Vail Resorts Inc. (NYSE:MTN) Q3 2020 Earnings Conference Call - Final Transcript

Jun 04, 2020 • 05:00 pm ET

Previous

Vail Resorts Inc. (NYSE:MTN) Q3 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good day and welcome to the Vail Resorts Third Quarter Fiscal 2020 Earnings Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mr. Katz. Please go ahead, sir.

Executive
Robert A. Katz

Thank you. Good afternoon, everyone. Welcome to our third quarter fiscal 2020 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 4, 2020, 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 2020 results. Our results for the quarter and for the full 2019-2020 North American Ski season were significantly impacted by COVID-19 and the resulting closure of our North American Mountain Resorts beginning March 15, 2020. A decision we made for the safety of our guests, employees and resort communities. In addition, even before the closure and during the first two weeks of March, we experienced a negative change in performance that we believe was due to the impact of COVID-19 on traveler behavior.

As of March 18, 2020, we anticipated that our operating results in March and April would be negatively impacted by $180 million to $200 million, compared to the resort reported EBITDA expectation we had on March 1, 2020. Relative to these expectations, our results were favorable by approximately $40 million, primarily driven by cost actions implemented in April 2020. In addition, resort reported EBITDA for the quarter was negatively impacted by the deferral of approximately $113 million of pass product revenue and related deferred costs to fiscal 2021. As a result of pass holder credits offered to 2019-2020 North American pass holders to encourage renewal for next season.

Looking ahead to our summer operations, we are planning to be operational for the North American Summer and Australian Ski season in late June or early July, which could vary by resort, and opening dates for each business are subject to new information and public health guidance with regard to COVID-19. We expect that our results in the fourth quarter of fiscal 2020 will be materially negatively impacted by the travel environment and we will see lower visitation to our resort properties. However, we are not able to fully assess that impact at this time, and will not