Vail Resorts, Inc.

Thank you. Good afternoon, everyone. Welcome to our third quarter fiscal 2020 earnings conference call. Joining me on the call this afternoon is Michael Barkin, our Chief Financial Officer.

Before we begin, let me remind you that some information provided during this call may include forward-looking statements that are based on certain assumptions and are subject to a number of risks and uncertainties, as described in our SEC filings, and actual future results may vary materially. Forward-looking statements in our press release issued this afternoon along with our remarks on this call are made as of today, June 4, 2020, and we undertake no duty to update them as actual events unfold. Today's remarks also include certain non-GAAP financial measures. Reconciliations of these measures are provided in the tables included with our press release, which along with our quarterly report on Form 10-Q were filed this afternoon with the SEC and are also available on the investor relations section of our website at www.valeresorts.com. So with that said, let's turn to our third quarter fiscal 2020 results. Our results for the quarter and for the full 2019-2020 North American ski season were significantly impacted by COVID-19. and the resulting closure of our North American Mountain Resorts beginning March 15, 2020, a decision we made for the safety of our guests, employees and resort communities. In addition, even before the closure and during the first two weeks of March, we experienced the negative change in performance that we believe was due to the impact of COVID-19 on traveler behavior. As of March 18, 2020, we anticipated that our operating results in March and April would be negatively impacted by $180 million to $200 million compared to the resort-reported EBITDA expectation we had on March 1, 2020. Relative to these expectations, our results were favorable by approximately $40 million, primarily driven by cost actions implemented in April 2020. In addition, resort-reported EBITDA for the quarter was negatively impacted by the deferral of approximately $113 million dollars of past product revenue and related deferred costs to fiscal 2021 as a result of pass holder credits offered to 2019-2020 North American pass holders to encourage renewal for next season. Looking ahead to our summer operations, we are planning to be operational for the North American summer and Australian ski season in late June or early July, which could vary by resort. and opening dates for each business are subject to new information and public health guidance with regard to COVID-19. We expect that our results in the fourth quarter of fiscal 2020 will be materially negatively impacted by the travel environment and we will see lower visitation to our resort properties. However, we are not able to fully assess that impact at this time and will not be issuing guidance for the fourth quarter or fiscal year. We believe we have developed efficient operating plans to deliver a safe and enjoyable guest experience at our resorts this summer in North America and for the Australian ski season, with the ability to adjust as consumer demand and local guidelines and practices shift. Now I would like to turn the call over to Michael to further discuss our financial results, balance sheet, and liquidity.

Thanks, Rob, and good afternoon, everyone. As Rob mentioned, our results for the quarter were significantly impacted by COVID-19 and the resulting closure of our North American Mountain Resorts. Resort-reported EBITDA was $304.4 million for the third fiscal quarter of 2020, compared to resort-reported EBITDA of $480.7 million for the same period in the prior year, primarily as a result of the negative impacts of COVID-19 offset by cost actions implemented. Net income attributable to Vale Resorts was $152.5 million or $3.74 per diluted share for the third quarter of fiscal 2020 compared to net income of $292.1 million or $7.12 per diluted share for the same period in the prior year. We expect to have sufficient liquidity to support our business as we continue to navigate the impacts of COVID-19. With total cash and revolver availability as of May 31, 2020 of approximately $1.1 billion. With $465 million of cash on hand, $419 million of U.S. revolver availability under the Vail Holdings Credit Agreement, and $168 million of revolver availability under the Whistler Credit Agreement. As of April 30, 2020, our net debt was 3.6 times trailing 12 months total reported EBITDA. In April and May, we implemented plans to support our liquidity, including completing an offering of $600 million of 6.25% unsecured notes due 2020-2025, a portion of which was utilized to pay down the outstanding balance of our U.S. revolver under the bailholdings credit agreement in its entirety. Additionally, We implemented plans to support our liquidity by reducing our capital plan for calendar year 2020 by approximately $80 to $85 million, suspending cash dividends to shareholders for two quarters, which preserves an additional $142 million of liquidity, furloughing a significant number of our year-round hourly and salaried employees in the U.S., and implementing six-month salary reductions for all salaried employees in the U.S., among other tossed actions. The company has also recognized approximately $9 million of labor cost offsets in the third fiscal quarter associated with the U.S. CARES Act, Canada Emergency Wage Subsidy, and Australian JobKeeper legislation. Additionally, we entered into an amendment to the Vale Holdings Credit Agreement providing, among other terms, that Vale Holdings will be exempt from complying with the agreement's financial maintenance covenants for each of the fiscal quarters ending July 31, 2020 through January 31, 2022, unless Vail Holdings makes a one-time irrevocable election to terminate such exemption period prior to such date. We expect to have sufficient liquidity following these actions to fund our operations for up to two years, even in the extent of extended resort shutdowns. During the third fiscal quarter, the company paid a cash dividend of approximately $70.7 million, or $1.76 per share of common stock. Additionally, we repurchased approximately $25 million of stock at an average price of $155.33 per share, which was completed by March 13, 2020. Subsequent to these events, we suspended our cash dividend for a minimum of two quarters. I'll now turn the call back over to Rob.