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Vail Resorts up 2% after reporting Q2 results

Regarding the company's outlook, CEO Rob Katz said, "As noted in our January press release, we are lowering our guidance for fiscal 2019, primarily due to the disappointing results from destination visitation in the pre-holiday period and also due to shortfalls from expectations at our Tahoe resorts and Whistler Blackcomb. We now expect net income attributable to Vail Resorts, Inc. for fiscal 2019 to be between $268 million and $300 million, and Resort Reported EBITDA for fiscal 2019 to be between $690 million and $710 million, which remains generally consistent with our commentary on guidance in January. Our guidance is predicated on current Canadian and Australian foreign exchange rates of $0.75 and $0.71, respectively, for each currency to the U.S. dollar for the remainder of the fiscal year, which represents an estimated $4 million reduction in Resort Reported EBITDA from the currency rates included in the guidance we issued in September 2018, of which nearly half has been realized year to date. The updated guidance incorporates $12 million of acquisition and integration expenses, including $2 million for the Falls Creek and Hotham resorts transaction. The guidance does not incorporate any expected operating results or stamp duty payments for Falls Creek and Hotham, which we plan to update following the closing of the transaction. Our guidance assumes normal conditions at our resorts and a stable economic environment for the remainder of the fiscal year."

Vail Resorts approved a 20% increase in the quarterly cash dividend to $1.76 per share from $1.47 per share beginning with the dividend payable on April 11, to shareholders of record as of March 27.

Vail Resorts announced that it has entered into an agreement to purchase the ski fields at Falls Creek Alpine Resort and Hotham Alpine Resort in Victoria, Australia. Falls Creek, Victoria's largest ski resort, features a variety of terrain including fantastic beginner and intermediate trails that are well suited to families and first-timers. Considered the 'Powder Capital' of Australia, Hotham is the only resort in the Southern Hemisphere where the village is located on top of the mountain, ensuring ski-in, ski-out opportunities from anywhere in the village. The acquisition, which is subject to certain regulatory approvals, is expected to close prior to the commencement of the Australian snow season in June 2019. The company will purchase Australian Alpine Enterprises Holdings Pty. Ltd and all related corporate entities that operate Falls Creek and Hotham resorts from Living and Leisure Australia Group, a subsidiary of Merlin Entertainments, for a purchase price of approximately AU$174 million, subject to certain adjustments at closing, including an increase in the price for operating losses incurred for the period from Dec. 29, 2018 through closing. The acquisition includes ski school, retail/rental, reservation and property management operations at both resort areas.