VAIL RESORTS INC Q4 FY2024 earnings call

• Fiscal 2024 Results: Net income attributable to Vail Resorts was $230.4 million ($6.07 per diluted share) in fiscal 2024, down from $268.1 million ($6.74 per diluted share) in fiscal 2023, due to higher taxes, lower Resort Reported EBITDA, increased interest, and depreciation. - Resource Efficiency Transformation Plan: Three pillars: Scaled operations, global shared services, expanded workforce management. Aim to achieve $100 million annualized cost efficiencies by end of fiscal 2026, with $27M in fiscal 2025 and $67M in 2026, offset by one-time costs. - Capital Plan: 2024 capital plan ~$216M-$221M, including launching My Epic Gear for 2024-2025 season and planning projects like Sunrise lift replacement at Park City and lift replacement at Perisher.

North America Ski: Skier visitation declined 8% in the winter season relative to the prior year, with ancillary spending per visit growing in ski school, dining, and rental businesses. Australia Ski: Snowfall at Australian resorts declined 28% from the prior year, 44% below the 10-year average, leading to an 18% decline in skier visitation in the fourth quarter. North America Summer Mountain: Revenue grew 15% vs prior year despite underperforming expectations due to fewer weather-related and construction-related disruptions. Pass Products: 2024-2025 North American pass sales decreased ~3% in units but increased ~3% in sales dollars. Renewing pass holders showed growth, especially tenured ones, while new pass holders declined due to reduced lift visitation and delayed decision-making.

• Fiscal 2025 Outlook: Net income between $224M and $300M. Resort Reported EBITDA between $838M and $894M, including $15M one-time costs from transformation and $1M integration expenses. Assumes normal weather, continuation of economic environment. Exchange rates factored in. - Return of Capital: Declared $2.22 per share dividend, repurchased ~0.1M shares in the quarter, Board increased share repurchase authorization.

• Weather Impact: Unfavorable weather conditions affected skier visitation and performance, especially in Australia. - Industry Normalization: Continued industry normalization post-COVID impacted demand, affecting pass sales and visitation. - Regulatory Risks: Potential regulatory actions related to acquisitions or operations, though no current indications of such impacts.

Q: Discussion on guidance and weather impact A: Angela Korch explained guidance factors in return to normal weather but offset by normal operating costs and industry normalization, with Australia Q1 impact factored in.

Q: Resource Efficiency Transformation Plan details A: Kirsten Lynch discussed scaled operations, global shared services, expanded workforce management, with scaled operations being the largest part, impacting less than 2% of total workforce.

Q: M&A and capital allocation A: Kirsten Lynch mentioned focus on high-return projects, M&A opportunities, dividend, and share repurchases as capital allocation priorities.

Q: Weather normalization and visitation A: Kirsten Lynch and Angela Korch discussed normalization of industry behavior and anchoring to normalized ski industry participation.

Q: Corporate reductions and M&A strategy A: Kirsten Lynch detailed corporate reductions in internal business services and M&A strategy focusing on geographic diversification and executional excellence.