Vail Resorts Q3 2023 Earnings Call Transcript

Quartr
Provided by Quartr
June 8, 2023

There are 9 speakers on the call.

Operator

Good day, everyone. Good afternoon, and welcome to the Vail Resorts Fiscal 2023 Third Quarter Earnings Call. Today's conference is being recorded. I will now turn the call over to Kirsten Lynch, Chief Executive Officer of Vail Resorts. You may begin.

Speaker 1

Thank you. Good afternoon, everyone. Welcome to our fiscal 2023 Third Quarter Earnings Conference Call. Joining me on the call this afternoon is Angela Korch, 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.

Speaker 1

Forward looking statements in our press release included this afternoon along with our remarks on this call are made as of today, June 8, 2023, 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 2023 3rd quarter results. We are pleased with our overall results for the quarter and for the 2022, 2023 North American ski season with strong growth in visitation and spending versus the prior year.

Speaker 1

After the challenges experienced in the Q2 of fiscal 2023, driven by weather disruptions in Tahoe and across our Midwest, Mid Atlantic with strong demand from local and destination guests driving visitation and resort net revenue above prior year record levels. Favorable conditions enabled an extended season at resorts across Utah, Tahoe and the Northeastern U. S, While some resorts in the Midwest and Mid Atlantic regions closed earlier than originally intended due to the unseasonably warm weather and lack of Terrain. Our results throughout the 2022, 2023 North American ski season highlight both The stability that comes from the advanced commitment of our season pass products and our strong operational execution through the season. The winter season included significant weather related challenges from the travel disruptions over the peak holiday period, Abnormal weather variability across our Eastern U.

Speaker 1

S. Resorts and significant storm related disruptions at our Tahoe resorts during multiple peak periods throughout the season. Despite these weather events, the company grew visitation, resort net revenue and resort reported EBITDA to record levels supported by the stability created from our advanced commitment strategy and a strong finish This season was good spring conditions at our resorts in Colorado, Utah, Tahoe and the Northeastern U. S. Our ancillary businesses, including ski school, dining and retail rental experienced strong growth compared to the prior year period when those businesses were impacted by capacity constraints driven by staffing and in the case of dining by operational restrictions associated with COVID-nineteen.

Speaker 1

Staffing levels enabled our Mountain Resorts to deliver a strong guest resulting in a significant improvement in guest satisfaction scores, which exceeded pre COVID-nineteen levels at our destination resorts. Now I would like to turn the call over to Angela to further discuss our financial results and fiscal 2023 outlook.

Speaker 2

Thank you. As Kirsten mentioned, we are pleased with our overall results for the quarter. And as expected, we saw improved results in March April. Net income attributable to Vail Resorts was $325,000,000 or $8.18 per diluted share for the Q3 of fiscal 2023, compared to net income attributable to Vail Resorts of $372,600,000 or $9.16 per diluted share in the prior year. The decrease in net income attributable to Vail Resorts compared to the prior year is primarily due to an increase in expense associated with a change in the estimated Fair value of the contingent consideration liability related to our Park City resort lease.

Speaker 2

Resort reported EBITDA was $123,300,000 in the Q3 of fiscal 2023, an increase of $12,800,000 or 2.1% compared to the same period in the prior year. Resort reported EBITDA was impacted by the timing of recognition of past products revenue as a result of delayed resort openings in the prior year and early resort openings in the current 2022, 2023 North American ski season. This change in resort operating dates opening dates resulted in a past product revenue decrease of approximately $40,000,000 for the Q3 of fiscal 2020 3, compared to the Q3 of fiscal 2022 and represents a timing difference that offsets with our Q2 of fiscal 2023. Now turning to our outlook for fiscal 2023. The strong finish to the season produced resort reported EBITDA results that were in line with expectations.

Speaker 2

And we now expect net income attributable to Vail Resorts for fiscal 2023 to be between $251,000,000 and $283,000,000 and Resort reported EBITDA for fiscal 2023 to be between $837,000,000 8 Our balance sheet remains strong and the business continues to generate robust cash flow. Our total cash and revolver availability as of April 30, 2023 was approximately $1,500,000,000 with $896,000,000 of cash on hand and $628,000,000 of combined revolver availability across our credit agreements. As of April 30, 2023, our net debt was 2.3x trailing 12 months total reported EBITDA. The company repurchased approximately 1,800,000 shares at an average price of $225.01 for a total of $400,000,000 during the quarter, representing 4.4% of the company's outstanding stock as of the beginning of Q3. We have approximately 1,800,000 shares remaining under our authorization for share repurchases and remain focused on returning capital to shareholders, while always prioritizing the long term value of our shares.

Speaker 2

Additionally, the company declared a quarterly cash dividend on Vail Resorts common stock of $2.06 per share. The dividend will be payable on July 12, 2023 to shareholders of record as of June 27, 2023. We will continue to be disciplined stewards of our capital and remain committed to prioritizing investments in our guest and employee experience, high return capacity expanding capital projects, strategic acquisition opportunities and returning capital to our shareholders through our quarterly dividend and share repurchase program. Now I'll turn the call back over to Kirsten to discuss our spring pass sales.

Speaker 1

Thank you, Angela. We are pleased with the results for our season pass sales to date and with continued unit growth over the strong pass sales results the business achieved last spring. Past product sales through May 30, 2023 for the upcoming 2023-twenty 24 North American ski season increased approximately 6% in units and approximately 11% and sales dollars as compared to the period in the prior year through May 31, 2022. Past product sales are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.74 between the Canadian dollar and the U. S.

Speaker 1

Dollar in both periods for Whistler Blackcomb Pass sales. Relative to season to date pass product sales for the 2022, 2023 season, the company achieved strong unit growth among renewing pass holders. The company successfully grew units across destination, international and local geographies with the strongest unit growth in destination markets, particularly in the Northeast and across all major Past product segments with the strongest product growth in regional unlimited pass products and epic day pass products as lower frequency guests and local Northeast guests continue to be attracted to the strong value proposition of these products. Pass sales dollars are benefiting from the 8% price increase relative to the 2022, 2023 season, partially offset by the mix impact from the growth of Epic Day Pass products. While Pass results to date have been strong, We still have the majority of our pass selling season ahead of us and given our efforts to drive more guests to purchase passes in the spring, we from ongoing sales of the Epic Australia Pass, which end on June 14, 2023 and are up approximately 15% in units through June 1, 2023 relative to the comparable period through June 2, 2022.

Speaker 1

These passes provide advanced commitment for this winter in Australia, but also provide advanced commitment from Australian guests for our North American ski resorts for the 2023 2024 winter season. Our commitment to reinvesting in our resorts and the guest experience remains one of our highest priorities. As part of this, we are pleased to be launching a new innovative business and new technology For the upcoming 2023, 2024 North American ski season, we are piloting My Epic Gear at Vail, Beavercreek, Breckenridge and Keystone for a limited number of pass holders during the 2023, 2024 North American ski season, which will introduce a new membership program that provides the best benefits of gear ownership, but with more choice, Lower cost and no hassle. My Epic Gear provides its members with the ability to choose the gear they want For the full season or for the day, from a selection of the most popular and latest ski and snowboard models and have it delivered to them when and where they want it guaranteed with free slopestyle pickup and drop off every day. In addition to offering the best skis and snowboards, Myopic Gear will also offer name brand high quality ski and snowboard boots with customized in fold and boot fit scanning technology.

Speaker 1

The entire My Epic Gear membership From gear selection to boot fit to personalized recommendations to delivery will be at the members fingertips through the new My Epic app. My Epic gear will officially launch for the 2024 2025 winter season at Vail, Beavercreek, Breckenridge, Keystone, Whistler Blackcomb, Park City Mountain, Crested Butte, Heavenly North Star, Stowe Okemo and Mount Snow and further expansions are expected in future years. The company is planning to introduce new technology for the 2023, 2024 ski season at its U. S. Resorts that will allow guests to store their pass product or Lyft ticket directly on their phone and scan at Lyft hands free, Eliminating the need for carrying plastic cards, visiting the ticket window or waiting to receive a pass or lift ticket in the mail.

Speaker 1

Once loaded onto their phones, guests can store their phone in their pocket and get scanned hands free in the Lyft line using Bluetooth Low energy technology, which is designed for low energy usage to minimize the impact on a phone's battery life. In addition to the significant enhancement of the guest experience, this technology will also ultimately reduce waste of printing plastic cards for past products and lift tickets and RFID chips as part of the company's commitment to 0. For the 1st year of launch, to ensure a smooth transition, the company will provide plastic cards for passes and lift tickets to all guests. And in future years, plastic cards will be available to any guest who cannot or do not want to use their phone to store their past product or lift ticket. We are also excited to announce the launch of our new My Epic app, which will include mobile pass and mobile lift ticket, Interactive trail maps, real time and predictive lift line wait time, personalized stats, My Epic gear and other relevant information to support the guest experience.

Speaker 1

The company is also a network wide scalable technology that will enhance our analytics, e commerce and guest engagement tools to improve our ability to target our guest outreach, personalized messages and improved conversion. Additionally, as previously announced, This summer and fall, we will be completing important strategic capital projects. At Keystone, we plan to complete the transformational Liftserve Terrain expansion project in Bergman Bowl, increasing lift served terrain by 550 Acres with the addition of a new 6 person high speed lift. At Breckenridge, we plan to upgrade the Peak 8 base area to enhance the beginner and children's experience and increase uphill capacity from this popular base area. The investment plan includes a new 4 person high speed 5 chair to replace the existing 2 person fixed grip lift, as well as significant improvements, including new teaching terrain and a transport carpet from the base to make the beginner experience more accessible.

Speaker 1

At Whistler Blackcomb, we plan to replace the 4 person high speed Fitzsimons lift with a new 8 person high speed lift in calendar year 2023. At Stevens Pass, we are planning to replace the 2 person fixed grip CARES chairlift with a new 4 person lift, which is designed to improve out of space capacity and guest experience. At Attitash, we plan to replace the 3 person fixed grip summit triple lift with a new 4 person high speed lift to increase are currently planned to be completed in time for the 2023, 2024 North American winter season. Additionally, the company plans to expand parking by more than 500 spaces across Heavenly, Mount Sunapee, Liberty and Roundtop to improve the guest experience. In closing, we greatly appreciate the loyalty of our guests that visited across our entire network of Mountain Resorts this past season and the continued loyalty of our pass holders that have already committed to next season.

Speaker 1

With the North American and European ski season Coming to an end, I would like to especially thank our frontline employees for their passion and tireless dedication to delivering an experience of a lifetime to our guests. Our employees are the core of Vail Resorts' mission to create an experience of a lifetime. We cannot create an experience of a lifetime for our guests without first creating an experience of a lifetime for our employees. And we are all looking forward to a great winter season at our 3 mountain resorts in Australia. At this time, Angela and I will be happy to answer your questions.

Speaker 1

Operator, we are now ready for questions.

Operator

Thank you. We'll take our first question from Shaun Kelley of Bank of America.

Speaker 3

Hi, good afternoon, everyone. Thanks for taking my question. Kirsten, maybe we could just start off with the pass sales. Obviously, plenty of color and an encouraging start. But if we go back to last season, there was some commentary around some of the full price products.

Speaker 3

I was wondering if you could kind of update sort of where we sit with some of the behavior you saw in the renewal period here towards Full price Epic Passes, are you seeing some of that same behavior you saw last year or has that started to normalize at all?

Speaker 1

Hi, Sean. Thanks for the question. Overall, yes, we are very pleased with the start to the past selling season being up 6% units and 11% of dollars, especially on top of a strong start to spring pass sales last year. I'll give a couple of dynamics that I think are particularly encouraging and also talk about what I Assume you mean our high frequency products as well. So, one of the dynamics that I see that I think is really encouraging is strong loyalty.

Speaker 1

Our renewals among existing pass holders are very strong and is the driver of the growth versus prior year. We're seeing growth across all geographies, destination, international, local geographies, also in the Midwest, Mid Atlantic And Northeast where there were some challenges as you know with conditions and terrain. And we see growth across all major past product segment and that includes our high frequency products, Epic and Epic Local. It also includes our regional Unlimited high frequency products as well as our limited frequency products like Epic Day Pass. We saw strong growth across the board.

Speaker 1

Epic and Epic Local as the that tier or segment of products was up slightly versus prior year. And then the last dynamic that we saw that I think is very encouraging is strong effective pass price With units of 6%, 11% on sales dollars, really pleased to see the price realization on that.

Speaker 3

It's great. And then to change gears with my follow-up, we don't typically ask about buybacks or capital return Too much, but obviously, it was a very large amount in the quarter. So just kind of wanted to ask what made now the right time To lean in there, perhaps how should investors think about that versus some of the other investment opportunities you have? I think we all know there was a lot of Cash on the balance sheet, but yes, sort of what made now the right time given the size of that relative to sort of your past behaviors on the buyback program?

Speaker 1

Yes. Thanks, Sean. We are very focused on being disciplined stewards of capital allocation, prioritizing High return capital projects, investing in our people, strategic acquisitions and returning excess capital to our shareholders. We did share in March that our Board had approved an increase in authorization for share repurchase and our intention to be aggressive in returning capital to shareholders. We really were leveraging the capital we have raised opportunistically over the past few years at Extremely low cost of debt to capitalize on this opportunity to repurchase shares at an attractive valuation.

Speaker 1

We're very confident in the stability of the business, encouraged by our growth outlook. Dividend continues to be the primary method of returning Capital to shareholders, but we are pleased to have had the opportunity to repurchase the shares and Have about 1,800,000 shares remaining in our authorization and intend to continue to return capital to shareholders while Being very disciplined in prioritizing the long term value of those shares.

Speaker 3

Thank you very much.

Operator

We'll take our next question from Laurent Vasilescu of BNP Paribas.

Speaker 4

Hey, guys. It's Dion on for Laurent. Thanks for taking the question. Also want to echo the nice start, on the pass unit sales and dollars. I was just wondering though, you mentioned that pass sale growth could moderate versus the spring to the fall as Consumers, you're pushing them to purchase earlier.

Speaker 4

But I think you mentioned that last year as well. So I guess, Has anything changed versus last year or are you starting to see the mix accelerate to more pre Memorial Day or is there anything to kind of think about there?

Speaker 5

I

Speaker 1

Ideally, we would like to get our guests to commit as early in the sales cycle as possible, and we're always striving for that. And I'd say given that focus and intention that we have, it is it has been typical for our growth rates to moderate throughout the sales cycle. We are still expecting strong sales growth on a full year, but expect that it may moderate from where it is right now because of that dynamic.

Speaker 4

Okay, got it. And then maybe as a follow-up, maybe you can remind us a bit about the durability of revenues the event of the downturn, I think things like ancillary might be a little more exposed, but maybe a reminder of how They performed in previous downturns or how you think about things like ancillary?

Speaker 1

Thanks. Yes. In previous downturns, we've seen Strong resilience in our visitation and our Lyft revenue because of our strategy to get our guests to commit in advance, we have seen some impact historically in downturns on ancillary spend, But actually the commitment in Advance has given us a lot of stability through those downturns.

Speaker 4

Okay, very helpful. Thanks guys and good luck.

Speaker 1

Thank you, Ian.

Operator

We'll take our next question from David Katz of Jefferies. Your line is open.

Speaker 6

Hi, afternoon everyone. Thanks for taking my questions. I wanted to just follow on the question regarding capital returns and how you've thought about the balance between a Hardie dividend and a Hardie repurchase. And Obviously, the circumstances dictate those, but I'd love just a little more color on your philosophy between the 2.

Speaker 2

Thanks, David. As Kirsten mentioned, dividend continues to be our primary method and we also The dividend last quarter and so that will continue to be kind of a recurring way that we return kind of excess cash to shareholders. Yes, I think this quarter we repurchased the $400,000,000 really. We had raised a lot of capital during COVID and so we did have some excess Cash on the balance sheet and so we said we were going to be a little more aggressive in returning that back to shareholders and so we took The opportunity during the quarter to return it, yes, what we think was an attractive valuation.

Speaker 6

Okay. And just as my follow-up, with respect to the new Technology that you discussed at Investor Day and discussed a bit more today, is The revenue and profitability opportunity around pre ordering gear Intended to drive people toward the pass or is the pass intended to drive people toward the gear? And is the gear more or less Profitable in the new model, then it's been the old fashioned way, if you'll allow.

Speaker 1

Yes. A couple of thoughts on that, David, starting with your last question. I think we are in a very unique position to do this innovation of My Epic Gear because we have so much Existing infrastructure already that we're leveraging. So it is not the same as building a business from scratch because we already have Over 200 retail rental locations, distribution centers, a rental delivery business, Deer Valley Services, you can think about us Sort of spring boarding or catapulting off of an infrastructure that we already have, which is very helpful for this business. We are investing in gear to be a part of the program, but The life of that gear and our ability to use the gear in My Epic Gear and then also use it through our rental stores makes that also very attractive capital investment for us.

Speaker 1

And then the intention of My Epicator Overall is how do you create loyalty and Higher retention within our owned and operated resort network consistent with our subscription strategy approach. So we see an opportunity to convert gear owners to improve the experience For people who already rent with us and possibly to attract new guests to Vail Resorts. So I think it's all of those things. I think it is beneficial for our pass holders. And I think potentially also could be a reason why someone would want to Come to our resort network and become a pass holder and a part of this program.

Speaker 1

But the overarching, if I were to summarize it, is that The lifetime value and the retention within our Vail Resorts owned and operated network.

Speaker 6

Got it. Thank you very much. Appreciate it.

Speaker 1

Thank you, David.

Operator

We'll take our next question from Ben Chaikin of Credit Suisse.

Speaker 7

Hey, how's it going? My first question is on the Epic Gear initiatives. There's going to be a trial this winter. I guess, first part, high level, what questions are you hoping to answer this winter? Is this a demand pH test or is it more on the logistics side?

Speaker 7

And then as we move into 'twenty four, I think the equipment angle is pretty straightforward. But on the kind of delivery and logistics side, how do we think about your ability to leverage existing labor? And then I have a follow-up. Thanks.

Speaker 1

Yes. I mean, I think the pilot will give us a lot of learnings. We Primarily are trying to make sure that the logistics and the guest experience are Move and meet the expectations for the model so that we can scale the business model that we have. So if you think about what the business model is promising. We are designing a back end logistics delivery gear storage system to ensure that that is a smooth experience for the guests so that they actually see the value of being a member of this program.

Speaker 1

And I'd say For me, that is primarily what I want to make sure that we have really filed in the pilot. I think we'll get some feedback from the guests on Demand and how often they'll use it or how they think they would use it, but the guest Experience is really critical that we deliver on.

Speaker 7

And then just The ability to leverage existing labor, can you kind

Speaker 1

of think about that? Yes. I think it's Similar answer, Ben, to the infrastructure point, which is we are leveraging something we already do. So right, we already have Deer Valley Services. We already have rental delivery business.

Speaker 1

We already have We already have retail, rental and tuning location employees and centers. So When you think about the leverage we have from that without getting into specifics about expectations on it, you can Hopefully envision that a lot of this exists, but we're now using it to enable a different business model. So Whether it's labor or the actual brick and mortar facilities, there is a lot of leverage assumed in this model because we're so Heavily already in this business.

Speaker 7

Okay. That makes sense. And then, for my second question, on the cost side, Historically, you've talked about 3 areas. I think you highlighted workforce management, guest self-service and automation. Regarding the workforce Management, any color on the timing of that broader rollout?

Speaker 7

And then separately, how incremental was this initiative at Park City and Whistler, where I believe you've been trialing it the last couple of years. Meaning, is there a noticeable improvement in EBITDA margins at those properties and guest experience? Just trying to get a feel of how those assets performed relative to prior years or comparable to similar mountains, if that makes sense. Thanks.

Speaker 1

Yes. We piloted workforce management for 2 years at Park City and also with Whistler Blackcomb. We did see A noticeable improvement in a couple of areas. One is our managers and our mountain operations ability to be in their allocation of labor based on the demands of the business. And we also saw a noticeable improvement in the impact on our employees' experience in terms of their ability to And what hours are available across the resort that they can actually sign up for based on what their particular needs are, which Right now is managed very differently resort by resort and function by function.

Speaker 1

So those were Some real improvement areas. You will see us expanding workforce management for this Upcoming season because of the positive impacts that we saw on our ability to be efficient With labor and also the positive impact for the employee experience. So yes, we do plan on expanding that this coming season.

Speaker 7

I appreciate it. Thank you.

Speaker 1

Thanks, Ben.

Operator

We'll take our next question from Chris Woronka of Deutsche Bank.

Speaker 5

Hey, good afternoon, everyone. Thanks for taking the questions. I guess, Kirsten, Angela, now with the 2022 to 2023 North American season in the books, can you maybe give us a little bit of a sense On ancillary, how much of your gains there came from pricing versus volume compared to last season? I think I guess I'm thinking about things mostly like food and beverage and tea school and stuff like that.

Speaker 1

Yes, I mean, on a high level comment and I'll let Angela comment on it as well. On a high level, we saw Very strong growth on ski school, rental retail and food and beverage. I think we've shared this in prior Earnings call that even though food and beverage growth was very strong versus prior year, we still Didn't get all the way back to where we expected to be on food and beverage and have very specific Plans in place next year to continue to build and get that business back to where it was pre COVID. And F and B was really differentially impacted Because there were so many restrictions that we had put in place associated with F and B that were unique and different relative to our ski school and our rental retail business. Angela may have some additional comments that she wants to make.

Speaker 1

Go ahead, Angela.

Speaker 2

Yes. The only thing I'll add, I mean those were the key themes. I mean we obviously had a very strong rebound from where we were at last year because of our staffing initiatives, That's right. Getting us back to full staffing allowed us to fully operate. And so that had a big impact year over year.

Speaker 2

And then relative to pre COVID, we saw some really strong Continued improvements and we are passing on more than the inflation to your question on price versus volume. And F and B, as Kirsten mentioned, is the one that we have not seen the volumes return all the way back to pre COVID.

Speaker 5

Okay. Very helpful. And then I guess as a follow-up, I know you mentioned Northeast, you called that out. It's one of the areas that had strong growth in the season pass sales in the spring selling season despite challenges. I mean, I know you don't give into specific numbers, but would you say it was even better than you would have from that region given the challenges or just kind of in line?

Speaker 5

And do you think there's still more Gains to be had from that region on advanced pad sales?

Speaker 1

It's always a concern when We have some resorts that are in geographies where there's extreme weather disruptions. And There's always a concern about what impact is that going to have on our pass holders and their desire to Hold the pass. And so we watch it very closely. And I would say I'm very pleased. And there's a If you break down what we call the East Resort into Midwest, Mid Atlantic and the Northeast, we collectively call that Our East Region Resorts, we had growth in the Midwest and the Mid Atlantic And the Northeast.

Speaker 1

And I think that's very encouraging and it shows the loyalty of our pass holders And the value of a pass that even after a tough season, they still believe that they will get the usage and the value out I talked about this at the investor conference. We believe that that East region, it has a lot of growth potential for us Phil, we have very strong resorts that we own and operate in that region. We have a lot of guest data from guests That ski and snowboard in that data, we have incredibly strong brand awareness of Epic Pass. And Every year, we have been growing our penetration in that particular region, and I Have full confidence that we will continue to do that this year.

Speaker 5

Okay, thanks. Very helpful.

Speaker 1

Thank you, Chris.

Operator

We'll take our next question from Brandt Montour of Barclays.

Speaker 8

Hey, good evening, everybody. Thanks for taking my questions. Just starting on the labor side, you mentioned that you're expanding the workforce management program. I imagine that wages, you still probably expect some growth looking into next year. I know you haven't said that, I'm not putting words in your mouth, but just Broader hospitality, let's say, is still seeing wage inflation.

Speaker 8

And so I guess my question is, when you think about offsets within that Segment for you, is there a world in which last year you may have over hired a little bit on labor to make sure that you could rebuild that customer And looking back on the last season, you think maybe that there's you don't need quite as many people or sort of what's the take I'm looking back on last season after it's all done now.

Speaker 1

Thanks, Brandt. I would say overall, I'm very Pleased that we got to staffing levels that enabled us to have full Operation of our terrain, our lifts and normal operation of our ancillary, it obviously makes a significant impact guest experience and our guest satisfaction, which ultimately impacts our pass sales and our loyalty to our resorts. I think in terms of what our plans are next year, we our mountain operations teams always assess What staffing levels they believe that they need, we are always looking at what is the optimal staffing and the most Efficient staffing we can have and then we have tools like what I just spoke about workforce management that Can help our managers allocate labor and understand what labor and hours they need. And so I'd say the positive of the wage investment, Absolutely, 100 percent believe that that was the right thing to do for our business given how critical the guest experience is. And do we always have To be efficient in how we apply that labor, absolutely, and we're putting very specific plans in place Like this workforce management tool that will enable the decision makers that are decentralized out in the resorts deciding how to allocate the labor, it will help them To be more efficient.

Speaker 8

Okay. Thanks for that. That's helpful. And then just a follow-up back toward the beginning of the Paul, you were pretty crystal clear about the outlook for past sales growth potentially moderating throughout the rest of the selling season. I guess I'm just curious how we should think about the fact that you started selling a little bit earlier this year.

Speaker 8

So you're comparing a period that had a little bit, I think I guess a couple of weeks maybe of extra time to sell versus last year. And, but you also probably you might look to open mountains earlier this year later. And so maybe that's just part of The longer term sort of incremental growth strategy, but how should we just think about that comparison given You should expect some level of moderation.

Speaker 1

Yes. I don't think I would think about that as a major And so we have a deadline in the early part of the sales cycle that is about benefits Two pass holders and then we had the deadline over Memorial Day of the call to action around the price increase. And So we are always looking for ways to use our data and our insights to influence behavior to make a decision as early in the selling cycle as possible. And this has been our approach for many, many years on pass sales. And so a strong is because of our approach, because we're always trying to get that decision making earlier.

Speaker 1

I would not view that number of

Operator

This concludes the question and answer portion of today's call. I would now like to turn the call back over to Kirsten Lynch for closing remarks.

Speaker 1

Thank you, operator. This concludes our fiscal 2023 Q3 earnings call. Thanks to everyone who joined the call today. Please feel free to contact me or Angela directly

Operator

This concludes today's Vail Resorts fiscal 3rd quarter 2023 earnings call and webcast. You may disconnect your line at this time and have a wonderful day.

Powered by Quartr
Earnings Conference Call
Vail Resorts Q3 2023
00:00 / 00:00