BROOMFIELD, Colo. - Vail Resorts, Inc. (NYSE: NYSE:MTN) has released its ski season metrics through April 14, 2024, showing varied performance across its North American operations. The company noted a 7.8% decrease in total skier visits but reported increases in lift ticket revenue by 3.2%, ski school revenue by 7.0%, and dining revenue by 2.4%. However, retail and rental revenue saw a decline of 7.1% compared to the prior year.
CEO Kirsten Lynch commented on the resilience of the company's business model, which was tested by less favorable conditions at many resorts during a substantial part of the season. Despite lower visitation rates, the growth in season pass sales, which are purchased ahead of the ski season, helped lift overall revenue. Lynch highlighted that the performance of ancillary businesses, such as ski schools and dining, had been particularly strong.
The latter part of the season showed improvement, with March and April visitation at western North American resorts exceeding the previous year's levels, attributed to better weather conditions. However, visitation at Whistler Blackcomb did not meet expectations, remaining significantly lower than the prior year.
Looking ahead, Lynch indicated that fiscal 2024's year-end results are projected to be at or near the lower end of the Resort Reported EBITDA guidance range, primarily due to the performance at Whistler Blackcomb. She also mentioned that the company is already focusing on the 2024/2025 season with spring pass sales ongoing, which have so far seen a modest decline in units but an increase in sales dollars.
Vail Resorts operates several prominent ski destinations in North America, including Vail Mountain, Breckenridge, and Park City (NYSE:TRAK) Mountain, among others. The company's metrics exclude results from its Australian ski areas and Andermatt-Sedrun in Switzerland.
This information is based on a press release statement.
InvestingPro Insights
Vail Resorts, Inc. (NYSE: MTN) has shown resilience in its business model amid a challenging ski season, as reflected in the company’s recent performance metrics. Investors looking at the broader financial landscape of Vail Resorts will find additional context in the real-time data and insights from InvestingPro. With a current market capitalization of $8.11 billion and a P/E ratio standing at 34.35, the company is navigating through its fiscal challenges. The adjusted P/E ratio for the last twelve months as of Q2 2024 has improved slightly to 28.23, indicating a potential shift in the company’s earnings valuation.
The InvestingPro Tips highlight that management's aggressive share buybacks and a high shareholder yield are strategic moves that may instill confidence in investors. Notably, Vail Resorts has maintained its dividend payments for 14 consecutive years, with a current dividend yield of 4.16%, showcasing its commitment to returning value to shareholders. This might be particularly appealing to income-focused investors, especially when considering the company's dividend growth over the last twelve months at 16.23%. Additionally, with analysts predicting profitability this year and a track record of profitability over the last twelve months, Vail Resorts appears financially stable despite the downturn in skier visits.
Investors should note that Vail Resorts is trading near its 52-week low, with the price at 82.76% of its 52-week high. This could potentially represent a buying opportunity for those who believe in the company's long-term prospects and its ability to navigate through less favorable seasonal conditions.
For those interested in a deeper dive into Vail Resorts’ financial health and future prospects, InvestingPro offers additional insights and metrics. As of now, there are 10 more InvestingPro Tips available for Vail Resorts, which can be accessed at https://www.investing.com/pro/MTN. To get the most out of these insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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