Post Earnings Coverage as Vail Resorts Season Pass Boost FY16 Results

LONDON, UK / ACCESSWIRE / September 28, 2016 / Active Wall St. announces its post-earnings coverage on Vail Resorts Inc. (NYSE: MTN). The company released financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full fiscal 2016 (FY16) on September 26, 2016. The Broomfield, Colorado-based company reported year-over-year growth in its net revenue for both Q4 FY16 and full year FY16, beating market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

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Earnings Reviewed

Vail Resorts reported net revenue of $179.88 million in Q4 FY16 which was above $162.08 million recorded in Q4 FY15 and market forecast of $171.4 million. However, the company reported net loss attributable to Vail Resort of $65.27 million, or $1.80 loss per diluted share, in Q4 FY16 compared to a net loss attributable to Vail Resort of $70.14 million, or $1.92 per diluted share, in the previous year’s corresponding quarter. The resort’s net loss attributable to Vail Resort came in below expectation of $1.67 loss per diluted share.

During FY16, the company’s total revenue grew $201.4 million, or 14.4%, y-o-y to $1.60 billion from $1.40 billion in FY15. Net income attributable to Vail Resorts for FY16 stood at $149.75 million, or $4.01 per diluted share, up from $114.75 million, or $3.07 per diluted share, recorded in FY15.

The company attributed the robust year-over-year growth in revenue for FY16 to season pass sales, with growth of 24% y-o-y in units and 29% y-o-y in sales dollar. In FY16, total EBITDA came in at $455.37 million compared to $358.87 million in the year ago period.

Segment-wise

For FY16, Vail Resorts’ Mountain segment recorded revenues of $1.30 billion, which was 18.2% above the $1.10 billion reported in FY15. The season pass revenue increased $46.6 million, or 21.5%, y-o-y during the fiscal year. The segment reported EBITDA of $424.4 million, which was $96.7 million, or 29.5% above $344.10 million reported in FY15.

The company’s Lodging segment reported revenues of $274.55 million in FY16 versus $254.55 million in FY15. The progress in segment revenue for FY16 was attributed to 210 basis point growth in occupancy rate with a 3.5% growth in average daily rate (ADR), which resulted in an improvement of 8.8% y-o-y in revenue per available room (RevPAR).

However, the Real Estate segment net revenues declined $19.2 million, or 46.5%, y-o-y to $22,128 million in FY16 from $41,342 million in the prior year’s period. The segment cash flow came in at $22.0 million, down $6.9 million on y-o-y basis. Meanwhile, the segment’s EBITDA surged 140.3% y-o-y to $2.8 million in the reported fiscal year.

Cash Matters

Vail Resorts had cash and cash equivalents worth $67.90 million at the close of its books on July 31, 2016, compared to $35.46 million as on July 31, 2015. The company had reported debt equity ratio of 1.4 times as on July 31, 2016 and had total debt of $700.26 million as on the closing of books for FY16.

Dividend & Buybacks

The company’s Board of Directors has announced a quarterly dividend of $0.81 per share of its common stock which is payable on October 25, 2016, to all the shareholders registered on records as of the close of business on October 7, 2016. In FY16, the company bought back 485,866 shares for a total of $53.8 million.

Acquisition

On August 08, 2016, the company had entered into a definitive agreement to acquire 100% of the stock in Whistler Blackcomb Holdings Inc. The company informed Wall Street that it had received no action letter from Canadian Competition Bureau and expects to close the deal by the end of this fall following the approval from Blackcomb’s shareholders and any Canadian regulatory approvals.

Outlook

In its guidance for full year fiscal 2017 (FY17), Vail Resorts forecasts Resort reported EBITDA range of $480 million and $510 million and expects Resort EBITDA margin to be approximately 29.7%. Real Estate segment is anticipated to report EBITDA in the range of $2 million and $8 million and is expected to provide cash flow between $10 million and $20 million. For FY17, the company predicts net income attributable to Vail Resorts to be in the range of $165.5 million to $194.5 million.

Stock Performance

Vail Resorts’ share price finished yesterday’s trading session at $155.86, marginally up by 0.04%. A total volume of 1.01 million shares exchanged hands, which was higher than the 3 months average volume of 339.80 thousand shares. The stock has advanced 16.02% and 19.06% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the company has gained 23.27%. The stock is trading at a PE ratio of 40.90 and has a dividend yield of 2.08%.

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