VAIL RESORTS INC

Previous wording

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 (“Form 10-K”) and the Consolidated Condensed Financial Statements as of January 31, 2025 and 2024 and for the three and six months then ended, included in Part I, Item 1 of this Form 10-Q, which provide additional information regarding our financial position, results of operations and cash flows. To the extent that the following MD&A contains statements which are not of a historical nature, such statements are forward-looking statements, which involve risks and uncertainties. See “Forward-Looking Statements” below. These risks include, but are not limited to, those discussed in our filings with the Securities and Exchange Commission (“SEC”), including the risks described in Item 1A. “Risk Factors” of Part I of our Form 10-K, which was filed on September 26, 2024.

Current wording

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 (“Form 10-K”) and the Consolidated Condensed Financial Statements as of April 30, 2025 and 2024 and for the three and nine months then ended, included in Part I, Item 1 of this Form 10-Q, which provide additional information regarding our financial position, results of operations and cash flows. To the extent that the following MD&A contains statements which are not of a historical nature, such statements are forward-looking statements, which involve risks and uncertainties. See “Forward-Looking Statements” below. These risks include, but are not limited to, those discussed in our filings with the Securities and Exchange Commission (“SEC”), including the risks described in Item 1A. “Risk Factors” of Part I of our Form 10-K, which was filed on September 26, 2024.

Previous wording

Additionally, the Mountain segment includes ancillary services, primarily including ski school, dining and retail/rental operations, and for our Australian ski areas, including lodging and transportation operations. Mountain segment revenue is seasonal, with the majority of revenue earned from our North American and European ski operations occurring in our second and third fiscal quarters and the majority of revenue earned from our Australian ski operations occurring in our first and fourth fiscal quarters. Our North American and European Resorts typically experience their peak operating season for the Mountain segment from mid-December through mid-April, and our Australian ski areas typically experience their peak operating season from June to early October. Consequently, our first and fourth fiscal quarters are seasonally low periods as most of our North American and European ski operations are generally not open for business, and the activity of our Australian ski areas’ peak season and our North American and European summer operating results are not sufficient to offset the losses incurred during these seasonally low periods. Revenue of the Mountain segment during the first and fourth fiscal quarters is primarily generated from summer and group related visitation at our North American and European destination mountain resorts, retail/rental operations and peak season Australian ski operations. Our largest source of Mountain segment revenue is the sale of lift tickets (including pass products), which represented approximately 61% and 60% of Mountain segment net revenue for the three months ended January 31, 2025 and 2024, respectively.

Current wording

Additionally, the Mountain segment includes ancillary services, primarily including ski school, dining and retail/rental operations, and for our Australian ski areas, including lodging and transportation operations. Mountain segment revenue is seasonal, with the majority of revenue earned from our North American and European ski operations occurring in our second and third fiscal quarters and the majority of revenue earned from our Australian ski operations occurring in our first and fourth fiscal quarters. Our North American and European Resorts typically experience their peak operating season for the Mountain segment from mid-December through mid-April, and our Australian ski areas typically experience their peak operating season from June to early October. Consequently, our first and fourth fiscal quarters are seasonally low periods as most of our North American and European ski operations are generally not open for business, and the activity of our Australian ski areas’ peak season and our North American and European summer operating results are not sufficient to offset the losses incurred during these seasonally low periods. Revenue of the Mountain segment during the first and fourth fiscal quarters is primarily generated from summer and group related visitation at our North American and European destination mountain resorts, retail/rental operations and peak season Australian ski operations. Our largest source of Mountain segment revenue is the sale of lift tickets (including pass products), which represented approximately 64% and 62% of Mountain segment net revenue for the three months ended April 30, 2025 and 2024, respectively, and approximately 59% of Mountain segment net revenue for both the nine months ended April 30, 2025 and 2024.

Previous wording

Lift revenue is driven by volume and pricing. Pricing is impacted by absolute pricing, as well as both the demographic and geographic mix of guests, which impacts the price points at which various products are purchased. The demographic mix of guests that visit our North American Resorts is divided into two primary categories: (i) out-of-state and international (“Destination”) guests and (ii) in-state and local (“Local”) guests. The geographic mix depends on levels of visitation to our destination mountain resorts versus our regional ski areas. For the three months ended January 31, 2025, Destination guests comprised approximately 52% of our North American destination mountain resort skier visits (excluding complimentary access), while Local guests comprised approximately 48% of our North American destination mountain resort skier visits (excluding complimentary access), which compares to 55% and 45%, respectively, for the three months ended January 31, 2024. Skier visitation at our regional ski areas is largely comprised of Local guests. Destination guests generally purchase our higher-priced lift tickets (including pass products) and utilize more ancillary services such as ski school, dining and retail/rental, as well as lodging at or around our mountain resorts. Additionally, Destination guest visitation is less likely to be impacted by changes in the weather during the current season, but may be more impacted by adverse economic conditions, the global geopolitical climate, travel disruptions or weather conditions in the immediately preceding ski season. Local guests tend to be more value-oriented and weather-sensitive.

Current wording

Lift revenue is driven by volume and pricing. Pricing is impacted by absolute pricing, as well as both the demographic and geographic mix of guests, which impacts the price points at which various products are purchased. The demographic mix of guests that visit our North American Resorts is divided into two primary categories: (i) out-of-state and international (“Destination”) guests and (ii) in-state and local (“Local”) guests. The geographic mix depends on levels of visitation to our destination mountain resorts versus our regional ski areas. For the 2024/2025 North American ski season, Destination guests comprised approximately 56% of our North American destination mountain resort skier visits (excluding complimentary access), while Local guests comprised approximately 44% of our North American destination mountain resort skier visits (excluding complimentary access), which compares to 57% and 43%, respectively, for the 2023/2024 North American ski season. Skier visitation at our regional ski areas is largely comprised of Local guests. Destination guests generally purchase our higher-priced lift tickets (including pass products) and utilize more ancillary services such as ski school, dining and retail/rental, as well as lodging at or around our mountain resorts. Additionally, Destination guest visitation is less likely to be impacted by changes in the weather during the current season, but may be more impacted by adverse economic conditions, the global geopolitical climate, travel disruptions or weather conditions in the immediately preceding ski season. Local guests tend to be more value-oriented and weather-sensitive.

Previous wording

We offer a variety of pass products for all of our Resorts, marketed toward both Destination and Local guests. Our pass product offerings range from providing access to one or a combination of our Resorts for a certain number of days to our Epic Pass, which allows pass holders unlimited and unrestricted access to all of our Resorts. The Epic Day Pass is a customizable one to seven day pass product purchased in advance of the season, for those skiers and riders who expect to ski a certain number of days during the season, and which is available in three tiers of resort access offerings. Our pass products provide a compelling value proposition to our guests, which in turn assists us in developing a loyal base of customers who commit to ski at our Resorts generally in advance of the ski season and typically ski more days each season at our Resorts than those guests who do not buy pass products. Additionally, we enter into strategic long-term pass alliance agreements with third-party mountain resorts, which further increase the value proposition of our pass products. For the 2025/2026 ski season, our pass alliances include Telluride Ski Resort in Colorado, Hakuba Valley and Rusutsu Resort in Japan, Resorts of the Canadian Rockies in Canada, Les 3 Vallées in France, Disentis Ski Area and Verbier 4 Vallées in Switzerland, Skirama Dolomiti in Italy and Ski Arlberg in Austria. Our pass program drives strong customer loyalty; mitigates exposure to more weather sensitive guests; generates additional ancillary spending; and provides cash flow in advance of winter season operations. In addition, our pass program attracts new guests to our Resorts. All of our pass products, including the Epic Pass and Epic Day Pass, are predominately sold prior to the start of the ski season. Pass product revenue, although primarily collected prior to the ski season, is recognized in the Consolidated Condensed Statements of Operations throughout the ski season on a straight-line basis using the number of skiable days of the season-to-date period relative to the total estimated number of skiable days of the season.

Current wording

We offer a variety of pass products for all of our Resorts, marketed toward both Destination and Local guests. Our pass product offerings range from providing access to one or a combination of our Resorts for a certain number of days to our Epic Pass, which allows pass holders unlimited and unrestricted access to all of our Resorts. The Epic Day Pass is a customizable one to seven day pass product purchased in advance of the season, for those skiers and riders who expect to ski a certain number of days during the season, and which is available in three tiers of resort access offerings. Our pass products provide a compelling value proposition to our guests, which in turn assists us in developing a loyal base of customers who commit to ski at our Resorts generally in advance of the ski season and typically ski more days each season at our Resorts than those guests who do not buy pass products. Additionally, we enter into strategic long-term pass alliance agreements with third-party mountain resorts, which further increase the value proposition of our pass products. For the 2025/2026 ski season, our pass alliances include Telluride Ski Resort in Colorado, Hakuba Valley and Rusutsu Resort in Japan, Resorts of the Canadian Rockies in Canada, Les 3 Vallées in France, Disentis Ski Area and Verbier 4 Vallées in Switzerland, Skirama Dolomiti in Italy and Ski Arlberg, Saalbach and Zell am See-Kaprun, Mayrhofen and Hintertux, Sölden and Silvretta Montafon in Austria. Our pass program drives strong customer loyalty; mitigates exposure to more weather sensitive guests; generates additional ancillary spending; and provides cash flow in advance of winter season operations. In addition, our pass program attracts new guests to our Resorts. All of our pass products, including the Epic Pass and Epic Day Pass, are predominately sold prior to the start of the ski season. Pass product revenue, although primarily collected prior to the ski season, is recognized in the Consolidated Condensed Statements of Operations throughout the ski season on a straight-line basis using the number of skiable days of the season-to-date period relative to the total estimated number of skiable days of the season.

Previous wording

Lift revenue consists of pass product lift revenue (“pass revenue”) and non-pass product lift revenue (“non-pass revenue”). For the three months ended January 31, 2025 and 2024, approximately 72% and 74%, respectively, of our total lift revenue recognized was derived from pass revenue. Pass revenue recognized year to date, which is primarily recognized in our second fiscal quarter, represents approximately 49% and 50%, of our total North American pass product revenue for the 2024/2025 and 2023/2024 North American ski seasons, respectively, with the remaining North American pass revenue almost entirely recognized as lift revenue in our third fiscal quarter ending April 30.

Current wording

Lift revenue consists of pass product lift revenue (“pass revenue”) and non-pass product lift revenue (“non-pass revenue”). For both the nine months ended April 30, 2025 and 2024, approximately 66% of our total lift revenue recognized was derived from pass revenue.

Previous wording

The performance of our lodging properties (including managed condominium rooms) proximate to our Resorts, and our Colorado resort ground transportation company, are closely aligned with the performance of the Mountain segment and generally experience similar seasonal trends, particularly with respect to visitation by Destination guests. Revenues from such properties represented approximately 94% of Lodging segment net revenue (excluding Lodging segment revenue associated with the reimbursement of payroll costs) for both the three months ended January 31, 2025 and 2024. Management primarily focuses on Lodging net revenue excluding payroll cost reimbursements and Lodging operating expense excluding reimbursed payroll costs (which are not measures of financial performance under GAAP) as the reimbursements are made based upon the costs incurred with no added margin and as such, the revenue and corresponding expense do not affect our Lodging Reported EBITDA, which we use to evaluate Lodging segment performance. Revenue of the Lodging segment during our first and fourth fiscal quarters is generated primarily by the operations of our NPS concessioner properties (as their peak operating season generally occurs during the months of June to October), as well as golf operations and seasonally low operations from our other owned and managed properties and businesses.

Current wording

The performance of our lodging properties (including managed condominium rooms) proximate to our Resorts, and our Colorado resort ground transportation company, are closely aligned with the performance of the Mountain segment and generally experience similar seasonal trends, particularly with respect to visitation by Destination guests. Revenues from such properties represented approximately 96% of Lodging segment net revenue (excluding Lodging segment revenue associated with the reimbursement of payroll costs) for both the three months ended April 30, 2025 and 2024, and 77% and 79% of our Lodging segment revenue (excluding Lodging segment revenue associated with reimbursement of payroll costs) for the nine months ended April 30, 2025 and 2024, respectively. Management primarily focuses on Lodging net revenue excluding payroll cost reimbursements and Lodging operating expense excluding reimbursed payroll costs (which are not measures of financial performance under GAAP) as the reimbursements are made based upon the costs incurred with no added margin and as such, the revenue and corresponding expense do not affect our Lodging Reported EBITDA, which we use to evaluate Lodging segment performance. Revenue of the Lodging segment during our first and fourth fiscal quarters is generated primarily by the operations of our NPS concessioner properties (as their peak operating season generally occurs during the months of June to October), as well as golf operations and seasonally low operations from our other owned and managed properties and businesses.

Previous wording

•The timing and amount of snowfall can have an impact on Mountain and Lodging revenue, particularly with regard to skier visits and the duration and frequency of guest visitation. To help mitigate this impact, we sell a variety of pass products prior to the beginning of the ski season, which results in a more stabilized stream of lift revenue. Additionally, our pass products provide a compelling value proposition to our guests, which in turn create a guest commitment predominately prior to the start of the ski season. Pass revenue increased approximately $14.2 million, or 3.2%, for the three months ended January 31, 2025 compared to the same period in the prior year, primarily due to increased pass product sales for the 2024/2025 North American ski season compared to the 2023/2024 North American ski season. Deferred revenue related to North American pass product sales was approximately $474.7 million as of January 31, 2025 (compared to approximately $457.0 million as of January 31, 2024).

Current wording

•The timing and amount of snowfall can have an impact on Mountain and Lodging revenue, particularly with regard to skier visits and the duration and frequency of guest visitation. To help mitigate this impact, we sell a variety of pass products prior to the beginning of the ski season, which results in a more stabilized stream of lift revenue. Additionally, our pass products provide a compelling value proposition to our guests, which in turn create a guest commitment predominately prior to the start of the ski season. In March 2025, we began our season pass sales program for the 2025/2026 North American ski season. Pass product sales through May 27, 2025 for the upcoming 2025/2026 North American ski season decreased approximately 1% in units and increased approximately 2% in sales dollars as compared to the period in the prior year through May 28, 2024. Pass product sales are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.73 between the Canadian dollar and the U.S. dollar in both periods for Whistler Blackcomb pass sales. We cannot predict if these trends will continue through the 2025 North American pass sales campaign or the overall impact that pass sales will have on lift revenue for the 2025/2026 North American ski season.

Previous wording

•The economies in the countries in which we operate and from which we attract our guests may be impacted by economic challenges associated with elevated inflation, prolonged elevated interest rates, geopolitical conflicts, political uncertainty and financial institution disruptions and/or fluctuating commodity prices that could adversely impact our business, including decreased guest spending or visitation or increased costs of operations. Skiing, travel and tourism are discretionary recreational activities that can entail a relatively high cost of participation. As a result, economic downturns and other negative impacts to consumer discretionary spending may have a pronounced impact on visitation to our Resorts. We cannot predict the extent to which we may be impacted by such potential economic challenges, whether in North America or globally.

Current wording

•The economies in the countries in which we operate and from which we attract our guests may be impacted by economic challenges associated with elevated inflation, tariffs and trade policies, prolonged elevated interest rates, geopolitical conflicts, political uncertainty, immigration policies, financial institution disruptions, and/or fluctuating commodity prices that could adversely impact our business, including decreased guest spending or visitation or increased costs of operations. Skiing, travel and tourism are discretionary recreational activities that can entail a relatively high cost of participation. As a result, economic downturns and other negative impacts to consumer discretionary spending may have a pronounced impact on visitation to our Resorts. We cannot predict the extent to which we may be impacted by such potential economic challenges, whether in North America or globally.

Previous wording

•As of January 31, 2025, we had $488.2 million of cash and cash equivalents, as well as $508.5 million available under the revolver component of our Ninth Amended and Restated Credit Agreement, dated as of April 24, 2024 and most recently amended on January 27, 2025 (the “Vail Holdings Credit Agreement”), which represents the total commitment of $600.0 million less certain letters of credit outstanding of $91.5 million. We also have $450.0 million available under a delayed draw term loan of the Vail Holdings Credit Agreement, which will remain available to draw on at any time until January 27, 2026. Additionally, we have a credit facility which supports the liquidity needs of Whistler Blackcomb (the “Whistler Credit Agreement”). As of January 31, 2025, we had C$296.6 million ($204.1 million) available under the revolver component of the Whistler Credit Agreement, which represents the total commitment of C$300.0 million ($206.4 million) less letters of credit outstanding of C$3.4 million ($2.3 million). We believe that our existing cash and cash equivalents, availability under our credit agreements and the expected positive cash flow from operating activities of our Mountain and Lodging segments less resort capital expenditures will continue to provide us with sufficient liquidity to fund our operations.

Current wording

•As of April 30, 2025, we had $467.0 million of cash and cash equivalents, as well as $508.4 million available under the revolver component of our Ninth Amended and Restated Credit Agreement, dated as of April 24, 2024 and most recently amended on January 27, 2025 (the “Vail Holdings Credit Agreement”), which represents the total commitment of $600.0 million less certain letters of credit outstanding of $91.6 million. We also have $450.0 million available under a delayed draw term loan of the Vail Holdings Credit Agreement, which will remain available to draw on at any time until January 27, 2026. Additionally, we have a credit facility which supports the liquidity needs of Whistler Blackcomb (the “Whistler Credit Agreement”). As of April 30, 2025, we had C$296.6 million ($215.2 million) available under the revolver component of the Whistler Credit Agreement, which represents the total commitment of C$300.0 million ($217.6 million) less letters of credit outstanding of C$3.4 million ($2.4 million). We believe that our existing cash and cash equivalents, availability under our credit agreements and the expected positive cash flow from operating activities of our Mountain and Lodging segments less resort capital expenditures will continue to provide us with sufficient liquidity to fund our operations.

Previous wording

Shown below is a summary of operating results for the three and six months ended January 31, 2025, compared to the three and six months ended January 31, 2024 (in thousands):

Current wording

Shown below is a summary of operating results for the three and nine months ended April 30, 2025, compared to the three and nine months ended April 30, 2024 (in thousands):

Previous wording

Mountain Reported EBITDA increased $37.3 million, or 8.9%, primarily driven by an increase in skier visitation as a result of improved early season weather conditions during the 2024/2025 North American ski season compared to the prior year, particularly at our Eastern U.S. Resorts (comprising the Midwest, Mid-Atlantic and Northeast) and western North American Resorts, many of which experienced delayed openings and reduced terrain offerings in the prior year. These improved conditions enabled a strong terrain offering which drove increases in non-pass visitation and most other ancillary lines of business. Additionally, Mountain Reported EBITDA increased due to an increase in pass product sales for the 2024/2025 North American ski season compared to the prior year. Mountain segment results also include the impact of one-time operating expenses attributable to our resource efficiency transformation plan of $2.6 million for the three months ended January 31, 2025, as well as acquisition and integration related expenses of $0.1 million and $2.1 million for the three months ended January 31, 2025 and 2024, respectively.

Current wording

Mountain Reported EBITDA decreased $3.2 million, or 0.5%, primarily driven by a decrease in Local and Destination non-pass skier visitation, which impacted overall revenue in our ancillary lines of business and resulted in a reduction of non-pass lift ticket sales, partially offset by an increase in pass product sales for the 2024/2025 North American ski season compared to the prior year and the incremental impact from the acquisition of Crans-Montana. Mountain segment results also include the impact of one-time operating expenses attributable to our resource efficiency transformation plan of $3.9 million for the three months ended April 30, 2025, as well as acquisition and integration related expenses of $0.1 million and $1.3 million for the three months ended April 30, 2025 and 2024, respectively.

Previous wording

Other revenue mainly consists of other mountain activities revenue, employee housing revenue, guest services revenue, commercial leasing revenue, marketing revenue, private club revenue (which includes both club dues and amortization of initiation fees), municipal services revenue and other recreation activity revenue. Other revenue increased $7.4 million, or 14.4%, primarily due to increased tubing revenue, parking revenue, heli-skiing revenue and sightseeing revenue, each as a result of increased skier visitation which drove additional demand for ancillary services, as well as incremental revenue from Crans-Montana of $1.2 million.

Current wording

Other revenue mainly consists of other mountain activities revenue, employee housing revenue, guest services revenue, commercial leasing revenue, marketing revenue, private club revenue (which includes both club dues and amortization of initiation fees), municipal services revenue and other recreation activity revenue. Other revenue increased $1.0 million, or 1.8%, primarily due to incremental revenue from Crans-Montana.

Previous wording

Operating expense increased $27.2 million, or 4.7%, which was primarily attributable to increased variable expenses associated with increased revenue, and incremental operating expenses from Crans-Montana. Operating expense also includes one-time expenses attributable to our resource transformation plan of $2.6 million for the three months ended January 31, 2025, as well as acquisition and integration related expenses of $0.1 million and $2.1 million for the three months ended January 31, 2025 and 2024, respectively.

Current wording

Operating expense increased $19.2 million, or 3.4%, which was primarily attributable to incremental operating expenses from Crans-Montana and an increase in general and administrative expense, partially offset by decreased variable expenses associated with decreased revenue upon which those expenses are based. Operating expense also includes one-time expenses attributable to our resource transformation plan of $3.9 million for the three months ended April 30, 2025, as well as acquisition and integration related expenses of $0.1 million and $1.3 million for the three months ended April 30, 2025 and 2024, respectively.

Previous wording

Mountain segment operating results for the six months ended January 31, 2025 and 2024 are presented by category as follows (in thousands, except ETP):

Current wording

Mountain segment operating results for the nine months ended April 30, 2025 and 2024 are presented by category as follows (in thousands, except ETP):

Previous wording

Mountain Reported EBITDA increased $32.7 million, or 11.7%. The increase was primarily driven by an increase in skier visitation as a result of improved early season weather conditions during the 2024/2025 North American ski season compared to the prior year, particularly at our Eastern U.S. Resorts and western North American Resorts, many of which experienced delayed openings and reduced terrain offerings in the prior year. These improved conditions enabled a strong terrain offering and guest experience, which drove increases in non-pass visitation and other ancillary lines of business. Additionally, Mountain Reported EBITDA increased due to an increase in pass product sales for the 2024/2025 North American ski season compared to the prior year and an increase in results from summer operations at our North American resorts, which benefited from warm weather conditions late in the season. These increases were partially offset by a decline from our Australian operations compared to the prior year, which experienced weather-related challenges that impacted terrain and resulted in early closures. Mountain segment results also include the impact of one-time operating expenses attributable to our resource efficiency transformation plan of $4.6 million for the six months ended January 31, 2025, as well as acquisition and integration related expenses of $1.0 million and $4.0 million for the six months ended January 31, 2025 and 2024, respectively.

Current wording

Mountain Reported EBITDA increased $29.6 million, or 3.2%, primarily driven by an increase in pass product pricing for the 2024/2025 North American ski season compared to the prior year. Additionally, Mountain Reported EBITDA increased from improved early season conditions, particularly at our Eastern U.S. Resorts (comprising the Midwest, Mid-Atlantic and Northeast) and western North American Resorts, many of which experienced delayed openings and reduced terrain offerings in the prior year. These improved conditions enabled a strong terrain offering and guest experience, which drove an increase in skier visitation throughout the early season and up through the holiday period, including non-pass visitation, which also benefited other ancillary lines of business during the first half of the 2024/2025 North American ski season. Additionally, Mountain Reported EBITDA increased as a result of an increase in results from summer operations at our North American resorts, which benefited from warm weather conditions late in the season. These increases were partially offset by a decline from our Australian operations compared to the prior year, which experienced weather-related challenges that impacted terrain and resulted in early closures, as well as increased variable expenses associated with increased revenue and increased general and administrative expense. Mountain segment results also include the impact of one-time operating expenses attributable to our resource efficiency transformation plan of $8.6 million for the nine months ended April 30, 2025, as well as acquisition and integration related expenses of $1.1 million and $5.3 million for the nine months ended April 30, 2025 and 2024, respectively.

Previous wording

Lift revenue increased $41.5 million, or 6.9%, due to increases in both pass revenue and non-pass revenue. Non-pass revenue increased 17.5% primarily as a result of an increase in visitation at our Eastern U.S. Resorts, as well as an increase in non-pass ETP (excluding Crans-Montana) of 4.4%, and incremental non-pass revenue from Crans-Montana of $6.6 million. Total non-pass ETP, including the impact of Crans-Montana, was flat compared to the same period in the prior year. Additionally, pass product revenue increased 3.2%, which was primarily driven by an increase in pass product sales for the 2024/2025 North American ski season compared to the prior year.

Current wording

Lift revenue increased $61.1 million, or 4.4%, due to increases in both pass revenue and non-pass revenue. Pass product revenue increased 3.9%, which was primarily driven by an increase in pass product pricing for the 2024/2025 North American ski season compared to the prior year. Additionally, non-pass revenue increased 5.4% primarily as a result of an increase in non-pass ETP (excluding Crans-Montana) of 5.5%, and incremental non-pass revenue from Crans-Montana of $15.3 million, partially offset by a reduction in non-pass visitation (excluding Crans-Montana). Total non-pass ETP, including the impact of Crans-Montana, increased 1.1%.

Previous wording

Ski school revenue increased $6.4 million, or 5.0%, driven by increased Local skier visitation and increased lesson pricing, partially offset by decreased Destination skier visitation, as these guests typically utilize more ancillary services. Dining revenue increased $8.8 million, or 10.8%, driven by increased Local skier visitation and pricing, as well as incremental revenue from Crans-Montana of $3.3 million, partially offset by decreased Destination skier visitation. Retail/rental revenue decreased $1.0 million, or 0.7%, for which retail revenues decreased $2.0 million, or 2.6%, driven by lower sales at our on-mountain retail locations and the mix of retail merchandise purchased by customers, including decreased sales of higher-margin accessories and apparel goods, partially offset by increased rental revenues of $1.0 million, or 1.6%.

Current wording

Ski school revenue increased $5.0 million, or 1.7%, driven by increased lesson pricing and $0.5 million incremental revenue from Crans-Montana, partially offset by decreased North American and Australian skier visitation. Dining revenue increased $12.9 million, or 6.2%, driven by incremental revenue from Crans-Montana of $7.8 million and increased pricing, partially offset by decreased North American and Australian skier visitation. Retail/rental revenue decreased $14.5 million, or 5.0%, driven by a decrease in retail revenue of $11.7 million, or 7.2%, due to lower sales at our on-mountain retail locations driven by decreased skier visitation. Additionally, rental revenue decreased $2.8 million, or 2.2%, primarily driven by decreased Destination skier visitation, as these guests typically utilize more ancillary services.

Previous wording

Other revenue mainly consists of revenues stemming from summer visitation, other mountain activities revenue, employee housing revenue, guest services revenue, commercial leasing revenue, marketing and internet advertising revenue, private club revenue (which includes both club dues and amortization of initiation fees), municipal services revenue and other recreation activity revenue. Other revenue also includes Australian resort lodging and transportation revenue. Other revenue increased $15.0 million or 12.5%, primarily driven by increased skier visitation at our North American resorts, which drove additional demand for ancillary services, as well as an increase in other on-mountain summer activities and sightseeing revenue from the impact of increased summer visitation at our North American resorts as a result of improved weather conditions.

Current wording

Other revenue mainly consists of revenue stemming from summer visitation, other mountain activities revenue, employee housing revenue, guest services revenue, commercial leasing revenue, marketing and internet advertising revenue, private club revenue (which includes both club dues and amortization of initiation fees), municipal services revenue and other recreation activity revenue. Other revenue also includes Australian resort lodging and transportation revenue. Other revenue increased $16.0 million or 9.0%, primarily driven by increased early season skier visitation at our North American resorts, which drove additional demand for ancillary services, as well as an increase in other on-mountain summer activities and sightseeing revenue from the impact of increased summer visitation at our North American resorts as a result of improved weather conditions.

Previous wording

Operating expense increased $33.8 million or 3.8%, which was primarily attributable to incremental operating expenses from Crans-Montana, and increased variable expenses associated with increased revenue. Operating expense also includes one-time expenses attributable to our resource efficiency transformation plan of $4.6 million for the six months ended January 31, 2025, as well as acquisition and integration related expenses of $1.0 million and $4.0 million for the six months ended January 31, 2025 and 2024, respectively.

Current wording

Operating expense increased $53.0 million or 3.7%, which was primarily attributable to incremental operating expenses from Crans-Montana, and increased variable expenses associated with increased revenue. Operating expense also includes one-time expenses attributable to our resource efficiency transformation plan of $8.6 million for the nine months ended April 30, 2025, as well as acquisition and integration related expenses of $1.1 million and $5.3 million for the nine months ended April 30, 2025 and 2024, respectively.

Previous wording

Labor and labor-related benefits increased 5.0%, primarily due to normal wage adjustments and an increase in labor expense to support increased North American operations, as well as incremental expenses from Crans-Montana of $7.3 million. Retail cost of sales decreased 5.9%, compared to a decrease in retail sales of 5.5%. Resort related fees increased 6.9% primarily as a result of an increase in revenues on which those fees are based. General and administrative expense increased 0.7%, primarily due to an increase in corporate overhead costs. Other expense increased 6.2%, primarily due to incremental expenses from Crans-Montana of $6.8 million, increased variable expenses associated with increased revenues, including dining cost of sales ($2.0 million), supplies ($1.7 million) and rent ($1.7 million), in addition to increased utilities expense ($2.9 million).

Current wording

Labor and labor-related benefits increased 4.6%, primarily due to the incremental expenses from Crans-Montana of $13.6 million, normal wage adjustments and an increase in labor expense to support increased North American operations, as well as increased variable compensation accruals of $5.1 million. Retail cost of sales decreased 10.0%, compared to a decrease in retail sales of 7.2%, reflecting increased margins driven by the mix of retail merchandise purchased by customers, including lower sales of discounted retail products compared to the prior year. Resort related fees increased 3.0% primarily as a result of an increase in revenues on which those fees are based. General and administrative expense increased 4.5%, primarily due to an increase in corporate overhead costs, including legal, marketing and information technology, as well as increased costs from company-wide performance-based variable compensation expense that was not earned in the prior year ($6.0 million). Other expense increased 5.2%, primarily due to incremental expenses from Crans-Montana of $11.6 million, as well as increased variable expenses associated with increased revenues, including rent ($2.0 million), dining cost of sales ($1.7 million) and pass partnership expense ($1.9 million), in addition to increased property tax expense ($1.5 million).

Previous wording

Mountain equity investment income (loss), net primarily includes our share of income from the operations of a real estate brokerage company.

Current wording

Mountain equity investment income, net primarily includes our share of income from the operations of a real estate brokerage company.

Previous wording

Lodging segment operating results for the six months ended January 31, 2025 and 2024 are presented by category as follows (in thousands, except ADR and RevPAR):

Current wording

Lodging segment operating results for the nine months ended April 30, 2025 and 2024 are presented by category as follows (in thousands, except ADR and RevPAR):

Previous wording

Lodging Reported EBITDA increased $1.9 million, or 43.3%, primarily driven by favorable weather conditions which drove increased summer visitation at GTLC and our mountain resort properties, partially offset by a decrease in destination skier visitation during the 2024/2025 North American ski season, which decreased demand for lodging and other ancillary services proximate to our mountain resorts, as well as a net reduction in our inventory of available managed condominium rooms.

Current wording

Lodging Reported EBITDA decreased $1.6 million, or 7.7%, primarily driven by a net reduction in our inventory of available managed condominium rooms, as well as a decrease in Destination skier visitation during the 2024/2025 North American ski season, which decreased demand for lodging and other ancillary services proximate to our mountain resorts, partially offset by increased 2024 summer visitation at GTLC and our mountain resort properties as a result of favorable weather conditions.

Previous wording

Revenue from owned hotel rooms increased $2.8 million, or 7.1%, primarily due to increased visitation at GTLC driven by favorable weather conditions, which also drove an increase in ADR, as well as stronger demand for summer lodging at our North American mountain resort properties. Revenue from managed condominium rooms decreased $1.5 million, or 3.8%, primarily due to lower ADR driven by lower peak-season holiday pricing compared to the prior year, as well as a net reduction in our inventory of available managed condominium rooms proximate to our mountain resorts. Dining revenue increased $2.0 million, or 6.4%, and golf revenue increased $1.3 million, or 20.6%, each primarily as a result of increased summer visitation at our North American mountain resort properties. Other revenue decreased $1.4 million, or 5.3%, primarily as a result of a decrease in lodging property support services, including revenue from our central reservations booking service.

Current wording

Revenue from owned hotel rooms increased $2.9 million, or 5.4%, primarily due to increased visitation at GTLC driven by favorable weather conditions, which also drove an increase in ADR, as well as stronger demand for summer lodging at our North American mountain resort properties. Revenue from managed condominium rooms decreased $4.3 million, or 5.7%, primarily due to lower ADR driven by lower peak-season holiday pricing compared to the prior year, as well as a net reduction in our inventory of available managed condominium rooms proximate to our mountain resorts. Dining revenue increased $2.4 million, or 5.2%, and golf revenue increased $1.6 million, or 24.3%, each primarily as a result of increased summer visitation at our North American mountain resort properties while transportation revenue decreased $1.3 million or 8.5% primarily as a result of decreased Destination visitation. Other revenue decreased $2.6 million, or 7.1%, primarily as a result of a decrease in property maintenance services and revenue from our central reservations booking service.

Previous wording

Other expense increased 4.4%, primarily due to one-time costs attributable to our resource efficiency transformation plan of $1.0 million, as well as a reduction in property tax refunds received during the six months ended January 31, 2025.

Current wording

Labor and labor-related benefits decreased 1.6%, primarily due to strong cost control and workforce management in response to decreased revenue, as well as lower use of contract labor. Other expense increased 2.4%, primarily due to one-time costs attributable to our resource efficiency transformation plan of $1.2 million, as well as a reduction in property tax refunds received during the nine months ended April 30, 2025.

Previous wording

During the three months ended January 31, 2025 and 2024, we did not close on any significant real estate transactions.

Current wording

During the three months ended April 30, 2025, we recorded a gain on sale of real property for $8.5 million related to the sale of three real estate parcels in Breckenridge, Colorado for total consideration of $11.9 million, including $1.0 million net cash proceeds received at closing. One of these parcels was originally sold during the year ended July 31, 2022 but the terms of the agreement prevented transfer of control to the buyer at the time, and therefore a portion of the proceeds were deferred for recognition until control was transferred which occurred during the three months ended April 30, 2025. During the three months ended April 30, 2024, we did not close on any significant real estate transactions.

Previous wording

During the six months ended January 31, 2025, we recorded a gain on sale of real property for $16.5 million related to the resolution of the October 2023 Eagle County District Court final ruling and valuation regarding the Town of Vail’s condemnation of our East Vail property, for which we received proceeds of $17.6 million during the six months ended January 31, 2025. During the six months ended January 31, 2024, we closed on the sale of a land parcel in Keystone for $4.2 million, which was recorded within Real Estate net revenue, with a corresponding cost of sale of $3.6 million. Additionally, we recorded a gain on sale of real property for $6.3 million related to a land parcel sale in Beaver Creek, CO, which closed for proceeds of $6.5 million during the six months ended January 31, 2024.

Current wording

During the nine months ended April 30, 2025, we recorded a gain on sale of real property for $16.5 million related to the resolution of the October 2023 Eagle County District Court final ruling and valuation regarding the Town of Vail’s condemnation of our East Vail property, for which we received proceeds of $17.6 million. We also recorded a gain on sale of real property for $8.5 million related to the sale of three real estate parcels in Breckenridge, Colorado for total consideration of $11.9 million, including $1.0 million net cash proceeds received at closing, for which one of these parcels was originally sold during the year ended July 31, 2022 but the terms of the agreement prevented transfer of control to the buyer at the time, and therefore a portion of the proceeds were deferred for recognition until control was transferred which occurred during the nine months ended April 30, 2025. During the nine months ended April 30, 2024, we closed on the sale of a land parcel in Keystone for $4.2 million, which was recorded within Real Estate net revenue, with a corresponding cost of sale of $3.6 million. Additionally, we recorded a gain on sale of real property for $6.3 million related to a land parcel sale in Beaver Creek, CO, which closed for proceeds of $6.5 million during the nine months ended April 30, 2024.

Previous wording

Other operating expense for both the six months ended January 31, 2025 and 2024 was primarily comprised of general and administrative costs, such as labor and labor-related benefits, professional services and allocated corporate overhead costs.

Current wording

Other operating expense for both the nine months ended April 30, 2025 and 2024 was primarily comprised of general and administrative costs, such as labor and labor-related benefits, professional services and allocated corporate overhead costs.

Previous wording

In addition to segment operating results, the following material items contributed to our overall financial results for the three and six months ended January 31, 2025 and 2024 (in thousands):

Current wording

In addition to segment operating results, the following material items contributed to our overall financial results for the three and nine months ended April 30, 2025 and 2024 (in thousands):

Previous wording

Depreciation and amortization. Depreciation and amortization expense for the six months ended January 31, 2025 increased $8.6 million compared to the same period in the prior year, primarily due to assets acquired in the acquisition of Crans-Montana, as well as capital projects completed at our Resorts during the prior capital year.

Current wording

Depreciation and amortization. Depreciation and amortization expense for the three and nine months ended April 30, 2025 increased $6.1 million and $14.7 million, respectively, compared to the same periods in the prior year, primarily due to assets acquired in the acquisition of Crans-Montana, as well as additional capital projects completed at our Resorts during the prior capital year.

Previous wording

Provision for income taxes. At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs. The effective tax rate for the three and six months ended January 31, 2025 was 25.1% and 26.8%, respectively, compared to 27.6% and 32.3% for the three and six months ended January 31, 2024, respectively.

Current wording

Provision for income taxes. At the end of each interim period, the Company estimates the annual effective tax rate and applies that rate to its ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs. The effective tax rate for the three and nine months ended April 30, 2025 was 24.0% and 24.5%, respectively, compared to 25.3% and 26.2% for the three and nine months ended April 30, 2024, respectively.

Previous wording

The decrease in the effective tax rate for the three and six months ended January 31, 2025 compared to the three and six months ended January 31, 2024 was primarily due to a decrease in net unfavorable discrete items impacting the tax provision in the current period, including a nonrecurring foreign partnership basis adjustment of $4.7 million during the three and six months ended January 31, 2024.

Current wording

The decrease in the effective tax rate for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to a decrease in the impact of favorable discrete items, as well as a decrease in pretax losses at our foreign entities. The decrease in the effective tax rate for the nine months ended months ended April 30, 2025 compared to the nine months ended months ended April 30, 2024 was primarily due to a decrease in net unfavorable discrete items impacting the tax provision in the current period, including a nonrecurring foreign partnership basis adjustment of $4.7 million during the nine months ended months ended April 30, 2024.

Previous wording

The following table reconciles net income attributable to Vail Resorts, Inc. to Total Reported EBITDA for the three and six months ended January 31, 2025 and 2024 (in thousands):

Current wording

The following table reconciles net income attributable to Vail Resorts, Inc. to Total Reported EBITDA for the three and nine months ended April 30, 2025 and 2024 (in thousands):

Previous wording

Changes in significant sources of cash for the six months ended January 31, 2025 and 2024 are presented by categories as follows (in thousands).

Current wording

Changes in significant sources of cash for the nine months ended April 30, 2025 and 2024 are presented by categories as follows (in thousands).

Previous wording

We generated $608.7 million of cash from operating activities during the six months ended January 31, 2025, an increase of $37.5 million compared to $571.2 million generated during the six months ended January 31, 2024. The increase in operating cash flows was primarily a result of increased pass product sales and collections and other operating cash flows related to Resort operations during the six months ended January 31, 2025 as compared to the prior year, partially offset by an increase in income tax payments of approximately $5.7 million for the six months ended January 31, 2025 as compared to the prior year, driven by overpayments and other deductions which offset our estimated payments made during the six months ended January 31, 2024 and higher estimated taxable income for the current fiscal year.

Current wording

We generated $726.4 million of cash from operating activities during the nine months ended April 30, 2025, an increase of $45.4 million compared to $681.0 million generated during the nine months ended April 30, 2024. The increase in operating cash flows was primarily a result of increased pass product sales and collections and other operating cash flows related to Resort operations during the nine months ended April 30, 2025 as compared to the prior year, partially offset by an increase in income tax payments of approximately $15.1 million for the nine months ended April 30, 2025 as compared to the prior year, driven by overpayments and other deductions which offset our estimated payments made during the nine months ended April 30, 2024 and higher estimated taxable income for the current fiscal year.

Previous wording

The increase in cash used in investing activities for the six months ended January 31, 2025 of $61.9 million was primarily due to (i) the maturity of short-term bank deposits in the prior year which had maturity dates of more than three months at the date of purchase and were therefore not reflected as cash equivalents as of July 31, 2023, of which $57.6 million matured during the three months ended January 31, 2024 and (ii) an increase in capital expenditures of approximately $15.7 million as compared to the prior year, which is largely driven by an acceleration of the timing of work being completed and associated payments taking place in the current year. These increases were partially offset by $17.6 million of cash received during the six months ended January 31, 2025 related to the resolution of the October 2023 Eagle County District Court final ruling and valuation regarding the Town of Vail’s condemnation of our East Vail property.

Current wording

The increase in cash used in investing activities for the nine months ended April 30, 2025 of $64.6 million was primarily due to (i) the maturity of short-term bank deposits in the prior year which had maturity dates of more than three months at the date of purchase and were therefore not reflected as cash equivalents as of July 31, 2023, of which $57.6 million matured during the three months ended April 30, 2024 and (ii) an increase in capital expenditures of approximately $24.1 million as compared to the prior year, which is largely driven by an acceleration of the timing of work being completed and associated payments taking place in the current year. These increases were partially offset by $17.6 million of cash received during the nine months ended April 30, 2025 related to the resolution of the October 2023 Eagle County District Court final ruling and valuation regarding the Town of Vail’s condemnation of our East Vail property.

Previous wording

Cash used in financing activities increased by $51.6 million during the six months ended January 31, 2025 compared to the six months ended January 31, 2024, primarily due to $48.0 million of cash paid for repurchases of 0.0% Convertible Notes during the six months ended January 31, 2025.

Current wording

Cash used in financing activities increased by $4.1 million during the nine months ended April 30, 2025 compared to the nine months ended April 30, 2024, primarily due to $48.0 million of cash paid for repurchases of 0.0% Convertible Notes during the nine months ended April 30, 2025 and an increase in dividends paid of $8.0 million, partially offset by a $55.0 million decrease in repurchases of common stock.

Previous wording

We had $488.2 million of cash and cash equivalents as of January 31, 2025, compared to $812.2 million as of January 31, 2024, and the decrease was primarily attributable to the cash purchase price associated with the acquisition of Crans-Montana, net of cash acquired, and share repurchases completed during the last twelve months. We currently anticipate that our Mountain and Lodging segment operating results will continue to provide a significant source of future operating cash flows (primarily generated in our second and third fiscal quarters).

Current wording

We had $467.0 million of cash and cash equivalents as of April 30, 2025, compared to $705.4 million as of April 30, 2024. The decrease was primarily attributable to the cash purchase price associated with the acquisition of Crans-Montana, net of cash acquired, repurchases of common stock and repurchases of 0.0% Convertible Notes completed during the last twelve months. We currently anticipate that our Mountain and Lodging segment operating results will continue to provide a significant source of future operating cash flows (primarily generated in our second and third fiscal quarters).

Previous wording

In addition to our $488.2 million of cash and cash equivalents at January 31, 2025, we had $508.5 million available under the revolver component of our Vail Holdings Credit Agreement as of January 31, 2025 (which represents the total commitment of $600.0 million less outstanding letters of credit of $91.5 million). Additionally, we had C$296.6 million ($204.1 million) available under the revolver component of our Whistler Credit Agreement (which represents the total commitment of C$300.0 million ($206.4 million) less certain outstanding letters of credit of C$3.4 million ($2.3 million). We also have $450.0 million available under a delayed draw term loan of the Vail Holdings Credit Agreement which will remain available to draw on at any time until January 27, 2026. Proceeds from any borrowings on the revolver component of our Vail Holdings Credit Agreement and the delayed draw term loans are available to be used to refinance our 0.0% Convertible Notes. We expect that our liquidity needs in the near term will be met by continued use of our existing cash and cash equivalents, operating cash flows and borrowings under both the Vail Holdings Credit Agreement and Whistler Credit Agreement, if needed. The Vail Holdings Credit Agreement and the Whistler Credit Agreement provide adequate flexibility with any new borrowings currently priced at the Secured Overnight Financing Rate plus 1.60% and Bankers Acceptance Rate plus 1.75%, respectively.

Current wording

In addition to our $467.0 million of cash and cash equivalents at April 30, 2025, we had $508.4 million available under the revolver component of our Vail Holdings Credit Agreement as of April 30, 2025 (which represents the total commitment of $600.0 million less outstanding letters of credit of $91.6 million). Additionally, we had C$296.6 million ($215.2 million) available under the revolver component of our Whistler Credit Agreement (which represents the total commitment of C$300.0 million ($217.6 million) less certain outstanding letters of credit of C$3.4 million ($2.4 million). We also had $450.0 million available under a delayed draw term loan of the Vail Holdings Credit Agreement which will remain available to draw on at any time until January 27, 2026. Proceeds from any borrowings on the revolver component of our Vail Holdings Credit Agreement and the delayed draw term loans are available to be used to refinance our 0.0% Convertible Notes. We expect that our liquidity needs in the near term will be met by continued use of our existing cash and cash equivalents, operating cash flows and borrowings under both the Vail Holdings Credit Agreement and Whistler Credit Agreement, if needed. The Vail Holdings Credit Agreement and the Whistler Credit Agreement provide adequate flexibility with any new borrowings currently priced at the Secured Overnight Financing Rate plus 1.60% and Bankers Acceptance Rate plus 1.75%, respectively.

Previous wording

We expect our capital plan for calendar year 2025 will be approximately $198 million to $203 million, excluding $45 million of growth capital investments at our European resorts, including $41 million at Andermatt-Sedrun and $4 million at Crans-Montana, and $6 million of real estate related capital projects to complete multi-year transformational investments at the key base area portals of Breckenridge Peak 8 and Keystone River Run, and planning investments to support the development of the West Lionshead area into a fourth base village at Vail Mountain. Including European growth capital investments and real estate related capital, our total capital plan for calendar year 2025 is expected to be approximately $249 million to $254 million. Included in these estimated capital expenditures are approximately $124 million to $128 million of maintenance capital expenditures, which are necessary to maintain appearance and level of service appropriate to our resorts. We currently plan to utilize cash on hand, borrowings available under our credit agreements and/or cash flow generated from future operations to provide the cash necessary to complete our capital plans.

Current wording

We expect our capital plan for calendar year 2025 will be approximately $198 million to $203 million, excluding $46 million of growth capital investments at our European resorts, comprised of $42 million at Andermatt-Sedrun and $4 million at Crans-Montana, and $6 million of real estate related capital projects to complete multi-year transformational investments at the key base area portals of Breckenridge Peak 8 and Keystone River Run, and planning investments to support the development of the West Lionshead area into a fourth base village at Vail Mountain. Including European growth capital investments and real estate related capital, our total capital plan for calendar year 2025 is expected to be approximately $249 million to $254 million. Included in these estimated capital expenditures are approximately $124 million to $128 million of maintenance capital expenditures, which are necessary to maintain appearance and level of service appropriate to our resorts. We currently plan to utilize cash on hand, borrowings available under our credit agreements and/or cash flow generated from future operations to provide the cash necessary to complete our capital plans.