Viad(US:VVI)2024-02-09 02:13Financial Data and Key Metrics Changes - Consolidated revenue increased by $43.7 million or 17.6% year-over-year, with adjusted EBITDA rising by $16.5 million [7][8] - Full year consolidated adjusted EBITDA increased by $30.9 million or 26.6% on a 9.9% increase in revenue [13][14] - Total liquidity at the end of 2023 was $160.7 million, down from $201.3 million at the end of Q3 2023 [15] Business Line Data and Key Metrics Changes - Pursuit's fourth quarter revenue grew by $8.1 million or 23.6% year-over-year, with adjusted EBITDA improving by $2.9 million [9] - GES delivered consolidated revenue growth of $35.6 million or 16.6%, with adjusted EBITDA growth of $13.9 million [11] - Pursuit's full year ticket revenue grew approximately 25% to $143 million, driven by a 21% increase in visitation [24] Market Data and Key Metrics Changes - GES exhibitions revenue growth rate was about 23% versus the 2022 fourth quarter, driven by strong spending from existing and new clients [12] - U.S. Exhibitions same-show revenue grew about 19% and event sizes increased about 11% compared to the prior year [52] Company Strategy and Development Direction - The company anticipates strong revenue and EBITDA growth in 2024, driven by robust demand and the opening of FlyOver Chicago [6][20] - Pursuit's strategy focuses on maximizing guest experiences and revenue through new attractions and improved operational efficiency [39][40] - GES aims to maintain an adjusted EBITDA margin of about 8.5% in 2024, supported by a strong non-annual show schedule [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism entering 2024, citing robust demand for experiences and a strong non-annual show schedule [6][20] - The company expects full year consolidated adjusted EBITDA to be in the range of $171 million to $191 million, reflecting a growth of approximately 16% to 30% from 2023 [17][19] - Management noted that corporate marketing budgets are exceeding 2019 levels, indicating a positive outlook for trade shows and corporate events [68] Other Important Information - The company ended 2023 with cash flow from operations of $106.7 million and capital expenditures totaling $78.3 million [16] - The effective tax rate for the full year is anticipated to be between 27% to 28% [21] Q&A Session Summary Question: What are the larger non-annual shows for 2024? - The larger shows in 2024 are IMTS, MINExpo, and the Farnborough Airshow, all occurring in the third quarter [58][59] Question: How did the closure of Blue Lagoon affect Sky Lagoon? - Blue Lagoon had multiple closures due to volcanic activity, which benefited Sky Lagoon by increasing its visibility and guest numbers [60] Question: What contributed to the margin improvement in Pursuit? - The margin improvement was driven by increased visitation and effective management efforts across the team [61] Question: What is the status of FlyOver Chicago and other projects? - FlyOver Chicago is on time and within budget, while Toronto's project is still in discussions with the city [63][64] Question: What are the expectations for same-show revenue in 2024? - Same-show revenue is expected to grow in the mid-single digit range, driven by pricing and increased event square footage [72][73] Question: How will the new attractions contribute to revenue in 2024? - Continued growth is anticipated from new attractions, with expectations for increased visitations [69] Question: What is the outlook for Pursuit's EBITDA margin? - The company is confident in achieving a 30% EBITDA margin in 2024 [77] Question: How will the growth CapEx be allocated? - About $6 million of the $20 million growth CapEx is for FlyOver Chicago, with the rest allocated to various smaller projects [78][84] Question: Can GES maintain its EBITDA margin in future years? - The expectation is to maintain an 8% or higher EBITDA margin even in years with less non-annual show revenue [90]