Vail Resorts, Inc. is a holding company, which engages in the operation of mountain resorts. It operates through the following segments: Mountain, Lodging, and Real Estate. The Mountain segment covers the operation of mountain resorts or ski areas, and related activities. The Lodging segment includes ownership of hotels, condominium management, Colorado resort ground transportation company, and mountain resort golf courses. The Real Estate segment holds real property at mountain resorts primarily throughout Summit and Eagle Counties in Colorado. The company was founded by Pete Seibert and Earl Eaton in March 1957 and is headquartered in Broomfield, CO.
We are subject to the risk of prolonged weakness in general economic conditions including adverse effects on the overall travel and leisure related industries.
We are vulnerable to unfavorable weather conditions and the impact of natural disasters.
Failure to maintain the integrity and security of our internal, employee or guest data could result in damages to our reputation and subject us to costs, fines or lawsuits.
Cyber-attacks could disrupt our business.
Leisure and business travel are particularly susceptible to various factors outside of our control, including terrorism, the uncertainty of military conflicts, outbreaks of contagious diseases, the cost and availability of travel options and change in consumer preferences.
Our business is highly seasonal.
We face significant competition.
The high fixed cost structure of mountain resort operations can result in significantly lower margins if revenues decline.
We may not be able to fund resort capital expenditures.
A disruption in our water supply would impact our snowmaking capabilities and operations
We rely on various government permits and landlord approvals at our U.S. resorts.
We rely on foreign government leases and landlord approvals, and are subject to certain related laws and regulations, at our international resorts.
We are subject to extensive environmental and health and safety laws and regulations in the ordinary course of business.
Changes in security and privacy laws and regulations could increase our operating costs, increase our exposure to fines and litigation, and adversely affect our ability to market our products, properties and services effectively
We rely on information technology to operate our businesses and maintain our competitiveness, and any failure to adapt to technological developments or industry trends could harm our business or competitive position.
We depend on a seasonal workforce.
We are subject to risks associated with our workforce, including increased labor costs.
If we do not retain our key personnel, our business may suffer.
We are subject to litigation in the ordinary course of business.
Our business depends on the quality and reputation of our brands, and any deterioration in the quality or reputation of these brands could have an adverse impact on our business.
There is a risk of accidents occurring at our mountain resorts or competing mountain resorts which may reduce visitation and negatively impact our operations.
Our acquisitions, including Hotham, Falls Creek or Peak Resorts, might not be successful.
We have recently acquired companies that were not subject to rules and regulations promulgated under the Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley”), and, therefore, they may lack the internal controls of a U.S. public company, which could ultimately affect our ability to ensure compliance with the requirements of Section 404 of Sarbanes-Oxley
Our international operations subject us to additional risks.
Exchange rate fluctuations could result in significant foreign currency gains and losses and affect our business results.
We are subject to accounting and tax regulations and use certain estimates and judgments that may differ significantly from actual results, including adverse determinations by tax authorities.
Our stock price is highly volatile.
We cannot provide assurance that we will continue to increase dividend payments and/or pay dividends.
Anti-takeover provisions affecting us could prevent or delay a change of control that is beneficial to our stockholders.
Our indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations.
Restrictions imposed by the terms of our indebtedness may prevent or limit our future business plans.
We cannot guarantee that we will repurchase our common stock pursuant to our share repurchase program or that our share repurchase program will enhance long-term stockholder value. Share repurchases could also increase the volatility of the price of our common stock and could diminish our cash reserves
The results reflect an increase in Mountain Reported EBITDA of $87.0 million, or 14.7%, primarily as a result of strong North American pass sales growth for the 2018/2019 North American ski season, strong growth in visitation and spending at our western U.S. resorts and the incremental operations of Stevens Pass, Triple Peaks and Falls Creek/Hotham (acquired in August 2018, September 2018 and April 2019, respectively). Although our Destination guest visitation was less than expected in the pre-holiday period, results from the key holiday weeks through the spring were largely in line with our original expectations, which, when combined with incremental skier visits from Stevens Pass, Triple Peaks and Falls Creek/Hotham, resulted in an increase in total skier visitation of 21.5%. Operating results from Whistler Blackcomb and Perisher, which are translated from Canadian dollars and Australian dollars, respectively, to U.S. dollars, were adversely affected by a decrease in the Canadian and Australian dollar exchange rates relative to the U.S. dollar as compared to prior year, resulting in a decline in Mountain Reported EBITDA of approximately $8 million, which the Company calculated on a constant currency basis by applying current period foreign exchange rates to the prior period results. Additionally, Fiscal 2019 and Fiscal 2018 results include $16.4 million and $10.2 million of acquisition and integration related expenses, respectively.