Viad(US:VVI)2026-02-25 21:11Financial Performance - Pursuit reported record revenue of $452.4 million for the full year 2025, a 23.4% increase year-over-year, and $57.1 million for the fourth quarter, a 24.6% increase year-over-year [4]. - Adjusted EBITDA for the full year 2025 was $117.1 million, reflecting a year-over-year growth of $40.1 million, primarily due to higher revenue and strong margin flow-through [11]. - For 2026, Pursuit expects Adjusted EBITDA to be approximately $123 million to $133 million, representing a growth of about 9% at the mid-point compared to 2025 [9]. - Pursuit's long-term financial targets for 2030 include revenue exceeding $845 million and Adjusted EBITDA greater than $265 million, indicating a growth strategy focused on organic growth and strategic acquisitions [19]. - Pursuit's total liquidity was $238.1 million at the end of 2025, with cash and cash equivalents of $31.1 million and $207.0 million available on its revolving credit facility [11]. - Pursuit's net income for the full year 2025 was $22.7 million, with a fourth quarter net loss of $25.7 million, primarily impacted by the sale of GES in 2024 [11]. - Adjusted net income for the year ended December 31, 2025, was $33,526 thousand, a decrease of $29,799 thousand compared to $3,727 thousand in 2024 [54]. - The adjusted EPS for the year ended December 31, 2025, was $1.18, a decrease of $0.15 compared to $1.33 in 2024 [54]. Revenue Breakdown - Pursuit reported total revenue of $57.1 million for Q4 2025, a 24.6% increase from $45.8 million in Q4 2024 [41]. - For the full year 2025, total revenue reached $452.4 million, up 23.4% from $366.5 million in 2024 [41]. - Ticket, rooms, transportation, and other services revenue increased by 22.9% to $44.7 million in Q4 2025, compared to $36.4 million in Q4 2024 [41]. - Food and beverage and retail products revenue rose by 31.3% to $12.4 million in Q4 2025, compared to $9.4 million in Q4 2024 [41]. - Adjusted EBITDA attributable to Pursuit for the year 2025 was $94,163,000, up 54.6% from $60,912,000 in 2024 [61]. Expenses and Losses - Operating expenses for the full year 2025 were $226.1 million, a 5.6% increase from $214.2 million in 2024 [41]. - Selling, general, and administrative expenses increased by 38.6% to $80.1 million for the full year 2025, compared to $57.8 million in 2024 [41]. - The company recorded a net loss of $26.2 million in Q4 2025, compared to a net income of $313.3 million in Q4 2024 [41]. - Basic loss per share for Q4 2025 was $(0.91), a decrease of 93.8% from earnings of $10.81 per share in Q4 2024 [41]. - The company incurred a net loss from discontinued operations of $330,000 in Q4 2025, a recovery from a loss of $386,918,000 in Q4 2024 [61]. Strategic Investments and Acquisitions - The company plans to invest approximately $88 million to $93 million in organic growth capital expenditures in 2026, with a total investment commitment of around $200 million for large-scale projects [23]. - The company has identified over $300 million in Refresh and Build growth investments to drive long-term growth from 2026 to 2030 [22]. - Pursuit plans to enhance geographic and seasonal diversification with the acquisition of Tabacón Thermal Resort & Spa for $111 million, expected to close in July 2025 [33]. - The company aims to simplify its capital structure by acquiring full ownership of Glacier Park Inc. and Flyover Iceland for a total of $15 million, expected to close in September and December 2025 [33]. Financial Health and Ratios - Pursuit's net leverage ratio was 1.0x at the end of 2025, below the target range of 2.0x to 3.5x, indicating strong financial health [11]. - Interest expense decreased by 32.8% to $2,596,000 in Q4 2025 from $3,862,000 in Q4 2024 [61]. - Depreciation and amortization expenses increased by 11.6% to $11,987,000 in Q4 2025 compared to $10,738,000 in Q4 2024 [61]. Charges and Gains - The company reported a significant reduction in restructuring charges, which decreased by 99.1% to $28 thousand for the three months ended December 31, 2025, compared to $3,156 thousand in 2024 [54]. - Impairment charges were eliminated in 2025, down from $41,462 thousand in 2024, indicating a significant improvement in asset management [54]. - Transaction-related costs for the three months ended December 31, 2025, were $1,551 thousand, a decrease of 82.6% from $8,900 thousand in 2024 [54]. - A business interruption gain of $4.2 million was recognized in Q3'25, related to insurance proceeds from lost profits due to the Jasper wildfire in 2024 [58].