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Vail Resorts misses Q4 estimates as weather impacts results

EditorRachael Rajan
Published 27/09/2024, 06:16 am
© Reuters.
MTN
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BROOMFIELD, Colorado - Vail Resorts (NYSE:MTN) reported fourth quarter results that fell short of analyst expectations, as challenging weather conditions impacted visitation at its mountain resorts. Shares were trading marginally lower Thursday following the announcement.

The ski resort operator posted a loss of $4.67 per share for the quarter ended July 31, wider than the $4.22 loss analysts were forecasting. Revenue came in at $265.4 million, slightly below estimates of $266.9 million.

Vail said skier visits declined 19.4% in the quarter compared to the prior year, driven by unfavorable conditions at its Australian resorts. Snowfall at the company's Australian properties was down 28% from last year and 44% below the 10-year average.

"Fourth quarter Resort Reported EBITDA declined from the prior year and expectations, primarily driven by underperformance in our Australian winter business," said CEO Kirsten Lynch.

For the full fiscal year 2024, Vail reported net income of $230.4 million, down from $268.1 million in fiscal 2023. Resort Reported EBITDA was $825.1 million, compared to $834.8 million the prior year.

Looking ahead, Vail expects fiscal 2025 net income between $224 million and $300 million and Resort Reported EBITDA of $838 million to $894 million. The guidance assumes a return to normal weather conditions after challenging conditions in fiscal 2024.

The company also announced a $100 million multi-year resource efficiency transformation plan aimed at creating organizational effectiveness as it expands globally. Vail expects to achieve $100 million in annualized savings by the end of fiscal 2026.

Vail declared a quarterly dividend of $2.22 per share, payable on October 24 to shareholders of record as of October 8.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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