Vail Resorts Acquires Park City Mountain Resort in Park City, Utah
2014-09-11 15:26:36.680 GMT

      Vail Resorts Acquires Park City Mountain Resort in Park City, Utah

-- Acquisition settles all litigation and ensures no disruption to future
resort operations

-- Park City Mountain Resort will be added to the Epic Pass for the 2014-2015
ski season

-- Company intends to connect PCMR and Canyons for the 2015-2016 ski season to
create the largest single ski resort in the United States with 7,000 skiable
acres, subject to regulatory approvals

PR Newswire

BROOMFIELD, Colo., Sept. 11, 2014

BROOMFIELD, Colo., Sept. 11, 2014 /PRNewswire/ -- Vail Resorts, Inc. (NYSE:
MTN) today announced that the Company has acquired Park City Mountain Resort
(PCMR) from Powdr Corp. for $182.5 million in cash, subject to certain
post-closing adjustments. The acquisition includes all of the assets of
Greater Park City Company (GPCC), the land used for ski terrain at the resort
held by Ian Cumming, and certain base parking lands owned by Powdr Development
Corp., which have approved zoning for approximately 687,000 square feet of
residential and commercial development. The acquisition does not include the
Gorgoza tubing operation, located approximately 10 miles from the resort,
which will be retained by Powdr Corp.

With the acquisition, all aspects of the previously disclosed litigation with
respect to PCMR have been settled and this dispute will no longer pose any
future threat to disrupt the operation of the resort.

"First and foremost, we are very pleased to bring a permanent end to this
dispute and provide assurance to the guests and employees of PCMR, and to
everyone in the Park City community, that they no longer have to worry about
any disruption to the operation of the Resort. This has been a difficult
period for everyone involved and I commend John Cumming and Powdr Corp. for
helping to find a solution to this situation," said Rob Katz, chairman and
chief executive officer of Vail Resorts.

"Park City Mountain Resort is one of the most spectacular mountain resorts and
iconic brands in the ski industry and I am proud to have the resort become a
part of Vail Resorts. The acquisition will allow us to immediately bring Park
City Mountain Resort onto the Epic Pass, which will now offer skiers from
across the country and around the world access to 22 resorts, including
Canyons in Park City, Utah; Vail, Beaver Creek, Breckenridge and Keystone in
Colorado; and Heavenly, Northstar and Kirkwood in Tahoe. We look forward to
working collaboratively with the entire Park City community, as well as city
and county officials, as we chart the future for the resort, including how we
can best bring the Canyons and Park City ski experiences together to create
the largest mountain resort in the United States," he added.  

Blaise Carrig, president of Vail Resorts, will act as interim chief operating
officer for the resort.

"We understand that this acquisition represents a change for all of the
employees of PCMR and I look forward to working with everyone on the PCMR team
as we develop a vision for the future of the resort," said Carrig.

Mountain operations of PCMR and Canyons will remain separate for the 2014-2015
ski season. However, the Epic Pass and Epic Local Pass will be valid at PCMR.
All PCMR passes for the 2014-2015 ski season will continue to be honored and
can be exchanged or upgraded for a season pass that will also be valid at
Canyons. The majority of all lift tickets sold at either resort will be valid
at both PCMR and Canyons.

The Company also announced that due to the acquisition of PCMR, it expects $35
million in incremental EBITDA in Fiscal Year 2015, excluding any transaction
and transition costs. The Company anticipates additional contributions from
the acquisition in future years, particularly after it can connect the
experience of the two resorts together. The Company expects the acquisition to
provide significant tax benefits over the next 15 years, including an average
of approximately $12 million in additional annual taxable depreciation and
amortization expense through Fiscal 2021. The Company will be making
additional comments on PCMR and the Company's outlook in its 2014 fiscal
year-end investor conference call on Sept. 24. 

Park City Mountain Resort offers terrain for every type of skier and
snowboarder, from perfectly manicured groomers to powder-filled bowls and some
of the industry's most progressive terrain parks and half pipes. Located in
the heart of historic Park City, Utah–one of the country's greatest ski
towns–PCMR was named the fifth best resort in North America by readers of SKI
Magazine in 2014. The mountain resort's 16 lifts serve 114 runs, nine
powder-filled bowls, four terrain parks and two half pipes. The mountain also
offers many summer adventures including one of the world's longest alpine
slides, a nearly 4,000-foot long alpine coaster, zip lines and more than 70
miles of hiking and biking trails. Together with Canyons, the combined resort
will offer over 7,000 acres of skiing and will be the largest ski resort in
the United States.

About Vail Resorts, Inc. (NYSE: MTN)

Vail Resorts, Inc., through its subsidiaries, is the leading mountain resort
operator in the United States. The Company's subsidiaries operate the mountain
resorts of Vail, Beaver Creek, Breckenridge and Keystone in Colorado;
Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and
Nevada; Park City Mountain Resort and Canyons in Park City, Utah; Afton Alps
in Minnesota and Mt. Brighton in Michigan; and the Grand Teton Lodge Company
in Jackson Hole, Wyoming. The Company's subsidiary, RockResorts, a luxury
resort hotel company, manages casually elegant properties. Vail Resorts
Development Company is the real estate planning, development and construction
subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company
traded on the New York Stock Exchange (NYSE: MTN). The Vail Resorts company
website is www.vailresorts.com and consumer website is www.snow.com.

Forward-Looking Statements

Statements in this news release, other than statements of historical
information, are forward looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. All forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those projected. Such risks and
uncertainties include but are not limited to prolonged weakness in general
economic conditions, including adverse effects on the overall travel and
leisure related industries; unfavorable weather conditions or natural
disasters; adverse events that occur during our peak operating periods
combined with the seasonality of our business; competition in our mountain and
lodging businesses; our ability to grow our resort and real estate operations;
our ability to successfully initiate, complete, and sell, new real estate
development projects and achieve the anticipated financial benefits from such
projects; further adverse changes in real estate markets; continued volatility
in credit markets; our ability to obtain financing on terms acceptable to us
to finance our real estate development, capital expenditures and growth
strategy; our reliance on government permits or approvals for our use of
Federal land or to make operational and capital improvements; demand for
planned summer activities and our ability to successfully obtain necessary
approvals and construct the planned improvements; adverse consequences of
current or future legal claims; our ability to hire and retain a sufficient
seasonal workforce; willingness of our guests to travel due to terrorism, the
uncertainty of military conflicts or outbreaks of contagious diseases, and the
cost and availability of travel options; negative publicity which diminishes
the value of our brands; our ability to integrate and successfully realize
anticipated benefits from Park City Mountain Resort and the lease of Canyons
Resort operations or future acquisitions; the outcome of our plans to connect
with the ski terrain of Park City Mountain Resort and Canyons Resort;
implications arising from new Financial Accounting Standards Board
("FASB")/governmental legislation, rulings or interpretations; and other risks
detailed in the Company's filings with the Securities and Exchange Commission,
including the "Risk Factors" section of the Company's Annual Report on Form
10-K for the fiscal year ended July 31, 2013. 

All forward-looking statements attributable to us or any persons acting on our
behalf are expressly qualified in their entirety by these cautionary
statements. All forward-looking statements in this news release are made as of
the date hereof and we do not undertake any obligation to update any
forward-looking statements whether as a result of new information, future
events or otherwise, except as may be required by law.

Statement Concerning Non-GAAP Financial Measures

This news release includes the estimated incremental Resort Reported EBITDA
impact from the Park City Mountain Resort. Resort Reported EBITDA, which
represents the sum of Mountain and Lodging Reported EBITDA, is a non-GAAP
financial measure used by the Company, which we define as segment net revenue
less segment operating expense plus or minus segment equity investment income
or loss. Resort Reported EBITDA may not be comparable to similarly titled
measures of other companies and should not be considered in isolation or an
alternative to, or substitute for, measures of financial performance or
liquidity prepared in accordance with GAAP. We refer you to the Company's
periodic reports filed with the SEC for further information regarding the
Company's use of this Non-GAAP financial measure and a reconciliation of the
Company's historical Resort Reported EBITDA to its GAAP results.

SOURCE Vail Resorts, Inc.
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