Viad(VVI) - 2025 Q4 - Annual Report

Revenue Performance - Total revenue for Fiscal 2025 reached $452.4 million, a 23.4% increase compared to $366.5 million in Fiscal 2024[159] - Attractions revenue increased by $49.1 million to $257.5 million, driven by a 12.3% rise in visitors and a 10.1% increase in revenue per attraction visitor[160] - Hospitality revenue rose by $37.3 million to $180.4 million, primarily due to a 28.6% increase in Revenue per Available Room (RevPAR) and a 10.1% increase in occupancy[161] - The number of visitors to attractions increased to 4.2 million, a 12.3% increase from the previous year, with ticket revenue on a same-store basis rising by $14.4 million[162][165] - The effective ticket price for attractions increased to $47.57, reflecting a 10.1% rise compared to the previous year[162] Financial Operations - The company completed the sale of its GES Business for $535 million, which was classified as a discontinued operation[154] - The acquisition of Tabacón Thermal Resort & Spa contributed $11.4 million in hospitality revenue during Fiscal 2025[161] - The company received approximately $24.0 million in total insurance proceeds related to losses from the Jasper wildfires, with $6.8 million received in Fiscal 2025[158] - A new $300 million revolving credit facility was established with a maturity date of September 25, 2030, to support operations and growth initiatives[156] - The company’s debt structure was improved by repaying approximately $393 million under the previous credit facility, enhancing financial flexibility[155] Expenses and Cash Flow - Operating expenses (excluding depreciation and amortization) rose to $226.1 million, a 5.6% increase from Fiscal 2024, driven by a $10.7 million increase in labor expenses and $5.7 million in variable revenue-based fees[168] - Selling, general, and administrative expenses increased by 38.6% to $80.1 million, largely due to higher transaction-related costs associated with the GES Sale and the acquisition of Tabacón[169] - Net cash provided by operating activities attributable to continuing operations was $86.2 million, an increase of $29.2 million compared to Fiscal 2024, driven by improved operating results[181] - Net cash used in investing activities was $151.1 million, a decrease of $520.2 million compared to Fiscal 2024, primarily due to reduced proceeds from the sale of businesses and increased acquisitions[182] Capital Expenditures and Liquidity - Total available liquidity as of December 31, 2025, was $238.1 million, including $31.1 million in unrestricted cash and $207.0 million available under the 2025 Revolving Credit Facility[174] - Planned capital expenditures for the year ending December 31, 2026, are approximately $121 million to $127 million, with $88 million to $93 million allocated for select growth projects[178] Tax and Shareholder Returns - The effective income tax rate for Fiscal 2025 was 30.0%, reflecting the absence of tax benefits on U.S. losses due to a valuation allowance[171] - The company repurchased shares worth $10.2 million during Fiscal 2025, with approximately $39.8 million remaining authorized for future repurchases[186] Pension and Retirement Plans - The company anticipates contributing $0.5 million to funded pension plans and $4.3 million to unfunded pension plans in 2026[197] - The termination of the Giltspur, Inc. Employees' Pension Plan resulted in a reclassification of net expense of approximately $5.4 million to other expense in Fiscal 2025[198] Foreign Exchange and Interest Rate Exposure - A hypothetical adverse change of 10% in currency exchange rates would have resulted in an approximately $8 million reduction in income from continuing operations before income taxes for Fiscal 2025[206] - As of December 31, 2025, long-term contractual liabilities denominated in nonfunctional currencies totaled $42.6 million, with an intercompany debt agreement balance of $32.6 million[207] - A hypothetical change of 100 basis points in interest rates would result in a change to interest expense of approximately $1 million based on outstanding long-term debt as of December 31, 2025[208] - The company recorded cumulative unrealized foreign currency translation losses of $46.4 million and $62.9 million as of December 31, 2025 and 2024, respectively[205] - The company has significant exposure to foreign exchange rates, with potential material impacts on financial results due to fluctuations[204] Estimates and Assumptions - The company has made significant estimates and assumptions regarding the fair values of assets acquired in business combinations, which are inherently uncertain[201]