VVI - Earnings call transcript Q4 2019 | Pursuit Attractions and Hospitality, Inc.

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Operator

Welcome to the Viad Corp. Fourth Quarter Earnings Call. [Operator instructions] This call is being recorded. [Operator instructions]

May I introduce your speaker for today, Carrie Long. ahead. go Please

Carrie Long

thank fourth and joining for us Good and you full-year XXXX quarter earnings Viad's afternoon, for conference call.

you CEO; our During our call, will from hearing the Steve President and Financial and Chief Ingersoll, Ellen Officer. be Moster,

annual the which found results Certain not quarterly may from to and concerning and materially historical Information in that factors in are other statements differ statements. the risk with forward-looking forward-looking could filed facts, be the during business made our statements call, can constitute cause reports those actual SEC.

or non-GAAP release, at referring to segment be can during be which website operating income to www.viad.com. press disclosures We'll Table loss including in adjusted measures, our found income or and before certain income of is attributable adjusted measures items, to these our the Important on earnings loss. reconciliations regarding other Viad call, available X or segment loss including EBITDA net

Now I'd turn over the call like Steve. to to

Steve Moster

call. delivered worked growth exciting in to joining I'm both quarter and of create and significant us expect Thank the growth proud growth Pursuit successfully. the many had we opportunities businesses. and execute the full and very fourth solid Pursuit on XXXX has you XXXX for year, revenue year, for today's team an GES and from diligently

strategic to buy revenues, new and experiences building pursue We of that refreshing our and continue Refresh, experiences. a scope Build, maximize to existing with Buy by drive growth experiences strategy scale guest economies assets

adventure in we made Windsong expand platforms of collection growth our per the within and and marine the Canyon and locations, leading and flyover At these high accelerating our increased margin become attraction. its during to improve and leveraging of And within and completed tour world's popular our two ancillary Fjords significant locations in have experiences. XXXX XX-room a refreshed revenue growth increased believe experiential of we refresh, platforms I attractions several visitor. we built We growth Kenai retail Alaska, Pursuit, food within we and progress each iconic projects expansion and of its are Lodge Maligne iconic cross-selling Lake great provider to Jasper, travel. nearby Maligne beverage offerings sightseeing our world-class

the the Fodor's rebranded is Glacier premium Glacier this National growth our improved west and attractions. these RV enhanced situated create exclusive and Near Glacier Glacier all-inclusive ideally and At to Glacier. Glacier we recognized West Adventure Icefield, Lodge the Glacier the five activities This Columbia in hotels to our experience guest West our built for maximized View has Cabin was beyond. and Canada. best year projects renovated entrance park one amenities View our hospitality of nearby we a as at resort adjacent at which market with Park, returns our of Village, the Each of park existing in and experience, position and Skywalk

acquisition On iconic completed our platform. transactions within XXXX during the we three front, locations

Glacier. The Belton tuck-in was acquisition in the first of Chalet West the

hotel seven controlling are the situated a guest in Mountain near ideally XXX of June. Lodges early National in XX% These purchase The represent second XX% three the in properties the attractions. was Park of and market of Jasper our lodging interest Park rooms

management accelerate going first strong properties, season see revenue and forward. experienced to meaningful results a efforts we We opportunity through our refresh growth very during operating these revenue and our

under sky have attraction the way, to expect controlling that Reykjavik. location will a we announced we in XX% Iceland. This Development lagoon and that close an geothermal and to stake Icelandic XXXX. efforts all-season acquired we will July, entity a new proximity open oceanfront ideal lagoon in in downtown new Finally, operate in an are

We experiences. visit by and efforts what growth they continue and who realize filling from excellent assets when to guests our in can our management existing guest of are, our revenue managing on our and capacity based revenue they understanding also maximize experiences commitment price our seeking. We to are

our improve have our The Mount previously Royal refreshed Gondola We and at ability Banff to Hotel attraction. No. Royal experience developed Hotel and own Mount to the has quality climbed

wind, with X hotel other we in featuring per attractions, incredible Banff, restaurants feeling Banff with state-of-the-art over boasts Banff both to is in revenue The growth year-over-year motion screen accelerating scent. on flight of and continue No. with Gondola large in effects growth the on Pursuit's RevPAR. technology strong visitor. gives now attractions flyover TripAdvisor an and and the for ranking X offers spherical growth special that deliver seating scenery in ride capturing platform, TripAdvisor mist plant full a on and

Canada attraction, FlyOver an high operational We opened grow. XXXX, expanding see flyover expertise, flyover Reykjavik, TripAdvisor. generating Iceland in proven and an In already achieved and first which acquired opportunity No. rating attractions attraction, around cutting-edge X established with Vancouver flyover August, as a to late we our this strategy. margins on second in in world December the we our the as technology our Using and profitable meaningful FlyOver has growth concept,

designed attractions be Vegas a FlyOver is demand seats We Toronto to each, XX also flyover in will at Las the our to visitation expected Vegas is thus development. in FlyOver local Toronto have on attraction the open is markets. market. in meet these far to and expected with XXXX. to open two FlyOver capacity significant the Canada Las FlyOver largest in which each additional Canada of XXXX tourism based seat We flyover and

create Engaged to Across long-term both platforms a differentiates strong profitable team growth. us our Pursuit, hospitality ultimately culture success. experiences, within drives our key which members guest extraordinary is and

how financial and our effectively. support to position the metrics in improved market Our feedback properties that positive we also guest know

Build, continue we through strategy. forward, Pursuit Going grow to seek value-enhancing to opportunities our Buy Refresh,

continue now bit Ellen quality we comment the financial evaluating on with We to locations ask And that diligently expanding visitation a locations have of platform. demand pipeline iconic little results. with strong bucket And list other Pursuit's pursuing. Ellen? in we're high to experiences a perennial strong are FlyOver iconic actively visually I'll

Ellen Ingersoll

Steve, everyone. good Thanks, and afternoon,

organic from For revenue FlyOver incremental of revenue $X.X and prior up $X.X year fourth-quarter segment during quarter, Iceland to other from $X.X was growth primarily Pursuit's reflecting EBITDA the $X.X additional full-year declined revenue the from Pursuit. ongoing million, adjusted $XX.X acquisitions revenue million costs million delivered XXXX, $XXX.X Pursuit fourth up of growth. completed million support XXXX. by reflecting XX.X% Pursuit's the of million, from million,

million from an or acquisitions. basis, grew This On growth XX.X%. Pursuit's came revenue $XX.X organic

$XX.X contributed refresh in grew EBITDA revenue Our build Pursuit's full-year various and same-store a rate. million. to and mid-single-digit segment our $XX organic approximately at growth revenues adjusted grew million investments XX.X%

contributed $X.X million Mountain of EBITDA Lodges growth our of the being back remaining growth. Belton by Chalet adjusted acquisitions revenue segment to and Park Steve. organic the you, And with And driven

Steve Moster

little transform full talk and great against for events. into bit is our about preferred GES. gears profitability progress live switch long GES objectives the to strategic term our making grow let's Now service business, and simplify a our provider

Our focused growth hard on costs. revenue and driving our working team is clients, managing serving our profitable

our As service national service our to commitment experience best customer for the providing a clients, center J.D. the testament to achieved the GES

to excellence. proud certification J.D. service to support the consecutive year. and am chat dedication of became very employees certification our phone the their Power years Power support providing this and XX for receive first I company for for

in One of satisfaction that execution. and product can is a ways drives manner that ease we the simplify business our to of client offering standardize our

This registration has system a events and client our check-in year, created a feedback. efficiencies modern, counter very standardized delivery new, for we received at introduced positive that

shows In addition, trade corporate with smaller exhibit rental a Services, turnkey clients exhibiting ON for A at GES solution Exhibit U.S. our launched Ready. new serves offering, which footprints.

stage solution combines high that turnkey setup company launched AV time. custom a digital impact that lighting system Scenic create design decreases aluminum to a Ready, framing content a recyclable lightweight scenic new and graphics, design with

look to more additional effectively. of our meet We for to ways continue needs efficiently and the clients

our can business way Another to rationalize is that we our facilities. simplify

we through efficiencies we serve will to small various the in strengthened Vegas our Canada actions operations, our in These streamlining Las and During our organizational US other year, structure. footprint enhance consolidating largest revenue facilities ability our facility into to reducing our and operational digits, low exhibitions for expect ahead. our continue clients improve same-show our grow and help and Within segment, continue at to trend structure and cost market this conferences, XXXX. years we single

sectors, industry. believe sectors the rates stabilized softness and these of have at growth from seen industry than we retail the have We auto, rest and lower two

This every the that took third impacted shows show from revenue rotation, events by two $XXX in first place quarter. million was three about by $XX XXXX. occur occurs our negative nonannual years our will nonannual occurs three CONEXPO-CON/AGG In the during year, quarter. million all show revenue of every XXXX, rotation from during XXXX. of about largely positive years driven IMTS in benefit that major will

third quarter. every occurs during MINExpo the four years

gearing Our up team big a year activity. and excited for is of very

the capabilities team making corporate by segment, conference and marketers exhibition the and during our higher corporate large, in with margin goal growth year from XXXX. the existing revenue is progress is leader XX.X% global strategic penetrate corporate The market. over and events relationships a the and As increased GES against leveraging year to great event

Komatsu, Bell Martin, brands and We like Starbucks many Helicopter, major Lockheed Aramco, Saudi with Halliburton, Hermal, partnered Boeing, Mile CloudBees.

Group Greensphere, quarter, well Aviation, business Food we fourth and JDA, renewed Andus. the new as business Fresh one During Summit as with with Pfizer, Ream,

ahead. and create significant success the We segment events. corporate at see immersive penetrating encouraged early strong important continue engaging to this by market, marketers and to our demand experiences see from We're brand runway of we

Ellen? commentary. I'll to over now And it Ellen for some financial turn

Ellen Ingersoll

Thanks, Steve.

the fourth of revenue million the during show EMEA million rotation, mid-single-digit new from this remaining was revenue aside rotation or North realized business quarter. coming the in year. revenue from of X.X% was $X growth and primarily quarter, $XX.X of segment the same $XXX.X positive growth show GES's growth. growth both prior up impact For the with segment show million, Approximately Setting the the result wins the America

of delivered for GES from earned did full grew quarter, XXXX. rotation a million. increased as adjusted million GES's from partially offset by year short-term a $XX.X $XX incentives revenue achieve the quarter incentive rate Adjusting by fourth for the show And impact XXXX or growth $XX by the segment higher by not reminder, driven $XX GES EBITDA million of negative performance-based primarily payout million. million accruals $X.X and variances, revenue, GES's full-year exchange about impact XXXX. revenue for unfavorable X.X% in

America segment to due underlying new growth This the North both EMEA and wins business the business growth. reflects segment within and mid-single-digit

event operating incentives amortization. million corporate offset lower declined XXXX, declined and XX.X% GES's at grew depreciation performance-based segment same-show adjusted degree, a for in the revenue strong from single-digit market As about as from we and of than segment, full-year revenue more of EBITDA Steve on growth conferences rate exhibitions adjusted revenue XXXX U.S.-based to to income due $X.X flow-through realized low accruals GES's segment our while growth. within X.X%. mentioned, earned lesser a the

the streamline operating GES a capital business intensity, with the network. low is to across continue and we to improve and business our ways already seek leverage

identified a served business cost fourth U.K. asset to ranging to the margin the U.K.-based our quarter, has During opportunities profile business. fairly the the we corporates market audiovisual U.K. in exhibitions historically improve across of utilization, This structure conferences manner from diverse to and with clients venues services and

intend about charge profitability be we in service our quarter, this fourth that more this serving forward, maximize utilization to during primarily review related account. asset we impairment We million so of can business. recorded to selective U.K.-based higher Going we of market $X.X asset the how clients pre-tax a

consolidated Pursuit. than was from lower were as strong we at full-year $XXX.X Viad as segment For million, adjusted which GES offset whole, growth XXXX of more by EBITDA at reported results X.X% up a

million consolidated flow operations the year. Our $XXX.X was cash from for

Pursuit. We business at at million deployed $XX million Pursuit expenditures, another for the $XX $XX toward and into for projects reinvested And million million growth $XX.X about investments approximately GES. through at we margin-driving capital acquisitions including back

sheet maintain a of balance We a with leverage X.X December continue to at strong XX. ratio

equivalents million $XXX.X year. was debt Our cash end and our totaled of cash million, the at and the $XX

were the $X.XX settlement Our pension a XXXX to and $XX.X that after-tax to million and improvement $X.X per share. includes union figure a was million well basis net as income This asset simplification GES. actions restructuring of profit GAAP after we tax, the for as tax $X.X related related which million legal discussed to and strategic withdrawal Viad to primarily charges year impairment of attributable related earnings charge previous at $X.X full after calls million of charges on

million. flyover of tax it acquisition-related costs totaling Finally, favorable $X.X about start-up after and million costs and included matters tax $X.X

Our items full-year per X% XXXX. was per up $X.XX from income in share $X.XX share, other before

lower returning a guidance share partially Our before in now interest. primarily cover Steve. higher per effective and expense adjusted-segment in growth our increases reflects XXXX and attributable back to our earnings income interest income to offset rate, tax noncontrolling for I operating by will And

income expect to reflects $X.XX expect other this This quarter. we compares loss-per-share at will items share, first a range positive the in improvement $XX before first per approximate the $X.XX to the to rotation of XXXX of For quarter, GES, we be and in show $X.XX million. which primarily

point, bookings. for And business period its we from between origin. long-haul one first Pursuit, experienced on risk either or future terms low Pursuit could in works some impact overweight travelers, possible visitor believe slow hard travel the XX we The the countries any Overall this and partners At we're it quarter our minimal is is to meaningful coronavirus, seasonally X,XXX for partners volumes not of while with have our source that travel given current to exposure we with feel about team in effect. in balance demand touring countries. so worked never

of present, between is are small could disruptions whose these the about the Of outbound affected approximately guidance our travelers are at group end will only caused Chinese difficult ranges The or for through X.X coronavirus plans by the March. visitors of travel by or the impact group At minimal us by million majority this duration Because numbers first travel of affected year. either virus current travel halt, it assume travel the October. May on and and to time, the X% is have China early full halt. the estimate visitors from quarter attraction inbound our our travel severity the Chinese-based be

million $XX growth EBITDA year, both driven at to consolidated the segment and about GES currently by For Pursuit. by our increase $XX full million we expect adjusted to

to full rotation wins. business of expect increase GES's driven continued by and XX%, about year We XX% revenue positive by to show million $XXX new

range the to business. We of with expect the strong XX% that about flow-through leverage due exists the on operating in this revenue GES

in million EBITDA as in $XXX adjusted We expect to XXXX. of compared the be $XXX to GES's million, to range million full-year segment $XX.X

million high by single-digit we from assets. year revenue across Lodges million as in and hospitality attractions expect to well range Park Mountain rest Iceland, and of full growth to driven Pursuit, of incremental of as XX% $XX At revenue the to XX% mid-single-digit $XX growth our FlyOver the

full-year to slight adjusted margin, million. to a reduction Mountain to EBITDA is Park the are reflects investments its during months slower than Pursuit's expect These these lower segment due Pursuit's million Lodges margin business. It May Pursuit's for ranges margins in seasonally meaningfully by of of $X grow properties. through $XX January expansion also owning the which support ongoing We when EBITDA in to part reflect about strong

of of cash at $XX And We from the expect flow Pursuit million $XX $XXX million. be $XX operations our $XX capital range to million growth full at million, of capEx includes year range million to the expect million $XXX in in which capEx approximately and to we to about margin-driving GES. be expenditures of

Additional our guidance that, in Steve. release. press with can be to found back And turn earnings it I'll

Steve Moster

a and ahead we're with about in in closing, In lie on excited performance far. XXXX us progress long-term that our bright year we've as this any achieved opportunities business our respect Ellen coronavirus, for Ellen. future initiatives With Thanks, impact to The pleased beyond. have experienced growth meaningful with XXXX the up profitability. not we our on and the has significant mentioned, set thus

we prevent that peak the treat And progress virus season. are Pursuit's summer and of be ahead hopeful made will swift to

be affected financial temporary. Although by realize be schedule. to believe accuracy still XXXX GES' show our any it's we over we impact that will impossible strong significant how will coronavirus, with any growth with XXXX performance expect predict to the rotation And

capital that to reinvest from operating business large cash a generate amount we during million show value. into to positive at XXXX the allocation about can rotation using drive $XXX expect GES flow of we disciplined of revenue Importantly,

and a where our the XXXX are generate open following the Vegas, future cash significant lead sky to that of offset also highest view in high return and new Las That negative three Canada, will investments has businesses partially show revenue holistic We including generate the XXXX. with FlyOver accelerate our XXXX, Pursuit expected determine will to flow Toronto. rotation in growth. to FlyOver attractions and lagoon margin Iceland help

at experiences segment share robust higher pipeline strong iconic runway capture the a we of corporate and margin Additionally, substantial market with have event in to GES. returns Pursuit at

that, call to and growth open team entire committed we've up what the work And their strategy our shareholder and value. in already very confident the Viad for of new I'm to I we thank questions. dedication. are maximizing that proud accomplished, and We're the hard want about for I'm with pursuing. growth opportunities will excited actively we

Debbie, can open the you please line? Thank up you.

Operator

Northcoast [Operator question Kartik come our first Research. from instructions] And Mehta with will

line now Your open. is

Kartik Mehta

and obviously, revenue Good And events business the wondering Ellen. having that success XXXX? for about, event the of And GES. what corporate would business on you corporate I'm side. anticipate evening, now talked you of of GES Steve and growth what Steve, the percentage for segment you're kind the is in

Steve Moster

Thanks, Kartik. Thanks for the question.

the very about So events are excited within we segment corporate GES.

in mentioned we was XXXX, revenue. our XX% think I of it

we've XX% substantially. revenue. grow a significant think total in good have runway. pretty We of We seen GES years. And growth that we've that kind of pretty coming growing And seen so forecast we the

It one within of fastest of has been areas the GES. growth

within optimistic we we we're And So excited our what are opportunities. segment. can about do that about

Kartik Mehta

in you for stand look happening terms are And you as the health they in shows then, the XXXX where of in at out, future, the what And Steve, metrics the for trade at? look some and of leading XXXX booking are that are and indicators I industry? some imagine you not of the as do

Steve Moster

as there's entire think So we industry. some at, well as the look I common metrics that

also We'll regularly. are are at number of overall which correlates that exhibitors the at the footage to the And number events. pretty look the these metrics pretty follows attendees strong industry the events. or those ties revenue and at events, look will of within that for We our square the

the of Research part for that or CEER out throughout comes the year. They're Industry Report Center

we in at growth. are single-digit health, what the those is look kind performing we at. we a that we So of same-show the good low digits. forward, single basis, metrics overall look That's When industry see think from low

we XXXX, of is Those There and the grow a we in couple which retail. we than XXXX. and still of pretty auto that the are with industry the overall. the industry, have we rest mentioned But see sectors that be some industry see the happening them would growth strength see to continue events in And in two overall, from we've the slower growth. that identified good we slower non-annual

Kartik Mehta

one all just the are Iceland any on to pretty any all I'm the XXXX? they question, as for Steve, season visitors travel thoughts in move just they're then Iceland, last projecting into a XXXX. you at FlyOver And the sure what having worries decline XXXX. concerns for or just at for since sharp primary in But not attraction

Steve Moster

know September Iceland item think opening visitation very popular. we've our is is you what in seen of FlyOver expectation terms of in year, the I Yes, still packs. of that last Iceland the of above tracking it with And ramp-up

We comments thing my most already risen phenomenal guests I are based during second the And in popular reviews to TripAdvisor. Iceland to that do getting mentioned from on TripAdvisor our it's scores. on

a with full Iceland. So really at I about excited it in is a XXXX think year of Iceland, stride our market activity in still and strong hitting FlyOver

Operator

with question will next Markets. from Tyler Capital our And Janney come Batory

Your line open. is now

Tyler Batory

Hi. for questions. afternoon. taking Good Thanks my

can also called of anything a can side? that segments? calling Are a I investments give of more guidance of are am on to about little business on color the wondering more some business. the expense areas expansion onetime XXXX in growth First you you that the support there there question, out business? bit that any on out? Pursuit that if bit talk cost margin in I And And is little you for the cost worth that and have the then Is impacting

Ellen Ingersoll

Sure.

is So items on talked as of is it about, the one the year Mountain margin, full we at the Lodges. bigger Park

is So the rest the lower of the May season than January to margin year.

are in we'll some and those beverage lower food last than growth our some margin this year have and traction. and segments, had also We our retail projects and year,

thing in and So in these marketing mix And leadership the key kind margin positions of side on growth we the into is other the are for include that growth positions investing gets digital well. then and as capabilities. key

we FlyOver So that's kind significant in have growth investment for Vegas and Key projects side. of FlyOver Toronto. on XXXX, the will Las margin

having refresh room well. a also some of and hotels refresh We as have and includes and project, that our food beverage

ones projects So big next the year, lots investments Vegas FlyOver FlyOver in going and but Toronto. of two Las on are

Tyler Batory

And helpful. the just That's then revenue guidance Pursuit. in also on

growth talked I think about you single-digit mid-single ex-acquisitions. high digit to

I acceleration saw of bit mean, the XXXX. it from a growth organic little in is an you

So growth which passenger, about in can versus you visitation growth the think talk your bit quickly? the growing for you expectations little a should revenue be in more per

Steve Moster

pack hotels, a our really guests. ETP we overall be And last we had going long have our we think continue growth as there experience have We seeing at forward. that where modest of our and traction, at to we our couple we have the in years, some will the for runway price side, over Well, the at of driven can that attractions improved continue the on we drive think attractions. our

primarily we there that is is where gain. So think

we We of in a also, made Tyler, investments XXXX. lot

park first went of what whether us live year, the the second the be of it's operation. some into those think Glacier food to of of properties, grow in they those XXXX. of the So lodging in or you'll West to are all all their is our or able see continue some terms beverage I refresh refresh at And and at RV year

of So would modest is say growth. is kind what packs I

is build these ETP will us. area some of XXXX. key another refresh the We be believe lever or then to and just be projects we year also second a And did pricing that going in for key of

Tyler Batory

to there still are those terms business. specifically? And you're corporate are of conversations things is your some what of of GES slowdown very What you with strong? terms in great. willing are then gears any having in Or pretty to that the switching helpful. Okay, hearing That's customers the on And spend accounts, events?

Steve Moster

fourth fourth of in budget quarter. The process. increasing planning we through stated the clients to the events to budgets on. And see was and really quarter. the have close number a to continue it to budget we went that their decide add did would as No, a That

brands And guests these and corporate experiences at events. creating think still value out of quite so the a are getting for the their bit I marketers of

budgets we in that area. so And see healthy

Tyler Batory

the is Okay lot cash to you generation thoughts seeing And there Any question M&A opportunities things, a last the respect With national on out be parks? Obviously, you're of many look what does of going this And on flow in of great. then pipeline what there things? at side the coming for traditional looking or like? are of me. year. beyond GES side updated to the Pursuit acquisitions, terms specifically, anything seeing

Steve Moster

Yes, about for we a is XXXX. are big obviously year It GES. excited

XXXX We also, we think 'XX. about are though and

We have solid some flow. attractions us continue other to that free will online cash come a that number of give

are a opportunities where Pursuit has position to and pipeline And of is strong what we that a in grow want both continue then these So M&A organic in organically I also terms to businesses. of can like quite aggressively we bit in have build. businesses flyovers say terms would we

we actively pursuing are So it.

that are to some deliver we're excited more opportunity. the And add coming set on shareholder about and We hopefully of value. the years in

Ellen Ingersoll

on then back with circle Kartik's just events. the corporate want And to question I

of revenue, a percentage XX%. is As consolidated it

follow-up GES. on to that wanted just So for

Operator

Sidoti Company. Steve our O'Hara And & from comes next with question

Steve O'Hara

Hi. Good afternoon.

Lodges, Park Mountain the on quickly guidance. the Just

acquired properties, of kind your Just curious, you time. expectations when you at guys had that the

And those profit? number the or me, lower? same in just the was better remind there you if you they in and what costs. And are included noted the of were are same, for start-up kind And start-up adjusted some Can then operating that or XXXX less costs things? more

Ellen Ingersoll

Sure.

for expectations, are about 'XX, they So in were Steve, Mountain Lodges, Park they and 'XX. our

cost, start-up about The holds. are you that Iceland? So talking

Steve O'Hara

Yes.

there of Yes, for release, XXXX? talk the to million already million is for And included press costs that of the operating if income $X out Pursuit. a expected Or guidance? in know in operating start-up is that the that taken income? of $X didn't is think I was I

Ellen Ingersoll

is. It

included For the XXXX, adjusted segment it is not EBITDA. in

Steve O'Hara

in what the number XXXX? And was Okay.

Steve Moster

million. $X.X About

Ellen Ingersoll

million. $X.X

Steve O'Hara

year step-up those good you with So a this have costs? pretty

Ellen Ingersoll

Yes, that guidance. and excluded we from our

Steve O'Hara

guidance? From EBITDA the

Ellen Ingersoll

Right.

And some Steve, well. of noncash lease expense that, is as

flyover cost. So on some of the

Steve O'Hara

space Okay. Because you're already the paying there. for over

Ellen Ingersoll

Correct. Correct.

Steve O'Hara

Okay. then just... And

Ellen Ingersoll

accounting cost. is Just It start-up let but sorry. Steve, me this, charge, in is it clear the an noncash

purposes, straight costs. accounting to for we So the have line lease

Steve O'Hara

Okay That just looking And helps. flyover the at attractions. perfect. then

worse there. I think or you margins been or the attractions have forward or that the think about think or that be these projects talked maybe wouldn't years from any way any ago, -- a Is by margins margin what's they'd maybe about reason there right there's few to to profile these similar the going better market?

Steve Moster

margin being roughly in did Steve. talked And XX% it I about the we flyovers of similar I results $XX and in the Yes, nature. We FlyOver other XXXX. Vancouver Canada, EBITDA in margin. revenue, believe about million talk roughly, the think, was are

down arrangement little based varies a the and It up and have. location both on bit, the that we

for us. set So strong and very favorable in the Vancouver have up market, we the location is ideal. very that The lease is arrangement

so negotiated from it may may a bit and what little the you what see fluctuate lease other Vancouver. locations depending on And be, in

a margins. the similar location. just varies based It overall, little But on bit

Steve O'Hara

that, when a get the maybe the Pursuit, you I is length about the real curve, when to long -- like travel looks pretty And things talk I a you maybe longer given and question. assume do start But guess, that. like then visitation you more lastly, like? have pertinent maybe feel booking For a and of for what guys peak things season

Steve Moster

types of about two Yes, with travelers. think Pursuit,

have far much which are which then advance. you have you in And don't get visibility group into. travelers, You booking individual travelers, pretty

we at lot scheduled group to starting travel first we in quarter, where a and the a group see on So the be are side, point the of books. are the materialize on

really travelers individual visibility QX. hit into have and into until won't we But we QX those

Steve O'Hara

versus travel of think kind group of And a about is way the there total? a percentage to individual as

Steve Moster

about, even Yes, it really by location varies Steve, the as asset talked within by location. we have and

group to and So me a it visitation. for you individual breakdown is between hard give rough

Steve O'Hara

the the a general? is just previous to on maybe numbers visitation in think seemed and have a then an Iceland, in Or or like Reykjavik pretty airport what question detrimental And the follow-up an issue significantly Iceland. down with the impact with there numbers. I looked Was the in travel visitation that connecting were on or within airline? they

Steve Moster

was And a last low-cost a went of other routes which airlines. to airline believe called lot actually these Reykjavik. I were Yes. like they of but of out Steve, year. there Iceland, fall out say, routes had WOW, I a based up And to of by want picked business, lot was of

we the what Iceland. attraction and see is we from within a our there is market. is market, about And a vibrant that and doing perspective, So tourism that we in the still new market visitation excited well are are

seeing assets are not from impact on that So airline currently bankruptcy. going any into we our

Operator

show We in this questions queue time. no at further

Steve Moster

in Okay. interest questions again your forward quarter. to look Thanks with you Goodbye. next and Viad. speaking We for your

Operator

And conference, you disconnect. participation, thank today's now that concludes for your may you

Pursuit Attractions and Hospitality (PRSU) 7 Feb 202019 Q4 Earnings call transcript