Viad(US:VVI)2024-11-09 13:53Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $455.7 million, a 25% increase year-over-year [7] - Consolidated adjusted EBITDA was $103.1 million, up $16.9 million from the previous year [7] - GAAP net income attributable to Viad was $48.6 million, reflecting a $7.3 million increase compared to Q3 2023 [7] Business Line Data and Key Metrics Changes - Pursuit reported Q3 revenue of $182.3 million and adjusted EBITDA of $86.3 million, with a margin of 47.4%. Revenue decreased by $4.7 million year-over-year due to wildfire impacts [8] - GES achieved consolidated revenue of $273.4 million and adjusted EBITDA of $20.2 million, marking increases of $94.5 million and $22.2 million respectively from the prior year [9] Market Data and Key Metrics Changes - Jasper Lodges & Attractions experienced a revenue decline of $21.9 million year-over-year, while attractions outside Jasper saw a 13% revenue growth [8] - Year-to-date total attractions ticket revenue grew 12% year-over-year, with a 5% increase in visitors [16] Company Strategy and Development Direction - The company is focused on a "Refresh, Build, Buy" growth strategy, aiming to capitalize on high-margin opportunities in the hospitality and attraction sectors [6][20] - A recent acquisition of Glacier Park Collection for $15.9 million is expected to enhance Pursuit's offerings [6][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of Jasper's tourism, anticipating a 12% increase in travel trade revenue for 2025 compared to 2023 [33] - The company expects to achieve adjusted EBITDA greater than $100 million in 2025, despite the challenges faced in 2024 [18] Other Important Information - The pending sale of GES is expected to be completed by December 31, 2024, allowing Pursuit to operate as a standalone high-growth entity [27] - Total liquidity at the end of Q3 was nearly $230 million, with no borrowings on the revolver [10] Q&A Session Summary Question: Update on FlyOver attractions - Management confirmed that FlyOver Chicago is performing positively and is not planning to deploy capital for new locations currently [30][31] Question: Impact of wildfire on tour and travel - Management anticipates a strong recovery in demand for Jasper, with no significant drop in interest from tour operators [33] Question: Future EBITDA margins for Pursuit - Management expects EBITDA margins to stabilize around 30% for 2025, excluding public company costs [37] Question: Occupancy rates in Jasper - Management indicated that occupancy rates will be high due to the loss of hotel rooms, leading to market compression [38] Question: Transaction-related costs from GES sale - Most transaction-related costs will occur in 2024, with an estimated total of $20 million [40][42]