Vail Resorts lowers FY23 net income view to $282M-$328M from $321M-$396M

CEO Lynch said, "While we continue to expect strong demand from destination guests at our western North American resorts for the remainder of the season, we are lowering our guidance for FY23, primarily due to the significant weather disruptions at our Eastern U.S. resorts throughout the season-to-date period, as well as continued significant snowstorm disruptions at our Tahoe resorts. For FY23, we expect contribution margin from our 26 Eastern U.S. resorts, excluding an allocated portion of pass product revenue, to underperform initial expectations provided in September 2022 by approximately $43M, with the majority of the underperformance occurring after the peak holiday period…We now expect net income for FY23 to be $282M-$328M, and Resort Reported EBITDA between $831M and $859M. We estimate Resort EBITDA Margin for fiscal 2023 to be approximately 29.4%, using the midpoint of the guidance range…It is important to note that there continues to be uncertainty around the economic outlook and the impact that may have on travel and consumer behavior. The guidance assumes an exchange rate of $0.73 between the Canadian dollar and U.S. dollar related to the operations of Whistler Blackcomb in Canada, an exchange rate of $0.66 between the Australian dollar and U.S. dollar related to the operations of Perisher, Falls Creek and Hotham in Australia, and an exchange rate of $1.06 between the Swiss Franc and U.S. dollar related to the operations of Andermatt-Sedrun in Switzerland. Relative to our original September 2022 guidance, we estimate the movements in exchange rates will result in a 2023 guidance impact of approximately negative $6M for Resort Reported EBITDA."