Vail Resorts Announces Record Capital Plan for Calendar 2013

         Vail Resorts Announces Record Capital Plan for Calendar 2013

PR Newswire

BROOMFIELD, Colo., March 6, 2013

BROOMFIELD, Colo., March 6, 2013 /PRNewswire/ --Vail Resorts, Inc. (NYSE:
MTN) today announced its calendar 2013 capital expenditure plan. The
Company's 2013 capital plan includes a high-impact new lift, significant
terrain expansion, a new restaurant and the fourth generation of EpicMix, as
well as $25 million in spending for the first phase of its new summer
operations and nearly $10 million in upgrades for each of the recently
acquired Afton Alps and Mt. Brighton, resulting in the largest number of
planned improvements in the Company's history. The Company currently
anticipates it will spend approximately $130 million to $140 million in resort
capital expenditures in calendar year 2013, including approximately $47
million to $52 million in maintenance capital, which is necessary to maintain
the appearance and level of service appropriate to resort operations,
including routine replacement of snow grooming equipment and rental fleet
equipment. All of the proposed capital projects are subject to applicable
regulatory approvals, including U.S. Forest Service approval.

Highlights of the calendar year 2013 capital expenditure plan include:

  oEpic Discovery –This first phase of Epic Discovery, the Company's summer
    mountain activity plan, includes approximately $25 million to transform
    the summer experience at six of its mountain resorts (Vail, Beaver Creek,
    Breckenridge, Keystone, Heavenly and Northstar). Plans for each mountain,
    include a selection of zip lines, ropes courses, signature climbing walls,
    Forest Flyers^TM, summer tubing, expanded hiking and mountain biking
    trails and education centers. Each of these new activities will
    capitalize on the existing summer visitation at each resort and leverage
    existing infrastructure, creating the opportunity for high-impact and
    high-return projects. The Company expects these activities, in total, to
    generate approximately $7 million of incremental Mountain Reported EBITDA
    in their first full summer of operation.
  oImprovements at Afton Alps & Mt Brighton – The Company is planning major
    enhancements and upgrades to the newly acquired Afton Alps near
    Minneapolis, Minn., and Mt. Brighton near Detroit, Mich. The Company
    plans to invest nearly $10 million at each resort to bring a completely
    new ski experience to these markets, which are home to more than 450,000
    skiers and riders. The Company's plans include (i) dramatic improvements
    in snowmaking to extend the season and provide a more consistent and high
    quality snow surface, (ii) the creation of state-of-the-art terrain parks
    with extensive new features, animation and dedicated lifts; (iii) upgrades
    to base area facilities; (iv) the addition of EpicMix, EpicMix Racing and
    lift ticket scanning to personalize the guest experience and better
    promote the Company's western resorts to these skiers; and (v)
    improvements to guest safety and quality across the ski areas. These
    improvements are being announced along with new season pass plans for the
    resorts and a more dedicated sales effort in those markets to drive a
    stronger connection between those guests and the Company's Colorado and
    Tahoe resorts. The Company believes that following these plans, future
    capital spending at each resort will be more limited in scope.
  oPeak 6 terrain expansion at Breckenridge – The Peak 6 terrain expansion
    includes two new chairlifts and 543 acres of new terrain, a 23 percent
    expansion to the resorts skiable acreage. Peak 6 will offer an
    intermediate "bowl" skiing experience, with the opportunity for a wide
    variety of guests to ski this new high alpine area that sits above tree
    line. Peak 6 will become another iconic feature of Breckenridge, and will
    better disperse skiers and improve the guest experience across the resort,
    which is perennially the #1 or #2 most visited mountain resort in the
    United States.
  oNew Red Tail Camp restaurant at Beaver Creek –In advance of the 2015
    World Alpine Ski Championships, the Company is building a new 500 seat
    restaurant at Red Tail Camp, located at the finish of the men's and
    women's downhill courses, which more than doubles the existing
    restaurant's capacity. Red Tail Camp will offer gourmet dining options in
    an upscale cafeteria setting and will add a second high quality and high
    capacity dining venue for Beaver Creek, better positioning the resort for
    continued growth in visitation. The new restaurant will follow on the
    success the Company has had with the Tamarack Lodge at Heavenly, the
    Zephyr Lodge at Northstar and The 10^th at Vail. 
  oReplacing Vail's Chair 4 (Mountain Top Express) with a high speed,
    six-person chairlift –Vail's Mountain Top Express (#4) is one of the most
    recognized and highly utilized chairlifts in North America- serving both a
    critical skiing pod for the mountain and an important transportation lift
    from Lionshead and Vail Village to the Back Bowls and Blue Sky Basin. The
    new six-person chairlift will increase capacity by 33 percent,
    dramatically reducing lift lines and building on this year's success of
    the newly built Gondola One. The new chair will continue to build upon
    Vail's preeminent position in delivering the best experience in the ski
    industry worldwide.
  oEpicMix Academy – EpicMix Academy will be the fourth generation of the
    groundbreaking and award-winning EpicMix application, following the
    introductions of EpicMix Photo and EpicMix Racing. With EpicMix Academy,
    the Company's ski school instructors will be able to certify the
    attainment of certain skills and ski levels for any of the students in
    their classes. Children and adults in both group and private ski lessons
    will be able to earn permanent recognition and review their
    accomplishments online. Parents will be able to track the progress of
    their kids and the Company's ski schools will immediately know the ability
    level of every student before the start of each lesson. EpicMix Academy
    will offer special certified digital pins, which can be easily shared
    through Facebook and Twitter along with pins for vertical feet, photos and
    racing medals.

The Company has historically invested significant cash in capital expenditures
for resort operations and believes the calendar 2013 capital plan maintains
the high-quality standards for which Vail Resorts is known and invests in
improvements across the Company's resorts and new growth opportunities. All
discretionary capital improvements are evaluated based on an expected level of
return on investment. The Company plans to utilize cash on hand, borrowings
available under its Credit Agreement and/or cash flow generated from future
operations to provide the cash necessary to execute its capital plans.

Commenting on the resort capital expenditure announcement, Rob Katz, chief
executive officer, said, "The 2013 capital plan is unprecedented in its size
and underscores our operating philosophy of continually reinvesting in our
resorts to offer the absolute highest quality experience to our guests and
highlights several of our unique growth opportunities in Epic Discovery and
newly acquired resorts. Our commitment to continually investing in our
resorts to enhance the guest experience grows our season pass programs that
create customer loyalty, supports our premium pricing strategy, drives new
visitation, and increases guest spending. This year's plan represents the
culmination of many years of hard work with recent regulatory approvals
allowing for projects such as Epic Discovery and the Peak 6 terrain expansion
at Breckenridge, as well as a focused acquisition strategy that allows for a
stronger connection to skiers and riders in Minneapolis and Detroit."

About Vail Resorts, Inc. (NYSE: MTN)

Vail Resorts, Inc., through its subsidiaries, is the leading mountain resort
operator in the United States. The Company's subsidiaries operate the mountain
resorts of Vail, Beaver Creek, Breckenridge and Keystone in Colorado;
Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and
Nevada; Afton Alps in Minnesota and Mt. Brighton in Michigan; and the Grand
Teton Lodge Company in Jackson Hole, Wyoming. The Company's subsidiary,
RockResorts, a luxury resort hotel company, manages casually elegant
properties. Vail Resorts Development Company is the real estate planning,
development and construction subsidiary of Vail Resorts, Inc. Vail Resorts is
a publicly held company traded on the New York Stock Exchange (NYSE: MTN). The
Vail Resorts company website is www.vailresorts.com and consumer website is
www.snow.com.

Forward-Looking Statements

Statements in this press release, other than statements of historical
information, are forward looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements include estimates of capital expenditures,
expected returns on those investments, expected cash flows from operations and
borrowing availability under our Credit Agreement. All forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those projected. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. Such risks and uncertainties include
but are not limited to prolonged weakness in general economic conditions,
including adverse affects on the overall travel and leisure related
industries; unfavorable weather conditions or natural disasters; adverse
events that occur during our peak operating periods combined with the
seasonality of our business; competition in our mountain and lodging
businesses; our ability to grow our resort and real estate operations; our
ability to successfully initiate, complete, and sell, new real estate
development projects and achieve the anticipated financial benefits from such
projects; further adverse changes in real estate markets; continued volatility
in credit markets; our ability to obtain financing on terms acceptable to us
to finance our real estate development, capital expenditures and growth
strategy; our reliance on government permits or approvals for our use of
Federal land or to make operational and capital improvements; demand for
planned summer activities and our ability to successfully obtain necessary
approvals and construct the planned improvements; adverse consequences of
current or future legal claims; our ability to hire and retain a sufficient
seasonal workforce; willingness of our guests to travel due to terrorism, the
uncertainty of military conflicts or outbreaks of contagious diseases, and the
cost and availability of travel options; negative publicity which diminishes
the value of our brands; our ability to integrate and successfully realize
anticipated benefits of acquisitions or future acquisitions; implications
arising from new Financial Accounting Standards Board ("FASB")/governmental
legislation, rulings or interpretations; and other risks detailed in the
Company's filings with the Securities and Exchange Commission, including the
"Risk Factors" section of the Company's Annual Report on Form 10-K for the
fiscal year ended July 31, 2012.

All forward-looking statements attributable to us or any persons acting on our
behalf are expressly qualified in their entirety by these cautionary
statements. All guidance and forward-looking statements in this press release
are made as of the date hereof and we do not undertake any obligation to
update any forecast or forward-looking statements whether as a result of new
information, future events or otherwise, except as may be required by law.

Statement Concerning Non-GAAP Financial Measures

This press release includes the estimated incremental Mountain Reported EBITDA
impact of our summer activity effort. Mountain Reported EBITDA is a non-GAAP
financial measure used by the Company, which we define as segment net revenue
less segment operating expense plus or minus segment equity investment income
or loss. Mountain Reported EBITDA may not be comparable to similarly titled
measures of other companies and should not be considered in isolation or an
alternative to, or substitute for, measures of financial performance or
liquidity prepared in accordance with GAAP. We refer you to the Company's
periodic reports filed with the SEC, including the Company's Quarterly Report
on Form 10-Q for the quarter ended January 31, 2013 filed as of the date of
this press release, for further information regarding the Company's use of
this non-GAAP financial measure and a reconciliation of the Company's
historical Mountain Reported EBITDA to its GAAP results.

SOURCE Vail Resorts, Inc.

Website: http://www.snow.com
Contact: Investor Relations: Michael Chao, (303) 404-1820,
mchao@vailresorts.com, or Media: Kelly Ladyga, (303) 404-1862,
kladyga@vailresorts.com
 
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