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Vail Resorts, Inc. (MTN - Free Report) reported fourth-quarter fiscal 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
Kirsten Lynch, chief executive officer, Vail Resorts, stated, "Performance in the fourth quarter of fiscal 2022 improved significantly from the prior year driven by strong demand and visitation at our Australian resorts and the continued recovery in our North American summer operations following the start of the COVID-19 pandemic."
Following the announcement, shares of the company gained 4% during the after-hours trading session on Sep 28.
Earnings & Revenues
In the quarter under review, the company reported a loss of $2.70 per share, narrower than the Zacks Consensus Estimate of a loss of $2.91. In the prior-year quarter, the company reported a loss of $3.49 per share.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Quarterly revenues amounted to $267.1 million, beating the consensus mark of $265 million by 0.8%. The top line rose 30.8% on a year-over-year basis. Strong destination guest visitation and stability in advance commitment pass products added to the upside.
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
The Mountain segment generated revenues of $184.8 million in the quarter under review, up 40.6% 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 58.7% and 23.8%, respectively, year over year. Revenues from the lift and Ski school increased 70.1% and 70.3% year over year to $59.6 million and $9.2 million, respectively.
The segment’s EBITDA amounted to ($62.4) million in the fiscal fourth quarter compared with ($101.5) million reported in the prior-year quarter. Operating expenses in the Mountain segment totaled $247.1 million, up 5.8% year over year.
Lodging net revenues (excluding payroll cost reimbursements) in the reported quarter were $78.8 million, up 11% year over year, primarily due to robust dining revenues. During the quarter, the segment’s EBITDA came in at ($0.7) million against $2.7 million reported in the year-ago quarter.
During the quarter, operating expenses in the Lodging segment increased 19% year over year to $83 million.
Operating Results
Vail Resorts reported adjusted EBITDA of ($64.2) million in the quarter compared with ($99.9) million reported in the prior-year quarter. Total segment operating expenses totaled $331.3 million, up 8.7% year over year. Balance Sheet
Cash and cash equivalents as of Jul 31, 2022, totaled $1,107.4 million compared with $1,244 million in the year-ago period.
Net long-term debt amounted to $2,670.3 million at the end of the quarter, compared with $2,736.2 million at the end of the prior-year quarter.
As of Jul 31, 2022, the company had total cash and revolver availability of approximately $1.7 billion. This includes $1.1-billion cash in hand, $417.4 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $220 million of revolver availability under the Whistler Credit Agreement.
Meanwhile, the company declared a cash dividend of $1.91 per share. The dividend will be paid out on Oct 24, 2022, to shareholders on record as of Oct 5, 2022.
Fiscal 2022 Highlights
Fiscal 2022 adjusted earnings per share (EPS) came in at $8.55 compared with $3.13 reported in the previous year.
Total revenues in fiscal 2022 came in at $2,525.9 million compared with $1,909.7 million in fiscal 2021.
Adjusted EBITDA in fiscal 2022 totaled $833 million compared with $540.1 million in the prior fiscal year.
Other Information
The company reported solid season pass sales for the upcoming 2022/2023 North American ski season. Season-to-date (through Sep 23, 2022), the company stated that Pass product sales had increased approximately 6% in units and approximately 7% in sales dollars compared with the prior-year period’s (through Sep 24, 2021) levels. The company reported strong unit growth with respect to its renewing pass holders in destination markets. Also, it stated benefits from 7.5% price increase (relative to the 2021/2022 season). Given the strong trade-up results coupled with minimal degradation (relative to spring pass sales), the company expects December 2022 growth rates to be relatively consistent with September 2022 growth rates.
Fiscal 2023 Guidance
The company provided the outlook for fiscal 2023. The outlook is based on the assumption of normal conditions and operations throughout the 2022/2023 North American, European and Australian ski seasons and no impact from travel or operating restrictions associated with COVID-19.
In fiscal 2023, net income (attributable to Vail Resorts) is estimated in the range of $321-$396 million. Resorts reported EBITDA is expected in the range of $893-$947 million. Resorts reported EBITDA margin is anticipated to be nearly 31%, using the midpoint of the guidance.
Marriott Vacations sports a Zacks Rank #1. VAC has a trailing four-quarter earnings surprise of 13.9%, on average. The stock has declined 22.8% in the past year.
The Zacks Consensus Estimate for VAC’s current financial year sales and EPS indicates an increase of 19.7% and 131.4%, respectively, from the year-ago period’s reported levels.
Hyatt carries a Zacks Rank #2. H has a trailing four-quarter earnings surprise of 798.8%, on average. The stock has declined 6.1% in the past year.
The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates growth of 89.1% and 113%, respectively, from the year-ago period’s reported levels.
Choice Hotels carries a Zacks Rank #2. CHH has a trailing four-quarter earnings surprise of 11.2%, on average. The stock has declined 15% in the past year.
The Zacks Consensus Estimate for CHH’s current financial year sales and EPS indicates growth of 25.3% and 21.7%, respectively, from the year-ago period’s reported levels.
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Vail Resorts (MTN) Q4 Earnings & Revenues Beat Estimates
Vail Resorts, Inc. (MTN - Free Report) reported fourth-quarter fiscal 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
Kirsten Lynch, chief executive officer, Vail Resorts, stated, "Performance in the fourth quarter of fiscal 2022 improved significantly from the prior year driven by strong demand and visitation at our Australian resorts and the continued recovery in our North American summer operations following the start of the COVID-19 pandemic."
Following the announcement, shares of the company gained 4% during the after-hours trading session on Sep 28.
Earnings & Revenues
In the quarter under review, the company reported a loss of $2.70 per share, narrower than the Zacks Consensus Estimate of a loss of $2.91. In the prior-year quarter, the company reported a loss of $3.49 per share.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote
Quarterly revenues amounted to $267.1 million, beating the consensus mark of $265 million by 0.8%. The top line rose 30.8% on a year-over-year basis. Strong destination guest visitation and stability in advance commitment pass products added to the upside.
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
The Mountain segment generated revenues of $184.8 million in the quarter under review, up 40.6% 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 58.7% and 23.8%, respectively, year over year. Revenues from the lift and Ski school increased 70.1% and 70.3% year over year to $59.6 million and $9.2 million, respectively.
The segment’s EBITDA amounted to ($62.4) million in the fiscal fourth quarter compared with ($101.5) million reported in the prior-year quarter. Operating expenses in the Mountain segment totaled $247.1 million, up 5.8% year over year.
Lodging net revenues (excluding payroll cost reimbursements) in the reported quarter were $78.8 million, up 11% year over year, primarily due to robust dining revenues. During the quarter, the segment’s EBITDA came in at ($0.7) million against $2.7 million reported in the year-ago quarter.
During the quarter, operating expenses in the Lodging segment increased 19% year over year to $83 million.
Operating Results
Vail Resorts reported adjusted EBITDA of ($64.2) million in the quarter compared with ($99.9) million reported in the prior-year quarter. Total segment operating expenses totaled $331.3 million, up 8.7% year over year.
Balance Sheet
Cash and cash equivalents as of Jul 31, 2022, totaled $1,107.4 million compared with $1,244 million in the year-ago period.
Net long-term debt amounted to $2,670.3 million at the end of the quarter, compared with $2,736.2 million at the end of the prior-year quarter.
As of Jul 31, 2022, the company had total cash and revolver availability of approximately $1.7 billion. This includes $1.1-billion cash in hand, $417.4 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $220 million of revolver availability under the Whistler Credit Agreement.
Meanwhile, the company declared a cash dividend of $1.91 per share. The dividend will be paid out on Oct 24, 2022, to shareholders on record as of Oct 5, 2022.
Fiscal 2022 Highlights
Fiscal 2022 adjusted earnings per share (EPS) came in at $8.55 compared with $3.13 reported in the previous year.
Total revenues in fiscal 2022 came in at $2,525.9 million compared with $1,909.7 million in fiscal 2021.
Adjusted EBITDA in fiscal 2022 totaled $833 million compared with $540.1 million in the prior fiscal year.
Other Information
The company reported solid season pass sales for the upcoming 2022/2023 North American ski season. Season-to-date (through Sep 23, 2022), the company stated that Pass product sales had increased approximately 6% in units and approximately 7% in sales dollars compared with the prior-year period’s (through Sep 24, 2021) levels. The company reported strong unit growth with respect to its renewing pass holders in destination markets. Also, it stated benefits from 7.5% price increase (relative to the 2021/2022 season). Given the strong trade-up results coupled with minimal degradation (relative to spring pass sales), the company expects December 2022 growth rates to be relatively consistent with September 2022 growth rates.
Fiscal 2023 Guidance
The company provided the outlook for fiscal 2023. The outlook is based on the assumption of normal conditions and operations throughout the 2022/2023 North American, European and Australian ski seasons and no impact from travel or operating restrictions associated with COVID-19.
In fiscal 2023, net income (attributable to Vail Resorts) is estimated in the range of $321-$396 million. Resorts reported EBITDA is expected in the range of $893-$947 million. Resorts reported EBITDA margin is anticipated to be nearly 31%, using the midpoint of the guidance.
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 Zacks Consumer Discretionary sector include Marriott Vacations Worldwide Corporation (VAC - Free Report) , Hyatt Hotels Corporation (H - Free Report) and Choice Hotels International, Inc. (CHH - Free Report) .
Marriott Vacations sports a Zacks Rank #1. VAC has a trailing four-quarter earnings surprise of 13.9%, on average. The stock has declined 22.8% in the past year.
The Zacks Consensus Estimate for VAC’s current financial year sales and EPS indicates an increase of 19.7% and 131.4%, respectively, from the year-ago period’s reported levels.
Hyatt carries a Zacks Rank #2. H has a trailing four-quarter earnings surprise of 798.8%, on average. The stock has declined 6.1% in the past year.
The Zacks Consensus Estimate for H’s current financial year sales and EPS indicates growth of 89.1% and 113%, respectively, from the year-ago period’s reported levels.
Choice Hotels carries a Zacks Rank #2. CHH has a trailing four-quarter earnings surprise of 11.2%, on average. The stock has declined 15% in the past year.
The Zacks Consensus Estimate for CHH’s current financial year sales and EPS indicates growth of 25.3% and 21.7%, respectively, from the year-ago period’s reported levels.