Vail Resorts(US:MTN)2022-12-07 16:00Financial Performance - For the three months ended October 31, 2022, the net loss attributable to Vail Resorts, Inc. was $136.971 million, a slight improvement from a net loss of $139.332 million in the same period of 2021[89]. - The Lodging segment reported a loss of $(4.357) million, a decline from a profit of $2.551 million in the same quarter of the previous year[89]. - The Real Estate segment reported an EBITDA loss of $(1.269) million, slightly worse than the $(1.124) million loss in the same quarter of 2021[89]. - Net loss attributable to Vail Resorts, Inc. was $136.971 million, compared to a loss of $139.332 million in the prior year[113]. - Net Debt increased to $1.656 billion from $1.351 billion year-over-year[113]. - Net cash provided by operating activities for the three months ended October 31, 2022, was $333.0 million, a decrease of $16.0 million compared to $349.0 million in the same period of 2021[116]. Revenue and Growth - Mountain segment revenue increased significantly to $201.717 million, up 84.6% from $109.300 million in the prior year, driven by a 355.5% increase in total skier visits to 993,000[92]. - Pass product sales for the 2022/2023 North American ski season increased approximately 6% in units and sales dollars compared to the previous year[88]. - Total Lodging net revenue increased by $11.7 million, or 17.7%, driven by owned hotel rooms and dining revenue growth[103]. - Lift revenue surged by $45.2 million, or 315.5%, due to increased visitation at Australian ski areas[95]. - Ski school revenue rose by $7.5 million, or 506.0%, and dining revenue increased by $6.9 million, or 55.3%, both primarily driven by Australian ski areas[96]. Operating Expenses - Mountain operating expenses rose to $294.196 million, an increase of 32.7% from $221.778 million in the prior year, primarily due to higher labor costs[92]. - Operating expenses increased by $72.4 million, or 32.7%, mainly due to higher labor expenses and post-acquisition costs from Seven Springs Resorts and Andermatt-Sedrun[99]. - Labor and labor-related benefits increased by 34.3%, reflecting wage investments and increased headcount to support normalized operations[100]. - Lodging Reported EBITDA decreased by $6.9 million, or 270.8%, primarily due to increased labor and related benefits[104]. Cash and Investments - As of October 31, 2022, Vail Resorts had $1.2 billion in cash and cash equivalents, along with $416.5 million available under its credit agreement, ensuring sufficient liquidity for operations[90]. - Cash used in investing activities increased by $94.7 million to $134.5 million, primarily due to $86.8 million in short-term investments and a $38.6 million cash payment for the acquisition of Andermatt-Sedrun[118]. - Cash used in financing activities rose by $19.9 million to $104.6 million, mainly due to an increase in dividends paid of $41.4 million[119]. - The company plans to spend approximately $323 million to $333 million on capital expenditures in 2022, including $105 million to $115 million for maintenance[123]. - The company expects its capital plan for 2023 to be around $204 million to $209 million, including $13 million for growth capital investments at Andermatt-Sedrun[125]. Debt and Dividends - Total long-term debt remained at $2.8 billion as of October 31, 2022, with net debt increasing from $1.4 billion to $1.7 billion year-over-year[127]. - The company paid cash dividends of $1.91 per share, totaling $77.0 million for the three months ended October 31, 2022[130]. - The company has not repurchased any shares during the three months ended October 31, 2022, with 1,034,292 shares remaining available for repurchase[132]. Foreign Currency and Risks - Foreign currency translation adjustments for the three months ended October 31, 2022, resulted in a loss of $117.8 million compared to a gain of $15.1 million in the same period in 2021[145]. - The foreign currency loss on intercompany loans for the three months ended October 31, 2022, was $6.1 million, compared to a gain of $0.8 million in the same period in 2021[145]. - The company does not currently enter into hedging arrangements to minimize the impact of foreign currency fluctuations on operations[143]. - The ongoing COVID-19 pandemic continues to impact the travel and leisure industry, affecting the company's financial condition and operations[141]. - The company faces risks related to competition in the mountain and lodging businesses, as well as other recreational and leisure activities[141]. - The company is exposed to risks associated with international operations and fluctuations in foreign currency exchange rates, particularly with the Canadian dollar, Australian dollar, and Swiss franc[143]. - The company has a high fixed cost structure, which poses risks to its financial performance[141]. - The company is reliant on government permits or approvals for operational and capital improvements, which could impact its business[141].