Earnings call transcript Q3 2022

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Operator

Good afternoon. My name is Austin and I will be your conference operator today. At this time, I would like to welcome everyone to the Viad Corp.

Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Thank you. now presentation. may you Long, begin your Carrie

Carrie Long

along Good Viad’s call. XXXX thank available you on market We are at presentation, us for for joining closed, after third today our our press afternoon our both earnings earnings which and issued release with viad.com. quarter website earnings conference

we be performance and business referencing the We our pages will presentation during discuss from specific the call as outlook.

non-GAAP contain measures out that we’ll our press important I disclosures during want presentation regarding to adjusted to point referring also including EBITDA. that release be earnings call, and the

Moster, During GES; President the call Chief you’ll hear Ingersoll, Ellen CEO from financial of Steve President our and our Officer. and and

Pursuit’s As following medical who David leave Barry, these successful out we this typically procedure. surgical on announced a month, President calls earlier joins is currently

actual over Before which the during Steve, materially reports filed found forward-looking statements. business turning statements SEC. cause to Information Quarterly facts, constitute current in I call, other certain that could be that remind may and call concerning to results our other can the everyone made those are factors differ in with historical forward statements not to want risk and Annual, looking the from the

Steve. I’ll that, over turn with it And to

Steve Moster

are and which I’d reflected you start dedication in world the afternoon results our us. team around efforts, the joining the like the To Good thank for call, members thank continued quarter. third to for and for their

to that presentation, earnings call. want we’ll this our touch during the three upon of X I Page on expand highlights on Starting about quarter

And to Exhibitions’ accelerated Pursuit our prior our our capabilities well businesses consolidated tripled to and of results line Spiro’s and First, in net cost with scale XXXX actions Viad attributable performed third strengthen as nearly significantly ahead GES both income growth. year-over-year quarter transformed structure, our the quarter. were guidance, in

attraction And GES from solid visitors full drive saw Second Pursuit same-store continued Pursuit as growth quarter international recovery but a during strengthened strong not of experiences and growth another execution. record third, quarter we The delivered new restrictions of leisure our travel diminished. strong to revenue. team delivered the and COVID with

We trade show client cost and XXXX of drove our continued levels we improved spending. to towards a XXXX as corporate versus structure. profitability a improved recovery see of result healthy revenue And

And turn call discuss our quarter to now, Ellen more over I’d performance like detail. to the in to third financial Ellen?

Ellen Ingersoll

Steve. Thanks,

$XX.X attributable driven As shown the at million of Pursuit surpassed of third growth quarter consolidated achieved XX% third revenue XX% we This growth XX% Viad income at up X, consolidated million level is year-over-year, delivered during in on $XX.X of by Page and XXXX. million quarter. $XX.X year-over-year to $XX or $XXX And $XXX.X XXXX the from XX% million Net GES. million quarter. the our in the we increased up was adjusted and EBITDA or million third

guidance $XX.X range, of million, and adjusted the range GES the guidance to and prior year-over-year certain external prior activity million visitation due execution our to end high event was million and primarily see million, year-over-year $XX.X of Pursuit adjusted was $XX.X as continued of near of hampered EBITDA GES team. EBITDA to low that $XX.X live factors our near of increased strengthening properties. the increased by great end we

town in September attractions nearby power lost Jasper-based drop the Our hotels a saw temporary damaged lines power. and off and fire after a

and draw both Skybridge supply help would mountain opening the that attraction. Park we We our new also visitation to experienced delay a Hotel of coaster chain Forest our challenges that increased Golden anticipated

on performance year-over-year Turning Page to X. Pursuit’s

our Forest XXXX, acquired Golden Las Glacier includes and Vegas, during million was XXXX which reduced existing $XXX.X properties million. Canadian of FlyOver largely A remaining opened strike the revenue Park refresh growth that of $XX.X quarter as The experiences grew that we of COVID to $XX.X and Lagoon. that million came Raft efforts our new Skybridge and visitation restrictions million or revenue. well Hotel, experiences Third at $XX.X experiences our U.S. result from as stronger from Company, maximize Sky growth or the continued of

EBITDA is to up and This partially of million staffing new Pursuit’s offset $XX.X million for demand the year, support the growth, was prior due third adjusted the by revenue to overall levels quarter. compared consumer to our enhanced primarily $XX.X experiences. return

that third included XXXX EBITDA wage not benefit quarter Canadian adjusted subsidy this did Pursuit’s a million $X.X quarter. repeat Additionally,

quarter below more of on on due margin performance historical nearly he and strong primarily new delivered overall as shortly. that Pursuit to at of margins reviews an same-store levels Pursuit our the mix Steve revenue. pre-pandemic remain performance margin with XX% Pursuit’s adjusted experiences EBITDA for the both elaborate basis. will

from third results to revenue grew quarter GES delivered Page revenue million. $XXX.X $XX.X switching over million continued in grew a well of favorable the growth place during or on total that and rotation revenue activity strong improvement XX.X% reflects GES X. as large This GES’ third events Now non-annual XX% call, million. show $XX.X live Exhibitions or Spiro quarter. what we took event as

was GES’ non-annual for versus the $XX million recovery growth driven and revenue on $X Exhibitions. events net Spiro at impact positive by XXXX the third including was strong The million revenue Overall, remaining about approximately quarter of Spiro industry. and on primarily large $XX for million, Exhibitions GES

on consolidated $XX.X a million compared million, $XXX.X increase adjusted to XXXX, EBITDA million. GES’ of of improved As QX revenue $XX.X

plus, profitability year-over-year opening This $X.X on And of XX% we increase the are We adjusted about driving staffing remain we approximately of negative improved value. year structure through mentioned significant the our we to is activity had intentional track is below drove made a GES flow versus increased on our levels to million XXXX EBITDA indication third through his that cost Steve in adjustments similar a clear of in when is level quarter full remarks, our to a growth. on annual as the experiencing. revenue revenue. of target This as XX% have business support achieve of flow XX%

million call We ended and and quickly items our turning balance of I’ll the million cover available on the $XX credit to with $XX Steve. quarter third capacity million, $XXX approximately sheet liquidity Next, of some facility. in before total back cash flow revolving cash comprising

flow from quarter approximately cash operations an Our the was $XX inflow million. of during

totaled Our capital Chicago. the Forest CapEx for and Hotel, mountain were at growth $XX Skybridge million including the about coaster mainly Park for FlyOver, the quarter Pursuit expenditures Golden and at

to $XX September $XX approximately At Hotel our construction financing fund $XXX on obligations $XX totaled loan million debt million, approximately debt Park development of including and our XX, of B, million. $XXX million the loan million, Forest the of approximately term help a other

in our of found be appendix earnings can details Additional the presentation.

Pursuit provide highlights to for back some And business and now GES. I’ll turn to the call Steve

Steve Moster

in I’ll our round attraction, seasonal lodging quarterly strong Ellen. where record start Pursuit with and with revenue along and Thanks, metrics. performance year and healthy delivered improvements X,XXX team EBITDA visitation our quarterly members

to with the revenue $XX.X new XXXX growth. XX driving future. and our Buy revenue Page continue revenue Pursuit’s third Build, strong experiences Refresh, today, opened in strategy Pursuit during to delivered XXXX earnings new will experiences journey improved we expect presentation these million are illustrate the collectively of Many of we margin at quarter. our helps is XX or have our through meaningful they to in how commitment early From in that growth their drive still ongoing acquired growth

its from In even as continued in global we been recovery. continues pandemic we’ve were full full yet the revenue on XXXX, capitalizing leisure restrictions recovery strong and reduced not saw existing travel domestic year. of a headwinds growth to driving but across experiences face in U.S.-based travel XXXX, travel leisure multiyear of that essentially are successful prior our of Additionally, XXXX, part Canadian a to this recovery experiences on with our experiences strong Canada affecting we Pursuit

basis, revenue elevating guest wherever same-store grew a possible. Pursuit and maximizing quarter a versus revenue through by On XXXX focus relentless experience third on the X%

Pursuit long a upon seen As as on the focus haul attraction high and attractions revenue ticket would good ticket I’ll as attraction the at shortly, our has expand These room to lodging volumes other in but categories lag very revenue revenue high beverage. as like international visitors. margins, Through bring. growth, same-store the retail continues traditionally offer same-store margins grown persistent that some team food strong through not incremental have same-store overall recovery and revenue, from categories

On our see highlights Page during performance quarter. attractions the from XX, you’ll

ticket levels. million third or to XXXX On We about visitors we in that as a excluding in X.X and attractions and XXXX later, welcomed revenue attraction million XX% compared XXXX about basis, by by year-over-year, to compared attractions XXXX quarter nearly those XXXX. about same-store XX% XX% X.X in Third XX% quarter our XXXX. or below approximately increased acquired but XXX,XXX remain visitors opened as grew compared to

which of which Certain and above attractions saw were near Banff in attraction level in our travel Banff and remains Banff. our rated Gondola, and the itinerary including strong lake an inclusions, cruises XXXX, Jasper, consumer number one partner direct bookings or increased

two impacted by from prior have to Icefield, travel attractions most our the than at disruption long year. more haul visitors been pleased very international visitation, also saw to double We’re report Columbia the the some trade that of which

We expect to recovery continued in see XXXX. here

from third new very These welcomed approximately during we’ve visitors reviews. received acquired guest opened that strong quarter. momentum to or continue XXXX forward six The attractions attractions the XXX,XXX new gain and

grew solid the Vegas visitation and the increase channels I’m XX% awareness pleased quarter quarter, quarter. over networks. another FlyOver from second our second securing distribution report visitation third that attraction for important make FlyOver quarter Las XX% gains building Vegas Las following marketing We partnerships to continue with to at And of and the first

overall Our sequential Iceland. reached That guest guest the had for two from the our summer, year-over-year and Sky in well attractions of performance posted Iceland, capture into end combined Lagoon bodes growth very levels. strong both with Iceland, quarter strong continued and international visitations. By Lagoon and Sky solid the rate FlyOver FlyOver in of XXXX country the visitation

The with revenue Golden third of quarter year operation XX% solid in results delivered year-over-year. its increasing Skybridge second

we to the forward we’ve addition construction on With amazing from As growth drive XXXX been attraction. Ellen of having mountain that now Golden when the further Skybridge online season. complete, coaster mentioned, working to look a for this reopens an

which meaningful this new Pursuit. top touring guests finally, Company, revenue in year-over-year Glacier year, continued with EBITDA part third first visitors. open quarter in delivered our to Banff and stronger The earlier its attraction as Raft summer delight of And acquired we

momentum We’re experiences the added. encouraged by we’ve proud the seeing and of we’re

attractions. full for for on at and our world done remain quarter strategies fourth isn’t class our and work plans the the potential XXXX Our for realizing visitation focused

reference Now properties, we results let’s which of the earnings of our Page XX presentation. discuss on lodging

our average strong with revenue Glacier rates occupancy daily at In the Park focused on our experience Montana, elevating increased hospitality record teams and and property. XXXX. revenue each The Canadian higher was the as due our largely quarter growth largely compared to by Third properties. particularly at occupancy, stronger to compared XXXX was room to growth due to XX% grew at from XXXX room delivered very we guest year-over-year XX% as remain And properties. again ADR

was impressive Rooms revenue Hotel given which land the XXXX, Lodge closure was access that off to the to road from our Park is Alaska Backcountry especially higher also Denali of Road repairs. due for cut Denali than our

team pivoted with one the into Our the risked challenge scenic heart minute to remote the Wilderness. of a Backcountry transfer a kind a stay of Denali XX experience helicopter complete and launch

quickly lower, hard third worked still recovered revenue we as Jasper power was arrangements a and infrastructure, with travel partners. disrupted how to an our Banff on by XXXX. rooms area ground couldn’t to them traveling to teams redirect guests other The guests, and and Park National manage created the Jasper, our period which that the based plans. to increase properties team of although were able realize Chatham to occupancy operations in XX% challenges recommend over Jasper Thankfully, the properties the week be critical our In the two quarter wildfire, prompted prouder key make to to situation Jasper officials responded compared rebook damaged

in hotel With our we’re pacing Jasper now year round finish properties Banff strong. lodging closed operations. in Montana our strong seasonal Fourth for operations and in and XXXX, for remain Alaska very quarter a our poised for

Our year fourth round into attractions heading momentum also positive the have quarter.

still continue engines offer does we This attraction million we economic XXXX, our will that year, full to above XXXX. visitors expect total very XXXX incremental the double visitors. strong not full put of these but reflect the to on potential during the nearly visitors X.X hosted For margins it attraction visitors

experiences. our of to see ending with at its bring places continue returns in exciting existing to recent Pursuit’s investments International the visitation and XXXX picture XXXX level. and assets on of combined We inspiring to and iconic and into beyond and of proud for maximization growth I’m peak and very travel experiences recovery staff our paints international the grateful I’m revenue day through upside unforgettable as future. continued an our their and every to teams during leaders pre-pandemic performance best guests acceleration connect the never season, who focus long haul

Now let performance. third quarter switch discuss GES’ gears me and

both GES line the quarter XXXX on Spiro shown quarter. very significantly year-over-year performed up Page and in and with As during XX, well Exhibitions the revenue third with

In of for $XX.X line also GES addition on top delivering delivering substantial million improvement to adjusted strong increase drove I’m EBITDA entire XXXX profitability such similar of revenue. with very team results, proud in to results. GES a an strong the compared

Page to to to quarter, which cost structure recover XXXX leading trade level on with for same-show XX, put our place I’d Like slightly Exhibition that basis, XXXX third and our revenue Europe revenue expectations. exhibitions second services business, On United from trade quarter XX% discuss GES like from as in XXXX North Emirates. and of XX% up was quarter, the continue was in First, shows the during of the our profitability. organizers shown in provides their and to line level its the Arab the in pandemic U.S. drove lower show a last increased America,

to the shows, clear. continue individual significant trade the trend speed across recovery the recovery variability but overall is We of see in

the consecutive compared marks million results quarter the improved growth in to revenue Exhibitions’ GES started same-show one year the EBITDA over the the fifth recovery prior illustrates $X and quarter since ago. increasing quarter of million business U.S. This third of $XXX.X profitability years. GES Exhibition in of in

similar quarter The $X.X third EBITDA XXXX EBITDA on the $X of third loss the to in higher significantly million revenue. of is of in quarter million compared

has improve in despite team third less to X.X% the was overall margin in with quarter, revenue. GES about X.X% revenue. XXXX the relative exhibition’s margins managed Through XXXX, During to EBITDA $XXX EBITDA XXXX million lower versus

Page XX%. Additionally, as to at strong to exhibition the year XXXX through continues to revenue XX, incremental date EBITDA on over shown flow be on

beyond. below individuals was quarter, hiring business count. focused business below head in quarter Over quarter our of talented XXXX the count, close SG&A end exhibition our the the past has rate selectively about our quarters, Exhibitions rebuild to and on is service significantly our remained SG&A level. run and GES two XX% shows the targeted our XXXX of to head third the trade and annualized third recruiting clients which level The At

limited Despite level, XXXX. availability the to the face specialized of business equipment in lower costs GES of headwinds continues Exhibition SG&A direct increased and

X% and quarter, During clients costs for by the increased saw equipment partially to to XXXX. costs our specialized efficiency. compared we X% third offset were These elevated increased labor direct to of approximately pricing and improved

Now agency, the I’d our Fortune marketing our attention record clients. to based of activate, turn Spiro, corporate like grow results as We in specializes serves experiences. agency experiential and Spiro which Connected for Europe. to new Spiro’s how across with evolve the quarter, Last delivery with has U.S. described experience called new relationship I and capabilities evolved our brands. of their XXXX JPMorgan Car our and experience the

great another to example want of share team. I Spiro Today our

dubbed on Festival out Future the Huntington in This create took to which advisory been place were what’s at traditional event, spaces During the with client sessions stages first used set Beach, conference, redefine for to networking entertainment. stands world’s of Proof. the our third night Spiro compelling worked combination that offer quarter, day circle musical the a speaker for were the transformed education, during to finance and acts Wealth into

and attendance the advisors, professionals of interest The a lot with over and Times. great in financial fintech investors Angeles Los by coverage event XXXX generated news

in quarter spending our results XX% quarter $X.X basis, in from Spiro’s second spend. revenue the their and level XXXX client to relative EBITDA clients same-client remain in the quarter, XXXX third was in delivered On million similar expectations. approximately the Spiro a to of During third is spending client This strong. quarter the in line of as million with and $XX.X revenue

thank continues favorable benefit Exhibition Spiro for primarily defense in another industrial to industries. both quarter. teams I solid efforts a to from mix, their the and in pharmaceutical, GES and client focus Spiro delivering want

solid and demand we Exhibitions quarter, recovery to continue. the Spiro expect GES trends as As into we fourth see the move at

economic on seen similar not client have budgets. third XXXX and rising the participation quarter and or corporate GDP, impact should we client any growth inflation spending or slowing be headwinds level. spending Same-show show to trade of Despite

a to Our see us will signs cost structure slowdown. react of new allow broader we if economic quickly

that, more provide with financials. to And turn Ellen on over to Ellen? some call our the I’ll detail

Ellen Ingersoll

year we’ve Thanks, Steve. us, With tightened adjusted much for of behind our ranges EBITDA GES. and successfully the full year Pursuit

on as reduction primarily The to XXXX third Page range shown prior of $XX end $XX to range adjusted reflects $XX As performance. year range million. million quarter we of guidance Pursuit’s XX, the million the to expect in to the be our million EBITDA compared in the for $XX Pursuit’s top of full

slow in fourth $X in $X year-over-year million expectation expect year Pursuit’s quarter adjusted the we the the reflects to for primarily XXXX The to range growth million. higher expected be quarter, experiences. For to relative fourth EBITDA revenue and seasonally our our from round loss improvement of new same-store Canada

to turning Page GES Now, XX. on

of expect full We be quarter GES’ reflects $XX in The for year in to to $XX improvement primarily million the to of range EBITDA $XX $XX range to performance. compared of the guidance XXXX the prior as million. third bottom million the our million adjusted end GES’

EBITDA million quarter, to as to fourth million GES’ the compared of million the fourth to For in be $X.X $XX XXXX range the $X in quarter. expect we adjusted

year-over-year higher Spiro major We with same-show clients. expect continued to revenue revenue in and deliver strength by spending

some higher prior partially revenue that the We performance expect be benefits and offset in of by realized non-recurring higher the will benefit year. incentives we based

to that quickly affecting XXXX. the to business comparisons fourth of also to I’d touch are quarter like changes GES on the some

over revenue we $XXX anticipate million levels, the lower reflects we about revenues be GES’ of in client partially that overall and wins same-show exited past This connection GES’ exhibition, quarter. delivered new profile Spiro margin revenue the expect client few Spiro. margin in at by we in the on with at XX% efforts XXXX our quarter fourth about business pre-pandemic to improve will XX% While full basis, from reduction than a years the offset overall year lower spending

flow cash onto outlook. Now

million of full range $XX expect we the year, operating inflow with fourth currently $XX to the of a cash million. For in outflow million an quarter $XX

$XX new year of the FlyOver Refresh, approximately Forest This growth projects, Skybridge, our expenditures fourth new the Hotel. with reflects for of of Golden CapEx to Pursuit’s commitment including full million about Buy Build, CapEx million, Chicago, strategy $XX completion expect at and the the level quarter. Park including We key capital growth mountain coaster in

And call remarks. some Steve now I’ll turn the to concluding over back for

Steve Moster

I’m Ellen. Thanks, very very environment. operating of proud in a we’ve accomplished what dynamic

teams deliver Our to excellent acceleration profitability. have improvement activity done business responding an great to strong of job rapid service and year this the in

for positioned sides We profitable experiences well committed and more on new create Pursuit to a our shareholders. remain both stronger, strategy We’re business, experiences strong extraordinary for the returns of at continued and GES. growth world class our to

selectively For we proven Pursuit, high continue our invest to opportunities Refresh, to return Build, advance growth in strategy. Buy

to will on focused cash progress continued flexible we GES, Viad. support our cost employees and profile more margin shareholders resume to margin and build on we’ve the and dedicated our generating hardworking higher improve structure through our thank date your for flow want and services. I strong in For the to made clients

up open And like call with that, for to questions. I’d the

Operator

is may proceed. Our first you you Instructions] Tyler, with Oppenheimer. question proceed. Tyler, your line Tyler may is open. Batory from Tyler, [Operator

your B. Bryan Maher Our from is will line from Riley. be open. next Brian, question

Bryan Maher

with helpful. two Tyler you the goes labor companies? Thank what your from Maybe those any was going or It’s and appreciate ask. Thank Really But margins. most with question PowerPoint that and and to the when it thoughts from our seeing for questions I’ll earnings. all you we’re changes Are ago relative that pressure some wages pressures relative anticipating you of margins to your on and deck a inflationary quarter hearing very get comments. we’re that ongoing good comes to Pursuit to of GES just covered evening.

Steve Moster

labor comes of costs the across that products raw materials [Technical some Difficulty] in and services. higher for and our

that pricing both on teams the job and good done and both or have have the a I GES – Pursuit of GES, more side. mostly think offsetting through either offsetting through done completely efficiency that at at though,

achievable. we’ve type we that forward, so, we far are the set we’ve this And continue clearly are still year same look as we ability so headwinds, doing of to these but in headwinds. confident done out what believe targets And our those against are

Bryan Maher

are coming or Okay. two travel the it back relates then to international pretty that in expect on year three? pace Do to XXXX. as that of kind course ramp to and a of at come robust Or the expecting over pre-pandemic you matching haul long layer you And or a back levels?

Steve Moster

clearly It’s of part our attention.

to But trying that them is do quickly recover. recovery certain how countries there focus for some COVID be Our travel. understand XXXX. restrictions still in We that’ll there’ll are think have on

return is the a multiyear and same had So in we XXXX we we levels but see pre-pandemic, think it to beyond. improvement do that

Bryan Maher

just then And me. for two Okay. more

is are kind any dealing change On Or dealt same who before? the exhibitions customers change pre-pandemic of back seeing in GES, type it front you’re coming or industries you the with in strongly versus in exhibitors the with? are you of mostly that of mix a

Steve Moster

off, were if think just quarter, were XX% events we in the about the – they annual XXXX. roughly of were what we First

in the and events their come quarter amount others it’s quickly there’s some of the tremendous below. well pretty were Meaning, some levels how recovery, were So a events of although back. significantly strong XXXX the of third had a variability above in

amount we’re a seeing variability. of So still fair

down we come of And change expect, exhibitors similar roll XXXX say to in terms had of I start year would events. the this rely international attendees large we’ll pre-pandemic. the and/or some to that attendees on see exhibitors look reach as we that XXXX face of customer. the face In channel one These they versus we’ve and up this that the levels. international order XXXX very into some obviously we say and those corporations level showing international to of versus the has the their seen ones are attendees, exhibitors on is marketing

Bryan Maher

is any What FlyOver is for ramping timeline this? Vegas FlyOver a Toronto? me. going you all believe to timing me. And flyovers kind and have last on has changed Chicago? Las I for just for in the And of your update that’s experience appetite there were property or your And develop more less Toronto. to then And the in Okay. on that

Steve Moster

we’ll Sure, about interest a FlyOver. talk the timing bit Bryan, little I’ll our talk in then and about first

So first open will off, XXXX. Chicago is XXXX FlyOver early in Toronto and in also

With an impacting, had the it of the pandemic impact has speed on permitting.

we working Lands city been – It’s And with XXXX pandemic, Canada We’re target start so that our approved is the target FlyOver can opening. and Toronto we get progress. but feel construction. are to delayed making our because of the we still that

FlyOver Chicago, we’re moving along well. quite

reviews are one into the well that remain to early flying have theatres, volume we from can requires line margin way visitors very your unique experience To committed environment. a FlyOver the they point strong on We margin create and very get that create on assets we’re Obviously see that concept already an unforgettable to of starting about finish But experiences. been XXXX. for and Las construction. our high in And high are that these Vegas, FlyOver.

have we of that rough that’s remain it Chicago and and kind timeline committed So the we to Toronto. for

Bryan Maher

all and Tyler Great. Thanks. reconnect. That’s hopefully can me, for

Steve Moster

Bryan. right. All Thanks,

Operator

Oppenheimer. question Tyler next open. Batory line Tyler, with your is is from Our

Tyler Batory

going to questions all the Great. was Good difficulties technical take I Bryan Thank for Apologies you. the Hopefully afternoon. ask. earlier. didn’t

is little I’m versus mean, conservatism levels. corporate to I in getting interested hesitant the first for The XX% XXX%. the of with the macro maybe bit of XX% spend pre-pandemic there, kind that hopefully delta maybe Spiro your the about things, to side of me, given a clients backdrop. you the parts, on one terms just little a compared talked just

where the get and can of that pre-pandemic to you were gap trying get business. how above Just sense in close a hopefully you

Steve Moster

And the I of had pretty the XXXX. what they spending in feel quarter Yes. and about spend going into This XX% was spent corporate into roughly client Tyler, in strong quarter fourth XXXX.

to continue exhibition side. very We to similar the strength There’s variability. see

above Some clients were were ones levels, other XXXX below. their

back seen of to travel, XXXX. think as open, versus more which think come I that borders I the client that to improve open XXXX having we’ve and get continue course spend over we So the the bodes markets to XXXX, well

Tyler Batory

GES, in see I on of think progress efficiencies. the Okay. which with were extra that then some two margin some the a the pricing I strong, balance you well? quarter? trying to performance is And out and I called cost Did in drag you nice to items categories on direct there at terms there. bit think offset out those been margin quite margin, little those incremental called from out drag equipment Was the evenly and themselves a as mean,

Steve Moster

Yes.

specifically, For unique required the in would. the some did that quarter events of we there than is quarter the – more third traditional equipment the trade show

increase so as increased made either mentioned. you ways to a to of offset those little really or feel continue drag I efficiency through bit events. in couple had costs we’ve create a And But cost pricing terms significant did we overall headway like a and on of as our cost find structure

Tyler Batory

then I business help us, in the perhaps talked The time last the if recession Okay, on then much around past. about is we last great. to time GES deteriorate a trying that from how remind us positions question And to performed? just this now? right you think would better we economic remember, And think had just I’m XXXX-XXXX this significantly segment. But be were environment where timeframe. it about had the how

Steve Moster

Yes.

due environment, year of year. where think I in about we revenue to timeframe. finish the a reminder a remember XXXX from XXXX of for at we where But that If XX%. EBITDA we are the economic correctly, Tyler, did XXXX positive now the about versus we as to reduction back saw So were

what XXXX-XXXX in that it than lower significantly was timeframe. is structure cost Our

of versus time, but versus If our upside. period revenue really and you healthy just think are that that recovering about yet substantially time, margins period our our – there’s of down we’re

XXXX way, shown has There to I as climb. this taking place. – as that So levels. is it recovery the There’s back a last growth continued still strong we’ve demand, at metric quarters not still to look same-show the there’s we’re over couple

us downturn. help downturn across I continue demand pent-up decline say pretty there’s there’s some think going forward. historic. of the see lean will that level initiatives we XXXX, also anticipating more that people in to would I I was execute of that the XXXX level And and event that organization don’t

think well it years. based the we’ll actions took I So weather X.X that on the last over we

Tyler Batory

to side things. Switching Great. Pursuit Okay, Very gears of helpful. the

Some progression property? ideally terms you you and early that Vegas. terms profitability of visitation sequentially of pretty like Are Or in encouraging at still Las that of up? visitation in provided getting ramping numbers also maybe the would to to at you’ve be FlyOver terms close with innings where in

Steve Moster

early I it’s say FlyOver Las would visitation I mean, of say last seen would the over to is still quarters. couple have terms Vegas sequentially growth that innings. in the we I what

We’re happy are really efforts continuing we And take anticipate that of lot that. see place A we’ve starting as to we to that XXXX. hold. into initiatives go into put and the

early and to classify initiatives good reviews going with it So would I right as XXXX. I have think asset but move innings, the on we needle our a finger strong into the

Tyler Batory

or at high next if those guests just are Asia, really visitation, that last look not? might a not China. to knows that. year. me us The a chunk big Okay. group year, scenario think And they going to mean, I topic of on going is related about like able I long are of respect what to help conversation, haul year you’ve I perhaps for hot of what’s next a a think that with level, be next is Pursuit here. to travel question Who the chunk talked In Pursuit in coming know maybe where

there? the you that help think additional to potential visitation can pull have some You maybe some you offset of you levers missing

Steve Moster

travel a those our But XXXX I long is tremendous of and will in where for strength And portion up based be of come amount from. the to all on visitation see hit visitors Pacific point. right anticipate Canada on the in open countries Asia Yes. a FX. not. is you It unclear U.S. strength or of you the if seeing haul mean, we

dollar historically has been as look has FX visitation Canadian to back If you properties strong. always the our U.S. favored

team see to or strength we XX or experiences experiences launched go their XXXX. hand early but to over we’ve to last a our done XXXX believe couple in we We’re got early proud experiences have I within only years they then the we ramp, and those the They’re appropriately phenomenal new our also it of into quarter, and elevate about continue the experiences. their as that to that job not as super And in journey beyond. RevMAX those continue pricing new since just

for And quarter so to results side. and strong the on last XXXX, numbers same attraction you relative look our the year that’s at why when RevPAR

just eliminated I random – overlooked. there’s COVID would testing enter headwind So October also believe on Canadian one mention gets I that it think guess country their government last I Xst, the to sometimes The I was.

us And was that that So there help to will tailwind haul come based level properties. of into to now, some eliminated long still a we within quarter the place. able on if our in with as that go that’s being we visitor that headwind believe also isn’t XXXX,

Tyler Batory

Great. Okay. That’s for the me. detail. all for you Thank

Steve Moster

Thanks, Yes. Tyler.

Operator

open. is line Northcoast. Mehta from Kartik next your is question Kartik, Our with

Kartik Mehta

there’s standpoint thoughts Thank you. from GES just if about budget early, as caution Steve, to indications I a thinking any early XXXX, ask just little any? in wanted business. their they’re I been a clients, talked Or your but are? you you’ve what what you anticipate outlook? the And about it’s on, know to

Steve Moster

little show client seen side talk corporate side. a about Kartik, then the indication any and I slowdown. of the haven’t I’ll a bit trade

or advance terms participation hesitation the reduction And a in lot the trade side So exhibition XXXX. on haven’t exhibitors a into seen event. of going space will the shows we at for sign of full year these any up of in

don’t see So at I anything. moment, the

then And marketing face experiential kind only doing are trade experiences other but also face marketing. of that not with to shows, our at corporate conversations clients with

budgets. strong seeing are We

think pharmaceutical, we Spiro is and Our around go really strength defense industrial into XXXX. I which this really companies, and clients during I also as has think will help within helped forward period

see not recession, So to is say growth And right that this that business signs now not from continues a number as you to recovery from any our a same-show but quarter-to-quarter. there’s still climb immune taking we’re of seeing place. slowdown

Kartik Mehta

year labor if capacity trying and or at opportunity hotels because of tailwind say what your you changes the that side, year. And to from in and maybe would another at the utilization, constrained was issues, provides were all attractions? figure Pursuit that the just if next for Steve, on XXXX, this your you out, Just business

Steve Moster

look data look in the QX at was you presentation. if you Yes, that – the if Kartik,

You’ll we occupancy, see XXXX, bit a than little every doubt XX% down at that were a that higher from no in challenges lodging perspective, points XX XXXX. There’s from were there industry. labor

those numbers to very occupancy post But to overcome not We still is very really the strong are challenges. high. Still labor and that. a team found way immune

XX% also of I’ll two two for Chatham the down that Jasper which weeks shut town the that weeks. really in also of the occupancy fire, about add with includes

impact material a occupancy. had that So overall on

but So available on rooms occupancy. it labor at labor – having see there’s the a this point, impact impact challenge, our I or certainly don’t an the

in less labor more If of out really gears the coming an in are employer talk we the passengers as that’ll we versus attractions a in challenges of each total the strength give And bit workers switch think markets seasonal obviously that market. we as year. and despite even into a about XXXX. choice a – were period, continue go lot labor us some attractions, XXXX able to But little ourselves and back same in We again, of are see the we we intensive. repeat having that view we’re

Kartik Mehta

much. you very Thank Perfect. it. Appreciate

Steve Moster

Yes. Thanks, Kartik.

Operator

back further At to the call Moster, at this questions. Steve are further are there this no time, over I Instructions] no There questions you. turn [Operator time.

Steve Moster

of to quarter thanks end everybody joined forward our fourth And and Austin. us take Thanks, today. you care. at that Look updating the to

Operator

This concludes today’s call. conference

You may now disconnect.

Pursuit Attractions and Hospitality (PRSU) 3 Nov 222022 Q3 Earnings call transcript