Viad(US:VVI)2023-02-10 18:51Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2022 was $248 million, up 35% or $64.5 million year-over-year, driven by 46% growth at Pursuit and 34% growth at GES [11][19] - Net loss attributable to Viad was $5.7 million compared to a loss of $22.5 million in Q4 2021 [11] - Consolidated adjusted EBITDA improved to negative $2 million, an improvement of $1.8 million year-over-year [12] - Full year revenue more than doubled versus 2021, with consolidated adjusted EBITDA reaching $116.1 million, up from $1.3 million in 2021 [19] Business Line Data and Key Metrics Changes - Pursuit achieved record revenue in 2022, with a 60% increase year-over-year, reaching nearly $300 million [19] - GES delivered total revenue of $213.9 million in Q4, with adjusted EBITDA of $12.7 million, an increase of $3.1 million year-over-year [12][17] - Pursuit's Q4 revenue was $34.1 million, with same-store revenue growth of 32% [14] - GES exhibitions revenue grew 32.7% in Q4, reflecting strong recovery in live events [17] Market Data and Key Metrics Changes - Pursuit's attractions visits reached 85% of 2019 levels, with ticket revenue growing approximately 36% versus 2019 [29] - The company anticipates a gradual return of international visitors, particularly from Asia-Pacific markets, in 2023 [37] - Demand for Pursuit's Canadian experiences is strong, with early season bookings pacing ahead of 2022 [36] Company Strategy and Development Direction - The company is focused on scaling Pursuit and improving GES profitability through strategic initiatives like Refresh, Build, Buy [6][19] - Pursuit's strategy includes enhancing existing experiences and expanding new attractions, contributing significantly to revenue growth [27] - GES aims to maximize profitability and cash flows while navigating the recovery of the live event industry [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in 2023, driven by fewer border restrictions and the recovery of international travel [8][36] - The company expects to see meaningful margin expansion in 2023, particularly in Pursuit, as pandemic-related cost pressures ease [40][59] - Management noted that they do not see signs of economic weakness affecting their business at this time [80][82] Other Important Information - An accounting error related to a finance lease obligation was identified, leading to an understatement of lease liability by $5 million [9] - The company ended Q4 with total liquidity of approximately $146 million, including $60 million in cash [22] Q&A Session Summary Question: Outlook for 2023 from early reservations - Management noted positive demand trends, with web traffic up 20% year-over-year and strong pacing in Alaska and Montana [69] Question: Show rotation and its impact - Management clarified that the show rotation is normal and expected based on non-annual events returning to the calendar [70] Question: Staffing levels and wage inflation - Management indicated they are close to fully staffing levels needed for current revenue and are seeing improvements in hiring metrics [71][72] Question: Details on show rotation and major exhibitions - Management provided insights on specific shows rotating in and out, including IMTS and MINExpo, and their expected impacts on revenue [75][76] Question: New attractions for 2023 - Management confirmed no new attractions are expected for 2023, but they anticipate higher performance due to increased international visitation [77] Question: Impact of macroeconomic factors - Management reported no signs of weakness in consumer spending or travel demand, with strong visitation trends continuing [80][82]