- Delivers significant improvement in full year results with
continued recovery at both Pursuit and GES
- Pursuit fourth quarter revenue exceeds pre-COVID levels
driven by new attractions
- GES fourth quarter revenue increases 38% on sequential
quarter basis
Viad Corp (NYSE: VVI), a leading provider of experiential
leisure travel and live events and marketing experiences, today
reported financial results for the 2021 fourth quarter and full
year.
Steve Moster, president and chief executive officer, commented,
“Both Pursuit and GES finished 2021 with solid fourth quarter
results. Pursuit revenue exceeded pre-COVID levels during the
quarter primarily driven by our new world-class attractions that
opened this year, and GES’ fourth quarter revenue grew 38% on a
sequential quarter basis.”
Fourth Quarter and Full Year 2021 Results
Fourth quarter revenue was $183.6 million, up from $27.9 million
in the 2020 fourth quarter. Fourth quarter net loss attributable to
Viad improved to a net loss of $22.5 million and our consolidated
adjusted EBITDA* improved to negative $3.8 million, as compared to
a net loss of $50.5 million and negative adjusted EBITDA* of $32.8
million in the 2020 fourth quarter.
Full year revenue was $507.3 million, up from $415.4 million in
2020. Full year net loss attributable to Viad improved to $92.7
million and our consolidated adjusted EBITDA* improved to positive
$1.3 million, as compared to a net loss of $374.1 million and
negative adjusted EBITDA* of $56.8 million in 2020.
These improvements relative to the prior year primarily reflect
accelerating activity in leisure travel and in-person events as the
world emerges from COVID lock-downs and finds safe ways to travel
and convene.
* 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, “With a strong rebound in leisure travel, the
return of in-person events, and great execution by our teams, the
company delivered positive adjusted EBITDA for the 2021 full year.
We are very pleased with the actions we have taken to invest in new
high-margin experiences at Pursuit, transform GES’ cost structure,
and increase our financial flexibility to support our growth
initiatives. We are well-positioned for continued improvement in
profitability as our industries continue to recover.”
Regarding Pursuit, Moster commented, “At Pursuit, our seasonally
slow fourth quarter revenue of $23.4 million exceeded the amount
generated in the pre-pandemic 2019 fourth quarter primarily due to
our new attractions that opened this year, which contributed
approximately $5 million in incremental revenue during the quarter.
For the full year, Pursuit revenue of $187 million reached
approximately 84% of the amount generated in 2019, reflecting $15.6
million of incremental revenue from our new experiences and strong
leisure travel demand. Pursuit’s full year adjusted EBITDA of $42.7
million increased by $52.4 million year-over-year. We saw
exceptionally strong visitation during peak season this year at our
Glacier and Alaska experiences, and we expect that to continue into
2022, combined with improved visitation across our Canadian
experiences with the border now open. Our three new high-margin
attractions will have a full season of operations in 2022, and we
will welcome the opening of our new 88-room hotel in Jasper ahead
of this peak season.”
Regarding GES, Moster commented, “At GES, our fourth quarter
revenue of $160.2 million increased 38% from the third quarter and
reached 57% of the amount generated in the 2019 fourth quarter.
GES’ fourth quarter adjusted EBITDA increased $32.5 million
year-over-year and achieved a more than 20% flow-through on
incremental year-over-year revenue. We are very pleased with the
transformational changes we made to significantly improve our cost
structure and how our team worked closely to manage our variable
costs against the event activity during the quarter. As we head
into 2022, we look forward to continuing to produce extraordinary
live events, partnering with new Brand Experiences clients, and
utilizing our low-cost model to maximize profitability.”
Cash Flow and Balance Sheet Highlights
Our 2021 fourth quarter cash flow from operations was an outflow
of approximately $35 million, our capital expenditures totaled
approximately $13 million, and we paid approximately $2 million in
cash dividends on our convertible preferred equity and a $1 million
principal payment on our Term Loan B.
At December 31, 2021, our cash and cash equivalents were
approximately $62 million and we had approximately $87 million of
capacity available on our revolving credit facility ($100 million
total facility size, less approximately $13 million in letters of
credit). Our debt totaled approximately $474 million, including
$399 million outstanding on our Term Loan B, financing lease
obligations of approximately $63 million (which primarily comprises
real estate leases at Pursuit), and approximately $12 million in
other debt.
Moster commented, “Our teams have done and continue to do a
fantastic job responding to the challenges of the COVID pandemic to
maintain a solid liquidity position while also making investments
to continue Pursuit’s growth journey. We are excited about the
investments we made to open three new Pursuit attractions during
2021 that will deliver incremental cash flow and help propel us
back to an accelerated growth trajectory. Additionally, our new
88-room hotel in Jasper is on track to open ahead of this peak
tourism season in the early-summer. We continue to actively pursue
other compelling investments, including new FlyOver locations and
acquisitions in iconic locations.”
2022 Outlook
Moster said, “Having finished 2021 on much stronger footing than
we started, we have much reason to be excited about the year ahead.
At this time last year, the live event industry was still largely
shut down and the Canadian border was closed to international
travel, and that remained the case until the 2021 third quarter.
Fast forward to today, and major live events are taking place
around the world and Canada is welcoming international visitors. We
have three new Pursuit experiences online and a fourth set to open
this summer. GES is successfully servicing clients with its new
lower-cost model and businesses are gradually lifting corporate
travel restrictions as vaccines and mitigation efforts are proving
effective.”
Moster continued, “Without question we are still operating in a
very dynamic environment, and our teams have demonstrated their
ability to anticipate challenges and respond very well. Although
the Omicron variant is resulting in some near-term disruption to
first quarter activity, we expect to deliver significant growth in
full year 2022 revenue and adjusted EBITDA at both Pursuit and
GES.”
Full Year 2022
We expect Pursuit’s full year 2022 adjusted EBITDA to be near or
above pre-pandemic levels with several new experiences online and
improvements in long-haul international travel.
We expect GES’ full year 2022 adjusted EBITDA to be above
breakeven with the acceleration of live event activity as we move
past the near-term disruption to first quarter events caused by the
Omicron variant.
First Quarter 2022
We expect Pursuit’s first quarter 2022 revenue to be
approximately double the revenue generated in the 2019 first
quarter, with a higher seasonal adjusted EBITDA loss. Revenue from
new experiences is anticipated to more than offset lower
international visitation to the Banff area during this seasonally
slow period.
We expect GES’ first quarter 2022 revenue to be approximately
50% lower than the revenue generated in the 2019 first quarter,
with a flow-through on the revenue decline of about 20% to adjusted
EBITDA versus the 2019 quarter. GES’s revenue during the early part
of the first quarter is being impacted by Omicron. We are preparing
for an acceleration of event activity beginning in March.
These expectations are subject to the impact of COVID, including
the Omicron variant.
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:
https://www.incommglobalevents.com/registration/q4inc/9713/viad-corp-fourth-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. 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 (866) 813-9403 or (929) 458-6194 and entering the
conference ID 511621.
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 planned 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.
Forward-Looking Non-GAAP Measures
The company has not quantitatively reconciled its guidance for
adjusted EBITDA to its respective most comparable GAAP measure
because certain reconciling items that impact this metric
including, provision for income taxes, interest expense,
restructuring or impairment charges, acquisition-related costs, and
attraction start-up costs have not occurred, are out of the
company’s control, or cannot be reasonably predicted. Accordingly,
reconciliations to the nearest GAAP financial measure are not
available without unreasonable effort. Please note that the
unavailable reconciling items could significantly impact the
company’s results as reported under GAAP.
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)
2021
2020
$ Change
% Change
2021
2020
$ Change
% Change
Revenue: GES
$
160,183
$
18,695
$
141,488
**
$
320,292
$
338,625
$
(18,333
)
-5.4
%
Pursuit
23,390
9,208
14,182
**
187,048
76,810
110,238
**
Total revenue
$
183,573
$
27,903
$
155,670
**
$
507,340
$
415,435
$
91,905
22.1
%
Segment operating income (loss): GES
$
4,689
$
(34,447
)
$
39,136
**
$
(51,611
)
$
(73,897
)
$
22,286
30.2
%
Pursuit
(18,574
)
(15,844
)
(2,730
)
-17.2
%
4,609
(42,343
)
46,952
**
Segment operating loss
(13,885
)
(50,291
)
36,406
72.4
%
(47,002
)
(116,240
)
69,238
59.6
%
Corporate eliminations
18
17
1
5.9
%
70
65
5
7.7
%
Corporate activities (Note A)
(3,585
)
(2,785
)
(800
)
-28.7
%
(11,689
)
(8,687
)
(3,002
)
-34.6
%
Restructuring charges (Note B)
(267
)
(1,070
)
803
75.0
%
(6,066
)
(13,440
)
7,374
54.9
%
Impairment charges (Note C)
-
-
-
**
-
(203,076
)
203,076
-100.0
%
Pension plan withdrawal
-
-
-
**
(57
)
(462
)
405
87.7
%
Other expense
(507
)
(238
)
(269
)
**
(2,013
)
(1,132
)
(881
)
-77.8
%
Net interest expense (Note D)
(8,156
)
(3,488
)
(4,668
)
**
(28,324
)
(17,887
)
(10,437
)
-58.3
%
Loss from continuing operations before income taxes
(26,382
)
(57,855
)
31,473
54.4
%
(95,081
)
(360,859
)
265,778
73.7
%
Income tax (expense) benefit (Note E)
1,906
6,208
(4,302
)
-69.3
%
1,788
(14,246
)
16,034
**
Loss from continuing operations
(24,476
)
(51,647
)
27,171
52.6
%
(93,293
)
(375,105
)
281,812
75.1
%
Income (loss) from discontinued operations (Note F)
24
(25
)
49
**
558
(1,847
)
2,405
**
Net loss
(24,452
)
(51,672
)
27,220
52.7
%
(92,735
)
(376,952
)
284,217
75.4
%
Net (income) loss attributable to noncontrolling interest
1,363
740
623
84.2
%
(1,686
)
1,376
(3,062
)
**
Net loss attributable to redeemable noncontrolling interest
545
459
86
18.7
%
1,766
1,482
284
19.2
%
Net loss attributable to Viad
$
(22,544
)
$
(50,473
)
$
27,929
55.3
%
$
(92,655
)
$
(374,094
)
$
281,439
75.2
%
Amounts Attributable to Viad: Loss from continuing
operations
$
(22,568
)
$
(50,448
)
$
27,880
55.3
%
$
(93,213
)
$
(372,247
)
$
279,034
75.0
%
Income (loss) from discontinued operations (Note F)
24
(25
)
49
**
558
(1,847
)
2,405
**
Net loss
$
(22,544
)
$
(50,473
)
$
27,929
55.3
%
$
(92,655
)
$
(374,094
)
$
281,439
75.2
%
Loss per common share attributable to Viad (Note G):
Basic loss per common share
$
(1.23
)
$
(2.58
)
$
1.35
52.3
%
$
(5.01
)
$
(18.64
)
$
13.63
73.1
%
Diluted loss per common share
$
(1.23
)
$
(2.58
)
$
1.35
52.3
%
$
(5.01
)
$
(18.64
)
$
13.63
73.1
%
Weighted-average common shares outstanding: Basic
weighted-average outstanding common shares
20,456
20,325
131
0.6
%
20,411
20,279
132
0.7
%
Additional dilutive shares related to share-based compensation
-
-
-
**
-
-
-
**
Diluted weighted-average outstanding common shares
20,456
20,325
131
0.6
%
20,411
20,279
132
0.7
%
As of December 31,
Capitalization Data:
2021
2020
$ Change
% Change
Cash and cash equivalents
61,600
39,545
22,055
55.8
%
Total debt
474,184
296,428
177,756
60.0
%
Viad shareholders' equity
6,282
95,955
(89,673
)
-93.5
%
Non-controlling interests (redeemable and non-redeemable)
91,000
83,369
7,631
9.2
%
Convertible Series A Preferred Stock (Note H): Convertible
preferred shares issued and outstanding
141,827
138,006
3,821
2.8
%
Equivalent number of common shares
6,674
6,494
180
2.8
%
** Change is greater than +/- 100 percent
VIAD CORP AND SUBSIDIARIES TABLE ONE - NOTES TO QUARTERLY
AND FULL YEAR RESULTS (UNAUDITED)
(A)
Corporate Activities — The increase in corporate activities expense
during 2021 relative to 2020 was primarily due to higher
performance-based compensation expense as we reduced our estimated
performance achievement to zero in 2020 as a result of the COVID-19
pandemic, offset in part by fees and expenses related to the equity
raise and credit facility amendment in 2020.
(B)
Restructuring Charges — Restructuring charges during 2021 and 2020
were primarily related to facility closures and the elimination of
certain positions at GES. In response to the COVID-19 pandemic, 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, as well as charges related to the closure of GES’ United
Kingdom based audio-visual services business in 2020. Restructuring
charges in 2020 also included the elimination of certain positions
at our corporate office.
(C)
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.
(D)
Net Interest Expense — The increase in interest expense relative to
2020 was primarily due to higher interest rates and higher debt
balances during 2021. Additionally, 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 2021.
(E)
Income Tax (Expense) Benefit – Our effective income tax rate was 2%
for 2021 as compared to a negative 4% for 2020. The effective tax
rate for 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
rate for 2020 was due to the recording of a $25.5 million valuation
allowance against our remaining deferred tax assets (net) in the
United States, United Kingdom, and other European countries, as
well as no tax benefits on non-deductible goodwill impairments and
losses recognized in those jurisdictions.
(F)
Income (Loss) from Discontinued Operations — Loss from discontinued
operations during 2020 was primarily due to a settlement and legal
expenses related to previously sold operations.
(G)
Income (Loss) per Common Share — We apply the two-class method in
calculating income (loss) per common share as preferred stock and
unvested share-based payment awards that contain nonforteitable
rights to dividends are considered participating securities.
Accordingly, such securities are included in the earnings
allocation in calculating income per share. Diluted income (loss)
per common share is calculated using the more dilutive of the
two-class method or as-converted method. The two-class method uses
net income (loss) available to common stockholders and assumes
conversion of all potential shares other than participating
securities. The as-converted method uses net income (loss)
available to common shareholders and assumes conversion of all
potential shares including participating securities. Dilutive
potential common shares include outstanding stock options, unvested
restricted share units and convertible preferred stock.
Additionally, the adjustment to the carrying value of redeemable
non-controlling interests is reflected in income (loss) per common
share. The components of basic and diluted income (loss) per share
are as follows: Three months ended December 31, Year ended
December 31, (in thousands)
2021
2020
$ Change % Change
2021
2020
$ Change % Change
Net loss attributable to Viad
$
(22,544
)
$
(50,473
)
$
27,929
55.3
%
$
(92,655
)
$
(374,094
)
$
281,439
75.2
%
Convertible preferred stock dividends paid in cash
(1,950
)
-
(1,950
)
**
(3,900
)
-
(3,900
)
**
Convertible preferred stock dividends paid in kind
-
(1,872
)
1,872
-100.0
%
(3,821
)
(3,006
)
(815
)
-27.1
%
Adjustment to the redemption value of redeemable noncontrolling
interest
(706
)
-
(706
)
**
(1,797
)
(926
)
(871
)
-94.1
%
Undistributed income (loss) attributable to Viad
(25,200
)
(52,345
)
27,145
51.9
%
(102,173
)
(378,026
)
275,853
73.0
%
Less: Allocation to participating securities
-
-
-
**
-
-
-
**
Net loss allocated to Viad common shareholders (basic)
$
(25,200
)
$
(52,345
)
$
27,145
51.9
%
$
(102,173
)
$
(378,026
)
$
275,853
73.0
%
Add: Allocation to participating securities
-
-
-
**
-
-
-
**
Net loss allocated to Viad common shareholders (diluted)
$
(25,200
)
$
(52,345
)
$
27,145
51.9
%
$
(102,173
)
$
(378,026
)
$
275,853
73.0
%
Basic weighted-average outstanding common shares
20,456
20,325
131
0.6
%
20,411
20,279
132
0.7
%
Additional dilutive shares related to share-based compensation
-
-
-
**
-
-
-
**
Diluted weighted-average outstanding common shares
20,456
20,325
131
0.6
%
20,411
20,279
132
0.7
%
(H)
Convertible Series A Preferred Stock — On August 5, 2020, we
entered into an Investment Agreement with funds managed by private
equity firm Crestview Partners, relating to the issuance of 135,000
shares of newly issued Convertible Series A Preferred Stock, par
value $0.01 per share, for an aggregate purchase price of $135
million or $1,000 per share. The Convertible Series A Preferred
Stock carries a 5.5% cumulative quarterly dividend, which is
payable in cash or in-kind at Viad’s option and is convertible into
shares of our common stock at a conversion price of $21.25 per
share. During the twelve months ended December 30, 2021, $7.7
million of dividends were deemed declared of which $3.8 million was
paid in-kind during the first and second quarters of 2021 and $3.9
million was paid in cash during the third and fourth quarters of
2021. We intend to pay preferred stock dividends in cash for the
foreseeable future. The following table provides a summary of
changes in Convertible Series A Preferred Stock shares outstanding:
Three months ended Year ended (in thousands) December 31, December
31, Convertible Series A Preferred Stock shares issued and
outstanding:
2021
2020
2021
2020
Beginning of the period
141,827
136,134
138,006
-
New shares issued
-
-
-
135,000
Dividends paid in kind
-
1,872
3,821
3,006
End of the period
141,827
138,006
141,827
138,006
** 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", "Segment Operating Income (Loss)", 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, Segment Operating Income (Loss), 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
provides 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 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, except per share data)
2021
2020
$ Change % Change
2021
2020
$ Change % Change
Loss before other items: Net loss
attributable to Viad
$
(22,544
)
$
(50,473
)
$
27,929
55.3
%
$
(92,655
)
$
(374,094
)
$
281,439
75.2
%
(Income) loss from discontinued operations attributable to Viad
(24
)
25
(49
)
**
(558
)
1,847
(2,405
)
**
Loss from continuing operations attributable to Viad
(22,568
)
(50,448
)
27,880
55.3
%
(93,213
)
(372,247
)
279,034
75.0
%
Restructuring charges, pre-tax
267
1,070
(803
)
-75.0
%
6,066
13,440
(7,374
)
-54.9
%
Impairment charges, pre-tax
-
-
-
**
-
203,076
(203,076
)
-100.0
%
Pension plan withdrawal, pre-tax
-
-
-
**
57
462
(405
)
-87.7
%
Restructuring related inventory write-off, pre-tax
-
5,300
(5,300
)
-100.0
%
-
5,300
(5,300
)
-100.0
%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
(113
)
1,398
(1,511
)
**
6,211
6,188
23
0.4
%
Tax benefit on above items
(43
)
(134
)
91
67.9
%
(723
)
(256
)
(467
)
**
Unfavorable tax matters
-
-
-
**
-
25,500
(25,500
)
-100.0
%
Loss before other items
$
(22,457
)
$
(42,814
)
$
20,357
47.5
%
$
(81,602
)
$
(118,537
)
$
36,935
31.2
%
The components of income (loss) before other items
per share are as follows: Loss before other items (as
reconciled above)
(22,457
)
(42,814
)
20,357
47.5
%
(81,602
)
(118,537
)
36,935
31.2
%
Convertible preferred stock dividends paid in cash
(1,950
)
-
(1,950
)
**
(3,900
)
-
(3,900
)
**
Convertible preferred stock dividends paid in kind
-
(1,872
)
1,872
-100.0
%
(3,821
)
(3,006
)
(815
)
-27.1
%
Undistributed loss before other items attributable to Viad (Note B)
(24,407
)
(44,686
)
20,279
45.4
%
(89,323
)
(121,543
)
32,220
26.5
%
Less: Allocation to participating securities (Note C)
-
-
-
**
-
-
-
**
Diluted loss before other items allocated to Viad common
shareholders
$
(24,407
)
$
(44,686
)
$
20,279
45.4
%
$
(89,323
)
$
(121,543
)
$
32,220
26.5
%
Diluted weighted-average outstanding common shares
20,456
20,325
131
0.6
%
20,411
20,279
132
0.7
%
Loss before other items per common share
$
(1.19
)
$
(2.20
)
$
1.01
45.9
%
$
(4.38
)
$
(5.99
)
$
1.61
26.9
%
(A) Acquisition-related costs and other non-recurring
expenses include: Three months ended December 31, Year ended
December 31, (in thousands)
2021
2020
2021
2020
Acquisition integration costs - Pursuit1
$
-
$
-
$
6
$
62
Acquisition transaction-related costs - Pursuit1
209
-
862
-
Acquisition transaction-related costs - Corporate2
(33
)
11
30
194
Attraction start-up costs1, 3
(289
)
1,298
4,744
4,162
Other non-recurring expenses2, 4
-
89
569
1,770
Acquisition-related and other non-recurring expenses, pre-tax
$
(113
)
$
1,398
$
6,211
$
6,188
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) We exclude the adjustment
to the redemption value of redeemable noncontrolling interest from
the calculation of income before other items per share as it is a
non-cash adjustment that does not affect net income or loss
attributable to Viad. (C) Preferred stock and unvested
share-based payment awards that contain nonforteitable rights to
dividends are considered participating securities. Accordingly,
such securities are included in the earnings allocation in
calculating income (loss) before other items per common share
unless the effect of such inclusion is anti-dilutive. The following
table provides the share data used for calculating the allocation
to participating securities if applicable: Three months ended
December 31, Year ended December 31, (in thousands)
2021
2020
2021
2020
Weighted-average outstanding common shares
20,456
20,325
20,411
20,279
Effect of participating convertible preferred shares (if
applicable)
-
-
-
-
Effect of participating non-vested shares (if applicable)
-
-
-
-
Weighted-average shares including effect of participating interests
(if applicable)
20,456
20,325
20,411
20,279
** 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,
2021 Three months ended December 31, 2020 ($ in thousands) As
Reported Acquisitions (Note A) FX Impact Organic As Reported
Acquisitions (Note A) Organic
Viad Consolidated:
Revenue
$
183,573
$
107
$
932
$
182,534
$
27,903
$
-
$
27,903
Net loss attributable to Viad
$
(22,544
)
$
(50,473
)
Net loss attributable to noncontrolling interest
(1,363
)
(740
)
Net loss attributable to redeemable noncontrolling interest
(545
)
(459
)
(Income) loss from discontinued operations
(24
)
25
Income tax benefit
(1,906
)
(6,208
)
Net interest expense
8,156
3,488
Other expense
507
238
Restructuring charges
267
1,070
Depreciation and amortization
13,764
13,514
Attraction start-up costs (B)
(289
)
1,298
Acquisition transaction-related costs
176
11
Other non-recurring expenses (C)
-
89
Restructuring related inventory write-off (D)
-
5,300
Consolidated Adjusted EBITDA
$
(3,801
)
$
(221
)
$
(25
)
$
(3,555
)
$
(32,847
)
$
-
$
(32,847
)
Corporate Adjusted EBITDA & corporate eliminations (E)
3,596
-
-
3,596
2,655
-
2,655
Segment Adjusted EBITDA
$
(205
)
$
(221
)
$
(25
)
$
41
$
(30,192
)
$
-
$
(30,192
)
GES Segment: Revenue
$
160,183
$
-
$
322
$
159,861
$
18,695
$
-
$
18,695
Segment operating income (loss)
$
4,689
$
-
$
(48
)
$
4,737
$
(34,447
)
$
-
$
(34,447
)
Restructuring related inventory write-off (D)
-
-
-
-
5,300
-
5,300
Adjusted segment operating income (loss)
4,689
-
(48
)
4,737
(29,147
)
-
(29,147
)
Segment depreciation
3,746
-
9
3,737
4,956
-
4,956
Segment amortization
1,214
-
1
1,213
1,353
-
1,353
Segment Adjusted EBITDA
$
9,649
$
-
$
(38
)
$
9,687
$
(22,838
)
$
-
$
(22,838
)
Adjusted segment operating margin
2.9
%
-14.9
%
3.0
%
**
**
Segment Adjusted EBITDA margin
6.0
%
-11.8
%
6.1
%
**
**
Pursuit Segment: Revenue
$
23,390
$
107
$
610
$
22,673
$
9,208
$
-
$
9,208
Segment operating loss
$
(18,574
)
$
(248
)
$
(165
)
$
(18,161
)
$
(15,844
)
$
-
$
(15,844
)
Acquisition transaction-related costs
209
-
2
207
-
-
-
Attraction start-up costs (B)
(289
)
-
-
(289
)
1,298
-
1,298
Adjusted segment operating loss
(18,654
)
(248
)
(163
)
(18,243
)
(14,546
)
-
(14,546
)
Segment depreciation
7,623
27
151
7,445
6,372
-
6,372
Segment amortization
1,177
-
25
1,152
820
-
820
Segment Adjusted EBITDA
$
(9,854
)
$
(221
)
$
13
$
(9,646
)
$
(7,354
)
$
-
$
(7,354
)
Adjusted segment operating margin
-79.8
%
**
-26.7
%
-80.5
%
**
**
Segment Adjusted EBITDA margin
-42.1
%
**
2.1
%
-42.5
%
-79.9
%
-79.9
%
(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. (C) Includes non-capitalizable fees and
expenses related to Viad’s credit facility refinancing efforts. (D)
Includes inventory write-offs at GES in connection with
transitioning to an outsourced model for trade show aisle carpet.
(E) Corporate Adjusted EBITDA is calculated as Corporate activities
expense before depreciation, acquisition-transaction-related costs
and other non-recurring costs included within Corporate activities
expense.
VIAD CORP AND SUBSIDIARIES TABLE TWO - NON-GAAP
FINANCIAL MEASURES (CONTINUED) (UNAUDITED)
Year ended December 31, 2021 Year ended December 31, 2020 ($
in thousands) As Reported Acquisitions (Note A) FX Impact Organic
As Reported Acquisitions (Note A) Organic
Viad
Consolidated: Revenue
$
507,340
$
2,638
$
7,512
$
497,190
$
415,435
$
-
$
415,435
Net loss attributable to Viad
$
(92,655
)
$
(374,094
)
Net income (loss) attributable to noncontrolling interest
1,686
(1,376
)
Net loss attributable to redeemable noncontrolling interest
(1,766
)
(1,482
)
(Income) loss from discontinued operations
(558
)
1,847
Income tax expense (benefit)
(1,788
)
14,246
Net interest expense
28,324
17,887
Other expense
2,013
1,132
Pension plan withdrawal
57
462
Impairment charges
-
203,076
Restructuring charges
6,066
13,440
Depreciation and amortization
53,750
56,565
Attraction start-up costs (B)
4,744
4,162
Integration costs
6
62
Acquisition transaction-related costs
892
194
Other non-recurring expenses (C)
569
1,770
Restructuring related inventory write-off (D)
-
5,300
Consolidated Adjusted EBITDA
$
1,340
$
993
$
225
$
122
$
(56,809
)
$
-
$
(56,809
)
Corporate Adjusted EBITDA & corporate eliminations (E)
10,986
-
-
10,986
6,561
-
6,561
Segment Adjusted EBITDA
$
12,326
$
993
$
225
$
11,108
$
(50,248
)
$
-
$
(50,248
)
GES: Revenue
$
320,292
$
-
$
2,099
$
318,193
$
338,625
$
-
$
338,625
Segment operating loss
$
(51,611
)
$
-
$
(849
)
$
(50,762
)
$
(73,897
)
$
-
$
(73,897
)
Restructuring related inventory write-off (D)
-
-
-
-
5,300
-
5,300
Adjusted segment operating loss
(51,611
)
-
(849
)
(50,762
)
(68,597
)
-
(68,597
)
Depreciation
16,319
-
178
16,141
21,609
-
21,609
Amortization
4,929
-
22
4,907
6,465
-
6,465
Segment Adjusted EBITDA
$
(30,363
)
$
-
$
(649
)
$
(29,714
)
$
(40,523
)
$
-
$
(40,523
)
Adjusted segment operating margin
-16.1
%
-40.4
%
-16.0
%
-20.3
%
-20.3
%
Segment Adjusted EBITDA margin
-9.5
%
-30.9
%
-9.3
%
-12.0
%
-12.0
%
Pursuit: Revenue
$
187,048
$
2,638
$
5,413
$
178,997
$
76,810
$
-
$
76,810
Segment operating income (loss)
$
4,609
$
923
$
(590
)
$
4,276
$
(42,343
)
$
-
$
(42,343
)
Integration costs
6
6
-
-
62
-
62
Acquisition transaction-related costs
862
-
34
828
-
-
-
Attraction start-up costs (B)
4,744
-
-
4,744
4,162
-
4,162
Adjusted segment operating income (loss)
10,221
929
(556
)
9,848
(38,119
)
-
(38,119
)
Depreciation
27,360
64
1,195
26,101
24,760
-
24,760
Amortization
5,108
-
235
4,873
3,634
-
3,634
Segment Adjusted EBITDA
$
42,689
$
993
$
874
$
40,822
$
(9,725
)
$
-
$
(9,725
)
Adjusted segment operating margin
5.5
%
35.2
%
-10.3
%
5.5
%
-49.6
%
-49.6
%
Segment Adjusted EBITDA margin
22.8
%
37.6
%
16.1
%
22.8
%
-12.7
%
-12.7
%
(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. (C) Includes non-capitalizable fees and
expenses related to Viad’s credit facility refinancing efforts. (D)
Includes inventory write-offs at GES in connection with
transitioning to an outsourced model for trade show aisle carpet.
(E) Corporate Adjusted EBITDA is calculated as Corporate activities
expense before depreciation, acquisition-transaction-related costs
and other non-recurring costs included within Corporate activities
expense.
VIAD CORP AND SUBSIDIARIES TABLE TWO - NON-GAAP
FINANCIAL MEASURES (CONTINUED) (UNAUDITED)
2021
($ in thousands) Q1 Q2 Q3 Q4 Full Year
Viad
Consolidated: Revenue
$
28,935
$
61,233
$
233,599
$
183,573
$
507,340
Net income (loss) attributable to Viad
$
(43,152
)
$
(42,026
)
$
15,067
$
(22,544
)
$
(92,655
)
Net income (loss) attributable to noncontrolling interest
(1,445
)
(510
)
5,004
(1,363
)
1,686
Net loss attributable to redeemable noncontrolling interest
(494
)
(431
)
(296
)
(545
)
(1,766
)
(Income) loss from discontinued operations
(348
)
62
(248
)
(24
)
(558
)
Income tax expense (benefit)
(3,045
)
(2,166
)
5,329
(1,906
)
(1,788
)
Net interest expense
5,085
5,565
9,518
8,156
28,324
Other expense
360
680
466
507
2,013
Pension plan withdrawal
-
57
-
-
57
Restructuring charges
2,826
787
2,186
267
6,066
Depreciation and amortization
13,177
13,333
13,476
13,764
53,750
Attraction start-up costs (A)
1,564
2,054
1,415
(289
)
4,744
Integration costs
1
5
-
-
6
Acquisition transaction-related costs
243
88
385
176
892
Other non-recurring expenses (B)
10
557
2
-
569
Consolidated Adjusted EBITDA
$
(25,218
)
$
(21,945
)
$
52,304
$
(3,801
)
$
1,340
Corporate Adjusted EBITDA & corporate eliminations (C)
1,931
2,395
3,064
3,596
10,986
Segment Adjusted EBITDA
$
(23,287
)
$
(19,550
)
$
55,368
$
(205
)
$
12,326
2020
($ in thousands) Q1 Q2 Q3 Q4 Full Year
Viad
Consolidated: Revenue
$
294,658
$
30,067
$
62,807
$
27,903
$
415,435
Net loss attributable to Viad
$
(86,585
)
$
(206,278
)
$
(30,758
)
$
(50,473
)
$
(374,094
)
Net income (loss) attributable to noncontrolling interest
(1,333
)
(1,634
)
2,331
(740
)
(1,376
)
Net loss attributable to redeemable noncontrolling interest
(517
)
(204
)
(302
)
(459
)
(1,482
)
Loss from discontinued operations
454
379
989
25
1,847
Income tax expense (benefit)
(15,797
)
35,516
735
(6,208
)
14,246
Net interest expense
3,939
5,010
5,450
3,488
17,887
Other expense
419
265
210
238
1,132
Pension plan withdrawal
-
462
-
-
462
Impairment charges
88,380
114,020
676
-
203,076
Restructuring charges
851
260
11,259
1,070
13,440
Depreciation and amortization
15,285
13,850
13,916
13,514
56,565
Attraction start-up costs (A)
996
854
1,014
1,298
4,162
Integration costs
70
(10
)
2
-
62
Acquisition transaction-related costs
148
31
4
11
194
Restructuring related inventory write-off (D)
-
-
-
5,300
5,300
Other non-recurring expenses (B)
190
1,046
445
89
1,770
Consolidated Adjusted EBITDA
$
6,500
$
(36,433
)
$
5,971
$
(32,847
)
$
(56,809
)
Corporate Adjusted EBITDA & corporate eliminations (C)
381
1,357
2,168
2,655
6,561
Segment Adjusted EBITDA
$
6,881
$
(35,076
)
$
8,139
$
(30,192
)
$
(50,248
)
(A) 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. (B) Includes
non-capitalizable fees and expenses related to Viad’s credit
facility refinancing efforts. (C) Corporate Adjusted EBITDA is
calculated as Corporate activities expense before depreciation,
acquisition-transaction-related costs and other non-recurring costs
included within Corporate activities expense. (D) 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/20220210005315/en/
Carrie Long or Michelle Porhola Investor Relations (602)
207-2681 ir@viad.com
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