Vail Resorts, Inc. Net Income dropped on 67.2% and EBITDA Margin decreased on 4.3 pp from 30.6% to 26.3%
09/24/2020 • About Vail Resorts, Inc. (
$MTN) • By InTwits
Vail Resorts, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vail Resorts, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.7%. At the same time it's in pair with industry average of 8.8%
- CAPEX is quite volatile: $0m in FY2020, $1m in FY2019, $2m in FY2018, $0m in FY2017, $0m in FY2016
- The company has potentially unprofitable business model: ROIC is 5.8%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is 4.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 13.6%. Revenue decline showed acceleration in FY20Q4 - it was 68.4% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 3.3% to 12.7% in FY2020. During the last 5 years EBITDA Margin topped in FY2019 at 30.6%.
Gross Margin decreased on 5.5 pp from 30.8% to 25.3% in FY2020. During the last 5 years Gross Margin topped in FY2018 at 43.1% and was declining since that time.
Net Income margin decreased on 8.2 pp from 13.3% to 5.0% in FY2020. During FY2016-FY2020 Net Income margin topped in FY2018 at 18.9% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 8.8% in FY2020. Vail Resorts, Inc.'s CAPEX/Revenue increased slightly on 1.2 pp from 7.6% in FY2017 to 8.8% in FY2020. It's average level of CAPEX/Revenue for the last three years was 8.1%. CAPEX as a % of Revenue stuck to a growing trend at 0.48 pp per annum in the last 5 years.
Return on investment
The company operates at low ROIC (5.8%) and ROE (7.0%). ROIC decreased on 8.2 pp from 14.0% to 5.8% in FY2020. ROE dropped on 12.5 pp from 19.5% to 7.0% in FY2020. During FY2016-FY2020 ROE topped in FY2018 at 24.0% and was declining since that time.
Leverage (Debt)
Debt level is 4.5x Net Debt / EBITDA and 5.3x Debt / EBITDA. Net Debt / EBITDA jumped on 2.4x from 2.1x to 4.5x in FY2020. Debt jumped on 73.4% while cash surged on 259%.
Vail Resorts, Inc. has no short term refinancing risk: cash is higher than short term debt (302.9%).
Valuation and dividends
The company's trades at EV/EBITDA 21.2x and P/E 87.1x.
Management team
Vail Resorts, Inc.'s CEO is Robert A Katz "Rob". Robert A Katz "Rob" has 15 years tenure with the company. Michael Z Barkin is a Vail Resorts, Inc.'s CFO. Michael Z Barkin has spent 7 years at the company.
Financial and operational results
FY ended 07/31/2020
Vail Resorts, Inc. ($MTN) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1,601 | 1,907 | 2,012 | 2,272 | 1,964 | -13.6% |
| Gross Profit | 449 | 821 | 867 | 700 | 497 | -28.9% |
| EBITDA | 444 | 568 | 613 | 694 | 516 | -25.7% |
| Net Income | 150 | 211 | 380 | 301 | 99 | -67.2% |
Balance Sheet
|
|---|
| Cash | 68 | 117 | 178 | 109 | 391 | 259.2% |
| Short Term Debt | 13 | 38 | 38 | 49 | 129 | 166.1% |
| Long Term Debt | 687 | 1,234 | 1,234 | 1,528 | 2,605 | 70.5% |
Cash flow
|
|---|
| Capex | 109 | 144 | 141 | 192 | 172 | -10.3% |
Ratios
|
|---|
| Revenue growth | 14.4% | 19.1% | 5.5% | 12.9% | -13.6% | |
| EBITDA growth | 23.6% | 27.9% | 7.9% | 13.2% | -25.7% | |
|
|---|
| Gross Margin | 28.0% | 43.1% | 43.1% | 30.8% | 25.3% | -5.5% |
| EBITDA Margin | 27.8% | 29.8% | 30.5% | 30.6% | 26.3% | -4.3% |
| Net Income Margin | 9.4% | 11.0% | 18.9% | 13.3% | 5.0% | -8.2% |
| CAPEX, % of revenue | 6.8% | 7.6% | 7.0% | 8.5% | 8.8% | 0.3% |
|
|---|
| ROIC | 15.3% | 14.7% | 12.4% | 14.0% | 5.8% | -8.2% |
| ROE | 17.2% | 17.2% | 24.0% | 19.5% | 7.0% | -12.5% |
| Net Debt/EBITDA | 1.4x | 2.0x | 1.8x | 2.1x | 4.5x | 2.4x |
Vail Resorts, Inc. ($MTN) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 268 | 925 | 694 | 77 | | 21.7% | 8.8% | -27.5% | -68.4% |
| EBITDA | -68 | 385 | 294 | -96 | | - | 7.8% | -38.5% | - |
| Net Income | -106 | 206 | 153 | -154 | | - | 0.0% | -47.8% | - |
Balance Sheet
|
|---|
| Cash | 136 | 127 | 483 | 391 | | -3.3% | -20.0% | 709.3% | 259.2% |
| Short Term Debt | 120 | 113 | 106 | 129 | | 147.7% | 133.8% | 117.7% | 166.1% |
| Long Term Debt | 2,236 | 2,046 | 2,575 | 2,605 | | 50.4% | 52.1% | 96.4% | 70.5% |
Ratios
|
|---|
| Gross Margin | -29.5% | 40.8% | 43.8% | -135.0% | | 4.5% | -1.2% | -6.3% | -109.9% |
| EBITDA Margin | -25.3% | 41.6% | 42.3% | -124.4% | | 9.5% | -0.4% | -7.6% | -98.2% |
| Net Income Margin | -39.8% | 22.3% | 22.0% | -199.0% | | 9.2% | -2.0% | -8.5% | -162.3% |
Peers in Leisure Facilities
Below you can find Vail Resorts, Inc. benchmarking vs. other companies in Leisure Facilities industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
