Vail stock reports higher than expected earnings

http://finance.yahoo.com/news/vail-resorts-reports-fiscal-2017-114500728.html

up 24% since I bought it

this report was thru Jan 31 and the next quarter will likely be even better.  Stowe should drive some strong Epic pass sales thru the spring as well. WB doing even better than they expected when buying it.

capex plans included in the later section

The Company expects to invest approximately $103 million in its calendar year 2017 capital plan, excluding anticipated investments at Whistler Blackcomb, capital expenditures for U.S. summer related activities and one-time integration capital expenditures at Whistler Blackcomb. The plan includes approximately $65 million of maintenance capital expenditures and a number of high-impact, high ROI discretionary investments. Commenting on the capital plan, Katz said, "At Vail Mountain, we will continue to improve lift capacity at one of the resort's busiest chairlifts by upgrading the Northwoods high speed four person chair (#11) to a new high speed six person chairlift. At Breckenridge, we will be upgrading the Peak 10 Falcon Chair from a four person high speed chair to a six person high speed chair, allowing more guests to experience some of the best intermediate and advanced terrain on the mountain. At Keystone, we will be investing significant capital to continue to enhance the experience at this outstanding family focused resort. We will be upgrading the four person Montezuma chair to a six person high speed chair to improve circulation on the front side of the mountain, and we will be renovating and expanding Labonte's restaurant by 150 indoor seats to increase mountain dining capacity at the fourth most visited resort in the U.S. At Beaver Creek, we will be upgrading the fixed grip two person Drink of Water chair (#5) to a four person high speed chair, increasing the capacity for important beginner and intermediate terrain and, upon completion, all primary chairlifts on Beaver Creek will be high speed. Our capital plan also includes the second phase of a two-year process to revamp our primary websites to a single 'responsive' desktop/mobile platform which will be integrated with our data-based and personalized marketing technology and the first phase of a three year plan to completely revamp and modernize RPOS, the primary software platform for all of our resort operations."

The Company also plans to invest approximately $6 million in calendar year 2017 for Epic Discovery summer activities. This capital will be focused on activity construction at Breckenridge in conjunction with the official launch of Epic Discovery at the resort this summer with more modest spending at Vail and Heavenly.

At Whistler Blackcomb, the Company plans to invest approximately C$23 million (US$17 million) in calendar year 2017 for maintenance and discretionary projects. The plan includes key summer investments for the resort with the expansion of the bike park into the Creekside area, the construction of a signature suspension bridge at the top of Whistler Mountain and other summer amenities that support the already robust summer visitation at the resort. These investments are the first capital projects associated with the Renaissance plan following the renewal of the Master Development Agreements. The Company anticipates that additional spending related to the Renaissance plan will commence in calendar year 2018 and additional details will be provided as the timing of the projects is refined.

Additionally, the Company plans to invest approximately $17 million in capital during calendar year 2017 for the Whistler Blackcomb integration. These investments will allow us to fully integrate Whistler Blackcomb's systems, marketing and operations, including hardware at the resort, to achieve our anticipated synergies and create the streamlined, centralized approach that is consistent across our network for guests and employees.

Stowe Mountain Resort Acquisition

As previously announced on February 21, 2017, the Company entered into an agreement to acquire the mountain operations of Stowe Mountain Resort in Stowe, Vermont from Mt. Mansfield Company, Inc., a wholly owned subsidiary of American International Group, Inc., for a cash purchase price of $50 million, subject to certain adjustments. At closing, the purchase price will be adjusted for certain agreed upon terms, including a reduction (or increase) in the purchase price by the amount that the resort's EBITDA exceeds capital expenditures for the period from November 1, 2016 through closing of the acquisition. Stowe Mountain Resort is expected to generate incremental annual EBITDA in excess of $5 million in Vail Resorts' fiscal year ending July 31, 2018. The transaction is subject to Vermont administrative review. The Company expects the acquisition to close in late spring.

Whistler Blackcomb Master Development Agreements

As previously announced on February 24, 2017, Whistler Blackcomb's Master Development Agreements with the Province of British Columbia have been renewed for a 60-year term and the associated Master Plans have also been approved by the Province.

That's an unbelievable amount of money spent on a business/sport that is directly threatened by recent climate patterns.

raisingarizona wrote

That's an unbelievable amount of money spent on a business/sport that is directly threatened by recent climate patterns.

How about a sport that only the very comfortable in America and the world can afford to participate in.

Vail will be buying Smuggs within the next 5 years for sure. Connecting the two is a no brainer and will create the bisggest ski experience in the east.

Benny Profane wrote

raisingarizona wrote

That's an unbelievable amount of money spent on a business/sport that is directly threatened by recent climate patterns.

How about a sport that only the very comfortable in America and the world can afford to participate in.

Not completely true. There are still plenty of local run ski areas for the regular folks. My family being proof that you don't have to be rich to be skiing. You just have to really want it.

You are both right.  It is a sport that only the very comfortable can PARTICIPATE in.  But, you also have to really want it to do more than just participate.  The determined and addicted will find a way.  Wealth won't be a factor if you want it bad enough.

raisingarizona wrote

Benny Profane wrote

raisingarizona wrote

That's an unbelievable amount of money spent on a business/sport that is directly threatened by recent climate patterns.

How about a sport that only the very comfortable in America and the world can afford to participate in.

Not completely true. There are still plenty of local run ski areas for the regular folks. My family being proof that you don't have to be rich to be skiing. You just have to really want it.

I didn't say rich, I said comfortable, and, by definition, if you have the sort of disposable income to spend on this sport, even at the "local" level, than, you're more comfortable than the large majority of Americans. Sure, you can bring up examples of families that ski affordably, like the guy I talked to in the Kmart gondola who's wife works for the mountain, so they get a family pass, and he "knew people" who got him cheap equipment, and they lived right down the road in Mendon, so, yeah, pretty cheap. But, cmon, let's get real. I didn't start skiing until I was 33, when I had a decent job and no family and could afford such a silly activity. It's really expensive. And the closest, or "local" mountain I could stand skiing at without getting stone cold bored is over two hours away..

There are a lot of sports that are expensive, certainly any winter sports (hockey).  One of the benefits of skiing, like golf, is that you can do it all your life.  It's not like you have to wait around for a couple of other guys to show up (basketball, softball, water polo, polo, hurling, underwater hockey, competitive eating).