- Revenue reaches 66% of pre-COVID levels as business activity
continues to accelerate at Pursuit and GES
- Net Income and free cash flow turn positive
- Pursuit opens third new attraction this year
Viad Corp (NYSE: VVI), a leading provider of experiential
leisure travel and live events and marketing experiences, today
reported financial results for the 2021 third quarter.
Steve Moster, president and chief executive officer, commented,
“The third quarter was a pivotal one for our business. Revenue grew
to nearly four times the level we experienced in the second quarter
and reached 66% of the amount we realized in the pre-pandemic 2019
third quarter. We realized strong flow through to EBITDA and
delivered positive operating cash flow that more than offset our
investments in capital expenditures.”
Moster continued, “With leisure travel continuing to accelerate
and events beginning to return to in-person formats, the pandemic
recovery has clearly taken hold for both Pursuit and GES. Across
Viad, our teams are doing a fantastic job navigating the challenges
of the pandemic re-opening to meet the needs of our clients and
guests with great service and operational execution.”
Third Quarter 2021 Results
Third quarter revenue was $233.6 million, up from $62.8 million
in the 2020 third quarter. Third quarter net income attributable to
Viad was $15.1 million and our adjusted segment EBITDA* was $55.4
million, as compared to a net loss of $30.8 million and adjusted
segment EBITDA* of $8.1 million in the 2020 third quarter. These
improvements relative to the prior year primarily reflect continued
strengthening of leisure travel and the resumption of in-person
event activity as health restrictions are relaxed, borders are
re-opened, and people are increasingly more comfortable traveling
and gathering.
* 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, third quarter
revenue of $117.6 million reached 87% of the amount generated in
the 2019 third quarter, reflecting strong leisure travel demand at
our Glacier and Alaska experiences, which draw largely domestic
travelers. These destinations experienced exceptionally strong
visitation this peak season, with Glacier posting record
performance. Additionally, the three new attractions we opened this
year, the Sky Lagoon and Golden Skybridge, which opened in the
second quarter, and FlyOver Las Vegas, which opened September 1st,
are all off to a solid start in this challenging environment. In
Canada, the border is now open for all fully-vaccinated
international travelers, which bodes well for a much stronger peak
season in 2022 across our Canadian experiences.”
Regarding GES, Moster commented, “GES’ third quarter revenue of
$116.0 million increased nearly 370% from the second quarter and
reached 53% of the amount generated in the 2019 third quarter.
Although the COVID Delta variant caused some event and exhibitor
cancellations as we moved into the third quarter, many organizers
of in-person events that were scheduled to take place chose to stay
the course and were able to hold successful events. We are very
encouraged by what we’re seeing in terms of in-person event
activity going forward, our level of new client wins on the Brand
Experiences side of our business, and our ability to service events
with our new, leaner operational model.”
Cash Flow and Balance Sheet Highlights
Our 2021 third quarter cash flow from operations was an inflow
of approximately $37 million and our capital expenditures totaled
approximately $20 million, and we paid cash dividends of
approximately $2 million on our convertible preferred equity.
Moster commented, “We are very pleased with the strong operating
cash flow achieved during the third quarter. Although it was lower
than our prior guidance primarily due to the unanticipated impact
of the Delta variant, our teams responded well to the shifting
demand landscape to maximize our cash generation while prudently
investing in new growth areas. Our capital expenditures during the
quarter included approximately $8 million for the development of
Pursuit’s new FlyOver Las Vegas attraction, which opened as planned
on September 1st.”
At September 30, 2021, our cash and cash equivalents were
approximately $111 million and we had approximately $78 million of
capacity available on our revolving credit facility ($100 million
total facility size, less approximately $22 million in letters of
credit). Our debt totaled approximately $470 million, including our
$400 million Term Loan B, financing lease obligations of
approximately $64 million (which primarily comprises real estate
leases at Pursuit), and approximately $6 million in debt at FlyOver
Iceland.
Moster concluded, “Our strong liquidity and improving industry
fundamentals, combined with the flexibility offered by our new
credit facility, put us in a solid position to pursue additional
Refresh, Build, Buy investments that will continue to accelerate
Pursuit’s high-margin growth. Construction of Pursuit’s new 88-room
hotel in Jasper is progressing well and we expect to have that
property open ahead of the 2022 peak season. We continue to work
through planning and permitting for our FlyOver Toronto experience,
which is targeted to open in 2024. In addition to these growth
projects already underway, we remain very active in evaluating
other growth investments, including acquisitions in iconic
locations and new FlyOver locations.”
Conference Call Details
To join the live conference
call, please register at least 10 minutes before the start of the
call using the following link:
http://www.directeventreg.com/registration/event/5370749. 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 (800) 585-8367 or (416) 621-4642 and entering the
conference ID 5370749.
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,
Reykjavik, and Las Vegas, as well as a new experience in
development in 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
September 30, Nine months ended September 30, ($ in thousands,
except per share data)
2021
2020
$ Change % Change
2021
2020
$ Change % Change
Revenue: GES (Note A)
$
116,044
$
13,992
$
102,052
**
$
160,109
$
319,930
$
(159,821
)
-50.0
%
Pursuit
117,555
48,815
68,740
**
163,658
67,602
96,056
**
Total revenue
$
233,599
$
62,807
$
170,792
**
$
323,767
$
387,532
$
(63,765
)
-16.5
%
Segment operating income (loss): GES
$
(9,499
)
$
(18,248
)
$
8,749
47.9
%
$
(56,300
)
$
(39,450
)
$
(16,850
)
-42.7
%
Pursuit
49,601
11,467
38,134
**
23,183
(26,499
)
49,682
**
Segment operating income (loss)
40,102
(6,781
)
46,883
**
(33,117
)
(65,949
)
32,832
49.8
%
Corporate eliminations
17
16
1
6.3
%
52
48
4
8.3
%
Corporate activities (Note B)
(3,093
)
(2,645
)
(448
)
-16.9
%
(8,104
)
(5,902
)
(2,202
)
-37.3
%
Restructuring charges (Note C)
(2,186
)
(11,259
)
9,073
80.6
%
(5,799
)
(12,370
)
6,571
53.1
%
Impairment charges (Note D)
-
(676
)
676
-100.0
%
-
(203,076
)
203,076
-100.0
%
Pension plan withdrawal
-
-
-
**
(57
)
(462
)
405
87.7
%
Other expense
(466
)
(210
)
(256
)
**
(1,506
)
(894
)
(612
)
-68.5
%
Net interest expense (Note E)
(9,518
)
(5,450
)
(4,068
)
-74.6
%
(20,168
)
(14,399
)
(5,769
)
-40.1
%
Income (loss) from continuing operations before income taxes
24,856
(27,005
)
51,861
**
(68,699
)
(303,004
)
234,305
77.3
%
Income tax expense (Note F)
(5,329
)
(735
)
(4,594
)
**
(118
)
(20,454
)
20,336
99.4
%
Income (loss) from continuing operations
19,527
(27,740
)
47,267
**
(68,817
)
(323,458
)
254,641
78.7
%
Income (loss) from discontinued operations (Note G)
248
(989
)
1,237
**
534
(1,822
)
2,356
** Net income (loss)
19,775
(28,729
)
48,504
**
(68,283
)
(325,280
)
256,997
79.0
%
Net (income) loss attributable to noncontrolling interest
(5,004
)
(2,331
)
(2,673
)
**
(3,049
)
636
(3,685
)
** Net loss attributable to redeemable noncontrolling interest
296
302
(6
)
-2.0
%
1,221
1,023
198
19.4
%
Net income (loss) attributable to Viad
$
15,067
$
(30,758
)
$
45,825
**
$
(70,111
)
$
(323,621
)
$
253,510
78.3
%
Amounts Attributable to Viad: Income (loss) from continuing
operations
$
14,819
$
(29,769
)
$
44,588
**
$
(70,645
)
$
(321,799
)
$
251,154
78.0
%
Income (loss) from discontinued operations (Note G)
248
(989
)
1,237
**
534
(1,822
)
2,356
**
Net income (loss)
$
15,067
$
(30,758
)
$
45,825
**
$
(70,111
)
$
(323,621
)
$
253,510
78.3
%
Diluted income (loss) per common share: Income (loss) from
continuing operations attributable to Viad common shareholders
$
0.45
$
(1.54
)
$
1.99
**
$
(3.80
)
$
(15.98
)
$
12.18
76.2
%
Income (loss) from discontinued operations attributable to Viad
common shareholders
0.01
(0.05
)
0.06
**
0.03
(0.09
)
0.12
**
Net income (loss) attributable to Viad common shareholders
$
0.46
$
(1.59
)
$
2.05
**
$
(3.77
)
$
(16.07
)
$
12.30
76.5
%
Basic income (loss) per common share: Income (loss) from
continuing operations attributable to Viad common shareholders
$
0.45
$
(1.54
)
$
1.99
**
$
(3.80
)
$
(15.98
)
$
12.18
76.2
%
Income (loss) from discontinued operations attributable to Viad
common shareholders
0.01
(0.05
)
0.06
**
0.03
(0.09
)
0.12
**
Net income (loss) attributable to Viad common shareholders
$
0.46
$
(1.59
)
$
2.05
**
$
(3.77
)
$
(16.07
)
$
12.30
76.5
%
Common shares treated as outstanding for income (loss) per
share calculations: Weighted-average outstanding common shares
20,420
20,293
127
0.6
%
20,396
20,263
133
0.7
%
Weighted-average outstanding and potentially dilutive common
shares
20,742
20,293
449
2.2
%
20,396
20,263
133
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 months ended September 30, 2021 was primarily due
to an FX impact loss of $0.8 million on the repayment of our
Canadian debt and due to lower performance-based compensation
expense in 2020 as we reduced our estimated performance achievement
to zero as a result of COVID-19. The increase in corporate
activities expense during the nine months ended September 30, 2021
was primarily due to lower performance-based compensation expense
in 2020.
(C)
Restructuring Charges — Restructuring charges during the three and
nine months ended September 30, 2021 were primarily related to
facility closures and the elimination of certain positions 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 nine months ended
September 30, 2020 were primarily related to the elimination of
certain positions at GES and our corporate office in response to
the COVID-19 pandemic, as well as charges related to the closure of
GES’ United Kingdom-based audio-visual services business during the
third quarter of 2020.
(D)
Impairment Charges — Due to the deteriorating macroeconomic
environment in 2020 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 $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 $1.6 million during the nine
months ended September 30, 2020. We recorded a fixed asset
impairment charge of $0.7 million during the three months ended
September 30, 2020.
(E)
Net Interest Expense — The increase in interest expense during the
three months ended September 30, 2021 was primarily due to higher
interest rates and higher debt balances in 2021. As a result of the
refinance and the repayment of the 2018 Credit Facility, we
recorded $2.1 million of interest expense related to the write-off
of unamortized debt issuance costs during the three months ended
September 30, 2021. The increase in interest expense during the
nine months ended September 30, 2021 was primarily due to higher
debt balances in 2021 and the write-off of unamortized debt
issuance costs.
(F)
Income Tax Expense — The effective tax rate was 21% for the three
months ended September 30, 2021 and a negative 3% for the three
months ended September 30, 2020. The effective tax rate was 0% for
the nine months ended September 30, 2021 and a negative 7% for the
nine months ended September 30, 2020. The effective tax rate for
the three months ended September 30, 2021 was the result of income
earned in Canada without taxes on income in our jurisdictions with
valuation allowances. The rate for the nine months ended September
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, the United Kingdom, and other European countries
where we have a valuation allowance. The negative effective tax
rates for 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 $25 million, as well
as no tax benefits on non-deductible goodwill impairments and
losses recognized in those jurisdictions.
(G)
Income (Loss) from Discontinued Operations — Income from
discontinued operations during the three and nine months ended
September 30, 2021 was primarily due to a favorable legal
settlement and an insurance recovery related to a previously sold
operation, offset in part by legal expenses. Loss from discontinued
operations during the three and nine months ended September 30,
2020 was primarily due to legal expenses related to previously sold
operations.
Three months ended September
30,
Nine months ended September
30,
($ in thousands, except per share data)
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Net income (loss) attributable to Viad
$
15,067
$
(30,758
)
$
45,825
**
$
(70,111
)
$
(323,621
)
$
253,510
78.3
%
Less: Allocation to participating securities
(3,141
)
-
(3,141
)
**
-
-
-
** Convertible preferred stock dividends paid in cash
(1,950
)
-
(1,950
)
**
(1,950
)
-
(1,950
)
** Convertible preferred stock dividends paid in kind1
-
(1,134
)
1,134
-100.0
%
(3,821
)
(1,134
)
(2,687
)
** Adjustment to the redemption value of redeemable noncontrolling
interest
(488
)
(468
)
(20
)
-4.3
%
(1,091
)
(926
)
(165
)
-17.8
%
Net income (loss) allocated to Viad common shareholders
$
9,488
$
(32,360
)
$
41,848
**
$
(76,973
)
$
(325,681
)
$
248,708
76.4
%
Weighted-average outstanding common shares1
20,420
20,293
127
0.6
%
20,396
20,263
133
0.7
%
Basic income (loss) per common share attributable to Viad common
shareholders
$
0.46
$
(1.59
)
$
2.05
**
$
(3.77
)
$
(16.07
)
$
12.30
76.5
%
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 preferred stock was convertible to
6,674,235 shares of common stock of September 30, 2021. **
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
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 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)
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Income (loss) before other items: Net income (loss)
attributable to Viad
$
15,067
$
(30,758
)
$
45,825
**
$
(70,111
)
$
(323,621
)
$
253,510
78.3
%
(Income) loss from discontinued operations attributable to Viad
(248
)
989
(1,237
)
**
(534
)
1,822
(2,356
)
** Income (loss) from continuing operations attributable to Viad
14,819
(29,769
)
44,588
**
(70,645
)
(321,799
)
251,154
78.0
%
Restructuring charges, pre-tax
2,186
11,259
(9,073
)
-80.6
%
5,799
12,370
(6,571
)
-53.1
%
Impairment charges, pre-tax
-
676
(676
)
-100.0
%
-
203,076
(203,076
)
-100.0
%
Pension plan withdrawal, pre-tax
-
-
-
**
57
462
(405
)
-87.7
%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
1,802
1,462
340
23.3
%
6,324
4,773
1,551
32.5
%
Tax benefit on above items
(362
)
(36
)
(326
)
**
(680
)
(122
)
(558
)
** Unfavorable tax matters
-
-
-
**
-
25,500
(25,500
)
-100.0
%
Income (loss) before other items
$
18,445
$
(16,408
)
$
34,853
**
$
(59,145
)
$
(75,740
)
$
16,595
21.9
%
(per diluted share)
Income (loss) before other items:
Net income (loss) attributable to Viad
$
0.46
$
(1.59
)
$
2.05
**
$
(3.77
)
$
(16.07
)
$
12.30
76.5
%
(Income) loss from discontinued operations attributable to Viad
(0.01
)
0.05
(0.06
)
**
(0.03
)
0.09
(0.12
)
** Income (loss) from continuing operations attributable to Viad
0.45
(1.54
)
1.99
**
(3.80
)
(15.98
)
12.18
76.2
%
Restructuring charges, pre-tax
0.11
0.55
(0.44
)
-80.0
%
0.28
0.61
(0.33
)
-54.1
%
Impairment charges, pre-tax
-
0.03
(0.03
)
-100.0
%
-
10.02
(10.02
)
-100.0
%
Pension plan withdrawal, pre-tax
-
-
-
**
-
0.02
(0.02
)
-100.0
%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
0.09
0.07
0.02
28.6
%
0.31
0.24
0.07
29.2
%
Tax benefit on above items
(0.02
)
-
(0.02
)
**
(0.03
)
(0.01
)
(0.02
)
** Unfavorable tax matters
-
-
-
**
-
1.26
(1.26
)
-100.0
%
Equity related adjustments (Note B)
(0.05
)
0.08
(0.13
)
**
-
0.10
(0.10
)
-100.0
%
Income (loss) before other items
$
0.58
$
(0.81
)
$
1.39
**
$
(3.24
)
$
(3.74
)
$
0.50
13.4
%
(A) Acquisition-related costs and other non-recurring
expenses include: Three months ended September 30, Nine months
ended September 30, ($ in thousands)
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Acquisition integration costs - Pursuit1
$
-
$
1
$
(1
)
-100.0
%
$
6
$
61
$
(55
)
-90.2
%
Acquisition transaction-related costs - Pursuit1
381
(2
)
383
**
653
(16
)
669
** Acquisition transaction-related costs - Corporate2
4
4
-
0.0
%
63
183
(120
)
-65.6
%
Attraction start-up costs1, 3
1,415
1,014
401
39.5
%
5,033
2,864
2,169
75.7
%
Other non-recurring expenses2, 4
2
445
(443
)
-99.6
%
569
1,681
(1,112
)
-66.2
%
Acquisition-related and other non-recurring expenses, pre-tax
$
1,802
$
1,462
$
340
23.3
%
$
6,324
$
4,773
$
1,551
32.5
%
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 September 30,
2021 Three months ended September 30, 2020 ($ in thousands) As
Reported Acquisitions(Note A) FX Impact Organic As Reported
Acquisitions(Note A) Organic
Viad Consolidated:
Revenue
$
233,599
$
2,297
$
4,115
$
227,187
$
62,807
$
-
$
62,807
Net income (loss) attributable to Viad
$
15,067
$
(30,758
)
Net income attributable to noncontrolling interest
5,004
2,331
Net loss attributable to redeemable noncontrolling interest
(296
)
(302
)
(Income) loss from discontinued operations
(248
)
989
Income tax expense
5,329
735
Net interest expense
9,518
5,450
Other expense
466
210
Pension plan withdrawal
-
-
Impairment charges
-
676
Restructuring charges
2,186
11,259
Corporate activities expense
3,093
2,645
Corporate eliminations
(17
)
(16
)
Segment operating income (loss)
$
40,102
$
1,504
$
1,194
$
37,404
$
(6,781
)
$
-
$
(6,781
)
Attraction start-up costs (B)
1,415
-
-
1,415
1,014
-
1,014
Integration costs
-
-
-
-
1
-
1
Acquisition transaction-related costs
381
-
7
374
(2
)
-
(2
)
Adjusted segment operating income (loss)
41,898
1,504
1,201
39,193
(5,768
)
-
(5,768
)
Segment depreciation
10,758
22
291
10,445
11,441
-
11,441
Segment amortization
2,712
-
66
2,646
2,463
-
2,463
Adjusted segment EBITDA
$
55,368
$
1,526
$
1,558
$
52,284
$
8,136
$
-
$
8,136
Adjusted segment operating margin
17.9
%
65.5
%
29.2
%
17.3
%
-9.2
%
-9.2
%
Adjusted segment EBITDA margin
23.7
%
66.4
%
37.9
%
23.0
%
13.0
%
13.0
%
GES: Revenue
$
116,044
$
-
$
1,130
$
114,914
$
13,992
$
-
$
13,992
Segment operating loss
$
(9,499
)
$
-
$
(62
)
$
(9,437
)
$
(18,248
)
$
-
$
(18,248
)
Adjusted segment operating loss
(9,499
)
-
(62
)
(9,437
)
(18,248
)
-
(18,248
)
Depreciation
4,024
-
35
3,989
5,266
-
5,266
Amortization
1,250
-
5
1,245
1,401
-
1,401
Adjusted segment EBITDA
$
(4,225
)
$
-
$
(22
)
$
(4,203
)
$
(11,581
)
$
-
$
(11,581
)
Adjusted segment operating margin
-8.2
%
-5.5
%
-8.2
%
** ** Adjusted segment EBITDA margin
-3.6
%
-1.9
%
-3.7
%
-82.8
%
-82.8
%
Pursuit: Revenue
$
117,555
$
2,297
$
2,985
$
112,273
$
48,815
$
-
$
48,815
Segment operating income
$
49,601
$
1,504
$
1,256
$
46,841
$
11,467
$
-
$
11,467
Integration costs
-
-
-
-
1
-
1
Acquisition transaction-related costs
381
-
7
374
(2
)
-
(2
)
Attraction start-up costs (B)
1,415
-
-
1,415
1,014
-
1,014
Adjusted segment operating income
51,397
1,504
1,263
48,630
12,480
-
12,480
Depreciation
6,734
22
256
6,456
6,175
-
6,175
Amortization
1,462
-
61
1,401
1,062
-
1,062
Adjusted segment EBITDA
$
59,593
$
1,526
$
1,580
$
56,487
$
19,717
$
-
$
19,717
Adjusted segment operating margin
43.7
%
65.5
%
42.3
%
43.3
%
25.6
%
25.6
%
Adjusted segment EBITDA margin
50.7
%
66.4
%
52.9
%
50.3
%
40.4
%
40.4
%
(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/20211104006248/en/
Carrie Long or Michelle Porhola Investor Relations (602)
207-2681 ir@viad.com
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