Earnings call transcript Q4 2022

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

Operator

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Viad Corp's Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions]

Carrie Long, you may begin your conference.

Carrie Long

you Full us Year thank Fourth Viad's and and Quarter Earnings afternoon, for for joining XXXX Good Conference Call. earnings earnings both our along at issued press market after We closed viad.com. with an on presentation, available are which our website release today,

be to the during that We and our press point as out referencing income the outlook. and presentation pages referring business to including call, or and items. be disclosures will release measures our loss that we discuss performance specific regarding contain I call before other from will the presentation we also non-GAAP EBITDA important want earnings during adjusted net

Pursuit; you and hear of Barry, President and the Steve Moster, our of David will Chief Financial Ellen CEO call, Ingersoll, Officer. and our President GES; During President from our

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

over I to that, the will with turn And Steve. call

Steve Moster

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

give I clarity our later expand I what highlights want you forward. on Page X, my to and each seeing on in on the quarter Starting provide will call more in business. we're path on highlights the David, Ellen, to and these

made came back to significantly in achieved adventure drive XXXX. levels. growth event we've our GES industry performance the our steady XXXX Build, year in with from and Refresh, outperformed through roaring of the travel pleased very our recovery continued initiatives. as the in investments record live the Buy Pursuit to the revenue pandemic industry I'm First, due expectations

in the Viad delivered results through macro strong and focus improving of our profitability despite XXXX, several strategic Pursuit forces. Second, GES, on scaling external

Pursuit hotel the Chicago high-quality During our as Skybridge to and Also continued inspires headway continued to client the Jasper investments, GES make new our transformed attraction improve and structure and new a existing remarkable the in meaningful exhibitions year, growth mountain the progress on growth coaster the of of other Golden trajectory at well Glacier downtown FlyOver new traction. profitability through and additions Park experience the made including as exciting a its year, GES cost wins. collection to business during with

And continue lastly, the based Pursuit's growth experiences businesses. on ahead international to on I'm border in expect our recovery the full businesses. XXXX and acceleration of path excited I fewer new restrictions Viad for travel, the and beyond of about

I'd like the performance And Ellen? over and to detail. quarter now to to full year call in Ellen turn fourth discuss our more

Ellen Ingersoll

Thanks, Steve.

we our into current a to release jump spend minutes results, to like just covering I'd I Before prior afternoon. this press an that X-K earnings quarter our filed few

re-measurement Sky an obligation krona, Icelandic sheet lease identified accounting is to we error lease During for but procedures, our year-end relating a requires December payable prior a exchange foreign balance monthly in Lagoon. valuation any recorded close is place or finance taking to noncash not at Logan's Sky review and U.S. our on liability That in gains XXXX. dollars therefore, on had being in as XX, re-measurement This recorded basis changes been with losses.

of FX be to quarter statement $X during are million, cost reported an XX, we from services income in of to as in Form re-measurement result, gains the resulted income $X lease file restated of of and and measures lease million. gain September million, an of of of was XX-Q liability and cost year services we adjusted by and liability our items. recorded. have $XXX,XXX been FX that on XXXX noncash and understated loss net accounting other have XXXX, this a these plan excluding $X.X error. We of the income Viad included this corresponding or attributable the loss FX the to amended $X EBITDA correct fourth relating overstatement with third As loss should of and net a understatement losses of FX will to to non-GAAP The million our gains an losses XXXX for before quarter, that full bringing the

results. our on Now quarter to fourth

Page $XXX the XX% up XX% on XXXX year-over-year, the as $X.X fourth quarter. a million and growth X, Pursuit driven growth at fourth to at million of of $XX.X quarter. As loss Net consolidated we XX% million was or Viad million in $XX.X is during attributable GES. revenue loss to compared delivered shown This by

$XX During the sale on that within million. Services, of quarter, a we recorded for of GES approximately million business and the completed sale a ARM gain $XX.X noncore

gain and loss items, Viad prior certain quarter loss the million fourth quarter. year a compared items the was to attributable million that Excluding before to in our as net other other for net $XX.X of $XX.X

prior by guidance. adjusted event consolidated activity $X.X to $XX.X million see our high the million in GES GES we $X.X guidance year-over-year adjusted of with was of improved $X surpassed line the continued range execution team. Our year-over-year our EBITDA by negative increased EBITDA million million as of and great strengthening and end and prior of live

quarter. prior $XX.X and range, negative million in was year expenses due EBITDA primarily our adjusted below came and seasonally to higher-than-anticipated guidance prior slightly in Pursuit the slow

same-store largely Experiences travel to well or acquired revenue our existing resulting XXXX. as refresh and maximize efforts Page COVID revenue X. reduced our result year-over-year, from million or Pursuit's restrictions during XXXX same-store of The $X.X grew stronger and million of of leisure Canadian the was New to growth opened of we properties to million XX% $XX.X revenue. experiences, growth as and revenue growth that $X.X Turning from on Fourth revenue with million $XX.X quarter performance year-over-year

the Raft XXXX prior FlyOver Skybridge. and to compensation-related the negative by prior compared the during Forest delivered EBITDA versus positive XXXX adjusted as acquired insurance in of as improvement $X.X Lagoon did versus Park as XXXX higher approximately Sky the Golden year, including not and was or as ramping million Las Fourth Hotel, of we Experiences well COVID negative prior well The million and New that expenses was $XXX,XXX partially quarter received during by XXXX. in reflecting repeat of million primarily The Company $X.X subsidies in and adjusted a the opened from Glacier seasonal the driven year. wage of $X.X decline is which year, million expenses quarter, losses Vegas offset as addition EBITDA $XX.X the continued

GES' switching to Now over X. results Page on fourth quarter

grew Spiro million. GES revenue delivered million revenue grew GES $XXX.X XX.X% exhibitions or XX.X% or $XX.X total and of $XX.X million. revenue

the support robust and recovery early As Steve million end fourth rebuilt well event revenue by levels cost will At with to of cautiously strong XXXX, lean EBITDA as activity. the reflecting more cost pre-pandemic year-over-year, $X.X adjusted GES review activity. quarter into XXXX later, business of GES' structure we as higher the running returns. workforce as a the toward was revenue we live in very to as continue see improved increase

remain GES and workforce to flows level and By acutely are add on within normalized the for GES. continuing third cash we profitability we quarter, a focused exhibitions had Spiro. prudently talent to returned maximizing We within

X. on than year adjusted million revenue and $XXX.X year to doubled Now XXXX from in $X.X million, switching full EBITDA over results versus full our consolidated Page Viad's reached up XXXX. more

saw our how went year, and customer are during a of well everything record teams executed nearly rapid of with a the extremely pleased activity we planned our grew from reached Pursuit's level as strong full revenue industry results suppressed the $XXX in as million. pandemic. improvement this not year to deliver While levels XX% service

EBITDA adjusted year $XX.X Full up million million, year-over-year. $XX.X was

of EBITDA of New adjusted $X.X of opened and 'XX and adjusted Experiences million, acquired XX%. or 'XX, $XX.X contributed revenue million margin an during EBITDA

XX We adjusted expect improved basis, million same-store in and Pursuit's On of EBITDA challenges cost these of the expansion New to the able margin basis by XXXX price Experiences we and increase was as to other revenue million beyond. primarily XX% on a XXXX factors, or their adjusted $XX.X were will through by view and EBITDA versus increases same-store by staffing-related fully margins that we grow improved mix offset constrained transitory which including increases. impacts, $XX.X not points. guests, and from Margin continue a several contribution pandemic

as third the we fourth we cost service as during maintain the levels. an nearly had Full leveraged Margins GES, flow-through focus At of X.X% as of particularly cost anticipated lower on million we EBITDA $XXX.X as rebuilding returned business of were margins cash management versus experienced far XXXX margins delivered continued adjusted more slightly in level increased quarter as quickly deceleration $XX.X teams sharp increase GES' We EBITDA of during drive the staffing on a revenue the year-over-year. was a revenue during quarter our and margin XXX% GES strong year improved our we flow. for strong second sustained activity. we to than quarter structure adjusted improvement million. revenue

cash ended total Now of quarter quickly sheet dive in comprising available and $XX and fourth million highlights. I'll capacity the balance credit more cover items our some flow into liquidity on million approximately with We of facility. business revolving cash deeply million, $XXX before $XX we

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

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

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

over $XX operating our million implemented loan by have and cash debt few development were years totaled assets builds GES of debt Our part that we a On transaction sale FlyOver sheet loan capital of changes and and that $XXX $XX including the the the enhances based fund obligations expenditures GES' of Hotel other base, audiovisual ON of mainly approximately model. including proceeds million, on Forest approximately the services financing lease help operates of approximately December million growth totaled the simplifying construction $XXX past our Pursuit, December about million GES we $XX At for of balance of the Services, for our quarter completed $XX at million and approximately on $XX CapEx U.S. term for the Park XX, XX, Chicago. million. This million. strategic business transformational as further to at

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

I'll call turn now discuss Pursuit. over the to to David And

David Barry

proud X record not full quarters with of entering along in the revenue Thanks, were each These quarterly to in adjusted results projected strong growth as XXXX, EBITDA. as we XX% year-over-year Ellen. XXXX. financial of delivered We're have year

Vegas COVID year of full take effects first our efforts as on we're and we hold experience our be continue pandemic, travel this has experiences. seeing awareness to the continue which impacted restrictions the seasons Las saw operations to We of to meaningful And some Las our temporal marketing relief of and slower-than-expected same-store many attraction of over ramping that at Vegas FlyOver the results the Boulevard. COVID past way on thrown new and and increase headwinds newer front. several pleased

to we're take record in improve in Our the XXXX, performance. to let's adjusted performance come and track our that strongly on But and of EBITDA to to revenue more forward first, delivering a come. review XXXX is looking on shortly, year

of growth. of million reflects is the delivered Buy our commitment collectively our in opened its we've Build, revenue $XX.X total strategy XX% to XX Pursuit's XXXX, earnings which acquired that New in The XXXX, from through for XXXX year. XX nearly revenue Experiences or revenue impact Page Refresh, ongoing our Pursuit's presentation on and

performance experiences as growth As and from destination is iconic headwinds further long-haul XXXX.On these despite elevating Refresh, build of full experiences year we growth markets also XXXX, margin we existing and Build, continues to focused experience anticipate X.X% Pursuit we've XXXX Pursuit awareness that experiences. at at continues versus Buy revenue revenue optimization. same-store the on remain were return, to prior at the been part guest improving driving successful expansion guest by basis grew a visitation about to price and and pandemic-related

remain ticket revenue Relative stronger same-store drove beverage reliance retail, international our and attractions while and leisure below their on lodging, to from greater XXXX, XXXX same-store through levels due to group revenues food long-haul we travel.

attractions the deck XX% full performance in covers levels. XXXX On XX Page our year attractions for reached basis, same-store XXXX. of visits a

during attraction versus in attractions markets from ticket of ticket we other We're $XXX ticket prices. visitors compared in to approximately as drove beyond. 'XX However, destination and 'XX. return we're a million effective looking XX% visitors and forward overall and XXXX markets to have growth with by welcomed record XXXX in And the additional from XX% Asia-Pacific million as revenue of to gradual overall thrilled upside international revenue invested of new higher total X.X grew XXXX

our just fourth continued and attractions. quarter acceleration performance saw attractions that highlight year-round we I'd covers at XX like to Page newer

multiple that FlyOver XX% QX and have At third we've from Las period into are ticket from XXXX. inroads fueling growth. important attractions proud quarter the increasing awards prior to the Lagoon experience networks won period for we're from the XX% immersive by made the in prior distribution experience, visitors Vegas, best XX% year. bestoflasvegas.com. same including increased -- fourth also same visits And in delivered for silver with Iceland quarter the period results strong from Sky

driven ADRs. same-store our RevPAR with increased reflecting XXXX higher and properties, $XX compared nearly and Now occupancy XXXX, revenue higher performance earnings ADRs. our portfolio million additional by grew which was average daily and to XXXX. as XX which well and higher I'll rooms as XXXX growth lodging to presentation. results we Page investments reference a to of at rate. of and cover XX% year-over-year The driven returned XX% On versus lodging on increases by XX% XX% by and expand levels our versus was growth rooms by both The occupancy, in metrics refresh our XXXX year-over-year year-over-year basis,

Page fourth a Jasper continuation Vance, that XX% remained our we attractions, performance And lodging Montana strong in XXXX the into first of and year-over-year. XXXX. the shows the our see increased year-round growth Rooms year-over-year of our XX, at quarter revenue On to strong during similar properties quarter.

the And million again of growth delivered the driving in continues and improve streams. year-over-year made part culinary our delivered of Moving We a into on increased of strong year-over-year to the be at and $XX.X XXXX part restaurants million. revenue saw retail hotels as which our key we businesses on is focus located lever within Pursuit, to of to retail XX%. strategic future throughout the revenue integral our year $XX.X to hospitality experience. business, an historical investments margins. view healthy Food Beverage to XXXX and XX% experience important revenue ancillary retail also growth growth growth returning an and in our

right. All

So year now let's the attention to ahead. turn our

of healthy to return strong pace armor as at experiences dents no booking coupled We with terms We And in remains the see international newer that and for see the us travel for season a and accelerate. continue performance the of in indicators early leisure booking XXXX. optimistic strong. our season has guests successful demand 'XX

testing United seeing were finally in each these experiences, will in a visitation in revenue XXXX. as same from is pacing period Demand strong the and the current enjoying ski strong in our Canadian the impact all January, season a already And year, although quarantine cruise that be great season. and be XXXX and of to of iconic risk. we're ahead product Pursuit for constrained lifted is X demand of Canada in years in Canada planned on Alaska 'XX our destination in not early For first quarantine of will safe positive by strong is Montana. October the in geography. showing States X, for and Pursuits arrivals a for testing continued seen enter restrictions is COVID And this well and improvement return pacing operating is the Alaska also 'XX line still Through state year-over-year summer and National Glacier XXXX. with Montana Park restrictions,

early bookings our early booking in still season with year the expectations. lends cycle, confidence pleased we're our which full to While pace,

United our from the Demand for European States. strong the Western Iceland same-store improve and XXXX approximately all markets to basis. UK of XX% our on from Western will attractions We Canada Western destinations operators expect levels of in to visitation a is

the million world to to programs tourists for outbound momentum. and two the world, in the slow to exported for during to 'XX see increase XXX visitation China's reopens FIT. inbound late to to expect will full Pre-pandemic, China And XXXX. relatives visitation we friends expect historical this seasons short specifically to reopening their and return tour travel partners visiting it for Canada segments, resume will a come given was Western we China notice and take two bookings. and As in

We do demand see the operators very season. Chinese 'XX for from strong

In We turn, will first international in pre-pandemic in will, year, FlyOver the X% from Iceland, XXXX that of be the benefit an benefit suggests anticipate both levels. about Iceland in our research to increase this increase half which relative to Sky and Lagoon visitation Iceland.

war we're growth, So focused three for related in on important acutely factors and winning success the and revenue expansion margin XXXX, talent.

is recover strong on and demand Las strategies perform awareness Vegas guest Margin our expectations experiencing. that new share I and executing as year. a and as for from Adventure This to and also and on heavy those minute on means such our volumes sharply revenue view Glacier and traction certain expansion just attractions our Skywalk. trends I'd long-haul the beyond. including driving take dependent international pandemic, visitation are and the experiences focus we're So the highlighted pre-pandemic the critical in margins slower volumes recover Columbia XXXX Golden FlyOver to to New like means With the Skybridge. on are and been growth, focus It that visitation our at how have and focused more tactics backdrop, we as throughout another starting area, that maintaining ensuring that improving we Experiences, at regaining well expect regain with ICO a to guest

our a on our constrained well high-margin of by pre-pandemic our attractions, return expect expansion mix we ramping XXXX, to XX.X% driven meaningful not In adjusted headwinds as touched visitation primarily guests of New XXXX Experiences. EBITDA by to full margin and was Ellen cost at earlier, see pandemic As levels. margin increased on of but the as

when are fixed guest to that our The flows significantly know, volume, the our once high profitability revenue line. breakeven rate is from cost is guest attractions a high, for visitation built every incremental you achieved. increases at very meaning As bottom

we're extraordinary ratcheting foreign and the both Canada labor in programs measures put the in place shortages worker disruptions and to are pressures Additionally, pandemic staffing the back to U.S. easing actively and due

will Beyond exceed XX%.There we're drivers and expect few 'XX, XXXX in again once focused beyond that expansion margins we are on. a margin key of

on line XXXX attractions basis; levels full the to are part in achieving owned strategy. three return recapturing is we margin attractions critical and in volume that operated to that in a in a XXXX our expected XXXX is of recovery with seven of not and visitation First XXXX same-store guest

demand years and best pleased interest our pace the indicators seasons in are and its Contracting travel the for historic of report are world contracting that COVID we're 'XX of earnest across begins China levels policies reopen. future and we and 'XX as and trade strong to returning partners see to to shifts

Our FlyOver back about beyond. and and our our and businesses our at relates second ensuring growth my specifically to Las attractions driver comments 'XX anticipates plan Golden in Skybridge the newer that and Vegas continued perform long-range

half to in expect FlyOver Chicago to 'XX, FlyOver accretive also Chicago and Pursuit's We be EBITDA launch to we the expect margin. of first

third expense and for winning focus careful on management. the And XXXX, talent. a for final on really labor And critical me margin the and our factor is specifically driver, that to success war brings

acquisition of increase summer metrics and the for another availability the international the see members seasonal Our we're are to pursue trending in normalization workforce and an positively in starting the team supply. talent who early to of season hiring number ecosystem, returning are including across

locations. and provider and In member to of hospitality experiences, at centered will execute investments team improving attraction we on a of be experience number addition, guest world's against leading with the several the important a vision

and for attractions. restaurant the a cabins Pyramid in housing original examples exciting new and content to upgrades Lake Jasper, flyover refresh workforce our our founders Some of Lodge include facilities the Pines at

great to experience. geographies evaluate next in seek Pursuit continue opportunities We for investment multiple and the

operating unforgettable in inspiring normal a much forward closing, Pursuit XXXX believe of and the mark to iconic, will experiences. So return of welcoming record guests environment all our we across to that of very a and we number more geographies look

Steve, back to you.

Steve Moster

Thanks, David.

GES let Spiro. switch our about and gears Exhibitions which both Now business, marketing the includes talk me GES and agency,

our better than expectations. GES During to to revenue quarter, expected the continued continued perform as recover fourth above

addition drove EBITDA the the a of our range high quarter delivering the GES end strong substantial In of top during line guidance growth, above in to profitability for with adjusted fourth $X.X increase million quarter.

the trade like I'd United performance organizers Exhibitions, GES leading of North provides show and talk First, services to event Emirates. which Arab America, about in to Europe

$XXX.X million and fourth $X.X in the During delivered million in GES Exhibitions quarter, revenue EBITDA.

the strong results prior faster-than-expected recovery. by were quarters, Like driven a

size the quarter, to During produced. of GES continue fourth Exhibitions experience the in improvement events

reached of as trade the to from variability at third on recovery shown with has by of pace XX, a marketing rapid XXXX been corporate of XX% and not revenue value GES XXXX major component recovery resilience, pre-pandemic encouraged very size. the the of individual I'm broad shows as to and of there shows a of Page same-show the quarter. trade As their uniform XX% up relative however, levels, illustrates shows The strength in significant pace U.S. Exhibitions. set The be trade continues recovery of in today's channels. of across between XXX% recovery, performing shows XX%

performing lower GES tailwind a recover, shows the this the will performance. be Exhibitions' As for fully

Next, discuss the corporate the as quarter our experiential XXXX agency I'd marketing like for which at serves Fortune record agency, clients. Spiro, of fourth to

EBITDA. side corporate level Spiro aerospace which of defense, industries. in GES, spend of million quarter, Spiro fourth and delivered show the revenue from Like in million and $X.X our pharmaceutical, trade and concentrated marketing the a medical, are the technology strong clients, During in $XX.X saw industrial

approximately spent the of spent on During basis. clients quarter, the XX% Spiro XXXX a fourth marketing in same-store level

Sirona, new have the Dentsply won beyond. several will XXXX During an Spiro and in impact which quarter, clients, including

implant and producing on stage. Spiro's for an of wins Greece These project will production implant strength XXXX dentists, demonstrate their Summit be Our in the Dentsply creative, strategic Dentsply Sirona Implant client World new and surgeons. for top international Avon's periodontist first talent

while second we Omicron-driven business. finished quarter uncertain year activity start acceleration for experienced the but a live postponements and event in challenging first for chain pleased and quarter. expected, challenges the labor Revenue GES the an very recovered quarter, uncertainty. supply I'm business team with well in responded fourth XXXX. a and The than the to rewarding will the high beginning From hard work business cancellations of in through levels the rapid with their adversities bought these shortages, faster how position much

insights the XXXX, you expectations to in new expect like guidance Exhibitions levels. In later what give I'd of revenue with our the at call. our to to Now we into stay line I close and will some year GES in Ellen same-show for experienced XXXX XXXX XX% cover in

large and trade medium shows XXXX, in we companies returned to international corporations from not have While quickly and yet companies. seen participation significant domestic smaller

similar Given headwinds the $XX these million the GES shows, expect call of negative year-over-year of Exhibitions. Services positive show revenue approximately Spiro, until million major year-over-year I from revenue what approximately anticipate At will levels sale ON million but for marketing will increase in XXXX. XXXX at of Exhibitions of trade $XX shows. early $XX non-annual late I companies XXXX.Additionally, the XXXX approximately rotation, of will not or driven bringing in our and from of again XX% Show will future, timing an experience by in be client strength turn rotation we to participate in XXXX, roughly XXXX expected GES spending

that Additionally, won clients Spiro. new in their will from marketing programs start XXXX I growth XXXX with anticipate

prudently clients and intend and success clients and business in great additional from to winning seen our have clients in existing expanded service resources capabilities. to We drive new continued growth invest with new

a talk to Ellen our bit to about over financial call the turn outlook. little I'll now And

Ellen Ingersoll

Thanks, Steve.

existing and on continued our expect from focused businesses. growth maximizing performance XXXX We are in

million at the XXXX new to of we of Page on the guest experiences is Revenue Pursuit's Buy our primarily the XX% EBITDA expected COVID improving the XX, border, restrictions $XX.X XX% experience compared on ongoing in acceleration shown million growth $XX range Canadian strategy. of to expect be driven Refresh, XXXX. adjusted by and to in as year focus full increase year-over-year, between lifting $XX and million for all As the Build, to through

to million XXXX slow the to quarter, expect as million range to $XX $XX.X to travel, of with $XX.X pointing expected adjusted to the $XX seasonally $XX into $XX million Pursuit's restrictions million from leisure in XXXX. loss range XXXX. For signs a compared and Canada stronger the up Revenue be removal in be EBITDA of improvements much in in in international first to border million, we is of million all visitation in continued

Pursuit variant. is Pursuit's beginning was relax to year margin will The improved and of last recover. staffing entering to We concerns when relating compared newer and our world to error visitation the our the experiences pressures levels EBITDA facing higher anticipate year Omicron as adjusted restrictions as that full the expand year to with the performance same time cost attraction just ease. continues pandemic

on Now turning to GES Page XX.

sale is share in $XX We expect be primarily to which EBITDA of Revenue million rotation negative in revenue adjusted $XX the headwinds in about million of $XX contributed to expected full GES' about compared for $XX Services, of XXXX in revenue decrease XXXX. million from about range ARM the $XX and XXXX year as to million to X% year-over-year, due million. to

GES' beyond. 'XX and to We year-over-year full XXXX the due impacted margin investments will year EBITDA in be in Spiro's to adjusted fuel revenue growth expect and temporarily in decline

same Exhibitions pre-pandemic and revenue market XXXX Spiro. growth of from we client clients share to As remain at spend We're GES Steve XX% new about expecting also wins anticipate at Spiro mentioned, levels.

and quarter year. wins in XXXX. Spiro the quarter million, stronger relatively comparison the in For of first million $XXX is we during XXXX.Revenue as to first expected the will EBITDA expected reflecting million of headwinds $XXX.X quarter, range performance of first the Omicron-impacted million to easy million adjusted the offset in in The $XXX $X $X.X to million to new the expect be to mostly compared GES' of to in range be a the balance $XX

during rotation $XX million show third in headwind rotating the quarter the most expect about We to be revenue with out. pronounced

the modest fourth quarters. positive each rotation second expect and in We first, of

cash Now on flow to outlook.

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

commitment projects, year to also We our the Toronto, flyover outlook, strategy million XXXX $XX Buy million a with quarter. Chicago. Ontario. including like million, to This $XX level first $XX of capital Pursuit reflects growth expect on expenditure full million expenditures quick our in of to in capital including $XX growth for Build, Refresh, FlyOver project connection with CapEx to our proposed I'd provide In key update CapEx

has previously, process significant this original and and XXXX. related for we've the delays permitting project in As other since the COVID mentioned inception project experienced approval

permits in XXXX, project no city The incur attraction remain capital Toronto and project this At we anticipated. XXXX the to expect minimal had we final previously as the in Toronto. related with its and time, to we expenditures open approvals pending expect of to FlyOver longer

further provide regarding FlyOver available. updates will and Toronto as We when

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

Steve Moster

Ellen. I'm ahead I'm growth stronger, with in about very profitable our the experiences XXXX world-class we at of proud more accomplished a beyond of both and and business Thanks, Pursuit XXXX new sides thrilled on lies GES. in what and the that

As for we well-positioned of of is trade Chicago. line and long-haul margin expansion recovery New FlyOver growth ramping Pursuit fulsome Experiences solid from the of our opening look ahead continued to the top travel more a and XXXX, international visitation,

remain client marketing than its shareholders. greater create of expected strong For X% tailwinds of GES, to and reach to expect EBITDA our corporate full in in strong rotation committed and is GES from anticipated margin million sizes We to returns budgets. approximately XXXX. for experiences target $XX XXXX of adjusted show show we our and recovery extraordinary positive strategy an

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

support to the clients our cash cost hard-working and the to will profile structure want and GES, flow For for employees and continued generating through strong and your I lower made in date resume we our shareholders margin our on higher-margin improve and Viad. focus we've services. dedicated to progress build thank on

And we'll call for questions. open up with that, the

Operator

Northcoast line question Instructions] [Operator Your from the Research. comes with Kartik Mehta of first

Kartik Mehta

Pursuit. Steve, but just early, if a helpful. properties couple XXXX the for know don't early be early or it's of demand some questions on I of would reservations your Maybe from too just outlook,

Steve Moster

actually it. Yes. He's let Thanks, David this Kartik. closest take I'll to one.

David Barry

well Montana, is What's Canada XX% everything up We're seeing demand Western ahead. is increasing traffic, year-over-year up is Alaska XX% Yes, pacing and from and XXXX positive. Kartik, which demand from specifically demand, channels. all in interesting, all in web

a it off feels We're good. So good start. to

Kartik Mehta

rotation? is you canceled because I'm Steve, and COVID? show environment little was talked the about or or you something seen this changed large just just show economic or have wondering, a of bit Or or normal rotation

Steve Moster

the Kartik, we is events that's non-annual normal This cadence a that see. the good question. of

laid we what is into and on the expect for 'XX for those for events based these out we what years. non-annual So 'XX coming back calendar

Kartik Mehta

do then you're and like -- were to I'm you you bit on happening just and addressed side what's And and staffed? trying employees that? wage a feel Pursuit the on that with you in past, you find one, last Obviously, two, on of some I inflation to both in fully kind And the there the call. issues XXXX what maybe little wondering, one, think GES. anticipated one from

Steve Moster

Yes. Thanks, Kartik.

talented business, labor we the side In GES the terms team. are of the people on successfully of join finding to

people continue are exhibition as not staffing the the that the at capabilities. revenue. Spiro, close for we're within level to add We level need we selectively on side, And we out if building this of very to,

the So which XXXX, the -- was the we're challenge in of of there pandemic. find talent, in bit heart able a that -- a is to in

let So like talk And a past that I about lot Pursuit. finding bit join I'll and feel of to a David team. little we're us candidates the quality is good

David Barry

it's Yes, encouraging.

encouraging. hiring help will able margin get incentives are full have Canada both perspective. to those in of to a for to that the back We're shelf, team place and folks some U.S. have the to The of strong put able we on We That in put We're worker pacing work. back is swing. during from foreign programs the demand. put worst which in the continue members. ahead the of pandemic the to We're

the on quite and the having longer as then both is team that's JXs Commonwealth helps them really available because a encouraging So level.

So encouraged the a by good of quite to season. historically looking where ahead hiring and we've pacing been

Operator

Securities. Your from Maher question with B. comes line the Bryan of next Riley

Bryan Maher

or that us not of added? the ones some little a the little maybe rotation, to strong. as granularity and and are what to third talked X the Just going the more bigger you exhibitions week some non-annuals On kind of big be and commenting give quarter's to year us about the show Can color. of are X, a being kind you in X give

Ellen Ingersoll

Yes.

in, million had We have we IMTS third ones we On International last had third the Woodworking do show more QX in QX won't quarter quarter We mean, last and in, I and as rotating air this rotation one are $XX ranges quarter. shows small, fairly and just have $X sorry. QX million.Bryan, they're that to rotation quarters. third from well. The thing, that switch

quarter. Farmborough the in Show, we in Air second Show, the was that had is Paris the have in QX. 'XX, And Air and we 'XX, So in that

Bryan Maher

big back Okay. XXXX? what come remind And ones maybe us in

Ellen Ingersoll

Sure. Yes.

have back in rotating we and as well is rotating have MINExpo IMTS X in or Woodworking. every that so, MINExpo only didn't we so in So we XXXX, back years as 'XX. in again, have

Bryan Maher

commentary to the seeing And side, or there's at listening Pursuit been over developing real new then of the the safe couple been currently years. say for of to Is have past no least announced attractions XXXX you've kind publicly? that expected it what and on that

David Barry

is and with correct. quite performing that at to the of restrictions exciting the But was a I of year. expected challenges international in higher 'XX until they didn't 'XX border And normal we're, lift lift in mean to the more you're October obviously, first that increase levels we Yes, quarter going what's Xst. I in one it's early visitation. be think,

when summer. operating I from that's, going going restrictions. U.S. is Bryan, into was to get have And think, to arrive, Nobody's that, that throttled. visitation X whole we're no with excited our so And year go -- the just first drive bit quarantine in the they visitation years we're to throughout this a and the

Bryan Maher

the international grow said seeing for to you'll maybe levels, think XXXX? back. year? come you XXXX do to think guess, thinking this Pursuit at some What up kind long-haul of do seasons enhance could made year here. think I I Asia. this percentage from Relative like of you mainly travel, shake where you I end XXXX. Refined in theme about Kind you two out seems years of notes the back Right. to to come

David Barry

say, tricky It's a level. to bit but global think about it a on

be So XXX to hay-day exports travel the news really and and tour didn't season restrictions tourists China out because about going December. go partners and get million with they late that. the and until China its into experience for annually no is This world leave

friends we And be leaving couple China. will FIT we'll increase, in back a It's lift with visiting and expect relatives is traditional of see constrained levels. so aircraft what travelers not the and other is an also to obviously, things, which

impact. that's to, So again, going have an

demand But for is 'XX moving at is and And what's we'll pace. definitely 'XX most an contracting see the exciting for real increase.

of think It's to definitely a the given we 'XX be see more in I that's to So on late it to return normality we'll year, how was. announcement will the just 'XX. hard get but for predict going what

Bryan Maher

And both then Steve your maybe can and for segments. and each for both in Okay. you weigh me of last Dave,

Given uncertainty, the you rising seeing your if what interest any rates, yet? macroeconomic seeing with as of business we're geopolitical world. weakness around Are various anecdotally any parts spots just in it's even issues of

Steve Moster

side No. we've first the speak the of into heavily of been I'll to the GES And kind looking business. quarter.

of point. up events currently any second quarter, We coming don't maybe that have kind of early in in spend. any quarter this And first pullback at signs way I are visibility into see client

continues of kind QX. QX into momentum the anything, from if So

David Barry

to we're low It variety really not and recession. signs a as job travel spends very in a is high-quality of unemployment, I seeing we're Yes, continue consumer things And experiences seeing to things. any leisure great not report any price resistance strong. continue mean, was we fact, in of historically rate seeing take discretionary similar. consumer We're accelerate. to

more to and continue ski our opposite, pacing having from is terrific.And the week the like all of Iceland departures we bookings gateways, in in an acceleration. the XXXX, which more in a they're season, season Iceland at little the visitation happening things So U.S. Air is for is this levels. is of inbound Certainly, just history kind at schedule see XXX record the looking largest which flight of the more destinations,

So we're actually encouraged. quite

Operator

the comes Batory with Oppenheimer. next line Your question from Tyler of

Tyler Batory

me, First things. for GES question of couple side a on the

I of shows. what think, comment think XX% made I or range, a Steve terms in

there, worse? bit a it's bit may some that think of surprising. XX% little shows needs are bit versus in I XXXX, types be the of XXXX, in shows down a are the a to Can on doing or XX% And what XXX% better show decent a give those detail improve? are you pretty for still some happen which for XXXX, or variability more little amount quite to that

Steve Moster

its been relatively quarters Yes. last couple variability each surprising. the versus It the are a same on the It's slower that of show but own of has versus high, of highlight others. But has close XX-plus there in I to greater. the XX%, several has quarters. or is show average, kind for even been been dynamics, recover industries each growth And this where way in the to percent 'XX can

future.As are And there's And recover. as slower in variability recover of Certain mentioned points, auto that to for so are auto, to that but talking tailwind I we're large some the of creates us a during opportunity the shows sectors my I optimistic. it a decreases But why as to aren't well. slower recovering. retail think those

I different it international participation. XXXX and have international also level see in of of the I and it a exhibitors is of participating and come some is think, It's just not shows industry-specific small when Some participating of both in believe And U.S.-based different and this happen in fewer into those, XXXX. question later will companies year XXXX. back. of will I that

Tyler Batory

Great. maybe just else there. between the bit what lower that I then decision, other I'm participating know guys terms Okay. in not I major IMTS, going question noticed maybe and well follow-up more? show you ConExpo. shows if assuming are But the there's on in anything competitor that strategic out of a that for rotation on show address competitive Can when profitability I you ConExpo was I think industry you the and of a big as traditionally And X a mean rotation, that topic. guys, was that talk dynamics MINExpo, about you decision, in there? little

Steve Moster

a us, perspective. sense had Absolutely. long from relationship ADM, XXXX, producer margin of long we at that is a ConExpo would pricing and which make didn't we had it When relationship need looked in we financially, a for with the the them. When with

us allows be little more selective organization the more in made be we're to nimble we've picking a profitability that changes a from what bit and on the of perspective. Some

got that direction. went a pricing to profitability propose did us the and level we organizer of so And that in different

Tyler Batory

side things. that of appreciate the I gears Great. to Okay. detail. Pursuit Switch

had have made the know visitation just I'm will be? you're conservative removed. a be quite the of think seems a I that I interested, travel comment of of been same-store getting in strong. Asia, attraction Broadly very I but basis. mean, to for could levels trade positive. kind Canada how travel XXXX you The long-haul on commentary that missing demand speaking, seems restrictions leisure from the terms XX%

recovery surprised only expecting visitations. So little bit of attraction I guess just I'm XX% the still terms in that you're a

David Barry

We've it's Yes, that surprised we're been do with and important cautious being be cautious. before. we I think things

could applaud certain. There's have think I we enthusiasm, your lot not definitely, I sense steady on recovery what And feel momentum, wheel. that parts number focused but of on that's is a we're it. my we while cautiously a But I are jobs we're still achievable your very enthusiasm, the optimistic encouraged. and and of be

So going that's what we're to do.

Tyler Batory

looking not on what at of you're side either side just the Okay. things talk M&A of of about bit that. last make perspective can such a an the ON else Services, sure more then anything the rationale as But question small. acquisition sale as for might was things, the it that? And perhaps that sense I'm well? I from little a appreciate me, Steve, from sale I behind And think or you

Steve Moster

Yes. That's a Tyler. question, great

of strategic within the some seen made you've So the decisions we've GES portfolio.

well have organized then simplifying a Spiro. also team we we specifically And -- asset. it And the GES really fit us. this nonstrategic out strategy in doing was was around had with us in business a and as so focus AV pulled in and we Exhibition really the marketing on laser for overall So didn't the exhibition. our structure agency It team forward, cost look

we as been we'll the the good a business the side, Pursuit do that. be to the and so a when that.And about look perspective, we sell of feel on And and our side continue profitability will continue in asset on so from to took the allocation we've opportunity while seen to investing we focus GES the lot of past, capital improve the forward,

Operator

with of Asset Barry Management. [Operator Instructions] Your the comes Haimes question next line from Sage

Barry Haimes

question I for had just quick a Ellen.

repeat that programs quarter didn't the You mentioned think, much quarter you you 'XX. the were size wage fourth 'XX? related how that that some Could got 'XX in in in subsidies, you fourth COVID that there to was I the

Ellen Ingersoll

Sure. Barry. That was for quarter, $XXX,XXX in about 'XX the fourth

Operator

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

Steve Moster

right. you us an quarter. We today. thanks, everybody, a in All forward look giving joining to much. Thank a month you year so for on And update the or in

care, we'll take and soon. talk So

Operator

call. today's concludes This

You now disconnect. may

Viad (VVI) 9 Feb 232022 Q4 Earnings call transcript