Net Income Per Common Share

3 Months Ended

Oct. 31, 2017

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, 2017 and 2016 (in thousands, except per share amounts):



	Three Months Ended October 31,
	2017						2016
	Basic			Diluted			Basic			Diluted
Net loss per share:
Net loss attributable to Vail Resorts	$	(28,385	)	$	(28,385	)	$	(62,587	)	$	(62,587	)
Weighted-average Vail Shares outstanding	40,147			40,147			36,766			36,766
Weighted-average Exchangeco Shares outstanding	64			64			68			68
Total Weighted-average shares outstanding	40,211			40,211			36,834			36,834
Effect of dilutive securities	—			—			—			—
Total shares	40,211			40,211			36,834			36,834
Net loss per share attributable to Vail Resorts	$	(0.71	)	$	(0.71	)	$	(1.70	)	$	(1.70	)

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 1.3 million and 1.7 million for the three months ended October 31, 2017 and 2016, 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 (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 October 31, 2017 and 2016 (in thousands, except per share amounts):



	Three Months Ended October 31,
	2017						2016
	Basic			Diluted			Basic			Diluted
Net loss per share:
Net loss attributable to Vail Resorts	$	(28,385	)	$	(28,385	)	$	(62,587	)	$	(62,587	)
Weighted-average Vail Shares outstanding	40,147			40,147			36,766			36,766
Weighted-average Exchangeco Shares outstanding	64			64			68			68
Total Weighted-average shares outstanding	40,211			40,211			36,834			36,834
Effect of dilutive securities	—			—			—			—
Total shares	40,211			40,211			36,834			36,834
Net loss per share attributable to Vail Resorts	$	(0.71	)	$	(0.71	)	$	(1.70	)	$	(1.70	)

Dividends

The Company paid cash dividends of $1.053 and $0.81 per share ($42.6 million and $29.4 million in the aggregate) during the three months ended October 31, 2017 and 2016, respectively. On December 6, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $1.053 per share, for Vail Shares, payable on January 10, 2018 to stockholders of record as of December 27, 2017. Additionally, a Canadian dollar equivalent dividend on the Exchangeco Shares will be payable on January 10, 2018 to the shareholders of record on December 27, 2017.