Liquidity Position Remains Strong
- Pursuit delivered stronger than expected performance with
60% occupancy despite ongoing border closures and other
restrictions due to COVID-19
- GES continued transformation efforts with additional cost
structure improvements and ongoing focus on securing future
business
- Total available liquidity was $311 million as of September
30, 2020
- Construction of FlyOver Las Vegas and Sky Lagoon attractions
on track for opening in 2021
Viad Corp (NYSE: VVI), a leading provider of experiential
leisure travel and face-to-face events and marketing experiences,
today reported financial results for the third quarter of 2020.
Steve Moster, president and chief executive officer, commented,
“I am very proud of how our team has responded to the challenges
presented by the COVID-19 pandemic, and I am pleased with our
performance during a very difficult third quarter. We kept a keen
focus on cash and finished the quarter with a strong liquidity
position that will enable us to withstand the pandemic and position
our businesses for greater success on the other side.”
Business Update
Regarding Pursuit, Moster commented, “We had a successful third
quarter across Pursuit, with improving revenue trends. Each of our
geographies successfully re-opened and delivered positive EBITDA
during the quarter. Despite ongoing border closures and other
restrictions, we saw Pursuit-wide revenue rise to about 40% of the
prior year levels during August and September driven by strong
demand from our domestic long haul, local and regional markets.
Remarkably, some Pursuit experiences posted year-over-year growth
in the quarter. Occupancy across Pursuit was 60% with select
properties seeing higher average daily rates and RevPAR than 2019.
These results demonstrate the resiliency of our business model, the
strength of our Refresh, Build, Buy strategy, the value of iconic,
inspiring and unforgettable experiences, and the determination of
our team to prevail in the face of significant challenges.”
Regarding GES, Moster commented, “We are seeing strong interest
from exhibitors and attendees to see live events resume. However,
the ongoing pandemic and related government restrictions have kept
the live events market largely closed. At GES, we have responded by
reducing operating costs to minimal essential levels to preserve
liquidity, and we are making structural changes to our delivery
model that will yield ongoing cost-savings when revenues return.
The market disruption caused by the pandemic has provided us a
unique opportunity to accelerate the transformation of GES into a
leaner, more flexible, and more profitable organization. I am very
grateful to our team for responding rapidly to the challenges of
the pandemic and making the difficult decisions necessary to ensure
we weather the storm and emerge stronger.”
Third Quarter 2020 Results
Revenue was $63.1 million, down 82.2% from the 2019 third
quarter reflecting the impact of the COVID-19 pandemic on event
activity and long-distance leisure travel. As compared to the 2020
second quarter, revenue more than doubled as Pursuit entered its
peak tourism season and experienced strong demand from its local
and regional markets, while GES revenue remained at minimal levels.
Net loss attributable to Viad was $30.8 million, versus income of
$31.4 million in the 2019 third quarter. The 2020 net loss included
restructuring charges of $11.3 million primarily related to
cost-reduction efforts across GES. Adjusted segment operating loss*
was $5.8 million, versus income of $56.0 million in the prior year
quarter, and adjusted segment EBITDA* was $8.1 million, versus
$72.3 million in the 2019 third quarter.
* Refer to Table 2 of this press release for a discussion and
reconciliation of this non-GAAP financial measure to its most
directly comparable GAAP financial measure.
Moster commented, “The COVID-19 pandemic continues to have a
meaningful impact on the live events industry and leisure travel,
and our third quarter results reflect that reality. We continue to
believe that virtual cannot replace the value of in-person
experiences and interactions, and we are seeing positive signs for
future demand. At GES, we’re seeing increased RFPs for corporate
business and strong contract pacing for future events. At Pursuit,
our 2021 bookings for many locations are pacing ahead of the same
time last year. These are indicators that our guests and clients
are eager to explore and convene when it is safe and possible to do
so. That said, given the evolving, uncertain nature of COVID-19, it
is not possible to predict how the pandemic and government
reactions will continue to impact the events industry and the
broader travel market. Accordingly, we will not be re-issuing
financial guidance at this time.”
Liquidity and Capital Deployment
As of September 30, 2020, our total available liquidity was
approximately $311 million, comprising $56.5 million in cash,
$209.8 million of available capacity on our revolving credit
facility, and an additional $45 million available to us through a
delayed draw commitment from Crestview Partners. On August 5, 2020,
we announced that Crestview Partners made an initial investment of
$135 million in newly issued perpetual convertible preferred stock,
with a delayed draw commitment of up to an additional $45 million.
We also announced an amendment to our $450 million credit facility
that waives our existing leverage ratio and interest coverage tests
until the third quarter of 2022. During the waiver period, those
tests are replaced by a minimum liquidity requirement of $125
million that drops to $100 million on December 31, 2020. That press
release can be accessed on our website at www.viad.com.
Our third quarter cash flow from operations was an outflow of
approximately $14.7 million, reflecting inflows from Pursuit that
partially offset outflows at GES and corporate. Our cash flow from
investing activities was a net inflow of approximately $9.6
million, which included proceeds of about $17.1 million from the
sale of a GES warehouse and other assets, which more than offset
capital expenditures of $7.5 million mainly at Pursuit.
As of September 30, 2020, our debt totaled $259.1 million, down
from $475.1 million at the end of the second quarter. During the
quarter, we repaid $217.0 million of our outstanding revolver
balance bringing the total amount outstanding down to $230.5
million as of September 30, 2020. Our revolver matures in October
2023. The remaining debt balance at the end of the quarter
primarily comprises financing lease obligations.
Moster commented, “The actions we have taken to strengthen our
liquidity position, including the capital investment from
Crestview, $46 million raised through asset dispositions,
aggressive cost reductions, and the amendment of our credit
facility, put us on solid financial footing. Unlike many
competitors, we are fortunate to be in a position of relative
strength with the ability to resume important growth investments
like FlyOver Las Vegas. Construction for this new attraction
restarted in September and we are on track to have it open in the
2021 third quarter. Additionally, construction of our new Sky
Lagoon attraction in Iceland remains on course for a second quarter
2021 opening.”
Moster concluded, “In this challenging and uncertain
environment, we are being very selective about where we invest our
precious capital. We are committed to closely managing cash flows
to withstand the pandemic and return to a path of strong value
creation for our shareholders.”
Conference Call Details
Viad will host a conference
call on Thursday, October 29, 2020, at 5:00 p.m. (Eastern Time) to
review third quarter 2020 results. To join the live conference
call, please register at least 10 minutes before the start of the
call using the following link:
www.directeventreg.com/registration/event/3631458. After
registering, an email confirmation will be sent that includes
dial-in information as well as unique codes for entry into the live
call. Registration will be open throughout the call. However, we
recommend that you register a day in advance to ensure access for
the full call.
A live audio webcast of the
call will also be available in listen-only mode through the
"Investors" section of our website. A replay of the webcast will be
available on our website shortly after the call and, for a limited
time, by calling (800) 585-8367 or (416) 621-4642 and entering the
passcode 3631458.
About Viad
Viad (NYSE: VVI), a leading provider of experiential leisure
travel and face-to-face events and marketing experiences, generates
revenue and shareholder value through two businesses: Pursuit and
GES. Pursuit is a collection of inspiring and unforgettable travel
experiences in Alaska, Montana, the Canadian Rockies, Vancouver,
and Reykjavik, as well as new experiences in development in Las
Vegas and Toronto. Pursuit’s collection includes attractions,
lodges and hotels, and sightseeing tours that connect guests with
iconic places. GES is a global, full-service live events company
offering a comprehensive range of services to the world's leading
brands and event organizers. Our business strategy focuses on
providing superior experiential services to our customers and
sustainable returns on invested capital to our shareholders. Viad
is an S&P SmallCap 600 company. For more information, visit
www.viad.com.
Forward-Looking Statements
This press release contains a number of forward-looking
statements. Words, and variations of words, such as “will,” “may,”
“expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,”
“estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,”
“target,” “outlook,” and similar expressions are intended to
identify our forward-looking statements. Similarly, statements that
describe our business strategy, outlook, objectives, plans,
intentions or goals also are forward-looking statements. These
forward-looking statements are not historical facts and are subject
to a host of risks and uncertainties, many of which are beyond our
control, which could cause actual results to differ materially from
those in the forward-looking statements.
Important factors that could cause actual results to differ
materially from those described in our forward-looking statements
include, but are not limited to, the following:
- the impact of the COVID-19 pandemic on our financial condition,
liquidity, and cash flow;
- our ability to successfully integrate and achieve established
financial and strategic goals from acquisitions;
- general economic uncertainty in key global markets and a
worsening of global economic conditions;
- our dependence on large exhibition event clients;
- the importance of key members of our account teams to our
business relationships;
- the competitive nature of the industries in which we
operate;
- travel industry disruptions;
- unanticipated delays and cost overruns of our capital projects,
and our ability to achieve established financial and strategic
goals for such projects;
- seasonality of our businesses;
- transportation disruptions and increases in transportation
costs;
- natural disasters, weather conditions, and other catastrophic
events;
- our multi-employer pension plan funding obligations;
- our exposure to labor cost increases and work stoppages related
to unionized employees;
- liabilities relating to prior and discontinued operations;
- adverse effects of show rotation on our periodic results and
operating margins;
- our exposure to currency exchange rate fluctuations;
- our exposure to cybersecurity attacks and threats;
- compliance with laws governing the storage, collection,
handling, and transfer of personal data and our exposure to legal
claims and fines for data breaches or improper handling of such
data;
- the effects of the United Kingdom’s exit from the European
Union; and
- changes affecting the London Inter-bank Offered Rate.
For a more complete discussion of the risks and uncertainties
that may affect our business or financial results, please see Item
1A, “Risk Factors,” of our most recent annual report on Form 10-K
filed with the SEC and Item 1A, “Risk Factors,” of the Company’s
Quarterly Report on Form 10-Q for the quarterly period ended June
30, 2020. We disclaim and do not undertake any obligation to update
or revise any forward-looking statement in this press release
except as required by applicable law or regulation.
VIAD CORP AND SUBSIDIARIES TABLE ONE - QUARTERLY
RESULTS (UNAUDITED)
Three months ended September
30,
Nine months ended September
30,
($ in thousands, except per share data)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Revenue: GES: (Note A) North America
$
11,767
$
185,124
$
(173,357
)
-93.6
%
$
273,423
$
666,825
$
(393,402
)
-59.0
%
EMEA
2,774
39,300
(36,526
)
-92.9
%
52,096
156,473
(104,377
)
-66.7
%
Intersegment eliminations
(284
)
(5,724
)
5,440
95.0
%
(3,258
)
(14,731
)
11,473
77.9
%
Total GES
14,257
218,700
(204,443
)
-93.5
%
322,261
808,567
(486,306
)
-60.1
%
Pursuit
48,815
135,043
(86,228
)
-63.9
%
67,602
201,119
(133,517
)
-66.4
%
Total revenue
$
63,072
$
353,743
$
(290,671
)
-82.2
%
$
389,863
$
1,009,686
$
(619,823
)
-61.4
%
Segment operating income (loss): GES: North America
$
(10,986
)
$
(8,562
)
$
(2,424
)
-28.3
%
$
(28,194
)
$
22,635
$
(50,829
)
** EMEA
(7,262
)
(3,024
)
(4,238
)
**
(11,256
)
2,775
(14,031
)
** Total GES
(18,248
)
(11,586
)
(6,662
)
-57.5
%
(39,450
)
25,410
(64,860
)
** Pursuit
11,467
66,392
(54,925
)
-82.7
%
(26,499
)
64,710
(91,209
)
**
Segment operating income (loss)
(6,781
)
54,806
(61,587
)
**
(65,949
)
90,120
(156,069
)
** Corporate eliminations
16
16
-
0.0
%
48
49
(1
)
-2.0
%
Corporate activities (Note B)
(2,645
)
(2,680
)
35
1.3
%
(5,902
)
(7,795
)
1,893
24.3
%
Restructuring charges (Note C)
(11,259
)
(1,702
)
(9,557
)
**
(12,370
)
(6,845
)
(5,525
)
-80.7
%
Impairment charges (Note D)
(676
)
-
(676
)
**
(203,076
)
-
(203,076
)
** Legal settlement (Note E)
-
-
-
**
-
(8,500
)
8,500
-100.0
%
Pension plan withdrawal (Note F)
-
-
-
**
(462
)
(15,508
)
15,046
97.0
%
Other expense
(210
)
(281
)
71
25.3
%
(894
)
(1,192
)
298
25.0
%
Net interest expense (Note G)
(5,450
)
(3,661
)
(1,789
)
-48.9
%
(14,399
)
(9,352
)
(5,047
)
-54.0
%
Income (loss) from continuing operations before income taxes
(27,005
)
46,498
(73,503
)
**
(303,004
)
40,977
(343,981
)
** Income tax expense (Note H)
(735
)
(11,891
)
11,156
93.8
%
(20,454
)
(10,861
)
(9,593
)
-88.3
%
Income (loss) from continuing operations
(27,740
)
34,607
(62,347
)
**
(323,458
)
30,116
(353,574
)
** Income (loss) from discontinued operations (Note I)
(989
)
(141
)
(848
)
**
(1,822
)
32
(1,854
)
** Net income (loss)
(28,729
)
34,466
(63,195
)
**
(325,280
)
30,148
(355,428
)
** Net (income) loss attributable to noncontrolling interest
(2,331
)
(3,418
)
1,087
31.8
%
636
(3,329
)
3,965
** Net loss attributable to redeemable noncontrolling interest
302
368
(66
)
-17.9
%
1,023
644
379
58.9
%
Net income (loss) attributable to Viad
$
(30,758
)
$
31,416
$
(62,174
)
**
$
(323,621
)
$
27,463
$
(351,084
)
** Amounts Attributable to Viad Common Stockholders:
Income (loss) from continuing operations
$
(29,769
)
$
31,557
$
(61,326
)
**
$
(321,799
)
$
27,431
$
(349,230
)
** Income (loss) from discontinued operations (Note I)
(989
)
(141
)
(848
)
**
(1,822
)
32
(1,854
)
**
Net income (loss)
$
(30,758
)
$
31,416
$
(62,174
)
**
$
(323,621
)
$
27,463
$
(351,084
)
** Diluted income (loss) per common share: Income
(loss) from continuing operations attributable to Viad common
shareholders
$
(1.54
)
$
1.54
$
(3.08
)
**
$
(15.98
)
$
1.33
$
(17.31
)
** Income (loss) from discontinued operations attributable to Viad
common shareholders
(0.05
)
(0.01
)
(0.04
)
**
(0.09
)
-
(0.09
)
**
Net income (loss) attributable to Viad common
shareholders
$
(1.59
)
$
1.53
$
(3.12
)
**
$
(16.07
)
$
1.33
$
(17.40
)
** Basic income (loss) per common share: Income
(loss) from continuing operations attributable to Viad common
shareholders
$
(1.54
)
$
1.54
$
(3.08
)
**
$
(15.98
)
$
1.33
$
(17.31
)
** Income (loss) from discontinued operations attributable to Viad
common shareholders
(0.05
)
(0.01
)
(0.04
)
**
(0.09
)
-
(0.09
)
**
Net income (loss) attributable to Viad common
shareholders
$
(1.59
)
$
1.53
$
(3.12
)
**
$
(16.07
)
$
1.33
$
(17.40
)
** Common shares treated as outstanding for income
(loss) per share calculations: Weighted-average outstanding common
shares
20,293
20,168
125
0.6
%
20,263
20,129
134
0.7
%
Weighted-average outstanding and potentially dilutive common shares
20,293
20,311
(18
)
-0.1
%
20,263
20,267
(4
)
0.0
%
** Change is greater than +/- 100 percent
VIAD
CORP AND SUBSIDIARIES TABLE ONE - NOTES TO QUARTERLY
RESULTS (UNAUDITED) (A) GES Revenue — During the
third quarter of 2020, we identified prior period errors related to
the recognition of revenue of our Corporate Accounts’ third-party
services. Revenue from these services should have been recorded
net. Whereas previously, we recorded this revenue on a gross basis,
thus overstating revenue and cost of services by the same amount.
As a result, GES' prior period revenue shown in this press release
has been corrected to reflect this gross-to-net adjustment. We
determined that the error is not material to the previously issued
financial statements. The following table provides a reconciliation
of previously reported revenue to the corrected figures for 2020
and 2019:
2020
2019
1st Quarter 2nd Quarter June YTD 1st Quarter 2nd Quarter 3rd
Quarter 4th Quarter Full Year Total GES revenue as previously
reported
$
292,485
$
25,599
$
318,084
$
274,927
$
346,870
$
227,445
$
299,640
$
1,148,882
Gross to net correction for GES North America
(8,708
)
(170
)
(8,878
)
(8,799
)
(16,423
)
(6,859
)
(15,216
)
(47,297
)
Gross to net correction for GES EMEA
(1,092
)
(110
)
(1,202
)
(1,307
)
(5,401
)
(1,886
)
(1,583
)
(10,177
)
Total GES revenue as corrected
$
282,685
$
25,319
$
308,004
$
264,821
$
325,046
$
218,700
$
282,841
$
1,091,408
(B) Corporate Activities — The decrease in corporate
activities expense during the nine months ended September 30, 2020
relative to 2019 was primarily due to lower headcount, lower
performance-based compensation expense as we reduced our estimated
performance achievement to zero as a result of COVID-19, and higher
acquisition transaction-related costs in 2019, offset in part by
fees and expenses related to the equity raise and credit facility
amendment. (C) Restructuring Charges — Restructuring charges
during the three and nine months ended September 30, 2020 and 2019
were primarily related to the elimination of positions and facility
closures at GES, as well as charges related to the closure and
liquidation of GES' UK-based audio-visual services business during
the 2020 third quarter. The 2019 actions arose in connection with
our ongoing efforts to simplify and transform GES for greater
profitability. In response to the COVID-19 pandemic in 2020, we
accelerated our transformation and streamlining efforts at GES to
significantly reduce costs and create a lower and more flexible
cost structure focused on servicing our more profitable market
segments. The 2020 charges also included amounts related to the
elimination of positions at our corporate office in response to the
pandemic. (D) Impairment Charges — During the three months
ended September 30, 2020, we recorded a fixed asset impairment
charge of $0.7 million. During the nine months ended September
30,2020, we recorded non-cash goodwill impairments of $185.8
million, a non-cash impairment charge to intangible assets of $15.7
million, and fixed asset impairment charges of $1.6 million.
(E) Legal Settlement — During 2019, we recorded a charge to resolve
a legal dispute at GES involving a former industry contractor.
(F) Pension Plan Withdrawal — During 2019, we finalized the
terms of a new collective-bargaining agreement with the Teamsters
727 union. The terms included a withdrawal from the under-funded
Central States Pension Plan. Accordingly, we recorded a charge of
$15.5 million, which represented the estimated present value of
future contributions we will be required to make to the plan as a
result of this withdrawal from the plan. Additionally, in 2020, we
recorded $0.5 million related to the withdrawal from one of our
multi-employer plans. (G) Net Interest Expense — The
increase in net interest expense for the three and nine months
ended September 30, 2020 relative to 2019 was primarily due to
higher debt balances in 2020. (H) Income Taxes — The
effective rate was a negative 3% for the three months ended
September 30, 2020 and 26% for the three months ended September
30,2019. The effective rate was negative 7% for the nine months
ended September 30, 2020 and 27% for the nine months ended
September 30, 2019. The negative effective tax rates for the three
and nine months ended September 30, 2020 were due to no tax
benefits being recorded in our U.S., United Kingdom, and other
European jurisdictions as a result of recording a valuation
allowance during the second quarter of 2020 against our net
deferred tax assets in these jurisdictions due to our belief that
it is more likely than not that we will be unable to realize the
tax benefits from our current year losses in these jurisdictions.
(I) Income (Loss) from Discontinued Operations — Loss from
discontinued operations during the three and nine months ended
September 30, 2020 was primarily due to a settlement and legal
expenses related to previously sold operations. Income from
discontinued operations for the nine months ended September 30,
2019 was primarily related to a favorable legal settlement related
to previously sold operations partially offset by legal expenses.
Three months ended September
30,
Nine months ended September
30,
($ in thousands, except per share data)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Net income (loss) attributable to Viad
$
(30,758
)
$
31,416
$
(62,174
)
**
$
(323,621
)
$
27,463
$
(351,084
)
** Less: Allocation to nonvested shares
-
(226
)
226
-100.0
%
-
(196
)
196
-100.0
%
Convertible preferred stock dividends
(1,134
)
-
(1,134
)
**
(1,134
)
-
(1,134
)
** Adjustment to the redemption value of redeemable noncontrolling
interest
(432
)
(264
)
(168
)
-63.6
%
(890
)
(530
)
(360
)
-67.9
%
Net income (loss) allocated to Viad common shareholders
$
(32,324
)
$
30,926
$
(63,250
)
**
$
(325,645
)
$
26,737
$
(352,382
)
** Weighted-average outstanding common shares
20,293
20,168
125
0.6
%
20,263
20,129
134
0.7
%
Basic income (loss) per common share attributable
to Viad common shareholders
$
(1.59
)
$
1.53
$
(3.12
)
**
$
(16.07
)
$
1.33
$
(17.40
)
** ** Change is greater than +/- 100 percent
VIAD
CORP AND SUBSIDIARIES TABLE TWO - NON-GAAP FINANCIAL
MEASURES (UNAUDITED) IMPORTANT DISCLOSURES
REGARDING NON-GAAP FINANCIAL MEASURES This document
includes the presentation of "Income/(Loss) Before Other Items",
"Adjusted EBITDA", "Adjusted Segment EBITDA" and "Adjusted Segment
Operating Income/(Loss)", which are supplemental to results
presented under accounting principles generally accepted in the
United States of America (“GAAP”) and may not be comparable to
similarly titled measures presented by other companies. These
non-GAAP measures are utilized by management to facilitate
period-to-period comparisons and analysis of Viad’s operating
performance and should be considered in addition to, but not as
substitutes for, other similar measures reported in accordance with
GAAP. The use of these non-GAAP financial measures is limited,
compared to the GAAP measure of net income attributable to Viad,
because they do not consider a variety of items affecting Viad’s
consolidated financial performance as reconciled below. Because
these non-GAAP measures do not consider all items affecting Viad’s
consolidated financial performance, a user of Viad’s financial
information should consider net income attributable to Viad as an
important measure of financial performance because it provides a
more complete measure of the Company’s performance.
Income/(Loss) Before Other Items and Adjusted Segment Operating
Income/(Loss) are considered useful operating metrics, in addition
to net income attributable to Viad, as potential variations arising
from non-operational expenses/income are eliminated, thus resulting
in additional measures considered to be indicative of Viad’s
performance. Management believes that the presentation of Adjusted
EBITDA and Adjusted Segment EBITDA provide useful information to
investors regarding Viad’s results of operations for trending,
analyzing and benchmarking the performance and value of Viad’s
business. Management also believes that the presentation of
Adjusted Segment EBITDA for acquisitions and other major capital
projects enables investors to assess how effectively management is
investing capital into major corporate development projects, both
from a valuation and return perspective.
Three months ended September
30,
Nine months ended September
30,
($ in thousands)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Income (loss) before other items: Net income (loss)
attributable to Viad
$
(30,758
)
$
31,416
$
(62,174
)
**
$
(323,621
)
$
27,463
$
(351,084
)
** (Income) loss from discontinued operations attributable to Viad
989
141
848
**
1,822
(32
)
1,854
** Income (loss) from continuing operations attributable to Viad
(29,769
)
31,557
(61,326
)
**
(321,799
)
27,431
(349,230
)
** Restructuring charges, pre-tax
11,259
1,702
9,557
**
12,370
6,845
5,525
80.7
%
Impairment charges, pre-tax
676
-
676
**
203,076
-
203,076
** Legal settlement, pre-tax
-
-
-
**
-
8,500
(8,500
)
-100.0
%
Pension plan withdrawal, pre-tax
-
-
-
**
462
15,508
(15,046
)
-97.0
%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
1,462
1,493
(31
)
-2.1
%
4,773
3,511
1,262
35.9
%
Tax benefit on above items
(36
)
(724
)
688
95.0
%
(122
)
(8,519
)
8,397
98.6
%
(Favorable) unfavorable tax matters
-
(2,105
)
2,105
-100.0
%
25,500
(2,105
)
27,605
** Net loss attributable to FlyOver Iceland noncontrolling interest
-
(242
)
242
-100.0
%
-
(518
)
518
-100.0
%
Income (loss) before other items
$
(16,408
)
$
31,681
$
(48,089
)
**
$
(75,740
)
$
50,653
$
(126,393
)
** (per diluted share)
Income (loss) before other
items: Net income (loss) attributable to Viad
$
(1.59
)
$
1.53
$
(3.12
)
**
$
(16.07
)
$
1.33
$
(17.40
)
** (Income) loss from discontinued operations attributable to Viad
0.05
0.01
0.04
**
0.09
-
0.09
** Income (loss) from continuing operations attributable to Viad
(1.54
)
1.54
(3.08
)
**
(15.98
)
1.33
(17.31
)
** Restructuring charges, pre-tax
0.55
0.08
0.47
**
0.61
0.34
0.27
79.4
%
Impairment charges, pre-tax
0.03
-
0.03
**
10.02
-
10.02
** Legal settlement, pre-tax
-
-
-
**
-
0.42
(0.42
)
-100.0
%
Pension plan withdrawal, pre-tax
-
-
-
**
0.02
0.76
(0.74
)
-97.4
%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
0.07
0.07
-
0.0
%
0.24
0.17
0.07
41.2
%
Tax benefit on above items
-
(0.02
)
0.02
-100.0
%
(0.01
)
(0.39
)
0.38
97.4
%
(Favorable) unfavorable tax matters
-
(0.10
)
0.10
-100.0
%
1.26
(0.10
)
1.36
** Equity related adjustments (Note B)
0.08
-
0.08
**
0.10
-
0.10
** Net loss attributable to FlyOver Iceland noncontrolling interest
-
(0.01
)
0.01
-100.0
%
-
(0.03
)
0.03
-100.0
%
Income (loss) before other items
$
(0.81
)
$
1.56
$
(2.37
)
**
$
(3.74
)
$
2.50
$
(6.24
)
** ($ in thousands)
Adjusted EBITDA: Net
income (loss) attributable to Viad
$
(30,758
)
$
31,416
$
(62,174
)
**
$
(323,621
)
$
27,463
$
(351,084
)
** (Income) loss from discontinued operations attributable to Viad
989
141
848
**
1,822
(32
)
1,854
** Impairment charges, pre-tax
676
-
676
**
203,076
-
203,076
** Interest expense
5,508
3,740
1,768
47.3
%
14,712
9,612
5,100
53.1
%
Income tax expense
735
11,891
(11,156
)
-93.8
%
20,454
10,861
9,593
88.3
%
Depreciation and amortization
13,916
16,346
(2,430
)
-14.9
%
43,051
44,061
(1,010
)
-2.3
%
Other noncontrolling interest
(1,547
)
(1,819
)
272
15.0
%
(2,876
)
(2,086
)
(790
)
-37.9
%
Adjusted EBITDA
$
(10,481
)
$
61,715
$
(72,196
)
**
$
(43,382
)
$
89,879
$
(133,261
)
** (A) Acquisition-related costs and other
non-recurring expenses include:
Three months ended September
30,
Nine months ended September
30,
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Acquisition integration costs - Pursuit1
$
1
$
235
$
(234
)
-99.6
%
61
268
(207
)
-77.2
%
Acquisition transaction-related costs - Pursuit1
(2
)
83
(85
)
**
(16
)
354
(370
)
** Acquisition transaction-related costs - Corporate2
4
297
(293
)
-98.7
%
183
1,347
(1,164
)
-86.4
%
Attraction start-up costs1, 3
1,014
878
136
15.5
%
2,864
1,542
1,322
85.7
%
Other non-recurring expenses4
445
-
445
**
1,681
-
1,681
** Acquisition-related and other non-recurring expenses, pre-tax
$
1,462
$
1,493
$
(31
)
-2.1
%
$
4,773
$
3,511
$
1,262
35.9
%
1 Included in segment operating income (loss) 2 Included in
corporate activities 3 Includes costs related to the development of
Pursuit's new FlyOver attractions in Iceland, Las Vegas, and
Toronto and the Sky Lagoon in Iceland. 4 Includes advisory fees
related to Viad's capital raise and credit facility amendment in
response to the COVID-19 pandemic. (B) Equity related
adjustments include convertible preferred stock dividends and an
adjustment to the redemption value of redeemable noncontrolling
interest. ** Change is greater than +/- 100 percent
VIAD CORP AND SUBSIDIARIES TABLE TWO - NON-GAAP FINANCIAL
MEASURES (CONTINUED) (UNAUDITED) Organic - The
term "organic" is used within this document to refer to results
without the impact of exchange rate variances and acquisitions, if
any, until such acquisitions are included in the entirety of both
comparable periods. The impact of exchange rate variances (or "FX
Impact") is calculated as the difference between current period
activity translated at the current period's exchange rates and the
comparable prior period's exchange rates. Management believes that
the presentation of "organic" results permits investors to better
understand Viad's performance without the effects of exchange rate
variances or acquisitions. Three months ended September 30,
2020 Three months ended September 30, 2019 ($ in thousands) As
Reported Acquisitions(Note A) FX Impact Organic As Reported
Acquisitions(Note A) Organic
Viad Consolidated:
Revenue
$
63,072
$
-
$
(131
)
$
63,203
$
353,743
$
-
$
353,743
Net income (loss) attributable to Viad
$
(30,758
)
$
31,416
Net income attributable to noncontrolling interest
2,331
3,418
Net loss attributable to redeemable noncontrolling interest
(302
)
(368
)
Loss from discontinued operations
989
141
Income tax expense
735
11,891
Net interest expense
5,450
3,661
Other expense
210
281
Impairment charges
676
-
Restructuring charges
11,259
1,702
Corporate activities expense
2,645
2,680
Corporate eliminations
(16
)
(16
)
Segment operating income (loss)
$
(6,781
)
$
-
$
(262
)
$
(6,519
)
$
54,806
$
-
$
54,806
Attraction start-up costs (B)
1,014
-
-
1,014
878
-
878
Integration costs
1
-
-
1
235
-
235
Acquisition transaction-related costs
(2
)
-
-
(2
)
83
-
83
Adjusted segment operating income (loss)
(5,768
)
-
(262
)
(5,506
)
56,002
-
56,002
Segment depreciation
11,441
-
(13
)
11,454
12,654
-
12,654
Segment amortization
2,463
-
(27
)
2,490
3,635
-
3,635
Adjusted segment EBITDA
$
8,136
$
-
$
(302
)
$
8,438
$
72,291
$
-
$
72,291
Adjusted segment operating margin
-9.1
%
**
-8.7
%
15.8
%
15.8
%
Adjusted segment EBITDA margin
12.9
%
**
13.4
%
20.4
%
20.4
%
GES: Revenue
$
14,257
$
-
$
126
$
14,131
$
218,700
$
-
$
218,700
Segment operating loss
$
(18,248
)
$
-
$
(260
)
$
(17,988
)
$
(11,586
)
$
-
$
(11,586
)
Adjusted segment operating loss
(18,248
)
-
(260
)
(17,988
)
(11,586
)
-
(11,586
)
Depreciation
5,266
-
30
5,236
6,199
-
6,199
Amortization
1,401
-
4
1,397
2,587
-
2,587
Adjusted segment EBITDA
$
(11,581
)
$
-
$
(226
)
$
(11,355
)
$
(2,800
)
$
-
$
(2,800
)
Adjusted segment operating margin ** ** **
-5.3
%
-5.3
%
Adjusted segment EBITDA margin
-81.2
%
**
-80.4
%
-1.3
%
-1.3
%
GES North America: Revenue
$
11,767
$
-
$
(2
)
$
11,769
$
185,124
$
-
$
185,124
Segment operating loss
$
(10,986
)
$
-
$
12
$
(10,998
)
$
(8,562
)
$
-
$
(8,562
)
Adjusted segment operating loss
(10,986
)
-
12
(10,998
)
(8,562
)
-
(8,562
)
Depreciation
4,357
-
(2
)
4,359
4,927
-
4,927
Amortization
1,312
-
-
1,312
2,330
-
2,330
Adjusted segment EBITDA
$
(5,317
)
$
-
$
10
$
(5,327
)
$
(1,305
)
$
-
$
(1,305
)
Adjusted segment operating margin
-93.4
%
**
-93.4
%
-4.6
%
-4.6
%
Adjusted segment EBITDA margin
-45.2
%
**
-45.3
%
-0.7
%
-0.7
%
GES EMEA: Revenue
$
2,774
$
-
$
128
$
2,646
$
39,300
$
-
$
39,300
Segment operating loss
$
(7,262
)
$
-
$
(272
)
$
(6,990
)
$
(3,024
)
$
-
$
(3,024
)
Adjusted segment operating loss
(7,262
)
-
(272
)
(6,990
)
(3,024
)
-
(3,024
)
Depreciation
909
-
32
877
1,272
-
1,272
Amortization
89
-
4
85
257
-
257
Adjusted segment EBITDA
$
(6,264
)
$
-
$
(236
)
$
(6,028
)
$
(1,495
)
$
-
$
(1,495
)
Adjusted segment operating margin ** ** **
-7.7
%
-7.7
%
Adjusted segment EBITDA margin ** ** **
-3.8
%
-3.8
%
Pursuit: Revenue
$
48,815
$
-
$
(257
)
$
49,072
$
135,043
$
-
$
135,043
Segment operating income
$
11,467
$
-
$
(2
)
$
11,469
$
66,392
$
-
$
66,392
Integration costs
1
-
-
1
235
-
235
Acquisition transaction-related costs
(2
)
-
-
(2
)
83
-
83
Attraction start-up costs (B)
1,014
-
-
1,014
878
-
878
Adjusted segment operating income
12,480
-
(2
)
12,482
67,588
-
67,588
Depreciation
6,175
-
(43
)
6,218
6,455
-
6,455
Amortization
1,062
-
(31
)
1,093
1,048
-
1,048
Adjusted segment EBITDA
$
19,717
$
-
$
(76
)
$
19,793
$
75,091
$
-
$
75,091
Adjusted segment operating margin
25.6
%
0.8
%
25.4
%
50.0
%
50.0
%
Adjusted segment EBITDA margin
40.4
%
29.6
%
40.3
%
55.6
%
55.6
%
(A) No acquisitions were completed during the three months
ended September 30, 2020 or September 30, 2019. (B) Includes costs
related to the development of Pursuit's new FlyOver attractions in
Iceland, Las Vegas, and Toronto and the Sky Lagoon in Iceland.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201029006115/en/
Carrie Long Investor Relations (602) 207-2681 ir@viad.com
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