Vail Resorts, Inc. (NYSE: MTN) stock fell over 9.1% in the last one week (Source: Finviz) as they are facing challenging conditions across the Western U.S. resorts for much of the ski season. The firm reported a lower than expected performance. The total Mountain net revenue increased 6.9% to $1.7 billion. Total skier visits increased to 2.5%. As per segment revenue the resort net revenue was $2 billion, an increase of 6.2%, compared to the prior year. Resort reported EBITDA was $616.6 million for fiscal 2018, an increase of $23.2 million, or 3.9%, compared to the prior year. Fiscal 2018 resort reported EBITDA includes $10.2 millions of acquisition and integration related expenses and $2.6 million of additional payroll taxes.
Net income of Vail Resorts was $379.9 million, or $9.13 per diluted share, compared to $210.6 million, or $5.22 per diluted share, in the previous year. Net income included a tax benefit of approximately $71.1 million or $1.71 earnings per diluted share related to employee exercises of equity awards primarily related to the CEO’s exercise of Stock Appreciation Rights.
The balance sheet continues to be very strong. The company ended the year with $178.1 million of cash on hand, $130 million of borrowings under the revolver portion of the senior credit facility and total long-term debt, including the long-term debt due within one-year of approximately $1.3 billion. At year-end, the net debt was 1.8 times trailing 12 months total reported EBITDA.
The company borrowed a $70 million on August 15, 2018, primarily to fund the Stevens Pass acquisition and on September 27, 2018, we borrowed an additional $195.6 million to fund the Triple Peaks acquisition. The net income of Vail Resorts is expected to be between $288 million and $335 million in fiscal 2019. The company’s guidance includes an estimated benefit between $32 million and $40 million from the reduction of our U.S. federal tax rate from 35% to 21% as a result of the U.S. tax reform.
At Heavenly, they are replacing the Galaxy two-person chairlift with a three-person chairlift to increase capacity and allow re-open 400 acres of high-quality intermediate terrain. At Vail, they have begun a multi-year investment in the resort’s snowmaking system to open more terrain earlier in the season.