60 a year earlier

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Delaware		51-0291762
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

390 Interlocken Crescent
Broomfield,	Colorado	80021
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	MTN	New York Stock Exchange



PART I	FINANCIAL INFORMATION	Page

Item 1.	Financial Statements (unaudited).
	Consolidated Condensed Balance Sheets as of October 3 1 , 2024, July 31, 2024 and October 31 , 2023	2
	Consolidated Condensed Statements of Operations for the Three Month s Ended October 31, 2024 and 2023	3
	Consolidated Condensed Statements of Comprehensive Loss for the Three Months Ended October 31 , 2024 and 2023	4
	Consolidated Condensed Statements of Stockholders’ Equity for the Three Months Ended October 31 , 2024 and 2023	5
	Consolidated Condensed Statements of Cash Flows for the Three Months Ended October 31 , 2024 and 2023	6
	Notes to Consolidated Condensed Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33


	October 31, 2024		July 31, 2024		October 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	403,768	$	322,827	$	728,859
Restricted cash	14,675		14,236		11,532
Trade receivables, net	130,162		375,752		105,546
Inventories, net	152,943		118,988		157,707
Other current assets	152,071		79,558		130,861
Total current assets	853,619		911,361		1,134,505
Property, plant and equipment, net (Note 7)	2,434,776		2,422,635		2,344,601
Real estate held for sale or investment	85,317		86,548		86,465
Goodwill, net (Note 7)	1,671,080		1,677,975		1,668,028
Intangible assets, net	300,530		302,535		300,457
Operating right-of-use assets	254,489		256,627		187,128
Other assets	42,404		40,756		38,832
Total assets	$	5,642,215	$	5,698,437	$	5,760,016
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 7)	$	1,297,994	$	1,000,798	$	1,276,525
Income taxes payable	8,628		55,358		16,663
Long-term debt due within one year (Note 5)	57,045		57,153		69,659
Total current liabilities	1,363,667		1,113,309		1,362,847
Long-term debt, net (Note 5)	2,709,955		2,721,597		2,732,037
Operating lease liabilities	233,304		233,465		165,462
Other long-term liabilities	310,303		311,768		285,454
Deferred income taxes, net	279,687		279,815		286,036
Total liabilities	4,896,916		4,659,954		4,831,836
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.01 par value, 25,000 shares authorized, no shares issued and outstanding	—		—		—
Common stock, $0.01 par value, 100,000 shares authorized, 46,922, 46,855 and 46,851 shares issued, respectively	469		469		469
Additional paid-in capital	1,146,518		1,145,610		1,126,033
Accumulated other comprehensive loss	(71,436)		(67,288)		(78,376)
Retained earnings	524,450		780,431		619,727
Treasury stock, at cost, 9,484, 9,370 and 8,885 shares, respectively (Note 11)	(1,155,902)		(1,135,685)		(1,034,822)
Total Vail Resorts, Inc. stockholders’ equity	444,099		723,537		633,031
Noncontrolling interests	301,200		314,946		295,149
Total stockholders’ equity	745,299		1,038,483		928,180
Total liabilities and stockholders’ equity	$	5,642,215	$	5,698,437	$	5,760,016


	Three Months Ended October 31,
		2024		2023
Net revenue:
Mountain and Lodging services and other		$	187,050	$	182,834
Mountain and Lodging retail and dining		73,162		71,442
Resort net revenue		260,212		254,276
Real Estate		63		4,289
Total net revenue		260,275		258,565
Operating expense (exclusive of depreciation and amortization shown separately below):
Mountain and Lodging operating expense		266,264		255,576
Mountain and Lodging retail and dining cost of products sold		28,947		31,295
General and administrative		106,857		108,025
Resort operating expense		402,068		394,896
Real Estate operating expense		1,491		5,181
Total segment operating expense		403,559		400,077
Other operating (expense) income:
Depreciation and amortization		(71,633)		(66,728)
Gain on sale of real property		16,506		6,285
Change in estimated fair value of contingent consideration (Note 8)		(2,079)		(3,057)
Loss on disposal of fixed assets and other, net		(1,529)		(2,043)
Loss from operations		(202,019)		(207,055)
Mountain equity investment income, net		2,151		859
Investment income and other, net		2,493		3,684
Foreign currency loss on intercompany loans (Note 5)		(264)		(4,965)
Interest expense, net		(42,154)		(40,730)
Loss before benefit from income taxes		(239,793)		(248,207)
Benefit from income taxes		58,249		65,160
Net loss		(181,544)		(183,047)
Net loss attributable to noncontrolling interests		8,708		7,535
Net loss attributable to Vail Resorts, Inc.		$	(172,836)	$	(175,512)
Per share amounts (Note 4):
Basic net loss per share attributable to Vail Resorts, Inc.		$	(4.61)	$	(4.60)
Diluted net loss per share attributable to Vail Resorts, Inc.		$	(4.61)	$	(4.60)
Cash dividends declared per share		$	2.22	$	2.06


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


(303)			404-1800
(Registrant’s telephone number, including area code)


	Common Stock		Additional Paid in Capital	Accumulated Other Comprehensive Loss		Retained Earnings		Treasury Stock		Total Vail Resorts, Inc. Stockholders’ Equity		Noncontrolling Interests		Total Stockholders’ Equity
	Vail Resorts
Balance, July 31, 2023	$	468		$	1,124,433	$	(10,358)	$	873,710	$	(984,306)	$	1,003,947	$	331,713	$	1,335,660
Comprehensive loss:
Net loss	—			—		—		(175,512)		—		(175,512)		(7,535)		(183,047)
Foreign currency translation adjustments	—			—		(65,548)		—		—		(65,548)		(26,546)		(92,094)
Change in estimated fair value of hedging instruments, net of tax	—			—		(2,470)		—		—		(2,470)		—		(2,470)
Total comprehensive loss												(243,530)		(34,081)		(277,611)

Stock-based compensation expense	—			6,796		—		—		—		6,796		—		6,796
Issuance of shares under share award plans, net of shares withheld for employee taxes	1			(5,196)		—		—		—		(5,195)		—		(5,195)

Repurchases of common stock (Note 11)	—			—		—		—		(50,516)		(50,516)		—		(50,516)
Dividends (Note 4)	—			—		—		(78,471)		—		(78,471)		—		(78,471)
Distributions to noncontrolling interests, net	—			—		—		—		—		—		(2,483)		(2,483)
Balance, October 31, 2023	$	469		$	1,126,033	$	(78,376)	$	619,727	$	(1,034,822)	$	633,031	$	295,149	$	928,180

Balance, July 31, 2024	$	469		$	1,145,610	$	(67,288)	$	780,431	$	(1,135,685)	$	723,537	$	314,946	$	1,038,483
Comprehensive loss:
Net loss	—			—		—		(172,836)		—		(172,836)		(8,708)		(181,544)
Foreign currency translation adjustments	—			—		(2,393)		—		—		(2,393)		(1,461)		(3,854)
Change in estimated fair value of hedging instruments, net of tax	—			—		(1,755)		—		—		(1,755)		—		(1,755)
Total comprehensive loss												(176,984)		(10,169)		(187,153)
Stock-based compensation expense	—			6,691		—		—		—		6,691		—		6,691
Issuance of shares under share award plans, net of shares withheld for employee taxes	—			(5,783)		—		—		—		(5,783)		—		(5,783)
Repurchases of common stock (Note 11)	—			—		—		—		(20,217)		(20,217)		—		(20,217)
Dividends (Note 4)	—			—		—		(83,145)		—		(83,145)		—		(83,145)
Distributions to noncontrolling interests, net	—			—		—		—		—		—		(3,577)		(3,577)
Balance, October 31, 2024	$	469		$	1,146,518	$	(71,436)	$	524,450	$	(1,155,902)	$	444,099	$	301,200	$	745,299


	October 31, 2024
	Carrying Value		Estimated Fair Value
6.50% Notes	$	600,000	$	614,694
0.0% Convertible Notes	$	575,000	$	539,937
EPR Secured Notes	$	130,498	$	175,844
NRP Loan	$	36,375	$	29,970


	Maturity	October 31, 2024		July 31, 2024		October 31, 2023
Vail Holdings Credit Agreement term loan (a)	2029	$	947,461	$	959,766	$	1,000,000
Vail Holdings Credit Agreement revolver (a)	2029	—		—		—
6.50% Notes	2032	600,000		600,000		—
6.25% Notes	2025	—		—		600,000
0.0% Convertible Notes (b)	2026	575,000		575,000		575,000
Whistler Credit Agreement revolver (c)	2028	—		—		—
EPR Secured Notes (d)	2034-2036	114,162		114,162		114,162
NRP Loan	2036	36,155		37,088		37,269
Employee housing bonds	2027-2039	52,575		52,575		52,575
Canyons obligation	2063	370,573		369,143		364,825
Whistler Blackcomb employee housing leases	2042	27,577		27,887		27,984
Other	2024-2037	51,537		52,017		33,971
Total debt		2,775,040		2,787,638		2,805,786
Less: Unamortized premiums, discounts and debt issuance costs		8,040		8,888		4,090
Less: Current maturities (e)		57,045		57,153		69,659
Long-term debt, net		$	2,709,955	$	2,721,597	$	2,732,037


	Total
2025 (November 2024 through July 2025)	$	49,958
2026	632,303
2027	74,341
2028	55,916
2029	770,109
Thereafter	1,192,413
Total debt	$	2,775,040


	Acquisition Date Estimated Fair Value
Total cash consideration paid by Vail Resorts, Inc.	$	106,809
Estimated fair value of noncontrolling interests	14,084
Total estimated purchase consideration	$	120,893

Allocation of total estimated purchase consideration:
Current assets	$	21,207
Property, plant and equipment	114,232
Goodwill	2,796
Identifiable intangible assets and other assets	8,262

Liabilities	(25,604)
Net assets acquired	$	120,893


	Mountain		Lodging		Goodwill, net
Balance at July 31, 2024	$	1,632,969	$	45,006	$	1,677,975


Effects of changes in foreign currency exchange rates	(6,895)		—		(6,895)
Balance at October 31, 2024	$	1,626,074	$	45,006	$	1,671,080


	Estimated Fair Value Measurement as of October 31, 2024
Description	Total		Level 1		Level 2		Level 3
Assets:
Money Market	$	81,465	$	81,465	$	—	$	—
Commercial Paper	$	2,401	$	—	$	2,401	$	—
Certificates of Deposit	$	95,544	$	—	$	95,544	$	—

Liabilities:
Contingent Consideration	$	86,000	$	—	$	—	$	86,000

	Estimated Fair Value Measurement as of July 31, 2024
Description	Total		Level 1		Level 2		Level 3
Assets:
Money Market	$	896	$	896	$	—	$	—
Commercial Paper	$	2,401	$	—	$	2,401	$	—
Certificates of Deposit	$	101,989	$	—	$	101,989	$	—
Interest Rate Swaps	$	2,343	$	—	$	2,343	$	—
Liabilities:
Contingent Consideration	$	104,200	$	—	$	—	$	104,200

	Estimated Fair Value Measurement as of October 31, 2023
Description	Total		Level 1		Level 2		Level 3
Assets:
Money Market	$	101,903	$	101,903	$	—	$	—
Commercial Paper	$	2,401	$	—	$	2,401	$	—
Certificates of Deposit	$	138,614	$	—	$	138,614	$	—
Interest Rate Swaps	$	13,931	$	—	$	13,931	$	—
Liabilities:
Contingent Consideration	$	59,300	$	—	$	—	$	59,300


	Three Months Ended October 31,
	2024		2023
Mountain net revenue:
Lift	$	40,423	$	45,390
Ski School	6,839		7,178
Dining	20,628		18,077
Retail/Rental	29,526		33,474
Other	75,880		68,336
Total Mountain net revenue	$	173,296	$	172,455
Lodging net revenue:
Owned hotel rooms	$	28,075	$	25,177
Managed condominium rooms	11,705		12,003
Dining	19,952		18,083

Golf	7,550		6,376
Other	16,501		16,723
	83,783		78,362
Payroll cost reimbursements	3,133		3,459
Total Lodging net revenue	$	86,916	$	81,821
Total Resort net revenue	$	260,212	$	254,276
Total Real Estate net revenue	63		4,289
Total net revenue	$	260,275	$	258,565


	October 31, 2024		July 31, 2024		October 31, 2023
Land and land improvements	$	804,950	$	804,287	$	790,550
Buildings and building improvements	1,686,562		1,682,734		1,626,566
Machinery and equipment	1,995,020		1,984,549		1,781,980
Furniture and fixtures	320,123		316,510		302,646
Software	161,500		161,502		151,809
Vehicles	93,739		91,951		86,173
Construction in progress	178,417		116,872		185,229
Gross property, plant and equipment	5,240,311		5,158,405		4,924,953
Accumulated depreciation	(2,805,535)		(2,735,770)		(2,580,352)
Property, plant and equipment, net	$	2,434,776	$	2,422,635	$	2,344,601


	October 31, 2024		July 31, 2024		October 31, 2023
Trade payables	$	141,912	$	141,246	$	161,581
Deferred revenue	901,586		575,766		872,418
Accrued salaries, wages and deferred compensation	33,220		43,269		33,733
Accrued benefits	57,785		60,940		57,340
Deposits	43,401		44,500		42,880
Operating lease liabilities	34,529		32,611		38,332
Other liabilities	85,561		102,466		70,241
Total accounts payable and accrued liabilities	$	1,297,994	$	1,000,798	$	1,276,525


	Three Months Ended October 31,				Percentage Increase (Decrease)
	2024		2023
Mountain net revenue:
Lift	$	40,423	$	45,390	(10.9)	%
Ski school	6,839		7,178		(4.7)	%
Dining	20,628		18,077		14.1	%
Retail/rental	29,526		33,474		(11.8)	%
Other	75,880		68,336		11.0	%
Total Mountain net revenue	173,296		172,455		0.5	%
Mountain operating expense:
Labor and labor-related benefits	118,530		112,049		5.8	%
Retail cost of sales	15,031		17,821		(15.7)	%

General and administrative	92,568		93,168		(0.6)	%
Other	93,380		89,801		4.0	%
Total Mountain operating expense	319,509		312,839		2.1	%
Mountain equity investment income, net	2,151		859		150.4	%
Mountain Reported EBITDA	$	(144,062)	$	(139,525)	(3.3)	%

Total skier visits	548		658		(16.7)	%
ETP	$	73.76	$	68.98	6.9	%


Balance as of July 31, 2024 and 2023, respectively	$	104,200	$	73,300
Payments	(20,279)		(17,057)
Change in estimated fair value	2,079		3,057
Balance as of October 31, 2024 and 2023, respectively	$	86,000	$	59,300


	Three Months Ended October 31,						Increase (Decrease)
	2024			2023







Benefit from income taxes	$	58,249		$	65,160		(10.6)	%
Effective tax rate	24.3		%	26.3		%	(2.0) pts


	October 31,
	2024		2023
Long-term debt, net	$	2,709,955	$	2,732,037
Long-term debt due within one year	57,045		69,659
Total debt	2,767,000		2,801,696
Less: cash and cash equivalents	403,768		728,859
Net Debt	$	2,363,232	$	2,072,837


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
August 1, 2024 - August 31, 2024	—	$	—	—	1,730,320
September 1, 2024 - September 30, 2024	—	$	—	—	1,730,320
October 1, 2024 - October 31, 2024	114,800	$	174.21	114,800	1,615,520
Total	114,800	$	174.21	114,800	1,615,520


(1)			The share repurchase program is conducted under authorizations made from time to time by our Board of Directors. The Board of Directors initially authorized the repurchase of up to 3,000,000 Vail Shares (March 9, 2006), and later authorized additional repurchases of up to 3,000,000 Vail Shares (July 16, 2008), 1,500,000 Vail Shares (December 4, 2015), 2,500,000 Vail Shares (March 7, 2023), and 1,100,000 (September 25, 2024), for a total authorization to repurchase up to 11,100,000 Vail Shares. As of October 31, 2024, 1,615,520 Vail Shares remained available to repurchase under the existing repurchase authorization. Repurchases under these authorizations may be made from time to time at prevailing prices as permitted by applicable laws, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and subject to market conditions and other factors. These authorizations have no expiration date.


Exhibit Number			Description

31.1			Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2			Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32			Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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104			The cover page from this Quarterly Report on Form 10-Q, formatted in inline XBRL.


		Vail Resorts, Inc.

Date: December 9, 2024	By:	/s/ Angela A. Korch
		Angela A. Korch
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

Date: December 9, 2024	By:	/s/ Nathan Gronberg
		Nathan Gronberg
		Vice President, Controller and Chief Accounting Officer
		(Principal Accounting Officer)


1.	I have reviewed this quarterly report on Form 10-Q of Vail Resorts, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: December 9, 2024
			/s/ KIRSTEN A. LYNCH
			Kirsten A. Lynch
			Chief Executive Officer