Vail Resorts Inc 10-Q for FY2022 Q1

Vail Resorts Inc (MTN)

10-Q 2021-12-09 For: 2021-10-31

Added on April 09, 2026

About this 10-Q

Vail Resorts Inc filed this 10-Q on December 9, 2021, covering the quarter ended October 31, 2021 (FY2022 Q1).

Headline figures

Quarter ended October 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $175.58M; up 33.2% from $131.79M a year earlier
Net loss: $139.33M; compared with a net loss of $153.77M a year earlier
Diluted EPS: -$3.44; compared with -$3.82 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


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 31 , 2021, July 31, 202 1 and Oc tober 3 1 , 2020	2
	Consolidated Condensed Statements of Operations for the Three Months Ended October 3 1 , 2021 and 2020	3
	Consolidated Condensed Statements of Comprehensive L oss for the Three Months Ended October 3 1 , 2021 and 2020	4
	Consolidated Condensed Statements of Stockholders’ Equity for the Three Months Ended October 3 1 , 2021 and 2020	5
	Consolidated Condensed Statements of Cash Flows for the Three Months Ended October 3 1 , 2021 and 2020	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	34
Item 4.	Controls and Procedures	34

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	36


	October 31, 2021		July 31, 2021		October 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	1,468,380	$	1,243,962	$	462,212
Restricted cash	14,482		14,612		10,163
Trade receivables, net	108,988		345,408		208,540
Inventories, net	103,697		80,316		100,879
Other current assets	82,307		61,288		59,821
Total current assets	1,777,854		1,745,586		841,615
Property, plant and equipment, net (Note 6)	2,062,322		2,067,876		2,166,604
Real estate held for sale or investment	98,833		95,615		96,668
Goodwill, net (Note 6)	1,790,531		1,781,047		1,711,870
Intangible assets, net	319,250		319,110		313,445
Operating right-of-use assets	204,476		204,716		218,902
Other assets	37,285		37,106		41,420
Total assets	$	6,290,551	$	6,251,056	$	5,390,524
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 6)	$	1,109,652	$	815,472	$	846,614
Income taxes payable	43,377		48,812		39,909
Long-term debt due within one year (Note 5)	114,795		114,117		63,707
Total current liabilities	1,267,824		978,401		950,230
Long-term debt, net (Note 5)	2,704,583		2,736,175		2,387,861
Operating lease liabilities	192,328		190,561		213,073
Other long-term liabilities (Note 6)	243,307		264,034		253,108
Deferred income taxes, net	216,049		252,817		210,525
Total liabilities	4,624,091		4,421,988		4,014,797
Commitments and contingencies (Note 8)
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, 46,610, 46,552 and 46,412 shares issued, respectively	466		466		464
Exchangeable shares, $0.01 par value, 34, 34 and 35 shares issued and outstanding, respectively (Note 4)	—		—		—
Additional paid-in capital	1,192,901		1,196,993		1,130,318
Accumulated other comprehensive income (loss)	44,689		27,799		(52,387)
Retained earnings	598,826		773,752		492,136
Treasury stock, at cost, 6,161 shares (Note 10)	(404,411)		(404,411)		(404,411)
Total Vail Resorts, Inc. stockholders’ equity	1,432,471		1,594,599		1,166,120
Noncontrolling interests	233,989		234,469		209,607
Total stockholders’ equity	1,666,460		1,829,068		1,375,727
Total liabilities and stockholders’ equity	$	6,290,551	$	6,251,056	$	5,390,524


	Three Months Ended October 31,
	2021		2020
Net revenue:
Mountain and Lodging services and other	$	121,860	$	104,274
Mountain and Lodging retail and dining	53,401		27,258
Resort net revenue	175,261		131,532
Real Estate	315		254
Total net revenue	175,576		131,786
Operating expense (exclusive of depreciation and amortization shown separately below):
Mountain and Lodging operating expense	183,725		154,137
Mountain and Lodging retail and dining cost of products sold	24,229		17,132
General and administrative	77,234		59,029
Resort operating expense	285,188		230,298
Real Estate operating expense	1,470		1,450
Total segment operating expense	286,658		231,748
Other operating (expense) income:
Depreciation and amortization	(61,489)		(62,628)
Gain on sale of real property	31		—
Change in estimated fair value of contingent consideration (Note 7)	(2,000)		(802)
Gain (loss) on disposal of fixed assets and other, net	8,867		(569)
Loss from operations	(165,673)		(163,961)
Mountain equity investment income, net	1,514		3,986
Investment income and other, net	499		343
Foreign currency gain on intercompany loans (Note 5)	831		540
Interest expense, net	(39,545)		(35,407)
Loss before benefit from income taxes	(202,374)		(194,499)
Benefit from income taxes	59,853		37,478
Net loss	(142,521)		(157,021)
Net loss attributable to noncontrolling interests	3,189		3,255
Net loss attributable to Vail Resorts, Inc.	$	(139,332)	$	(153,766)
Per share amounts (Note 4):
Basic net loss per share attributable to Vail Resorts, Inc.	$	(3.44)	$	(3.82)
Diluted net loss per share attributable to Vail Resorts, Inc.	$	(3.44)	$	(3.82)
Cash dividends declared per share	$	0.88	$	—


☒			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) Income		Retained Earnings		Treasury Stock		Total Vail Resorts, Inc. Stockholders’ Equity		Noncontrolling Interests		Total Stockholders’ Equity
	Vail Resorts		Exchangeable
Balance, July 31, 2020	$	464	$	—	$	1,131,624	$	(56,837)	$	645,902	$	(404,411)	$	1,316,742	$	214,925	$	1,531,667
Comprehensive loss:
Net loss	—		—		—		—		(153,766)		—		(153,766)		(3,255)		(157,021)
Foreign currency translation adjustments	—		—		—		(205)		—		—		(205)		1,978		1,773
Change in estimated fair value of hedging instruments, net of tax	—		—		—		4,655		—		—		4,655		—		4,655
Total comprehensive loss													(149,316)		(1,277)		(150,593)
Stock-based compensation expense	—		—		5,754		—		—		—		5,754		—		5,754
Issuance of shares under share award plans, net of shares withheld for employee taxes	—		—		(7,060)		—		—		—		(7,060)		—		(7,060)


Distributions to noncontrolling interests, net	—		—		—		—		—		—		—		(4,041)		(4,041)
Balance, October 31, 2020	$	464	$	—	$	1,130,318	$	(52,387)	$	492,136	$	(404,411)	$	1,166,120	$	209,607	$	1,375,727

Balance, July 31, 2021	$	466	$	—	$	1,196,993	$	27,799	$	773,752	$	(404,411)	$	1,594,599	$	234,469	$	1,829,068
Comprehensive loss:
Net loss	—		—		—		—		(139,332)		—		(139,332)		(3,189)		(142,521)
Foreign currency translation adjustments	—		—		—		12,545		—		—		12,545		2,592		15,137
Change in estimated fair value of hedging instruments, net of tax	—		—		—		4,345		—		—		4,345		—		4,345
Total comprehensive loss													(122,442)		(597)		(123,039)

Stock-based compensation expense	—		—		6,425		—		—		—		6,425		—		6,425
Issuance of shares under share award plans, net of shares withheld for employee taxes	—		—		(10,517)		—		—		—		(10,517)		—		(10,517)

Dividends (Note 4)	—		—		—		—		(35,594)		—		(35,594)		—		(35,594)
Contributions from noncontrolling interests	—		—		—		—		—		—		—		117		117
Balance, October 31, 2021	$	466	$	—	$	1,192,901	$	44,689	$	598,826	$	(404,411)	$	1,432,471	$	233,989	$	1,666,460


	October 31, 2021
	Carrying Value		Estimated Fair Value
6.25% Notes	$	600,000	$	633,516
0.0% Convertible Notes	$	482,754	$	630,453
EPR Secured Notes	$	135,310	$	208,284


	Three Months Ended October 31,
	2021		2020 (1)
Mountain net revenue:
Lift (2)	$	14,329	$	33,091
Ski School	1,473		2,044
Dining	12,520		3,068
Retail/Rental	28,376		22,306
Other	52,602		38,970
Total Mountain net revenue	$	109,300	$	99,479
Lodging net revenue:
Owned hotel rooms	$	21,483	$	7,365
Managed condominium rooms	13,084		9,329
Dining	10,275		1,093

Golf	5,109		3,689
Other	14,269		9,374
	64,220		30,850
Payroll cost reimbursements	1,741		1,203
Total Lodging net revenue	$	65,961	$	32,053
Total Resort net revenue	$	175,261	$	131,532
Total Real Estate net revenue	315		254
Total net revenue	$	175,576	$	131,786


	Maturity	October 31, 2021		July 31, 2021		October 31, 2020
Vail Holdings Credit Agreement term loan (a)	2024	$	1,125,000	$	1,140,625	$	1,187,500
Vail Holdings Credit Agreement revolver (a)	2024	—		—		—
6.25% Notes	2025	600,000		600,000		600,000
0.0% Convertible Notes (b)	2026	575,000		575,000		—
Whistler Credit Agreement revolver (c)	2024	21,794		44,891		72,778

EPR Secured Notes (d)	2034-2036	114,162		114,162		114,162
EB-5 Development Notes	2021	51,500		51,500		51,500
Employee housing bonds	2027-2039	52,575		52,575		52,575
Canyons obligation	2063	353,266		351,820		347,481
Other	2021-2033	17,772		17,941		18,115
Total debt		2,911,069		2,948,514		2,444,111
Less: Unamortized premiums, discounts and debt issuance costs		91,691		98,222		(7,457)
Less: Current maturities (e)		114,795		114,117		63,707
Long-term debt, net		$	2,704,583	$	2,736,175	$	2,387,861


	Total
2022 (November 2021 through July 2022)	$	105,187
2023	63,740
2024	63,798
2025	1,575,677
2026	575,415
Thereafter	527,252
Total debt	$	2,911,069


	Mountain		Lodging		Goodwill, net
Balance at July 31, 2021	$	1,738,836	$	42,211	$	1,781,047


Effects of changes in foreign currency exchange rates	9,484		—		9,484
Balance at October 31, 2021	$	1,748,320	$	42,211	$	1,790,531


	Estimated Fair Value Measurement as of October 31, 2021
Description	Total		Level 1		Level 2		Level 3
Assets:
Money Market	$	504,064	$	504,064	$	—	$	—
Commercial Paper	$	2,401	$	—	$	2,401	$	—
Certificates of Deposit	$	9,984	$	—	$	9,984	$	—
Liabilities:
Interest Rate Swaps	$	5,348	$	—	$	5,348	$	—
Contingent Consideration	$	24,100	$	—	$	—	$	24,100

	Estimated Fair Value Measurement as of July 31, 2021
Description	Total		Level 1		Level 2		Level 3
Assets:
Money Market	$	253,782	$	253,782	$	—	$	—
Commercial Paper	$	2,401	$	—	$	2,401	$	—
Certificates of Deposit	$	259,945	$	—	$	259,945	$	—
Liabilities:
Interest Rate Swaps	$	12,942	$	—	$	12,942	$	—
Contingent Consideration	$	29,600	$	—	$	—	$	29,600

	Estimated Fair Value Measurement as of October 31, 2020
Description	Total		Level 1		Level 2		Level 3
Assets:
Money Market	$	204,036	$	204,036	$	—	$	—
Commercial Paper	$	2,401	$	—	$	2,401	$	—
Certificates of Deposit	$	8,076	$	—	$	8,076	$	—
Liabilities:
Interest Rate Swaps	$	17,855	$	—	$	17,855	$	—
Contingent Consideration	$	16,000	$	—	$	—	$	16,000


	October 31, 2021		July 31, 2021		October 31, 2020
Land and land improvements	$	757,625	$	756,517	$	752,259
Buildings and building improvements	1,492,863		1,496,402		1,475,857
Machinery and equipment	1,422,110		1,417,705		1,363,279
Furniture and fixtures	309,119		308,432		313,815
Software	123,228		122,778		99,077
Vehicles	80,921		80,328		80,552
Construction in progress	113,854		67,710		105,866
Gross property, plant and equipment	4,299,720		4,249,872		4,190,705
Accumulated depreciation	(2,237,398)		(2,181,996)		(2,024,101)
Property, plant and equipment, net	$	2,062,322	$	2,067,876	$	2,166,604


	October 31, 2021		July 31, 2021		October 31, 2020
Trade payables	$	116,501	$	98,261	$	74,609
Deferred revenue	743,809		456,457		559,323
Accrued salaries, wages and deferred compensation	43,773		54,286		33,131
Accrued benefits	45,439		47,368		39,625
Deposits	43,875		35,263		20,644
Operating lease liabilities	36,036		34,668		36,185
Other liabilities	80,219		89,169		83,097
Total accounts payable and accrued liabilities	$	1,109,652	$	815,472	$	846,614



	Three Months Ended October 31,				Percentage Increase (Decrease)
	2021		2020 (1)
Lodging net revenue:
Owned hotel rooms	$	21,483	$	7,365	191.7	%
Managed condominium rooms	13,084		9,329		40.3	%
Dining	10,275		1,093		840.1	%

Golf	5,109		3,689		38.5	%
Other	14,269		9,374		52.2	%
	64,220		30,850		108.2	%
Payroll cost reimbursements	1,741		1,203		44.7	%
Total Lodging net revenue	65,961		32,053		105.8	%
Lodging operating expense:
Labor and labor-related benefits	27,649		18,481		49.6	%
General and administrative	12,497		9,074		37.7	%
Other	21,523		12,915		66.7	%
	61,669		40,470		52.4	%
Reimbursed payroll costs	1,741		1,203		44.7	%
Total Lodging operating expense	63,410		41,673		52.2	%
Lodging Reported EBITDA	$	2,551	$	(9,620)	126.5	%

Owned hotel statistics (2):
ADR	$	274.51	$	204.44	34.3	%
RevPAR	$	168.84	$	57.33	194.5	%
Managed condominium statistics (2):
ADR	$	233.02	$	232.11	0.4	%
RevPAR	$	50.13	$	29.32	71.0	%
Owned hotel and managed condominium statistics (combined) (2):
ADR	$	252.62	$	224.59	12.5	%
RevPAR	$	78.43	$	35.00	124.1	%


	Three Months Ended October 31,
	2021		2020
Net cash provided by operating activities	$	349,021	$	111,993
Net cash used in investing activities	$	(39,857)	$	(29,274)
Net cash used in financing activities	$	(84,734)	$	(12,684)


Balance as of July 31, 2021 and 2020, respectively	$	29,600	$	17,800
Payments	(7,500)		(2,602)
Change in estimated fair value	2,000		802
Balance as of October 31, 2021 and 2020, respectively	$	24,100	$	16,000


	Three Months Ended October 31,						Increase (Decrease)
	2021			2020



Gain (loss) on disposal of fixed assets and other, net	$	8,867		$	(569)		1,658.3	%
Interest expense, net	$	(39,545)		$	(35,407)		11.7	%
Benefit from income taxes	$	59,853		$	37,478		59.7	%
Effective tax rate	29.6		%	19.3		%	10.3 pts


	October 31
	2021		2020
Long-term debt, net	$	2,704,583	$	2,387,861
Long-term debt due within one year	114,795		63,707
Total debt	2,819,378		2,451,568
Less: cash and cash equivalents	1,468,380		462,212
Net Debt	$	1,350,998	$	1,989,356


Exhibit Number			Description

10.1*			Vail Resorts, Inc. Management Incentive Plan.

10.2*			Executive Employment Agreement, between V ail Resorts, Inc. and Kirsten A. Lynch effective November 1, 2021. (Incorporated by reference to Exhibit 10.1 on Form 8-K of Vail Resorts, Inc. filed on November 1, 2021) (File Number 001-09614).

10.3			Form of Indemnification Agreement. (Incorporated by reference to Exhibit 10.1 on Form 8-K of Vail Resorts, Inc. filed on October 13, 2021) (File Number 001-09614)

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.

101.INS			XBRL Instance Document - the instance document does not appear in the interactive data file as its XBRL tags are embedded within the inline XBRL document.

101.SCH			XBRL Schema Document.

101.CAL			XBRL Calculation Linkbase Document.

101.DEF			XBRL Definition Linkbase Document.

101.LAB			XBRL Label Linkbase Document.

101.PRE			XBRL Taxonomy Extension Presentation Linkbase Document.

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

*Management contracts and compensatory plans and arrangements.


		Vail Resorts, Inc.

Date: December 9, 2021	By:	/s/ Michael Z. Barkin
		Michael Z. Barkin
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

Date: December 9, 2021	By:	/s/ Nathan Gronberg
		Nathan Gronberg
		Vice President, Controller and Chief Accounting Officer
		(Principal Accounting Officer)


Month of Hire			Prorate %
August, September, October			100%
November, December, January			67%
February, March, April			33%
May, June, July			0%


Grade	Base Salary	Target %	Target $	Funding %	Performance Variable	# of Rounded Months	Prorated Payout
33 SVP	$250,000	42.5%	$106,250	100%	100%	92	$26,781
32 VP	$225,000	35.0%	$78,750	100%	100%	273	$58,901
Final Amount							$85,682


Percent of the EBITDA Target Obtained for the Division			Percent of Incentive Target Funded Grade 33+
<80%			0.0%
80%			15.00%
81%			16.00%
82%			17.00%
83%			18.00%
84%			19.00%
85%			20.00%
86%			21.00%
87%			22.00%
88%			23.00%
89%			24.00%
90%			25.00%
91%			30.00%
92%			35.00%
93%			40.00%
94%			45.00%
95%			50.00%
96%			60.00%
97%			70.00%
98%			80.00%
99%			90.00%
100%			100.00%
101%			107.50%
102%			115.00%
103%			122.50%
104%			130.00%
105%			137.50%
106%			145.00%
107%			152.50%
108%			160.00%
109%			167.50%
110%			175.00%
111%			177.50%


Percent of the EBITDA Target Obtained for the Division			Percent of Incentive Target Funded Grade 33+
112%			180.00%
113%			182.50%
114%			185.00%
115%			187.50%
116%			190.00%
117%			192.50%
118%			195.00%
119%			197.50%
>=120%			200.00%


Performance Rating Chart
Performance Rating			% Incentive Influenced
Greatly Exceeds Expectations			130%
Exceeds Expectations			120%
Achieves Expectations			100%
Meets Most Expectations			50%
Meets Some Expectations			0%


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, 2021
			/s/ KIRSTEN A. LYNCH
			Kirsten A. Lynch
			Chief Executive Officer