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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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