Q2 2025 Vail Resorts Inc Earnings Call

March 10, 2025

Steve Quinn, April Putney, Michael Graham, Daniel

David Katz, Paul Golding, Paul Golding, David Katz

Speaker Change: All sights on hold. We do appreciate your patience and holding and ask that you please continue to stand by. We should be getting started in approximately one more minute. Thanks again everyone.

Speaker Change: Please standby we're about to begin.

Speaker Change: Good afternoon, everyone and welcome to the Vail resorts fiscal second quarter 2025 earnings Conference call. Just a reminder, today's call 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.

Speaker Change: Star one on your telephone keypad and if your duty to remove yourself from the queue. Please 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 lastly, if you should need any operator assistance during the call today. Please press star zero with that I'll turn things over to <unk>.

Rob Lynch: <unk> Lynch Chief Executive Officer of Vail Resorts. Please go ahead ma'am.

Rob Lynch: Thank you good afternoon, everyone welcome to our fiscal 2025 second quarter earnings Conference call.

Speaker Change: Joining me on the call. This afternoon is Angela courts, our Chief Financial Officer.

Speaker Change: 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 natural future actual future results may vary materially forward looking statements in our press release issued this afternoon, along with our <unk>.

Speaker Change: On this call are made as of today March 10, 2025, and we undertake no duty to update them as actual events unfold.

Speaker Change: Today's remarks are all also include certain non-GAAP financial measures reconciliations of these measures are provided in the tables included with our press release.

Speaker Change: 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 com.

Speaker Change: Let's turn to our fiscal 2025 second quarter results. We are pleased with our overall results for the quarter with 8% growth in resort reported EBITDA compared to the prior year.

Speaker Change: Our results reflect the stability provided by our season pass program our investments in the guest experience and the strong execution of our teams across all of our mountain resorts.

Speaker Change: Second quarter visitation at our North American resorts was slightly above prior year levels with the benefit of improved conditions, partially offset by the expected continued industry demand normalization.

The shift in destination guest visitation for the spring.

Destination guest visitation at our Western North American destination Mountain resorts was below prior year levels, which we believe was driven by the continued shift in historical visitation patterns across the ski industry to later in the ski season, which increased after challenging early season conditions in the prior year.

Speaker Change: Local guest visitation was in line with expectations as conditions across our North American resorts improved from the prior year and returned to more typical conditions.

Speaker Change: Ancillary spend per destination guest visit was strong across our ski school and dining businesses throughout the quarter.

Speaker Change: While overall revenue and our ancillary businesses was impacted by the lower mix of destination visitation.

Speaker Change: Moving to our resource efficiency transformation plan Vail resorts is on track to achieve its two year resource efficiency transformation plan, which was announced in our September 2024 earnings.

Speaker Change: True scaled operations global shared services and expanded workforce management. The company is on track to improve organizational effectiveness and scale for operating leverage as the company grows globally and deliver the expected cost efficiencies in fiscal year 2025, along with the 100.

Speaker Change: There's a million dollars in annualized cost efficiencies by the end of its fiscal 2026 fiscal year.

Speaker Change: Now I would like to turn the call over to Angela to further discuss our financial results season to date metrics and fiscal 2025 outlook.

Angela Courts: Thanks, Kristen and good afternoon, everyone as Christian mentioned this quarter's results were driven by the benefit of improved conditions, partially offset by the expected continued industry demand normalization and the shift in destination guest visitation to the spring net income attributable to Vail resorts was 240.

Angela Courts: $5 $5 million or $6.56 per diluted share for the second quarter of fiscal 2025 compared to net income attributable to Vail resorts of 219 at point $3 million or $5.76 per diluted share in the same period in prior year.

Angela Courts: Resort reported EBITDA was $459 $7 million for the second fiscal quarter, which did include $2 $9 million of one time costs related to the previously announced two year resource efficiency transformation plan and zero point $1 million of acquisition and integration related expenses, which compares to <unk>.

Angela Courts: <unk> reported EBITDA of $425 million in the same period in the prior year, which included $2 $1 million of acquisition related expenses.

Angela Courts: Turning to our season to date metrics. The reported ski season metrics are for the period from the beginning of the ski season through Sunday March 2nd 2025, and compared to prior year period through March 3rd 2024, and now for the company's North American destination Mountain resorts and regional ski areas, excluding the results of Australia.

Angela Courts: And European resorts in both periods.

Angela Courts: The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments.

Angela Courts: Susan today total skier visits were down two 5% compared to the fiscal year of 2024 season to date period.

Angela Courts: Susan today total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period was up four 1% compared to the fiscal year 2024 season to date period.

For our ancillary business results Susan today at Ski School revenue was up 3% dining revenue was up three 1% and combined retail and rental revenue for North American resort and scary all locations with a down two 9% compared to the prior year period.

Angela Courts: Similar to the drivers in the second quarter. Susan Today result through March 2025 reflect a strong local visitation from the improved conditions early season, and with destination visitation impacted by the industry demand normalization and unexpected shifts in destination guest visitation at the patient to the spring.

Angela Courts: And Florida spend for destination guests visit was strong across the company's ski school dining businesses with overall performance, reflecting the higher mix of local visitation during the period.

Angela Courts: Now turning to our outlook for fiscal 2025, excluding.

Angela Courts: Excluding a $7 million negative impact from the change in foreign currency rates. The company's resort reported EBITDA guidance midpoint for fiscal 2025 is unchanged from the original guidance provided on September 26 2024.

Angela Courts: For the remainder of the season. The company is expecting improved performance compared to the season to date period, including a continued shift in destination visitation patterns to later in the ski season and this is based on a significant amount of pre committed guests our current module bucking trends and historical gas behavior patterns.

Angela Courts: The company now expects net income attributable to Vail resorts for fiscal 2025 to be between $257 million and $309 million. The company expects resort reported EBITDA for the fiscal 2025 period to be between $841 million and 877.

Angela Courts: <unk>.

Angela Courts: Consistent with the original fiscal 2025 guidance issued on September 26, 2020 for the updated guidance includes an estimated $15 million in one time cost related to the multi year resource efficiency transformation plan and an estimated $1 million net of acquisition and integration related expenses specific to crime.

Angela Courts: Donna.

Speaker Change: And it doesn't compare to the original guidance. The updated guidance includes an estimated 7 million dollar impact from foreign exchange rates.

Speaker Change: At the midpoint the guidance implies an estimated resort EBITDA margin for fiscal 2020 five to be approximately 28, 8% or 29, 3% before the one time costs related to the resource efficiency transformation plan.

Speaker Change: The updated guidance also assumes a continuation of the current economic environment industry normalization to pre COVID-19 guest behavior and normal weather conditions for the remainder of the 'twenty 'twenty four 'twenty 'twenty, five North American and European ski season, and the 2025 Australian ski season.

Speaker Change: In addition, the updated guidance reflects the foreign currency exchange rate volatility as compared to the original assumptions.

Speaker Change: The updated guidance assumes that currency rates as of March seven 2025, including an exchange rate of 70 sense between the Canadian dollar and U S. Dollar related to the operations of Whistler Blackcomb in Canada and exchange rate of 63 cents between the Australian dollar and the U S dollar related to the operations of parish or false Craig in HOKA.

In Australia.

Speaker Change: And an exchange rate of $1 13 sense between the Swiss franc and the U S dollar related to the operations of honor about securing and Crown Montana in Switzerland, and does not include any potential impacts related to future fluctuations in foreign currency exchange rates, which may be impacted by tariffs trade disputes or other factors.

Speaker Change: As of January 31, 2025, the company's total liquidity as measured by total cash plus revolver availability and delayed draw term loan availability was approximately $1 $7 billion.

Speaker Change: This includes $488 million of cash on hand, and $509 million of U S revolver availability and $450 million of U S delayed draw term loan availability under the Vale Holdings credit agreement.

Speaker Change: $204 million of revolver availability under the west of our credit agreement.

Speaker Change: On January 27th 2025, the company completed an amendment of its fell holdings credit agreement, which increased the U S revolver by an incremental $100 million.

Speaker Change: $600 million and provided an incremental $450 million term loan facility in the form of a delayed draw term loan, which the company can draw upon at anytime at its option until January 2026.

Speaker Change: When any unused amount of the delayed draw term loans will expire.

Speaker Change: Additionally, on January 32025, the company repurchased approximately $50 million of zero percent convertible senior notes for an aggregate get cash repurchase amount of approximately $48 million.

Speaker Change: Representing a 4% discount to par value.

Speaker Change: Following the closing of these repurchases the company has $525 million zero percent convertible senior notes outstanding which mature on January 1st 2026.

Speaker Change: Proceeds from any borrowings on the incremental term loan facility and an increase in our revolver credit loan commitment both of which are currently undrawn are available to be used to refinance the companys zero percent convertible senior notes or for other general corporate purposes.

Speaker Change: Until the convertible notes mature or otherwise refinanced or repurchased the company will continue to benefit from the zero interest coupon.

Speaker Change: Overall the company continues to have a strong balance sheet as of January 31, 2025, the company's net debt was two five times its trailing 12 months total reported EBITDA.

Speaker Change: The company declared a quarterly cash dividend on Vail resorts common stock of $2.22 per share.

Speaker Change: The dividend will be payable on April 10th 2025 to shareholders of record as of March 27 2025.

Speaker Change: In addition, the company repurchased approximately 0.1 million shares during the quarter and an average price of approximately $196 per share for a total of $20 million.

Speaker Change: The company has one 5 million shares remaining under its authorization for share repurchases.

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

The company has a strong balance sheet and remains focused on returning capital to shareholders, while always prioritizing the long term value of our shares.

Speaker Change: Now I will turn it the call back to care for them.

Speaker Change: Thank you Angela we are dedicated to delivering an exceptional guest experience and will continue to prioritize reinvesting in the experience at our resorts, including consistently increasing capacity through lift terrain and food and beverage expansion projects along with investments in technology to further elevate the gas.

Speaker Change: It's an employee experience at our resorts.

Speaker Change: The company expects its capital plan for calendar year, 2025 to be approximately $198 million to $203 million in core capital before a $45 million of growth capital investments at its European resorts, including $41 million that undermine a dream and 4 million.

Speaker Change: At Crown, Montana, and $6 million of real estate related capital projects to complete multiyear transformational investments and the key based area portals Ah Breckenridge peak eight and Keystone River run.

Speaker Change: In planning investments to support the development of the West Lion's head area enjoy force base base village at Vail Mountain.

Speaker Change: 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.

Speaker Change: T capital investments include the launch of two multi year transformational investment plans at Park City Mountain and Vail Mountain significant lift snowmaking and restaurant upgrades at Andre months of drilling a new six pack lift at parish or new functionality for the my epic App.

Speaker Change: More advanced AI capabilities for my epic assistant and technology investments across the company's ancillary businesses.

Speaker Change: Our guests are passionate about the mountains. They love and so are we our investments in innovation to set the standard for the guest and employee experience across the ski industry. Our business model has made the sport more accessible and created unprecedented stability amid climate change for our shareholders Mountain communities.

Speaker Change: Entities and the sport more broadly.

Speaker Change: Throughout this journey, we have achieved numerous successes as well as learn valuable lessons.

Speaker Change: Bell resorts has a proven track record of turning challenges into opportunities for innovation and enhancement, we have listened to our guest feedback and are proud of the progress. We have made in the following key areas, reducing friction in the guest experience over the last 10 years, we've invested nearly $2 billion and capped.

Speaker Change: It'll improvements, including more than 30, new less in the last five years our.

Speaker Change: Our award winning digital innovations such as mobile past my epic assistant and myopic here had significantly reduced friction in the guest experience. These investments have contributed to a decrease in Lyft line wait times year over year for the last three seasons.

Speaker Change: This season lift lines lasting more than 10 minutes have occurred approximately 3% of the time, including during weekends and holidays.

Speaker Change: Also accessibility the introduction of products such as epic day pass provide exceptional value to even the occasional skier.

Or snowboarder, keeping the epic pass unparalleled in access and unmatched in value.

Speaker Change: To further illustrate and adult epic one day pass for next season is available for as low as $56 significantly lower than a lift ticket.

Speaker Change: Also the employee experience our frontline team members are key to creating an experience of a lifetime by investing in their experience. We are investing in the guest experience continued investment in wages and benefits have transformed talent into a strategic competitive advantage leading to the highest return rate.

Speaker Change: Frontline talent in our company's history.

Speaker Change: And stability, ensuring the ski industry not only survive, but thrive is crucial to our business guests employees and the communities in which we operate our continued focus on growing our season pass program has created unprecedented stability for our industry and our recent financial results highlight the stability.

Speaker Change: Through the second quarter guest satisfaction scores across our destination mountain resorts and regional ski areas were strong and grew relative to scores and the prior three years, Excluding Park City Mountain, where the guest experience during the 13 day patrol Union strike was not the.

Speaker Change: We wanted to provide.

Speaker Change: Turning to pass sales the company launched pass sales for the 'twenty to 'twenty five 'twenty 'twenty six season with a wide range of advanced commitment products, including the epic pass, which offers unlimited unrestricted access to Vail resorts 42 owned and operated mountain resorts and access to additional partner resorts across North America, Japan and Europe.

Speaker Change: And the epic day pass, which allows skiers and riders to build their own paths.

Speaker Change: And provides up to 65% savings compared to lift ticket prices.

Speaker Change: New for the 2025, 2026th season access to Burbank for valleys is expanded to more epic passes with five consecutive days of unrestricted access included on the epic pass and epic adaptive path and five consecutive days access with some restricted dates included on the epic local pass epic.

Speaker Change: Australia pass and the epic Australia adaptive past.

Speaker Change: On average pass prices have increased 7% over the prior season pass launch price and continue to represent tremendous value to our guests further supported by our compelling network of mountain resorts are strong guest experience created at each mountain resort and our commitment to continually and continually investing in the guest experience.

Speaker Change: We appreciate the loyalty of our guests visiting all of our mountain resorts. This season and for the continued loyalty of our pass holders that have already committed to next season.

Speaker Change: In closing I would like to thank all of our employees.

Speaker Change: Especially our frontline employees for their passion hard work and commitment to creating an experience of a lifetime for our guests.

Speaker Change: The guest experience that our employees created our mission as a company and lies at the center of our success. We all look forward to welcoming guests to our mountain resorts. This spring at this time, Angela and I are happy to answer your questions. Operator, we are now ready for questions.

Thank you very much Mr Lynch, ladies and gentlemen at this time if you do you have any questions. Please press star one and you can remove yourself from the queue by pressing star too again, we ask that you. Please limit yourself to one question and one follow up we will go first this afternoon to Shaun Kelley of Bank of America.

Shaun Kelley: Hi, good afternoon, thanks for taking my questions.

Shaun Kelley: Angela can we just start with kind of the core conditions on the ground. Obviously, if we if we look at the season to date metrics provided it looks like visitation actually slowed a little bit in North America from what was provided the early season update so but you're right.

Shaun Kelley: You've talked a lot about things improving from here for our on balance. So could you just walk us through whether it's calendar and timing of spring breaks we know Easter falls quite late.

Shaun Kelley: What kind of improvement do you need to see should we see it more on the visitation side or more on the mix side, just maybe help level set expectations from here and maybe a little bit of color about what you saw in February just to help us kind of get a sense of how much things need to improve to hit the numbers from here. Thanks.

Shaun Kelley: Thanks, Sean Thanks for the questions first I'll talk about conditions right now when we look at.

Speaker Change: Uh huh.

Speaker Change: Our resorts were looking I, we feel good about the conditions that we have right now I would say we have a mix. We have some resorts that are right at historical normal snow pack. We have some that are slightly below slightly below and some that are slightly above but I'd say overall, we are in what we would consider would be the range of historical.

Speaker Change: Normal condition rigor.

Speaker Change: Regarding Q2 versus the season to date metrics, which included February So Q2, our visitation at our North American resorts was slightly above prior year levels. So benefited from the improved conditions.

Speaker Change: Offset a little bit by as we talked about at the beginning of our fiscal year. The continued industry demand normalization and some shifts that we're seeing in guest behavior into the spring vacation timing for destination guests. So Q2 visitation was above prior year. When you include February we did.

Speaker Change: C <unk>.

Speaker Change: February the visitation contracted versus prior year, which we expected December and January were.

Speaker Change: Easier year over year comparisons given the significant conditions impact that we had last year. So February was a little bit more challenging and of course, we we do see that industry demand normalization when we look forward to spring.

Speaker Change: There's a couple of things that we're looking at and that is really tied to we think our conditions are in good shape. Our local visitation has been where we expected it to be it is really that we are looking.

Speaker Change: Looking at the indicators for destination guest visitation and Theres a couple of different indicators that we're looking at one is the significant base of pre committed guests, we have which are pass holders. So we can look at our destination pass holders and we can see who has shown up who has not shown up who has days.

Speaker Change: Remaining left on their path to use so we factor that into our assumptions for the remainder of the year. We're also looking at lodging booking trends.

Speaker Change: For the spring time period, not just in our owned and operated but also just in the market overall, where we have our mountain resorts, which.

Speaker Change: Which factors into the forecast and then there has been a long term.

Speaker Change: Behavior your shift in the ski industry of visits moving more and more into the spring time period, presumably because it's sunny and warmer and Bluebird sky isn't good conditions and so we tend to see guests have a strong desire to come during that time period, and that's been going on for over a decade in the ski industry and so.

Speaker Change: That's factored into the assumption as well.

Speaker Change: Perfect. Thank you and then maybe just as my follow up and kind of just to zoom out obviously in the prepared remarks, a bit more color than we've historically gotten as it relates to <unk>.

Speaker Change: Just some of the kind of key constituencies and a little bit of your message out there.

Speaker Change: I'm curious when you talked about guest satisfaction scores are a little bit probably about employee satisfaction, where you're at with the frontline team members lift lines. So as we zoom out.

Speaker Change: Do you think theres room, or the need for a little bit of a bigger let's call. It pivot as it relates to sort of getting your narrowed over telling your side of the story out there just.

Speaker Change: Obviously, there's a lot that happen around park city, but it dates.

Speaker Change: Further than that as we think about employees the mountain towns and even the consumer it feels like with where we're at on social media could you just help us.

Speaker Change: Very big picture, how are you thinking about that are there efforts are underway to maybe reengage. Some of those core constituencies and maybe telling your side of the story, a little differently or a little bit better.

Speaker Change: Thanks, Sean Yeah, I, absolutely feel that way I mean, our guests are incredibly passionate about.

Speaker Change: Our mountain resorts and the experience that they have there and we're very fortunate to have a passionate guests face and we're not always perfect and so sometimes and I think it's key for us to acknowledge when net things don't go the way that we had hoped and make sure that we're taking action to address those things and there are challenges.

Speaker Change: That we face and I do think that part of the reason to share those remarks is to acknowledge that we're constantly listening and taking action as we should be but also to make sure that we.

Speaker Change: Continue to share the narrative that Yeah Park City Mountain and patrol Union strike. The 13 day strike was very challenging it did not we did not deliver the guest experience that we wanted to.

Speaker Change: Absolutely acknowledge that and take action on it but also acknowledge that that was not indicative of the guest experience at our other resorts during that timeframe and that our employee engagement our employee execution of the guest experience and our guest experience scores.

Speaker Change: Excluding park city during that timeframe were very strong and it is important that we get that message out. So yes. Thank you for asking.

Speaker Change: Thank you.

Speaker Change: Thank you we'll go next to Jeff Stanchion at Stifel.

Jeff Stanchion: Hey, good afternoon occasion, and Angela Thanks for taking my questions, maybe starting out here on some of the more recent demand trends that you've been seeing we've been hearing that there's some softening in room rates and visitation trends at some of the U S. Resorts that are closer to the Canadian border just as the consumer out there starts to respond to the proposed tariffs and some of the rhetoric coming out of Washington.

Jeff Stanchion: I'm just curious is this something that you have seen recently at any of the resorts on I guess on either side of the border and then similarly, if you could add some color on just how the broader international guests has behaved. This season in light of all the FX, the political and the macro volatility that'd be helpful. Thanks.

Jeff Stanchion: Thanks, Jeff.

Ben: Ben we monitor very closely the visitation trends as well as the lodging and booking trends I can't say that right now we've seen a very overt or explicit reaction to the tariffs. We will continue to monitor that very closely.

Ben: Think that the you know our largest international visitation resort is Whistler blackcomb and when we look at Whistler Blackcomb. We are seeing it performed similarly to the other resorts in our portfolio, where we have strong local visitation the destination visitation has not been to wear.

Ben: There, we would want it to be and of course, because they have such a strong international visitation. There is a bit of a longer planning or booking curve associated with that I think in December we have called out that the bookings were lagging prior year levels, we have seen the whistler blackcomb bookings improved through the season.

Ben: But they are still lagging our U S resort markets potentially.

Ben: In reaction to the really tough year that they had last year and we continue to make sure that we're building the awareness of how strong the conditions are there and encourage our international and domestic destination guests to come visit.

Ben: That's great and you do have some from destination visitation coming up next week, so hopefully that helps.

Ben: And then for my follow up just turning over to the.

Ben: The epic pass launch for the upcoming season.

Speaker Change: It sounds like based on the commentary in the prepared remarks that piece of kind of core destination skier visitation. It does seem to be back on track. This season, and we'll kind of monitor and see how the remainder of the season plays out but it does seem to be back on track back to normalize. So my question is is it your expectation that pass sales units get back to <unk>.

Speaker Change: This year or are there other kind of multi year headwinds are puts and takes that we should be contemplating just as we think about the trajectory of the past sales from me here just any thoughts there would be great. Thanks.

Jeff Stanchion: Thanks, Jeff Yeah.

Jeff Stanchion: We continue to believe that pass has plenty of room and opportunity for growth because of the database that we have to talk to.

Jeff Stanchion: I guess, one to one because of the upside potential in the east in destination markets and then eventually long term in Europe as well.

Jeff Stanchion: I would say that we will probably have a better perspective, when we get through the season right. Now yes, we do expect to continue to grow that business in terms of like any multiyear normalization impact right. Now we are assuming that we took the normalization impact in.

Jeff Stanchion: This prior sell cycle and if we see any indications otherwise, we'll make sure that we share that.

Speaker Change: That's great. Thanks, very much thanks.

Speaker Change: Thanks, Jeff.

Speaker Change: Well go next now to Megan Clark with Morgan Stanley.

Megan Clark: Hi, good evening. Thanks, so much I mean, if you wanted to ask Sean's first question on on visitation, just a bit differently and in January you did say in the release that you expected improved performance compared to the season to date period. Obviously, you said February contracted that was as you expected, but sitting here.

Megan Clark: Today, you are still saying you expect improved performance and you didn't change the guide so putting that together is it fair to assume that you'd still expect visitation to improve from that down two and a half present today to something positive I'm, just thinking relative to the flattish in January or has.

Speaker Change: What you're expecting for overall visitation, maybe changed a bit and there was something else offsetting maybe some conservatism, that's allowing you to maintain the guide today.

Speaker Change: Thanks, Megan I'll I'll take that one so yeah. We did expect that the comparison in February we knew right. That's on conditions in the prior year ahead improved so we knew that that would be a tougher comp. If you will than the Q2 period. So as we talked about kind of that progression. That's what we where we were.

Speaker Change: Into February the improvement that we're expecting for the rest of the season, it's really an improved trend from the trend currently in citizens, so that down to two and a half per cent, but we're not expecting to turn positive for the whole year, though and so we're just saying that this shift in destination right behavior, that's coming later will improve it.

Speaker Change: And what we've seen currently through the season to date period.

Speaker Change: Yeah.

Speaker Change: Meg and not just to build on that the reason why we're not expecting it to turn positive again as the underlying core assumption of.

Speaker Change: A normalization of guest participation guest frequency relative to pre COVID-19. So I just wanted to make sure I reiterated that.

Speaker Change: Yeah. That's perfect. Thank you so much and then maybe a follow up on on pass sales to understanding you'll have a bit more you just launched them and you'll have more perspective later in the season, but I guess, if we just take a step back.

Speaker Change: Had epic pass a lot of data you've been selling passes for maybe 15 years at this point maybe longer than that.

Speaker Change: Do you think about just some of the reasons dynamics I would just be curious to get your perspective as to how they may impact of past deals given what you've seen historically and the things I'm, referring to are there clearly does seem to be some heightened concern around the consumer and think Delta said Tonight, there, they're seeing softer demand and you acknowledged the park city strike.

Which had some impact on the guest experience and then the offsetting as maybe you know conditions had been relatively strong. So there there could be some pent up demand.

Speaker Change: So if you look back historically kind of thinking it all those puts and takes I'd just be curious whether you have a view on how some of those dynamics might play into Pos sales as we had into into the selling season in the next couple of months.

Speaker Change: Yeah, I'll speak about the park city piece first since you brought that up I mean, we are a part of the reason why we immediately took action to provide those guests with a credit is to try to address that while the resort was opened and we did not shut down.

Speaker Change: The resort when control went on strike.

Speaker Change: We did not deliver the full experience that we would have expected to have given the snowpack in conditions that existed at park City Mountain and so.

Speaker Change: Our hope is that we are showing their commitment to those pass holders that we heard them that it was not a good experience and they have credits they can apply.

Speaker Change: [noise] toward a pass next year and that we can earn back their loyalty I think it's really critical that we earn back their loyalty and that we acknowledge that it was not the experience that our team or any of us would have wanted to.

Speaker Change: Divide in terms of.

Speaker Change: Sumer demand or softness going on in the macroeconomic environment I think hard to forecast exactly what that impact will be at this point when we look at certainly that conditions and if we end the season with the visitation and the utilization.

Speaker Change: <unk> of the past.

Speaker Change: It gives me that we expect to end with.

Speaker Change: I would certainly feel optimistic that are on a full year basis that we will be set up to have a strong selling season going into pass sales for next winter.

Megan Clark: Great. Thanks, so much gerson thanks Megan.

Speaker Change: Thank you we'll go next now to David Katz with Jefferies.

Speaker Change: Mr. Katz. Your line is open you might be on mute.

Speaker Change: Hearing no response, we'll move on now to lorem vascular SKU at BNP Paribas.

Speaker Change: Good afternoon, and thank you very much for taking my question Christian I think you had mentioned in the prepared remarks that noncash revenues increased about 18%, primarily driven by east coast presentation. I'm curious to know what really drove that growth. If you could unpack that a little bit.

Speaker Change: You saw on the flipside, if you saw any impact on the on the.

Speaker Change: On the negative perspective on the brutally cold weather that we faced over the last several months.

Speaker Change: On the East coast.

Hi, Lorraine. This is Angela I'll I'll take that one we did see improved conditions have a really good response at our eastern U S. Resorts. So we had you know what.

Speaker Change: An increase there of non pass lift to revenue we were up 17, 5% primarily from East U S resorts and of course, the pricing that we take across the portfolio and so we did see them respond to conditions and you know those conditions have some severe events that come and go and that does happen throughout the season, but.

Speaker Change: You know that that always just usually affects the timing of when those visits happen and overall I would say we were set up with a much more typical conditions framework across our eastern resorts.

To build on that opened just to build on that David I think you know that certainly having.

Speaker Change: That visitation in the east at those resorts sets us up in a good spot as we head into next year, and we think about the addressable market for passengers as well.

Speaker Change: Okay helpful and then I saw that rental.

Speaker Change: <unk> were down about 1% the dining was up 11 school was up.

Speaker Change: Can you, maybe unpack that a little bit like whats happening there and how should we think about those three line items going forward.

Speaker Change: Yeah, when we look at our ancillary businesses are destination guest spending on ancillary has been strong. The overall flow through is impacted by the mix that we've been talking about where we've had a higher mix of local visits versus destination visits and that impacts it.

Speaker Change: Rental and retail is performing a little bit differently than some of our ancillary businesses. As you probably noticed that is impacted by the gas mix toward locals as those guests are much more likely to own their gear, but also while our capture among locals has been strong local guests.

From a product mix perspective, or purchasing different rental packages and products that we would see it's dental the destination mix was higher and then it's such a competitive business versus our ski school in our restaurants on the mountains or rental retail business is incredibly competitive. So there are certainly some competitive in.

Pricing dynamics that impact that business as well that makes it look different than some of the other ancillary.

Very helpful. Thank you very much.

Thank you.

Speaker Change: Thank you we'll go next to Patrick Scholes at true Securities.

Speaker Change: Great. Thank you good afternoon, everyone.

Speaker Change: Hi, Patrick can I like Hello.

Speaker Change: Let's just get an update on <unk>.

Speaker Change: Your current level of commitment to continuing to pay the dividend. Thank you.

Speaker Change: Hi, Patrick Yes, we do you know you've seen us typically reevaluate our dividend level and we reaffirmed our dividend level for the quarter, which I think demonstrates our commitment to maintaining that current level really when we look at it right. We stepped back and that's always been our primary method, but we're always considering what are those.

Speaker Change: Alternative uses that we could you know.

Speaker Change: Apply for our capital and that includes looking at the value of our shares and so we do reevaluated every quarter, but we remain committed to the current level, we feel very confident in the level of free cash flow generation of the business and so you know I think the dividend show that that commitment and that stability.

Speaker Change: Okay. Thank you and secondly, you talked about.

Speaker Change: Hum.

Speaker Change: Improving guest satisfaction scores whenever you go to called out whereas improvement in lift lines.

Speaker Change: Where do you what areas do you think need work.

Speaker Change: Park City, aside and I did see.

Speaker Change: Keystone Labor was.

Speaker Change: Regroup the contract for that that looks good but you know what.

Speaker Change: Familiar.

Speaker Change: Pain points that you would like to work on or you are working on and we'd like to see improve.

Speaker Change: Especially customer satisfaction. Thank you.

Speaker Change: Yeah, absolutely. Thanks for the question, Patrick and Patrick mentioned, this but I'll just reiterate them, while the park city.

Speaker Change: Mountain Patrol Union strike was very challenging we did ultimately reach an agreement and at the same time. Shortly thereafter, we did reach an agreement with our Keystone patrol Union as well as our crested Butte lift maintenance unit and those reached contract agreements that were quite pleased with as well in terms of the guest experience.

Speaker Change: Waiting in line, there's always a source of frustration for guests they want to get out of the mountain and they want to enjoy themselves, whether they're on vacation or their locals either way.

Speaker Change: Sanding in line as a source of frustration and so what you see us doing is making investments.

Speaker Change: <unk> really tried to address that if you go all the way back to giving full transparency that will lift line wait times across our mountains, even predicted Lyft line wait times that is really designed to help people navigate that.

Speaker Change: Investments, we've made in lift, but even things like mobile path, having your lift ticket or your pass on your phone means you don't have to stop stand in that ticket window.

Speaker Change: Line My Epic gear is another good example of that standing in line to rent year. It can be incredibly frustrating and not a great experience and so really being able to manage your gear at your fingertips on an app from start to finish what they are do you want where do you want it when do you want it.

Speaker Change: If you want to swap out there putting all of that at your fingertips.

Speaker Change: A lot of what you see us doing is looking for ways to improve the guest experience and take the friction out of that experience and make it so that our guests can get on the mountains.

Speaker Change: As fast as they possibly can without having to stand in multiple lines, whether it's the ticket line or the lift line or standing in line for gear.

Speaker Change: Patrick.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: We'll go next now to Chris <unk> at Deutsche Bank.

Chris: Hey, good afternoon, <unk> and Angela.

Speaker Change: Wanted to ask about kind of long term structural margins I know you're guiding resort.

Speaker Change: Just under 29% this year.

Speaker Change: I know.

Speaker Change: So on the 30th.

Speaker Change: Prior to Covid, what what has to happen to get back. There is it is it a cost issue I know you talked about the efficiency plans. So maybe that most of the answer but is there anything on pricing.

Speaker Change: Larry or just where you are running business.

Speaker Change: That needs to happen to get there. Thanks.

Speaker Change: Thanks, Craig for the question Yeah. We are this year, we're guiding to 29, 3% margin when you take out the onetime costs from the resource transformation.

Speaker Change: When you actually look at that relative to pre Covid. It is really in line with where we were at 19 when you adjust for the acquisitions that have changed the portfolio mix over that time, but we do think from this point forward. There's there's an ability to increase margins both from the normal operating leverage from the fact that we do take pricing typically.

Speaker Change: Above inflation, and we have strong flow through of our ancillary business to the bottom line those things will help on their own added to that is the resource transformation plan that we expect to be.

Speaker Change: At that 100 million level and when you step back to think of that that's a that is a significant change in kind of our cost structure to.

Speaker Change: To help us scale globally that will be at that run rate by the end of the next fiscal year and so both of those are what we see is margin drivers moving forward.

Speaker Change: Okay.

Speaker Change: Helpful. Thanks, Thanks, a lot.

Speaker Change: A follow up.

Speaker Change: But a lot of questions about the season.

Speaker Change: Season pass launch for next year.

Speaker Change: I know, 7% kind of was the pricing. My question is pretty simple is that based on just some kind of a home.

Speaker Change: We got him to your internal expectations for cost increases or is that more of just trying to get a sense for what the.

Speaker Change: If you're willing to share any color on kind of the formula behind that.

Speaker Change: It would be would be great. Thank you.

Speaker Change: Thanks, Chris Yes, we took price increases.

Speaker Change: Pretty consistently across the board, 7% on past going into next season.

Speaker Change: And we look at a lot of different things, but what you see us doing pretty consistently over many many years is.

Speaker Change: Looking at what is inflation and pricing above inflation because of the experience we deliver them because of the investments that we make we also obviously look at our renewal rates by guest type guest segments tenure of pass holder and we have a pretty extensive price elasticity data.

Speaker Change: On the past business that we can look at that helps us make decisions. So when you look at the 7% its really a combination of all those different factors, but I think ultimately at a high level pretty consistent with how you've seen us.

Speaker Change: Rice over the long term, which is several points above inflation and looking at inflation goods.

Speaker Change: Goods inflation and also services inflation.

Okay very good thanks Angela.

Speaker Change: Thanks, Chris.

Speaker Change: Sure.

Speaker Change: Thank you we'll go next now to been shaken at Mizuho.

Speaker Change: John just wanted to touch back on Park City canyons, obviously guests who were impacted by the strike received a discount on future passes understanding. It's early is there any color regarding retention statistics or success of this program and then on a gross basis is there any way to quantify the impact of this year's EBITDA I know the cost will be allocated.

Speaker Change: The FY 'twenty four 'twenty five.

Speaker Change: Thanks, Pat ban I think it's a little bit early to be able to quantify the impact. Although you know we have our own.

Speaker Change: Estimates of what we expect the impact would be the and just to provide clarity for everyone. We provided credits up to 50% to apply towards the purchase and this is for epic pass epic day pass lift tickets to apply toward a path for next year with a minimum credit for pass holders.

Speaker Change: 25% of the total purchase price of their 'twenty 'twenty four 'twenty five past.

Speaker Change: So we have our own internal estimates are and you know we have qualitative feedback from E mails that we've gotten from guests and reaction.

Speaker Change: Both positive and of course, there are some gas where you know they were hoping for more expecting more and then there's guests that this exceeded their expectations. So theres a mix I think we'll know more as we go into that past selling cycle.

Speaker Change: What to expect or what what we're seeing in terms of the retention of those pass holders in terms of the cost of the guests recovery. We are not disclosing the specifics on the cost of that but I would say that you know.

Speaker Change: It is not material and it is included in our guidance that we've provided.

Speaker Change: Okay understood and then this is basically is the first real season of epic here are there any financial or customer usage statistics, you can share to judge the success.

Speaker Change: The success of the new platform and that is $25 26 still kind of like a beta year or are fully rolled out and then lastly is there anything you are changing next year based off of what you experienced this year. Thanks.

Speaker Change: Thanks, Ben Yeah happy to talk about my Epic gear. This was year one of building out this brand new approach to gear, where you can get your gear at your fingertips in the App.

Speaker Change: And what we'd say is we're building awareness and trial as you would in any year one of a new business a couple of learnings one or the guest experience and the feedback we've gotten about the guest experience has been very strong and we're quite pleased with that I'd also say that it has high incremental Lady and what I mean by that.

Speaker Change: Got it.

Speaker Change: Among the members of the program, but we are seeing very low cannibalization of traditional or our existing traditional rental gas and high incrementally in terms of bringing in new guests or even gear owners, which we're really pleased to see because that was the business thesis. We've had we did limit the membership.

Speaker Change: This year, because it's year, one and we wanted to make sure we can execute and we expect to be at about 40 to 50000 members for this first year in terms of expansions or changes to the program, we're not announcing those quite yet because we still have a big chunk of the season ahead of us and we.

Speaker Change: We wanted to get the full learnings before we make any announcement on any changes, but once we have assessed the full season, we will make sure that we share any changes to that program, but we continue to be very excited about it. We continue to believe it's a transformational opportunity and one that we are uniquely positioned to six.

Speaker Change: Steven.

Speaker Change: Yeah.

Speaker Change: Thank you we'll go next to David Katz with Jefferies.

David Katz: Hi, everyone. Thanks for taking my questions I wanted to ask about Europe.

David Katz: Sort of how you are progressing there what kind of traffic you're seeing.

David Katz: What are you if any are seeing from the U S. Obviously become somewhat of a trend there is a cost matter with people traveling to Europe, just some insight there would help please.

Speaker Change: Hi, David Yeah. As you know we were excited to have the first year of Crown in Montana. This year and so operating the two resorts now in Switzerland, we are.

Speaker Change: Are starting to get lots of learnings and yeah. We're really taking those first you know here in a couple of years now and undermine us.

Speaker Change: Right, we're learning the market and we're really trying to kind of.

Speaker Change: Understand was the.

Speaker Change: Where we can have some success across the region.

Speaker Change: I'd say for the travel from the U S. Right that has not been the primary part of the thesis right. As it is in network benefit that we have to give our epic pass holders access to Switzerland, which is incredible, but what we're seeing really right as the market itself is very much a market that attracts destination visitation within the Alex and within Europe and from.

Speaker Change: Outside of Europe, and so that's really where the growth opportunity that we see long term within within that market and so it's it's early I think for us to be seen a significant change in behavior from North America to Europe for instance, or vice versa.

Speaker Change: The only build I would I agree with all of that David and the only build I would say is there is our teams are learning a lot about the market the gas the Europeans ski market is.

David: Huge and really understanding that guest better their expectations, but also even some unique differences and how the mountains are operated for example, some of the European resorts are very sophisticated and automated snowmaking automated avalanche control autonomous lift systems. So there's some really good.

David: Great learnings about how we operate the mountains that we're gaining during this early tenure as well.

David: All right and if I can just follow that up.

David: Sure.

David: You talk about the size of the mountain.

Patrons tend to also.

Speaker Change: Aleve spend less.

Speaker Change: Or at least pay less for less tickets, but can you just shed some light on any sort of pricing acceptance of resistance or kind of what youre seeing specifically around that part of it.

Speaker Change: We do see dynamics in Europe, David where it looks a bit more the way North America used to look before epic pass where lift tickets were less expensive than passive tended to be very expensive and then as you well know it took time, but that chi.

Speaker Change: <unk> overtime, where.

Speaker Change: People started to recognize the value of committing at advance and getting a great value associated with that what you see in Europe is season passes tend to be more expensive lift tickets tend to be less expensive but.

Speaker Change: But we still see an incredibly valuable yeah that spend money on food spends money on gears spend money on ski school or ski guides and we continue to be excited about the opportunity.

Speaker Change: Grow and it is a long term growth strategy and we do view that we have to be thoughtful and methodical about how we approach unlocking the potential there.

Speaker Change: Thank you.

Matthew Boss: Thank you we'll go next to Matthew boss of JP Morgan.

Matthew Boss: Great. Thanks.

Speaker Change: So kierston could you elaborate on real time historical demand indicators that you're watching more sort of gauge. The current health of your core consumer and then just multiyear.

Speaker Change: What do you see as a normalized underlying revenue growth rate for the business, maybe after the impact from the destination shifts as well as the impact from normalization.

Speaker Change: Real time, the indicators that we look at include it.

Speaker Change: Our.

Speaker Change: Net promoter scores and the experience that our teams are delivering at every one of our resorts, we have a very disciplined and rigorous approach and we hold our mountain operations teams accountable to the guest experience and so we can see that pretty real time every single day, how that guest experience is coming to life include.

Speaker Change: <unk> overall, but for every aspect of the business. We also look at or visitation. The dynamics that we expect to see because we have extensive data in our not just the guests, but also the frequency that we expect to see.

Shaun Kelley: And we also look at external factors like market lodging and the bookings that we see and so as I highlighted earlier I think when Sean asked when we look at spring and what we expect for spring. We are set up with strong conditions that are what I would call normal.

Shaun Kelley: We are set up and that our operations teams are delivering an outstanding guest experience.

Shaun Kelley: That looks very healthy and strong and the lodging indicators look strong and we know that our pass holders are we know who has shown up and who has not shown up and so that is factoring into what our expectations are for the remainder of the year.

Shaun Kelley: Yeah.

Arpin Kocharyan: Thank you. We'll go next now to Arpin Kocharyan of UBS.

Arpin Kocharyan: Hi, Thanks for taking my question I wanted to go back to EBITDA guidance with just one second for you mentioned some of the FX impact on EBITDA.

Arpin Kocharyan: Mid point resort EBITDA was unchanged, but I was wondering if you could give a bit more color on puts and takes for the top end of range. It seems like that came down more than the FX impact and then I have a quick follow up.

Arpin Kocharyan: Yeah. David This is annualized yes, we did take the FX impact of $7 million negative to the midpoint of the range, but that is really the shift in the from the September guidance out as the only shift that was reflected on the midpoint and typically as we get into March we do narrow the range. So you saw the top end and the bottom end come.

Arpin Kocharyan: Then proportionate to that new midpoint.

Arpin Kocharyan: And so the puts and takes that can they can you know put us like like always at the top end or the bottom end of these ranges right.

Arpin Kocharyan: Around those core assumptions that we have for the remainder of the year in terms of the improvement on the destination visitation. This.

Arpin Kocharyan: Normalization like where we land for the full year on the.

Arpin Kocharyan: Contraction of the industry and and that behavior that we were expecting and then conditions can obviously play a factor typically less of a factor is you've got this far into the season.

Speaker Change: Great. Thank you that's helpful.

Speaker Change: Then I was wondering would it be possible to talk kind of more broadly about labor cost pressures. This is a question that we get often is it possible to quantify what you were expecting a quarter ago and how those puts and takes of cheese in light of some of the labor agreements you've made throughout the quarter kind of that incremental pressure on EBITDA.

Speaker Change: And more importantly, sort of run rating into 26 would you say there is a material impacting your outlook as you look at the cost bases on a run rate basis outside of the 100 million of cost savings. Thanks.

Speaker Change: Yeah.

Speaker Change: No we would not say there was a material impact from the labor contracts that we have negotiated.

Speaker Change: We also have made Sydney.

Speaker Change: Yeah.

Speaker Change: In terms of how we manage our labor one thing you've probably heard us talking about as an example is workforce management as a tool that is actually a benefit to how how we utilize our labor on the mountains.

Speaker Change: <unk> enables us to have strong efficiencies.

Speaker Change: This year, but also as we look forward with the resource efficiency transformation plan. We believe has a significant impact on that as well.

Speaker Change: The labor Union contracts and just for some context.

Speaker Change: Obviously those teams and those contracts are very very important to us the number of labor unions, we have.

Speaker Change: Is you know five out of our.

Speaker Change: 37, North American ski patrol teams are unionized in two out of our 37, North American lift maintenance teams our union unionized. So when we look at the decisions that we're making on those labor contracts. We are looking at it in totality across the entire enterprise and the impact it has.

Speaker Change: Yeah.

Speaker Change: Thank you that's very helpful. Thank you.

Thank you we'll take our final question. This afternoon from Brent <unk> of Barclays.

Brent: Hello, everybody. Thanks for squeezing me in here I have a question on the past prices curious and you were talking about a seven.

Speaker Change: 7% increase when I look at the all resource day past it looks like it went up well in advance of seven.

7% right something like 25% to 30%.

Speaker Change: Can you first of all am I looking at the wrong thing because it doesn't seem to be consistent with the 7%, but I guess more importantly.

Speaker Change: Is it a tactical shift with regards to day pass prices because you know.

Speaker Change: I think the follow on question is.

Speaker Change: I would think is a pretty elastic pass when you cut prices in 'twenty. One you saw incredible increase increase in units and so I'm curious if you guys have any concern about elasticity on the downside for demand. If you are in fact, raising the price of the day passes.

Speaker Change: To that at that sort of rate.

Speaker Change: Thanks Brant.

Speaker Change: What will follow up with you offline I think the comparison point.

Speaker Change: Is we'll make sure that you have the right comparison point it is 7% pretty much across the board I think that the epic day pass is maybe got compared to the wrong benchmark from prior years. So we will make sure that you have that.

Speaker Change: Separately offline to make sure that you are looking at it the same way that we are but that overall increase of 7%. We are not disproportionately taking price on epic day pass.

Speaker Change: For exactly the reason that you're talking about is we have a very good understanding of the price elasticity and we really see that path.

Is being you know that.

The entry point for a lot of low frequency scares that transition from a lift ticket into that path that we can then overtime retain and trade up in the number of days as well as into other past products, but no. We did not take price up 25% to 30%. So we will make sure we follow up with you to clarify that.

Speaker Change: I appreciate that so then maybe I'll just ask the same question a different way, 7% puts the full epic.

Speaker Change: Paas as well.

Speaker Change: Well over $1000, that's going to be a sort of a record of course, obviously below 1000 back in 'twenty, one, but but you've come a long way since then.

Speaker Change: Again same question because there was a lot of a lot of demand.

Speaker Change: Did you cut the price are you expecting any sort of elasticity in the other direction.

Speaker Change: Yes, thanks for that follow up we factor that into our decision, making and it is as you noted I mean, it is always threading a needle in understanding the guest behavior the price elasticity, but also what we're providing on the path to access to the resorts and then the investments that <unk>.

Speaker Change: We have made and so we feel good about the 7% and where we're landing on that past product and we are constantly.

Speaker Change: <unk> to make sure that we strike the right balancing act in not tipping too far on price because we still still do believe that there is growth to be had here.

Speaker Change: The reset that we took and so making sure that these price increases we've taken since that rates that are appropriate for the experience and the investments we've made but.

Speaker Change: But not taking it too far and we believe the 7% strikes that balance.

Speaker Change: Perfect. Thanks, everybody. Thanks, Thanks Brandt.

Speaker Change: Yeah.

Speaker Change: Thank you and at this time is lunch I'd like to turn things back to you for any closing comments.

Speaker Change: Thank you operator. This concludes our fiscal 2025 second 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.

Speaker Change: Thank you Ms lunch again, ladies and gentlemen that does conclude today's Vail resorts fiscal second quarter 2025 earnings conference call and webcast. You may disconnect. Your line at any time and have a wonderful day. Thanks again, everyone.

Speaker Change: [music].

Speaker Change: Hum.

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Speaker Change: Mhm.

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Speaker Change: Mhm.

Speaker Change: [music].

Speaker Change: On your telephone keypad and if your duty to remove yourself from the queue. Please 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.

Speaker Change: Lastly, if you should need any operator assistance during the call today. Please press star zero with that I'll turn things over to Kirsten Lynch Chief Executive Officer of Vail Resorts. Please go ahead ma'am.

Speaker Change: Thank you good afternoon, everyone welcome to our fiscal 2025 second quarter earnings Conference call.

Speaker Change: Joining me on the call. This afternoon is Angela courts, our Chief Financial Officer.

Speaker Change: On this call are made as of today March 10, 2025, and we undertake no duty to update them as actual events unfold.

Speaker Change: His remarks are all also include certain non-GAAP financial measures reconciliations of these measures are provided in the tables included with our press release.

Speaker Change: Let's turn to our fiscal 2025, our second quarter results. We are pleased with our overall results for the quarter with 8% growth in resort reported EBITDA compared to the prior year.

Speaker Change: This shift in destination guest visitation for the spring.

Speaker Change: As a nation guest visitation at our Western North American destination Mountain resorts was below prior year levels, which we believe was driven by the continued shift in historical visitation patterns across the ski industry till later in the ski season, which increased after challenging early season conditions in the prior year.

Speaker Change: Local guest visitation was in line with expectations as conditions across our North American resorts improved from the prior year and returned to more typical conditions.

Speaker Change: Ancillary spend per destination guest visit was strong across our ski school and dining businesses throughout the quarter.

Speaker Change: While overall revenue and our ancillary businesses was impacted by the lower mix of destination visitation.

Speaker Change: <unk> million dollars in annualized cost efficiencies by the end of its fiscal 2026 fiscal year.

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

Angela Courts: $5 $5 million or $6.56 per diluted share for the second quarter of fiscal 2025 compared to net income attributable to Vail resorts of $219 $3 million or $5 76 per diluted share in the same period in prior year.

Resort reported EBITDA was $459 $7 million for the second fiscal quarter, which did include $2 $9 million of one time costs related to the previously announced two year resource efficiency transformation plan and zero point $1 million of acquisition and integration related expenses, which compares to resort.

Reported EBITDA of $425 million in the same period in the prior year, which included $2 $1 million of acquisition related expenses.

Angela Courts: Turning to our season to date metrics the reported tier.

Angela Courts: Do you see the metrics are for the period from the beginning of the ski season through Sunday March 2nd 2025, and compared to prior year period through March 3rd 2024, and now for the company's North American destination Mountain resorts and regional ski areas, excluding the results of Australian and European resorts in both periods.

Angela Courts: The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments.

Speaker Change: Susan today total skier visits were down two 5% compared to the fiscal year of 2024 season to date period.

Speaker Change: Susan today total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period was up four 1% compared to the fiscal year 2024 season to date period.

Speaker Change: Our ancillary business results Susan today at ski school revenue was up 3% dining revenue was up three 1% and combined retail and rental revenue for North American resort and scary all locations with a down two 9% compared to the prior year period.

Speaker Change: Similar to the drivers in the second quarter. Susan Today result through March 2025 reflect a strong local visitation from the improved conditions early season, and with destination visitation impacted by the industry demand normalization and unexpected shifts in destination guest visitation patient for the spring.

Speaker Change: And Florida spend for destination guests visit was strong across the company's ski school dining businesses with overall performance, reflecting the higher mix of local visitation during the period.

Speaker Change: Now turning to our outlook for fiscal 'twenty to 'twenty five exclude.

Speaker Change: Excluding a $7 million negative impact from the change in foreign currency rates. The company's resort reported EBITDA guidance midpoint for fiscal 2025 is unchanged from the original guidance provided on September 26 2024.

Speaker Change: For the remainder of the thing is in the company is expecting improved performance compared to the season to date period.

Speaker Change: And a continued shift in destination visitation patterns to later in the ski season and this is based on a significant amount of pre committed guests our current module bucking trends and historical guest behavior patterns.

Speaker Change: The company now expects net income attributable to Vail resorts for fiscal 'twenty to 'twenty five to be between $257 million and $309 million. The company expects resort reported EBITDA for the fiscal 2025 period to be between $841 million and 877.

Speaker Change: <unk>.

Speaker Change: Consistent with the original fiscal 2025 guidance issued on September 26, 2020 for the updated guidance includes an estimated $15 million in one time cost related to the multi year resource efficiency transformation plan and an estimated $1 million net of acquisition and integration related expenses specific to cry.

Speaker Change: Donna.

Speaker Change: And it doesn't compare to the original guidance. The updated guidance includes an estimated 7 million dollar impact from foreign exchange rates.

Speaker Change: The updated guidance also assumes a continuation of the current economic environment industry normalization to pre COVID-19 guest behavior and normal weather conditions for the remainder of the 2020 for 2025, North American and European ski season, and the 2020 five Australian ski season.

In addition, the updated guidance reflects the foreign currency exchange rate volatility.

Speaker Change: Compared to the original assumptions.

Speaker Change: The updated guidance assumes that currency rates as of March seven 2025, including an exchange rate of 70 between the Canadian dollar and U S. Dollar related to the operations of Whistler Blackcomb in Canada and exchange rate of 63 cents between the Australian dollar and the U S dollar related to the operations of parish or false creating hall.

Speaker Change: In Australia and.

Speaker Change: And an exchange rate of $1 13 sense between the Swiss franc and the U S dollar related to the operations of honor about Citroen and Crown, Montana in Switzerland, and does not include any potential impacts related to future fluctuations in foreign currency exchange rates, which may be impacted by tariffs trade disputes or other factors.

Speaker Change: As of January 31, 2025, the company's total liquidity as measured by total cash plus revolver availability and delayed draw term loan availability was approximately $1 $7 billion.

Speaker Change: $204 million of revolver availability under the west of our credit agreement.

Speaker Change: On January 27th 2025, the company completed an amendment of its fell holdings credit agreement, which increased the U S revolver by an incremental $100 million.

Q2 2025 Vail Resorts Inc Earnings Call

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