EPS of $-4.67 decreased by 39.4% from previous year
Gross margin of -7.7%
Net income of -175.38M
"Transcript not available" - N/A
Vail Resorts Inc (0LK3.L) QQ4 2024 Results: Revenue Decline, Negative Margins and Liquidity Strains in a Seasonally Driven Ski-Lodging Cycle
Executive Summary
Vail Resorts posted a significantly challenged QQ4 2024 with a revenue base of $265.386 million but a negative gross margin of -7.72% driven by cost of revenue exceeding sales. EBITDA and operating income were deeply negative at -$117.2 million and -$198.7 million, respectively, contributing to a net loss of -$175.4 million or -$4.67 per share (diluted). The quarter’s results reflect pronounced seasonality and a high fixed-cost structure, compounded by heavy cash outflows in investing and financing activities that culminated in a substantial cash burn. Free cash flow stood at -$150.326 million, and net debt rose to approximately $2.722 billion, with liquidity tightening as cash on hand declined to about $337 million by quarter-end. The balance sheet demonstrates meaningful leverage (total debt of $3.044 billion; debt-to-capitalization around 80.8%), a current ratio of 0.814, and a debt-to-equity ratio of 4.21, signaling near-term liquidity and solvency pressures.
With no explicit forward guidance provided in the data, the outlook hinges on seasonality normalization, cost discipline, and potential deleveraging actions. Key near-term questions center on whether management can stabilize occupancy and guest demand, manage fixed costs, and execute asset monetization strategies to reduce leverage. The investment thesis remains high risk until profitability and liquidity metrics show meaningful improvement, although the company’s valuable asset base in premium mountain resorts and related real estate could yield optionality if capital allocation and balance-sheet discipline are prioritized.
Net Income: -$175,377,000; Net Margin: -66.08%; YoY: -36.41%; QoQ: -148.45%.
Financial Highlights
Key QQ4 2024 metrics (USD, quarter over quarter and year over year in percent where available):
- Revenue: $265,386,000; YoY: -1.62%; QoQ: -79.32%.
- Gross Profit: -$20,485,000; Gross Margin: -7.72%; YoY Gross Profit Change: -608.33%; QoQ Change: -103.02%.
- EBITDA: -$117,201,000; EBITDAR Margin: -44.16%; YoY: not reported separately; QoQ: not reported separately.
- Operating Income: -$198,700,000; Operating Margin: -74.87%; YoY: -24.11%; QoQ: -133.97%.
- Net Income: -$175,377,000; Net Margin: -66.08%; YoY: -36.41%; QoQ: -148.45%.
- EPS (Diluted): -$4.67; YoY: -39.40%; QoQ: -148.80%.
- Free Cash Flow: -$150,326,000.
- Operating Cash Flow: -$94,240,000; Net Cash Used in Investing Activities: -$150,182,000; Net Cash Used in Financing Activities: -$141,353,000; Net Change in Cash: -$379,824,000.
- Cash and Cash Equivalents: $322,827,000; Cash & Short-Term Investments: $337,063,000; Total Cash Position (approx.): $659,890,000 combined liquidity.
- Balance Sheet Highlights: Total Assets $5.699B; Total Liabilities $4.660B; Total Stockholders’ Equity $723.537M; Debt (Total) $3.044B; Net Debt $2.722B; Current Ratio 0.814; Quick Ratio 0.707; Debt-to-Equity 4.21; Debt-to-Capitalization 80.8%.
- Key profitability ratios: Gross Margin -7.72%; Operating Margin -74.87%; Pretax Margin -88.42%; Net Margin -66.08%.
- Cash Flow Coverage and Efficiency: Negative EBITDA and cash burn reflect current operating leverage; Free Cash Flow yield negative; cash conversion metrics indicate constraints on liquidity in the near term.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
265.39M
-1.62%
-79.32%
Gross Profit
-20.49M
-608.33%
-103.02%
Operating Income
-198.70M
-24.11%
-133.97%
Net Income
-175.38M
-36.41%
-148.45%
EPS
-4.67
-39.40%
-148.80%
Key Financial Ratios
currentRatio
0.81
grossProfitMargin
-34.8%
operatingProfitMargin
-69.6%
netProfitMargin
-66.1%
returnOnAssets
-3.08%
returnOnEquity
-24.2%
debtEquityRatio
4.21
operatingCashFlowPerShare
$-2.51
freeCashFlowPerShare
$-4
dividendPayoutRatio
-47.4%
priceToBookRatio
9.54
priceEarningsRatio
-9.84
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript or management commentary provided in the supplied data. As a result, themes, strategic pivots, or management-specific quotes could not be extracted for inclusion under themes such as strategy, operations, or market conditions.
Transcript not available
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Forward Guidance
No explicit forward guidance was included in the data. Given the heavy leverage, negative FCF, and seasonality-driven volume swings, the near-term guidance a turnaround would likely hinge on: (a) stabilizing occupancy and guest mix across Mountain Lodging and Real Estate segments, (b) optimizing fixed-cost structure and discretionary capex, (c) deleveraging through asset monetization or debt refinancing, and (d) sustaining liquidity buffers. Investors should monitor seasonality trends (snow conditions, tourism season, and lodging demand), progress on any asset dispositions or development projects, debt maturities, and changes in working capital that could alter cash burn trajectory.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0LK3.L Focus
-7.72%
-69.60%
-24.20%
-9.84%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the QQ4 2024 results, the investment case for Vail Resorts is highly contingent on near-term liquidity stabilization and a credible plan to restore profitability and reduce leverage. The current negative margins, negative cash flow, and high debt load indicate elevated risk; valuation should reflect a liquidity and solvency risk premium until there is visible improvement in operating performance and a plan to deleverage. Investors should monitor: (1) seasonality-driven occupancy and guest spend recovery; (2) any asset disposition activity or monetization of real estate assets; (3) debt maturities and refinancing options; (4) capex discipline and working capital management; and (5) any signs of margin stabilization or expansion in the core Mountain Lodging and Real Estate segments. A potential upside would require a credible path to EBITDA positive operations and a meaningful reduction in net debt as snow seasons normalize and demand recovers.
Key Investment Factors
Growth Potential
Medium-to-long-term upside could arise from monetization of select real estate assets, stabilizing and growing occupancy in Mountain Lodging, and potential acceleration of RockResorts offerings. Positive revenue inflections would require a return to profitability and a credible deleveraging plan, aided by real estate development upside and potential pricing power in premium markets.
Profitability Risk
High near-term risk given negative profitability and substantial leverage. Key risks include seasonal volatility and snowpack dependence, macroeconomic weakness reducing discretionary leisure spending, continued depreciation of asset values in real estate, elevated interest rates increasing debt service costs, and execution risk around cost cuts and any asset sales or refinancing plans.
Financial Position
The company demonstrates meaningful liquidity stress indicators: current ratio 0.814, quick ratio 0.707, cash runway limited as of QQ4 2024, and net debt around $2.72B against total assets of $5.70B. The negative EBITDA and negative net income drive weak profitability metrics and an elevated leverage profile (debt-to-capitalization ~80.8%). A credible balance-sheet deleveraging plan and more favorable operating cash flow are prerequisites for a sustained improvement in valuation.
SWOT Analysis
Strengths
Strong premium brand portfolio and asset base in mountain resort, lodging, and real estate (RockResorts and related lodging assets).
Diversified segments (Mountain Lodging, Lodging/Real Estate, and Real Estate development) providing optionality in asset monetization and development.
Significant real estate ownership and development potential that could unlock future value through selective monetization or value-added projects.
Weaknesses
Materially negative profitability metrics (gross margin, EBITDA, operating income, and net income) in QQ4 2024.
High leverage (total debt ~$3.04B; net debt ~$2.72B) with a debt-to-capitalization of ~80.8% and negative interest coverage.
Severe near-term cash burn and liquidity constraints (FCF negative; current ratio below 1.0).
Seasonality and high fixed-cost structure create sensitivity to snowfall, tourism trends, and macro cycles.
Opportunities
Asset monetization or selective asset sales to reduce leverage and improve liquidity metrics.
Capacity to grow lodging occupancy and value-added services during peak seasons, leveraging the premium resort network.
Strategic capital allocation to deleverage and potentially re-allocate capital to higher-return initiatives or debt refinancing.
Threats
Climate/seasonality risk affecting snowfall, visitation, and pricing power.
Macroeconomic headwinds and higher interest rates impacting consumer travel demand and debt service costs.
Competition in premium leisure and real estate markets; potential refinancing risk given leverage levels.