| Vail Resorts, Inc. | |||
| Ticker: | MTN | Post Office Box 7 | |
| Exchange: | New York Stock Exchange | Vail, CO 81620 | |
| Industry: | Service (SIC Code 7011) | (970) 476-5601 | |
| Type of Shares: | Common Shares | Filing Date: | 6/6/96 | |
| U.S. Shares: | 12,100,000 | Offer Date: | 2/3/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $19.00 - $21.00 | |
| Primary Shares: | 5,000,000 | Offer Price: | $22.00 | |
| Secondary Shares: | 7,100,000 | Gross Spread: | $1.43 | |
| Offering Amount: | $242,000,000 | Selling: | $0.86 | |
| Expenses: | $3,500,000 | Reallowance: | $0.10 | |
| Shares Out After: | 33,298,888 |
| Manager | Tier | Phone |
| Bear, Stearns & Co. Inc. | Lead Manager | (212) 272-4850 |
| Furman Selz Incorporated | Co-manager | (212) 309-8285 |
| Goldman, Sachs & Co. | Co-manager | (212) 902-5959 |
| Salomon Brothers Inc. | Co-manager | (212) 783-2947 |
| Schroder Wertheim & Company, Incorporated | Co-manager | (212) 492-6900 |
| Smith Barney Inc. | Co-manager | (212) 723-7300 |
| Issuer's Law Firm: | Cahill Gordon & Reindel |
| Bank's Law Firm: | Kramer, Levin, Naftalis, Nessen, Kamin & Frankel |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | Wilmington Trust |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 9/30/96 | 9/30/96 | ||||
| Revenue: | $188.94 | Assets: | $422.61 | ||
| Net Income: | $4.74 | Curr Assets: | |||
| EPS: | $0.22 | Liabilities: | $298.71 | ||
| Prior EPS: | $0.16 | Curr Liabilities: | |||
| Cash Flow/Oper: | Equity: | $123.91 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is the premier mountain resort operator in North America. The company operates Vail Mountain, the largest single ski mountain complex in North America, and Beaver Creek Mountain, one of the world's premier family oriented mountain resorts. The company is one of the most profitable resort operators in the ski industry due to its attractive guest demographics, favorable weather and snowfall conditions, ability to attract both destination resort guests and day travelers from local population centers and proximity to both Denver International Airport and Vail/Eagle County Airport. In addition to resort operations, the company owns substantial real estate from which it derives significant strategic benefits and cash flow. On January 3, 1997, the company acquired the Breckenridge, keystone and Arapahoe Basinmountain resorts and significant related real estate interests and developable land. |
| Competition |
| The ski industry is highly competitive. The company competes with mountain resort areas in the United States, Canada and Europe for destination guests and with numerous mountain resorts in Colorado for day skiers. The company also competes with other worldwide recreation resorts, including warm weather resorts, for the vacation guest. The company's major U.S. competitors include the Utah ski area, the Lake Tahoe mountain resorts in California and Nevada, the New England mountain resorts and the major Colorado areas, including Copper Mountain, Telluride, Steamboat Springs, Winter Park and the Aspen resorts. |
| Business Plan |
| The primary objectives of the company's marketing efforts include 1) continuing to increase the recognition and goodwill associated with the company's brand names and trademarks, 2) building demand during both peak and non-peak periods; 3) increasing overall sales through targeted promotional programs in national and international markets and 4) capturing a larger share of an individual vacationer's total out-of-pocket spending at the company's resorts. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to redeem all of the company's outstanding 12.25% Senior Subordinated Notes due 2002 with the balance used to reduce outstanding revolving credit borrowings under the New Credit Facilities and for general corporate purposes. |