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Jan 31, 2023
Vail Resorts Q2 2023 Earnings Report
Reported a decrease in net income and Resort Reported EBITDA, but experienced growth in ancillary businesses and season-to-date metrics.
Key Takeaways
Vail Resorts reported a decrease in net income attributable to Vail Resorts, Inc. to $208.7 million for the second fiscal quarter of 2023, compared to $223.4 million in the same period in the prior year. Resort Reported EBITDA was $394.8 million, a slight decrease from $397.9 million in the prior year. However, season-to-date total skier visits and lift revenue increased, with strong growth in ski school, dining, and retail/rental revenue. The company updated its fiscal year 2023 guidance, expecting net income to be between $282 million and $328 million and Resort Reported EBITDA to be between $831 million and $859 million.
Net income attributable to Vail Resorts, Inc. decreased to $208.7 million compared to $223.4 million in the prior year.
Resort Reported EBITDA was $394.8 million, slightly down from $397.9 million in the prior year.
Season-to-date total skier visits increased by 3.6% and total lift revenue increased by 2.5%.
The company updated its fiscal year 2023 guidance, projecting net income between $282 million and $328 million, and Resort Reported EBITDA between $831 million and $859 million.
Vail Resorts
Vail Resorts
Vail Resorts Revenue by Segment
Revenue by Segment
Real Estate Revenue
CapyFin.com Forward Guidance
The company lowered its fiscal 2023 guidance due to weather disruptions at Eastern U.S. and Tahoe resorts, expecting net income between $282 million and $328 million and Resort Reported EBITDA between $831 million and $859 million.
Positive Outlook
- Strong demand from destination guests at western North American resorts is expected to continue for the remainder of the season.
- Advance commitment products provide an incredible value to the consumer.
- Advance commitment products provide much greater stability to the Company and our communities.
- Company will roll out new technology and infrastructure upgrades next season.
- On average, our pass prices have increased 8% over the prior season’s launch price and continue to represent strong value to our guests.
Challenges Ahead
- Significant weather disruptions at Eastern U.S. resorts throughout the season-to-date period.
- Continued significant snowstorm disruptions at Tahoe resorts.
- Contribution margin from our 26 Eastern U.S. resorts, excluding an allocated portion of pass product revenue, to underperform initial expectations provided in September 2022 by approximately $43 million.
- Weather disruptions in the East and in Tahoe impacted both operating days and visitation and drove increased operating costs.
- There continues to be uncertainty around the economic outlook and the impact that may have on travel and consumer behavior.