VVI - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Nate and I will be your conference operator today. At this time, I would like to welcome everyone to the Viad Corp First Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator may conference. you begin Long, your Carrie

Carrie Long

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

made website the available our GES; and statements along slides, from which CEO hear cause not Ingersoll, with filed factors closed and our at of call, Certain today, can differ our Officer. Ellen on call, viad.com. release during During and statements. We which found SEC. after statements Financial are the President forward-looking materially could market be historical quarterly, the issued Pursuit; Steve other forward-looking from and in presentation and press constitute Barry, are with David current Information that Moster, of the our annual, those some actual to Chief reports both facts, other our earnings President may results concerning President in business risk you'll the our

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

Steve Moster

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

presentation with website. and Carrie key customary full mentioned, together viad.com on press into a expectations the containing As the we our quarter year published insights release, first performance earnings

business presentation, I from performance. as our will discuss call, be and referencing the During the pages David, we Ellen, specific

clients are worked exciting who businesses, determination years past the two challenges and today. the it's to over extraordinary our to Before to and our thank we want the guests. results, that More discuss us anything, our place forward tirelessly resilience, their delivering than to has we facing creativity, team that external experiences overcome driven members, while our have I

As that of results business and years. the and the with more made we trends the quarter remainder of I'll year, strategic about review we'll past the very results page macro On our pleased drive the through financial cover quarter will I'm our points touch we first performance during throughout presentation, that three on decisions the call. key in the the detail two five our

First, our presentation. our feel the confident than full I will expectations, outlook, Ellen performance financial which was better in and raising year cover later our in

expected. we In third QX, basis. recovering improved trends the I think on shows Trade our results are quarter is it's important guidance. macro metric. positive our portfolio to the from same-show the influenced XX% scale support consecutive and pandemic of that of U.S. approximately the seen faster understand improvement This in our trade this we've shows in that a quarter was than pre-pandemic

clients large assets Additionally, budgets marketing lodging accelerate. we're corporate our in strong XX% leisure activity anticipate those experiential activity a ahead corporate geographies. hospitality is pacing experiential travel experiencing as size. largest At XXXX believe our our conversations Pursuit, we blue Through is for continues strong key among to approximately pre-pandemic Currently, and clients will of levels, bookings, accelerating. with chip we our their XXXX of be our among clients, XXXX for summer

strategy. Company our continues and businesses to drive strategy growth buy meet We're assets at buying Glacier new talk the assets, of Raft which opportunities business build, committed scale is Pursuit. a example call, that In criteria. April, refresh, we our existing to new acquired our Second, that strategic refreshing finding to fuel of the another will building early adding at the Pursuit, is Jasper, traction fuel by This great David opening Hotel Forest our great Later glacier in EBITDA high-margin about will Park collection. part growth Montana. to the existing in in our

In refresh, addition build, that With the liquidity continued Pursuit is to expect growth to strategy. new to our Pursuit's and accelerate launched intent solid this three XXXX buy EBITDA two these in to we contribute year. additional examples, experiences financial flexibility,

that GES the excited I'm identity, unique announce created quarter, business. we to Experiences for Spiro, Brand a in Third, our

more meet clients. to capture As We're performance I'd the spectrum us a Experiences the Ellen changing growing business marketing strong We and expand servicing to we're and to Ellen? brand the needs client reminder, investing to a with future our like and total experiential large a of to over leading exciting for and great the Spiro opportunity Brand to XXXX, share in position of in approximately $XXX industry. GES financial capabilities the our the million turn by for in to broad a brands experiential starting while strategic the around to GES marketers needs. current now, our serving across This And marketing in of is detail. as of needs accelerate call to accounted introduced world. our revenue today's growth partner their market an a rebranded more discuss roster

Ellen Ingersoll

Steve. Thanks

that did GES' our page The significantly due was primarily pre-pandemic cancellations, due the our outperformance came expected experienced was be summary expected quarter disruptions and both revenue out GES' our record XX% versus was I'd quarter point, line year-round and in first trajectory stronger above of our a we prior breakeven EBITDA see revenue, the stronger to quarter. finished for exceeded the XXXX into XXXX revenue to place show demand the as Pursuit performed quarter, we an a variant. at with million first revenue presentation, our point that GES' by to anticipated expectations expectation with quarter experiences. like by Heading seven slightly And although delivered first our expectations. $X.X new adjusted at GES of in loss. of the that and Looking positive GES. Omicron driven than quarter first also same-store our you'll approximately some which upward revenue took revenue events results, to continued had caused of XX% for

Our first to by EBITDA versus our loss and attributable net consolidated million the improved quarter. $XX both Viad adjusted about XXXX

the first with performance and of quarter our pleased industry. We continued our encouraged by are recovery

to As page first presentation, visitation at our from to quarter. in as efforts from quarter first XXXX million on million revenue restrictions, eight existing Canadian as This an primarily maximize our and XXXX pre-pandemic million far Pursuit. quarter, of surpassed the realized travel experiences Pursuit at to by shown from the represents revenue. $X.X the XXXX due same-store increased refresh also the lift and we stronger revenue well experiences first revenue our $XX generated quarter record $XX.X of increase first amount the of

benefit FlyOver negative increased to and million, opened we expected million a $X.X million collectively $X.X overall XXXX, to from Lagoon primarily slow government's an million by in and quarter first the program. seasonally the new Vegas the the compared Las prior EBITDA was contributed of as increased Our subsidy Canadian during that emergency experiences due Same-store XXXX adjusted for $XX.X loss year. Pursuit's EBITDA received Sky revenue adjusted quarter. during $X.X incremental wage

extraordinary experiences, meaningful our as net Golden a team ramp closed are levels seasonally Additionally, we to adjusted the they our continue deliver up. not during year. which to ensure optimal attraction Skybridge the EBITDA first from at are quarter The building guests up new that contribution was to we includes during staffing experiences also seasonally busier the to slow

peak positive our our international returns returns into high move we improve, as margin EBITDA margin and and increases season, will visitation summer Pursuit's to to attractions. EBITDA volume long-haul our As

first during to the total Now, the XXXX. of quarter half live that GES performance. moving event quarter, page return to which million large-scale first face-to-face compared due into GES' of first increased were realized I'll to $XXX.X activity revenue the review the nine, postponed of or million and $XXX.X first increased quarter events canceled XXXX

The two impacts the Omicron quarter by the COVID-XX months of first the of variant. challenged were

of of million However, the March amount March approximately reached GES EBITDA the activity million first in $XX.X accelerated improved in versus XX% generated of the XXXX. approximately quarter. $X.X by adjusted XXXX and month

quarter approximately years. the we improvement structure implemented reminder, the gain our EBITDA year-over-year launch in $X.X represents compared $X.X was to of XXXX GES a first XXXX the on the adjusting $XXX.X the quarter $XX.X remove million, an the of GES we When call, adjusted increase as first recognized that revenue Steve adjusted of with of we in as the first will first sale, at mentioned with discuss EBITDA reorganization revenue compared Exhibitions' of facility. which $XX.X reflects defined quarter. increased first GES' to strong As we've two Orlando cost flow-through two to we with XXXX, that support during increased in This in within GES; adjusted sold EBITDA the Spiro, segments which and later growth of year-over-year million and increase connection GES our the an the more Spiro's Exhibitions. to in during reportable revenue Spiro million million that $XX XX% In operations past million, increase. improvements and million, quarter. new detail quarter

million adjusted the $XX.X benefit as reflect Excluding reductions activity Exhibitions EBITDA improvements the resumption in the facility These of was the structure $X.X year-over-year implemented. we've in-person cost GES' gain just -- GES improvement I in the well primarily discussed, million. of as

XX, and revolving million capacity $XXX approximately on page comprised our total $XX Now cash equivalents million, of ended quarter turning and million we facility. $XX first of cash liquidity the to of in available with credit

which was quarter the from event better was to at our primarily prior an flow GES. million inflow due of activity cash than expected Our faster $XX during the approximately operations rebound of than guidance,

our and cash an possible job excellent team Our did closely wherever capital generation working maximize quarter. and our during the costs managing

$XX million Our for capital quarter. the about totaled expenditures

in during new to growth Forest in the for Hotel, investments quarter and CapEx June. at open Pursuit that our hotel expected Jasper late is the Park Our were mainly XX-room included

dividends [indiscernible] million preferred and cash paid approximately payments made $X million. our we convertible equity debt totaling quarter, the During of on

of million, in $XX to at financing debt B, term on page million including moving loan our XXst, and approximately approximately lease other million $XXX debt. $X obligations $XXX Now, XX, million, approximately totaled our March

As us $XXX we with undrawn additional at flexibility The credit announced was in the of amended the March, provide revolving covenants to financial XX, to our quarter revolver XXXX. applicable facility first XXXX. March through million we

And position with our we on We're borrowed April, Company early demand. flexibility, $XX that acquisition fund acquisition more excellent our $XX.X in of comment shortly. million. journey to Glacier total financial liquidity, Raft cash growth million industry will and David improving an help the a continue to strong price in purchase of However, for

build, at on Pursuit, Hotel build well platform. exciting Company Park Raft are as our to high strategy in We build, new Forest the and expand growth longer-term Glacier focused acquisition the projects return our investing the refresh, including buy FlyOver attraction as

capacity As grow. our will to we invest to and more performance recover, continues have financial

profitability prioritize of XX our are will immediately that months' and accretive investments We or to are offer counter-seasonal EBITDA.

in experiences And iconic opportunities evaluating turn around growth are like We strong the over happening across I'd pipeline to and of world. locations inspiring call David? to the what's high the to actively a margin David have discuss unforgettable Pursuit. now,

David Barry

you all for Thanks Ellen. us. Thank joining

in remarks, first mentioned XXXX Ellen to revenue report record of we're very pleased As Pursuit. her quarter

Before our who contributed to world, getting Pursuit me our let first into on quarter first performance, quarterly colleagues thank take our a the moment around details to strong results.

are on of through guests very staff mission places teams our unforgettable executing inspiring iconic connecting focused Our to experiences. on and

major to coming pacing addition member of margin on in post-pandemic, retention, new our and four engagement and season, In cover coming for attractions team of specific are our online, to which counter-seasonal key success. focus a call economic our to going today's the all with our the results, benefit I'm our recovery themes

million, Pursuit quarter, or $XX.X first pre-pandemic $XX.X XXX%. $XX revenue increased which XXXX, For delivered million year-over-year. record to XXX% increased revenue of Relative or the million

areas well-positioned This strong Excluding four XXXX, pent-up growth late first some to increased in peak And presentation. is confirms revenue XXXX June us. an strong about opened indicator page in XX% XX. me can referenced these record XX revenue we results, strength, figures of of moment, we attractions of first operating Pursuit's about and on I'll the a the be the view revenue experiences that real quarter summarized on page our for key are details and year three we're noted as talk that from share Jasper hotels more our into which a XXXX. seven acquired season. It demand our ahead is for from let important but XXXX for

Canada exceptional and it helped report impact Banff new to experience strong the Banff shared is two you the that quarter. at with We're Pursuit's about the the Last Nightrise our our FlyOver success fourth results. some marquee at Gondola I B.C. details first attractions Vancouver, in exciting positive America, of and The performance Gondola quarter, had to into North continued drive this in year-round QX pleased in and

on Gondola XXXX. X%, our and properties Park, XXX% XX% increased room XX%, Relative revenue price retail XX% National We and attraction Whitefish, Banff revenue in rebound Jasper example increased and strong expectations. respectively. in at Nightrise beverage experience lodging had lag and effective quarter, and rooms, The a within a first food XX% XXXX and yields half Montana. guests XX,XXX driver guest rebounded welcomed welcomed FlyOver over continued XXXX, our of Banff, of superb while from very over daily pre-pandemic the occupied spend. into XX,XXX programming room For a In XX% the visitation in year-round and this increased up nights guest ticket strongly XXXX visits, and strong QX first experience XX%, year-over-year to increase in an Canada how XXXX. performance next of rate. XXXX, closed per Banff, average is our quarterly being and was quarter and after surpassed an demand creating of for cap growth in in can drive this the a increase increased

Mountain seven pre-pandemic report a was in Lodge, And that X% Our increase -- we strong that food lodging revenue a X% quarter, a year, In in recall performance up the year-round continues and a our XX% a rooms year, XXXX this strong average versus Jasper, which results last by to Grouse very hotel revenue our in and first XX% beverage occupied year-over-year average continues collection Jasper reported and daily XX% grow increase occupied by to saw as Montana, pleased property, XXXX increase only room in XX% of dividends occupied increase increased QX room you'll and F&B is per we increase rate. in room in to year-over-year. investment daily in we're with from rate. revenue, pay the had through as that driven experience rooms driven XX% hotels.

Google located Las are builds, these Vegas awareness how remain most The two Las season the from notable and feedback We're visitation performing, TripAdvisor Las benefit probably high So, and pleased as and driver Boulevard. guest on important economic Sky Vegas investments recovers guest in early Iceland of our in attractions. with very on FlyOver the high, Lagoon Vegas Reykjavik in investment experience guest continued both third and year-round success is our most scores Iceland. and and margin being

FlyOver XX% over of the During first XXX,XXX guest visits attraction the total Las contributed quarter, representing and Sky Vegas Pursuit's for visits, Lagoon quarter.

let prepared an will demand have to be indicators year. with for page we the of share us you'll for and properties In continues Pursuit of so exceed no Rockies. expect have from advanced daily to on to welcome that saw our the to rent this season and pacing the now open, the On rooms see Starting ramp are that market, positive. of year typically, and rates occupancy this open, reservations Jasper, average as ADR this regional guests and compression in now borders up expectations. the we we border reopened. during year allows one wonders in Banff, Canadian strong up view same XXX% was and are pacing fiscal We the that which leading up daily and Also, in prior exception. of of So, to in strong peak is the wide great Pursuit local are exceptional Hotel. up exciting construction year Jasper, the are very speed at rates Rooms of a the pacing of quarters our new continues continues Canada's Park XX%. presentation, see our room XX% the average of property parks. and national lot All and borders on year-over-year. balance so XXXX of report another iconic time I'm year XX lodging guests are XX-room progress me at from Canada's -- Forest XX% in revenue anticipating ahead, from most well, We're pacing pleased XXXX revenue our up the view for demand in time international

we're pacing of Rooms of will X% open and Park in collection. we XXXX, record the to In June strong we've through track on in summer the that year a ahead peak are expect the experienced XXXX. We season. continue start is Montana, confident Glacier revenue

of Alaska, the for Denali Denali Backcountry is which repairs see Backcountry in year-over-year the Finally, term Park setting. very the on the XXXX, road wildlife National prior. by this on fly-in in Denali Denali Park, iconic pacing inside heels rent situation for to Denali is XXXX this we've Road strong the as year. Road visitors opportunity which the we to season summer. short deep continue X% this impacted intimate close magical Park the a experience. creates Lodge, The overall successful exclude will ahead end see to XXXX near a These summer to traveling be in of on revenue converted results Park from was Services fewer program the decision strong With and a opened closure, Park Lodge, Denali Room the unique growth despite the located Road

So, Alaska gears All the to come anticipate business. the iconic West been at Montana. let's We including Company trip, our off this Glacier Raft our approximately and visitors X.X if to visit. our putting latest in you've additions million locations switch is Glacier attractions attractions, right, that year

consistently we will April anticipate Glacier Lagoon XX% and results given represent share is guest its Sky to thrilled a XXXX visitation Glacier, full things operation, Sky finally, million Montana. Lagoon, significant from we're Iceland the attraction, across attraction guest first and And to in Raft exceptional have attraction which of the West roughly a iconic this Pursuit, XXXX. to to than Excluding Company welcome that the year. satisfaction when Glacier strong anticipated poised premier more level visiting has this capture Raft healthy Lagoon the one international Sky to our ratings we the location acquired, which attractions newest Company, in firmly year of very and established anticipated opened of deliver Guests in as recently of arrivals X.X Iceland. the increase year-over-year do our

right, FlyOver Las We for Vegas, base flying the anticipate our that Vancouver, to to incremental Glacier platform. founded a of Montana's of let's families and million approximately of already add $XX Reykjavik are attractions revenue and acquisition completed are $X experiences near and located very the about our alike and Rating and premier through Park guided expect welcome We in is for attraction Flathead the million Pursuit and ideally to is Company XXXX. anticipate in West and The and acquisition. summer visits was to acquisition All busy lodging they're lodging, that our to between Raft business, than River. properties total We will XX,XXX The in contribute experiences will and rafting We and and destinations the Company April and season. our XXXX. purchase National in food lodging included minute guests so early one X.X million Glacier weddings Glacial a spend experiences guests this complementary welcoming in XXXX XX existing talking of West company's flyfishing cabins consisting beverage ride Glacier. of on around, in retail entrance visitation more ideal the also annual

in by and anticipated Vegas lineup September expected peak the TripAdvisor Chicago. plans opened track on the planning the FlyOver flyover near Canada, report the I'm of our efforts on visitation in and to is XXXX visitation as stars momentum and enter CN content, and in announced we in entrance Iceland. at heart with the five opening. FlyOver long-haul return the compelling which Las of that progressing Center. encouraged by season to base out Canadian XXXX, for Toronto, and permitting to Chicago a Toronto pleased to on accelerating Planning visitation, the And Excluding located driven new XXX% Xth underway reopening FlyOver iconic we of year-over-year, border, of and the downtown Pier year, we're Navy trends increase the design location, spring of Las X.X located this Earlier gained opening, ratings and recent has of Vegas. for in the of we're the heart is remain tourism guest downtown Tower Rogers Google FlyOver FlyOver a Las steadily since of Vegas, -- for

on remain to before it the to with we we're share actively areas So, important working the turning about some the and that year Steve, in touch you all in back mitigate a how focused you're to I'd like news. for risks very which ahead of few hearing

earlier at hiring year can and staffing single our level, a important where began multitude the this anticipated sit confidence both and retention, mean this of cycle. operating review weekly to in optimistic leveraging been have not retention. I as most you're factor in adequately as pools successful a metrics senior at for efforts and platforms success equally results. and hiring we obviously, in First, I'm team XXXX innovative the stage review say And in new staff if much in and doesn't that We order the We daily with successful with recruiting talent to much demand. guest

team focused on survey results. good in evidenced engagement as and place, a company-wide heavily So, our we're member recent by

inclusion, career. and members employer annual the team This both is to report wage year-round members, about times based order to Promise are company what taken of increases, One member sustainability, importance to release member from Earth in several We engagement diversity, benefits adjustments implementation survey XXXX can report industry-leading at Place of to critical We've these areas on work an results. around believe we actions very particular to key who or best work also pursuitcollection.com. will for be item and we're our essential pleased four our choice focus team for. our work year, saying what to It's do as to and needs our drive we their colleagues and team guests seasonal experience our on summarizes listen Pursuit and team and members to Day. throughout they that to focus outstanding and It's teams wage a on other priority and eye feedback And rates, world. to operating us, choose also a on margin. non-compensation-related keeping and season senior we an starting the the a summer acute in as other navigate with to an for initiatives ahead, experience whether we're provide for leaders team viewed of for our that's our ranging keen be a

of just might the We international that EBITDA our most pressures which shareholders that exceed on wage with the EBITDA forward happen. our Exceeding total some call or from of basis margin probable, to in to to margin our indicated in be year very We're for margin. fuel fact, that we with XXXX XXXX inflationary looks goods, anticipate Given adjusted EBITDA rate we'll expansion our that patterns result, of of from I our future. XXXX Pursuit combined expansion points XXXX. bodes the momentum, of And well and earnings successful focus visitation today would February north in everything return mentioned, strong we'll backwards This year-over-year going result. pressures not meet on make coupled XXX history. we going to cost let in assume terms you profit be

local Pursuit Europe mix is demand North were to was XXXX, our closures business to with segments, margins and particularly First, at and America, impacted attractions. and and direct guest largely year, in high-margin of much international as contribute and Certainly, guests. expansion our will prior guest and anticipate built tour guest recovery, year. from margin visitation return, scale from across reopen the the regional strong as global both the and that's meaningfully which travel with stronger border pandemic, U.K., markets consumer we the that volume, comprised and Western XXXX travel over This we margin anticipate both

margin the visitation this continued As of ahead we years anticipate somewhat demand in from also returns. in expect expansion markets particular, remain year, and guest that China, will these we Asia from muted

take that lever, on demand we and talent. and and inflationary guest data focus guest into second operating season. pacing strength feedback head guest our risk use staff priced appropriately, our way outlets be price, will we're but continued and In pressures. revenue hotel confident satisfaction, proposition we which are also excited that the throughout retain by select cost very to always the high, price on looking to results scores attractions but single we peak and and beverage intact, The as every engagement and not world. that in in inflationary sufficiently our strength and day, We confident of obviously is goes maximization to the mitigate that of are also encouraged the with member the rooms, areas, experiences, work quality and allow a guest is closing, with QX value the us anticipate to our of only food mitigating long we've taken This our we're to around retail ensure something dynamic appropriate is pricing and where actions sit in we're team we ensuring

team on strong engagement mitigate will and We pressures, as they inflationary member a come. we focus have

our look we I to grit, world. with back the ahead. a for hospitality experiences and with Steve, combined delivering the incredibly So, final to to inspiring I'll teams. operating finish point. they proud They authentic in and passion you. am and support forward And doing iconic, that services around delivering so have it's year unforgettable. have just of a determination, all

Steve Moster

David. Thanks

performance, talking presentation. spend GES' page to about the XX of quarter on some I'd first like Now, time starting

trade anticipated structure. our we to Since first communicating American XXXX, As Ellen had we've in key North mentioned results two previously cost shows, themes earlier, regarding lower you than to the GES due proven a quarter business. delivered much rebound expected than stronger GES' quicker coupled with been for

XX% into of business, segments, customer customers notably revenue our of corporate most business, GES Brand First marketer our our that for XXXX for organizer show the for business lines for GES specific customers XX% our on our which and transformation Exhibitions is of GES revenue. Experience accounted focus accounted XXXX of GES which

The in deeper in structure, I'll trends the On Exhibitions we benefited actions primarily is second on the the seeing costs within and the trade focus into GES our our have reduced call, to our business. is reduce segments actions each today's key cost to two U.S., show we're the of customer business and market. business which took theme key dive lines illustrate of largest how

start Europe. in spiking significant The uncertainty, of and were quarter with North me Exhibitions. line started Omicron business, our America Let largest as GES with cases

a scheduled As EBITDA, trade Despite activity in scale revenue the GES Exhibitions March. a significant the and million expected and of caused were quarter result, chain the by faster were to recovery in headwinds delivered that in supply quarter. Exhibitions with our and postponements certain size GES performed $X The well $XXX.X and of primary improved experienced cost challenges, occur and near-term million the performance first shows structure of in in in than drivers the cancellations cancellations during and our business. exhibition acceleration of trade a other shows

experienced city and approximately GES to XX%. last comparison quarters. a the same-show XX%. the XX to shows for trade past revenue the same prior QX, size same-show trade As again basis. shows QX, total represented each XXXX, increased during In events metric three and of the of size in XXXX, of pre-pandemic taking that XX% occurrence U.S. in were on exhibition In three in XX% presentation, And between occurrences of U.S. jumped This we QX, the page steady compares over same-show occurred growth of XXXX, have both their that it the of XX% shown quarters place. on

by notable largest as exceed are their Most pre-pandemic trend. and encouraged supply of shows was quarter some feet more the Center. seeing trade but see performance, exhibition the year's pleased shows experienced than show an on history faster in MODEX, This next-generation World overall than trade focused MODEX. the recover Atlanta's attendance was others, in We chain exhibitor particularly first size. participation strong across I several trade and we're Congress to industries square variability XXX,XXX occurrence and prior technology Georgia show equipment, in the in

Manufacturing will and together International takes not Show, IMTS, every pandemic. occur of and Technology sold in manufacturing in drivers was our but in shows of XXXX, which XXXX to sellers, XXXX one In trade XX% XXXX third the place builders, or addition, the technology did already IMTS due bring and the of to approximately inspired. occur This largest other year's footage year, square the is show history. in connect quarter of which the be has IMTS creators, trade largest

model. our to revenue high to Exhibitions one-time in turning approximately XXXX. report Now, first XX of than pandemic. services certain revenue, our GES EBITDA incremental to our for a work of took higher This actions revenue XXXX, I that flow-through cost presentation, we hard on outsourcing create incremental to page cost all will fixed to that I'm lower the see lowering addition Exhibitions and expected gains from on teams XX% the you variabalizing QX, quarter two GES the over transformative of the costs. years flow-through in happy had the want QX, excluding during the to of the XXXX is result thank labor benefited past to our from

finished. not is however, work, Our

concessions where equipment, creative increases environment, or for the teams for a our to portion we To-date, to the profitability. as is form simplify higher We drive well to and solutions to important found find will costs. work reduce opportunities price of supply greater labor continue headwinds specialty financial transportation structure availability have costs. as have chain of as to of see in business possible, higher particularly need transportation our services in to current our minimize costs, increased negotiated offset other the continue the cost This our and challenges

forward to to cancellations without additional at due is external confident schedule returning Exhibitions, that normal show factors. trade GES Looking I'm

North addition, remainder we're the on American of shows, optimistic that seeing same-show based trade recovery in revenue In trend in the are trajectory continue will the we XXXX.

me gears in let more detail. switch discuss and Experiences Brand Now,

we to Over marketing Experiences evolving positioned brand the past corporate needs. Brand on of portion exclusively GES year, and focus their marketers

Stelmach, Jeff marketing to lead mentioned an builder I hired As agency calls, past experienced Brand Experiences. on we

with We Spiro quarter, built Experiences a brand marketers a market to experiential Experiences natural large unique of marketing and of brand of for order leading across evolution capabilities. the by created spectrum serving partnerships introduced first the growth around needs a client broad we've the the industry our changing the the is our Spiro strong business. in fragmented identity, During Brand through our Brand business. in today's to we Spiro, the accelerate brands world

approximately and ours began physical, connections their new marketing In build long In creativity live XX great revenue. team and total of with and brand, to building XX% making Spiro our in as equipment, trade our roster. program team. their to previously arena Spiro work has flawless from works customers Brand the And Experiences a we of in spectrum comparisons. managed John to exceptional was his out of the Spiro's John Deere communities The client strong leverage shown Jeff known North presentation, addition focus Spring Deere of we capabilities XXXX, Training features competition Training GES of capabilities already dealers of new benefits channels. entire the created channels. on clients a experiential and important digital, Spiro of shows of page example a quarter. their have execution work event at Spiro history as the hybrid having and five new dealers already by marketing is and and unique culture scale significant adding six companies. eight top XX companies, top the top the industrial companies, machinery of of companies, nine of the XX aerospace market, and XX to all their with the top technology XX corporate and launch brand a defense audience of and pharmaceutical in their brands In must the reach perfect how engage The with caused This marketers pandemic was time brand. audiences. the today's Spiro the shift client for on the to provide our to some for the corporate to America. Deere the virtual, Spring seamless and the Spiro's exhibit and executed connect in-person authorized during information was A event is largest years, been help that past across our of John expand across

world. of Omicron X,XXX challenge. to Spiro writing, the script the finish, Spiro had event. event and Training, Spring design, creative an authorized the place, platform for from virtual development, the event online was our capability During With to and virtual production and John developed The our cases capabilities opportunity including ready development, dealers for Spiro's spiked, Viad. team crowd services to pivot from drew marketing growth new in Deere technical around planning content experiential start represent new of over management. an exciting a

$XX existing BXB XX, XXXX in valued page clients corporate marketing across will capabilities events, experiential our on new Deere addressable winning live Spiro's John new by events market and and at was for shown of enable base sponsorship. consumer the growth horizontally billion event As and across consumer These like selling services clients.

quarter won many Baird Spiro an B, Associates, example, in new and business As Cloud [indiscernible] the & new JPMorgan, with clients. other

spending are large the budgets Spiro experiential Exhibitions quarter, approximately of approximately Like of and revenue recover. budget. marketer benefited delivered customers clients Through corporate continued XXXX with the GES compared XX% marketing corporate we $XX.X the XXXX During from as pre-pandemic on to $XXX,XXX budgets, business, in million marketing Spiro conversations our spend planning their regarding recovery EBITDA our of to spending that believe levels. the

excited growth quarter GES' as lifted restrictions budgets. concerns closing, pleased by trends also for ease I'm corporate efforts budgets the GES pandemic and about and activity needs, thank in I'd in GES to and in the and to for the meeting to corporate exhibition growth expansion with now, Ellen? escalating our outlook are attendance continued entire increase, I'd the In at margin to performance in like for experience continue corporate behalf top financial travel again, our Exhibitions. discuss turn their line of the more policy marketing and event I'm to over marketing while We as in exhibitions core future encouraged potential very recovers, team ramps detail. Spiro tremendous across extraordinary the geographies. also first the as expect we're Spiro on seeing business delivering to activity up, our Ellen call like clients. And once

Ellen Ingersoll

I'm are on to first Based our raising Steve. positive our trends say Thanks performance expectations. than we our quarter and stronger seeing that year full are the pleased expected business, we across

in that of the strong our by business activity event event very acceleration the season year. encouraged bookings Pursuit's activity industries summer. this point that trend optimistic will bookings the and GES' a and are balance to continue the peak in-person of indicate to improve continue will We into event

or of and to We $XX the million the that addition approximately EBITDA be growth second million approximately XXXX and quarter continued relative driven the As pre-pandemic XXXX shown full new year believe levels, by above for adjusted to million. experiences. on page XX, to we EBITDA expect be for Pursuit's million Pursuit's $XX same-store XXXX $XX $XX at to will be to

will acquired summer and in will Our benefit from additions of new this opening that the and the a operations season peak of attractions full we this recently three season. Hotel Forest opened XXXX ahead Company Park have of we year, the Glacier Raft also the of

travel Pursuit our fully post help drive domestic and to for above revenue once long-haul will volumes recovery will experiences which leisure through leisure will XXXX. will Our in increased attractions. full our relative travel not expectation return U.S. more same-store that continued in but strength is It our on significant, that high-margin XXXX, see levels pre-pandemic assumes again outlook same-store that Canadian experiences our

strong in EBITDA attractions international travel recovers. Pursuit's long-haul We remain lower margin levels the high-margin flow expect at pre-pandemic XXXX improved until international than and significantly fully our Long-haul through volumes. visitors visitation drive with will leisure helped

we levels travel return international of As XX%. once more of will normal Pursuit's north margin reaches visitation, expect again

increases, efforts to drive that impact David levels. revenue Pursuit our all being immune are rate As while across rate mentioned also while felt the other we expect and companies, is that offset high our earlier, maintaining to satisfaction pressures to management through not certainly guest wage inflationary

GES Now, on turning to XX. page

and $XX EBITDA to for the full year quarter $XX to $X million million. approximately the approximately million second XXXX adjusted expect be be We for million $XX to to

guided is first of for previously expected than full for and year year, the on range current above and introducing for significantly have balance better based stronger of We expectations quarter the a GES performance our events breakeven full comfortable breakeven. this we feel than year EBITDA GES from that

in-person is that pre-pandemic events environment assuming major dynamic revenue remain experiential operating for will levels. be the clients budgets pre-pandemic balance resuming we of year. to schedules of than cautious levels. Exhibitions contracted range remain success roster well-positioned clients. corporate the for bit a of our and are and of navigate. normal event Live will continue a that Our or given GES same-show that marketing full better year for cadence the generally strong their believe Spiro XX% assumptions approximately backlog at looks expanded with solid We We're an of XX% underpinning the

and to business sizes GES, cost to we've their margin return expansion, with in show corporate expect expect that more realize continues marketing structure We to increase, place continue at and our breakeven lowered for point policies. variable companies pre-pandemic travel to And budgets revenue new, recover. to as as

the was We inflow expect $XX revenue range somewhere in free SG&A quarter future business approximately on million. This including the revolver. funded activity drawing I our in for of during $XX.X million, will Company CapEx XXXX new by outflow million range partially expenditures expect capital and cash Forest we growth. and acquired increased Raft the increase Park support second million cash an We $XX Glacier to for currently growth of to the million build a million, of $XX gradually and to as operating assumes mentioned the $XX earlier, of Hotel which $XX

million, $XX Hotel For to and Park the growth primarily million capital expenditures CapEx FlyOver the full $XX year, including we for Forest Chicago. Pursuit expect and of at approximately

to help our GES manage growth to at will recovery we the a and with our EBITDA continued recovery shareholder return to XXXX. experiences, combined leisure industries in our be capital of business and travel strategy, maximize XXXX and stewards refresh, for our continue to travel surpass will strong well-positioned cash have Pursuit's slower buy back offset pre-pandemic new made high The build, demand growth us we through pent-up by trajectory. With propel our investments flows We carefully our value. are Pursuit consolidated in

from material assumes factors. to other future changes outlook adverse or Our no the events, geopolitical macro financial environment COVID,

operate continue to some company very the remarks. provided. vary our in focused that, as to turn recover dynamic our a pent-up demand continue XXXX the for We performance remain to from Steve evident is for positioning that we concluding industry, guidance could with It's businesses the and I'll And on and back our growth, significantly great call there over in for beyond. success and environment,

Steve Moster

Ellen. Thanks

is from the a Pursuit sides our of that by of company pent-up the in encouraged profitable position and transformed reemerge for demand with both the on industries strength at world-class GES. we've to progress pandemic well-positioned new business, Our more experiences balance a and of quarter and experiences event returns we as the at in the the this strong optimistic We at activity live GES, about on recovery for our extraordinary made to leisure travel Pursuit our head create and shareholders. into remain year. strategy I'm focused

and the will we significantly proven as well Pursuit, buy continue drive scale to through build, business space. refresh, growth For take this in opportunities of strategy, our disruption as advantage economic and

cost and and on made strong flexible more flow generating improve For the higher services. clients we've progress margin more to will our profile focus and through build margin GES, to-date cash on the structure we resume

clear growth to enhance shareholder significantly returns. and have We path accelerate a

Our to is sustain the we liquidity in strong, continue and and position flexibility future. investing financial have the

leading strengthen market our travel to experiential plan experiential positions market businesses to on events. high-quality position. We leading in capitalize have We BXB leisure pandemic disruptions with and

has there that be investing and the open returns support possible strategy and future And I you to successful growth. that, bright make opportunities who continued all with I'm for thank for in our our for we'll excited to thank long-term for questions. dedicated growth tremendous the want about employees, pre-pandemic, to strong up hard-working proven call and of continue lies Our ahead driving company. are our to Viad. your shareholders this

Operator

Kartik first goes please your [Operator to Northcoast proceed. Mehta line Kartik, is with Research. question open, Instructions] Our

Kartik Mehta

you're It just if about could a you'll XXXX little you. year. it expecting strong, utilize think talk portion really reservations sounds capacity Maybe bit for you are of a where Thank you good Pursuit. for wondering you capacity, or really are sounds XXXX? what like on I'm like

Steve Moster

we and more our hospitality what to the expect of in we some is and for that jump let good mentioned, XXXX capacity the capacity in question thanks that. we And for attractions feel pacing seeing terms what really you he's for I'll assets. call David said of of about as during ahead Kartik. Yes, detail about in

David Barry

have Hi are ton sold we it's dates obviously, the within completely Kartik. compression. think certain that I a summer then already Yes, and a interesting, there's of from perspective lodging out

may expect big at have terms we peak XXXX. busy terms return be the Gondola, and much what get, see in instance, a this the obviously if throes levels expect XXXX So, how just you day, we're of we pandemic levels. and historical that I numbers lodging seeing of and the think busy over be to that we'll say, impact think but for things XXXX or Those will will in Banff X,XXX destinations a have in beds been historical in of X,XXX for we were summer. And how smaller through returning to demand of, a

Kartik Mehta

then about is typical you little -- And where where there a international about considering a talked early and how a Or is? bit have international increase demand do for international good year, you And potential a you in standpoint? capacity demand wondering of book? when I'm do that kind of a from are travelers idea to

Steve Moster

you really have to where. instance, who's from for a good coming now, right view Well,

freely. And borders so within Canadian North open. very wide are traveling Europe America, is obviously, everyone Western and

now travel of that and American to we've folks strong. year. very expect down. of international lot China right obviously a So, between moving one are locked that India destinations good view and say, of we don't the a is perception are from that world a got North China visitation definitely, good this think But little a bit -- being the comfortably. in example more quite There are countries we countries certain

we And to and both so return coming Iceland international steady to America, visits for in seeing back we're then levels. peak North a what their expect

Kartik Mehta

for the Okay. other I gave on just which know, guidance, just maybe cash the If you if start. is good obviously, free you gave that are XXXX, free factors I for cash could in to a And so just different ask wanted any year. last just know, I year? EBITDA for one are really question. flow flow CapEx, there expectations

Ellen Ingersoll

then and the the minus mean payments the EBITDA expense and debt on interest guidance operating corporate. companies for I No,

give But So, give flow take. it's approximates EBITDA or cash operating CapEx, just our our the perspective, you're to minus corporate. a right,

Kartik Mehta

Okay, perfect. Thank appreciate you so much. I it.

Steve Moster

Thanks Kartik.

Operator

Thank B. next Maher to Riley goes is please line Kartik. [Operator ahead. Bryan Securities. question go Instructions] you, with Bryan, your Our open,

Bryan Maher

team slide slide But balance that the get good we all Q when do into statement. before statement in We did questions, the so see that ask will the sheet cash and available, thank to balance extra -- but I deck, sheet that have much And and abbreviated flow I wait to helpful, on you cash that? my that's deck, you for for balance for super be sheet that information. a is full afternoon. Thank want and flow --

Ellen Ingersoll

filing yes, or tomorrow but be shortly. either we'll Q so Monday, And the

Bryan Maher

want the to get and on great. Vegas of don't for an are for ramping? specific, Okay, maybe us you can know growth quickly Super but I Pursuit the any give too and then color trajectory attractions can of helpful. reasons, us newer And how the Sky probably visitation FlyOver. pricing Las some those competitive you you idea of like Lagoon give

Steve Moster

Sure. from Sky a comments him into in bit We the little I'll give seen what a talked for David's let he's visitation it we've Las in but about Vegas. the both more first insight seeing the pacing and quarter, Lagoon FlyOver around

David Barry

Yes.

will going the Las competitive celebrated very ratings continue Lagoon first strong. then obviously, Sky a be and demand are of and in It attractions. Bryan, first lot expect just of a significant FlyOver to Skybridge's Golden momentum. first new the obviously, peak we I'll quarter a through but period, a we standpoint, terms from that anniversary I bit gaining very full be and Vegas it see up the for ramp into strong a season its that's to There's little of careful catch So, demand how year. operation. expect And had summer

to looking what encouraged forward year. we're rest by of So, the and the we're seeing

Bryan Maher

then And ahead. -- Okay. go

Steve Moster

visitors step continue If of as or is quarter just to the packs and new out in other it's have made is, good and the activity, a kind the continued focus I think to add during this a we up up, I can ramp of that two point one year-round significant important portion attractions they direction. thing on to

Bryan Maher

going opening. statement is think the then both are to associated of FlyOver XXXX FlyOver the are couple that I capital of Chicago And that next costs What kind going a of hit with over flow those? how and kind be Toronto, those cash to the years? the And

Ellen Ingersoll

you'll haven't each we that we're of CapEx level So, development years, be and over Pursuit's years of that it CapEx, next the that given the the see guidance spending development of hits. but plan will within that on couple

years. of couple next the over So,

Bryan Maher

then, -- about go ahead. a And -- bit Okay. need you to little

Ellen Ingersoll

Sorry, $XX Bryan, was a about in just to give costs. perspective, Vegas million development

Bryan Maher

Okay.

And pretty Toronto that a to but so be big think for reasonable that be Chicago I inflation. -- was project. you Would adjust might expensive, a and I guess mean less then it little to have

to $XX million So, maybe million you're $XX again? in that range

Ellen Ingersoll

give not specific We'd that. on rather guidance

Bryan Maher

your talked or call Okay. a How goal I and on to if slow it slide want what know ability a then current inflationary little Understood. environment don't it, a have does down impacting XX, your get And bit call and you inflation there? cost want -- you of to numbers XX% kind the I to about much EBITDA margin. you a

Steve Moster

of things. Well, there's a couple

powerful, So, price. it one, et lever pretty lever is cetera. cetera, we sold, obviously I about worry it what of cost costs, that and impacts that But think inflation, from et a is rising impacted, goods -- obviously, when has have you fuel,

adjustments. periods, able then in is So, price a time you're the price we're to the value of spend further. energy peak of very, we around and impact so lot when dynamically that And that they're to obviously, guest with understanding the relationship. reminder, good price and guests very we majority moving long And we high, as we're inflationary price offset a price satisfaction as are receiving able feel and move also as value,

might two in inflation. particular of big degree, we drive that of of to a attraction of think difficult think then amount standpoint, the one visits, say, be greatest amount a I how margin staffed from certain day. pick so number and things visits margin a obviously, X,XXX a So, And that's of visitation is manage there's driver a a the for

attraction our and pure As visits as a visitation because of quite that significantly, great profit. visitation those the markets remain the staffing level to that improves, basically threshold but guest return and is number costs over grow basically experience provide numbers we're incremental at

They They regional had local two to less. Bryan, spend spend distances. visitors. our visitation everything drivers further their and margin, of is and So, shorter particular destination, to spend want and visitors afield, time so they And of we XXXX, higher. one a remember then XXXX and international travel in less return, of from experience primarily mix tend want level whereas They everything. guests. visitors do is to as They

are And confident we're the two margin about future, and into big return strong to those that. as so performance drivers, we

Bryan Maher

relates on probably functions? GES see international that into And as you an the segues may Are conflict what well you have thought seeing in second in impacting it basis, my Thanks. next might the Eastern thought quarter, you question. to you Europe seen or

Steve Moster

perfect Again, or is in our our the mean, U.K. No, based not of operations. either significant obviously, seeing from but really the that a in the either or it's business question, it's thing really we're in EMEA UAE and invasion, a impact happening really Yes, is with -- I we're North Bryan. EMEA good the in most we it America not so the not see invasion. impacting a that's

Bryan Maher

Pursuit into be if XQ? for up kind XQ ramping it course, up? any loaded, pretty staffing, how kind of costs Okay. Or likely of all early showing the heading And of in of On much up staffing season, March me. peak is back-end last just into much might

Steve Moster

really good a that's Yes, question.

and when need levels And so one, of we have worried imagine about we and we supplies, expenses. is things. costs year. move certain two and we higher that supply So, would make coming did enough some for had chain, One to -- you're what would anticipated you're securing of sure variable we the

and followed of want and large careful with other to say, pretty our to to they've of some staffing going other we things, that don't those other of in guy. attention on be staffing for season levels. organized of struggles ski were good you that have The students in is, their And some winter. pretty peak industries seeing the we be companies of had the take getting that had We're terms focused

onboarded seasonal sure the hard deliver view how to got have look be. ready busy and and of XXXX, on year, And it's We've we board. as we're really the going So, be and to summer we've We were flat-footed. to to a be a staff up. would so a staff comparisons, going and bit and effort secure taken that This earlier, good amount this It's XXXX worked busy, that. tap when lot we're didn't a trained lot right so of that year, to caught that's year. need going to and folks energy in ready make to the in be to have in of be to had show guests what impact. volumes it's last little place and lot of We've remember, when we've really to unsure our you a at year-over-year still want pandemic we an certainly workforce working steps those them on

Bryan Maher

Great. very Thank you much.

Steve Moster

Bryan. Thanks

Operator

no are turn to over this you. I There call back at the Moster, Bryan. questions you, Steve time. further Thank

Steve Moster

much. next everybody to our All the you Thanks attending end quarter. again look call. at We of for the forward right. Thanks talking to so

Operator

That concludes call. today's conference

lines. You your may now disconnect

Viad (VVI) 9 May 222022 Q1 Earnings call transcript