Q1 2025 Vail Resorts Inc Earnings Call

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Operator: 🎵🎵🎵 Please stand by, we're about to begin.

Please standby we're about to begin.

Speaker Change: Good afternoon, ladies and gentlemen, welcome to the Vail resorts fiscal first quarter 2025 earnings Conference 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.

Operator: Good afternoon, ladies and gentlemen. Welcome to the Vail Resorts Fiscal First Quarter 2025 Earnings Conference 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 1 on your telephone keypad. If you need to remove yourself from the queue, press star 2. 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 should need operator assistance during the call, please press star 0.

Speaker Change: Press Star one on your telephone keypad, if you need to remove yourself from the queue Press star two 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 should need operator assistance during the call. Please press Star Zero I will now turn the call over to Kirsten Lynch Chief.

Kirsten Lynch: I will now turn the call over to Kirsten Lynch, Chief Executive Officer of Vail Resorts.

Speaker Change: Xactly officer of Vail resorts Mr. Lynch. Please go ahead.

Kirsten Lynch: Ms. Lynch, please go ahead. Thank you. Good afternoon, everyone. Welcome to our Fiscal 2025 First Quarter Earnings Conference Call. Joining me on the call this afternoon is Angela Korch, our Chief Financial Officer.

Kirsten Lynch: Thank you good afternoon, everyone welcome to our fiscal 2025 first quarter earnings Conference call. Joining me on the call. This afternoon is Angela courtyard, 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.

Kirsten Lynch: 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 filings, and actual future results may vary materially. Forward-looking statements in our press release issued this afternoon, along with our remarks on this call, are made as of today, December 9, 2024, and we undertake no duty to update them as actual events unfold. Today's remarks also include certain non-GAAP financial measures.

Kirsten Lynch: As described in our SEC filings and actual future results may vary materially forward looking statements in our press release issued this afternoon, along with our remarks on this call are made as of today December nine 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 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.

Kirsten Lynch: Reconciliations of these measures are provided in the tables included with our press release, which 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.vailresorts.com.

Kirsten Lynch: Com.

Kirsten Lynch: With that said, let's turn to our fiscal 2025 first quarter results. Resort reported EBITDA was consistent with the prior year driven by growth in our North American summer business from increased activity spending and lodging results. This growth was offset by a decline and resort reported EBITDA of $9 million compared to the prior year from our Australian resort.

Kirsten Lynch: With that said, let's turn to our fiscal 2025 first quarter results.

Kirsten Lynch: Resort reported EBITDA was consistent with the prior year driven by growth in our North American summer business from increased activities spending and watching results.

Kirsten Lynch: This growth was offset by a decline in resort reported EBITDA of $9 million compared to the prior year from our Australian resorts.

Kirsten Lynch: due to record low snowfall and lower demand, cost inflation, the inclusion of Crown Montana and approximately two point seven million dollars of one time costs related to the two year resource efficiency transformation plan and zero point nine million dollars of acquisition and integration related expenses. Moving on to our Resource Efficiency Transformation Plan, regarding the company's two-year Resource Transformation Plan, which was announced last quarter, Vail Resorts continues to make progress against the plan. The two-year Resource Efficiency Transformation Plan is designed to improve organizational effectiveness and scale for operating leverage as the company grows globally. Through scaled operations, global shared services, and expanded workforce management, the company expects $100 million in annualized cost efficiencies by the end of its 2026 fiscal year.

Due to record low snowfall and lower demand.

Kirsten Lynch: Cost inflation and the inclusion of Crown, Montana, and approximately $2 $7 million of one time costs related to the two year resource efficiency transformation plan and zero point $9 billion of acquisition and integration related expenses.

Kirsten Lynch: Moving onto our resource efficiency transformation plan regarding the company's two your resource transformation plan, which was announced last quarter Vail resorts continues to make progress against the plan. The two year resource efficiency transformation plan is designed to improve organizational effectiveness and scale for.

Kirsten Lynch: Leverage as the company grows globally.

Kirsten Lynch: Drew scaled operations global shared services and expanded workforce management, the company expects $100 million in annualized cost efficiencies by the end of its 2026 fiscal year.

Kirsten Lynch: We will provide updates as significant milestones are achieved.

Kirsten Lynch: We will provide updates as significant milestones are achieved.

Kirsten Lynch: Turning now to our 2024-2025 North American Season Pass Sales and Early Season Indicators. Our season pass sales highlight the compelling value proposition of our past products and our commitment to continually investing in the guest experience at our resorts. Over the last four years, past product sales for the 2024-2025 North American Ski Season have grown 59% in units and 47% in sales dollars. For the upcoming 2024-2025 North American Ski Season, past product sales through December 3rd, 2024, decreased approximately 2% in units and increased approximately 4% in sales dollars as compared to the period in the prior year through December 4th, 2023.

Kirsten Lynch: Turning now to our 'twenty 'twenty four 'twenty 'twenty five north American he's has sales and early season indicators.

Kirsten Lynch: Our season pass sales highlight the compelling value proposition of our past products and our commitment to continually investing in the guest experience at our resorts.

Kirsten Lynch: Over the last four years as product sales for the 'twenty 'twenty four 'twenty 'twenty five North American ski season have grown 59% in units and 47% in sales dollars for the upcoming 'twenty 'twenty four 'twenty 'twenty five North American ski season pass product sales through December 3rd 22.

Kirsten Lynch: Four decreased approximately 2% in units and increased approximately 4% in sales dollars as compared to the prior period in the prior year through December 4th 2023.

Kirsten Lynch: This year's results benefited from an 8% price increase, partially offset by unit growth, among lower-priced Epic Daypass products. Past product sales are adjusted to eliminate the impact of changes in foreign currency exchange rates by applying an exchange rate of 0.71 cents between the Canadian dollar and the U.S. dollar in both periods for Whistler Blackcomb past sales. For the period between September 21st, 2024 and December 3rd, 2024, past product sales trends improved relative to the past product sales through September 20th, 2024, with unit growth of approximately 1% and sales dollar growth of approximately 7% as compared to the period in the prior year from September 23rd, 2023 through December 4th, 2023.

Kirsten Lynch: This year's results benefited from an 8% price increase partially offset by unit growth among lower priced epic day pass products.

Past product sales are adjusted to eliminate the impact of changes in foreign currency exchange rates by applying an exchange rate of 0.71 sense between the Canadian dollar and the U S. Dollar in both periods for Whistler Blackcomb pass sales.

Kirsten Lynch: For the period between September 21st 2024, and December 3rd 2024 past product sales trends improved relative to the past product sales through September 20th 'twenty 'twenty four with unit growth of approximately 1% and sales dollar growth of approximately.

Kirsten Lynch: 7% as compared to the period in the prior year from September 23rd 2023 through December 4th 2023, due to the expected renewal strengths, which we believe reflects delayed decision making.

Kirsten Lynch: Due to the expected renewal strength, which we believe reflects delayed decision making. Our North American past sales highlight strong loyalty. with growth among renewing pass holders across all geography. For the full-selling season, the company acquired a substantial number of new passholders. However, the absolute number of new guests was smaller compared to the prior year, driven by the overall unit, driving the overall unit decline for the full season. New passholders come from lapse guests, prior-year lift ticket guests, and new guests to our database. The company achieved growth from lapse guests who previously purchased a pass or a lift ticket but did not buy a pass or lift ticket in the previous season.

Kirsten Lynch: Our North American pass sales highlight strong loyalty.

Kirsten Lynch: With growth among renewing pass holders across all geographies.

For the full selling season, the company acquired a substantial number of new pass holders. However, the absolute number of new gas was smaller compared to the prior year driven by the overall unit driving the overall unit decline for the fall season nukes.

Kirsten Lynch: New pass holders come from lapsed guests prior year lift ticket guests and new guests to our database. The company achieved gross from lapsed guests, who previously purchased a pass or a lift ticket, but did not buy a pass or lift ticket in the previous season.

Kirsten Lynch: The decline in new passholders compared to the prior year was driven by fewer guests who purchased lift tickets in the past season and from guests who are completely new to our database, which we believe was impacted by last season's challenging weather and industry normalization. Epic Day Pass products achieve unit growth driven by the strength and renewing pass holders.

The decline in new pass holders compared to the prior year was driven by fewer guests who purchase let's take hits in the past season and from guests who are completely new to our database, which we believe was impacted by last season's challenging weather in industry normalization.

Kirsten Lynch: Good day pass products achieve unit growth driven by strength in renewing pass holders.

Kirsten Lynch: We expect to have approximately 2.3 million guests committed to our 42 North American, Australian, and European resorts in advance of the season in non-refundable advanced commitment products this year, which are expected to generate over $975 million of revenue and account for approximately 75% of all skier visits, excluding complimentary visits.

Kirsten Lynch: We expect to have approximately 2.3 million gas committed to our 42, North American Australian and European resorts in advance of the season in Nonrefundable advanced commitment products. This year, which are expected to generate over $975 million of revenue.

Kirsten Lynch: And account for approximately 75% of all skier visit excluding complimentary visits.

Now turning to our early season indicators.

Kirsten Lynch: Now turning to our early season indicators. Heading into the 2024-2025 ski season, we are encouraged by our strong base of committed guests, providing meaningful stability for our company. Additionally, early season conditions have allowed us to open some resorts earlier than anticipated, including Whistler Blackcomb, Heavenly, Northstar, Kirkwood, and Stevens Pass. Early season conditions have also enabled our Rockies Resort. to open with significantly improved terrain relative to the prior year, including the opening of the legendary Back Bowls at Vail Mountain, opening the earliest since 2018. Our resorts in the east are experiencing typical seasonal variability for this point in the year, with all resorts planned to open ahead of the holiday.

Kirsten Lynch: Heading into the 'twenty 'twenty four 'twenty twenty-five ski season, we are encouraged by our strong base of committed guests providing meaningful stability for our company.

Kirsten Lynch: Additionally, early season conditions have allowed us to open some resorts earlier than anticipated, including Whistler, Blackcomb Heavenly Northstar Kirkwood and Stevens pass.

Kirsten Lynch: Early season conditions have also enabled Iraq Rockies resorts.

The open with significantly improved terrain relative to the prior year, including the opening of the legendary back bowls at Vail Mountain opening the earliest since 2018.

Kirsten Lynch: Our resorts in the east are experiencing typical seasonal variability for this point in the year with all resorts planned to open ahead of the holidays.

Kirsten Lynch: We are continuing to hire for the winter season and are on track with our staffing plans and have achieved a strong return rate of our frontline employees from the prior season.

Kirsten Lynch: We are continuing to hire for the winter season and are on track with our on track with our staffing plans and have cheap achieved a strong return rate of our frontline employees from the prior season.

Kirsten Lynch: Lodging bookings at our U.S. resorts for the upcoming season are consistent with last year.

Kirsten Lynch: Lodging bookings at our U S resorts for the upcoming season are consistent with last year at Whistler Blackcomb lodging bookings for the full season are lagging prior year levels, which may reflect delayed decision, making following challenging conditions in the prior year.

Kirsten Lynch: At Whistler Blackcomb, lodging bookings for the full season are lagging prior year levels, which may reflect delayed decision making following challenging conditions in the prior year.

Now I would like to turn the call over to Angela to further discuss our financial results and fiscal 2025 outlook.

Angela Korch: Now I would like to turn the call over to Angela to further discuss our financial results and fiscal 2025 outlook. Thanks, Kirsten, and good afternoon, everyone. As Kirsten mentioned, this quarter's results were driven by growth in our North American summer business, offset by lower results from our Australian resorts, cost inflation, the inclusion of Crown Montana, the one-time costs related to the two-year Resource Transformation Plan, and acquisition-related, integration-related expenses. Net loss attributable to Vail Resorts was $172.8 million for the first quarter of fiscal 2025 compared to a net loss attributable to Vail Resorts of $175.5 million in the same period in the prior year.

Angela Courtyard: Thanks, Kristen and good afternoon, everyone. As Kirsten mentioned this quarters results were driven by growth in our North American summer business offset by lower results from our Australian resorts cost inflation, the inclusion of Crown Montana. The one time costs related to the two year resource transformation plan.

Angela Courtyard: And acquisition related integrated integration related expenses.

Angela Courtyard: Net loss attributable to Vail resorts was $172 $8 million for the first quarter of fiscal 2025 compared to a net loss attributable to Vail resorts of $175 $5 million in the same period in the prior year.

Angela Korch: Resort reported EBITDA loss was $139.7 million for the first quarter of fiscal 2025, which included $2.7 million of one-time costs related to the previously announced two-year Resource Transformation Plan and $0.9 million of acquisition-related in integration-related expenses, compared to a resort-reported EBITDA loss of $139.8 million for the first quarter of fiscal 2024, which included $1.8 million of the acquisition and integration-related expenses.

Angela Courtyard: Resort reported EBITDA loss was $139 $7 million for the first quarter of fiscal 2025.

Included $2 $7 million of one time costs related to the previously announced two your resource transformation plan and zero point $9 million of acquisition related.

Angela Courtyard: And integration related expenses compared to a resort reported EBITDA loss of $139 $8 million for the first quarter of fiscal 2024, which included $1 8 million of acquisition and integration related expenses.

Angela Korch: As of October 31st, 2024, the company's total liquidity as measured by total cash plus revolver availability was approximately $1 billion. This includes $404 million of cash on hand, $620 million of total combined revolver availability. And as of October 31st, 2024, the company's net debt was 2.8 times its trailing 12 months total reported EBITDA.

Angela Courtyard: As of October 31, 2024, the company's total liquidity as measured by total cash plus revolver availability was approximately $1 billion.

Angela Courtyard: This includes $404 million of cash on hand, $620 million of total combined revolver availability.

Angela Courtyard: As of October 31, 2024, the company's net debt was two eight times, it's trailing 12 months total reported EBITDA.

Angela Korch: Regarding the return of capital to shareholders, the company declared a quarterly cash dividend of $2.22 per share of Vail Resorts Common Stock, payable on January 9, 2025, to shareholders a record as of December 26, 2024. In addition, the company repurchased approximately 115,000 shares during the quarter at an average price of approximately $174 for a total of $20 million. The company has 1.6 million shares remaining under its authorization for share repurchases. We will continue to be disciplined stewards of our shareholder's capital, prioritizing investments in our guest and employee experience, high return capital projects, strategic acquisition opportunities and returning capital to our shareholders.

Angela Courtyard: Regarding the return of capital to shareholders. The company declared a quarterly cash dividend of $2 22 per share of Vail resorts common stock payable on January 19, 2025 to shareholders of record as of December 26, 2024.

In addition, the company repurchased approximately 115000 shares during the quarter at an average price of approximately $174 for a total of $20 million.

Angela Courtyard: The company has one 6 million shares remaining under its authorization for share repurchases we.

Angela Courtyard: We will continue to be disciplined stewards of our shareholders' capital prioritizing investments in our guest and employee experience high return capital projects strategic acquisition opportunities and returning capital to our shareholders.

Angela Korch: The company is a strong balance sheet and remains focused on returning capital to shareholders while always prioritizing the long-term value of our shares.

Angela Courtyard: The company has a strong balance sheet and remains focused on returning capital to shareholders will always prioritizing long term value of our shares.

Angela Courtyard: Now turning to our outlook for 2020 five.

Angela Korch: Now turning to our outlook for 2025. The company's resort-reported EBITDA guidance for the year, ending July 31, 2025, is unchanged from the prior guidance provided on September 26, 2024. The company is updating its guidance for net income attributable to Vail Resorts, which it now expects to be between $240 million and $316 million, up from the prior guidance range of $224 million to $300 million. The primary difference is due to a $17 million increase from the gain on sale of real property related to the resolution of the October 2023 Yuca County District Court Final Ruling and Valuation regarding the Town of Vail's condemnation of the company's East Vail property that was planned for Vail Resorts' Incremental Affordable Workforce Housing Project, a transaction that has been recorded as real estate reported EBITDA.

Angela Courtyard: The company's resort reported EBITDA guidance for the year ending July 31, 2025 is unchanged from the prior guidance provided on September 26 2024.

Angela Courtyard: The company is updating its guidance for net income attributable to Vail resorts, which are now expected to be between $240 million and $316 million up from our prior guidance range of $224 million to $300 million.

Angela Courtyard: The primary difference is due to a $17 million increase from the gain on sale of real property related to the resolution of the October 2023, Yoga County District Court final ruling and valuation regarding the town avails condemnation of the company's <unk> property that was planned for Vail resorts incremental.

Angela Courtyard: Portable workforce housing project.

Angela Courtyard: Transaction has been recorded as real estate reported EBITDA.

Angela Korch: Additionally, the guidance is updated to include a decrease in expected interest expense of approximately $2 million, which assumes that interest rates remain at current levels for the remainder of fiscal 2025. These changes have no impact on expected resort reported EBITDA. The company continues to expect Resort Reported EBITDA for fiscal 2025 to be between $838 million and $894 million, including approximately $27 million of cost efficiencies and an estimated $15 million in one-time costs related to the Multi-Year Resource Efficiency Transformation Plan, and an estimated $1 million of acquisition and integration-related expenses specific to Crown Montana. As compared to fiscal 2024, the fiscal 2025 guidance includes the assumed benefit from a return to normal weather conditions after the challenging conditions in fiscal 2024, more than offset by a return to normal operating costs and the impact of continued industry normalization impacting demand.

Angela Courtyard: Additionally, the guidance was updated to include a decrease in expected interest expense of approximately $2 million.

Angela Courtyard: Which assumes that interest rates remain at current levels for the remainder of fiscal 2025.

Angela Courtyard: These changes have no impact unexpected resort reported EBITDA.

The company continues to expect resort reported EBITDA for fiscal 'twenty of 25 to be between $838 million and $894 million.

Angela Courtyard: Including approximately $27 million of cost efficiencies and an estimated $15 million and onetime costs related to the multiyear resource efficiency transformation plan.

Angela Courtyard: And an estimated $1 million of acquisition and integration related expenses specific to Crown Montana.

Angela Courtyard: As comparative fiscal 'twenty 'twenty for the fiscal 2025 guidance includes the assumed benefit from a return to normal weather conditions. After the challenging conditions in fiscal 'twenty to 'twenty four more than offset by a return to normal operating costs and the impact of continued industry normalization impacting demand.

Angela Korch: Additionally, the guidance reflects the negative impact from the record low snowfall and related shortened season in Australia in the first fiscal quarter of 2025, which negatively impacted demand and resulted in a $9 million decline of resort-reported EBITDA compared to the prior year period. After considering these items, we expect Resort Reported EBITDA to grow from price increases in ancillary spending, the Resource Efficiency Transformation Plan, and the addition of Crown Montana for the full year. The guidance also assumes a continuation of the current economic environment, normal weather conditions for the 2024-2025 North American and European ski season, and the 2025 Australian ski season, and the foreign currency exchange rates as of our original fiscal 2025 guidance issued September 26, 2024.

Angela Courtyard: Additionally, the guidance reflects the negative impact from the record low snowfall unrelated shortened season in Australia in the first fiscal quarter of 2025, which negatively impacted demand and resulted in a $9 million decline of resort reported EBITDA compared to the prior year period.

Angela Courtyard: After considering these items, we expect resort reported EBITDA to grow from price increases and ancillary spending the resource efficiency transformation plan and the addition of crime Montana for the full year.

Angela Courtyard: The guidance also assumes a continuation of the current economic environment normal weather conditions for the 'twenty 'twenty, four 2025, North American and European ski season, and a 2025 Australian ski season, and the foreign currency.

Angela Courtyard: Currency exchange rates as of our original fiscal 2025 guidance issued September 26 2024.

Angela Korch: Foreign currency exchange rates have experienced recent volatility. Relative to the current guidance, if the currency exchange rates as of yesterday, December 8, 2024, a $0.71 between the Canadian dollar and U.S. dollar, $0.64 between the Australian dollar and U.S. dollar, and $1.14 between the Swiss franc and the U.S. dollar were to remain at those levels for the remainder of the fiscal year, the company expects this would have an impact on fiscal 2025 guidance of approximately negative $5 million for a resort, reported EBITDA.

Angela Courtyard: Foreign currency exchange rates have experienced recent volatility relative to the current guidance if the currency exchange rates as of yesterday December eight 2024.

71 sense between the Canadian dollar and U S. Dollar 64 cents between the Australian dollar and U S dollar and $1.14 between the Swiss franc and the U S. Dollar were to remain at those levels for the remainder of the fiscal year. The company expects. This would have an impact on fiscal 2025 guidance of approximately negative five.

Angela Courtyard: <unk> million dollars for our resort reported EBITDA.

Kirsten Lynch: Now I'll turn the call back over to Kirsten.

Kirsten Lynch: Now I'll turn the call back over to Kirsten.

Kirsten Lynch: Thank you Angela Vail resorts is committed to enhancing the guest experience and supporting the company's growth strategies through significant capital investments for calendar year 2025, the company plans to invest approximately $198 million to $203 million in core capital.

Kirsten Lynch: Thank you, Angela. Vail Resorts is committed to enhancing the guest experience and supporting the company's growth strategies through significant capital investment. For calendar year 2025, the company plans to invest approximately $198 million to $203 million in core capital before $45 million of growth capital investments at its European resorts, including $41 million at Andermatt Sudrun and $4 million at Crown Montana, and $6 million of real estate related capital projects to complete multi-year transformational investments at key base areas at Breckenridge Peak 8 and Keystone River Run. and planning investments to support the development of the West Lion's Head area into a forest-based village at Vail Mountain.

Kirsten Lynch: For $45 million of growth capital investments at its European resorts, including $41 million that undermine the drone and $4 million at Crown Montana.

And $6 million of real estate related capital projects to complete multiyear transformational investments.

Kirsten Lynch: At key based areas at Breckenridge, PK and Keystone River run.

Kirsten Lynch: And planning investments to support the development of the West Lion's head area into a forced based village at Vail Mountain.

Kirsten Lynch: including European growth capital investments and real estate related capital. The company plans to invest approximately $249 million to $254 million in calendar year 2025.

Kirsten Lynch: Including European growth capital investments and real estate related capital the company plans to invest approximately $249 million to $254 million in calendar year 2025 <unk>.

Kirsten Lynch: Projects in the calendar year 2025 capital plan described remain subject to approval. In calendar year 2025, the company will embark on two multi-year transformational investment plans at Park City Mountain and Vail Mountain. At Park City Mountains, the transformation of Park City Mountains Canyons Village is underway to support a world-class luxury-based village experience. These investments will support Park City Mountain in welcoming athletes and fans from across the world who visit the resort as it serves as a venue for the 2034 Olympic Winter Games. As announced in September, we are replacing the Sunrise Lift with a new 10-person gondola in partnership with the Canyons Village Management Association in calendar year 2025, which will provide improved access and enhanced guest experience for existing and future developments within Canyons Village.

Projects in the calendar year 2025 capital plan described remain subject to approvals.

Kirsten Lynch: In calendar year 2025, the company will embark on to multiyear transformational investment plans at Park City Mountain and Vail Mountain.

Kirsten Lynch: At Park City Mountain the transformation of Park City Mountains canyons village is underway to support our world class luxury based village experience. These.

Kirsten Lynch: These investments will support Park city mountain and welcoming athletes and fans from across the world who visit the resort as it serves as a venue for the 2034 Olympic Winter games.

Kirsten Lynch: As announced in September we are replacing the Sunrise left with a new 10 person gondola in partnership with the canyons village Management Association in calendar year, 2025, which will provide improved access and enhance guest experience for existing and future developments within canyons village.

Kirsten Lynch: The company also plans to enhance the beginner and children's experience by expanding the existing Red Pine Lodge restaurant to upgrade the dining experience for ski and ride school guests. and by improving the teaching terrain surrounding the Red Pine Lodge. These investments are further supported by the construction of the Canyons Village parking garage, a new covered parking structure with over 1,800 stalls being developed by TCFC, the master developer of Canyons Village, which is expected to break ground in spring 2025.

Kirsten Lynch: The company also plans to enhance the beginner and children's experience by expanding the existing Red Pine Lodge restaurant to upgrade the dining experience for ski and ride school guests.

Kirsten Lynch: And by improving the teaching train surrounding the Red Pine Lodge.

Kirsten Lynch: These investments are further supported by the construction of the canyons village parking garage.

Kirsten Lynch: New covered parking structure with over 1800 styles being developed by T. C. F C. The master developer of canyons village, which is expected to break ground in spring 2025.

Kirsten Lynch: Planning of additional investments at Park City Mountain Across the Mountain Experience is underway and additional projects will be announced in the future. At Vail Mountain, the company previously announced the development of the West Lion's Head area into a forest-based village at Vail Mountain in partnership with the Town of Vail and EastWest Partners. The new base village will reinforce Vail Mountain's status as a world-class destination and is anticipated to feature access to the resort's 5,317 acres of legendary terrain, plus new lodging, restaurants, boutiques, and skier services, as well as community benefits such as workforce housing, public spaces, transit, and parking.

Kirsten Lynch: Planning of additional investments at Park City Mountain across the mountain experience is underway and additional projects will be announced in the future.

Kirsten Lynch: At Vail Mountain the company previously announced the development of the Westleigh in fed area in full force base village at Vail Mountain in partnership with the Countervail and East West partners.

Kirsten Lynch: The new base village will reinforce Vail mountain status as a world class destination and is anticipated to feature access to the resorts 5317 acres of legendary terrain, plus new lodging restaurants, boutiques and skier services as well as community benefits such as workforce housing public.

Kirsten Lynch: Faces transit and parking.

Kirsten Lynch: In addition, the company is developing a multi-year plan to invest in base area improvements, lift upgrades, and across the beginner ski and ride school and dining experiences. In calendar year 2025, the company is planning to renovate guest rooms and common spaces at its luxury Vail Hotel, The Arabelle, at Vail Square. Additionally, in calendar year 2025, the company plans to invest in real estate planning to develop the West Lion's Head area. In addition to embarking on two multi-year transformational investment plans, the company is planning significant investments across the guest experience in calendar year 2025. At Andermont Cedroon, the company plans to replace the four person fixed grip.

Kirsten Lynch: In addition, the company is developing a multiyear plan to invest in base area improvements lift upgrades and across the beginner ski and ride school and dining experiences.

Kirsten Lynch: In calendar year 2025, the company is planning to renovate guestrooms and common spaces and its luxury Vail hotel the arabel at Vail square.

Kirsten Lynch: Additionally, in calendar year 2025, the company plans to invest in real estate planning to develop the west Lion's head area.

Kirsten Lynch: In addition to embarking on two multi year transformational investment plan. The company is planning significant investments across the guest experience in calendar year 2025.

Kirsten Lynch: And Andre amounts to join the company plans to replace the four person fixed grip.

Kirsten Lynch: All moot left and the four person fixed script Coarm left with two new six person high speed lift that will increase capacity and significantly improve the guest experience at the Val Dor area.

Kirsten Lynch: all-moot lift and the four-person fixed-grip QAM lift with two new six-person high-speed lifts that will increase capacity and significantly improve the guest experience at the Val-Val area. The company also plans to upgrade and expand snowmaking infrastructure at the Gemstock area on the western side of the resort to enhance the consistency of the guest experience, particularly in the early season, and significantly improve energy efficiency. In addition, the company plans to complete the previously announced upgrade of the Cedroon Mille Laites snowmaking infrastructure and improvements to the Mille Laites and Natchez restaurants. Through calendar year 2025, Vail Resorts will have invested approximately 50 million of the total 110 million Swiss francs capital that was invested as part of the purchase of the company's majority ownership stake in Andermont Cedrun.

Kirsten Lynch: The company also plans to upgrade and expand snowmaking infrastructure at the Gemstar area on the western side of the resort to enhance the consistency of the guest experience, particularly in the early season and significantly improve energy efficiency.

Kirsten Lynch: In addition, the company plans to complete the previously announced upgrade of the syndrome relates snowmaking infrastructure and improvements to the malaise and Notching restaurant drew.

Kirsten Lynch: Through calendar year 2025, Vail resorts will have invested approximately 50 million of the total 110 million Swiss francs capital that was invested as part of the purchase of the company's majority ownership stake and undermine children.

Kirsten Lynch: At parish or in Australia, The company plans to replace the Mt parish or double and triple chairs with a new six person high speed lift following the capital spending in calendar year 2024 that is continuing into calendar year 2025 to be completed in time for the 20th twenty-five winter season.

Kirsten Lynch: At Perisher in Australia, the company plans to replace the Mount Perisher double and triple chairs with a new six-person high-speed lift following the capital spending in calendar year 2024 that is continuing into calendar year 2025 to be completed in time for the 2025 winter season in Australia. In addition, the company is continuing to invest in innovative technology to enhance the guest experience. In the coming year, the company will be investing in additional new functionality for the MyEpic app, including new tools to better communicate with and personalize the experience for our guests. The company will also be building on the pilot of MyEpic Assistant, a new guest service technology within the MyEpic app powered by advanced AI and resort experts at four resorts for the upcoming 2024-2025 ski season.

Kirsten Lynch: In Australia.

Kirsten Lynch: In addition, the company is continuing to invest in innovative technology to enhance the guest experience in.

Kirsten Lynch: In the coming year, the company will be investing in additional new functionality for the my epic app, including new tools to better communicate with and personalize the experience for our guests.

Kirsten Lynch: The company will also be building on the pilot of my Epic Assistant a new guest service technology within the my epic App powered by advanced AI and resort experts at four resorts for the upcoming 2024 2025 ski season. The company is planning to invest in more advanced AI capabilities.

Kirsten Lynch: The company is planning to invest in more advanced AI capabilities in calendar year 2025. To support the dining experience, the company plans to invest in physical improvements to dining outlets at its largest destination resorts to improve throughput. The company is also continuing to invest in waste reduction and emissions reduction projects across its resorts to achieve its goal of zero net operating footprint by 2030. At Breckenridge, the company is making real estate related investments to complete the multi-year transformation of the Breckenridge Peak 8 base area, where the company has enhanced the beginner and children's experience and increased uphill capacity with the introduction of a new four-person high-speed five-chair, new teaching terrain, and a transport carpet from the base, making the beginner experience more accessible.

Kirsten Lynch: <unk>.

Kirsten Lynch: In calendar year, 2020 five.

Kirsten Lynch: To support the dining experience the company plans to invest in physical improvements to dining outlets at its largest destination resorts to improve throughput.

Kirsten Lynch: The company is also continuing to invest in waste reduction and emissions reduction projects across its resorts to achieve its goal of zero net operating footprint by 2030 50.

Kirsten Lynch: At Breckenridge, the company is making real estate related investments to complete the multiyear transformation of the Breckenridge PK based area, where the company has enhanced the beginner and children's experience and increased upheld capacity with the introduction of a new four person high speed five chair, new teaching train and a transport.

Kirsten Lynch: Carpet from the base.

Kirsten Lynch: Making the beginner experience more accessible.

Kirsten Lynch: At Keystone, the company is investing in acquisition and build-out costs for skier services that will reside in the newly developed Kindred Resort at Keystone, a family-friendly luxury ski-in ski-out lodging residence and rock resorts branded hotel at the base of the River Run gondola, including new restaurants, a full-service spa, pool, and hot tub facilities, and the new home for the Keystone Ski and Ride School and a retail and rental shop. The Kindred development follows the transformational lift-serve terrain expansion project in Bergman Bowl, increasing lift-serve terrain by 555 acres with the addition of a new six-person high-speed lift, which was completed for the 2023-2024 North American ski season.

Kirsten Lynch: At Keystone The company is investing in acquisition and build out costs for skier services that will reside in the newly developed kindred resort at Keystone a family friendly luxury ski in ski out lodging residents and rock Resorts' branded hotel at the base of the river run gondola, including new restaurants, a full service spa.

Kirsten Lynch: Paul and hot tub facilities, and the new home for the Keystone Ski and ride school, and a retail and rental shop.

The Kindred development follows the transformational lift served terrain expansion project in Bergman Bowl, increasing lifts are trained by 555 acres with the addition of a new six person high speed lift which was completed for the 2023 'twenty 'twenty four north American ski season.

Kirsten Lynch: In addition to the investments planned for calendar year 2025. The company is completing significant investment investments that will enhance the guest experience for the upcoming 2024, 2025, North American and European ski season.

Kirsten Lynch: In addition to the investments planned for calendar year 2025, the company is completing significant investment investments that will enhance the guest experience for the upcoming 2024-2025 North American and European ski season. As previously announced, the company expects its 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 My Epic Gear for the 2024-2025 winter season at 12 destination and regional resorts across North America, $7 million of growth capital investments at Andermont-Soudroon, $2 million of maintenance, and $2 million of integration investments at Crown Montana, and $3 million of reimbursable capital.

Kirsten Lynch: As previously announced the company expects its 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 gear for the 'twenty 'twenty four.

Kirsten Lynch: Twenty-five winter season at 12 destination and regional resorts across North America $7 million of growth capital investments at Andreozzi June $2 million of maintenance and $2 million of integration investments at Crown, Montana and $3 million of Reimbursable capital.

Kirsten Lynch: Including these one-time investments, the company's total capital plan for calendar year 2024 is now expected to be approximately $216 million to $221 million.

Kirsten Lynch: Including these one time investments the company's total capital plan for calendar year 'twenty 'twenty four is now expected to be approximately $216 million to $221 million.

Kirsten Lynch: In closing I would like to thank all of our team members, especially our frontline teams across all of our mountain resorts for their passion hard work and commitment to creating an experience of a lifetime for our guests.

Kirsten Lynch: In closing, I would like to thank all of our team members, especially our frontline teams across all of our mountain resorts for their passion, hard work, and commitment to creating an experience of a lifetime for our guests. The guest experience that our employees create is our mission as a company and is core to our success. We all look forward to welcoming guests to our mountain resorts this winter season.

Kirsten Lynch: Guests experience that our employees create is our mission as a company and as core to our success. We all look forward to welcoming guests to our mountain resorts. This winter season at this time, Angela and I will be happy to answer your questions. Operator, we are ready for questions.

Kirsten Lynch: At this time, Angela and I will be happy to answer your questions.

Operator: Operator, we are ready for questions. Certainly, Ms. Lynch. Ladies and gentlemen, 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. Again, please limit yourself to one question and one follow-up.

Certainly Ms Lynch, ladies and gentlemen at this time, if you wish to ask a question. Please press star one on your telephone keypad, you may remove yourself from the queue by pressing star two again, please limit yourself to one question and one follow up we'll go first to Shaun Kelley with Bank of America.

Shaun Kelley: We'll go first to Shaun Kelley with Bank of America. Hi, good afternoon, everyone. Hi, Kirsten and Angela.

Shaun Kelley: Hi, good afternoon, everyone, Hi, Kirsten and Angela.

Shaun Kelley: Maybe if we could just start I'm kind of curious obviously the season is off to a very good start on the weather front it sounds like and.

Kirsten Lynch: Maybe if we could just start, I'm kind of curious, obviously, the season's off to a very good start on the weather front, it sounds like, and, you know, built into the guidance is some, you know, behavioral normalization that you've called out a number of times. Could you just give us your sense on, you know, kind of what you're seeing so far? I know it's extremely early and early season visit patterns don't always reflect the destination guest, but just what are you seeing so far in terms of, you know, kind of behavior for the resorts that are open?

Speaker Change: Built into the guidance.

Speaker Change: Behavioral normalization that you've called out a number of times could you just give us your sense on kind of what youre seeing so far I know it's extremely early in early season visit patterns don't always reflect the destination guests, but just what are you seeing so far in terms of kind of behavior for the resorts that are open kind of how are you feeling about.

Kirsten Lynch: And kind of how are you feeling about, you know, just that activity level thus far, given what you can you can see through Thanksgiving? Thanks.

Speaker Change: Just that activity level, thus far given what you can you can see through Thanksgiving. Thanks.

Speaker Change: Thanks for the question, Sean I think a couple of indicators to look at one is pass sales obviously were very pleased with the outcome of our pass sales.

Kirsten Lynch: Thanks for the question, Shaun. I think a couple of indicators to look at. One is past sales, obviously. We're very pleased with the outcome of our past sales and the improvement in the growth rates in the final selling period to get to 2% decline in units and up 4% in sales dollars. So, that's over 2.3 million guests that are committed coming to our resort. So, that's a strong indicator for us.

Speaker Change: And the improvement in the growth rates and the final selling period to get to 2% decline in units and up 4% in sales dollars. So that's to over $2 3 million guests that are committed coming to our resorts. So that's.

Speaker Change: A strong indicator for us that early season conditions.

Kirsten Lynch: The early season conditions are very encouraging and especially being able to open some of our resorts early. The other indicator is lodging that we're looking at and U.S. lodging in the market data, in the market for our resorts, we see our consistent, the lodging booking data is consistent with prior year levels for the full season, better than pre-COVID levels. And then, Whistler Blackcomb, as I mentioned in the opening remarks, those bookings are lagging prior year and pre-COVID levels. Our owned and operated lodging, we have more recent data on that and we are seeing that slightly above prior year.

Speaker Change: Our are very encouraging and especially being able to open some of our resorts are really the other indicator is lodging that we're looking at and U S. Lodging in the the market data in the market for our resorts are are we see are consistent the lodging booking data is king.

Speaker Change: System with prior year levels for the full season.

Speaker Change: Better than pre Covid levels, and then Whistler Black home as I mentioned in the opening remarks, those bookings are lagging prior year and pre COVID-19 levels are owned and operated lodging. We have more recent data on that and we are seeing that slightly above prior year and all of those indicators.

Kirsten Lynch: And all of those indicators seem to be improving as we're getting closer to this season, but we're really looking at all of that in totality, the strong conditions, where we landed on past sales, and then the lodging indicators.

<unk> seem to be improving as we're getting closer to the season, but we're really looking at all of that in totality. The strong condition, where we landed on pass sales and then the lodging indicators. So as a result, we are holding guidance at this time.

Kirsten Lynch: So, as a result, we are holding guidance at this time.

Speaker Change: Fantastic and then maybe just as my follow up Whistler has come up in a couple of the conversations of questions. Since the release could you just.

Kirsten Lynch: Fantastic, and then maybe just as my follow-up, you know, Whistler's come up in a couple of the conversations and questions since the release. Could you just talk about the sort of overall exposure there? If that were to stay where it's at, is that enough to be a risk to guidance, or when you kind of put all those other pieces in, and especially, you know, if the snow conditions remain where they are, is there enough, you know, local visitation and other things that can offset that, and that's not something we need to be, you know, overly worried about at this point in the season?

Speaker Change: Just talk about the sort of overall exposure there if that were to stay where its at is that is that enough to be a risk to guidance or what are you kind of put all those other pieces in and especially if the snow conditions remain where they are is there enough local visitation and other things that can offset that and thats not something we need to be overly worried about.

Speaker Change: At this point in the season.

Speaker Change: When I look at the Westwood Black home lodging data you know I think what we see is that it continues to be improving so I think given the strong conditions I think it's possible what we're seeing in the bookings is some delayed decision, making which you obviously saw in total for our pass sales as our.

Kirsten Lynch: When I look at the Whistler Black Home lodging data, you know, I think what we see is that it continues to be improving. So I think given the strong conditions, I think it's possible what we're seeing in the bookings is some delayed decision making, which you obviously saw in total for our past sales as our trends improved as we went through the selling cycle. The conditions are off to a really great start. The terrain that we have is off to a great start. Destination guests are very important to that resort and the outcomes associated with that resort.

Speaker Change: Trends improved as we went through the selling cycle.

Speaker Change: The conditions are off to a really great start the terrain that we have is off is off to a great start.

Speaker Change: At destination guests are very important to that resort and the outcomes associated with that resort. So we'll continue to monitor and do everything we can to encourage visitation to the resorts. So nothing to be a I would say concerned about right. In this moment, just a mix of indicators with oil coming off.

Kirsten Lynch: So we'll continue to monitor and do everything we can to encourage visitation to the resort.

Kirsten Lynch: So nothing to be, I would say, concerned about right in this moment. Just a mix of indicators with coming off of, I think, a really tough year at Whistler Black Home last year. So the fact that there could be some delayed decision making going on where people want to wait and see how the season starts there, I think makes sense. And we'll hope to see that play out as the season moves along here.

Speaker Change: I think a really tough year at Whistler Blackcomb last year. So the fact that there could be some delayed decision, making going on where people want to wait and see how the season starts there I think makes sense and we'll hope to see that play out as the season moves along here.

Speaker Change: Perfect. Thank you so much.

Shaun Kelley: Perfect. Thank you so much. Thank you, Shaun.

Sean: Thank you Sean.

Thank you we'll go next now to Jeff Stanchion at Stifel.

Shaun Kelley: Thank you.

Jeffrey Stantial: We go next now to Jeff Stantial at Steve... Hey, great. Good afternoon, Kirsten and Angela. Thanks for taking our questions.

Speaker Change: Hey, great. Good afternoon curious Angela thanks for taking my questions.

Kirsten Lynch: Starting off, I was hoping maybe just to expand upon, here's your answer to Shaun's first question and more specifically narrow in a little bit on what you're seeing in terms of lodging bookings indicators specifically for the Christmas and the New Year's holiday period. And as a corollary to that, have you seen sort of the bookings trends or the bookings piece accelerate in those markets that have experienced, we'll say some favorable early season snowfall? Have you seen the bookings piece accelerate in those markets for that holiday period?

Speaker Change: Starting off I was I was hoping maybe just to expand upon here senior answer to Sean's first question and more specifically narrow in a little bit on what you're seeing in terms of lodging bookings indicators, specifically further Christmas and the new year's holiday period.

Speaker Change: And as a corollary to that have you seen sort of the bookings trends or the bookings piece accelerate in those markets that have experienced some favorable early season snowfall do you see the bookings piece accelerate in those markets for that holiday period.

Hi, Josh Thanks for the question as we we track the market data for our resorts in the U S as well as the market data for Whistler and then we look at our owned and operated we are consistently seeing as time moves closer here to the seasons that there are.

Kirsten Lynch: Hi, Jess. Thanks for the question. As we we track the market data for our resorts in the U.S., as well as the market data for Whistler, and then we look at our owned and operated. We are consistently seeing, as time moves closer here to the season, that there are improvements in the booking. In total, for the market data for our U.S. resorts, we are seeing above pre-COVID in occupancy or bookings and pretty consistent with prior year. I think we've seen those improvements also happening during the key holiday periods. And then our owned and operated, I would say, because we have more visibility to that data more recent versus the market data that gets published to us, when we look at owned and operated, and I just want to remind you our owned and operated is a pretty small percentage of the lodging, so it's a directional indicator.

Speaker Change: Improvements in the bookings.

Speaker Change: In total for the market data for our U S. Resorts, we are seeing above pre COVID-19 in occupancy or bookings and AR.

Speaker Change: Pretty consistent with prior year I think we've seen those improvements also happening during the key holiday periods.

Speaker Change: And then our owned and operated I would say because we have more visibility to that data more recently versus the market data that gets published to us when we look at owned and operated and I just want to remind you our owned and operated as a pretty small percentage of the lodging. So it's a directional indicator. It it continues to reinforce Jeff what we see which is.

Kirsten Lynch: It continues to reinforce, Jeff, what we see, which is those booking patterns seem to be strengthening as we get closer and as people are seeing the snow conditions are strong. So, yes, we are definitely seeing it moving in that direction and hope to see that momentum continue.

Those booking patterns are seem to be strengthening as we get closer and as people are seeing snow conditions are strong. So yes, we are definitely seeing it moving in that direction and hope to see that momentum continue.

Kirsten Lynch: Okay, great. That's helpful. Thank you for that, Kirsten.

Speaker Change: Okay. Great. That's helpful. Thank you for that and then for my follow up turning over to capital allocation if I.

Jeffrey Stantial: And then for my follow-up, turning over to capital allocation, if I bridge down from your net income guidance to what we think you should do in free cash flow this year, by my math, your current dividend policy, assuming unchanged, implies about 80% to 90% payout from discretionary free cash flow. Assuming that that is accurate, can you just expand a little bit on your philosophy or your willingness to tap into your balance sheet should you see another year of challenging weather conditions and that drive the payout level potentially north of 100%?

Speaker Change: Down from your net income guidance to what we think you should do and in free cash flow this year, but by my math. Your current dividend policy, you know assuming unchanged implies about 80% to 90% payout from discretionary free cash flow assuming that that is accurate can you just expand a little bit on your <unk>.

Speaker Change: Philosophy or your willingness to tap into your balance sheet should you see another year of challenging weather conditions and that drive the payout level potentially north of a 100% in sort of in a similar vein how should we think about your dividend growth strategy just in light of the post COVID-19 normalization trend that you've.

Angela Korch: And sort of in a similar vein, how should we think about your dividend growth strategy, just in light of the post-COVID normalization trend that you've been talking about that maybe wasn't fully understood or appreciated looking back one or two years ago? And that's all for me. Thanks.

Speaker Change: <unk> been talking about that maybe it wasn't fully understood or appreciated looking back one or two years ago and that's all for me. Thanks.

Angela Courtyard: Thanks, Jeff It's Angela I'll I'll take I'll take this one and yeah, we always look at our dividend and really all of our capital allocation alternatives, we're constantly looking and reevaluating that what you saw us do right for this quarter is announce or.

Angela Korch: Thanks, Jeff.

Angela Korch: It's Angela. I'll take this one. And yeah, we always look at our dividend and really all of our capital allocation alternatives. We're constantly looking and reevaluating that. What you saw us do, right, for this quarter is announce our investment in the guest experience and investment in our resorts, which we've consistently done. And for return of capital, right, we have been prioritizing the dividend. And even in a year like last year, where we did miss our original guidance, right, we still were able to cover our dividend payout and pursue all of our capital allocation priorities. So we feel very comfortable.

Angela Courtyard: Investment and the guest experience and investment in our resorts, which we've consistently done.

Angela Courtyard: And for return of capital right, we have been prioritizing the dividend and even in a year like last year, where we did miss our original guidance right. We still were able to cover our dividend payout and pursue all of our capital allocation priorities. So we feel very comfortable we reaffirmed and announced our dividend stayed at the same level we typically.

Jeffrey Stantial: We reaffirmed and announced our dividend stayed at the same level. We typically look at our dividend in the March quarter and we'll continue to reevaluate it though every quarter. Great. That's helpful. Thank you for that, Angela.

Angela Courtyard: At our dividend and in the March quarter, and we'll continue to reevaluate it though every quarter.

Speaker Change: Great. That's helpful. Thank you for that Angela I'll pass it on.

Jeffrey Stantial: I'll pass it on. Thank you.

Speaker Change: Thank you well go next now to Megan Clap with Morgan Stanley.

Megan Clapp: We go next now to Megan Clapp with Morgan Stanley. Hey, good afternoon. Thanks so much. I wanted to shift a little bit to past sales, obviously encouraging to see things improve a bit, especially that that positive unit growth here in the most recent period. And you did give a lot of color in the prepared remarks that, you know, sales trends improved due to the expected renewal strength. So maybe you could just give a little bit more around that. Was it that renewals were just a little bit better than you were expecting? And you spoke to some positive cadence, I think, when you were answering a question earlier.

Speaker Change: Hey, good afternoon. Thanks, so much I wanted to shift a little bit to pass sales, obviously encouraging to see things improve a bit, especially that that positive unit growth here in the most recent period and you did give a lot of color in the prepared remarks that you know sales trends improved due to the expected renewal strength. So maybe you could just give a little bit more around that.

Speaker Change: Was it that renewals were just a little bit better than you were expecting and you spoke to some positive cadence I think when you were answering a question earlier. So how much do you think was driven by that by the early openings at some of your resorts and you know any commentary around just more around the composition of the better than expected pass sales.

Kirsten Lynch: So how much do you think was was driven by that, by the early openings at some of your resorts? And, you know, any commentary around, just more around the composition of the better than expected past sales in the in the last period would be great.

Speaker Change: The last period would be great.

Speaker Change: Thanks, Mike and sure I'm happy to give a little more context on pass sales you know, where we're very pleased with the outcome of the results on pass sales the results than what we saw a couple of dynamics one is very strong.

Kirsten Lynch: Thanks, Megan. Sure, I'm happy to give a little more context on past sales. You know, we're, we're very pleased with the outcome of the results on past sales. The results that what we saw a couple of dynamics, one is very strong loyalty. So our renewing pass holders, we saw growth among our renewing pass holders, and that growth was across all of our geographies. We also saw the majority of those renewers actually renewing into the exact same path as we had expected, which we think is a very positive dynamic as well. On the new side, I talked about this a little bit in the prepared remarks, new pass holders, we acquired a substantial number of new pass holders.

Speaker Change: Loyalty so are renewing pass holders, we saw growth among our renewing pass holders and that growth was across all of our geographies. We also saw the majority of those renew ours actually renewing into the exact same path as we had expected, which we think is.

Speaker Change: A very positive dynamic as well on the news side I talked about this a little bit in the prepared remarks, new pass holders, we acquired a substantial number of new pass holders. They come from three different primarily three different sources and there's different dynamics in each one of those.

Kirsten Lynch: They come from three different, primarily three different sources. And there's different dynamics in each one of those. There's lapsed guests, so people who have come to our resorts in the past, but not just this, not this past year, and we saw growth, converting those guests into new pass holders for this coming season.

Speaker Change: Theres lapsed gas, so people, who have come to our resorts in the past, but not just this not this past year and we saw growth converting those guests into new pass holders for this coming season, where we saw the decline year over year was on prior year lift ticket gas, which I have talked about.

Kirsten Lynch: Where we saw the decline year over year was on prior year lift ticket guests, which I have talked about in prior earnings calls, which was really just driven by the size of that audience being smaller after very tough weather season and industry normalization, and then prospect guests, which is basically people who are new to our database, who we've not seen in our database before, that the number of those pass holders also was down versus prior year. We did see strong price realization, which I'm really pleased to see. And then this last dynamic that I'll highlight is delayed decision making.

In prior earnings calls, which was really just driven by the size of that audience being smaller after a very tough weather season and industry normalization and then prospect gas, which is basically people who are new to our database, we've not seen in our database before.

Speaker Change: That the number of those pass holders also was down versus prior year.

Speaker Change: We did see strong price realization, which I'm really pleased to see and then this last dynamic that all highlighted it is delayed decision, making I think if you look through the cadence of our selling cycle. This year.

Kirsten Lynch: I think if you look through the cadence of our selling cycle this year, we definitely saw renewers as well as new guests delaying decision making later into the selling cycle, which impacted and we talked about on some of the prior earnings calls did impact the cadence of when the results came in and why between September and December we saw the improvement in the growth rates during that late part in the selling cycle.

Speaker Change: We definitely saw renewals as well as new gas delaying decision, making later into the selling cycle, which impacted and we've talked about on some of the prior earnings calls did impact the cadence of when the results came in and why between September and December.

Speaker Change: We saw the improvement in the growth rates during that late part in the selling cycle.

Speaker Change: Okay, great. Thanks, and that's helpful. Maybe just as my as my follow up can you talk a little bit about the my epic year rollout and how the uptake of that was relative to your expectations I understand it's not a full rollout yet but would just be curious to kind of hear any early commentary around uptake and how that makes you think about your expectation.

Megan Clapp: Okay, great. Thanks, Kirsten. That's helpful.

Kirsten Lynch: I mean, but just as my as my follow up, can you talk a little bit about the MyEpicYear rollout and how the uptake of that was relative to expectations? I understand it's not a full rollout yet, but would just be curious to kind of hear any early commentary on uptake and how that makes you think about your expectations for ancillary in the upcoming season. Yes, thanks for the question. We continue to be very excited about MyEpicGear. I would say it's very early. I mean, it's not a, you know, a past type of business where all of it is committed in advance.

Speaker Change: For ancillary and the upcoming season.

Speaker Change: Yes. Thanks for the question, we continue to be very excited about my epic gear I would say, it's very early I mean, it's not a.

Speaker Change: Pass type of business, where all of it is committed in advance. So it's very early in the selling cycle. We are watching year, one at 12 different resorts with some limitations. So that we can make sure we scale the business appropriately.

Kirsten Lynch: So it's very early in the selling cycle. We are launching year one at 12 different resorts with some limitations so that we can make sure we scale the business appropriately. So nothing really substantial to report in terms of results because it's so early in the selling cycle for that experience. I think in March we will have a more robust update to share so we'll have a much better idea of the experience our guests had, the number of members that subscribe to the service. I think we'll have more details to share with you in March. It's just a little too early right now.

Speaker Change: So nothing really substantial to report in terms of results because it's so early in the in the selling cycle for that experience I think in March we will have a more robust update to shares will have a much better idea of the experience. Our guests had the number of members that.

Speaker Change: Subscriber to the service side I think we'll have more details to share with you on March just a little too early right now.

Megan Clapp: Okay, understood.

Speaker Change: Okay understood. Thank you.

Megan Clapp: Thank you.

Megan Clapp: Thanks, Megan. Thank you.

Speaker Change: Thanks Megan.

Speaker Change: Thank you well go next to David Katz with Jefferies.

David Katz: We go next now to David Katz with Jeffrey Stantial. Hi, everyone. Thanks for taking my questions. Appreciate it.

David Katz: Hi, everyone. Thanks for taking my questions I appreciate it.

Kirsten Lynch: Can we just go double back to the guidance one more time? I apologize if we're beating this a little bit, but with with the stronger start to the year and, you know, perhaps, you know, maybe some of the Australian season there, can we just sort of walk through the puts and takes and how you're thinking about the rest of the year? You know, are you expecting weather to normalize at the resorts that have started off strongly? You know, are you expecting others to improve? What are the pluses and minuses as we kind of unpack the guidance?

David Katz: Can we just go double back to the guidance one more time I apologize if we're beating this a little bit but with the stronger start to the year.

David Katz: And.

David Katz: Perhaps.

David Katz: Maybe some of the Australia and Susan there can we just sort of walk through the puts and takes.

David Katz: And how youre thinking about the rest of the year R.

Are you expecting whether to normalize at the results.

David Katz: But have started off strongly.

David Katz: Are you expecting others to improve what are the pluses and minuses as we kind of unpack the guidance.

Speaker Change: Thanks, David I think a couple of things that are for us to think about first is both our Q1 results and our pass sales results were generally in line with our expectations.

Kirsten Lynch: Thanks, David. I think a couple of things that for us to think about first is both our Q1 results and our past sales results were generally in line with our expectations. We, number one, number two, we have strong early season conditions as we talked about in the Rockies, the West. So I think we're in a really good position heading into the season.

Speaker Change: We number one number two we have a strong early season conditions as we talked about in the Rockies. The west. So I think we're in a really good position heading into the season.

Kirsten Lynch: And then third is we're looking at lodging bookings and the trend on lodging bookings and where we stand on lodging bookings in our US resort markets, as well as Whistler Blackcomb, our largest resort, the lodging bookings there. So at this point, it's pretty early in this season. We're looking at all of those factors. The season's just begun. And you know, hoping for a strong season, but not changing our guidance based on the mix of indicators that we have right at this point, we still have a significant part of our season ahead of us.

Speaker Change: And then third is we're looking at lodging bookings and the trend on lodging bookings and where we stand on lodging bookings in our U S resort markets as well as Westwood Black home, our largest resort the lot the watching bookings there. So at this point, it's pretty early in the season.

Speaker Change: And we're looking at all of those factors the season has just begun and.

Speaker Change: Hoping for a strong season, but not changing our guidance is based on the mix of indicators that we have right at this point, we still have them.

Speaker Change: A significant part of our season ahead of us.

Speaker Change: Yeah.

Kirsten Lynch: I understood. And, you know, as you, you've always accumulated a bigger and bigger base of pass holders, and with that, you know, data, and you've always been a very strong data driven company, is there anything within the database or any interesting findings or insights as that database gets bigger and bigger, that, you know, shows some change and not necessarily, you know, either positive or negative, just interesting as that base of customers gets bigger, bigger, bigger? We have over 25 million marketable guests in our database, which is a pretty incredible asset and advantage for our company to have.

Speaker Change: Understood.

Speaker Change: As you you've always accumulated a bigger and bigger base of pass holders.

Speaker Change: With that.

Speaker Change: Data and you've always been a very strong data driven.

Speaker Change: The company is there anything within the database or any interesting findings or insights as that database gets bigger and bigger that shows some change.

Necessarily either positive or negative just interesting.

Speaker Change: Base of customers gets bigger bigger bigger.

Speaker Change: Yeah.

We have over 25 million marketable guests in our database, which is a pretty incredible.

Speaker Change: Is that an advantage for our company to have I think the bigger the database gets the more we understand their behavior and the dynamics and the experience of our guests, which are you know over time as we have in the past and as we look forward. The goal is to unlock that potential in <unk>.

Kirsten Lynch: I think the bigger the database gets, the more we understand the behavior and the dynamics and the experience of our guests, which, you know, over time as we have in the past, and as we look forward, the goal is to unlock that potential in differential ways. To drive growth, our real...

Speaker Change: Parental ways to drive growth are real.

Kirsten Lynch: So the key critical focus, which we've talked about before, is going to be around ancillary, obviously, like the fact that we have so many committed guests, the fact that we have so many guests in our database, understanding their ancillary behavior and how we drive the loyalty, but also the capture of the spend in terms of insights about their guests and their behavior, not sharing anything proprietary or significant on this call today. But it is a tremendous competitive advantage that we have to have that much data. And you will hear us talk more about how we'll leverage that in different ways going forward.

Speaker Change: Key critical focus, which we've talked about before is going to be around ancillary obviously like the fact that we have so many committed gas. The fact that we have so many guests in our database understanding their ancillary behavior and how we drive the loyalty, but also the capture of the spend in terms of insights about their gas in there and.

Speaker Change: And their behavior, not sharing anything proprietary or significant on this call today.

Speaker Change: But it is a tremendous competitive advantage that we have to have that much data and you will hear us talk more about how we'll leverage that in different ways going forward.

Speaker Change: Alright, I appreciate that.

David Katz: I appreciate that.

David Katz: Congrats on the quarter.

Speaker Change: Thanks Carter thanks, Thanks, David.

David Katz: Thanks.

David Katz: Thanks, David.

Speaker Change: Well go next now to lorem vascular SKU at BNP Paribas.

Laurent Vasilescu: We'll go next now to Laurent Vasilescu at BNP Paribas. Oh, good morning, good afternoon. Thanks very much for taking my question. Kirsten, I think it was mentioned in the prepared remarks that the EPIC day pass units grew. Can you maybe unpack that a bit? How much did it grow? What drove the growth?

Speaker Change: Good morning, good afternoon, and thanks very much for taking my question Krishna I think it was mentioned in the prepared remarks that the epic day pass units grew.

Speaker Change: Can you, maybe unpack that a bit how much did it grow what drove the growth and then was there any trade down due to the macro environment.

Kirsten Lynch: And then was there any trade down due to the macro environment? Thanks, Laurent. We, Epic Day Pass, what I'll talk about trade down first, as I shared, within our renewing pass holders, we saw the majority of those pass holders renew into the same pass as last year, which is what we expected. We always have trade up, trade down, but there was nothing that was unusual or different than what our expectations were, and the net migration between those two was relatively consistent with the last couple of years that we've seen on pass, so nothing unusual there, which I think is actually quite encouraging.

Speaker Change: Yeah.

Speaker Change: Thanks, Lauren we epic day pass what what I'll talk about trade down first as I shared within our renewing pass holders.

Speaker Change: We saw the majority of those pass holders renew into the same path as last year, which is what we expected we always have trade up trade down, but there was nothing that was unusual or different than what our expectations were in and the <unk>.

Net migration between those two was relatively consistent with the last couple of years that we've seen on past and nothing unusual there, which I think is actually quite encouraging epic day pass is like our entry level.

Kirsten Lynch: Epic Day Pass is like our entry level. I'm always pleased to see that product growing. And what you see in our the differential in the units and our unit performance and our dollar sales performance reflects that we saw really strong price blow through this year for the full selling cycle, which I'm also pleased to see. Okay, very helpful.

The opportunity to bring in new pass holder. So we see growth there because we're attracting new guests into that path and then.

Speaker Change: What we expect to do over time is encourage those guests to move up either in resort access or the number of days. So I'm always pleased to see that products growing.

Speaker Change: And what you see in our the differential in the units and our unit performance and our dollar sales performance reflects that we saw really strong price flow through this year for the fall selling cycle, which I'm also pleased to see.

Speaker Change: Okay very helpful. And then on the 100 million to our transformation plan and the $27 million for this year.

Angela Korch: And then on the $100 million transformation plan, $27 million of it for this year, I'm curious to know two things. Where should we start seeing that through the OPEX lines as you achieve these milestones? And in terms of upcoming milestones, any time frame that we should consider?

Speaker Change: Curious to know two things, where where should we start seeing that through the opex lines.

Speaker Change: Hum.

Speaker Change: To achieve these milestones in terms of upcoming milestones any timeframe that we should consider I know this year is a smaller number versus next year.

Angela Korch: I know this year is a smaller number versus next year, but should we assume that that next milestone is after the ski season? Is that a fair assumption into spring next year?

Speaker Change: But should we assume that the next milestone is after the ski season is that a fair assumption into spring next year.

Speaker Change: Hi, Lauren yes, the transformation plan overall, the total $27 million for this year before the one time expenses is expected to grow to $67 million for next year. The place I think you'll see that show up in the P&L really come through on labor primarily.

Angela Korch: Hi, Laurent. Yes, the transformation plan overall, the total $27 million for this year, before the one-time expenses is expected to grow to $67 million for next year. The places that you'll see that show up in the P&L really come through on labor, primarily, both through the general and administrative expenses, and then also at labor that you'll see on the mountain and lodging side.

Speaker Change: Through the general and administrative expenses and then also at labor that you'll see on the mountain and logic side.

Angela Korch: And in terms of milestones, we'll continue to provide updates as we get through kind of the fiscal year and then into the coming year. We'll continue to keep you updated on the progress.

Speaker Change: And in terms of milestones will continue to provide updates as we get through kind of the fiscal year and then into the coming year. We will continue to keep you updated on the progress.

Speaker Change: Very helpful. Thank you very much and best of luck with the started the season.

Laurent Vasilescu: Very helpful.

Laurent Vasilescu: Thank you very much and best of luck with the start of the year.

Thanks, Laura.

Chris Woronka: Thanks, Laurent. Thank you.

Speaker Change: Thank you well go next now to Chris <unk> at Deutsche Bank.

Kirsten Lynch: We go next now to Chris Woronka at Deutsche Bank. Hi, good afternoon, Kirsten and Angela. So I'm curious, you know, Kirsten, you've mentioned a few times now that you're, you know, you're going to have a number of new skiers in the network this year, as you always do. As you look back to prior years, is there any consistency in how they perform on ancillary, whether it's ski school dining or hotels? Are there any discernible patterns? Just trying to figure out if we can expect the same level of, you know, incremental contribution from the new pass holders you get.

Speaker Change: Hi, good afternoon garrison and Angela.

Speaker Change: So I'm curious you know Jason you've mentioned a few times now that you are.

Speaker Change: You have a number of new skus.

Speaker Change: The network this year as you always do.

Speaker Change: You look back to prior years is there any consistency in how they perform on ancillary whether it's ski school dining or hotels, there any discernible pattern I'm just trying to figure out if we can expect the same level of incremental.

Incremental contribution from the new pass holders, who got it. Thanks.

Kirsten Lynch: Thanks.

Speaker Change: Thanks, Chris well, what what you saw last year at the end of even after a tough season last season with a challenging weather and the normalization. We had really strong spend per guest results, which is really encouraging because we're yeah, attracting but the guests that wants to spur.

Kirsten Lynch: Thanks, Chris. Well, what you saw last year at the end of even after a tough season last season with challenging weather and the normalization, we had really strong spend per guest results, which is really encouraging, because we're, yeah, attracting the guests that want to spend and experience those ancillary businesses. As we look at, there are, you know, some differences between how and when destination guests spend versus local guests spend.

And in an experienced those ancillary businesses as.

Speaker Change: As we look at there are some differences between how and when destination guests spend versus local guests spend but the real key for us is.

Kirsten Lynch: But the real key for us is our capture and our ability to innovate. And what you see us doing with MyEpicGear is really trying to innovate a business that has not innovated in decades, which is how people get their gear. And it's early days for My Epic Gear because it's year one for us and launching that. But that innovation is really critical as we believe that we can unlock differential growth and ancillary through innovation as well as the investments we're making. So that's what I would hope that you should be able to see. When we attract new guests into Epic DayPass.

Speaker Change: Our capture and our ability to innovate and what you see us doing with my epic gear is.

Speaker Change: Really trying to innovate our business that has not innovated in decades, which is how people get their gear and it's early days for myopic Eric's with year, one for us and watching that but that innovation is really critical as we believe.

Speaker Change: That we can unlock differential growth in ancillary through innovation as well as the investments we're making so that's what I would hope that you should be able to see when we attract new guests into epic day pass.

Kirsten Lynch: you know, those tend to orient more toward destination guests, not locals. And so that is a guest that has a strong spend in ancillary historic Okay, thanks.

Speaker Change: Those tend to orient more toward destination guests not locals and so that is a.

I guess that has a strong spend in ancillary historically.

Speaker Change: Okay. Thanks, Thanks, Jason.

Kirsten Lynch: Thanks, Kirsten.

Kirsten Lynch: And as a follow-up, if I could, You know, to the extent that you may end up having a, you know, even better than expected season if the weather cooperates, you know, how confident are you on the staffing side that you can, that you A, have enough, and B, that the, you know, the costs wouldn't dramatically exceed, you know, what you expect currently. I am very confident in our staffing plan right now. We are on track to achieve that staffing plan and we also have really been successful, Chris, in increasing our return rate among our frontline teams from season to season to season, achieving historic highs in return rate.

Speaker Change: Follow up if I could.

Speaker Change: To the extent that you may end up having a even better than expected season, if the weather cooperates. How confident are you on the staffing side that you can do you have enough and b that the cost wouldn't wouldn't dramatically exceed what you expect currently.

Speaker Change: I am very confident in our staffing plan right now we are on track to achieve that our staffing plan and we also have really been successful Chris and.

Speaker Change: Increasing our return rate among our frontline teams from season to season to season is achieving historic highs and return rate.

Kirsten Lynch: And the reason why that's so important is because they are the ones that deliver the guest experience. And so it makes our execution of the guest experience so much stronger and it also obviously drives efficiency in training and onboarding because we have a return, a high, high percentage of returning staff. So I'm feeling very confident and do not have concerns on the staffing side.

Speaker Change: And the reason why that's so important is because they are the ones that deliver the guest experience and so it makes our execution of the guest experience so much stronger and it also obviously drives efficiency and.

Speaker Change: Training and Onboarding, because we have a return a high high percentage of returning staff. So I'm feeling very confident and do not have concerns on the staffing side.

Okay, great. Thanks garrison.

Kirsten Lynch: Okay, great. Thanks, Kirsten.

Kirsten Lynch: Thanks, Chris.

Speaker Change: Thanks, Chris.

Speaker Change: Well go next now to Ben Chicken at Mizuho.

Benjamin Chaiken: We'll go next now to Ben Chaiken at Mizzou Homes.

Ben Chicken: Hey, two somewhat high level questions I guess first.

Kirsten Lynch: Hey, two somewhat high-level questions. I guess first, you know, the essence of the Epic Pass historically obviously is an irrefutable price value. However, with lodging ADRs up 40 to 60 percent versus 19 in some cases, that changes the calculus for, you know, your destination visitor. I guess how much time do you spend, Kirsten, thinking about the degree to which lodging is or isn't a limiting factor? And then related, is there any part of you that wants more lodging exposure in order to control the entire experience and price value? I guess why or why not?

Ben Chicken: The essence of the epic pass historically, obviously isn't feasible price value.

However, with lodging ADR is up 40% to 60% versus 19 in some cases that changes the calculus calculus for you.

Your destination visit or I guess, how much time do you spend just in thinking about the degree to which lodging is or isn't a limiting factor and then related is there any part of you that once more lodging exposure in order to control the entire experience and price value I guess why or why not one follow up thanks.

Kirsten Lynch: Then I have one follow-up.

Kirsten Lynch: Thanks. Thanks, Ben. You know, we are really fortunate that we have some incredible lodging partners in our resort destination. And so, while I'm proud of our owned and operated lodging portfolio, we are also really pleased to have some big names in lodging that drive guests to our resort destinations and create a really appealing experience for guests to have those options and different tiers of lodging. So I'm very pleased with where we are in terms of the portfolio of what we own versus the rest of our lodging partners.

Thanks, Ben you know we are really fortunate that we have some incredible watching partners and our resort destination and so.

Ben Chicken: While I'm proud of our owned and operated lodging portfolio. We're also really pleased to have some big names and lodging that drive guest to our resort destinations and create a really appealing experience.

Ben Chicken: For guests to have those options and different tiers of lodging. So I'm very pleased with where we are in terms of the portfolio of what we own versus the rest of our lodging partners.

Kirsten Lynch: And then your first part of your question, can you reiterate that again, Ben? No, I think I think you captured it all. It's it's this works.

Speaker Change: And then your first part of your question can you reiterate that again Ben.

Speaker Change: No I think I think you captured it all.

This is Miss works I guess, just moving onto the second one.

Kirsten Lynch: I guess just moving on to the second one. You know, skiing clearly was one of the leisure sectors that received a benefit from the pandemic for a variety of reasons. As you reflect on the pandemic, you know, in retrospect, do you think this limited your ability for M&A over the last two or three years, given what was likely, what I would suspect was a disconnect in elevated earnings and multiples? And then do you feel any better about it today, given what you've described as a COVID normalization? You know, so many of the assets in this industry are, you know, they don't trade very frequently.

Speaker Change: Skiing, clearly always wanted to leisure sectors that received the benefit from the pandemic for variety of reasons as you reflect on the pandemic in retrospect do you think this a limited durability for M&A over the last two or three years, given what was likely but I would suspect was a disconnect in elevated earnings and multiples and then do you feel any better about it today given what you've describe.

Is it COVID-19 normalization.

Speaker Change: You know so many of the assets in this industry are you know they don't trade very frequently they're very unique and special there's really not a new supply that comes on which is a really great benefit that we have in this industry.

Kirsten Lynch: They're very unique and special. There's really not new supply that comes on, which is a really great benefit that we have in this industry. You know, we have been successful during this post-pandemic period in advancing our strategy to grow in a huge market in Europe by acquiring a stake in the Andermont Cedroon as well as acquiring Crown Montana. So, I'm really pleased with the progress that we've made there. Hard to say if, you know, things are going to change or there's going to be more families or owners of assets that want to make transitions. So, it is a more challenging acquisition market to forecast in the ski industry.

Speaker Change: You know we have been successful during this post pandemic period and advancing our strategy to grow in a huge market in Europe by.

Acquiring a stake in the undermines gudrun as well as acquiring crown, Montana, So I'm really pleased with the.

Speaker Change: Progress that we've made there hard to say if you know things are going to change our theres going to be more families are owners of assets that want to make transition. So it is a more challenging acquisition market to forecast in the ski industry, but we have been very transparent.

Kirsten Lynch: But we have been very transparent that we're focused on three things. One is we are still focused on North America, that we do believe there are some very specific areas in our portfolio that would be accretive that we would like to acquire. Second is Europe is huge. The size of the market, the participation in sport, dramatically bigger than North America. And we believe our business model, it's a long.

Speaker Change: That we're focused on three things. One is we are still focused on North America that we do believe there are some very specific areas in our portfolio that would be accretive that we would like to acquire second is Europe is huge the size of the market the participation in sport dramatically bigger than North America only.

Speaker Change: Believe our business model.

Speaker Change: It's a it's a long.

Operator: Thank you all or join us again next week for part two.

Speaker Change: Term strategy, but our business model has some real advantages that can be successful there over time and then we believe Asia is a big opportunity as well and I do think we've made good progress, but can't really predict and this normalization phase if that's going to unlock more or not.

Matthew Boss: Thanks, Ben. And we'll go next now to Matthew Boss with J.P. Morgan.

Ben Chicken: Thanks Ben.

Speaker Change: And well go next to Matthew boss with JP Morgan.

Speaker Change: Hey, this is John on for Matt.

Matthew Boss: Hey, this is Jon on for Matt. I'm just going back to the start of the ski season. When you look at November and kind of early December trends, how was visitation kind of versus ancillary spend and then multi-year? How are you thinking about this normalization headwind on the participation rate relative to, you know, to like new pass growth? Yeah, the normalization we talked about, John, thanks for the question. The normalization we talked about last year that we saw that there was a, you know, really some variability and some surges in demand post-pandemic that we saw starting to normalize last year.

Speaker Change: Just going back to the start of the ski season. When you look at November and it's kind of early December trends, how is visitation versus ancillary spend and then multi year. How are you thinking about this normalization headwind on the participation rate relative to like new Paas growth.

Speaker Change: Yeah. The normalization, we talked about John Thanks for the question. The normalization, we talked about last year that we saw that there was a you know really some variability and some surges in demand post pandemic that we saw starting to normalize last year the whole industry in North America was down.

Kirsten Lynch: The whole industry in North America was down over 9% in skier visits. Our visits in North America were down about 8%. What we're seeing is coming into that season where the normalization occurred, past sales were up. What we're seeing is the lag effect of that normalization on the past sales results that we have coming into this season, which is only down 2% on units. So that's kind of the impact that we're seeing from normalization. Great, thank you.

Speaker Change: Over 90% in skier visits or visits in North America were down about 8%, what we're seeing is coming into that season, where the normalization occurred pass sales were up.

Speaker Change: What we're seeing is the lag effect of that normalization on the pass sales results that we have coming into this season, which is only down 2% on.

Speaker Change: Units, so that's kind of the impact.

Speaker Change: Impact that we're seeing from normalization.

Speaker Change: Great. Thank you.

Speaker Change: Yeah.

Okay.

Speaker Change: And well go next now to Arpin Kocharian at UBS.

Kirsten Lynch: And we'll go next now to Arpine Kocherian at UBS. Hi, thank you so much for taking my question, and good evening. You know, your past penetration is already at that 75% of visitation, and I think you've previously talked about how you plan to take that higher to perhaps higher than 65% of revenue mix. Could you perhaps talk a little bit about the puts and takes of that in terms of in the year for the year impact? Because, you know, past pricing is, of course, about 35, 37 percent lower than Lyft. And historically, strong Lyft price increases have obviously helped you close that gap nicely in terms of impact on overall P&L.

Arpin Kocharian: Alright. Thank you so much for taking my question and good evening.

Speaker Change: Youre past penetration is already at that 75% of visitation and I think you've previously talked about how you plan to take that higher perhaps.

65% of revenue mix could.

Speaker Change: Could you, perhaps talk a little bit about the puts and takes of that in terms of in the year for the year impact because you know past pricing is of course about 35, 37% lower than lift and historically strong lift prices price decreases have obviously helped you close that gap nicely.

Speaker Change: In terms of impact on our overall P&L I guess I'm indirectly asking about sort of whether theres more room to push lift pricing higher here for whatever trends you have in front of you from whatever you want.

Kirsten Lynch: I guess I'm indirectly asking about sort of whether there's more room to push Lyft pricing higher here for whatever trend you have in front of you, from whatever early read you might have into Lyft pricing. Thank you. Another quick follow up.

Speaker Change: The early read you might have into lift pricing. Thank you and I have a quick follow up.

Speaker Change: Yeah.

Kirsten Lynch: Okay, if I'm interpreting your question correctly, there's a couple of areas that we still see for growth, and we are still very focused on that vision that you just articulated in terms of what we're trying to achieve is the percentage of our lift revenue that's committed in advance. And there's a couple of areas that we think are still opportunities. Obviously, we still have lift ticket guests that our goal is to convert them into a pass. We also see in under-penetrated markets and destination markets that there's still we are not maxed out or at a maturity level of where we can be with pass for the number of skiers in those markets and the opportunity to convert those.

Speaker Change: Okay, if I'm interpreting your question correctly I.

Speaker Change: Theres a couple of areas that we still see for growth and we are still very focused on that vision that you just articulated in terms of what we're trying to achieve as the percentage of our lift revenue that's committed in advance and there's a couple of areas that we think are still opportunities. Obviously, we still have lift ticket gas that our goal is to convert them into a pass.

Speaker Change: We also see in under penetrated markets and destination markets that theirs are.

Speaker Change: Still we are not maxed out or at a maturity level of where we can be with pass for the number of skiers in those markets and the opportunity to convert those and then Theres the database, which we have.

Kirsten Lynch: And then there's the database, which we have, you know, over 2.3 million pass holders, but we have over 25 million marketable guests in our database. And so the key for us is how do we connect with them in a relevant way and bring them in to our network of resorts. So those are all opportunities for growth.

Speaker Change: Over to we have over $2 3 million passengers, but we have over 25 million marketable gas in our database and so the key for US is how do we connect with them in a relevant way and bring them in to our network of resorts. So those are all opportunities for growth when I think about lift tickets versus past you know we are not.

Kirsten Lynch: When I think about lift tickets versus pass, you know, we are not focused on lift ticket pricing being lower to drive volume, right, that is a short term, not short term and respondable decision. So we do price our lift tickets to reflect the experience we're delivering, but also to encourage people to make a commitment in advance and that there's a value to the exchange that people are making to buy a pass, which is, we're asking you to make a non refundable commitment to us and for the whole season, and our network of resorts and in exchange, we're giving you that incredible value.

Speaker Change: Focused on lift ticket pricing being lower to drive volume right that is a short term not a short term and refundable decision. So we do.

Speaker Change: Our lift tickets to reflect the experience, we're delivering but also to encourage people to make a commitment in advance and that there's a value to that.

Speaker Change: Exchange that people are making to buy a pass switches, we're asking you to make a nonrefundable commitment to us or not for the whole season, and our network of resorts and in exchange were giving you that incredible value every year, we look at that price elasticity data and the behavioral data that we have.

Kirsten Lynch: Every year, we look at the price elasticity data and the behavioral data that we have to decide what are the resort lift ticket prices going to be and what are the pass prices going to be right now where we landed coming into this season with our pass results and where we are on lift ticket pricing. I'm very pleased with the balance that we have between those two and I think one last thing I'll just mention to remind people, because people often think about lift ticket prices and they think about Vail Mountain, is we have a really large portfolio, 42 owned and operated resorts that cover a very wide spectrum of different types of skiers and different price points as well, but we look at it constantly and adjust when we see data or behavior that we think we need to make adjustments to our approach.

Speaker Change: To decide what are the resort, let's ticket prices going to be and what are the past prices going to be right now where we landed coming into this season with our past results and where we are and lets ticket pricing I'm very pleased.

Speaker Change: Pleased with the balance that we have between those two and I think one last thing I'll just mention to remind people.

Speaker Change: Because people often think about lift ticket prices and they think about Vail mountain is we have a really large portfolio of 42 owned and operated resorts that cover a very wide spectrum of different types of scares in different price points as well, but we look at it constantly and adjust when we see data or behavior that.

Speaker Change: We think we need to make adjustments to our approach.

Speaker Change: Okay.

Speaker Change: Thank you very much and then one quick one I know you haven't given guidance on this outside of Capex.

Kirsten Lynch: Thank you very much.

Kirsten Lynch: And then one quick one. You know, I know you haven't given guidance on this outside of CAFX, but whatever you could share directionally would be helpful. I was wondering if you could detail what kind of OPEX you are including in your guidance for 2025 for My Epic Year. Anything directionally would be helpful.

Speaker Change: Whatever you could share Directionally would be helpful. I was wondering if you could detail what kind of opex, you're including in your guidance for 2025 for my epic Gere.

Speaker Change: Anything directionally would be helpful.

Speaker Change: Yeah.

Hi, R. P. Ne we yeah, we do not disclose what we're including in there for Opex related to this as we talked about it earlier the surf first year of rollout we have a lot of the infrastructure already in place. So if you think about what we're doing to drive this incremental business right. You can think about that in terms of the capital that we announced but then on the.

Angela Korch: Hi, RP&A. Yeah, we do not disclose what we're including in there for OPEX related to this. As we, you know, talked about it is early, this is our first year of rollout, we have a lot of the infrastructure already in place. So if you think about what we're doing to drive this incremental business, right, you can think about that in terms of the capital that we announced, but then on the operating expenses, there'll be some incremental variable costs that will come with delivering that experience, but we haven't provided specific guidance. Got it.

Speaker Change: Operating expenses there'll be some incremental variable cost that will come with delivery not experience, but we havent provided specific guidance.

Got it thank you very much.

Kirsten Lynch: Thank you very much. I'll just build on that to reinforce the point that, you know, this is a brand new business model that doesn't exist really in the ski industry right now. So, obviously, there is an awareness and a trial and conversion plan associated like there would be with any business. But we are also quite fortunate, as Angela said, that we're already heavily in the gear business in rental and retail and have substantial infrastructure. So, really connecting the existing infrastructure we have and utilizing it in a different way to deliver a completely different business model we're focused on.

Speaker Change: I'll just I'll just build on that to reinforce the point that you know this is a brand new business model that doesn't exist really in the ski industry right. Now. So obviously there is a an awareness and a trial and conversion plan associated like there would be with any business.

Speaker Change: We are also quite fortunate as Angela said that were already heavily in the gear business in rental and retail and have substantial infrastructure. So really connecting the existing infrastructure, we have and utilizing it in a different way to deliver a completely different business model.

Speaker Change: We're focused on.

Thank you very much.

Kirsten Lynch: Thank you very much.

Speaker Change: Thank you.

Speaker Change: Thank you we'll go next now to Paul Golding at Macquarie Capital.

Paul Golding: We'll go next now to Paul Golding at Macquarie Capital. Thanks so much. Just a quick question to start with on Australia. Just wanted to separate the commentary around the performance over this past season. It seemed like there was a comment in the press release about lower demand. I just wanted to understand where that's coming from. Is that just comping the normalization, they were a season behind post-COVID, or is that relating to some other structural dynamic there?

Paul Golding: Thanks, So much just a quick question to start with on Australia, just wanted to separate the commentary around the performance over this past season.

Speaker Change: Seemed like there was a comment in the press release about lower demand I just wanted to understand where that's coming from is that just.

Speaker Change: Comping.

Speaker Change: The normalization as they were a seasoned behind post COVID-19 or is that related to some other structural dynamics there.

Speaker Change: Thanks, Paul this past season winter season in Australia, we had historic challenging weather conditions and a snow conditions, so that really impacted the demand at the Australian ski resorts.

Kirsten Lynch: Thanks, Paul.

Kirsten Lynch: This past season, winter season in Australia, we had historic, challenging weather conditions and snow conditions. So that really impacted the demand at the Australian Ski Resort. Got it. So aside from demand and I'm sorry, aside from weather and inflation, nothing specific to that lower demand comment that would be separate or structural to that market. No, that's what we're referring to. We were talking about going into the season, we knew that passes were impacted, obviously, on the demand side. And then the conditions on top of that were the, you know, a compounding factor for the for the winter in Australia.

Got it so aside from demand and then I'm, sorry, aside from weather and inflation nothing.

Speaker Change: Specific to that lower demand comment that would be separate or structural to that market.

Speaker Change: No. That's what we were referring to when you were talking about going into this that even we knew that passes we're impacted obviously on the demand side and then the conditions on top of that where the.

Speaker Change: Compounding factor for the for the winter in Australia.

Kirsten Lynch: Got it.

Speaker Change: Got it thanks, Angelo and then.

Angela Korch: Thanks, Angela.

Paul Golding: And then another question around this delayed decision-making due to prior year weather.

Speaker Change: Another question around just delayed decision, making due to prior year weather just wondering if there are any other levers left to overcome some of this delayed decision, making aside from the natural escalators that you have in past price.

Kirsten Lynch: Just wondering if there are any other levers left to overcome some of this delayed decision-making, aside from the natural escalators that you have in past price and better weather conditions in the preceding year, obviously, which wouldn't have you in the delayed decision-making situation with some of the resorts. So, just wondering any other levers you have that you're considering, whether it's bundling or something on the lodging front or otherwise, to help give more visibility earlier in the selling season to what season dynamics might look like.

Speaker Change: And better weather conditions in the preceding you're obviously, which wouldn't have a view in the delayed decision making situation with some of the resorts. So just wondering any other levers you have that youre, considering whether it's bundling or something on the lodging front or otherwise to help give more visibility earlier in the selling.

Speaker Change: Season to what Susan dynamics might look like thank you.

Kirsten Lynch: Thank you.

Speaker Change: Thanks, Paul Yeah, we are ideally we would love to have you know all of our pass holders committed in the spring and we've been quite successful over time and moving our behavior that used to occur one or two weeks before someone decided to show up on their ski vacation and moving that early.

Kirsten Lynch: Thanks, Paul. Yeah, we are, ideally, we would love to have, you know, all of our pass holders committed in the spring. And we've been quite successful over time and moving a behavior that used to occur one or two weeks before someone decided to show up on their ski vacation and moving that earlier and earlier in that selling cycle. This year, as you noted, you know, we did see some delayed decision making coming off of a tough season.

Speaker Change: We are in earlier in that selling cycle. This year as you noted.

Speaker Change: We did see some delayed decision, making coming off of a tough season. So as we head into next year as past sales, we always do a situation assessment on the business what worked what didn't work what are the things that we want to change and that is a dynamic Paul that we always look at which is.

Kirsten Lynch: So as we head into next year's pass sales, we always do a situation assessment on the business, what worked, what didn't work, what are the things that we want to change. And that is a dynamic, Paul, that we always look at, which is, well, what are the different incentives for our guests to commit as early as possible? Does anything need to change? Obviously, those passes for next, the following season, they're not going on sale yet. So I'm not going to divulge any of the things that we're thinking about. But we do look at it every year.

Speaker Change: Or what are the different.

Speaker Change: <unk> for our guests to commit as early as possible does anything need to change obviously those passes for next the following season. They are not going on sale, yet so I'm not going to go bulge any of the things that we're thinking about but we do look at it every year and we're constantly striving to pull that decision making.

Kirsten Lynch: And we're constantly striving to pull that decision making and make it worthwhile for our guests to want to commit to us as early as possible. More to come on that.

Speaker Change: Make it worthwhile for our guests to want to commit to us as early as possible.

Speaker Change: More to come on that.

Speaker Change: Great. Thanks.

Speaker Change: Thank you.

And we will take our final question today from Brent <unk> of Barclays.

Brandt Montour: And we'll take our final question today from Brandt Montour of Barclays. Hey, good afternoon, everybody. Thanks for squeezing me in here. So first question is on Whistler. Kirsten, I want to make sure I'm just not reading too deep into your comments about destination guests being important here. But I guess the question is, I know Whistler has probably a very large relative mix of international guests and guests traveling from afar. And so is there any sort of dynamic whereby, you know, if you don't, there's a lag related to those folks having to book farther out.

Speaker Change: Hey, good afternoon, everybody and thanks for squeezing me in here so.

Speaker Change: So first question is on Whistler.

Speaker Change: I want to make sure I'm, just not reading too deep into your comments about destination guests being important here.

Speaker Change: But I guess the question is I know Whistler has probably a very large relative mix of.

Speaker Change: International guests and guest traveling from a far and so is there any sort of dynamic whereby you know if you don't if theres a lag related to those folks having to book farther out.

Kirsten Lynch: And, you know, if you get too far into the season without seeing a recovery in those bookings, and you might not be able to make that up even in a really good weather season, or is that not really the dynamic?

Speaker Change: And you know if you get too far into the season without seeing a recovery in those bookings and you might you might not be able to make that up even in a really good weather season or is that not really the dynamic there.

Speaker Change: No I can't say I'm anticipating anything like that right now the fact that Whistler blackcomb is off to such a great start with the amount of terrain. That's opened the snow conditions.

Kirsten Lynch: Yeah, I can't say I'm anticipating anything like that right now. The fact that Whistler Blackcomb is off to such a great start with the amount of terrain that's open, the snow conditions. You know, last season was a tough season at Whistler Blackcomb, so getting out of the gates really strong early here.

Speaker Change: You know the last season was a tough season at Whistler Blackcomb, so getting out of the gates really strong early here you know the hope is that that then.

Kirsten Lynch: You know, the hope is that then our international guests and our domestic destination guests are thinking about and planning their ski vacations at this time for the season and that it has a positive impact on it. So at this point, I can't say that, you know, I'm anticipating. We're so early in the season right now. I'm not anticipating that there's, you know, some threshold that we're going to go past this early where it becomes difficult for people to book their vacations. What I am seeing with the Whistler lodging data is with reporting cycle that comes out on that, those lodging bookings, it seems to be improving and moving in the direction that we would want it to.

Speaker Change: Our international guests and our domestic destination guests are thinking about and planning their ski vacations at this time for the season and that it has a positive impact on it. So at this point I can't say that you know I'm anticipating where we're so early in the season right now not anticipating that there is.

Speaker Change: You know some threshold that we're gonna go past this early where it becomes difficult for people to book their vacation, what I am seeing with the Whistler lodging data is with each of our reporting cycle that comes out on that those lodging bookings it seems to be improving and moving in the direction that we would want it to.

So yeah, just wanting to be transparent about what we're seeing in those early indicators and we are fortunate that that early snow.

Kirsten Lynch: So yeah, just wanting to be transparent about what we're seeing in those early indicators and we are fortunate that that early snow is a real positive and hopefully influences people to want to book their vacations.

Speaker Change: It is a real positive and hopefully influence with people to want to book their vacation Sir.

Speaker Change: Okay, Great. That's helpful. And then just following up with a high level question about the East Coast, specifically you know looking back at the last couple of years, obviously really tough weather.

Kirsten Lynch: Okay, great. That's helpful.

Brandt Montour: And then just following up with a high-level question about the East Coast specifically, you know, looking back at the last couple of years, obviously really tough weather. But, you know, looking through the lens of, you know, weather potentially shifting warmer, even permanently warmer, even if it's marginally, I'm curious if in your long-term planning you've thought about adjusting your operating model at any of those mountains to account for that in order to maximize cash flow as well as the strategic importance of those Yeah, Brandt, we are we're always looking at our operations and our operating model across all of the resorts and in particular in the east making sure because that that that geography is relatively new for our company or newer for our company.

Speaker Change: Looking through the lens of weather.

Speaker Change: Weather potentially shifting warmer.

Speaker Change: Even permanently warm or even if it's marginally I'm curious if in your long term planning you've thought about adjusting your operating model at any of those mountains to account for that in order to maximize cash flow as well as the strategic importance of those mountains.

Speaker Change: Yeah, Brian we are we're always looking at our operations and our operating model across all of the resorts and in particular in the east making sure because that's the that that geography is relatively new for our company are newer for our company.

Speaker Change: Our mountain ops teams are constantly learning and looking at what adjustments they need to make given the variability that occurs in the east and then obviously we're focused on geographic diversity, we think being in the east is really important because it has access to some major metropolitan markets, where theres a lot of skus.

Kirsten Lynch: So our mountain ops teams are constantly learning and looking at what adjustments they need to make, given the variability that occurs in the east. And then obviously, we're focused on geographic diversity, we think being in the east is really important, because it has access to some major metropolitan markets, where there's a lot of skiers. And that has a big impact on our pass sales to have that access and that connection in our network. But the geographic diversity of our company to have a strong presence in the Rockies, a strong presence in the West, with Whistler, Blackcomb and Canada, as well as the east to balance out where we have challenges is hopefully the goal, even when there are some weather variability.

Speaker Change: Ours.

And that has a big impact on our pass sales to have that access and that connection in our network, but the geographic diversity of our company to have a strong presence in the Rockies and strong presence in the west with Whistler Blackcomb in Canada as well as the east to balance out where we have challenges is hopefully.

Speaker Change: The goal even when there are some weather variability.

Speaker Change: Great. Thanks, everyone.

Kirsten Lynch: Great.

Kirsten Lynch: Thanks, everyone.

Kirsten Lynch: Thanks, Brandt.

Speaker Change: Thanks Brent.

Speaker Change: That is all the time, we have for questions for Davis Lynch back to you for any closing comments.

Kirsten Lynch: That is all the time we have for questions today, Ms. Lynch. Back to you for any closing comments. Thank you, operator.

Speaker Change: Thank you operator. This concludes our fiscal 2025 first quarter earnings call. Thanks to everyone, who joined US today, Please feel free to contact Angela or me directly should you have any further questions. Thank you for your time this afternoon and goodbye.

Kirsten Lynch: This concludes our fiscal 2025 first quarter earnings call. Thanks to everyone who joined us today. Please feel free to contact Angela or me directly.

Kirsten Lynch: Should you have any further questions, thank you for your time this afternoon and goodbye.

Thank you Ms. Once again that does conclude today's Vail resorts fiscal first quarter 2025 earnings conference call and webcast. You may disconnect. Your lines at this time and have a wonderful day goodbye everyone.

Operator: Thank you, Ms. Lynch.

Operator: Again, that does conclude today's Vail Resorts Fiscal First Quarter 2025 Earnings Conference Call and Webcast. You may disconnect your line at this time and have a wonderful day. Goodbye, everyone.

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Operator: Thanks for watching!

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