Viad (VVI) 6 Aug 24 2024 Q2 Earnings call transcript

Viad Corp recently held its Q2 2024 earnings call, revealing a strong performance across its two main segments, GES and Pursuit. The call was marked by optimism, as well as some challenges related to wildfires affecting one of its key locations.

Financial Performance

The company reported a significant increase in revenue for the quarter, with both GES and Pursuit delivering strong results. GES's adjusted EBITDA exceeded expectations, driven by revenue growth and margin improvement. Pursuit also showed robust performance, with adjusted EBITDA near the high end of the guidance range and strong demand for attractions and lodges.

Growth Opportunities and Challenges

GES's growth was attributed to several factors, including higher revenue per net square foot of event space and the return of same-show square footage to pre-pandemic levels. The company also highlighted its ability to expand its client roster and sell additional services to existing clients in its experiential marketing agency, Spiro. Pursuit, on the other hand, is seeing strong demand across its collections of experiences, with robust cross-selling opportunities between attractions and lodges.

However, the company faces challenges in Jasper National Park due to wildfires, which have led to evacuations and closures. This has resulted in a reduction of Pursuit's full year guidance, but the company remains optimistic about the future and is actively engaged with insurance carriers regarding potential business interruption coverage.

Investor Interactions

During the call, investors raised questions about the impact of the wildfires on Pursuit's business, particularly regarding cancellations and potential insurance recoveries. The company provided updates on the situation and outlined its plans for mitigating the impact.

Looking Ahead

Looking ahead, Viad Corp is focused on executing its client experiences in the second half of the year and is confident in its ability to achieve double-digit full year revenue growth. The company's investments in organic and inorganic growth, including the acquisition of the Jasper SkyTram, signal its commitment to scaling and diversifying its operations.

Conclusion

Overall, Viad Corp's Q2 2024 earnings call highlighted the company's strong performance and its ability to navigate challenges, particularly in the context of the wildfires in Jasper National Park. The company's focus on growth and innovation, as well as its resilience in the face of adversity, positions it well for the future.