Vail Resorts Reports Mixed Results Amid Challenging Year

Vail Resorts, Inc. (NYSE: NYSE:) encountered a tough fiscal year in 2024, experiencing a decline in skier visitation while managing to keep its Resort Reported EBITDA stable. CEO Kirsten Lynch and CFO Angela Korch discussed the company’s performance and future strategies during the Fiscal 2024 Year-End Earnings Conference Call on September 26, 2024.

The company announced a net income of $230.4 million, down from $268.1 million the previous year, along with a declared quarterly dividend of $2.22 per share. Vail Resorts also disclosed plans for significant capital expenditures, including launching My Epic Gear, a new gear rental service, and the installation of new lifts at selected resorts.

### Key Takeaways
– Skier visitation dropped by 9.5% year-over-year due to unfavorable weather conditions, with North American visits decreasing by 8% and Australian visits down by 18%.
– The net income for fiscal 2024 was reported at $230.4 million, a decline from $268.1 million the year prior.
– The company aims to achieve $100 million in annualized cost efficiencies by the end of fiscal 2026 through a Resource Efficiency Transformation Plan.
– A quarterly dividend of $2.22 per share is scheduled for payment on October 24, 2024.
– In fiscal 2024, the company repurchased 0.7 million shares and has authorized an additional buyback of 1.1 million shares.
– Vail Resorts plans to invest between $216 million and $221 million in capital expenditures for calendar year 2024, focusing on enhancing guest experiences.

### Company Outlook
– For fiscal 2025, net income is projected to range from $224 million to $300 million, with Resort Reported EBITDA expected between $838 million and $894 million.
– The My Epic Gear service is anticipated to enroll between 60,000 to 80,000 members initially, offering both seasonal and daily gear rentals.
– Significant investments for 2025 include a new gondola at Park City and a high-speed lift at Perisher.

### Challenges and Strengths
– The company acknowledged the difficulties of the past year, including adverse weather and the normalization of demand impacting visitation rates and revenue estimates.
– There has been a noted decline in new customer registrations, limiting the overall audience for lift tickets.
– On a positive note, despite decreased skier visitation, Resort Reported EBITDA remained stable due to increased spending on ancillary services and effective cost management.
– Vail Resorts continues to pursue its M&A strategy, focusing on geographical diversification and high-return capital projects.

### Q&A Highlights
– Management expressed optimism regarding a potential rebound in visitation in FY’25, attributing this to expected improvements in weather conditions and demand normalization.
– The company’s pricing strategy will remain focused on encouraging advanced commitment through season passes.
– Customer acquisition strategies are in place to engage new pass holders from competing resorts and to reconnect with past guests.

Vail Resorts’ management provided a detailed outlook on the company’s performance and strategic plans, recognizing recent challenges while also identifying opportunities for growth and efficiency. By maintaining a diversified pricing strategy and enhancing guest experiences, the company aims to navigate the impacts of climate change and industry normalization, positioning itself for sustainable growth in future fiscal years.

Overall, Vail Resorts is dedicated to optimizing its operations while fostering the guest experience, signaling a commitment to long-term shareholder value creation.