Viad Corp Reports Results for the 2021 First Quarter
Viad Corp (NYSE: VVI) reported its first quarter 2021 financial results, revealing revenue of $28.9 million, a significant decline from $294.7 million in Q1 2020, largely due to pandemic impacts. The net loss for the quarter was $43.2 million. Despite challenges, the company maintained a liquidity position of approximately $220 million and made progress in cash flow management. Notably, demand for leisure travel is increasing, and GES is seeing a gradual recovery in event bookings. The firm continues to prepare for a stronger summer tourism season with new attractions opening soon.
- Liquidity position as of March 31, 2021, is approximately $220 million.
- Continued progress in cash flow management despite revenue declines.
- Increased demand and strong advance bookings for leisure travel.
- Completed tuck-in acquisition to enhance Pursuit's portfolio.
- Revenue decreased by 90% year-over-year, from $294.7 million to $28.9 million.
- Net loss for the quarter was $43.2 million.
- GES revenue dropped 93%, reflecting minimal face-to-face event activity.
Viad Corp (NYSE: VVI), a leading provider of experiential leisure travel and live events and marketing experiences, today reported financial results for the 2021 first quarter. The company continued its sharp focus on cash flow management, while making important progress on initiatives that will position the company for stronger results in 2021 and beyond.
Steve Moster, president and chief executive officer, commented, “As expected, our first quarter revenue was affected by pandemic-related restrictions and our team continued to respond incredibly well to maximize revenue, control costs and provide great service for our guests and clients. We ended the quarter in a strong liquidity position and we have taken additional actions to accelerate our recovery and position us for greater success as our industries recover. Notably, we continued to reduce GES’ facility footprint and we completed a great tuck-in acquisition to expand Pursuit’s portfolio of high-margin attractions.”
Moster continued, “With continued progress on the number of vaccinations, we are seeing increased demand and optimism for both leisure travel and in-person events. This is manifesting in strong advance bookings for rooms at Pursuit’s iconic locations, with room reservations pacing ahead of 2019 at the Glacier Park and Alaska Collections. Although Banff bookings remain constrained by the Canadian border closure, we firmly believe this iconic location will benefit from pent-up perennial demand once Canada re-opens its borders for international tourism. At GES, the recovery is also starting to unfold. Face-to-face events are taking place in some locations and Las Vegas recently approved large scale events beginning in June. Our clients remain eager to return to in-person events and our level of event bookings for the back half of 2021 is encouraging.”
First Quarter 2021 Results
First quarter revenue was
* 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, we maximized revenue and carefully managed costs during this seasonally slow quarter by focusing on strong demand from in-country leisure travelers and quickly adapting to varying regulatory restrictions due to the pandemic. The team did a great job taking care of our guests and optimizing utilization and rate across our experiences.”
Moster continued, “The first quarter is always a time when Pursuit readies itself for the peak summer tourism season and this year is no exception. In addition to preparing for the annual opening of our seasonal properties, we also recently opened our new Sky Lagoon geo-thermal spa attraction in Iceland on April 30. In early June, we will open the new Golden Skybridge attraction, which we acquired in March. And our new FlyOver Las Vegas attraction remains on schedule to open during the third quarter with a prime location on the Las Vegas Strip.”
Regarding GES, Moster commented, “GES continued to support clients primarily through virtual events and planning for future events during the first quarter. Our team has done a great job maintaining our strong customer relationships and bolstering our corporate client roster, all while maintaining our lower cost structure. We have used this temporary pause in our industry to drive important structural changes in our business that have freed up capital, reduced our fixed costs, and positioned GES to flex up when revenue returns with a more variable cost structure and improved margins.”
Liquidity and Capital Deployment
As of March 31, 2021, our total available liquidity was approximately
During the 2021 first quarter, our total available liquidity decreased by approximately
As of March 31, 2021, our debt totaled approximately
Moster concluded, “The actions we have taken to solidify our liquidity position put us on solid financial footing with the ability to selectively invest in high-return growth projects at Pursuit like FlyOver Las Vegas and the Golden Skybridge. In this year of recovery, we remain committed to carefully managing our cash flows and being strong stewards of our capital to maximize shareholder value. I am confident that the strength, drive, creativity, and flexibility of our team will enable us to succeed this year and into the future.”
Conference Call Details
Viad will host a conference call on Tuesday, May 4, 2021, at 5:00 p.m. Eastern Time to review 2021 first quarter results. 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/8545658. 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 (404) 537-3406 and entering the conference ID 8545658.
About Viad
Viad (NYSE: VVI) is a leading provider of experiential leisure travel and live events and marketing experiences that generates revenue and shareholder value through two businesses: Pursuit and GES. Pursuit is a collection of inspiring and unforgettable travel experiences in Alaska, Montana, the Canadian Rockies, Vancouver, and Reykjavik, as well as new experiences in development in Las Vegas and Toronto. Pursuit’s collection includes attractions, lodges and hotels, and sightseeing tours that connect guests with iconic places. GES is a global, full-service live events company offering a comprehensive range of services to the world's leading brands and event organizers. Our business strategy focuses on providing superior experiential services to our customers and sustainable returns on invested capital to our shareholders. Viad is an S&P SmallCap 600 company. For more information, visit www.viad.com.
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,” “target,” “outlook,” and similar expressions are intended to identify our forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts and are subject to a host of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those in the forward-looking statements.
Important factors that could cause actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the following:
- the impact of the COVID-19 pandemic on our financial condition, liquidity, and cash flow;
- our ability to anticipate and adjust for the impact of the COVID-19 pandemic on our businesses;
- general economic uncertainty in key global markets and a worsening of global economic conditions;
- travel industry disruptions;
- our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;
- our dependence on large exhibition event clients;
- the importance of key members of our account teams to our business relationships;
- the competitive nature of the industries in which we operate;
- unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals for such projects;
- seasonality of our businesses;
- transportation disruptions and increases in transportation costs;
- natural disasters, weather conditions, and other catastrophic events;
- our multi-employer pension plan funding obligations;
- our exposure to labor cost increases and work stoppages related to unionized employees;
- liabilities relating to prior and discontinued operations;
- adverse effects of show rotation on our periodic results and operating margins;
- our exposure to currency exchange rate fluctuations;
- our exposure to cybersecurity attacks and threats;
- compliance with laws governing the storage, collection, handling, and transfer of personal data and our exposure to legal claims and fines for data breaches or improper handling of such data; and
- changes affecting the London Inter-bank Offered Rate and the Canadian Dollar Offered Rate.
For a more complete discussion of the risks and uncertainties that may affect our business or financial results, please see Item 1A, “Risk Factors,” of our most recent annual report on Form 10-K filed with the SEC. 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 March 31, | |||||||||||||||||
| ($ in thousands, except per share data) |
|
2021 |
|
|
2020 |
|
$ Change |
% Change |
|||||||||
| Revenue: |
|
||||||||||||||||
| GES (Note A) | $ |
19,145 |
|
$ |
281,135 |
|
$ |
(261,990 |
) |
-93.2 |
% |
||||||
| Pursuit |
|
9,790 |
|
|
13,523 |
|
|
(3,733 |
) |
|
-27.6 |
% |
|||||
| Total revenue | $ |
28,935 |
|
$ |
294,658 |
|
$ |
(265,723 |
) |
|
-90.2 |
% |
|||||
|
|||||||||||||||||
| Segment operating income (loss): |
|
||||||||||||||||
| GES | $ |
(19,904 |
) |
$ |
10,858 |
|
$ |
(30,762 |
) |
** |
|||||||
| Pursuit |
|
(18,321 |
) |
|
(20,274 |
) |
|
1,953 |
|
|
9.6 |
% |
|||||
| Segment operating loss |
|
(38,225 |
) |
|
(9,416 |
) |
|
(28,809 |
) |
** |
|||||||
| Corporate eliminations |
|
17 |
|
|
16 |
|
|
1 |
|
|
6.3 |
% |
|||||
| Corporate activities (Note B) |
|
(2,005 |
) |
|
(789 |
) |
|
(1,216 |
) |
** |
|||||||
| Restructuring charges (Note C) |
|
(2,826 |
) |
|
(851 |
) |
|
(1,975 |
) |
** |
|||||||
| Impairment charges (Note D) |
|
- |
|
|
(88,380 |
) |
|
88,380 |
|
|
-100.0 |
% |
|||||
| Other expense |
|
(360 |
) |
|
(419 |
) |
|
59 |
|
|
14.1 |
% |
|||||
| Net interest expense (Note E) |
|
(5,085 |
) |
|
(3,939 |
) |
|
(1,146 |
) |
|
-29.1 |
% |
|||||
| Loss from continuing operations before income taxes |
|
(48,484 |
) |
|
(103,778 |
) |
|
55,294 |
|
|
53.3 |
% |
|||||
| Income tax benefit (Note F) |
|
3,045 |
|
|
15,797 |
|
|
(12,752 |
) |
|
-80.7 |
% |
|||||
| Loss from continuing operations |
|
(45,439 |
) |
|
(87,981 |
) |
|
42,542 |
|
|
48.4 |
% |
|||||
| Income (loss) from discontinued operations (Note G) |
|
348 |
|
|
(454 |
) |
|
802 |
|
** |
|||||||
| Net loss |
|
(45,091 |
) |
|
(88,435 |
) |
|
43,344 |
|
|
49.0 |
% |
|||||
| Net loss attributable to noncontrolling interest |
|
1,445 |
|
|
1,333 |
|
|
112 |
|
|
8.4 |
% |
|||||
| Net loss attributable to redeemable noncontrolling interest |
|
494 |
|
|
517 |
|
|
(23 |
) |
|
-4.4 |
% |
|||||
| Net loss attributable to Viad | $ |
(43,152 |
) |
$ |
(86,585 |
) |
$ |
43,433 |
|
|
50.2 |
% |
|||||
|
|||||||||||||||||
| Amounts Attributable to Viad Common Stockholders: |
|
||||||||||||||||
| Loss from continuing operations | $ |
(43,500 |
) |
$ |
(86,131 |
) |
$ |
42,631 |
|
|
49.5 |
% |
|||||
| Income (loss) from discontinued operations (Note G) |
|
348 |
|
|
(454 |
) |
|
802 |
|
** |
|||||||
| Net loss | $ |
(43,152 |
) |
$ |
(86,585 |
) |
$ |
43,433 |
|
|
50.2 |
% |
|||||
|
|||||||||||||||||
| Diluted loss per common share: |
|
||||||||||||||||
| Loss from continuing operations attributable to Viad common shareholders | $ |
(2.23 |
) |
$ |
(4.27 |
) |
$ |
2.04 |
|
|
47.8 |
% |
|||||
| Income (loss) from discontinued operations attributable to Viad common shareholders |
|
0.02 |
|
|
(0.02 |
) |
|
0.04 |
|
** |
|||||||
| Net loss attributable to Viad common shareholders | $ |
(2.21 |
) |
$ |
(4.29 |
) |
$ |
2.08 |
|
|
48.5 |
% |
|||||
|
|||||||||||||||||
| Basic loss per common share: |
|
||||||||||||||||
| Loss from continuing operations attributable to Viad common shareholders | $ |
(2.23 |
) |
$ |
(4.27 |
) |
$ |
2.04 |
|
|
47.8 |
% |
|||||
| Income (loss) from discontinued operations attributable to Viad common shareholders |
|
0.02 |
|
|
(0.02 |
) |
|
0.04 |
|
** |
|||||||
| Net loss attributable to Viad common shareholders | $ |
(2.21 |
) |
$ |
(4.29 |
) |
$ |
2.08 |
|
|
48.5 |
% |
|||||
|
|||||||||||||||||
| Common shares treated as outstanding for loss per share calculations: |
|
||||||||||||||||
| Weighted-average outstanding common shares |
|
20,370 |
|
|
20,215 |
|
|
155 |
|
|
0.8 |
% |
|||||
|
|||||||||||||||||
| Weighted-average outstanding and potentially dilutive common shares |
|
20,370 |
|
|
20,215 |
|
|
155 |
|
|
0.8 |
% |
|||||
| ** 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 March 31, 2021 was primarily due lower performance-based compensation expense in 2020 as we reduced our estimated performance achievement to zero as a result of the COVID-19 pandemic, offset in part by lower headcount in 2021. | ||||||||||||||||
|
|||||||||||||||||
(C) |
Restructuring Charges — Restructuring charges during the three months ended March 31, 2021 were primarily related to facility closures at GES. In response to the COVID-19 pandemic in 2020, we accelerated our transformation and streamlining efforts at GES to significantly reduce costs and create a lower and more flexible cost structure focused on servicing our more profitable market segments. Restructuring charges during the three months ended March 31, 2020 were primarily related to the elimination of certain positions at GES and our corporate office in response to the COVID-19 pandemic. | ||||||||||||||||
|
|||||||||||||||||
(D) |
Impairment Charges — Due to the deteriorating macroeconomic environment related to the COVID-19 pandemic, resulting in disruptions to our operations and the decline in our stock price, we recorded non-cash goodwill impairment charges of |
||||||||||||||||
|
|||||||||||||||||
(E) |
Net Interest Expense — The increase in interest expense during the three months ended March 31, 2021 was primarily due to higher debt balances in 2021. | ||||||||||||||||
|
|||||||||||||||||
(F) |
Income Tax Benefit — The effective tax rate was |
||||||||||||||||
|
|||||||||||||||||
(G) |
Income (Loss) from Discontinued Operations — Income from discontinued operations during the three months ended March 31, 2021 was primarily due to an insurance recovery related to a previously sold operation, offset in part by legal expenses. Loss from discontinued operations during the three months ended March 31, 2020 was primarily due to legal expenses related to previously sold operations. | ||||||||||||||||
| Three months ended March 31, | |||||||||||||||||
| ($ in thousands, except per share data) |
|
2021 |
|
|
2020 |
|
$ Change |
% Change |
|||||||||
| Net loss attributable to Viad | $ |
(43,152 |
) |
$ |
(86,585 |
) |
$ |
43,433 |
|
|
50.2 |
% |
|||||
| Less: Allocation to nonvested shares |
|
- |
|
|
- |
|
|
- |
|
** |
|||||||
| Convertible preferred stock dividends paid in kind1 |
|
(1,898 |
) |
|
- |
|
|
(1,898 |
) |
** |
|||||||
| Adjustment to the redemption value of redeemable noncontrolling interest |
|
(56 |
) |
|
(126 |
) |
|
70 |
|
|
55.6 |
% |
|||||
| Net loss allocated to Viad common shareholders | $ |
(45,106 |
) |
$ |
(86,711 |
) |
$ |
41,605 |
|
|
48.0 |
% |
|||||
|
|||||||||||||||||
| Weighted-average outstanding common shares1 |
|
20,370 |
|
|
20,215 |
|
|
155 |
|
|
0.8 |
% |
|||||
FAQ
What were Viad Corp's revenue figures for Q1 2021?
What is the net loss for Viad Corp in the first quarter of 2021?
How has Viad Corp's liquidity changed in Q1 2021?
What factors impacted Viad Corp's revenue in Q1 2021?
What are the expectations for Viad Corp's recovery in 2021?
