Vail Resorts Inc. (NYSE:MTN) Q3 2019 Earnings Conference Call Transcript

Jun 06, 2019 • 05:00 pm ET

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Vail Resorts Inc. (NYSE:MTN) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen. And welcome to today's Vail Resorts Third Quarter Fiscal 2019 Earnings Call. Just as a quick reminder, today's program is being recorded.

And at this time, I'd like to turn the floor over to Mr. Rob Katz.

Executive
Robert A. Katz

Thank you. Good afternoon, everyone. Welcome to our third quarter fiscal 2019 earnings conference call. Joining me on the call this afternoon is Michael Barkin, our Chief Financial Officer.

Before we begin, let me remind you that some information provided during this call may include forward-looking statements that are based on certain assumptions and are subject to a number of risks and uncertainties as described in our SEC filings and actual future results may vary materially. Forward-looking statements in our press release issued this afternoon along with our remarks on this call are made as of today, June 6, 2019, and we undertake no duty to update them as actual events unfold.

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 afternoon 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 third quarter fiscal 2019 results. We are pleased with our overall results for the quarter and for the full 2018-2019 North American ski season, with strong growth in visitation and spending compared to the prior year, including a strong finish to the season with good conditions across our Western US destination resorts.

After the challenging early season period for destination visitation, our results for the remainder of the season were largely in line with our original expectation. Our results throughout the 2018-2019 North American ski season highlight the growth and stability, resulting from our season pass, the benefit of our geographic diversification, the investments we make in our resorts and the success of our sophisticated data driven marketing efforts. Our Colorado, Utah and Tahoe resorts experienced strong local and destination visitation throughout the third fiscal quarter, supported by favorable conditions across the Western US, which also allowed for an extension of the ski season for select resorts in Colorado and Tahoe.

The company continued experiencing relative weakness in international visitation compared to the prior year, particularly at Whistler Blackcomb. Total lift revenue increased 16.4%, driven by a 14.3% growth in skier visitation primarily from Triple Peaks and Stevens Pass. Total effective ticket price, or ETP increased 1.8% in the third quarter compared to the prior year, primarily due to price increases in both our lift ticket and season pass products, partially offset by higher skier visitation by season pass holders, lower ETP from the acquired Triple Peaks and Stevens Pass Resort and the new Military Epic Pass. Excluding season pass holders, ETP increased 5.5% compared to the prior year. The growth in visitation and spending compared to the prior year, along with the addition of Triple Peaks