Viad(US:VVI)2022-05-09 04:16Financial Data and Key Metrics Changes - The company reported a net loss attributable to Viad improved by approximately $14 million compared to Q1 2021, with consolidated adjusted EBITDA also improving by the same amount [19] - GES finished the quarter with revenue at 59% of the 2019 first quarter, exceeding expectations of approximately 50% [17][18] - Pursuit achieved record first quarter revenue of $23.8 million, an increase of $14 million or 143% year-over-year, and surpassed pre-pandemic levels [20][39] Business Line Data and Key Metrics Changes - GES realized total revenue of $153.6 million in Q1, an increase of $134.4 million compared to Q1 2021, driven by increased live event activity [25] - Pursuit's same-store revenue increased by $8.9 million from Q1 2021, primarily due to stronger visitation at Canadian experiences [21] - GES Exhibitions generated $111.8 million in revenue with $2 million in EBITDA, benefiting from a faster recovery in trade show activity [83] Market Data and Key Metrics Changes - U.S. trade shows were approximately 73% of pre-pandemic scale on a same-show basis, marking the third consecutive quarter of improvement [9] - Corporate experiential budgets for 2022 are expected to be approximately 80% of 2019 levels among large corporate clients [10][104] - Pursuit's lodging assets are currently pacing ahead of 2019 levels, indicating strong demand for leisure travel [11] Company Strategy and Development Direction - The company is focused on a refresh, build, buy strategy to drive growth at Pursuit, including recent acquisitions and new experiences [11][35] - The rebranding of GES Brand Experiences to Spiro aims to capture more market share in the experiential marketing industry [14][15] - The company plans to prioritize investments that are counter-seasonal or immediately accretive to EBITDA [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising the full-year outlook due to better-than-expected financial performance and positive macro trends [9][107] - The company anticipates strong demand for leisure travel and a recovery in international visitation, which will contribute to margin expansion [71][112] - Management acknowledged inflationary pressures but expects to mitigate these through revenue management and pricing strategies [113][74] Other Important Information - The company ended Q1 with total liquidity of approximately $145 million, including $58 million in cash and $87 million available on its revolving credit facility [31] - Capital expenditures for Q1 totaled about $13 million, primarily at Pursuit, with expectations for full-year capital expenditures of approximately $75 million to $80 million [32][118] - The acquisition of Glacier Raft Company is expected to contribute between $9 million and $10 million of incremental revenue in 2022 [59] Q&A Session Summary Question: Can you discuss Pursuit's capacity for 2022? - Management indicated that certain dates are already sold out and expects a return to historical levels of demand for attractions and hospitality assets [132] Question: How does international demand typically develop? - Management noted that Western Europe and North America are traveling freely, and they expect a return to normalcy in international demand as borders are open [135]