VVI - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Viad Corp's First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to Long, conference and Executive like speaker to Investor now Carrie today, Director would hand over the your Relations. I of Finance you. Thank go Please ahead.

Carrie Long

afternoon, for joining earnings Good call. you first conference XXXX quarter us thank and Viad's for

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

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

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

Steve Moster

you that the of the financial through for Carrie, to and impact provide quarters our healthy. call, hope COVID afternoon, XXXX. good insight you, Thank resume how other company of us crisis overview position necessary unprecedented discuss our taking safe passage an on everyone. we're briefly remaining give I to to results I'll what Thank provide today's of our liquidity we on are the side growth seeing as trajectory weather On the business adequate will steps call. you with safe you ensure and to staying and and are afternoon's all joining and this quarter times, first these

Following cover Barry I'll then discuss business. opening on the Pursuit come to back the David call to to I'll over business, GES comments, hand my our and

a providing liquidity financial results Ellen noncash with preliminary financial remarks pending prepared our and position, our update end will We including charge. impairment

want members their first challenging I dedication Before turning team during foremost, the Viad business, for and commend to our times. to resiliency, positivity these and at

Like order to operate wage our make in environment. health to protect help by financial furloughs the in this beat had members priority. in quickly reductions as of our clients, our number businesses, and a tough Nevertheless, we way of maintain to and unprecedented have position employee the team many we've in not missed communities one our safety and acting guests operating decisions

sincere and team myself our the executive entire thanks. express For that,

into moving our business. Now

largely months The the our quarter first X were of expectations. in line with

took began March some CONEXPO-CON/AGG of registrations space March, affected event by postponement in attendee In as as reach some XXX,XXX. spread more the we signs and than to X% were cancellations the with corners of began exhibitor of of the reprieve world, COVID-XX than less including to impacts There experience some and operational cancellations. early of all place floor

anticipating unpaid halted aggressive we and company's cost-reduction In the second a travel second on mandatory of credit increase for salary We covenants end line including and for our of and actions, drew with to our social a distancing employees all are in place, the time company. restrictions furloughs, effective bolster liquidity position, We position. and revolving waiver to March, took and event guidelines reductions financial and financial the very and essentially XXXX. by had activity However, our for off swift of continued cash steps response, obtained we live travel weak our quarter. across we've quarter implemented

to our nonemployee XX% agreed XX%, her to and them his XXXX. salaries of base typically quarter of each retainer in team management of by members second or reduce cash executive made by has Our its Board to our voluntarily of Directors reduced for XX% payments

limited have nonessential expenditures We capital spending. discretionary and all

payments future have dividend and We repurchases. share suspended

reduce client team finally, our management executive and costs to prioritize changes facing we've team made And to members.

company, In the addition of GES. to some leadership other be the be and leaving GES, of over taking will I Altizer, Jay terminations, President will

well, this As on know, pursue years many opportunities. identify bringing team is two for a ago. like of position you GES I GES led and work having leading thank Jay driving margin the various I'd at know to about board great to before Jay his

and structure nimble much better two putting more last us the organization, in environment. significant today improve streamlining the GES position to years, has to During create the undergone current cost a a navigate

actions road necessary is ahead. that's today and challenging the that extremely last steer to take, firmly I can company are one steps to are While Viad believe out to in place these GES through times. right ensure difficult the the team these challenging these the management

not macro successfully that proven playbook we with position. navigated are an with shocks, have mandate, disruption of to how if flow periods we a we We so we on again focus us our a in with reimagine more a believe cash prior stronger, and and presents past flexible one strict turning opportunity, to. emerge as liquidity, And run other once that this business rethink can

I'd turn like Pursuit. to Barry, now of the that, David? call David With to over President

David Barry

Thanks, Afternoon, everyone. Steve.

clear. to becoming Mountain at though, and the that's FlyOver in the At momentum, of largely XXXX. So well start and pandemic revenue the strong the with a a global end we Park up of Pursuit to the March, ahead year. of significantly middle February, effects the saw revenue and crisis came of with stake outstanding into the our And due controlling year results health of from Lodges By were of prior plan, EBITDA were lots Iceland. very more acquisition and

recovery. we working teams to health into shutdown moved and quickly work post-crisis one facilities with being other and organized authorities being both three regional So in countries, two the streams, mode

days, the and PP&E we the us regional literally supported members this More meal to bandwidth of decisions. to XX we've move health given program. team anything, communities organize in and has thousands authorities, past a community multiple along through fed teams crisis of workflows good than to and a decision through make quickly volunteer our our the driven In donation

and stand point travel not travel, are by and these we behind challenges. bookings impact those ones. emergency who strongly and domestic you, to lost of and overall hospitality, international the stay-at-home working all bravely out same were quarter impacted from global governmental numbers especially and find of those brands who in orders ourselves And many the are to cancellations. isolated are reduction It's among on large obvious we facing sick, in fine sympathies most and that resulting responders, that companies to have doctors our Like we our loved who offer help nurses of second We're

and far we the this into see have significantly acute said, shoots and extended more as felt our QX QX. are not thus That always were and green environment important Safety is in thankful our if material slower impacts our It time frame first that was question Promise, and more health a of was Last the from launched regional would how? X Pursuit importantly, No. been authorities. value. constructed Safety reopening, never be core we but using CDC which has week, we in

see on to we've the to to do members website. safely. them, can our OK. are iconic Pursuit the present host guests As on and you our specifics that that all ensure we can steps And locations taken team that about return

the XX up. to So our days, world open begin to and we're iconic fast forward seeing looking back experiences, locations FlyOver

Reykjavik, both over from in units reopened product we market. of last benefit hands of appreciate XX,XXX And and the visitors. pandemic. the We guests already Iceland week expect and while this the weekend workers surpassed visit our maintaining environment operation, a in FlyOver support for our moved to Icelandic global projection first presold that we Icelandic the for safe in our they've of to handily in support government unprecedented businesses as quickly of

we experience public and health Iceland's a as destination, our this of thoughtful FlyOver As and management crisis position renowned well. will Iceland believe travel reputation the country safe restarts,

opening Canada, and National travel in the expect Banff So National we Jasper facilities safely let's June. Western to beginning at to and Park of Park begin Canada,

expect visitors. less levels below with international We to visitation be XXXX

the do of traveling anticipate third the late we within usual. June, we date, quarters into fourth and have Canadians bookings XXXX. country more and in than However, well To

continue every to day. We take more

week programs that's called helpful, and team Royal several been including both more well cancellations we CEWS the Canadian as super we abatements industry-focused, to the XX% have wage members, Glacier has And Lodge. that very View For meaning for for subsidies than been took everything bookings, rent this Mount within the reservations been of at positive has enacted May and XX, has August, program. were ending up as Hotel National government the net Parks. from to new extended

will there they host great expect Kenai We Alaska, of do, safely head for and in north state be Parks staff. open the Denali guests and National the to Fjords XXXX. When summer to we'll we

impacted the in many we Alaska open business mid-June, accordingly. will be cancellation the by expect basis of our partial We'll lower to XX. Our levels adapt a properties attractions from departures beginning attractions and properties to and be prepared on because staggered cruise

obviously of and we facilities culture Glacier the be talk levels, Vancouver, for of we we'll but and Park expect of about demand. second. So next, Vancouver June. And our will city, enjoy including and visit more that means of to the that international around Vancouver capacity our that south the experiences Canadians will Coast Canada. based historical begin beauty FlyOver National opening expect in do Montana, Down amazing operating visitation expects West shrink on a down expand Vancouver from

impacted Over to allure area road so Glacier the of this guests record family a attendance anticipate low and overall be in with less of XX% prices locations. safety we and Americans, gas self-driving are will other than trip,

we've shown And The benefit made And great XXXX, back not we hard now will and demand Las power locations of track and creative in be looking FlyOver are the into finally, iconic, product In has Sky great ahead on that on that is unforgettable inspiring been XXXX. working spring Lagoon in well will from history to terms on late opening. progress dimmed. the positioned of XXXX experiences. for projects, be throughout future believe Pursuit the iconic made for perennial we've of strides But and on pent-up Vegas. looking a development team the Iceland

to back to So GES. talk Steve about over

Steve Moster

David. revenue set non-annual tracking corporate incremental with GES Through year. tremendous side ahead of and the of to slightly strong Thanks, an on all results to were this place with a events February, momentum year million overall well We X from take $XXX performed looking forward forecast.

Fortunately, the stay-at-home wide took major place into orders restrictions CONEXPO-CON/AGG March early of of result other a place went first as and events, in as the scheduled COVID-XX. before sweeping non-annual

the halted, As COVID. our in logistical essentially to help event our communities against battle activity we capabilities drew upon

time, ultimately drive centers resume members hospitals temporary and large-scale local event this into we're clock New or London, unclear sit We work. partnered short exhibition work important for largely or organizers. with other postponed the their we of in and determined facilities, the our convert restrictions This events to been to Edmonton, the of Exactly remains York shelters. contractors the X commitment around of Canada employees proud and and trade event through a at Chicago, in will will Where and of large be canceled by completed City discretion today, very activity when and the July. by authorities lifting has was

was it Just that to September, able announced events Illinois, until will yesterday, previously September it was X announced MINExpo, Vegas win officially in have Las reopening Chicago. client biannual we place And based take for plan events Woodworking for in of to work the And place in still set scheduled unlikely the that That International IMTS our XXXX. as event Atlanta and on do take XXXX to in be this a a that major third September postponing non-annual X XXXX. appears August. recently is the Fair, quarter, RFPs take that to in said, continue place this including on fourth we and for and late in receive books scheduled

is the comeback that industry ready permit. for a signs definite as circumstances are there So event live

to We their decisions made monitoring plans. and how exhibitions and are in the understand economic they closely local commentary to reopening conventions governments handle by intend reintroduction of

ability company operating costs, returns. those leveraging the high we as cost for retaining model hibernated effectively reactivate the to business decisions, While of parts to while wait minimize variable by GES have we its

corporate We return expect the than others, on will of and of business. side certain strongest our which technology, are including sectors faster X pharma our verticals

more design are this on more opportunity taking asset-intensive future that's better clients' build and less We needs. focused one business, to a our profitable, and

driving client smaller be continues while which is our part business, on our Our competitors to share to stay alive our to exhibition emerge in largest with leaner, nimble to challenging corporate today focus during struggle and the focused. expect When of will begin in more transforming this gains revenue we restart and more time. do business, we the and GES, mind future so

discuss Ellen? call turn our like Ellen financials And detail. to now over in to to I'd the

Ellen Ingersoll

Steve. Thanks,

still highly have the service normal expand began contract improve cost reduced seasonal to capacity variable, experiences the As levers us, conditions have a do allowed can down of labor-based business. business which we cost as to business, and structure, levels, business a we our and to us conditions fluctuating COVID-XX in this our for additional immediately were when patterns of not if We very able a restrictions very on Both demand the more quickly based largely segments quickly Pursuit, the half weakened. given months. than flex costs to act which core begin of pull coming operating At competency is occurring.

to are business adjusted costs essentially cost our faucet a entered on be events able the by with At GES, return, even return. We percentage entirely we until demand. stand and reducing ready of variable events semi-variable more our larger hibernation to on approximately back XX%, turn quickly an quickly based than X/X mode as

In a capital planned eliminated or projects, variety nonessential the capital other and both expenditures, development. addition reducing projects significantly maintenance to FlyOver took small we preserve the We to we and cash. steps of slowed reduced Pursuit growth two of pace costs, including in our

and beginning XX, Act. the under million near-term revolver, productive position our wage cash million, Canada, total defer our second from programs, on was sheet early drew cash tax as tax focus spending engaged eliminate adequate cash Netherlands, an dialogues $XX March approximately benefits U.K. our received at in capital $XXX U.S. weather we the April, quarter government in $XXX.X We we remaining impacts some possible or on and believe landlords local well to available balance the payroll we the various our the and have of amplified offered and We where jurisdictions and including the deferrals we balance as bringing COVID-XX. in the to management, million. of down relief At subsidies working CARES with to

This outstanding Given have cash $XX quarter. expect cost costs revenue and the reduced quarter minimal no outflow savings approximate during events postponed the in new million. swift assumes and will coming we've deep we and our our continued second of taken, receivables, operating significantly back actions the collection

and compliance of already the of our to covenants with facility, financial covenants financial credit the the we were at revolving have As waiver second received for we it all in end relates first a quarter, quarter.

room cash combined for as third This up negotiate line relief perhaps the into waiver, of with capital prepare and sources our impacts position, persist gives us longer-term beyond. we additional breathing quarter to to important and covenant COVID

strength, in pre-COVID outside sufficiently poised is working of capitalized lender are withstand and group to a position to our downturn with We trajectory. advisers closely that Viad emerge and the its continue with ensure to Pursuit growth

we interesting rebound will quickly events, experiential investment may As we bring downturn opportunities ultimately able to large pursue. believe David economic this to hope trips and mentioned, more than be

with in switching preliminary pre-announcement to our first were which in over our line mid-March. results, quarter Now

me results. are comment on working additional of The the of First, COVID-XX which necessitated asset nature impairment has these through. let impact we currently testing, preliminary

debt The and covenants cash do the shown preliminary comment therefore, tax charges do I the charges operations. release noncash impact noncash effects. include our corresponding flow, results on expect We to impairment that in ongoing earnings impairment will not not and shortly, or

XXXX. quarter X.X% have approximately final June However, GAAP results primarily we a the XXXX guidance. GES, which share to resulting at our than cancellations to do $XXX in February offset due charges our Form the no postponements the reduce postponements the later withdraw impacted and of pandemic. was by material $XX our by the positive causing to million, presented full-year financial virus were in file from first million to COVID-XX concerns, line expect show guidance due our impairment we to Preliminary cancellations with expect rotation impact and was quarter March revenue and up XX-Q, XX, original January while partially from us for first and original expectations, on

Mountain was to GES effects X.X%. is revenue XX.X%. occurrence fully the nonannual seasonally $XX.X our a we late and million, due $XX.X during with slow CONEXPO-CON/AGG COVID-XX XXXX, $XXX.X Iceland to Pursuit before or in new up of early were attraction. growth of quarter COVID effects largely acquisition the revenue was show March, or the trade although finished FlyOver This up results $X.X for This million, Park and began Pursuit due March the strong largely our quarter revenue to million than feel of was million Pursuit from pre-COVID a Lodges higher felt.

$XX.X Viad and impairment versus million before and items the excludes net in was costs, first to million the was acquisition, This And $XX.X attraction million recorded adjusted $XX quarter. attributable other charges, start-up $XX.X the million loss in XXXX settlement million, a preliminary million and integration non-GAAP costs, in $X.X adjusted versus of restructuring XXXX operating loss net and loss $X.X loss measure XXXX XXXX quarter. versus from of Preliminary XXXX Preliminary a first segment loss transaction-related the quarter. first legal million first as $X.X as a $X.X in well million the was quarter. was segment first up EBITDA quarter,

by EBITDA primarily the incentives GES in performance-based revenue $XX.X EBITDA the increased million seasonal opening and was segment quarter. partially segment negative elimination the from offset adjusted acquisition segment and negative increase first $X.X at of to Mountain GES first the in $XX.X adjusted in Lodges by XXXX FlyOver million, Pursuit The the due XXXX losses operating up Iceland. EBITDA of was million And quarter. $XX.X versus million of Park June at Pursuit higher driven XXXX adjusted was

move variable financial increased protect quarter liquidity help our position. be our extremely reduce to expenses quick into will will second The but difficult,

the second can, strongest for prudently quarter, through be are we to of lowest early to been GES Pursuit, the quarter. believe this. level is we to know, longer, business as and will during start of the you expenses travel take in locations said, of although essentially expected while resumption we At in the restrictions, place as to again take September. will are recover hibernation seasonally And maintaining hopeful as signs is beginning the slow we first June lift We've mode period events certain since begin see and the wait to that events. third David

balance partners. reduced our We've we our We've control. contact sheet managed lending prudently controlled the with factors close very and can maintained expenses,

to through to now brutal the and a events I'll your a in Steve, quarter are back Pursuit good footing with at concluding you, call And the hand cessation financial GES. quarter manage remarks. We bookings visitation the second third at for in and future of cancellations hope emerge for and to growing

Steve Moster

at the spread affected quarter impact for our travel unfold, closing, further first and remains the In bare we near and events continued the regulations state-by-state in minimum to air Ellen. Thanks, the as results a of overall planned continue being, time for term anticipate COVID-XX shift.

experience will domestic stay-at-home resumes. lifted as benefit GES patient the short-term travel more regional and Rebound, see expect orders a in whereas will We Pursuit are

to shared steps we to our we taken are near have other As previously, bolster ensure Ellen prepared and to storm. swift prudent the term steps liquidity, weather we take

this of through have uncertain than and as current believe we see management exit most previous the where pockets have We this are opportunity through business company of experienced team the the and segments we capable to environment an downturn. downturns We growth out and X navigated to re-imagine that map profitable time. demand leading opportunity an be as this our side more of

the our our for evolving better competitive the strategic business our as provide better to serve anticipate value improve facilitate conferences and way. and are a needs we business, in the some stakeholders position and and high-impact post order in changes the longevity of making clients, guests facilitating We events a our COVID-XX education and our believe of And networking we in vital to resiliency relatively a and universe. of economic engine, part corporate exhibitions, sales, significant low-cost

not be events been replacement worlds, has that believe most productive in the events we change our and focus virtual by and in of will virtual will don't. tested to live past meetings choosing likely face-to-face which shrinking along want change it. the will ones and go do But our with tested The in even In of again. may we will away. we business, industry we be They our footprint on which GES and markets

location choose will side, not the iconic home to experiences replaced, On indefinitely. stay people Pursuit and be at cannot and

venture world believe quarantine, our perhaps of again experiences explore places valuable once its the who be ever, Pursuit, will will to in out with welcome And experiences. that more ready coming More than at We be unforgettable amazing than be will new, pent-up for we to things. will out demand. we there guests,

questions. And for open we'll call with that, up the

Operator

from Kartik [Operator Instructions] Mehta. first Our comes question

Kartik Mehta

a in and that you you Steve from it sounds trough Is commentary the cash revenue usage. of to expect like accurate? kind Ellen, quarter gave and terms that second be of

Steve Moster

Kartik, second think what the impacts accurate, we're given now, that's Yes, minimal given quarter the revenue seeing it's I in COVID-XX. of

Kartik Mehta

And bookings at? side, May then today, Pursuit if of year, year of look think gave XX to of year last versus you May at last percentage I you a a is looked what are as you bookings this XX think XX, you I at May number compared on the but that it,

Steve Moster

little Pursuit Kartik, I'll Barry the let talk David about bit a bookings.

David Barry

Yes.

future period of to of of demand booking of give for hesitant a a guidance because the bunch in terms is pace. I'm and this lots So whole us

side. can come period where And went then we XX it starting March So and cancellations from imagine out stabilized the a the XX, weeks of other through to on. you we're

a that obviously drive be expect on we depending there'll property, market. Glacier, it's the because So range more less

affected. days Our still in -- international more so or having terms more bookings the than corner in XX turning we're we're visitation in But last places of the I cancellations. taking think is

Kartik Mehta

will to or from looked about year. reduce to not promotions? you year-over-year, tractions price the have you provide maybe last if property, price What that's but so follow-on. properties where a standpoint? Obviously, compared relevant, just the the because a not And maybe then at and Yes, be revenue had for

David Barry

interesting focused been price fundamental be on But anyone since XXXX, for There what's players pressure product, Yes. you in industry with for to a -- a followed a for could the the moving charge the price is, us I'll for it. again. if we've can fair principle point. get with look price downward be us very and great that's because Revenue and see. will you have people want will all deal

combination hotel airline fluctuate And we things, times. spend energy whether on and or of and be But we it a of demand. a so based you'll lot price, time see will on

So accordingly, price of to we'll opportunity if a on a in see it. certain fair we key and price and are obviously focused traffic, the is demand, to higher and quality If that. to property there will. we an The the want times is the where generate being for we charge experience be able value

Kartik Mehta

I make to down and guess just understood, had today last versus these to you And kind had get of start start sure -- year? take some take people have about to to I you Have thinking where places? of down you price are to booking

David Barry

dependent It's property. on really

can a cases, other in look And then yes, range the Pursuit of website, property, on. depending of see cases, on you if time year you so and on some in wide no. collection so And pricing

back generation daily set based keep season, ago, would our you price people if so on for it prices And change go and a a a demand.

move what's they arrival down and on dynamic, a really happening lot depending they're a and up So particular on day.

Operator

with Capital comes from Tyler Janney Markets. next Batory question Your

Tyler Batory

far. thus detail the all appreciate I

Just I a few the first And me. want questions on to start liquidity follow-up for discussion.

some you're the on Just table that talk you everything the binding here? some potentially at? looking of options capital. can about mentioned You up of sources Is broadly additional

Ellen Ingersoll

details at with go at to forward of and anything us looking in we're working I for great side of environment. on yes, now, work that the alternatives. but to the that a get can't other financing future group other some through on of looking and into are challenging would kind us go we the advisers Tyler, right this

Tyler Batory

Okay.

as the about, cash $XX that to Okay. of a on of get that to to Great. I what number? interest few trying details million get a CapEx you the provide And talked Just sense then assumptions to you more that number? can to looking in does and you $XX mean, that get include outflow well? just at were of million terms

Ellen Ingersoll

Sure.

all does includes of receivable And the QX, it It collections include burn interest QX It's in and million So some $XX that. payments that cash spending. we've it all from cash includes CapEx burn. also minimal is revenue. been our

Tyler Batory

Okay. the you to I much year? about of in Capex, potentially? minimal mean, a much amounts of the first the the couple spending. And talked How expecting And just how rest bit of then did level, spend through you mean, in terms long quarter? you've guys can do of next spend how ramp-up fairly little could at Or you XXXX? of there the in a spend think a I you be low quarters are

Ellen Ingersoll

the the have only we've projects. perspective, perceived minimized also from So maintenance certain that CAPEX And we CAPEX. CAPEX to some we then of the CAPEX maintenance essential were in growth middle of on

it's unless minimized we've the of CAPEX all essential. spend So

Steve Moster

way and our as put ensure a construction. brought our as David said, spend our to about it down is, had just guests minimum, safety those mentioned, CAPEX our Ellen Tyler, of FlyOver the employees. and health we've that think to Yes. the on we And a pause, items

are projects two resume hoping those on later. so to And pause,

Tyler Batory

Okay.

side and helpful. appreciate the Okay. then just things, detail you've the provided And That's far. so Pursuit of on I again,

both How at should address in we the attractions issues made on think of Pursuit, the there, then some and of the the of you safety well? side out of are to hotel rates as about given things that breakeven some terms on operational capacity just of changes some

David Barry

question. Good Yes.

accordion. it think you is, interesting as what's an So about

facilities. and move going to you're shrink costs you're to going So down

hotel, but scale distancing social operating in up one having and So corridor when may with scale you think open, the instance, demand. to check able guests main of we a we're might on based you that for into hotel be entire but hotel down is two or corridors,

on have focus and of into view breakeven our we very we a accordingly. So businesses. it specific And each manage

on to operating side productive. it the And a we're focused we're on that not cost adjust having we're and that able ensure be so as something very of time, waste

Tyler Batory

Okay.

in mean detail IMTS can all. on of side postponed happening and then refunds Okay. at I of terms a work? just provide XXXX, being GES Perfect. things, And MINExpo mentioned more not bit until you maybe you the how cancellations little

Just pushed your and of off in some how are terms cash things terms going to of revenue in these work shows of getting recognition?

Steve Moster

Sure. about the in quarter, in some And, cancellations Tyler, as seeing we're balance well I'll talk as of the activity of first the saw the year. we the

So went course, the in were recoup we're or cancellation, were a and of show, some that a day typically, had canceled that in work preparing opening. into at some open what we events March, able they cancellation, of that stage typically trade the you're cost happens to to of before the the And the in preparation. event

And of we there's put work ones less had contracts advance work involved to they're events. the But fair amount far other able less in typically cancel recoup. if where to that's that are and those There how therefore, enough therefore, into work. a

Tyler Batory

it leave We'll you much. Thank Okay. there. very

Operator

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

Your line open. is

Steve O'Hara

Yeah. of maybe for I XQ, talk taking potential assuming a of guess Thanks can state my maybe you in about the similar that kind for I guess cash rate burn, on GES? question. just just the

that better. look, it to if What a you kind case? normal Pursuit? Is within gets a case? return I little then assume see the bit of Or might And be that the gradual does that

Ellen Ingersoll

at well revenue rapidly changing this now a canceling position given Well, cash as shows guidance in really I'm some GES. talked and on of EBITDA. about burn or environment, give the Steve And Yes. Steve. to as not

I we're costs. mean, you what pulling all levers me to doing, So we're reduce let just though. tell

but liquidity. So with And the cost have come we're will before. having we not conversations on, on, our revenue productive comes sure back that back lenders adequate making the and as the

we're waiver QX our you As amendment. on saw, and did longer-term working finally with our we on now a lenders Friday of financial a saw covenants we

I doing position a in for we're we liquidity but I'm give everything the of QX, not can So guidance side, at really, on QX to time. kind this

Steve O'Hara

Okay. Pursuit would no nothing But I there's XQ improves that I maybe? a reason But in would that mean XQ would nothing, there's worse you to worse GES? for think as that be bit. as little in make get long mean there's it think maybe there

Steve Moster

events have Pursuit sort side that as I that to QX. Pursuit. and talked way are we're our and adjustments scheduled along. Steve, it in at what the David We're We operating QX obviously, are, at go GES. we in demand the of evaluating think and And see do about business answer both constantly making costs we is

in The So we'll when forecast to QX But minimize and this bring for of things at a X. the how or impact labor be point, are moving changing quickly. and not back giving prefer in we that. would judicious is order landscape

Steve O'Hara

marketplace, can I and of just Okay. emerge about some No, you're emerge kind of All contemplating that's I right say maybe talk that when better think, to fine. meet stronger the things then, changes you you strategic and stronger And the making, mean, right. now?

Steve Moster

exercise. white or white speak we Sure. year the exercise about grow, about the future. simplified And like strategy, than GES. our more of think I'll kind we started, which a And that at ago, to a think, should look white came transform sheet a of paper little into going took talked specifically we paper It's business bit I out what

business. of would Steve, opportunity well and somewhat had there's terms of always do And the both hub-and-spoke that our move model towards we've expense, of us, is to So to hub more in And our facilities what continue for spoke. operating headcount. as overall lower to we terms think in a

So what it's it's and other is had in a, but services. little we've bit leveraging going that back spoke, a to hub before, which of just

Steve O'Hara

Okay.

hit get risks you how maybe mean, it think you do wondering, how been. But have it XXX-year I think And like longer-term the can I in you of that lastly, business the now? do just airlines mean -- to I been I'm really do types a just Okay. little you talk kind there of -- I about bit, the is Or obviously, manage mean, current manage out business you like way about, maybe once mean, for through did, then you event? have about managing these almost businesses got period. you the kind of hopefully, how about then with managing, your the think but seems too. And you've can't squarely

Steven Moster

Sure.

these believe that coming are are They're irreplaceable. the here Strong out Pursuit And the and to assets A on be not are two we own things modes. we the going welcome assets going the of And competitive pandemic ready to within at these -- have going other these that amazing iconic than be We businesses. Pursuit, to And side stronger locations guests. ever. forever, business are there be away. we'll

again, back of with later come that in terms will last I over events plan to Fortune been and from tested of the coming the as year always they're And come and events believe their they've we We in weeks GES, what believe starting clients excited for time, companies their well. In on face-to-face XX% into meetings. hear XXXX. and over and back that is that, the their work X,XXX value they're to face-to-face few have meetings, this participation been events resilient. We of face-to-face those and

So this that will execute have specifically reimagine strong of operate how events, on we and both but valuable incredibly side we we are that and can these a the belief opportunity, businesses believe to take return. GES we

David Barry

give Pursuit just you a and the on pile side. I'll sense on

XX interesting of day from right? what's This is, we've learned, is think So home. of working what

And I the think business have do the anyone the of afternoon? learned on it's glass what time like about for some home. all of do within working we've in things all that's a us, you call, wine what lunch. you It's or from have whether

understanding that. you efficiency of then about But and So importantly, learned breakeven you give can think facilities. is real-time I'll so example more of about really the flexing efficiency and you an

than different going forward detail. better at of it we've that really margin. that going were five been to of strength because we're out good we But And be really the before times in because figuring

the open as it's thing other differently. going world is, opens, to The

airport you when you to go quarantine then land. And of you're there'll on. so if can't, some form in at of world And that And the be a test the you news, is, opening you'll well, of things COVID-XX to be your clear, you one is and the to if Iceland the on tourist. So interesting for with get free if you the then even saw on June. that XXth

So the merging going of science, to data, the way tracking is going to work, the is way work. the information

look health doing Disney and Shanghai and those all If from what and you things. go at code they're application of the and

learn. there's to there's of look And businesses been each history, the economic over to back situations, history then adapt all XXXX. So alive cycles. -- in in these in We're the And are went XX been we going you of going if in years, Brewster, XXX different quickly.

a does as else group, So pandemics, experience nobody we've terms how we a don't learned businesses have But return either. in of quickly. bunch a these of ton on

you the going to go we've see which, multiple people they're over history, return go locations, iconic the seen it So safety, if to to where want destinations do quickly. look and safer times, more

go. learned a better efficient and get and of I there, just we've bunch as So things more we think we

Operator

[Operator Instructions] Barry Our question comes Haimes from Asset Management. with Sage next

Barry Haimes

few a had questions. I

there First, sense versus what of on is by a of overall, tours Fly? car rough the Pursuit arrived side, percent

David Barry

on It really depends the destination.

from And the probably other from some it's Montana, the United primarily the if glacier so visitation is part Banff within States. comes In state country. other generally if of in XX% you you XX% international and geographies, drive think at coming the and half western traffic, of look Jasper,

its particular dependent orientation. So each on one is

Barry Haimes

Okay.

feel one-third So put one a I mean, in together? that Just or overall, you is rough when XX-XX two-thirds, it direction?

David Barry

safe is I think XX-XX. estimate. for a XX-XX your estimate

Barry Haimes

now now feel are bookings. to the also And then and some where we're right to we for some on starting after new cancels Pursuit, of get a Great. get

and that for to occupancy ago, now look were a feel year say, you're at let's look for, the summer, like? what as compare you If to might booked rate that then July, August, any

David Barry

I'm right No. Not share to now. willing that

situation is, a the to back. we're and interesting starting So What's gain good seeing, momentum obviously, evolves question.

And from looking you information in particular searches everything it to people web at see how about vacations. can are

that now have. to believe what months. that And so upon continue will summer the continue I build And we we will through

Barry Haimes

And enough. on Okay. one Fair GES.

competitors maybe be there, some changes You structure. alluded to the in some fact that out industry weak there might

a in the might what us give that more a medium-sized versus that like of hands small, industry little accounted are sense of more might be still what percent players risk? percent you be at large bit Could of for folks yourselves

Steve Moster

have you players is What Sure, A there our in are of it business two about we're I part Barry. and in that tell is, where you primarily would space. contractor, two a different to general large parts. think

we where an clients really The corporate of is more other our agency, with side of work business directly.

have three new that's a business. that's corporate our clients able of seen the come weaker storm that based the that the weather and more go the weeks, some win over in And fragmented to safety, conversations weaker with been to to on out clients much corporate players happening, clients, not out fleeing out where some larger players and of going we've emerge that's industry, and I Really side. the are activity corporate other of and to pandemic will last corporations

that on it I to industry agency than side pandemic, and the a look a I and general both the on went lot So the of to different have contracting think the feeling in is side our going that's business.

Barry Haimes

just to And it. the the clear exhibit about XXX% contractor side, that sure Got make I'm you're construction? talking

Steve Moster

of contracting The production is more event. of the the side

Barry Haimes

way? the It's other

Steve Moster

both The events. well as exhibit their of construction agency corporate as programs, side is

Barry Haimes

it. Got

the to There call further presenters now are at closing back no this the turn I'll time. questions for remarks.

Steve Moster

I you. and Viad. challenging as their we'll families talk you Well, we are that are to and listen, healthy. your and to our times. Thank these in today I for I group. time want investor interest update their hope everybody know thank safe you soon And

Operator

call. conference today's concludes This

You may now disconnect.

Viad (VVI) 15 May 202020 Q1 Earnings call transcript