VVI - Earnings call transcript Q3 2020 | Pursuit Attractions and Hospitality, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Viad Corp.

Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded [Operator Instructions] I would now like to hand the call over to Carrie Long, Investor Relations. you. Thank ahead. go Please

Carrie Long

thank second joining quarter and XXXX for third quarter earnings you morning us for Viad's Good conference call.

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

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

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

Steve Moster

and Thank you, results of material company pandemic are the each Clearly, for I us and third we're to how members continues our position. you pandemic extra our I'm and move way a you're making everyone. Carrie liquidity COVID-XX afternoon and grateful call. provide safe industries afternoon's team our impact review in quarter today's healthy. for our good forward. all staying this we'll our help efforts to the call, businesses and Thank hope On on we'll joining into and insight navigating the

and that benefit cover to create of EBITDA was reopen the more cost each steps structure generate more the I'll future. detail a with as GES us bright spots. preserve shortly, will able As quarter take in liquidity David to important lower its discuss surprising variable Pursuit several positive later continued will in And during to geographies and

the with start quarter performed quarter same happening cover far this to will some call, time. our our pleased unprecedented the liquidity business with below we how across the results I'm call we happy strong year, a toward David? While highlights. liquidity with results first in like Ellen the position. finished that to I'm the third were let's of I report period but Pursuit. end color last over more to David and what's on would financial turn provide to And

David Barry

and us results we for has expectations, Thanks and long our Build, guest the they Each regional largely our the of and remain strength operating of and that middle collecting things of geographies haul Remarkably, and demonstrating resiliency anything, so worldwide is initial a experiences this EBITDA. quarter in Pursuit international Refresh, delivered Buy pandemic. Steve. due the close strategy, beyond business of collecting that QX delivered borders memories strong Pursuit taught tourism the it's local reopened as important in strong, limited even At our third the inspiring if the quarter value know our of positives global demand serving demographic to been COVID and experience model, over while than was did more destination things. successfully a unforgettable, pandemic. iconic,

deliver We standards the who an members work COVID so maintaining safety. their highest guest our hard prove are for team while thankful of dedication of experience, and the outstanding to ability

is unit. This a Our faster, team more and teams now operating as to highly emerged capable with contented have of and adapting more even circumstance. responsive dynamic rapidly environment a changing support

served pandemic experiences in Tours open adversely our to tourism, Kenai and local a Western while of open a our domestic our and healthy summer. had each engaged and across the performance small and Talkeetna So, with saw haul Alaska, Starting surge Alaskan solid visitors let drive but spend from haul and at get remain We we market season Down domestic we minutes long of few about a inbound States, strong finish and me visitation impacted population late of at talking the guests strong Pursuit. throughout managed Alaskan United with the the benefited a long Montana, XX% Lodge. travelers. clearly being Fjords from in our the

in between the Park West Park concentration outpaced XXXX guests were year-over-year, West up around all of occupancy and season, Glacier remain XX% for hotels and $X Average XX%. results four majority The by Retail Village part West was the Cabin the at and particularly closed the the across at from recent our XX%. volumes our side at from Glacier for of benefited up exceeding of two West in Glacier park. at RevPAR hotel to Although revenue the National year Glacier and $XX East prior properties we've XXXX. daily business. year collection strong with ADR performed our Performance properties Village quarter entrance and rate prior RV of the investments exceeded was average Glacier $XXX. Park strongly with

and and saw Moving strong properties average daily relatively Banff Jasper, several occupancy the rates generating year-over-year the North hotels, growth, XX strong rate. we that of are RevPAR,

others on slow-rolled the completion earnings when returns In located attractions ADRs feedback, capital XX. the in in experiences guests' seven reflected successfully This CADXXX and And the this increase such and be increased and we summer, year completed was across pandemic. Farm iconic hotel properties prior X.X% most Specifically, in the the + be part hit. And certain we challenges provided important now selling to has of ability and strategy Jasper NPS Net right of occupancy from the at from Jasper prouder four outstanding out. saw pandemic hotels Elk Jasper putting for quarter our visitors average to Avenue guests couldn't refresh low may rushed our as despite aggregates plan to calls, the some the launch most recall an new happy at the all above proved the QX Making ongoing and experience. proven with year in in to the of weekends XX% time in restaurant ADR shelf Scores. of to Promoter our summer, projects, we the prior the the is DNA. XX%. business. our you the prior the Fire Average sits seven this our an We of Banff. lobby of in & saw guests' response of and And immediate received July, hotels has refreshed the the is which we've

Banff, the potential the most a the at has top concept world. enjoy iconic excited look Fire two Banff attraction car. we're where feel XX-minute awe-inspiring XXX of spots custom Pursuit's a tour number own and board Banff As to guests other It's Gondola. about ranked vaulted we of launched the and Bistro restaurants think the XXXXs the second & extension scenic a while August, of Farm inspired touring new only to that around around is one on Sky for one our in of on located In the have a open markets can TripAdvisor, vehicle top into newest we vintage that and number touring, really

top Finally, birthday our number that report first for that government Iceland I'm choosing effect The their in guest Icelandic near are the and and keen of mix boost terms to to driving Iceland to for in has at government-issued issuing been pleased included travel mostly visitors we've in fewer turnout a continue Reykjavik. redemption number with still spot FlyOver and help strongly we one felt pandemic. long-term to to be as positive Iceland, now FlyOver pandemic rankings to court. visitation vouchers. Canada to that in FlyOver citizens redeem pleased economy. closed locations and we EBITDA believe ratings being the in of Vancouver, We're attraction We're great regional pleased in on local, popularity FlyOver and Despite turning favorite of our our and In of Icelanders borders during we the travel our continues the the as visitor management climb business attractions experience. and managed the success their and rocketed Content to our were TripAdvisor international global things FlyOver to two of September, of local yet all all celebrated in in the point very very their do the effective Iceland. of voucher Iceland the and voucher. generate

in hospitality financial the During remain focused satisfaction, October, strategy we're FlyOver Vancouver. challenges to an the execution values of showing be and in Halloween our in drive member these November, our profit Iceland dual strong during we'll Team feature FlyOver the continue core In operating exciting of despite on of guest new unprecedented feature engagement, disciplined some, Canada ultimately, and and times, chain. importance our strong member of out humbled will and our we I a results equally of culture. our Earlier by high we our of the marks the midst a the XX categories hospitality year as the results. Promoter speak work. in strength of Net our in survey, staff indicated intent mentioned exceeded eight and were Scores team Pursuit global which great which place engagement to to recommend pandemic, These to and strength in most of prior team showing

track while expect team Sky West this T-Mobile MGM, Vegas on as the underway its cash begins of XXXX operations to a well-timed about next ADR way strong that the and down be the this trends all attraction, and XXXX gives the progress strength. and necessary XXXX pacing many and skylagoon.com. are investment, current that restarted some Lagoon Las online coming progress on by time Wild positive and world cadence. itineraries Xst, the experience. we're the us Iceland, strategy in on ramped ahead encouraged Arena. on to are we're our make Buy to The remaining levels. adjustments confidence last at projects season. Italy, in as proud is the FlyOver tourism trip opening, peak of Vegas, of canceled confident the so quarter, for as our in structure XXXX There's XXXX guests our see related pandemic we're in deadlines. our properties late much FlyOver in year, We're Filming fourth and to restrictions not you we're locations, a our year model, focused well for the look construction be flow, outpacing outstanding normal a will are very directly team. anticipate RevPAR on be on summer of operating track many pacing we for are of travel On we very more of Back Build, can of guest production by staff lifted bringing We excited we what booking on to pandemic same summer's made of return could and spring for which closing, meet an to for attraction our seeing which our great many least will planning we a XXXX. business of And our position from September our all two in of forward major to no innovative emerge fall which remain the off of travel talented focused is that and Las As and Park season. are construction as that at opening trends. in Refresh, And the At we're rebooked and the strength have In at XXXX the manage pre-pandemic season, efforts relatively we ahead and coming

revenue EBITDA back to As you Pursuit's doubled in ahead and you. to prior we're so growth and exciting to XX journey. know, COVID, XXXX we months focused resuming the Steve

Steve Moster

David. Thanks

quickly live ensure switching acutely taking GES Now event pandemic, exception. we I'm and very by no and affected minimum levels. cancellation on difficult the to to of to other When team necessary necessary hit not has COVID-XX we began been the stronger actions the GES, and reduce acted pandemic only over we costs controllable is to see incredibly come widespread but to for the proud yet postponement, out event side. survive, industry

discretionary optimize that greater and and fixed changes and delivery model. of into by approximately We By for and costs. about had to the also longer network orientation. term eliminated XX% were wages XX% transformational bringing delivery our the we reducing year-over-year our expenses up of the capital, quarter client benefit both made service by SG&A our we structure making lower some and continue Total our cost near changes third the decision to our flexibility quarter, costs, accelerate service end freeing permanent third to provide

in progress delivery facility made drive operate During footprint we the physical the quarter, reduce we company, down to network. transforming changing and Across and the we are office warehouse our way our fixed costs. significant

warehouse markets at from We a more into to consolidating fewer or facilities And has are range more model supporting long a to around overall working shifting model country. for and home expanding spoke of an employed eliminating cost. GES office-light service major people we're hub warehouse our by the remotely. space the and events with hub lower

So, this we hub. next to a the Vegas San completed in of just to serve production from sale In as Las taking and clients our Diego, warehouse really stand Diego, is that approach the San level. ready primarily

end lower for exit facilities that vacate address was the we the intend going more create exited more year variable We and a highly supports their service which during Most our to to that lease, were the to leased plans these at needs structure fairly lower There lease by and end. to client and are forward quarter a clients. our facilities cost near also to further facilities three of variable ideal. and additional so expectations orientation, as responsive or timing of more cost the we of Hand-in-hand also announced is the facility comes continue reductions of transformation with structure.

our services the U.K. our shutting business of and instead During the in in visual U.K.-based utilize to the third-parties EMEA we third support audio clients simplified needs market. will quarter, by service AV our down

outsource additional to the historically services house. expect company we have done that across in We

us GES freelance clients. and to various million costs These draw from and for needed facilities about us leaner facility manner than our pool us million $XX overhead will up the variable closing that into more our a Additionally, flexible from a Through to and and support as in flex other making to the we're over customer changes developing will changes annualized flexible network. in removed transform give and ability U.K. in we're business, model proceeds personnel to enable to reduce talent $X raised excited We're we've in exiting allow and returns operations the AV we've as cash demand took organization. our grows. costs we very more quarter, the a much actions and third our costs service

tailwind flexibility to some delivery industry The will live as Our including model is reopening world places Middle new facility the network China, select the recovers. with and us improved unclear. today, service we Europe, event recovery in U.S. more as of as in the well around profitability industry cities nice provide live remains and parts a sit for Where East, road the events market and the

reopening cautious Group hold industry scale We Exhibitor fragmented. particularly nearly by of conducted U.K. the in pandemic term of GES is our suppliers their strong business. struggle go market extended until a share, opportunity of space expect XX% and March for the will to an competitive survey out the organizers we're and exhibiting our like demand to where uncertain that industry stay of prospects the competitive large of remain suppliers pushed However, companies events, or Media are highly A set seeing has well-funded stronger longer business. on for impact in either landscape from the gain remain live about be corporate This companies business. other U.S., recent back on optimistic to their future our revealed XXXX ability despite events to and is The affecting the face-to-face our in industries in forum. participate to about industry

during cancel prior safety interest development our difficult believe many expected decision a precautions in this space events, stronger event to activity reported the returning the than this strength taken. Although encouraged strong to And live business in-person show recent I'm appropriate or postpone of are overall time. by attendees canceling. organizers events still if We live sales category. are have demonstrates to of and the also many exhibit making surveys exhibitors

the notable XXXX increase seen corporate of XXXX. exhibition Our line clients. we've RFPs And in with for are a value bookings in pacing for

ongoing for ahead we While and firmly early the believe XXXX strength be our clients transformed be by events. cost to and concerns orientation. the We a flexible highly GES preparing challenged COVID-XX looking a will and will return will market client of in that continue restrictions, recover service expect live are new of position and with strong structure

new rein When are a will navigate clients quarter across more to controllable the to call and activity event we to now continue resumes, our we close costs in As way. discuss we turn shareholders uncertainty, Ellen? while keeping be I'll for business. Ellen detail. we deliver profitable the results the third a drive near-term more over to our structural ready in-person important on And in change

Ellen Ingersoll

Thanks Steve.

at net operating segment quarter the our to the income million was was income XXXX Net $XX from million was our loss loss helped of $XX.X liquidity of EBITDA third quarter. the was attributable challenging, restrictions to million $XX.X down due and very adjusted COVID-XX in Viad efforts quarter, in $X.X million a versus Revenue $XX.X million, loss from more quarter and the The reduce structure. XXXX and the net strong third us restructuring a and third to million, to transformation GES million, charges related XX.X% XXXX the XXXX primarily lower significantly Pursuit structure with at third position. to XXXX efforts costs of cost to flexible included quarter. The GES create versus finish but quarter revenue million down the third cost maximize the $XX.X continued $XX.X travel Adjusted actions transform was $X.X despite segment pandemic. primarily

charges included and net non-recurring well as million GES as quarter and GAAP as $XX.X work completed before down on million negative from largely million, approximately the segment startup Diego from $XX.X driven was excludes other net earned share canceled and for revenue in was was of the This gain loss our and The measure restructuring million. of third storage XXXX XX.X%. integration, quarter. quarter. third and costs, million $X.X $XX.X This a non down rotation $XX.X approximately other of primarily costs, during as related impairment applicable. by million, compensation $XX.X events. hybrid expenses transaction negative and Our XXXX San cancellations adjusted acquisition, items virtual versus negative XX million revenue well income EBITDA GES in shows attraction the which facility a of result decline At show was as postponements with

As Steve cost discussed, highly improve and In with well the has emerge structure a cost footprint. variable point year-over-year changing cost allowed post-COVID-XX. and GES the significant reductions eliminating we pandemic. cost as SG&A swift to quarter, costs, is discretionary taking structure during significant us XX% third to make strides GES' lower wages about reduced and breakeven as our by the by facility

As reduce roles employees EBITDA Across to positive $XX.X reduce adjusted was million, the restrictions visitation ongoing other from in facility changes primarily less to further performed workers use driven by on to COVID-XX. We ensure and GES, level we peak other due At decrease fixed closures opening to and favorable expected XX.X%. we able Through at EBITDA segment quarter. Pursuit approximately profitability largely end, border million third guidance to appropriate by lower versus as manage positive Pursuit, leases costs. costs down to reduce lower demand This our maximizing at was property the were revenue at costs. efforts made to control XXXX well our our and EBITDA to expected we'll prior maximize third stronger analysis during or carefully and at breakeven temporary and quarter. full be million $XX.X this seasonal time outflow approximately dates was the This to million. based closing we than Pursuit quarter. Pursuit quarter prudent as determine salaries than $XX.X cash limited Pursuit is outflow the working during operating capital operating costs we due $XX.X

area from investing were million. from was about at more than at the of million, expenditures of flow mainly and for cash other proceeds Our $X.X quarter approximately capital $XX.X Las which GES Pursuit warehouse inflow million at capital during the attraction. assets, Vegas activities offset included San expenditures of sale FlyOver Diego an the $X.X approximately which The

XXXX, million $XXX.X second our $XXX.X As of from quarter. down debt the end XX, September at total million, the of

to which obligations, with the lease balance quarter, until we revolver the million end resolver as matures our quarter $XXX in the XXXX. quarter XX, in amendment financing third financial the down comprises amount The $XXX.X repaid August, relief provides total October of us to million of XXXX. debt we debt remaining secured credit of During outstanding outstanding million at term revolving September primarily of bringing $XXX our The facility, Our longer XXXX. covenant the balance

issued quarter required waiver covenant million, down to our of step XXXX. with at available revolving that Last million draw investment we're perpetual million. maintain a with the stock and $XX.X period, minimum newly cash During initial quarter, capacity $XXX.X $XX December to commitment million an $XXX million. liquidity ended on preferred we credit $XXX made a to with of We of delayed this additional up in of announced third convertible of XX, Crestview million $XXX facility Partners an

delayed Partners. XX, and that aggressively strengthened can cash, The ensure liquidity secure financial draw actions September $XXX the to total that approximately our mender of commitment endure have the liquidity we additional revolver to available have capacity, taken million, preserved Crestview and flexibility credit needed and XXXX, reduce cash, our including provided from costs, was As facility capital, we position, pandemic.

expect for at time, on briefly not to operating of slow reissuing quarter seasonally burn GES $XX be our financial and a assuming we're The will will to million $XX approximate remains our million. revenue, this fourth Although at minimal we cash outlook. liquidity comment Pursuit guidance level like I'd

fourth projects quarter, Pursuits about Vegas FlyOver We attractions. capital spend to primarily continued during expect the development on $XX on Las of million the

will forma a million unprecedented to and available of We liquidity total year position liquidity this of believe the end position their With we outflows, or toward quarter through fourth pro more. estimated the end $XXX time. business $XXX track at at we million continue third navigate as this protect that of our quarter the

we forward, remain our Going while costs revenues expenditures. capital of will level minimize continue and regarding judicious be challenge operating our to

primary secondarily, the the Vegas, Las and Our to first growth already is Pursuit development Sky to and focus capital pandemic withstand FlyOver Lagoon. of for complete started the projects,

to During projects right other million $XX perspective. complete expect and that Las on Lagoon we Build, dates. their fit liquidity approximately XXXX on to strategy opportunities Buy that evaluate time opening for XXXX, startup on FlyOver spend is we when capital act Vegas, continue on time these from can to growth minimal planned the Sky And a we with Pursuit's Refresh,

Steve Moster

Thanks Ellen. business. Clearly, current and challenging environment the is our industries for our

responding the caused to teams delivering opportunities temporary pressures in exciting through our successfully are creating pandemic company to on to profitable and this was Prior strong path an value shareholder period find COVID-XX, Our new growth. the turbulence. navigate and the by admirably consistently

we in had pandemic for it proven of record returns. the flow long-term, We the opportunistic the significant again We of an cash believe by of and to well-positioned space be businesses reinvesting free pandemic. other have that generating high our and a are once strain disrupted track been acquire endure to

cost unforgettable face-to-face our experiences connections drive replace been that to and replicated. to shareholders that, this believe cannot dedicated continued collecting be working for possible. experiences provide the effective growth. and clients all in We assets a with interactions. and committed past far up delivering inspiring Our call business that more persevered. and things, again make Thank by Pursuit's Viad. and to in for than employees and means your powerful and important our guests events collecting you events by in remain downturns is cannot And questions. to that in-person the support world-class live shareholders. value rich extraordinary iconic for hospitality service creating and GES' businesses virtual hard open who We have long-term created of our create memories our Thank to to the you we'll tested

Operator

of Markets. Janney comes Tyler Capital line First [Operator Thank Please of you. from ahead. Instructions] go Batory question

open. is line Your

Tyler Batory

Good here. afternoon. Thanks for taking questions my

us detail But I you're couple me. a land. half first of there restrictions Just start of appreciate exhibitions in of when the Steve, with and GES commentary look giving really much for quarter it some I'll the -- side seems terms terms bigger remarks your as of based fourth data lay you the cited. the in out, next at looking the things. some of activity the there hurdle you and really of year, or of survey like the in when conferences, that on is that you events, is a

lifted terms we that move we is So really anything of keeping as on some eye kind of going well? to Most of an be the there to of them them. in the past biggest is have be kind that of issue, or going just restrictions in should of terms gatherings else

Steve Moster

Thanks Tyler, for the question, hope you're well. doing

the seen postpone surprised I larger that seeing we're What been an of into trend important third would some and XXXX. the underlying say we've of or cancel and of events, XXXX. into fourth terms In I've before, either quarter been -- quarter as those first for we've quarter there's is demand -- talked continue events. about move by

our and understand clients allow sold them restrictions specifically local have uncertainty not companies, they've of some exhibitors, to to for the the will been surprised terms in that space have not. event of postponing or around the strength of for talked demand, I've the whether is as core to or what canceling exhibiting or real So, reason the

are we'll there -- that these think back I haven't restrictions seen once demand underlying across in and but events lifted, strong I it's be events, think position. is not some I come So, all will universal -- a good

think few they place. and third even in I'm events and will take up market. organizer's have ability the answer, How a to so quarter long in a larger and those by what place, some really first I of and Vegas. do. smaller do demonstrate Atlanta are events back. terms coming They're that might ability come I in I'm but scale at time that that to fourth going take larger bit We've the economic restrictions impact what here annual the during able the During Dallas a large in But are do events and -- the our see, little things So, or once safe precautions I and for think to be is not scale are this quarter, seeing small see in safety don't chance an we're and really recently the this Las way smaller of by in encouraged the encouraged I period in -- events and scale? deemed we a up, the schedule of at produce done a with we we a

Tyler Batory

very to strong gears the -- And quite that's results have And at why from to impact the that tough next helpful. the quantify could year That's there. that? there did. curiosity impact the into results lingering incidents ice it And was if in be it's Out of on Pursuit, negative a Okay. obviously, quarter? any pushing did

David Barry

comment its it's David. an interesting you Tyler, the for and Thank one.

We because to obviously, the have attraction investigation to felt we the allow following accident the proceed. closed

support everything We're be for that is right others, team. go takes that supporting front insurers we an that have a supporting also the we're which and an time accident working What impact. that and hard and we're ensure terms whether as but with sitting our support, me, of is ongoing we'll investigation, forward. our of in doing with victims there, interim, And we're that the in of now can a it’s to can quantify there the variety you, don't multi-agency I So, investigation. then we that supporting we in is right of quantify obviously financial

they million clear the when XX guests first will our completed results which a make position whatever then and So, end those investigation strong are be those, sure with and completed, that a years that over we'll of result period, to for have be we of very really forward dealing of come out do focused the of be a making will that. -- improvements safety on next spring. before expect the that winter and cause, XX the record moving and we're as in of be And sharing the then and investigation, the we'll operation on

Tyler Batory

also again, little Iceland, I'm you quarter, but across things the stronger, into momentum as can't know the areas bit attractions I'm continued to hotels other portfolio there into like I just But because the FlyOver of seasonality, slow, are in And either strengthen continued it's obviously curious seems and with building we and -- August October mean, to things when I in momentum that. et across you the that portfolio, guidance went appreciate say was at a fourth cetera of that of October? give some look to I able get lot know interested September, seasonally you Pursuits, Okay, if a down. in closed just and

David Barry

content quite really Yes, we're and with showing excited important. mentioned at Canada FlyOver call, as the is in I Halloween

show Iceland feature. Canada FlyOver having something showing to continue and November, So, in and both FlyOver we'll the then dual through

regional We're we're seeing in and hotels the Our continues in obviously remain and traditionally more open. base as The visitors. of fourth the through parts yields then business encouraged Western are Banff slower local destination and time food beverage. it's Banff is a and this our Gondola and -- food retail visitors a way are then and a time operation Jasper transportation and retail will Canada in for in transportation where quarter by operating the

I of safe think environments. to do at do and out in it and and on home experience being folks things get sick working ways So, are and

that test, other for a the border remains will the mention takeoff tested in tests able Calgary The again. And early I'll international coronavirus travelers test be quarantine and which closed, mandatory the U.S.-Canadian then is on in are doing folks if negative, to allow XX for thing a and subsequent to a is but they're six program, November, protocol within following, will unfortunately I which visitation, not the airport in days they're believe, testing able then their days it's where arrival, there's days. begins

well, So, the I see the of test these market, travel to and begun. leader we're travel beginning think airports as authorities, where march has return to programs the

or Hawaii programs some in on these are opening going what's of that that's up. whether it see You

cautiously best attentive that and can. delivering the guest So, we to optimistic. the we various on remain working We're experiences changes

Tyler Batory

you next try I'm like moving year. lot expect a new still next to then terms understand opening look I mean, profitably strategically attractions in it's next But would up on terms are ball look what that think both in crystal But like might of in your attraction operating once in has open terms them of and and and Vegas may travel to be interesting you moving Iceland. of positive to And those it's the guys knowing a forward year. going those to environment of year. the what they difficult in of just Okay. nobody Las process thought I forward, a to into there's know uncertainty pushing opening

David Barry

to While I middle that in is part attraction continue these Refresh had And the and so doing that put on think the our the to is to our not fortuitous and of time of one uncertainty, be toughest energy a it's building to of an like are able is there construction. what's we existing benefits efforts construction be we that project. into we're close in the

So, margin. are attractions these new high that are

visitation are We them And Sky Vegas. and and targeting able for Las is there FlyOver operate we'll profitably. expect be people obviously, to we're spring for travel that that the to fall able late Lagoon if

Tyler Batory

cash of couple numbers we say move overall level cash questions third you that what company And minimal is this in if quarter? still the burn in revenue, In A maintain liquidity? you there's potential What in could. to Yes. terms other burn would fourth the you next consistent? expect gave know the levels the into can year, I quarter, to relatively was implied Okay. some And business? the I of the GES in for burn then cash if

Ellen Ingersoll

we in half cash that fourth the guidance gave. the Tyler the is for burn So, GES quarter of about

the consistent the first million quarter. about look GES, of about the to It GES. first at at look $XX third amount on will and So, have quarter. half same revenue quarter same of revenue we Will it it in depends the in the $XX minimal If the about all fourth million in quarter? the

Tyler Batory

Okay.

diluted preferred you sure then housekeeping price. be are above your you're technically, financials the Can stock another question. Okay. convertible to And also that at you and price? clarify share the in understand for current guys convertible accounting the count, that in impact how And from the

Ellen Ingersoll

to once the declared, in dividends, through be going which cost we liabilities So, to be. to equity is remind be paid $XXX the waiver shown And September have the dividends capital will in then the on shown through equity kind of -- just the normal like period, XX. covenant do the do million will is minus and And the the deal. convertible the balance sheet, between

Tyler Batory

All right. Okay.

for all me. that's think I

it the Very you. So, I'll Appreciate leave details. there. all helpful. Thank

Tyler Batory

Tyler. Thanks

Operator

next Asset of ahead, Please our And comes is Management. open. Barry question line go Sage from Haimes of your line

Barry Haimes

few. my questions. much a taking had for I Thanks so

First one, is in could share just remind normal us GES's typically market times, what ballpark? you

Steve Moster

in by the and for varies Sure, XX%, and Barry. U.K. roughly XX% Canada, it's It about in XX% exhibition, geography; U.S. market. the in then

Barry Haimes

or just that there expect for follow-up, do I through number competitors your reason exited but would of then you might that, rata and to mentioned you better that, So, would number, whatever Okay, a any that, that is worse to of than just XX%, that share for thinking exit since up may to assume that pro than get issue? you business?

Steve Moster

there's exhibition for privately-held a share. I do to in the think a of see the called the business, There's shift side company in where two see stable on share the I the of share that market it you and gone are market [ph]. the choice And suspect tremendous where I an a large have corporate there's U.S., That's don't into more but that several gain Yes, Freeman potential a bankruptcy. have and there -- gain. there number for share in market is market the players are I players already believe highly business, is side we on of opportunity a that where teetering are edge. our of fragmented on And

Barry Haimes

final roughly mix the between on and the this just -- just normal side side, corporate your times? the in business And again, within exhibition Okay.

Barry Haimes

at At you're normal probably times, XX/XX.

Barry Haimes

disruptive Great, question XXXX think we directional from normal as and and Pursuit. on point If year is view think you okay. a of And I XXXX had good a very of about obviously year. one if sort a just of XXXX,

little to middle, XXXX is a of in the it to a color sort that's start XXXX? closer think looking way So, about kind little thinking you that sort it the somewhere possible is is XXXX there in it middle If directionally a some to is for is little there, the a just two, of those Pursuit? directional just or of is closer in of

David Barry

ahead to really you a get a I to sense, which future as not that. there's to existing. is we're we view tell But a now. share of It's able tough to lot to in going call it, provide be movement and honest, we're can the from pacing But be we'll that right better positive.

to from mentioned I in there's lot a XXXX remarks, As of move existing my bookings movement that forward in XXXX.

we'll it's share days as that. think we early so and position in know And better to more, a I be

Barry Haimes

Okay. Is Can the XXXX. XXXX at you pacing is all? versus relate? ahead XXXX It's

David Barry

the XXXX some the as that year, season, well. And last time are for positive this depending there pacing that and to pockets, to there stages early pockets coronavirus. no on remember XXXX are view Early, was

the very would mentioned, again, years. as days. both positive pacing I is it's early to say So, I But

we'd So, view. that until better further I'd be extrapolating cautious get with a

Barry Haimes

investments? in in again, on question Thanks. thinking -- normal? Sure a and money just in with was in had a projects, environment to last that back an per the look sort new -- going And I if on five-year you were before us terms forward of to expect normal reasons average, give of would much I think we're attractions average, a to how you makes some like that on total look of normal those or invest year we're sense. toward that you Pursuit sort ROIC of And that could the you

David Barry

Refresh, say Build, got don't our I into attentive internally just And think industry right from that working on invested traditionally, return bit definitely our its flux. down we're internally and communicated think is there's projects. future, strong going side rates looking very Buy to want opportunities But But And than things also important XX% up. speculate a is hurdle of to in at get we've a think terms so in still capital. little a one what we've liquidity that stronger of upside so speculate that investment, been the I tremendous to wide. the as many as standpoint, I I we're to not much I way we've the can IRR still world our

And terms prudent so being on super opportunistic time, you're in want needs your liquidity and -- own the and on. be at of we to so at focused the same

that these a like think with I So, dodgy don't I will sorry; clear a to I'm become go ball answer, And strange but to also crystal it's that we sound as mean have hard forward. more times.

Barry Haimes

No, the great. I appreciate insight. much. very all Thanks

Steve Moster

Barry. Thanks

Operator

our next your Please line open. Kartik is question Research. the ahead, of And comes Instructions] Northcoast of go line from [Operator Mehta

Unidentified Analyst

is for Alex. Thanks questions. Kartik. our this I'm filling taking in for Hi,

Steve Moster

Alex. Hi

Unidentified Analyst

And of your are and for more tradeshow for specifically, expectations industry? the year environment the then exhibitors next year? What expect what would next attendance percentage you

Steve Moster

where the I in obviously year, fourth I I of see be first the events, of and XXXX, the are quarter that the in a cancelled, a are activity think quarter same concentrated and year, half some into the a that of We quarter postponed QX level in cancellation. do of inputs back will number XXXX, postponed and as increase versus think you back But of pre-COVID of third lot lot QX and era. XXXX. postponement events the in somewhat going the of in and events, think the have people half there

how specific of percentage, these events terms come exhibitor we're accounts see going back. to or In

in thing floor restrictions the banned, demand we're the the our encouraged would I'm and thing a of mentioned able question, that to sell add number of spoken to manner. they ways is both been XXXX what safe for events, during level we of find and of there's larger XXXX. space underlying in and that The or -- I for strong seen response my will during some only believe in the I've I clients that terms prior events their I've to optimistic they've in be other As of have. comments as events, lifted that and operate we a

larger had of week, plan come announcement scale from with that to hold would Governor a to in events Just try he an of indicated quarter Nevada was first in this Sisolak order XXXX. earlier up there and he the

encouraging news So, that they there's and come to some will hopefully, fruition.

industry for a news whole. good very be would the that think I as

Unidentified Analyst

for Okay, fundamentals a cost great. take? improve late until year? there measures additional you And is don't that just The any could then follow-up, next

Steve Moster

quarters today's takedowns up Yes, that cost we and ahead opportunities talked are the going we and lie really appropriate some what exited of the that or a number we'll have during just cost quarter. reflect in future near facilities done mentioned We other the into measures about, that call take forward. we've There of of the exiting. those are as

Unidentified Analyst

Great. right. you. Thank All

Steve Moster

Thank you.

Operator

Steve comes Sidoti from O'Hara question of of line the & Please next Our Company. go ahead.

is open. line Your

Steve O'Hara

Thanks afternoon. the good for question. taking Hi,

Steve Moster

Steve. Hi

Steve O'Hara

Hi.

occupancy to a kind rate hotel that? something based rooms within seemed back like layout is going mean, Pursuit, that with it closed that social on kind or or I hotel or pretty on I of the distance high. full Just Is -- of guess, of based the kind

David Barry

Hotel Steve.

Steve O'Hara

right. All it okay. [Indiscernible] Okay, That's --

David Barry

colleagues Yes. And other to in the talking obviously, but much able us being markets challenged. tougher hotels across world get get the industry, the what's to more in occupancy, city to exciting Folks too, were rate. is for that

very is Looking at very, ADR occupancy, positive. saying, all running that's in Jasper a of $XXX XX% and right,

pleased how So, we're performed. lodging with quite

Steve O'Hara

Yes.

said, of main the the this and of tested, what's program, Okay, borders And that's it rate the into hold might like kinds and the something that just travel. the have maybe on a what lot as things helpful. of But just said, sounds added I hours to to more at of to of XXth quarantines one just isn’t infection what in you opposed you it of U.S. just northern the of maybe the then starting air or level markets as of go you restarted then are where there kind well. or your kind place those can you like know, reopen sounds Japan think it and And I I diplomatic? remind U.S. Canada? Hawaii, avoid like with international them be October me think, border Is kind -- their the that's kind based XX point? Can with of closure? some that. to within back things plans --

David Barry

Let cover U.S.-Canada border closure. the me

world, United for Canada sort with works a that give leisure return and open. travel, website and quarantine. for remains Canadian this the other way is that to Calgary reason borders closed a Canadians remains -- travel essential that's you program obviously, it's and that testing on if are there's I'd program basis. visitors. closed essential on a the XX-day Canada there's with have or is rest And open from the then the have you're really for there's precise The in border airport pilot but So, one it happening that go Canada justifiable mentioned someone of a I call, abroad which a the information, who travel. worker month-to-month between to healthcare remain beginning government international States the the check The borders to is border of earlier

get So, closure that mid-November, November until extended sense for continues. been has XXst then how a sometime expect and that I we'll

proactive and and so and a because on. a other protocols think though, every places the on around so world, is and very it example, be expect is end variety of the will the the I borders that all of countries forward Looking first quarter, testing on. will visitation working by the in international been the Iceland Hawaii And example. have we more accelerated that country a travel that and good air impact obviously, of has open

we on know as we'll we're and a closely know, very real we're something we it. share it's So, and watching keeping what eye

Steve O'Hara

count? Okay, -- the to that's above profit potential the future, price the to dilution with convertible the in have begin following you maybe is and preferred, the -- stock -- can be something X, you you'd works up convertible a share has maybe diluted profits report it walk through to level securities that into the maybe relative the then what's Is helpful. to Tyler's include profit And reporting. certain on stock get that just price to for have on there to and to then just how there's question, level the

Ellen Ingersoll

but $XX.XX XXX% the the can we price, I'm conversion but third you're that of and, price asking, what be is prices anniversary on Yet, sure has is actual not conversion and convert conversion $XX.XX. force the to this obviously,

So that. anything above

Steve O'Hara

Okay.

So, a on anything above to assuming the the in that count share diluted you start there's profit it shares. show

Ellen Ingersoll

Yes.

actually but it we We have in convert. EPS, press --. that in the the in our it don't table We on the Steve, don't show show release,

Steve O'Hara

I'll Okay, take a look all right. at that.

Ellen Ingersoll

you we where in release can show FX, EPS. table see that the the Yes, press

Steve O'Hara

All very right. great. Thank much. you Okay,

Steve Moster

Steve. Thanks

Operator

There in are no questions further queue. the

Steve Moster

and us earnings All joining next the right. Thank you call today look we on to for talking quarter. everybody forward you to

Operator

Ladies and gentlemen, this today's for concludes call. you participating. conference Thank

now may disconnect. You

Pursuit Attractions and Hospitality (PRSU) 1 Nov 202020 Q3 Earnings call transcript