Q2 2024 Vail Resorts Inc Earnings Call
Operator: Good afternoon, and welcome to the Vail Resorts fiscal second quarter 2024 earnings call. Today's conference is being recorded. Currently, all callers have been placed in a listen-only mode, and following management's prepared remarks, the call will be opened up for your questions. If you would like to ask a question at that time, please press star one on your telephone keypad. If you need to remove yourself from the queue, press star two.
Good afternoon, and welcome to the Vail resorts fiscal second quarter 2024 earnings call.
Today's conference is being recorded currently all callers had been placed in a listen only mode and following management's prepared remarks, the call will be opened up for your questions. If you would like to ask a question at that time. Please press star one on your telephone keypad, if you need to remove yourself from the queue press start to to get to as many questions as time permits we ask that you.
Operator: To get to as many questions as time permits, we ask that you please limit yourself to one question and one follow-up. At any time, if you need operator assistance, press star zero. I would now like to turn the call over to Kirsten Lynch, Chief Executive Officer of Vail Resorts. Please go ahead, ma'am.
Please limit yourself to one question and one follow up.
Anytime if you need operator assistance press Star Zero I would now like to turn the call over to Kirsten Lynch Chief Executive Officer of Vail Resorts. Please go ahead ma'am.
Kirsten A. Lynch: Thank you. Good afternoon, everyone. Welcome to our Fiscal 2024 Second Quarter Earnings Conference Call. Joining me on the call this afternoon is Angela Korch, our Chief Financial Officer. 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 as described in our SEC filing, 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, March 11, 2024, and 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 are provided in the tables included with our press release, which, along with our quarterly report on Form 10-Q, was filed this afternoon with the SEC and are also available on the investor relations section of our website at www.vailresorts.com.
Kirsten A. Lynch: Thank you good afternoon, everyone welcome to our fiscal 2024 second quarter earnings Conference call. Joining me on the call. This afternoon is Angela Clark, our Chief Financial Officer 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 them.
Kirsten A. Lynch: And uncertainties as described in our SEC filings and actual future results may vary materially.
Kirsten A. Lynch: Forward looking statements in our press release issued this afternoon, along with our remarks on this call are made as of today March 11th 124, and we undertake no duty to update them as actual events unfold.
Kirsten A. Lynch: <unk> remarks also include certain non-GAAP financial measures reconciliations of these measures are provided in the tables included with our press release.
Along with our quarterly report on Form 10-Q 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.
Kirsten A. Lynch: Let's turn now to our fiscal 2020 quarter results. Given the unfavorable conditions across our North American resorts, we are pleased that our results for the quarter demonstrate the resiliency of our strategic business model and our network of resorts and loyal guests. The results for the second quarter were negatively impacted by challenging conditions at all of our North American resorts through January, with approximately 42% lower snowfall across our Western North American resorts compared to the same period in the prior year, and limited natural snow and variable temperatures at our Eastern U.S. resorts, which comprise our Midwest, Mid-Atlantic, and Northeast resorts. Despite the impacts of conditions, resort reported EBITDA for the second quarter increased Resort EBITDA margin also improved 3.3 points in the second quarter compared to the prior year, driven by disciplined cost management.
Let's turn now to our fiscal 2020 quarter results.
Kirsten A. Lynch: Given the unfavorable conditions across our North American resorts. We are pleased that our results for the quarter demonstrates the resiliency of our strategic business model and our network of resorts and loyal guests.
The results for the second quarter were negatively impacted by challenging conditions at all of our North American resorts through January with approximately 42% lower snowfall across our western North American resorts compared to the same period in the prior year and limited natural snow and variable.
Kirsten A. Lynch: Temperatures at our Eastern U S resorts, which comprise our Midwest mid Atlantic and northeast resorts.
Kirsten A. Lynch: Despite the impacts of conditions resort reported EBITA for the second quarter increased approximately 8% compared to the prior year, primarily driven by the stability created by our season pass results.
Kirsten A. Lynch: Resort EBITDA margin also improved three three points in the second quarter compared to the prior year driven by disciplined cost management.
Kirsten A. Lynch: While visitation declined, our ancillary businesses performed well. In particular, our ski and ride school, dining, and rental businesses experienced strong growth in spending per visit compared to the prior year. We are pleased with the strong execution across our mountain resorts, as well as the impact of the company's investments in our employees, technology, and on mountain experience. Now I would like to turn the call over to Angela to further discuss our financial results, season-to-date metrics, and fiscal 2024 outlook. Thanks, Kirsten, and good afternoon, everyone.
Kirsten A. Lynch: While visitation declined our ancillary businesses performed well in particular, our ski and ride school dining and rental businesses experienced strong growth in spending per visit compared to the prior year.
Kirsten A. Lynch: We are pleased with our strong execution across our mountain resorts as well as the impact of the company's investment in our employees technology and on mountain experience.
Kirsten A. Lynch: Now I would like to turn the call over to Angela to further discuss our financial results season to date metrics and fiscal 'twenty 'twenty four outlook.
Angela Clark: Thanks, Kirsten and good afternoon, everyone.
Angela Korch: As Kirsten mentioned, the results for the second quarter were negatively impacted by unfavorable conditions across our North American resorts. Net income attributable to Vail Resorts was $219.3 million, or $5.76 per diluted share, for the second quarter of fiscal 2024, compared to net income attributable to Vail Resorts of $208.7 million, or $5.16 per diluted share in the prior year. Resort reported EBITDA was $425 million in the second fiscal quarter, which compares to resort reported EBITDA of $394.8 million in the same period in the prior year. Turning to our season-to-date metrics, the reported ski season metrics are for the period from the beginning of the ski season through Sunday, March 3, 2024, compared to the prior year period through March 5, 2023, and are for our company's North American destination mountain resorts and The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments. Unfavorable conditions negatively impacted season-to-date visitation, which was down 9.7% compared to the fiscal year 2023 season-to-date period.
Angela Clark: Shearson mentioned the results for the second quarter were negatively impacted by unfavorable conditions across our North American resorts.
Angela Clark: Net income attributable to Vail resorts was $219 $3 million or $5.76 per diluted share for the second quarter of fiscal 2024 compared to net income attributable to Vail resorts of $208 $7 million or $5 610 cents per diluted share in the prior year.
Angela Clark: Resort reported EBITDA was $425 million in the second fiscal quarter, which compares to resort reported EBITDA of $394 $8 million in the same period in the prior year.
Turning to our season to date metrics. The reported ski season metrics are for the period from the beginning of the ski season through Sunday March 3rd 2024 compared to the prior year period through March five 2023, and therefore, our company's North American destination Mountain resorts and regional ski areas exclude.
Angela Clark: And the results of the Australian ski areas and undermine citroen in both periods.
Angela Clark: The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments.
Angela Clark: Unfavorable conditions negatively impacted Susan today, visitation, which was down nine 7% compared to the fiscal year 2023 season to date period.
Angela Korch: Season-to-date total lift ticket revenue, including an allocated portion of season-past revenue for each applicable period, was up 2.6% compared to the fiscal year 2023 season-to-date period for Amplar Business Results. Season-to-date ski school revenue was up 5.5%, signing revenue was down 0.5%, and combined retail and rental revenue for North American resort and ski area locations was down 9.3% compared to the prior year period. Across our North American resorts, unfavorable conditions negatively impacted season-to-date visitation, which was below both prior year levels and our expectations, based on the number of guests visiting and their frequency. Following the Martin Luther King Jr. holiday weekend, challenging conditions persisted until early March at Whistler Blackcomb and our Tahoe resorts.
Angela Clark: Susan today total lift ticket revenue.
Angela Clark: <unk> an allocated portion of season pass revenue for each applicable period was up two 6% compared to the fiscal year 2023 season to date period.
Angela Clark: For our employer business results Susan today Ski school revenue was up five 5% dining revenue was down 0.5%.
Angela Clark: And combined retail and rental revenue for North American resort and scary location was down nine 3% compared to the prior year period.
Angela Clark: Across our North American resorts unfavorable conditions negatively impacted Susan today, visitation, which was well below both prior year levels and our expectations.
Angela Clark: Based on the number of guests visiting and their frequency.
Angela Clark: Following the Martin Luther King Junior holiday weekend challenging conditions persisted until early March at Whistler, Blackcomb and our Tahoe resorts.
Angela Korch: And while conditions improved at our Rockies and Eastern resorts, visitation did not improve as quickly as expected. We expect a portion of the lower visitation to be related to the challenging conditions in the first half of the season, as well as a shift in visitation patterns. Despite the decline in season-to-date visitation relative to the prior year period, we are pleased with lift... revenue growth driven by the stability created from our Season Pass program, the strength in our ancillary spending per skier visit across our ski school, dining, and rental businesses, and the improving trends as the season progresses. Now turning to our outlook for fiscal 2024. Due to the season-to-date underperformance, we are lowering our guidance for fiscal 2024.
Angela Clark: Conditions improved in our Rockies and eastern resorts visitation did not improve as quickly as expected.
Angela Clark: We expect a portion of the lower visitation is related to the challenging conditions in the first half of the season.
Angela Clark: As well as a shift in visitation pattern.
Angela Clark: Despite the decline in season to date visitation relative to the prior year period, we were pleased with lift.
Angela Clark: Revenue growth driven by the stability created from our season pass program to strengthen our ancillary spending per skier visit across our ski school dining and rental businesses and improving trends as the season progresses.
Angela Clark: Now turning to our outlook for fiscal 2024.
Angela Clark: Due to the season to date under performance, we are lowering our guidance for fiscal 2024.
Angela Clark: For the remainder of the season, we're expecting improved performance compared to the season to date period, including an expected shift in visitation patterns into March and April.
Angela Korch: For the remainder of the season, we are expecting improved performance compared to the season-to-date period, including an expected shift in visitation patterns into March and April. This is based on our significant base of pre-committed guests and their historical behavior patterns. The improvement in conditions across our Western North American and Northeast resorts and our lodging booking trends for the spring break period. While we are lowering guidance for the fiscal year, we know that the financial impact of the weather disruptions was greatly mitigated by our advanced commitment products, which creates stability for our company, our shareholders, and our communities in exchange for incredible value to the guests. We now expect NIN income attributable to Vail Resorts for fiscal 2024 to be between $270 million and $325 million, and a resort reported EBITDA for fiscal 2024 to be between $849 million and $885 million. We estimate the resort EBITDA margin for fiscal 2024 to be approximately 29.6% using the midpoint of the guidance range.
Angela Clark: This is based on our significant base of pre committed guests and their historical behavior patterns.
Angela Clark: The improvement in conditions across our western North American in northeast resorts and lodging booking trends for the spring break period.
Angela Clark: While we are lowering guidance for the fiscal year, we know that the financial impact of the weather disruptions with greatly mitigated by our advanced commitment products, which create stability for our company our shareholders and our communities in exchange for an incredible value to the guest.
Angela Clark: We now expect net income attributable to Vail resorts for fiscal 2024 to be between $270 million and $325 million and our resort reported EBITDA for fiscal 'twenty to 'twenty four to be between $849 million and $885 million.
Angela Clark: We estimate resort EBITDA margin for fiscal 2024 to be approximately 29, 6% using the midpoint of the guidance range.
Angela Clark: Our guidance includes an estimated $4 million of acquisition related expenses specific to crawl, Montana, but does not include any estimates for the closing cost operating results or integration expense associated with the crime, Montana acquisition, which is expected to close this spring.
Angela Clark: The updated outlook for fiscal 2024 assumes a continuation of the current economic environment and normal weather conditions for the remainder of the 'twenty to 'twenty three 'twenty 'twenty, four north American and European ski season, and for the 'twenty 'twenty four Australian ski season.
Angela Korch: Our guidance includes an estimated $4 million of acquisition-related expenses specific to Crown Montana but does not include any estimates for the closing cost, operating results, or integration expenses associated with the Crown Montana acquisition, which is expected to close this spring. The updated outlook for fiscal 2024 assumes a continuation of the current economic environment and normal weather conditions for the remainder of the 2023-2024 North American and European ski seasons and for the 2024 Australian ski season. The guidance assumes an exchange rate of $0.74 between the Canadian dollar and the U.S. dollar related to the operations of Whistler Block Home in Canada. Exchange rate of 65 cents between the Australian dollar and the U.S. dollar related to the operations of Parrisher, Falls Creek, and Hotham in Australia, and an exchange rate of $1.13 between the CISFRANC and the U.S. dollar related to the operations of Honor Monsadroun in Switzerland.
Angela Clark: The guidance assumes an exchange rate 74 sense between the Canadian dollar and the U S dollar related to the operations of Whistler Blackcomb in Canada.
Angela Clark: Exchange rate of 65 between the Australian dollar and the U S dollar related to the operations of parish or false cricket happen in Australia, and an exchange rate of $1 13 sense between the Swiss franc and the U S dollar related to the operations of honor months' Sidra in Switzerland.
Angela Clark: Our balance sheet remains strong, including total cash or revolver availability as of Jan January 31, 2024 of approximately $1 $4 billion with $812 million of cash on hand, and $630 million of combined revolver availability across our credit agreements.
Angela Clark: As of January 31, 2024, our net debt was two four times trailing 12 months total reported EBITDA.
Angela Clark: We remain confident in the strong free cash flow generation and stability of the underlying business model.
Angela Clark: Given these dynamics, we are pleased to announce that our board of directors declared a quarterly cash dividend on Vail resorts common stock of $2.22 per share representing an 8% increase in our quarterly dividend.
Angela Clark: The dividend will be payable on April 11th 2024 to shareholders of record as of March 'twenty eight 'twenty 'twenty four.
Angela Clark: We remain committed to returning capital to shareholders and intend to maintain an opportunistic approach to share repurchases.
Angela Korch: Our balance sheet remains strong, including total cash and revolver availability as of January 31, 2024, of approximately $1.4 billion, with $812 million of cash on hand and $630 million of combined revolver availability across our credit agreement. As of January 31, 2024, our net debt was 2.4 times trailing 12 months total reported EBITDA. We remain confident in the strong pre-cash flow generation and stability of the underlying business model. Given these dynamics, we are pleased to announce that our Board of Directors declared a quarterly cash dividend on Vail Resorts Common Stock of $2.22 per share, representing an 8% increase in our quarterly dividend. The dividend will be payable on April 11, 2024, to shareholders of record as of March 28, 2024.
Angela Clark: We will continue to be disciplined stewards of our capital and remain committed to prioritizing investments in our guest and employee experience high return capital projects and strategic acquisition opportunities.
Angela Clark: And returning capital to our shareholders through our quarterly dividend and share repurchase program.
Angela Clark: As previously announced on November 32023, the company entered into an agreement to acquire a majority stake in Crown, Montana Mountain resort in Switzerland.
Angela Clark: The company's second ski resort in Europe.
Angela Clark: Comment on is an iconic ski destination in the heart of the Swiss Alps, with a unique heritage incredible train passionate team and a community dedicated to the success of the region.
This acquisition aligns to the company's growth strategy of expanding its resort network in Europe.
Angela Clark: Creating even more value for our passengers and gas around the world.
Angela Clark: Much like under months of June the company believes comment Ana has a unique opportunity for future growth. The transaction is expected to close this spring subject to third party consents.
Angela Clark: Now I'll turn the call back over to Kirsten.
Kirsten A. Lynch: Thank you Angela.
Kirsten A. Lynch: We remain dedicated to delivering an exceptional guest experience, we will continue to prioritize reinvesting in your experience at our resorts, including consistently increasing capacity through lift terrain and food and beverage expansion projects along with investments in technology to further elevate the guest and employee experience at our resorts.
Angela Korch: We remain committed to returning capital to shareholders and intend to maintain an opportunistic approach to share repurchase. We will continue to be disciplined stewards of our capital and remain committed to prioritizing investments in our guest and employee experiences, as well as high-return capital projects. Strategic Acquisition Opportunities and returning capital to our shareholders through our quarterly dividend and share repurchase program. As previously announced on November 30, 2023, the company entered into an agreement to acquire a majority stake in Crown Montana Mountain Resort in Switzerland. The company's second ski resort in Europe, Tramontana is an iconic ski destination in the heart of the Swiss Alps with a unique heritage, incredible terrain, passionate team, and a community dedicated to the success of the region.
Kirsten A. Lynch: As previously announced we expect our capital plan for calendar year, 'twenty 'twenty four to be approximately $189 million to $194 million, excluding $13 million of incremental capital investments in premium fleet and fulfillment infrastructure to support the official launch of my epic.
Kirsten A. Lynch: Sure. So the 'twenty 'twenty four 'twenty five winter season $11 million of gross capital investment at Andre lots to drain on $1 million of Reimbursable capital, including my epic year premium fleet and fulfillment infrastructure capital and onetime investments our total capital plan for calendar year 2024.
Kirsten A. Lynch: This acquisition aligns to the company's growth strategy of expanding its resort network in Europe and creating even more value for our passholders and guests around the world. Much like Andermont Cedroon, the company believes Cromendana has a unique opportunity for future growth. The transaction is expected to close this spring, subject to third-party consent. Now, I'll turn the call back over to Kirsten.
Kirsten A. Lynch: As expect expected to be approximately $214 million to $219 million. This excludes any capital expenditures associated with the crime, Montana acquisition, which remains subject to closing.
At Whistler Blackcomb accompany plans to replace the four person high speed Jersey cream left with a new six person high speed lift. This left is expected to provide a meaningful increase to uphold capacity and better distribute guests at a central part of the resort.
Kirsten A. Lynch: Thank you, Angela. We remain dedicated to delivering an exceptional guest experience and will continue to prioritize reinvesting in the experience at our resorts, including consistently increasing capacity through lift, terrain, and food and beverage expansion projects, along with investments in technology to further elevate the guest and employee experience at our resorts. As previously announced, we expect our capital plan for calendar year 2024 to be approximately $189 million to $194 million, excluding $13 million of incremental capital investments in premium fleet and fulfillment infrastructure to support the official launch of MyEpicGear for the 2024-2025 winter season, $11 million of gross capital investments at Andramont Cedroon, and $1 million of reimbursable capital. Including MyEpicGear premium fleet and fulfillment This excludes any capital expenditures associated with the Crown Montana acquisition, which remains subject to closing.
Kirsten A. Lynch: At Hunter Mountain subject to approval, we plan to replace the four person fixed script Broadway left with a new six person high speed lift and plan to relocate the.
Kirsten A. Lynch: The existing Broadway loves to replace the two person fixed grip you lift providing a meaningful increase in I'll tell a capacity and improved access to train that is key to the progressive learning experience for our guests.
At Park City, we are in the planning process to support the approved a replacement of the Sunrise lift with a new 10 person Godzilla in partnership with the canyons village Management Association in calendar year, 2025, which will provide improved access and enhanced guest experience for existing.
Kirsten A. Lynch: And future developments within the canyons village.
Kirsten A. Lynch: At Park City and Hunter Mountain.
Kirsten A. Lynch: Beyond the planned Lyft investments, we plan to enhance snowmaking systems to improve the experience for key terrain increase early season terrain consistency and improve the efficiency through the installation of automated and energy efficient snow guns.
Kirsten A. Lynch: We also plan to further support the company's commitment to zero by investing and waste reduction projects across our resorts to achieve the goal of zero waste to landfill by 2030.
At Afton Alps, we plan to install a 10 lane tubing experience and renovate the existing alpine building to create a 200 seat restaurant.
Kirsten A. Lynch: At Whistler Blackcomb, the company plans to replace the four-person high-speed Jersey Cream lift with a new six-person high-speed lift. This lift is expected to provide a meaningful increase in uphill capacity and better distribute guests at the central part of the resort. At Hunter Mountain, subject to approval, we plan to replace the four-person fixed-grip Broadway lift with a new six-person high-speed lift and plan to relocate the existing Broadway lift to replace the two-person fixed-grip e-lift, providing a meaningful increase in uphill capacity and improved access to terrain that is key to the progressive learning experience for our guests. At Park City, we are in the planning process to support the approved replacement of the Sunrise Lift with a new 10-person gondola, in partnership with the Canyon Village Management Association, in calendar year 2025, which will provide improved access and an enhanced guest experience for existing and future developments within Canyon Village.
Kirsten A. Lynch: Experience at seven Springs, we plan to add 390, new parking spaces to increase capacity and improve the experience.
Our parish or in advance of the 20th twenty-five winter season in Australia, we plan to replace the Mt parish or double and triple chairs with a new six person high speed lift.
Kirsten A. Lynch: With capital spending commencing in calendar year, 2024, and continuing into calendar year 2025.
Kirsten A. Lynch: These projects remains subject to approvals.
Kirsten A. Lynch: In addition, we are continuing to invest in innovative technology to enhance the guest experience in the coming year, we are investing in new functionality for the my epic App and expanding mobile path and mobile lift tickets to Whistler blackcomb.
Kirsten A. Lynch: Across our resorts, we plan to pilot new technologies at select restaurants to make it both easier and faster for guests to dine at our resorts.
Kirsten A. Lynch: In addition in order to support the launch of Myopic here, we will invest in logistics and technology infrastructure to help deliver a transformational and elevated your access experience for our guests.
Kirsten A. Lynch: At Park City and Hunter Mountain, beyond the planned lift investments, we plan to enhance snowmaking systems to improve the experience for key terrain, increase early season terrain consistency, and improve efficiency through the installation of automated and energy-efficient snow guns. We also plan to further support the company's commitment to zero waste by investing in waste reduction projects across our resorts to achieve the goal of zero waste to landfill by 2030. At Afton Alps, we plan to install a 10 lane tubing experience and renovate the existing Alpine building to create a 200 seat restaurant. At Seven Springs, we plan to add 390 new parking spaces to increase capacity and improve the experience.
Kirsten A. Lynch: The 2023 'twenty 'twenty four my epic year pilot at Vail Beaver Creek Breckenridge Keystone is delivering a strong guest experience to pilot participants and valuable learnings for the business watch my epic year provides its members with the ability to choose the gear. They want for the fall season or for the day.
Kirsten A. Lynch: From a selection of the most popular and latest ski and snowboard models and have it delivered to them when and where they want it including slopeside pickup and drop off everyday.
Kirsten A. Lynch: In addition to offering the latest skis and snowboards myopic here will offer named brand high quality ski and snowboard boots with personalized insoles and boot fitting boot fits scanning technology.
Kirsten A. Lynch: The entire my epic your membership from gear selection to boot fit personalized recommendations to delivery will be at the members' fingertips and they knew my epic App.
Kirsten A. Lynch: At Parisher, in advance of the 2025 winter season in Australia, we plan to replace the Mount Parisher double and triple chairs with a new six-person high-speed lift, with capital spending commencing in calendar year 2024 and continuing into calendar year 2025. These projects remain subject to approval. In addition, we are continuing to invest in innovative technology to enhance the guest experience. In the coming year, we are investing in new functionality for the MyEpic app and expanding mobile pass and mobile lift tickets to Whistler Black Homes. Across our resorts, we plan to pilot new technologies at select restaurants to make it both easier and faster for guests to dine at our resorts.
Kirsten A. Lynch: The company plans to launch my epic year, So the 'twenty 'twenty four 'twenty 'twenty five winter season at 12 destination in Reidsville regional resorts across North America, including Kids gear, and we will be limiting membership to 60000 to 80000 members in the first year launch as the business scales.
Kirsten A. Lynch: To support the initial year of this new business in calendar year 2024, the company plans to invest $13 million beyond our typical annual capital plan and incremental premium gear sleep and fulfillment infrastructure to support the anticipated growth of this business.
Kirsten A. Lynch: We plan to provide additional updates on my epic ear and the ongoing capital needs of the business after the year one launch.
Kirsten A. Lynch: In addition, in order to support the launch of MyEpicGear, we plan to invest in logistics and technology infrastructure to help deliver a transformational and elevated gear access experience for our guests. The 2023-2024 My Epic Year pilot at Vail, Beaver Creek, Breckenridge, and Keystone is delivering a strong guest experience to pilot participants and valuable learnings for the business launch. My Epic Gear provides its members with the ability to choose the gear they want, for the full season or for the day, from a selection of the most popular and latest ski and snowboard models, and have it delivered to them when and where they want it, including slope side pickup and drop off every day. In addition to offering the latest skis and snowboards, MyEpicGear will offer name brand high quality ski and snowboard boots with personalized insoles and boot fit scanning technology
Kirsten A. Lynch: And Andre <unk> syndrome, we are pleased to announce plans to invest approximately $11 million in high impact growth capital projects as part of our multiyear strategic growth investment plan to enhance the guest experience on the mountain, which will be funded by the 110 million Swiss francs of capital that was invested as part of the purchase of our majority.
Kirsten A. Lynch: And under my children.
Kirsten A. Lynch: As part of the calendar year 'twenty 'twenty four investments, we are planning to upgrade and replace snowmaking infrastructure at the so drone me Lake area on the eastern side of the resort to enhance the guest experience for Chi beginner and intermediate terrain and significantly improve energy efficiency.
Kirsten A. Lynch: In addition, we plan to invest in the Iron mountain dining experience with improvements to the Mi lights and knutsen restaurants. These investments are expected to be completed ahead of the 'twenty 'twenty four 'twenty 'twenty five European ski season, and remain subject to regulatory approval.
Kirsten A. Lynch: Turning to pass sales, we are pleased to launch pass sales for the 'twenty 'twenty four 'twenty twenty-five season with a wide range of advanced commitment products, including our epic day pass, which provides one to seven days of access at our owned and operated resorts and our unlimited epic pass and regional pass products.
Kirsten A. Lynch: The entire MyEpicGear membership, from gear selection to boot fit to personalized recommendations to delivery, will be at the member's fingertips in the new MyEpic app. The company plans to launch MyEpicGear for the 2024-2025 winter season at 12 destination and regional regional resorts across North America, including KidsGear, and will be limiting membership to 60,000 to 80,000 members in the first year as the business scales. To support the initial year of this new business and calendar year 2024, the company plans to invest $13 million beyond our typical annual capital plan in incremental premium veer fleet and fulfillment infrastructure to support the anticipated growth of this business. We plan to provide additional updates on My Epic Year and the ongoing capital needs of the business after the year one launch.
Kirsten A. Lynch: Can provide unlimited access to 41 resorts every day of the season and access to additional partner resorts with no reservations were acquired at any resort, except Cali right.
Kirsten A. Lynch: Subject to close Vail resorts plans to include access to crime, Montana Mountain resort on select epic Epic pass products for the 'twenty 'twenty four 'twenty 'twenty five ski and ride season.
Kirsten A. Lynch: Starting in the 'twenty 'twenty, four 2025, North American ski season, when pass holders or skiing or riding with a guest utilizing buddy tickets are skewed with a friend tickets. They can now skip the ticket line and go directly to the left.
Kirsten A. Lynch: On average pass prices have increased 8% over the prior season's launch price and continue to represent tremendous value to our guests further supporting our compelling network of mountain resorts are strong guest experience created at each mountain resorts and our commitment.
Kirsten A. Lynch: You've asked in the guest experience with.
Kirsten A. Lynch: We greatly appreciate the loyalty of our guests visiting across our entire network of resorts. This season and the continued loyalty of our pass holders that have already committed to next season.
Kirsten A. Lynch: At Andermont-Soudroon, we are pleased to announce plans to invest approximately $11 million in high-impact growth capital projects as part of a multi-year strategic growth investment plan to enhance the guest experience on the mountain, which will be funded by the 110 million Swiss francs of capital that was invested as part of the purchase of our majority stake in Andermont-Soudroon. As part of the calendar year 2024 investments, we are planning to upgrade and replace snowmaking infrastructure at the Cedroon MeLakes area on the eastern side of the resort to enhance the guest experience for key beginner and intermediate terrain and significantly improve energy efficiency. In addition, we plan to invest in the on-mountain dining experience with improvements to the Mieleitz and Nachen restaurants.
Speaker Change: In closing I would like to thank all of our employees, especially our frontline teams for their passion hard work and commitment in creating an experience of a lifetime for our guests.
Speaker Change: The guest experience that our employees create is our mission as a company and lies at the center of our success. We all look forward to welcoming guests to our mountain resorts. This spring at this time, Angela and I will be happy to answer your question.
Speaker Change: Operator, we are ready for questions.
Speaker Change: Yes, ma'am at this time, if you wish to ask a question. Please press star one on your telephone keypad.
Speaker Change: They remove yourself from the queue by pressing star two.
Speaker Change: Please limit yourself to one question and one follow up.
Our first question comes from Shaun Kelley Bank of America.
Shaun Clisby Kelley: Hi, good afternoon, everyone.
Kirsten A. Lynch: These investments are expected to be completed ahead of the 2024-2025 European ski season and remain subject to regulatory approval. Turning to Pass Sales, We are pleased to launch Pass Sales for the 2024-2025 season with a wide range of advanced commitment products, including our Epic Day Pass, which provides 1-7 days of access at our owned and operated resorts, and our unlimited Epic Pass and Regional Pass products, which can provide unlimited access to 41 resorts every day of the season and access to additional partner resorts with no reservations required at any resort except Telluride. Subject to close, Vail Resorts plans to include access Starting in the 2024-2025 North American ski season, when pass holders are skiing or riding with a guest utilizing buddy tickets or ski with a friend tickets, they can now skip the ticket line and go directly to the lift.
Shaun Clisby Kelley: Kirsten Angela.
Shaun Clisby Kelley: Maybe we could just start with the visitation patterns you saw because theres clearly it seems like Theres two parts in here you called out those challenging conditions.
Shaun Clisby Kelley: I think what we all saw and clearly you documented early in the season and some of that continued and then the second part where you saw some changing visitation patterns and I'm wondering if you could just help us maybe divide between those two a little bit if you could explain the overall kind of what you saw behaviorally and if you could help us just sort of help quantify the two buckets.
Shaun Clisby Kelley: So investors can get a sense of certainly the weather impact as you see them for this year as they start thinking about building up next year. Thank you.
Shaun Clisby Kelley: Thank you Sean if you look at Q2, I would say incredibly challenging conditions as we noted a 42% lower snowfall than the prior year.
Sean: Which definitely had an impact on visitation when we look post MLK. Some things shifted we continued to see some challenging conditions at Westwood Black home and Tahoe, while conditions improved at the Rockies in the Rockies in the east visits however did not improve.
Sean: <unk> as we had expected we did however, see where president's weekend.
Sean: Are the trends improve not all the way to our expectations, but the trends did improve over that Presidents' day holiday.
Kirsten A. Lynch: On average, past prices have increased 8% over the prior season's launch price and continue to represent tremendous value to our guests, further supporting our compelling network of mountain resorts, our strong guest experience created at each mountain resort, and our commitment to the guest experience. We greatly appreciate the loyalty of our guests visiting across our entire network of resorts this season and the continued loyalty of our pass holders that have already committed to next season. In closing, I would like to thank all of our employees, especially our frontline teams, for their passion, hard work, and commitment to creating an experience of a lifetime for our guests.
Sean: We look forward to spring.
Sean: We're looking at a lot of different information, Sean one conditions are looking pretty good across the board at our resorts overall, I would say to watching indicators in our lodging as well as our market lodging.
Sean: And I would also then say and most importantly is our data about our guests and our pass holders. We obviously have a significant base of pre committed gas.
Sean: And have visibility into their behavior visibility into who has already pre committed and has a path, but have not even visited their resort at all yet and.
Operator: The guest experience that our employees create is our mission as a company and lies at the center of our success. We all look forward to welcoming guests to our mountain resorts this spring. At this time, Angela and I will be happy to answer your questions. Operator, we are ready for questions. Yes, ma'am. At this time, if you wish to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue by pressing star 2.
Sean: And what we're seeing season to date is that there is a higher percentage of those guests that have not yet utilized their pack, which suggest based on historical behavior of shift in visitation into later into the season.
Sean: And we would apply that same assumption as it relates to lift ticket guest as well.
Sean: So when we think forward to spring, it's really a combination of we think the conditions are in good shape, the lodging indicators for our lodging and in the markets that our resorts are in.
Shaun Clisby Kelley: Again, please limit yourself to one question and one follow-up. Our first question comes from Shaun Kelley, Bank of America. Hi, good afternoon, everyone.
Sean: Are looking favorable and then the data that we have because so many of our guests are pre committed and we can see if they have visited or not and how frequently.
Kirsten A. Lynch: Kirsten, Angela, you know, maybe we could just start with the visitation patterns you saw, because there's clearly, it seems like there's two parts here. You called out both challenging conditions, you know, I think, which we all saw, and clearly, you documented early in the season, and some of that continued. And then the second part, where you saw some changing visitation patterns. And I'm wondering if you could maybe divide those two a little bit, if you could explain them overall, kind of what you saw behaviorally. And if you could help us just sort of quantify the two buckets, you know, so investors could get a sense of certainly the weather impacts as you see them for this year, as they start thinking about building up next year. Thank you. Thank you, Shaun.
Speaker Change: And sorry, just as the follow up here, but you know.
Speaker Change: Is there any risk of it again there is some pattern here that's changing that is more permanent and again, we were looking at a lot of the same visitation data I think the investor base was as well and the question. We're sort of getting is just why is it a question of shifting or is there a behavioral change that may be happening in terms of when they're willing to go what theyre willing.
Speaker Change: You could do or possibly even a reaction to sort of the pricing environment is just maybe you could help us think about what your best guess is on the behavior or is it really all timing or is there some change in and just the way people are consuming skiing. This season or just kind of what youre seeing because we have a lot of the season goodbye. So far so we should have some sense of.
Speaker Change: Hell thereafter.
Speaker Change: Yeah, we have a lot of information about our pass holders and those are gas, you've obviously already pre committed and based on historical behavior.
Kirsten A. Lynch: If you look at Q2, I would say incredibly challenging conditions. As we noted, 42% lower snowfall than the prior year, which definitely had an impact on visitation. But when we look post-MLK, some things have shifted.
Speaker Change: We're making an assumption that that they are that are at our normal historical level that they will still visit whether or not there is.
Speaker Change: And have a broader trend going on I think it is really hard to say given the season is not over yet I think we'll probably have better visibility into that once we get through spring. It would appear that season to date is really significantly impacted by unfavorable conditions in it.
Kirsten A. Lynch: We continued to see some challenging conditions at Whistler Blackcomb and Tahoe, while conditions improved in the Rockies and the East. Visits, however, did not improve as we had expected. We did, however, see over President's Weekend that the trends improved, not all the way to our expectations, but the trends did improve over that President's Day holiday. As we look forward to spring, we're looking at a lot of different information, Shaun. One, conditions are looking pretty good across the board at our resorts overall. I would say two, lodging indicators in our hotels as well as our market hotels. And I would also say, and most importantly, our data about our guests and our passholders. We obviously have a significant base of pre-committed guests and have visibility into their behavior, visibility into who has already pre-committed and has a pass but has not even visited the resort at all yet. And what we're seeing season to date is that there is a higher percentage of those guests that have not yet utilized their pass, which suggests, based on historical behavior, a shift in visitation later in the season. And we would apply that same assumption as it relates to lift ticket guests as well.
Speaker Change: Would appear based on our historical data on guest behavior that there is a shift and we certainly see our lodging trends moving in that direction, but a broader.
Speaker Change: Kind of underlying impact I don't think that we can say for certain if there's anything like that going on at this time and we'll know more once we get through the fall season.
Speaker Change: Our next question comes from Jeff substantial with Stifel.
Hey, Great afternoon, everyone. Thanks for taking my questions.
Jeffrey Austin Stantial: Turning off here on the announced prices for the epic pass and the upcoming season.
Jeffrey Austin Stantial: Kissing your 8% higher year on year.
Jeffrey Austin Stantial: Austin.
Jeffrey Austin Stantial: Last pricing action, but if you think about pricing as a spread over CPI that.
Jeffrey Austin Stantial: It does seem to suggest more pronounced price taking this year relative to last so curious if you can just expand on this decision a bit more and I guess more specifically what sort of data did you look at it that gives you comfort around potential elasticity. Thanks.
Kirsten A. Lynch: So when we think forward to spring, it's really a combination of: we think the conditions are in good shape, the lodging indicators for our lodging and the markets that our resorts are in are looking favorable, and then the data that we have, because so many of our guests are pre-committed, and we can see if they have visited or not, and how frequently. And sorry, just as a follow-up here, but, you know, is there any risk that, you know, again, there's some pattern here that's changing that is more permanent? And again, we're looking at a lot of the same visitation data; I think the investor base was as well. And the question we're sort of getting is just why? Is it a question of shifting?
Speaker Change: Thanks, Jeff we have as you know historically consistently priced above inflation given the investments that we make in the guest experience at our resorts. If you look at.
Jeffrey Austin Stantial: Each year the data that we look at as guest behavior, we look at the investments, we're making and we look at inflation. When we're looking at inflation. We're looking at total inflation, but we're also looking at things like services inflation, because obviously, we're in the services business and we also look at admissions inflation. So we're really looking.
Jeffrey Austin Stantial: Holistically at inflation, and then our own guest behavior and price elasticity that we have based on the results of our in our past business. So overall those are all of the factors that go into our decision.
Kirsten A. Lynch: Or is there behavioral change that may be happening in terms of when they're willing to go, what they're willing to do, or possibly even a reaction to sort of the pricing environments? Just, you know, maybe you could help us think about what your best guess is on the behavior. Is it really all timing?
Jeffrey Austin Stantial: This year the increase as you noted is an 8% increase last year was also an 8% in the year prior was a 7% increase.
Speaker Change: That's great. Thank you for that question then for me.
Kirsten A. Lynch: Or is there some change in just the way people are consuming skiing, be it this season or just kind of what you're seeing? Because we have had a lot of the season go by so far. So we should have some sense of just how they're acting. Yeah, we have a lot of information about our pass holders. And those are guests who've obviously already pre-committed, and based on historical behavior, we're making an assumption that they are at that normal historical level that they will still visit, whether or not there's kind of a broader trend going on. I think it is really hard to say, given the season's not over yet. I think we'll probably have better visibility into that once we get through Spring. It would appear that the season to date is really significantly impacted by unfavorable conditions.
Speaker Change: Follow up I was hoping you might just expand upon some of the resiliency that you called out some of the ancillary lines in particular and ski school dining I guess, how much of this growth in revenue per visit is driven by gas mix or easy comps or.
Speaker Change: Is this going to be mostly strong underlying demand for return on some of the initiatives that you've talked about it at recent conferences. Thanks.
Speaker Change: Yeah, I think what we're seeing is that the guests that are coming are still spending money on those ancillary businesses. So you heard that in our comments about ski school about dining about the rental business and we're really pleased to see that behavior.
Speaker Change: Here some of the initiatives that you're alluding to like my epic year, maybe is a new initiative would not really given it's only in a pilot would not be having a material impact in this year, but we would expect it to going forward as that business scales, but I think the spending on ancillary is certainly.
Jeffrey Austin Stantial: And it would appear, based on our historical data on guest behavior, that there is a shift. And we certainly see our lodging trends moving in that direction. But a broader kind of underlying impact. I don't think that we can say for certain if there's anything like that going on at this time, and we'll know more once we get through the full season. Our next question comes from Jeff Stantial. Stiefel, Hey, great afternoon, everyone.
Speaker Change: I think a positive indicator for the business as it is even with the challenging snow conditions and lower visitation that our overall EBITDA was up for the quarter.
Kirsten A. Lynch: Thanks for taking our questions. Starting off here on the announced prices for the Epic Pass in the upcoming season, 8% higher year on year, that's consistent with last season's pricing action. But if you think about pricing as a spread over CPI, that does seem to suggest more pronounced price taking this year relative to last. So Kirsten, if you could just expand on this decision a bit more, and I guess more specifically, what sort of data did you look at that gives you comfort around potential elasticity? Thanks.
Speaker Change: Our next question comes from Laurence Bezel less SKU.
Laurence Bezel: B N P payable.
Laurence Bezel: Good afternoon. Thank you very much for taking my question I wanted to ask about weather disruptions in the prepared remarks, it's mentioned that you're rolling out enhanced snowmaking systems at Park City and Hunter Mountain.
Laurence Bezel: The guest experience. So Christian can you provide a little bit more detail. There. How is the technology is different from what you have currently how much capex is required to roll this technology out and should we expect this rollout to.
Kirsten A. Lynch: Thanks, Jeff. We have, as you know, historically consistently priced our resorts above inflation given the investments that we make in the guest experience at our resorts. If you look at each year, the data that we look at is guest behavior, we look at the investments we're making, and we look at inflation. When we're looking at inflation, we're looking at total inflation, but we're also looking at things like services inflation because, obviously, we're in the services business, and we also look at admissions inflation.
Laurence Bezel: To expand beyond these two resorts.
Christian: Yeah, obviously, we're always looking at ways that we can keep investing in snowmaking and automation and high efficiency Snowmaking is a key area of opportunity for us when we talk about our growth strategies going forward, we really do view that one.
Christian: One of the key growth strategies is resource efficiency and that comes from things like.
Kirsten A. Lynch: So we're really looking holistically at inflation and then our own guest behavior and price elasticity that we have based on the results of our past business. So overall, those are all of the factors that go into our decision. This year, the increase, as you noted, it's an 8% increase. Last year was also an 8% increase, and the year prior was a 7% increase. That's great. Thank you for that, Kirsten.
Christian: Hi, Joanne and guest self service, but one of the other ways that that comes is through automation and things like automated snowmaking help contribute to that we do have automated snowmaking currently at some of our resorts and I would anticipate every year as we look at capital will be assessing if there's further opportunities.
Christian: To expand that investment, where we can to get the highest efficiency and also.
Jeffrey Austin Stantial: And then for my follow-up question, I was hoping you might just expand upon some of the resiliency that you called out in some of the ancillary lines, in particular in ski school and dining. I guess, how much of this growth in revenue per visit is driven by guest mix or easy comps? Or is this going to be mostly strong underlying demand or return on some of the initiatives that you've talked about at recent conferences? Thanks.
Christian: Ensure that we can maximize the season and the resorts, where it can have an impact.
Joanne: Very helpful. And then I wanted to ask you about retail and rental revenues declined 15% in the quarter.
Joanne: Think about five points of that by my math it was driven by the exit of certain lease locations last year.
Speaker Change: Are you are you.
Speaker Change: The current footprint of 250 retail and rental locations in North America is that the right number going forward. What do you think there is an opportunity to reduce that especially with my epic year as it gets rolled out of the Crosby.
Kirsten A. Lynch: Yeah, I think what we're seeing is that the guests that are coming are still spending money on those ancillary businesses. So you heard that in our comments about ski school, about dining, about the rental business, and we're really pleased to see that. Some of the initiatives that you're alluding to, like My Epic Gear, maybe a new initiative that would not really, given it's only in a pilot, have a material impact this year, but we would expect it to going forward as that business scales. But I think the spending on ancillary is certainly, I think, a positive indicator for the business, as is the fact that even with the challenging snow conditions and lower visitation Our next question comes from Laurent Vasilescu. BNP Para, Oh, good afternoon.
Speaker Change: Ecosystem.
Speaker Change: So regarding rental and retail overall, yeah rental just to talk about that business and then forward rental and retail rental as we noted we did.
Speaker Change: <unk> achieved growth in our rental yields westward, which we're very pleased about season to date, the retail side, which I think you alluded to was impacted by the exit of 19 rental and retail locations in Aspen in Telluride, which we deliberately chose to exit those locations to focus our resources on our.
Speaker Change: Core mountain resorts as strategic priorities, so that was an impact as well in Q2 and you know there are also some headwinds in retail that I think are not dissimilar from what's happening in the outdoor retail industry overall right now.
Laurent Andre Vasilescu: Thank you very much for taking my question. In the prepared remarks, it's mentioned that you're rolling out enhanced snowmaking systems at Park City and Hunter Mountain to improve the guest experience. Kirsten, can you provide a little bit more detail there? How is the technology different from what you have currently? How much CapEx is required to roll this technology out?
Speaker Change: In terms of looking forward and myopic here and what that means for brick and mortar versus the business model I think.
Speaker Change: A lot of that will depend on the evolution and the success of the myopic gear business one of the things that I really like about that business model is it really.
Speaker Change: Utilizing the existing infrastructure that we have in terms of distribution centers and warehouses and locations for the gear without the need for the gas to go into a brick and mortar location because we're essentially through the app delivering the gears gear they want when they want it.
Kirsten A. Lynch: And should we expect this rollout to expand beyond these two resorts? Yeah, obviously, we're always looking at ways that we can keep investing in snowmaking and automation, and high efficiency snowmaking is a key area of opportunity for us. When we talk about our growth strategies going forward, we really do believe that one of the key growth strategies is resource efficiency, and that comes from things like management and guest self service. But one of the other ways that that comes is through automation, and things like automated snowmaking help contribute to that. We do have automated snowmaking at some of our resorts.
Speaker Change: I can't say for sure how that's going to play out in terms of the need for brick and mortar locations, but I will.
Speaker Change: Definitely evolve, especially and then we'll probably know more as we get through year, one of the launch and how that business performs on a broader level at scale.
Speaker Change: So more to come on that a little too early to know.
Speaker Change: Our next question comes from Matthew Boss with J P. Morgan.
Matthew Robert Boss: Great. Thanks, I appreciate all the color.
Matthew Robert Boss: So maybe two part question.
Matthew Robert Boss: Sure.
Matthew Robert Boss: Elaborate on underlying customer spending trends or or maybe when you think through the weather and visitation shifts that you cited is there any change in your view to the multiyear topline growth just based on this season or any underlying lead indicators that you're most focused on and then for Andrew.
Kirsten A. Lynch: And I would anticipate that every year as we look at capital, we'll be assessing if there are further opportunities to expand that investment where we can to get the highest efficiency and also to ensure that we can maximize the season and the resorts where it can have an impact. Very helpful. And then I want to ask about retail and rental revenues. They declined 15% in the quarter, but I think about five points of that, by my math, were driven by the exit of certain leased locations last year. Are you happy with the current footprint of 250 retail and rental locations in North America? Is that the right number going forward? Or do you think there's an opportunity to reduce that, especially with my epic year as it gets rolled out across the ecosystem?
Matthew Robert Boss: With margins this year expected about 150 basis points below 2019 are there any structural constraints that you see to recapturing. This margin shortfall next year and if you think about the core underlying growth of the business is mid single digit EBITDA dollar growth I think thats been the historical.
Matthew Robert Boss: Run rate any change to that in your view.
Speaker Change: Thanks, Matt.
Speaker Change: A lot of tax.
The first question that you outlined about underlying spending trends.
Speaker Change: At this point I'm not seeing any underlying spending trends that are concerning obviously come.
Kirsten A. Lynch: So regarding rental and retail overall, rental just to talk about that business and then forward, rental and retail rental. As we noted, we did achieve growth in our rental yields, which we're very pleased about season to date. The retail side, which I think you alluded to, was impacted by the exit of 19 rental and retail locations in Aspen and Telluride, which we deliberately chose to exit those locations to focus our resources on our core mountain resorts as strategic priorities. So that had an impact as well in Q2. And, you know, there are also some headwinds in retail that I think are not dissimilar from what's happening in the outdoor retail industry overall right now. In terms of looking forward to MyEpicGear and what that means for brick and mortar versus the business model, I think a lot of that will depend on the evolution and the success of the MyEpicGear business.
Speaker Change: The season, so when our pass sales ended in early December we had unit growth on pass sales and a very high throw flow through on price in terms of the dollar fails on pass sales, which is certainly a big indicator for us.
Speaker Change: Q2 with.
Speaker Change: 40% less snowfall and visitation impacted by that.
Speaker Change: The spend visit looking healthy and strong on ski school dining and rental I think is also a very strong indicator.
Speaker Change: I'm not seeing any indicators right now that would reflect the kind of big shift in spend what I am seeing is indicators of a shift in visitation.
Speaker Change: From the first part of the season and the into spring is what we're assuming I'm not seeing any other indicators that would reflect that are our guests are pulling back on their spending right now I'll, let Angela answer the second question about margin.
Angela Clark: Yeah, Matt on margin, we talked about going into this season that we expected our margins to kind of go back to the midpoint of our prior guidance of 31% and that was obviously impacted though by what happened this year with Q1.
Kirsten A. Lynch: One of the things that I really like about that business model is it really utilizes the existing infrastructure that we have in terms of distribution centers and warehouses and locations for the gear without the need for the guest to go into a brick and mortar location because we're essentially through the app delivering the gear they want when they want it.
Angela Clark: Outside of Q1, right. What you saw what we just talked about it in the winter we saw our margins impacted for the winter season by the conditions and the revenue impact in Q2 and that continued into season to date.
Kirsten A. Lynch: I can't say for sure how that's going to play out in terms of the need for brick and mortar locations, but it will definitely evolve, especially and we'll probably know more as we get through year one at the launch and how that business performs on a broader level at scale. So more to come on that; it's a little too early to know. Our next question comes from Matthew Boss, J.P. Morgan. Great, thanks. I appreciate all the color.
Angela Clark: So for the full year. The revised forecast is 29.6 at the midpoint I would say, though more broadly to your question really about how our ability to expand this every time, we do see our you know broadly the ability to move this over time right. We do have a high fixed cost structure, which gives us operating leverage tied to the revenue growth of the company and so we do see resort.
Angela Clark: Opportunities here for both resource efficiency beyond four right.
Matthew Robert Boss: So maybe a two-part question. Kirsten, can you elaborate on underlying customer spending trends or maybe when you think through the weather and visitation shifts that you cited, is there any change in your view to the multi-year top-line growth just based on this season or any underlying lead indicators that you're most focused on? And then for Angela, with margins this year expected about 150 basis points below 2019, are there any structural constraints?
Angela Clark: What we've talked about in terms of ways that we can expand.
Our margins over time.
Speaker Change: I'm sorry, your second part of your question was on the growth rate and we don't give the forward looking kind of growth algo in terms of.
Speaker Change: Revenue or EBITDA growth, but.
Speaker Change: But we do talk about really what those drivers are right for our business model right. We see the ability to kind of continue to grow and our advanced commitment and continue to take what you've seen us do historically, which is priced above inflation that you've also seen what we did with our price support past launch this coming year.
Kirsten A. Lynch: Capturing this margin shortfall next year, and if you think about the core underlying growth of the business, it is mid single digit EBITDA dollar growth. I think that's been the historical run rate; any change to that in your, Thanks, Matt. I'll, I'll tackle the first question that you outlined about underlying spending trends. You know, at this point, I'm not seeing any underlying spending trends that are obviously concerning come the season.
Speaker Change: The one other comment Matt just to circle back on your question is you know on guest spend is also that we are very fortunate that we have an enormous amount of loyalty among our guests based on our pass holder base and it is really incumbent on us to keep.
Kirsten A. Lynch: So when our past sales ended in early December, we had unit growth on past sales and a very high flow through on price in terms of the dollar sales on past sales, which is certainly a big indicator for us. June 2... 42% less snowfall and visitation impacted by that. Seeing the spend visit, looking healthy and strong on ski school dining and rental, I think is also a very strong indicator. I'm not seeing any indicators right now that would reflect the kind of big shift in spend. What I am seeing are indicators of a shift in visitation from the first part of the season and into spring, so that's what we're assuming. I'm not seeing any other indicators that would reflect that our guests are pulling back on their spending right now.
Speaker Change: Reinvesting into the guest experience.
In dining.
Speaker Change: My epic gear innovation like the App that keeps retains that loyalty and also retains that spend that you asked.
Speaker Change: That's great color best of luck.
Speaker Change: Our next question comes from David Katz.
David Brian Katz: At Jefferies.
David Brian Katz: Hi afternoon, everyone. Thanks for taking my questions.
David Brian Katz: Alright.
David Brian Katz: I'm curious on two things when we look at the European Mountains that we have no thinking about those in the context of what the company has done historically in terms of really adding a ton of value.
Angela Korch: I'll let Angela answer the second question about March. Yeah, Matt, on margin. We talked about going into this season that we expected our margins to kind of go back to the midpoint of our prior guidance of 31%. And that was obviously impacted, though, by what happened this year with Q1. Outside of Q1, right, what you saw, we just talked about in the winter, we saw our margins impacted for the winter season by the conditions and the revenue impact in Q2, and that continued into the season to date. So for the full year, the revised forecast is 29.6 cents at the midpoint.
David Brian Katz: To them over time in general terms are are these mountains.
Speaker Change: We think so right.
Speaker Change: And that that kind of value.
Speaker Change: Or.
Speaker Change: Or are they just sort of a different market.
Speaker Change: And I just had one quick follow up on the guide which is.
Speaker Change: Or are we is the change entirely because of weather, mostly because of weather or part whether in part visitation I'm, just trying to sort of unpack that a little bit. Thank you.
With regards to the your hi, David with regards to the European Resorts, we absolutely believe that the strategy to expand into Europe can drive value creation, and we believe that undermines a drone has unique growth potential because.
Angela Korch: I would say, though, more broadly to your question, really, about our ability to expand this over time, we do see our ability to move this over time, right? We do have a high cost structure, which gives us operating leverage tied to the revenue growth of the company. And so we do see opportunities here for both resource efficiency and for, as we've talked about, ways that we can expand our margins over time. Sorry, your second part of your question was on the growth rate, and we don't give the forward-looking kind of growth algo in terms of revenue or even growth, but we do talk about really what those drivers are, right? For our business model, right?
Speaker Change: Cause of the nature of the resort and the investments that have been made there and that we will make there and I'd say similar for Crown, Montana, which is a very well known brand and we believe with investment has the unique growth potential.
Speaker Change: Each of them individually has.
Speaker Change: Potential, but the real opportunity longer term is where we can take it from here you know similar.
Speaker Change: Similar to the approach we had in North America is there an opportunity to build.
Speaker Change: Build a network that can create further stability.
Angela Korch: We see the ability to kind of continue to grow in our advanced commitment and continue to take what you've seen us do historically, which is price above inflation that you've also seen what we did with our price for past launches this coming year. So one other comment, Matt, just to circle back on your question is, you know, on guest spend. We are very fortunate that we have an enormous amount of loyalty among our guest base and our passholder base. And it is really incumbent on us to keep reinvesting in the guest experience, in dining, My Epic Gear, innovation like the app that retains that loyalty and also retains that spend that you asked about. Our next question comes from David Katz. Afternoon, everyone.
Speaker Change: For the resorts in Europe, and even unlock greater potential there that is what we are really focused on.
Speaker Change: And David I'll hit on the second part of your question and Mike in terms of the impact right. The conditions, obviously were a big factor that we called out in the quarter. When we have snowball down 42% across our north American and Western resorts, So obviously, a big change or impact.
Speaker Change: Our visitation and so while we noted though there is also right things and one it improved and Rockies in the east we.
Speaker Change: We did see improved results as though it was slower and it didn't respond as quickly as we expected which was also a contributing factor to the reduced guidance for the full year.
Speaker Change: And we also noted just we're seeing some of this shift in behavior pattern into kind of the March and April period based on the items carcinoma and kind of earlier are.
Speaker Change: Household or data that we have in terms of their behavior or lodging indicators and obviously conditions improving.
David Brian Katz: Thanks for taking my questions. I'm curious about two things. When we look at the European mountains that we have, you know, thinking about those in the context of what the company has done historically, in terms of, you know, really adding a ton of value, you know, to them over time, in general terms, are these mountains that, you know, we think can sort of, you know, add that kind of value? Or, you know, are they just sort of a different market?
Speaker Change: Got it thank you very much.
Speaker Change: Thanks, David I think important that it is very the expectations. We have for spring are very tied to the.
Speaker Change: The information, we have about our guest behavior and.
Speaker Change: Our base of pre committed guest.
Speaker Change: Our next question comes from Patrick Scholes with Trust.
Patrick Scholes: Hi, good afternoon.
Patrick Scholes: Couple of questions here first one you somewhat alluded to.
Patrick Scholes: Right.
Patrick Scholes: How would you say your.
Destination skiers, the one that comes over Christmas and new year's.
Kirsten A. Lynch: And I just had one quick follow-up on the guide, which is, you know, are we, you know, is the change entirely because of weather, mostly because of weather, or, you know, part weather and part visitation? I'm just trying to unpack that a little bit. Thank you. With regard to Europe... Hi David. With regard to European resorts, we absolutely believe that the strategy to expand into Europe can drive value creation, and we believe that Andermont-Soudroon has unique growth potential because of the nature of the resort and the investments that have been made there and that we will make there. And I'd say similar for which is a very well-known brand.
Before them towards the destination visit or performed.
Patrick Scholes: Versus say your drive to that a bit more as expected or was that.
Speaker Change: Disappointment as well thank you.
Speaker Change: Okay.
Speaker Change: Thanks, Patrick are you know all of the all of our visitation with impacted season to date by having the snow conditions I think for the guests that did come we did see as we noted the strong spend per gas. So that would reflect if we have guests that are.
Speaker Change: Spending on ski school, and dining and rental that tends to orient more to destination visits.
Speaker Change: Which is a great sign but I'd say overall visitation was impacted across the board.
Speaker Change: By having snowfall down so substantially across the network.
Speaker Change: So.
Patrick Scholes: Fair to say that the rough expectations were for.
Patrick Scholes: For both of those were I guess equally disappointed or was.
Angela Korch: And we believe investment has unique growth potential; each of them individually has potential, but the real opportunity longer term is where we can take it from here. You know, similar to the approach we had in North America, there is an opportunity to build a network that can create further stability for the resorts in Europe and even unlock greater potential there. That is what we are really focused on. And David, I'll address the second part of your question. And in terms of the impact, right, the conditions obviously were a big factor that we called out in the quarter when we had snowfall down 42% across our North American Western resorts. That's obviously a big change that impacts our visitation.
Patrick Scholes: One.
Patrick Scholes: Any less pad.
Patrick Scholes: Or less worse than you expected.
Patrick Scholes: I would say, it's both segments were impacted due to the snow conditions and.
Patrick Scholes: <unk>.
Patrick Scholes: In terms of the year over year and versus our expectations both were impacted.
Patrick Scholes: Having a base of so many guests that are pre committed into a path certainly.
Patrick Scholes: Helped us enable us to deliver the strong.
Speaker Change: Okay, but are up.
Speaker Change: But across the board we saw impact we're not really quantifying one or the other right now and I think we'll have a much better understanding of.
Speaker Change: Of the total impact on destination versus local at the end of the season given this upcoming time period is in lease up.
Angela Korch: And so what we noted, though, there were also right things when it improved in the Rockies in the east. We did see improved results, although it was slower, right? It didn't respond as quickly as we expected, which was also a contributing factor to the reduced guidance for the full year. And we also noted just, we're seeing some of the shift in behavior pattern into kind of the March and April period, based on the items Kirsten outlined kind of earlier, our pass holder data that we have in terms of their behavior, our lodging indicators, and obviously, conditions improving. Got it. Thank you very much.
Speaker Change: Okay.
Speaker Change: My next question.
Speaker Change: Okay. My next question was on this recent.
Speaker Change: A basin sale was that something you looked at or where you're concerned about.
Speaker Change: Antitrust issues with that thank you.
Speaker Change: Yes.
Speaker Change: Thanks, Yeah, we obviously had a very long term relationship with a basin over 20 years of a partnership and saw that Altair and made the announcement of an acquisition there.
Speaker Change: Way back in the 1990 is when we acquired Keystone and Breckenridge, we actually divested of Arapahoe Basin, and then transitioned into our partnership which we have very successfully for over 20 years and it makes a lot of sense to us that altair at appears to be pursued.
Kirsten A. Lynch: Yep. Thanks, David. I think it is very important that the expectations we have for spring are very tied to the information we have about our guest behavior and our base of pre-committed guests. Our next question comes from Patrick Scholes with Truist. Hi, good afternoon.
Speaker Change: A strategy that might be more similar to our strategy of an owned and operated model.
Speaker Change: And we have a lot of respect for Arapahoe basin and hope it is very successful for them.
Speaker Change: Our next question comes from Meghan Alexander Morgan Stanley.
Speaker Change: Yeah.
Megan Christine Alexander: Hi, we stopped on for Megan Thanks for taking our question. We wanted to start by asking a follow up to some of <unk>.
Patrick Scholes: A couple of questions here. The first one you somewhat alluded to, but here, how would you say your, A destination skier, you know, the one that comes over Christmas and New Year's performed or the destination visitor performed versus your drive to, you know, was that a bit more as expected or was that a. Disappointment as well?
Megan Christine Alexander: The earlier questions on visitation.
Megan Christine Alexander: It's encouraging that you've already seen an improvement quarter to date based on your commentary, but it also seems like you are expecting further improvement here in March and then if you roll. So we were hoping.
Kirsten A. Lynch: Thank you. Thanks, Patrick. Our, you know, all of our visitation was impacted season to date by the snow conditions. I think, for the guests that did come, we did see, as we noted, the strong spend per guest. So that would reflect if we have guests that are spending on ski school, dining, and rental equipment that tends to orient more to destination visits, which is a great sign. But I'd say overall visitation was impacted across the board because snowfall was down so substantially across the network. Okay, so fair to say that the rough expectations for both of those were, I guess, equally disappointing or was, you know, one, any less bad or less worse than you expected.
Megan: That you could maybe quantify kind of what is embedded as it relates to visitation.
Megan: And the updated guide for three Q.
Megan: And are you expecting.
Megan: Similar improvement that you saw in February or perhaps more given the spring break and early Easter dynamics.
Speaker Change: Hi, Thanks for the question Yeah, what we've said about our rest of year guidance right as we've been looking at kind of as the trends have progressed to the season to date period and then we're looking at our guest behavior to say why do we think that that implies that we have a significant base of pre committed.
Kirsten A. Lynch: I would say both segments were impacted due to the snow conditions and the, In terms of the year over year and versus our expectations, both were impacted. Having a base of so many guests that are pre-committed into a past certainly helps enable us to deliver the strong, Okay. Okay. Okay. But across the board, we saw impacts. We're not really quantifying one or the other right now.
Speaker Change: Yes.
Speaker Change: Understand their behavior and so we are assuming that that will have a shift in visitation patterns in the March and April.
Speaker Change: From both Dod and also just right what we mentioned before in terms of conditions and margin bookings.
Speaker Change: And that is in the visitation rest of your assumptions, obviously that translates into revenue.
Speaker Change: <unk> for the rest of the year as well.
Speaker Change: Another way to think about it is the expectation that those that our guests in spring given the conditions are in a much better place would return to more typical historical behavior.
Patrick Scholes: And I think we'll have a much better understanding of the total impact on destination versus local at the end of the season, given this upcoming time period is a release of, Okay, then my next question. Okay, my next question is on this recent base and sale. Was that something you looked at? Or were you concerned about?
Speaker Change: Okay, great. Thank you so much and understand that you arent going to guide for 2025 at this point, but one of the questions we're getting.
Speaker Change: Is how to think about how much it's a reduction in the guide is related to abnormal weather no dust.
Kirsten A. Lynch: antitrust issues with that. Thank you. Thank you. Yeah, we obviously had a very long-term relationship with A-Basin, over 20 years as a partnership, and saw that Altera made the announcement of an acquisition there. Way back in the 1990s, when we acquired Keystone and Breckenridge, we actually divested of Arapahoe Basin and then transitioned into a partnership, which we had very successfully for over 20 years.
Speaker Change: So you could get back next year. So it would be possible to maybe just quantify how much the <unk> underperformance that's related to weather.
Speaker Change: I think on a full year fiscal year basis, we'll be able to provide more contacts when we get through the season as we're heading into next fiscal year because.
So much of this.
Speaker Change: This is seeing what their behavior changes are as we go through and Theres still a substantial part of the season left for us.
Kirsten A. Lynch: And it makes a lot of sense to us that Altera appears to be pursuing a strategy that might be more similar to our strategy of an owned and operated model. And we have a lot of respect for Arapahoe Basin and hope it is very successful for them. Our next question comes from Megan Alexander, Morgan Stanley. Hi, this is Louise Doss on behalf of Megan.
Speaker Change: You can expect that we'll provide more deep.
Speaker Change: Details and commentary on that later in our fiscal year.
Speaker Change: Our next question comes from Chris <unk> Deutsche Bank.
Chris: Hey, good afternoon, everyone. Thanks for taking my question.
Chris: Want to ask him a little bit about the ancillary right and maybe we could drill down and just trying to get a sense for it.
Megan Christine Alexander: Thanks for taking our question. We wanted to start by asking a follow-up to some of the earlier questions on visitation. It's encouraging that you've already seen an improvement quarter to date based on your commentary, but it also seems like you are expecting further improvement here in March and then April. So we were hoping that you could maybe quantify some of what is embedded as it relates to visitation and the updated guide for 3Q. And what are you expecting?
Chris: Some of the growth items that held up a lot better than your skier visits can you maybe give us a sense for what's pricing versus what's transactional any kind of way to.
Chris: Slice and dice.
Chris: The way people are using ancillary versus how much of it is coming from price.
Speaker Change: Yeah, I'll, let Angela weigh in with her perspective, and additional thoughts on this as well, but I think the easiest way to think about it is a combination vary based on the line of business on capture.
Angela Korch: Similar improvement that you saw in February or perhaps more given the spring break and early Easter dynamic. Hi, thanks for the question. Yeah, what we've said about your rest of your guidance, right, is we've been looking at kind of as the trends have progressed to the season to date period, and then we're looking at our guest behavior to say, what do we think that that implies, and we have a significant base of pre-committed guests that we understand their behavior. And so we are assuming that we'll have a shift in visitation patterns in March and April, from both that and also just right as we mentioned before in terms of conditions and lodging booking. And that is in the visitation, the rest of your assumptions, obviously that translates into revenue, and guidance for the rest of the year as well. Another way to think about it is the expectation that those that our guests, in spring, given that the conditions are in a much better place, would return to more typical historical behavior. Okay, great.
Angela Clark: The what we what the capture of our guests was the spend per guest or per visit and also the pricing increase that was taken on each line of business.
Angela Clark: And it varies by business, but generally a combination of those factors. Angela did you have any other comments that you wanted to make on it.
Angela Clark: Yeah, just building on that and of course, when we look we do look and see across all of our lines of business that we generally take price spot inflation. There. So there is a pricing component that you will see and we do that dynamically depending on where we're seeing also.
Angela Clark: Peak demand periods or by line of business and this year in particular, we talked about some of our specific initiatives around F&B in particular are returning.
Angela Clark: Getting capture back and really how to awareness campaigns and other initiatives to drive F&B and then you saw on ski school right up five 5% on revenue growth, which.
Angela Korch: Thank you so much and understand that you aren't going to guide for 2025 at this point, but one of the questions we're getting is how to think about how much of the reduction in the guide is, Unknown Attendee, Angela Korch, Charles Scholes, Xian Sam, Megan Alexander, Vail Resorts Inc I think on a full year fiscal year basis, we'll be able to provide more context when we get through the season if we're heading into next fiscal year because, So much of this is seeing what the behavior changes are as we go through, and there's still a substantial part of the season left for us. So you can expect that we'll provide more details and commentary on that later in our fiscal year. Our next question comes from Chris Woronka, Deutsche Bank. Hey, good afternoon, everyone.
Angela Clark: What was obviously much higher than the visitation trend, which shows that we continue to have success driving both.
Angela Clark: And capture cross that line of business as well.
Speaker Change: Okay I appreciate that and the second follow up question is really related to lodging and I know you've called out having fewer units to rent through the rental program can you can you talk tell us is that more of a structural issues that come from that.
Speaker Change: Going forward or is that just going to vary year to year in terms of how many you have available.
Speaker Change: Yeah that does just that does vary from year to year. It can depend on a lot of things both in terms of which properties. We have in our property management tools also can depend on owners.
Chris Jon Woronka: Thanks for taking our questions. I wanted to ask a little bit about the ancillary, right? And maybe we could drill down and just kind of get a sense for, you know, some of the growth items that held up a lot better than your skier visits. Can you maybe give us a sense for what's pricing versus what's transactional? Any kind of way to, you know, slice and dice the way people are using ancillary versus how much of it's coming from price? Thanks.
Speaker Change: Desire to take units on and off the market, depending kind of on their own needs. So that will just vary based.
Speaker Change: Based on trends each year that were saying.
Speaker Change: Yeah.
Speaker Change: Our next question comes from Brent Montara Barclays.
Brandt Antoine Montour: Good evening, everybody. Thanks for taking my question.
Brandt Antoine Montour: So during Covid you guys cut the price of the past meaningfully right and units grew 50%.
Kirsten A. Lynch: Yeah, I'll let Angela weigh in with her perspective and additional thoughts on this as well, but I think the easiest way to think about it is a combination very based on the line of business on capture what we think the capture of our guests was spent per guest or per visit and also the pricing increase that was taken on each line of business. And it varies by business, but it is generally a combination of those factors. Angela, did you have any other comments that you wanted to make on that?
And now it seems like Youre seeing some folks not use the pass to some certain extent.
Brandt Antoine Montour: And I guess the question is are you concerned at all over elevated churn from either pricing elasticity with the price hike or from people going back to work and not having as many days to travel.
Angela Korch: Yeah, just building on that. And of course, we look, we do look, and see across all of our lines of business that we generally take prices above inflation there. So there is a pricing component that you'll see, and we do that dynamically, depending on where we're seeing peak demand periods or by line of business. And, you know, this year, in particular, we talked about some of our specific initiatives around F&B, in particular, returning, you know, getting capture back and really how to do awareness campaigns and other initiatives to drive F&B.
Brandt Antoine Montour: Post this revenge travel sort of normalization phase that we're all going through.
Speaker Change: What are your thoughts on that.
Speaker Change: That's correct, Brent we took a 20% price resets.
Speaker Change: In FY 'twenty two based on price elasticity data in our goal to move a much greater percentage of our visits committed in advance for this exact reason that.
Speaker Change: Trying to create stability because of the weather variability that impacts the ski industry and we were quite successful in doing that then took another then took 7% in group houses again.
Kirsten A. Lynch: And then you saw on Ski School, right, the 5.5% increase in revenue growth, which was obviously much higher than the visitation trend, which shows that we continue to have success driving both volume and capture across that line of business as well. Okay, I appreciate that. And the second follow-up question is really related to lodging. And I know you've called out having fewer units to rent through the rental program. Can you tell us if that is more of a structural issue?
Speaker Change: 8% in group houses again last year.
Speaker Change: Utilization, whether that's frequency or the timing of when I guess uses their path.
Speaker Change: Varies you know every year, we have a lot of data and information on it and we have a lot of data on how that's predictive to their renewal rate and even with the weather variability that we've had as you might recall from December when we finished our pass sales.
Kirsten A. Lynch: Is that something that, you know, I'm going forward with, or is that just going to vary your tier in terms of how many you have available? Yeah, that just does vary from year to year, it can depend on a lot of things, both in terms of which properties we have in our property management pools and also can depend on, you know, owners' desire to take units on and off the market depending kind of on their own needs. So that will just vary based on the trends that we're seeing each year. Our next question comes from Brandt Montour of Barclays. Good evening, everybody.
Speaker Change: Our renewal was a huge driver of the growth, which is the loyalty to our pass program. So as we think about this year. This year and their utilization is greatly impacted by you know I don't think I can emphasize enough snowfall being down 42% is a.
Speaker Change: Significant impact on the ski industry.
Speaker Change: And so the really the belief is that our pass holders based on their historical behavior should return to a normal typical utilization and then the price increase that we're taking for next year.
Brandt Antoine Montour: Thanks for taking my question. So, during COVID, you know, you guys cut the price of the pass meaningfully, right, and units grew 50%. And now it seems like you're seeing some folks not use the pass to some extent. And I guess the question is, are you concerned at all about elevated churn from either pricing elasticity with the price hike or from people going, you know, back to work and not having as many days to travel post this revenge travel sort of normalization phase that we're all going through? What are your thoughts on that?
Speaker Change: Is based on the data that we have about our price elasticity and what we believe.
Speaker Change: Is the right approach to our pricing going forward and just as a reminder, when we took the price reset we did say and we have consistently executed on our arms that we believed that there were still were still price increases we could take from the reset and we've consistently deliver.
Kirsten A. Lynch: That's correct, Brandt. We took a 20% price reset in FY22 based on price elasticity data and the goal to move a much greater percentage of our visits committed in advance for this exact reason of trying to create stability because of the weather variability that impacts the ski industry, and we were quite successful in doing that. Then we took 7% and grew passes again, 8% and grew passes again last year. Pass utilization, whether that's frequency or the timing of when a guest uses their pass, varies, you know, every year. We have a lot of data and information on it, and we have a lot of data on how that's predictive to their renewal rate. And even with the weather variability that we've had, as you might recall from December when we finished our path sales. Our renewal was a huge driver of growth, which is loyalty to our past program.
Speaker Change: Word on that.
Speaker Change: Okay. That's super helpful. And then a follow up sort of a different question.
Speaker Change: Same question different flavor.
Speaker Change: Uh huh.
Speaker Change: You guys have a lot of data right and then you had passed.
Speaker Change: 12, or 14 years.
Speaker Change: And so can.
Speaker Change: Can you look back at times, when you had two years in a row of poor weather or even one year I mean last year. We had you had poor weather and you had great pass sales for next year and I'm curious, if there's any correlation either positive or negative.
Speaker Change: Of how pass sales.
Speaker Change: Go for a year following a year with bad weather, you're much more likely to see elevated churn or are you more likely to see pent up demand.
Kirsten A. Lynch: So as we think about this year, this year, and their utilization is greatly impacted by, you know, I don't think I can emphasize enough how snowfall being down 42% is a significant impact on the ski industry. And, So, the really belief is that our pass holders, based on their historical behavior, should return to a normal, typical utilization, and then the price increase that we're taking for next year is based on the data that we And just as a reminder, when we took the price reset, we did say, and we have consistently executed on that we believed that there were still price increases we could take from the reset. And we've consistently delivered on that. OK, that's that's super helpful.
Speaker Change: Yeah.
Speaker Change: Yes, you're absolutely right grant, we have a lot of past data and really years and years and years of data, even even understanding when someone doesn't use their past a single day, what their renewal rate looks like and so we can.
Speaker Change: Yet highly predictive been pretty accurate in terms of past renewal going into the following season, because we have so much data on that and we of course being in the ski business a pad.
Speaker Change: Many years, where we've had weather challenges and disruption so that we can see that that is.
Speaker Change: That.
Speaker Change: The data will be factored into the forecast that we have for our pass sales going into FY 'twenty five and the data about what we expect in spring of this year and utilization by our pass holders based on their historical behavior is factored into the guidance that we just published as well.
Kirsten A. Lynch: And then a follow up sort of a different question, the same question, different flavor. Then you guys have a lot of data, right? And you have past data for 12 or 14 years. And so you know, can you look back at times when you had two years in a row of poor weather, or even one year. I mean, last year, we had poor weather, and you had great past sales the next year. And I'm curious if there's any correlation, either positive or negative, of how past sales go for a year following a year with bad weather. Are you more likely to see elevated churn? Or are you more likely to see pent-up demand?
Speaker Change: This concludes the Q&A portion of today's call I would now like to turn the call back over to Kirsten Lynch for closing remarks.
Kirsten A. Lynch: Thank you operator. This concludes our fiscal 2024 second quarter earnings call. Thanks to everyone, who joined US today. Please feel free to contact me or Angela directly should you have any further questions. Thank you for your time this afternoon.
Kirsten A. Lynch: Goodbye.
Kirsten A. Lynch: Yes, you're absolutely right, Grant. We have a lot of past data and really years and years and years of data, even understanding when someone doesn't use their pass a single day, and what their renewal rate looks like. And so we can get highly predictive and pretty accurate in terms of past renewal going into the following season because we have so much data on that. And we, of course, being in the ski business, have had many years where we've had weather challenges and disruptions so we can see that that data will be factored into the forecast that we have for our pass sales going into FY 25.
Kirsten A. Lynch: This concludes today's Vail resorts fiscal second quarter 2024 earnings call and webcast. You may disconnect. Your lines at this time and have a wonderful day.
Kirsten A. Lynch: Yeah.
Kirsten A. Lynch: Hum.
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Kirsten A. Lynch: Mhm.
Kirsten A. Lynch: [music].
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Kirsten A. Lynch: And the data about what we expect in spring of this year and utilization by our pass holders based on their historical behavior is factored into the guidance that we just published as well. This concludes the Q&A portion of today's call. I would now like to turn the call back over to Kirsten Lynch for closing remarks. Thank you, operators. This concludes our fiscal 2024 second quarter earnings call. Thanks to everyone who joined us today. Please feel free to contact me or Angela directly should you have any further questions. Thank you for your time this afternoon. Goodbye. This concludes today's Vail Resorts fiscal second quarter 2024 earnings call and webcast. You may disconnect your line at this time and have a wonderful day, www.globalonenessproject.org www.thevenusproject.com www.globalonenessproject.org http://www.meadowbrowsers.com ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ??
Kirsten A. Lynch: Okay.
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