- Year-over-year growth significantly exceeded
expectations
- Strong momentum continues for GES live event activity and
leisure travel to Pursuit’s markets
- Raising full year guidance for revenue, adjusted EBITDA, and
free cash flow
Viad Corp (NYSE: VVI), a leading provider of experiential
leisure travel and live events and marketing experiences, today
reported results for the 2023 first quarter.
Financial Highlights
Three months ended March
31,
(in millions)
2023
2022
Change
Revenue
$
260.8
$
177.4
$
83.4
Net Loss Attributable to Viad
$
(20.9
)
$
(29.0
)
$
8.1
Net Loss Before Other Items*
$
(22.0
)
$
(27.3
)
$
5.3
Consolidated Adjusted EBITDA*
$
3.4
$
(11.3
)
$
14.7
- Revenue increased by $83.4 million driven by improvements in
live event activity and leisure travel relative to the 2022 first
quarter.
- Net loss attributable to Viad improved by $8.1 million
primarily due to strengthening demand for exhibitions and events
and higher international tourism in Western Canada and
Iceland.
- Consolidated adjusted EBITDA* improved by $14.7 million and
exceeded the high-end of our prior guidance range.
* 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.
Steve Moster, Viad’s president and chief executive officer,
commented, “We are very encouraged by the strong first quarter
demand we experienced and our better than expected financial
performance at both GES and Pursuit. GES continues to see positive
momentum in the live events sector with improving revenue and
healthy margins. At Pursuit, we saw ongoing acceleration of
international visitation during this seasonally slow quarter that
drove significant year-over-year revenue growth.”
Moster continued, “We’re off to a great start in 2023 and I am
excited about the rest of the year as we expect the momentum to
continue. Our actions to scale Pursuit, transform GES Exhibitions’
cost structure, and strengthen Spiro’s capabilities are positioning
us for strong growth in revenue and profitability.”
Pursuit Results
Three months ended March
31,
(in millions)
2023
2022
Change
Revenue
$
32.7
$
23.8
$
8.9
Adjusted EBITDA*
$
(10.3
)
$
(11.5
)
$
1.2
* 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.
- Revenue increased $8.9 million (37%) from the 2022 first
quarter.
- Same-store revenue from experiences that were owned and open
prior to 2022 increased $8.2 million primarily due to stronger
international visitation at Sky Lagoon, our year-round Canadian
experiences, and our FlyOver locations.
- New experiences opened or acquired from 2022 forward
contributed revenue of $0.7 million, mainly reflecting the addition
of the Forest Park Alpine Hotel.
- Adjusted EBITDA improved by $1.2 million from the 2022 first
quarter primarily due to the increase in revenue during the
seasonally slow quarter.
Regarding Pursuit’s results, Moster commented, “Pursuit
continues to post record levels of revenue, with first quarter
revenue more than tripling the amount we generated in 2019.
International leisure travel to our markets continues to accelerate
and our new experiences continue to gain momentum. As compared to
2022, first quarter visitation to our year-round attractions
increased about 40 percent, reflecting strong growth at Sky Lagoon,
the Banff Gondola, and across our FlyOver locations.”
Moster continued, “The level of visitation we experienced across
Pursuit during the seasonally slower first quarter was stronger
than we had previously anticipated and gives us confidence that we
will continue to see higher year-over-year revenues during the
remainder of 2023. And the strong flow through of each incremental
visitor is an important driver of margin expansion for
Pursuit.”
GES Results
Three months ended March
31,
(in millions)
2023
2022
Change
Revenue
Spiro
$
60.4
$
42.8
$
17.5
GES Exhibitions
169.5
111.8
57.7
Inter-segment Eliminations
(1.7
)
(1.1
)
(0.7
)
Total GES
$
228.1
$
153.6
$
74.6
Adjusted EBITDA*
Spiro
$
3.7
$
0.7
$
3.0
GES Exhibitions
13.0
2.0
11.0
Total GES
$
16.7
$
2.7
$
14.0
* 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.
- Revenue increased $74.6 million (49%) primarily driven by
increased live event activity at both GES Exhibitions and Spiro
relative to the 2022 first quarter that was impacted by
cancellations and postponements due to COVID.
- Adjusted EBITDA increased by $14.0 million primarily due to
higher revenue.
Regarding GES’ results, Moster commented, “GES delivered
substantial year-over-year growth from both Spiro and GES
Exhibitions as live event activity continued to rebound. Unlike
last year when the industry was navigating the Omicron variant
during the first quarter, events were able to stage as scheduled
this quarter. Additionally, same-show revenues for events produced
by our U.S. Exhibitions team grew to 91 percent of 2019
pre-pandemic levels as compared to 73 percent in the 2022 first
quarter. At Spiro, spend from existing corporate clients’ is near
2019 pre-pandemic levels and we continue to benefit from new wins
and a healthy pipeline of additional opportunities.”
Moster continued, “Our Exhibitions and Spiro teams executed
extremely well during the quarter, servicing the increased client
activity and delivering solid margins and cash flow. Our efforts to
improve the cost structure within Exhibitions and to drive
profitable growth at Spiro from new client wins and increased spend
from existing clients are yielding great results. We remain focused
on driving meaningful free cash flow through ongoing lean
initiatives at GES Exhibitions and accelerated growth at
Spiro.”
Cash Flow and Balance Sheet Highlights
Our 2023 first quarter cash flow from operations was an inflow
of approximately $10 million and our capital expenditures totaled
approximately $11 million. We paid approximately $2 million in cash
dividends on our convertible preferred equity and our net debt
payments were approximately $4 million.
We ended the first quarter with total liquidity of $139.9
million, comprising cash and cash equivalents of $50.8 million and
$89.1 million of capacity available on our revolving credit
facility ($100 million total facility size, less $10.9 million in
letters of credit). Our debt totaled $478.4 million, including $394
million outstanding on our Term Loan B, financing lease obligations
of approximately $65 million (which primarily comprises real estate
leases at Pursuit), and approximately $20 million in other
debt.
Moster commented, “We remain committed to protecting our balance
sheet, maximizing our cash flows from operations, and selectively
investing in high-return opportunities to continue scaling Pursuit.
During the first quarter, we entered into an interest rate cap
agreement that limits our exposure to continued interest rate
increases and we amended the financial covenants for our revolving
credit facility to provide additional cushion on our interest
coverage ratio.”
2023 Outlook
Regarding Viad’s outlook, Moster commented, “With our stronger
than expected start to 2023, we are pleased to be raising our full
year guidance. We continue to see strengthening demand across the
exhibition and event sector and from international leisure travel
to Pursuit’s markets, along with acceleration of visitation at
Pursuit’s new experiences.”
Our guidance for Viad consolidated is as follows:
(in millions)
Second Quarter
Full Year
Viad
Consolidated
Revenue
$289 to $313 vs. $319.2 in
2022
Up low single digits vs. $1,127.3
in 2022
Adjusted EBITDA
$39 to $46 vs. $47.5 in 2022
$124 to $141 vs. $116.1 in
2022
Cash flow from Operations
$15 to $20
$70 to $80
Capital Expenditures
$25 to $30
$70 to $75 (including growth
capex of ~$35)
Our guidance for Pursuit is as follows:
(in millions)
Second Quarter
Full Year
Key Assumptions
Pursuit
Revenue
$89 to $93 vs. $77.6 in 2022
Up ~10% to 15% vs. $299.3 in
2022
- Expect revenue growth in 2023 will be driven by:
- Lifting of all COVID restrictions at the Canadian border
- Acceleration of new experiences
- Ongoing focus on improving the guest experience
Adjusted EBITDA
$19 to $22 vs. $15.6 in 2022
$85 to $95 vs. $67.9 in 2022
- Anticipate FY margin expansion as visitation increases, the
performance of newer experiences improves, and pandemic-era cost
pressures ease
Our guidance for GES is as follows:
(in millions)
Second Quarter
Full Year
Key Assumptions
GES
Revenue
$200 to $220 vs. $241.6 in
2022
Down low
single digits vs. $828.0 in
2022
- Expect GES will mostly offset the headwinds of negative show
rotation revenue ($30M) and the sale of ON Services ($50M) in 2023
- Exhibitions same show revenue expected to remain at ~90% of
2019 levels
- Spiro clients’ marketing spend expected to be similar to 2022,
plus new client wins
Adjusted EBITDA
$20 to $24 vs. $35.1 in 2022
$52 to $60 vs. $61.3 in 2022
- We intend to prudently invest in talent and capabilities at
Spiro to fuel growth in 2023 and beyond
Conference Call Details
Management will host a conference call to review first quarter
2023 results on Thursday, May 4, 2023, at 5 p.m. (Eastern
Time).
To join the live conference call, please register at least 10
minutes before the start of the call using the following link:
https://conferencingportals.com/event/KFfVIwkJ. After registering,
an email confirmation will be sent that includes dial-in
information as well as unique codes for entry into the live call.
Registration will be open throughout the 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 (800) 770-2030
or (647) 362-9199 and entering the conference ID 90039.
Additionally, we will post a supplemental presentation,
containing highlights of our 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 hospitality and leisure activities,
experiential marketing, and live events 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 collection of inspiring and unforgettable travel
experiences in Alaska, Nevada, and Montana in the United States, in
and around Banff, Jasper, and Vancouver in Canada, and in
Reykjavik, Iceland. Pursuit’s collection includes attractions,
lodges and hotels, and sightseeing tours that connect guests with
iconic places.
GES is a global, full-service live events company offering a
comprehensive range of services to the world's leading brands and
event organizers through two reportable segments, Spiro and GES
Exhibitions. Spiro is an experiential marketing agency that
partners with leading brands around the world to manage and elevate
their global experiential marketing activities. GES Exhibitions is
a global exhibition services company 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.
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 flexibility;
- identified material weaknesses in our internal control over
financial reporting;
- seasonality of our businesses;
- the impact of the COVID-19 pandemic on our financial condition,
liquidity, and cash flow;
- our ability to anticipate and adjust for the impact of the
COVID-19 pandemic on our businesses;
- unanticipated delays and cost overruns of our capital projects,
and our ability to achieve established financial and strategic
goals for such projects;
- our exposure to labor shortages, turnover, and labor cost
increases;
- 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;
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, acquisition-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 AND SUBSIDIARIES TABLE ONE - QUARTERLY
RESULTS (UNAUDITED)
Three months ended March 31,
(in thousands, except per share data)
2023
2022
$ Change
% Change
Revenue: Pursuit
$
32,663
$
23,784
$
8,879
37.3
%
GES: Spiro
60,362
42,816
17,546
41.0
%
GES Exhibitions
169,497
111,831
57,666
51.6
%
Inter-segment eliminations
(1,731
)
(1,071
)
(660
)
-61.6
%
Total GES
228,128
153,576
74,552
48.5
%
Total revenue
$
260,791
$
177,360
$
83,431
47.0
%
Segment operating loss: Pursuit
$
(19,112
)
$
(21,198
)
2,086
9.8
%
GES: Spiro
3,174
(239
)
3,413
** GES Exhibitions
10,410
(1,355
)
11,765
** Total GES
13,584
(1,594
)
15,178
**
Segment operating loss
$
(5,528
)
$
(22,792
)
$
17,264
75.7
%
Corporate eliminations
16
17
(1
)
-5.9
%
Corporate activities
(3,165
)
(2,673
)
(492
)
-18.4
%
Restructuring charges
(453
)
(654
)
201
30.7
%
Impairment charges
-
(583
)
583
-100.0
%
Other expense
(531
)
(638
)
107
16.8
%
Net interest expense (Note A)
(12,249
)
(5,877
)
(6,372
)
** Loss from continuing operations before income taxes
(21,910
)
(33,200
)
11,290
34.0
%
Income tax benefit (Note B)
578
2,582
(2,004
)
-77.6
%
Loss from continuing operations
(21,332
)
(30,618
)
9,286
30.3
%
Income (loss) from discontinued operations
(58
)
275
(333
)
** Net loss
(21,390
)
(30,343
)
8,953
29.5
%
Net loss attributable to noncontrolling interest
398
1,204
(806
)
-66.9
%
Net loss attributable to redeemable noncontrolling interest
123
138
(15
)
-10.9
%
Net loss attributable to Viad
$
(20,869
)
$
(29,001
)
$
8,132
28.0
%
Amounts Attributable to Viad: Loss from continuing
operations
$
(20,811
)
$
(29,276
)
$
8,465
28.9
%
Income (loss) from discontinued operations
(58
)
275
(333
)
**
Net loss
$
(20,869
)
$
(29,001
)
$
8,132
28.0
%
Loss per common share attributable to Viad (Note C):
Basic loss per common share
$
(1.10
)
$
(1.53
)
$
0.43
28.1
%
Diluted loss per common share
$
(1.10
)
$
(1.53
)
$
0.43
28.1
%
Weighted-average common shares outstanding: Basic
weighted-average outstanding common shares
20,751
20,518
233
1.1
%
Additional dilutive shares related to share-based compensation
-
-
-
** Diluted weighted-average outstanding common shares
20,751
20,518
233
1.1
%
Adjusted EBITDA* by Reportable Segment: Pursuit
$
(10,315
)
$
(11,498
)
$
1,183
10.3
%
GES: Spiro
3,737
742
2,995
** GES Exhibitions
13,007
1,978
11,029
** Total GES
16,744
2,720
14,024
** Corporate
(3,037
)
(2,534
)
(503
)
-19.9
%
Consolidated Adjusted EBITDA
3,392
(11,312
)
14,704
** As of March 31,
Capitalization Data:
2023
2022
$ Change % Change Cash and cash equivalents
50,818
57,902
(7,084
)
-12.2
%
Total debt
478,422
473,845
4,577
1.0
%
Viad shareholders' equity
(4,248
)
(18,169
)
13,921
76.6
%
Non-controlling interests (redeemable and non-redeemable)
87,452
90,795
(3,343
)
-3.7
%
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 AND SUBSIDIARIES TABLE ONE - NOTES TO
QUARTERLY RESULTS (UNAUDITED) (A) Net Interest Expense —
The increase in interest expense during the three months ended
March 31, 2023 was primarily due to higher interest rates in 2023,
and to a lesser extent to lower capitalized interest recorded
during the three months ended March 31, 2023 of $0.3 million as
compared to $1.9 million during the three months ended March 31,
2022. On January 4, 2023, we entered into an interest rate cap
agreement with an effective date of January 31, 2023 to manage our
exposure to interest rate increases on $300 million in borrowings
under our 2021 Credit Facility. On February 6, 2023, we entered
into the LIBOR Transition Amendment to the 2021 Credit Facility to
replace LIBOR with the SOFR. (B) Income Tax Benefit – The effective
tax rate was 2.6% for the three months ended March 31, 2023 and
7.8% for the three months ended March 31, 2022. During the quarter
ended March 31, 2023, we released the valuation allowance of $2.1
million that was recorded on deferred tax assets associated with
certain separate states, which more than offset taxes due in
jurisdictions without a valuation allowance. The rates for both
periods were lower than the 21% federal rate as a result of
excluding the tax benefit in jurisdictions with a valuation
allowance. (C) 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
nonforteitable rights to dividends are considered participating
securities. Accordingly, such securities are included in the
earnings allocation in calculating income per share. Diluted 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.
Additionally, the adjustment to the carrying value of redeemable
non-controlling interests is reflected in income (loss) per common
share. The components of basic and diluted loss per share are as
follows: Three months ended March 31, (in thousands)
2023
2022
$ Change
% Change
Net loss attributable to Viad
$
(20,869
)
$
(29,001
)
$
8,132
28.0
%
Convertible preferred stock dividends paid in cash
(1,950
)
(1,950
)
-
0.0
%
Adjustment to the redemption value of redeemable noncontrolling
interest
-
(351
)
351
-100.0
%
Undistributed loss attributable to Viad
(22,819
)
(31,302
)
8,483
27.1
%
Less: Allocation to participating securities
-
-
-
**
Net loss allocated to Viad common shareholders (basic)
$
(22,819
)
$
(31,302
)
$
8,483
27.1
%
Add: Allocation to participating securities
-
-
-
**
Net loss allocated to Viad common shareholders (diluted)
$
(22,819
)
$
(31,302
)
$
8,483
27.1
%
Basic weighted-average outstanding common shares
20,751
20,518
233
1.1
%
Additional dilutive shares related to share-based compensation
-
-
-
**
Diluted weighted-average outstanding common shares
20,751
20,518
233
1.1
%
(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 AND SUBSIDIARIES TABLE TWO - NON-GAAP
FINANCIAL MEASURES (UNAUDITED) IMPORTANT DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES This document includes
the presentation of "Income (Loss) Before Other Items", "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. Income
(Loss) Before Other Items, 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 March 31, (in thousands, except per share data)
2023
2022
$ Change % Change
Loss before other items: Net loss
attributable to Viad
$
(20,869
)
$
(29,001
)
$
8,132
28.0
%
(Income) loss from discontinued operations attributable to Viad
58
(275
)
333
** Loss from continuing operations attributable to Viad
(20,811
)
(29,276
)
8,465
28.9
%
Restructuring charges, pre-tax
453
654
(201
)
-30.7
%
Impairment charges, pre-tax
-
583
(583
)
-100.0
%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
846
857
(11
)
-1.3
%
Remeasurement of finance lease obligation attributable to Viad,
pre-tax (Note B)
(639
)
-
(639
)
** Tax expense (benefit) on above items
249
(77
)
326
** Favorable tax matters
(2,103
)
-
(2,103
)
**
Loss before other items
$
(22,005
)
$
(27,259
)
$
5,254
19.3
%
The components of loss before other items per share
are as follows: Loss before other items (as reconciled
above)
(22,005
)
(27,259
)
5,254
19.3
%
Convertible preferred stock dividends paid in cash
(1,950
)
(1,950
)
-
0.0
%
Undistributed loss before other items attributable to Viad (Note C)
(23,955
)
(29,209
)
5,254
18.0
%
Less: Allocation to participating securities (Note D)
-
-
-
** Diluted loss before other items allocated to Viad common
shareholders
$
(23,955
)
$
(29,209
)
$
5,254
18.0
%
Diluted weighted-average outstanding common shares
20,751
20,518
233
1.1
%
Loss before other items per common share
$
(1.15
)
$
(1.42
)
$
0.27
19.0
%
(A) Acquisition-related costs and other non-recurring
expenses include: Three months ended March 31, (in thousands)
2023
2022
Acquisition integration costs - Pursuit1
$
30
$
-
Acquisition transaction-related costs - Pursuit1
32
308
Acquisition transaction-related costs - Corporate2
(3
)
110
Attraction start-up costs1, 3
692
431
Other non-recurring expenses2, 4
95
8
Acquisition-related and other non-recurring expenses, pre-tax
$
846
$
857
1 Included in segment operating loss 2 Included in corporate
activities 3 Includes costs related to the development of Pursuit's
new FlyOver attractions in Chicago and Toronto, and Forest Park
Hotel in Canada. 4 Includes non-capitalizable fees and expenses
related to Viad’s credit facility refinancing efforts. (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 income before other items 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 nonforteitable rights to dividends are
considered participating securities. Accordingly, such securities
are included in the earnings allocation in calculating income
(loss) before other items 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 March 31, (in
thousands)
2023
2022
Weighted-average outstanding common shares
20,751
20,518
Effect of participating convertible preferred shares (if
applicable)
-
-
Effect of participating non-vested shares (if applicable)
-
-
Weighted-average shares including effect of participating interests
(if applicable)
20,751
20,518
** Change is greater than +/- 100 percent
VIAD CORP AND
SUBSIDIARIES TABLE TWO - NON-GAAP FINANCIAL MEASURES
(CONTINUED) (UNAUDITED) Three months ended March 31, ($
in thousands)
2023
2022
$ Change % Change
Viad Consolidated: Revenue
$
260,791
$
177,360
$
83,431
47.0
%
Net loss attributable to Viad
$
(20,869
)
$
(29,001
)
$
8,132
28.0
%
Net loss attributable to noncontrolling interest
(398
)
(1,204
)
806
66.9
%
Net loss attributable to redeemable noncontrolling interest
(123
)
(138
)
15
10.9
%
(Income) loss from discontinued operations
58
(275
)
333
** Net interest expense
12,249
5,877
6,372
** Income tax benefit
(578
)
(2,582
)
2,004
77.6
%
Depreciation and amortization
12,475
13,279
(804
)
-6.1
%
Restructuring charges
453
654
(201
)
-30.7
%
Impairment charges
-
583
(583
)
-100.0
%
Other expense
531
638
(107
)
-16.8
%
Start-up costs (A)
692
431
261
60.6
%
Acquisition transaction-related costs
29
418
(389
)
-93.1
%
Integration costs
30
-
30
** Other non-recurring expenses
95
8
87
** Remeasurement of finance lease obligation (B)
(1,252
)
-
(1,252
)
**
Consolidated Adjusted EBITDA
$
3,392
$
(11,312
)
$
14,704
** Adjusted EBITDA attributable to noncontrolling interest
(645
)
(312
)
(333
)
**
Consolidated Adjusted EBITDA attributable to Viad
$
2,747
$
(11,624
)
$
14,371
** Consolidated Adjusted EBITDA by Business:
Pursuit
$
(10,315
)
$
(11,498
)
$
1,183
10.3
%
Total GES
16,744
2,720
14,024
** Total Segment EBITDA
6,429
(8,778
)
15,207
** Corporate EBITDA
(3,037
)
(2,534
)
(503
)
-19.9
%
Consolidated Adjusted EBITDA
$
3,392
$
(11,312
)
$
14,704
** Pursuit Adjusted EBITDA: Revenue
$
32,663
$
23,784
$
8,879
37.3
%
Cost of services and products
(51,775
)
(44,982
)
(6,793
)
-15.1
%
Segment operating loss
(19,112
)
(21,198
)
2,086
9.8
%
Depreciation
8,134
7,782
352
4.5
%
Amortization
1,161
1,179
(18
)
-1.5
%
Start-up costs (A)
692
431
261
60.6
%
Acquisition transaction-related costs
32
308
(276
)
-89.6
%
Integration costs
30
-
30
** Remeasurement of finance lease obligation (B)
(1,252
)
-
(1,252
)
**
Adjusted EBITDA
$
(10,315
)
$
(11,498
)
$
1,183
10.3
%
Adjusted EBITDA attributable to noncontrolling interest
(645
)
(312
)
(333
)
**
Adjusted EBITDA attributable to Viad
$
(10,960
)
$
(11,810
)
$
850
7.2
%
Pursuit Operating margin
-58.5
%
-89.1
%
30.6
%
Pursuit Adjusted EBITDA margin
-31.6
%
-48.3
%
16.8
%
Total GES Adjusted EBITDA: Revenue
$
228,128
$
153,576
$
74,552
48.5
%
Cost of services and products
(214,544
)
(155,170
)
(59,374
)
-38.3
%
Segment operating income (loss)
13,584
(1,594
)
15,178
** Depreciation
2,178
3,220
(1,042
)
-32.4
%
Amortization
982
1,094
(112
)
-10.2
%
Total GES Adjusted EBITDA
$
16,744
$
2,720
$
14,024
** Total GES Operating margin
6.0
%
-1.0
%
7.0
%
Total GES Adjusted EBITDA margin
7.3
%
1.8
%
5.6
%
GES Adjusted EBITDA by Reportable Segment: Spiro
$
3,737
$
742
$
2,995
** GES Exhibitions
13,007
1,978
11,029
** Total GES
$
16,744
$
2,720
$
14,024
** Spiro Revenue
$
60,362
$
42,816
$
17,546
41.0
%
Spiro Adjusted EBITDA Margin
6.2
%
1.7
%
4.5
%
GES Exhibitions Revenue
$
169,497
$
111,831
$
57,666
51.6
%
GES Exhibitions Adjusted EBITDA Margin
7.7
%
1.8
%
5.9
%
(A)
Includes costs related to the development of Pursuit's new FlyOver
attractions in Chicago and Toronto, and Forest Park Hotel in
Canada.
(B)
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.
VIAD CORP AND SUBSIDIARIES TABLE TWO -
NON-GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED) The
following table provides 2022 revenue and Adjusted EBITDA, along
with reconciliations of Adjusted EBITDA to the nearest GAAP
measure, net income attributable to Viad.
2022
($ in thousands) First Quarter Second Quarter Third Quarter Fourth
Quarter Full Year
Viad Consolidated: Net income
(loss) attributable to Viad
$
(29,001
)
$
19,839
$
38,121
$
(5,739
)
$
23,220
Net income (loss) attributable to noncontrolling interest
(1,204
)
451
3,784
(708
)
2,323
Net income (loss) attributable to redeemable noncontrolling
interest
(138
)
(128
)
(88
)
(394
)
(748
)
(Income) loss from discontinued operations
(275
)
(52
)
42
137
(148
)
Net interest expense
5,877
7,761
10,252
11,001
34,891
Income tax expense (benefit)
(2,582
)
3,359
8,810
386
9,973
Depreciation and amortization
13,279
13,207
12,956
13,041
52,483
Gain on sale of ON Services
-
-
-
(19,637
)
(19,637
)
Restructuring charges (recoveries)
654
1,426
1,387
(408
)
3,059
Impairment charges
583
-
-
-
583
Other expense
638
612
280
547
2,077
Start-up costs (A)
431
648
672
418
2,169
Acquisition transaction-related costs
418
91
765
53
1,327
Integration costs
-
119
17
101
237
Remeasurement of finance lease obligation (B)
-
-
4,961
(804
)
4,157
Other non-recurring expenses (C)
8
143
-
-
151
Consolidated Adjusted EBITDA
$
(11,312
)
$
47,476
$
81,959
$
(2,006
)
$
116,117
Consolidated Adjusted EBITDA by Business: Pursuit
$
(11,498
)
$
15,613
$
75,085
$
(11,251
)
$
67,949
Total GES
2,720
35,131
10,685
12,721
61,257
Total Segment EBITDA
(8,778
)
50,744
85,770
1,470
129,206
Corporate EBITDA
(2,534
)
(3,268
)
(3,811
)
(3,476
)
(13,089
)
Consolidated Adjusted EBITDA
$
(11,312
)
$
47,476
$
81,959
$
(2,006
)
$
116,117
Pursuit Adjusted EBITDA: Revenue
$
23,784
$
77,599
$
163,796
$
34,148
$
299,327
Cost of services and products
(44,982
)
(72,028
)
(104,047
)
(54,239
)
(275,296
)
Segment operating income (loss)
(21,198
)
5,571
59,749
(20,091
)
24,031
Depreciation
7,782
7,866
7,501
7,926
31,075
Amortization
1,179
1,316
1,351
1,175
5,021
Start-up costs (A)
431
648
672
418
2,169
Acquisition transaction-related costs
308
93
834
24
1,259
Integration costs
-
119
17
101
237
Remeasurement of finance lease obligation (B)
-
-
4,961
(804
)
4,157
Adjusted EBITDA
$
(11,498
)
$
15,613
$
75,085
$
(11,251
)
$
67,949
Pursuit Operating margin
-89.1
%
7.2
%
36.5
%
-58.8
%
8.0
%
Pursuit Adjusted EBITDA margin
-48.3
%
20.1
%
45.8
%
-32.9
%
22.7
%
Total GES Adjusted EBITDA: Revenue
$
153,576
$
241,604
$
218,925
$
213,879
$
827,984
Cost of services and products
(155,170
)
(210,484
)
(212,335
)
(205,082
)
(783,071
)
Segment operating income (loss)
(1,594
)
31,120
6,590
8,797
44,913
Depreciation
3,220
2,922
2,970
2,802
11,914
Amortization
1,094
1,089
1,125
1,122
4,430
Total GES Adjusted EBITDA
$
2,720
$
35,131
$
10,685
$
12,721
$
61,257
Total GES Operating margin
-1.0
%
12.9
%
3.0
%
4.1
%
5.4
%
Total GES Adjusted EBITDA margin
1.8
%
14.5
%
4.9
%
5.9
%
7.4
%
GES Adjusted EBITDA by Reportable Segment: Spiro
$
742
$
15,750
$
4,688
$
5,795
$
26,975
GES Exhibitions
1,978
19,381
5,997
6,926
34,282
Total GES
$
2,720
$
35,131
$
10,685
$
12,721
$
61,257
Spiro Revenue
$
42,816
$
89,425
$
73,277
$
72,123
$
277,641
Spiro Adjusted EBITDA Margin
1.7
%
17.6
%
6.4
%
8.0
%
9.7
%
GES Exhibitions Revenue
$
111,831
$
154,600
$
147,872
$
143,577
$
557,880
GES Exhibitions Adjusted EBITDA Margin
1.8
%
12.5
%
4.1
%
4.8
%
6.1
%
(A)
Includes costs related to the development of Pursuit's new FlyOver
attractions in Chicago and Toronto, and Forest Park Hotel in
Canada.
(B)
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.
(C)
Includes non-capitalizable fees and expenses related to Viad’s
credit facility refinancing efforts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504005507/en/
Carrie Long or Michelle Porhola Investor Relations (602)
207-2681 ir@viad.com
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