Net Income Per Common Share

9 Months Ended

Apr. 30, 2018

Earnings Per Share Reconciliation [Abstract]

Summary of Calculation of Basic And Diluted EPS

Presented below is basic and diluted EPS for the three months ended April 30, 2018 and 2017 (in thousands, except per share amounts):



	Three Months Ended April 30,
	2018				2017
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	256,252	$	256,252	$	181,107	$	181,107
Weighted-average Vail Shares outstanding	40,379		40,379		39,996		39,996
Weighted-average Exchangeco Shares outstanding	59		59		72		72
Total Weighted-average shares outstanding	40,438		40,438		40,068		40,068
Effect of dilutive securities	—		1,107		—		1,113
Total shares	40,438		41,545		40,068		41,181
Net income per share attributable to Vail Resorts	$	6.34	$	6.17	$	4.52	$	4.40

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. The number of shares issuable upon the exercise of share based awards excluded from the calculation of diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 5,000 and 12,000 for the three months ended April 30, 2018 and 2017, respectively.

Presented below is basic and diluted EPS for the nine months ended April 30, 2018 and 2017 (in thousands, except per share amounts):



	Nine Months Ended April 30,
	2018				2017
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	463,558	$	463,558	$	267,699	$	267,699
Weighted-average Vail Shares outstanding	40,313		40,313		38,871		38,871
Weighted-average Exchangeco Shares outstanding	61		61		101		101
Total Weighted-average shares outstanding	40,374		40,374		38,972		38,972
Effect of dilutive securities	—		1,267		—		1,097
Total shares	40,374		41,641		38,972		40,069
Net income per share attributable to Vail Resorts	$	11.48	$	11.13	$	6.87	$	6.68

The number of shares issuable upon the exercise of share based awards excluded from the calculation of diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 5,000 and 4,000 for the nine months ended April 30, 2018 and 2017, respectively.

Net Income Per Common Share

Net Income per Share

Earnings per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income attributable to Vail Resorts stockholders by the weighted-average shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, resulting in the issuance of shares of common stock that would then share in the earnings of Vail Resorts.

In connection with the Company’s acquisition of Whistler Blackcomb in October 2016 (see Note 5, Acquisitions), the Company issued consideration in the form of shares of Vail Resorts common stock (the “Vail Shares”) and shares of the Company’s wholly-owned Canadian subsidiary (“Exchangeco”). Whistler Blackcomb shareholders elected to receive 3,327,719 Vail Shares and 418,095 shares of Exchangeco (the “Exchangeco Shares”). Both Vail Shares and Exchangeco Shares have a par value of $0.01 per share, and Exchangeco Shares, while outstanding, are substantially the economic equivalent of Vail Shares and are exchangeable, at any time prior to the seventh anniversary of the closing of the acquisition, into Vail Shares. The Company’s calculation of weighted-average shares outstanding includes the Exchangeco Shares.

Presented below is basic and diluted EPS for the three months ended April 30, 2018 and 2017 (in thousands, except per share amounts):



	Three Months Ended April 30,
	2018				2017
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	256,252	$	256,252	$	181,107	$	181,107
Weighted-average Vail Shares outstanding	40,379		40,379		39,996		39,996
Weighted-average Exchangeco Shares outstanding	59		59		72		72
Total Weighted-average shares outstanding	40,438		40,438		40,068		40,068
Effect of dilutive securities	—		1,107		—		1,113
Total shares	40,438		41,545		40,068		41,181
Net income per share attributable to Vail Resorts	$	6.34	$	6.17	$	4.52	$	4.40

Presented below is basic and diluted EPS for the nine months ended April 30, 2018 and 2017 (in thousands, except per share amounts):



	Nine Months Ended April 30,
	2018				2017
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	463,558	$	463,558	$	267,699	$	267,699
Weighted-average Vail Shares outstanding	40,313		40,313		38,871		38,871
Weighted-average Exchangeco Shares outstanding	61		61		101		101
Total Weighted-average shares outstanding	40,374		40,374		38,972		38,972
Effect of dilutive securities	—		1,267		—		1,097
Total shares	40,374		41,641		38,972		40,069
Net income per share attributable to Vail Resorts	$	11.48	$	11.13	$	6.87	$	6.68

Dividends

During the three and nine months ended April 30, 2018, the Company paid cash dividends of $1.47 and $3.576 per share ($59.5 million and $144.7 million, respectively, in the aggregate). During the three and nine months ended April 30, 2017, the Company paid cash dividends of $1.053 and $2.673 per share ($42.3 million and $104.0 million, respectively, in the aggregate). On June 6, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $1.47 per share, for Vail Shares, payable on July 12, 2018 to stockholders of record as of June 27, 2018. Additionally, a Canadian dollar equivalent dividend on the Exchangeco Shares will be payable on July 12, 2018 to the shareholders of record on June 27, 2018.