Net Income Per Common Share

3 Months Ended

Oct. 31, 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 October 31, 2020 and 2019 (in thousands, except per share amounts):

	Three Months Ended October 31,
	2020						2019
	Basic			Diluted			Basic			Diluted
Net loss per share:
Net loss attributable to Vail Resorts	$	(153,766	)	$	(153,766	)	$	(106,475	)	$	(106,475	)
Weighted-average Vail Shares outstanding	40,213			40,213			40,286			40,286
Weighted-average Exchangeco Shares outstanding	35			35			56			56
Total Weighted-average shares outstanding	40,248			40,248			40,342			40,342
Effect of dilutive securities	—			—			—			—
Total shares	40,248			40,248			40,342			40,342
Net loss per share attributable to Vail Resorts	$	(3.82	)	$	(3.82	)	$	(2.64	)	$	(2.64	)

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 0.6 million and 0.7 million for the three months ended October 31, 2020 and 2019, respectively.

Net Income Per Common Share

Net Loss per Share

Earnings per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net loss 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 October 31, 2020 and 2019 (in thousands, except per share amounts):

	Three Months Ended October 31,
	2020						2019
	Basic			Diluted			Basic			Diluted
Net loss per share:
Net loss attributable to Vail Resorts	$	(153,766	)	$	(153,766	)	$	(106,475	)	$	(106,475	)
Weighted-average Vail Shares outstanding	40,213			40,213			40,286			40,286
Weighted-average Exchangeco Shares outstanding	35			35			56			56
Total Weighted-average shares outstanding	40,248			40,248			40,342			40,342
Effect of dilutive securities	—			—			—			—
Total shares	40,248			40,248			40,342			40,342
Net loss per share attributable to Vail Resorts	$	(3.82	)	$	(3.82	)	$	(2.64	)	$	(2.64	)

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 0.6 million and 0.7 million for the three months ended October 31, 2020 and 2019, respectively.

Dividends

The Company did not pay cash dividends during the three months ended October 31, 2020. The Company paid cash dividends of $1.76 per share ($71.1 million in the aggregate) during the three months ended October 31, 2019.