EXHIBIT 99
Contact: Patricia D. Phillips
(Investor Relations)
602/207-1040
pphillip@viad.com
VIAD CORP ANNOUNCES FOURTH QUARTER AND FULL YEAR RESULTS
REPORTS DILUTED EARNINGS PER SHARE OF $0.29 FOR
FOURTH QUARTER AND $1.29 FOR 2001
DOWN 9.4 PERCENT AND 15.7 PERCENT FROM PRIOR YEAR, RESPECTIVELY
(BEFORE RESTRUCTURING CHARGES AND OTHER ITEMS)
FOURTH QUARTER PAYMENT SERVICES REVENUES AND OPERATING INCOME
UP 13.3 PERCENT AND 11.0 PERCENT, RESPECTIVELY
(ON A TAXABLE EQUIVALENT BASIS)
VIAD'S RESULTS FOR 1998, 1999 AND 2000 TO BE RESTATED
NET INCOME FOR THE THREE YEARS OF $370.4 MILLION
TO BE REDUCED BY A TOTAL OF $12.4 MILLION
PHOENIX, AZ -- January 24, 2002 -- Viad Corp (NYSE:VVI) today announced
net income for the quarter ended December 31, 2001 of $25,187,000 or $0.29 per
share on a diluted basis, down 9.4 percent on a per share basis from net income
of $28,446,000, or $0.32 per share in the 2000 fourth quarter. All income and
per share amounts for 2000 presented herein have been restated as discussed
below. Revenues on a taxable equivalent basis were $375,392,000, down 12.9
percent from $430,782,000 in the 2000 fourth quarter. On the same basis,
operating income for the quarter was $47,185,000, down 3.5 percent from
$48,896,000 in the 2000 fourth quarter, and operating margins were 12.6 percent,
up from 11.4 percent in 2000. Cash earnings per share for the quarter (defined
as income plus after-tax goodwill amortization) was $0.33 compared with $0.36 in
the 2000 fourth quarter. Cash flow (EBITDA, defined as earnings before interest,
taxes, depreciation and amortization) for the quarter was $62,933,000, down 8.5
percent from $68,757,000 in 2000.
1
For the full year 2001, income before restructuring charges and other
items was $112,337,000, or $1.29 per share, down 15.7 percent on a per share
basis from comparable income of $139,942,000, or $1.53 per share in 2000. After
deducting restructuring charges and other items, net income for 2001 was
$51,134,000, or $0.58 per share, compared with net income of $140,819,000, or
$1.54 per share in 2000. Revenues on a taxable equivalent basis for the full
year were $1,706,237,000, down 3.9 percent from $1,776,306,000 in the prior
year. On the same basis, operating income was $227,606,000, down 10.6 percent
from $254,688,000 in 2000, and full year operating margins were 13.3 percent,
down from 14.3 percent in 2000. As of December 31, 2001, there were 4,600,000
fewer average shares of common stock outstanding, primarily due to share
repurchase programs in 2000. Cash earnings per share for the year was $1.45
compared with $1.68 in 2000. Cash flow (EBITDA) for the year was $288,999,000,
down 11.1 percent from $325,073,000 in 2000.
Robert H. Bohannon, Chairman, President and Chief Executive Officer,
said: "Overall, earnings exceeded our expectations for the year and the quarter,
due to continued strong performance by TravelersExpress/MoneyGram,
better-than-expected results from GES, cost savings from the restructuring
program and other cost savings initiatives undertaken in the latter half of the
year. While this past year has been difficult for Viad, we are pleased with the
performance of TravelersExpress/MoneyGram and are confident that the
restructuring has better positioned the convention business to weather the
continued downturn in the convention and events industry, and will allow us to
better meet client needs and grow when the economic climate improves."
FINANCIAL RESTATEMENT RELATED TO EXHIBITGROUP/GILTSPUR
In the third quarter of 2001, Viad announced a pre-tax restructuring
charge of $66,100,000 relating, in large part, to the closure and consolidation
of certain of Exhibitgroup/Giltspur's 15 facilities, excluding foreign
operations. The charge included costs known and identified at that time,
associated with the closing of those facilities, including the anticipated
write-down of certain assets, inventories, lease termination
2
costs and expected severance and employee related costs. As the company
undertook the actual closure process and the full reconciliation of accounts at
all Exhibitgroup/Giltspur facilities, it discovered that, in addition to the
amounts included in the restructuring charge, certain charges and expenses
relating principally to the accounting for work-in-process and raw material
inventories were necessary. Upon reviewing those additional items, it was
determined that some of them related to prior periods, and could not properly be
taken in the fourth quarter. As a result, Viad in consultation with its outside
auditors, Deloitte & Touche LLP, determined it was necessary to restate Viad's
audited financial statements for 1998, 1999 and 2000. The restatement is
attributable only to Exhibitgroup/Giltspur (one of two operating companies
included in the Convention and Event Services segment). The restatement has no
impact on previously reported cash, revenues, or on the unaudited quarterly
results previously reported for 2001. The restatement will reduce Viad's
cumulative three year income from continuing operations by a total of
$12,426,000, from $370,395,000, as originally reported, or by 3.4 percent as
follows: $2,649,000 for 1998, $6,104,000 for 1999, and $3,673,000 for 2000.
Consequently, Viad's diluted earnings per share will be reduced by: $0.03 for
1998, $0.06 for 1999, and $0.04 for 2000. (See Restatement Detail in Note A of
Notes to Summary of Consolidated Income).
Bohannon said: "We are very disappointed with the need to restate prior
period earnings. The restatement reflects a comprehensive review of all
Exhibitgroup/Giltspur's locations. In January 2001, we brought in Gordon
Anderson as President and CEO of Exhibitgroup/Giltspur. In light of a
deteriorating economy, his primary objective was to analyze
Exhibitgroup/Giltspur's current operating structure. Exhibitgroup/Giltspur has
long operated with a number of local manufacturing facilities throughout the
country, which was found to be inefficient. As a result of that analysis, we
announced a restructuring plan and are in the process of reducing the number of
manufacturing locations from 15 to 5, excluding foreign operations. We have
taken appropriate steps, including an accelerated plan for centralization of
3
Exhibitgroup/Giltspur's finance and accounting functions, intended to ensure
that this will not occur again in the future."
PAYMENT SERVICES
Commenting on results for Payment Services, Bohannon said, "Travelers
Express/MoneyGram continues to perform very well in its Official Check and
MoneyGram operations. We are particularly excited about our recent MoneyGram
signing to rollout our wire transfer product at approximately 2,700 Walmart
stores. We anticipate that the majority of the stores will be rolled out by the
second quarter of 2002 and the remainder will be rolled out by the end of the
year."
Payment Services revenues on a taxable equivalent basis for the 2001
fourth quarter grew 13.3 percent to $202,389,000, up from $178,665,000 in the
2000 fourth quarter. On the same basis, operating income was up 11.0 percent to
$53,747,000 compared with $48,433,000 in 2000, and operating margins for the
quarter were 26.6 percent compared with 27.1 percent in the 2000 fourth quarter.
Official Check reported excellent results, as did MoneyGram.
TravelersExpress/MoneyGram's average investable balances grew to $5.7 billion,
up 35 percent from the prior year quarter. MoneyGram's transactions grew over 35
percent from the prior year's fourth quarter. This growth has accelerated from
the 29 percent reported in the third quarter of 2001.
For the full year 2001, Payment Services revenues on a taxable
equivalent basis were also up 13.3 percent to $760,740,000 compared with
$671,683,000 in 2000. On the same basis, and before restructuring charges and
other items, operating income was $176,615,000, up 10.3 percent over
$160,055,000 in 2000, and operating margins for the year were 23.2 percent
compared with 23.8 percent in 2000. Travelers Express/MoneyGram's average
investable balances grew to $5.0 billion, up over 30 percent from the prior year
reflecting strong growth in the second half of the year. MoneyGram transaction
growth was over 25 percent for the full year. Travelers Express/MoneyGram
continues to add to its well-established network of more than 100,000 agents
spread across 150 nations.
4
Noting recent contract wins with Huntington Bancshares and Sovereign
Bank as further evidence of the continued strength of the company's Official
Check product, and MoneyGram's signing of the Walmart contract, Bohannon said,
"We are very optimistic about the long-term growth prospects of our
TravelersExpress/MoneyGram business."
CONVENTION AND EVENT SERVICES
Convention and Event Services revenue was $168,998,000, a decrease of
31.4 percent from $246,349,000 in the fourth quarter 2000. Operating losses for
the segment were $4,825,000 compared with operating income of $1,917,000 in the
2000 quarter. Operating income for 2000 has been restated. For the full year
2001, Convention and Event Services revenue was $884,044,000, a decrease of 14.3
percent from $1,032,115,000 in 2000. Operating income, before restructuring
charges and other items, was $36,293,000, down 51.9 percent from $75,510,000 in
the prior year and operating margins were 4.1 percent, down from 7.3 percent in
2000.
The operating companies within the segment, GES and
Exhibitgroup/Giltspur, are making substantial progress in eliminating and
controlling overhead and other costs through the restructuring program, which is
on schedule. As a result of these restructuring efforts, the segment performed
better than anticipated and delivered sequential quarterly improvement in
operating margins of approximately 130 basis points over the 2001 third quarter.
Additionally, GES recently announced it signed the 2002 International
Manufacturing and Technology Show (IMTS), one of the largest tradeshows in the
world.
2002 OUTLOOK
Bohannon concluded: "We expect the economic weakness to continue well
into 2002. However, we do anticipate that we will show modest earnings growth
over 2001 due to the strength of the Payment Services segment and our
restructuring initiatives. Our outlook for 2002 is for Viad's earnings growth in
the range of 3 to 6 percent. This translates into expected EPS in the range of
$1.49 to $1.53, excluding the amortization
5
of goodwill, which will no longer be allowed beginning in 2002, or $1.33 to
$1.37 after deducting for goodwill amortization as in 2001. We believe the
economy will continue to challenge the convention and event industry throughout
2002. Because of this, our outlook for the Convention and Event Services segment
is for a revenue decline of 5 to 10 percent from 2001 levels, and we expect the
Payment Services segment to continue to show strong performance and to deliver
revenue growth in the low teens for the year."
Viad is a $1.7 billion revenue S&P MidCap 400 company. Major
subsidiaries include TravelersExpress/MoneyGram of Minneapolis, GES Exposition
Services of Las Vegas and Exhibitgroup/Giltspur of Chicago. For more information
visit the company's Web site at www.viad.com.
# # # #
As provided by the safe harbor provision under the "Private Securities
Litigation Reform Act of 1995" Viad cautions readers that this press release
includes certain information that may constitute forward-looking statements.
These forward-looking statements are not historical facts, but reflect current
estimates, projections, or expectations of or current trends in future growth,
productivity improvements, ongoing cost reduction efforts, tax rates, and
restructuring plans (including timing and realization of cost savings). Actual
results might differ materially from those projected in the forward-looking
statements. Viad's businesses can be affected by a host of risks and
uncertainties. Among other things, gains and losses of customers, consumer
demand patterns, purchasing decisions related to customer demand for convention
and event services, existing and new competition, industry alliances and
consolidation and growth patterns within the industries in which Viad competes
may individually or in combination impact future results. In addition to factors
mentioned elsewhere, economic, competitive, governmental, technological, capital
marketplace and other factors, including further terrorist activities that could
affect forward-looking statements.
6
VIAD CORP AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
(PRELIMINARY - SUBJECT TO AUDIT)
Quarter Ended December 31, Year Ended December 31,
----------------------------------- -----------------------------------
(000 omitted, except per share data) 2001 2000 % 2001 2000 %
----------- ----------- ----- ----------- ----------- -----
As Restated As Restated
(Note A) (Note A)
Revenues:
ONGOING OPERATIONS, taxable
equivalent basis (Note B) $ 375,392 $ 430,782 -12.9% $ 1,706,237 $ 1,776,306 -3.9%
Sold businesses 19,023 NM
Taxable equivalent adjustment and elimination (10,218) (17,737) -42.4% (46,847) (68,521) -31.6%
----------- ----------- ------ ----------- ----------- ------
$ 365,174 $ 413,045 -11.6% $ 1,659,390 $ 1,726,808 -3.9%
=========== =========== ====== =========== =========== ======
Operating income before restructuring charges
and other items:
ONGOING OPERATIONS, taxable
equivalent basis (Notes B and E) $ 47,185 $ 48,896 -3.5% $ 227,606 $ 254,688 -10.6%
Sold businesses 2,467 NM
Taxable equivalent adjustment and elimination (10,218) (17,737) -42.4% (46,847) (68,521) -31.6%
Corporate activities and minority interests (Note C) (2,322) 1,940 NM (13,355) (11,500) 16.1%
Net interest expense (3,724) (4,476) -16.8% (20,284) (12,188) 66.4%
----------- ----------- ------ ----------- ----------- ------
Income before income taxes 30,921 28,623 8.0% 147,120 164,946 -10.8%
Income taxes (Note D) (5,734) (177) NM (34,783) (25,004) 39.1%
----------- ----------- ------ ----------- ----------- ------
INCOME BEFORE RESTRUCTURING CHARGES
AND OTHER ITEMS 25,187 28,446 -11.5% 112,337 139,942 -19.7%
Restructuring charges and other items,
net of tax (Note E) (61,203) 877 NM
----------- ----------- ------ ----------- ----------- ------
Net income $ 25,187 $ 28,446 -11.5% $ 51,134 $ 140,819 -63.7%
=========== =========== ====== =========== =========== ======
Diluted net income per common share:
INCOME BEFORE RESTRUCTURING CHARGES
AND OTHER ITEMS $ 0.29 $ 0.32 -9.4% $ 1.29 $ 1.53 -15.7%
Restructuring charges and other items (0.71) 0.01 NM
----------- ----------- ------ ----------- ----------- ------
Net income per share $ 0.29 $ 0.32 -9.4% $ 0.58 $ 1.54 -62.3%
=========== =========== ====== =========== =========== ======
Basic net income per common share:
Income before restructuring charges
and other items $ 0.29 $ 0.32 -9.4% $ 1.30 $ 1.56 -16.7%
Restructuring charges and other items (0.72) 0.01 NM
----------- ----------- ------ ----------- ----------- ------
Net income per share $ 0.29 $ 0.32 -9.4% $ 0.58 $ 1.57 -63.1%
=========== =========== ====== =========== =========== ======
Common shares treated as outstanding
for net income per share calculations:
Average outstanding shares 85,733 87,016 -1.5% 85,503 88,802 -3.7%
=========== =========== ===== =========== =========== ======
Average outstanding and potentially
dilutive shares 86,248 88,461 -2.5% 86,322 90,925 -5.1%
=========== =========== ===== =========== =========== ======
NM = not meaningful
VIAD CORP AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
(PRELIMINARY - SUBJECT TO AUDIT)
NOTES TO SUMMARY OF CONSOLIDATED INCOME:
(A) Restatement -- In the third quarter of 2001, Viad announced a pre-tax
restructuring charge of $66,100,000 (Note E) relating, in large part, to
the closure and consolidation of certain of Exhibitgroup/Giltspur's 15
facilities, excluding foreign operations. The charge included costs known
and identified at that time, associated with the closing of those
facilities, including the anticipated write-down of certain assets,
inventories, lease termination costs and expected severance and employee
related costs. As the company undertook the actual closure process and
the full reconciliation of accounts at all Exhibitgroup/Giltspur
facilities, it discovered that, in addition to the amounts included in
the restructuring charge, certain charges and expenses relating
principally to the accounting for work-in-process and raw material
inventories were necessary. Upon reviewing those additional items, it was
determined that some of them related to prior periods, and could not
properly be taken in the fourth quarter. As a result, Viad in
consultation with its outside auditors, Deloitte & Touche LLP, determined
it was necessary to restate Viad's audited financial statements for 1998,
1999 and 2000. The restatement is attributable only to
Exhibitgroup/Giltspur (one of two operating companies included in the
Convention and Event Services segment). The restatement has no impact on
previously reported cash, revenues, or the unaudited quarterly results
previously reported for 2001.
A summary of the effects of the restatement are as follows:
Year Ended December 31,
--------------------------------------------------------------------------
(000 omitted, except per share data) 2000 1999 1998
---------------------- ---------------------- ----------------------
As Previously As Previously As Previously
Reported As Restated Reported As Restated Reported As Restated
Convention and Event Services:
Revenue $1,032,115 $1,032,115 $ 932,768 $ 932,768 $ 849,165 $ 849,165
Operating income $ 81,631 $ 75,510 $ 99,934 $ 89,758 $ 87,446 $ 83,031
========== ========== ========= ========= ========= =========
Total Company:
Income from continuing operations
before restructuring charges
and other items $ 143,615 $ 139,942 $ 122,428 $ 116,324 $ 84,607 $ 81,958
Restructuring charges and other items 877 877 6,131 6,131 12,737 12,737
---------- ---------- --------- --------- --------- ---------
Income from continuing
operations 144,492 140,819 128,559 122,455 97,344 94,695
Income from discontinued
operations 218,954 218,954 53,296 53,296
---------- ---------- --------- --------- --------- ---------
Net income $ 144,492 $ 140,819 $ 347,513 $ 341,409 $ 150,640 $ 147,991
========== ========== ========= ========= ========= =========
Diluted income per common share:
Income from continuing operations
before restructuring charges
and other items $ 1.57 $ 1.53 $ 1.26 $ 1.20 $ 0.85 $ 0.82
Restructuring charges
and other items 0.01 0.01 0.06 0.06 0.13 0.13
---------- ---------- --------- --------- --------- ---------
Income from continuing
operations 1.58 1.54 1.32 1.26 0.98 0.95
Income from discontinued
operations 2.27 2.27 0.54 0.54
---------- ---------- --------- --------- --------- ---------
Net income $ 1.58 $ 1.54 $ 3.59 $ 3.53 $ 1.52 $ 1.49
========== ========== ========= ========= ========= =========
VIAD CORP AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
(PRELIMINARY - SUBJECT TO AUDIT)
NOTES TO SUMMARY OF CONSOLIDATED INCOME (CONTINUED):
(A) Restatement (continued)
(000 omitted, except
per share data) 2000 First Quarter 2000 Second Quarter 2000 Third Quarter 2000 Fourth Quarter
------------------ ------------------ ------------------ ------------------
As As As As
Previously As Previously As Previously As Previously As
Reported Restated Reported Restated Reported Restated Reported Restated
Convention and Event Services:
Revenue $261,852 $261,852 $295,638 $295,638 $228,276 $228,276 $246,349 $246,349
Operating income $ 27,464 $ 27,464 $ 33,326 $ 33,326 $ 12,803 $ 12,803 $ 8,038 $ 1,917
======== ======== ======== ======== ======== ======== ======== ========
Total Company:
Income from continuing
operations before
restructuring charges
and other items $ 26,053 $ 26,053 $ 42,308 $ 42,308 $ 43,135 $ 43,135 $ 32,119 $ 28,446
Restructuring charges
and other items 877 877
-------- -------- -------- -------- -------- -------- -------- --------
Net income $ 26,053 $ 26,053 $ 42,308 $ 42,308 $ 44,012 $ 44,012 $ 32,119 $ 28,446
======== ======== ======== ======== ======== ======== ======== ========
Diluted income per common share:
Income from continuing
operations before
restructuring charges
and other items $ 0.28 $ 0.28 $ 0.46 $ 0.46 $ 0.47 $ 0.47 $ 0.36 $ 0.32
Restructuring charges
and other items 0.01 0.01
-------- -------- -------- -------- -------- -------- -------- --------
Net income $ 0.28 $ 0.28 $ 0.46 $ 0.46 $ 0.48 $ 0.48 $ 0.36 $ 0.32
======== ======== ======== ======== ======== ======== ======== ========
(B) Reportable Segments
Quarter Ended Year Ended
December 31, December 31,
------------------------------------ ----------------------------------
(000 omitted) 2001 2000 % 2001 2000 %
-------- -------- -------- -------- -------- --------
As Restated As Restated
Revenues:
Payment Services (taxable equivalent basis) $202,389 $178,665 13.3% $ 760,740 $ 671,683 13.3%
Convention and Event Services 168,998 246,349 -31.4% 884,044 1,032,115 -14.3%
-------- -------- -------- ---------- ---------- --------
Reportable segments 371,387 425,014 -12.6% 1,644,784 1,703,798 -3.5%
Travel and Recreation Services 4,005 5,768 -30.6% 61,453 72,508 -15.2%
-------- -------- -------- ---------- ---------- --------
$375,392 $430,782 -12.9% $1,706,237 $1,776,306 -3.9%
======== ======== ======== ========== ========== ========
Operating income:
Payment Services (taxable equivalent basis) $ 53,747 $ 48,433 11.0% $ 176,615 $ 160,055 10.3%
Convention and Event Services (4,825) 1,917 NM 36,293 75,510 -51.9%
-------- -------- -------- ---------- ---------- --------
Reportable segments 48,922 50,350 -2.8% 212,908 235,565 -9.6%
Travel and Recreation Services (1,737) (1,454) 19.5% 14,698 19,123 -23.1%
-------- -------- -------- ---------- ---------- --------
$ 47,185 $ 48,896 -3.5% $ 227,606 $ 254,688 -10.6%
======== ======== ======== ========== ========== ========
NM = not meaningful
VIAD CORP AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
(PRELIMINARY - SUBJECT TO AUDIT)
NOTES TO SUMMARY OF CONSOLIDATED INCOME (CONTINUED):
(C) Corporate Activities -- The 2000 fourth quarter reflects the reversal of
expense provisions associated with Viad's incentive plans because targets
were not achieved.
(D) Income Taxes -- The actual tax rate for 2001 is higher than in 2000 due
to lower tax-exempt income in proportion to total pre-tax income,
resulting from a shift in the mix of investments from nontaxable to
taxable investments. Even though nontaxable investments generally have
higher after-tax yields than taxable investments, Viad has shifted its
mix of nontaxable and taxable investments to balance its alternative
minimum tax position. In addition, due to lower operating income in the
Convention and Event Services segment, tax savings associated with filing
consolidated state income tax returns is lower than anticipated,
resulting in a higher effective state tax rate. A reconciliation of the
provision for income taxes and the amount that would be computed using
statutory federal income tax rates on income before income taxes is as
follows:
Year Ended December 31,
------------------------------------------------------------------
(000 omitted) 2001 2000
--------------------------- ---------------------------
As Restated
Computed income taxes at
statutory federal tax rate $ 51,492 35.0% $ 57,731 35.0%
Nondeductible goodwill amortization 3,443 2.3% 3,337 2.0%
State income taxes 5,927 4.0% 3,167 1.9%
Other, net 149 0.1% (2,156) (1.3%)
-------- -------- -------- --------
Subtotal 61,011 41.4% 62,079 37.6%
Tax-exempt income (26,228) (17.8%) (37,075) (22.4%)
-------- -------- -------- --------
Provision for income taxes $ 34,783 23.6% $ 25,004 15.2%
======== ======== ======== ========
(E) Restructuring Charges and Other Items -- In the 2001 third quarter, Viad
recorded restructuring and other charges totaling $66,100,000
($39,910,000 after-tax). The charges consist of costs associated with the
closure and consolidation of certain facilities, severance and other
employee benefits. The charges also include amounts for the write-down
(net of estimated sales proceeds) of certain inventories and assets,
facilities closure and lease termination costs (less estimated sublease
income) and other exit costs.
During the 2001 third quarter, Viad's payment services subsidiary
recorded a charge totaling $5,000,000 ($3,026,000 after-tax) resulting
from the bankruptcy of a large money order agent in late September.
Management believes this is an unusual charge that is not expected to
occur again.
On August 18, 2000, Key3Media Group, Inc. ("Key3Media"), a company spun
off by Ziff-Davis Inc., terminated a long-term agreement with GES
Exposition Services, Inc. ("GES") to produce tradeshows. The companies
have been involved in litigation regarding the contract termination.
During the second quarter of 2001, GES and Key3Media agreed to end the
litigation. As a result of the settlement, Viad recorded a noncash
provision totaling $29,274,000 ($18,267,000 after-tax) in the 2001 second
quarter representing primarily the write-off of net receivables and
prepayments made to Key3Media. The settlement will have no adverse impact
on future operations.
A nonrecurring net gain of $877,000 ($0.01 per share) was recorded in the
2000 third quarter. The net gain included a gain of $5,655,000
(after-tax) on the July 13, 2000 sale of Viad's concession operations at
America West Arena and Bank One Ballpark in Phoenix, Arizona, after
deducting costs of sale and related expense provisions. Also included in
this item was a $4,778,000 (after-tax) charge taken to streamline and
consolidate certain operations in Viad's Convention and Event Services
segment. In addition to costs related to reductions in headcount, the
charge included the write-down of certain fixed assets and facility
closure costs.
VIAD CORP AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
(PRELIMINARY - SUBJECT TO AUDIT)
NOTES TO SUMMARY OF CONSOLIDATED INCOME (CONTINUED):
(F) Supplemental Information -- Information included in the press release is
presented using methods management utilizes to measure profit and
performance of its operations. The information is supplemental to results
presented under generally accepted accounting principles. This
supplemental information includes the following:
-- An adjustment is made to the Payment Services segment to present
revenues and operating income resulting from amounts invested in
tax-exempt securities on a fully taxable equivalent basis.
-- EBITDA is defined by Viad as income before interest expense,
income taxes, depreciation and amortization and restructuring
charges and other items and includes the fully taxable equivalent
adjustment.
-- Cash earnings per share is defined by Viad as income (before
restructuring charges and other items) plus after-tax goodwill
amortization.