Viad(US:VVI)2025-11-05 21:12Revenue Performance - Revenue for Q3 2025 was $241.0 million, an increase of $58.8 million (32.2%) compared to Q3 2024, driven by strong recovery in Jasper properties and new experiences[3] - Total revenue for the three months ended September 30, 2025, was $241,022,000, representing a 32.2% increase from $182,257,000 in the same period of 2024[28] - Revenue growth excluding Jasper properties and new experiences was $17.7 million (12%), driven by yield optimization and increased visitation[9] - Revenue from ticket, rooms, transportation, and other services increased by 34.0% to $178,140,000, while food and beverage and retail products revenue rose by 27.6% to $62,882,000[28] Net Income and Earnings - Net income attributable to Pursuit for Q3 2025 was $73.9 million, up from $48.6 million in the prior year, reflecting a 51.9% increase[3] - Net income for the three months ended September 30, 2025, was $85,101,000, a 52.3% increase compared to $55,864,000 in the prior year[28] - Net income attributable to Pursuit for the three months ended September 30, 2025, was $73,853,000, representing a $25,238,000 increase or 51.9% compared to $48,615,000 in 2024[37] - Adjusted net income for the three months ended September 30, 2025, was $75,316,000, an increase of $24,616,000 or 48.6% from $50,700,000 in 2024[42] - Basic income per common share for the three months ended September 30, 2025, was $2.61, a 55.4% increase from $1.68 in the prior year[28] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $117.4 million, representing a year-over-year increase of $34.4 million (41.5%)[3] - Adjusted EBITDA for the three months ended September 30, 2025, was $117,355,000, reflecting a 41.5% increase from $82,931,000 in the same period of 2024[48] - Full year 2025 adjusted EBITDA guidance raised to a range of $116 million to $122 million, an increase of $6 million at the midpoint compared to previous guidance[14] - Adjusted EBITDA margin improved to 48.7% for Q3 2025, up from 45.5% in Q3 2024, indicating enhanced operational efficiency[48] Financial Health and Liquidity - Pursuit's total liquidity was $274.4 million as of September 30, 2025, including $33.8 million in cash and $240.6 million available on its revolving credit facility[9] - The net leverage ratio was 0.7x at the end of Q3 2025, significantly below the target range of 2.5x to 3.5x, indicating strong financial health[9] Expenses and Costs - Operating expenses for the three months ended September 30, 2025, increased by 26.3% to $86,592,000, primarily due to higher variable costs associated with increased transaction volumes[30] - Selling, general, and administrative expenses rose by 20.0% to $17,445,000, driven by transaction-related costs and higher variable compensation accruals[31] - Interest expense decreased by 18.1% to $2,835,000 in Q3 2025 from $3,461,000 in Q3 2024[48] - Income tax expense increased by 69.1% to $17,771,000 in Q3 2025 compared to $10,507,000 in Q3 2024[48] Strategic Initiatives and Growth - The company has identified over $250 million in organic growth investments planned from 2025 to 2030 to fuel long-term growth[11] - Pursuit completed the $111 million acquisition of Tabacón Thermal Resort & Spa in July 2025, enhancing its portfolio in Costa Rica[13] - Pursuit's Refresh, Build, Buy strategy continues to drive growth, with a robust pipeline of acquisition opportunities and organic investments[10] - The company anticipates continued growth in the travel industry and plans to focus on capital expenditures and acquisitions to support its growth strategies[27] - The company is developing a new Flyover attraction in Chicago, which is part of its market expansion strategy[49] Other Financial Metrics - Income from continuing operations before income taxes increased by 73.2% to $105,754,000, up from $61,048,000 in the same quarter of 2024[28] - Income from continuing operations attributable to Pursuit for the three months ended September 30, 2025, was $76,735,000, a significant increase of $33,443,000 or 77.2% from $43,292,000 in 2024[42] - The effective tax rate for the three months ended September 30, 2025, was 16.8%, down from 17.2% in the same period of 2024[34] - The company recorded a gain of $4.2 million for business interruption proceeds related to the Jasper wildfires during the three months ended September 30, 2025[33] - The company reported a $4.2 million gain from business interruption insurance proceeds in Q3 2025 related to lost profits from the Jasper wildfire in 2024[45] - Restructuring charges for the three months ended September 30, 2025, amounted to $424,000, indicating a new expense category for the company[42] - The company experienced a $6,110,000 impairment charge in 2024, which was not present in 2025, reflecting improved asset management[42] - Transaction-related costs and other non-recurring items for the three months ended September 30, 2025, were $(82,000), a decrease of $1,975,000 compared to $1,893,000 in 2024[42] - Net income attributable to non-redeemable noncontrolling interest increased by 56.7% to $11,248,000 in Q3 2025 from $7,178,000 in Q3 2024[48] - Transaction-related costs increased by 68.0% to $1,102,000 in Q3 2025, reflecting ongoing corporate development activities[48]