Completes Debt Refinancing for Enhanced
Financial Flexibility
- Sequential quarter revenue more than doubles as business
activity accelerates at Pursuit and GES
- New debt structure provides strong foundation for continued
growth
Viad Corp (NYSE: VVI), a leading provider of experiential
leisure travel and live events and marketing experiences, today
reported financial results for the 2021 second quarter.
Steve Moster, president and chief executive officer, commented,
“We ended the second quarter in a solid liquidity position and are
experiencing an acceleration of business activity at both Pursuit
and GES. As the number of vaccinations increases and pandemic
restrictions are lifted, we are seeing strong pent-up demand for
leisure travel and the return of in-person events.”
Moster continued, “Our team has done a great job navigating the
shifting challenges of the pandemic and positioning our businesses
for greater success in the future. We have made structural changes
to enhance the revenue mix and margin profile of GES, we have
continued to pursue high-margin, high-return growth opportunities
at Pursuit, and we recently refinanced our debt to enhance our
financial flexibility. With the recovery of our industries underway
and the additional flexibility provided by our new debt structure,
we are even more excited about our company’s future.”
Second Quarter 2021 Results
Second quarter revenue was $61.2 million, up from $30.1 million
in the 2020 second quarter. Sequential quarter revenue grew 112%.
These improvements reflect the loosening of restrictions related to
the COVID-19 pandemic and the opening of seasonal and new
experiences at Pursuit. The second quarter net loss attributable to
Viad was $42.0 million and our adjusted segment EBITDA* was
negative $19.6 million.
* 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.
Regarding Pursuit, Moster commented, “At Pursuit, second quarter
revenue reached 66% of the amount generated in the 2019 second
quarter, reflecting strong pent-up leisure travel demand in
destinations without significant COVID restrictions. Our Glacier
and Alaska experiences, which draw largely domestic travelers,
performed very well during the quarter and advance bookings in
those locations are pacing for a record year in 2021. Visitation at
our Canadian experiences remained constrained during the quarter
due to the international border closure and other restrictions that
were in place. As restrictions are being relaxed across Canada, we
are seeing increased bookings there and we look forward to the
recently announced opening of the Canadian border to vaccinated
U.S. citizens on August 9th.”
Regarding GES, Moster commented, “GES’ second quarter revenue
remained well-below pre-COVID levels but did experience a
sequential quarter increase of about 30% as more locations
re-opened for in-person events. Most U.S. states have re-opened for
in-person events, and we continue to see increased activity and
strengthening show schedules going forward. As revenue comes back,
the structural changes we made during the pandemic are enabling us
to service our clients with a lower and more flexible cost
structure that is closely aligned with our clients’ needs and
expectations.”
Cash Flow and Balance Sheet Highlights
Our 2021 second quarter cash flow from operations was an outflow
of approximately $7 million and our capital expenditures totaled
$15.4 million.
Moster commented, “These outflows were lower than our prior
guidance due to favorable working capital and timing of capital
expenditure outflows. Advance customer deposits at both Pursuit and
GES were stronger than anticipated as business activity is
increasing along with easing of COVID restrictions. Our capital
expenditures during the quarter included approximately $6 million
for the development of Pursuit’s new FlyOver Las Vegas attraction,
which is on track to open in September.”
At June 30, 2021, our cash and cash equivalents were $37 million
and we had approximately $114 million of capacity available on our
revolving credit facility. Our debt totaled approximately $400
million, including approximately $327 million drawn on our $450
million revolving credit facility (which was recently refinanced,
as discussed below), financing lease obligations of approximately
$66 million (which primarily comprises real estate leases at
Pursuit), and approximately $6 million in debt at FlyOver
Iceland.
Debt Refinancing
On July 30, 2021, we completed the previously announced process
to refinance our $450 million senior secured revolving credit
facility, which was set to mature in 2023, with a new $500 million
senior secured credit facility that meaningfully extends the
maturity of our debt and provides increased financial flexibility
to support our growth initiatives.
The new facility comprises a $400 million Term Loan B that
matures in 2028 and a $100 million revolving credit facility that
matures in 2026. The net cash proceeds from the Term Loan B, after
fees and expenses related to the refinancing and repayment of the
previous revolving credit facility, added approximately $56 million
of cash to our balance sheet. The new $100 million revolver remains
completely undrawn.
The terms of the new revolving credit facility require us to
maintain minimum liquidity of $75 million through June 30, 2022
(the “Minimum Liquidity Period”). Upon expiration of the Minimum
Liquidity Period, we will be subject to a maximum total net
leverage ratio of 4.5x through September 30, 2022 and 4x on or
after December 31, 2022, as well as a minimum consolidated interest
coverage ratio of 2x through September 30, 2022 and 2.5x on or
after December 31, 2022. Additional details of the new credit
facility are available in the form 8-K we filed on August 2,
2021.
Moster commented, “We are very pleased with the outcome of our
debt refinancing and believe the new structure will provide a
strong foundation for us to continue our exciting growth journey,
including Refresh, Build, Buy investments at Pursuit. In this year
of recovery, we remain committed to carefully managing our cash
flows and being strong stewards of our capital to maximize
shareholder value. I am confident that the strength, drive,
creativity, and flexibility of our team will continue to drive our
success.”
Conference Call Details
Viad will host a conference
call on Thursday, August 5, 2021, at 5:00 p.m. Eastern Time to
review 2021 second quarter results. To join the live conference
call, please register at least 10 minutes before the start of the
call using the following link:
https://www.incommglobalevents.com/registration/client/8249/viad-corp-second-quarter-2021-earnings-call/.
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.
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 (929) 458-6194 and entering the conference ID
406971.
About Viad
Viad (NYSE: VVI) is a leading provider of experiential leisure
travel and live 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 anticipate and adjust for the impact of the
COVID-19 pandemic on our businesses;
- general economic uncertainty in key global markets and a
worsening of global economic conditions;
- travel industry disruptions;
- our ability to successfully integrate and achieve established
financial and strategic goals from acquisitions;
- 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;
- 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; 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
and our most recent quarterly report on Form 10-Q filed with the
SEC. 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
June 30, Six months ended June 30, ($ in thousands, except per
share data)
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Revenue: GES (Note A)
$
24,920
$
24,803
$
117
0.5
%
$
44,065
$
305,938
$
(261,873
)
-85.6
%
Pursuit
36,313
5,264
31,049
**
46,103
18,787
27,316
**
Total revenue
$
61,233
$
30,067
$
31,166
**
$
90,168
$
324,725
$
(234,557
)
-72.2
%
Segment operating loss: GES
$
(26,897
)
$
(32,060
)
$
5,163
16.1
%
$
(46,801
)
$
(21,202
)
$
(25,599
)
** Pursuit
(8,097
)
(17,692
)
9,595
54.2
%
(26,418
)
(37,966
)
11,548
30.4
%
Segment operating loss
(34,994
)
(49,752
)
14,758
29.7
%
(73,219
)
(59,168
)
(14,051
)
-23.7
%
Corporate eliminations
18
16
2
12.5
%
35
32
3
9.4
%
Corporate activities (Note B)
(3,006
)
(2,468
)
(538
)
-21.8
%
(5,011
)
(3,257
)
(1,754
)
-53.9
%
Restructuring charges (Note C)
(787
)
(260
)
(527
)
**
(3,613
)
(1,111
)
(2,502
)
** Impairment charges (Note D)
-
(114,020
)
114,020
-100.0
%
-
(202,400
)
202,400
-100.0
%
Pension plan withdrawal
(57
)
(462
)
405
87.7
%
(57
)
(462
)
405
87.7
%
Other expense
(680
)
(265
)
(415
)
**
(1,040
)
(684
)
(356
)
-52.0
%
Net interest expense (Note E)
(5,565
)
(5,010
)
(555
)
-11.1
%
(10,650
)
(8,949
)
(1,701
)
-19.0
%
Loss from continuing operations before income taxes
(45,071
)
(172,221
)
127,150
73.8
%
(93,555
)
(275,999
)
182,444
66.1
%
Income tax (expense) benefit (Note F)
2,166
(35,516
)
37,682
**
5,211
(19,719
)
24,930
** Loss from continuing operations
(42,905
)
(207,737
)
164,832
79.3
%
(88,344
)
(295,718
)
207,374
70.1
%
Income (loss) from discontinued operations (Note G)
(62
)
(379
)
317
83.6
%
286
(833
)
1,119
** Net loss
(42,967
)
(208,116
)
165,149
79.4
%
(88,058
)
(296,551
)
208,493
70.3
%
Net loss attributable to noncontrolling interest
510
1,634
(1,124
)
-68.8
%
1,955
2,967
(1,012
)
-34.1
%
Net loss attributable to redeemable noncontrolling interest
431
204
227
**
925
721
204
28.3
%
Net loss attributable to Viad
$
(42,026
)
$
(206,278
)
$
164,252
79.6
%
$
(85,178
)
$
(292,863
)
$
207,685
70.9
%
Amounts Attributable to Viad Common Stockholders: Loss from
continuing operations
$
(41,964
)
$
(205,899
)
$
163,935
79.6
%
$
(85,464
)
$
(292,030
)
$
206,566
70.7
%
Income (loss) from discontinued operations (Note G)
(62
)
(379
)
317
83.6
%
286
(833
)
1,119
**
Net loss
$
(42,026
)
$
(206,278
)
$
164,252
79.6
%
$
(85,178
)
$
(292,863
)
$
207,685
70.9
%
Diluted loss per common share: Loss from continuing
operations attributable to Viad common shareholders
$
(2.18
)
$
(10.17
)
$
7.99
78.6
%
$
(4.41
)
$
(14.44
)
$
10.03
69.5
%
Income (loss) from discontinued operations attributable to Viad
common shareholders
-
(0.02
)
0.02
-100.0
%
0.01
(0.05
)
0.06
**
Net loss attributable to Viad common shareholders
$
(2.18
)
$
(10.19
)
$
8.01
78.6
%
$
(4.40
)
$
(14.49
)
$
10.09
69.6
%
Basic loss per common share: Loss from continuing operations
attributable to Viad common shareholders
$
(2.18
)
$
(10.17
)
$
7.99
78.6
%
$
(4.41
)
$
(14.44
)
$
10.03
69.5
%
Income (loss) from discontinued operations attributable to Viad
common shareholders
-
(0.02
)
0.02
-100.0
%
0.01
(0.05
)
0.06
**
Net loss attributable to Viad common shareholders
$
(2.18
)
$
(10.19
)
$
8.01
78.6
%
$
(4.40
)
$
(14.49
)
$
10.09
69.6
%
Common shares treated as outstanding for loss per share
calculations: Weighted-average outstanding common shares
20,397
20,282
115
0.6
%
20,384
20,249
135
0.7
%
Weighted-average outstanding and potentially dilutive common
shares
20,397
20,282
115
0.6
%
20,384
20,249
135
0.7
%
** Change is greater than +/- 100 percent
VIAD
CORP AND SUBSIDIARIES TABLE ONE - NOTES TO QUARTERLY
RESULTS (UNAUDITED) (A) GES Revenue — In 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 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 originally reported revenue to the corrected
figures for 2020:
2020
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total GES revenue
as originally reported
$
292,485
$
25,599
$
14,257
$
18,695
Gross to net correction for GES
(11,350
)
(796
)
(265
)
-
Total GES revenue as corrected
$
281,135
$
24,803
$
13,992
$
18,695
(B) Corporate Activities — The increase in corporate
activities expense during the three and six months ended June 30,
2021 was primarily due to lower performance-based compensation
expense in 2020 as we reduced our estimated performance achievement
to zero as a result of the COVID-19 pandemic. (C)
Restructuring Charges — Restructuring charges during the three and
six months ended June 30, 2021 were primarily related to facility
closures at GES. 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. Restructuring charges during the three and six months
ended June 30, 2020 were primarily related to the elimination of
certain positions at GES and our corporate office in response to
the COVID-19 pandemic. (D) Impairment Charges — Due to the
deteriorating macroeconomic environment related to the COVID-19
pandemic, resulting in disruptions to our operations and the
decline in our stock price, we recorded non-cash goodwill
impairment charges of $113.1 million and a fixed asset impairment
charge of $0.9 million during the three months ended June 30, 2020.
During the six months ended June 30, 2020, we recorded non-cash
goodwill impairment charges of $185.8 million, a non-cash
impairment charge to intangible assets of $15.7 million related to
GES’ United States audio-visual production business, and a fixed
asset impairment charge of $0.9 million. (E) Net
Interest Expense — The increase in interest expense during the
three and six months ended June 30, 2021 was primarily due to
higher debt balances in 2021. (F) Income Tax (Expense)
Benefit – The effective tax rate was 5% for the three months ended
June 30, 2021 and a negative 21% for the three months ended June
30, 2020. The effective tax rate was 6% for the six months ended
June 30, 2021 and a negative 7% for the six months ended June 30,
2020. The rate for the three and six months ended June 30, 2021 was
lower than the blended statutory rate primarily as a result of
excluding the tax benefit on losses recognized in the United
States, United Kingdom, and other European countries where we have
a valuation allowance. The negative effective tax rates for the
three and six months ended June 30, 2020 were due to the recording
of a valuation allowance against our remaining United States,
United Kingdom, and other European countries net deferred tax
assets of $25 million, as well as no tax benefits on non-deductible
goodwill impairments and losses recognized in those jurisdictions.
(G) Income (Loss) from Discontinued Operations — Loss from
discontinued operations during the three months ended June 30, 2021
was primarily due to legal expenses related to previously sold
operations. Income from discontinued operations during the six
months ended June 30, 2021 was primarily due to an insurance
recovery related to a previously sold operation, offset in part by
legal expenses. Loss from discontinued operations during the three
and six months ended June 30, 2020 was primarily due to legal
expenses related to previously sold operations. Three months
ended June 30, Six months ended June 30, ($ in thousands, except
per share data)
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Net loss attributable to Viad
$
(42,026
)
$
(206,278
)
$
164,252
79.6
%
$
(85,178
)
$
(292,863
)
$
207,685
70.9
%
Convertible preferred stock dividends paid in kind1
(1,923
)
-
(1,923
)
**
(3,821
)
-
(3,821
)
** Adjustment to the redemption value of redeemable noncontrolling
interest
(547
)
(332
)
(215
)
-64.8
%
(603
)
(458
)
(145
)
-31.7
%
Net loss allocated to Viad common shareholders
$
(44,496
)
$
(206,610
)
$
162,114
78.5
%
$
(89,602
)
$
(293,321
)
$
203,719
69.5
%
Weighted-average outstanding common shares1
20,397
20,282
115
0.6
%
20,384
20,249
135
0.7
%
Basic loss per common share attributable to Viad
common shareholders
$
(2.18
)
$
(10.19
)
$
8.01
78.6
%
$
(4.40
)
$
(14.49
)
$
10.09
69.6
%
1 When calculating basic income (loss) per share and diluted
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
per share, the outstanding preferred shares (as if converted at the
beginning of the period) are added to the common shares outstanding
and there is no adjustment to the reported net income for any
dividends paid in kind. The following table shows the outstanding
preferred stock expressed in common shares as if converted:
Three months ended Six months ended June 30, June 30, Convertible
preferred stock as if converted (in thousands):
2021
2020
2021
2020
Beginning of the period
6,583
-
6,494
-
New shares issued
-
-
-
-
Dividends paid in kind
91
-
180
-
End of the period
6,674
-
6,674
-
Convertible preferred stock (as if converted) for EPS
6,583
-
6,539
-
** 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 "Loss Before Other Items", "Adjusted EBITDA",
"Adjusted Segment EBITDA" and "Adjusted Segment Operating 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. Loss Before Other Items and Adjusted
Segment Operating 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 June 30, Six months ended June 30, ($ in
thousands)
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Loss before other items: Net loss attributable to Viad
$
(42,026
)
$
(206,278
)
$
164,252
79.6
%
$
(85,178
)
$
(292,863
)
$
207,685
70.9
%
(Income) loss from discontinued operations attributable to Viad
62
379
(317
)
-83.6
%
(286
)
833
(1,119
)
** Loss from continuing operations attributable to Viad
(41,964
)
(205,899
)
163,935
79.6
%
(85,464
)
(292,030
)
206,566
70.7
%
Restructuring charges, pre-tax
787
260
527
**
3,613
1,111
2,502
** Impairment charges, pre-tax
-
114,020
(114,020
)
-100.0
%
-
202,400
(202,400
)
-100.0
%
Pension plan withdrawal, pre-tax
57
462
(405
)
-87.7
%
57
462
(405
)
-87.7
%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
2,704
875
1,829
**
4,522
2,075
2,447
** Tax benefit on above items
(141
)
(168
)
27
16.1
%
(318
)
(636
)
318
50.0
%
Unfavorable tax matters
-
37,908
(37,908
)
-100.0
%
-
25,500
(25,500
)
-100.0
%
Loss before other items
$
(38,557
)
$
(52,542
)
$
13,985
26.6
%
$
(77,590
)
$
(61,118
)
$
(16,472
)
-27.0
%
(per diluted share)
Loss before other items: Net loss
attributable to Viad
$
(2.18
)
$
(10.19
)
$
8.01
78.6
%
$
(4.40
)
$
(14.49
)
$
10.09
69.6
%
(Income) loss from discontinued operations attributable to Viad
-
0.02
(0.02
)
-100.0
%
(0.01
)
0.05
(0.06
)
** Loss from continuing operations attributable to Viad
(2.18
)
(10.17
)
7.99
78.6
%
(4.41
)
(14.44
)
10.03
69.5
%
Restructuring charges, pre-tax
0.04
0.01
0.03
**
0.18
0.05
0.13
** Impairment charges, pre-tax
-
5.62
(5.62
)
-100.0
%
-
10.00
(10.00
)
-100.0
%
Pension plan withdrawal, pre-tax
-
0.02
(0.02
)
-100.0
%
-
0.02
(0.02
)
-100.0
%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
0.13
0.04
0.09
**
0.22
0.10
0.12
** Tax benefit on above items
-
-
-
**
(0.01
)
(0.03
)
0.02
66.7
%
Unfavorable tax matters
-
1.87
(1.87
)
-100.0
%
-
1.26
(1.26
)
-100.0
%
Equity related adjustments (Note B)
0.12
0.02
0.10
**
0.21
0.02
0.19
**
Loss before other items
$
(1.89
)
$
(2.59
)
$
0.70
27.0
%
$
(3.81
)
$
(3.02
)
$
(0.79
)
-26.2
%
(A) Acquisition-related costs and other non-recurring
expenses include: Three months ended June 30, Six months ended June
30,
($ in thousands)
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Acquisition integration costs - Pursuit1
$
5
$
(10
)
$
15
**
$
6
$
60
$
(54
)
-90.0
%
Acquisition transaction-related costs - Pursuit1
64
-
64
**
272
(14
)
286
** Acquisition transaction-related costs - Corporate2
24
31
(7
)
-22.6
%
59
179
(120
)
-67.0
%
Attraction start-up costs1, 3
2,054
854
1,200
**
3,618
1,850
1,768
95.6
%
Other non-recurring expenses2, 4
557
-
557
**
567
-
567
** Acquisition-related and other non-recurring expenses, pre-tax
$
2,704
$
875
$
1,829
**
$
4,522
$
2,075
$
2,447
** 1 Included in segment operating 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, the Sky Lagoon in Iceland, and the Golden Skybridge in
Canada. 4 Includes non-capitalizable fees and expenses related to
Viad’s credit facility refinancing efforts. (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 June 30, 2021 Three months ended June 30, 2020 ($ in
thousands) As Reported Acquisitions (Note A) FX Impact Organic As
Reported Acquisitions (Note A) Organic
Viad
Consolidated: Revenue
$
61,233
$
234
$
1,690
$
59,309
$
30,067
$
-
$
30,067
Net loss attributable to Viad
$
(42,026
)
$
(206,278
)
Net loss attributable to noncontrolling interest
(510
)
(1,634
)
Net loss attributable to redeemable noncontrolling interest
(431
)
(204
)
Loss from discontinued operations
62
379
Income tax expense (benefit)
(2,166
)
35,516
Net interest expense
5,565
5,010
Other expense
680
265
Pension plan withdrawal
57
462
Impairment charges
-
114,020
Restructuring charges
787
260
Corporate activities expense
3,006
2,468
Corporate eliminations
(18
)
(16
)
Segment operating loss
$
(34,994
)
$
(258
)
$
(1,577
)
$
(33,159
)
$
(49,752
)
$
-
$
(49,752
)
Attraction start-up costs (B)
2,054
224
-
1,830
854
-
854
Integration costs
5
-
-
5
(10
)
-
(10
)
Acquisition transaction-related costs
64
-
5
59
-
-
-
Adjusted segment operating loss
(32,871
)
(34
)
(1,572
)
(31,265
)
(48,908
)
-
(48,908
)
Segment depreciation
10,662
15
626
10,021
11,478
-
11,478
Segment amortization
2,659
-
121
2,538
2,354
-
2,354
Adjusted segment EBITDA
$
(19,550
)
$
(19
)
$
(825
)
$
(18,706
)
$
(35,076
)
$
-
$
(35,076
)
Adjusted segment operating margin
-53.7
%
-14.5
%
-93.0
%
-52.7
%
** ** Adjusted segment EBITDA margin
-31.9
%
-8.1
%
-48.8
%
-31.5
%
** **
GES: Revenue
$
24,920
$
-
$
415
$
24,505
$
24,803
$
-
$
24,803
Segment operating loss
$
(26,897
)
$
-
$
(438
)
$
(26,459
)
$
(32,060
)
$
-
$
(32,060
)
Adjusted segment operating loss
(26,897
)
-
(438
)
(26,459
)
(32,060
)
-
(32,060
)
Depreciation
4,116
-
81
4,035
5,485
-
5,485
Amortization
1,220
-
9
1,211
1,399
-
1,399
Adjusted segment EBITDA
$
(21,561
)
$
-
$
(348
)
$
(21,213
)
$
(25,176
)
$
-
$
(25,176
)
Adjusted segment operating margin ** ** ** ** ** Adjusted
segment EBITDA margin
-86.5
%
-83.9
%
-86.6
%
** **
Pursuit: Revenue
$
36,313
$
234
$
1,275
$
34,804
$
5,264
$
-
$
5,264
Segment operating loss
$
(8,097
)
$
(258
)
$
(1,139
)
$
(6,700
)
$
(17,692
)
$
-
$
(17,692
)
Integration costs
5
-
-
5
(10
)
-
(10
)
Acquisition transaction-related costs
64
-
5
59
-
-
-
Attraction start-up costs (B)
2,054
224
-
1,830
854
-
854
Adjusted segment operating loss
(5,974
)
(34
)
(1,134
)
(4,806
)
(16,848
)
-
(16,848
)
Depreciation
6,546
15
545
5,986
5,993
-
5,993
Amortization
1,439
-
112
1,327
955
-
955
Adjusted segment EBITDA
$
2,011
$
(19
)
$
(477
)
$
2,507
$
(9,900
)
$
-
$
(9,900
)
Adjusted segment operating margin
-16.5
%
-14.5
%
-88.9
%
-13.8
%
** ** Adjusted segment EBITDA margin
5.5
%
-8.1
%
-37.4
%
7.2
%
** ** (A) Acquisitions include the Golden Skybridge
(acquired March 2021 and opened June 2021) for Pursuit. (B)
Includes costs related to the development of Pursuit's new FlyOver
attractions in Las Vegas and Toronto, the Sky Lagoon in Iceland,
and the Golden Skybridge in Canada.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210805005968/en/
Carrie Long or Michelle Porhola Investor Relations (602)
207-2681 ir@viad.com
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