Net Income Per Common Share

9 Months Ended

Apr. 30, 2020

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, 2020 and 2019 (in thousands, except per share amounts):



	Three Months Ended April 30,
	2020				2019
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	152,546	$	152,546	$	292,134	$	292,134
Weighted-average Vail Shares outstanding	40,183		40,183		40,198		40,198
Weighted-average Exchangeco Shares outstanding	54		54		57		57
Total Weighted-average shares outstanding	40,237		40,237		40,255		40,255
Effect of dilutive securities	—		507		—		765
Total shares	40,237		40,744		40,255		41,020
Net income per share attributable to Vail Resorts	$	3.79	$	3.74	$	7.26	$	7.12

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 4,000 and 54,000 for the three months ended April 30, 2020 and 2019, respectively.

Presented below is basic and diluted EPS for the nine months ended April 30, 2020 and 2019 (in thousands, except per share amounts):



	Nine Months Ended April 30,
	2020				2019
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	252,441	$	252,441	$	390,688	$	390,688
Weighted-average Vail Shares outstanding	40,244		40,244		40,307		40,307
Weighted-average Exchangeco Shares outstanding	55		55		57		57
Total Weighted-average shares outstanding	40,299		40,299		40,364		40,364
Effect of dilutive securities	—		601		—		837
Total shares	40,299		40,900		40,364		41,201
Net income per share attributable to Vail Resorts	$	6.26	$	6.17	$	9.68	$	9.48

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 1,000 and 48,000 for the nine months ended April 30, 2020 and 2019, 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, 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, 2020 and 2019 (in thousands, except per share amounts):



	Three Months Ended April 30,
	2020				2019
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	152,546	$	152,546	$	292,134	$	292,134
Weighted-average Vail Shares outstanding	40,183		40,183		40,198		40,198
Weighted-average Exchangeco Shares outstanding	54		54		57		57
Total Weighted-average shares outstanding	40,237		40,237		40,255		40,255
Effect of dilutive securities	—		507		—		765
Total shares	40,237		40,744		40,255		41,020
Net income per share attributable to Vail Resorts	$	3.79	$	3.74	$	7.26	$	7.12

Presented below is basic and diluted EPS for the nine months ended April 30, 2020 and 2019 (in thousands, except per share amounts):



	Nine Months Ended April 30,
	2020				2019
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	252,441	$	252,441	$	390,688	$	390,688
Weighted-average Vail Shares outstanding	40,244		40,244		40,307		40,307
Weighted-average Exchangeco Shares outstanding	55		55		57		57
Total Weighted-average shares outstanding	40,299		40,299		40,364		40,364
Effect of dilutive securities	—		601		—		837
Total shares	40,299		40,900		40,364		41,201
Net income per share attributable to Vail Resorts	$	6.26	$	6.17	$	9.68	$	9.48

Dividends

During the three and nine months ended April 30, 2020, the Company paid cash dividends of $1.76 and $5.28 per share, respectively ($70.7 million and $212.7 million, respectively, in the aggregate). During the three and nine months ended April 30, 2019, the Company paid cash dividends of $1.76 and $4.70 per share, respectively ($70.9 million and $189.6 million, respectively, in the aggregate). The Company announced on April 1, 2020 that it would be suspending its quarterly dividend for at least the next two quarters, and will be subject to a dividend limitation under the Financial Covenants Temporary Waiver Period of the Vail Holdings Credit Agreement (as defined in Note 6, Long-Term Debt).