Shares of Vail Resorts, Inc. (NYSE:MTN), the world’s largest operator of ski resorts, decreased in the quarter as growth in season pass sales decelerated, and underlying price increases were modestly below expectations. We expect lower-than-expected season pass sales, coupled with unexpectedly slow pre-holiday results, to modestly reduce EBITDA this year. While disappointing, we believe the company is still able to grow earnings at a double-digit rate over the long term. Cash flow generation is strong, which the company will use for dividend increases and accretive acquisitions.
From Ron Baron (Trades, Portfolio)'s fourth-quarter 2018 Baron Growth Fund shareholder letter.
