Financial Position Remains Solid and Actions
to Strengthen Business Continue
- Total available liquidity was approximately $260 million as
of December 31, 2020
- Pursuit resumes its growth journey with two new attractions
to open in 2021
- GES continues to prepare for return of live events
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 2020 fourth quarter and
full year. The company continued its sharp focus on cash flow
management, while making important progress on initiatives that
will position the company for stronger results in 2021 and
beyond.
Steve Moster, president and chief executive officer, commented,
“Our industries have been some of the hardest hit by the COVID-19
pandemic, and I am extremely grateful for the tireless efforts of
our team to help our company successfully navigate through this
challenging period. Not only have we solidified our liquidity
position and dramatically reduced our expenses, but we have also
taken actions that will accelerate our recovery and position us for
greater success on the other side.”
Regarding Pursuit, Moster commented, “At Pursuit, we maximized
revenue and profits during the peak summer tourism season by
catering to local and regional guests with diligent cost management
down to the property level, and an unrelenting focus on guest
experience. We also continued to push forward with some important
growth projects, including our new Sky Lagoon attraction in Iceland
and FlyOver Las Vegas, which are both on schedule to open this
year.”
Regarding GES, Moster commented, “At GES, we brought expenses
down to minimum essential levels while maintaining our strong
client relationships and bolstering our corporate client roster. We
also made important structural changes that have freed up capital,
reduced our fixed costs, and positioned GES to flex up when revenue
returns with a more variable cost structure and improved
margins.”
Moster concluded, “As we begin 2021, our industries continue to
feel the effects of the pandemic, with muted leisure travel and
sparse live event activity. We are fortunate to have a strong
liquidity position and we remain optimistic about the future for
both of our businesses. We expect that leisure travel will lead the
way in the travel sector’s post-pandemic recovery and Pursuit’s
experiences in iconic locations are well-positioned to benefit from
pent-up perennial demand. The recovery at GES will likely take
longer to unfold, but live events are taking place in some
locations and the level of bookings in the back half of 2021 is
encouraging. Our clients remain eager to return to face-to-face
events and we are ready to support them.”
Fourth Quarter and Full Year 2020 Results
Fourth quarter revenue was $27.9 million, down from $300.7
million in the 2019 fourth quarter, reflecting the impact of the
COVID-19 pandemic on live events and leisure travel. Revenue from
Pursuit was down approximately 58% from the 2019 fourth quarter, as
Pursuit welcomed primarily regional and domestic long-haul
visitors, while border closures and pandemic concerns constrained
international travel. GES revenue was down approximately 93% from
the 2019 fourth quarter, as GES supported clients primarily through
virtual events and planning for future events, while face-to-face
event activity remained at minimal levels. The fourth quarter net
loss attributable to Viad was $50.5 million and our adjusted
segment EBITDA* was negative $30.2 million.
Full year revenue was $415.4 million, down approximately 68%
from $1.3 billion in 2019, with declines of approximately 66% at
Pursuit and 69% at GES. The full year net loss attributable to Viad
was $374.1 million, versus income of $22.0 million in 2019. The
2020 loss included non-cash impairment charges of $203.1 million,
unfavorable tax matters of $25.5 million, restructuring and
restructuring-related charges of $18.7 million primarily related to
cost-reduction efforts across GES, and other non-recurring expenses
of $6.7 million. Full year adjusted segment EBITDA* was negative
$50.2 million, versus positive $152.7 million in 2019.
* 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, “We entered 2020 with great momentum and
posted revenue growth of 8.5% during the first two months of the
year. When the pandemic hit, we quickly shifted gears in response
to the abrupt revenue decline, and implemented sweeping cost
reductions and enhanced safety measures across Viad that have
helped us weather this unprecedented year. Importantly, we did so
while continuing to advance our growth strategies with two new
attractions set to open in the coming year, and delivering great
hospitality and service to our guests and clients. While our full
year financial performance looks nothing like we expected it would
at the beginning of 2020, I am incredibly proud of what our team
accomplished. In this upcoming year of recovery, I am confident
that the strength, drive, creativity, and flexibility of our team
will help us succeed.”
Liquidity and Capital Deployment
As of December 31, 2020, our total available liquidity was
approximately $260 million, comprising approximately $40 million in
unrestricted cash, approximately $175 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.
During the 2020 fourth quarter, our total available liquidity
decreased by approximately $50 million. Our fourth quarter cash
flow from operations was an outflow of approximately $38 million
and our capital expenditures totaled $13.5 million, which included
the development of Pursuit’s FlyOver Las Vegas attraction.
As of December 31, 2020, our debt totaled $296.4 million,
primarily comprising approximately $267 million drawn on our $450
million revolving credit facility, which matures in October 2023.
Our remaining debt balance at the end of 2020 primarily comprises
financing lease obligations and a term loan at FlyOver Iceland.
Moster commented, “During the course of 2020, we have solidified
our liquidity position and ended the year with net debt that was
approximately $23 million lower than December 31, 2019. We
accomplished this by securing a $135 million capital investment
from Crestview Partners, raising $47 million through GES asset
dispositions, delivering positive EBITDA across all Pursuit
geographies during its peak season, and implementing aggressive
cost reductions across the company. Those actions, combined with
our credit facility covenant waiver period through September 2022
and the $45 million delayed draw commitment from Crestview, put us
on solid financial footing heading into 2021 with the ability to
selectively invest in high-return growth projects at Pursuit like
FlyOver Las Vegas.”
Moster concluded, “In this challenging and uncertain
environment, we remain committed to carefully managing our cash
flows and being strong stewards of our capital to maximize
shareholder value.”
Conference Call Details
Viad will host a conference
call on Thursday, February 11, 2021, at 5:00 p.m. Eastern Time to
review 2020 fourth quarter and full year results. To join the live
call, please register at least 10 minutes before the start of the
call using the following link:
http://www.directeventreg.com/registration/event/4495424. 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
conference ID 4495424.
About Viad
Viad (NYSE: VVI) is a leading provider of experiential leisure
travel and face-to-face events and marketing experiences that
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
September 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 AND FULL
YEAR RESULTS (UNAUDITED) Three months
ended December 31, Year ended December 31, ($ in thousands, except
per share data)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Revenue: GES: (Note A) North America
$
16,530
$
220,340
$
(203,810
)
-92.5
%
$
288,921
$
884,105
$
(595,184
)
-67.3
%
EMEA
2,587
64,717
(62,130
)
-96.0
%
53,384
216,559
(163,175
)
-75.3
%
Intersegment eliminations
(422
)
(6,010
)
5,588
93.0
%
(3,680
)
(20,741
)
17,061
82.3
%
Total GES
18,695
279,047
(260,352
)
-93.3
%
338,625
1,079,923
(741,298
)
-68.6
%
Pursuit
9,208
21,694
(12,486
)
-57.6
%
76,810
222,813
(146,003
)
-65.5
%
Total revenue
$
27,903
$
300,741
$
(272,838
)
-90.7
%
$
415,435
$
1,302,736
$
(887,301
)
-68.1
%
Segment operating income (loss): GES: North America
$
(28,252
)
$
5,024
$
(33,276
)
**
$
(56,446
)
$
27,659
$
(84,105
)
**
EMEA
(6,195
)
5,499
(11,694
)
**
(17,451
)
8,274
(25,725
)
**
Total GES
(34,447
)
10,523
(44,970
)
**
(73,897
)
35,933
(109,830
)
**
Pursuit
(15,844
)
(10,400
)
(5,444
)
-52.3
%
(42,343
)
54,310
(96,653
)
**
Segment operating income (loss)
(50,291
)
123
(50,414
)
**
(116,240
)
90,243
(206,483
)
**
Corporate eliminations
17
18
(1
)
-5.6
%
65
67
(2
)
-3.0
%
Corporate activities (Note B)
(2,785
)
(3,070
)
285
9.3
%
(8,687
)
(10,865
)
2,178
20.0
%
Restructuring charges (Note C)
(1,070
)
(1,535
)
465
30.3
%
(13,440
)
(8,380
)
(5,060
)
-60.4
%
Impairment charges (Note D)
-
(5,346
)
5,346
-100.0
%
(203,076
)
(5,346
)
(197,730
)
**
Legal settlement (Note E)
-
-
-
**
-
(8,500
)
8,500
-100.0
%
Pension plan withdrawal (Note F)
-
(185
)
185
-100.0
%
(462
)
(15,693
)
15,231
97.1
%
Other expense
(238
)
(394
)
156
39.6
%
(1,132
)
(1,586
)
454
28.6
%
Net interest expense (Note G)
(3,488
)
(4,478
)
990
22.1
%
(17,887
)
(13,830
)
(4,057
)
-29.3
%
Income (loss) from continuing operations before income taxes
(57,855
)
(14,867
)
(42,988
)
**
(360,859
)
26,110
(386,969
)
**
Income tax (expense) benefit (Note H)
6,208
8,355
(2,147
)
-25.7
%
(14,246
)
(2,506
)
(11,740
)
**
Income (loss) from continuing operations
(51,647
)
(6,512
)
(45,135
)
**
(375,105
)
23,604
(398,709
)
**
Loss from discontinued operations (Note I)
(25
)
(113
)
88
77.9
%
(1,847
)
(81
)
(1,766
)
**
Net income (loss)
(51,672
)
(6,625
)
(45,047
)
**
(376,952
)
23,523
(400,475
)
**
Net (income) loss attributable to noncontrolling interest
740
1,020
(280
)
-27.5
%
1,376
(2,309
)
3,685
**
Net loss attributable to redeemable noncontrolling interest
459
177
282
**
1,482
821
661
80.5
%
Net income (loss) attributable to Viad
$
(50,473
)
$
(5,428
)
$
(45,045
)
**
$
(374,094
)
$
22,035
$
(396,129
)
**
Amounts Attributable to Viad Common Stockholders: Income
(loss) from continuing operations
$
(50,448
)
$
(5,315
)
$
(45,133
)
**
$
(372,247
)
$
22,116
$
(394,363
)
**
Loss from discontinued operations (Note I)
(25
)
(113
)
88
77.9
%
(1,847
)
(81
)
(1,766
)
**
Net income (loss)
$
(50,473
)
$
(5,428
)
$
(45,045
)
**
$
(374,094
)
$
22,035
$
(396,129
)
**
Diluted income (loss) per common share: Income (loss) from
continuing operations attributable to Viad common shareholders
$
(2.57
)
$
(0.30
)
$
(2.27
)
**
$
(18.55
)
$
1.02
$
(19.57
)
**
Loss from discontinued operations attributable to Viad common
shareholders
(0.01
)
(0.01
)
-
0.0
%
(0.09
)
-
(0.09
)
**
Net income (loss) attributable to Viad common
shareholders
$
(2.58
)
$
(0.31
)
$
(2.27
)
**
$
(18.64
)
$
1.02
$
(19.66
)
**
Basic income (loss) per common share: Income (loss) from
continuing operations attributable to Viad common shareholders
$
(2.57
)
$
(0.30
)
$
(2.27
)
**
$
(18.55
)
$
1.02
$
(19.57
)
**
Loss from discontinued operations attributable to Viad common
shareholders
(0.01
)
(0.01
)
-
0.0
%
(0.09
)
-
(0.09
)
**
Net income (loss) attributable to Viad common
shareholders
$
(2.58
)
$
(0.31
)
$
(2.27
)
**
$
(18.64
)
$
1.02
$
(19.66
)
**
Common shares treated as outstanding for income (loss) per
share calculations: Weighted-average outstanding common shares
20,325
20,196
129
0.6
%
20,279
20,146
133
0.7
%
Weighted-average outstanding and potentially dilutive common
shares
20,325
20,196
129
0.6
%
20,279
20,284
(5
)
0.0
%
** Change is greater than +/- 100 percent
VIAD
CORP AND SUBSIDIARIES TABLE ONE - NOTES TO QUARTERLY AND
FULL YEAR RESULTS (UNAUDITED) (A) GES Revenue —
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 on a net basis to
reflect only the fees received for arranging these services.
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 3rd Quarter 1st Quarter 2nd Quarter 3rd
Quarter 4th Quarter Full Year Total GES revenue as previously
reported
$
292,485
$
25,599
$
14,257
$
274,927
$
346,870
$
227,445
$
299,640
$
1,148,882
Gross to net correction for GES North America
(9,318
)
(511
)
(81
)
(9,679
)
(18,088
)
(7,374
)
(16,786
)
(51,927
)
Gross to net correction for GES EMEA
(2,032
)
(285
)
(184
)
(2,893
)
(7,727
)
(2,605
)
(3,807
)
(17,032
)
Total GES revenue as corrected
$
281,135
$
24,803
$
13,992
$
262,355
$
321,055
$
217,466
$
279,047
$
1,079,923
(B) Corporate Activities — The decrease in corporate
activities expense during the twelve months ended December 31, 2020
relative to 2019 was primarily due to lower headcount and 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 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 2020. 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 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. During 2019, we recorded
asset impairment charges of $5.3 million related to our
audio-visual production business in the United Kingdom. (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
decrease in net interest expense for the three months ended
December 31, 2020 was primarily due to the repayment of a portion
of our outstanding revolver balance during the third quarter of
2020. The increase in net interest expense for the twelve months
ended December 31, 2020 relative to 2019 was primarily due to
higher debt balances during the first half of 2020. (H)
Income Taxes – The effective rate was negative 4% for the twelve
months ended December 31, 2020 and 10% for the twelve months ended
December 31, 2019. The negative effective tax rate for the twelve
months ended December 31, 2020 was 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. The 10% effective rate
for the twelve months ended December 31, 2019 was low primarily due
a $4.5 million benefit resulting from the remeasurement of our
Alberta deferred tax assets due to a statutory rate reduction.
(I) Income (Loss) from Discontinued Operations — Loss from
discontinued operations during the three and twelve months ended
December 31, 2020 was primarily due to a settlement and legal
expenses related to previously sold operations. Loss from
discontinued operations for the three and twelve months ended
December 31, 2019 was primarily related to legal expenses, offset
in part by a favorable legal settlement related to previously sold
operations. Three months ended December 31, Year ended
December 31, ($ in thousands, except per share data)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Net income (loss) attributable to Viad
$
(50,473
)
$
(5,428
)
$
(45,045
)
**
$
(374,094
)
$
22,035
$
(396,129
)
**
Less: Allocation to nonvested shares
-
-
-
**
-
(156
)
156
-100.0
%
Convertible preferred stock dividends paid-in-kind1
(1,872
)
-
(1,872
)
**
(3,006
)
-
(3,006
)
**
Adjustment to the redemption value of redeemable noncontrolling
interest
-
(788
)
788
-100.0
%
(926
)
(1,318
)
392
29.7
%
Net income (loss) allocated to Viad common shareholders
$
(52,345
)
$
(6,216
)
$
(46,129
)
**
$
(378,026
)
$
20,561
$
(398,587
)
**
Weighted-average outstanding common shares1
20,325
20,196
129
0.6
%
20,279
20,146
133
0.7
%
Basic income (loss) per common share attributable
to Viad common shareholders
$
(2.58
)
$
(0.31
)
$
(2.27
)
**
$
(18.64
)
$
1.02
$
(19.66
)
**
1 When calculating basic income (loss) per share, dividends
paid-in-kind on convertible preferred stock are deducted from the
reported net income (loss) for the period and there is no
adjustment to the number of common shares outstanding to reflect
the potential future conversion of the outstanding preferred
shares. When calculating diluted net income (loss) per share,
the outstanding preferred shares at the beginning of the period
(expressed in common shares as if converted) are added to the
common shares outstanding and the dividends paid-in-kind are not
deducted from net income (loss); however, the diluted net loss per
share cannot be less than the basic net loss per share. The
following table shows the outstanding preferred stock expressed in
common shares as if converted: Three months ended Year ended
December 31, December 31, Convertible preferred stock as if
converted (in thousands):
2020
2019
2020
2019
Beginning of the period
6,406
-
-
-
New shares issued
-
-
6,353
-
Dividends paid in kind
88
-
141
-
End of the period
6,494
-
6,494
-
** 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 December 31, Year
ended December 31, ($ in thousands)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Income (loss) before other items: Net income (loss)
attributable to Viad
$
(50,473
)
$
(5,428
)
$
(45,045
)
**
$
(374,094
)
$
22,035
$
(396,129
)
**
Loss from discontinued operations attributable to Viad
25
113
(88
)
-77.9
%
1,847
81
1,766
**
Income (loss) from continuing operations attributable to Viad
(50,448
)
(5,315
)
(45,133
)
**
(372,247
)
22,116
(394,363
)
**
Restructuring charges, pre-tax
1,070
1,535
(465
)
-30.3
%
13,440
8,380
5,060
60.4
%
Impairment charges, pre-tax
-
5,346
(5,346
)
-100.0
%
203,076
5,346
197,730
**
Legal settlement, pre-tax
-
-
-
**
-
8,500
(8,500
)
-100.0
%
Pension plan withdrawal, pre-tax
-
185
(185
)
-100.0
%
462
15,693
(15,231
)
-97.1
%
Restructuring related inventory write-off, pre-tax
5,300
-
5,300
**
5,300
-
5,300
**
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
1,398
2,089
(691
)
-33.1
%
6,188
5,600
588
10.5
%
Tax benefit on above items
(134
)
(2,022
)
1,888
93.4
%
(256
)
(10,540
)
10,284
97.6
%
(Favorable) unfavorable tax matters
-
(2,066
)
2,066
-100.0
%
25,500
(4,171
)
29,671
**
Net loss attributable to FlyOver Iceland noncontrolling interest
-
-
-
**
-
(518
)
518
-100.0
%
Income (loss) before other items
$
(42,814
)
$
(248
)
$
(42,566
)
**
$
(118,537
)
$
50,406
$
(168,943
)
**
(per diluted share)
Income (loss) before other items: Net
income (loss) attributable to Viad
$
(2.58
)
$
(0.31
)
$
(2.27
)
**
$
(18.64
)
$
1.02
$
(19.66
)
**
Loss from discontinued operations attributable to Viad
0.01
0.01
-
0.0
%
0.09
-
0.09
**
Income (loss) from continuing operations attributable to Viad
(2.57
)
(0.30
)
(2.27
)
**
(18.55
)
1.02
(19.57
)
**
Restructuring charges, pre-tax
0.05
0.08
(0.03
)
-37.5
%
0.66
0.41
0.25
61.0
%
Impairment charges, pre-tax
-
0.26
(0.26
)
-100.0
%
10.01
0.26
9.75
**
Legal settlement, pre-tax
-
-
-
**
-
0.42
(0.42
)
-100.0
%
Pension plan withdrawal, pre-tax
-
0.01
(0.01
)
-100.0
%
0.02
0.77
(0.75
)
-97.4
%
Restructuring related inventory write-off, pre-tax
0.26
-
0.26
**
0.26
-
0.26
**
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
0.07
0.10
(0.03
)
-30.0
%
0.31
0.28
0.03
10.7
%
Tax benefit on above items
(0.01
)
(0.10
)
0.09
90.0
%
(0.01
)
(0.50
)
0.49
98.0
%
(Favorable) unfavorable tax matters
-
(0.10
)
0.10
-100.0
%
1.26
(0.21
)
1.47
**
Equity related adjustments (Note B)
0.09
0.04
0.05
**
0.19
0.06
0.13
**
Net loss attributable to FlyOver Iceland noncontrolling interest
-
-
-
**
-
(0.03
)
0.03
-100.0
%
Income (loss) before other items
$
(2.11
)
$
(0.01
)
$
(2.10
)
**
$
(5.85
)
$
2.48
$
(8.33
)
**
($ in thousands)
Adjusted EBITDA: Net income (loss)
attributable to Viad
$
(50,473
)
$
(5,428
)
$
(45,045
)
**
$
(374,094
)
$
22,035
$
(396,129
)
**
Loss from discontinued operations attributable to Viad
25
113
(88
)
-77.9
%
1,847
81
1,766
**
Impairment charges, pre-tax
-
5,346
(5,346
)
-100.0
%
203,076
5,346
197,730
**
Interest expense
3,452
4,587
(1,135
)
-24.7
%
18,164
14,199
3,965
27.9
%
Income tax expense (benefit)
(6,208
)
(8,355
)
2,147
25.7
%
14,246
2,506
11,740
**
Depreciation and amortization
13,514
14,903
(1,389
)
-9.3
%
56,565
58,964
(2,399
)
-4.1
%
Other noncontrolling interest
(762
)
(568
)
(194
)
-34.2
%
(3,638
)
(2,654
)
(984
)
-37.1
%
Adjusted EBITDA
$
(40,452
)
$
10,598
$
(51,050
)
**
$
(83,834
)
$
100,477
$
(184,311
)
**
(A) Acquisition-related costs and other non-recurring
expenses include: Three months ended December 31, Year ended
December 31,
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Acquisition integration costs - Pursuit1
$
-
$
752
$
(752
)
-100.0
%
$
62
$
1,020
$
(958
)
-93.9
%
Acquisition transaction-related costs - Pursuit1
-
71
(71
)
-100.0
%
-
425
(425
)
-100.0
%
Acquisition transaction-related costs - Corporate2
11
532
(521
)
-97.9
%
194
1,879
(1,685
)
-89.7
%
Attraction start-up costs1, 3
1,298
734
564
76.8
%
4,162
2,276
1,886
82.9
%
Other non-recurring expenses4
89
-
89
**
1,770
-
1,770
**
Acquisition-related and other non-recurring expenses, pre-tax
$
1,398
$
2,089
$
(691
)
-33.1
%
$
6,188
$
5,600
$
588
10.5
%
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 December 31,
2020 Three months ended December 31, 2019 ($ in thousands) As
Reported Acquisitions(Note A) FX Impact Organic As Reported
Acquisitions(Note A) Organic
Viad Consolidated:
Revenue
$
27,903
$
-
$
151
$
27,752
$
300,741
$
-
$
300,741
Net loss attributable to Viad
$
(50,473
)
$
(5,428
)
Net loss attributable to noncontrolling interest
(740
)
(1,020
)
Net loss attributable to redeemable noncontrolling interest
(459
)
(177
)
Loss from discontinued operations
25
113
Income tax benefit
(6,208
)
(8,355
)
Net interest expense
3,488
4,478
Other expense
238
394
Pension plan withdrawal
-
185
Impairment charges
-
5,346
Restructuring charges
1,070
1,535
Corporate activities expense
2,785
3,070
Corporate eliminations
(17
)
(18
)
Segment operating income (loss)
$
(50,291
)
$
-
$
(309
)
$
(49,982
)
$
123
$
-
$
123
Attraction start-up costs (B)
1,298
-
-
1,298
734
-
734
Integration costs
-
-
-
-
752
-
752
Acquisition transaction-related costs
-
-
-
-
71
-
71
Restructuring related inventory write-off (C)
5,300
-
-
5,300
-
-
-
Adjusted segment operating income (loss)
(43,693
)
-
(309
)
(43,384
)
1,680
-
1,680
Segment depreciation
11,328
-
46
11,282
11,545
-
11,545
Segment amortization
2,173
-
(3
)
2,176
3,302
-
3,302
Adjusted segment EBITDA
$
(30,192
)
$
-
$
(266
)
$
(29,926
)
$
16,527
$
-
$
16,527
Adjusted segment operating margin ** ** **
0.6
%
0.6
%
Adjusted segment EBITDA margin ** ** **
5.5
%
5.5
%
GES: Revenue
$
18,695
$
-
$
88
$
18,607
$
279,047
$
-
$
279,047
Segment operating income (loss)
$
(34,447
)
$
-
$
(254
)
$
(34,193
)
$
10,523
$
-
$
10,523
Restructuring related inventory write-off (C)
5,300
-
-
5,300
-
-
-
Adjusted segment operating income (loss)
(29,147
)
-
(254
)
(28,893
)
10,523
-
10,523
Depreciation
4,956
-
23
4,933
6,036
-
6,036
Amortization
1,353
-
3
1,350
2,514
-
2,514
Adjusted segment EBITDA
$
(22,838
)
$
-
$
(228
)
$
(22,610
)
$
19,073
$
-
$
19,073
Adjusted segment operating margin ** ** **
3.8
%
3.8
%
Adjusted segment EBITDA margin ** ** **
6.8
%
6.8
%
GES North America: Revenue
$
16,530
$
-
$
8
$
16,522
$
220,340
$
-
$
220,340
Segment operating income (loss)
$
(28,252
)
$
-
$
(12
)
$
(28,240
)
$
5,024
$
-
$
5,024
Restructuring related inventory write-off (C)
5,300
-
-
5,300
-
-
-
Adjusted segment operating income (loss)
(22,952
)
-
(12
)
(22,940
)
5,024
-
5,024
Depreciation
4,225
-
3
4,222
4,704
-
4,704
Amortization
1,261
-
-
1,261
2,238
-
2,238
Adjusted segment EBITDA
$
(17,466
)
$
-
$
(9
)
$
(17,457
)
$
11,966
$
-
$
11,966
Adjusted segment operating margin ** ** **
2.3
%
2.3
%
Adjusted segment EBITDA margin ** ** **
5.4
%
5.4
%
GES EMEA: Revenue
$
2,587
$
-
$
80
$
2,507
$
64,717
$
-
$
64,717
Segment operating income (loss)
$
(6,195
)
$
-
$
(242
)
$
(5,953
)
$
5,499
$
-
$
5,499
Adjusted segment operating
income (loss)
(6,195
)
-
(242
)
(5,953
)
5,499
-
5,499
Depreciation
731
-
20
711
1,332
-
1,332
Amortization
92
-
3
89
276
-
276
Adjusted segment
EBITDA
$
(5,372
)
$
-
$
(219
)
$
(5,153
)
$
7,107
$
-
$
7,107
Adjusted segment operating margin ** ** **
8.5
%
8.5
%
Adjusted segment EBITDA margin ** ** **
11.0
%
11.0
%
Pursuit: Revenue
$
9,208
$
-
$
63
$
9,145
$
21,694
$
-
$
21,694
Segment operating loss
$
(15,844
)
$
-
$
(55
)
$
(15,789
)
$
(10,400
)
$
-
$
(10,400
)
Integration costs
-
-
-
-
752
-
752
Acquisition transaction-related costs
-
-
-
-
71
-
71
Attraction start-up costs (B)
1,298
-
-
1,298
734
-
734
Adjusted segment operating
loss
(14,546
)
-
(55
)
(14,491
)
(8,843
)
-
(8,843
)
Depreciation
6,372
-
23
6,349
5,509
-
5,509
Amortization
820
-
(6
)
826
788
-
788
Adjusted segment
EBITDA
$
(7,354
)
$
-
$
(38
)
$
(7,316
)
$
(2,546
)
$
-
$
(2,546
)
Adjusted segment operating margin **
-87.3
%
**
-40.8
%
-40.8
%
Adjusted segment EBITDA margin
-79.9
%
-60.3
%
-80.0
%
-11.7
%
-11.7
%
(A) No acquisitions were completed during the three months
ended December 31, 2020 or December 31, 2019. (B) Includes costs
related to the development of Pursuit's new FlyOver attractions in
Las Vegas and Toronto, and the Sky Lagoon in Iceland. (C) Includes
inventory write-offs at GES in connection with transitioning to an
outsourced model for trade show aisle carpet.
VIAD CORP AND
SUBSIDIARIES TABLE TWO - NON-GAAP FINANCIAL MEASURES
(CONTINUED) (UNAUDITED) Year ended
December 31, 2020 Year ended December 31, 2019 ($ in thousands) As
Reported Acquisitions(Note A) FX Impact Organic As Reported
Acquisitions(Note A) Organic
Viad Consolidated:
Revenue
$
415,435
$
17,037
$
(1,312
)
$
399,710
$
1,302,736
$
19,874
$
1,282,862
Net income (loss) attributable to Viad
$
(374,094
)
$
22,035
Net income (loss) attributable to noncontrolling interest
(1,376
)
2,309
Net loss attributable to redeemable noncontrolling interest
(1,482
)
(821
)
Loss from discontinued operations
1,847
81
Income tax expense
14,246
2,506
Net interest expense
17,887
13,830
Other expense
1,132
1,586
Legal settlement
-
8,500
Pension plan withdrawal
462
15,693
Impairment charges
203,076
5,346
Restructuring charges
13,440
8,380
Corporate activities expense
8,687
10,865
Corporate eliminations
(65
)
(67
)
Segment operating income (loss)
$
(116,240
)
$
719
$
(285
)
$
(116,674
)
$
90,243
$
5,693
$
84,550
Attraction start-up costs (B)
4,162
-
-
4,162
2,276
-
2,276
Integration costs
62
62
-
-
1,020
1,020
-
Acquisition transaction-related costs
-
-
-
-
425
-
425
Restructuring related inventory write-off (C)
5,300
-
-
5,300
-
-
-
Adjusted segment operating income (loss)
(106,716
)
781
(285
)
(107,212
)
93,964
6,713
87,251
Segment depreciation
46,369
3,859
(135
)
42,645
45,354
2,102
43,252
Segment amortization
10,099
1,141
(55
)
9,013
13,381
662
12,719
Adjusted segment EBITDA
$
(50,248
)
$
5,781
$
(475
)
$
(55,554
)
$
152,699
$
9,477
$
143,222
Adjusted segment operating margin
-25.7
%
4.6
%
21.7
%
-26.8
%
7.2
%
33.8
%
6.8
%
Adjusted segment EBITDA margin
-12.1
%
33.9
%
36.2
%
-13.9
%
11.7
%
47.7
%
11.2
%
GES: Revenue
$
338,625
$
-
$
(1,033
)
$
339,658
$
1,079,923
$
-
$
1,079,923
Segment operating income (loss)
$
(73,897
)
$
-
$
(608
)
$
(73,289
)
$
35,933
$
-
$
35,933
Restructuring related inventory write-off (C)
5,300
-
-
5,300
-
-
-
Adjusted segment operating income (loss)
(68,597
)
-
(608
)
(67,989
)
35,933
-
35,933
Depreciation
21,609
-
11
21,598
24,946
-
24,946
Amortization
6,465
-
1
6,464
10,635
-
10,635
Adjusted segment EBITDA
$
(40,523
)
$
-
$
(596
)
$
(39,927
)
$
71,514
$
-
$
71,514
Adjusted segment operating margin
-20.3
%
58.9
%
-20.0
%
3.3
%
3.3
%
Adjusted segment EBITDA margin
-12.0
%
57.7
%
-11.8
%
6.6
%
6.6
%
GES North America: Revenue
$
288,921
$
-
$
(358
)
$
289,279
$
884,105
$
-
$
884,105
Segment operating income (loss)
$
(56,446
)
$
-
$
(31
)
$
(56,415
)
$
27,659
$
-
$
27,659
Restructuring related inventory write-off (C)
5,300
-
-
5,300
-
-
-
Adjusted segment operating income (loss)
(51,146
)
-
(31
)
(51,115
)
27,659
-
27,659
Depreciation
17,937
-
(11
)
17,948
19,759
-
19,759
Amortization
6,083
-
-
6,083
9,563
-
9,563
Adjusted segment EBITDA
$
(27,126
)
$
-
$
(42
)
$
(27,084
)
$
56,981
$
-
$
56,981
Adjusted segment operating margin
-17.7
%
8.7
%
-17.7
%
3.1
%
3.1
%
Adjusted segment EBITDA margin
-9.4
%
11.7
%
-9.4
%
6.4
%
6.4
%
GES EMEA: Revenue
$
53,384
$
-
$
(675
)
$
54,059
$
216,559
$
-
$
216,559
Segment operating income (loss)
$
(17,451
)
$
-
$
(577
)
$
(16,874
)
$
8,274
$
-
$
8,274
Adjusted segment operating income (loss)
(17,451
)
-
(577
)
(16,874
)
8,274
-
8,274
Depreciation
3,672
-
22
3,650
5,187
-
5,187
Amortization
382
-
1
381
1,072
-
1,072
Adjusted segment EBITDA
$
(13,397
)
$
-
$
(554
)
$
(12,843
)
$
14,533
$
-
$
14,533
Adjusted segment operating margin
-32.7
%
85.5
%
-31.2
%
3.8
%
3.8
%
Adjusted segment EBITDA margin
-25.1
%
82.1
%
-23.8
%
6.7
%
6.7
%
Pursuit: Revenue
$
76,810
$
17,037
$
(279
)
$
60,052
$
222,813
$
19,874
$
202,939
Segment operating income (loss)
$
(42,343
)
$
719
$
323
$
(43,385
)
$
54,310
$
5,693
$
48,617
Integration costs
62
62
-
-
1,020
1,020
-
Acquisition transaction-related costs
-
-
-
-
425
-
425
Attraction start-up costs (B)
4,162
-
-
4,162
2,276
-
2,276
Adjusted segment operating income (loss)
(38,119
)
781
323
(39,223
)
58,031
6,713
51,318
Depreciation
24,760
3,859
(146
)
21,047
20,408
2,102
18,306
Amortization
3,634
1,141
(56
)
2,549
2,746
662
2,084
Adjusted segment EBITDA
$
(9,725
)
$
5,781
$
121
$
(15,627
)
$
81,185
$
9,477
$
71,708
Adjusted segment operating margin
-49.6
%
4.6
%
**
-65.3
%
26.0
%
33.8
%
25.3
%
Adjusted segment EBITDA margin
-12.7
%
33.9
%
-43.4
%
-26.0
%
36.4
%
47.7
%
35.3
%
(A) Acquisitions include Mountain Park Lodges (acquired June
2019) and Belton Chalet (acquired May 2019) for Pursuit. (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. (C) Includes inventory write-offs at GES in connection
with transitioning to an outsourced model for trade show aisle
carpet.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210211005907/en/
Carrie Long Investor Relations (602) 207-2681 ir@viad.com
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