Viad (VVI) 7 Nov 24 2024 Q3 Earnings call transcript
The Viad Corp. held its third quarter 2024 earnings conference call, offering insights into the company's performance and strategic moves. Key executives, including Carrie Long, Steve Moster, Ellen Ingersoll, and David Barry, discussed the company's recent accomplishments and future outlook.
Performance Highlights
Pursuit and GES, two core businesses of Viad Corp., reported strong performance during the third quarter. Pursuit's adjusted EBITDA came near the high end of the guidance range, with revenue growth and margin improvement. GES, on the other hand, exceeded expectations with a significant increase in adjusted EBITDA and revenue, driven by strong client spending on major non-annual shows.
Acquisitions and Transformative Sale
Viad Corp. made a strategic move by completing a $15.9 million tuck-in acquisition for Pursuit's Glacier Park Collection. This acquisition is part of Pursuit's Refresh, Build, Buy growth strategy, expanding its offering in the successful area. The company is also on track to complete the sale of GES, which will establish Pursuit as a pure-play, high-growth and high-margin business, providing financial flexibility to accelerate growth in the hospitality and attraction space.
Financial Performance
The consolidated third quarter revenue for Viad Corp. reached $455.7 million, a 25% increase year-over-year. Adjusted EBITDA was $103.1 million, with an improved adjusted net income of $48.6 million. Pursuit reported revenue of $182.3 million and GES delivered consolidated revenue of $273.4 million. Despite temporary closures due to wildfire activity in Jasper National Park, Jasper Lodges and attractions experienced a revenue decline, which was largely offset by growth outside of Jasper. GES, meanwhile, saw significant growth from major non-annual shows.
Outlook and Guidance
Viad Corp. revised its full-year guidance for GES, expecting adjusted EBITDA to range from $90 million to $95 million, up from previous expectations. The company also narrowed the adjusted EBITDA range for Pursuit to $87 million to $92 million. These revisions led to an increased consolidated full-year EBITDA guidance range of $163 million to $172 million. Despite challenges due to wildfire activity in Jasper, the company remains optimistic about the future, citing strong demand, strategic moves, and supportive government efforts to bolster travel to Jasper.
Market Dynamics and Future Prospects
David Barry provided updates on Jasper's reopening following the wildfire activity, highlighting the resilience of the business and the demand for iconic destinations like Jasper. The temporary loss of hotel rooms is expected to cause market compression, which could drive demand for Viad Corp.'s hospitality experiences. The company is actively engaging with insurance carriers to understand potential insurance proceeds and continues to explore opportunities for growth, including the completion of the transformative sale of GES.
In summary, Viad Corp.'s third quarter earnings call highlighted the company's strong performance, strategic moves, and positive outlook for the future. The company's ability to navigate challenges and capitalize on growth opportunities positions it well for future success in the hospitality and attraction space.