Vail Resorts, Inc.

You're holding for the Vell Resorts at this time. There are still many additional participants. The conference should begin shortly. We do thank you for your patience. Please continue to stand by. Please stand by. Good day and welcome to the Vell Resorts third quarter earnings call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Lynch, Chief Executive Officer. Please go ahead.

Thank you. Good afternoon, everyone. Welcome to our fiscal 2022 third quarter 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 9, 2022, 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, 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.vailresorts.com. Let's turn to our fiscal 2022 third quarter results. We are pleased with our overall results for the quarter and for the 2021-2022 North American ski season. As expected, Results for the quarter significantly outperformed results from the prior year, primarily due to the greater impact of COVID-19 and related limitations and restrictions on results in the prior year period. This year, challenging early season conditions persisted through the holiday period, but our results were strong from January through the remainder of the season. Our strong season paths sales heading into the 2021-2022 season are the foundation of our advanced commitment strategy, creating stability for the company through variable weather and other challenges. We had particularly strong destination visitation this year, which was further supported by lift ticket sales at our Colorado and Utah resorts that exceeded our expectations through the spring. Our recent results at Whistler Blackcomb were also stronger than expected due to the easing of travel restrictions in Canada in late February. Recent performance at our eastern U.S. ski areas was in line with our expectations, while our Tahoe resorts were impacted by challenging spring conditions, resulting in performance below our expectations. Throughout the season, our ancillary businesses continued to be capacity constrained by staffing, and in the case of dining, by operational restrictions associated with COVID-19. Overall, our results throughout the 2021-2022 North American ski season highlight the stability resulting from our advanced commitment past products in a season with challenging early season conditions, staffing challenges, and COVID-19 impacts, and demonstrate our strong operational execution following the holiday period through the end of the season. Now I would like to turn the call over to Michael to further discuss our financial results, our fiscal 2022 outlook, and the Andermatt transaction.

Thanks, Kirsten, and good afternoon, everyone. As Kirsten mentioned, we are pleased with our overall results for the quarter and saw continued strength and performance from January through the remainder of the ski season. Net income attributable to Vail Resorts was $372.6 million or $9.16 per diluted share for the third quarter of fiscal 2022 compared to net income attributable to Vail Resorts of $274.6 million or $6.72 per diluted share in the prior year. Resort reported EBITDA was $610.5 million in the third quarter of fiscal 2022 an increase of $148.3 million, or 32.1% compared to the same period in the prior year. This increase is primarily due to the greater impact of COVID-19 and related limitations and restrictions on results in the prior year. Now turning to our outlook for fiscal 2022. Based on the strong finish to the season, particularly driven by destination guest visitation and lift ticket sales in Colorado, Utah, and Whistler-Blackcomb that exceeded our expectations, we now expect net income attributable to Vail Resorts for fiscal 2022 to be between $314 million and $348 million, and Resort Reported EBITDA for fiscal 2022 to be between $828 million and $842 million. The guidance range includes an estimated $16 million of resort-reported EBITDA for the Seven Springs Resorts for the period from the transaction closing on December 31st, 2021 to the end of the fiscal year, partially offset by $7 million of acquisition and integration-related expenses associated with the Seven Springs Resorts transaction and the expected acquisition of Andermatt-Sedroon. Our balance sheet and liquidity position remain strong, Our total cash and revolver availability as of April 30, 2022, was approximately $2 billion, with $1.4 billion of cash on hand, $417 million of U.S. revolver availability under the Vale Holdings Credit Agreement, and $212 million of revolver availability under the Whistler Credit Agreement. As of April 30, 2022, our net debt was 1.7 times trailing 12 months total reported EBITDA. The company declared a quarterly cash dividend of $1.91 per share of Bail Resorts common stock that will be payable on July 12, 2022 to shareholders of record as of June 27, 2022. Additionally, from the beginning of the company's third quarter of fiscal 2022 through June 8, 2022, the company repurchased 303,143 shares at an average price of $246.33 for a total of approximately $74.7 million. We intend to maintain an opportunistic approach to share repurchases. We will continue to be disciplined stewards of our capital, and we remain committed to continuous investment in our people, strategic high return capital projects, strategic acquisition opportunities, and returning capital to our shareholders through our quarterly dividend and share repurchase programs. We were excited to share our announcement in March that we entered into an agreement to purchase a majority stake in Andermatt Cedroon in Switzerland, marking the company's first strategic investment in and opportunity to operate a ski resort in Europe. Andermatt Cedroon is a renowned destination ski resort in central Switzerland, located less than 90 minutes from Zurich, Lucerne, and Lugano, and approximately two hours from Milan, Italy. Upon the closing of the acquisition, the company will acquire a 55% ownership stake in Andermatt Cedroon, which controls and operates all of the resort's mountain and ski-related assets, including lifts, most of the restaurants, and a ski school operation. Our partners, Andermatt Swiss Alps, or ASA, will retain a 40% ownership stake in Andermatt Cedroon, with a group of existing shareholders comprising the remaining 5% ownership. Importantly, All of Vail Resort's 149 million Swiss franc investment will be reinvested in the resort and the base area. 110 million Swiss francs will be invested into Andermopp Sudrun for capital investments to enhance the guest experience on the mountain. And 39 million Swiss francs will be paid to ASA and fully reinvested into the real estate developments in the base area. Vail Resorts will assume operating and marketing responsibility for Andermatt-Cedroon, with ASA and local stakeholders continuing as key members of the Board of Directors. The transaction is expected to close prior to the 2022-2023 ski season, subject to certain third-party consents. Vail Resorts plans to include unlimited and unrestricted access to Andermatt-Cedroon on the 2022-2023 Epic Pass. EPIC day pass holders with all resort access will be able to use any of their days at Andermatt-Sedroon, and EPIC local pass holders will receive five days of unrestricted access to the resort. All pass access is subject to the timing of the transaction closing. I'll now turn the call back over to Kirsten.