- Strong third quarter performance at both Pursuit and
GES
- Pursuit completes tuck-in acquisition in Glacier National
Park
- Sale of GES for $535 million is on track to close on
December 31, 2024
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 third quarter.
Steve Moster, Viad’s President and Chief Executive Officer,
commented, “We delivered another quarter of strong operational and
financial results at both Pursuit and GES. Outside of Jasper,
Pursuit's revenue grew approximately 13% during the quarter from
the significant demand for our unforgettable experiences. GES'
outperformance was largely driven by successful execution at our
major non-annual shows and disciplined cost management. We expect
to deliver significant full year growth in consolidated adjusted
EBITDA, and both businesses are positioned for continued
success.”
Moster continued, "We’re also pleased to report that we recently
completed the acquisition of a great tuck-in experience for our
Glacier Park Collection and that we are on track to complete the
transformative sale of GES by the end of the year. This transaction
will establish Pursuit as a pure-play, high-growth and high-margin
business with the financial flexibility and balance sheet capacity
to accelerate its Refresh, Build, Buy growth strategy and
capitalize on its substantial growth prospects in the hospitality
and attractions space."
Financial Highlights
Three months ended September
30,
(in millions, except per share data)
2024
2023
$ Change
% Change
Revenue
$
455.7
$
365.9
$
89.8
24.5%
Pursuit Revenue
182.3
186.9
(4.7
)
(2.5%)
GES Revenue
273.4
179.0
94.5
52.8%
Net Income Attributable to Viad
$
48.6
$
41.3
$
7.3
17.8%
Adjusted Net Income*
58.8
43.3
15.5
35.7%
Diluted EPS Attributable to
Viad
$
1.65
$
1.41
$
0.24
17.0%
Adjusted Diluted EPS*
2.01
1.49
0.52
34.9%
Consolidated Adjusted EBITDA*
$
103.1
$
86.3
$
16.9
19.6%
Pursuit Adjusted EBITDA*
86.3
91.8
(5.5
)
(6.0%)
GES Adjusted EBITDA*
20.2
(2.0
)
22.2
**
Corporate Adjusted EBITDA*
(3.4
)
(3.5
)
0.1
4.2%
* 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.
Third Quarter Results
- Revenue of $455.7 million increased $89.8 million (24.5%) from
the 2023 third quarter.
- Pursuit revenue of $182.3 million decreased $4.7 million
(-2.5%) year-over-year due to temporary closures and lower
visitation caused by the Jasper wildfire, partially offset by
growth across our other geographies.
- Excluding our Jasper properties, Pursuit revenue increased
$17.2 million (13.1%).
- GES revenue of $273.4 million increased $94.5 million (52.8%)
year-over-year primarily due to incremental revenue of about $104
million from the timing of major non-annual shows.
- Net income attributable to Viad of $48.6 million increased $7.3
million from the 2023 third quarter primarily due to stronger
performance at GES, partially offset by asset impairment charges
and GES transaction-related expenses.
- Adjusted net income* of $58.8 million increased $15.5 million
year-over-year primarily due to improved results at GES.
- Consolidated adjusted EBITDA* of $103.1 million increased $16.9
million from the 2023 third quarter.
- Pursuit adjusted EBITDA* of $86.3 million decreased $5.5
million year-over-year primarily due to lower revenue from the
Jasper wildfire, combined with a year-over-year increase in certain
general and operating costs.
- GES adjusted EBITDA of $20.2 million increased $22.2 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 $110
million for the third quarter.
- Our capital expenditures for the third quarter totaled
approximately $15 million, comprising $9.7 million for Pursuit
(inclusive of about $3 million for growth projects) and $5.1
million for GES.
- Our debt payments (net) totaled $93.7 million for the third
quarter.
- Our total liquidity was $228.8 million as of September 30,
2024, comprising cash and cash equivalents of $64.6 million and
$164.3 million of capacity available on our revolving credit
facility.
- Our debt was $398.2 million, and our net leverage ratio was
1.7x at the end of the third quarter.
Pursuit Acquisition
On November 6, 2024, Pursuit expanded its collection of
accommodation and hospitality experiences within Glacier National
Park with the acquisition of Eddie’s Café & Mercantile, which
includes food and beverage and retail offerings as well as newly
constructed Apgar Lookout Retreat guest accommodations. Eddie’s and
the Apgar Lookout Retreat are located adjacent to Pursuit’s
existing 48 room Apgar Village Lodge near the picturesque shores of
Lake McDonald on privately held land inside Glacier National
Park.
Pursuit President David Barry commented, “Eddie’s has a long and
successful history operating in Apgar and we are very proud to
continue its success as part of our Glacier Park Collection. Apgar
Lookout Retreat’s six high-end accommodation units are beautiful
and a step above all of the other lodging experiences in the West
Glacier area. This acquisition is a perfect complement to our
existing guest rooms in Apgar Village and is well positioned to
serve the approximately 1 million park visitors that come through
Apgar as they explore Glacier National Park.”
2024 Outlook
Based on our stronger than expected performance year-to-date in
2024 and favorable underlying demand trends we are seeing, we are
revising our prior full year guidance ranges. We expect GES will
achieve Adjusted EBITDA of $90 million to $95 million, up from
previous expectations of $85 million to $95 million. Additionally,
we have narrowed our range for Pursuit’s Adjusted EBITDA to $87
million to $92 million.
Our guidance for Viad consolidated, Pursuit, and GES is
below.
(in millions)
Fourth Quarter
Full Year
Viad
Consolidated
Revenue
$240 to $260
Up high-single to low-double
digits
Adjusted EBITDA
$(9) to $0
$163 to $172
Cash flow from Operations
$(43) to $(33)
$90 to $100
Capital Expenditures
$12 to $17
(including growth capex of
~$3)
$65 to $70
(including growth capex of
~$20)
Effective Tax Rate
1% to 2%
35% to 36%
Pursuit
Revenue
$40 to $45
Up low-single digits
Adjusted EBITDA
$(12) to $(7)
$87 to $92
GES
Revenue
$200 to $215
Up low-double digits
Adjusted EBITDA
$6 to $11
$90 to $95
Conference Call Details
Management will host a conference call to review third quarter
2024 results on Thursday, November 7, 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 418347.
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=acecadfb&confId=71998.
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 590564.
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 an attractions and hospitality company that owns and
operates a collection of inspiring and unforgettable experiences in
iconic destinations in the United States, Canada, and Iceland.
Pursuit’s elevated hospitality experiences include 14 world-class
point-of-interest attractions and 27 distinctive lodges, along with
integrated restaurants, retail and transportation that enable
visitors to discover and connect with stunning national parks and
renowned global travel locations.
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,” “can,”
“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. Such
forward-looking statements include those that address activities,
events or developments that Viad or its management believes or
anticipates may occur in the future, including all statements
regarding the expected timing of the closing of the GES
transaction, the use of proceeds of the transaction, potential
benefits of the transaction, expectations concerning Pursuit’s
opportunities and performance as a standalone public company, and
the expected Chief Executive Officer transition in connection with
the closing of the GES transaction. Similarly, statements that
describe our go-forward business strategy, 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:
- the pending sale of our GES business may not be completed in
the timeframe or on the terms we anticipate (or at all);
- we may not realize the full strategic, financial, operational
and other benefits that are expected to result from the pending
sale of our GES business;
- 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
and our most recent Current Report on Form 10-Q 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 September
30,
Nine months ended September
30,
(in thousands, except per share data)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Revenue:
Pursuit
$
182,257
$
186,940
$
(4,683
)
(2.5%)
$
320,689
$
308,077
$
12,612
4.1%
GES:
Spiro
82,205
58,887
23,318
39.6%
242,585
199,617
42,968
21.5%
GES Exhibitions
194,806
122,115
72,691
59.5%
551,623
446,146
105,477
23.6%
Inter-segment eliminations
(3,564
)
(2,043
)
(1,521
)
(74.4%)
(7,158
)
(6,839
)
(319
)
-4.7%
Total GES
273,447
178,959
94,488
52.8%
787,050
638,924
148,126
23.2%
Total
$
455,704
$
365,899
$
89,805
24.5%
$
1,107,739
$
947,001
$
160,738
17.0%
Segment operating income
(loss):
Pursuit
$
75,903
$
81,375
$
(5,472
)
(6.7%)
$
64,710
$
72,074
$
(7,364
)
-10.2%
GES:
Spiro
6,918
179
6,739
**
28,436
11,632
16,804
**
GES Exhibitions
9,714
(5,529
)
15,243
**
44,353
20,235
24,118
**
Total GES
16,632
(5,350
)
21,982
**
72,789
31,867
40,922
**
Total
$
92,535
$
76,025
$
16,510
21.7%
$
137,499
$
103,941
$
33,558
32.3%
Corporate eliminations
13
17
(4
)
(23.5%)
45
49
(4
)
-8.2%
Corporate activities (Note A)
(7,757
)
(3,579
)
(4,178
)
**
(17,612
)
(10,255
)
(7,357
)
-71.7%
Gain on sale of ON Services
-
-
-
**
-
(204
)
204
-100.0%
Restructuring (charges) recoveries
(383
)
(480
)
97
20.2%
326
(1,125
)
1,451
**
Impairment charges (Note B)
(6,110
)
-
(6,110
)
**
(6,110
)
-
(6,110
)
**
Other expense, net
(407
)
(554
)
147
26.5%
(1,287
)
(1,533
)
246
16.0%
Net interest expense
(11,428
)
(12,476
)
1,048
8.4%
(35,858
)
(37,081
)
1,223
3.3%
Income from continuing operations before
income taxes
66,463
58,953
7,510
12.7%
77,003
53,792
23,211
43.1%
Income tax expense (Note C)
(10,509
)
(9,173
)
(1,336
)
(14.6%)
(17,247
)
(13,623
)
(3,624
)
-26.6%
Income from continuing operations
55,954
49,780
6,174
12.4%
59,756
40,169
19,587
48.8%
Income (loss) from discontinued
operations
(90
)
(654
)
564
86.2%
743
(855
)
1,598
**
Net income
55,864
49,126
6,738
13.7%
60,499
39,314
21,185
53.9%
Net income attributable to noncontrolling
interest
(7,178
)
(7,716
)
538
7.0%
(8,062
)
(8,221
)
159
1.9%
Net (income) loss attributable to
redeemable noncontrolling interest
(71
)
(139
)
68
48.9%
372
270
102
37.8%
Net income attributable to Viad
$
48,615
$
41,271
$
7,344
17.8%
$
52,809
$
31,363
$
21,446
68.4%
Amounts Attributable to Viad:
Income from continuing operations
$
48,705
$
41,925
$
6,780
16.2%
$
52,066
$
32,218
$
19,848
61.6%
Income (loss) from discontinued
operations
(90
)
(654
)
564
86.2%
743
(855
)
1,598
**
Net income
$
48,615
$
41,271
$
7,344
17.8%
$
52,809
$
31,363
$
21,446
68.4%
Income per common share attributable to
Viad (Note D):
Basic income per common share
$
1.68
$
1.43
$
0.25
17.5%
$
1.69
$
0.93
$
0.76
81.7%
Diluted income per common share
$
1.65
$
1.41
$
0.24
17.0%
$
1.67
$
0.92
$
0.75
81.5%
Weighted-average common shares
outstanding:
Basic weighted-average outstanding common
shares
21,166
20,885
281
1.3%
21,107
20,825
282
1.4%
Additional dilutive shares related to
share-based compensation
449
289
160
55.4%
410
200
210
**
Diluted weighted-average outstanding
common shares
21,615
21,174
441
2.1%
21,517
21,025
492
2.3%
Adjusted EBITDA* by Reportable
Segment:
Pursuit
$
86,313
$
91,788
$
(5,475
)
(6.0%)
$
98,843
$
100,955
$
(2,112
)
-2.1%
GES:
Spiro
7,567
775
6,792
**
30,308
13,452
16,856
**
GES Exhibitions
12,632
(2,779
)
15,411
**
53,220
28,133
25,087
89.2%
Total GES
20,199
(2,004
)
22,203
**
83,528
41,585
41,943
**
Corporate
(3,382
)
(3,530
)
148
4.2%
(10,602
)
(10,037
)
(565
)
-5.6%
Consolidated Adjusted EBITDA
$
103,130
$
86,254
$
16,876
19.6%
$
171,769
$
132,503
$
39,266
29.6%
Capitalization Data:
Cash and cash equivalents
$
64,552
$
106,268
$
(41,716
)
(39.3%)
Total debt
398,202
477,645
(79,443
)
(16.6%)
Viad shareholders' equity
96,765
51,750
45,015
87.0%
Non-controlling interests (redeemable and
non-redeemable)
97,300
94,500
2,800
3.0%
Convertible Series A Preferred Stock (Note
E):
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 transaction-related costs including consulting,
accounting, legal, and other costs incurred related to the pending
sale of the GES business of approximately $4.3 million during the
three months ended September 30, 2024 and $6.7 million during the
nine months ended September 30, 2024.
(B) Impairment charges - On July 2, 2019, we executed a facility
lease with the intent of building a new FlyOver attraction, FlyOver
Canada Toronto. Effective August 6, 2024, this facility lease was
terminated. During the three months ended September 30, 2024, we
recorded an asset impairment charge of $5.5 million related to
site-specific engineering plans developed for this attraction.
Additionally, during July 2024, a wildfire entered Jasper National
Park and Pursuit’s Wilderness Kitchen was lost to the wildfire.
During the three months ended September 30, 2024, we recorded an
impairment charge of $0.6 million against intangible assets
(trademark and favorable lease) related to this loss.
(C) Income tax expense – The effective tax rate was 15.8% for
the three months ended September 30, 2024, 15.6% for the three
months ended September 30, 2023, 22.4% for the nine months ended
September 30, 2024, and 25.3% for nine months ended September 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. During the three months
ended September 30, 2024, we released a valuation allowance of $0.5
million recorded on deferred tax assets with certain separate
states. During the nine months ended September 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 nine months ended September 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.
(D) Income 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 September
30,
Nine months ended September
30,
(in thousands)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Net income attributable to Viad
$
48,615
$
41,271
$
7,344
17.8%
$
52,809
$
31,363
$
21,446
68.4%
Convertible preferred stock dividends
(1,950
)
(1,950
)
-
0.0%
(5,850
)
(5,850
)
-
0.0%
Undistributed income attributable to
Viad
46,665
39,321
7,344
18.7%
46,959
25,513
21,446
84.1%
Less: Allocation to participating
securities
(11,187
)
(9,522
)
(1,665
)
(17.5%)
(11,282
)
(6,194
)
(5,088
)
-82.1%
Net income allocated to Viad common
shareholders (basic)
$
35,478
$
29,799
$
5,679
19.1%
$
35,677
$
19,319
$
16,358
84.7%
Add: Allocation to participating
securities
177
98
79
80.6%
165
44
121
**
Net income allocated to Viad common
shareholders (diluted)
$
35,655
$
29,897
$
5,758
19.3%
$
35,842
$
19,363
$
16,479
85.1%
Basic weighted-average outstanding
common shares
21,166
20,885
281
1.3%
21,107
20,825
282
1.4%
Additional dilutive shares related to
share-based compensation
449
289
160
55.4%
410
200
210
**
Diluted weighted-average outstanding
common shares
21,615
21,174
441
2.1%
21,517
21,025
492
2.3%
** Change is greater than +/- 100
percent
(E) 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 September
30,
Nine months ended September
30,
(in thousands, except per share data)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Adjusted net income:
Net income attributable to Viad
$
48,615
$
41,271
$
7,344
17.8%
$
52,809
$
31,363
$
21,446
68.4%
(Income) loss from discontinued operations
attributable to Viad
90
654
(564
)
(86.2%)
(743
)
855
(1,598
)
**
Income from continuing operations
attributable to Viad
48,705
41,925
6,780
16.2%
52,066
32,218
19,848
61.6%
Gain on sale of ON Services
-
-
-
**
-
204
(204
)
-100.0%
Restructuring charges (recoveries),
pre-tax
383
480
(97
)
(20.2%)
(326
)
1,125
(1,451
)
**
Impairment charges, pre-tax
6,110
-
6,110
**
6,110
-
6,110
**
Transaction-related costs and other
non-recurring expenses, pre-tax (Note A)
4,608
924
3,684
**
9,167
2,235
6,932
**
Remeasurement of finance lease obligation
attributable to Viad, pre-tax (Note B)
(568
)
224
(792
)
**
(148
)
(599
)
451
75.3%
Tax expense (benefit) on above items
104
(216
)
320
**
(66
)
93
(159
)
**
Favorable tax matters
(532
)
-
(532
)
**
(532
)
(2,103
)
1,571
74.7%
Adjusted net income
$
58,810
$
43,337
$
15,473
35.7%
$
66,271
$
33,173
$
33,098
99.8%
Adjusted diluted EPS:
Adjusted net income (as reconciled
above)
$
58,810
$
43,337
$
15,473
35.7%
$
66,271
$
33,173
$
33,098
99.8%
Convertible preferred stock dividends
(1,950
)
(1,950
)
-
0.0%
(5,850
)
(5,850
)
-
0.0%
Undistributed adjusted net income
attributable to Viad (Note C)
56,860
41,387
15,473
37.4%
60,421
27,323
33,098
**
Less: Allocation to participating
securities (Note D)
(13,415
)
(9,919
)
(3,496
)
(35.2%)
(14,304
)
(6,586
)
(7,718
)
**
Diluted adjusted net income allocated to
Viad common shareholders
$
43,445
$
31,468
$
11,977
38.1%
$
46,117
$
20,737
$
25,380
**
Diluted weighted-average outstanding
common shares
21,615
21,174
441
2.1%
21,517
21,025
492
2.3%
Adjusted diluted EPS
$
2.01
$
1.49
$
0.52
34.9%
$
2.14
$
0.99
$
1.15
**
** Change is greater than +/- 100
percent
(A) Transaction-related costs and other non-recurring expenses
include:
Three months ended September
30,
Nine months ended September
30,
(in thousands)
2024
2023
2024
2023
Acquisition integration costs -
Pursuit1
$
2
$
-
$
2
$
30
Transaction-related costs - Pursuit1
78
110
130
184
Transaction-related costs - Corporate2
4,304
14
6,713
17
Attraction start-up costs1, 3
207
800
2,167
1,909
Other non-recurring expenses2, 4
17
-
155
95
Transaction-related and other
non-recurring expenses, pre-tax
$
4,608
$
924
$
9,167
$
2,235
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 and
trailing costs related to the FlyOver Toronto lease exit.
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 September
30,
Nine months ended September
30,
(in thousands)
2024
2023
2024
2023
Weighted-average outstanding common
shares
21,615
21,174
21,517
21,025
Effect of participating convertible
preferred shares (if applicable)
6,674
6,674
6,674
6,674
Effect of participating non-vested shares
(if applicable)
-
-
-
3
Weighted-average shares including effect
of participating interests (if applicable)
28,289
27,848
28,191
27,702
VIAD CORP
TABLE TWO - NON-GAAP FINANCIAL
MEASURES CONTINUED (UNAUDITED)
Three months ended September
30,
Nine months ended September
30,
($ in thousands)
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Viad Consolidated:
Revenue
$
455,704
$
365,899
$
89,805
24.5%
$
1,107,739
$
947,001
$
160,738
17.0%
Net income attributable to Viad
$
48,615
$
41,271
$
7,344
17.8%
$
52,809
$
31,363
$
21,446
68.4%
Net income attributable to noncontrolling
interest
7,178
7,716
(538
)
(7.0%)
8,062
8,221
(159
)
-1.9%
Net income (loss) attributable to
redeemable noncontrolling interest
71
139
(68
)
(48.9%)
(372
)
(270
)
(102
)
-37.8%
(Income) loss from discontinued
operations
90
654
(564
)
(86.2%)
(743
)
855
(1,598
)
**
Net interest expense
11,428
12,476
(1,048
)
(8.4%)
35,858
37,081
(1,223
)
-3.3%
Income tax expense
10,509
9,173
1,336
14.6%
17,247
13,623
3,624
26.6%
Depreciation and amortization
14,844
12,428
2,416
19.4%
42,961
37,707
5,254
13.9%
Gain on sale of ON Services
-
-
-
**
-
204
(204
)
-100.0%
Restructuring charges (recoveries)
383
480
(97
)
(20.2%)
(326
)
1,125
(1,451
)
**
Impairment charges
6,110
-
6,110
**
6,110
-
6,110
**
Other expense, net
407
554
(147
)
(26.5%)
1,287
1,533
(246
)
-16.0%
Start-up costs (A)
207
800
(593
)
(74.1%)
2,167
1,909
258
13.5%
Transaction-related costs
4,382
124
4,258
**
6,843
201
6,642
**
Integration costs
2
-
2
**
2
30
(28
)
-93.3%
Other non-recurring expenses (B)
17
-
17
**
155
95
60
63.2%
Remeasurement of finance lease obligation
(C)
(1,113
)
439
(1,552
)
**
(291
)
(1,174
)
883
75.2%
Consolidated Adjusted EBITDA
$
103,130
$
86,254
$
16,876
19.6%
$
171,769
$
132,503
$
39,266
29.6%
Adjusted EBITDA attributable to
noncontrolling interest
(9,518
)
(11,347
)
1,829
16.1%
(14,561
)
(14,773
)
212
1.4%
Consolidated Adjusted EBITDA
attributable to Viad
$
93,612
$
74,907
$
18,705
25.0%
$
157,208
$
117,730
$
39,478
33.5%
Consolidated Adjusted EBITDA by
Business:
Pursuit
$
86,313
$
91,788
$
(5,475
)
(6.0%)
$
98,843
$
100,955
$
(2,112
)
-2.1%
Total GES
20,199
(2,004
)
22,203
**
83,528
41,585
41,943
**
Total
106,512
89,784
16,728
18.6%
182,371
142,540
39,831
27.9%
Corporate EBITDA (D)
(3,382
)
(3,530
)
148
4.2%
(10,602
)
(10,037
)
(565
)
-5.6%
Consolidated Adjusted EBITDA
$
103,130
$
86,254
$
16,876
19.6%
$
171,769
$
132,503
$
39,266
29.6%
Pursuit Adjusted EBITDA:
Revenue
$
182,257
$
186,940
$
(4,683
)
(2.5%)
$
320,689
$
308,077
$
12,612
4.1%
Cost of services and products
(106,354
)
(105,565
)
(789
)
(0.7%)
(255,979
)
(236,003
)
(19,976
)
-8.5%
Segment operating income
75,903
81,375
(5,472
)
(6.7%)
64,710
72,074
(7,364
)
-10.2%
Depreciation
10,067
7,708
2,359
30.6%
28,632
24,121
4,511
18.7%
Amortization
1,169
1,356
(187
)
(13.8%)
3,493
3,811
(318
)
-8.3%
Start-up costs (A)
207
800
(593
)
(74.1%)
2,167
1,909
258
13.5%
Transaction-related costs
78
110
(32
)
(29.1%)
130
184
(54
)
-29.3%
Integration costs
2
-
2
**
2
30
(28
)
-93.3%
Remeasurement of finance lease obligation
(C)
(1,113
)
439
(1,552
)
**
(291
)
(1,174
)
883
75.2%
Adjusted EBITDA
$
86,313
$
91,788
$
(5,475
)
(6.0%)
$
98,843
$
100,955
$
(2,112
)
-2.1%
Adjusted EBITDA attributable to
noncontrolling interest
(9,518
)
(11,347
)
1,829
16.1%
(14,561
)
(14,773
)
212
1.4%
Adjusted EBITDA attributable to
Viad
$
76,795
$
80,441
$
(3,646
)
(4.5%)
$
84,282
$
86,182
$
(1,900
)
-2.2%
Pursuit Operating margin
41.6%
43.5%
(1.9%)
20.2%
23.4%
-3.2%
Pursuit Adjusted EBITDA margin
47.4%
49.1%
(1.7%)
30.8%
32.8%
-1.9%
Total GES Adjusted EBITDA:
Revenue
$
273,447
$
178,959
$
94,488
52.8%
$
787,050
$
638,924
$
148,126
23.2%
Cost of services and products
(256,815
)
(184,309
)
(72,506
)
(39.3%)
(714,261
)
(607,057
)
(107,204
)
-17.7%
Segment operating income (loss)
16,632
(5,350
)
21,982
**
72,789
31,867
40,922
**
Depreciation
2,747
2,357
390
16.5%
8,181
6,775
1,406
20.8%
Amortization
820
989
(169
)
(17.1%)
2,558
2,943
(385
)
-13.1%
Total GES Adjusted EBITDA
$
20,199
$
(2,004
)
$
22,203
**
$
83,528
$
41,585
$
41,943
**
Total GES Operating margin
6.1%
(3.0%)
9.1%
9.2%
5.0%
4.3%
Total GES Adjusted EBITDA
margin
7.4%
(1.1%)
8.5%
10.6%
6.5%
4.1%
GES Adjusted EBITDA by Reportable
Segment:
Spiro
$
7,567
$
775
$
6,792
**
$
30,308
$
13,452
$
16,856
**
GES Exhibitions
12,632
(2,779
)
15,411
**
53,220
28,133
25,087
89.2%
Total GES
$
20,199
$
(2,004
)
$
22,203
**
$
83,528
$
41,585
$
41,943
**
Spiro Revenue
$
82,205
$
58,887
$
23,318
39.6%
$
242,585
$
199,617
$
42,968
21.5%
Spiro Adjusted EBITDA Margin
9.2%
1.3%
7.9%
12.5%
6.7%
5.8%
GES Exhibitions Revenue
$
194,806
$
122,115
$
72,691
59.5%
$
551,623
$
446,146
$
105,477
23.6%
GES Exhibitions Adjusted EBITDA Margin
6.5%
(2.3%)
8.8%
9.6%
6.3%
3.3%
** Change is greater than +/- 100
percent
(A) Includes costs primarily related to
the development of Pursuit's new FlyOver attraction in Chicago and
trailing costs related to the FlyOver Toronto lease exit.
(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/20241107446822/en/
Carrie Long or Michelle Porhola Investor Relations (602)
207-2681 ir@viad.com
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