Vail Resorts (MTN) Tops Q4 EPS by 18c
Vail Resorts (NYSE: MTN) reported Q4 EPS of ($2.07), $0.18 better than the analyst estimate of ($2.25). Revenue for the quarter came in at $211.6 million versus the consensus estimate of $213.33 million.
Guidance
Commenting on guidance for fiscal 2019, Katz said, "Net income attributable to Vail Resorts, Inc. is expected to be between $288 million and $335 million in fiscal 2019. Our guidance includes an estimated benefit between $32 million and $40 million from the reduction of our U.S. federal tax rate from 35% to 21% as a result of the U.S. Tax Reform. We estimate Resort Reported EBITDA for fiscal 2019 will be between $718 million and $750 million. Our Resort Reported EBITDA guidance includes the operating results for Stevens Pass, Okemo, Mount Sunapee and Crested Butte from the date of acquisition and also includes approximately $11 million of anticipated acquisition and integration related expenses. Apart from our normal business drivers, our guidance for fiscal 2019 includes the following additional assumptions: (i) a full rebound in our performance in our second fiscal quarter, as compared to fiscal 2018, from assumed normal conditions throughout the period; (ii) a negative impact to our fiscal 2019 third quarter from the late Easter holiday (which is on April 21, 2019); (iii) $15 million of incremental expense related to above normal increases in labor costs, due to increasing our minimum wage by over $1 per hour at most resorts and other significant investments in compensation, all implemented due to both local market wage pressure and the benefits the Company received from U.S. Tax Reform; and (iv) a $6 million negative Resort Reported EBITDA impact from assumed lower rates for the Australian and Canadian dollars versus the average rates in fiscal 2018. We expect Resort EBITDA Margin to be approximately 31.5% in fiscal 2019, using the midpoint of the guidance range. This is an estimated 80 basis point increase over fiscal 2018. We estimate fiscal 2019 Real Estate Reported EBITDA to be between negative $3 million and $3 million. Fiscal 2019 guidance does not include any payroll tax impacts or income tax benefits related to the potential exercise of CEO stock appreciation awards."
All of these estimates are predicated on the assumption of normal weather conditions throughout the ski season and an exchange rate of $0.77 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.72 between the Australian Dollar and U.S. Dollar, related to the operations of Perisher in Australia.
The following table reflects the forecasted guidance range for the Company's fiscal year ending July 31, 2019, for Reported EBITDA (after stock-based compensation expense) and reconciles such Reported EBITDA guidance to net income attributable to Vail Resorts, Inc. guidance for fiscal 2019.
Fiscal 2019 Guidance | |||||||
(In thousands) | |||||||
For the Year Ending | |||||||
July 31, 2019 (6) | |||||||
Low EndRange | High EndRange | ||||||
Mountain Reported EBITDA (1) | $ | 685,000 | $ | 715,000 | |||
Lodging Reported EBITDA (2) | 30,000 | 38,000 | |||||
Resort Reported EBITDA (3) | 718,000 | 750,000 | |||||
Real Estate Reported EBITDA | (3,000) | 3,000 | |||||
Total Reported EBITDA | 715,000 | 753,000 | |||||
Depreciation and amortization | (217,000) | (209,000) | |||||
Interest expense, net | (82,000) | (76,000) | |||||
Other (4) | (10,000) | (7,000) | |||||
Income before provision for income taxes | 406,000 | 461,000 | |||||
Provision for income taxes (5) | (90,000) | (102,000) | |||||
Net income | 316,000 | 359,000 | |||||
Net income attributable to noncontrolling interests | (28,000) | (24,000) | |||||
Net income attributable to Vail Resorts, Inc. | $ | 288,000 | $ | 335,000 | |||
For earnings history and earnings-related data on Vail Resorts (MTN) click here.