Viad(US:VVI)2020-11-01 10:39Financial Data and Key Metrics Changes - Revenue for the third quarter was $63.1 million, down 82.2% from the same period in 2019, primarily due to the COVID-19 pandemic [51] - Adjusted segment EBITDA was $8.1 million, down $64.2 million from the 2019 third quarter [51] - Net loss attributable to the company was $30.8 million compared to net income of $31.4 million in the 2019 third quarter [52] - Total debt decreased to $259.1 million from $475.1 million at the end of the second quarter [59] Business Line Data and Key Metrics Changes - GES revenue was $14.3 million, down approximately 93.5%, largely due to show cancellations and postponements [54] - Pursuit revenue was $48.8 million, down approximately 63.9%, driven by lower visitation due to ongoing border closures [56] - GES adjusted segment EBITDA was negative $11.6 million, down from negative $2.8 million in the 2019 third quarter [55] - Pursuit adjusted segment EBITDA was positive $19.7 million compared to $75.1 million in the 2019 third quarter [57] Market Data and Key Metrics Changes - The live event industry has been significantly affected by COVID-19, with many events canceled or postponed [35] - The U.K. has delayed the reopening of live events until March 2021, while some markets in China, Europe, and the U.S. are beginning to reopen [44] - A survey indicated that nearly 40% of industry suppliers are uncertain about their future or expect to go out of business, presenting an opportunity for stronger companies to gain market share [45] Company Strategy and Development Direction - The company is focused on transforming GES into a leaner and more flexible organization, reducing fixed costs and enhancing service delivery [36][40] - Pursuit's strategy includes a "Refresh, Build, Buy" approach, emphasizing the importance of experiences over material goods [10][33] - The company plans to continue capital expenditures on ongoing projects like FlyOver Las Vegas and Sky Lagoon, while being cautious with new investments [65][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects for the live event industry, despite ongoing challenges [46][48] - There is strong underlying demand for events, with many clients reporting interest in returning to in-person gatherings [46][115] - The company is encouraged by booking trends for 2021, with many guests rebooking canceled itineraries from 2020 [29] Other Important Information - The company ended the third quarter with cash of $56.5 million and available capacity on its revolving credit facility of $209.8 million [61] - Total available liquidity at the end of the third quarter was approximately $311 million, providing financial flexibility during the pandemic [62] - The company has made significant progress in reducing costs, with SG&A expenses down approximately 60% year-over-year [37] Q&A Session Summary Question: What is the outlook for exhibitions and conferences in the near term? - Management noted that many larger events have been postponed into 2021, but there is strong underlying demand for these events once restrictions are lifted [76][77] Question: Did the incident at the ice attraction negatively impact results? - Management acknowledged that the closure of the attraction for investigation did have an impact, but specific quantification was not available at the time [80] Question: What is the expected cash burn for GES in the fourth quarter? - The cash burn for GES is expected to be about half of the previously guided amount, consistent with the third quarter [94] Question: What is GES's typical market share? - GES's market share is approximately 30% in the U.S., 45% in Canada, and 55% in the U.K. [100] Question: What is the expected performance of Pursuit in 2021 compared to 2019 and 2020? - Management indicated that while it is early to provide specific guidance, there are positive pacing trends compared to both 2019 and 2020 [104][105]