Vail Resorts (NYSE:MTN) has blamed a mild Australian winter and lower demand for destination mountain travel in North America for a weak fourth-quarter performance.
The Broomfield, Colorado-based ski resort company said below-average snowfall and snowmaking temperatures limited terrain availability during the Australian winter season.
CEO Kirsten Lynch also noted a shift in summer travel behavior in North America associated with the wider variety of vacation offerings available following various travel restrictions in the prior two years, and weather-related operational disruptions.
Total net revenue for the quarter to July 31, 2023, rose 1% to $269.8 million, falling short of the $281.9 million consensus estimate of analysts surveyed by Zacks Investment Research.
Its loss per share widened to $3.35 per share, from a $2.70 loss a year earlier, and worse than the consensus estimate of a $3.24 loss, according to Zacks.
For the full 2023 financial year, net revenue rose 14% to $2.89 billion, while diluted earnings per share declined 21% to $6.74.
"Given the significant weather-related challenges this past season, we are pleased with our overall results for the year, with strong growth in 2022/2023 North American ski season visitation and spending compared to the prior year, further supported by the stability created by our advance commitment products,” Lynch said.
“The return to normal staffing levels enabled our mountain resorts to deliver a strong guest experience resulting in a significant improvement in guest satisfaction scores, which exceeded pre-COVID levels at our destination mountain resorts.”
The company said it expects meaningful growth for fiscal 2024 relative to fiscal 2023 with a strong Resort underlying earnings (EBITDA) margin.
It expects net income of between $316 million and $394 million and Resort EBITDA of $912 million to $968 million, with an EBITDA margin of roughly 31% using the midpoint of the guidance range.
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