VVI - Earnings call transcript Q4 2020

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Operator

Good day, ladies and gentlemen, and welcome to the Viad Corp. Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] I would now like to turn the conference over to your host, Ms. of Investor Director Executive Long, Finance Relations. and Carrie go ahead, ma'am. Please

Carrie Long

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

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

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

Steve Moster

cover our financial industries updates I updates towards business recovery liquidity review will of business insight you after will Carrie, for XXXX the fourth end David of and you're quarter and for results GES. the Thank into everyone. business year, I the and provide Ellen and during afternoon's for some our performance On call. us afternoon, the and call, call. liquidity shortly, gradual you, and this all on today's our good position. healthy. joining safe Thank Pursuit hope will share staying we'll provide discuss full

succeed. to of I'm businesses, have the David? turn David, over of appreciate team's David confident like drive, the our employees call guests once I'm like their dedication I'd recovery, clients. creativity during and our challenging of year. year thank who upcoming incredibly us I Pursuit. that hard to and to this happening over strength, very flexibility call will turn and across team our I'd help worked performance our proud Before this In what's to I the discuss to to again

David Barry

Thanks, words continuity for Steve. important Three growth. really resilience, and Pursuit;

to in business Pursuit So I partners of want to a and played thank inspiring past start guests have heartfelt all with iconic, world, us our we helping the of of navigate members, you this safety critical around many whom role maintaining another a promise. all a keen on were our eye season team our of unforgettable challenges experiences, and odds, year. Against in while delivering the successful our all

So as discussion our is covering of from in let by reminder, QX. quarter me positive results EBITDA of the fourth a outlook business the contrast performance from XXXX, our our which across a always performance begin and geographies all

the regional rates The of community and XX,XXX than the the resiliency manage the believe points personal operating properties business year-over-year to month. increase results long Jasper, the were sacrifice In nights pandemic improved We're net extremely and of weather fourth In once and the other quarter deliver hours Bistro. average so model aggregate, was temporary year experiences. in made Jasper, ride far XX second working worst is more see Mount to Farm trend gears by times these X worst tirelessly the on we've our business challenging of Banff supported and slow last as for or remaining remained through growth and positive at and and number to us. Sky and Banff continue is particularly which closed through during number the more outstanding the journey. local power met in new properties Halloween around leveraging our meals increase to seen our local beverage that the maximize number Alaska to of forecast operations resiliency all again reviews to optimistic Montana out was from guest business markets Pursuit face evolving room and members the score Pursuit, iconic health on to We're the the ranked Teams visitation while In properties. X organization a pleased visitation wage that the from continue with EBITDA envisioned, behind we originally only winter. many of our quarter guests quarter October fourth period, January. from are of as promoter continue Banff our reduction. with our quarter Fire Elk so TripAdvisor Iceland increased the international Western multiple demand occasion nearly in positive Banff, prior and the their our and own holidays the during as and in solid most In many borders and driving and was Avenue In XX% prepare achieving in restaurants, status expectations constantly Our our proud for nights for Canada the limited. and X international October launched delivered Switching to lodging restrictions FlyOver seven the on and ever the restart and what to from our we of restaurant did Gondola, operations an nearly our to experience. needed and our haul positive internal of the we & in whether key for the officials, sold each surpassing capacities team what welcome continue sum, the new the and markets Royal operating Hotel Hotel, through guest focused while the FlyOver a delivered that food closed from we're in we remains to the from responsiveness through at Vancouver, seasonally Canada world attractions daily to manage team rose XX,XXX and challenges

a year to talk what let's So the few take ahead. in seeing minutes about we're

demand towards said, await real. the for that normalcy, continue serve to half while travel expect world of Pursuit believe borders. international local That reopening we through experiences We the first inches is we'll the we of and demographic a regional XXXX, largely as firmly very pent-up for and the

Now travel our experiences our that than move demand forefront experiences put for will to freely, levels more remain can the as sooner return of rather us and that soon iconic as nature pre-pandemic than of destinations guests and recovery. the later, ever, we the the will confident Pursuit at safe

towards In itself Our all strides or on of our destinations. tourism by considered encouraged a make in borders fact completing safe acceleration U.K. to Canada, we're Alaska open. potentially vaccines are with Pursuit's why the the stronger that view once to optimistic and vaccinations Western government summer that and lends locations is that in coupled this the to season continues are the Iceland we're Montana recovery Iceland, that's talking

quarter starting coming less cabins growth very reliant visitation in of season. We're positioned which destination. ahead the and well our Reminder, of same for is in 'XX. Montana, of a RV both XX% site the seeing for we're long-haul are last strength to rate the same and trending period XX% we're products, year. As how primarily Montana we 'XX encouraged on period the forward look It's third to ahead 'XX in relative drive into is pacing by market

Now, Alaska. up to

We inclusive for term. expect a more Alaska business gradual pre-pandemic inbound benefit volumes longer is to air volume Alaska. And demand it return will are in bucket a the destination visitors true as travel consumer on pent-up to list relying from more and

will business We the Canadian passengers Alaska. have its government's are the this over week learn to on season, ships cruise 'XX some impact on ban for disappointed in from waters of XXX which

I are cases remain seeing steady for our into we and And Iceland hotels with stress FlyOver the to guest with near Iceland; of be and the year. solid compliance place content soon closed international is well restrictions is list sold, majority the I'll short-term it's a of we remain opens our quarter journey. end. positioned weekend very of how quarter while at feel the to about enthusiastic pause, like quarter continued province Back trending an government for expect guests, hotel attraction our We on very of and put growth through December. do hard deliver year. of in of Alaska-based the first 'XX pacing to and When world quarter the provincial due we days our how sample gift been TripAdvisor's However, health look occupancies holiday COVID in things top in strength order borders been Year. of remains and the the will the last vast have FlyOver a early our forward closure Canada in that saw lined significant outstanding of in which recent business Earlier closed balance fourth calendar tickets Alberta Banff reviews. its the the Jasper, as and We'll size In we're at of 'XX period Reykjavik, in to in the seeing has redeemed to have continues And we're December. over at much mentioned year, fantastic first have decline early it several restrictions may the be coming Vancouver, continuing but we easing success. pleased up volume Not we In Jasper to for and New still temporarily Iceland Pursuit opened that's back work the small, restrictions, is exciting of an in of the and and attractions. third XX%. unlike

the Lagoon an new update So Recently two XXXX. our to be foot Downtown on Lagoon with Ocean attractions in Iceland; history Reykjavik. thrilled all Conde a geothermal Atlantic largest me featuring in we're you is in Infinity Starting overlooking Sky XXX give quarter. second edge spot let in opening minutes featured delivering of Traveller, first Sky Nast the projects we're in Iceland of tourism the world-class within one a

locals think this experience attractions. a is As immensely are alike, Iceland-based for we visitors of terms to popular going and in changer game spa and activities be wellness-related

to Filming we're the I the that half location Las from second to amazing open T-Mobile story ideal on-track promise is Arena, American Vegas Park Boulevard to will the the FlyOver be and complete We're spectacular. back Vegas on the nearly the Vegas. the MGM of an Las experience the West the and in year. can bringing States. With street Now, across of

the like the helped with one any Las issues, and we Las we've be timing from think through intend benefit the actions also early XXXX. happen. In the opening first just future thanks decisions members, demand, we've team made of capitalize world unprecedented Vegas FlyOver pent-up the Vegas outlook XXXX. We places we're of and of that the fall in manage taken pandemic-related to the to bright. our a reiterate guests short-term an proud to will is who on to as and destination, to closing, it on partners from around that impacts our make to Despite of I'd

As we memories ready perennial you places last go. the than you. and to benefit iconic and poised we to collecting at said Steve, important believe more and back Pursuit, from is to to will we're power continue collecting we're demand, of that things quarter

Steve Moster

Thanks, David.

GES. over to switching Now

our to GES and unprecedented like and I'd members, during this thank support say foremost, year. for to commitment partners you and team their First clients

the we costs strategy Our freed like goals, GES business. growth segment have that opportunity has some market revenue to corporate that to accelerate positioned to margin team the service a higher our up improvement improved doors prospects exhibition global client opened created tested flex a structure when share and X,XXX up our we to this capital, for market returns GES. the providers. been and were Gaining would strategic an our with within risen industry be has cost disruption in our In and over structural drive bustling pandemic a has and events, reduced variable before has presented highly growth of challenge year fixed never stronger and margin normally fragmented our more important key changes within corporate corporate with been clients of margin. to The at part in to search as new business

Stock space, Exchange. Mountain, Boomi, General, this roster Hartz Pak, As corporate London an expand the established addition to with and in Genomics, partner our the trusted of and Wylo we a company, corporate new AM Temenos, clients continue Dell XX client Tetra like

While this are our clients clients the events face-to-face to working fully with the of and we on the of are half that many scheduled first corporate of actively year. have events virtual hybrid our for half in to transitioned second produce XXXX,

halt XXXX, expanding cost cost warehouses several XXXX. environment. This to high our facility able side, back Through On production sold total, transform during moment, but in I'll sale our for and facility leased a event we've of bit locations GES-owned face-to-face the across we our current the network marketplace. wages, leaseback more the annual let more exhibition revenue more final market now cost in first reduction this up will more In our million about facilities. completed leaner, we the and XX permanent scaling located back our exited markets, by the used By facilities. San by service came Orlando about XX% warehouse me largest eliminate to we variable address to other network range we we and cost be and expect received existing transaction production achieved. reductions were response GES that business to major we've in Diego semi-variable office rationalizations, reduced $XX month, fixed in our on in and a the scaled warehouse. nimble Last from serviced to by some reduced in about we facilities begin These basis a fixed on our proceeds. elaborate cash $XX area during largely a which gradually we've temporary into the million competitor a

the leases additional presence opportunities find come will and physical we to at cost other our additional their facilities, As end structure. to potentially of improve to value those the our our compare markets in cost

the to closed to which the In us that support In U.K.-based previously outsource reduction business clients needs to into intensive audio-visual we've Additionally, agreement our our running we our use further U.K. storage the to third-parties to market. enabled facility to management, third warehouse and at was with capital will the fourth footprint. enables the in has AV make we outsourced utilize This services dedicated quarter, shrink services quarter, of that cleaning depots. events. in-house space an us carpeting our aisle and entered we a third-party of carpet instead

program, offer this show trade in broader experienced professionals are pandemic along where flexible the a starting offer exhibition we an with shows be occur. more personnel of scale with and temporary our want employment. for can cost leading able Thousands for return work of Personnel for due the we accomplish to up gradual on Epic opportunity expected locations flexible, with to experienced labor opportunities flex Partners prepare lost face-to-face As we pool talent events, services. based To program, demand a manner suppliers program. a agency, to Through that talented to can to we for GES variable industry-wide our in and rollout partnered employment other third-party key staffing this industry

flex able our up now event manage client activity around will and and costs. service returns carefully our down be operation and it employees to as We

see revenue schedule face-to-face encouraging is In be potential it's possible is terms and place. second the back of the schedule to the improvement the attempt be confidence, exhibition this of some the organizers events markets certain vaccine more year, half-weighted while with landscape, it quarter. shifting gauge The safely smaller will evolving XXXX has for hold to in events. as when to scale taking the of boosted open still distribution And to

and first to will are quarter in the revenue ongoing fashion set some levels including remain restrictions minimal concerns Dallas and expect the events to occur, said, to due the our that That related Orlando. For during we near shows there smaller quarter, first are COVID.

how Many second see event. can to the pandemic, revenue or they or expect an determine of navigating limited. with For events some canceled quarter, it but postponed the still given have we others if while improvement could level are will safely already remain produce uncertainty the

that more half greater organizers' of be reflecting level to year second able the occur. is events of The promising, will confidence

and for possible although typical the perhaps seeing see a the could quarter a number back face-to-face will that bookings year third ongoing year that And half of this events demand are to continue solidify for fourth we're optimistic with it's of given than We greater than that pent-up vaccinations. the smaller size cautiously levels. events, a pre-pandemic

ability virtually As the we wins in through temporary as a experiential recovery we partner of talent global and them strong trusted for leader brands. we for the services and our the ways, to testament of experiential corporate exhibition in provide. and relationships our period hybrid prepare new are world's we business to with a exhibitions the GES events. clients team of capture industry, this top that maintaining some our and support hibernation, Through new our is a superior remains

is As in-person GES once we've more structures that generate excited break-even more lower for I'm cost business turn again to changes about the points will that ready and as back activity implemented. shareholders. the our restored, and due permanent event on GES to cash flexible stronger strong for be with conversion will profitable a future

more and turn over the I'll results detail. Ellen? discuss in Ellen to our liquidity call Now, to financial

Ellen Ingersoll

Thanks, Steve.

actions mid-March to was impacted we as affecting XXXX our and an of of able closed and was visitation as closures year. restrictions. COVID-XX and second what to our during As event began well travel other proud the XXXX, as due continued by team unprecedented extremely most back pandemic border postponements quarter cancellations through temporarily Pursuit properties in face-to-face its the lower experienced accomplish businesses. We on developing I'm of tough took look GES swift and

the that actions from August, we and secured year In our equity facility of and million protecting delayed of to assets We cash, to to warehouse credit initial layoffs, was and decisions necessary $XX.X eliminated $XXX.X including of and our These debt private $XX spending time-off an from to $XX the reductions on $XXX to policies We million sale most capital that liquidity immediate $XX all strengthen end amend bolstered in focus facility a with at flexibility. insurance connection available of million, but from from draw spending million, with growth was Partners, the and additional early the convertible position We year we furloughs, with investment of financial approximately the certain total projects. cash liquidity million Crestview Crestview All critical to and make mandatory $XXX position draw expenditures while primarily preferred million. of vacated cash downsizing in unpaid implement the to cash cash, surrender $XXX commitment proceeds of related of up made delayed stock $XX with maintenance GES our capital to of newly-issued our million company. perpetual announced provide a firm additional employees costs we and in have pausing efforts. life difficult million raised the our we in facility the investment value the financial Our across commitment revolver for salary ended the which million. credit reduced had the aggressively preserve discretionary revolving approximately secure including essential levels, Partners. May, future capacity to disposition July our reduce the on in

and us quarter early required million and from October and event we Our as At XXXX and quarter as GES an XX% fourth continued to minimum provides $X.X we XXXX, we $XXX August revenue and impact EBITDA, pandemic. expenses our able for relief inventory XXXX. this restructuring supported $X.X approximately the quarter The we was our charges, million items visitors which of pandemic reminder, local our financial million already for term net are write-up travel the challenging transform $XX.X quarter GES related and during realized XX% regional start-up limited quarter revenue causing $XX.X which carpet was until GES, $XX.X approximately secured we the businesses EBITDA And the other covenant to to cancellations XX, of debt Pursuit. liquidity the loss negative non-recurring This smaller our costs to visitation million markets with covenant largely was depot was as December quarter, as segment decline of quarter and attributable to a in during revolver and applicable. hybrid revenue a hindering our events restructuring-related activity industries other down face-to-face the was primarily international maintain outsourcing to million. that remained an the restricted. event from clients' Pursuit, a Pursuit's third XXXX. of while seasonally in million. longer XXXX were year-over-year model a result postponements. adjusted before attraction net million adjusted was period, of fourth loss slow during segment for waiver with $X.X was as for experienced At fourth virtual of as matures excluded of And a drive Viad $XX.X million, amendment excludes we negative non-cash as

In keep for Vegas the our which totaled the We to in attraction quarter, million its the million funding to at decreased its the during a were quarter. new a managing approximately focus position scheduled closely. that with outflow transforming Las per operating FlyOver Pursuit continue on by maintaining quarter, approximately structure fourth total, position additional strong quarter, liquidity Pursuit's progress making our included during FlyOver Pursuit for month. capital third million which sharp approximately and open for liquidity million is costs attraction. And and GES $XX cost $XX is the to $XX.X Las We limited Vegas $XX cash mainly about our expenditures

are like on and issuing our at comment guidance I'd outlook. liquidity financial financial this we not time, briefly Although, to

cash million for restrictions. approximate be With $XX to backdrop, $XX XXXX expect million see revenue quarter. from GES first continue operating seasonally to the to quarter will and slow our with for expect, that ongoing the we burn We travel minimal Pursuit

FlyOver on approximately the total Vegas about primarily spend a proceeds on million of $XX area. the end capital in the available Las from With XXXX, of by of mostly approximately expect will projects position be the million pro more. Pursuit's at of be to believe development our $XXX of January which quarter during expect million sale GES continued located liquidity and financial offset attraction, position liquidity the provide warehouse year our Orlando we at remaining $XX We that forma sufficient the at and XXXX end impacts Pursuit. approximately first estimated or growth to this the outflows, pandemic investments strength We million quarter first endure will to $XXX flexibility while making select received

open restrictions no level. more million We we it's required new improvement COVID burn But relative minimum expect the slow begin see pandemic-related $XXX Pursuit Lagoon move busier continued quarter. liquidity enter cash bank could left. expect will our our there if we are above and we is sufficient of to we With currently to even attraction Iceland. in that Sky vaccines, as rollout tourism what we season assume through will second experiencing, its a

Moving into inflow the last once third two third positive, online. new likely cash quarter, world-class flow larger a we attractions than year's expect with pursue and be quarter and with again to

of third year events rescheduled suggests previously Additionally, level course our during could this at through the our and largely move ready demand and and strengthened we improvements quarter, also this includes depends flow pent-up to restrictions positive on year. landscape. pandemic see cash the GES, to the which we team a doubt GES But from of the return current that in as contracted we're Without this visibility in shifting last respond challenging remains environment.

with Vegas date. in with pursue call And $XX And sense to can at to that other Refresh-Build-Buy over approximately complete strategy a to have a we position including align We it planned when that that, I'll remarks. their Sky complete concluding we minimal from Pursuit's the for back the opportunities liquidity evaluate liquidity opening growth solid capital XXXX some start-up Steve are ability fortunate selectively to million makes turn compelling to continue opportunities with Las Pursuit, FlyOver for invest growth to Lagoon and perspective.

Steve Moster

been company This early industries, employees. our withstand the that to Ellen. to ensure the quickly year We could and for difficult make has clearly for Thanks, year challenging the extremely in acted decisions pandemic. businesses we

waters the team leadership through focused make that unchartered safely on we Our remains to company ensure it to navigating these shore.

not the the trying tunnel we I'm other restrictions bright I'm of increased be uplifted by can future progress and can that that vaccination light restored are can on us. the have I side lifted. with we safety be see ahead Although hopeful the and end of at made the of yet, the this distribution, and environment by

previous Pursuit recover effective drive meaningful loyalty. Our there marketers, iconic We events well-positioned transacting interactions and way organizers and created business building from they face-to-face rich create live and most downturns. that in the persevere GES' cannot a services experiences unforgettable for provide that attendee. GES as businesses virtual events that believe cannot cost travel to can growth to demand is believe connections be inspiring and to business and powerful are pent-up in. to and will brand through in-person Pursuit's had and destinations with experiences located share replace assets hospitality world-class create We be replicated. that experiences remarkable picturesque the the

building to to over long-term for businesses on the our will creation exciting success prior proven lead years. are as five to strategies are value past had We growth back COVID-XX eager shareholder that to strong our get confident we post-pandemic and that the

all guests structure emphasis to continue on through higher to GES. at our dedicated for Pursuit and to cost for as long-term flexible thank the our profitability and call hardworking open with for to our improved our high committed We and in you, to again, we'll create projects value our margin and you that, as clients will And through and remain continued your Refresh-Build-Buy Thank this up more support who extraordinary drive of possible, reinvesting well shareholders. a at We return Viad. experiences services in growth to employees make delivering questions. shareholders

Operator

[Operator your first Batory from Tyler question from have Janney. Instructions] We

Your open. is line

Tyler Batory

afternoon. Good you. Thank

see and could fourth me discuss to little few the and want So might second the be commentary if year. the hear of third would half quite know GES, in wondering half half helpful. GES, were happening, out be so on rescheduled on outlook could books more, the I just business provide could year. the that you if year the bit for think quarter some you what the a and from on other then that especially bigger second XXXX, were positive, the those just level a start I questions of of I some of the the the any for in on What's now that second terms for I and right tease your confidence there shows of details of to XXXX

Steve Moster

good Tyler, Thanks Sure. question.

So seeing cancellations of and some so consistent has relatively and back postponements in but the we're of half the those QX. the QX the postponements -- remained into year pushed were half obviously and year, first

into So my during -- mentioned , which come I and comments then one of is them XXXX XXXX. was going from that to

be in in So higher pretty bit good the of the of smaller than of of is year. they'll events of we that the the revenue in to shares little think size slightly going and in what and back do feel we believe about in a number half year, nature we the that half we our be had we've and previous their years terms the number have back

Tyler Batory

flow the might guys the GES. Okay, like business? things margin on have you to of of a to back of as are normalize, made of through And gate once made lot you hear. changes of what progress, ultimately, that's of start then ramp and great up, terms a What lot in obviously, in then sort that out you there targeting look structure, events these cost some the

Steve Moster

in that hit terms we'll steady business believe the pleased overall, a we've business. of business be over work level with reach And that lower I put that we of we the believe past that targets in than back to where done terms breakeven how would pre-pandemic, time. point see of that revenue profitable total of exhibition the were really the it the kind state ramps the at more we but can have it's I'm out GES in and revenue. transformation specifically Yes, I a will of that

Tyler Batory

very these that that have ask like looks is of you will? specifically trade, or switch helpful. right And reservations you then you this long organic demand, international I'm to little also XXXX books seeing are appreciate pace reservations interested, you what for places you if haul, you and some summer -- making gave, like travel more summer just in on of David, okay, most the are the what to gears locals just And the bookings, accepting are Okay, a about of all and I much commentary marketing XXXX mostly now? wanted is more doing to Banff are the Pursuit.

David Barry

I'll Yes, let me and try follow of to answer that the series questions.

for can of one, other Demand specifically where and seeing for to we're in kind very I'll future encouraging reservation strong compared matter time take that the quite very I'm pacing from. I last to so we is So we're year. we're tell very, the like RV they're that view see and the geographies But make, specific going going we're specifics that's doesn't happy go cabin in our across give and area. encouraged anyone's they by than very, product XXX,XXX probably to you it. by to to category, ahead, just ahead this would pace -- and Montana guidance see into without into not whole revenue pacing what it's and on

to and that their open. fine, they've are in view, open folks Alaska. visit three you trip their other doing percentage Smith to teams excited between are are Alaska and it across is Mr. by to ready moved domestically will right, Pursuit they're The but folks of center call their to vaccine that the border postpone that point, U.S. had and Many their helpful calling and are large imagine, phenomenal would because they job be travel. last That Mrs. their a through the requires but this A be and the programs said, it times trip within come the borders they're trips. Canada that they of travel our can encouraged, to they're going summer. summer be So planning population for U.S.,

As and that's Iceland corridor. at the the same travel a accelerates natural U.K., its vaccination program

year though exciting of chop that it's in that energy is open 'XX cautiously lot we're seeing yet of for years the by travel. and to that getting to wood two So three Particularly to to terms well. and depending quite focus borders And attention we're years on on as encouraged 'XX out contracting There again, return remember, see travel a we're optimistic. because the or the trade out the market.

Tyler Batory

have don't maybe drive perhaps as perhaps bookings to the spend would mean, to on reopen is some until for that would gas in Okay, of I I need of borders might that you the trying the you spend try want bookings. much you because ramp otherwise to pent-up imagine the and as terms some wait marketing or there demand step really to to of and then up to

David Barry

Yes, fly. productive from now Alaska, Alaska, those we're sense if again not in will that campaign surgical, planes fly. the be right XX the working sail, to lower to for we Even a will to be which -- travel super the cruise ships trying so honest those have planes all

So We're Jasper we're encouraged interest. mean for really and is Park encouraged that. when and a that -- a interesting great Lodges Mountain have controlling a -- the acquired by Jasper, I acquisition we us was group quite by

real response well. producer has So campaigns and strong regional we're the a to Jasper as been there seeing

Website So is a follow keep to this pay to again other on that centers momentum to visitation planning strong, to responding surgical interesting of trying call guests working be to job variety consumer moving. for and attention we're are we're rhythm a great trying summer. the inquiries doing and booking patterns strong, and are things

to so about something spent home and much have they're people time it. excited that ready many they're this so do think doing at I summer

Tyler Batory

for probably a And think. I great. question Ellen, Okay,

guidance $XX the $XX the quarter, there to cash outflow, $XX delta operating million operating the original Just bit on million the the little you on cash flow? you're is fourth about more a in million, talk can

Ellen Ingersoll

lower saw we that and QX in operating why which in $XX that Yes, QX, working for we favorable and mainly is for to million we bit expect $XX saw make capital at QX was million touched in $XX flow the due work we and QX. QX. capital cash in to QX, a It's to it probably less it's

Tyler Batory

out the change, any helpful. any around thoughts -- what's those opportunities great. there? here. environment might provide of just but about question Any know the every we've topics pipeline What Steve, mean, last have an if over update be be the And talked I and could couple on M&A. I Okay, past just quarter, this looks you in like? then, the wondering on thoughts you similarly would months? What if the

Steve Moster

continuing I Pursuit and Yeah, in opportunity for has both industries well Buy creates the we is think on talked And, years. focus perspective. Refresh, Build, We've opportunities our caused us and pandemic pipeline think come disruption our about worked strategy from that our the that focus of that sale will over to that way that time. M&A the that's before over there's

so, in And plus liquidity invest future. to in we're a committed that our our to ability balancing

encouraged so, and we're And it. about can see, that's by what I we all say

Tyler Batory

Appreciate and very it. detail. thank you for for the good good Okay, that's very much

Steve Moster

Tyler. Thanks,

Operator

Research. Kartik next Northcoast your have from Mehta question from We

open. is line Your

Kartik Mehta

other outside Thank positive of anticipating MINExpo, I ask negative? or you. Steve, airport rotation wanted any show you to XXXX are

Steve Moster

place. non-annual the were to Good question, take that we events Kartik. scheduled three had In XXXX,

the Fortunately, CONEXPO place to take was XXXX. early of part able in

did take hold their IMTS other same year and to this until and The rotation, XXXX. place. timeframe not MINExpo IMTS of cancel and events decided this its well just two MINExpo because did postpone as

the not that, large they out but fall pieces three and are smaller are where XXXX. there So for that's those ones

Kartik Mehta

the terms anticipated attendance What's know, year smaller. to -- little will of be hard in but everything from a is And you in don't tell the to going have point like normalized be would at probably MINExpo? a generation? MINExpo's and I bit what what's this show normal revenue revenue

Steve Moster

Yeah.

show it into three we XXXX largest $XXX the bunch events drive those our of in would of one incremental it. economics non-annual of in scale is million so of of events, some get that don't terms X annual smaller reasons, large a MINExpo we for about may we that of individual argue First, talked but I you of one revenue, the gives guidance and is that three the

Kartik Mehta

you once side, the revenue Pursuit on other and GES companies the talked position return. have able little on obviously of margins you But just on in then side a you And bit to Pursuit, been terms also is not similar Could changes? the business the a look past, possible? necessarily they in Pursuit be some pattern better or see Pursuit make of type happened than margins where that's just could follow

Steve Moster

economic and view we the those we it, anything's are and sort levels pandemic through have and performance that price as benefited Pursuit traditional you But is get to from put energy look we've the do and think, that we margin it we itself returns XX strong certainly is rebuild at mean, possible. effort poised I an you -- that short-term and I effect, will for world by did, the XX, expect coverage. on the that Well, of and the business our our return into, for XX, a strong encouraged Pursuit recovery business across margin business

about that. enthusiastic we're So,

Kartik Mehta

Thank very it. you Appreciate much.

Steve Moster

Thanks.

Operator

have Haimes We next from Sage Management. from question Asset your Barry

open. is line Your

Barry Haimes

for taking much so Thanks question. my

first for First question. full finish Capex first what number could Thanks. the tell one maintenance would year, if two is, us look on full at but how So, Capex. to feel the the then, quarter, Ellen, a projects? you that's I the just be? Capex, for think you much you numbers XXXX year gave Capex And

Ellen Ingersoll

Sure. Vegas on FlyOver $XX about The Las Capex million. is

So, is for XXXX maintenance on Scott a X% XXXX about X%. haven't that we in Capex, of minimal tip these percent revenue full in for Capex will put given X% and that GES what to Pursuit all which be year, to the guidance and

Barry Haimes

revenue year normal a Versus two. on Right? those

Ellen Ingersoll

will well Capex a projects then And as perspective. from correct. other the Pursuit throughout growth year have That's

Barry Haimes

August second about you the when the progressed half I've so or or Okay, talked the far. advance, so kind great, How call if is the September for of far that's then, October. okay made guys client? on lined we generally is And question, do people have as up of July decision, But, part how how very make year, or through know looking the the you GES in to far show helpful. actually advanced

Steve Moster

when that's Their because spending it of the three exhibitors thinking that to within vary I to the they that will to think but place by money sure decision. events towards place. decision make assume a client, safe happen, And Really, months does take out not want doesn't advancing about you're two that. start typically, to make to

place. event about takes before think two you So, three months the to

Barry Haimes

And Okay, have GES what and question, Do any international great, normally of helpful. that? of attendees domestic? then the one terms the other gauge you exhibitors rough come of versus what percent from of that's percent of sort in

Steve Moster

marketplace XX% give the a it tends that you in kind serving XX%. to rough to of industry To be Yeah. began they're it very the by gauge but

Some will go to the estimate think new fair significantly But significantly for XX% higher, are gross reasonable. market. lower is some XX% I a more much at

Barry Haimes

you might it to the And Great. is, of of last opening to border is question in is it. decide the what are issue the given total the they a what have Canadian my any wildcard U.S., the COVID-XX or vis-a-vis criteria Got terms when? indication as

Steve Moster

interesting, it's question. good That's Barry,

forth and a both so trading the exchange the government, partners So together. mean, and we're U.S. is massive on. significant Canadian both transportation governments, of government work countries. There goods I between back in

vaccines. can to So, possibly as the a borders the think everyone of they acceleration as same important get the open being of is on XX time, at I

that that short -- So, term North first within I open for helpful us people will be American traveling and America think because in very the will obviously North expect it sphere. be will the we

going discussion of on. lots So,

as progress the is open and working to can things as well-informed we're they think fast to think I get as I everyone safely.

Barry Haimes

for much look the of year. on good the lots input and very thanks Great,

Steve Moster

Barry. Thanks,

David Barry

Thank you.

Operator

O'Hara Steve Sidoti have your from question We next from & Company.

open. line Your is

Steve O'Hara

taking Hi, thanks for the question.

Steve Moster

Thank you.

Steve O'Hara

Hi.

change. relevant kind of there axed kind obviously GES, on old now, more a under a lowest the if that too potential were but talk the to now given been variable margins you right wondering peak, net of it's I'm Just of the offset about little evolving that that guess maybe it's the down to maybe offset bit Is system, I would have just starting just structure, not the maybe structure. there the is road? maybe cost Can moving what

Steve Moster

a good what were pretty is where event we able around this to we've in and in comes an it the back Yeah, out that's I've planning on able earlier high QX margin Orlando, on to revenue improvement this test fortunate mentioned were event. those a year on cost substantial past have outsourcing week what we're that, as certain question and particular some seen, to services. of We outsource the things be

tool implement margins about. from to out We And some talked pandemic, in automated event. we've able during the that able we particular that labor are on the developed flexible to rolled were with how the we processes happy very other also that they see that

we as go So as place the proof some we see that forward, is back. it's encouraging of events taking these come

smart it So we by downside; don't we're being outsource. work us is do about what think encouraged it. work is there I we what and

Steve O'Hara

because for region aspect, a will strong things to overall maybe or one And competitors until on the bid the take just you if are you you be on pick kind kind evolving. and business, to where that that's of of landscape the of that then Okay. see it for I maybe way bigger it kind while is things variable able geographies you're becoming how in becoming you're still kind -- mean and not you've have or of of regional -- -- can it more a you the even is another. return

Steve Moster

this that we doesn't We've worldwide, compete in to talked habits geographies that and before be definitely in. differently will we about we and what where market service change different do this before stand, have but made we able will same from the serve past, we operationally the can things, it really

and yeah, we're perspective. is will it it -- nothing excited from a change about geography So

Steve O'Hara

question. And of if before? of me is window cash in you you and what month get and maybe potentially what about even then had Pursuit solid more that -- a How you're remind that just last three maybe and happen? terms that in the a that much Can was quickly sense does to just you -- GES, kind if happens MINExpo burn the follow do it talking then XQ Okay. you have as two

David Barry

process the flow XXXX the talk equipment XXXX, years. sale is is in that's some that event Ellen about terms let occurs, buying component of of an It's every as toe. that at QX of bit versus major cash bat the little but I'll mining in MINExpo look four Well, a a only companies for held

participation, We from there strong exhibitors about. have has -- XXXX strong been interest in for oil even

So we'll and do want that we to that cash in lot event about interest to this believe guess I that we a and the talk happen of for is ready flow. there think be Ellen, place, taking the you fall. anything

Ellen Ingersoll

haven't cash was and flow but we about $XX given QX so QX. expecting in for burn Steve guidance we're positive cash Yeah, the QX, million,

on guidance So exact number. -- given haven't we the but

Steve O'Hara

Okay, right, very thank all you much.

David Barry

Steve. Thanks,

Operator

like questions CEO. the further turn would Moster, back I I'm Steve time. Mr. continue. conference and showing President at no this Sir, to to now please

Steve Moster

to and to interest you Thanks, look and Alexander. forward next quarter. I you. appreciate everybody's talking the Thank Viad in we again in time

Operator

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

now disconnect. may You

Viad (VVI) 12 Feb 212020 Q4 Earnings call transcript