Viad Corp (NYSE:VVI) Q4 2023 Earnings Conference Call February 8, 2024 5:00 PM ET Company Participants Carrie Long - IR Steve Moster - President and CEO and President-GES Ellen Ingersoll - CFO David Barry - President of Pursuit Conference Call Participants Bryan Maher - B. Riley Kartik Mehta - Northcoast Research Tyler Batory - Oppenheimer Alex Fuhrman - Craig-Hallum Operator Good afternoon. My name is Lydia, and I'll be your conference operator today. At this time, I'd like to welcome everyone to Viad Corp ...

Financial Performance and Key Metrics - Net income attributable to Viad was $41.3 million for Q3 2023, an increase of approximately $3.2 million from Q3 2022 [9] - Consolidated adjusted EBITDA was $86.3 million, up approximately $4.3 million year-over-year, primarily due to strong growth and margin performance at Pursuit [9][10] - Consolidated revenue reached $365.9 million, approximately $11 million above the midpoint of guidance, with a year-over-year revenue decline anticipated due to timing of major non-annual shows and the sale of a noncore business [9][10] Business Line Performance - Pursuit's Q3 revenue grew 14% to $186.9 million, driven by increased international tourists and investments in experiences [10][11] - GES delivered consolidated revenue of $179 million with adjusted EBITDA of negative $2 million, both at the high end of guidance ranges [11][12] - Pursuit's adjusted EBITDA increased to $91.8 million, with a margin improvement of 330 basis points to 49.1% [11][12] Market Data and Key Metrics - Pursuit's attractions ticket revenue grew 18% year-over-year, with a 15% increase in visitors [10] - GES Exhibitions posted revenue growth of about 19% over the prior year, with same-show revenue growth of 14% from U.S. exhibitions [12] - GES's full year underlying revenue growth is expected to be about 15%, excluding impacts from major non-annual shows and the sale of ON Services [31] Company Strategy and Industry Competition - The company is focused on a "Refresh-Build-Buy" growth strategy, aiming to triple Pursuit's adjusted EBITDA by the end of 2024 [24] - GES is positioned for continued growth with favorable trends in live events and experiential marketing, targeting an adjusted EBITDA margin of greater than 8% by 2024 [33][34] - The company remains committed to creating extraordinary experiences and strong returns for shareholders [35] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook for 2023 and 2024, driven by strong demand for leisure travel and live events [6][7] - The company anticipates continued visitation growth, particularly in Western Canada, supported by improved international travel [39][40] - Management highlighted the importance of maintaining a lean cost structure and improving efficiency to enhance profitability [33][34] Other Important Information - The company ended Q3 with total liquidity of $201.3 million, reflecting strong cash flows from operations [14] - A $70 million prepayment of the term loan B was made, providing a lower cost of debt and increased flexibility [15] - The company expects operating cash outflows in Q4 to be approximately $37 million to $27 million, with capital expenditures of about $20 million to $25 million [15] Q&A Session Summary Question: Development timeline and cost for Golden SkyBridge - Management is in the master planning phase for potential expansions and will provide updates as developments occur [37] Question: Impact of weather on visitation in Western Canada - Management noted that strong visitation continued through the fall, aided by favorable weather conditions [38] Question: Expected growth in visitation for 2024 - Management is optimistic about continued growth in visitation, particularly with improved international travel [39][40] Question: Future margin growth for GES - Management indicated that there is significant room for margin improvement beyond the 8% target for 2024, driven by efficiency initiatives and increased event sizes [41] Question: Recovery of square footage in GES - Management expects meaningful progress in closing the gap on square footage compared to 2019 levels over the next few years [43] Question: Performance of Spiro business - Management anticipates significant growth in Spiro as investments made in 2023 begin to pay off [44] Question: Performance of new attractions in Pursuit - Management confirmed that new attractions are performing well, with ample room for continued growth in visitation and pricing [46] Question: RevPAR growth and demand for high-end experiences - Management is confident in the continued demand for high-end experiences and expects RevPAR growth to persist [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to Commission file number: 001-11015 Viad Corp (Exact name of registrant as specified in its charter) | Delaware | | --- | (State or other jurisdiction ...

Viad Corp (NYSE:VVI) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Carrie Long - Investor Relations Steve Moster - President & Chief Executive Officer & President-GES Ellen Ingersoll - Chief financial Officer David Barry - President of Pursuit Conference Call Participants Tyler Batory - Oppenheimer Kartik Mehta - Northcoast Research Bryan Maher - B. Riley Securities Alex Fuhrman - Craig-Hallum Capital Group Operator Good afternoon. My name is Aisha, and I will be your conf ...

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Viad Corp's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with detailed accounting notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets increased to $1.15 billion and total liabilities rose to $915.5 million, with a slight increase in stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,152,767** | **$1,090,346** | | Total current assets | $269,192 | $239,555 | | Property and equipment, net | $567,117 | $549,578 | | Goodwill | $123,899 | $121,429 | | **Total Liabilities** | **$915,473** | **$855,959** | | Total current liabilities | $257,086 | $211,117 | | Long-term debt and finance obligations | $459,482 | $456,752 | | **Total Stockholders' Equity** | **$99,976** | **$96,840** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Viad reported Q2 2023 revenue of $320.3 million with net income decreasing to $11.0 million, while six-month revenue grew to $581.1 million with a slight widening of net loss Key Operating Results (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $320,311 | $319,203 | $581,102 | $496,563 | | Income (loss) from continuing operations | $11,721 | $20,110 | $(9,611) | $(10,508) | | Net income (loss) attributable to Viad | $10,961 | $19,839 | $(9,908) | $(9,162) | | Diluted EPS attributable to Viad | $0.33 | $0.64 | $(0.66) | $(0.67) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $38.8 million for the six months ended June 30, 2023, with significant cash used in investing and financing activities Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $38,800 | $44,018 | | Net cash used in investing activities | $(32,152) | $(56,972) | | Net cash (used in) provided by financing activities | $(11,108) | $10,515 | | Net change in cash, cash equivalents, and restricted cash | $(3,504) | $(4,363) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover Viad's accounting policies, segment operations including Pursuit, Spiro, and GES Exhibitions, and financial details on revenue, acquisitions, and debt - Viad Corp operates through three reportable segments: **Pursuit** (travel experiences), **Spiro** (experiential marketing), and **GES Exhibitions** (exhibition services)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) Disaggregated Revenue by Segment - Six Months Ended June 30 (in thousands) | Segment | 2023 Revenue | 2022 Revenue | | :--- | :--- | :--- | | Pursuit | $121,137 | $101,383 | | Spiro | $140,730 | $132,241 | | GES Exhibitions | $324,031 | $266,431 | - On April 6, 2022, the company acquired Glacier Raft Company for a purchase price of **$26.5 million in cash**[66](index=66&type=chunk) - On December 15, 2022, the company sold its ON Services audio-visual business for approximately **$30.0 million**, recognizing a gain of **$19.6 million**[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting Q2 2023 revenue growth with declining net income, while first-half revenue increased 17.0% driven by GES and Pursuit, supported by sufficient liquidity - For the six months ended June 30, 2023, total revenue increased **17.0% to $581.1 million**, while segment operating income more than doubled to **$27.9 million** from **$13.9 million** in the prior year period[151](index=151&type=chunk)[154](index=154&type=chunk) - The company plans capital expenditures of approximately **$75 million to $85 million** for the next 12 months, including about **$35 million** for growth projects like FlyOver Chicago[178](index=178&type=chunk) - Total available liquidity as of June 30, 2023, was **$148.2 million**, consisting of **$53.2 million in cash** and **$95.0 million** available on the Revolving Credit Facility[174](index=174&type=chunk) [Results of Operations by Segment](index=38&type=section&id=Results%20of%20Operations%20by%20Segment) Q2 2023 saw Pursuit revenue grow 14.0% to $88.5 million with operating income up 76.1%, while GES revenue decreased 4.0% to $231.8 million with operating income down 24.1% Pursuit Segment Performance - Q2 2023 vs Q2 2022 | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $88,474 | $77,599 | 14.0% | | Segment Operating Income | $9,811 | $5,571 | 76.1% | - Pursuit's Q2 2023 revenue growth was driven by stronger international visitation in Western Canada and Iceland, with visitor numbers at Golden Skybridge, Sky Lagoon, and Banff Gondola increasing **62%**, **22%**, and **17%** respectively[156](index=156&type=chunk) GES Segment Performance - Q2 2023 vs Q2 2022 | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $231,837 | $241,604 | (4.0)% | | Segment Operating Income | $23,633 | $31,120 | (24.1)% | - GES Exhibitions' Q2 revenue was impacted by the sale of ON Services (which contributed **$6.4 million** in Q2 2022) and negative show rotation, offset by same-show revenue growth of approximately **18.9%**[166](index=166&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity, with $53.2 million cash and $95.0 million available on its credit facility, to fund operations and planned capital expenditures of $75-$85 million - The company's primary source of liquidity is cash from operations, which provided **$38.8 million** in the first six months of 2023[174](index=174&type=chunk)[181](index=181&type=chunk) - On January 4, 2023, the company entered into an interest rate cap agreement to manage interest rate exposure on **$300 million** of its Term Loan B borrowings[176](index=176&type=chunk) - The company's share repurchase program remains suspended as of June 30, 2023[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Viad faces market risks from foreign exchange rate fluctuations and interest rate changes, with variable-rate debt partially hedged by an interest rate cap agreement - The company's primary market risks are foreign exchange rate fluctuations and interest rate changes[192](index=192&type=chunk) - As of June 30, 2023, the company had cumulative unrealized foreign currency translation losses of **$35.0 million** recorded in stockholders' equity[194](index=194&type=chunk) - To mitigate interest rate risk, the company entered into an interest rate cap agreement effective January 31, 2023, to hedge cash flows on **$300 million** of its Term Loan B[197](index=197&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with a previously reported material weakness now remediated - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2023[198](index=198&type=chunk) - A material weakness identified as of December 31, 2022, related to accounting for a finance lease at the Sky Lagoon attraction in Iceland, has been remediated as of June 30, 2023[199](index=199&type=chunk)[200](index=200&type=chunk) [PART II - OTHER INFORMATION](index=46&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including claims related to a 2020 Ice Explorer accident, with no material financial impact expected - The company refers to Note 22 for details on legal proceedings, which discusses the ongoing management of claims related to the July 2020 Ice Explorer accident[203](index=203&type=chunk)[129](index=129&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the company's 2022 Annual Report on Form 10-K - The company states there are no material changes from the risk factors disclosed in its 2022 Form 10-K[204](index=204&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's share repurchase program remained suspended in Q2 2023, with only 257 shares acquired for tax withholding on vested awards - The company's share repurchase program remained suspended during the second quarter of 2023[207](index=207&type=chunk) - A total of **257 shares** were repurchased during Q2 2023, solely to cover tax withholding on vested share-based awards[207](index=207&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during Q2 2023 - No directors or officers adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2023[208](index=208&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL data files - Exhibits filed include CEO/CFO certifications (**31.1**, **31.2**, **32.1**) and XBRL data files[210](index=210&type=chunk) [Signatures](index=48&type=section&id=SIGNATURES) The Form 10-Q was signed on August 4, 2023, by Leslie S. Striedel, Chief Accounting Officer - The Form 10-Q was signed on August 4, 2023, by Leslie S. Striedel, Chief Accounting Officer[214](index=214&type=chunk)

SECOND QUARTER 2023 EARNINGS CALL AUGUST 3, 2023 | --- | --- | --- | --- | --- | --- | --- | |-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|------------------------------------------------------------------------------------------------------------------------------- ...

Viad Corp (NYSE:VVI) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Carrie Long - Investor Relations Steve Moster - President and Chief Executive Officer and President-GES David Barry - President of Pursuit Ellen Ingersoll - Chief financial Officer Conference Call Participants Kartik Mehta - Northcoast Research Bryan Maher - B. Riley Securities Tyler Batory - Oppenheimer Barry Haimes - Sage Asset Management Operator Good afternoon. My name is Abbie, and I will be your conferenc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to Commission file number: 001-11015 Viad Corp (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...

Financial Performance - Total revenue for 2022 was $1,127,311,000, a 122.1% increase from $507,340,000 in 2021[130]. - Net income attributable to Viad improved to $23,220,000 in 2022 from a net loss of $92,655,000 in 2021, marking a $115,875,000 improvement[130]. - Segment operating income for 2022 was $68,944,000, compared to a loss of $47,002,000 in 2021, reflecting a $115,946,000 increase[130]. - GES total revenue for 2022 was $827,984,000, a 158.5% increase from $320,292,000 in 2021[152]. - Segment operating income for GES improved to $44,913,000 in 2022, compared to an operating loss of $51,611,000 in 2021[152]. Visitor Statistics - Total visitors to Pursuit attractions reached 2,931,266 in 2022, a 92.4% increase from 1,523,173 in 2021[143]. - The increase in same-store visitors in 2022 was primarily driven by new attractions such as Sky Lagoon and FlyOver Las Vegas, contributing approximately 87% of the total increase[146]. - The number of visitors increased to 1,523,173 in 2021, a 75.2% increase compared to 2020[145]. Revenue Breakdown - Pursuit revenue increased by $112.3 million in 2022, driven by a nearly 90% increase in visitation at Canadian attractions[136]. - New experiences contributed $43.2 million in revenue during 2022, compared to $15.6 million in 2021[136]. - Hospitality revenue for 2022 was $130,303,000, up 31.8% from $98,878,000 in 2021[143]. - Ticket revenue reached $61,166,000 in 2021, up from $20,897,000 in 2020, reflecting significant growth[145]. Operational Metrics - RevPAR (Revenue per Available Room) for hospitality was $134.37 in 2022, a 32.3% increase from $99.57 in 2021[143]. - Revenue per attraction visitor rose to $51.12 in 2021, a 23.3% increase from $43.57 in 2020[145]. - RevPAR improved to $101.59 in 2021, a 49.3% increase compared to $70.89 in 2020[145]. - Average Daily Rate (ADR) increased to $187.99 in 2021, reflecting a 35.5% rise from $138.72 in 2020[145]. Expenses and Charges - Corporate activities expense increased to $13,418,000 in 2022, a 14.8% rise from $11,689,000 in 2021[158]. - Interest expense rose to $34,891,000 in 2022, a 23.2% increase from $28,324,000 in 2021 due to higher interest rates[161]. - Restructuring charges in 2022 amounted to $3.1 million, a decrease from $6.1 million in 2021 and $13.4 million in 2020, primarily related to facility closures and severance at GES[162]. - Impairment charges in 2022 were $0.6 million, significantly lower than the non-cash goodwill impairment of $185.8 million recorded in 2020 due to the COVID-19 pandemic[163]. Tax and Liquidity - The effective income tax rate for 2022 was 28.8%, up from 1.9% in 2021, primarily due to a higher mix of income earned in foreign jurisdictions[164]. - As of December 31, 2022, total available liquidity was $146.4 million, slightly down from $149.0 million in 2021, with unrestricted cash and cash equivalents at $59.7 million[166]. Cash Flow and Investments - Net cash provided by operating activities in 2022 was $73.4 million, a significant improvement of $111.3 million compared to a net cash used of $37.9 million in 2021[172][173]. - Net cash used in investing activities in 2022 was $63.3 million, an increase of $11.5 million from 2021, primarily due to the acquisition of Glacier Raft Company[176]. - Net cash used in financing activities in 2022 was $6.1 million, a decrease of $114.0 million compared to net cash provided of $107.9 million in 2021[178][179]. Future Plans and Capital Expenditures - Planned capital expenditures for 2023 are estimated to be between $75 million and $85 million, including approximately $40 million for growth projects[169]. - The company plans to continue expanding its offerings and enhancing customer experiences through new attractions and services[130]. Shareholder Information - As of December 31, 2022, 546,283 shares remained available for repurchase under the Board of Directors' authorization for share repurchases[183]. - Goodwill balance increased from $112.1 million as of December 31, 2021, to $121.4 million as of December 31, 2022, related to the Pursuit business[190]. Financial Risks and Hedging - A hypothetical 10% change in the Canadian dollar exchange rate would result in a change to 2022 operating income of approximately $3.2 million[211]. - A hypothetical 10% change in interest rates would result in a change to 2022 interest expense of approximately $4 million[213]. - An interest rate cap agreement was entered into on January 4, 2023, to hedge cash flows on $300 million of Term Loan B[214].

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2022 was $248 million, up 35% or $64.5 million year-over-year, driven by 46% growth at Pursuit and 34% growth at GES [11][19] - Net loss attributable to Viad was $5.7 million compared to a loss of $22.5 million in Q4 2021 [11] - Consolidated adjusted EBITDA improved to negative $2 million, an improvement of $1.8 million year-over-year [12] - Full year revenue more than doubled versus 2021, with consolidated adjusted EBITDA reaching $116.1 million, up from $1.3 million in 2021 [19] Business Line Data and Key Metrics Changes - Pursuit achieved record revenue in 2022, with a 60% increase year-over-year, reaching nearly $300 million [19] - GES delivered total revenue of $213.9 million in Q4, with adjusted EBITDA of $12.7 million, an increase of $3.1 million year-over-year [12][17] - Pursuit's Q4 revenue was $34.1 million, with same-store revenue growth of 32% [14] - GES exhibitions revenue grew 32.7% in Q4, reflecting strong recovery in live events [17] Market Data and Key Metrics Changes - Pursuit's attractions visits reached 85% of 2019 levels, with ticket revenue growing approximately 36% versus 2019 [29] - The company anticipates a gradual return of international visitors, particularly from Asia-Pacific markets, in 2023 [37] - Demand for Pursuit's Canadian experiences is strong, with early season bookings pacing ahead of 2022 [36] Company Strategy and Development Direction - The company is focused on scaling Pursuit and improving GES profitability through strategic initiatives like Refresh, Build, Buy [6][19] - Pursuit's strategy includes enhancing existing experiences and expanding new attractions, contributing significantly to revenue growth [27] - GES aims to maximize profitability and cash flows while navigating the recovery of the live event industry [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2023, driven by fewer border restrictions and the recovery of international travel [8][36] - The company expects to see meaningful margin expansion in 2023, particularly in Pursuit, as pandemic-related cost pressures ease [40][59] - Management noted that they do not see signs of economic weakness affecting their business at this time [80][82] Other Important Information - An accounting error related to a finance lease obligation was identified, leading to an understatement of lease liability by $5 million [9] - The company ended Q4 with total liquidity of approximately $146 million, including $60 million in cash [22] Q&A Session Summary Question: Outlook for 2023 from early reservations - Management noted positive demand trends, with web traffic up 20% year-over-year and strong pacing in Alaska and Montana [69] Question: Show rotation and its impact - Management clarified that the show rotation is normal and expected based on non-annual events returning to the calendar [70] Question: Staffing levels and wage inflation - Management indicated they are close to fully staffing levels needed for current revenue and are seeing improvements in hiring metrics [71][72] Question: Details on show rotation and major exhibitions - Management provided insights on specific shows rotating in and out, including IMTS and MINExpo, and their expected impacts on revenue [75][76] Question: New attractions for 2023 - Management confirmed no new attractions are expected for 2023, but they anticipate higher performance due to increased international visitation [77] Question: Impact of macroeconomic factors - Management reported no signs of weakness in consumer spending or travel demand, with strong visitation trends continuing [80][82]