Viad Corp Reports 2024 Second Quarter Results

Rhea-AI Summary

Viad Corp (NYSE: VVI) reported strong Q2 2024 results, exceeding prior guidance. Revenue increased 18.2% to $378.5 million, with Pursuit revenue up 14.4% and GES revenue up 19.6%. Net income attributable to Viad rose to $29.3 million, or $0.97 per diluted share. Adjusted EBITDA grew 50.1% to $64.3 million

However, recent wildfires in Jasper National Park have impacted Pursuit's operations, leading to uncertainty in the full-year outlook. GES's full-year Adjusted EBITDA guidance was raised by $5 million. The company expects Q3 2024 revenue between $418-$463 million and Adjusted EBITDA of $87-$105 million. Full-year revenue is projected to increase by high single digits.

Positive

• Revenue increased 18.2% year-over-year to $378.5 million
• Net income attributable to Viad rose to $29.3 million from $11.0 million in Q2 2023
• Adjusted EBITDA grew 50.1% to $64.3 million
• GES full-year Adjusted EBITDA guidance raised by $5 million
• Strong performance from attractions with a 15% increase in visitors at higher ticket prices

Negative

• Jasper wildfires causing uncertainty in Pursuit's full-year outlook
• Maligne Canyon Wilderness Kitchen lost to wildfire
• Temporary closure of Jasper National Park properties impacting Pursuit's operations

Financial Analyst

Viad Corp's Q2 2024 results demonstrate strong performance across both business segments. Revenue increased by 18.2% to $378.5 million, with Pursuit and GES showing growth of 14.4% and 19.6% respectively. The company's net income attributable to Viad saw a significant jump to $29.3 million, up from $11.0 million in Q2 2023.

Notably, the adjusted EBITDA margin improved substantially, with consolidated adjusted EBITDA increasing by 50.1% to $64.3 million. This margin expansion, particularly in GES (up 65.4%), indicates improved operational efficiency and higher-margin business mix.

However, the Jasper wildfire introduces uncertainty into Pursuit's full-year outlook, potentially impacting Q3 performance. The company's liquidity position remains solid with $128.4 million available, providing a buffer against potential headwinds.

Market Research Analyst

The strong performance in both Pursuit and GES segments indicates robust demand for experiences and corporate events. Pursuit's 15% increase in visitors at higher ticket prices suggests a willingness among consumers to spend on unique attractions, despite inflationary pressures. This trend bodes well for the experience economy sector.

GES's growth, driven by high-margin corporate client spending, points to a recovery in the business events and exhibition market. The 19.6% revenue increase, coupled with significant margin expansion, indicates that companies are not only resuming but potentially increasing their marketing and event budgets.

However, the wildfire impact on Jasper operations introduces a new risk factor. The company's ability to mitigate this through insurance and operational adjustments will be important for maintaining investor confidence in the face of climate-related disruptions.

Risk Management Expert

The Jasper wildfire situation highlights the increasing importance of climate risk management in the tourism and hospitality sectors. While Viad's property losses appear , the closure of Jasper National Park until September 3rd will likely have a significant impact on Q3 results for the Pursuit segment.

The company's proactive approach in working with insurance carriers is prudent, but the extent of recoveries remains uncertain. This event underscores the need for robust business continuity planning and comprehensive insurance coverage in the face of climate-related disruptions.

Investors should closely monitor the company's ability to navigate this challenge and potentially reassess the risk profile of businesses with significant exposure to natural attractions. The incident may also prompt a broader industry discussion on climate resilience strategies for tourism-dependent operations.

• Strong second quarter results exceed prior guidance
• GES show performance and client spend remain strong; raising full year outlook
• Pursuit experiencing stronger guest demand; wildfires in Jasper bring uncertainty to full year outlook

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Viad Corp (NYSE: VVI), a leading global provider of extraordinary experiences, including attractions, hospitality, exhibition services, and experiential marketing, today reported results for the 2024 second quarter.

Steve Moster, Viad’s President and Chief Executive Officer, commented, “We delivered very strong second quarter results that exceeded our expectations. Both Pursuit and GES have seen significant demand for our extraordinary experiences and achieved remarkable results. Pursuit's 14% revenue growth during the quarter was largely driven by strong performance from our attractions, with a 15% increase in visitors at higher effective ticket prices. GES continues to deliver solid profitable growth primarily from stronger high-margin corporate client spending and disciplined cost management.”

Financial Highlights

		Three months ended June 30,
(in millions, except per share data)		2024			2023			$ Change			% Change
Revenue		$	378.5		$	320.3		$	58.2		18.2%
Pursuit Revenue			101.2			88.5			12.7		14.4%
GES Revenue			277.3			231.8			45.5		19.6%
Net Income Attributable to Viad		$	29.3		$	11.0		$	18.4		**
Adjusted Net Income*			29.2			11.8			17.4		**
Diluted EPS Attributable to Viad		$	0.97		$	0.33		$	0.64		**
Adjusted Diluted EPS*			0.97			0.36			0.61		**
Consolidated Adjusted EBITDA*		$	64.3		$	42.9		$	21.5		50.1%
Pursuit Adjusted EBITDA*			23.7			19.5			4.2		21.5%
GES Adjusted EBITDA*			44.4			26.8			17.6		65.4%
Corporate Adjusted EBITDA*			(3.8)			(3.5)			(0.3)		(8.5%)
* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.
** Change is greater than +/- 100 percent

In addition to the commentary below, further information regarding our financial results, trends, and outlook are available in a supplemental earnings presentation, which can be accessed on the “Investors” section of our website, and in the financial tables accompanying this press release.

Second Quarter Results

• Revenue of $378.5 million increased $58.2 million (18.2%) from the 2023 second quarter.
  • Pursuit revenue of $101.2 million increased $12.7 million (14.4%) year-over-year due to growth across our collections of properties, with particularly strong demand for our attractions and contribution from Flyover Chicago (opened March 2024).
  • GES revenue of $277.3 million increased $45.5 million (19.6%) year-over-year primarily due to new client wins and continued underlying growth.
• Net income attributable to Viad of $29.3 million increased $18.4 million and adjusted net income* of $29.2 million improved $17.4 million from the 2023 second quarter primarily due to stronger business performance from both GES and Pursuit, partially offset by higher depreciation expense.
• Consolidated adjusted EBITDA* of $64.3 million increased $21.5 million from the 2023 second quarter.
  • Pursuit adjusted EBITDA* of $23.7 million increased $4.2 million year-over-year primarily due to stronger revenue and improved margin.
  • GES adjusted EBITDA of $44.4 million increased $17.6 million year-over-year primarily driven by higher revenue and significant margin expansion.

Cash Flow and Balance Sheet Highlights

• Our cash flow from operations was an inflow of about $20 million for the second quarter.
• Our capital expenditures for the second quarter totaled approximately $17 million, comprising $14.4 million for Pursuit (inclusive of about $6 million for growth projects) and $2.7 million for GES.
• Our debt proceeds (net) totaled $2.5 million for the second quarter.
• Our total liquidity was $128.4 million at June 30, 2024, comprising cash and cash equivalents of $49.0 million and $79.4 million of capacity available on our revolving credit facility.
• Our debt was $490.9 million, and our net leverage ratio was 2.4 at the end of the second quarter.

Jasper Wildfire Update

As we previously reported by 8-K, Jasper National Park was closed and evacuated on July 22, 2024, and a wildfire entered the Jasper townsite on July 24, 2024. The Municipality of Jasper reported that about 70% of the town, including homes, businesses and hotels were thankfully untouched by fire and are intact. All critical municipal infrastructure was successfully protected, and power is being restored as authorities work to safely re-open the town.

All Pursuit hotels and experiences in the Jasper townsite, as well as our Pyramid Lake Lodge, Miette Mountain Cabins, and Maligne Lake Boat Cruise were not reached by the fire and remain intact. Our known property losses have been limited to the Maligne Canyon Wilderness Kitchen, a restaurant and retail operation about 3 miles outside the town of Jasper.

The majority of the park, including the town of Jasper, remains closed as authorities continue work to control the fire and restore critical services to the Jasper townsite. Parks Canada communicated that if current conditions continue, visitor services in the park are expected to resume September 3, 2024.

We are working with our insurance carriers to determine the extent of potential recoveries from our policies, which will be highly fact determinative based on what we learn when we and our insurance adjusters are able to access our properties.

2024 Outlook

Steve Moster, Viad’s President and Chief Executive Officer, said, “Given our stronger than expected performance during the first half of 2024 and the favorable underlying demand trends we are seeing, we were prepared to raise our full year guidance. However, following the Jasper wildfire activity, which resulted in the temporary closure of our properties in the area, we are providing revised guidance for Pursuit that estimates the potential impact. For GES, we are raising our full year Adjusted EBITDA guidance range by $5 million.”

Our guidance for Viad consolidated, Pursuit, and GES is below. Pursuit's guidance range assumes Jasper National Park re-opens on September 3 and is subject to change due to the evolving wildfire situation. We will update as appropriate during the third quarter.

(in millions)	Third Quarter	Full Year
Viad Consolidated
Revenue	$418 to $463	Up high-single digits
Adjusted EBITDA	$87 to $105	$151 to $176
Cash flow from Operations	$70 to $80	$80 to $100
Capital Expenditures	$14 to $19 (including growth capex of ~$4)	$65 to $70 (including growth capex of ~$20)
Effective Tax Rate	11% to 12%	28% to 29%
Pursuit
Revenue	$160 to $185	In line with prior year
Adjusted EBITDA	$75 to $90	$80 to $95
GES
Revenue	$258 to $278	Up low-double digits
Adjusted EBITDA	$15 to $19	$85 to $95

Conference Call Details

Management will host a conference call to review second quarter 2024 results on Tuesday, August 6, 2024, at 5 p.m. (Eastern Time).

The conference call can be accessed with operator assistance by calling (404) 975-4839 or (833) 470-1428 and entering the access code 153001.

To avoid wait time and bypass speaking with an operator to join the call, participants can pre-register using the following registration link: https://www.netroadshow.com/events/login?show=e6b43f98&confId=68140. After registering, a calendar invitation will be sent that includes dial-in information as well as unique codes for entry into the live call. We recommend that you register 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 (929) 458-6194 or (866) 813-9403 and entering the access code 573476.

Additionally, we posted a supplemental earnings presentation, containing our financial results, trends and outlook, on the “Investors” section of our website prior to the conference call. We will refer to this presentation during the call.

About Viad

Viad (NYSE: VVI) is a leading global provider of extraordinary experiences, including attractions, hospitality, exhibition services, and experiential marketing through two businesses: Pursuit and GES. Our business strategy focuses on delivering extraordinary experiences for our teams, clients and guests, and significant and sustainable growth and above-market returns for our shareholders. Viad is an S&P SmallCap 600 company.

Pursuit is a global attractions and hospitality company that owns and operates a collection of inspiring and unforgettable experiences in iconic destinations. Pursuit’s elevated hospitality experiences enable visitors to discover and connect with world-class attractions, distinctive lodges, and engaging tours in stunning national parks and renowned global travel locations, in addition to experiencing our collection of Flyover Attractions in the vibrant cities of Vancouver, Reykjavik, Las Vegas, and Chicago.

GES is a global exhibition services and experiential marketing company offering a comprehensive range of services to the world’s leading event organizers and brands through two reportable segments, GES Exhibitions and Spiro. GES Exhibitions is a global exhibition and trade show management business that partners with leading exhibition and conference organizers as a full-service provider of strategic and logistics solutions to manage the complexity of their shows with teams throughout North America, Europe, and the Middle East. Spiro is a global experiential marketing agency that partners with leading brands around the world to manage and elevate their experiential marketing activities, bonding brand and customer.

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:

• general economic uncertainty in key global markets and a worsening of global economic conditions;
• travel industry disruptions;
• the impact of our overall level of indebtedness, as well as our financial covenants, on our operational and financial flexibility;
• seasonality of our businesses;
• unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals for such projects;
• the importance of key members of our account teams to our business relationships;
• our ability to manage our business and continue our growth if we lose any of our key personnel;
• the competitive nature of the industries in which we operate;
• our dependence on large exhibition event clients;
• adverse effects of show rotation on our periodic results and operating margins;
• transportation disruptions and increases in transportation costs;
• natural disasters, weather conditions, accidents, and other catastrophic events;
• our exposure to labor cost increases and work stoppages related to unionized employees;
• our multi-employer pension plan funding obligations;
• our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;
• our exposure to cybersecurity attacks and threats;
• our exposure to currency exchange rate fluctuations;
• liabilities relating to prior and discontinued operations;
• sufficiency and cost of insurance coverage; and
• 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.

For a more complete discussion of the risks and uncertainties that may affect our business or financial results, please see Item 1A, “Risk Factors,” of our most recent annual report on Form 10-K filed with the SEC. 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 financial measure because certain reconciling items that impact this metric, including provision for income taxes, interest expense, restructuring or impairment charges, transaction-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
TABLE ONE - QUARTERLY RESULTS (UNAUDITED)
		Three months ended June 30,														Six months ended June 30,
(in thousands, except per share data)		2024				2023				$ Change				% Change		2024				2023				$ Change				% Change
Revenue:
Pursuit		$	101,201			$	88,474			$	12,727			14.4%		$	138,432			$	121,137			$	17,295			14.3%
GES:
Spiro			99,132				80,368				18,764			23.3%			160,380				140,730				19,650			14.0%
GES Exhibitions			180,977				154,534				26,443			17.1%			356,817				324,031				32,786			10.1%
Inter-segment eliminations			(2,772	)			(3,065	)			293			9.6%			(3,594	)			(4,796	)			1,202			25.1%
Total GES			277,337				231,837				45,500			19.6%			513,603				459,965				53,638			11.7%
Total		$	378,538			$	320,311			$	58,227			18.2%		$	652,035			$	581,102			$	70,933			12.2%
Segment operating income (loss):
Pursuit		$	12,638			$	9,811			$	2,827			28.8%		$	(11,193	)		$	(9,301	)		$	(1,892	)		-20.3%
GES:
Spiro			17,517				8,279				9,238			**			21,518				11,453				10,065			87.9%
GES Exhibitions			23,282				15,354				7,928			51.6%			34,639				25,764				8,875			34.4%
Total GES			40,799				23,633				17,166			72.6%			56,157				37,217				18,940			50.9%
Total		$	53,437			$	33,444			$	19,993			59.8%		$	44,964			$	27,916			$	17,048			61.1%
Corporate eliminations			16				16				-			0.0%			32				32				-			0.0%
Corporate activities (Note A)			(5,422	)			(3,511	)			(1,911	)		(54.4%)			(9,855	)			(6,676	)			(3,179	)		-47.6%
Gain on sale of ON Services			-				(204	)			204			(100.0%)			-				(204	)			204			-100.0%
Restructuring (charges) recoveries			825				(192	)			1,017			**			709				(645	)			1,354			**
Other expense, net			(442	)			(448	)			6			1.3%			(880	)			(979	)			99			10.1%
Net interest expense			(12,585	)			(12,356	)			(229	)		(1.9%)			(24,430	)			(24,605	)			175			0.7%
Income (loss) from continuing operations before income taxes			35,829				16,749				19,080			**			10,540				(5,161	)			15,701			**
Income tax expense (Note B)			(5,851	)			(5,028	)			(823	)		(16.4%)			(6,738	)			(4,450	)			(2,288	)		-51.4%
Income (loss) from continuing operations			29,978				11,721				18,257			**			3,802				(9,611	)			13,413			**
Income (loss) from discontinued operations			900				(143	)			1,043			**			833				(201	)			1,034			**
Net income (loss)			30,878				11,578				19,300			**			4,635				(9,812	)			14,447			**
Net income attributable to noncontrolling interest			(1,807	)			(903	)			(904	)		**			(884	)			(505	)			(379	)		-75.0%
Net loss attributable to redeemable noncontrolling interest			240				286				(46	)		(16.1%)			443				409				34			8.3%
Net income (loss) attributable to Viad		$	29,311			$	10,961			$	18,350			**		$	4,194			$	(9,908	)		$	14,102			**
Amounts Attributable to Viad:
Income (loss) from continuing operations		$	28,411			$	11,104			$	17,307			**		$	3,361			$	(9,707	)		$	13,068			**
Income (loss) from discontinued operations			900				(143	)			1,043			**			833				(201	)			1,034			**
Net income (loss)		$	29,311			$	10,961			$	18,350			**		$	4,194			$	(9,908	)		$	14,102			**
Income (loss) per common share attributable to Viad (Note C):
Basic income (loss) per common share		$	0.98			$	0.33			$	0.65			**		$	0.01			$	(0.66	)		$	0.67			**
Diluted income (loss) per common share		$	0.97			$	0.33			$	0.64			**		$	0.01			$	(0.66	)		$	0.67			**
Weighted-average common shares outstanding:
Basic weighted-average outstanding common shares			21,126				20,840				286			1.4%			21,078				20,796				282			1.4%
Additional dilutive shares related to share-based compensation			395				135				260			**			389				-				389			**
Diluted weighted-average outstanding common shares			21,521				20,975				546			2.6%			21,467				20,796				671			3.2%
Adjusted EBITDA* by Reportable Segment:
Pursuit		$	23,678			$	19,482			$	4,196			21.5%		$	12,530			$	9,167			$	3,363			36.7%
GES:
Spiro			18,101				8,940				9,161			**			22,741				12,677				10,064			79.4%
GES Exhibitions			26,313				17,905				8,408			47.0%			40,588				30,912				9,676			31.3%
Total GES			44,414				26,845				17,569			65.4%			63,329				43,589				19,740			45.3%
Corporate			(3,764	)			(3,470	)			(294	)		(8.5%)			(7,220	)			(6,507	)			(713	)		-11.0%
Consolidated Adjusted EBITDA		$	64,328			$	42,857			$	21,471			50.1%		$	68,639			$	46,249			$	22,390			48.4%
Capitalization Data:
Cash and cash equivalents		$	48,981			$	53,179			$	(4,198	)		(7.9%)
Total debt			490,936				477,876				13,060			2.7%
Viad shareholders' equity			37,707				16,487				21,220			**
Non-controlling interests (redeemable and non-redeemable)			88,968				88,216				752			0.9%
Convertible Series A Preferred Stock (Note D):
Convertible preferred stock (including accumulated dividends paid in kind)***			141,827				141,827				-			0.0%
Equivalent number of common shares			6,674				6,674				-			0.0%
* Refer to Table Two for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.
** Change is greater than +/- 100 percent
*** Amount shown excludes transaction costs, which are netted against the value of the preferred shares when presented on Viad's balance sheet.

VIAD CORP

TABLE ONE - NOTES TO QUARTERLY RESULTS (UNAUDITED)

(A) Corporate Activities - The increase in corporate activities is primarily due to increased consulting costs.

(B) Income tax expense – The effective tax rate was 16.3% for the three months ended June 30, 2024, 30.0% for the three months ended June 30, 2023, 63.9% for the six months ended June 30, 2024, and a negative 86.2% for six months ended June 30, 2023. The effective tax rates differed from the 21% federal rate as we do not recognize a tax benefit primarily on losses in the United States where we have a valuation allowance. For the six months ended June 30, 2024, we also recorded a $1.1 million benefit for the release of the valuation allowance recorded on the United Kingdom’s tax loss carryforwards, offset by a $0.5 million expense during the first quarter of 2024 to record estimated withholding taxes associated with repatriating Sky Lagoon’s earnings and a valuation allowance against the tax credit generated from this withholding tax. The effective tax rate for the six months ended June 30, 2023, was further impacted by the release of a valuation allowance of $2.1 million during the first quarter of 2023 on deferred tax assets associated with certain separate state filings, which more than offset taxes due in jurisdictions without a valuation allowance.

(C) 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 nonforfeitable 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.

The components of basic and diluted income (loss) per share are as follows:
		Three months ended June 30,														Six months ended June 30,
(in thousands)		2024				2023				$ Change				% Change		2024				2023				$ Change				% Change
Net income (loss) attributable to Viad		$	29,311			$	10,961			$	18,350			**		$	4,194			$	(9,908	)		$	14,102			**
Convertible preferred stock dividends			(1,950	)			(1,950	)			-			0.0%			(3,900	)			(3,900	)			-			0.0%
Undistributed income (loss) attributable to Viad			27,361				9,011				18,350			**			294				(13,808	)			14,102			**
Less: Allocation to participating securities			(6,569	)			(2,186	)			(4,382	)		**			(71	)			-				(71	)		**
Net income (loss) allocated to Viad common shareholders (basic)		$	20,792			$	6,825			$	13,968			**		$	223			$	(13,808	)		$	14,031			**
Add: Allocation to participating securities			92				11				81			**			1				-				1			**
Net income (loss) allocated to Viad common shareholders (diluted)		$	20,884			$	6,836			$	14,048			**		$	224			$	(13,808	)		$	14,032			**
Basic weighted-average outstanding common shares			21,126				20,840				286			1.4%			21,078				20,796				282			1.4%
Additional dilutive shares related to share-based compensation			395				135				260			**			389				-				389			**
Diluted weighted-average outstanding common shares			21,521				20,975				546			2.6%			21,467				20,796				671			3.2%
** Change is greater than +/- 100 percent
(D) 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.

VIAD CORP

TABLE TWO - NON-GAAP FINANCIAL MEASURES (UNAUDITED)

IMPORTANT DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES

This document includes the presentation of "Adjusted Net Income (Loss)", "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.

Adjusted Net Income (Loss), 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 June 30,														Six months ended June 30,
(in thousands, except per share data)		2024				2023				$ Change				% Change		2024				2023				$ Change				% Change
Adjusted net income (loss):
Net income (loss) attributable to Viad		$	29,311			$	10,961			$	18,350			**		$	4,194			$	(9,908	)		$	14,102			**
(Income) loss from discontinued operations attributable to Viad			(900	)			143				(1,043	)		**			(833	)			201				(1,034	)		**
Income (loss) from continuing operations attributable to Viad			28,411				11,104				17,307			**			3,361				(9,707	)			13,068			**
Gain on sale of ON Services			-				204				(204	)		(100.0%)			-				204				(204	)		-100.0%
Restructuring charges (recoveries), pre-tax			(825	)			192				(1,017	)		**			(709	)			645				(1,354	)		**
Transaction-related costs and other non-recurring expenses, pre-tax (Note A)			1,682				465				1,217			**			4,559				1,311				3,248			**
Remeasurement of finance lease obligation attributable to Viad, pre-tax (Note B)			(93	)			(184	)			91			49.5%			419				(823	)			1,242			**
Tax expense (benefit) on above items			31				60				(29	)		(48.3%)			(170	)			309				(479	)		**
Favorable tax matters			-				-				-			**			-				(2,103	)			2,103			-100.0%
Adjusted net income (loss)		$	29,206			$	11,841			$	17,365			**		$	7,460			$	(10,164	)		$	17,624			**
Adjusted diluted EPS:
Adjusted net income (loss) (as reconciled above)		$	29,206			$	11,841			$	17,365			**		$	7,460			$	(10,164	)		$	17,624			**
Convertible preferred stock dividends			(1,950	)			(1,950	)			-			0.0%			(3,900	)			(3,900	)			-			0.0%
Undistributed adjusted net income (loss) attributable to Viad (Note C)			27,256				9,891				17,365			**			3,560				(14,064	)			17,624			**
Less: Allocation to participating securities (Note D)			(6,452	)			(2,388	)			(4,064	)		**			(844	)			-				(844	)		**
Diluted adjusted net income (loss) allocated to Viad common shareholders		$	20,804			$	7,503			$	13,301			**		$	2,716			$	(14,064	)		$	16,780			**
Diluted weighted-average outstanding common shares			21,521				20,975				546			2.6%			21,467				20,796				671			3.2%
Adjusted diluted EPS		$	0.97			$	0.36			$	0.61			**		$	0.13			$	(0.68	)		$	0.81			**
** Change is greater than +/- 100 percent

(A) Transaction-related costs and other non-recurring expenses include:
		Three months ended June 30,								Six months ended June 30,
(in thousands)		2024				2023				2024				2023
Acquisition integration costs - Pursuit1		$	-			$	-			$	-			$	30
Transaction-related costs - Pursuit1			49				42				52				74
Transaction-related costs - Corporate2			1,550				6				2,409				3
Attraction start-up costs1, 3			20				417				1,960				1,109
Other non-recurring expenses2, 4			63				-				138				95
Transaction-related and other non-recurring expenses, pre-tax		$	1,682			$	465			$	4,559			$	1,311
1 Included in segment operating loss
2 Included in corporate activities
3 Includes costs primarily related to the development of Pursuit's new FlyOver attraction in Chicago.
4 Includes non-capitalizable fees and expenses related to Viad’s shelf registration in 2024 and Viad’s credit facility refinancing efforts in 2023.

(B) Remeasurement of finance lease obligation attributable to Viad represents the non-cash foreign exchange loss/(gain) included within Cost of Services related to the periodic remeasurement of the Sky Lagoon finance lease obligation that is attributed to Viad’s 51% interest in Sky Lagoon.
(C) We exclude the adjustment to the redemption value of redeemable noncontrolling interest from the calculation of adjusted net income (loss) per share as it is a non-cash adjustment that does not affect net income or loss attributable to Viad.
(D) Preferred stock and unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating adjusted net income (loss) 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 June 30,								Six months ended June 30,
(in thousands)		2024				2023				2024				2023
Weighted-average outstanding common shares			21,521				20,975				21,467				20,796
Effect of participating convertible preferred shares (if applicable)			6,674				6,674				6,674				-
Effect of participating non-vested shares (if applicable)			-				-				-				-
Weighted-average shares including effect of participating interests (if applicable)			28,195				27,649				28,141				20,796

VIAD CORP
TABLE TWO - NON-GAAP FINANCIAL MEASURES CONTINUED (UNAUDITED)
		Three months ended June 30,														Six months ended June 30,
($ in thousands)		2024				2023				$ Change				% Change		2024				2023				$ Change				% Change
Viad Consolidated:
Revenue		$	378,538			$	320,311			$	58,227			18.2%		$	652,035			$	581,102			$	70,933			12.2%
Net income (loss) attributable to Viad		$	29,311			$	10,961			$	18,350			**		$	4,194			$	(9,908	)		$	14,102			**
Net income attributable to noncontrolling interest			1,807				903				904			**			884				505				379			75.0%
Net loss attributable to redeemable noncontrolling interest			(240	)			(286	)			46			16.1%			(443	)			(409	)			(34	)		-8.3%
(Income) loss from discontinued operations			(900	)			143				(1,043	)		**			(833	)			201				(1,034	)		**
Net interest expense			12,585				12,356				229			1.9%			24,430				24,605				(175	)		-0.7%
Income tax expense			5,851				5,028				823			16.4%			6,738				4,450				2,288			51.4%
Depreciation and amortization			14,797				12,804				1,993			15.6%			28,117				25,279				2,838			11.2%
Gain on sale of ON Services			-				204				(204	)		(100.0%)			-				204				(204	)		-100.0%
Restructuring charges (recoveries)			(825	)			192				(1,017	)		**			(709	)			645				(1,354	)		**
Other expense, net			442				448				(6	)		(1.3%)			880				979				(99	)		-10.1%
Start-up costs (A)			20				417				(397	)		(95.2%)			1,960				1,109				851			76.7%
Transaction-related costs			1,599				48				1,551			**			2,461				77				2,384			**
Integration costs			-				-				-			**			-				30				(30	)		-100.0%
Other non-recurring expenses (B)			63				-				63			**			138				95				43			45.3%
Remeasurement of finance lease obligation (C)			(182	)			(361	)			179			49.6%			822				(1,613	)			2,435			**
Consolidated Adjusted EBITDA		$	64,328			$	42,857			$	21,471			50.1%		$	68,639			$	46,249			$	22,390			48.4%
Adjusted EBITDA attributable to noncontrolling interest			(3,824	)			(2,781	)			(1,043	)		(37.5%)			(5,043	)			(3,426	)			(1,617	)		-47.2%
Consolidated Adjusted EBITDA attributable to Viad		$	60,504			$	40,076			$	20,428			51.0%		$	63,596			$	42,823			$	20,773			48.5%
Consolidated Adjusted EBITDA by Business:
Pursuit		$	23,678			$	19,482			$	4,196			21.5%		$	12,530			$	9,167			$	3,363			36.7%
Total GES			44,414				26,845				17,569			65.4%			63,329				43,589				19,740			45.3%
Total			68,092				46,327				21,765			47.0%			75,859				52,756				23,103			43.8%
Corporate EBITDA (D)			(3,764	)			(3,470	)			(294	)		(8.5%)			(7,220	)			(6,507	)			(713	)		-11.0%
Consolidated Adjusted EBITDA		$	64,328			$	42,857			$	21,471			50.1%		$	68,639			$	46,249			$	22,390			48.4%
Pursuit Adjusted EBITDA:
Revenue		$	101,201			$	88,474			$	12,727			14.4%		$	138,432			$	121,137			$	17,295			14.3%
Cost of services and products			(88,563	)			(78,663	)			(9,900	)		(12.6%)			(149,625	)			(130,438	)			(19,187	)		-14.7%
Segment operating income (loss)			12,638				9,811				2,827			28.8%			(11,193	)			(9,301	)			(1,892	)		-20.3%
Depreciation			9,942				8,279				1,663			20.1%			18,565				16,413				2,152			13.1%
Amortization			1,211				1,294				(83	)		(6.4%)			2,324				2,455				(131	)		-5.3%
Start-up costs (A)			20				417				(397	)		(95.2%)			1,960				1,109				851			76.7%
Transaction-related costs			49				42				7			16.7%			52				74				(22	)		-29.7%
Integration costs			-				-				-			**			-				30				(30	)		-100.0%
Remeasurement of finance lease obligation (C)			(182	)			(361	)			179			49.6%			822				(1,613	)			2,435			**
Adjusted EBITDA		$	23,678			$	19,482			$	4,196			21.5%		$	12,530			$	9,167			$	3,363			36.7%
Adjusted EBITDA attributable to noncontrolling interest			(3,824	)			(2,781	)			(1,043	)		(37.5%)			(5,043	)			(3,426	)			(1,617	)		-47.2%
Adjusted EBITDA attributable to Viad		$	19,854			$	16,701			$	3,153			18.9%		$	7,487			$	5,741			$	1,746			30.4%
Pursuit Operating margin		12.5%				11.1%								1.4%		-8.1%				-7.7%								-0.4%
Pursuit Adjusted EBITDA margin		23.4%				22.0%								1.4%		9.1%				7.6%								1.5%
Total GES Adjusted EBITDA:
Revenue		$	277,337			$	231,837			$	45,500			19.6%		$	513,603			$	459,965			$	53,638			11.7%
Cost of services and products			(236,538	)			(208,204	)			(28,334	)		(13.6%)			(457,446	)			(422,748	)			(34,698	)		-8.2%
Segment operating income			40,799				23,633				17,166			72.6%			56,157				37,217				18,940			50.9%
Depreciation			2,752				2,240				512			22.9%			5,434				4,418				1,016			23.0%
Amortization			863				972				(109	)		(11.2%)			1,738				1,954				(216	)		-11.1%
Total GES Adjusted EBITDA		$	44,414			$	26,845			$	17,569			65.4%		$	63,329			$	43,589			$	19,740			45.3%
Total GES Operating margin		14.7%				10.2%								4.5%		10.9%				8.1%								2.8%
Total GES Adjusted EBITDA margin		16.0%				11.6%								4.4%		12.3%				9.5%								2.9%
GES Adjusted EBITDA by Reportable Segment:
Spiro		$	18,101			$	8,940			$	9,161			**		$	22,741			$	12,677			$	10,064			79.4%
GES Exhibitions			26,313				17,905				8,408			47.0%			40,588				30,912				9,676			31.3%
Total GES		$	44,414			$	26,845			$	17,569			65.4%		$	63,329			$	43,589			$	19,740			45.3%
Spiro Revenue		$	99,132			$	80,368			$	18,764			23.3%		$	160,380			$	140,730			$	19,650			14.0%
Spiro Adjusted EBITDA Margin		18.3%				11.1%								7.1%		14.2%				9.0%								5.2%
GES Exhibitions Revenue		$	180,977			$	154,534			$	26,443			17.1%		$	356,817			$	324,031			$	32,786			10.1%
GES Exhibitions Adjusted EBITDA Margin		14.5%				11.6%								3.0%		11.4%				9.5%								1.8%
** Change is greater than +/- 100 percent
(A) Includes costs primarily related to the development of Pursuit's new FlyOver attraction in Chicago.
(B) Includes non-capitalizable fees and expenses related to Viad’s shelf registration in 2024 and Viad’s credit facility refinancing efforts in 2023.
(C) Remeasurement of finance lease obligation represents the non-cash foreign exchange loss/(gain) included within Cost of Services related to the periodic remeasurement of the Sky Lagoon finance lease obligation.
(D) Corporate Adjusted EBITDA is calculated as Corporate activities expense before depreciation, transaction-related costs and other non-recurring costs included within Corporate activities expense.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806131119/en/

Carrie Long or Michelle Porhola

Investor Relations

(602) 207-2681

ir@viad.com

Source: Viad Corp

FAQ

What was Viad Corp's (VVI) revenue for Q2 2024?

Viad Corp's revenue for Q2 2024 was $378.5 million, an increase of 18.2% from the previous year.

How did the Jasper wildfires affect Viad Corp's (VVI) outlook for 2024?

The Jasper wildfires caused uncertainty in Pursuit's full-year outlook and led to the temporary closure of Viad's properties in the area, impacting the company's overall guidance for 2024.

What is Viad Corp's (VVI) projected revenue range for Q3 2024?

Viad Corp projects Q3 2024 revenue to be between $418 million and $463 million.

How much did Viad Corp's (VVI) Adjusted EBITDA grow in Q2 2024?

Viad Corp's Adjusted EBITDA grew 50.1% to $64.3 million in Q2 2024 compared to the same period in 2023.