• Revenue: $455.7 million, a 25% increase year over year.
• Consolidated Adjusted EBITDA: $103.1 million, an increase of $16.9 million.
• Adjusted Net Income: Improved by $15.5 million.
• GAAP Net Income: $48.6 million, $7.3 million higher than the previous year.
• Pursuit Revenue: $182.3 million, with an adjusted EBITDA of $86.3 million and a margin of 47.4%.
• GES Revenue: $273.4 million, with an adjusted EBITDA of $20.2 million and a margin of 7.4%.
• Cash from Operations: $110 million generated.
• Capital Expenditures: $15 million spent.
• Debt Repayment: $94 million repaid.
• Total Liquidity: Nearly $230 million with no borrowings on the revolver.
• Total Debt: $398.2 million with a net leverage ratio of 1.7 times.
• Insurance Proceeds: $6 million recovered, including $4.7 million in the third quarter.
• Same-Store Sales: Attractions ticket revenue grew 16%, and room revenue grew 9% outside of Jasper National Park.
• Spire Revenue: $82.2 million, a 40% increase year over year.
• GES Exhibitions Revenue: Increased 60% due to major nonannual shows.

• Warning! GuruFocus has detected 8 Warning Signs with VVI.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Viad Corp (NYSE:VVI) reported strong performance from both Pursuit and GES, with Pursuit's adjusted EBITDA near the high end of guidance and GES exceeding revenue growth expectations.
• The company completed a $15.9 million acquisition for Pursuit's Glacier Park Collection, expanding its offerings in that area.
• Viad Corp (NYSE:VVI) is on track to complete the transformative sale of GES by the end of the year, which will allow Pursuit to become a standalone high-growth, high-margin business.
• Consolidated third-quarter revenue increased by 25% year over year, with adjusted EBITDA rising by $16.9 million.
• The company generated $110 million of cash from operations and repaid $94 million of debt, ending the quarter with nearly $230 million in liquidity and no borrowings on its revolver.

Negative Points

• Pursuit's revenue and adjusted EBITDA were down due to temporary closures and disruptions caused by wildfire activity in Jasper National Park.
• Jasper Lodges and attractions experienced a significant revenue decline of $21.9 million year over year due to the wildfires.
• The company incurred non-cash impairment charges and consulting costs related to the pending sale of GES.
• The temporary reduction of 18% of Jasper's hotel room inventory due to fire damage is expected to cause market compression.
• Viad Corp (NYSE:VVI) anticipates absorbing approximately $12 million to $13 million in standalone public company costs in 2025, impacting financial performance.

Q & A Highlights

Q: Can you provide more details on the performance and future plans for FlyOver Chicago and FlyOver Las Vegas? Are these assets contributing positively to EBITDA, and do you see FlyOver as a growth engine for the new Pursuit entity? A: Steven Moster, Group President, confirmed that FlyOver Chicago is on a positive track and performing well. The focus is on stabilizing these businesses and optimizing their performance. However, there are no current plans to invest in new FlyOver locations, as the company is concentrating on iconic locations.

Q: Regarding Jasper, can you elaborate on the impact of the wildfires on tour travel and long-haul visitation? Are there any changes in plans for 2025 due to the wildfires? A: Steven Moster noted that the demand from tour and travel partners remains strong, with no itinerary changes dropping Jasper. The 2025 travel trade revenue in Jasper is expected to increase by about 12% from 2023. The temporary reduction of hotel rooms is causing market compression, but demand remains robust.

Q: With the separation of GES and Pursuit, how should we model transaction-related costs, and what is the expected timeline for these costs? A: Ellen Ingersoll, CFO, explained that most transaction-related costs will occur in 2024, with some spilling over into 2025. The total transaction costs are estimated at $20 million by year-end, with an additional $5-6 million in 2025.

Q: Can you provide insights into the insurance proceeds from the Jasper wildfires and how they are reflected in the financial statements? A: Ellen Ingersoll stated that $4.7 million was received in the third quarter, totaling $6 million to date. These proceeds are currently on the balance sheet, offsetting impairments, and will be shown as a separate line item on the P&L starting in the fourth quarter.

Q: What opportunities exist for expanding the Sky Lagoon property in Iceland, given its strong demand? A: David Barry, President of Pursuit, highlighted that Sky Lagoon has expanded its high-end experience to accommodate demand. While there are opportunities for further development, such as a boutique hotel, no commitments have been made. The focus remains on enhancing the existing guest experience.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.