TomWhite
Unfortunately this doesn't appear to be a joke from Liftblog.
Vail Resorts Cancels All 2020 Lift Construction
April 1, 2020 Peter Landsman
Ski industry fallout from the global pandemic continues. Vail Resorts today announced the deferral of lift construction projects slated for Beaver Creek, Breckenridge, Keystone and Okemo due to a dramatic decline in revenue, which is expected to continue into 2021. The suite of projects was first announced last December, the same month COVID-19 first appeared in Wuhan, China. While the virus spread across Asia, lift manufacturers were gearing up to build lifts that now won’t happen this year. Beaver Creek had planned a major expansion into McCoy Park and Okemo earmarked a new bubble six pack for Jackson Gore. Both Breckenridge and Keystone planned new chairlifts to increase uphill capacity in high traffic areas.
McCoy Park, Beaver Creek’s deferred terrain expansion, would include two new lifts and 15 trails.
Vail said weeks ago coronavirus will cost the company between $180 and 200 million in March and April alone. Eliminating lift construction, terrain expansions and discretionary base area improvements will save the publicly-traded company $80 to 85 million while allowing the vast majority of maintenance capital projects to proceed. “The circumstances surrounding COVID-19 are unprecedented and the financial impact to our Company and the broader travel industry has been significant,” noted Rob Katz, Chief Executive Officer of Vail Resorts. “We are taking proactive steps to align our capital spending and return of capital approach to ensure that we remain positioned for long-term success.” Other actions announced today include the furlough of nearly all year-round hourly employees, suspension of the company’s shareholder dividend, salary reductions for non-hourly employees and elimination of cash compensation for the CEO and board of directors.
The decision to postpone lifts is a blow to both major lift manufacturers but particularly Leitner-Poma, which like Vail itself, is Colorado-based. The company had been awarded contracts to build three detachable chairlifts and move another. Doppelmayr USA had planned to install the two machines at Beaver Creek.
The second largest Vail project this summer was to be replacement of Quantum Four at Okemo with a larger bubble lift. The existing quad was slated to move over to Green Ridge.
As goes Vail, often go others. While I’m hopeful some lifts (and the jobs that come with them) are safe, more deferrals are possible. Rival Alterra Mountain Company plans to add only two lifts this year, both six place chairlifts at Mammoth Mountain. In tough times, every company is understandably revisiting capital budgets and commitments.
The sudden onset of such deep uncertainty in this critical period of the lift production cycle is unprecedented. With the elimination of Vail Resorts projects for 2020, announced US and Canada complete lift projects are down to 24, fewer than Doppelmayr built by itself last year.
Peter
I wouldn't joke about thousands of people losing their jobs.
TomWhite
Peter, SJ has a tradition of doing April Fools jokes. Actually, I faked a Liftblog article from you about Loon's new lift.
Peter
TomWhite;c-41310 wrotePeter, SJ has a tradition of doing April Fools jokes. Actually, I faked a Liftblog article from you about Loon's new lift.
I saw. All good! Crazy times we live in.
yardsale
Not just canceling lifts. There is a lot more to this unfortunately...
01 April 2020
Vail Resorts CEO Rob Katz today shared the following note with U.S. employees regarding difficult business decisions as a result of the ongoing impacts of COVID-19, including some that unfortunately affect the Company's U.S. employees:
We continue to find ourselves living through an unprecedented time as the situation with COVID-19 grows more challenging, with everyone across our planet now dealing with very real and significant health risks and impacts. This crisis has hit the travel industry particularly hard. Currently, all of our mountains, lodging, retail, and transportation businesses are shut down and it is becoming less clear when things will start to reopen again. We reported two weeks ago that the early closure of our North American operations will cost the Company at least $180 million to $200 million in lost profitability in our third quarter ending April.
I am very hopeful that both the economy and travel will return to normal by the time our North American winter season opens eight months from now. However, we also need to remember that we have substantial business operations set to open over the next few months - our Australian winter season, Grand Teton Lodge Company, as well as our lodging, retail, and summer mountain operations at our North American resorts, which collectively represent more than 20% of our total revenue. With the very real possibility that the global stay-at-home orders could be extended, and travel reduced regardless, our business in May through October is at risk. We will work hard to reopen as soon as practical, but much of this is now outside of our control.
Because of these realities and to ensure that we can navigate the financial challenges ahead, we are taking certain measures, including some that will unfortunately affect each of our U.S. employees:
We are furloughing nearly all of our U.S year-round hourly employees as of April 4, 2020, for at least the next one to two months, without pay, but with full healthcare coverage for any impacted employee currently enrolled (the Company will pay all premiums).
We are implementing a six-month salary reduction for all U.S. salaried employees that starts at 5% for those up to Grade 27, 7.5% for Grades 28/29, 10% for Grades 30/31, and then rises up to a 25% reduction for our most senior executives.
I am giving up 100% of my salary during the next six months.
We are eliminating 100% of the cash compensation for members of our Board of Directors for six months.
We are suspending the Company’s 401(k) match for the next six months.
We are reducing our capital expenditures by $80-$85 million, with the intention to defer all new chair lifts, terrain expansions and other mountain improvements, while protecting the vast majority of our maintenance capital spending.
We are eliminating our June and September dividends to shareholders, saving the Company more than $140 million.
I recognize this is very disappointing news to be receiving and I had hoped we would not have to take this action. But with each passing week, the financial consequences have become more apparent. To our year-round hourly employees, I am so disappointed that the vast majority of you have not been able to work these past three weeks and I assure you we will end the furlough as soon as possible once we have clarity on our business reopening. To our year-round salaried employees, who are working from home, in many cases harder than ever, I truly am sorry to have to ask you to give even more by accepting a salary reduction - we are asking everyone to accept some sacrifice so that we weather this storm together and are ready to come back strong for next winter. For those of you with questions, your leader will be reaching out to discuss the situation with you over the coming days.
I am sure many of you are wondering if these actions will be enough. Will there be more changes coming? Once again, if I am honest with myself, I have to give the toughest answer for any CEO - I really don’t know. It’s possible that things could quickly improve. But it’s also possible these challenges may force us to materially delay or cancel our upcoming summer season. In that case, more measures might be needed.
I have made decisions over the last few weeks that I never could have anticipated in my nearly 30 years working in the ski business. I recognize the impact of today’s decisions on you, and I do not take them lightly. I am humbled and grateful for your passion and dedication to each other, our communities and our industry – it's what makes our sport and this Company so special. Please know, I am fully committed to help steward our Company and our entire industry forward so we can all continue to thrive in the mountains for years to come. During this challenging time, please continue to prioritize your health, safety and wellbeing.
Rob
sugarloaf
I follow Thredbo Australia during the Summer season here. They are already discussing the possibility that they might not open this season. The season in Australia is still 2 months away, so alot could change for better or worse.
TomWhite
I'm surprised Ropeways posted this the day after Vail's announcement. I thought most of Vail's new lifts were to be L-P? Maybe I'm wrong.
ropeways.net | Home | 2020-04-02
Leitner-Poma is hiring ski lift installers
2020 CO Locations: Aspen Snowmass, Keystone, Breckenridge, A basin
2020 Other Locations: Arizona Snowbowl, Okemo Vermont
JOB SUMMARY
Leitner-Poma of America, one of the leading ski lift installation companies in the world, is seeking qualified individuals to assist with upcoming installation projects this Summer 2020. These are unique projects requiring employees to have the ability to hike up the mountain each day to the job site and physically work for 9+ hours a day. Ideal candidates would have a wide range of experience in mechanics, excavation and concrete, as well as heavy equipment. The Ski Lift Installers would report to a Project Manager assisting them with assembling machinery, surveying, excavating, and pouring concrete for the foundation, and overall installation of the ski lifts.
ESSENTIAL DUTIES AND RESPONSIBILITIES o Excavate and pour concrete for the foundation o Assemble Machinery o Assist in Rigging operations o Properly operate a variety of hand and power tools o Perform Helicopter work to include hooking loads underneath and receiving on the other end o Safely perform all duties of this position without significant risks to self or others o Follow proper safety and incident-reporting procedures o Clean and prepare job sites
JOB REQUIREMENTS/QUALIFICATIONS o Previous construction and heavy equipment experience preferred o Previous ski lift experience preferred
COMPETENCIES, SKILLS & ABILITIES o Ability to work at high elevation up to 13,000 ft o Ability to work at Tower Height o Ability to work in severe weather conditions such as extreme heat and extreme cold on the mountains o Ability to stand and physically work with power tools, cranes, heavy loads, and misc. heavy machinery for anywhere from 8-12 hours a day, 5-7 days a week o Ability to lift heavy objects (up to 50lbs), walk and stand for long periods of time, and perform strenuous physical labor under adverse field conditions o Proficient Communication o Teamwork Orientation
Job Type: Temporary
Salary: $16.00 to $22.00 /hour
Experience: construction: 1 year (Preferred)
License: Drivers (Preferred)
Benefits: None
This Job Is: A good fit for applicants with gaps in their resume, or who have been out of the workforce for the past 6 months or more
Open to applicants who do not have a college diploma
Schedule: Monday to Friday
10 hour shift
Peter
TomWhite;c-41317 wroteI'm surprised Ropeways posted this the day after Vail's announcement. I thought most of Vail's new lifts were to be L-P? Maybe I'm wrong.
You are not wrong. Shows how quickly everything changed.
lotsoskiing
Saves a ton of dough and from what I know the installs were not for critical maintenance/replacement needs.
ski_it
Except for the one Attitash needs to have ordered
lotsoskiing
ski_it;c-41320 wroteExcept for the one Attitash needs to have ordered
sorry, I meant the Vail ones.
ski_it
They are Vail... I know what you meant. They need to show NH some love
tedede
ski_it;c-41320 wroteExcept for the one Attitash needs to have ordered
Even without the virus, Vail wouldn't be doing any capital improvements on any Peak resorts this spring. They budget capital improvements a full year in advance of the season end.
I heard at Crotched they were going to replace the comms cable on the Rocket, as well as some improvements to snowmaking. The only major changes I still see happening is switching over Peak's systems and processes to the ones Vail specifies.
FWIW, while I work for part-time for Vail, I certainly don't speak for them.
lotsoskiing
ski_it;c-41324 wroteThey are Vail... I know what you meant. They need to show NH some love
Didn't know that.
rickbolger
Prior to all of this, Vail Resorts Inc. (MTN) was a stock I would buy and sell here and there, it was a pretty easy way to make a quick couple bucks/share as it reliably bumped along in the $230-$250 range for a couple months.
While everything started draining I hit a stop loss and bailed, and it was tough to swallow. At that point somebody (not here) said "it will be worthwhile when it gets down to $140."
And I thought, good grief, that would be great to get back in at $140 after cashing out, but it's wishful thinking.
As they say, be careful what you wish for, today it hit $130 and I think the drain is still spinning.
