Viad(VVI) - 2023 Q3 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements Viad Corp's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, are presented with detailed notes - Financial statements are unaudited and prepared in accordance with GAAP and SEC Form 10-Q instructions for interim financial information[30] Condensed Consolidated Balance Sheets The balance sheets present the company's financial position, showing increased total assets and liabilities as of September 30, 2023 | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | Change (in thousands) | | :----------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Total Assets | $1,200,544 | $1,090,346 | +$110,198 | | Total Liabilities | $921,703 | $855,959 | +$65,744 | | Total Stockholders' Equity | $141,442 | $96,840 | +$44,602 | | Cash and cash equivalents | $106,268 | $59,719 | +$46,549 | | Current contract costs | $34,120 | $14,331 | +$19,789 | | Contract liabilities | $82,398 | $43,950 | +$38,448 | Condensed Consolidated Statements of Operations The statements of operations detail the company's revenues, costs, and net income, showing increased net income attributable to Viad for both three and nine-month periods | Metric (in thousands) | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Revenue | $365,899 | $382,721 | $947,001 | $879,284 | | Total Costs & Expenses| $306,946 | $332,052 | $893,209 | $838,346 | | Net Income | $49,126 | $41,817 | $39,314 | $31,636 | | Net Income Attributable to Viad | $41,271 | $38,121 | $31,363 | $28,959 | | Diluted EPS (Viad common stockholders) | $1.41 | $1.29 | $0.92 | $0.79 | Condensed Consolidated Statements of Comprehensive Income (Loss) This statement presents net income and other comprehensive income (loss) components, showing a significant increase in comprehensive income attributable to Viad for both periods in 2023 | Metric (in thousands) | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Income | $49,126 | $41,817 | $39,314 | $31,636 | | Unrealized foreign currency translation adjustments | $(7,840) | $(26,846) | $110 | $(34,977) | | Comprehensive income (loss) attributable to Viad | $31,873 | $6,730 | $32,180 | $(11,374) | Condensed Consolidated Statements of Stockholders' Equity and Mezzanine Equity This statement details changes in stockholders' and mezzanine equity, including net income, preferred stock dividends, and share-based compensation - Net income attributable to Viad for the nine months ended September 30, 2023, was $31,363 thousand, contributing to the increase in stockholders' equity[21] | Metric (in thousands) | Balance, Dec 31, 2022 | Balance, Sep 30, 2023 | | :-------------------- | :-------------------- | :-------------------- | | Total Viad Stockholders' Equity | $14,530 | $51,750 | | Convertible Series A Preferred Stock | $132,591 | $132,591 | | Redeemable noncontrolling interest | $4,956 | $4,808 | | Non-redeemable noncontrolling interest | $82,310 | $89,692 | Condensed Consolidated Statements of Cash Flows The cash flow statements present cash generated from or used in operating, investing, and financing activities, showing increased operating cash flow and a shift in financing activities | Metric (in thousands) | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $116,554 | $105,485 | | Net cash used in investing activities | $(53,504) | $(80,027) | | Net cash (used in) provided by financing activities | $(12,901) | $428 | | Net change in cash, cash equivalents, and restricted cash | $49,801 | $19,897 | | Cash, cash equivalents, and restricted cash, end of period | $114,365 | $84,200 | Notes to Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering accounting policies, segment information, debt, equity, and other significant financial items Note 1. Overview and Basis of Presentation This note outlines the basis of presentation for the unaudited condensed consolidated financial statements and describes Viad Corp's business segments and accounting policies - Viad Corp operates through three reportable segments: Pursuit (hospitality and leisure), Spiro (experiential marketing), and GES Exhibitions (global exhibition services)[32][33][34] - The adoption of ASU 2021-08 (Business Combinations) and ASU 2022-04 (Supplier Finance Programs) did not have a material impact on the consolidated financial statements, with the latter's rollforward requirement effective in Q1 2024[36] | Cash Component (in thousands) | Sep 30, 2023 | Dec 31, 2022 | | :---------------------------- | :----------- | :----------- | | Cash and cash equivalents | $106,268 | $59,719 | | Restricted cash | $8,097 | $4,845 | | Total | $114,365 | $64,564 | Note 2. Revenue and Related Contract Costs and Contract Liabilities This note details the company's revenue recognition policies, accounting for contract liabilities and costs, and provides disaggregated revenue data by segment - Pursuit recognizes service revenue over time and product revenue at a point in time, while GES generally recognizes service revenue over the duration of live events and product revenue upon delivery[41][42] | Contract Liabilities (in thousands) | Amount | | :---------------------------------- | :--------- | | Balance at Dec 31, 2022 | $44,757 | | Cash additions | $185,615 | | Revenue recognized | $(147,819) | | Balance at Sep 30, 2023 | $82,544 | | Contract Costs (in thousands) | Amount | | :---------------------------- | :--------- | | Balance at Dec 31, 2022 | $16,568 | | Additions | $57,186 | | Expenses | $(37,920) | | Balance at Sep 30, 2023 | $35,793 | | Pursuit Revenue (in thousands) | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :----------------------------- | :-------------------------- | :--------------------------