Delaware
|
51-0291762
|
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification No.)
|
|
390
Interlocken Crescent
Broomfield,
Colorado
|
80021
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
(303)
404-1800
|
(Registrant’s
Telephone Number, Including Area
Code)
|
Table
of Contents
|
||
PART
I
|
FINANCIAL
INFORMATION
|
|
Item
1.
|
F-1
|
|
Item
2.
|
1
|
|
Item
3.
|
11
|
|
Item
4.
|
11
|
|
PART
II
|
OTHER
INFORMATION
|
|
Item
1.
|
12
|
|
Item
1A.
|
12
|
|
Item
2.
|
12
|
|
Item
3.
|
13
|
|
Item
4.
|
13
|
|
Item
5.
|
13
|
|
Item
6.
|
13
|
PART
I
|
FINANCIAL
INFORMATION
|
|
Item
1.
|
||
F-2
|
||
F-3
|
||
F-4
|
||
F-5
|
October
31,
|
July
31,
|
October
31,
|
||||||||||
2009
|
2009
|
2008
|
||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
Assets
|
||||||||||||
Current
assets:
|
||||||||||||
Cash
and cash equivalents
|
$
|
13,019
|
$
|
69,298
|
$
|
102,668
|
||||||
Restricted
cash
|
13,436
|
11,065
|
12,453
|
|||||||||
Trade
receivables, net
|
32,821
|
58,063
|
44,468
|
|||||||||
Inventories,
net
|
62,779
|
48,947
|
67,718
|
|||||||||
Other
current assets
|
48,822
|
41,615
|
41,988
|
|||||||||
Total
current assets
|
170,877
|
228,988
|
269,295
|
|||||||||
Property,
plant and equipment, net (Note 5)
|
1,051,933
|
1,057,658
|
1,077,760
|
|||||||||
Real
estate held for sale and investment
|
366,748
|
311,485
|
256,323
|
|||||||||
Goodwill,
net
|
167,950
|
167,950
|
142,282
|
|||||||||
Intangible
assets, net
|
79,353
|
79,429
|
72,463
|
|||||||||
Other
assets
|
33,269
|
38,970
|
47,062
|
|||||||||
Total
assets
|
$
|
1,870,130
|
$
|
1,884,480
|
$
|
1,865,185
|
||||||
Liabilities
and Stockholders’ Equity
|
||||||||||||
Current
liabilities:
|
||||||||||||
Accounts
payable and accrued liabilities (Note 5)
|
$
|
330,272
|
$
|
245,536
|
$
|
327,516
|
||||||
Income
taxes payable
|
5,725
|
5,460
|
49,784
|
|||||||||
Long-term
debt due within one year (Note 4)
|
1,862
|
352
|
354
|
|||||||||
Total
current liabilities
|
337,859
|
251,348
|
377,654
|
|||||||||
Long-term
debt (Note 4)
|
489,919
|
491,608
|
491,778
|
|||||||||
Other
long-term liabilities (Note 5)
|
199,288
|
233,169
|
223,381
|
|||||||||
Deferred
income taxes
|
87,993
|
112,234
|
57,063
|
|||||||||
Commitments
and contingencies (Note 9)
|
||||||||||||
Redeemable
noncontrolling interest (Note 8)
|
16,847
|
15,415
|
31,947
|
|||||||||
Stockholders’
equity:
|
||||||||||||
Preferred
stock, $0.01 par value, 25,000,000 shares authorized, no shares issued and
outstanding
|
--
|
--
|
--
|
|||||||||
Common
stock, $0.01 par value, 100,000,000 shares authorized, 40,121,309
(unaudited), 40,049,988 and 40,000,502 (unaudited) shares issued,
respectively
|
401
|
400
|
400
|
|||||||||
Additional
paid-in capital
|
558,202
|
555,728
|
547,043
|
|||||||||
Retained
earnings
|
315,822
|
356,995
|
260,014
|
|||||||||
Treasury
stock, at cost; 3,878,535 (unaudited), 3,878,535 and 3,282,508 (unaudited)
shares, respectively (Note 11)
|
(147,828
|
)
|
(147,828
|
)
|
(132,873
|
)
|
||||||
Total
Vail Resorts, Inc. stockholders’ equity
|
726,597
|
765,295
|
674,584
|
|||||||||
Noncontrolling interests
|
11,627
|
15,411
|
8,778
|
|||||||||
Total stockholders’ equity
|
738,224
|
780,706
|
683,362
|
|||||||||
Total
liabilities and stockholders’ equity
|
$
|
1,870,130
|
$
|
1,884,480
|
$
|
1,865,185
|
Three
months ended
|
||||||
October
31,
|
||||||
2009
|
2008
|
|||||
Net
revenue:
|
||||||
Mountain
|
$
|
39,204
|
$
|
40,778
|
||
Lodging
|
41,355
|
45,253
|
||||
Real
estate
|
205
|
66,750
|
||||
Total
net revenue
|
80,764
|
152,781
|
||||
Segment
operating expense (exclusive of depreciation and amortization shown
separately below):
|
||||||
Mountain
|
76,468
|
81,223
|
||||
Lodging
|
42,623
|
44,898
|
||||
Real
estate
|
5,177
|
51,377
|
||||
Total
segment operating expense
|
124,268
|
177,498
|
||||
Other
operating (expense) income:
|
||||||
Depreciation
and amortization
|
(27,184
|
)
|
(25,078
|
)
|
||
Gain
on sale of real property
|
6,087
|
--
|
||||
Loss
on disposal of fixed assets, net
|
(113
|
)
|
(180
|
)
|
||
Loss
from operations
|
(64,714
|
)
|
(49,975
|
)
|
||
Mountain
equity investment income, net
|
254
|
1,015
|
||||
Investment
income
|
230
|
643
|
||||
Interest
expense, net
|
(4,835
|
)
|
(7,947
|
)
|
||
Loss
before benefit from income taxes
|
(69,065
|
)
|
(56,264
|
)
|
||
Benefit
from income taxes
|
25,554
|
19,409
|
||||
Net
loss
|
(43,511
|
)
|
(36,855
|
)
|
||
Net
loss attributable to noncontrolling interests
|
2,338
|
2,351
|
||||
Net
loss attributable to Vail Resorts, Inc.
|
$
|
(41,173
|
)
|
$
|
(34,504
|
)
|
Per
share amounts (Note 3):
|
||||||
Basic
net loss per share
|
$
|
(1.14
|
)
|
$
|
(0.93
|
)
|
Diluted
net loss per share
|
$
|
(1.14
|
)
|
$
|
(0.93
|
)
|
Three
Months Ended
|
||||||||
October
31,
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
loss
|
$
|
(43,511
|
)
|
$
|
(36,855
|
)
|
||
Adjustments
to reconcile net loss to net cash (used in) provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
27,184
|
25,078
|
||||||
Cost
of real estate sales
|
--
|
40,127
|
||||||
Gain
on sale of real property
|
(6,087
|
)
|
--
|
|||||
Stock-based
compensation expense
|
3,464
|
2,567
|
||||||
Deferred
income taxes, net
|
(25,554
|
)
|
(19,188
|
)
|
||||
Other
non-cash income, net
|
(2,085
|
)
|
(1,807
|
)
|
||||
Changes
in assets and liabilities:
|
||||||||
Restricted
cash
|
(2,371
|
)
|
45,984
|
|||||
Accounts
receivable, net
|
25,242
|
6,616
|
||||||
Inventories,
net
|
(13,832
|
)
|
(18,010
|
)
|
||||
Investments
in real estate
|
(59,880
|
)
|
(50,774
|
)
|
||||
Accounts
payable and accrued liabilities
|
52,409
|
40,063
|
||||||
Deferred
real estate deposits
|
139
|
(11,149
|
)
|
|||||
Private
club deferred initiation fees and deposits
|
373
|
34,637
|
||||||
Other
assets and liabilities, net
|
(442
|
)
|
(6,370
|
)
|
||||
Net
cash (used in) provided by operating activities
|
(44,951
|
)
|
50,919
|
|||||
Cash
flows from investing activities:
|
||||||||
Capital
expenditures
|
(20,753
|
)
|
(43,384
|
)
|
||||
Cash
received from sale of real property
|
8,920
|
--
|
||||||
Other
investing activities, net
|
(217
|
)
|
(2,582
|
)
|
||||
Net
cash used in investing activities
|
(12,050
|
)
|
(45,966
|
)
|
||||
Cash
flows from financing activities:
|
||||||||
Repurchases
of common stock
|
--
|
(7,412
|
)
|
|||||
Proceeds
from borrowings under non-recourse real estate financings
|
--
|
9,013
|
||||||
Payments
of non-recourse real estate financings
|
--
|
(58,407
|
)
|
|||||
Proceeds
from borrowings under other long-term debt
|
29,457
|
20,640
|
||||||
Payments
of other long-term debt
|
(29,636
|
)
|
(35,808
|
)
|
||||
Other
financing activities, net
|
901
|
7,344
|
||||||
Net
cash provided by (used in) financing activities
|
722
|
(64,630
|
)
|
|||||
Net
decrease in cash and cash equivalents
|
(56,279
|
)
|
(59,677
|
)
|
||||
Cash
and cash equivalents:
|
||||||||
Beginning
of period
|
69,298
|
162,345
|
||||||
End
of period
|
$
|
13,019
|
$
|
102,668
|
||||
Three
Months Ended October 31,
|
|||||||||||||||||||
2009
|
2008
|
||||||||||||||||||
Vail
Resorts Stockholders
|
Noncontrolling
Interests
|
Total
Equity
|
Vail
Resorts Stockholders
|
Noncontrolling
Interests
|
Total
Equity
|
||||||||||||||
Balance,
beginning of period
|
$
|
765,295
|
$
|
15,411
|
$
|
780,706
|
$
|
716,633
|
$
|
8,848
|
$
|
725,481
|
|||||||
Net loss
|
(41,173
|
)
|
(2,338
|
)
|
(43,511
|
)
|
(34,504
|
)
|
(2,351
|
)
|
(36,855
|
)
|
|||||||
Stock-based compensation expense
|
3,464
|
--
|
3,464
|
2,567
|
--
|
2,567
|
|||||||||||||
Issuance
of shares under share award plans
|
(724
|
)
|
--
|
(724
|
)
|
(1,079
|
)
|
--
|
(1,079
|
)
|
|||||||||
Tax
benefit from share award plans
|
(265
|
)
|
--
|
(265
|
)
|
(214
|
)
|
--
|
(214
|
)
|
|||||||||
Repurchases
of common stock
|
--
|
--
|
(7,413
|
)
|
--
|
(7,413
|
)
|
||||||||||||
Adjustment
to redemption value of redeemable noncontrolling interest
|
--
|
(1,431
|
)
|
(1,431
|
)
|
(1,406
|
)
|
2,646
|
1,240
|
||||||||||
Distributions
to noncontrolling interests, net
|
--
|
(15
|
)
|
(15
|
)
|
--
|
(365
|
)
|
(365
|
)
|
|||||||||
Balance,
end of period
|
$
|
726,597
|
$
|
11,627
|
$
|
738,224
|
$
|
674,584
|
$
|
8,778
|
$
|
683,362
|
October
31, 2009
|
|||||||
Carrying
|
Fair
|
||||||
Value
|
Value
|
||||||
6.75%
Notes
|
$
|
390,000
|
$
|
385,125
|
|||
Industrial
Development Bonds
|
|
42,700
|
|
45,464
|
|||
Other
long-term debt
|
$
|
6,506
|
$
|
6,296
|
Three
Months Ended October 31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Basic
|
Diluted
|
Basic
|
Diluted
|
|||||||||||||
Net
loss per share:
|
||||||||||||||||
Net
loss attributable to Vail Resorts
|
$
|
(41,173
|
)
|
$
|
(41,173
|
)
|
$
|
(34,504
|
)
|
$
|
(34,504
|
)
|
||||
Weighted-average
shares outstanding
|
36,201
|
36,201
|
36,922
|
36,922
|
||||||||||||
Effect
of dilutive securities
|
--
|
--
|
--
|
--
|
||||||||||||
Total
shares
|
36,201
|
36,201
|
36,922
|
36,922
|
||||||||||||
Net
loss per share
|
$
|
(1.14
|
)
|
$
|
(1.14
|
)
|
$
|
(0.93
|
)
|
$
|
(0.93
|
)
|
October
31,
|
July
31,
|
October
31,
|
|||||
Maturity
(a)
|
2009
|
2009
|
2008
|
||||
Credit
Facility Revolver
|
2012
|
$
|
--
|
$
|
--
|
$
|
--
|
SSV
Facility
|
2011
|
--
|
--
|
--
|
|||
Industrial
Development Bonds
|
2011-2020
|
42,700
|
42,700
|
42,700
|
|||
Employee
Housing Bonds
|
2027-2039
|
52,575
|
52,575
|
52,575
|
|||
6.75%
Senior Subordinated Notes ("6.75% Notes")
|
2014
|
390,000
|
390,000
|
390,000
|
|||
Other
|
2009-2029
|
6,506
|
6,685
|
6,857
|
|||
Total
debt
|
491,781
|
491,960
|
492,132
|
||||
Less: Current
maturities (b)
|
1,862
|
352
|
354
|
||||
Long-term
debt
|
$
|
489,919
|
$
|
491,608
|
$
|
491,778
|
(a)
|
Maturities
are based on the Company's July 31 fiscal year
end.
|
(b)
|
Current
maturities represent principal payments due in the next 12
months.
|
Total
|
||
2010
|
$
|
169
|
2011
|
1,831
|
|
2012
|
305
|
|
2013
|
319
|
|
2014
|
390,219
|
|
Thereafter
|
98,938
|
|
Total
debt
|
$
|
491,781
|
October
31,
|
July
31,
|
October
31,
|
|||||||||||
2009
|
2009
|
2008
|
|||||||||||
Land
and land improvements
|
$
|
264,030
|
$
|
261,263
|
$
|
266,194
|
|||||||
Buildings
and building improvements
|
751,038
|
750,063
|
729,211
|
||||||||||
Machinery
and equipment
|
499,768
|
496,963
|
459,544
|
||||||||||
Furniture
and fixtures
|
175,061
|
174,770
|
152,735
|
||||||||||
Software
|
51,358
|
44,584
|
40,359
|
||||||||||
Vehicles
|
34,265
|
33,991
|
29,588
|
||||||||||
Construction
in progress
|
47,767
|
40,724
|
72,744
|
||||||||||
Gross
property, plant and equipment
|
1,823,287
|
1,802,358
|
1,750,375
|
||||||||||
Accumulated
depreciation
|
(771,354
|
)
|
(744,700
|
)
|
(672,615
|
)
|
|||||||
Property,
plant and equipment, net
|
$
|
1,051,933
|
$
|
1,057,658
|
$
|
1,077,760
|
October
31,
|
July
31,
|
October
31,
|
|||||||||||
2009
|
2009
|
2008
|
|||||||||||
Trade
payables
|
$
|
60,597
|
$
|
42,591
|
$
|
73,348
|
|||||||
Real
estate development payables
|
55,082
|
45,681
|
57,001
|
||||||||||
Deferred
revenue
|
91,753
|
57,171
|
82,343
|
||||||||||
Deferred
real estate and other deposits
|
53,134
|
21,576
|
46,582
|
||||||||||
Accrued
salaries, wages and deferred compensation
|
16,087
|
15,202
|
16,052
|
||||||||||
Accrued
benefits
|
22,489
|
23,496
|
22,303
|
||||||||||
Accrued
interest
|
6,592
|
14,002
|
6,722
|
||||||||||
Liabilities
to complete real estate projects, short term
|
1,794
|
3,972
|
2,821
|
||||||||||
Other
accruals
|
22,744
|
21,845
|
20,344
|
||||||||||
Total
accounts payable and accrued liabilities
|
$
|
330,272
|
$
|
245,536
|
$
|
327,516
|
October
31,
|
July
31,
|
October
31,
|
|||||||||||
2009
|
2009
|
2008
|
|||||||||||
Private
club deferred initiation fee revenue and deposits
|
$
|
151,464
|
$
|
153,265
|
$
|
156,200
|
|||||||
Deferred
real estate deposits
|
--
|
32,792
|
45,856
|
||||||||||
Other
long-term liabilities
|
47,824
|
47,112
|
21,325
|
||||||||||
Total
other long-term liabilities
|
$
|
199,288
|
$
|
233,169
|
$
|
223,381
|
Fair
Value Measurements at Reporting Date Using
|
||||||||||||
Balance
at
|
||||||||||||
October
31,
|
||||||||||||
Description
|
2009
|
Level
1
|
Level
2
|
Level
3
|
||||||||
Cash
equivalents
|
$
|
8,998
|
$
|
7,448
|
$
|
1,550
|
$
|
--
|
Three
Months Ended
|
||||||||||
October
31,
|
||||||||||
2009
|
2008
|
|||||||||
Net
revenue:
|
||||||||||
Lift
tickets
|
$
|
--
|
$
|
--
|
||||||
Ski
school
|
--
|
--
|
||||||||
Dining
|
3,468
|
3,929
|
||||||||
Retail/rental
|
21,538
|
22,426
|
||||||||
Other
|
14,198
|
14,423
|
||||||||
Total
Mountain net revenue
|
39,204
|
40,778
|
||||||||
Lodging
|
41,355
|
45,253
|
||||||||
Total
Resort net revenue
|
80,559
|
86,031
|
||||||||
Real
Estate
|
205
|
66,750
|
||||||||
Total
net revenue
|
$
|
80,764
|
$
|
152,781
|
||||||
Operating
expense:
|
||||||||||
Mountain
|
$
|
76,468
|
$
|
81,223
|
||||||
Lodging
|
42,623
|
44,898
|
||||||||
Total
Resort operating expense
|
119,091
|
126,121
|
||||||||
Real
estate
|
5,177
|
51,377
|
||||||||
Total
segment operating expense
|
$
|
124,268
|
$
|
177,498
|
||||||
Gain
on sale of real property
|
$
|
6,087
|
$
|
--
|
||||||
Mountain
equity investment income, net
|
$
|
254
|
$
|
1,015
|
||||||
Reported
EBITDA:
|
||||||||||
Mountain
|
$
|
(37,010)
|
$
|
(39,430
|
)
|
|||||
Lodging
|
(1,268)
|
355
|
||||||||
Resort
|
(38,278)
|
(39,075
|
)
|
|||||||
Real
Estate
|
1,115
|
15,373
|
||||||||
Total
Reported EBITDA
|
$
|
(37,163)
|
$
|
(23,702
|
)
|
|||||
Real
estate held for sale and investment
|
$
|
366,748
|
$
|
256,323
|
||||||
Reconciliation
to net loss attributable to Vail Resorts, Inc.:
|
||||||||||
Total
Reported EBITDA
|
$
|
(37,163)
|
$
|
(23,702
|
)
|
|||||
Depreciation
and amortization
|
(27,184)
|
(25,078
|
)
|
|||||||
Loss
on disposal of fixed assets, net
|
(113)
|
(180
|
)
|
|||||||
Investment
income
|
230
|
643
|
||||||||
Interest
expense, net
|
(4,835)
|
(7,947
|
)
|
|||||||
Loss
before benefit from income taxes
|
(69,065)
|
(56,264
|
)
|
|||||||
Benefit
from income taxes
|
25,554
|
19,409
|
||||||||
Net
loss
|
$
|
(43,511)
|
$
|
(36,855
|
)
|
|||||
Net
loss attributable to noncontrolling interests
|
2,338
|
2,351
|
||||||||
Net
loss attributable to Vail Resorts, Inc.
|
$
|
(41,173)
|
$
|
(34,504
|
)
|
Supplemental
Condensed Consolidating Balance Sheet
|
||||||||||||||||
As
of October 31, 2009
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
100%
Owned
|
||||||||||||||||
Parent
|
Guarantor
|
Other
|
Eliminating
|
|||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Entries
|
Consolidated
|
||||||||||||
Current
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
--
|
$
|
9,926
|
$
|
3,093
|
$
|
--
|
$
|
13,019
|
||||||
Restricted
cash
|
--
|
13,306
|
130
|
--
|
13,436
|
|||||||||||
Trade
receivables, net
|
--
|
31,788
|
1,033
|
--
|
32,821
|
|||||||||||
Inventories,
net
|
--
|
10,313
|
52,466
|
--
|
62,779
|
|||||||||||
Other
current assets
|
22,611
|
23,755
|
2,456
|
--
|
48,822
|
|||||||||||
Total
current assets
|
22,611
|
89,088
|
59,178
|
--
|
170,877
|
|||||||||||
Property,
plant and equipment, net
|
--
|
986,754
|
65,179
|
--
|
1,051,933
|
|||||||||||
Real
estate held for sale and investment
|
--
|
366,748
|
--
|
--
|
366,748
|
|||||||||||
Goodwill,
net
|
--
|
148,702
|
19,248
|
--
|
167,950
|
|||||||||||
Intangible
assets, net
|
--
|
63,506
|
15,847
|
--
|
79,353
|
|||||||||||
Other
assets
|
3,048
|
25,206
|
5,015
|
--
|
33,269
|
|||||||||||
Investments
in subsidiaries and advances to (from) parent
|
1,220,067
|
318,849
|
(23,082
|
)
|
(1,515,834
|
)
|
--
|
|||||||||
Total
assets
|
$
|
1,245,726
|
$
|
1,998,853
|
$
|
141,385
|
$
|
(1,515,834
|
)
|
$
|
1,870,130
|
|||||
Current
liabilities:
|
||||||||||||||||
Accounts
payable and accrued liabilities
|
$
|
5,721
|
$
|
290,295
|
$
|
34,256
|
$
|
--
|
$
|
330,272
|
||||||
Income
taxes payable
|
5,725
|
--
|
--
|
--
|
5,725
|
|||||||||||
Long-term
debt due within one year
|
--
|
1,509
|
353
|
--
|
1,862
|
|||||||||||
Total
current liabilities
|
11,446
|
291,804
|
34,609
|
--
|
337,859
|
|||||||||||
Long-term
debt
|
390,000
|
41,214
|
58,705
|
--
|
489,919
|
|||||||||||
Other
long-term liabilities
|
29,690
|
166,793
|
2,805
|
--
|
199,288
|
|||||||||||
Deferred
income taxes
|
87,993
|
--
|
--
|
--
|
87,993
|
|||||||||||
Redeemable
noncontrolling interest
|
--
|
--
|
16,847
|
--
|
16,847
|
|||||||||||
|
Total
Vail Resorts, Inc. stockholders’ equity
|
726,597
|
1,499,042
|
16,792
|
(1,515,834
|
)
|
726,597
|
|||||||||
Noncontrolling
interests
|
--
|
--
|
11,627
|
--
|
11,627
|
|||||||||||
|
Total
stockholders’ equity
|
726,597
|
1,499,042
|
28,419
|
(1,515,834
|
)
|
738,224
|
|||||||||
Total
liabilities and stockholders' equity
|
$
|
1,245,726
|
$
|
1,998,853
|
$
|
141,385
|
$
|
(1,515,834
|
)
|
$
|
1,870,130
|
100%
Owned
|
|||||||||||||||||||||
Parent
|
Guarantor
|
Other
|
Eliminating
|
||||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Entries
|
Consolidated
|
|||||||||||||||||
Current
assets:
|
|||||||||||||||||||||
Cash
and cash equivalents
|
$
|
--
|
$
|
66,364
|
$
|
2,934
|
$
|
--
|
$
|
69,298
|
|||||||||||
Restricted
cash
|
--
|
11,065
|
--
|
--
|
11,065
|
||||||||||||||||
Trade
receivables, net
|
--
|
56,834
|
1,229
|
--
|
58,063
|
||||||||||||||||
Inventories,
net
|
--
|
11,895
|
37,052
|
--
|
48,947
|
||||||||||||||||
Other
current assets
|
21,333
|
18,407
|
1,875
|
--
|
41,615
|
||||||||||||||||
Total
current assets
|
21,333
|
164,565
|
43,090
|
--
|
228,988
|
||||||||||||||||
Property,
plant and equipment, net
|
--
|
991,027
|
66,631
|
--
|
1,057,658
|
||||||||||||||||
Real
estate held for sale and investment
|
--
|
311,485
|
--
|
--
|
311,485
|
||||||||||||||||
Goodwill,
net
|
--
|
148,702
|
19,248
|
--
|
167,950
|
||||||||||||||||
Intangible
assets, net
|
--
|
63,580
|
15,849
|
--
|
79,429
|
||||||||||||||||
Other
assets
|
3,226
|
30,710
|
5,034
|
--
|
38,970
|
||||||||||||||||
Investments
in subsidiaries and advances to (from) parent
|
1,290,532
|
307,124
|
(15,179
|
)
|
(1,582,477
|
)
|
--
|
||||||||||||||
Total
assets
|
$
|
1,315,091
|
$
|
2,017,193
|
$
|
134,673
|
$
|
(1,582,477
|
)
|
$
|
1,884,480
|
||||||||||
Current
liabilities:
|
|||||||||||||||||||||
Accounts
payable and accrued liabilities
|
$
|
12,412
|
$
|
214,021
|
$
|
19,103
|
$
|
--
|
$
|
245,536
|
|||||||||||
Income
taxes payable
|
5,460
|
--
|
--
|
--
|
5,460
|
||||||||||||||||
Long-term
debt due within one year
|
--
|
9
|
343
|
--
|
352
|
||||||||||||||||
Total
current liabilities
|
17,872
|
214,030
|
19,446
|
--
|
251,348
|
||||||||||||||||
Long-term
debt
|
390,000
|
42,716
|
58,892
|
--
|
491,608
|
||||||||||||||||
Other
long-term liabilities
|
29,690
|
200,974
|
2,505
|
--
|
233,169
|
||||||||||||||||
Deferred
income taxes
|
112,234
|
--
|
--
|
--
|
112,234
|
||||||||||||||||
Redeemable
noncontrolling interest
|
--
|
--
|
15,415
|
--
|
15,415
|
||||||||||||||||
Total Vail Resorts, Inc. stockholders’ equity
|
765,295
|
1,559,473
|
23,004
|
(1,582,477
|
)
|
765,295
|
|||||||||||||||
Noncontrolling interests
|
--
|
--
|
15,411
|
--
|
15,411
|
||||||||||||||||
Total stockholders’ equity
|
765,295
|
1,559,473
|
38,415
|
(1,582,477
|
)
|
780,706
|
|||||||||||||||
Total
liabilities and stockholders’ equity
|
$
|
1,315,091
|
$
|
2,017,193
|
$
|
134,673
|
$
|
(1,582,477
|
)
|
$
|
1,884,480
|
100%
Owned
|
||||||||||||||||||||
Parent
|
Guarantor
|
Other
|
Eliminating
|
|||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Entries
|
Consolidated
|
||||||||||||||||
Current
assets:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
--
|
$
|
92,806
|
$
|
9,862
|
$
|
--
|
$
|
102,668
|
||||||||||
Restricted
cash
|
--
|
12,193
|
260
|
--
|
12,453
|
|||||||||||||||
Trade
receivables, net
|
--
|
43,662
|
806
|
--
|
44,468
|
|||||||||||||||
Inventories,
net
|
--
|
10,965
|
56,753
|
--
|
67,718
|
|||||||||||||||
Other
current assets
|
16,115
|
21,622
|
4,251
|
--
|
41,988
|
|||||||||||||||
Total
current assets
|
16,115
|
181,248
|
71,932
|
--
|
269,295
|
|||||||||||||||
Property,
plant and equipment, net
|
--
|
828,390
|
249,370
|
--
|
1,077,760
|
|||||||||||||||
Real
estate held for sale and investment
|
--
|
204,323
|
52,000
|
--
|
256,323
|
|||||||||||||||
Goodwill,
net
|
--
|
123,034
|
19,248
|
--
|
142,282
|
|||||||||||||||
Intangible
assets, net
|
--
|
56,584
|
15,879
|
--
|
72,463
|
|||||||||||||||
Other
assets
|
3,758
|
36,570
|
6,734
|
--
|
47,062
|
|||||||||||||||
Investments
in subsidiaries and advances to (from) parent
|
1,160,589
|
699,571
|
(114,512
|
)
|
(1,745,648
|
)
|
--
|
|||||||||||||
Total
assets
|
$
|
1,180,462
|
$
|
2,129,720
|
$
|
300,651
|
$
|
(1,745,648
|
)
|
$
|
1,865,185
|
|||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable and accrued liabilities
|
$
|
5,889
|
$
|
224,520
|
$
|
97,107
|
$
|
--
|
$
|
327,516
|
||||||||||
Income
taxes payable
|
49,784
|
--
|
--
|
--
|
49,784
|
|||||||||||||||
Long-term
debt due within one year
|
--
|
11
|
343
|
--
|
354
|
|||||||||||||||
Total
current liabilities
|
55,673
|
224,531
|
97,450
|
--
|
377,654
|
|||||||||||||||
Long-term
debt
|
390,000
|
42,721
|
59,057
|
--
|
491,778
|
|||||||||||||||
Other
long-term liabilities
|
3,142
|
217,436
|
2,803
|
--
|
223,381
|
|||||||||||||||
Deferred
income taxes
|
57,063
|
--
|
--
|
--
|
57,063
|
|||||||||||||||
Redeemable
noncontrolling interest
|
--
|
--
|
31,947
|
--
|
31,947
|
|||||||||||||||
Total
Vail Resorts, Inc. stockholders’ equity
|
674,584
|
1,645,032
|
100,616
|
(1,745,648
|
)
|
674,584
|
||||||||||||||
Noncontrolling
interests
|
--
|
--
|
8,778
|
--
|
8,778
|
|||||||||||||||
Total
stockholders’ equity
|
674,584
|
1,645,032
|
109,394
|
(1,745,648
|
)
|
683,362
|
||||||||||||||
Total
liabilities and stockholders’ equity
|
$
|
1,180,462
|
$
|
2,129,720
|
$
|
300,651
|
$
|
(1,745,648
|
)
|
$
|
1,865,185
|
Supplemental
Condensed Consolidating Statement of Operations
|
|||||||||||||||||||
For
the three months ended October 31, 2009
|
|||||||||||||||||||
(in
thousands)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
100%
Owned
|
|||||||||||||||||||
Parent
|
Guarantor
|
Other
|
Eliminating
|
||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Entries
|
Consolidated
|
|||||||||||||||
Total
net revenue
|
$
|
--
|
$
|
59,820
|
$
|
22,975
|
$
|
(2,031
|
)
|
$
|
80,764
|
||||||||
Total
operating expense
|
162
|
115,717
|
31,592
|
(1,993
|
)
|
145,478
|
|||||||||||||
Loss
from operations
|
(162
|
)
|
(55,897
|
)
|
(8,617
|
)
|
(38
|
)
|
(64,714
|
)
|
|||||||||
Other
(expense) income, net
|
(6,758
|
)
|
2,505
|
(390
|
)
|
38
|
(4,605
|
)
|
|||||||||||
Equity
investment, net
|
--
|
254
|
--
|
--
|
254
|
||||||||||||||
Loss
before benefit from income taxes
|
(6,920
|
)
|
(53,138
|
)
|
(9,007
|
)
|
--
|
(69,065
|
)
|
||||||||||
Benefit
from income taxes
|
2,561
|
22,993
|
--
|
--
|
25,554
|
||||||||||||||
Net
loss before equity in (loss) income
|
|||||||||||||||||||
of
consolidated subsidiaries
|
(4,359
|
)
|
(30,145
|
)
|
(9,007
|
)
|
--
|
(43,511
|
)
|
||||||||||
Equity
in (loss) income of consolidated subsidiaries
|
(36,814
|
)
|
(6,669
|
)
|
--
|
43,483
|
--
|
||||||||||||
Net
(loss) income
|
(41,173
|
)
|
(36,814
|
)
|
(9,007
|
)
|
43,483
|
(43,511
|
)
|
||||||||||
Net
loss attributable to noncontrolling interests
|
--
|
--
|
2,338
|
--
|
2,338
|
||||||||||||||
Net
(loss) income attributable to Vail Resorts, Inc.
|
$
|
(41,173
|
)
|
$
|
(36,814
|
)
|
$
|
(6,669
|
)
|
$
|
43,483
|
$
|
(41,173
|
)
|
Supplemental
Condensed Consolidating Statement of Operations
|
|||||||||||||||||||
For
the three months ended October 31, 2008
|
|||||||||||||||||||
(in
thousands)
|
|||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||
100%
Owned
|
|||||||||||||||||||
Parent
|
Guarantor
|
Other
|
Eliminating
|
||||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Entries
|
Consolidated
|
|||||||||||||||
Total
net revenue
|
$
|
--
|
$
|
117,168
|
$
|
38,838
|
$
|
(3,225
|
)
|
$
|
152,781
|
||||||||
Total
operating expense
|
169
|
162,157
|
43,617
|
(3,187
|
)
|
202,756
|
|||||||||||||
Loss
from operations
|
(169
|
)
|
(44,989
|
)
|
(4,779
|
)
|
(38
|
)
|
(49,975
|
)
|
|||||||||
Other
(expense) income, net
|
(6,761
|
)
|
468
|
(1,049
|
)
|
38
|
(7,304
|
)
|
|||||||||||
Equity
investment, net
|
--
|
1,015
|
--
|
--
|
1,015
|
||||||||||||||
Loss
before benefit from income taxes
|
(6,930
|
)
|
(43,506
|
)
|
(5,828
|
)
|
--
|
(56,264
|
)
|
||||||||||
Benefit
(provision) for income taxes
|
2,494
|
16,918
|
(3
|
)
|
--
|
19,409
|
|||||||||||||
Net
loss before equity in (loss) income
|
|||||||||||||||||||
of
consolidated subsidiaries
|
(4,436
|
)
|
(26,588
|
)
|
(5,831
|
)
|
--
|
(36,855
|
)
|
||||||||||
Equity
in (loss) income of consolidated subsidiaries
|
(30,068
|
)
|
5,863
|
--
|
24,205
|
--
|
|||||||||||||
Net
(loss) income
|
(34,504
|
)
|
(20,725
|
)
|
(5,831
|
)
|
24,205
|
(36,855
|
)
|
||||||||||
Net
loss attributable to noncontrolling interests
|
--
|
--
|
2,351
|
--
|
2,351
|
||||||||||||||
Net
(loss) income attributable to Vail Resorts, Inc.
|
$
|
(34,504
|
)
|
$
|
(20,725
|
)
|
$
|
(3,480
|
)
|
$
|
24,205
|
$
|
(34,504
|
)
|
Supplemental
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||
For
the three months ended October 31, 2009
|
|||||||||||||||||
(in
thousands)
|
|||||||||||||||||
(Unaudited)
|
|||||||||||||||||
100%
Owned
|
|||||||||||||||||
Parent
|
Guarantor
|
Other
|
|||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
||||||||||||||
Net
cash used in operating activities
|
$
|
(36,441
|
)
|
$
|
(1,991
|
)
|
$
|
(6,519
|
)
|
$
|
(44,951
|
)
|
|||||
Cash
flows from investing activities:
|
|||||||||||||||||
Capital
expenditures
|
--
|
(19,191
|
)
|
(1,562
|
)
|
(20,753
|
)
|
||||||||||
Cash
received from sale of real property
|
--
|
8,920
|
--
|
8,920
|
|||||||||||||
Other
investing activities, net
|
--
|
(289
|
)
|
72
|
(217
|
)
|
|||||||||||
Net
cash used in investing activities
|
--
|
(10,560
|
)
|
(1,490
|
)
|
(12,050
|
)
|
||||||||||
Cash
flows from financing activities:
|
|||||||||||||||||
Proceeds
from borrowings under other long-term debt
|
--
|
18,000
|
11,457
|
29,457
|
|||||||||||||
Payments
of other long-term debt
|
--
|
(18,000
|
)
|
(11,636
|
)
|
(29,636
|
)
|
||||||||||
Other
financing activities, net
|
214
|
(459
|
)
|
1,146
|
901
|
||||||||||||
Advances
from (to) affiliates
|
36,227
|
(43,428
|
)
|
7,201
|
--
|
||||||||||||
Net
cash provided by (used in) financing activities
|
36,441
|
(43,887
|
)
|
8,168
|
722
|
||||||||||||
Net
decrease in cash and cash equivalents
|
--
|
(56,438
|
)
|
159
|
(56,279
|
)
|
|||||||||||
Cash
and cash equivalents:
|
|||||||||||||||||
Beginning
of period
|
--
|
66,364
|
2,934
|
69,298
|
|||||||||||||
End
of period
|
$
|
--
|
$
|
9,926
|
$
|
3,093
|
$
|
13,019
|
Supplemental
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||
For
the three months ended October 31, 2008
|
|||||||||||||||||
(in
thousands)
|
|||||||||||||||||
(Unaudited)
|
|||||||||||||||||
100%
Owned
|
|||||||||||||||||
Parent
|
Guarantor
|
Other
|
|||||||||||||||
Company
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
||||||||||||||
Net
cash (used in) provided by operating activities
|
$
|
(36,215
|
)
|
$
|
43,155
|
$
|
43,979
|
$
|
50,919
|
||||||||
Cash
flows from investing activities:
|
|||||||||||||||||
Capital
expenditures
|
--
|
(38,399
|
)
|
(4,985
|
)
|
(43,384
|
)
|
||||||||||
Other
investing activities, net
|
--
|
(2,665
|
)
|
83
|
(2,582
|
)
|
|||||||||||
Net
cash used in investing activities
|
--
|
(41,064
|
)
|
(4,902
|
)
|
(45,966
|
)
|
||||||||||
Cash
flows from financing activities:
|
|||||||||||||||||
Repurchases
of common stock
|
(7,412
|
)
|
--
|
--
|
(7,412
|
)
|
|||||||||||
Proceeds
from borrowings under non-recourse
|
|||||||||||||||||
real
estate financings
|
--
|
--
|
9,013
|
9,013
|
|||||||||||||
Payments
of non-recourse real estate financings
|
--
|
--
|
(58,407
|
)
|
(58,407
|
)
|
|||||||||||
Proceeds
from borrowings under other long-term debt
|
--
|
--
|
20,640
|
20,640
|
|||||||||||||
Payments
of other long-term debt
|
--
|
(15,000
|
)
|
(20,808
|
)
|
(35,808
|
)
|
||||||||||
Other
financing activities, net
|
(207
|
)
|
3,572
|
3,979
|
7,344
|
||||||||||||
Advances
from (to) affiliates
|
43,834
|
(54,639
|
)
|
10,805
|
--
|
||||||||||||
Net
cash provided by (used in) financing activities
|
36,215
|
(66,067
|
)
|
(34,778
|
)
|
(64,630
|
)
|
||||||||||
Net
(decrease) increase in cash and cash equivalents
|
--
|
(63,976
|
)
|
4,299
|
(59,677
|
)
|
|||||||||||
Cash
and cash equivalents:
|
|||||||||||||||||
Beginning
of period
|
--
|
156,782
|
5,563
|
162,345
|
|||||||||||||
End
of period
|
$
|
--
|
$
|
92,806
|
$
|
9,862
|
$
|
102,668
|
·
|
The
economic recession that has affected the U.S. and global economies, the
tightened credit markets and eroded consumer confidence has had a negative
impact on overall trends in the travel and leisure industries and on the
Company’s results of operations. Currently, the Company is
experiencing a decline in reservations as compared to the same period in
the prior year from destination guests at certain of its
properties. Furthermore, the Company is experiencing a change
in booking trends such that guest reservations are being made much closer
to the actual date of stay. In an attempt to mitigate the
impact of the current economic environment the Company is offering various
discounts, promotions and incentives in areas such as lodging, ski school,
dining and retail/rental operations. The Company cannot predict
the ultimate impact these programs will have on its future results of
operations, in particular on the 2009/2010 ski season, as this will depend
on the extent to which these negative trends continue, worsen, or improve
or the timing and nature of any changes to the macroeconomic
environment.
|
·
|
The
timing and amount of snowfall can have an impact on Mountain and Lodging
revenue particularly in regards to skier visits and the duration and
frequency of guest visitation. To mitigate this impact, the
Company focuses efforts on the sale of season passes prior to the
beginning of the season to in-state and local guests and destination
guests. Additionally, the Company has invested in snowmaking
upgrades in an effort to address the inconsistency of early season
snowfall where
possible.
|
·
|
As
part of an effort to provide a more stabilized stream of lift revenue the
Company introduced the Epic Season Pass for the 2008/2009 ski season,
which largely contributed to season pass revenue as a percentage of total
lift revenue increasing from 26% for the 2007/2008 ski season to 34% for
the 2008/2009 ski season. In March 2009, the Company began its pass
sales campaign for the 2009/2010 ski season, including the Epic Season
Pass, and as of October 31, 2009 had deferred revenue related to season
pass sales of $73.1 million compared to $66.0 million as of October 31,
2008. Even though the Company collects the vast majority of its
season pass sales prior to the start of the ski season, the deferred
revenue related to season pass sales will be recognized over the 2009/2010
ski season. The Company cannot predict the impact that season pass sales
may have on total lift revenue or effective ticket price for the 2009/2010
ski season.
|
·
|
Real
Estate Reported EBITDA is highly dependent on, among other things, the
timing of closings on real estate under contract, which determines when
revenue and associated cost of sales is recognized. Changes to
the anticipated timing or mix of closing on one or more real estate
projects, or unit closings within a real estate project, could materially
impact Real Estate Reported EBITDA for a particular fiscal quarter or
fiscal year. The Company has two real estate projects currently under
development which are scheduled to be completed in the spring/summer of
2010 (One Ski Hill Place in Breckenridge) and the fall of 2010 (The
Ritz-Carlton Residences, Vail) and has entered into definitive sales
contracts with a value of approximately $327.0 million, which represents
approximately 68% of the total current estimated sales value for these two
projects. The Company has increased risk associated with
selling and closing real estate as a result of the continued instability
in the capital and credit markets and slowdown in the overall real estate
market. The Company cannot predict the ultimate number of units
that it will sell and/or close, the ultimate price it will receive, or
when the units will sell and/or close. Additionally, if a more
severe prolonged economic downturn were to occur the Company may have to
adjust its selling prices in an effort to sell and close on units
currently under development, although it currently has no plans to do
so.
|
·
|
The
Company had $13.0 million in cash and cash equivalents as of October 31,
2009 as well as $307.0 million available under the revolver component of
its senior credit facility (the “Credit Facility”). The Company plans
to continue to self-fund its current real estate projects under
construction (the Company estimates to incur between $150 and $170 million
in cash expenditures subsequent to October 31, 2009 on the projects
currently under construction) which will require the Company to borrow
under the revolver component of its Credit Facility from time to time
during fiscal 2010; however, the Company currently believes it has
adequate capacity under its revolver to address potential borrowing needs,
even in the event of a more sustained negative economic
environment.
|
·
|
Under
GAAP, the Company is required to test goodwill for impairment annually,
which the Company does so during the fourth quarter of each fiscal
year. The Company evaluates the recoverability of its goodwill
by estimating the future discounted cash flows of its reporting units and
terminal values of the businesses using projected future levels of income
as well as business trends, prospects and market and economic
conditions. The Company evaluates the recoverability of
indefinite-lived intangible assets using the income approach based upon
estimated future revenue streams. The Company’s fiscal 2009
annual impairment test did not result in a goodwill or indefinite-lived
intangible asset impairment, however, if a more severe prolonged economic
downturn were to occur it could cause less than expected growth and/or
reduction in terminal values of the Company’s reporting units which may
result in a goodwill and/or indefinite-lived intangible asset impairment
charge.
|
Three
Months Ended
|
|||||||||
October
31,
|
|||||||||
2009
|
2008
|
||||||||
Mountain
Reported EBITDA
|
$
|
(37,010
|
)
|
$
|
(39,430
|
)
|
|||
Lodging
Reported EBITDA
|
(1,268
|
)
|
355
|
||||||
Resort
Reported EBITDA
|
(38,278
|
)
|
(39,075
|
)
|
|||||
Real
Estate Reported EBITDA
|
1,115
|
15,373
|
|||||||
Loss
before benefit from income taxes
|
(69,065
|
)
|
(56,264
|
)
|
|||||
Net
loss attributable to Vail Resorts, Inc.
|
$
|
(41,173
|
)
|
$
|
(34,504
|
)
|
Three
months ended
|
Percentage
|
||||||||
October
31,
|
Increase
|
||||||||
2009
|
2008
|
(Decrease)
|
|||||||
Net
Mountain revenue:
|
|||||||||
Lift
tickets
|
$
|
--
|
$
|
--
|
--
|
%
|
|||
Ski
school
|
--
|
--
|
--
|
%
|
|||||
Dining
|
3,468
|
3,929
|
(11.7
|
)
%
|
|||||
Retail/rental
|
21,538
|
22,426
|
(4.0
|
)
%
|
|||||
Other
|
14,198
|
14,423
|
(1.6
|
)
%
|
|||||
Total
Mountain net revenue
|
$
|
39,204
|
$
|
40,778
|
(3.9
|
)
%
|
|||
Mountain
operating expense:
|
|||||||||
Labor
and labor-related benefits
|
$
|
23,384
|
$
|
24,017
|
(2.6
|
)
%
|
|||
Retail
cost of sales
|
12,563
|
13,251
|
(5.2
|
)
%
|
|||||
General
and administrative
|
20,273
|
22,949
|
(11.7
|
)
%
|
|||||
Other
|
20,248
|
21,006
|
(3.6
|
)
%
|
|||||
Total
Mountain operating expense
|
$
|
76,468
|
$
|
81,223
|
(5.9
|
)
%
|
|||
Mountain
equity investment income, net
|
254
|
1,015
|
(75.0
|
)
%
|
|||||
Total
Mountain Reported EBITDA
|
$
|
(37,010
|
)
|
$
|
(39,430
|
)
|
6.1
|
%
|
Three
months ended
|
Percentage
|
|||||||
October
31,
|
Increase
|
|||||||
2009
|
2008
|
(Decrease)
|
||||||
Lodging
net revenue:
|
||||||||
Owned
hotel rooms
|
$
|
10,997
|
$
|
12,200
|
(9.9
|
)
|
%
|
|
Managed
condominium rooms
|
4,410
|
5,055
|
(12.8
|
)
|
%
|
|||
Dining
|
8,946
|
10,489
|
(14.7
|
)
|
%
|
|||
Transportation
|
1,787
|
--
|
--
|
%
|
||||
Golf
|
6,759
|
7,958
|
(15.1
|
)
|
%
|
|||
Other
|
8,456
|
9,551
|
(11.5
|
)
|
%
|
|||
Total
Lodging net revenue
|
$
|
41,355
|
$
|
45,253
|
(8.6
|
)
|
%
|
|
Lodging
operating expense:
|
||||||||
Labor
and labor-related benefits
|
$
|
20,375
|
$
|
20,843
|
(2.2
|
)
|
%
|
|
General
and administrative
|
6,707
|
7,113
|
(5.7
|
)
|
%
|
|||
Other
|
15,541
|
16,942
|
(8.3
|
)
|
%
|
|||
Total
Lodging operating expense
|
$
|
42,623
|
$
|
44,898
|
(5.1
|
)
|
%
|
|
Total
Lodging Reported EBITDA
|
$
|
(1,268)
|
$
|
355
|
(457.2
|
)
|
%
|
|
Owned
hotel statistics:
|
||||||||
ADR
|
$
|
175.92
|
$
|
164.82
|
6.7
|
%
|
||
RevPar
|
$
|
89.24
|
$
|
101.03
|
(11.7
|
)
|
%
|
|
Managed
condominium statistics:
|
||||||||
ADR
|
$
|
176.07
|
$
|
172.89
|
1.8
|
%
|
||
RevPar
|
$
|
26.46
|
$
|
37.23
|
(28.9
|
)
|
%
|
|
Owned
hotel and managed condominium statistics (combined):
|
||||||||
ADR
|
$
|
175.96
|
$
|
167.45
|
5.1
|
%
|
||
RevPar
|
$
|
53.08
|
$
|
63.95
|
(17.0
|
)
|
%
|
|
Three
Months Ended
|
Percentage
|
|||||||||
October
31,
|
Increase
|
|||||||||
2009
|
2008
|
(Decrease)
|
||||||||
Total
Real Estate net revenue
|
$
|
205
|
$
|
66,750
|
(99.7
|
)
|
%
|
|||
Total
Real Estate operating expense
|
5,177
|
51,377
|
(90.0
|
)
|
%
|
|||||
Gain
on sale of real property
|
6,087
|
--
|
--
|
%
|
||||||
Total
Real Estate Reported EBITDA
|
$
|
1,115
|
$
|
15,373
|
(92.7
|
)
|
%
|
Three
Months Ended
|
||||||||||
October
31,
|
||||||||||
2009
|
2008
|
|||||||||
Mountain
Reported EBITDA
|
$
|
(37,010
|
)
|
$
|
(39,430
|
)
|
||||
Lodging
Reported EBITDA
|
(1,268
|
)
|
355
|
|||||||
Resort
Reported EBITDA
|
(38,278
|
)
|
(39,075
|
)
|
||||||
Real
Estate Reported EBITDA
|
1,115
|
15,373
|
||||||||
Total
Reported EBITDA
|
(37,163
|
)
|
(23,702
|
)
|
||||||
Depreciation
and amortization
|
(27,184
|
)
|
(25,078
|
)
|
||||||
Loss
on disposal of fixed assets, net
|
(113
|
)
|
(180
|
)
|
||||||
Investment
income
|
230
|
643
|
||||||||
Interest
expense, net
|
(4,835
|
)
|
(7,947
|
)
|
||||||
Loss
before benefit from income taxes
|
(69,065
|
)
|
(56,264
|
)
|
||||||
Benefit
from income taxes
|
25,554
|
19,409
|
||||||||
Net
loss
|
(43,511
|
)
|
(36,855
|
)
|
||||||
Net
loss attributable to noncontrolling interests
|
2,338
|
2,351
|
||||||||
Net
loss attributable to Vail Resorts, Inc.
|
$
|
(41,173
|
)
|
$
|
(34,504
|
)
|
October
31,
|
||||||
2009
|
2008
|
|||||
Long-term
debt
|
$
|
489,919
|
$
|
491,778
|
||
Long-term
debt due within one year
|
1,862
|
354
|
||||
Total
debt
|
491,781
|
492,132
|
||||
Less:
cash and cash equivalents
|
13,019
|
102,668
|
||||
Net
debt
|
$
|
478,762
|
$
|
389,464
|
·
|
prolonged
downturn in general economic conditions, including continued adverse
affects on the overall travel and leisure related
industries;
|
·
|
unfavorable
weather conditions or natural
disasters;
|
·
|
adverse
events that occur during our peak operating periods combined with the
seasonality of our business;
|
·
|
competition
in our mountain and lodging
businesses;
|
·
|
our
ability to grow our resort and real estate
operations;
|
·
|
our
ability to successfully complete real estate development projects and
achieve the anticipated financial benefits from such
projects;
|
·
|
further
adverse changes in real estate
markets;
|
·
|
continued
volatility in credit markets;
|
·
|
our
ability to obtain financing on terms acceptable to us to finance our real
estate development, capital expenditures and growth
strategy;
|
·
|
our
reliance on government permits or approvals for our use of Federal land or
to make operational improvements;
|
·
|
adverse
consequences of current or future legal
claims;
|
·
|
our
ability to hire and retain a sufficient seasonal
workforce;
|
·
|
willingness
of our guests to travel due to terrorism, the uncertainty of military
conflicts or outbreaks of contagious diseases, and the cost and
availability of travel options;
|
·
|
negative
publicity or unauthorized use of our trademarks which diminishes the value
of our brands;
|
·
|
our
ability to integrate and successfully operate future acquisitions;
and
|
·
|
implications
arising from new Financial Accounting Standards Board
(“FASB”)/governmental legislation, rulings or
interpretations.
|
Exhibit
Number
|
Description
|
Sequentially
Numbered Page
|
3.1
|
Amended
and Restated Certificate of Incorporation of Vail Resorts, Inc., dated
January 5, 2005. (Incorporated by reference to Exhibit 3.1 on Form 10-Q of
Vail Resorts, Inc. for the quarter ended January 31,
2005.)
|
|
3.2
|
Amended
and Restated By-Laws. (Incorporated by reference to Exhibit 3.1 on Form
8-K of Vail Resorts, Inc. filed February 6, 2009.)
|
|
4.1(a)
|
Indenture,
dated as of January 29, 2004, among Vail Resorts, Inc., the guarantors
therein and the Bank of New York as Trustee (Including Exhibit A, Form of
Global Note). (Incorporated by reference to Exhibit 4.1 on Form
8-K of Vail Resorts, Inc. filed on February 2, 2004.)
|
|
4.1(b)
|
Supplemental
Indenture, dated as of March 10, 2006 to Indenture dated as of January 29,
2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as
Guarantors, and The Bank of New York, as Trustee. (Incorporated
by reference to Exhibit 10.34 on Form 10-Q of Vail Resorts, Inc. for the
quarter ended January 31, 2006.)
|
|
4.1(c)
|
Form
of Global Note. (Incorporated by reference to Exhibit 4.1 on
Form 8-K of Vail Resorts, Inc. filed February 2, 2004.)
|
|
4.1(d)
|
Supplemental
Indenture, dated as of April 26, 2007 to Indenture dated as of January 29,
2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as
Guarantors, and The Bank of New York, as Trustee. (Incorporated by
reference to Exhibit 4.1(d) on Form 10-K of Vail Resorts, Inc. for the
year ended July 31, 2008.)
|
|
4.1(e)
|
Supplemental
Indenture, dated as of July 11, 2008 to Indenture dated as of January 29,
2004 among Vail Resorts, Inc., as Issuer, the Guarantors named therein, as
Guarantors, and The Bank of New York Mellon Trust Company, N.A., as
Trustee. (Incorporated by reference to Exhibit 4.1(e) on Form 10-K of Vail
Resorts, Inc. for the year ended July 31, 2008.)
|
|
4.1(f)
|
Supplemental
Indenture, dated as of January 29, 2009 to Indenture dated as of January
29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named
therein, as Guarantors, and The Bank of New York Mellon Trust Company,
N.A., as Trustee. (Incorporated by reference to Exhibit 4.1(f)
on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31,
2009.)
|
|
4.1(g)
|
Supplemental
Indenture, dated as of August 24, 2009 to Indenture dated as of January
29, 2004 among Vail Resorts, Inc., as Issuer, the Guarantors named
therein, as Guarantors, and The Bank of New York Mellon Trust Company,
N.A., as Trustee. (Incorporated by reference to Exhibit 4.1(g)
on Form 10-K of Vail Resorts, Inc. for the year ended July 31,
2009.)
|
|
31.1
|
Certifications
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
15
|
31.2
|
Certifications
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
16
|
32
|
Certifications
of Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S.C. Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
17
|
Date: December
8, 2009
|
Vail
Resorts, Inc.
|
|
By:
|
/s/ Jeffrey W. Jones
|
|
Jeffrey
W. Jones
|
||
Senior
Executive Vice President and
|
||
Chief
Financial Officer
|
||
(Duly
Authorized Officer)
|
Date: December
8, 2009
|
Vail
Resorts, Inc.
|
|
By:
|
/s/ Mark L. Schoppet
|
|
Mark
L. Schoppet
|
||
Vice
President, Controller and
|
||
Chief
Accounting Officer
|