EXHIBIT 99
Viad Corp Announces Fourth Quarter and Full Year 2004 Results
PHOENIX--(BUSINESS WIRE)--Feb. 4, 2005--Viad Corp (NYSE:VVI):
Fourth Quarter Loss from Continuing Operations of $0.31 per Share;
$0.27 Loss from Continuing Operations per Share Before Non-Cash
Impairment Loss of $0.04 per Share
Full Year Loss from Continuing Operations of $2.68 per Share;
$1.07 Income from Continuing Operations per Share Before Non-Cash
Impairment Losses of $3.75 per Share
Viad Corp (NYSE:VVI) today announced fourth quarter 2004 revenue
of $152.0 million, segment operating loss of $4.8 million, and a loss
from continuing operations of $6.8 million, or $0.31 per diluted
share. Net loss for the quarter, including income from discontinued
operations of $2.3 million, or $0.10 per share, was $4.5 million, or
$0.21 per share. The fourth quarter loss included a non-cash
impairment charge of $776,000 (after-tax), or $0.04 per share,
resulting from the valuation of Exhibitgroup's trademark intangible
asset that was completed during the quarter. Viad's loss from
continuing operations before impairment loss was $6.0 million, or
$0.27 per share, in line with Viad's prior guidance. Fourth quarter
results also reflect the seasonally slow fourth quarter for GES and
the Travel and Recreation Services segment.
Full year 2004 revenue was $785.5 million, segment operating
income was $53.8 million and loss from continuing operations was $58.3
million, or $2.68 per diluted share, which includes non-cash charges
for goodwill and intangible asset impairment of $81.6 million,
after-tax, or $3.75 per share. Income from continuing operations
before impairment losses was $23.3 million, or $1.07 per share in line
with prior guidance of $1.04 to $1.10 per share, as compared to $21.1
million, or $0.97 per share in 2003. Net loss, including impairment
charges and income from discontinued operations was $56.0 million, or
$2.58 per share.
Robert H. Bohannon, chairman, president and chief executive
officer said, "Despite several challenges in 2004, we realized growth
of over 10 percent in full-year income from continuing operations
before impairment losses. We also realized overall improvement in
revenue and segment operating income, driven by a strong rebound in
the Travel and Recreation Services segment and good top-line growth at
GES. Poor results at Exhibitgroup, however, dampened overall growth."
Non-Cash Goodwill and Intangible Asset Impairment Charges
Statement of Financial Accounting Standards No. 142, "Goodwill and
Other Intangible Assets," requires companies to test goodwill and
certain intangible assets for impairment on an annual basis.
Impairment testing is also required between annual tests if an event
occurs or circumstances change that would more likely than not reduce
the fair value of a reporting unit below its carrying amount.
During the third quarter 2004, Exhibitgroup's operating results
were affected by a significant reduction in revenue from new exhibit
construction that caused management to reduce its outlook for the full
year. As a result of this potential impairment indicator, Viad
performed an interim goodwill impairment test for the Exhibitgroup
reporting unit in connection with the preparation of its third quarter
2004 financial statements. Based on this interim testing, management
concluded that a goodwill impairment loss was necessary and that a
trademark intangible impairment loss was probable. Accordingly, during
the third quarter, Viad recorded a charge of $80.4 million ($76.6
million after-tax), representing the entire carrying amount of
Exhibitgroup's goodwill, and a charge of $7.0 million ($4.2 million
after-tax) representing management's preliminary estimate of the
trademark's impairment. Management finalized the valuation of the
trademark during the fourth quarter and recorded an additional
impairment charge of $1.3 million ($776,000 after-tax), resulting in a
remaining trademark book value of $4.6 million.
Discontinued Operations
During the fourth quarter, Viad recorded income from discontinued
operations of $2.3 million, or $0.10 per share. This income related to
tax matters associated with sold operations, primarily favorable
foreign tax settlements.
Fourth Quarter and Full Year 2004 Financial Highlights
Highlights of the 2004 fourth quarter and full year, compared to
fourth quarter and full year 2003 results, are presented below.
Q4 2004 Q4 2003 Change
---------- ------- ---------
($ in millions)
Revenue $152.0 $143.9 5.6%
Segment operating (loss) income $(4.8) $0.2 NM
Operating margins (a) -3.2% 0.1% -330 bps
(Loss) income from continuing operations
before impairment losses (b) $(6.0) $0.2 NM
(Loss) income from continuing operations $(6.8) $0.2 NM
Net (loss) income $(4.5) $0.2 NM
Adjusted EBITDA (b) $(3.6) $6.1 -158.9%
Cash from operations $3.9 $(14.9) 126.3%
Free cash flow (b) $(3.1) $(20.4) 85.0%
2004 2003 Change
--------- ------- --------
($ in millions)
Revenue $785.5 $770.5 2.0%
Segment operating income $53.8 $51.2 5.1%
Operating margins (a) 6.9% 6.6% 30 bps
Income from continuing operations before
impairment losses (b) $23.3 $21.1 10.3%
(Loss) income from continuing operations $(58.3) $21.1 NM
Net (loss) income $(56.0) $21.1 NM
Adjusted EBITDA (b) $59.8 $63.9 -6.4%
Cash from operations $35.7 $24.5 45.7%
Free cash flow (b) $19.5 $9.0 116.9%
(a) For operating margins, the change from the prior year period is
presented in basis points.
(b) Income before impairment losses is defined by Viad as income
from continuing operations before after-tax impairment charges related
to goodwill and intangible assets. Adjusted EBITDA is defined by Viad
as net income before interest expense, income taxes, depreciation and
amortization, goodwill and intangible asset impairments, changes in
accounting principles and the effects of discontinued operations. Free
cash flow is defined by Viad as net cash provided by operating
activities minus capital expenditures and dividends. Income from
continuing operations before impairment losses, Adjusted EBITDA and
free cash flow are supplemental to results presented under accounting
principles generally accepted in the United States of America (GAAP)
and may not be comparable to similarly titled measures presented by
other companies.
These non-GAAP measures are used by management to facilitate
period-to-period comparisons and analysis of Viad's operating
performance and liquidity. Free cash flow is also used by management
to assess the company's ability to service debt, fund capital
expenditures and finance growth. Management believes these non-GAAP
measures are useful to investors in benchmarking and trending the
performance and value of Viad's business. These non-GAAP measures
should be considered in addition to, but not as a substitute for,
other similar measures reported in accordance with GAAP. See Table Two
for a reconciliation of income from continuing operations to income
from continuing operations before impairment losses, net income to
Adjusted EBITDA, and of net cash provided by operating activities to
free cash flow.
NM = Not meaningful
At the end of the fourth quarter 2004:
-- Cash and cash equivalents were $115.1 million.
-- Debt totaled $21.1 million, with a debt-to-capital ratio of
5.7 percent.
GES Exposition Services (GES)
GES' revenue for the fourth quarter 2004 was $98.4 million, up
$11.3 million or 12.9 percent from $87.1 million in the fourth quarter
2003. Segment operating loss was $3.0 million as compared to a loss of
$2.2 million in 2003. Fourth quarter 2004 results reflect an increase
in incentive accruals as a result of better than expected performance.
For the 2004 full year, GES' revenue was $540.1 million, up $41.4
million or 8.3 percent from 2003 revenue of $498.7 million. Full year
segment operating income increased $3.1 million or 7.7 percent to
$43.3 million and operating margins were 8.0 percent as compared to
8.1 percent in 2003.
Bohannon said, "The fourth quarter and full year revenue
improvement was driven mainly by terrific growth in GES' Products and
Services group. Positive show rotation revenue of roughly $10 million
also benefited the full year, while the fourth quarter was relatively
flat from a rotational standpoint. We're very pleased with GES' strong
top-line growth, especially given the modest growth in the overall
industry. Unfortunately, certain margin pressures that we discussed
during the third quarter hampered full year operating income growth."
Exhibitgroup/Giltspur (Exhibitgroup)
Exhibitgroup's fourth quarter revenue was $47.1 million, down $4.7
million or 9.1 percent from $51.8 million in the 2003 fourth quarter.
Segment operating loss was $1.3 million, down $5.7 million from income
of $4.4 million in the 2003 fourth quarter. For the full year,
Exhibitgroup's revenue was $178.0 million, down $40.6 million or 18.6
percent from $218.6 million in 2003. Full year segment operating loss
was $9.2 million, down $10.3 million from 2003 income of $1.1 million.
Bohannon said, "The fourth quarter decline was driven by a
decrease in construction revenue, primarily in the kiosk line of
business. Kiosk new construction volume and margins were both
negatively affected by highly competitive pricing situations. At the
same time, we did see some stabilization in exhibit construction. The
irrational pricing seen earlier this year appears to have abated a
little and, while exhibit construction revenue was down in the fourth
quarter, the decline was not as pronounced as it was in the third
quarter. In fact, Exhibitgroup received some sizable new exhibit
orders for the Consumer Electronics Show that were completed prior to
year end."
Bohannon continued, "In addition to the competitive environment in
the kiosk business, the decrease in Exhibitgroup's full year results
was driven by overall weak demand for new construction and irrational
competitive pricing, which resulted in Exhibitgroup walking away from
unprofitable business."
Travel and Recreation Services
Travel and Recreation Services segment revenue for the 2004 fourth
quarter was $6.5 million, up $1.6 million or 31.6 percent compared to
$4.9 million in the 2003 fourth quarter. Segment operating loss was
$501,000, an improvement of $1.5 million over the 2003 fourth quarter
loss of $2.0 million. The fourth quarter is seasonally slow for the
Travel and Recreation Services segment, contributing less than 10
percent of its full-year revenue. For the full year, revenue was $67.5
million, up $14.3 million or 26.8 percent compared to $53.2 million in
2003. Segment operating income was $19.8 million, up $9.8 million or
nearly twice the 2003 amount of $10.0 million, and segment operating
margins increased to 29.3 percent from 18.7 percent in 2003.
Bohannon said, "The Travel and Recreation Services segment
provided over one-third of Viad's total segment operating income and
was a key contributor to the company's growth in 2004. The substantial
year-over-year improvement in the Travel and Recreation Services
segment was due largely to a healthy rebound in visitation to our
properties and attractions in the absence of SARS and forest fires,
which negatively impacted 2003 results. Brewster and Glacier also
benefited from solid execution and cost control which helped to boost
margins to their highest level in over 5 years."
2005 Outlook
Guidance provided by Viad is subject to change as a variety of
factors can affect actual operating results. Those factors are
identified in the safe harbor language at the end of this press
release. Additionally, this guidance does not include any impact as a
result of adopting Statement of Financial Accounting Standards No.
123R, "Share-Based Payment," which is effective for Viad beginning in
the third quarter of 2005. This standard requires that all share-based
compensation awards be measured at fair value at the date of grant and
expensed over their vesting or service periods. The expense upon
adoption, which has not yet been determined, will be affected
primarily by Viad's historical and new option grants, forfeitures and
valuation methodology going forward.
Full Year 2005
Full year income per diluted share is expected to be in the range
of $1.23 to $1.36, as compared to income from continuing operations
before impairment losses of $1.07 per share in 2004. Revenue is
expected to increase by a low-single digit rate from the 2004 amount
of $785.5 million. Segment operating income is expected to increase by
a mid-single digit to mid-teens rate from $53.8 million in 2004. This
improvement is expected to be driven mainly by cost reductions and
improved margins at Exhibitgroup. Despite negative show rotation of
approximately $14 million, GES' revenue is expected to be comparable
to or slightly better than 2004, driven mainly by continued growth in
the Products and Services group.
First Quarter 2005
For the first quarter, Viad's income per diluted share is expected
to be in the range of $0.50 to $0.58, as compared to $0.35 per share
in the 2004 first quarter. Revenue is expected to increase at a
high-single digit to low-double digit rate from the 2004 amount of
$207.6 million. Segment operating income is expected to increase by $5
million to $8 million from $16.2 million in 2004. This improvement is
expected to be driven mainly by positive show rotation of
approximately $17 million at GES as well as modest improvement at
Exhibitgroup.
Implicit within this guidance, are the following segment revenue
and operating income expectations.
Segment Segment
Revenue Operating Income
----------------- --------------------
low-end high-end low-end high-end
($ in millions)
GES $186 to $188 $24.9 to $26.9
Exhibitgroup $40 to $44 $(1.5) to $(0.5)
Travel & Recreation $4 $4 $(2.1) to $(1.6)
Second Quarter 2005
For the second quarter, income per share is expected to be in the
range of $0.54 to $0.60, as compared to $0.42 per share in the 2004
second quarter. Revenue is expected to increase by a high-single digit
to low-double digit rate from the 2004 amount of $207.4 million. This
improvement is expected to be driven mainly by revenue growth at GES
and positive show rotation revenue of approximately $10 million at
Exhibitgroup as a European airshow rotates into the second quarter
from the third quarter.
Third Quarter 2005
For the third quarter, income per share is expected to be in the
range of $0.22 to $0.27, as compared to income before impairment
losses per share of $0.57 in the 2004 third quarter. Revenue is
expected to decrease by 15 to 25 percent from the 2004 amount of
$218.6 million. These decreases are expected to be driven mainly by
negative show rotation of approximately $34 million at GES and $10
million at Exhibitgroup (from the European airshow).
Fourth Quarter 2005
For the fourth quarter, loss per share is expected to be in the
range of $0.04 to $0.08, as compared to loss from continuing
operations before impairment charges per share of $0.27 in the 2004
fourth quarter. Revenue is expected to increase by a low to mid-single
digit rate from the 2004 amount of $152.0 million. This improvement is
expected to be driven mainly by cost reductions and improved margins
at Exhibitgroup.
Bohannon said, "Heading into 2005, we are not expecting any
significant improvement in the tradeshow industry. We are, however,
optimistic that the modest growth in tradeshows we saw in 2004 will
continue in 2005. On the exhibitor-side, we expect exhibiting
companies will remain focused on ways to reduce their tradeshow costs,
including using lighter-weight exhibits and refurbishing existing
exhibits rather than building new ones. In this environment, much of
our expected year-over-year improvement is dependent upon excellent
cost control and capitalizing on new business opportunities at both
GES and Exhibitgroup. Our Travel and Recreation Services segment is
back on track following a substantial rebound in 2004, and we expect
modest growth to resume in 2005. At the corporate-level, we will
continue to reduce expenses. And we continue to evaluate strategic
acquisition opportunities."
Bohannon concluded, "2005 will not be without challenges, but no
year ever is. We are more optimistic about the industries we serve
going into 2005 than we were going into 2004. We have a well-tested
and first class team and we are confident in our ability to drive
meaningful earnings growth in 2005."
Conference Call and Web Cast
Viad Corp will hold a conference call with investors and analysts
for a review of fourth quarter 2004 results on Friday, February 4,
2005 at 9 a.m. (EST). To join the live conference call, dial (800)
231-9012, passcode 4399132, or access the webcast through Viad's Web
site at www.viad.com. A replay will be available for a limited time at
(888) 203-1112, passcode 4399132, or visit the Viad Web site and link
to a replay of the webcast.
Viad is an S&P SmallCap 600 company. Major subsidiaries include
GES Exposition Services of Las Vegas, Exhibitgroup/Giltspur of
Chicago, Brewster Transport Company Limited of Banff, Alberta, Canada,
and Glacier Park, Inc. of Phoenix. For more information, visit the
company's Web site at www.viad.com.
Forward-Looking Statements
As provided by the safe harbor provision under the "Private
Securities Litigation Reform Act of 1995," Viad cautions readers that,
in addition to historical information contained herein, this press
release includes certain information, assumptions and discussions that
may constitute forward-looking statements. These forward-looking
statements are not historical facts, but reflect current estimates,
projections, expectations, or trends concerning future growth,
operating cash flows, availability of short-term borrowings, consumer
demand, new business, investment policies, productivity improvements,
ongoing cost reduction efforts, efficiency, competitiveness, tax
rates, and the realization of restructuring cost savings. Actual
results could 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 natural disasters,
gains and losses of customers, consumer demand patterns, labor
relations, purchasing decisions related to customer demand for
convention and event services, existing and new competition, industry
alliances, consolidation, and growth patterns within the industries in
which Viad competes and any deterioration in the economy 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 or war, could affect the forward-looking
statements in this press release. Additional information concerning
business and other risk factors that could cause actual results to
materially differ from those in the forward-looking statements can be
found in Viad's annual and quarterly reports filed with the Securities
and Exchange Commission.
Information about Viad Corp obtained from sources other than the
company may be out-of-date or incorrect. Please rely only on company
press releases, SEC filings and other information provided by the
company, keeping in mind that forward-looking statements speak only as
of the date made. Viad undertakes no obligation to update any
forward-looking statements, including prior forward-looking
statements, to reflect events or circumstances arising after the date
as of which the forward-looking statements were made.
VIAD CORP AND SUBSIDIARIES
TABLE ONE - QUARTERLY AND FULL YEAR RESULTS
(UNAUDITED)
Three months ended Year ended
December 31, December 31,
--------------------------- --------------------------
(000 omitted,
except per
share data) 2004 2003 % 2004 2003 %
-------- -------- ------- -------- -------- -------
Revenues (Note
A) $151,983 $143,872 5.6% $785,497 $770,468 2.0%
======== ======== ======= ======== ======== =======
Segment
operating
income (loss)
(Note A) $ (4,792) $ 198 NM $ 53,821 $ 51,216 5.1%
Corporate
activities and
minority
interests (4,941) (2,674) -84.8% (15,383) (15,300) -0.5%
Restructuring
(charges)
recoveries,
net (Note B) 28 3,539 -99.2% (1,675) 5,015 -133.4%
Impairment
losses (Note
C) (1,291) - NM (88,699) - NM
Net interest
income
(expense)
(Note D) (42) 4,150 -101.0% (1,042) 1,521 -168.5%
-------- -------- ------- -------- -------- -------
Income (loss)
before income
taxes (11,038) 5,213 NM (52,978) 42,452 NM
Income tax
(expense)
benefit 4,238 (5,062) NM (5,356) (21,361) 74.9%
-------- -------- ------- -------- -------- -------
Income (loss)
from
continuing
operations (6,800) 151 NM (58,334) 21,091 NM
Income from
discontinued
operations
(Note E) 2,327 - NM 2,327 - NM
-------- -------- ------- -------- -------- -------
Net income
(loss) $ (4,473) $ 151 NM $(56,007) $ 21,091 NM
======== ======== ======= ======== ======== =======
Diluted income (loss)
per common share:
Income (loss)
from
continuing
operations $ (0.31) $ 0.01 NM $ (2.68) $ 0.97 NM
Income from
discontinued
operations 0.10 - NM 0.10 - NM
-------- -------- ------- -------- -------- -------
Net income
(loss) per
share $ (0.21) $ 0.01 NM $ (2.58) $ 0.97 NM
======== ======== ======= ======== ======== =======
Basic income
(loss) per
common share:
Income (loss)
from
continuing
operations $ (0.31) $ 0.01 NM $ (2.68) $ 0.98 NM
Income from
discontinued
operations 0.10 - NM 0.10 - NM
-------- -------- ------- -------- -------- -------
Net income
(loss) per
share $ (0.21) $ 0.01 NM $ (2.58) $ 0.98 NM
======== ======== ======= ======== ======== =======
Common shares treated as
outstanding for net
income per
share
calculations:
Average
outstanding
shares 21,786 21,596 0.9% 21,741 21,555 0.9%
======== ======== ======= ======== ======== =======
Average
outstanding
and
potentially
dilutive
shares 21,786 21,722 0.3% 21,741 21,654 0.4%
======== ======== ======= ======== ======== =======
NM = not meaningful
VIAD CORP AND SUBSIDIARIES
TABLE ONE - NOTES TO QUARTERLY AND FULL YEAR RESULTS
(UNAUDITED)
(A) Reportable Segments
Three months ended
December 31,
---------------------------
(000 omitted) 2004 2003 %
-------- -------- -------
Revenues:
GES Exposition Services $ 98,385 $ 87,128 12.9%
Exhibitgroup/Giltspur 47,118 51,819 -9.1%
Travel and Recreation Services 6,480 4,925 31.6%
-------- -------- -------
$151,983 $143,872 5.6%
======== ======== =======
Segment operating income (loss):
GES Exposition Services $ (2,963) $ (2,185) -35.6%
Exhibitgroup/Giltspur (1,328) 4,410 -130.1%
Travel and Recreation Services (501) (2,027) 75.3%
-------- -------- -------
$ (4,792) $ 198 NM
======== ======== =======
NM = not meaningful
(A) Reportable Segments
Year ended December 31,
---------------------------
(000 omitted) 2004 2003 %
--------- -------- ------
Revenues:
GES Exposition Services $ 540,085 $498,714 8.3%
Exhibitgroup/Giltspur 177,952 218,551 -18.6%
Travel and Recreation Services 67,460 53,203 26.8%
--------- -------- ------
$ 785,497 $770,468 2.0%
========= ======== ======
Segment operating income (loss):
GES Exposition Services $ 43,262 $ 40,171 7.7%
Exhibitgroup/Giltspur (9,208) 1,070 NM
Travel and Recreation Services 19,767 9,975 98.2%
--------- -------- ------
$ 53,821 $ 51,216 5.1%
========= ======== ======
NM = not meaningful
(B) Restructuring Charges and Recoveries -- Viad recorded a
restructuring charge of $853,000 ($530,000 after-tax) in the second
quarter of 2004 primarily related to planned employee reductions.
Additionally, in the third quarter of 2004, Viad recorded a
restructuring charge of $850,000 ($530,000 after-tax) related to the
consolidation of leased office space. In the third quarter of 2001 and
fourth quarter of 2002, Viad recorded restructuring charges totaling
$66.1 million ($39.9 million after-tax) and $20.5 million ($13.3
million after-tax), respectively, consisting of costs associated with
the closure and consolidation of certain facilities, severance and
other employee benefits in the GES and Exhibitgroup segments. In 2003,
$5.0 million ($3.0 million after- tax) of the reserves associated with
the 2001 restructuring were reversed, including $3.5 million ($2.1
million after-tax) in the fourth quarter of 2003. Additionally, in the
fourth quarter of 2004, $28,000 of the 2002 reserve was reversed.
(C) Impairment Losses -- In the third quarter of 2004,
Exhibitgroup's operating results were affected by a significant
reduction in revenue from new exhibit construction that caused
management to reduce its outlook for the full year. As a result of
this potential impairment indicator, Viad performed an interim
impairment test of the goodwill and intangible trademark asset at
Exhibitgroup in connection with the preparation of its third quarter
2004 financial statements. Based on this interim testing, Viad
recorded a charge of $80.4 million ($76.6 million after-tax),
representing the entire carrying amount of Exhibitgroup's goodwill and
a charge of $7.0 million ($4.2 million after-tax) representing
management's preliminary estimate of the trademark's impairment.
Management finalized the valuation of the trademark during the fourth
quarter of 2004 and recorded an additional impairment charge of $1.3
million ($776,000 after-tax), resulting in a remaining trademark book
value of $4.6 million.
(D) Net Interest Expense -- In the fourth quarter of 2003, Viad
reversed $4.6 million ($2.9 million after-tax) of accrued interest
expense related to favorable income tax settlements.
(E) Income from Discontinued Operations -- In the fourth quarter of
2004, Viad recorded income from discontinued operations of $2.3
million. This income related to tax matters associated with previously
sold operations, primarily foreign tax settlements.
VIAD CORP AND SUBSIDIARIES
TABLE TWO - INCOME BEFORE IMPAIRMENT LOSSES, ADJUSTED EBITDA
AND FREE CASH FLOW
(UNAUDITED)
Three months ended Year ended
December 31, December 31,
-------------------------- -------------------------
(000 omitted,
except per share
data) 2004 2003 % 2004 2003 %
-------- --------- ------- --------- -------- ------
Income (loss) from
continuing
operations
before impairment
losses:
Income (loss)
from continuing
operations $(6,800) $151 NM $(58,334) $21,091 NM
Impairment
losses, net of
tax 776 - NM 81,607 - NM
-------- --------- ------- --------- -------- ------
Income (loss)
from continuing
operations
before
impairment
losses $(6,024) $151 NM $23,273 $21,091 10.3%
======== ========= ======= ========= ======== ======
Income (loss) from
continuing
operations before
impairment losses
per common
share:
Income (loss)
from continuing
operations $(0.31) $0.01 NM $(2.68) $0.97 NM
Impairment
losses, net of
tax 0.04 - NM 3.75 - NM
-------- --------- ------- --------- -------- ------
Income (loss)
from continuing
operations
before
impairment
losses per
common share $(0.27) $0.01 NM $1.07 $0.97 10.3%
======== ========= ======= ========= ======== ======
Three months ended Year ended
December 31, December 31,
-------------------------- -------------------------
(000 omitted) 2004 2003 % 2004 2003 %
-------- --------- ------- --------- -------- ------
Adjusted EBITDA:
Net income
(loss) $(4,473) $151 NM $(56,007) $21,091 NM
Income from
discontinued
operations (2,327) - NM (2,327) - NM
-------- --------- ------- --------- -------- ------
Income (loss)
from continuing
operations (6,800) 151 NM (58,334) 21,091 NM
Impairment losses 1,291 - NM 88,699 - NM
Interest expense
(recoveries) 533 (3,981) -113.4% 2,267 (1,080) NM
Income tax
expense
(benefit) (4,238) 5,062 183.7% 5,356 21,361 74.9%
Depreciation and
amortization 5,605 4,897 -14.5% 21,800 22,501 3.1%
-------- --------- ------- --------- -------- ------
Adjusted EBITDA $(3,609) $6,129 -158.9% $59,788 $63,873 -6.4%
======== ========= ======= ========= ======== ======
Three months ended Year ended
December 31, December 31,
-------------------------- -------------------------
(000 omitted) 2004 2003 % 2004 2003 %
-------- --------- ------- --------- -------- ------
Free Cash Flow:
Net cash provided
by (used in)
operating
activities $3,922 $(14,922) 126.3% $35,697 $24,502 45.7%
Less:
Capital
expenditures (6,108) (5,498) -11.1% (15,374) (15,535) 1.0%
Dividends paid (871) - NM (871) - NM
-------- --------- ------- --------- -------- ------
Free cash flow $(3,057) $(20,420) 85.0% $19,452 $8,967 116.9%
======== ========= ======= ========= ======== ======
NM = not meaningful
CONTACT: Viad Corp
Carrie Long, 602-207-2681
clong@viad.com