VVI - Earnings call transcript Q1 2018 | Pursuit Attractions and Hospitality, Inc.

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Operator

Welcome to the Viad Corp First Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. [Operator Instructions]. This call is being recorded.

If you have any objections, you may disconnect. to call like Long. to would I turn over the Carrie And

may You begin.

Carrie Long

good to earnings and for you afternoon Thank and thanks for XXXX joining Viad's all first call. quarter conference us you of

CEO; factors during you'll constitute the call, forward-looking Information facts Financial Steve differ that President statements and our concerning hearing During which and risk statements are the could Ingersoll, made materially be Ellen in Certain in may other results the call, SEC. found Moster, statements. from quarterly our and from the Officer. historical actual Chief be those and reports forward-looking with cause can to annual business our filed not

including items, referring Important X FlyOver net of Additionally, charges adjusted the Iceland Table I non-GAAP is and and costs. including press loss. to adjusted segment to start-up our in call income available operating during and [ph] these income other acquisition earnings measures recoveries, disclosures measures integration impairment the With to release, segment over certain and we'll costs exclude reconciliations can found restructuring or will that, EBITDA income be related call, transaction These www.viad.com. attributable or Steve. which to before or Viad, be on measures, turn regarding loss

Steve Moster

growth. realized Both were GES, Carrie. quarter thank industry than we rotation. year reported lower units XXth see which solid prior healthy joining and At share you quarter same-show us for first on to results Thanks, with continue earnings, And in our business of line straight delivered today's fundamentals call. that We due expectations. were to our negative

trend event prior was was for one X.X% experienced Our its due softer our the U.S.-based was square growth. This which occurrence. growth digit than mid-single compared that decline quarter, to same-show a to of primarily revenue bit net footage expected and the was recent

results. continues live Our position global full-service for provider drive preferred to to efforts the events GES as

our recently strengthening GES place. largest are to was Our competitive one market [indiscernible] position by organizers. event strength of world's in validated Exhibitions, differentiate services the offering helping The Reed our and of the

our an Looking attendee portfolio added of to enhance services technology expanded and of REED contracted our suite in shows registration Dubai offerings. experience, for the renewed

includes rewarding a NFC-enabled badges the customers. our drive on floor and as services service that capture contract maximize dashboard all engagement our lead new drive to points, and tools and innovative Our a software platform, for an deliver and for It's smart the registration extremely touch value app stakeholders. experience to intelligent unique show

again this largest Services a with and and three entertainment also was it's client and offering, that Conference, and Recently, benefits the executing services buildings. corporate of leads Antonio. report quarter events. over that to with leading supplier validation, just our the latest solutions. additional showcases to award business world's natural as improvement in ON as exhibited in-sourcing discussions environmental key Connect further planning News its an partner discoveries, receive cross-sell initiatives, an sectors. drove margin the to that production higher-margin produced we production technology happy in which We've recognition. that Awards met our leading to honor to exhibitors future best we I'm prestigious once recognized also to the the San this reshaping EarthX, at last our we Services GES area. X conference X our solidify practices With were As XXXX audio-visual won festivities and Audio-visual on innovation, that Exhibition event from for years expectations complex event and provider team event captured for and the of we our work event strong and event. policies with which solutions is to seeing continue months, several our solid research, are across digital secured initial this of a In particularly banking component produce went sessions, two partnered share won our EarthX opportunities the the sustainable ON XX of array across grow the experience-driven gain our position of a included for space, in corporate flagship XXX QX, Last across is planet. spread we strategy, month, growth We're event

sessions, innovation. the that general For environment hub we creating built learning, designed, lab, networking conversation this event, and breakout design and Excel, session, executed an and the encourage effectively for

for annual an recently conference resigned Softwares also period. additional X-year Tableau We [ph],

show creative Plexus graphic another client Worldwide Plexus for environmental strategy will for has GES installations interactive provide with and services and Annual design Tableau’s XXth Legacy planning, strategize partner Convention second to corporate year chosen and and help event production, We and And design this produce to and year. a its event. later

creation a store Our full flow hall mapping the designs retail of launch has center product convention the XX,XXX of partnership out the with attendee Plexus within for and and ambassadors. a strategy, Plexus included

in offerings, goals. higher-margin making our health we strategic the the and services renewal a and of we're of exhibitions XXXX. strengthening marketplace client and Hemisphere. GES Western the an show a we're exhibition to recently industry our team our adding suite long-standing Overall, had towards also our IFPE resigning This for in By poised successful is CONEXPO-CON/AGG the Our for the tri-annual position its are and of we're encouraged and progress with important XXXX the occurrence. complementary by that largest

Now to let gears switch me Pursuit.

slow trend we've made our operations initiatives, management first team at revenue Canada driven Buy attraction. the Gondola With strategy. the primarily FlyOver of growth growth most Pursuit was primarily the this by of our by with and the investments Our during strong that This coupled a towards organic Build, our Refresh, delivered driven Banff close, period was during XX.X% quarter. seasonably

[ph] to continues theater and XX% rooftop including and its expectations made most Sky quarter. our exceed have we Gondola interactive truly enhanced the XXXX to experience, observation Banff exhibit mountaintop more improvements the revenue experience. guest than new with the Our deck up Bistro and from The

during job Gondola team our off-peak addition, doing at through In otherwise periods visitation programming. is a the higher driving great

For a northern a success. lights that viewing example, we was great package offered recently

As strong visitor. higher a and result, per visitation revenue capturing we're experiencing very

Our quarter. other was management drive to FlyOver increase revenue and Through our attraction, all performed of during able team also per well growth and revenue X% film of season in our passenger. the bundling initiatives a XX% Canada, unique content, passenger

with that to in Our with added our the also Last see This good to development collection at area our revenue of improved Maligne complement making shop drive to serves our building scenic strong of perfect location XX with we in the popular Royal to ADR property higher Park. attraction. National reopening on as help tourist dine is attracted home, our facility idyllic towards location Hotel this of progress stop an staying attraction sits that groundbreaking to and realize commenced route that experience. of scheduled operation is and a a in and With providing we're continued media's this adventures. excited is Maligne overlook The our occupancy. the outside of Canyon purchase to on XXXX. and refresh guests asset and demand. this potential planned. to minutes Jasper, the the a with new restaurant assets local we ceremony guest progressing about collection the with of iconic July Iceland an as us trailhead, flyover Mount a views This also We're relax Maligne Banff, official a Jasper peak the upcoming River, to great Jasper week, interest. higher strong this Lake open season. We upgraded Closer area, efforts their Jasper We're a will town construction to along and we open gift and that travel initial upgrade believe our of X, hotel FlyOver strong the

from some of Ellen? to expect those at collection addition now, ahead exciting a to start profitability and it our our turn we're And the financials. for provide more off Ellen color guests teams of In we of to summer season. and great to are Pursuit, growth busy on assets. peak year preparing over strong Overall, another tourism our I'll projects,

Ellen Ingersoll

Thanks, Steve.

results of line guidance. were earlier, XXXX with prior in Steve for quarter our the first As our mentioned

revenue $XX operating loss segment before segment $XX.X revenue impact EBITDA was decreased the adjusted million. per The million, segment results loss and items by other quarter adjusted $X.X to XXXX share consolidated XXXX $XX.X to is million Compared reflecting the $X.XX on $XXX.X adjusted of million. segment share at by Our first GES. decreased decline of and the EBITDA $XX XX.X% $XX.X million quarter, expected first of rotation of or relative of adjusted million, negative primarily operating million decreased

of revenue quarter first posted of segment $XX.X EBITDA $XXX,XXX. GES results. group million, business income the and to million segment on adjusted Moving adjusted operating $XXX.X of

$XX.X by an basis, negative adjusted As excludes $XX.X compared first driven On new decreased or adjusted EBITDA by revenue as approximately was partially quarter, loss segment first quarter and revenue base of international segment offset to million, GES' partially $X.X to rotation. of business, and organic million $XX.X million X.X%, negative organic million. share an rotation GES due and the XXXX rotation Pursuit organic decreased the income million. declines segment by $XX of offset revenue by growth or decreased about million, million On or $XX.X million nonrecurring basis, rate show adjusted decline respectively, an $XX.X million, revenue $X.X segment XX.X% the XX.X%, and from XX.X%. variances, million due Organic primarily million exchange and which $X.X of the of favorable for respectively, $XX.X EBITDA segment of those XXXX posted same-show U.S. $XX.X primarily to million $XX of operating show were negative operating negative segment was continued revenue certain primarily down $X million, business impact or adjusted wins. X.X%. quarter.

quarter million revenue XXXX first an during the and on from certain year-over-year Gondola this revenue $X.X higher driven by $X.X basis. As passenger compared primarily volumes RevPAR Canada to Forever and growth slow was million Revenue per attractions organic and or hospitality seasonally a up assets. quarter, Banff at was passenger the

due including and primarily lower of to for balance eBay onto were flow the $XX.X the an $XX.X XXXX revenue of of quarter, our per segment million, certain XXX,XXX first our growth million in million RevPAR cost additional debt XXXX, for from cash rebuilding $XX.X higher versus those an within primarily respectively, CapEx At to Royal new during Mount And results primarily were well due XX% year. Hotel quarter and expenditures Diego decreased [ph] operations gift XXXX, same-store GES now declines across totaled an XXX,XXX of ratio Center. Miller consolidated guidance. discussing adjusted our cash flow San $X.X grew On and capital. XX, now at million, quarter, flow segment and including adjusted cash with was and the passenger which the shop expenses. changes was the XXXX prior operating and basis, was EBITDA Capital growth equivalents support outflow $XXX.X at to moving initiatives in versus XX.X%. XXXX Convention up at as And the continued the in income timing in and our cash to the Pursuit, debt-to-capital quarter, from the sheet GES items before as million $X.X million to restaurant organic guidance. primarily Canada. due working equipment our $XX.X increased XXX,XXX, a contracts March and and service totaled XX.X% same-store opened million Pursuit's Our by and of purchase respectively. Pursuit, by the investments

Our full relatively year outlook remains unchanged.

single to EBITDA consolidated increase low expect a adjusted $XXX.X to with $XXX.X segment revenue million. to about versus continue million digit at XXXX We rate of

and For million. of to ON $XX year range business million XXXX, increase expect the the offset EBITDA underlying continue is from in to show expected the GES, acquisition to to in continued growth but be full GES' rotation more adjusted approximately million. than of we slightly revenue $XX Services $XX negative segment

July. to about EBITDA to grow range to of at segment for This in continue adjusted low For high Mount guidance in Pursuit full for to $XX with million. Royal the single-digit revenue which $XX to reopen Pursuit, the expected is a million expect revenue double-digit million $X we of Hotel, includes rate year incremental

expect about funded The Our from full of complete in Mount received to the the insurance expenditures The primarily that acquire operations the want the our at expected Royal of will Iceland FlyOver out in restoration to will by million, the Mount to also to attraction. slightly $XX proceeds $XX and we be range higher approximately begin approximately Hotel Esja, Royal renovation GILTI contribution our be Icelandic rate million entity to approximately the for expenditures million now year we I than Iceland the guided be controlling the capital earnings. includes and as which million on we we XXXX. be to This we Iceland XX% Hotel $XXX foreign development $XXX FlyOver to in XXXX funded $XX our be capital attraction. of previously the that tax is property to to and flow year expect effective to developing full is million cash subject XXXX. to expenditures point interest $XX FlyOver be expect is now million, tax

non-deductible higher earnings higher the be increase in estimate tax in based jurisdictions, than XX% is information best available on rate tax year tax our our expected increase GILTI the effective rate. This an and and effective foreign due Our so this expenses, the corporate rate at time. our to rate state will

For rotation. EBITDA expect Adjusted expected $X segment to per negative revenue versus driven are the decline 'XX revenue quarter. the share second lower and of show quarter. by GES, $X.XX decrease XXXX to quarter, expected in both as to The the income $X.XX we compared

to For adjusted of second due $X.X to a driven of quarter, quarter we $XX million the decrease XXXX the income is XXXX approximately operating versus result about the GES, primarily negative - GES' quarter by approximately rotation million revenue million. to lower expected expect from decline show million primarily million revenue. quarter, $X to as $X.X segment $XX second by

second refresh by we expect cost and million, to of be expected is quarter quarter, increase $XX across XXXX quarter reflects attraction our million adjusted Pursuit, support to $X.X million and additional revenue in range efforts from our XXXX in For the by to compared segment the continued to $XX hospitality driven million quarter continued focus operating to $X.X the to $X.X initiatives. second revenue as Pursuit's million growth and largely on income portfolio. management

Steve, in XXXX guidance back to press found be can release. Additional the earnings you.

Steve Moster

while lie strategic will about exciting very enhanced closing, start the entire effort and with financial the proud driving In profitability. the with we of opportunities we XXXX. team want ahead. to The in line? of to the progress, for of the strong acquisitions our and open up can I you Ellen. growth happy investments And And I'm Viad results, are Thanks, also for deliver avenues our Viad to that, the thank are our strong excited I'm solid and to made And questions. continued growth relentlessly we team strategy. our a goals. for that highly Kristen, open I'm organic off still projects please results commitment to with pursuing

Operator

Marco And your Thank question Rodriguez you. is Instructions] Markets]. [Stonegate from [Operator first Capital

is line Your open. now

Marco Rodriguez

rate you be taking cross-selling prepared remarks you you opportunities, mentioned my to the was might the more Good in afternoon, able your if a regard GES far kind or anyway for kind a on it, guys. anything terms like whether Thank of It as you questions. is opportunities that as talk backlog little growth bit look wondering or it's of to sense I potentials in like? numbers in quantify there what gives of side. us those even

Steve Moster

Yeah.

and needs did reasons corporate under-serving we the were of these why some of break into feel our additional specifically to One we got services we segments, is like segment. clients' new we the into event wanted

that the made for of some cross-selling, do felt still the early but room solid new that We've opportunity. opportunity by in stages progress terms there is a us so of a lot believe of that in those I that realizing we've always And some of We've there able of us. been adding services, is ahead to of we're and strong that.

Marco Rodriguez

existing anecdotal Okay. feedback And of you been or to is clients of additional there received comments type that services with or any sort you've from these clients able add?

Steve Moster

of that able provide to well our think think I to I mentioned our a to partners. about events. for our to and versus variety prepared provide partner able way one comes technology easier very an But that excited That's clients. it's as us of our allow strategy, one better It's shop. by existing to opportunity being it remarks, a being the also them a do received stop cornerstone their data them very Yes, capture we suite it services clients to are in

positive the of range leveraging our our So - of only clients us, how but dealing services. the we've positive from feedback with they're about received not full ease

encouraged by we and to continue marketplace making very be So we're progress. on that, the

Marco Rodriguez

like some little your sales when even a Got or be approach clients which it. And do bit assuming will clients, you new I'm existing longer.

talk can capabilities nature? with approach to process that guys the you of decision-making, to services new about any you them how bit illustrating look there clients maybe If of is changes in and anything Are what a like? the terms these little kind your their of

Steve Moster

our same Well, that is usually client multiple current decision-maker that base, event. is across making for services the decisions Marco,

so really successful campaigns of it's And capabilities And of full set. to through a think the our that of I ourselves been terms the illustrate offer. in really full repositioned series depth we've we opening of very services eyes

really I'm that team ourselves encouraged addressed the with by client the both really the taken positioning new So new think and response we've the these I'm and clients our had clients, way by with we're it. our how I and has from prospects. a base, current services encouraged hold has

Marco Rodriguez

you. Got

bit just And more can little to if the wondering talk about Okay. then building. Pursuit, shifting you a gears

acquired you just the rationale restaurant quarter. for you expectations what a about that? the was and it think Can bit little I and a that shop talk in gift are guys your

Steve Moster

ice you National to be when the they up. be we as Glacier And our the did. to can find those position where can in we we along, Jasper that that want acquisition come Maligne being able tuck-in asset able the have. small really the to Park but area, tours, imagine, a in unique It's take Yes. not only Adventure we It's other a the Lake is assets which supports also obviously, adventures, within

where opportunity dining corner of believe area. our assets, for higher-end it's it's us market plus an current it Maligne that Canyon to helps course, a for we So really and that us provide experience

on finish bringing probably and we after year we're So - will first operating peak be our year's it'll excited it board. make enhancements season. some this year of this This

Marco Rodriguez

you. Got

sure make We're kind prepared FlyOver Okay. it I or… still sounds And possibility planned. progressing as of Iceland of in of your accelerates at understood also it's like open, to looking just kind is remarks, XXXX any

Steve Moster

You know, open we would love earlier. it have to

this - facility. takes However, like time this experiences from the develop to construction both of

just So this [indiscernible] and takes a doing we're new film also It while contents. to is outside build that of the a

film, creating So and we're seasons. new FlyOver all we're a Iceland capturing

So creating lead well, Marco. is that's time of some what the as

So we're schedule still for XXXX. on

So we us from of really time can't - lead keep opening earlier that. some than the

Marco Rodriguez

I guys. lot a appreciate Thanks your time, you. Got

Steve Moster

Thanks, Marco.

Operator

question [Operator you. is Thank from Instructions] line in Company] [Sidoti now Next Steve open. Your O'Hara queue

Steve O'Hara

Hi, good afternoon.

Steve Moster

Hi, Steve.

Steve O'Hara

just Just sure to on the - I I want make understood.

it terms of it. like the unchanged much the you it's when from year provided of the guidance, pretty looks In beginning

taxes, to less I Is the a be more going tax rates guess, from Aside or little that bit correct? higher.

Steve Moster

that The Correct. its mentioned that Ellen the taxes really minor thing came It's That's of up we've recently. relatively only unchanged. seen. additional kind

Ellen Ingersoll

minor a there's just well, And Steve. changes a as FX

Steve O'Hara

Okay.

is Far more that positive, Okay. right?

Ellen Ingersoll

No.

Steve O'Hara

okay. park. talked know guys Okay, of about you I development an the have RV

the with leisure heard demand, broadly in what prices helps talk guys and seeing area you terms you where wrong. business? hurts rising, fuel do that of Jasper about that maybe think that maybe just or I it think was stands you're I you Can of you outside maybe guys that in

Steve Moster

Right.

locating. in it Park So of the actually open where It the National in is we're putting RV west on XXXX. glacier will be side Glacier is west that we’re Park

for construction waiting get So to that melt snow the to and underway. project start we're

feel the trends, perspective. is underserved of Glacier Park of market terms an In National like west particularly Park, National side we cabin from glacier and RV an

project. And is macro and the trends, that's the that opportunity this us prime but trends, for so we the not have thinking local just about why initiated we think

heading think of the over strong see last couple trends, XXXX, RV gone record fuel years still up In terms demand. the park strong have We industry years. that over prices of we is the really macro but

think that prices. gasoline we in despite continue So the will increase

Steve O'Hara

Okay. And then just.

saying detail I think of Banff that improving not an you're provided that as the of kind attraction kind – just in or the replicate to works maybe one the type return, wondering but a sure. Gondola you bit of of X-Ks. detail that providing going kind little expect level maybe more think do showing you're - do example recent can just You're you thinking more more model and will of I I'm is that is on you be what going of forward?

Steve Moster

and and we The We allocations, attraction good forward. investors Gondola to job understand sure specifically share don’t capital a Banff the anticipate providing Viad primary like stewards returns reason is as information the our is, to wanted that on we're those primary we detail of make some getting going larger that of why level following and here be capital our that investments an example.

Steve O'Hara

Okay. Thank All very right. you much.

Steve Moster

Steve. Thanks,

Operator

you. that's question [Operator queue. And Instructions] last Thank in the

Steve Moster

Kristen. right, All

that I next think interest and all everybody questions Viad, we you, speaking thank in I for and to look just the with again, to forward sounds want Bye-bye. quarter. their questions. the

Operator

concludes today's participation. call. That you. you for Thank your Thank

You disconnect. may now

Pursuit Attractions and Hospitality (PRSU) 26 Apr 182018 Q1 Earnings call transcript