Katz added, "Total Mountain net revenue increased 13.2% for fiscal 2013. This was driven by a 13.6% increase in total skier visits, driving a $48.3 million, or 14.1%, increase in lift revenue compared to prior year. Lift revenue, excluding season pass revenue, increased $36.4 million, or 17.6%, and season pass revenue increased $11.9 million, or 8.8% compared to prior year. Our ancillary businesses also performed well reflecting improvements in consumer spending that resulted in higher spending per guest. Relative to prior year, fiscal 2013 dining revenue increased 18.7%, ski school revenue increased 13.0%, and retail/rental revenue increased 9.7%".
Mountain Segment Highlights:
- Total Skier Visits for fiscal 2013 increased to 7.0 million, from 6.1 million in fiscal 2012, a 13.6% increase.
- Lift revenue excluding the Acquisitions and excluding season pass holders, increased $26.4 million in fiscal 2013, or 12.8%, compared to the prior fiscal year.
- Effective Ticket Price ("ETP") excluding season pass holders, and excluding the Acquisitions, increased $4.94 in fiscal 2013, or 6.7% over the prior fiscal year.
- Mountain Reported EBITDA for fiscal 2013 increased $29.8 million, or 15.0% to $228.7 million compared to the prior fiscal year. Excluding the Acquisitions, Mountain Reported EBITDA for fiscal 2013 increased $32.7 million or 16.5% over the prior fiscal year.
- Mountain Reported EBITDA includes $9.0 million and $7.6 million of stock-based compensation expense for fiscal 2013 and fiscal 2012, respectively.
Lodging Segment Highlights:
- Lodging segment net revenue was $211.0 million for fiscal 2013 compared to $210.6 million for the prior fiscal year, a 0.2% increase. Excluding payroll cost reimbursements related to managed hotel properties, total Lodging revenues increased 6.5% over the prior fiscal year.
- For fiscal 2013, ADR increased 1.7% and RevPAR increased 6.4% at the Company's owned hotels and managed condominiums, excluding Canyons, compared to the prior fiscal year.
- Lodging Reported EBITDA increased 91.4% to $12.2 million for fiscal 2013 compared to the prior fiscal year. Excluding Canyons contribution, Lodging Reported EBITDA was $11.4 million for fiscal 2013.
- Lodging Reported EBITDA includes $1.9 million and $1.7 million of stock-based compensation expense for fiscal 2013 and fiscal 2012, respectively.
Resort — Combination of Mountain and Lodging Segments:
- Resort net revenue was $1,078.5 million for fiscal 2013, up 10.4% compared to the prior fiscal year. Excluding the Acquisitions, Resort net revenue increased 7.0% to $1,045.5 million in fiscal 2013.
- Resort Reported EBITDA increased 17.3% to $240.9 million for fiscal 2013, compared to the prior fiscal year. Excluding the Acquisitions, Resort Reported EBITDA increased 18.4% to $242.9 million.
Katz continued, "Our balance sheet continues to be very strong. We ended the quarter with $138.6 million of cash on hand, an increase of $92.6 million from July 31, 2012, and no borrowings under the revolver of our senior credit facility. Our Net Debt was 2.8 times trailing twelve months Total Reported EBITDA which includes $306.3 million of capitalized long-term obligations associated with the Canyons transaction. I am also very pleased to announce that our Board of Directors has declared a quarterly cash dividend on Vail Resorts' common stock. The quarterly dividend will be .2075 per share of common stock and will be payable on October 24, 2013 to shareholders of record on October 9, 2013".
Commenting on the Company's season pass sales for the upcoming 2013/2014 ski season, Katz said, "We are extremely pleased that our season pass sales for the upcoming 2013/2014 ski season continue to show strong growth and demonstrate the compelling value proposition of our season pass products to our loyal guests. Through September 22, 2013, season pass sales increased approximately 19% in units and approximately 23% in sales dollars, as compared to the prior year period through September 23, 2012. These growth rates are consistent with the growth rates we reported in Spring 2013 and exceeded our expectations. Since announcing the Canyons transaction in late May 2013, we have seen a material acceleration in pass sales in the Tahoe and Utah markets as well as in our destination markets. Our Minneapolis and Detroit markets continue to show growth rates well in excess of our overall results and we continue to see strong performance in Colorado as well. We believe this will be a strong overall year for pass sales, though we expect the final growth rates for the full selling season to be materially lower than where we are through September, as we know a portion of the significant increase in sales to date is due to pass holders who purchased last fall buying passes earlier in the year".
Turning to guidance for fiscal 2014, Katz commented, "We are excited about the upcoming ski season and expect to build upon the positive momentum from fiscal 2013 with several new initiatives in fiscal 2014 that we hope will continue to elevate the guest experience and financial results at our resorts. As always, our visibility into the upcoming ski season is limited at this point in time. Our guidance for fiscal 2014 anticipates normal weather conditions and a continuation of the current economic environment. Based on our current estimates, our fiscal 2014 guidance range anticipates Resort Reported EBITDA of between $280.0 million and $295.0 million, including approximately $11.9 million of non-cash stock based compensation expense. We expect that Canyons EBITDA, including its impact on our overall season pass sales and excluding non-recurring integration and litigation related expenses, will modestly exceed our prior guidance for its first full year of operations. We anticipate that integration and litigation related expenses in fiscal 2014, which are included in our Resort Reported EBITDA guidance, will be approximately $7.2 million, including an estimated $5.0 million in fees associated with the Park City Mountain Resort litigation. As we continue to focus on driving profitable growth, we expect to increase our Resort EBITDA Margin (defined as Resort Reported EBITDA divided by Resort net revenue) by approximately 0.7 percentage points to 23.0% in fiscal 2014 at the midpoint of our guidance range. Our Real Estate segment results are impacted in any given year by the timing and mix of real estate sold and closed. For fiscal 2014, we are estimating Real Estate Reported EBITDA of negative $14.0 million to negative $8.0 million, including approximately $1.7 million of non-cash stock-based compensation expense. We expect Net Real Estate Cash Flow of $15.0 million to $25.0 million (including proceeds from recovery of previously incurred project costs and after any additional investments made into the projects). Net income attributable to Vail Resorts, Inc. is expected to be in a range of $37.0 million to $55.0 million for fiscal 2014".
Regarding advance Lodging bookings, Katz said, "Although it is still early in the cycle (less than 15% of winter season bookings are historically made by this time), we are pleased that at this point bookings are up in both room nights and revenue over the prior year".
In conclusion, Katz said, "fiscal 2014 will be an exciting year for Vail Resorts. We are integrating Canyons Resort, Afton Alps and Mount Brighton into our pass products, marketing efforts and operations. The opening of Peak 6 at Breckenridge, Chair 4 at Vail and the new Red Tail on-mountain restaurant at Beaver Creek will be important drivers of growth for these critical resorts in Colorado. And we will continue to build and open more summer activities over the course of the fiscal year as part of our Epic Discovery program across our resorts. We look forward to welcoming our guests to enjoy all of our resorts and lodging properties along with our new offerings over the coming year".
Vail Resorts is the leading mountain resort operator in the United States. The Company's subsidiaries operate the mountain resorts of Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Afton Alps in Minnesota and Mt. Brighton in Michigan; and the Grand Teton Lodge Company in Jackson Hole, Wyoming. The Company's subsidiary, RockResorts, a luxury resort hotel company, manages casually elegant properties. Vail Resorts Development Company is the real estate planning, development and construction subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE: MTN).