Vail Resorts cancels all 2020 lift construction. And there's more.

[ski diva]

This just in:

Vail Resorts announced today the deferral of lift construction projects slated for Beaver Creek, Breckenridge, Keystone, and Okemo due to a significant decline in revenue, which is expected to continue into 2021.

Vail said weeks ago coronavirus will cost the company between $180 and 200 million in March and April alone. Eliminating lift construction, terrain expansions, and discretionary base area improvements will save the publicly-traded company $80 to 85 million.

Also announced today: the furlough of nearly all year-round hourly employees, suspension of the company's shareholder dividend, salary reductions for non-hourly employees and the elimination of cash compensation for the CEO and Board of Directors.

 

[MissySki]

This just in:

Vail Resorts announced today the deferral of lift construction projects slated for Beaver Creek, Breckenridge, Keystone, and Okemo due to a signification decline in revenue, which is expected to continue into 2021.

Vail said weeks ago coronavirus will cost the company between $180 and 200 million in March and April alone. Eliminating lift construction, terrain expansions, and discretionary base area improvements will save the publicly-traded company $80 to 85 million.

Also announced today: the furlough of nearly all year-round hourly employees, suspension of the company's shareholder dividend, salary reductions for non-hourly employees and the elimination of cash compensation for the DEO and Board of Directors.

Wow!

 

[Abbi]

This just in:

Vail Resorts announced today the deferral of lift construction projects slated for Beaver Creek, Breckenridge, Keystone, and Okemo due to a significant decline in revenue, which is expected to continue into 2021.

Vail said weeks ago coronavirus will cost the company between $180 and 200 million in March and April alone. Eliminating lift construction, terrain expansions, and discretionary base area improvements will save the publicly-traded company $80 to 85 million.

Also announced today: the furlough of nearly all year-round hourly employees, suspension of the company's shareholder dividend, salary reductions for non-hourly employees and the elimination of cash compensation for the cEO and Board of Directors.

No surprise, really considering everything. But still very difficult and hard and sad to read this.

 

[skibum4ever]

IKON had announced a lot of construction as well, including some lift upgrades at Mammoth. I doubt that any of those will happen.

 

[Tvan]

Expected and sad. I think we need to be prepared that there will be more announcements like this to come.

 

[mustski]

At least they suspended dividends and cash compensation for the CEO and board members. I really am hoping that the antibody therapy they are trying in NYC works! It's not a vaccine but it could be an excellent treatment if it works. Time for all those NBA players that got tested early to anti up!

 

[KatyPerrey]

Something good for Summit County where I live.

"Vail Resorts CEO Rob Katz and his wife, Elana Amsterdam, have announced a donation of more than $2.5 million to provide support for Vail Resorts employees and the mountain towns where the company operates, according to a news release.

Katz will donate $1.5 million to benefit more than a dozen organizations providing critical services in Summit, Eagle and Gunnison counties in Colorado as well as other resort communities across North America.

In Summit County, $100,000 will go to the Family & Intercultural Resource Center to support the mobile food bank as well as mental health and social service navigation, and $100,000 will go to The Summit Foundation’s Summit County Cares Fund to support area nonprofits."

 

[marymack]

Was anyone surprised to see how much goes out in dividends (140 million) compared to what they expend on capital improvements (80 million)?

 

[ski diva]

This is one of the problems with having a very large company owning multiple ski resorts. In a good year, it's great. They have very deep pockets and can make a lot of improvements, and hey, there's the multi-resort pass! Spread the wealth, and all that. But in a bad year, lots of ski areas suffer, all at the same time. The main responsibility of these publicly traded companies is their stockholders.

 

[ski diva]

I really am hoping that the antibody therapy they are trying in NYC works! It's not a vaccine but it could be an excellent treatment if it works. Time for all those NBA players that got tested early to anti up!

Believe it or not, this is something that was done way back during the flu epidemic in 1918. It's an old technology being revamped for today.

https://www.history.com/news/blood-plasma-covid-19-measles-spanish-flu

 

[marymack]

Was anyone surprised to see how much goes out in dividends (140 million) compared to what they expend on capital improvements (80 million)?

I went back and read the release. I wanted to clarify that the budget for improvements was reduced BY 80 million, not that that was the total budget. Still shocked by the amount vail gives away in dividends though!

 

[marzNC]

Something good for Summit County where I live.

"Vail Resorts CEO Rob Katz and his wife, Elana Amsterdam, have announced a donation of more than $2.5 million to provide support for Vail Resorts employees and the mountain towns where the company operates, according to a news release.

Katz will donate $1.5 million to benefit more than a dozen organizations providing critical services in Summit, Eagle and Gunnison counties in Colorado as well as other resort communities across North America.

In Summit County, $100,000 will go to the Family & Intercultural Resource Center to support the mobile food bank as well as mental health and social service navigation, and $100,000 will go to The Summit Foundation’s Summit County Cares Fund to support area nonprofits."

There is more detail about how the $2.5 million is being distributed among non-profits near VR locations in this article. Not just for people in Colorado, also includes other locations such as W-B and Vermont.

March 30, Vail Daily
Vail Resorts CEO Rob Katz donates $2.5 million to employees, communities
https://www.vaildaily.com/news/vail-resorts-ceo-katz-donates-2-5-million-to-employees-communities/

 

[Après Skier]

@mustski ”anti up”... Brilliant!