Why did PRSU outperform forecasts in 2024?

Pursuit Attractions and Hospitality Inc. (PRSU) outperformed forecasts in 2024 due to several key factors:

1. **Strong Revenue Growth**: PRSU reported a significant increase in total revenue for 2024, rising from $350.3 million in 2023 to $366.5 million. This growth was primarily driven by higher attractions revenue, which rose by 9.4% to $208.4 million. The company's diversified portfolio of attractions and hospitality experiences, coupled with its strong brand presence, has contributed to this revenue growth.
2. **Earnings Improvement**: PRSU's net income for 2024 was substantial, recording a net income of $373.8 million, a significant increase from $23.5 million in 2023. This improvement can be attributed to the gain from the sale of its GES Business to Truelink Capital, which was completed on December 31, 2024. This strategic move has allowed Pursuit to focus on its core attractions and hospitality business, leading to improved financial performance.
3. **Strategic Asset Management**: PRSU's ownership of its properties, including attractions, hotels, lodges, and retail stores, provides significant control over its operational environment. The company's strategic asset management has ensured that capacity meets current needs, which has been crucial in maintaining adequate and suitable properties for its business operations.
4. **Seasonal Performance**: Although PRSU's business is highly sensitive to seasonal fluctuations, with the majority of its revenue generated in the second and third quarters, the company's performance in 2024 exceeded expectations. This indicates that PRSU has effectively managed to capitalize on peak travel seasons, leading to better-than-expected revenue during traditionally strong periods.

In conclusion, PRSU's outperformance in 2024 can be attributed to strong revenue growth, earnings improvement, strategic asset management, and effective seasonal performance management. These factors combined have enabled the company to surpass market forecasts and deliver robust financial results.