BROOMFIELD, CO - Vail Resorts, Inc. (NYSE:MTN) faced a chilly investor reception as shares fell 6.6% following the company's report of third-quarter results and a cut in its profit guidance for fiscal 2024.
The renowned ski resort operator disclosed earnings per share (EPS) of $9.54, falling short of the analyst consensus of $10.04. Revenue for the quarter was $1.28 billion, also below the expected $1.31 billion.
The company's net income for the third quarter increased to $362.0 million from $325.0 million YoY, while Resort Reported EBITDA rose from $623.3 million to $654.4 million in the same period.
However, the updated fiscal 2024 guidance was lowered due to weaker-than-anticipated lift ticket visitation, particularly at Whistler Blackcomb, and subdued expectations for the Australian resorts in the fourth quarter.
The revised forecast for Resort Reported EBITDA now stands between $833 million and $851 million, including the negative impact of the recent Crans-Montana acquisition, which is expected to contribute negative $12 million.
CEO Kirsten Lynch commented on the results, "Despite weather-related challenges and a decline in skier visitation, we achieved record resort net revenue and Resort Reported EBITDA in the third quarter. Our advance commitment strategy and operational excellence helped mitigate the impact of these challenges."
She also noted the late season improvement but acknowledged the need to adjust expectations due to spring visitation patterns not aligning with historical trends.
Vail Resorts also reported early season pass sales for the 2024/2025 North American ski season, showing a decrease of approximately 5% in units but a 1% increase in sales dollars compared to the previous year.
The company attributes this to the 8% price increase of pass products, offset by the mix impact from the growth of Epic Day Pass products.
In terms of capital allocation, Vail Resorts remains committed to investing in guest and employee experiences, strategic acquisitions, and shareholder returns. This includes a quarterly cash dividend of $2.22 per share and share repurchases totaling approximately $75 million during the quarter.
For the upcoming fiscal year, the company's outlook has been adjusted to account for the acquisition of Crans-Montana and the anticipated negative contribution from the resort.
The guidance also reflects an expectation of normal weather conditions and operations for the Australian ski and North America summer seasons.
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