Vail Resorts Reports $172.8 Million Net Loss, Revenue Growth Amid Decline in Skier Visits

Vail Resorts, Inc. reported a net loss of $172.8 million for the three months ended October 31, 2024, a slight improvement from a net loss of $175.5 million during the same period in 2023. The company's total net revenue for the quarter was $260.3 million, up from $258.6 million year-over-year. The increase in revenue was primarily driven by growth in the Mountain and Lodging segments, which saw net revenues of $173.3 million and $86.9 million, respectively, compared to $172.5 million and $81.8 million in the prior year. However, the overall operating loss was impacted by increased operating expenses, which rose to $403.6 million from $400.1 million in the previous year.

The company experienced a notable decline in skier visits, which fell by 16.7% to 548,658, contributing to a 10.9% decrease in lift revenue. This decline was attributed to adverse weather conditions affecting operations in Australia, where the ski season concluded early. Despite this, dining revenue increased by 14.1%, reflecting a rise in summer group events and higher guest spending at North American resorts. The Lodging segment also showed resilience, with a 6.2% increase in net revenue, driven by higher occupancy rates and average daily rates (ADR) at owned hotels.

In terms of strategic developments, Vail Resorts completed the acquisition of Crans-Montana in Switzerland on May 2, 2024, for a total consideration of approximately $106.8 million. This acquisition is expected to enhance the company's portfolio and operational capabilities in the European market. The company also reported a significant gain on the sale of real property amounting to $16.5 million, primarily related to a legal resolution concerning a property in Eagle County, Colorado.

As of October 31, 2024, Vail Resorts had total assets of $5.6 billion and total liabilities of $4.9 billion, resulting in stockholders' equity of $745.3 million. The company’s cash and cash equivalents stood at $403.8 million, a decrease from $728.9 million a year earlier, largely due to the cash outflow associated with the Crans-Montana acquisition and share repurchases. The company’s long-term debt was reported at $2.7 billion, with net debt increasing to $2.4 billion from $2.1 billion year-over-year.

Looking ahead, Vail Resorts anticipates that its Mountain and Lodging segments will continue to generate significant operating cash flows, particularly during the peak winter season. The company remains focused on maintaining liquidity through its existing cash reserves and credit facilities, while also planning for capital expenditures of approximately $216 million in the upcoming fiscal year. The board has approved a cash dividend of $2.22 per share, reflecting the company's commitment to returning value to shareholders despite the ongoing challenges in the operating environment.