Vail Resorts Reports Fiscal 2013 Fourth Quarter and Full Year Results and Provides 2014 Outlook

  Vail Resorts Reports Fiscal 2013 Fourth Quarter and Full Year Results and
                            Provides 2014 Outlook

PR Newswire

BROOMFIELD, Colo., Sept. 27, 2013

BROOMFIELD, Colo., Sept. 27, 2013 /PRNewswire/ -- Vail Resorts, Inc.
(NYSE:MTN) today reported results for the fourth quarter and fiscal year
ended July 31, 2013 and provided its outlook for the fiscal year ending July
31, 2014.

Highlights

  oResort Reported EBITDA increased 17.3% to $240.9 million for fiscal 2013,
    compared to the prior fiscal year. This includes incremental EBITDA of
    $5.5 million from the acquisitions of Kirkwood and the Urban ski areas,
    and $7.6 million of EBITDA losses related to the Canyons transaction,
    including transaction and transition costs on the acquisitions and Canyons
    transaction (the Canyons transaction, together with the acquisitions,
    referred to collectively as the "Acquisitions"). Excluding the
    Acquisitions, Resort Reported EBITDA increased 18.4% to $242.9 million.
  oNet income attributable to Vail Resorts, Inc. increased 129.4% to $37.7
    million for fiscal 2013, compared to the prior fiscal year.
  oExcluding the Acquisitions:

       oTotal Mountain net revenue increased 9.3% for fiscal 2013 compared to
         the prior fiscal year.
       oMountain Reported EBITDA increased 16.5% for fiscal 2013 compared to
         the prior fiscal year.

  oDuring fiscal 2013, we closed on ten Ritz-Carlton Residence units, twelve
    One Ski Hill Place units and a land sale in Breckenridge. Net Real Estate
    Cash Flow for fiscal 2013 was $27.5 million.
  oSales of season passes through September 22, 2013 for the upcoming
    2013/2014 ski season were up approximately 19% in units and approximately
    23% in sales dollars versus the comparable period in the prior year.
    Based on historical patterns, approximately 55% to 60% of our total sales
    are made by this date.

Commenting on the Company's fiscal 2013 results, Rob Katz, Chief Executive
Officer said, "We are very pleased with our performance this fiscal year. We
reported record Resort revenue and Resort EBITDA that reflects higher overall
visitation, improved pricing, increased average guest spend and strong pass
sales. We generated significant real estate net cash flow driven by the
increasing strength in resort real estate markets. We were successful in our
acquisition strategy during fiscal 2013, completing our transaction for
Canyons Resort in Park City, Utah and acquiring Afton Alps in Minnesota and
Mount Brighton in Michigan. We also launched the initial activities for Epic
Discovery on Vail Mountain and made continued progress in the approval process
for our broader summer plans across our resorts. Finally, we increased the
number of mountains available on our Epic Pass from 12 during the 2012/2013
ski season to 26 for the 2013/2014 ski season and added resorts in Austria and
France, truly creating a global offering."

Katz added, "Total Mountain net revenue increased 13.2% for fiscal 2013. This
was driven by a 13.6% increase in total skier visits, driving a $48.3 million,
or 14.1%, increase in lift revenue compared to prior year. Lift revenue,
excluding season pass revenue, increased $36.4 million, or 17.6%, and season
pass revenue increased $11.9 million, or 8.8% compared to prior year. Our
ancillary businesses also performed well reflecting improvements in consumer
spending that resulted in higher spending per guest. Relative to prior year,
fiscal 2013 dining revenue increased 18.7%, ski school revenue increased
13.0%, and retail/rental revenue increased 9.7%."

Regarding Lodging, Katz said, "Our Lodging segment benefited from improved
summer visitation and increased winter demand during peak holiday periods at
our resorts. Total Lodging net revenue (excluding payroll cost
reimbursements) for fiscal 2013 increased $12.2 million, or 6.5%, to $200.1
million, as compared to the prior fiscal year. Our owned hotels and managed
condominiums, excluding Canyons, benefited from improved Average Daily Rate
("ADR") and revenue per available room ("RevPAR"), which increased 1.7% and
6.4%, respectively."

Turning to our real estate business, Katz commented, "We are very pleased with
the increased level of sales activity at both of our development projects.
For fiscal 2013, we closed on twelve One Ski Hill Place units and ten
Ritz-Carlton Residences, Vail units. Additionally, during fiscal 2013 we
closed on the sale of 2.1 acres of land at the base of Breckenridge Ski
Resort's Peak 8 for $11.1 million and recognized a gain on the sale of $6.7
million in the fourth quarter of fiscal 2013. Net Real Estate Cash Flow for
fiscal 2013 was $27.5 million, exceeding our revised guidance of $23 million
to $27 million issued in June 2013."

Katz continued, "Our balance sheet continues to be very strong. We ended the
quarter with $138.6 million of cash on hand, an increase of $92.6 million from
July 31, 2012, and no borrowings under the revolver of our senior credit
facility. Our Net Debt was 2.8 times trailing twelve months Total Reported
EBITDA which includes $306.3 million of capitalized long-term obligations
associated with the Canyons transaction. I am also very pleased to announce
that our Board of Directors has declared a quarterly cash dividend on Vail
Resorts' common stock. The quarterly dividend will be $0.2075 per share of
common stock and will be payable on October 24, 2013 to shareholders of record
on October 9, 2013."

Operating Results
A complete Management's Discussion and Analysis of Financial Condition and
Results of Operations can be found in the Company's Annual Report on Form 10-K
for the fiscal year ended July 31, 2013 filed with the Securities and Exchange
Commission. The following are segment highlights:

Mountain Segment

  oTotal Skier Visits for fiscal 2013 increased to 7.0 million, from 6.1
    million in fiscal 2012, a 13.6% increase.
  oLift revenue excluding the Acquisitions and excluding season pass holders,
    increased $26.4 million in fiscal 2013, or 12.8%, compared to the prior
    fiscal year.
  oEffective Ticket Price ("ETP") excluding season pass holders, and
    excluding the Acquisitions, increased $4.94 in fiscal 2013, or 6.7% over
    the prior fiscal year.
  oMountain Reported EBITDA for fiscal 2013 increased $29.8 million, or 15.0%
    to $228.7 million compared to the prior fiscal year. Excluding the
    Acquisitions, Mountain Reported EBITDA for fiscal 2013 increased $32.7
    million or 16.5% over the prior fiscal year.
  oMountain Reported EBITDA includes $9.0 million and $7.6 million of
    stock-based compensation expense for fiscal 2013 and fiscal 2012,
    respectively.

Lodging Segment

  oLodging segment net revenue was $211.0 million for fiscal 2013 compared to
    $210.6 million for the prior fiscal year, a 0.2% increase. Excluding
    payroll cost reimbursements related to managed hotel properties, total
    Lodging revenues increased 6.5% over the prior fiscal year.
  oFor fiscal 2013, ADR increased 1.7% and RevPAR increased 6.4% at the
    Company's owned hotels and managed condominiums, excluding Canyons,
    compared to the prior fiscal year.
  oLodging Reported EBITDA increased 91.4% to $12.2 million for fiscal 2013
    compared to the prior fiscal year. Excluding Canyons contribution,
    Lodging Reported EBITDA was $11.4 million for fiscal 2013. 
  oLodging Reported EBITDA includes $1.9 million and $1.7 million of
    stock-based compensation expense for fiscal 2013 and fiscal 2012,
    respectively.

Resort – Combination of Mountain and Lodging Segments

  oResort net revenue was $1,078.5 million for fiscal 2013, up 10.4% compared
    to the prior fiscal year. Excluding the Acquisitions, Resort net revenue
    increased 7.0% to $1,045.5 million in fiscal 2013.
  oResort Reported EBITDA increased 17.3% to $240.9 million for fiscal 2013,
    compared to the prior fiscal year. Excluding the Acquisitions, Resort
    Reported EBITDA increased 18.4% to $242.9 million.

Real Estate Segment

  oReal Estate segment net revenue was $42.3 million for fiscal 2013. This
    compares to Real Estate net revenue of $47.2 million for fiscal 2012.
  oNet Real Estate Cash Flow (a non-GAAP measure defined as Real Estate
    Reported EBITDA, plus non-cash real estate cost of sales, plus non-cash
    stock-based compensation expense, plus change in real estate deposits less
    investment in real estate) was $27.5 million for fiscal 2013, up 60.4%
    from fiscal 2012.
  oReal Estate Reported EBITDA improved 43.1% to a negative $9.1 million for
    fiscal 2013 compared to a negative $16.0 million for the prior year. Real
    Estate Reported EBITDA includes $1.4 million and $2.6 million of
    stock-based compensation expense for fiscal 2013 and fiscal 2012,
    respectively.

Total Performance

  oTotal net revenue was $1,120.8 million for fiscal 2013 compared to
    $1,024.4 million in the prior year, a 9.4% increase.
  oNet income attributable to Vail Resorts, Inc. was $37.7 million, or $1.03
    per diluted share, for fiscal 2013 compared to net income attributable to
    Vail Resorts, Inc. of $16.5 million, or $0.45 per diluted share, in the
    prior year.

Dividends and Share Repurchase
In fiscal 2013, total dividends paid were $0.7900 per share, after increasing
the dividend amount by approximately 11% in the third fiscal quarter from
$0.1875 to $0.2075 per share.

The Company did not repurchase any shares of common stock in fiscal 2013.
Since inception of the stock repurchase program in 2006, the Company has
repurchased an aggregate of 4,949,111 shares at a cost of approximately $193.2
million. As of July 31, 2013, 1,050,889 shares remained available to
repurchase under the existing repurchase authorization.

Season Pass Sales
Commenting on the Company's season pass sales for the upcoming 2013/2014 ski
season, Katz said, "We are extremely pleased that our season pass sales for
the upcoming 2013/2014 ski season continue to show strong growth and
demonstrate the compelling value proposition of our season pass products to
our loyal guests. Through September 22, 2013, season pass sales increased
approximately 19% in units and approximately 23% in sales dollars, as compared
to the prior year period through September 23, 2012. These growth rates are
consistent with the growth rates we reported in Spring 2013 and exceeded our
expectations. Since announcing the Canyons transaction in late May 2013, we
have seen a material acceleration in pass sales in the Tahoe and Utah markets
as well as in our destination markets. Our Minneapolis and Detroit markets
continue to show growth rates well in excess of our overall results and we
continue to see strong performance in Colorado as well. We believe this will
be a strong overall year for pass sales, though we expect the final growth
rates for the full selling season to be materially lower than where we are
through September, as we know a portion of the significant increase in sales
to date is due to pass holders who purchased last fall buying passes earlier
in the year."

Guidance
Turning to guidance for fiscal 2014, Katz commented, "We are excited about the
upcoming ski season and expect to build upon the positive momentum from fiscal
2013 with several new initiatives in fiscal 2014 that we hope will continue to
elevate the guest experience and financial results at our resorts. As always,
our visibility into the upcoming ski season is limited at this point in time.
Our guidance for fiscal 2014 anticipates normal weather conditions and a
continuation of the current economic environment. Based on our current
estimates, our fiscal 2014 guidance range anticipates Resort Reported EBITDA
of between $280.0 million and $295.0 million, including approximately $11.9
million of non-cash stock based compensation expense. We expect that Canyons
EBITDA, including its impact on our overall season pass sales and excluding
non-recurring integration and litigation related expenses, will modestly
exceed our prior guidance for its first full year of operations. We
anticipate that integration and litigation related expenses in fiscal 2014,
which are included in our Resort Reported EBITDA guidance, will be
approximately $7.2 million, including an estimated $5.0 million in fees
associated with the Park City Mountain Resort litigation. As we continue to
focus on driving profitable growth, we expect to increase our Resort EBITDA
Margin (defined as Resort Reported EBITDA divided by Resort net revenue) by
approximately 0.7 percentage points to 23.0% in fiscal 2014 at the midpoint of
our guidance range. Our Real Estate segment results are impacted in any given
year by the timing and mix of real estate sold and closed. For fiscal 2014,
we are estimating Real Estate Reported EBITDA of negative $14.0 million to
negative $8.0 million, including approximately $1.7 million of non-cash
stock-based compensation expense. We expect Net Real Estate Cash Flow of
$15.0 million to $25.0 million (including proceeds from recovery of previously
incurred project costs and after any additional investments made into the
projects). Net income attributable to Vail Resorts, Inc. is expected to be in
a range of $37.0 million to $55.0 million for fiscal 2014."

Regarding advance Lodging bookings, Katz said, "Although it is still early in
the cycle (less than 15% of winter season bookings are historically made by
this time), we are pleased that at this point bookings are up in both room
nights and revenue over the prior year."

In conclusion, Katz said, "fiscal 2014 will be an exciting year for Vail
Resorts. We are integrating Canyons Resort, Afton Alps and Mount Brighton
into our pass products, marketing efforts and operations. The opening of Peak
6 at Breckenridge, Chair 4 at Vail and the new Red Tail on-mountain restaurant
at Beaver Creek will be important drivers of growth for these critical resorts
in Colorado. And we will continue to build and open more summer activities
over the course of the fiscal year as part of our Epic Discovery program
across our resorts. We look forward to welcoming our guests to enjoy all of
our resorts and lodging properties along with our new offerings over the
coming year."

The following table reflects the forecasted guidance range for the Company's
fiscal year ending July 31, 2014, for Reported EBITDA (after stock-based
compensation expense) and reconciles such Reported EBITDA guidance to net
income attributable to Vail Resorts, Inc. guidance for fiscal 2014.



                                                  Fiscal 2014 Guidance
                                                  (In thousands)
                                                  For the Year Ending
                                                  July 31, 2014
                                                  Low End
                                                                High End Range
                                                  Range
Mountain Reported EBITDA ^(1)                     $ 263,000     $  278,000
Lodging Reported EBITDA ^(2)                        14,000         20,000
Resort Reported EBITDA ^(3)                         280,000        295,000
Real Estate Reported EBITDA ^(4)                   (14,000)       (8,000)
Total Reported EBITDA                               266,000        287,000
Depreciation and amortization                       (141,000)      (137,000)
Loss on disposal of fixed assets, net               (1,200)        (800)
Investment income                                   200            500
Interest expense, net                               (65,500)       (63,500)
Income before provision for income taxes            58,500         86,200
Provision for income taxes                          (21,650)       (31,450)
Net income                                          36,850         54,750
Net loss attributable to noncontrolling interests   150            250
Net income attributable to Vail Resorts, Inc.     $ 37,000      $  55,000

(1) Mountain Reported EBITDA includes approximately $10 million of stock-based
    compensation.
(2) Lodging Reported EBITDA includes approximately $2 million of stock-based
    compensation.
    Resort Reported EBITDA represents the sum of Mountain and Lodging. The
    Company provides Reported EBITDA ranges for the Mountain and Lodging
    segments, as well as for the two combined. Readers are cautioned to
    recognize that the low end of the expected ranges provided for the Lodging
    and Mountain segments, while possible, do not sum to the low end of the
(3) Resort Reported EBITDA range provided because we do not necessarily expect
    or assume that we will actually hit the low end of both ranges, as the
    actual Resort Reported EBITDA will depend on the actual mix of the Lodging
    and Mountain components. Similarly, the high end of the ranges for the
    Lodging and Mountain segments do not sum to the high end of the Resort
    Reported EBITDA range.
(4) Real Estate Reported EBITDA includes approximately $2 million of
    stock-based compensation.

Earnings Conference Call
The Company will conduct a conference call today at 11:00 a.m. Eastern Time to
discuss the financial results. The call will be webcast and can be accessed
at www.vailresorts.com in the Investor Relations section, or dial (877)
941-1467 (U.S. and Canada) or (480) 629-9676 (international). A replay of the
conference call will be available two hours following the conclusion of the
call through October 11, 2013. To access the replay, dial (800) 406-7325
(U.S. and Canada) or (303) 590-3030 (international), pass code 4638135. The
conference call will also be archived at www.vailresorts.com.

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; Canyons in Park City, Utah; 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, otherthan 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.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. All forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those projected. 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 future 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 from the lease of Canyons Resort operations or future
acquisitions; the outcome of pending litigation regarding the ski terrain of
Park City Mountain Resort; adverse consequences on lease payment obligations
for Canyons Resort due to increases in consumer price index, or CPI;
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, 2013.

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
We use the terms "Reported EBITDA" and "Net Debt" when reporting financial
results in accordance with Securities and Exchange Commission rules regarding
the use of non-GAAP financial measures. We define Reported EBITDA as segment
net revenue less segment operating expense plus or minus segment equity
investment income or loss and for the Real Estate segment plus gain on sale of
real property. We define Net Debt as long-term debt plus long-term debt due
within one year less cash and cash equivalents. For Resort, we define Resort
EBITDA Margin as Resort Reported EBITDA divided by Resort net revenue (which
is not a measure of financial performance under GAAP). In addition, for the
Real Estate segment we define Net Real Estate Cash Flow (which is not a
measure of financial performance under GAAP) as Real Estate Reported EBITDA,
plus non-cash real estate cost of sales, plus non-cash stock-based
compensation expense, plus change in real estate deposits and recovery of
previously incurred project costs less investment in real estate, which we use
as a cash flow indicator for our Real Estate segment. For the Lodging segment
we primarily focus on Lodging net revenue excluding payroll cost reimbursement
and Lodging operating expense excluding reimbursed payroll costs (which are
not measures of financial performance under GAAP) as the reimbursements are
made based upon the costs incurred with no added margin, as such the revenue
and corresponding expense have no effect on our Lodging Reported EBITDA which
we use to evaluate Lodging segment performance. Please see "Reconciliation of
Non-GAAP Financial Measures" below for more information.



Vail Resorts, Inc.

Consolidated Condensed Statements of Operations

(In thousands, except per share amounts)

(Unaudited)
                             Three Months Ended        Twelve Months Ended

                             July 31,                  July 31,
                             2013         2012         2013        2012
Net revenue:
Mountain                     $ 51,844     $ 46,414     $ 867,514   $ 766,608
Lodging                      58,089       54,751       210,974     210,623
Real estate                  2,372        12,379       42,309      47,163
 Total net revenue        112,305      113,544      1,120,797   1,024,394
Segment operating expense:
Mountain                     103,208      90,323       639,706     568,578
Lodging                      56,758       54,773       198,813     204,270
Real estate                  8,741        16,691       58,090      63,170
 Total segment operating  168,707      161,787      896,609     836,018
expense
Other operating (expense)
income:
Depreciation and             (33,861)     (32,335)     (132,688)   (127,581)
amortization
Gain on sale of real         6,675        —            6,675       —
property
Loss on disposal of fixed    (465)        (341)        (1,222)     (1,464)
assets, net
(Loss) income from           (84,053)     (80,919)     96,953      59,331
operations
Mountain equity investment   92           (66)         891         878
income (loss), net
Investment income, net       45           113          351         469
Interest expense, net        (13,698)     (8,360)      (38,966)    (33,586)
(Loss) income before
benefit (provision) for      (97,614)     (89,232)     59,229      27,092
income taxes
Benefit (provision) for      37,710       35,408       (21,619)    (10,701)
income taxes
Net (loss) income            $ (59,904)   $ (53,824)   $ 37,610    $ 16,391
Net loss attributable to     36           28           133         62
noncontrolling interests
Net (loss) income
attributable to Vail         $ (59,868)   $ (53,796)   $ 37,743    $ 16,453
Resorts, Inc.
Per share amounts:
Basic net (loss) income per
share attributable to Vail   $ (1.67)     $ (1.50)     $ 1.05      $ 0.46
Resorts, Inc.
Diluted net (loss) income
per share attributable to    $ (1.67)     $ (1.50)     $ 1.03      $ 0.45
Vail Resorts, Inc.
Cash dividends declared per  $ 0.2075     $ 0.1875     $ 0.79      $ 0.675
share
Weighted average shares
outstanding:
Basic                        35,931       35,915       35,859      36,004
Diluted                      35,931       35,915       36,733      36,673
Other Data (unaudited):
Mountain Reported EBITDA     $ (51,272)   $ (43,975)   $ 228,699   $ 198,908
Lodging Reported EBITDA      $ 1,331      $ (22)       $ 12,161    $ 6,353
Resort Reported EBITDA       $ (49,941)   $ (43,997)   $ 240,860   $ 205,261
Real Estate Reported EBITDA  $ 306        $ (4,312)    $ (9,106)   $ (16,007)
Total Reported EBITDA        $ (49,635)   $ (48,309)   $ 231,754   $ 189,254
Mountain stock-based         $ 1,999      $ 1,668      $ 9,007     $ 7,614
compensation
Lodging stock-based          $ 481        $ 386        $ 1,917     $ 1,744
compensation
Resort stock-based           $ 2,480      $ 2,054      $ 10,924    $ 9,358
compensation
Real Estate stock-based      $ 325        $ 596        $ 1,425     $ 2,641
compensation
Total stock-based            $ 2,805      $ 2,650      $ 12,349    $ 11,999
compensation



Vail Resorts, Inc.
Mountain Segment Operating Results
(In thousands)
(Unaudited)
                                                                       

                Three Months Ended      Percentage    Twelve Months       Percentage
                July 31,                              Ended
                                        Increase      July 31,            Increase
                  2013        2012      (Decrease)    2013       2012     (Decrease)
Net Mountain
revenue:
Lift            $ —         $ 89        (100.0)  %  $ 390,820  $ 342,500  14.1   %
Ski school      —           1           (100.0)  %  95,254     84,292     13.0   %
Dining          7,100       6,619       7.3      %  81,175     68,376     18.7   %
Retail/rental   22,615      20,814      8.7      %  199,418    181,772    9.7    %
Other           22,129      18,891      17.1     %  100,847    89,668     12.5   %
Total Mountain  $ 51,844    $ 46,414    11.7     %  $ 867,514  $ 766,608  13.2   %
net revenue
Mountain
operating
expense:
Labor and
labor-related   $ 37,129    $ 30,490    21.8     %  $ 238,479  $ 207,269  15.1   %
benefits
Retail cost of  13,270      12,069      10.0     %  88,500     79,657     11.1   %
sales
Resort related  1,140       909         25.4     %  41,970     39,557     6.1    %
fees
General and     26,240      22,087      18.8     %  119,938    107,483    11.6   %
administrative
Other           25,429      24,769      2.7      %  150,819    134,612    12.0   %
Total Mountain
operating       $ 103,208   $ 90,324    14.3     %  $ 639,706  $ 568,578  12.5   %
expense
Mountain
equity
investment      92          (66)        239.4    %  891        878        1.5    %
income (loss),
net
Mountain
Reported        $ (51,272)  $ (43,976)  (16.6)   %  $ 228,699  $ 198,908  15.0   %
EBITDA



Certain Mountain segment operating expenses presented above for Fiscal 2012
have been reclassified to conform to the current fiscal year presentation.

                        Twelve Months Ended   Percentage
                        July 31,
                        2013         2012     Increase
Skier Visits
Colorado Resorts        5,047        4,853    4.0    %
Tahoe Resorts           1,705        1,291    32.1   %
Urban Ski Areas         225          —        nm
Total Skier Visits      6,977        6,144    13.6   %
Effective Ticket Price  $56.02       $55.75   0.5    %



Vail Resorts, Inc.

Lodging Operating Results

(In thousands, except ADR and RevPAR)

(Unaudited)
                Three Months Ended    Percentage  Twelve Months Ended     Percentage
                July 31,                          July 31,
                                      Increase                            Increase
                2013       2012       (Decrease)  2013        2012        (Decrease)
Lodging net
revenue:
Owned hotel     $ 14,883   $ 14,239   4.5      %  $ 48,449    $ 45,131    7.4     %
rooms
Managed
condominium     7,957      6,412      24.1     %  44,486      40,473      9.9     %
rooms
Dining          11,663     9,625      21.2     %  33,809      29,980      12.8    %
Transportation  2,032      1,972      3.0      %  19,602      18,860      3.9     %
Golf            7,526      7,523      —        %  15,237      15,159      0.5     %
Other           11,694     11,234     4.1      %  38,562      38,383      0.5     %
                55,755     51,005     9.3      %  200,145     187,986     6.5     %
Payroll cost    2,334      3,746      (37.7)   %  10,829      22,637      (52.2)  %
reimbursements
Total Lodging   $ 58,089   $ 54,751   6.1      %  $ 210,974   $ 210,623   0.2     %
net revenue
Lodging
operating
expense:
Labor and
labor-related   $ 26,431   $ 24,311   8.7      %  $ 92,737    $ 88,777    4.5     %
benefits
General and     6,630      6,666      (0.5)    %  28,446      29,280      (2.8)   %
administrative
Other           21,363     20,050     6.5      %  66,801      63,576      5.1     %
                54,424     51,027     6.7      %  187,984     181,633     3.5     %
Reimbursed      2,334      3,746      (37.7)   %  10,829      22,637      (52.2)  %
payroll costs
Total Lodging
operating       $ 56,758   $ 54,773   3.6      %  $ 198,813   $ 204,270   (2.7)%
expense
Lodging
Reported        $ 1,331    $ (22)     6,150.0  %  $ 12,161    $ 6,353     91.4    %
EBITDA
Owned hotel
statistics:
ADR             $ 185.41   $ 191.63   (3.2)    %  $ 203.61    $ 205.02    (0.7)   %
RevPar          $ 110.94   $ 107.84   2.9      %  $ 122.77    $ 114.73    7.0     %
Managed
condominium
statistics:
ADR             $ 215.13   $ 196.18   9.7      %  $ 333.98    $ 320.30    4.3     %
RevPar          $ 36.61    $ 31.84    15.0     %  $ 83.48     $ 78.65     6.1     %
Owned hotel
and managed
condominium
statistics
(combined):
ADR             $ 194.78   $ 193.13   0.9      %  $ 264.36    $ 260.04    1.7     %
RevPar          $ 64.99    $ 60.04    8.2      %  $ 96.14     $ 90.36     6.4     %



Key Balance Sheet Data

(In thousands)

(Unaudited)
                                               As of July 31,
                                               2013        2012
Real estate held for sale and investment       $ 195,230   $ 237,668
Total Vail Resorts, Inc. stockholders' equity  823,868     802,311
Long-term debt                                 795,928     489,775
Long-term debt due within one year             994         990
Total debt                                     796,922     490,765
Less: cash and cash equivalents                138,604     46,053
Net debt                                       $ 658,318   $ 444,712

Reconciliation of Non-GAAP Financial Measures
Resort, Mountain and Lodging, and Real Estate Reported EBITDA have been
presented herein as measures of the Company's financial operating performance.
Reported EBITDA and Net Debt are not measures of financial performance or
liquidity under accounting principles generally accepted in the United States
of America ("GAAP"), and they might not be comparable to similarly titled
measures of other companies. Reported EBITDA and Net Debt should not be
considered in isolation or as an alternative to, or substitute for, measures
of financial performance or liquidity prepared in accordance with GAAP
including net income, net change in cash and cash equivalents or other
financial statement data. The Company believes that Reported EBITDA is an
indicative measurement of the Company's operating performance, and is similar
to performance metrics generally used by investors to evaluate companies in
the resort and lodging industries. The Company primarily uses Reported EBITDA
based targets in evaluating performance. The Company believes that Net Debt is
an important measurement as it is an indicator of the Company's ability to
obtain additional capital resources for its future cash needs. For Resort, the
Company defines Resort EBITDA Margin as Resort Reported EBITDA divided by
Resort net revenue, which is not a measure of financial performance under
GAAP, as the Company believes it is an important measurement of operating
performance. In addition, the Company also uses the term Net Real Estate Cash
Flow, which is not a measure of financial performance or liquidity under GAAP,
as the Company believes it is important as a cash flow indicator for our Real
Estate segment.

Presented below is a reconciliation of Total Reported EBITDA to net (loss)
income attributable to Vail Resorts, Inc. calculated in accordance with GAAP
for the three and twelve months ended July 31, 2013 and 2012.



                              (In thousands)
                              (Unaudited)
                              Three MonthsEnded        Twelve MonthsEnded

                              July 31,                  July 31,
                              2013         2012         2013        2012
Mountain Reported EBITDA      $ (51,272)   $ (43,975)   $ 228,699   $ 198,908
Lodging Reported EBITDA       1,331        (22)         12,161      6,353
Resort Reported EBITDA*       (49,941)     (43,997)     240,860     205,261
Real Estate Reported EBITDA   306          (4,312)      (9,106)     (16,007)
Total Reported EBITDA         (49,635)     (48,309)     231,754     189,254
Depreciation and              (33,861)     (32,335)     (132,688)   (127,581)
amortization
Loss on disposal of fixed     (465)        (341)        (1,222)     (1,464)
assets, net
Investment income, net        45           113          351         469
Interest expense, net         (13,698)     (8,360)      (38,966)    (33,586)
(Loss) income before benefit  (97,614)     (89,232)     59,229      27,092
(provision) for income taxes
Benefit (provision) for       37,710       35,408       (21,619)    (10,701)
income taxes
Net (loss) income             $ (59,904)   $ (53,824)   $ 37,610    $ 16,391
Net loss attributable to      36           28           133         62
noncontrolling interests
Net (loss) income
attributable to Vail          $ (59,868)   $ (53,796)   $ 37,743    $ 16,453
Resorts, Inc.

* Resort represents the sum of Mountain and Lodging

The following table reconciles Net Debt to long-term debt and the calculation
of Net Debt to Total Reported EBITDA for the twelve months ended July 31,
2013.

                                    (Inthousands)

                                    (Unaudited)

                                    AsofJuly 31, 2013
Long-term debt                      $    795,928
Long-term debt due within one year  994
Total debt                          796,922
Less: cash and cash equivalents     138,604
Net debt                            $    658,318
Net debt to Total Reported EBITDA   2.8x

The following table reconciles Real Estate Reported EBITDA to Net Real Estate
Cash Flow for the three and twelve months ended July 31, 2013.

                                       (Inthousands)      (Inthousands)

                                       (Unaudited)         (Unaudited)

                                       Three MonthsEnded  Twelve MonthsEnded

                                       July 31, 2013       July 31, 2013
Real Estate Reported EBITDA            $     306           $    (9,106)
Non-cash Real Estate cost of sales     6,210               36,492
Non-cash Real Estate stock-based       325                 1,425
compensation
Change in Real Estate deposits less    309                 (1,331)
investments in Real Estate
Net Real Estate Cash Flow              $     7,150         $    27,480

The following table reconciles Resort Net Revenue to Resort EBITDA Margin for
the twelve months ended July 31, 2013 and for fiscal 2014 guidance.

                       (Inthousands)       (Inthousands)

                       (Unaudited)          (Unaudited)

                       Twelve MonthsEnded  Fiscal 2014

                       July 31, 2013        Guidance**
Resort net revenue*    $   1,078,488        $  1,250,773
Resort EBITDA*         240,860              287,500
Resort EBITDA margin*  22.3            %    23.0         %
*Resort represents the sum of Mountain and Lodging
**Represents the mid-point range of Guidance



SOURCE Vail Resorts, Inc.

Website: http://www.snow.com
Contact: Investor Relations: Michael Barkin, (303) 404-1800,
InvestorRelations@vailresorts.com; Media: Kelly Ladyga, (303) 404-1862,
kladyga@vailresorts.com
 
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