Vail Resorts, Inc.

Q4 2021 Earnings Conference Call

10/7/2021

spk_0: hey and welcome to the vail resorts fiscal year and twenty twenty one earnings call today's conference is being recorded at this time i like it from the conference over to rob cats please go ahead sir
spk_1: thank you operator good afternoon everyone welcome to our fiscal twenty twenty one year and earnings conference call i'm excited that pierced lunch or current chief marketing officer an incoming chief executive officer join michael barking are cheap and antelava there and me i'm a call today before you begin let me remind you that some information provided during this common could probably pay me for a bit uncertain something that are subject to a number written on seventeenth the described in our at the peak oil and natural future results may vary materially forward looking statements and our personally issue this afternoon along with our march them as color made at the today the timber twenty third twenty twenty one when undertaking duty the update them and actual events unfold taser marks often includes or non gaap financial measures reconciliation a big measures are providing the table concluded that are personally than along with our annual port on form ten k were found this afternoon with the at the theater also available on the back to religion section of our website w www dot bellas artes that come the with that said that turn to our fiscal twenty twenty one and fourth quarter results given a continue challenges associated with toby nineteen we are pleased with are operating results for the year a result highlighted our data driven marketing capabilities the value of our path product the resiliency of demand for the experience if we offer throughout our network of world last resort and are discipline cost control results continue to and through the as the twenty twenty twenty twenty one north american ski season progressed primarily as a result of stronger destination visitation at our colorado and utah resort excluding peak retorts total steer visitation and are us destination not resort and regional ski areas for fiscal twenty twenty one with down only six percent compared to fiscal twenty nineteen whistler blackcomb performance with disproportionately impacted doing the due to the closure of the canadian border to international gap including gas from the us and the resort closing earlier than expected on march thirtieth twenty twenty one following a provincial health order issued by the government of british columbia black comes total scare visitation or twenty twenty one declined fifty one percent complex compared to fiscal twenty nineteen our ancillary line of business or more significantly and negatively impacted by koba nineteen related capacity concern and limitations throughout the twenty twenty twenty twenty one north american citizen we generated a resort reported he did ah marjan at twenty eight point five percent driven by or discipline pop control as was a higher proportion of lifter avenue relative to and flurry line the business compared to cryo terrier for the fourth quarter we are pleased with a strong demand across our north american summer operation which exceeded our expectations and we believe highlight our guess continued affinity for outdoor experiences in australia we experience strong demand trying to the beginning of the twenty twenty one australian tv them however subsequent covered night related said home orders and temporary resort closures negatively impacted financial results for the fourth quarter by approximately eight million dollars relative to a guidance expectation issued on june seven twenty twenty one fourth quarter results were also negatively impacted relatives who are june some and twenty twenty one guided by a one time thirteen point two million dollar charge for contingent obligation with respect to certain litigation manners
spk_2: now of turn the call already kyrstin to provide an update on our season pass out thank you rob and good afternoon everyone i am pleased to be joining our earnings call today and look forward to speaking more regularly with our investors and analysts as we move towards the c e o transition on november first we are pleased with the results of our season pass out today let's continue to demonstrate the strike length of our data driven marketing initiative and the compelling value proposition of our cats product driven in part by the twenty percent reduction and our path prices for the upcoming season cast product sales three september seventeenth twenty twenty one to the upcoming twenty twenty one twenty twenty two north american ski season increased approximately forty two percent in europe and approximately seventeen percent and failed dollars as compared to the period and the prior year three september eighteenth twenty funny without ducting for the value of any redeemed credits provided that certain north american capital doors and the prior period can provide a comparison to the season pass without really thinking path product sales through september seventeenth twenty twenty one for the upcoming north american ski season increase approximately sixty seven percent and units and approximately forty five percent and failed dollars as compared to sales for the twenty nine nineteen twenty twenty north american ski them through september twentieth two thousand and nineteen with path product sales adjusted to include peak resort path failed and both period as product failed are adjusted to eliminate the impact of foreign currency by applying and exchange rate of five seven nine between the canadian dollar and us dollar and all periods or whistler blackcomb pass out
spk_3: we thought strong unit growth from renewing pass authors and significantly stronger younger crowd from new path others which include guess that our database for previously purchased lift tickets or passes but did not buy a pastor a lift ticket and the previous season as well as guess who are completely new to
spk_2: our database our strongest unit growth which from our destination market including the northeast and we also had a very strong growth across our local market the majority of our absolute unit growth came from our core epic path an epic local path products and we also thought even higher percentage growth from are affected day pass product compared to the period ending september eighteen twenty twenty effective half price decrease seventeen percent despite the twenty percent price reduction we implemented the here and a significant growth of our lower priced effect a path product which continue to represent an increasing portion of our total advanced commitment products out we are very pleased with the performance of our path product sales effort to date which exceeded our original expectations for the impact of the twenty percent price reduction particularly and the growth of new pass holders and and trade up as we are seeing from householders into higher price product as we enter the final period for crap path product failed we feel good about the current trends layer thing however it is important to point out that we know a portion of the growth we have seen to date represents certain pass holders purchasing their path earlier in the selling season and then in the prior year period and we saw strong growth in the late fall and the prior year period do it concerns about covered nineteen including questions about our resort accept as a result of our reservation system given these factors and the other changing economic and covert related dynamics it is difficult to provide specific guidance on our final breath race which may decline from the rates reported today
spk_1: now i would like to turn the call over to michael to further discuss our financial results and fiscal twenty twenty two outlook thanks cure thing and good afternoon everyone as robinson we're pleased with our results for fiscal year twenty twenty one as a reminder in the prior year we announced the early closure of the twenty nineteen twenty twenty north american ski season for our ski areas lodging properties and retail and rental store just as a result of the kobe nineteen pandemic beginning on march fifteen twenty twenty he's actions that a significant adverse impact on our results of operations for fiscal year twenty twenty
spk_4: additionally the ongoing covered nineteen pandemic and the resulting limitations and restrictions on our operations continued to have an adverse impact on our results for fiscal year twenty twenty one including the early closure of whistler blackcomb on march thirtieth twenty twenty one and stay at home orders and periodic resort closures impact in our skier
spk_1: areas in australia net income attributable to vail resorts was one hundred and twenty seven point nine million dollars or three dollars and thirteen cents per diluted share for fiscal your twenty twenty one compared to net income of ninety eight point eight million dollars or two dollars and forty two cents per diluted share in the prior fiscal year resort reward even dollars five hundred forty four point seven million dollars for physically or twenty twenty one an increase of forty one point three million dollars compared to fiscal year twenty twenty fiscal twenty twenty one includes the impact from the deferral at one hundred eighty million dollars of pass product revenue and related deferred cause from physical twenty twenty two ooh physical twenty twenty one as a result of the credits offered to twenty twenty twenty twenty one north american past product holders are a one a one time thirteen point two million dollar charge for a contingent obligation with respect to certain litigation matters and approximately two million dollars of favorability from currency translate asian from whistler blackcomb which the company calculated on a constant currency basis by applying for a period foreign exchange rate to prior period results movie now to our fiscal twenty two or twenty twenty two outlook were encouraged by the robust demand from our guess the strength of our advanced commitment product sales and our continued focus on enhancing the guess experience while maintaining our cars discipline or guidance for net income attributable to vail resorts is estimated to be between two hundred seventy eight million dollars and three hundred forty nine million dollars for fiscal twenty twenty two and we estimate resort reported even da for fiscal twenty twenty two will be between seven hundred eighty five million dollars and eight hundred thirty five million dollars using the midpoint of the guidance range we estimate resort even da margin for fiscal twenty twenty two to be approximately thirty two point one percent which is negatively impacted as a result of covert nineteen impacts associated with australia in the first quarter of fiscal twenty twenty two and the anticipated slower recovery and in are now while visitation and group and conference business the guidance assumes normal weather conditions a continuation of the current economic environment and no material impacts associated with job at nineteen for the twenty twenty one twenty twenty two north american ski season or the twenty twenty two ah australian ski season other than unexpected slower recovery for internet national visitation which is expected to have a disproportionate impact at whistler blackcomb and group and conference business which is expected to have a disproportionate impact in our lodging segment at whistler blackcomb we estimate the upcoming winter season will generate approximately twenty seven million dollars lower resort reported he bit that relative to the comparable period in fiscal twenty nineteen primarily driven by the anticipated reduction in international visitation fiscal twenty twenty two guidance includes an expectation that the first quarter of his whole twenty twenty two will generate a net loss attributable to vail resorts between one hundred fifty six million dollars and one hundred thirty six million dollars and resort reported either da between negative one hundred eighteen million dollars and negative one hundred sixty
spk_4: million dollars we estimate the negative impacts of covert nineteen in australia and the associated limitations and restrictions including that current lockdowns will have a negative resort reported he that the impact of approximately forty one million dollars in the first quarter of fiscal twenty twenty two as compared to the first quarter of fiscal two
spk_1: twenty twenty we are providing guidance for the first quarter of fiscal twenty twenty two as a result of these negative impacts of covert nineteen in australia and we do not intend to provide quarterly guidance on a go forward basis despite the significant investment we made by increasing our minimum an entry wage is this year and the headwinds that we expect to face from australia whistler blackcomb and our group and conference business we are expecting to drive margin expansion in fiscal twenty twenty two three continued costs discipline including significant for saving just that are a continuation of our focus on operating as efficiently as possible coming out of covered nineteen or liquidity position remains strong and we are confident in the free cash flow generation and stability of our business model our total cash and revolver availability as of july thirty first twenty twenty one was approximately one point nine billion dollars with one point two billion dollars of cash on hand for hundred eighteen million dollars of revolver availability under the veil holdings credit agreement and one hundred ninety five million dollars of revolver availability under the with or black on credit agreement as of july thirty first twenty twenty one or net debt was three times trailing twelve months total reported either better given our strong balance sheet an outlook we are pleased to announce the company plans to exit the temporary waiver period under the veil holdings credit agreement effect of october thirty first twenty twenty one and declared a cash dividend of eighty eight cents per share payable in october twenty twenty one the dividend payment equate the fifty percent a pre pandemic levels and reflects our continued confidence in the strong free cash flow generation and stability of our business model despite the ongoing risks associated with at nineteen or board of directors will continue to closely monitor the economic and public health outlook on a quarterly basis to assess the level
spk_5: all of our quarterly dividend going forward
spk_1: on outrun the call back over to rob thanks michael as previously announced we are on track to complete several signature investments in banff of the twenty twenty one twenty twenty two north american cases i'm in colorado we're completing a two hundred and fifty acre lifts or terrain it grandson and the signature mccoy park area beaver creek or the differentiating a resort hi and family focused experience we are also adding a new for person high been lifted brackenridge to serve the popular peak seven replacing a peru left the keystone with a six percent high speed chairlift and replacing the peach tree left the crested butte with a new three percent fixed gripped left at chemo we're completing a transfer nation on batman including upgrading the quantum leap to replace the green red three percent fixed scriptural left in addition to these investments that will greatly improve upheld capacity are continue to add bath and companywide technological and math enhancement including a bad thing in a number of upgrade to bring a bath and clap approach to how we service are guy a through these channel we are encouraged by the allah for a long term growth in the financial stability we have created the success of our that commitment strategy expansion of our network and our focus on creating an outstanding get experience remain at the forefront of our efforts for that and we are launching an ambitious capital investment plan for calendar year twenty twenty two across all resort to significantly increase live capacity and enhance against experience as we drive increase loyalty from our gas and continuously improve the value proposition for advanced commitment problem these investments are also expected to drive strong financial returns for our shareholders the plan includes the installation of nineteen new or replacement left across fourteen of our resort and a transformational it's manson a keystone as well an additional as while additional product project that will be announced in december twenty twenty one on and march twenty twenty two all the project in the plan are subject to regulatory attorney a keystone we are planning a significant terrain expansion into bergman ball which will create an incremental five hundred and fifty five acres of lift or terrain and provide a significant capacity increase to the resort with a new sick person high been left we are also planning to renovation and expansion of the outposts restaurant with an incremental three hundred indoors feet and seventy five outdoorsy and valley planned to significantly upgrade the capacity and experience for gas in the legendary blackball we plan to replace existing for person high speed game cripple left with a new six person i'd be left and we also plan to install a new for person high speed sundown reflect these investments will provide gas with better circulation and an additional left can move between the backboard in the front side of the mountain with with better access the lines said base area at whistler blackcomb with my to meaningfully increase capacity in circulation from the creekside based area by replacing the six person creekside gondola with a new a person gondola and replacing the existing for person high speed read left with a new sick person high speed left at park fitting replanted significantly enhanced capacity the park city by a area and improved mid mountain capacity in circulation the plan to install our first a person hype be left replacing the current sick person silverleib left we also plan to install a new sick person high speed ego left replacing to existing west to significantly improved the guess experience from the park city based area for the game honors and for our ski school gap a breckenridge we plan to replace existing three percent fixed grab reps ride left with a new foreperson high speed last this upgrade will improve the beginner and ski school experience at the gate with increased out of a circulation capacity along with easier loading and unloading we expect our capital plan for calendar year twenty twenty two will be approximately three hundred and fifteen million dollars to three hundred and twenty five million dollars excluding any real estate related capital or reimbursable and doesn't this is approximately one hundred and fifty nine dollars above are typical annual capital plan based on inflation and previous edition for acquisition and includes approximately twenty million dollars incremental funding to complete the one time capital plan associated with the peak resorts and triple peaks acquisition given our recent financing and strong liquidity the outlook for a business driven by the growth of our bath commitment strategy and the cat benefit in two thousand and twenty two from additional accelerated depreciation and us investment we believe this is the right time for a company can make a significant investment in the guest experience that are was north and expected one time increase and discretionary investment will drive an attractive return for our shareholders additional details associated with our calendar year twenty twenty two capital plant can be found in our capital preferably that was issued to that we also intend to return on capital spending to are typical long term plan and our calendar year twenty twenty three capital plan with the potential for reduce spending given the number projects we would complete and calendar year twenty twenty two we'll be providing further detail on our capital plan in december twenty twenty one as we prepare for the upcoming north american feces and want to acknowledge our team and community that have been affected by the cow were fired around the time and express our deepest appreciation for all of the hard work completed by are team and all of our partners on the ground we are incredibly grateful for the collective efforts of the firefighters from hundred community members and on toys a worked tirelessly to protect our capo north and surrounding community we remain focused on a safety and wellbeing of are employed as we support the recovery effort of the greater lake tahoe area this will be my pick the third and final earning fall and i couldn't be prouder about where the company fans today and how it's additions for the future throughout my time as ceo one of my top priority i've been to identify and prepare a c for the next chapter in the company's growth and success and i'm fully confident that kyrstin is that person as chief marketing officer for more than ten years kyrstin have been responsible for the transformation and success of the hours north editor of in marketing effort and is a primary driver of the companies growth ability and value creation kyrstin is also an incredibly skillful leader and developer of talent and have had an amazing track record of building very strong teams with our company just having navigated the most challenging period and it's history and coming up stronger than when it began this is the right time for me to take a step back and play a different role at bell resort and the right time for key just and to step into the o role to continue driving the strategy and growth of the company i'm very excited to remain fully active and engaged in vail resorts key strategic decisions and activity as executive chairperson and i'm very proud that we are continuing to focus on our strategy of internal leadership development across all all levels of the organization i'm fully confident in the depth of our entire madam team i'm very excited for this next chapter in the company's success story i do want to take a moment to thank all of our employees gas and our broader community for your partnership and support throughout my more than fifteen year that the out it have been an honor to be a part of an incredible group of leaders across all levels the locations of our company when i look across the company and see how much has changed and how much we have a published it reminds me what an incredible journey it has been a true experience of a lifetime
spk_0: at this time kyrstin michael and i would be happy to answer your question operator we are now ready for question
spk_6: if he would like to ask a question please press star why are you touched
spk_0: if your joints speaker phone please make sure you knew function is turned off to wife signal to reach awkward also please limit yourself to wind questioned why father what question at a time star one you would like to signal star one
spk_7: our first question come from shot couch with peak of america hi good afternoon everyone
spk_8: welcome to kyrstin and rod congratulations thanks for everything you've got here it's been a pretty amazing run across sixty three quarters so i'm sick grass and everything
spk_7: thanks on baby was the unable to get just lead off a little bit i would love to hit on you know i did he give a ton of color on did that the past i'd i would love to hear your thoughts on it or just given all of the movement the poll forward you know everything else that's correct going on here he
spk_1: i to give us your broad take on on where transit today but you know outburst think about maybe the pros and cons of you know where yoga what what what might be a get things either accelerator decelerate for the kind of the remainder of the season
spk_2: on a date if you can also just talk a little bit about on on the ancillary spending side order sort your expectations heading into the season as you think about either the full year outlook lucky gave on our in our the guidance shark careful you i'll take the question on topic kara hi sean thank you the out were really encouraged by the trend that were saying shine i think very positive and turns bad or new all i'm particularly strong on new which would certainly indicate that we're bringing new people into the paths program and new people to vail resorts and to be a part of our network ah what the other trends were saying destiny while we were up very strong across all of our local markets destination very strong and then the other dynamic is our trade out which is very strong it is really hard with the dynamics that are coming for the rest of the season the know exactly how this is gonna turn out a bit of fundamentals are a very encouraging the key dynamic that impact the rest of the selling cycle are pulled forward as i mentioned we do know that a portion of our to today are people who pulled forward into this earlier time period i'm also very strong failed as you know it'll last year and it's remaining time period ah that we will be laughing and then
spk_1: kobe dynamics and economic dynamics that can all impact ah what the trend but like for the rest of the year at the core fundamentals of our strategy and the behaviors that we're seeing from our guest associated with that strategy the are very encouraging pictures and muggy want to take the i employ question her thank john i'm
spk_4: yeah i think you know built into our guidance is i yeah it is after to pretty challenging years on the i'm sorry bro given the third constraints lily pad relative to kobe had a return to a a more normal on state of affairs for for the ancillary those south you know i think i think that's really underlying our our overall
spk_1: items assumptions and and that definitely includes what we're assuming across our am sorry businesses and ski school ah food and beverage and retail rental i did you know to the it to the positive for us early on you know have the epic mountain rewards on program in place which i you know we haven't really had a full year
spk_9: yeah of the benefit of that and answer when with the strong passe olds anticipate that being a a benefit to us aren't they answer is i'd i would i would just note that on as we as we talked about in terms of the international ah headwind and and that returnees lower arm as you know international tend to be high many guests
spk_10: and so project lay at whistler blackcomb in the guidance that we provided arm around some of the challenges we expect their that will come through in the ancillary business as well which is included in those numbers
spk_0: great does children one so i will heal the floor appreciated everyone
spk_11: thanks on
spk_1: anarchists question come from been shaken with credit suisse hey how's it going you know lips or one of the investments were attracting our allies tricky least you know that's my interpretation over the years what did you see in the business or what was your thought process to wrap this up to sound like a majority understand is can get a website you know their competitive angle is it may be growth in volume from skier visitation perspective just any color and incremental color be super helpful and rock gotten care and it in a been around forever so i'm not welcome is appropriate but you know we're all excited to thanks think the odds are out of think that when i've begun you know our our our view is that i certainly less or one of the signature you know components of the experience any anyone resorts he and i'm you know we've always tried to be at the forefront of ensuring that our reducing wait time and reducing the left right time i'm an inner we do feel like we are position for continue to grow both he and the right way to support that over the long term i is to make sure that we're continuing to invest ah in our guest experience and so that's always been i think that corp off at the of our company is that you we're lucky to get advance commitment the we're also looking to take the growth that we get in that program and obviously put it back into on awards and we thank lifts are really at bad at a critical pinch pointed that out in terms of really are mocking a much better graphics were reluctant future the and i would say yes it is course it's hard to track and our wine a specific left but we understand that that helps support the value proposition that were providing people that obviously can't support future price growth in our products including our passes i can also support our future growth i'm in bed
spk_12: and again i i you know if you like there's this unique moment coming out of are covered ah with the companies such a strong relative position that it's an opportunity for us to make a statement to our gas network wide right so obviously that this announcement today is about our investing in that you know total network that were offering the partner would go ropey to our
spk_13: yeah he and i we got yeah we're we've reached a point where we can start to do that and move the needle both and got experience and on a dozen
spk_14: guy and accent i appreciate it thank you
spk_0: to thank you
spk_1: and question come from the wrong less que se bnp paribas oh good afternoon thank you very much not person michael for taking my questions or i want to take a class longer term question here but i'm with a twenty percent cut this year which drove obviously pastels up significantly your we're in a stack how do we think about pricing don't fall for the out years can we have vision for the price
spk_2: that with increase subscription model or are you happy with where your tamil your total dressed market and do for see that price and could actually can't take up from here accuracy my pick up yeah thanks for the question as you know we have a long history of taking consistent price increases on our path that that the decision that we made this past year was really a discrete opportunity to do a reset to drive long term gas lifetime value and bring more gas in for the program as we work toward our vision to achieving seventy five percent or more for
spk_1: cent of our revenue in an advanced commitment the wheat the level of taking price increases is certainly a lover that is absolutely still available for us going forward from this new baseline that we've created from this reset very helpful don't like proof and then a question like what for my very good i could you are off maybe michael if i question your and you know i did you talked about passing it feeling initiatives and you can do for said a little bit more interest just on to a for for cute or twenty million dollars or thirty four percent on to your stack with that one one time in nature we're just how do we think about the gene a line going forward for the year yeah i mean i think on you know certainly one of the things that you know we've been focused on over the last are over the last year be you know your and a half has been being as resource efficient as bad as possible certainly on you know one of the areas where ah i'm you know we do continue to invest over time is is in our centralization efforts and so on as we as we try to find a resource efficiency there are movements between on between some of the that cause line items ah but ah but yeah i think that on you know across the overall cost structure ah and you know i think you see that in terms of the the margins that were guide into yeah i think we've taken a very significant tom hi effort and looking for opportunities for resource efficiency i'm really taken a lot of the lessons that on that we've learned over the course of on kobe and apply knows that the places where we feel like we can get savings that being said i would just call out that you know we're also as we've been out previously making some very significant investments i'm in our in our our frontline wages arm which is an area where we continue to invest specifically to the dna and
spk_0: i'm in queue for what you will see is that on the thirteen million dollar are litigation ah i'm are reserve is is in their arm and so that's probably the biggest driver about variation
spk_15: very helpful thank you very much and our next question will come from chris rock with deutscher bake
spk_16: hey i get half nude everyone and grads to robin kierston on that he rolls
spk_1: i'm was hoping to maybe triangulate lift lift pass revenue a little bit i understand that deal with his lot of the twenty nineteen but was wondering if there's a way to kind of god if you didn't sell another with lift ticket or year where you might be now versus where you were in twenty nine teen if that that question
spk_15: makes any sense ah he i guess what your you know i have a maybe what michael chime in on it i think the would arrive at the not providing specific guidance on on you know the break out of left revenue but michael and up you want to give any color on that obviously we're making progress on the phone
spk_17: charlie crist can you repeat that for me i'm i tried holy cow at it year to try to get a sense i mean obviously there there's more revenue in the books than there was in twenty nineteen lift ticket revenue arm try to get a sense for what percentage of lift of ultimate lift ticket revenue realized in fiscal my team was kind of on the book
spk_4: at this point it
spk_15: just now that you're you're saying you're same in terms of our past sales cadence and yeah point yeah yeah we're we don't we don't we we actually are we don't disclose that ah as the third kind of the pacing of you know kind of that the percent of on of lift revenue on the by that is something that we disclose many years ago by are we actually have stopped doing that on so and on course i'm can provide color on that
spk_1: okay ah fair enough that switch gears a little bit on on the capital allocation obviously good good to see dividend coming back yeah i guess the question being yeah you're you're probably gonna make as much even saw this coming years he did or more than you did in nineteen your resetting dividend to half and then you know nothing yet i guess on on share repurchase so is is there just a i'm thinking that yourself a bunch cash was on the balance sheets are just a thinking that let's be conservative and see how this plays out or just something else that has to happen before you get full david and and and maybe some share buybacks coming in yeah and i've highlighted a coke yasser arm you know i would say that are or cowboy allocation priorities remain you know very much the same as they have been overtime which is on reinvesting in the business first i'm you know surly the acquisition opportunities ah i'm ah that we continue to pursue and and then returning enough just apple the shareholders and i think you know what when we looked at this you know holistically certainly we feel like i'm you know the increased you know have one time capital plan that rob went through odd the details of you know is is a pretty significant application opportunity for us at this moment to really improve as as he was and the yeah experience ah i'm ah across the network and i think yeah we we are coming out of homemade with an outlook based on the pastels the kyrstin went through certainly what we see is the business outlook overall arm and a balance sheet that we have as as an opportunity to head into the season ah yeah yeah announcing a reason are we a reinstatement of the dividends as to the level of the dividend yeah i think we feel like this is an appropriate level on to come back out with a dividend arm as i mentioned you know the board well well absolutely continue to look at the right level for the dividend on yeah usually we make those i have his or
spk_15: berkeley made those decisions in march arms or were coming out ahead of the season with this given the time in keys on and so that's you know that's largely where we stand on that i dag on you know as it relates to share repurchases you know you're seeing historically we've we've largely use dividends as on the primary means of of
spk_0: regular capital are return to shareholders and i think you know plan to continue that i think as it relates to repurchase as we continue to take a more opportunistic stamps on that
spk_18: okay for the that color thanks guys
spk_1: i do and
spk_19: patrick shows with
spk_20: great a thank you
spk_1: get mean everyone or afternoon which causes of last quarter you had talked about raising your starting wages hourly wage to fifteen dollars an hour do think that at that point that is a not to fill and the positions guy the we think it was the get a pretty significant move for many of or it ah yeah i think the bob bulk of our resort got a you know close to a three dollar increase per hour thorough we thought we think it's a major statement ah at their critical investment in our employees and ensuring that we get the right power and sapping that that obviously that is you know i'm broadly across the u is obviously a lot of challenges around staffing and so you know whether those to tango ultimately be enough it's hard to say but you know we feel good about where we sit right now in terms of our high
spk_21: hiring process going into next season it's so early
spk_22: but you know we feel like would certainly without that investment we think we would have struggled to a much greater degree i and so you know we go i just put that in an opportunity to get to the other side of it but given the rapidly changing dynamics in the hiring market it's hard to say for sure exactly how to play out and i do happen
spk_23: you know no doubt that staffing will continue to be a challenge to the season of it was in many previous seasons arm and i did you know there are other factors in addition to wages like affordable housing it's critical in our company you know that front on that as well but but at the moment yeah we feel good about how we're going into the season on i in terms of ensuring that we can provide the right experience to hang up
spk_1: okay thank you it
spk_24: thank you and
spk_23: cats with jeffries hi afternoon
spk_1: everyone rug rats and great tenure and
spk_24: or for them into a than the last name well
spk_1: thanks to your best i was asked about the contracts or program you you're often done our homework around these kinds of large scale investments and rob so i wonder if they will be further back up a detail the you can share around the decision on for size and scale of it
spk_24: the survey were to occur you know anything to that end from your inner satisfaction scores and you know how much and were and center yeah i you know out in the i think the great opportunity that we have across the most of our regards to throwing all of our largest or it is with our epic max ah time application that provides people real time ah you know left lying wait times we actually have inside out to the way a time that every single one of the left ah apple's resorting of cross the entire year i'm and so we bring that i into the max as we started and say okay i you know where do we have the the longest wait times where can reduce that we obviously of course i'm looking energy exports which is which
spk_25: ask questions about right left and their experience on that and we also have all the anecdotal evidence up the you know that each my resorts have and all that you know all of our leaders have across as as our kids that we can't take all that together and identify where do we think we cannot the negative impact on additionally in addition to that brothel layering on you know where our power
spk_26: householders like to ski and one of the most important resorts the path of those men are looking at a network of the hall on and so we're kind of combining got information to come up with a a prioritized blast and no surprise even on her our water left this is really you know the largest scale program i think anybody ever undertaken i in the industry
spk_1: i'm yeah there are a lot of less garbage or he that are still out there that we haven't done so and you know we've included what we really consider to be the highest are why top priority for this why don't we gather them together to really make a statement to to our gas about the connected that we have to dig up experience i end up really invest in the network i'm you know that that we really see which is that are resorts individually or completely unique a may provide a unique experience but of course we like to come together as a team and figure out like where's the most important places rotten bastard make the overall experience across a little it's about that today you should and just as to eat you have the information a means of measuring two primary competitors and right now
spk_24: wait times look like or what their satisfaction scores
spk_27: have some
spk_0: no we we interviewed down
spk_28: so you know a lot of that he one of the benefits that we added porn remember that you know we have thirty seven resort thirty four resorts in north america so we get to look at detailed information across all of these of your it's who are right in many ways competitor with each other i am so that up
spk_1: tremendous amount of detail or out how we make the decision because we can compare and contrast like that be the same information and platform i'm a separate certainly on left but also on every other aspect of our business it's one of the the real opportunities that we see for the future is that we can take the same outlet acts that we've been using to drive incredibly successfully our marketing our path and know a we can do to drive our operation i'm and even i think last year was a great opportunity for that because we could go to our resort leader the say hey we're looking at information across you know ten different resort that a similar construct attended less that are similar and hate them have you are doing at some of your doing why we're seeing the results and on a naked my fave me i mean day like that the resort leaders themselves yet together to really do that so we don't get the information from our competitors but it though he got enough we think inside to do an amazing job of kind of best practicing oliver operation
spk_2: listen sincerely for it yeah thank them and question come from jeff
spk_1: i play never on thanks for taking my questions aired i first off i and i do and i got my gears i didn't take the grab than which tremendously successful danny rather than a well earned transition to chairmanship and the congratulations the it's okay and look forward to working together more closely and a week or so just
spk_28: just couple questions here air in i want to start on pat sales
spk_1: how are you guys big about the impact on the healthy consumer and the results are poured it does far just with the savings stimulus folks making up for last vacation flat feet and how much as this playing a role in the growth versus the more attractively price product in i do you reckon i did get the party dynamic garbage any thoughts here would be helpful her pearson you and you know the talker yeah i think it's hard can't parse out as you highlighted jeff exactly what all the different dynamic the i certainly am i encourage by so many different factors moving in our favor and turns out a strategy that we put in place on the twenty percent price reduction and what we had intended and i think to really important dynamic that are particularly encouraging his new and people trading up so bringing new people into the program and then trade out meaning people are taking the discount and spending the desk count on a higher level past or more dave how much that's being impacted yeah and the twenty percent price reduction is it hard to know and parse out but i certainly think that that twenty percent price reduction as well as the incredible
spk_29: network of reports that we have and the investments that we've made and for those resorts in the guest experience ah caf to be that the primary driver as the our business impact
spk_28: okay great that's that's helpful and from i follow up us open a drill into the the guidance here little bit he provided contacts the impact back to the closures and australia during the first quarter the impact the or to be an international business largely at whistler it looks like otherwise guidance assumes the fairly normal operating environment is it is
spk_30: air to take the seventy five to eight thirty five million you doctor twenty seven in the forty one plus two impacts and look at that as a sort of non cold it impacted normalized even a baseline for for moving forward or are there other put the takes get better
spk_0: yeah michael manteca yes or arm thanks to the question job yeah i think the arm i think that the
spk_1: right so we we set the guidance where we obviously expect there will come out and then yes did call out those three specific items on the to the mansion whistler blackcomb during you know centrally the winter season coming up prime primarily as a result of the the international headwinds that we anticipate basing i'm obviously as as folks have followed the bomb you know the challenges we face routed to the lockdowns and resort closures in australia arm as you noted of about and expected forty one million dollars justin que one there and then an expectation on that there will be some headwinds as well and that the group and conference side which wealth largely
spk_31: hit the lodging business on again difficult to quantify that's would not put a number on that so yeah i an outside of that expecting a normal years so i think that it it is fair to mom ah assume that i'm in the absence of those changes the baseline would have been on at those higher levels i'm a day
spk_2: important to note that the arm though the comparison points that we are providing for both whistler arm and australia or relative to getting back to actualize from the last you know kind a bowl season that we had so arm for australia that would have been the first corner of twenty twenty and for whistler the winter season and twenty nine keen arm and not as you mean anything beyond that
spk_32: okay great both out for an encouraging thanks very much and congrats again rod and it thanks
spk_1: thank you and we'll go to brand on tour with jp morgan good at everyone thanks for taking my questions and congrats to rob and kierston
spk_4: the question on the past dynamics for this fall upcoming season and i think i understand the added to the mention which is the pull forward obviously top cop last year or is there any reason to expect a difference in next for this upcoming fall season in terms of low frequency verse high frequency year over year
spk_1: you're sitting round pick up
spk_32: yeah thanks brat ah yeah we generally see different dynamic in the spring versus the fall as we get closer to the on the season starting we tend to see more new vs renew as we tend to see people coming and kill our epic day pass
spk_0: product as that the a call for coming into the program so there is that there is a different dynamic that happens in spring versus fall definitely
spk_33: okay thanks for that and just as a follow up for it maybe from michael like that when you think about guidance and i know you're looking for something like a normal year for north america you guys just put out a release about called the protocols and requiring masks affectivities indoors i guess what gives you confidence that that's not going to impact consumer stand in in as be and other ancillary and indoors but then again obviously consumers are spending a lot right now so maybe it's a wash how do you think about those two dynamics yeah i think that on you know clearly we're going to be very focused on continuing to i ensure that the health and safety of both our gas and our employees which was really about the announcement on you know that we put out earlier this week i think that you know the primary difference between last year and this year ah
spk_1: you know is really about capacity arm and last year with the various toby protocols that we put in place there was ah ya quite a significant reduction in capacity and that that really hit as you saw on our numbers on our food and beverage business where we had to you know limit seats and outlets and things like that is laws and ski the swap arm where we had are a number of limitations relative to what we can serve in so in the in their guidance this year there's an assumption that that those capacity increases will be returned the air that capacity will be returned to normal ah i'm you know obviously as you said there's putting takes as dad you know kind of bomb you know where consumer demand his arm you know any potential impacts are covered nineteen but at this point we are planning to have full capacity out or resorts armed with the with the arm back to nice requirements that we did outline on which should not impact capacity at this time so that's ah that's the approach so we took too on planning for this year okay best of luck us thank you
spk_33: and our question come from paul with worry capital thanks so much know rob congrats on are incredible run them through cigarettes on a new rule am i was wondering if you could give some color on and this like might be for michael given no earlier questions how the the international and conference gas or resort he beat up her visit sort of margin profile compares
spk_4: two as
spk_33: does standard definition domestic test or out or just how they compare to each other so that there are some comparison to twenty nineteen of a baseline
spk_2: sure i'm you know in and and we don't provide kind of specifics by in of gas segment by by to rationally on you know i think a couple things on the international side i think first and foremost on there are differences in our international mix by resort arm and so as we talked about for many years actually going back to the a time when we did the west or the off on one of the benefits of of was or is that it is a significant international destination and and has a bigger ah on mix of international guess on in normal periods than most of our us resorts and so as a result of that that's why we called out the disproportionate impact on our whistler blackcomb ah yeah i think the as it relates to their spending and i think the you know broad strokes the the international guess will likely tend to stay longer i'm so have more days he'd and on in many cases will be a higher spending gas particularly away the relates to and sorry businesses and and so we've certainly you know built that assumption into our guy ensign and of course told that out specific to the impact on at whistler ah as it relates to the conference in grew business arm you know like many lodging businesses that the important part ah i'm ah of the kind of hotel and conference center side of the business that being said you're one of the ban of it's that we have is that we have a next about property management businesses as well as owned and operated properties and so it's certainly an important piece of arm of the lodging profile for us on additionally it as you would imagine on conferencing group can drive quite a bit of food and beverage ah are spending in particular with the which and car
spk_34: france's and the like and south on you know that that's really what we built into on our expectations for the lodging business which is i ah you know a slower recovery they're as we're seeing more broadly and these are trans you're not a small company bad are really across the sector promote were saying
spk_2: really appreciate the collar and then of the sort of a wishlist follow pure i just knew you mention the am no trade up from component of the the epic boost am
spk_33: and the new program
spk_0: participants out of the new program participants are there any color you can give whether from survey data or otherwise around
spk_1: if there's a proportion that new to ski vs coming from competitors but already a gear thanks to the question will i can't give any color on his their new to skiing we do look at new and a couple a different way there are lap pass holders meeting people who had a path
spk_35: years ago what you years ago but last year and bringing them back in to the portfolio their laps paid which would be someone who has shown up at one of our resort town a lift ticket and the past
spk_2: but not had a pass and were bringing them into a program and then there's a brand now and as you know we have a very robust database of gas and guess behavior and we can look at waffle a brand new showing up in our database for the first time all three of those subs segments of new outperforming incredibly strong meaning bringing people back into a program converting lapsed lift ticket people into a pass and then brand new people that we have not seen on a lift ticket or a pass ever all three of us are actually outperforming very strong i you know
spk_1: on not tell you at this point i mean some point in the future maybe we will do research among that new group to our database to understand better what their behavior was a but at this point in time and this phase of the selling cycle we don't know how many as though it came from a competitive path or
spk_2: and it just took up the sports team thanks so much pressure and question will come from friday and sunday with william the hey thanks you take my question and and i'm at this year's we should drop the cursed a match i'm a fan for at that i'm pulled questionnaire am i think of the with the cursed person the idea was that detained and past hi fi would not have an overall impact on tax revenue and total revenue
spk_36: give now to take to capulets cat version which is talked about hire new rates to currently your and guess how we feel it a grocery the first two pretty traits here do you feel fetuses as a little outcome for this year because it it's it's hard for the know i think how you're shifting onto to pass
spk_0: was such a criminal
spk_1: god thank you for the question i i am what i would say is that our sales have exceeded our original expectation
spk_0: and are generating more incremental revenue that we had expected and those results are factored into our guidance
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