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Vail Resorts (MTN) Q2 Earnings & Revenues Lag Estimates
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Vail Resorts, Inc. (MTN - Free Report) reported mixed second-quarter fiscal 2022 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and the bottom line increased on a year-over-year basis.
Kirsten Lynch, chief executive officer, Vail Resorts, stated, "We are pleased with our financial performance for the quarter. Visitation trends and demand for the experience at our resorts remain encouraging, particularly with destination guests, with results improving post-holidays as conditions improved, more terrain was opened and the impact of the COVID-19 Omicron variant receded.”
Earnings & Revenues
In the quarter under review, the company reported earnings per share (EPS) of $5.47 per share, missing the Zacks Consensus Estimate of $5.70. The metric increased from $3.62 reported in the prior-year quarter.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Quarterly revenues amounted to $906.5 million, missing the consensus mark of $962 million by 5.5%. The top line rose 32.4% on a year-over-year basis. The upside was due to robust performance by the Mountain and Lodging segments.
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
The Mountain segment generated revenues of $834.4 million in the quarter under review, up 30% year over year. The upside was mainly driven by fewer COVID-19 related limitations and restrictions compared with the prior-year period’s levels.
During the quarter, revenues from dining and retail/rental rose 67.7% and 40.7%, respectively, year over year. Revenues from the lift and Ski school increased 21.1% and 63.3% year over year to $521.6 million and $92.1 million, respectively.
The segment’s EBITDA amounted to $388.5 million in the fiscal second quarter compared with $282.5 million reported in the prior-year quarter. Operating expenses in the Mountain segment totaled $446.7 million, up 23.9% year over year.
Lodging net revenues in the reported quarter were $70.1 million, up 73.9% year over year primarily due to robust dining revenues. The segment’s EBITDA increased to $9.4 million from the prior-year quarter’s figure of ($6.5) million.
During the quarter, operating expenses in the Lodging segment increased 28.2% year over year to $62.6 million.
Operating Results
Vail Resorts reported adjusted EBITDA of $397.5 million in the quarter compared with $274.8 million reported in the prior-year quarter. Total segment operating expenses totaled $510.8 million, up 24.3% year over year. Balance Sheet
Cash and cash equivalents as of Jan 31, 2022, totaled $1,407 million, up from $1,301 million in the year-ago period.
Net long-term debt amounted to $2,695.6 million at the end of the quarter, up from $2,768 million at the end of the prior-year quarter.
As of Jan 31, 2022, the company had total cash and revolver availability of approximately $2 billion. This includes $1.4-billion cash in hand, $417 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $214 million of revolver availability under the Whistler Credit Agreement.
The company announced a hike in its quarterly dividend payout. The company raised the quarterly dividend to $1.91 per share (or $7.64 annually) from the previous payout of 88 cents (or $3.52 annually). The hiked dividend will be paid out on Apr 14, 2022, to shareholders on record as of Mar 30, 2022.
Other Information
The company reported certain ski season metrics for the period from the beginning of the ski season through Mar 6, 2022.
Season-to-date (through Mar 6, 2022) total skier visits increased 11.7% compared with the prior-year season-to-date period. The metric gained 2.8% from the fiscal year 2020 season-to-date period’s levels.
Lift ticket revenues (including an allocated portion of season pass revenues for each applicable period) increased 21% year over year. It also increased 10.3% from the fiscal year 2020 season-to-date period’s tallies. Ski school revenues surged 60.2% year over year, while dining revenues jumped 75.7% compared with the prior-year period’s levels. Ski school revenues and dining revenues declined 8.9% and 27% from the fiscal year 2020 season-to-date period’s levels, respectively.
Retail/rental revenues for North American resort and ski area store locations increased 40.7% from the prior-year season-to-date period’s figure. However, the metric was down 2.8% from the comparable season-to-date period’s levels` in the fiscal year 2020.
For fiscal 2022, the company has set aside approximately $315-$325 million to provide increased lift capacity and enhance the guest experience. The plan includes the installation of 21 new or replacement lifts across 14 of its resorts. It also includes a transformational lift-served terrain expansion at Keystone. The company believes that the initiative will boost lift capacity by more than 45% in the locations. However, Vail Resorts stated that developments are subject to regulatory approvals.
Apart from lift upgrade and terrain expansion projects, the company is focused on developing and leveraging its data-driven approach to operate the business. This includes investments in network-wide scalable technology (to enhance analytics, e-commerce and guest engagement) and self-service capabilities (to improve guests’ online experience).
Fiscal 2022 Guidance
Backed by strong demand from destination guests at western U.S. resorts coupled with regard to lift ticket sales, the company raised its guidance for fiscal 2022. The updated outlook is based on the assumption of normal weather conditions and no impact from travel or operating restrictions associated with COVID-19.
In fiscal 2022, the company anticipates net income in the range of $304-$350 million up from the previous estimate of $278-$349 million. Resorts reported EBITDA is expected in the range of $808-$837 million, up from the previous estimate of $785-$835 million.
Funko sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 96.2%, on average. Shares of the company have declined 13.2% in the past year.
The Zacks Consensus Estimate for Funko’s current financial-year sales and EPS suggests growth of 22.7% and 26.8%, respectively, from the year-ago period’s levels.
Bluegreen Vacations carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 425.1%, on average. Shares of the company have surged 53.6% in the past year.
The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s levels.
Marriott carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 86.6%, on average. Shares of the company have gained 7.4% in the past year.
The Zacks Consensus Estimate for Marriott’s current financial-year sales and EPS indicates growth of 40.3% and 73%, respectively, from the year-ago period’s levels.
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Vail Resorts (MTN) Q2 Earnings & Revenues Lag Estimates
Vail Resorts, Inc. (MTN - Free Report) reported mixed second-quarter fiscal 2022 results, with earnings and revenues missing the Zacks Consensus Estimate. However, the top and the bottom line increased on a year-over-year basis.
Kirsten Lynch, chief executive officer, Vail Resorts, stated, "We are pleased with our financial performance for the quarter. Visitation trends and demand for the experience at our resorts remain encouraging, particularly with destination guests, with results improving post-holidays as conditions improved, more terrain was opened and the impact of the COVID-19 Omicron variant receded.”
Earnings & Revenues
In the quarter under review, the company reported earnings per share (EPS) of $5.47 per share, missing the Zacks Consensus Estimate of $5.70. The metric increased from $3.62 reported in the prior-year quarter.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote
Quarterly revenues amounted to $906.5 million, missing the consensus mark of $962 million by 5.5%. The top line rose 32.4% on a year-over-year basis. The upside was due to robust performance by the Mountain and Lodging segments.
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
The Mountain segment generated revenues of $834.4 million in the quarter under review, up 30% year over year. The upside was mainly driven by fewer COVID-19 related limitations and restrictions compared with the prior-year period’s levels.
During the quarter, revenues from dining and retail/rental rose 67.7% and 40.7%, respectively, year over year. Revenues from the lift and Ski school increased 21.1% and 63.3% year over year to $521.6 million and $92.1 million, respectively.
The segment’s EBITDA amounted to $388.5 million in the fiscal second quarter compared with $282.5 million reported in the prior-year quarter. Operating expenses in the Mountain segment totaled $446.7 million, up 23.9% year over year.
Lodging net revenues in the reported quarter were $70.1 million, up 73.9% year over year primarily due to robust dining revenues. The segment’s EBITDA increased to $9.4 million from the prior-year quarter’s figure of ($6.5) million.
During the quarter, operating expenses in the Lodging segment increased 28.2% year over year to $62.6 million.
Operating Results
Vail Resorts reported adjusted EBITDA of $397.5 million in the quarter compared with $274.8 million reported in the prior-year quarter. Total segment operating expenses totaled $510.8 million, up 24.3% year over year.
Balance Sheet
Cash and cash equivalents as of Jan 31, 2022, totaled $1,407 million, up from $1,301 million in the year-ago period.
Net long-term debt amounted to $2,695.6 million at the end of the quarter, up from $2,768 million at the end of the prior-year quarter.
As of Jan 31, 2022, the company had total cash and revolver availability of approximately $2 billion. This includes $1.4-billion cash in hand, $417 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $214 million of revolver availability under the Whistler Credit Agreement.
The company announced a hike in its quarterly dividend payout. The company raised the quarterly dividend to $1.91 per share (or $7.64 annually) from the previous payout of 88 cents (or $3.52 annually). The hiked dividend will be paid out on Apr 14, 2022, to shareholders on record as of Mar 30, 2022.
Other Information
The company reported certain ski season metrics for the period from the beginning of the ski season through Mar 6, 2022.
Season-to-date (through Mar 6, 2022) total skier visits increased 11.7% compared with the prior-year season-to-date period. The metric gained 2.8% from the fiscal year 2020 season-to-date period’s levels.
Lift ticket revenues (including an allocated portion of season pass revenues for each applicable period) increased 21% year over year. It also increased 10.3% from the fiscal year 2020 season-to-date period’s tallies. Ski school revenues surged 60.2% year over year, while dining revenues jumped 75.7% compared with the prior-year period’s levels. Ski school revenues and dining revenues declined 8.9% and 27% from the fiscal year 2020 season-to-date period’s levels, respectively.
Retail/rental revenues for North American resort and ski area store locations increased 40.7% from the prior-year season-to-date period’s figure. However, the metric was down 2.8% from the comparable season-to-date period’s levels` in the fiscal year 2020.
For fiscal 2022, the company has set aside approximately $315-$325 million to provide increased lift capacity and enhance the guest experience. The plan includes the installation of 21 new or replacement lifts across 14 of its resorts. It also includes a transformational lift-served terrain expansion at Keystone. The company believes that the initiative will boost lift capacity by more than 45% in the locations. However, Vail Resorts stated that developments are subject to regulatory approvals.
Apart from lift upgrade and terrain expansion projects, the company is focused on developing and leveraging its data-driven approach to operate the business. This includes investments in network-wide scalable technology (to enhance analytics, e-commerce and guest engagement) and self-service capabilities (to improve guests’ online experience).
Fiscal 2022 Guidance
Backed by strong demand from destination guests at western U.S. resorts coupled with regard to lift ticket sales, the company raised its guidance for fiscal 2022. The updated outlook is based on the assumption of normal weather conditions and no impact from travel or operating restrictions associated with COVID-19.
In fiscal 2022, the company anticipates net income in the range of $304-$350 million up from the previous estimate of $278-$349 million. Resorts reported EBITDA is expected in the range of $808-$837 million, up from the previous estimate of $785-$835 million.
Zacks Rank and Stocks to Consider
Currently, Vail Resorts carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some better-ranked stocks in the Consumer Discretionary sector include Funko, Inc. (FNKO - Free Report) , Bluegreen Vacations Holding Corporation and Marriott International, Inc. (MAR - Free Report) .
Funko sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 96.2%, on average. Shares of the company have declined 13.2% in the past year.
The Zacks Consensus Estimate for Funko’s current financial-year sales and EPS suggests growth of 22.7% and 26.8%, respectively, from the year-ago period’s levels.
Bluegreen Vacations carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 425.1%, on average. Shares of the company have surged 53.6% in the past year.
The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates growth of 8.3% and 20.8%, respectively, from the year-ago period’s levels.
Marriott carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 86.6%, on average. Shares of the company have gained 7.4% in the past year.
The Zacks Consensus Estimate for Marriott’s current financial-year sales and EPS indicates growth of 40.3% and 73%, respectively, from the year-ago period’s levels.