ss20
Well-known member
Thought this may deserve it's own thread...
That's straight from the investor website, folks... http://investors.vailresorts.com/news-releases/news-release-details/vail-resorts-provides-updated-commentary-covid-19-impact
Frankly, $215m of capital improvements and 6 new lifts announced for next season across a portfolio with 37 total areas is not much on a per-area basis. I think that ASC and Vail are both proving that stockholders (on the American stock exchange, at least) do not want to weather (haha) the ups and downs of the ski season. And while a large amount of resorts across the globe can protect against poor snow years- that size can't protect against a global recession or economic downturn. And while your local ski area can adapt and survive a few years with profits down 10%, on a large company like Vail they're not just losing profits- they'd be losing shareholders. Double whammy.
So...does Vail sell a few resorts to generate additional cashflow? Unloading just a handful of properties would create $50m of cash- looks good on any company balance sheet.
While we entered this situation in a strong financial position, we believe the potentially challenging economic environment ahead requires us to review our previously announced calendar year 2020 capital plans and our plans for returning capital to shareholders and will provide updates on those plans as we finalize decisions.
That's straight from the investor website, folks... http://investors.vailresorts.com/news-releases/news-release-details/vail-resorts-provides-updated-commentary-covid-19-impact
Frankly, $215m of capital improvements and 6 new lifts announced for next season across a portfolio with 37 total areas is not much on a per-area basis. I think that ASC and Vail are both proving that stockholders (on the American stock exchange, at least) do not want to weather (haha) the ups and downs of the ski season. And while a large amount of resorts across the globe can protect against poor snow years- that size can't protect against a global recession or economic downturn. And while your local ski area can adapt and survive a few years with profits down 10%, on a large company like Vail they're not just losing profits- they'd be losing shareholders. Double whammy.
So...does Vail sell a few resorts to generate additional cashflow? Unloading just a handful of properties would create $50m of cash- looks good on any company balance sheet.