VVI - Earnings call 4 2023

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Operator

Good afternoon. My name is Lydia, and I will be your conference operator today. At this time, I'd like to welcome everyone to Viad Corp's Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]I'll now hand you over to Carrie Long to begin. ahead. go Please

Carrie Long

along disclosures thank We'll fourth and We joining for our close us our are presentation, Good available referencing both and that EBITDA you pages specific regarding call, presentation outlook.I'd full XXXX like and on today, market our the business quarter release at from the call. an year performance Viad's we'll and earnings that presentation measures earnings including before which release during point viad.com. afternoon, non-GAAP website after for the with items. be our out earnings be call issued conference contain the press important as and we discuss during other earnings to referencing income adjusted

Moster, of and turn and everyone factors our reports Information SEC.And that, statements could X President call, in to over business historical I be on annual, During facts, statements I'd the call, found Pursuit.Before may President to will turn the and are Steve, can made starting GES; not during Financial to risk other the materially Officer; that Ingersoll, those Page the like of forward-looking Steve other President our David and Chief to statements. be Barry, cause actual presentation. forward-looking and call quarterly the over call our filed constitute differ I from with concerning of remind you'll be current results the in will with Steve, from which certain Ellen CEO that the hearing who earnings

Steven Moster

delivered expectations what prior substantially results businesses. report happy in seasonally for year period. XXXX our to was call. Pursuit Carrie, to a this solid guidance quarter for GES very in you great our finish our thanks joining and the our and Thanks, exceeded that slower during outperformed to all of our I'm

our set XX return whole, industry delivered destination shy momentum year international leisure the overall. at an a the our year to the continued both travel as target expanded with experiences.GES portfolio X% of just EBITDA points basis of revenue was and for positive with that new strong of full has Pursuit GES growth and records continued our Looking revenue for and EBITDA margin and

of growth our a a and have the Pursuit enter schedule with let's opening EBITDA starting we strong of we show deal demand great extraordinary at GES expect deliver XXXX revenue a optimism for performance XXXX non-annual as and We of strength in get the to our from tailwinds and with and FlyOver robust XXXX experiences again financial very guidance. year.So, review will Chicago, who strong into details, this and Ellen, position

Ellen Ingersoll

$XX.X our fourth increased I'll by quarter $XX.X fourth million. start and on EBITDA Revenue or and with increased year-over-year GES. with before Pursuit items quarter Page Consolidated $XX.X Steve. adjusted healthy Thanks, loss net growth consolidated million both at X results. our other XX.X% million improved

X, attraction Visitation growth XXXX, growth partially strong Our and Canada at on well EBITDA net consolidated and loss million growth strong revenues demand higher stronger and revenue $X.X seasonally on in ticket AV saw XX% attractions the prices. at largest revenue period. Pursuit see year-over-year our in slow to XX.X% increase revenue Sky million both million across destinations of year-over-year or our in was quarter. non-annual December business shows of GES' Page adjusted and with million Attractions effective million. Lagoon X, gain impact million results adjusting fourth XX.X% GES offset quarter sale of our $XX.X as continue When about the a $X.X than revenue across increase $XX.X of basis operating XX.X%. improved we growth by revenue $XX.X by fourth XXXX 'XX, adjusted of delivered delivered XX%, the driven ON particularly and EBITDA million Pursuit.As ticket in GAAP in the growth of sold the the quarter, year-over-year pretax GES as Services, shown as favorable Iceland.As the Viad exclude fourth to Western from XX%. higher during primarily $X.X was on million reflecting an grew Pursuit's fourth gain shown attributable by or Services growth categories Page revenue delivered we or to of for visitors quarter ON of experiences Spiro which $XX.X and XXXX the $XX.X all was loss of

revenue impact strong of fourth by spending delivered of from sale XX% from Exhibitions about was the clients.GES Excluding growth non-annual versus the or new growth and quarter, of existing XX.X%. million driven Spiro's events rate XXXX's ON $XX.X Services, revenue the

continue the to growth Excluding revenue improve. was the Exhibitions' impact and sale ON the sizes rate show non-annual XXXX as XX% of of GES Services, fourth quarter events about versus

globally XXXX. was large Additionally, event that X added Exhibitions in $XX full rotating strong quarter performance a produce COPXX, year the to in selected our nearly GES revenue.Page million during summarizes

million year. attributable on leverage revenue, XX.X% in due consolidated GES' net reflecting at Pursuit and underlying high margin $XX GES Pursuit ON growth than Services grew decreased X.X% Pursuit's million XX.X% Our EBITDA full prior the million A gain year on strong $X.X both adjusted year $XX.X improved of the to adjusted full full on timing from sale increase of $XX.X to performance a the of $XX.X million ON business. operating sale Services reflecting on year-over-year and the the increased primarily in and million or on the non-annual EBITDA revenue. strong Via increase offset the very EBITDA million, a million in adjusted a grew demand. the of or major million more characteristics impact year revenue, revenue income increase $XX $X.X $XX.X in shows.Our

and with partially $XXX.X million, offset reflecting by items, at operating the total available EBITDA, the million excludes on XXXX million. Our our liquidity of higher cash income million stronger by $XX.X quarter, of full million expense. tax year outflows of of $XX.X which and reflecting before approximately $XXX improved cash $X.X million $XXX.X interest $X.X liquidity gain and of expense This credit facility. end comprising is other of from capacity We revolving ended expenditures in that capital down million, third

Our We $XXX.X full call million additional Pursuit. year cash capital on $X.X flow paid color and on outlook operations to David equity.Next, from cover net million preferred Page an the $XX.X million including our on dividends our totaled convertible turning I'll our in XX million, over for CapEx debt before of Pursuit. inflow XXXX of and growth $XX was $XX.X million of at expenditures payments made approximately

XX% XXXX, full $XXX to to year reflecting million million expect adjusted of million $XX $XXX is approximately both the increases from We million, in consolidated be at Pursuit GES. EBITDA range up to $XX XX% to and of which

adjusted the about to we range million of EBITDA mid-single-digit expect million year XX%. year to $XXX Pursuit, full full be revenue on margin $XXX with EBITDA of growth, in For adjusted

million XXXX expect EBITDA adjusted seasonally revenue the range negative adjusted third For of to the margin GES, to in primarily on the to be expected range year $X Pursuit double-digit expect about in $XX during $XX EBITDA compared full $XX.X low of Non-annual with a net the in about million, quarter, million million first X.X%. $XX are quarter. of be EBITDA negative to full $XX year million quarter.For slow we to incremental adjusted negative we first million revenue growth shows to as of contribute

quarter. XXXX adjusted We expect first $XX.X million $XX first the in in the $XX quarter GES' million be of range EBITDA versus to to million

particularly want still of our With quickly the very full shows tax taking I investing at Pursuit. tax the to our to comment in full shareholders range to million capital maximize million cash growth in Pursuit's us This expect Build, the meaningful at year seasonal value million third Buy of also operating further we through while our given growth $XXX our anticipate growth $XX from to are with guidance absent million inflow quarter jurisdictional planning of should on are an we about present the selectively we strategy.For place. to debt is with operating GES' us contribution $XX largest long-term full and $XX of flow, anticipating, an position. opportunity Refresh, EBITDA for we X very reduce $XXX strong level Pursuit million, for which for expenditures expectations and also CapEx year challenging model expense, including growth year, cash to in non-annual

we an the effective full anticipate XX%. tax For to year, of XX% rate

over David, loss on and pretax valuation you. coming quarter, to on anticipated During in benefits way pretax are the and the tax minimal and further Pursuit to business our a insight growth we U.S. into because an the provide at first will our Steve allowance.Now, any tax record David GES. subject expense performance exciting expect losses to

David Barry

Ellen. Thanks,

Pursuit Let's exceptional with record-breaking XX. dive Pursuit's finished with XXXX starting our the at results. world-class Pursuit produced momentum. attractions, was for we robust strong for Page demand unforgettable attractions inspiring an in Starting with on year experiences and year

significant Collection approximately independent year experienced cost market was that ticket the $XX Sky also The revenue and our have visitation visitation upcoming newer continued which this in with attractions advanced closures fourth the a the grew and significant and attractions we're the growth in non-refundable recovered that which up seeing our facilities our all our continuing travelers, we're of over full Lagoon, to Golden Thankfully, and strong from with Iceland. revenue guests XX% safe. competitor has increases experiences value maximization driven its initiatives.Our of demand delivery compelling in in quarter Sky offset Western Skybridge, volume XXXX And XX% people FlyOver in to had commitments pricing Banff fully experiences, of our guest and Iceland from our guests. not and to Las unharmed remarkable years; totaling powerful Canada the travelers Pursuit benefited its of recent was launched maximize $XXX international Jasper revenue to XXXX. strength Lagoon proposition most ticket delivered and Our by are season.I'm notable group focus particularly temporary visitation, XXXX. for million, with million independent were from in happy impressive helped increases about Vegas about And yet. competitors' helped on this increases

to demand. did increasing partners staffing make to did Switching next situation, team on responding hours to at revenue increases up the to one-of-a-kind hotels drove job room Sky operating to inventory $XX Lagoon work terrific and both the lodging the travel the grew and Lagoon a approximately year full quality ADR increased lodges, from to operating available our and increased helped Sky Our we to XX, meet And awareness in experience.All highlight of million right. Page over occupancy. XX% and

shown to report rooms Park excludes to was Forest ADRs ahead. Hotel by room of for our the our XXXX, time I'm demand room Paddle encouraging This lodging the which XXXX performance and year-over-year I'm revenue. in contributor all Page additional books year-over-year. Forest and Park strong improvements success, last Alpine Canada Alpine pleased pacing our strong that year in and the was Hotel.As on revenue added optimistic primarily early RevPAR, same-store is with about X% Western trend XX, in on the ahead Our this U.S. we booking Ridge driven and properties. growth is of season of for very up both Canadian our delivered increased geographies that the a

at Page trajectory. that our look revenue and on you you'll growth when can overall overall you see revenue So, see growth, XX,

with $XXX million the beverage about locations' our of we our delivered combined of year, in integrated and attractions new experiences $XX food strong trends retail and leisure backdrop and and growth revenue performance as million travel on perennial the favorable substantial demand and growth full of XX% experiences of prioritization well ahead. hotels increased set spend our barriers as the the for set entry For strong to thrilled with our revenue record discretionary XXXX.The we're and from and a guest

just let's talk -- my about a or future focus So, like XXXX. share the I'd start little and bit sharing for to by

our expect to Ensuring the right we they have strategy. the across first, the have in with be tools people successful. to And people. need leaders roles mindset.Second, we Pursuit owner's an right So

the focused Do team, wherever while we that seek things control a and team the execution, waste we're on Relentlessly eliminating guest in longer rate, efficiency improve driving controllable. utilization, leadership And 'XX and member ensure satisfaction. to can. and over As will success that right opportunities the both term. thirdly,

trade from revenue power digits mid-single-digit year-over-year visitation low maximization does both travel meaningful in extraordinary demand, expect will mid-single and anticipate change in double-digit RevPAR list and same-store with attraction our overall rate grow XXXX. ticket team, from for increase anticipate outlook growth in strong guest abroad we're increased digits. Asian to at bucket visitation This pricing effective same-store and We visitation With a and dedicated experiences revenue mid-single visitation. prices.We planning not any home up

our looking Chicago's In location X. Navy also attractions, guests addition FlyOver Pier. we're at newest welcoming was same-store on growth March Chicago our open FlyOver across to forward to set to to

have ticketing to positioned be the an of opportunity attractions, Navy system ideal work drive powerful grouping We shared location well to together a world-class a Pier Pier other attractions glad and XXXX, visitation in really one Navy destination. we're a is With as and to strong right. and there.All with

expansion. So, margin

a take increased our by our visitation at primarily driven discuss margin attractions. adjusted we'll on XX, expansion, you which look Page If high-margin EBITDA is

bottom line. from flow Our attractions every at for high our rate a volume incremental revenue guest to through are built and

able it extraordinary pandemic-related and easing of were place to Additionally, put with measures supply to in ratchet we address chain-related the pressures, back challenges. the staffing

margin our on drive EBITDA focus of unchanged. gearing the and XXX points achieve visitation, triple strategy compared of the improvement results Buy year, our improved reflects our remarkable a up higher our and XXXX, strategy. another XX% record-breaking a with XXXX XXXX This expand collection journey remains EBITDA growth through approximately management margin to Build, on We're experiences growth levels. revenue of adjusted labor margin Refresh, powerful management. year very to to careful For full XXXX.In expense year our adjusted for is basis to Pursuit by strength attraction world-class expected EBITDA our we of about and our expect and full further adjusted as target

our for I and We're continued world for well as our big at for remarks, experiences. and as newest investments to Our investment, in you XXXX members from smaller want guests other thank beyond.So, a to and well well conclude instrumented growth will a Chicago creating build Steve, memories benefit staff. and Pursuit team across strong-performing to I XXXX, results remarkable FlyOver as just refresh congratulations experiences the XXXX for our existing positioned just you. my say back the record lasting and

Steven Moster

Thanks, David.

we impressed revenue and where year well negatively and at entered accomplished Now hovering million fully and and been knowing of underlying smaller continued on Exhibitions of growth consecutive switching our we I'm of profitability levels had were corporate margin revenue driven across the had had by from what XXXX X international I focus gains Services even in back impacted of over pre-pandemic fantastic we've be about XX% returned. by business. as the GES, a improving growth where non-annual exhibiting XXXX, $XX our ago, to in as as year also just X at When our events.Show look GES. timing of would ON clients more We quarters not their sale sizes over companies inhibitors and for proud the

the growth offset our elsewhere. Spiro However, we gave were part that and could and spending believe of we seeing exhibitions from to which headwinds revenue reason us corporate stronger pricing clients, with

of and our revenue full pre-pandemic the same-show drivers revenue those team to share the Page Exhibitions have and growth both trends on XX of delivered recovery million the GES' $XXX.X service we major grow business. steadily impressive of When of show effort to pricing, XXXX. or year-over-year levels, on revenue revenue was floor, able improved. offset have Services million and Thanks metric. exclude Exhibitions X% non-annual and to deliver some size we've ON GES revenue Exhibitions of and shown both spend XX, XX% same-show adjusting an XXXX fully at headwinds grew GES Same-show seen improving illustrates great seen to key growth Spiro.Page our important versus strong the shows, with in in impact versus our or great $XX.X As

performance footage non-annual square as meaningful revenue as isn't same-show Exhibitions However, growth XX% remains same-show We event margin level. further recover.But see and this continue sizes by for a driven major about success to below and pre-pandemic all events. GES opportunity

growth. of the serviced UAE, key fabric service this dedication prime with impact XXXX been the and structures, puts again and position plants Climate America once Conference, about important reusable in significantly event. Canada. role sustainable this Page A Nations which success event's during we event is in XX, Change a market GES' has sustainability, well market revenue marketing growing.On steady a happy few let's dynamics can improving as our and contributed to with winning to of as selected capabilities including brands Our to United I'm growth EMEA to see position pavilion produce to underlying forecasted new means conference agency GES for position of new with a the produced and is XXXX, early pivotal in to in Spiro of offering globally in grow well-established aligning we importance the us proud strength in powerful overall are is you And the fourth client is and growth a sustainable in team early the end-to-end one XX. a of has talk experiential with we strong as and during GES live We as to a within solutions carpet. of of experiential new significantly. the Since total a marketing to experienced customers COPXX, COPXX Spiro see trade client have wins to leadership with connect events. testament by seamless example the North in discrete win and X the very played range edition marketing way. XXXX Spiro COPXX.Now, at trajectory. and additional quarter. leading recyclable Dubai services This XXXX. and and wins furniture continue Spiro positioned to GES essential that graphics, wins a a Page on The management the reach, and fragmented to commitment client show as continue during global the launching since in industry large is that capability well fourth Experiential and quarter, And Spiro's With XX agencies reached XXXX. underlying

As to consolidated grew Services when highlighted remove the XX% and non-annual of earlier, XXXX. by events, impact I GES' major adjusting ON in revenue

grew U.S. was COPXX. that increased growth year. ability events revenue our GES prior and XX%, sizes compared same-show For Exhibitions growth revenue XX% and the driven rate Notably, and new XX% by to to win event Exhibitions, about produce same-show like about

For Spiro, for new adjusted clients success rate is our approaching clients.Participation shows driven existing at and growing growth XX%, the each was demand trade trade services show from levels. in quarter about the and winning XXXX revenue by to conferences improve continue and

give Additionally, corporate These experiential strong growth of to as trends, their through marketing finding stronger with along target us confidence favorable budgets audiences a XXXX are show in in non-annual year XXXX. are marketers in XXXX, corporate another for outlook engage levels schedule marketing. exceeding our new ways with much

is GES X% As a talked higher in margin and I've strength we're about continued fluctuated we take deliver to high strong EBITDA the EBITDA we're on X.X% performing SG&A map we're in between results low past drive show momentum closing, each major proof of Ellen heading Page GES' we Across transform high million at well expect note about dividend.Over from and margin in strong efficiency with in focus mentioned thrilled adjusted our the the few the thank adjusted for to our cost margin lean extraordinary and up gains, and $XX very year. with point X.X% productivity our With for range.Next, margin let's earlier, non-annual committed about our we're we'll returns strong seeing. lot for have revenue had be a XXXX EBITDA strong see in and experiences XXXX. a XXXX, lean slow to have year a GES, our approximately we initiatives a across robust and our eliminated our better and which shows. adjusted GES, GES' look past strategy happy our future revenue a a seeing structure of forward. well non-annual as double-digit an for enhance We're road culture.In Achieving finished year efforts a EBITDA Viad.And should that, to paying expansion. as deliver to of multiyear years, remain our the X% improvement full our and at years going shareholders. we've with growth growth-oriented with tremendous initiatives to an with and through into happy that on 'XX shows support with discuss a margins want the performance questions. to schedule margin XX on incremental we are efforts adjusted Historically, margin to this dedicated I'm year our create expect was as winning in as businesses to us. to very hard-working I even the shareholders very level what non-annual ahead employees their call with in bright continued open We

Steven Moster

question Thank first Maher comes Instructions] Riley. Bryan Our of from you. [Operator B. today

Bryan Maher

of mean, all, wanted very and you that to thanks getting deck, compiling helpful, compliment very, I just I for that the slide and on enhanced First out.

just list, the for are to what your because the shows comments bigger just non-annual you XXXX, and questions, shows, comes prepared maybe my you start just and are added I X could with -- in? remind did to those what X don't quarters or can it bigger in I this those ones audience As think we the exactly

Steven Moster

the it's for good The The thanks largest and MINExpo. it's in Farnborough a quarter be Manufacturing third third question. as International the XXXX Yes. the U.K. Airshow in Technology the And larger ones, happened in well then would Show ones the IMTS, larger as question, Bryan,

Bryan Maher

third in the correct? quarter, All

Steven Moster

That's correct.

Bryan Maher

for to Kind maybe on moving David. of Iceland quick, real

there? down much Lagoon long the you this did anything, shutting prepared was if for? talked benefit? actually Maybe I comments, how benefited, you how Blue activity Lagoon get give kind down more you Like about was I close from activity. little of And shut Blue Can of property? volcanic because how us think guess, to how color your in your a the

David Barry

first. I'll answer the last question

So, at us to proximity no all.

on So had Lagoon its no reclose, several to later weeks the then had a of and and closure reclose November reopen Xth risk to reopen there. and was then first And times. able Blue few

So, it's a of Sky long that it. XX-year exposed I have think to that history. Lagoon been lot it's might folks Blue beneficial the a perhaps sense XX, has in not visited Lagoon

So, to we you to the from beneficial pleased lots were of the host benefit and want misfortune, host just folks to to guests for time never able someone over else's to be from guests just the for first all brand us but expose it and world. was

Bryan Maher

maybe sticking for And Pursuit with minute. a

I EBITDA margins? as just other for than margins Was And than that the thinking margins lift end visitation well? helped bps in anything you those particular higher the came activity-wise, think better EBITDA were XQ, we about over in maybe it's that would on there visitation XXX that XQ potentially your did better line. with in, expectation

David Barry

Yes.

basis for you look upwards. XXX think when that and on articulated points move drives margin, generally, terrific last at improvement what call, making that the year we us, I it, so as

were drops bottom a hit the you That's volumes, certain segment things, of to attraction within It's business. with And generally of the our progress. to So, overall favorable. but we a that many profitable very visitation line. is pleased combination majority visitation as

the And the in of improve. little still with a we've given And overall general teams early view great Pursuit So, we're into to a I quarter. year you We're very and the management just think then efforts February. into January encouraged just just out coming across by that.

judgment reserve that now. I'll So, on for

Bryan Maher

the on FlyOver you give not, came can you it's can on of material Toronto? there future Chicago time, is also on side any If standpoint from whether us online. share just you on potential -- would not just moving And is coming the or the are for And now? coin, just anything in what's assume on the last can hopefully, of outside growth at in maybe me. it from of But of them us other kind looking budget. update works, books update I in that. an projects that our

David Barry

first budget. a speak Chicago well is time its within on to and I'll in So, project

done and that. of between The in The some encouraged the great we're site Toronto has job of spirit forth Chicago. very So, Toronto. team mired and with a is phenomenal. capturing remains back itself the the product city

So, point. speculate news really future at the there. we about there no real until get this can't And

stabilizing the focus business, we're then now, right getting that. open, and the Chicago on we'll after future just So

Operator

Kartik of Our Research. comes from question Mehta next Northcoast

Kartik Mehta

Steve, just wondering as or noticing of terms speak with XXXX you what events for I'm for your budgets trade prepare corporate customers, they shows. in as either you're

Steven Moster

great it's Yes, question, a Kartik.

you year we're within events into kind are see X people know, this will seeing this now, months meaning we as -- they the things happen happen, booking later for So, industry, right and really of X that to before space even XXXX.

is continue revenue coming we the footage same-show of the they significant above continued and of So, visibility 'XX, the has course we saw still to are trade a expect made during back. kind progress we XXXX. had have above the XXXX, 'XX. through on that square in basis, which The that seeing shows trend that we're through decent on the and exhibition side, They're

corporate very levels that the we've to solidly what been On we really pleased and as continue above XXXX seen are budgets side, in we've in 'XX well. expect with that marketing coming

You don't we side really feel have X marketer into have good the as about and but the of we visibility much on worth kind going you months' have 'XX. of corporate visibility, position

Kartik Mehta

XXXX? much experiences then attractions do in you a to anticipate And are much anticipating? I'm on how benefit side, How new Pursuit of you contribution just wondering the the

David Barry

you variety that a through of I rate. a would increased We're 'XX, we're got of going that look, for continued of see if them attractions mean, growth looking growth take answer I continue to a healthy is a growth. and at period We to visitations. good had we've all

position we numbers good those perform to as move expect to a we're We forward. in continue and

Operator

of Tyler Our Batory comes Oppenheimer. next from question

Tyler Batory

First me footage, about sizes. as expectations a question few of of The well, on for XXXX? for there's calls Steve. side What lot things, in show past GES revenue the are discussion square your same-store

think you to And able forward a Do grow topics? it way on the this revenue those or topics. question, on what GES. in thoughts perhaps reason third price you've trying you a here? get Just in So, from a to even on been are then grow has those can going your price been hold to of your part of sense your views good latest

Steven Moster

Yes.

growth. in events, I for by year, next think, you in partially same-show would drivers driven as about by as one growth the that on to we've prior talked the partially mid-single-digit I increase is, so calls. square range, the and of be driven those pricing of expect mentioned, footage And

continuation second obviously behind the we've up place Spiro is with We're during a what definitely in in of roughly last and Spiro. 'XX, clients in are seen is a growth $XX incremental for in our 'XX. really non-annual element of us just and and 'XX new occur is The occur events the that did I that momentum the picked then feel will will million growth which overall one, course large of pleased the there's that that the of And 'XX. growth revenue we've help that of it's taking not

see this X buckets shaking them kind are and for out of year. kind I where those the of So,

Tyler Batory

with Asia? implied terms what's guide, tour in long-haul in from travel trade Switching the gear of Pursuit, Are conversations to any visitation? you of having terms groups coming revenue

David Barry

to the We Tyler, parts able do, certainly one a about demand certain bit as longer other of in the remarks that in have take countries been of world are. talked we've little And the recover. is Asia coming as things from to to it we

to we as look a return, you you if will we the multiyear night do be going that's growth to the been room growth, at So, able China it And basically but we've specifically, believe at look visitation substitute. think returns return. and

group meaningful and change rebuilding out consistent they're Asia their from channels really Canada. the no and anticipated demand travel, remains of and rebuilding So, they're into country

to the good country. all the try the so over And is not thing we from too And world. have news concentrate demand in one much we other

stuck If economy a not country. country's waiting from for stuck. So, you're that you're business not falters,

'XX and So, strong. demand quite look we forward out I 'XX, can that allocations tell the spread demand into in to in remains you tend

Tyler Batory

outlook margin strong. to terms the Do that the terms you Pursuit. of of might on when the that back sight happen? that doable? of any And about past, in margin low-XXs still of EBITDA In think something have you've there, you is in Is talked then growth in XXXX in getting really line is terms quite

David Barry

Yes.

take So, deck, look our for if in mean, margin you Page I to the track view and on a return at can margin. you 'XX. in XX see a XX% we're quite to confident

We feel basis hard about but with that track the And we're we're so it. pleased hard 'XX, on working for XXX we're increase confident and working and in 'XX. direction point in

Tyler Batory

question, cash last terms My of here. flow in

the FlyOver. I'm side all CapEx [indiscernible] that's assuming of CapEx, things, growth On related to

it. So, quite then I wanted year-over-year. higher moving that's just to cash free the be flow to that, right about sure be And going thinking way be is to

remarks, leaning prepared the debt. in more out you think I perhaps called into reducing

So, forward. I of the about that I that that and wanted thinking going be you're to how to kind sure leverage heard correct, opportunities reduce

Ellen Ingersoll

Yes, hear that you did right.

of handful a FlyOver is million $X about and though, CapEx, growth Chicago after smaller that. projects the Regarding

cash our be As will big flow flow, a quarter. cash far obviously as QX

will flow add some but will projects pay it in and off to debt Pursuit. pay in we have cash to probably excess QX, We at our do growth down QX, likely revolver selective some

Operator

Fuhrman of question Craig-Hallum. The Alex is next from

Alex Fuhrman

strong I like It guiding would really revenue a Pursuit on be growth of on Congratulations very EBITDA the guess fairly substantial side but first on question in modest XXXX, my year. you're growth. mid-single-digit seems things. to

there's did XXX% just there's relative the is expectation increases you going come like more would to Is seems a relatively increased from your EBITDA little So, flow-through growth. where a XXXX numbers in where a hear lot what cost. love to attractions just a that growth kind rate so of associated like in of kind or I amount revenue of be not just lot of revenue rough to bit of on most up something about is to small not expenses incremental to revenue on here, approximately XXXX. a much earnings flow-through of how to going

David Barry

increases profitability is our with visitation So, And when strong. meaningfully attraction scale volume.

with The an of more the just to the where things costs experiences combination as areas of for ticket execution you can use and experience. cost some increases. bottom we from experimenting look for terms more it's profitability manage. all experience of in But the our groceries We're and And very that the So, can better a example quite and to like which can effective. terms of margin we and a on technology we're make Chicago revenue purchasing, board to we all work Every deliver on focused and business then are better to provide fixed control continue flows consistent airline driving in ticket and we across in high improvements rate just as other there how greater charge digital that experience got dollar line. kiosks at everyday And improvements, we items efficient it. we tickets and more We've for remain able better, side in incremental fixed. things. a greater and make

keep to So us working then we that's what and gets just XX% hard.

Alex Fuhrman

us some Can year, for FlyOver of the spending? growth CapEx to see and give I of we from for rest you that that when $XX is the of what then could million of amount any the you're is benefit And sense imagine opening. that Chicago a this deploying start of that

David Barry

you jump ahead? Ellen you do Or like let I'll Yes, also to go Ellen, want me this, take on it? would to in

Ellen Ingersoll

you No. reiterate Go projects on. was $X smaller the about the is I million you $XX ahead, and to going David. then of million, Chicago, speak have going that other to can just

David Barry

day. rated with the We experience business, did a guest And very experienced us something highly a it Lake Lake. we standpoint. Maligne tour the peak of fits consistently visited around of you've well Alex, from Yes. very when is great the a Maligne in sell And you and out successful example that

So, additional to simple something Maligne to for boat enabled as the an demand. fleet as Lake boat respond ordering

better the expensive today is less Sky Lagoon, but underway By and a example on is eliminate scrub at of the And charge facility. really Lagoon, a et plunge, so size experience products, is Lagoon ritual cetera, by salt well and that limited and is allows fabrication that cold provide good expanding and Sky also the where summer track which delivery within the at for premium us time that for experience, to sauna price. it itself Sky facility season.Another

where X things improving we're the just board, are initiatives. we then better at across experience can Pursuit And that things there's a those and the myriad So, all other across guest looking company. internal way of make across all the

Alex Fuhrman

got shows, level? level can it's just you of in us a we're in for point, target could guiding pretty that I you've think high to into XXXX, the on do least or when for the mean, you to specific if Without if the bit of revenue meaningful a margin give nearest lose side years sense maintain I at it the mean, even above guidance your and EBITDA -- X% reasonable then getting basically past? to in it that percentage you're a looks margins years, hit margin ask And you the referred I GES you headwind early rounding to that looks year. like you business. one these some like at odd-numbered little a you've EBITDA assuming X.X% non-annual future X% this

Steven Moster

XXXX year. the next comes this show high does think at in traditionally what footage we comes pretty accomplish meaning question, back keep mind great with revenue comes And It us for and to given lower a back, a thing it yes, flow as But is Alex. year. it's able revenue pleased were back, square to non-annual through. same-show I the in very a we rotation that It's benefit are

Additionally, has the on laser-focused really lean projects the finding business. team throughout been

in the those and talked that have and the that we've 'XX. play we years 'XX, tackle X.X about as or of 'XX this had kind the so, will into well. So, benefit we as over last And obviously, we're really results seeing in a benefit of projects new

expectation that or X% go that where there we maintain can my rotation. years a isn't as into show we it's big higher odd So,

Operator

a Riley. Maher from And we Bryan have follow-up of B.

Bryan Maher

you've come of of learned a following loaded This up as you to, the and with you're kind more go business GES at cetera, and questions on if before what GES on X both question, and have because Alex's at seeing technology side. kind from to maybe the to could X side series kind I about And aspirationally next you but answer Steve, the of don't may of and want the that. you think, answered what of years the Pursuit question where and you et as Pursuit, it kind on don't really margins think across

Steven Moster

what for let going about he David sees talk Yes, I'll forward Pursuit.

David Barry

Yes.

improving for the that a margin and a same can term. at jump soon it at coming to over XX% time. it's allows to the also to this to business a then business. we believe long high and continue the really on Our us to take powerful in maintain goal almost going can is level and things get at It great the as But 'XX we as to time, -- year is we XX%, margin some keep sustainable and experiences XX% be XX%, sustain

Operator

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

Steven Moster

globe for so Lydia, in shareholders We support hard-working giving next around you quarter. to their forward our another Thanks, in -- and much. look the and Viad. the members thanks again you update to for our team Thank

Operator

today's joining. concludes Thank This for call. you

disconnect your You lines. may now

Viad (VVI) 8 Feb 242023 Q4 Earnings call transcript