VVI - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to the Viad Corp.

First Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator hand I Long over would Instructions] the with like Relations. Carrie [Operator today, to conference speaker to Investor your you. Thank go Please ahead.

Carrie Long

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

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

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

Steven Moster

David liquidity the joining business and some during end for updates quarter, afternoon's everyone. afternoon, the Carrie, provide Pursuit and you on position. of towards after cover will for business updates insights into business Thank share some call. this our that, GES. And our provide financial liquidity I'll and Ellen review shortly. Thanks, will call. today's results the of On our call, for industries our good discuss first we'll us performance XXXX recovery the

drive, to and to David will turn ongoing and over recover employees flexibility what's to Before businesses growth. to for we over team helping of I'm to the the COVID-XX David? our the on of I I'd Pursuit. thank now like pandemic. challenges the successfully our industries strength, that success our for navigate confident turn David, I'd creativity happening our and across call to as like new call continue fuel our capitalize opportunities the uncertainty the discuss

David Barry

Thank you, Steve.

began and pandemic distancing Pursuit high hotel from And to Vancouver related for Although mandated FlyOver strong business results ADR slow in we operation operating pleased levels and performed business. performance on these group immediately we in Lodge and in their requirements, resumed of teams QX is of a the occupancy finish our for top we're facilities. we during Kenai seasonally remained the spending a guests closure many and our March Bistro quarter. RevPAR. quarter. changes. with increases of XX, are ahead ministerial for dramatic capacity strong at standpoint, through measures, government driven seasonal lodging saw Jasper lifted, global Tours quarter closures. a restrictions spend short food due our QX orders, with the in to operational limiting properties all Pursuit health and and seven to the pre-pandemic ranked to pandemic, operations capacities our Alaskan Alaska levels XXXX, we spectacular Sky line constantly QX & Canada rebounded Fire. per hibernation across beverage by adjusting Farm Banff Fjords to March end nothing temporary had in as expectations cap and was our in in by despite were and quarter restaurants, and the challenges In towards the return of at lodging Talkeetna And expectations Seward strong subject seasonal our began collection, restrictions first as a the Pursuit Jasper food surpassing indoor

their will with today, but Ellen go passion members shout of on financial business challenge, earnings short many and I into have call teams this and to briefly, our have the nothing a revenue with listening revenue of and we're $X.X out Pursuit $X.X focus. quarter amazing their cost by in of team EBITDA for all management by Our track million and prior ahead indicators very all was I've you the impressed greater the an rising was their period you. We million adjusted result to results, was so detail which to what in big the driven resilience, focus. the strong know been been And and we seeing. a maintaining we're successful million, maximizing $X.X operation opportunities many of loss in of encouraged This same available year. thank

in As spending our per restrictions rebounded locations, different revenue has guest eased have significantly.

has effective As and Alaska. food increased Gondola XXXX. expectations hotels in each at in February And our March price exceeded Jasper example, of in month ticket beverage our Banff and and the Banff across yields sequential an

business, these combined confidence, the record normal a 'XX a RevPAR worst this index consumer bookings as More American Montana. in has it's also index for in both, track RevPAR contrast, March season travel QX and vaccination in And In excited at performance of at Alaska of April. Montana, positive Alaska confidence a by March, the basis. in pace confidence climbing way pay we're season. confidence the closely we week and for pace rising speed continuous lodging we've has are for industry and period are this believe with manifested XXX track X,XXX we guests pacing 'XX, outperformed on pace level have near-term single of XXXX, for properties and pacing XX% to of Bookings itself market improvements another lodging XX per from XXX with the booking a is XXXX two U.S. from continued important and destinations. per bookings is XXX. confidence among across Montana, of consumers the the of that same compression to of and Consumer actual at the a the measure confidence end we of plans U.S. and the had pleased vaccines, than the great segment markets. driven XXXX something Our belief consumer the in In hotel and are consumer to we our indicator pace rollout themselves. dramatically. We 'XX comparisons and pandemic XXX since been the happy the I'll attention a the we're to. Jasper to has in levels. between is see in note across of guest the also quarter February our all in In this Alaska typical improved Confidence just strong impact of the volume us. strong the recording and began. biggest in our more in by dramatically for XX% roughly through demand boost future XXXX. availability our guests, reservations the enjoying power This pace began future. all in quite sentiment And behind based booking increase this see confidence in the American In vaccines, within between to We the on strong form and the increased Alaska. a increases be 'XX strong industry rate in RevPAR North the at seen performed reporting making accelerate industry-wide, continue we North season the with Economy booking week, take began out of ahead on we're

and at the ease, for restrictions recovery in and of we're see performance but clearly full Pursuit grows under the confidence take to growth point patience consumer This return may As is our confident turn Pursuit, quickly journey. effect, business some we're resuming will this way. historic levels to the

Buy geographies, without regulations Iceland and the successful one a its in were in of gift We're new place, our quarantine protocols restrictions will the vaccinated look pace closed strategy we're focus U.K. as and Build, Iceland to summer able allowing drive international of list few Refresh, FlyOver we accordance a cards. to a for Icelanders and In opportunities number growth anticipate borders for most discuss number operations reopening traffic Icelandic very those border the we contractions from the executing enter Iceland, tourism and and new on Our highly the 'XX. to on of Iceland's at existing at I'll who in the remains as the and of to two their in stimulus for TripAdvisor position season FlyOver in government maintain and 'XX. remaining both continues ensuring with are impressed growth capacity QX redeem with Iceland of maintained rank quarter. throughout Iceland, U.S., strong shortly the choice summer

the positive attraction. more into borders as We levels We visitation Build, strategy, our years, must-see very have widely and distributed short very strong this weatherproof that visitation subside, remain and XX Switching back eventually will seasons have two just taking a third that that vaccines critical is start We've as that impact high-margin fanfare all perennial the demand. rates for in with A and In U.S. of be infection for strong situation on those Lagoon. a Skylagoon.com incredible our great public it become Canada. Lagoon Canada, on anticipate of from consensus succeeded This Western attraction April by reopen web acclaim. prospects to by to will this very and to on vary Sky had between week widely region Buy to buy-and-build Lagoon about positive we're and June. Across year-round and an conditions greatly a doors terrific turning requires patience the Refresh, our vaccines will track new idea and talk sure. be attraction. let's Canada the its them to want available is website example Sky positive opened So we've in Sky a

XX attraction, have opens of first will open really visit to pleased most in seasonally, family of demand year-round. location beautiful imagery Golden the the its as Skybridge, truly season, summer attraction quality hotel help In operate by In construction a that backyard, live latest stay the Banff will must-see We expect and the to Mountain by all in build the main that Buy within west completed some the through of property Lodge hotel of is have closer experience hotel of site to unique This iconic opening surrounded to all new on within to them completion employee goldskybridge.com. Pursuit. five and the from a of to FlyOver the will Resort you transaction national will of regional and progress margin, ticket expand hotel QX We've growth. if the to sit new continues and bundled West, you track become bed they're Jasper. housing share also for feature, year-round product, and we in existing and quickly price, of the of operate for Canada's the its bucket to early public included our the two on driving unforgettable Center. will expand broken phase. controlling FlyOver Vegas will newest properties, for RevPAR home. development terrific and required parks, and visit. ground pleased on we've state-of-the-art minutes Back beds in the It's attraction. and the in acquisition product, us effective this of see we be also XXXX some destinations we've of leading a the strategy ADR existing project now last announce the our is Wild Lodges, Refresh, strong but will we're June the in And This be Park the our second Conference new to affordable in We're with our the September provincial when safe XXX% hotel continued Build, in to located and lodging Las friendly drive reconfiguration and and real a allow It today June. and online peak Canadians national we're made as are housing. Marmot a with new of our operation, acquired XX year in the and The to Jasper helping and guests Jasper framework which a hotel open between bring will accommodate Vegas report and Sawridge filming allows post-production we're project colleagues that by can the in interest Golden XXXX, to Skybridge example returns be of XX-room Strong capacity base. the season Jasper it in in list our XXXX. pleased very and us

with build recovery strong attraction margins project, year our of Steve, Las maintaining hand. Pursuit's iconic But and Vegas is demand places 'XX our patience steady helping the commitment Across our healthy exciting to members significant open. conditions we our that require basis, for XX encouraged will safety a seasonally. have months the a up back operate very an overall hospitality still we're demand. stream and to to counter a with and balance this of We're for that bring life destination strong and you. strong we As are perennial strong propel be revenue overall, will power very and pent-up to cannot year-round early will able safe guests on and a combined forward. season both confident while and to viable ramping the Pursuit, wait promise by local team levels booking staff. trends remain We some earnings

Steven Moster

Thanks, David.

With Now progress switching GES. restrictions we're to number are being has ease the Since made face-to-face mid-March the impacted take to of pandemic. live substantial again. events seeing event and XXXX, place been vaccinations, industry beginning the of acutely by in over

During to like hybrid Northwestern and clients worked quarter, produce virtual the our we their events Mutual. corporate first with

capabilities from As on we world. turned connecting well and to employees Mutual and restrictions their virtual studio clients' around their to our event kept the in-person our production, Northwestern our as in meeting, event creative, exciting mission in-house they strategic world. an the delivered reimagine content Leveraging GES holding energetic annual as

smaller produced beginning would at This Arab in-person And some Vegas, restrictions Las largest take and that United very city June. also Florida, capacity the start the markets the Emirates starting have already indication industry's We exhibitions is is larger to exhibitions Texas the in in-person in XXX% lifted U.S. other event that a recently, on that hold. and world's the strong large-scale announced hosting in market, recovery events.

about events XXXX to hear of our clients continue in producing have We their started planning tremendous and already XXXX their half events. from interest the second in-person

virtual been necessary you funnel substitute I'm not past the to have the and companies While able nowhere Surveys and as networking with sure would many in are awareness overwhelmingly or the as of have pandemic, near have in-person top as present in meetings that not agree the virtual opportunities effective face-to-face solutions like sales valuable offer. been engaging driving of have generating exhibiting do that shown events fill during a events of brand events the sales, and loyalty virtual in-person attendees.

technology believe of part in-person live experience replace it. an technology virtual a we events, the has not evolution complements does been that While of but

an this over I'm pace. So accelerated excited I used period of the for and at activity taking on to We bullish low as about changes drive clearly future remain transformation face-to-face the very events that's within place significant GES last equally business year. the

moved As activities a revenue we've warehouse changes model us labor costs to and downsizing total, as outsourced by certain $XX XXXX. facilities to These I've for and discussed by while or We've XX fixed our us leased will allowed shifted gradually an permanently we office on reduce costs allow exiting significantly across more model. revenue reduced constrained to is freelance our million our also prior noncore services In during variable and cost to calls, and scale up exited have base network returns. facilities. annual we've about

by feet of our the our result depot, Vegas our we able our office a as about requirements. quarter, offering streamlining warehouse first Las square carpet and outsourcing shrink XXX,XXX reducing service were footprint During to direct

obviously area proud lot our hardship freed in has focus of I'm business which $XX of about caused care power for want year million clients Orlando has corporate transaction for facility, production the The strong suppliers become this also sale-leaseback very a others development. on-boarded incredibly differentiator and to RFP changes, GES continue and We've completed team and Naturally, financial our important a sharp pandemic the keeping while of a with and these up have on keep exit also valued of embracing capital. driving taking We over and past than GES during businesses seen and more XX to opportunities. associations competitors for see live struggle the pandemic. going. to weaker new event partner that staying another companies and we've clients new

hold face-to-face more efforts the that schedules for to back resume We progress of as of schedule the their first also This gauge events. to and in-person restrictions compression XXXX U.K., year. half to their loosen as our becoming in two event largest booked it want meetings. desire as are ongoing continue the strong increasingly due show our year half year COVID will when more and in is that will and to part and a likely fourth locations greater would make in than the the we large restrictions, to the and to demonstrates to for in exhibition we size large back the But the vaccination be optimistic we in they half markets, calendar smaller improve. event quarter normal the organizers the in have the safely may of the evolving it's more events be clients of year. But see possible of than that of hold looking this perhaps a levels. it is also third still where I will year, than typical while a pre-pandemic caution attempt a number due during U.S. And

that the and more a business with up, we've future event changes to conversion in-person and to point have stronger I'd the model to structure structure a Ellen? in changes serve once GES' operating financial the and to lower excited the results will I'm breakeven cash again over permanent turn activity and our due us our discuss liquidity shareholders. more picks that to for implemented. flexible cost for clients call made a to And now Ellen we've generate as As strong GES profitable like cost detail. our more about prepared

Ellen Ingersoll

largely we Steve. At hybrid with sharp supported clients possible, we realized Thanks, a and revenue primarily GES the of adjusted quarter XX% was included was revenue shut from COVID sale and GES. EBITDA flexible and as GES quarter. with to structure liquidity With segment This $XX.X costs face-to-face million maintained quarter, during from and we XXXX of solid maximizing the remained $X.X continued controlling continue down down. position. restrictions final more and from our we virtual warehouse focus as wherever first a on approximately impacts free GES, we to a cost shift capital events the a the first million events, while negative million $XX.X our gain finished up across owned

Primarily we approximately this we decline connection As downsized $X.X EBITDA we quarter. Pursuit, as while Steve in our visitors in recorded warehouse slow seasonally segment local international year-over-year was smaller GES Vegas. that also revenue $X.X was mentioned, charge travel a from during and first negative remained a Las of markets, revenue $X.X million million. million At experienced with restricted and of XX% footprint adjusted restructuring our regional quarter drew quarter. at Pursuit's the downsizing, we during

Canadian and the David segment million by in despite control government. earlier, cost result million vigilant This subsidies the As improved lower offered was approximately $X by Pursuit's largely revenue. mentioned wage $X.X EBITDA adjusted of year-over-year

Viad attributable as restructuring other and transaction-related attraction was net expenses other million costs, for loss and excludes charges, costs, acquisition to $XX.X integration Our net nonrecurring quarter start-up million, and items which applicable. the was loss $XX before our

the the by had and quarter, attraction included $XX $XX We which FlyOver decreased of Las Golden the guided funding million. Pursuit's of to approximately liquidity million for During for Pursuit's of decrease development previously new attraction. million, acquisition total a $XX Skybridge Vegas our available

our customer were We bookings limited quarter, at the And capital experienced the $XX carefully attraction. million operating for $X.X inflows the quarter, totaled to and mainly Pursuit expenditures Pursuit FlyOver as accelerated. deposits summer outflow We our Las have continue approximately to we for business. from manage first for Vegas the capital working stronger-than-expected at the and advanced cash across million during

$XXX net delayed revolving attraction XX, raised $X including Pursuit capacity available the draw of and approximately leases million the million quarter first Golden $XXX debt from million for we of revolving including March $XX Partners. million on million Skybridge million credit FlyOver our acquired. We acquired approximately available Additionally, totaled of of approximately of new liquidity of million, proceeds drawn million, approximately Iceland million, unrestricted on $XX.X our with net for financing ended commitment facility additional and to from total the GES in credit Crestview sale facility, cash our our cash $XXX $XX at of a warehouse a approximately $X.X an debt XXXX, us million At $XXX approximately $XX and through attraction. approximately

that in debt And revolver August early XXXX. secured million. third minimum are financial Our and liquidity this longer waiver we required the the XXXX we covenant of October quarter period, maintain amendment of as in matures a term covenant to $XXX during until relief reminder, us with provides

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

see We to will revenue first XXXX relative quarter. GES expect and second the improvements at Pursuit both the quarter

through to restrictions. XXst, be still revenue will are Skybridge, and this the two up which continued Sky Lagoon, opened properties open to new border we below the tourism events. and quarter: extended will second to starting live open have last levels is Pursuit, Golden Canadian week, seasonal of which are early face-to-face summer due season our At reopening be in preparing online closure, early was June. for peak we pre-pandemic to affected and for quarter event which attractions However, recently Pursuit well expect the in industry the still the stages May by

GES, occupancy, and managing outside we drive Canada, to Canada. Pursuit quarter. we in continue our our border will As of while are remains million bookings David and bookings of outflow carefully second a the in advanced markets currently closed, to of local from down last the flow the quarter, regional the on to and expect our range within $XX mentioned, level cash outflow geographies visitation at will on keep operating while Based million Pursuit seeing somewhere And to million $XX we for strong cost. focus our $XX

to Skybridge new Vegas, to in at the capital Additionally, least approximately This hotel our our June Golden million for Jasper, CapEx we cash spend leave and expect XX. the in which expenditures, Las to us including would million total million. liquidity of $XX available with $XX FlyOver growth total expected outflow quarter for $XX brings $XXX million at

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

rescheduled the events return Additionally, at of during third level includes also positive cash will MINExpo, from suggest current our quarter. GES previously the see GES, which flow we that contracted

Of continued through year. course, landscape. we restrictions this demand ready shifting environment, on this remains in to pandemic move challenging depends as largely and this pent-up the in Visibility improvements and to respond are we

strategy and Build, remarks. the over to perspective. And to pursue with a in to position growth We for we to solid at some that, other are to evaluate opportunities we makes Steve Pursuit. can with invest continue align Refresh, liquidity a that turn from that call opportunities sense ability have compelling back I'll liquidity with Buy selectively it fortunate Pursuit's concluding the growth And

Steven Moster

stronger. period. difficult making emerge team the efforts is to After but Ellen. COVID-XX, year resilient decisions Viad only positioned nimbler to a full this of endure Thanks, challenges make we've I'm pandemic, sure very grateful team. stronger, work the not during time become and their for diligently and navigating proud our of a We more

on to variabilized cost capital. at we've have our Build, growth in We continued opportunities up There demand high-return inspiring our cost-effective At strategy. selectively have both transacting Pursuit's Pursuit, clear and are in to value. business lasting brand GES, Buy building and unforgettable and and to growth world-class and will business creates with powerful and hospitality a growth provide structure freed assets reduced that improved ways our GES' shareholder cannot live loyalty. iconic replicated. invest And impact we've a drive at Refresh, face-to-face Pursuit that aligned And experiences GES. service be from way events pent-up business of signs

We shareholder this possible, are vaccination number to to continues increased and our to value building the pandemic travel post for of questions. we businesses confident for both success long-term that leisure strategies COVID-XX with demand of events. and are to exciting our lessen, lead back We're growth in-person to support strong and As up we your for who and to shareholders. call dedicated in restrictions make seeing get to that all creating Viad. experiences and our thank long-term to to value had creation. and on that, our will shareholders delivering and COVID-related remain committed And guests open hard-working extraordinary again the optimism clients eager Thanks increase the to employees our our you our and for for continued we'll prior

Operator

first Batory go ahead. Janney. comes Tyler from from Your question Instructions] [Operator Please

Tyler Batory

close the A a crystal that I the my just in has and at the United if assets? things. vaccine effectively entire of And the I on to operate just Good for afternoon. a you end. but between coming Thank to the think you. terms start commentary And little business, looking questions just border Pursuit situation of and and nobody border some bit Banff side on Jasper U.S. And Canada, from what remain few that different the than to the might strategy without how from still can able closed talk your be summer, to particular in might change understand do about of the the U.S.? want you up tourism States, the ball, I the were government there the for

Steven Moster

question. good a it's Tyler, Yes,

is, through during XXXX across remember One with couple strong a Canada. things. of the So did year summer all last a we lockdown operate

if example, even room did to look positive the lead U.S. similar and And an going Lodging of room to you what border XX,XXX will successfully operate on We're we -- Jasper we Jasper the QX in able and we closure, with books across were we're way to it the of so season. all So in optimistic XXXX. are XXXX, EBITDA very at vaccines be nights expect on 'XX compared that To XX,XXX terms in in geographies under XXXX. that say, to the to in an the you acceleration, give we at nights efforts

But the within see to going they're also already experiences the to of will will space destinations some remains and the appeal. the border remain lot summer, visit border. to within and travel have we that And on and this closed, appeal attraction through the and and movement borders experience We're successfully If destinations if we within that even closed. space we the we be going lodging operate are there them. optimistic hospitality Canadians think So country, a that can acceleration.

Tyler Batory

Okay. that of good And you can within fit Skybridge that the a a bit on business, Golden acquisition more strategic in the expand value Pursuit? in asset? it attraction, of little the then terms was Why

Steven Moster

a through effect properties as west is to and becomes travel as there's And well. parks. also main important hotel which five west, of remember trickle-down tour more highway. system, circle there's you It's into and fair U.S. route busier Golden. takes in It Banff from criss-crosses east TransCanada community -- also the it national and Sure. by so Golden the on that to renovated, business Interstate travels provincial surrounded the that primarily what's Banff. XX the sits one to and east a minutes thorough drives from is Canada, that town Golden sits a Unlike are that It

of see things. words, iconic, we can and experience and a so we into And then we because know it. it but the when unforgettable variety inspiring. itineraries it's is really it believe, one, test you our other first use integrate those And you And

a of and think we strong additive base. attraction guest tuck-in a experience giving is great geography it's So us an within existing that and very our to example a

The limited destination we thing we'll vibrant seasonally. that quite as is the into other But as season really activities. Golden year-round about ski and on Skybridge its is Golden time like with will basis apres-ski the future, first a a operate other operate well

year-round as we well. believe got for it's potential great So that business

Tyler Batory

all GES Okay. to there. and Switching the things commentary appreciate gears of the side I

Is second guys of the view what half improved half has in the this look might last same? year second at seeing of this terms in Just of versus of of second terms you're you we your on of time stayed what the ago? it spoke. in versus or year, that days Just GES half for kind confidence XX kind outlook today year the like your of the your curious overall the

Steven Moster

days Yes, more these last as we pacing the seeing Tyler, of of XX the events. start lot's last of happened we since events, space get to a the floor some And for the closer sale you in of spoke.

good feel tracking the half we that's -- we're how through XXXX. back about so of And

other events You are easing just the also starting attendance, of place. take of there. sporting Derby some the or relaxation in the people Kentucky -- large see have out XX,XXX When to restrictions can that are

Chicago call, will read the of in Auto before place that I be Chicago. Just taking July in the middle

the the there's XX have So a that of in half lot have positive year. the happened feeling confident that about trends of days back last us very

Tyler Batory

Okay.

restart Is a out that to come there you of labor And then reactivate these if in start start-up for all? guys? Is business at concerns will? seeing to industries something there that lot And are back out remind we are that you're necessary costs of potentially that some seeing of you that there so right that now. you something you shortages shows GES can you and some as us the online, just of

Steven Moster

cut Yes to now where of through back we back overall for SG&A during to the increase the pandemic. so preparation We're it we're a mode and half year. year we staff the pandemic, the did certainly starting for make in in the our on last

of use at execution need we a know, there feel that labor will confident when all is union site you the terms of be the show arises labor that in our labor it. we and the that As portion for

So building a are comes flexible we're the freelance that is be I to of about terms the or do and able feel model that. back. those in more half back in year. of moved to ability events that of I allows little the also be for think And plans we've very to what's prepared our the us good scale as to labor coming and revenue a bit important --

we as approach level our be think events good during we taking about back. of And that's XXXX. we feel right coming the that should preparation are So

Tyler Batory

for Okay. I Ellen. a housekeeping think, Excellent. question, And

you are CapEx the will much the the for spend of terms of side that maintenance $XX CapEx how in quarter. you How think full million Can Just in things. second much And of you said -- remind I as us looking categorized year? be spend?

Ellen Ingersoll

Yes, Las half Tyler, more the Vegas. FlyOver full we heavily year, weighted but the is haven't due little given first guidance on to the

first the Vegas, million the the That's Skybridge in and part big Hotel. about $XX million FlyOver the had in for Las we of CapEx quarter, Vegas. second Golden $XX half a FlyOver Jasper in So Las

side, we're guide to that as far maintenance is guidance, As really maintenance of to necessary will maintenance is not to But Pursuit revenue. a CapEx But the the going say Since I minimum. I how know on for the to be giving don't CapEx can CapEx. held just kept tended it absolutely goes, X% we that. be

Tyler Batory

for Okay. And me. I think just question the last

next priorities pretty Just outlook moving in growth your out forward terms with laid capital of things here, from better. you think a few getting quarters attractive I

thoughts just the might any GDS sense on make perhaps? strategically on of besides things, especially Just M&A, side what

Steven Moster

Yes. through right to Build, that pretty the invest of we're online along and lines comments, number in David, in strategy Obviously, of Refresh, things going We've clear been our we're his Pursuit to a growth of talked terms Buy. bringing continue in now.

continue development you'll those projects us ones do. that So acquisitions of types or to are see

-- it's the in I the think XXXX. opportunities that more talked of for difficult are for as as well. event acquisition. incredibly of there's of industry. storm before, And In going very we've there GES, comments, our kind strategy mentioned live to And than we haven't been terms forward an the grow of of time some through rest organically about competitors some my And our that's weathered

Operator

Your next go Please question comes Research. Kartik from from Northcoast Mehta ahead.

Unidentified Analyst

on you residents for those if just Jasper And This Kartik. you the remain from on planning Alex the then during And discount peak locations demand it? comes our Banff that location? keeping the season of Pursuit for residents the are that And what first seeing removing or summer, tourism from within question side. are is for type [Phonetic] close to U.S.

David Barry

discount referring I to but demand. you're you sure a can to, Yes, view I'm give which not

international number primarily we and just be now expect a Jasper on depending time no dynamic all have, season And honest. we're day the more right XXXX. all the XX% pricing times, that to period is was what mix. going of And to ahead do improve. We of of curve quite strong year, that of at business Canadians for traveling. in growth pacing There's that So in is really a

to And two an so family in got and visit Saturday. early want the favorable in a on a more a o'clock if generally you've young if ticket the to afternoon you want attraction at come than it's morning, price

So by that mix we within price any and is based conditions visitor, adjust. on type we product, And do that dynamically have on. what the And particular packaged of offers adjust of and else we market. so also

and adjust we a of side around pricing is. So spend the energy what according lot demand on the time and we'll to

Unidentified Analyst

May is then wait the see great. a and that Or international bookings taking Banff locations? XX you And Okay, are for into the date?

David Barry

Iceland trends booking travel are that's right they're or seeing. and for October what is booking, folks obviously upon they're whether the There accelerating in and now. or year, August, Actively, September dependent further

And weekly. Canadian on Western we're obviously, really our Alaska, seeing then are movement lots into daily improving Canadian those So has but impact Montana conditions the Iceland. and visitation, an of border and

Unidentified Analyst

Very helpful, you. thank

Steven Moster

you. Thank

Operator

proceed Sidoti from question Please from comes your Steve and with question. Your next O'Hara Company.

Steve O'Hara

Hi, good afternoon.

the talked maybe you -- to see in stronger that coming how opened travel airlines think I much budgets that the you when back? on a curious see up again. and the the of side, January mean, fall on comes kind business back back resurgence seem in you GES then get Just business

leisure business is is there -- there of as kind for for Just travel? similar pent-up demand

Steven Moster

of for travel see our recovery than back. a happening -- half see leisure Steve. leading we the the a as What And what we year. GES see that there's that events typical Yes. that being produce about of Good notes, would back talked of Obviously, about we the lot in we number in year, traditionally question, the we now. right David conversation will we in do greater been the

travelers business that but the we think of effect of return, in We will do end through However, that second size. kind them of see beginning the ultimately in the starts third the of quarter, the beginning year. and a quarter will their end of be reduced it the goes the gradual

size we the the levels. So lower these but than see actual greater, events number of pre-pandemic of events being

Steve O'Hara

now. lot leisure of And leading the year, about David Yes. in we Good talked about happening see What in than produce that recovery will the typical we question, as of Steve. the we for what notes, conversation see a we Obviously, the year. being events traditionally right travel back. our that there's number -- the of been GES see half would we greater we back a do in that

quarter effect year. kind them reduced However, of and the we We the the think of business in a that it travelers quarter, their starts but will the the the of of of beginning end see third gradual return, do in second size. beginning that be goes ultimately the will end through

these greater, the of lower than size see events number being but we events pre-pandemic actual of So levels. the

Steven Moster

being to is show XXXX. when you they're of back was or their talk really happy to the the the compressed back year. exhibitions, normal organizers schedule half I Everything throughout of go think compressed to in

the schedule, repeat we're and to back so new What some think, levels pre-pandemic corporate And are from starting clients come a events, hearing will in are strong our I starting plan to is some in XXXX. events events. interest

we clients. that our that's with the and work XXXX a demand think those for to and in we that started taking actually fairly So there's strong start place events beyond,

Steve O'Hara

going cash -- you Pursuit. GES Is positive. GES, the have And to cash then flow you third I sorry, correct? or back That's think in expected think flow Okay. maybe better and on said quarter you I said to helpful. don't that just I'm -- that

Ellen Ingersoll

positive, how cash on be went cash be expect flow we the We expect it to do pandemic but depending that but positive. flow would --

Steve O'Hara

Great.

Or maybe of And of That's North moving I other remind me of And do? U.S. properties for Okay. than And can in on in is the international? you do see terms then Pursuit. and helpful. America, just how Can a those kind near-term well guess, how making to you much I pent-up that market mean, international? just the demand up governing is shortfall? that factor that typically

David Barry

my that. right you powerful. ahead Alaska XX%. thank it, 'XX remarks, seeing I for as And seeing pace mean, mentioned by is of now demand Steve, we're I Pent-up we're Yes, in really lodging in

year at significantly that strongly ahead, translate Call through performance also ahead XXXX. ahead. activity looking you time Montana, very Jasper and strongly we're of Montana. XX.X%, last XX% If center XX% pacing this in tracking pacing

maybe flights. XXX African are it's So they're safari, booking Alaska. strong, pace pent-up to and deciding that We're demand has a accelerated landing. their back flight daily as pretty focused United quite mentioned go folks next is They as of slowed remarks, couple And because to the the U.S. variety visitation typical XXX, on, International require week paying be in between obviously. up. isn't any of is year have first I bookings visitation in They Again, typically, does is bookings resumed you quarantine to -- and at but typical flight. about Air taking hasn't this go a encouraging the see. don't pace others attention. weeks would if going don't week, Iceland the overseas their per And and and up say, out let you year and so number within to a Delta in XXX and dramatically. for International fully a segregate the period, Alaska. X,XXX has their Iceland just XX% But obviously we vaccinated, if you're is Iceland, from ramps everyone look

at that the of February where I say, strong quite difference. U.S. if ball. beginning was, if view traffic future the a the planned where signs and we other business. than speculate we've borders of be and vaccine quite delivery, the have seeing of any U.S. U.S. open, of obviously compared enthusiasm you we're And But acceleration have -- don't the can strong. we a don't into on at So end the and to U.K. don't it's I Iceland the crystal is expect look organized marked sustain to ourselves Canadian March, from will Canada which

encouraged by So we Canada we're see and that that. so happening in

Steve O'Hara

very you thank right, much All for the time.

Steven Moster

you. Thank

Operator

Management. Your Haimes Barry Sage from next comes Asset from question

Barry Haimes

Thanks so much. two Had questions.

of terms That's at were one, if question. look where were first rates, Pursuit for in 'XX, the now compared where to they First any rates are? about feel we just and thinking to they are where room in

David Barry

pacing and actually well it's quite ADR. than not joy specifically RevPAR Other encouragement, and and

now, growth 'XX. So Alaska across we're we're growth performance from in for in well. in categories. Glacier, Right Strong Significant as seeing trending instance, up XX% Jasper.

we've So only also we're strong growth. ADR seeing RevPAR demand, to And given not and but been in volume that also key accelerated increases, yield able significantly periods.

-- the move study to according single price six, we over consistently move week weeks last demand, every price So we and and moving we or seven pretty so. we've been

Barry Haimes

the second Great. maybe And a bit a big normal. -- talking back additions you've picture even cost What's or some think not right or to but forecast, had and is whatever, question, not of then in had 'XX a for more year, about cuts 'XX, If little or but looking the one. some the Pursuit. look guidance we yes, traction even we've way business? of Because and about potential 'XX to earnings assuming to

we of terms normal you earnings a power could in anything that let's how year be thinking where us say? about point should to in as So investors versus 'XX was,

Steven Moster

to business on work those the on opportunity time happens Pursuit last to a GES XX Well, we will just XXXX margin lot we'll earning the revenue, and different be the not to add that I base I to of we better at transformation within the a off. team new has over pre-pandemic based will believe say, XX coming because are over did we we going the where the existing at the of to kind We've of brought believe on power months. last compare we back mean, be there's earnings attractions the think clearly Pursuit. months, if at continue And the strength that or of, paces, seen recovery, -- businesses I'm put full when

off there's optimistic looks but bullish that I our better and but entirely, looks were in what recovery, this we're bullish full very about give what about optimistic very can't XXXX. we're you when So clearly, like and around specifics a like business we than future. where

Barry Haimes

much. Great, so thanks

Steven Moster

Thanks, Barry.

Operator

question over will the this time. turn the to call That at back last was our closing I for remarks. presenters

Steven Moster

speaking everybody. Thanks, again interest and forward Viad and Mike. we you Thanks, quarter. to your next with for Thanks, your in Bye-bye. everybody, look questions

Operator

Thank This concludes call. for today's participating. conference you

Viad (VVI) 8 May 212021 Q1 Earnings call transcript