Vail Resorts Inc. (NYSE:MTN) Q1 2019 Earnings Conference Call Transcript

Dec 07, 2018 • 11:30 am ET

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Vail Resorts Inc. (NYSE:MTN) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Vail Resorts First Quarter Fiscal 2019 Earnings Call. Today's call is being recorded.

At this time, I would like to turn the conference over to Rob Katz. Please go ahead, sir.

Executive
Rob Katz

Thank you. Good morning, everyone. Welcome to our fiscal first quarter 2019 earnings conference call. Joining me on the call this morning is Michael Barkin, our CFO.

(Forward-Looking Cautionary Statements)

Today's remarks also include certain non-GAAP financial measures. Reconciliations of these measures are provided in the tables included with our press release, which along with our quarterly report on Form 10-Q, were filed this morning with the SEC and are also available on the Investor Relations section of our website at www.vailresorts.com.

So with that said, let's turn to our first quarter fiscal 2019 results. Overall, we were pleased with our results in the first fiscal quarter. Perisher performed very well with outstanding conditions generating record results for the Australian winter season, with strong visitation and revenue growth across the business.

Our consolidated results from Perisher were negatively impacted by the strong US dollar, which created an approximate $2 million resort reported EBITDA headwind from currency translation in the quarter on a constant currency basis, as compared to the prior year's results.

Whistler Blackcomb's summer business performed well, with strong results from its world class mountain biking operations and summer activities, including the new Cloudraker Skybridge, which was very popular with sightseers. Our US Epic Discovery business continues to grow and generate strong financial returns on the capital we invested, and performed in line with our expectations for the quarter.

Our lodging business produced another strong first fiscal quarter, with continued success from our properties at Grand Teton Lodge Company and at our Colorado and Utah resorts.

Turning now to our 2018-2019 North American pass sales for our resorts and early season indicators. As we approach the end of our selling period, season pass sales for the North American ski season are up approximately 21% in units and approximately 13% in sales through December 2, 2018 compared to the prior year period ended December 3, 2017. These results include all military pass sales and pass sales from Stevens Pass and Triple Peaks in both periods and are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.77 between the Canadian dollar and the US dollar to the current period and prior period for Whistler Blackcomb pass sales.

Growth in our total season pass sales dollars was lower than our unit growth given the inclusion of the new Military Epic Pass, which is available at a substantial discount to our Epic Pass.

The average price increase on all non-military passes was approximately 3.3%. Excluding sales of military passes to new purchasers, who were not pass holders last year, season pass sales increased approximately 8% in units and 10% in sales dollars over the comparable period in the prior year.

We're very pleased to see double digit revenue growth in our