Q4 2021 Vail Resorts Inc Earnings Call

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You're holding it for the Vail resorts at this time you are waiting additional participants in the conference should begin shortly we do thank you for your participation and please continue to standby.

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Good day.

And welcome to the Vail resorts fiscal year end 2021 earnings call.

Today's conference is being recorded at this time I would like to turn the conference over to Rob Katz. Please go ahead Sir.

Thank you operator, good afternoon, everyone welcome to our fiscal 2021 year end earnings.

<unk> conference call I'm excited to have Houston Lynch, our current Chief marketing officer, and incoming Chief Executive Officer joined Michael Barkin, Our Chief Financial Officer, and me on the call today.

Before we begin let me remind you that some information provided during this call may include forward looking statements that are based on circumstances that are subject to a number of risks and uncertainties.

Teeth as described in our SEC filings and actual future results may vary materially forward looking statements in our press release issued this afternoon, along with our remarks on this call I made as of today September 23, 2021, we undertake no duty to update them as actual events unfold.

<unk> also includes certain non-GAAP financial measures reconciliations of these measures.

Others are provided in the tables included with our press release and along with our annual report on Form 10-K were filed this afternoon with the SEC and are also available on the Investor Relations section of our website at Www Dot Vail resorts Dot com.

So with that said, let's turn to our fiscal 2021 and fourth quarter result, given the continued challenges.

Associated with COVID-19, we are pleased with our operating results for the year. Our results highlighted our data driven marketing capability the value of our past products. The resiliency of demand for the experiences we offer throughout our network of World class resorts and our disciplined cost control.

Results continue to improve as the 2000.

As in 2021, North American ski season progressed, primarily as a result of stronger destination visitation at our Colorado and Utah resort.

Excluding peak resorts total skier visitation at our U S destination Mountain resort and regional ski areas for fiscal 2020, one was down only 6% compared to fiscal 'twenty.

2018.

Westwood Black home's performance with disproportionately impacted doing that due to the closure of the Canadian border to international GAAP, including gas from the U S and the resort closing earlier than expected on March 32021, following a provincial health order issued by the government of British Columbia.

99 block homes total skier visitation for fiscal 2021 declined 51% complete compared to fiscal 2019.

Our ancillary lines of business were more significantly and negatively impacted by COVID-19 related capacity constraints and limitations throughout the 2000.22021, North American ski season, we.

We're sorted our resort reported EBITDA margin of 28, 5% driven by our disciplined cost control as well as a higher proportion of lift revenue relative to ancillary lines of business compared to prior periods.

For the fourth quarter, we are pleased with the strong demand across our north American summer operations, which exceeded our expectations.

Generally we believe highlights our guests continue to affinity for outdoor experiences in Australia, we experienced strong demand trends at the beginning of the 2021 Australian ski season.

Subsequent COVID-19 related stay at home orders and temporary resort closures negatively impacted financial results for the fourth quarter.

And by approximately $8 million relative to our guidance expectations issued on June seven 2021.

Fourth quarter results were also negatively impacted relative to our June seven 2021 guidance by a onetime $15.0 million charge for contingent obligation with respect to certain litigation matters.

Now I will turn the call over to <unk> to provide an update on our season pass sales.

Thank you, Rob and good afternoon, everyone I am pleased to be joining our earnings call today and look forward to speaking more regularly with our investors and analysts as we move towards the CEO transition and November 1st.

We.

We are pleased with the results of our season pass sales to date, which continued to demonstrate the strength of our data driven marketing initiatives and the compelling value proposition of our past products driven in part by the 20% reduction in all past prices for the upcoming season.

<unk> product sales through September 17th 2000.

<unk> one <unk> for the upcoming 2021.2022, North American ski season increased approximately 42% and unit.

Approximately 17% in sales dollars as compared to the period in the prior year through September 18th 2020 without deducting for the value.

20 of any redeemed credits provided to certain north American passengers and the prior period.

To provide a comparison to the season pass results released in June.

<unk> product sales through September 17, 2021 for the upcoming North American ski season increased approximately 67% in units.

<unk> and approximately 45% in sales dollars as compared to sales for the 2019 2020, North American ski season through September 20th 2019 with past product sales adjusted to include peak resort pass sales in both periods.

<unk> product sales.

Our adjusted to eliminate the impact of foreign currency by applying an exchange rate of <unk> 79 between the Canadian dollar and U S dollar and all periods for Whistler Blackcomb pass sales.

We saw strong unit growth from renewing pass holders and significantly stronger unit growth from new pass holders.

<unk>, which include GAAP in our database, who previously purchased lift tickets our passes but did not buy a pass or a lift ticket and the previous season as well as guests who are completely new to our database.

Our strongest unit growth was from our destination markets, including the northeast.

And we also.

Very strong growth across our local markets.

The majority of our absolute unit growth came from our core epic pass and epic local pass products.

And we also saw even higher percentage growth from our epic day pass products.

Compared to the period ending September.

Also how 18th 2020 effective paths price decreased 17% despite the 20%.

Price reduction we implemented this year and the significant growth of our lower priced epic day pass products, which continued to represent an increasing portion of our total advances.

September amendment product sales.

We are very pleased with the performance of our past product sales efforts to date, which exceeded our original expectations for the impact of the 20% price reduction, particularly in the growth of new pass holders and in trade up as we are seeing from household.

Vance curse into higher priced products.

As we enter the final period for past product sales, we feel good about the current trends. We are seeing however, it is important to point out that we know a portion of the growth. We have seen to date represents certain pass holders purchasing their past earlier in the selling season and then.

So the prior year period, and we saw strong growth in the late fall and the prior year period due to concerns about COVID-19, including questions about our resort access as a result of our reservation system.

Given these factors and the other changing economic and Covid related dynamics it is difficult.

Then in the bi specific guidance on our final growth rates, which may decline from the rates we reported today.

Now I would like to turn the call over to Michael to further discuss our financial results and fiscal 2022 outlook.

Thanks, Kirsten and good afternoon, everyone.

As Rob mentioned.

We're pleased with our results for fiscal year 2021, as a reminder, in the prior year, we announced the early closure of the 2019 2020, North American ski season for our ski areas lodging properties and retail and rental stores as a result of the COVID-19 pandemic beginning on March 15.2020.

These actions had a significant adverse impact on our results of operations for fiscal year 2020.

Additionally, the ongoing COVID-19, pandemic and the resulting limitations and restrictions on their operations continued to have an adverse impact on our results for fiscal year 2021, including the early closure of Whistler.

<unk> lack home on March 32021, and stay at home orders and periodic resort closures impacting our ski areas in Australia.

Net income attributable to Vail resorts was $136.0 million or $16.0 per diluted share for fiscal year 2021, compared to net income of 90.

$8 million or $44.0 per diluted share in the prior fiscal year.

Resort reported EBITDA was $551.0 million for fiscal year 2021, an increase of $44.0 million compared to fiscal year 2020.

Fiscal 2021 includes the impact from the deferral.

Eight $118 million of past product revenue and related deferred costs from fiscal 2022 fiscal 2021 as a result of the credits offered to 2000.22021, North American pass product holders.

One a onetime $15.0 million charge for a contingent obligation with respect.

For all of our litigation matters and approximately $2 million.

Favorability from currency translation from Whistler, Blackcomb, which the company calculated on a constant currency basis by applying current period foreign exchange rates to prior period results.

Moving now to our fiscal 'twenty, two 2022 outlook.

Back to so we're encouraged by the robust demand from our guests the strength of our advanced commitment products sales and our continued focus on enhancing the guest experience, while maintaining our cost discipline.

Our guidance for net income attributable to Vail resorts is estimated to be between $278 million and $349 million.

Look for fiscal 2022, and we estimate resort reported EBITDA for fiscal 2022 will be between $785 million and $835 million.

Using the midpoint of the guidance range, we estimate resort EBITDA margin for fiscal 2022 to be approximately 32, 1%.

Which has negatively impacted as a result of COVID-19 impacts.

Associated with Australia in the first quarter of fiscal 2022, and the anticipated slower recovery in international Visitation and group and conference business.

The guidance assumes normal weather conditions, a continuation of the current economic <unk>.

<unk> and no material impacts associated with COVID-19 for the <unk> 2021 2022, North American ski season or the 2022.

Australian ski season, other than an expected slower recovery for international visitation, which is expected to have a disproportionate impact at Whistler blackcomb.

<unk> and group and conference business, which is expected to have a disproportionate impact in our lodging segment.

At Whistler Blackcomb, we estimate the upcoming winter season will generate approximately $27 million.

Lower resort reported EBITDA relative to the comparable period in fiscal 2019.

<unk>, primarily driven by the anticipated reduction in international visitation.

2022 guidance includes an expectation that the first quarter of fiscal 2022 will generate a net loss attributable to vail resorts between $156 million and $136 million.

And resort reported EBITDA between negative $118 million and negative $106 million, we estimate the negative impacts of COVID-19 in Australia, and the associated limitations and restrictions, including the current Lockdowns will have a negative resort reported EBITDA impact of approximately 40.

$1 million in the first quarter of fiscal 2022 as compared to the first quarter of fiscal 2020.

We are providing guidance for the first quarter of fiscal 2022 as a result of these negative impacts of COVID-19 in Australia, and we do not intend to provide quarterly guidance on a go forward basis.

Despite the significant investment we made by increasing our minimum and entry wages. This year and the headwinds that we expect to face from Australia, Whistler, Blackcomb and our group and conference business. We are expecting to drive margin expansion in fiscal 2022 through continued cost discipline, including significant cost savings.

That are a continuation of our focus on operating as efficiently as possible coming out of COVID-19.

Our liquidity position remains strong and we are confident in the free cash flow generation and stability of our business model.

Our total cash and revolver availability as of July 31, 2021 was approximate.

Approximately $10.0 billion with.

With $3.0 billion of cash on hand, $418 million of revolver availability under the veil holdings credit agreement and $195 million of revolver availability under the Whistler Blackcomb credit agreement.

As of July 31, 2021, our net debt was three.

Times trailing 12 months total reported EBITDA.

Given our strong balance sheet and outlook. We are pleased to announce that the company plans to exit the temporary waiver period under the Veil Holdings credit agreement effective October 31, 2021, and declared a cash dividend of 88 per share payable on October.

2021 the.

The dividend payment equates to 50% of pre pandemic levels and reflects our continued confidence in the strong free cash flow generation and stability of our business model. Despite the ongoing risks associated with COVID-19.

Our board of directors will continue to closely monitor the.

Amit and public health outlook on a quarterly basis to assess the level of our quarterly dividend going forward.

I'll now turn the call back over to Rob.

Thanks, Michael as previously announced we are on track to complete several signature investments in advance of the 2021.2022, North American ski season.

In Colorado, we are completing a 250 acre lift served terrain expansion in the signature Mccoy Park area of Beaver Creek further differentiating the resort's high end family focused experience. We're also adding a new four person high speed lift at Breckenridge to serve the popular peak seven replacing the Peru, if the Keystone.

With a six person high speed chairlift, replacing the Peachtree left at crested Butte with a new 3% fixed script west.

At Okemo, we are completing a transformational investment, including upgrading the quantum lift to replace the Green Ridge three person fixed grip chairlift. In addition to these investments that will greatly improve upheld capacity.

We are continuing to invest in companywide technological and Mac enhancements, including investing in a number of upgrades to bring our best in class approach to how we service our guests through these channels.

We are encouraged by the outlook for our long term growth in the financial stability. We have created the success of our advanced commitment strategy the expansion.

<unk> network and our focus on creating an outstanding guest experience remain at the forefront of our efforts.

Toward that end, we are launching an ambitious capital investment plan for calendar year 2022 across our resorts to significantly increase lift capacity and enhance the guest experience as we drive increased loyalty from our GAAP.

<unk> of our and continuously improve the value proposition for our advanced commitment products.

These investments are also expected to drive strong financial returns for our shareholders.

Plan includes the installation of 19, new or replacement lift across 14 of our resorts and a transformational expansion at Keystone as well as an.

Additionally, as well as additional product projects that will be announced in December 2021, and March 2022.

All of the projects in the plan are subject to regulatory approvals.

At Keystone, we are planning a significant terrain expansion into Bergman Bowl, which will create an incremental 555 acres of lift served terrain.

And provide a significant capacity increase to the resort with a new six person high speed lift. We are also planning to renovation and expansion of the outpost restaurant with an incremental 300 indoor seats and 75 outdoor seats.

At Vail, we plan to significantly upgrade the capacity and experience for guests and the legendary backbones.

We plan to replace the existing four person high speed gain crispo lift with a new six person high speed lift and we also plan to install a new four person high speed Sundown Express left these investments will provide guests with better circulation and an additional lift to move between the backbone and the front side of the mountain.

With better access the lion's head base area at Whistler.

Black Hawk, and we plan to meaningfully increase capacity in circulation from the Creek side base area by replacing the six person Creekside gondola with a new eight person envelope and replacing the existing four person high speed read left with a new six person high speed lift at.

At Park.

We plan to significantly enhance capacity at the park City base area and improved mid mountain capacity in circulation, we plan to install our first eight person high speed lift, replacing the current six person Silverleib left we also plan to install a new six person high speed Eagle left replacing two existing west to significantly improve.

Sitting with experience from the Park city based area for beginners and for our ski school guests.

At Breckenridge, we plan to replace the existing 3% fixed grip rips rod lift with a new four person high speed lift this.

This upgrade will improve the beginner and ski school experience at peak eight with increased out of circulation capacity along with easier.

<unk> loading and unloading.

We expect our capital plan for calendar year, 2022 will be approximately $315 million to $325 million exclude.

Excluding any real estate related capital or Reimbursable investments.

This is approximately $150 million above our typical annual capital.

The GAAP based on inflation in previous editions for acquisition and includes approximately $20 million of incremental spending to complete the onetime capital plan associated with the peak resorts and Triple peaks acquisition.

Given our recent financings and strong liquidity the outlook for our business driven by the growth of our advanced commitment strategies and.

<unk> benefit in 2022 from additional accelerated depreciation on U S investment. We believe this is the right time for our company to make a significant investment in the guest experience at our resorts and expect this onetime increase in discretionary investments will drive an attractive return for our shareholders additional details associated.

The tag our calendar year 2022 capital plan can be found in our capital press release that was issued today.

We also intend to return our capital spending to our typical long term plan in our calendar year 2023 capital plan with the potential for reduced spending given the number of projects, we would complete in calendar year 2022.

David will be providing further detail on our capital plan in December 2021 as.

As we prepare for the upcoming North American ski season, we want to acknowledge our teams and communities that have been affected by the caldor fires around Lake Tahoe and express our deepest appreciation for all of the hard work completed by our team and all of our partners.

Ground, we are incredibly grateful for the collective efforts of the firefighters and first responders community members and our employees, who work tirelessly to protect our tahoe resorts and surrounding communities.

We remain focused on the safety and wellbeing of our employees as we support the recovery effort of the greater Lake Tahoe area.

This will be my 63rd and final earnings call and I could not be prouder about where the company stands today and how it's positioned for the future.

Throughout my time as CEO, one of my top priorities has been to identify and prepare a CEO for the next chapter in the company's growth and success and I am fully confident.

Houston is that person.

Keith marketing officer for more than 10 years <unk> has been responsible for the transformation and success of Vail resorts data driven marketing efforts and as a primary driver of the company's growth stability and value creation.

<unk> is also an incredibly skillful leader and developer of talent.

And it's had an amazing track record of building very strong teams.

With our company just having navigated the most challenging period in its history and coming out stronger than went up again. This is the right time for me to take a step back and play a different role at Vail resorts and the right time for <unk> to step into the CEO role to continue driving the strategy.

That growth of the company.

I'm very excited to remain fully active and engaged in Vail resorts key strategic decisions and activities as executive chair person and I'm very proud that we are continuing to focus on our strategy of internal leadership development across all levels of the organization.

Fully confident in the.

And growth of our entire management team.

Very excited for this next chapter in the company's success story I do.

You want to take a moment to thank all of our employees GAAP and our broader community for your partnership and support throughout my more than 15 years as CEO.

Been an honor to be a part of an incredible group of leaders across all.

Depth and locations of our company when I look across the company and see how much has changed and how much we have accomplished it reminds me what an incredible journey. It has been a true experience of a lifetime.

At this time <unk>, Michael and I would be happy to answer your questions. Operator, we are now ready for questions.

All level. Thank you if you would like to ask a question. Please press star.

One on your Touchtone telephone.

If you are joining us today use a speaker phone. Please make sure. Your mute function is turned off to why your signal to reach our equipment.

So please limit yourself to one question and one follow.

Question at a time.

Again that is star one if you would like to signal star one.

Our first question will come from Shaun Kelley with Bank of America.

Hi, good afternoon, everyone.

Welcome to Kirsten.

Rob Congratulations thanks for everything you've done here, it's been a pretty amazing Ron across 63 quarters. So congrats on everything.

Thanks.

Maybe if we can just.

Maybe if we could just lead off a little bit.

I would love to hit on.

Obviously, you gave a ton of color on the Pasha.

Ed.

Love to hear your thoughts on just given all of the movement the pull forward.

Else that just kind of going on here I think you've given us your broad take on on where transit today, but.

Help us think about maybe the pros and cons of where kind of what.

Sure.

Thanks to either accelerate or decelerate for the kind of the remainder of the season.

And then if you could also just talk a little bit about.

On the ancillary spending side, what are sort of your expectations heading into the season as you think about the full year outlook you gave on the.

The guidance.

What <unk> you want to take the question on profit.

Sure Hi, Sean Thank you.

We're really encouraged by the trends that we're seeing Sean I think very positive in terms of renewals, particularly strong on new which would certainly indicate that we're.

Oh, new people into our pass program and new people to Vail resorts and to be a part of our network.

What are the other trends, we're seeing destiny, while we were up very strong across all of our local markets destination very strong and then the other dynamic is.

We're bringing trade up which is very strong.

It is really hard with the dynamics that are coming for the rest of the season to know exactly how this is going to turn out but I'd say the fundamentals are very encouraging.

Key dynamics.

That impacts the rest of the selling cycle our pulse.

As I mentioned, we do know that a portion of our sales to date are people who pulled forward into this earlier time period.

Im also very strong sales as you know last year in this remaining time period.

That we will be lapping and then.

Alright, and dynamics and economic dynamics that could impact what the trends look like for the rest of the year, but the core fundamentals of our strategy and the behaviors that we're seeing from our gas associated with that strategy.

Very encouraging.

Great. Thanks, Chris.

How big do you want to take the ancillary question.

Sure. Thanks, John.

Yes, I think you know built into our guidance is yes.

Yes. It is after two pretty challenging years on the ancillary Brian given the constraints that we've had relative to Covid are returned to a more normal state of it.

For the ancillary business. So I think I think that's really underlying our overall guidance assumptions and that definitely includes what we're assuming across our ancillary businesses and ski school food and beverage and retail rental.

Thanks to the positive for us certainly.

<unk>.

Affairs rewards program in place, which.

No we haven't really had a full year yet of the benefit of that and certainly with the strong pass sales anticipate that being a benefit to us on the ancillary side I would I would just note that as we as we talked about in terms of the international.

I think Matt headwind and that return is slower as you know international tend to be high spending guests and so, particularly at Whistler Blackcomb and the guidance that we provided.

Around some of the challenges we expect there that will come through in the ancillary business as well, which is included in those numbers.

Great.

Hello, everyone. So I will yield the floor I appreciate it everyone.

Thanks, Sean.

And our next question will come from Ben Chaiken with.

With credit Suisse.

Hey, How's it going.

Lee.

<unk> one of the investments we're tracking in ROI is tricky at least.

That was my interpretation over the years, what did you see in the business or what was your thought process to ramp this up because it sounds like the majority of the spend is going to get a lift side.

Is there a competitive angle is it maybe growth in volume from skier visitation perspective, just any color any incremental color would be super helpful and Rob Congrats and garrison.

<unk> been.

So I don't know welcome as appropriate, but we're all excited so thanks.

Sure I'll take that one I think.

Our view is that certainly lift or one of the signature components of the experience at any of our resorts.

We've always tried to be at the forefront.

And around for ensuring that we're reducing wait times and reducing the lyft ride time.

And we do feel like we are positioned for continued future growth.

In the right way to support that over the long term.

Is to make sure that we're continuing to invest.

In our guest experience and so that's.

And I think the core philosophy of our company is that we're looking to get advanced commitment, but we're also looking to take the growth that we get in that program and obviously put it back into our resorts and we think lifts are really at the at the.

Critical pinch point of that.

In terms of really unlocking a much better guest experience as we look to the future.

And I would say, yes. It is of course, it's hard to track ROI on a specific left but we understand that that help support the value proposition that we're providing people that obviously can support future price growth in our products, including our passes that can also support future growth in visits.

Again, we feel like there's this unique moment coming out of <unk>.

Covid with the company in such a strong relative position that has some opportunity for us to make a statement to our guests network wide right. So obviously that this announcement today is about investing in the <unk>.

Total network that we're offering in the past network that we're offering to.

And again and we feel like we've reached a point, where we can start to do this and move the needle both on guest experience and on our business.

Got it that makes sense I appreciate it thank you.

Sure. Thank you.

And our next question comes from Lauren Smith.

<unk> with Exane BNP.

Good afternoon. Thank you very much Rob first and Michael for taking my questions I wanted to take a.

Longer term question here, but.

With a 20% cut this year, which drove obviously pass sales up significantly year over year on a two year stack, how do we think about pricing going forward for the out years could we envision further price.

<unk>.

Increased subscription model or are you happy with where your Tam is your total addressable market and do you foresee that pricing could actually kind of tick up from here.

Chris do you want to pick up.

Yeah. Thanks for the question as you know we have a long history.

Cuts taken consistent price increases on our Paas business.

The decision that we made this past year was really a discreet opportunity to do a reset to drive long term gas lifetime value and bring more.

Guests into the program as we were.

Our vision to achieving 75% or more percent of our revenue and an advanced commitment.

The the lever of taking price increases is certainly a lever that is absolutely still available for us going forward.

Work toward this new baseline that we've created from this reset.

Very helpful. Thank you very much.

And then a question for Mike Sorry did I cut you guys off.

Maybe Michael if I have a question here on G&A, I think you've talked about cost saving initiatives.

From you can you flush that out a little bit more in just on the G&A for <unk> was up $20 million.

34% onto your stack.

Was that more of a onetime in nature or just how do we think about the G&A line going forward for the year.

Yes, I mean I think.

Certain.

One of the things that we've been focused on over the last.

Over the last year year, and a half has been being as resource sufficient as possible certainly.

One of the areas where.

We do continue to invest over time is is in our centralization efforts and so as.

Certainly as we try to find resource efficiency there are movements between.

Between some of the cost line items.

But.

But yes, I think that.

Across the overall cost structure.

I think you see that in terms of the margins that.

We bite into yes, I think we've taken a very significant.

Our effort and looking for opportunities for resource efficiency really taken a lot of the lessons that debt.

That we've learned over the course of Covid and applying those to places where we feel like we can get savings and that being.

Instead, I would just call out that.

We're also as we've announced previously making some very significant investments.

In.

And our frontline wages, which is an area, where we continue to invest specifically to the G&A and in Q4, what you will see is that.

We got a $13 million litigation.

Reserve is is in there.

So that's probably the biggest driver of that variation.

Very helpful. Thank you very much.

And our next question will come from Chris <unk> with Deutsche.

Hey, good afternoon, everyone and congrats to Robyn <unk>.

On the new roles.

I was hoping to maybe triangulate lyft lift pass revenue a little bit I understand that.

A lot different to 2019, but I was wondering if there is a way to kind of get at if you didn't sell another lift.

Ticket all year, where you might be now versus where you were in 2019, if that if that question makes any sense.

Yes, I guess, what you are.

I'll, maybe let Michael chime in on it I think we're obviously not providing specific guidance on.

The breakout of lift revenue, but Michael I know, if you want to give any color on that obviously, we're making progress on that front.

Alright, Chris can you repeat that for me I'm not sure I totally followed it yeah I'm just trying to get a sense I mean, obviously there is more revenue on the books than there was in 2019 and lift ticket revenue.

How do you get a sense for what percentage of lift.

Ultimate lift ticket revenue realized in fiscal <unk> was kind of on the books at this point.

Just now you are saying youre, saying in terms of our pass sales cadence Yeah point, yes, yes.

Yes.

We don't we actually we don't.

Does that as.

As to kind of the pacing of.

The percent of.

Of lift revenue on the books that is something that we disclose many years ago, but we actually have stopped doing that.

So unfortunately, we can't provide color on that.

Okay fair enough switching.

Disclosures, a little bit on the capital allocation, obviously, good to see dividend coming back I guess the question being you're probably gonna make as much EBITDA this coming year as you did.

More than you did in 19, Youre resetting dividend to have.

And then.

Switch gears I guess on share repurchase. So is there just thinking that you also have a bunch of cash obviously on the balance sheet. So is there just a thinking that let's be conservative and see how this plays out or is there something else that has to happen before you get the full dividend and maybe some share buybacks coming in.

Yes.

Nothing new here.

I would say that our capital allocation priorities remain very much the same.

As they have been over time, which is <unk>.

Reinvesting in the business first.

Certainly the acquisition opportunities.

That we continue to pursue and then returning excess capital to shareholders and I think.

Yes, when we looked at this holistically and certainly we feel like.

The increased kind of one time capital plan that Rob went through the details of it.

<unk> is a pretty significant capital allocation opportunity for us at this moment to really.

Improve as he was saying the guest experience.

We're off the network.

And I think yes, we are coming out of Covid with an outlook based on the pass sales that <unk> went through certainly what we see as the business outlook overall.

And the balance sheet that we have is as an opportunity to head into the season.

Yeah announcing a region.

Our Korean statement of the dividend as to the level of the dividend Yeah. I think we feel like this is an appropriate level to.

To come back out with a dividend as.

As I mentioned the board will will absolutely continue to look at the right level for the dividend.

Usually we make those have historically made those decisions in March.

So we're coming out ahead of the season with us given the timing piece.

And so that's that's largely where we stand on that I think.

As it relates to share repurchases as <unk> seen historically, we've largely use dividends as the.

The primary means of regular capital returned.

And I think plan to continue that I think as it relates to repurchases. We continue to take a more opportunistic stance on that.

Okay I appreciate that color thanks, guys.

Thank you.

And moving on to Patrick Scholes.

Cheryl.

Yes.

Great. Thank you.

Good evening, everyone afternoon.

First question is.

Last quarter, you had talked about raising your starting wages hourly wages to $15 an hour do you think that at this point.

No.

To fill.

The positions.

Yes, I think we think it was a pretty significant move for many of our resorts.

I think the.

Bulk of our resorts.

A.

Close to a $3.

That increase per hour. So we certainly think it's a major statement.

It's a critical investment in our employees and ensuring that we get the right talent and staffing that said obviously this is.

Broadly across the U S is obviously a lot of challenges around staffing and so you know whether those two things will ultimately be enough it's hard.

But we feel good about where we sit right now in terms of our hiring process going into next season and it's still early.

But we feel like certainly without that investment we think we would have struggled to a much greater degree.

And so we feel like this puts us in an opportunity to get to the other side.

Is that given the rapidly changing dynamics in the hiring market, it's hard to say for sure exactly how it will play out and I do have you know.

No doubt that staffing will continue to be a challenge this season as it was in many previous seasons.

And there are other factors in addition to wages like affordable housing it's critical in our company.

It was out front on that as well.

But at this moment, yes, we feel good about how we're going into the season.

In terms of ensuring that we can provide the right experience to our guests.

Okay. Thank you that's it.

Thank you.

And moving on to David.

<unk> <unk> with Jefferies.

Afternoon, everyone.

One.

Congrats on a great tenure.

Uh huh.

Enjoys and the last name well.

Thanks.

Best of luck.

I wanted to ask about the cash.

Program.

<unk> often done a lot of homework around these.

These kinds of large scale investments.

Perhaps I wonder if there was any further backup or detail you can share around the decision.

All of the size.

So all of it.

Our survey work or.

Anything to that end from your satisfaction scores.

How much and where et cetera.

Yeah.

I think the great opportunity that we have across most of our resorts and throwing all.

Our large resorts is.

With our epic mix.

Time application that provides people real time.

Lyft line wait times, we actually have insight as to the wait times at every single one of these left.

At those resorts across the entire year.

And so we.

We bring that into the mix as we start to then say okay.

Where do we have the longest wait times, where can we reduce that we obviously are of course are looking at our gx four of which which asked questions about right left and their experience on labs.

We also have all the anecdotal evidence.

But each of our resorts.

Having all the all of our leaders.

Across those resorts and so we kind of take all of that together and identify where do we think we can have the biggest impact. On addition in addition to that we're also layering on where our pass holders liked escape and what are the most important resorts the pass holders when theyre looking at the network as a whole.

So we're kind of combine.

Binding that information to come up with a a prioritized list and no surprise, even though there are a lot of left this is really the largest scale program I think anybody's ever undertaken.

In the industry.

There are a lot of lift obviously that are still out there that we haven't done so.

We've included but we really considered to.

To be the highest ROI top priority for this resort and we gathered them together to really make a statement to our guests about the commitment that we have for the guest experience.

And.

Really invest in the network.

You know that we really see which is that our resorts.

Individually are completely.

A unique and they provide a unique experience but of course, we like to come together as a team and figure out like where is the most important places for us to invest to make the overall experience of cross selling so it's the best it can be.

Understood and just.

As a follow up to that.

Do you have the information.

Measuring.

The primary competitors, who want now wait times look like or what their satisfaction scores.

Hum.

No we don't.

So a lot of this is one of the benefits that we have it's important to remember that we have 37 resort.

<unk> 34 resorts in North America. So we get to look at detailed information across all of these resorts who are right in many ways competitors with each other.

And so that gives us a tremendous amount of detail around how we make these decisions because we can compare and contrast on exactly the same information and platform.

That form.

Certainly on lifts, but also on every other aspect of our business. It's one of the real opportunities that we see for the future is that we can take the same analytics that we've been using to drive incredibly successfully our marketing and our path because now we can do to drive our operations.

And even I think last year was a great opportunity for that because we could go to a resort leaders and say hey, we're looking at information across.

10 different resorts that have similar cost structures tend to lift that are similar and hey, some of you are doing at some of Youre doing Y and we're seeing the results from them and they can when I say, we I mean, they like the resort leaders themselves get together.

Together to really do that so we don't get the information from our competitors, but when you've got enough. We think inside to do an amazing job of kind of best practicing all of our operations.

Understood.

Sure Thanks for that.

Yes, Thanks, David.

And our next.

Question will come from Jeff <unk> with Stifel.

Afternoon, everyone. Thanks for taking my questions here first off I do want to Echo my peers that didn't and say congrats on tremendously successful tenure, rather well are in transition to chairman ship and congratulations to you as well. Okay. So then looking forward to working together more closely.

Moving forward.

Just to just a couple of questions here.

To start on pass sales.

Are you guys thinking about the impact from the healthy consumer and the results are reported thus far just with exceeding the stimulus folks making up for lost vacations last season, how much is this playing a role in the growth versus the more attractively priced.

<unk> product.

I do recognize it's difficult to parse these dynamics out, but just any thoughts here would be helpful.

Sure sure so anyway, I just talked about.

Yeah, I think it's hard to parse out as you highlighted Jeff exactly what all the different dynamics are I certainly am encouraged.

By so many different factors moving in our favor in terms of the strategy that we put in place.

On the 20% price reduction and what we had intended and I think two really important dynamics that are particularly encouraging is new and peak.

People trading up so, bringing new people into the program and then trade up meaning people are taking the discount and spending the discount on a higher level of past or more days, how much that's being impacted beyond the 20% price reduction is it's hard to know and parse out.

Certainly think that the 20% price reduction as well as the incredible network of resorts that we have and the investments that we've made into those resorts and the guest experience.

Have to be the primary driver of the business impact.

Okay, Great. That's helpful. And then for my follow up I was hoping to drill into the guidance here a little bit you provided context for the impact of the closures in Australia. During the first quarter the impact to the international business largely at Whistler. It looks like otherwise guidance assumes a fairly normal operating environment as it is it fair to take the 700.

85 to <unk> 35 million add back the 27 to <unk> 41 for those two impacts and look at that as a sort of non COVID-19 impacted normalized EBITDA baseline for for moving forward or are there other puts and takes to get there.

Yes, Michael you want to take that yeah sure. Thanks for the question, Jeff, Yes, I think the.

I think that the.

Right. So we set the guidance, where we obviously expect that will come out and then yes did call out those three specific items.

The two that you mentioned Whistler blackcomb during essentially the winter season coming up primarily as a result of the internet.

International headwinds that we anticipate basin, obviously as folks have followed that.

The challenges that we faced relative to Lockdowns and resort closures in Australia.

As you noted about unexpected $41 million just in Q1, there and then an expectation that there will be some headwinds as well.

Well in the group and conference side, which will largely hit the lodging business again difficult to quantify that so we've not put a number on that so.

And outside of that expecting a normal year. So I think that it is fair to.

Assume that.

In the absence of those changes the baseline would.

Would have been at those higher levels.

I think important to note that the.

The comparison points that we are providing for both Whistler.

And Australia are relative to getting back to actuals from the last kind of full season that we had so for Australia that would've been in the first quarter of.

2020, and for Whistler, the winter season of 2019.

Not assuming anything beyond that.

Okay, great both helpful and encouraging thanks, very much and congrats again Robyn Kirsten.

Thanks.

Thank you.

We will go to Brent mature.

Sure J P Morgan.

Yes.

Good afternoon, everyone. Thanks for taking my questions and congrats to Rob and Kristen.

Quick question on the past dynamics for this fall upcoming season, and I think I understand the.

The two that you mentioned, which is the pull forward obviously, the tough comp last year.

Is.

Is there any reason to expect a difference in mix for this upcoming fall season in terms of low frequency versus high frequency year over year.

First thing you want to pick up.

Yeah. Thanks, Brad Yeah, we generally see different dynamics in the spring versus the fall as we get closer.

Two on.

The season, starting we tend to see more new versus renewal and we tend to see people coming in to our epic day pass products.

As that vehicle for coming into the program. So there is a there is a different dynamic that happen.

And spring versus fall definitely.

Okay. Thanks for that and just as a follow up.

For maybe for Michael.

When you think about guidance and I know you are looking for something like a normal year for North America.

Just put out a release about COVID-19 protocols requiring masks.

<unk> for activities indoors.

I guess, what gives you confidence that that's not going to impact consumer spend in F&B and other ancillary indoors, but then again, obviously consumers are spending a lot right now so maybe it's a wash how do you think about those two dynamics.

Yeah I think.

Clearly, we're going to be very focused on continuing to ensure the health and safety of both our guests and our employees, which was really about the announcement.

You know that we put out earlier this week I think that the primary difference between last year and this year it.

It is really about capacity.

<unk>.

And last year with the various COVID-19 protocols that we put in place there was.

Quite a significant reduction in capacity and that that really hit as you saw in our numbers, our food and beverage business, where we had to limit seats in outlets and things like that as well as in ski school.

Where we had.

A number of limitations relative to what we could serve and so in the guidance this year.

There is an assumption that those capacity increases will be returned to hear that capacity will be returned to normal.

Obviously as you said, there's puts and takes us to.

Kind of where consumer.

Demand is.

Any potential impacts from COVID-19, but at this point, we are planning to have full capacity at our resorts.

With the with the vaccination requirements. So we did outline.

It should not impact capacity at this time. So that's that's the approach that we took to planning for it this year.

Okay Best of luck thanks, guys.

Thank you.

Yes.

And our next question will come from Paul Golding with Macquarie capital.

Thanks, so much Rob congrats on an incredible run and curious and congrats on the new rule.

I was wondering if.

You could give some color on it.

And this might be for Michael given the earlier questions. How is the international and conference guests or resort EBITDA per visit sort of margin profile.

Pairs.

Two.

Yes.

Standard destination.

Domestic test or we're just how they compare to each other so the.

There is some comparison to 2019 as a baseline.

Sure.

And we don't provide specifics by guest segment, but directionally.

I think a couple of things on the international.

<unk> side, I think first and foremost there are differences in our international mix by resort.

And so as we've talked about for many years actually going back to the time when we did the Whistler deal.

One of the benefits of Whistler is that it is a significant international destination and has a bigger.

Mix of international guests.

In normal periods than most of our U S resorts and so as a result of that that's why we called out the disproportionate impact at Whistler Blackcomb.

I think that as it relates to their spending I think.

Rod strokes the international guests will likely tend to stay longer so have more data skied.

And in many cases will be a higher spending gas, particularly as it relates to ancillary businesses and so we've certainly built that assumption into our guidance and of course called that out specific to the impact.

At Whistler.

As it relates to the conference and group business.

Like many lodging.

Lodging businesses.

Important part.

Of the kind of hotel and conference center side of the business that being said one of the benefits that we have is that we have a mix of both property management businesses as well as the owned and operated properties and so it's certainly an important piece of.

Of the lodging profile for.

For us Additionally, as you would imagine.

Conference in group can drive quite a bit of food and beverage.

Spending in particular with the banquets and conferences and the like and so.

That's really what we built into our expectations for the lodging business, which is.

A slower.

Recovery there as we're seeing more broadly in leisure trends not just from our company, but really across the sector from what we're seeing.

Really appreciate the color and then as a sort of a wishlist follow up here just you mentioned the.

Trade up.

Component of the epic boost.

Lower.

And the new program.

Out of the New program participants is there any color you can give whether from survey data or otherwise around.

If there's a proportion that's new to ski versus coming from competitors, but already a skier.

Thanks for the question well I cant give any color on if they're new to skiing, we do look at new and a couple of different ways. There are lapsed pass holders meeting people, who had a past.

Years ago, or two years ago, but not last year and bringing them back in two.

The portfolio Theres lapsed paid which would be someone who has shown up at one of our resorts on a lift ticket in the past.

But not had a past and we're bringing them into the program and then there is brand new and as you know we have a very robust database of gas in guest behavior. So we can.

Look at well Who's brand, new showing up in our database for the first time.

All three of those.

Sub segments of new are performing incredibly strong, meaning bringing people back into the program converting lapsed lift ticket people into a pass and then brand.

New people that we have not seen on a lift ticket or a passive or all three of those are actually performing very strong I.

Cannot.

Tell you at this point I mean at some point in the future maybe we will do research among the new group to our database to understand better.

What their behavior was.

Before but at this point in time in this.

Phase of the selling cycle, we don't know how many of those came from a competitive path or just.

Just took up the sport of skiing.

Great. Thanks, so much I appreciate it.

And our next.

I'm from Ryan Sundby with William Blair.

Hey, Thanks for taking my question and let me add congratulations to Rob.

To match.

I guess going up a bit on Paul's question there.

I think at the Analyst day Christian the idea was that the change in past.

Pricing.

I have an overall impact on pass revenue and total revenue.

The opportunity to capture new customers, which you just talked about higher renewal rates.

Thanks Louise.

I guess, we've seen the growth through the first two pricing periods here do you still see this as a neutral outcome for this.

Year, because it's hard for us to know how much you're shifting onto capacity research Incrementals you okay.

Yeah. Thank you for the question I I, what I would say is that our.

Sales have exceeded our original expectations.

And are generating more incremental revenue than we had expected and those results are factored into our guidance.

So we are.

Yeah, very encouraged that some of the assumptions that we originally made in shared at the investors conference.

<unk> are turning out.

At this point in time more positive than what we had originally assumed.

Okay, great. Thank you.

And then just on the GAAP between the 42% and 17% dollars can you just help walk us through that Delta and.

Clearly the price increases is the big piece, there, but I think there's positive trade up but maybe negatives in terms of the past mix to any kind of color on the puts and takes would be great.

Yeah, Okay. Thank.

Thank you said it yes, I think you said it exactly right.

The positive overarching.

Arching message is even though we decreased our past price by 20%. We are seeing our effective passed price only decreased by 17%, which I think is very encouraging it's a reflection of a trade.

Trade up but there's other dynamics in there as well such as mix and mix.

Mixed shift as we move through the selling cycle price increase.

And so yeah. There are other factors in there that are impacting our effective past price I think on a macro level.

The 20% price decrease resulting in only a 17% decline in effect this past price.

<unk> is very encouraging for us.

Great. Thank you.

Thank you and that does conclude the question and answer session I will now turn the conference back over to you for any additional remarks.

Thank you operator this concludes our fiscal 2020.

'twenty one year end earnings call. Thanks to everyone, who joined US today. Please feel free to contact me Kierston or Michael directly should you have any further questions. Thanks for your time today and goodbye.

Thank you and that does conclude today's conference. We do thank you for your participation have an.

Yeah.

[music].

Yeah.

[music].

Good day.

Come to the Vail resorts fiscal year end 2021 earnings call. Today's conference is being recorded at this time I would like to turn the conference over to Rob Katz. Please go ahead Sir.

Thank you operator, good afternoon, everyone welcome to our fiscal 2021 year end earnings.

<unk> conference call I'm excited to have Kierston Lynch, our current chief marketing officer, and incoming Chief Executive Officer joined Michael Barkin, Our Chief Financial Officer, and me on the call today.

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.

Certainty as described in our SEC filings and 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 September 23, 2021, 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.

<unk> are provided in the tables included with our press release and along with our annual report on Form 10-K were filed this afternoon with the SEC and are also available on the Investor Relations section of our website at Www Dot Vail resorts Dot com.

So with that said, let's turn to our fiscal 2021 and fourth quarter results given the continued challenges.

<unk> is associated with COVID-19, we are pleased with our operating results for the year. Our results highlighted our data driven marketing capabilities the value of our past products. The resiliency of demand for the experience that we offer throughout our network of World class resorts and our disciplined cost control.

Our results continue to improve as the 2000.

22021, North American ski season progressed, primarily as a result of stronger destination visitation at our Colorado and Utah resort.

Excluding peak resorts total skier visitation at our U S destination mountain resorts and regional ski areas for fiscal 2021 was down only 6% compared to fiscal 2000.

<unk> thousand 19.

Westwood Black home's performance with disproportionately impacted doing the due to the closure of the Canadian border to international GAAP, including gas from the U S. On the resort closing earlier than expected on March 32021, following a provincial health order issued by the government of British Columbia.

We're sort of outcomes total skier visitation for fiscal 2021 declined 51% compared to fiscal 2019.

Our ancillary lines of business were more significantly and negatively impacted by COVID-19 related capacity constraints and limitations throughout the 2000.22021, North American ski season, we.

Generated a resort reported EBITDA margin of 28, 5% driven by our disciplined cost control as well as a higher proportion of lift revenue relative to ancillary lines of business compared to prior periods.

For the fourth quarter, we are pleased with the strong demand across our north American summer operations, which exceeded our expectations.

And we believe highlights our guests' continued affinity for outdoor experiences in Australia, we experienced strong demand trends at the beginning of the 2021 Australian ski season.

Subsequent COVID-19 related stay at home orders and temporary resort closures negatively impacted financial results for the fourth quarter.

<unk> by approximately $8 million relative to our guidance expectations issued on June seven 2021.

Fourth quarter results were also negatively impacted relative to our June seven 2021 guidance by a onetime $15.0 million charge for contingent obligation with respect to certain litigation matters.

Now I will turn the call over to <unk> to provide an update on our season pass sales.

Thank you, Rob and good afternoon, everyone I am pleased to be joining our earnings call today and look forward to speaking more regularly with our investors and analysts as we move towards the CEO transition in November 1st.

We.

We are pleased with the results of our season pass sales to date, which continued to demonstrate the strength of our data driven marketing initiatives and the compelling value proposition of our past products driven in part by the 20% reduction in all past prices for the upcoming season.

<unk> product sales through September 17th 2000.

21 for the upcoming 2021.2022, North American ski season increased approximately 42% in units.

Approximately 17% in sales dollars as compared to the period in the prior year through September 18th 2020 without deducting for the value.

<unk> of any redeemed credits provided to certain north American passengers and the prior period.

To provide a comparison to the season pass results released in June.

<unk> product sales through September 17, 2021 for the upcoming North American ski season increased approximately 67% in units.

And approximately 45% in sales dollars as compared to sales for the 2019 2020, North American ski season through September 20th 2019 with past product sales adjusted to include peak resort pass sales in both periods.

<unk> product sales.

Our adjusted to eliminate the impact of foreign currency by applying an exchange rate of <unk> 79 between the Canadian dollar and U S dollar and all periods for Whistler Blackcomb pass sales.

We saw strong unit growth from renewing pass holders and significantly stronger unit growth from new pass holders.

Which include GAAP in our database, who previously purchased lift tickets our passes but did not buy a pass or a lift ticket and the previous season as well as guests who are completely new to our database.

Our strongest unit growth was from our destination markets, including the northeast.

And we also.

Also had very strong growth across our local markets.

The majority of our absolute unit growth came from our core epic pass and epic local pass products.

And we also saw even higher percentage growth from our epic day pass products.

Compared to the period ending September.

September 18, 2020 effective half price decreased 17% despite the 20%.

Price reduction we implemented this year and the significant growth of our lower priced epic day pass products, which continued to represent an increasing portion of our total advances.

Vance commitment product sales.

We are very pleased with the performance of our past product sales efforts to date, which exceeded our original expectations for the impact of the 20% price reduction, particularly in the growth of new pass holders and in trade up as we are seeing from households.

Holders into higher priced products.

As we enter the final period for past product sales, we feel good about the current trends. We are seeing however, it is important to point out that we know a portion of the growth. We have seen to date represents certain pass holders purchasing their past earlier in the selling season and then.

Then in the prior year period, and we saw strong growth in the late fall and the prior year period due to concerns about COVID-19, including questions about our resort access as a result of our reservation system.

Given these factors and the other changing economic and Covid related dynamics it is difficult.

To provide specific guidance on our final growth rates, which may decline from the rates we reported today.

Now I would like to turn the call over to Michael to further discuss our financial results and fiscal 2022 outlook.

Thanks, Kirsten and good afternoon, everyone.

As Rob mentioned.

And we're pleased with our results for fiscal year 2021, as a reminder, in the prior year, we announced the early closure of the 2019 2020, North American ski season for our ski areas lodging properties and retail and rental stores as a result of the COVID-19 pandemic beginning on March 15.2020.

These actions had a significant adverse impact on our results of operations for fiscal year 2020.

Additionally, the ongoing COVID-19, pandemic and the resulting limitations and restrictions under operations continued to have an adverse impact on our results for fiscal year 2021, including the early closure of Whistler.

Or black home on March 32021, and stay at home orders and periodic resort closures impacting our ski areas in Australia.

Net income attributable to Vail resorts was $136.0 million or $16.0 per diluted share for fiscal year 2021, compared to net income of 90.

$16.0 million or $44.0 per diluted share in the prior fiscal year.

Resort reported EBITDA was $551.0 million for fiscal year 2021, an increase of $44.0 million compared to fiscal year 2020.

Fiscal 2021 includes the impact from the deferral.

For all of $118 million of past product revenue and related deferred cost from fiscal 2022 fiscal 2021 as a result of the credits offered to 2000.22021, North American past product holders.

One a onetime $15.0 million charge for a contingent obligation with respect.

Back to certain litigation matters and approximately $2 million.

Favorability from currency translation from Whistler, Blackcomb, which the company calculated on a constant currency basis by applying current period foreign exchange rates to prior period results.

Moving now to our fiscal 'twenty to 2022 outlook.

Look we're encouraged by the robust demand from our guests the strength of our advanced commitment products sales and our continued focus on enhancing the guest experience, while maintaining our cost discipline.

Our guidance for net income attributable to Vail resorts is estimated to be between $278 million and $349 million.

For fiscal 2022, and we estimate resort reported EBITDA for fiscal 2022 will be between $785 million and $835 million.

Using the midpoint of the guidance range, we estimate resort EBITDA margin for fiscal 2022 to be approximately 32, 1%.

<unk>, which has negatively impacted as a result of COVID-19 impacts.

Associated with Australia in the first quarter of fiscal 2022, and the anticipated slower recovery in international Visitation and group and conference business.

The guidance assumes normal weather conditions, a continuation of the current economic <unk>.

<unk> and no material impacts associated with COVID-19 for the 2021 2022, North American ski season or the 2022.

Australian ski season, other than an expected slower recovery for international visitation, which is expected to have a disproportionate impact at Whistler blackcomb.

<unk> and group and conference business, which is expected to have a disproportionate impact in our lodging segment.

At Whistler Blackcomb, we estimate the upcoming winter season will generate approximately $27 million lower resort reported EBITDA relative to the comparable period in fiscal 2019.

Primarily driven by the anticipated reduction in international visitation.

2022 guidance includes an expectation that the first quarter of fiscal 2022 will generate a net loss attributable to vail resorts between $156 million and $136 million.

And resort reported EBITDA between negative $118 million and negative $106 million, we estimate the negative impacts of COVID-19 in Australia, and the associated limitations and restrictions, including the current Lockdowns will have a negative resort reported EBITDA impact of approximately 40.

$1 million in the first quarter of fiscal 2022 as compared to the first quarter of fiscal 2020.

We are providing guidance for the first quarter of fiscal 2022 as a result of these negative impacts of COVID-19 in Australia, and we do not intend to provide quarterly guidance on a go forward basis.

Despite the significant investment we made by increasing our minimum and entry wages. This year and the headwinds that we expect to face from Australia, Whistler, Blackcomb and our group and conference business. We are expecting to drive margin expansion in fiscal 2022 through continued cost discipline, including significant cost savings.

That are a continuation of our focus on operating as efficiently as possible coming out of COVID-19.

Our liquidity position remains strong and we're confident in the free cash flow generation and stability of our business model.

Our total cash and revolver availability as of July 31, 2021 was approximate.

Approximately $10.0 billion with $3.0 billion of cash on hand, $418 million of revolver availability under the veil holdings credit agreement and $195 million of revolver availability under the Whistler Blackcomb credit agreement.

As of July 31, 2021, our net debt was three.

Times trailing 12 months total reported EBITDA.

Given our strong balance sheet and outlook. We are pleased to announce that the company plans to exit the temporary waiver period under the Veil Holdings credit agreement effective October 31, 2021, and declared a cash dividend of 88 per share payable on October.

2021 the.

The dividend payment equates to 50% of pre pandemic levels and reflects our continued confidence in the strong free cash flow generation and stability of our business model. Despite the ongoing risks associated with COVID-19.

Our board of directors will continue to closely monitor the.

Omics and public health outlook on a quarterly basis to assess the level of our quarterly dividend going forward.

I'll now turn the call back over to Rob.

Thanks, Michael as previously announced we are on track to complete several signature investments in advance of the 2021.2022, North American ski season.

In Colorado, we are completing a 250 acre lift served terrain expansion in the signature Mccoy Park area of Beaver Creek further differentiating the resort's high end family focused experience. We are also adding a new four person high speed lift at Breckenridge to serve the popular peak seven replacing the Peru, if the Keystone with.

With a six person high speed chairlift, and replacing the Peachtree Leppek crested Butte with a new three person fixed script west.

I don't chemo, we are completing a transformational investment including upgrading the quantum lift to replace the Green Ridge three person fixed grip chairlift. In addition to these investments that will greatly improve uphill capacity.

We are continuing to invest in companywide technological and Mac enhancements, including investing in a number of upgrades to bring our best in class approach to how we service our guests through these channels.

We are encouraged by the outlook for our long term growth in the financial stability. We have created the success of our advanced commitment strategy the expansion.

<unk> of our network and our focus on creating an outstanding guest experience remain at the forefront of our efforts.

Toward that end, we are launching an ambitious capital investment plan for calendar year 2022 across our resort to significantly increase lift capacity and enhance the guest experience as we drive increased loyalty from our guests.

And continuously improve the value proposition for our advanced commitment products.

These investments are also expected to drive strong financial returns for our shareholders.

Plan includes the installation of 19, new or replacement lift across 14 of our resorts and a transformational expansion at Keystone as well as an.

Additionally, as well as additional product projects that will be announced in December 2021, and March 2022.

All of the projects in the plan are subject to regulatory approvals.

Keystone, we are planning a significant terrain expansion into Bergman Bowl, which will create an incremental 555 acres of lift served terrain.

And provide a significant capacity increase to the resort with a new six person high speed lift. We are also planning to renovation and expansion of the outpost restaurant with an incremental 300 indoor seats and 75 outdoor seats.

At Vail, we plan to significantly upgrade the capacity and experience for guests and the legendary backbone.

We plan to replace the existing four person high speed gain crispo lift with a new six person high speed lift and we also plan to install a new four person high speed Sundown Express left these investments will provide guests with better circulation and an additional lift to move between the backbone and the front side of the mountain with.

With better access the lion's head base area of Whistler.

Black Hawk, and we plan to meaningfully increase capacity in circulation from the Creekside base area by replacing the six person Creekside gondola with a new eight person gondola and replacing the existing four person high speed read left with a new six person high speed lift at.

At parks.

City, we plan to significantly enhanced capacity at the Park City base area and improved mid mountain capacity in circulation, we plan to install our first eight person high speed lift, replacing the current six person silver load lift. We also plan to install a new six person high speed ego less replacing two existing lift to significantly improve.

The guest experience from the Park city based area for beginners and for our ski school guests.

At Breckenridge, we plan to replace the existing 3% fixed grip rips rod lift with a new four person high speed lift this upgrade will improve the beginner and ski school experience at peak eight with increased out of base circulation capacity along with easier.

<unk> loading and unloading.

We expect our capital plan for calendar year, 2022 will be approximately $315 million to $325 million, excluding any real estate related capital or Reimbursable investments.

This is approximately $150 million above our typical annual capital plan.

Based on inflation in previous editions for acquisition and includes approximately $20 million of incremental spending to complete the onetime capital plan associated with the peak resorts and Triple peaks acquisition.

Given our recent financings and strong liquidity the outlook for our business driven by the growth of our advanced commitment strategies and.

The tax benefit in 2022 from additional accelerated depreciation on U S. Investment. We believe this is the right time for our company to make a significant investment in the guest experience at our resorts and expect this onetime increase in discretionary investments will drive an attractive return for our shareholders additional details associated.

Stated with our calendar year 2022 capital plan can be found in our capital press release that was issued today.

We also intend to return our capital spending to our typical long term plan in our calendar year 2023 capital plan with the potential for reduced spending given the number of projects, we would complete in calendar year 2022.

We will be providing further detail on our capital plan in December 2021 as.

As we prepare for the upcoming North American ski season, we want to acknowledge our teams and communities that have been affected by the caldor fires around Lake Tahoe and express our deepest appreciation for all of the hard work completed by our team and all of our partners.

On the ground, we are incredibly grateful for the collective efforts of the firefighters and first responders community members and our employees, who worked tirelessly to protect our tahoe resorts and surrounding communities. We remain focused on the safety and well being of our employees as we support the recovery effort of the greater Lake Tahoe area.

This will be my 16th third and final earnings call and I could not be prouder about where the company stands today and how it's positioned for the future.

Throughout my time as CEO, one of my top priorities has been to identify and prepare a CEO for the next chapter in the company's growth and success.

I'm fully confident.

That kierston is that person.

<unk> marketing officer for more than 10 years <unk> has been responsible for the transformation and success of Vail resorts data driven marketing efforts and as a primary driver of the company's growth stability and value creation.

<unk> is also an incredibly skillful leader and developer of talent.

And it's had an amazing track record of building very strong teams.

With our company just having navigated the most challenging period in its history and coming out stronger than went up again. This is the right time for me to take a step back and play a different role at Vail resorts and the right time procure since a step into the CEO role to continue driving the strategy.

And growth of the company.

I'm very excited to remain fully active and engaged in Vail resorts key strategic decisions and activities as executive chairperson and I'm very proud that we are continuing to focus on our strategy of internal leadership development across all levels of the organization I'm fully confident in the depth.

Depth of our entire management team.

Very excited for this next chapter in the company's success story.

You want to take a moment to thank all of our employees guests and our broader community for your partnership and support throughout my more than 15 years as CEO. It has.

Been an honor to be a part of an incredible group of leaders across all.

All levels and locations of our company when I look across the company and see how much has changed and how much we have accomplished it reminds me what an incredible journey. It has been a true experience of a lifetime.

At this time Kierstyn, Michael and I would be happy to answer your questions. Operator, we are now ready for questions.

Thank you if you would like to ask a question. Please press star one.

One on your Touchtone telephone if you are joining us today, he's a speaker phone. Please make sure. Your mute function is turned off to why your signal to reach our equipment.

Also please limit yourself to one question and one follow.

One question at a time.

Again that is star one if you would like to signal star one.

Our first question will come from Shaun Kelly with Bank of America.

Hi, good afternoon, everyone.

Welcome to Kirsten.

And Rob congratulations thanks for everything you've done here, it's been a pretty amazing run across 63 quarters. So congrats on everything.

Thanks.

Maybe if we can just.

Maybe if we could just lead off a little bit.

I would love to hit on.

Obviously, you gave a ton of color on the past.

Syed.

Love to hear your thoughts on just given all of the movement the pull forward.

Else that just kind of going on here I think you've given us your broad take on on where transit today, but.

Help us think about maybe the pros and cons of where kind of what.

What might you get.

Thanks to either accelerate or decelerate for the kind of the remainder of the season.

And then if you could also just talk a little bit about.

On the ancillary spending side, what are sort of your expectations heading into the season as you think about the full year outlook you gave on the.

The guidance.

Sure Christian you want to take the question on profit.

Sure Hi, Sean Thank you.

We're really encouraged by the trends that we're seeing Sean I think very positive in terms of renewal, particularly strong on new which would certainly indicate that we're.

We're bringing new people into the pass program and new people to Vail resorts and to be a part of our network.

What are the other trends, we're seeing destiny, while we were up very strong across all of our local markets destination very strong and then the other dynamic is.

Trade up which is very strong.

It is really hard with the dynamics that are coming for the rest of the season to know exactly how this is going to turn out but I would say the fundamentals are very encouraging.

Key dynamics.

That impact the rest of the selling cycle our pulse.

Forward as I mentioned, we do know that a portion of our sales to date are people who pulled forward into this earlier time period.

I'm also very strong sales as you know last year in this remaining time period.

That we will be lapping and then.

Covid dynamics and economic dynamics that could impact what the trends look like for the rest of the year, but the core fundamentals of our strategy and the behaviors that we're seeing from our guests are associated with that strategy.

Very encouraging.

Great. Thanks, Chris.

And maybe you want to pick the ancillary question.

Sure. Thanks, John.

Yes, I think built into our guidance is yes.

Yes. It is after two pretty challenging years on the ancillary front given the constraints that we've had relative to COVID-19 are returned to a more normal state of it.

Affairs for the ancillary business. So I think I think that's really underlying our overall guidance assumptions and that definitely includes what we're assuming across our ancillary businesses and ski school food and beverage and retail rental.

Thanks to the positive for us certainly.

Have the epic.

Mountain rewards program in place, which.

No we haven't really had a full year yet of the benefit of that and certainly with the strong pass sales anticipate that being a benefit to us on the ancillary side I would I would just note that as we as we talked about in terms of the international.

A headwind and that return is slower as you know international tend to be high spending guests and so, particularly at Whistler Blackcomb and the guidance that we provided.

Around some of the challenges we expect there that will come through in the ancillary business as well, which is included in those numbers.

Great.

That was 201, so I will yield the floor I appreciate it everyone.

Thanks, Sean.

And our next question will come from Ben Chaiken with credit Suisse.

Hey, How's it going.

<unk> one of the investments we're tracking in ROI is tricky at least.

That's my interpretation over the years, what did you see in the business or what was your thought process to ramp this up because it sounds like a majority of the spend is going to get a lift side.

Is there a competitive angle is it maybe growth in volume from skier visitation perspective, just any color any incremental color would be super helpful and Rob Congrats and Kirsten.

<unk> been.

And around forever. So I don't know if welcome as appropriate but we're all excited so thanks.

Thanks, sure I'll take that one I think.

Our view is that it's certainly less or one of the signature components of the experience at any of our resorts.

We've always tried to be at the forefront.

Ensuring that our reducing wait times and reducing the lyft ride Tom.

And we do feel like we are positioned for continued future growth.

And the right way to support that over the long term is to make sure that we're continuing to invest.

In our guest experience and so that's.

It's always been I think the core philosophy of our company is that we're looking to get advanced commitment, but we're also looking to take the growth that we get in that program and obviously put it back into our resorts and we think lifts are really at the at the.

Critical pinch point of that.

In terms of really unlocking a much better guest experience as we look to the future.

And I would say, yes. It is of course, it's hard to track and ROI on a specific left but we understand that that helps support the value proposition that we're providing people that obviously can support future price growth in our products, including our passes that can also support future growth in visits.

And again, we feel like there's this unique moment coming out of <unk>.

Covid with the company in such a strong relative position that it's an opportunity for us to make a statement to our gas network wide right. So obviously that this announcement today is about investing in the.

Total network that we're offering in the past network that we're offering to.

Our GAAP and we feel like we've reached a point, where we can start to do this and move the needle both on guest experience on our business.

Got it that makes sense I appreciate it thank you.

Sure. Thank you.

And our next question will come from Lauren Wesolowski with Exane BNP.

Good afternoon. Thank you very much Rob, Chris and Michael for taking my questions I wanted to take a class longer.

The longer term question here, but.

With a 20% cut this year, which drove obviously pass sales up significantly year over year on a tier stack, how do we think about pricing going forward for the out years could we envision further price.

Cuts.

Increased subscription model or are you happy with where your Tam is your total addressable market and do you foresee that pricing could actually kind of tick up from here.

Two or three months ago.

Yeah. Thanks for the question as you know we have a long history of.

Taken consistent price increases on our Paas business.

A decision that we made this past year was really a discreet opportunity to do a reset to drive long term gas lifetime value and bringing more GAAP.

Guests into the program as we work.

Work toward our vision to achieving 75% or more percent of our revenue and an advanced commitment.

The we the lever of taking price increases is certainly a lever that is absolutely still available for us going forward.

From this new baseline that we've created from this reset.

Very helpful. Thank you very much.

And then a question for Mike Sorry did I cut you guys off.

Maybe Michael if I have a question here on G&A, I think you've talked about cost saving initiatives.

And you can flush that out a little bit more in just on the G&A for <unk> was up $20 million.

34% on two year stack.

Was that more onetime in nature or just how do we think about the G&A line going forward for the year.

Yes, I mean I think.

Certain.

Certainly one of the things that we've been focused on over the last.

Over the last year year, and a half has been being as resource sufficient as possible certainly.

One of the areas where.

We do continue to invest over time is is in our centralization efforts and so as.

We as we try to find resource efficiency there are movements between.

Between some of the cost line items.

But.

But yes, I think that.

Across the overall cost structure.

I think you see that in terms of the margins.

We're guiding to yeah, I think we've taken a very significant.

Our effort and looking for opportunities for resource efficiency really taken a lot of the lessons that.

That we've learned over the course of Covid and applying those to places where we feel like we can get savings on that.

Being said I would just call out that.

We're also as we've announced previously making some very significant investments.

<unk>.

And our frontline wages, which is an area, where we continue to invest specifically to the G&A and in Q4, what you will see is that.

The $13 million litigation.

Our reserve is is in there.

So that's probably the biggest driver of that variation.

Very helpful. Thank you very much.

And our next question will come from Chris <unk> with Deutsche Bank.

Hey, good afternoon, everyone and congrats to Rob and Kristen.

On the new roles.

I was hoping to maybe triangulate lyft lift pass revenue a little bit I understand that.

A lot different to 2019, but was wondering if there is a way to kind of get at if you didn't sell another lift.

Lift ticket all year, where you might be now versus where you were in 2019, if that if that question makes any sense.

Yes, I guess, what you are.

I'll, maybe let Michael chime in on it I think we're obviously not providing specific guidance on them.

On the breakout of lift revenue, but Michael do you want to give any color on that obviously, we're making progress on that front.

Sorry, Chris can you repeat that for me I'm not sure I totally got it yeah, I'm just trying to get a sense I mean, obviously there is more revenue on the books than there was in 2019 lift ticket revenue.

To get a sense for what percentage of lift.

Ultimate lift ticket revenue realized in fiscal 19 was kind of on the books at this point.

Just no.

Youre, saying youre, saying in terms of our pass sales cadence yeah point.

Yes.

Yes, we don't we don't we actually we don't.

Disclose that.

As to kind of the pacing of.

The percent of.

Of lift revenue on the books that is something that we disclose many years ago, but we actually have stopped doing that.

So unfortunately, I can't provide color on that.

Okay fair enough switching.

Switch gears, a little bit on the capital allocation, obviously, good to see dividend coming back I guess the question being you're probably gonna make as much EBITDA this coming year as you did.

More than you did in 19, Youre resetting dividend to have.

And then.

Nothing yet I guess on share repurchase. So is there just thinking that you also have a bunch of cash obviously on the balance sheet. So is there just.

Thinking that let's be conservative and see how this plays out or is there something else that has to happen before you get the full dividend and maybe some share buybacks coming in.

Yes.

Okay.

Yes sure.

Say that our capital allocation priorities remain very much the same.

As they have been over time, which is reinvesting in the business first.

Certainly the acquisition opportunities.

That we continue to pursue and then returning excess capital to shareholders and I think.

When we looked at this holistically as certainly we feel like.

The increased kind of onetime capital plan that Rob went through the details of it.

It is a pretty significant capital allocation opportunity for us at this moment to really.

Improve as he was saying the guest experience.

Across the network and I think yeah, we are coming out of Covid with an outlook based on the pass sales that Kierston went through certainly what we see as the business outlook overall.

And the balance sheet that we have is as an opportunity to head into the season.

Announcing a region.

Our Korean statement of the dividend as to the level of the dividend Yeah. I think we feel like this is an appropriate level to.

To come back out with a dividend as.

As I mentioned the board will will absolutely continue to look at the right level for the dividend.

Usually we make those have historically made those decisions in March.

So we're coming out ahead of the season with this given the timing piece.

And so that's that's largely where we stand on that I think.

As it relates to share repurchases as you've seen historically, we've largely use dividends as the.

The primary means of regular capital returned.

<unk> holders and I think plan to continue that I think as it relates to repurchases. We continue to take a more opportunistic stance on that.

Okay I appreciate that color thanks, guys.

Thank you.

And moving on to Patrick Scholes.

Cheryl.

Great. Thank you.

Good evening, everyone afternoon.

First question is.

Last quarter, you had talked about raising your starting wages hourly wages to $15 an hour do you think that at this point.

With enough.

To fill.

The positions.

I think we think it was a pretty significant move for many of our resorts.

I think the.

Bulk of our resorts.

A.

Close to a $3.

That increase per hour. So we certainly think it's a major statement.

It's a critical investment in our employees and ensuring that we get the right talent and staffing that said obviously this is.

Broadly across the U S is obviously a lot of challenges around staffing and so you know whether those two things will ultimately be enough it's hard.

But we feel good about where we sit right now in terms of our hiring process going into next season and it's still early.

But we feel like it certainly without that investment we think we would have struggled to a much greater degree.

And so we feel like this puts us in an opportunity to get to the other side.

Given the rapidly changing dynamics in the hiring market, it's hard to say for sure exactly how it will play out and I do have you know.

No doubt that staffing will continue to be a challenge this season as it was in many previous seasons.

And there are other factors in addition to wages like affordable housing that's critical in our company.

It was out front on that as well.

But at this moment, yeah, we feel good about how we're going into the season.

In terms of ensuring that we can provide the right experience to our GAAP.

Okay. Thank you that's it.

Thank you.

And moving on to David.

<unk> <unk> with Jefferies.

Hi, good afternoon, everyone.

Congrats on a great tenure.

Uh huh.

Enjoys and the last thing well.

Thanks.

Best of luck.

I wanted to ask about the comp.

X program.

<unk> often done a lot of homework around these.

These kinds of large scale investments and.

Perhaps I wonder if there was any further detail.

Detail you can share around the decision.

The size.

The scale of it.

Survey work or.

To that end from your satisfaction scores and how much and where et cetera.

Yeah.

I think the great opportunity that we have across most of our resorts and throwing all.

Of our large resorts is.

With our epic mix.

Time application that provides people real time Lyft line wait times, we actually have insight as to the wait times at every single one of these left.

At those resorts across the entire year.

And so we.

We bring that into the mix as we start to then say okay.

Where do we have the longest wait times, where can we reduce that we obviously are of course are looking at our gx four of which which asked questions about right left and their experience on labs.

We also have all the anecdotal evidence.

But each of our resorts.

Having all of the all of our leaders have a.

Across those resorts and so we kind of take all of that together and identify where do we think we can have the biggest impact. On addition in addition to that we're also layering on where our pass holders liked escape and what are the most important resorts the passengers when they're looking at their network as a whole.

So we're kind of combine.

Binding that information to come up with a a prioritized list and no surprise, even though there are a lot of left this is really the largest scale program I think anybody's ever undertaken.

In the industry.

You know there are a lot of lift obviously that are still out there that we haven't done so.

We've included but we really considered to.

To be the highest ROI top priority for this resort and we gather them together to really make a statement to our guests about the commitment that we have because we've got the experience.

And.

Really invest in the network.

You know that we really see which is at our resorts.

Individually are completely.

A unique and they provide a unique experience but of course, we like to come together as a team and figure out like where is the most important places for us to invest to make the overall experience of cross selling so it's the best it can be.

Understood and just as a follow up to that.

Do you have any information on.

You sort of measuring.

So the primary competitors and wipe out wait times look like or what their satisfaction scores look.

Hum.

No we don't.

So you know a lot of this is one of the benefits that we have it's important to remember that we have 37 rigs.

<unk> 34 resorts in North America. So we get to look at detailed information across all of these resorts who are right in many ways competitors with each other.

And so that gives us a tremendous amount of detail around how we make these decisions because we can compare and contrast on exactly the same information and platform.

That form.

Certainly on lifts, but also on every other aspect of our business. It's one of the the real opportunities that we see for the future is that we can take the same analytics that we've been using to drive incredibly successfully our marketing and our cost because now we can do to drive our operations.

And even I think last year was a great opportunity for that because we could go to a resort leaders and say hey, we're looking at information across.

10 different resorts that have similar cost structures tend to lift that are similar and hey, some of you are doing at some of your doing wind we are seeing the results from them and they can when I say, we I mean day like the resort leaders themselves get together.

Together to really do that so we don't get the information from our competitors, but when you've got enough. We think inside to do an amazing job of kind of best practice and all of our operations.

Solution.

Sure Thanks for that.

Yes, Thanks, David.

And our next.

Question will come from Jeff <unk> with Stifel.

Afternoon, everyone. Thanks for taking my questions here first off I do want to Echo my peers that did that and say congrats on tremendously successful 10 year, rather than a well earned transition to chairman ship and congratulations to you as well. Okay. So then looking forward to working together more closely.

Moving forward so.

Just a just a couple of questions here.

To start on pass sales.

Are you guys thinking about the impact from the healthy consumer and the results are reported thus far just with the savings of stimulus folks, making up for lost vacations last season, how much is this playing a role in the growth versus the more attractively priced.

<unk> product.

I do recognize it's difficult to parse these dynamics out, but just any thoughts here would be helpful.

Sure Cur, saying you want to just talk to that.

Yeah, I think it's hard to parse out as you highlighted Jeff exactly what all the different dynamics are I certainly am encouraged.

By so many different factors moving in our favor in terms of the strategy that we put in place.

And that 20% price reduction and what we had intended and I think two really important dynamics that are particularly encouraging is new and peak.

People trading up so, bringing new people into the program and then trade up meaning people are taking the discount and spending the discount on a higher level of past or more days, how much that's being impacted beyond the 20% price reduction is it's hard to know and parse out.

But I, certainly think that the 20% price reduction as well as the incredible.

Network of resorts that we have and the investments that we've made into those resorts and the guest experience I have to be that the primary driver of the business impact.

Okay, Great. That's that's helpful. And then for my follow up I was hoping to drill into the guidance here a little bit you provided context for the impact of the closures in Australia. During the first quarter the impact to the international business largely at Whistler. It looks like otherwise guidance assumes a fairly normal operating environment as it is it fair to take the seven.

85 to <unk> 35 million add back the 27% to 41 for those two impacts and look at that as a sort of non COVID-19 impacted normalized EBITDA baseline for for moving forward or are there other puts and takes to get there.

Yeah, Michael you want to take that yeah sure. Thanks for the question, Jeff Yeah, I think the.

I think that the.

Right. So we set the guidance, where we obviously expect that will come out and then yes did call out those three specific items.

The two that you mentioned Whistler blackcomb during essentially the winter season coming up probably primarily as a result of the internet.

International headwinds that we anticipate basin, obviously as folks have followed the the challenges that we faced relative to Lockdowns and resort closures in Australia.

As you noted about unexpected $41 million just in Q1, there and then an expectation that there will be some headwinds as well.

Well in the group and conference side, which will largely hit the lodging business again difficult to quantify that so would not put a number on that so.

And outside of that expecting a normal year. So I think that it is fair to.

Assume that in the absence of those changes the baseline would.

Would have been at those higher levels.

I think important to note that the.

So the comparison points that we are providing for both Whistler.

And Australia are relative to getting back to actuals from the last you know kind of full season that we had so for Australia that would've been in the first quarter of.

2020, and for Whistler, the winter season of 2019.

Not assuming anything beyond that.

Okay, great both helpful and encouraging thanks, very much and congrats again Robyn Gibson.

Thanks.

Thank you.

And we will go to Brent.

Sure J P Morgan.

Good afternoon, everyone. Thanks for taking my questions and congrats to Rob and Kristen.

Quick question on the past dynamics for this fall upcoming season, and I think I understand the.

The two that you mentioned, which is the pull forward obviously, the tough comp last year.

Is.

Is there any reason to expect a difference in mix for this upcoming fall season in terms of low frequency versus high frequency year over year.

First thing you want to take that.

Yeah. Thanks, Brad Yeah, we generally see different dynamics in the spring versus the fall as we get closer.

The season, starting we.

Tend to see more new versus renewable and we tend to see people coming in to our epic day pass products.

As that vehicle for coming into the program. So there is that there is a different dynamic that happen.

And spring versus fall definitely.

Okay. Thanks for that and just as a follow up.

For maybe for Michael when.

When you think about guidance and I know youre looking for something like a normal year for North America.

You guys just put out a release about COVID-19 protocols and requiring <unk>.

While for activities indoors.

I guess, what gives you confidence that that's not going to impact <unk>.

Sumer spend in F&B and other ancillary indoors, but then again, obviously consumers are spending a lot right now so maybe it's a wash, but how do you think about those two dynamics.

Yeah I think.

Think that clearly we're going to be very focused on continuing to ensure the health and safety of both our guests and our employees, which was really about the announcement.

That we put out earlier this week I think that the primary difference between last year and this year.

It was really about capacity.

<unk>.

And last year with the various COVID-19 protocols that we put in place there was.

Quite a significant reduction in capacity and that that really hit as you saw in our numbers, our food and beverage business, where we had to limit seats in outlets and things like that as well as in ski school.

Where we had.

A number of limitations relative to what we could serve and so in the guidance. This year. There was an assumption that those capacity increases will be returned to era that capacity will be returned to normal.

Obviously as you said, there's puts and takes as to.

Kind of where consumer.

Demand is.

Any potential impacts from COVID-19, but at this point, we are planning to have full capacity at our resorts.

With the with the vaccination requirements. So we did outline.

It should not impact capacity at this time. So that's that's the approach that we took to planning for it this year.

Okay Best of luck thanks, guys.

Thank you.

Yes.

And our next question will come from Paul Golding with Macquarie capital.

Thanks, So much Rob congrats on an incredible run and are curious and congrats on the new rule.

I was wondering if.

You could give some color on.

And this might be for Michael given the earlier questions. How is the international and conference guest or resort EBITDA per visit sort of margin profile.

Pairs.

Two.

Standard Destiny.

Domestic test or or just how they compare to each other so that theres. Some comparison to 2019 as a baseline.

Sure.

And we don't provide kind of specifics by guest segment, but directionally.

I think a couple of things on the international.

<unk> side, I think first and foremost there are differences in our international mix by resort.

And so as we've talked about for many years actually going back to the time when we did the Whistler deal.

One of the benefits of Whistler is that it is a significant international destination and has a bigger.

Mix of international guests.

In normal periods than most of our U S resorts and so as a result of that that's why we called out the disproportionate impact at Whistler Blackcomb.

I think that as it relates to their spending I think.

Rod strokes the international guests will likely tend to stay longer so have more data skied.

And in many cases will be a higher spending gas, particularly as it relates to ancillary businesses and so we've certainly built that assumption into our guidance and of course called that out specific to the impact.

At Whistler.

As it relates to the conference and group business.

Like many lodging.

Lodging businesses.

Important part.

Of the kind of hotel and conference center side of the business that being said one of the benefits that we have is that we have a mix of both property management businesses as well as owned and operated properties and so it's certainly an important piece of.

Of the lodging profile for.

For us Additionally, as you would imagine.

<unk> group can drive quite a bit of food and beverage.

Spending in particular with the banquets and conferences and the like and so.

That's really what we built into our expectations for the lodging business, which is.

A slower.

Lower recovery there as we're seeing more broadly in leisure trends not just from our company, but really across the sector from what we're seeing.

Really appreciate the color and then as a sort of a wishlist follow up here just.

You mentioned the.

Trade up.

Component of the epic boost.

<unk>.

And the new program.

Participants out of the New program participants is there any color you can give whether from survey data or otherwise around.

If there's a proportion that's new to ski versus coming from competitors, but already a skier.

Thanks for the question I can't give any color on if they're new to skiing, we do look at new and a couple of different ways. There are lapsed pass holders meeting people, who had a past.

Years ago, or two years ago, but not last year and bringing them back into.

The portfolio, there's lapsed paid which would be someone who has shown up at one of our resorts on a lift ticket in the past.

But not had a past and we're bringing them into the program and then there is brand new and as you know we have a very robust database of gas in guest behavior. So we can.

Look at well Who's brand, new showing up in our database for the first time.

All three of those.

Sub segments of new are performing incredibly strong, meaning bringing people back into the program converting lapsed lift ticket people into a pass and then brand.

New people that we have not seen on a lift ticket or a passive or all three of those are actually performing very strong I cannot.

Tell you at this point I mean at some point in the future maybe we will do research among the new group to our database to understand better.

What their behavior was.

Before but at this point in time in this phase of the selling cycle. We don't know how many of those came from a competitive path or just took up the sport of skiing.

Thanks, so much I appreciate it.

And our next question.

I'm from Ryan Sundby with William Blair.

Hey, Thanks for taking my question and let me add congratulations to Rob.

Sure.

I guess following up on Paul's question there.

I think at the analyst day Kirsten the idea was that the change in the past.

Okay.

I have an overall impact on pest revenue and total revenue.

The opportunity to capture new customers, which you just talked about higher renewal rates.

Absolutely.

I guess not always seem to grow through the first two periods here do you feel see this as a neutral outcome for this year.

Price because it's hard for us to know how much you're shifting on to passengers incrementals here.

Yeah. Thank you for the question I I, what I would say is that our.

<unk> have exceeded our original expectation.

Year and are generating more incremental revenue than we had expected and those results are factored into our guidance.

So we are.

Yeah, very encouraged that some of the assumptions that we originally made in shared at the investors conference.

Turning out.

At this point in time more positive than what we had originally assumed.

Okay, great. Thank you.

And then just on the GAAP between the 42% and 17% dollars can you just help market through that Delta and clearly.

Are the price increases.

Fair, but I think there's positive trade offs, but maybe negatives in terms of the past mix to any kind of color on the puts and takes would be great.

Yeah, I think you said it yes, I think you said it exactly right I mean, the positive overarching.

Clearly the message is even though we decreased our past price by 20%. We are seeing our effective paths price only decreased by 17%, which I think is very encouraging it's a reflection of trade.

Trade up but there's other dynamics in there as well such as mix and mixed.

<unk> shift as we move through the selling cycle price increase.

And so yeah. There are other factors in there that are impacting our effective pass price I think on a macro level.

The 20% price decrease resulting in only a 17% decline in effect this past price.

Mix is very encouraging for us.

Great. Thank you.

Thank you and that does conclude the question and answer session I will now turn the conference back over to you for any additional remarks.

Thank you operator this concludes our fiscal 2000.

And year end earnings call. Thanks to everyone, who joined US today, Please feel free to contact me Kierston or Michael directly should you have any further questions. Thanks for your time today and goodbye.

Thank you and that does conclude today's conference. We do thank you for your participation have an.

'twenty one.