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Jan 31, 2020
Vail Resorts Q2 2020 Earnings Report
Reported second quarter results and withdrew fiscal year 2020 guidance due to coronavirus uncertainty.
Key Takeaways
Vail Resorts reported its fiscal year 2020 second quarter results, showing a slight increase in net income compared to the previous year. However, due to the uncertain impact of the coronavirus, the company withdrew its fiscal year 2020 guidance.
Net income attributable to Vail Resorts, Inc. was $206.4 million, slightly up from $206.3 million in the prior year.
Resort Reported EBITDA was $378.3 million, including acquisition and integration related expenses and favorable foreign exchange impacts.
The company withdrew its fiscal 2020 guidance due to the uncertain impact of the coronavirus on the U.S. travel market.
Total lift revenue increased 8.2%, driven by 8.8% growth in skier visitation, including results from Peak Resorts.
Vail Resorts
Vail Resorts
Vail Resorts Revenue by Segment
Revenue by Segment
Mountain Revenue
CapyFin.comLodging Revenue
CapyFin.comReal Estate Revenue
CapyFin.com Forward Guidance
Due to the uncertainty surrounding the impact of the coronavirus on the broader U.S. travel market, the company is not issuing guidance at this time for fiscal year 2020 and is withdrawing its previous guidance issued on January 17, 2020.
Positive Outlook
- Strong cash flow generation and stability of business model.
- Commitment to strategic, high-return capital projects.
- Continuous investment in people.
- Strategic acquisition opportunities.
- Returning capital to shareholders through quarterly dividend and share repurchase programs.
Challenges Ahead
- Uncertainty surrounding the impact of the coronavirus on the broader U.S. travel market.
- Marked negative change in performance from the prior week.
- Destination skier visits modestly below expectations.
- Expectation that this trend will continue and potentially worsen in upcoming weeks.
- Decision on a dividend increase is deferred until June due to current market instability caused by the coronavirus.
Revenue & Expenses
Visualization of income flow from segment revenue to net income