BenedictGomez
Well-known member
Vail was just able to issue 600 mill (to pay off prior debt of 600 mill) for 6.5 percent, a whopping .25 percent increase. If rolling debt over for .25 percent is the offering, they are going to be just fine.
Maintained their dividend as well. Over a billion in cash on hand. Stock price is basically a vibe check right now. Vail is doing quite well compared to most. Gross revenue is up.
Stock prices go up, stock prices go down - it's not really part of my thesis on Vail, though yes, Vail's stock is down 16% this year while the blind monkey known as the S&P 500 is up 20% almost. That is pretty stark & dramatic variance of roughly 35%, and I'm not surprised. You are correct that they have almost $1B in cash, but they also have $3B in long-term debt alone, which kind of takes the bloom off that rose.
As for, "maintaining the dividend" comment, I predict it will be cut eventually. The payout ratio is over 100%. Vail is paying their Wall Street friends more money per year than their total Net Income from Operations. And they increased it earlier this year. Paying out more money in dividends than you make in profits is an unsustainable position for a business to be in longterm and often leads to it being unable to reinvest in core ops, especially if it's already (like Vail) in a high debt position. Vail is acting like a company ruled at the behest of its shareholders wanting to make money rather than with a responsible eye for its future. Perhaps they can pull that off for a handful more years but not forever.
![1724563798387.png 1724563798387.png](https://forums.alpinezone.com/data/attachments/45/45967-3e83ab56942fd192862967f33bbb7165.jpg)
Last edited: