Vail Resorts Stock Price, News & Analysis

Vail Resorts, a leading mountain resort operator, has renewed partnerships with eight companies, including PepsiCo and GMC, and introduced a new partnership with Luggage Forward. These collaborations aim to enhance guest experiences during the 2020/21 ski season. Vail Resorts is committed to sustainability and customer convenience, focusing on waste reduction and innovative services like luggage shipping. The company now has strategic alliances with 20 partners, emphasizing its mission to provide exceptional experiences while ensuring safety during the ongoing pandemic.

Vail Resorts, Inc. (NYSE: MTN) reported significant declines in ski season metrics for the 2020/2021 period through January 3, 2021. Total skier visits dropped by 16.6%, while lift ticket revenue fell by 20.9%. Ski school and dining revenues experienced declines of 52.6% and 66.2%, respectively. CEO Rob Katz attributed these decreases to COVID-19 impacts and reduced demand, particularly in regions with heightened restrictions. The company refrained from providing full-year guidance due to ongoing uncertainties but remained optimistic about potential improvements if conditions stabilize.

Vail Resorts, Inc. (NYSE: MTN) announced the pricing of $500 million in 0.00% convertible senior notes due in 2026. The offering, set to settle on December 18, 2020, includes an option for purchasers to acquire an additional $75 million in notes. The notes, which will not accrue interest, have an initial conversion rate of 2.4560 shares per $1,000. The proceeds, estimated at around $487 million, will be used for general corporate purposes. The company warned that market conditions and other risks could affect the offering's completion.

Vail Resorts, Inc. (NYSE: MTN) has announced a private offering of $500 million in convertible senior notes due January 1, 2026, to qualified institutional buyers. An additional $75 million may also be offered. The notes will be unsecured, accruing semi-annual interest, and will be convertible under certain conditions. Proceeds are intended for general corporate purposes. The offering has not been registered under the Securities Act, limiting its sale to exemptions. Market conditions and business risks could affect the completion and terms of the offering.

Vail Resorts (NYSE: MTN) reported a net loss of $153.8 million for Q1 FY2021, a 44.4% increase from last year, primarily due to COVID-19 impacts. Resort Reported EBITDA loss was $94.8 million, increased from $76.7 million in Q1 FY2020. Season pass sales rose 20% in units but were flat in sales dollars compared to the previous year, influenced by credit redemptions. The company maintains strong liquidity with $614 million cash and $1.2 billion total cash and credit availability. The outlook remains cautious with expected declines in visitation and revenue due to travel restrictions and COVID-19 measures.

Luggage Forward has partnered with Vail Resorts (NYSE: MTN) to serve as their official luggage and sports equipment shipping service. This collaboration aims to enhance the travel experience for guests by allowing them to ship their gear directly to the resorts, avoiding the hassle of airport luggage handling. The service ensures reliable delivery to multiple destinations, including iconic locations within Vail Resorts' portfolio. Both companies are committed to sustainability, with Luggage Forward offsetting emissions through a partnership with Carbonfund.org.

Vail Resorts, Inc. (NYSE: MTN) will announce its fiscal first quarter 2021 financial results, ending October 31, 2020, after market close on December 10, 2020. A conference call to discuss these results is set for 5:00 PM ET the same day. Investors can access the call via telephone or through the company's website. A replay will be available two hours after the call until December 24, 2020. Vail Resorts operates 37 premier mountain resorts including Vail and Whistler Blackcomb, and is a leader in the global ski resort industry.

Vail Resorts (NYSE: MTN) reported a 67.2% decline in net income for fiscal 2020 to $98.8 million, largely due to COVID-19 impacts. The resort's EBITDA dropped 28.8% to $503.3 million, with revenues declining 13.6% to $1.96 billion. Season pass sales showed 18% growth in units sold, but revenue decreased 4%. As of August 31, 2020, Vail maintained a robust liquidity position with $360 million in cash and $593 million in credit availability. COVID-19 continues to pose challenges, and full-year guidance for fiscal 2021 remains suspended.