Item 5. Market for Registrant’s Common Equity
ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
Market Information and Dividend Policy
Our common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “MTN.” As of September 21, 2020, 40,189,225 shares of common stock were outstanding, held by approximately 265 holders of record.
The following table sets forth information on the high and low sales prices of our common stock on the NYSE and the quarterly cash dividends declared per share of common stock for each quarterly period for the two most recently completed fiscal years.
Quarter Ended
Cash
Dividends
Declared
Per Share
Market Price Per Share
High
Low
Fiscal Year 2020
July 31, 2020
$
218.00
$
154.19
$
—
April 30, 2020
$
251.86
$
125.00
$
1.76
January 31, 2020
$
255.37
$
226.14
$
1.76
October 31, 2019
$
248.99
$
221.69
$
1.76
Fiscal Year 2019
July 31, 2019
$
249.67
$
209.78
$
1.76
April 30, 2019
$
229.09
$
188.31
$
1.76
January 31, 2019
$
286.40
$
177.92
$
1.47
October 31, 2018
$
302.76
$
228.07
$
1.47
In fiscal 2011, our Board of Directors approved the commencement of a regular quarterly cash dividend on our common stock, subject to quarterly declaration, which has typically been increased on an annual basis. We announced on April 1, 2020 that we would be suspending the declaration of our quarterly dividend for at least the next two fiscal quarters in response to the impacts of the COVID-19 pandemic. Additionally, pursuant to the Third Amendment of the Vail Holdings Credit Agreement (as defined below), we are prohibited from paying any dividends during the Financial Covenants Temporary Waiver Period (as defined below) unless (i) no default or potential default exists under the Vail Holdings Credit Agreement and (ii) the Company has liquidity (as defined below) of at least $400.0 million, and the aggregate amount of dividends paid and share repurchases made by the Company during the Financial Covenants Temporary Waiver Period may not exceed $38.2 million in any fiscal quarter. The amount, if any, of dividends to be paid in the future will depend on our available cash on hand, anticipated cash needs, overall financial condition, restrictions contained in our Vail Holdings Credit Agreement, future prospects for earnings and cash flows, as well as other factors considered relevant by our Board of Directors.
Repurchase of Equity Securities
The Company did not repurchase any shares of common stock during the fourth quarter of the year ended July 31, 2020 (“Fiscal 2020”). The share repurchase program is conducted under authorizations made from time to time by our Board of Directors. On March 9, 2006, the Company’s Board of Directors approved a share repurchase program, authorizing the Company to repurchase up to 3,000,000 shares of common stock. On July 16, 2008, the Company’s Board of Directors increased the authorization by an additional 3,000,000 shares, and on December 4, 2015, the Company’s Board of Directors increased the authorization by an additional 1,500,000 shares for a total authorization to repurchase shares of up to 7,500,000 shares. Since inception of this stock repurchase program through July 31, 2020, the Company has repurchased 6,161,141 shares at a cost of approximately $404.4 million . As of July 31, 2020, 1,338,859 shares remained available to repurchase under the existing repurchase authorization. Repurchases under these authorizations may be made from time to time at prevailing prices as permitted by applicable laws, and subject to market conditions, limitations under the April 2020 amendment to our Vail Holdings Credit Agreement and other factors. These authorizations have no expiration date.
Performance Graph
The total return graph below is presented for the period from the beginning of our fiscal year ended July 31, 2016 through the end of Fiscal 2020. The comparison assumes that $100 was invested at the beginning of the period in our common stock (“MTN”),
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The Russell 2000 Stock Index, The Standard & Poor’s 500 Stock Index and the Dow Jones U.S. Travel and Leisure Stock Index, with dividends reinvested where applicable. We include the Dow Jones U.S. Travel and Leisure Index as we believe we compete in the travel and leisure industry.
The performance graph is not deemed filed with the Securities and Exchange Commission (“SEC”) and is not to be incorporated by reference into any of our filings under the Securities Act of 1933 or the Exchange Act, unless such filings specifically incorporate the performance graph by reference therein.
ITEM 6.
SELECTED FINANCIAL DATA.
The following table presents selected historical consolidated financial data derived from our Consolidated Financial Statements for the periods indicated. The financial data for our fiscal years ended and as of July 31, 2016 through July 31, 2020 should be read in conjunction with those Consolidated Financial Statements, related notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations. The table presented below is unaudited. The data presented below is in thousands, except for diluted net income per share attributable to Vail Resorts, Inc., cash dividends declared per share, effective ticket price (“ETP”), average daily rate (“ADR”) and revenue per available room (“RevPAR”) amounts.
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Year Ended July 31,
2020 (1) (2)
2019 (1)
2018 (1)
2017 (1)
2016 (1)
Statement of Operations Data:
Total net revenue
$
1,963,704
$
2,271,575
$
2,011,553
$
1,907,218
$
1,601,286
Total segment operating expense
1,466,380
1,571,738
1,396,023
1,322,841
1,152,496
Other operating expense, net
(273,935
)
(223,568
)
(206,713
)
(205,121
)
(165,811
)
Other expense, net
(106,956
)
(77,304
)
(68,725
)
(30,807
)
(40,360
)
Income before (provision) benefit from income taxes
$
116,433
$
398,965
$
340,092
$
348,449
$
242,619
Net Income and Dividends:
Net income (3)
$
109,055
$
323,493
$
401,230
$
231,718
$
149,454
Net income attributable to Vail Resorts, Inc. (3)
$
98,833
$
301,163
$
379,898
$
210,553
$
149,754
Diluted net income per share attributable to Vail Resorts, Inc. (3)
$
2.42
$
7.32
$
9.13
$
5.22
$
4.01
Cash dividends declared per share
$
5.28
$
6.46
$
5.046
$
3.726
$
2.865
Other Segment Data:
Mountain
Skier visits (4)
13,483
14,998
12,345
12,047
10,032
ETP (5)
$
67.72
$
68.89
$
71.31
$
67.93
$
65.59
Lodging
ADR (6)
$
310.76
$
300.47
$
300.90
$
302.80
$
280.38
RevPAR (7)
$
90.37
$
121.81
$
131.08
$
127.95
$
122.61
Real Estate
Real estate held for sale and investment (8)
$
96,844
$
101,021
$
99,385
$
103,405
$
111,088
Other Balance Sheet Data:
Cash and cash equivalents (9)
$
390,980
$
108,850
$
178,145
$
117,389
$
67,897
Total assets (10)
$
5,244,232
$
4,426,077
$
4,064,984
$
4,110,718
$
2,482,018
Long-term debt, net (including long-term debt due within one year)
$
2,450,799
$
1,576,260
$
1,272,732
$
1,272,421
$
700,263
Net Debt (11)
$
2,059,819
$
1,467,410
$
1,094,587
$
1,155,032
$
632,366
Total Vail Resorts, Inc. stockholders’ equity
$
1,316,742
$
1,500,627
$
1,589,434
$
1,571,156
$
874,540
(1) We have completed several acquisitions of destination mountain resorts and regional ski areas during the past five years, which impacts comparability between years, including Peak Resorts (acquired September 2019); Falls Creek and Hotham (acquired April 2019); Crested Butte, Mount Sunapee and Okemo (acquired September 2018); Stevens Pass (acquired August 2018); Stowe (acquired June 2017); and Whistler Blackcomb (acquired October 2016).
(2) Financial results for the year ended July 31, 2020 were impacted by several one-time adjustments including (i) the deferral of $120.9 million of deferred season pass revenue, as well as $2.9 million of related deferred costs, that would have been recognized during the year ended July 31, 2020 but were deferred as a result of credits that were offered to customers who had purchased 2019/2020 North American pass products and who will purchase 2020/2021 North American pass products, and (ii) an asset impairment of approximately $28.4 million as a result of the effects of the COVID-19 pandemic on our Colorado resort ground transportation company.
(3) Net income, net income attributable to Vail Resorts, Inc. and diluted net income per share attributable to Vail Resorts, Inc. were positively impacted during the year ended July 31, 2018 as a result of one-time tax benefits related to comprehensive U.S. tax legislation, which also resulted in a decreased federal U.S. corporate tax rate prospectively from January 1, 2018, and excess tax benefits from employee share award exercises, as discussed subsequently in this document.
(4) A skier visit represents a person purchasing a ticket or utilizing a pass to access a destination mountain resort or regional ski area for any part of one day during a winter ski season and includes complimentary access.
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(5) ETP is calculated by dividing lift revenue by total skier visits during the respective periods.
(6) ADR is calculated by dividing total room revenue (includes both owned room and managed condominium unit revenue) by the number of occupied rooms during the respective periods.
(7) RevPAR is calculated by dividing total room revenue (includes both owned room and managed condominium unit revenue) by the number of rooms that are available to guests during the respective periods.
(8) Real estate held for sale and investment includes all land, development costs and other improvements associated with real estate held for sale and investment.
(9) Cash and cash equivalents exclude restricted cash.
(10) We adopted a new lease accounting standard on August 1, 2019 using a modified retrospective transition method, in which reporting periods beginning on August 1, 2019 are presented under the new standard, while prior periods were not adjusted and continue to be reported in accordance with the previously applicable accounting guidance. As a result of adopting the new lease accounting standard, the Company recorded $221.8 million of right-of-use (“ROU”) assets and $254.2 million of related total operating lease liabilities in the Consolidated Balance Sheet as of August 1, 2019.
(11) Net Debt, a non-GAAP financial measure, is defined as long-term debt, net plus long-term debt due within one year less cash and cash equivalents. Refer to the end of the Results of Operations section of Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a reconciliation of long-term debt, net to Net Debt.
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