Vail Resorts (MTN) Reports Narrower-Than-Expected Loss In Q1
Zacks Investment Research | Dec 10, 2018 12:28AM ET
Vail Resorts, Inc. (NYSE:MTN) reported narrower-than-expected results in first-quarter fiscal 2019. Adjusted loss of $2.43 per share was narrower than the Zacks Consensus Estimate of a loss of $2.44. However, it compared unfavorably with the year-ago quarter’s loss of $2. However, on a GAAP basis, the company reported a net loss of $2.66 per share.
Earnings were affected by high operating expenses in Resorts and both the Mountain and Lodging segments.
Quarterly revenues of $220 million missed the consensus mark by 6.3% and declined 0.5% year over year. Following the results, shares of the company lost as much as 17.9% on Dec 7.
In conjunction with the earnings release, the company announced plans to invest about $175-$180 million with an aim to improve guest experience in the 2019-20 winter ski and snowboard season. Meanwhile, the company has spent more than $1.2 billion over the last decade. The company will implement new technology to improve direct-to-lift access at Vail, Beaver Creek and Keystone.
Segment Results
Vail Resorts has two reporting segments — Mountain (65.9% in first-quarter fiscal 2019) and Lodging (32.4%).
The Mountain segment reported revenues of $145 million in the quarter, down 2.1% year over year. The revenue decline can be primarily attributed to decrease in the average Australian exchange rate as compared to the prior year.
Under the segment, EBITDA loss was $76.4 million compared with $58.4 million in the prior-year quarter. Operating expenses at the Mountain segment were $222.4 million, up 7.4% year over year.
Lodging net revenues in the reported quarter amounted to $74.9 million, up 3.9% year over year. Lodging revenues were favored by an increase in sales across owned hotel rooms, managed condominium rooms, dining, golf and other, partially offset by a drop in transportation sales.
Under the segment, EBITDA was $3.9 million compared with $4.4 million in the prior-year quarter. Operating expenses at the Lodging segment increased 4.8% year over year to $71 million.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
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