Pursuit Attractions' Q4 2024 Earnings Call: Unpacking Contradictions in CapEx, Travel Demand, and Currency Impact

These are the key contradictions discussed in Pursuit Attractions and Hospitality, Inc.'s latest 2024Q4 earnings call, specifically including: CapEx projections and acquisitions, international travel demand, and the impact of the weaker Canadian dollar:



Financial Transformation and Growth Strategy:
- Pursuit Attractions and Hospitality, Inc. reported $368.5 million in net income for the full year 2024, including a $421.9 million pre-tax gain on the sale of GES.
- The sale of GES to Truelink Capital for $535 million transformed the company from a conglomerate structure to a standalone, high-growth attractions and hospitality leader, eliminating high-cost debt and establishing substantial liquidity.
- This transformation enables Pursuit to focus on its Refresh, Build, Buy growth strategy, enhancing shareholder value.

Attractions and Lodging Performance:
- Full-year attractions ticket revenue was $162 million, growing 13% year-over-year on a 6% increase in visitors and higher effective ticket prices.
- The company's lodging properties experienced a strong growth in room revenue of approximately 8% year-over-year, excluding Jasper properties, with same-store RevPAR growing 9% year-over-year.
- The growth was driven by successful investments like FlyOver Chicago and Sky Lagoon expansions, and strategic acquisitions.

Currency Exchange and Market Conditions:
- The company anticipates a $7 million headwind in EBITDA due to a lower Canadian dollar exchange rate of $0.69 for each Canadian dollar.
- Despite this headwind, Pursuit expects an increase in Canadian and U.S. visitors to Canada as the Canadian dollar is weak, potentially boosting demand for their experiences in iconic Canadian locations.

Outlook and Acquisition Opportunities:
- Pursuit projects double-digit growth in full-year revenue and adjusted EBITDA for 2025, with an adjusted EBITDA guidance range of $98 million to $108 million.
- The guidance reflects anticipated recovery in Jasper's leisure travel, contributions from recent tuck-in acquisitions, and new growth investments identified within the existing footprint.
- With a strong balance sheet and low leverage, the company is well-positioned to pursue acquisitions in new iconic locations with high barriers to entry and perennial demand.