Viad(US:VVI)2024-05-04 17:10Financial Data and Key Metrics Changes - Consolidated revenue increased by $12.7 million or 4.9% year-over-year, with healthy growth at both Pursuit and GES [10] - Consolidated adjusted EBITDA increased by $0.9 million, while the first quarter adjusted net loss improved by $0.3 million [10] - GAAP net loss attributable to Viad was $4.2 million higher than the first quarter of 2023, primarily due to increased non-operational items and income tax expense [10] Business Line Data and Key Metrics Changes - Pursuit's first quarter revenue grew by $4.6 million or 14% year-over-year, driven by a 25% increase in attraction ticket revenue [11] - GES delivered consolidated revenue growth of $8.1 million or 3.6%, with adjusted EBITDA growth of $2.2 million [13] - GES Exhibitions revenue growth was about 5% when excluding the impact of major non-annual events [13] Market Data and Key Metrics Changes - Total liquidity at the end of the first quarter was $137.2 million, comprising $48.8 million in cash and $88.4 million of available capacity on the revolving credit facility [14] - The net leverage ratio was 2.7x, near the low end of the target ratio range of 2.5x to 3.5x [15] Company Strategy and Development Direction - The company maintains a favorable outlook for strong growth, expecting approximately 16% to 30% year-over-year growth in full-year consolidated adjusted EBITDA [7] - Pursuit aims for full-year adjusted EBITDA in the range of $105 million to $115 million, with a margin of about 30% [18] - GES expects full-year adjusted EBITDA to be in the range of $80 million to $90 million, with a margin of about 8.5% [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the year ahead, citing robust demand for destinations and experiences, including the new FlyOver Chicago attraction [6][8] - The company anticipates strong operating cash flow, particularly in the third quarter, with a full-year operating cash inflow expected in the range of $120 million to $140 million [21] - Management noted that consumer confidence is higher year-over-year, contributing to positive momentum in bookings and spending [57] Other Important Information - The company successfully repriced its Term Loan B, reducing the borrowing rate by 75 basis points, which will lower annual interest costs by more than $2.5 million [16] - The company is committed to balancing growth investments with maintaining a strong balance sheet and ample liquidity [21] Q&A Session Summary Question: Update on volcanic activity in Iceland and its impact - Management noted that visitation to Iceland is up, and while there are periodic closures due to volcanic activity, it has driven more visitors to Sky Lagoon [54] Question: Correlation between FlyOver Chicago and Las Vegas - Management indicated strong initial visitation and positive EBITDA for FlyOver Chicago, noting less competition compared to Las Vegas [55] Question: RevPAR expectations for the upcoming year - Management expressed confidence in RevPAR growth, citing strong early bookings and effective inventory management [59] Question: Update on GES and forward spending - Management reported strong demand for services, with no signs of hesitation in corporate spending [77] Question: Inorganic growth opportunities - Management highlighted ongoing opportunities for organic growth and investments in existing properties [78] Question: Labor market conditions for the upcoming season - Management stated that hiring has improved significantly compared to previous years, with a fully staffed team ready for the season [79]