- Strong second quarter results exceed prior guidance
- GES show performance and client spend remain strong; raising
full year outlook
- Pursuit experiencing stronger guest demand; wildfires in
Jasper bring uncertainty to full year outlook
Viad Corp (NYSE: VVI), a leading global provider of
extraordinary experiences, including attractions, hospitality,
exhibition services, and experiential marketing, today reported
results for the 2024 second quarter.
Steve Moster, Viad’s President and Chief Executive Officer,
commented, “We delivered very strong second quarter results that
exceeded our expectations. Both Pursuit and GES have seen
significant demand for our extraordinary experiences and achieved
remarkable results. Pursuit's 14% revenue growth during the quarter
was largely driven by strong performance from our attractions, with
a 15% increase in visitors at higher effective ticket prices. GES
continues to deliver solid profitable growth primarily from
stronger high-margin corporate client spending and disciplined cost
management.”
Financial Highlights
Three months ended June
30,
(in millions, except per share data)
2024
2023
$ Change
% Change
Revenue
$
378.5
$
320.3
$
58.2
18.2%
Pursuit Revenue
101.2
88.5
12.7
14.4%
GES Revenue
277.3
231.8
45.5
19.6%
Net Income Attributable to Viad
$
29.3
$
11.0
$
18.4
**
Adjusted Net Income*
29.2
11.8
17.4
**
Diluted EPS Attributable to
Viad
$
0.97
$
0.33
$
0.64
**
Adjusted Diluted EPS*
0.97
0.36
0.61
**
Consolidated Adjusted EBITDA*
$
64.3
$
42.9
$
21.5
50.1%
Pursuit Adjusted EBITDA*
23.7
19.5
4.2
21.5%
GES Adjusted EBITDA*
44.4
26.8
17.6
65.4%
Corporate Adjusted EBITDA*
(3.8)
(3.5)
(0.3)
(8.5%)
* Refer to Table Two of this press release
for a discussion and reconciliation of this non-GAAP financial
measure to its most directly comparable GAAP financial measure.
** Change is greater than +/- 100
percent
In addition to the commentary below, further information
regarding our financial results, trends, and outlook are available
in a supplemental earnings presentation, which can be accessed on
the “Investors” section of our website, and in the financial tables
accompanying this press release.
Second Quarter Results
- Revenue of $378.5 million increased $58.2 million (18.2%) from
the 2023 second quarter.
- Pursuit revenue of $101.2 million increased $12.7 million
(14.4%) year-over-year due to growth across our collections of
properties, with particularly strong demand for our attractions and
contribution from Flyover Chicago (opened March 2024).
- GES revenue of $277.3 million increased $45.5 million (19.6%)
year-over-year primarily due to new client wins and continued
underlying growth.
- Net income attributable to Viad of $29.3 million increased
$18.4 million and adjusted net income* of $29.2 million improved
$17.4 million from the 2023 second quarter primarily due to
stronger business performance from both GES and Pursuit, partially
offset by higher depreciation expense.
- Consolidated adjusted EBITDA* of $64.3 million increased $21.5
million from the 2023 second quarter.
- Pursuit adjusted EBITDA* of $23.7 million increased $4.2
million year-over-year primarily due to stronger revenue and
improved margin.
- GES adjusted EBITDA of $44.4 million increased $17.6 million
year-over-year primarily driven by higher revenue and significant
margin expansion.
Cash Flow and Balance Sheet Highlights
- Our cash flow from operations was an inflow of about $20
million for the second quarter.
- Our capital expenditures for the second quarter totaled
approximately $17 million, comprising $14.4 million for Pursuit
(inclusive of about $6 million for growth projects) and $2.7
million for GES.
- Our debt proceeds (net) totaled $2.5 million for the second
quarter.
- Our total liquidity was $128.4 million at June 30, 2024,
comprising cash and cash equivalents of $49.0 million and $79.4
million of capacity available on our revolving credit
facility.
- Our debt was $490.9 million, and our net leverage ratio was 2.4
at the end of the second quarter.
Jasper Wildfire Update
As we previously reported by 8-K, Jasper National Park was
closed and evacuated on July 22, 2024, and a wildfire entered the
Jasper townsite on July 24, 2024. The Municipality of Jasper
reported that about 70% of the town, including homes, businesses
and hotels were thankfully untouched by fire and are intact. All
critical municipal infrastructure was successfully protected, and
power is being restored as authorities work to safely re-open the
town.
All Pursuit hotels and experiences in the Jasper townsite, as
well as our Pyramid Lake Lodge, Miette Mountain Cabins, and Maligne
Lake Boat Cruise were not reached by the fire and remain intact.
Our known property losses have been limited to the Maligne Canyon
Wilderness Kitchen, a restaurant and retail operation about 3 miles
outside the town of Jasper.
The majority of the park, including the town of Jasper, remains
closed as authorities continue work to control the fire and restore
critical services to the Jasper townsite. Parks Canada communicated
that if current conditions continue, visitor services in the park
are expected to resume September 3, 2024.
We are working with our insurance carriers to determine the
extent of potential recoveries from our policies, which will be
highly fact determinative based on what we learn when we and our
insurance adjusters are able to access our properties.
2024 Outlook
Steve Moster, Viad’s President and Chief Executive Officer,
said, “Given our stronger than expected performance during the
first half of 2024 and the favorable underlying demand trends we
are seeing, we were prepared to raise our full year guidance.
However, following the Jasper wildfire activity, which resulted in
the temporary closure of our properties in the area, we are
providing revised guidance for Pursuit that estimates the potential
impact. For GES, we are raising our full year Adjusted EBITDA
guidance range by $5 million.”
Our guidance for Viad consolidated, Pursuit, and GES is below.
Pursuit's guidance range assumes Jasper National Park re-opens on
September 3 and is subject to change due to the evolving wildfire
situation. We will update as appropriate during the third
quarter.
(in millions)
Third Quarter
Full Year
Viad
Consolidated
Revenue
$418 to $463
Up high-single digits
Adjusted EBITDA
$87 to $105
$151 to $176
Cash flow from Operations
$70 to $80
$80 to $100
Capital Expenditures
$14 to $19
(including growth capex of
~$4)
$65 to $70
(including growth capex of
~$20)
Effective Tax Rate
11% to 12%
28% to 29%
Pursuit
Revenue
$160 to $185
In line with prior year
Adjusted EBITDA
$75 to $90
$80 to $95
GES
Revenue
$258 to $278
Up low-double digits
Adjusted EBITDA
$15 to $19
$85 to $95
Conference Call Details
Management will host a conference call to review second quarter
2024 results on Tuesday, August 6, 2024, at 5 p.m. (Eastern
Time).
The conference call can be accessed with operator assistance by
calling (404) 975-4839 or (833) 470-1428 and entering the access
code 153001.
To avoid wait time and bypass speaking with an operator to join
the call, participants can pre-register using the following
registration link:
https://www.netroadshow.com/events/login?show=e6b43f98&confId=68140.
After registering, a calendar invitation will be sent that includes
dial-in information as well as unique codes for entry into the live
call. We recommend that you register in advance to ensure access
for the full call.
A live audio webcast of the call will also be available in
listen-only mode through the “Investors” section of our website. A
replay of the webcast will be available on our website shortly
after the call and, for a limited time, by calling (929) 458-6194
or (866) 813-9403 and entering the access code 573476.
Additionally, we posted a supplemental earnings presentation,
containing our financial results, trends and outlook, on the
“Investors” section of our website prior to the conference call. We
will refer to this presentation during the call.
About Viad
Viad (NYSE: VVI) is a leading global provider of extraordinary
experiences, including attractions, hospitality, exhibition
services, and experiential marketing through two businesses:
Pursuit and GES. Our business strategy focuses on delivering
extraordinary experiences for our teams, clients and guests, and
significant and sustainable growth and above-market returns for our
shareholders. Viad is an S&P SmallCap 600 company.
Pursuit is a global attractions and hospitality company that
owns and operates a collection of inspiring and unforgettable
experiences in iconic destinations. Pursuit’s elevated hospitality
experiences enable visitors to discover and connect with
world-class attractions, distinctive lodges, and engaging tours in
stunning national parks and renowned global travel locations, in
addition to experiencing our collection of Flyover Attractions in
the vibrant cities of Vancouver, Reykjavik, Las Vegas, and
Chicago.
GES is a global exhibition services and experiential marketing
company offering a comprehensive range of services to the world’s
leading event organizers and brands through two reportable
segments, GES Exhibitions and Spiro. GES Exhibitions is a global
exhibition and trade show management business that partners with
leading exhibition and conference organizers as a full-service
provider of strategic and logistics solutions to manage the
complexity of their shows with teams throughout North America,
Europe, and the Middle East. Spiro is a global experiential
marketing agency that partners with leading brands around the world
to manage and elevate their experiential marketing activities,
bonding brand and customer.
For more information, visit www.viad.com.
Forward-Looking Statements
This press release contains a number of forward-looking
statements. Words, and variations of words, such as “will,” “may,”
“expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,”
“estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,”
“target,” “outlook,” and similar expressions are intended to
identify our forward-looking statements. Similarly, statements that
describe our business strategy, outlook, objectives, plans,
intentions, or goals also are forward-looking statements. These
forward-looking statements are not historical facts and are subject
to a host of risks and uncertainties, many of which are beyond our
control, which could cause actual results to differ materially from
those in the forward-looking statements.
Important factors that could cause actual results to differ
materially from those described in our forward-looking statements
include, but are not limited to, the following:
- general economic uncertainty in key global markets and a
worsening of global economic conditions;
- travel industry disruptions;
- the impact of our overall level of indebtedness, as well as our
financial covenants, on our operational and financial
flexibility;
- seasonality of our businesses;
- unanticipated delays and cost overruns of our capital projects,
and our ability to achieve established financial and strategic
goals for such projects;
- the importance of key members of our account teams to our
business relationships;
- our ability to manage our business and continue our growth if
we lose any of our key personnel;
- the competitive nature of the industries in which we
operate;
- our dependence on large exhibition event clients;
- adverse effects of show rotation on our periodic results and
operating margins;
- transportation disruptions and increases in transportation
costs;
- natural disasters, weather conditions, accidents, and other
catastrophic events;
- our exposure to labor cost increases and work stoppages related
to unionized employees;
- our multi-employer pension plan funding obligations;
- our ability to successfully integrate and achieve established
financial and strategic goals from acquisitions;
- our exposure to cybersecurity attacks and threats;
- our exposure to currency exchange rate fluctuations;
- liabilities relating to prior and discontinued operations;
- sufficiency and cost of insurance coverage; and
- compliance with laws governing the storage, collection,
handling, and transfer of personal data and our exposure to legal
claims and fines for data breaches or improper handling of such
data.
For a more complete discussion of the risks and uncertainties
that may affect our business or financial results, please see Item
1A, “Risk Factors,” of our most recent annual report on Form 10-K
filed with the SEC. We disclaim and do not undertake any obligation
to update or revise any forward-looking statement in this press
release except as required by applicable law or regulation.
Forward-Looking Non-GAAP Measures
The company has not quantitatively reconciled its guidance for
adjusted EBITDA to its respective most comparable GAAP financial
measure because certain reconciling items that impact this metric,
including provision for income taxes, interest expense,
restructuring or impairment charges, transaction-related costs, and
attraction start-up costs have not occurred, are out of the
company’s control, or cannot be reasonably predicted. Accordingly,
reconciliations to the nearest GAAP financial measure are not
available without unreasonable effort. Please note that the
unavailable reconciling items could significantly impact the
company’s results as reported under GAAP.
VIAD CORP
TABLE ONE - QUARTERLY RESULTS
(UNAUDITED)
Three months ended June
30,
Six months ended June
30,
(in thousands, except per share data)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Revenue:
Pursuit
$
101,201
$
88,474
$
12,727
14.4%
$
138,432
$
121,137
$
17,295
14.3%
GES:
Spiro
99,132
80,368
18,764
23.3%
160,380
140,730
19,650
14.0%
GES Exhibitions
180,977
154,534
26,443
17.1%
356,817
324,031
32,786
10.1%
Inter-segment eliminations
(2,772
)
(3,065
)
293
9.6%
(3,594
)
(4,796
)
1,202
25.1%
Total GES
277,337
231,837
45,500
19.6%
513,603
459,965
53,638
11.7%
Total
$
378,538
$
320,311
$
58,227
18.2%
$
652,035
$
581,102
$
70,933
12.2%
Segment operating income
(loss):
Pursuit
$
12,638
$
9,811
$
2,827
28.8%
$
(11,193
)
$
(9,301
)
$
(1,892
)
-20.3%
GES:
Spiro
17,517
8,279
9,238
**
21,518
11,453
10,065
87.9%
GES Exhibitions
23,282
15,354
7,928
51.6%
34,639
25,764
8,875
34.4%
Total GES
40,799
23,633
17,166
72.6%
56,157
37,217
18,940
50.9%
Total
$
53,437
$
33,444
$
19,993
59.8%
$
44,964
$
27,916
$
17,048
61.1%
Corporate eliminations
16
16
-
0.0%
32
32
-
0.0%
Corporate activities (Note A)
(5,422
)
(3,511
)
(1,911
)
(54.4%)
(9,855
)
(6,676
)
(3,179
)
-47.6%
Gain on sale of ON Services
-
(204
)
204
(100.0%)
-
(204
)
204
-100.0%
Restructuring (charges) recoveries
825
(192
)
1,017
**
709
(645
)
1,354
**
Other expense, net
(442
)
(448
)
6
1.3%
(880
)
(979
)
99
10.1%
Net interest expense
(12,585
)
(12,356
)
(229
)
(1.9%)
(24,430
)
(24,605
)
175
0.7%
Income (loss) from continuing operations
before income taxes
35,829
16,749
19,080
**
10,540
(5,161
)
15,701
**
Income tax expense (Note B)
(5,851
)
(5,028
)
(823
)
(16.4%)
(6,738
)
(4,450
)
(2,288
)
-51.4%
Income (loss) from continuing
operations
29,978
11,721
18,257
**
3,802
(9,611
)
13,413
**
Income (loss) from discontinued
operations
900
(143
)
1,043
**
833
(201
)
1,034
**
Net income (loss)
30,878
11,578
19,300
**
4,635
(9,812
)
14,447
**
Net income attributable to noncontrolling
interest
(1,807
)
(903
)
(904
)
**
(884
)
(505
)
(379
)
-75.0%
Net loss attributable to redeemable
noncontrolling interest
240
286
(46
)
(16.1%)
443
409
34
8.3%
Net income (loss) attributable to
Viad
$
29,311
$
10,961
$
18,350
**
$
4,194
$
(9,908
)
$
14,102
**
Amounts Attributable to Viad:
Income (loss) from continuing
operations
$
28,411
$
11,104
$
17,307
**
$
3,361
$
(9,707
)
$
13,068
**
Income (loss) from discontinued
operations
900
(143
)
1,043
**
833
(201
)
1,034
**
Net income (loss)
$
29,311
$
10,961
$
18,350
**
$
4,194
$
(9,908
)
$
14,102
**
Income (loss) per common share
attributable to Viad (Note C):
Basic income (loss) per common share
$
0.98
$
0.33
$
0.65
**
$
0.01
$
(0.66
)
$
0.67
**
Diluted income (loss) per common share
$
0.97
$
0.33
$
0.64
**
$
0.01
$
(0.66
)
$
0.67
**
Weighted-average common shares
outstanding:
Basic weighted-average outstanding common
shares
21,126
20,840
286
1.4%
21,078
20,796
282
1.4%
Additional dilutive shares related to
share-based compensation
395
135
260
**
389
-
389
**
Diluted weighted-average outstanding
common shares
21,521
20,975
546
2.6%
21,467
20,796
671
3.2%
Adjusted EBITDA* by Reportable
Segment:
Pursuit
$
23,678
$
19,482
$
4,196
21.5%
$
12,530
$
9,167
$
3,363
36.7%
GES:
Spiro
18,101
8,940
9,161
**
22,741
12,677
10,064
79.4%
GES Exhibitions
26,313
17,905
8,408
47.0%
40,588
30,912
9,676
31.3%
Total GES
44,414
26,845
17,569
65.4%
63,329
43,589
19,740
45.3%
Corporate
(3,764
)
(3,470
)
(294
)
(8.5%)
(7,220
)
(6,507
)
(713
)
-11.0%
Consolidated Adjusted EBITDA
$
64,328
$
42,857
$
21,471
50.1%
$
68,639
$
46,249
$
22,390
48.4%
Capitalization Data:
Cash and cash equivalents
$
48,981
$
53,179
$
(4,198
)
(7.9%)
Total debt
490,936
477,876
13,060
2.7%
Viad shareholders' equity
37,707
16,487
21,220
**
Non-controlling interests (redeemable and
non-redeemable)
88,968
88,216
752
0.9%
Convertible Series A Preferred Stock (Note
D):
Convertible preferred stock (including
accumulated dividends paid in kind)***
141,827
141,827
-
0.0%
Equivalent number of common shares
6,674
6,674
-
0.0%
* Refer to Table Two for a discussion and
reconciliation of this non-GAAP financial measure to its most
directly comparable GAAP financial measure.
** Change is greater than +/- 100
percent
*** Amount shown excludes transaction
costs, which are netted against the value of the preferred shares
when presented on Viad's balance sheet.
VIAD CORP
TABLE ONE - NOTES TO QUARTERLY
RESULTS (UNAUDITED)
(A) Corporate Activities - The increase in
corporate activities is primarily due to increased consulting
costs.
(B) Income tax expense – The effective tax
rate was 16.3% for the three months ended June 30, 2024, 30.0% for
the three months ended June 30, 2023, 63.9% for the six months
ended June 30, 2024, and a negative 86.2% for six months ended June
30, 2023. The effective tax rates differed from the 21% federal
rate as we do not recognize a tax benefit primarily on losses in
the United States where we have a valuation allowance. For the six
months ended June 30, 2024, we also recorded a $1.1 million benefit
for the release of the valuation allowance recorded on the United
Kingdom’s tax loss carryforwards, offset by a $0.5 million expense
during the first quarter of 2024 to record estimated withholding
taxes associated with repatriating Sky Lagoon’s earnings and a
valuation allowance against the tax credit generated from this
withholding tax. The effective tax rate for the six months ended
June 30, 2023, was further impacted by the release of a valuation
allowance of $2.1 million during the first quarter of 2023 on
deferred tax assets associated with certain separate state filings,
which more than offset taxes due in jurisdictions without a
valuation allowance.
(C) Income (Loss) per Common Share — We
apply the two-class method in calculating income (loss) per common
share as preferred stock and unvested share-based payment awards
that contain nonforfeitable rights to dividends are considered
participating securities. Accordingly, such securities are included
in the earnings allocation in calculating income per share.
Diluted income (loss) per common share is
calculated using the more dilutive of the two-class method or
as-converted method. The two-class method uses net income (loss)
available to common stockholders and assumes conversion of all
potential shares other than participating securities. The
as-converted method uses net income (loss) available to common
shareholders and assumes conversion of all potential shares
including participating securities. Dilutive potential common
shares include outstanding stock options, unvested restricted share
units and convertible preferred stock.
The components of basic and diluted income
(loss) per share are as follows:
Three months ended June
30,
Six months ended June
30,
(in thousands)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Net income (loss) attributable to
Viad
$
29,311
$
10,961
$
18,350
**
$
4,194
$
(9,908
)
$
14,102
**
Convertible preferred stock dividends
(1,950
)
(1,950
)
-
0.0%
(3,900
)
(3,900
)
-
0.0%
Undistributed income (loss) attributable
to Viad
27,361
9,011
18,350
**
294
(13,808
)
14,102
**
Less: Allocation to participating
securities
(6,569
)
(2,186
)
(4,382
)
**
(71
)
-
(71
)
**
Net income (loss) allocated to Viad
common shareholders (basic)
$
20,792
$
6,825
$
13,968
**
$
223
$
(13,808
)
$
14,031
**
Add: Allocation to participating
securities
92
11
81
**
1
-
1
**
Net income (loss) allocated to Viad
common shareholders (diluted)
$
20,884
$
6,836
$
14,048
**
$
224
$
(13,808
)
$
14,032
**
Basic weighted-average outstanding
common shares
21,126
20,840
286
1.4%
21,078
20,796
282
1.4%
Additional dilutive shares related to
share-based compensation
395
135
260
**
389
-
389
**
Diluted weighted-average outstanding
common shares
21,521
20,975
546
2.6%
21,467
20,796
671
3.2%
** Change is greater than +/- 100
percent
(D) Convertible Series A Preferred Stock —
On August 5, 2020, we entered into an Investment Agreement with
funds managed by private equity firm Crestview Partners, relating
to the issuance of 135,000 shares of newly issued Convertible
Series A Preferred Stock, par value $0.01 per share, for an
aggregate purchase price of $135 million or $1,000 per share. The
Convertible Series A Preferred Stock carries a 5.5% cumulative
quarterly dividend, which is payable in cash or in-kind at Viad’s
option and is convertible into shares of our common stock at a
conversion price of $21.25 per share.
VIAD CORP
TABLE TWO - NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
IMPORTANT DISCLOSURES REGARDING
NON-GAAP FINANCIAL MEASURES
This document includes the presentation of
"Adjusted Net Income (Loss)", "Adjusted EBITDA", "Segment Operating
Income (Loss)", and "Adjusted Segment Operating Income (Loss)",
which are supplemental to results presented under accounting
principles generally accepted in the United States of America
(“GAAP”) and may not be comparable to similarly titled measures
presented by other companies. These non-GAAP measures are utilized
by management to facilitate period-to-period comparisons and
analysis of Viad’s operating performance and should be considered
in addition to, but not as substitutes for, other similar measures
reported in accordance with GAAP. The use of these non-GAAP
financial measures is limited, compared to the GAAP measure of net
income attributable to Viad, because they do not consider a variety
of items affecting Viad’s consolidated financial performance as
reconciled below. Because these non-GAAP measures do not consider
all items affecting Viad’s consolidated financial performance, a
user of Viad’s financial information should consider net income
attributable to Viad as an important measure of financial
performance because it provides a more complete measure of the
Company’s performance.
Adjusted Net Income (Loss), Segment
Operating Income (Loss), and Adjusted Segment Operating Income
(Loss) are considered useful operating metrics, in addition to net
income attributable to Viad, as potential variations arising from
non-operational expenses/income are eliminated, thus resulting in
additional measures considered to be indicative of Viad’s
performance. Management believes that the presentation of Adjusted
EBITDA provides useful information to investors regarding Viad’s
results of operations for trending, analyzing and benchmarking the
performance and value of Viad’s business. Management also believes
that the presentation of Adjusted EBITDA for acquisitions and other
major capital projects enables investors to assess how effectively
management is investing capital into major corporate development
projects, both from a valuation and return perspective.
Three months ended June
30,
Six months ended June
30,
(in thousands, except per share data)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Adjusted net income (loss):
Net income (loss) attributable to Viad
$
29,311
$
10,961
$
18,350
**
$
4,194
$
(9,908
)
$
14,102
**
(Income) loss from discontinued operations
attributable to Viad
(900
)
143
(1,043
)
**
(833
)
201
(1,034
)
**
Income (loss) from continuing operations
attributable to Viad
28,411
11,104
17,307
**
3,361
(9,707
)
13,068
**
Gain on sale of ON Services
-
204
(204
)
(100.0%)
-
204
(204
)
-100.0%
Restructuring charges (recoveries),
pre-tax
(825
)
192
(1,017
)
**
(709
)
645
(1,354
)
**
Transaction-related costs and other
non-recurring expenses, pre-tax (Note A)
1,682
465
1,217
**
4,559
1,311
3,248
**
Remeasurement of finance lease obligation
attributable to Viad, pre-tax (Note B)
(93
)
(184
)
91
49.5%
419
(823
)
1,242
**
Tax expense (benefit) on above items
31
60
(29
)
(48.3%)
(170
)
309
(479
)
**
Favorable tax matters
-
-
-
**
-
(2,103
)
2,103
-100.0%
Adjusted net income (loss)
$
29,206
$
11,841
$
17,365
**
$
7,460
$
(10,164
)
$
17,624
**
Adjusted diluted EPS:
Adjusted net income (loss) (as reconciled
above)
$
29,206
$
11,841
$
17,365
**
$
7,460
$
(10,164
)
$
17,624
**
Convertible preferred stock dividends
(1,950
)
(1,950
)
-
0.0%
(3,900
)
(3,900
)
-
0.0%
Undistributed adjusted net income (loss)
attributable to Viad (Note C)
27,256
9,891
17,365
**
3,560
(14,064
)
17,624
**
Less: Allocation to participating
securities (Note D)
(6,452
)
(2,388
)
(4,064
)
**
(844
)
-
(844
)
**
Diluted adjusted net income (loss)
allocated to Viad common shareholders
$
20,804
$
7,503
$
13,301
**
$
2,716
$
(14,064
)
$
16,780
**
Diluted weighted-average outstanding
common shares
21,521
20,975
546
2.6%
21,467
20,796
671
3.2%
Adjusted diluted EPS
$
0.97
$
0.36
$
0.61
**
$
0.13
$
(0.68
)
$
0.81
**
** Change is greater than +/- 100
percent
(A) Transaction-related costs and other
non-recurring expenses include:
Three months ended June 30,
Six months ended June 30,
(in thousands)
2024
2023
2024
2023
Acquisition integration costs -
Pursuit1
$
-
$
-
$
-
$
30
Transaction-related costs - Pursuit1
49
42
52
74
Transaction-related costs - Corporate2
1,550
6
2,409
3
Attraction start-up costs1, 3
20
417
1,960
1,109
Other non-recurring expenses2, 4
63
-
138
95
Transaction-related and other
non-recurring expenses, pre-tax
$
1,682
$
465
$
4,559
$
1,311
1 Included in segment operating loss
2 Included in corporate activities
3 Includes costs primarily related to the
development of Pursuit's new FlyOver attraction in Chicago.
4 Includes non-capitalizable fees and
expenses related to Viad’s shelf registration in 2024 and Viad’s
credit facility refinancing efforts in 2023.
(B) Remeasurement of finance lease
obligation attributable to Viad represents the non-cash foreign
exchange loss/(gain) included within Cost of Services related to
the periodic remeasurement of the Sky Lagoon finance lease
obligation that is attributed to Viad’s 51% interest in Sky
Lagoon.
(C) We exclude the adjustment to the
redemption value of redeemable noncontrolling interest from the
calculation of adjusted net income (loss) per share as it is a
non-cash adjustment that does not affect net income or loss
attributable to Viad.
(D) Preferred stock and unvested
share-based payment awards that contain nonforfeitable rights to
dividends are considered participating securities. Accordingly,
such securities are included in the earnings allocation in
calculating adjusted net income (loss) per common share unless the
effect of such inclusion is anti-dilutive. The following table
provides the share data used for calculating the allocation to
participating securities if applicable:
Three months ended June 30,
Six months ended June 30,
(in thousands)
2024
2023
2024
2023
Weighted-average outstanding common
shares
21,521
20,975
21,467
20,796
Effect of participating convertible
preferred shares (if applicable)
6,674
6,674
6,674
-
Effect of participating non-vested shares
(if applicable)
-
-
-
-
Weighted-average shares including effect
of participating interests (if applicable)
28,195
27,649
28,141
20,796
VIAD CORP
TABLE TWO - NON-GAAP FINANCIAL
MEASURES CONTINUED (UNAUDITED)
Three months ended June
30,
Six months ended June
30,
($ in thousands)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Viad Consolidated:
Revenue
$
378,538
$
320,311
$
58,227
18.2%
$
652,035
$
581,102
$
70,933
12.2%
Net income (loss) attributable to Viad
$
29,311
$
10,961
$
18,350
**
$
4,194
$
(9,908
)
$
14,102
**
Net income attributable to noncontrolling
interest
1,807
903
904
**
884
505
379
75.0%
Net loss attributable to redeemable
noncontrolling interest
(240
)
(286
)
46
16.1%
(443
)
(409
)
(34
)
-8.3%
(Income) loss from discontinued
operations
(900
)
143
(1,043
)
**
(833
)
201
(1,034
)
**
Net interest expense
12,585
12,356
229
1.9%
24,430
24,605
(175
)
-0.7%
Income tax expense
5,851
5,028
823
16.4%
6,738
4,450
2,288
51.4%
Depreciation and amortization
14,797
12,804
1,993
15.6%
28,117
25,279
2,838
11.2%
Gain on sale of ON Services
-
204
(204
)
(100.0%)
-
204
(204
)
-100.0%
Restructuring charges (recoveries)
(825
)
192
(1,017
)
**
(709
)
645
(1,354
)
**
Other expense, net
442
448
(6
)
(1.3%)
880
979
(99
)
-10.1%
Start-up costs (A)
20
417
(397
)
(95.2%)
1,960
1,109
851
76.7%
Transaction-related costs
1,599
48
1,551
**
2,461
77
2,384
**
Integration costs
-
-
-
**
-
30
(30
)
-100.0%
Other non-recurring expenses (B)
63
-
63
**
138
95
43
45.3%
Remeasurement of finance lease obligation
(C)
(182
)
(361
)
179
49.6%
822
(1,613
)
2,435
**
Consolidated Adjusted EBITDA
$
64,328
$
42,857
$
21,471
50.1%
$
68,639
$
46,249
$
22,390
48.4%
Adjusted EBITDA attributable to
noncontrolling interest
(3,824
)
(2,781
)
(1,043
)
(37.5%)
(5,043
)
(3,426
)
(1,617
)
-47.2%
Consolidated Adjusted EBITDA
attributable to Viad
$
60,504
$
40,076
$
20,428
51.0%
$
63,596
$
42,823
$
20,773
48.5%
Consolidated Adjusted EBITDA by
Business:
Pursuit
$
23,678
$
19,482
$
4,196
21.5%
$
12,530
$
9,167
$
3,363
36.7%
Total GES
44,414
26,845
17,569
65.4%
63,329
43,589
19,740
45.3%
Total
68,092
46,327
21,765
47.0%
75,859
52,756
23,103
43.8%
Corporate EBITDA (D)
(3,764
)
(3,470
)
(294
)
(8.5%)
(7,220
)
(6,507
)
(713
)
-11.0%
Consolidated Adjusted EBITDA
$
64,328
$
42,857
$
21,471
50.1%
$
68,639
$
46,249
$
22,390
48.4%
Pursuit Adjusted EBITDA:
Revenue
$
101,201
$
88,474
$
12,727
14.4%
$
138,432
$
121,137
$
17,295
14.3%
Cost of services and products
(88,563
)
(78,663
)
(9,900
)
(12.6%)
(149,625
)
(130,438
)
(19,187
)
-14.7%
Segment operating income (loss)
12,638
9,811
2,827
28.8%
(11,193
)
(9,301
)
(1,892
)
-20.3%
Depreciation
9,942
8,279
1,663
20.1%
18,565
16,413
2,152
13.1%
Amortization
1,211
1,294
(83
)
(6.4%)
2,324
2,455
(131
)
-5.3%
Start-up costs (A)
20
417
(397
)
(95.2%)
1,960
1,109
851
76.7%
Transaction-related costs
49
42
7
16.7%
52
74
(22
)
-29.7%
Integration costs
-
-
-
**
-
30
(30
)
-100.0%
Remeasurement of finance lease obligation
(C)
(182
)
(361
)
179
49.6%
822
(1,613
)
2,435
**
Adjusted EBITDA
$
23,678
$
19,482
$
4,196
21.5%
$
12,530
$
9,167
$
3,363
36.7%
Adjusted EBITDA attributable to
noncontrolling interest
(3,824
)
(2,781
)
(1,043
)
(37.5%)
(5,043
)
(3,426
)
(1,617
)
-47.2%
Adjusted EBITDA attributable to
Viad
$
19,854
$
16,701
$
3,153
18.9%
$
7,487
$
5,741
$
1,746
30.4%
Pursuit Operating margin
12.5%
11.1%
1.4%
-8.1%
-7.7%
-0.4%
Pursuit Adjusted EBITDA margin
23.4%
22.0%
1.4%
9.1%
7.6%
1.5%
Total GES Adjusted EBITDA:
Revenue
$
277,337
$
231,837
$
45,500
19.6%
$
513,603
$
459,965
$
53,638
11.7%
Cost of services and products
(236,538
)
(208,204
)
(28,334
)
(13.6%)
(457,446
)
(422,748
)
(34,698
)
-8.2%
Segment operating income
40,799
23,633
17,166
72.6%
56,157
37,217
18,940
50.9%
Depreciation
2,752
2,240
512
22.9%
5,434
4,418
1,016
23.0%
Amortization
863
972
(109
)
(11.2%)
1,738
1,954
(216
)
-11.1%
Total GES Adjusted EBITDA
$
44,414
$
26,845
$
17,569
65.4%
$
63,329
$
43,589
$
19,740
45.3%
Total GES Operating margin
14.7%
10.2%
4.5%
10.9%
8.1%
2.8%
Total GES Adjusted EBITDA
margin
16.0%
11.6%
4.4%
12.3%
9.5%
2.9%
GES Adjusted EBITDA by Reportable
Segment:
Spiro
$
18,101
$
8,940
$
9,161
**
$
22,741
$
12,677
$
10,064
79.4%
GES Exhibitions
26,313
17,905
8,408
47.0%
40,588
30,912
9,676
31.3%
Total GES
$
44,414
$
26,845
$
17,569
65.4%
$
63,329
$
43,589
$
19,740
45.3%
Spiro Revenue
$
99,132
$
80,368
$
18,764
23.3%
$
160,380
$
140,730
$
19,650
14.0%
Spiro Adjusted EBITDA Margin
18.3%
11.1%
7.1%
14.2%
9.0%
5.2%
GES Exhibitions Revenue
$
180,977
$
154,534
$
26,443
17.1%
$
356,817
$
324,031
$
32,786
10.1%
GES Exhibitions Adjusted EBITDA Margin
14.5%
11.6%
3.0%
11.4%
9.5%
1.8%
** Change is greater than +/- 100
percent
(A) Includes costs primarily related to
the development of Pursuit's new FlyOver attraction in Chicago.
(B) Includes non-capitalizable fees and
expenses related to Viad’s shelf registration in 2024 and Viad’s
credit facility refinancing efforts in 2023.
(C) Remeasurement of finance lease
obligation represents the non-cash foreign exchange loss/(gain)
included within Cost of Services related to the periodic
remeasurement of the Sky Lagoon finance lease obligation.
(D) Corporate Adjusted EBITDA is
calculated as Corporate activities expense before depreciation,
transaction-related costs and other non-recurring costs included
within Corporate activities expense.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806131119/en/
Carrie Long or Michelle Porhola Investor Relations (602)
207-2681 ir@viad.com
Viad (NYSE:VVI)
Historical Stock Chart
From Oct 2024 to Nov 2024
Viad (NYSE:VVI)
Historical Stock Chart
From Nov 2023 to Nov 2024
