|
|
|
(State or other jurisdiction
of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
||
|
|
|
||
|
|
Exhibit
Number
|
Description
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
Viad Corp
|
||
(Registrant)
|
||
February 9, 2023
|
By:
|
/s/ Leslie S. Striedel
|
Leslie S. Striedel
|
||
Chief Accounting Officer
|
•
|
Pursuit delivered record revenue and GES outperformed expectations in 2022
|
•
|
Delivered strong 2022 results through strategic focus on scaling Pursuit and improving GES’ profitability
|
•
|
Growth expected to continue in 2023 with fewer COVID restrictions on international travel and acceleration of new Pursuit experiences
|
Three months ended December 31,
|
Year ended December 31,
|
|||||||||||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
||||||||||||||||||
Revenue
|
$
|
248.0
|
$
|
183.6
|
$
|
64.5
|
$
|
1,127.3
|
$
|
507.3
|
$
|
620.0
|
||||||||||||
Net Income (Loss) Attributable to Viad**
|
(5.7
|
)
|
(22.5
|
)
|
16.8
|
23.2
|
(92.7
|
)
|
115.9
|
|||||||||||||||
Net Income (Loss) Before Other Items*
|
(25.5
|
)
|
(22.5
|
)
|
(3.0
|
)
|
12.3
|
(81.6
|
)
|
93.9
|
||||||||||||||
Consolidated Adjusted EBITDA*
|
(2.0
|
)
|
(3.8
|
)
|
1.8
|
116.1
|
1.3
|
114.8
|
•
|
Revenue increased by $64.5 million for the quarter and $620.0 million for the full year driven by the continued recovery of live event activity and leisure travel.
|
•
|
Net loss attributable to Viad for the fourth quarter improved by $16.8 million primarily as a result of a gain on the sale of a non-core business. Full year net income attributable to Viad increased
by $115.9 million primarily due to higher revenue.
|
•
|
Consolidated adjusted EBITDA* improved by $1.8 million for the quarter and $114.8 million for the full year, in-line with our prior guidance.
|
Three months ended December 31,
|
Year ended December 31,
|
|||||||||||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Same Store
|
$
|
24.2
|
$
|
18.3
|
$
|
5.9
|
$
|
256.1
|
$
|
171.4
|
$
|
84.7
|
||||||||||||
New Experiences**
|
10.0
|
5.1
|
4.8
|
43.2
|
15.6
|
27.6
|
||||||||||||||||||
Total Pursuit
|
$
|
34.1
|
$
|
23.4
|
$
|
10.8
|
$
|
299.3
|
$
|
187.0
|
$
|
112.3
|
||||||||||||
Adjusted EBITDA*
|
||||||||||||||||||||||||
Same Store
|
$
|
(12.0
|
)
|
$
|
(9.0
|
)
|
$
|
(3.0
|
)
|
$
|
61.0
|
$
|
39.4
|
$
|
21.6
|
|||||||||
New Experiences**
|
0.8
|
(0.9
|
)
|
1.6
|
6.9
|
3.3
|
3.6
|
|||||||||||||||||
Total Pursuit
|
$
|
(11.3
|
)
|
$
|
(9.9
|
)
|
$
|
(1.4
|
)
|
$
|
67.9
|
$
|
42.7
|
$
|
25.3
|
|||||||||
•
|
Revenue increased $10.8 million (46%) from the 2021 fourth quarter.
|
o
|
Same-store revenue from experiences that were owned and open prior to 2021 increased $5.9 million primarily due to stronger visitation at our year-round Canadian experiences, which were impacted in
2021 by border restrictions.
|
o
|
Revenue from new experiences opened or acquired from 2021 forward increased $4.8 million, reflecting the continued ramping of Sky Lagoon and FlyOver Las Vegas as well as the addition of Forest Park
Alpine Hotel.
|
•
|
Adjusted EBITDA decreased by $1.4 million from the 2021 fourth quarter primarily due to higher expenses during the seasonally slow quarter, partially offset by the increase in revenue.
|
Three months ended December 31,
|
Year ended December 31,
|
|||||||||||||||||||||||
(in millions)
|
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Spiro
|
$
|
72.1
|
$
|
54.7
|
$
|
17.4
|
$
|
277.6
|
$
|
116.6
|
$
|
161.1
|
||||||||||||
GES Exhibitions
|
143.6
|
108.2
|
35.4
|
557.9
|
209.5
|
348.4
|
||||||||||||||||||
Inter-segment Eliminations
|
(1.8
|
)
|
(2.7
|
)
|
0.9
|
(7.5
|
)
|
(5.8
|
)
|
(1.7
|
)
|
|||||||||||||
Total GES
|
$
|
213.9
|
$
|
160.2
|
$
|
53.7
|
$
|
828.0
|
$
|
320.3
|
$
|
507.7
|
||||||||||||
Adjusted EBITDA*
|
||||||||||||||||||||||||
Spiro
|
$
|
5.8
|
$
|
6.4
|
$
|
(0.6
|
)
|
$
|
27.0
|
$
|
(4.3
|
)
|
$
|
31.3
|
||||||||||
GES Exhibitions
|
6.9
|
3.2
|
3.7
|
34.3
|
(26.1
|
)
|
60.4
|
|||||||||||||||||
Total GES
|
$
|
12.7
|
$
|
9.6
|
$
|
3.1
|
$
|
61.3
|
$
|
(30.4
|
)
|
$
|
91.6
|
|||||||||||
•
|
Revenue increased $53.7 million (34%) from the 2021 fourth quarter primarily driven by increased live event activity at both GES Exhibitions and Spiro.
|
•
|
Adjusted EBITDA increased by $3.1 million from the 2021 fourth quarter primarily due to higher revenue, offset in part by higher costs to support increased business activity.
|
(in millions)
|
First Quarter
|
Full Year
|
Key Assumptions
|
||||
Pursuit
|
|||||||
Revenue
|
$28 to $32
|
Up ~10% to 15%
|
• |
Expect revenue growth in 2023 will be driven by:
|
|||
vs. $23.8 in 2022 |
vs. $299.3 in 2022 |
o |
Lifting of all COVID restrictions at the Canadian border
|
||||
o |
Acceleration of new experiences
|
||||||
o |
Ongoing focus on improving the guest experience
|
||||||
Adjusted EBITDA
|
($14) to ($11)
vs. ($11.5) in 2022
|
$85 to $95
vs. $67.9 in 2022
|
• |
Anticipate FY margin expansion as visitation increases, the performance of newer experiences improves, and pandemic-era cost
pressures ease
|
|||
(in millions) |
First Quarter |
Full Year |
Key Assumptions |
||||
GES |
|||||||
Revenue |
$195 to $215
vs. $153.6 in 2022
|
Down ~5%
vs. $828.0 in 2022
|
• | Expect GES will mostly offset the
headwinds of negative show rotation revenue ($30M) and the sale of ON Services ($50M) in 2023 |
|||
|
|
o |
Exhibitions same show revenue expected to
remain at ~90% of 2019 levels |
||||
o |
Spiro clients’ marketing spend expected to be
similar to 2022, plus new client wins |
||||||
Adjusted EBITDA |
$8 to $11
vs. $2.7 in 2022
|
$48 to $58
vs. $61.3 in 2022
|
• |
We intend to continue investing in Spiro to fuel growth in 2023 and beyond
by expanding capabilities and adding new services |
|||
•
|
general economic uncertainty in key global markets and a worsening of global economic conditions;
|
•
|
travel industry disruptions;
|
•
|
seasonality of our businesses;
|
•
|
the impact of the COVID-19 pandemic on our financial condition, liquidity, and cash flow;
|
•
|
our ability to anticipate and adjust for the impact of the COVID-19 pandemic on our businesses;
|
•
|
unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals for such projects;
|
•
|
our exposure to labor shortages, turnover, and labor cost increases;
|
•
|
the importance of key members of our account teams to our business relationships;
|
•
|
our ability to manage our business and continue our growth if we lose any of our key personnel;
|
•
|
the competitive nature of the industries in which we operate;
|
•
|
our dependence on large exhibition event clients;
|
•
|
adverse effects of show rotation on our periodic results and operating margins;
|
•
|
transportation disruptions and increases in transportation costs;
|
•
|
natural disasters, weather conditions, accidents, and other catastrophic events;
|
•
|
our exposure to labor cost increases and work stoppages related to unionized employees;
|
•
|
our multi-employer pension plan funding obligations;
|
•
|
our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;
|
•
|
our exposure to cybersecurity attacks and threats;
|
•
|
our exposure to currency exchange rate fluctuations;
|
•
|
liabilities relating to prior and discontinued operations; and
|
•
|
compliance with laws governing the storage, collection, handling, and transfer of personal data and our exposure to legal claims and fines for data breaches or improper handling of
such data.
|
VIAD CORP AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||
TABLE ONE - QUARTERLY AND FULL YEAR RESULTS
|
||||||||||||||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||||||||||||||
Three months ended December 31,
|
Year ended December 31,
|
|||||||||||||||||||||||||||||||
(in thousands, except per share data)
|
2022
|
2021
|
$ Change
|
% Change
|
2022
|
2021
|
$ Change
|
% Change
|
||||||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||||||||||
Pursuit
|
$
|
34,148
|
$
|
23,390
|
$
|
10,758
|
46.0
|
%
|
299,327
|
187,048
|
112,279
|
60.0
|
%
|
|||||||||||||||||||
GES:
|
||||||||||||||||||||||||||||||||
Spiro
|
72,123
|
54,718
|
17,405
|
31.8
|
%
|
$
|
277,641
|
$
|
116,587
|
$
|
161,054
|
** |
|
|||||||||||||||||||
GES Exhibitions
|
143,577
|
108,182
|
35,395
|
32.7
|
%
|
557,880
|
209,529
|
348,351
|
** |
|
||||||||||||||||||||||
Inter-segment eliminations
|
(1,821
|
)
|
(2,717
|
)
|
896
|
33.0
|
%
|
(7,537
|
)
|
(5,824
|
)
|
(1,713
|
)
|
-29.4
|
%
|
|||||||||||||||||
Total GES
|
213,879
|
160,183
|
53,696
|
33.5
|
%
|
$
|
827,984
|
$
|
320,292
|
$
|
507,692
|
** |
|
|||||||||||||||||||
Total revenue
|
$
|
248,027
|
$
|
183,573
|
$
|
64,454
|
35.1
|
%
|
$
|
1,127,311
|
$
|
507,340
|
$
|
619,971
|
** |
|
||||||||||||||||
Segment operating income (loss)
|
||||||||||||||||||||||||||||||||
Pursuit
|
$
|
(20,091
|
)
|
$
|
(18,574
|
)
|
(1,517
|
)
|
-8.2
|
%
|
24,031
|
4,609
|
19,422
|
** |
|
|||||||||||||||||
GES:
|
||||||||||||||||||||||||||||||||
Spiro
|
4,805
|
5,223
|
(418
|
)
|
-8.0
|
%
|
23,133
|
(9,556
|
)
|
$
|
32,689
|
** |
|
|||||||||||||||||||
GES Exhibitions
|
3,992
|
(534
|
)
|
4,526
|
** |
|
21,780
|
(42,055
|
)
|
63,835
|
** |
|
||||||||||||||||||||
Total GES
|
8,797
|
4,689
|
4,108
|
87.6
|
%
|
44,913
|
(51,611
|
)
|
96,524
|
** |
|
|||||||||||||||||||||
Segment operating income (loss)
|
$
|
(11,294
|
)
|
$
|
(13,885
|
)
|
$
|
2,591
|
18.7
|
%
|
$
|
68,944
|
$
|
(47,002
|
)
|
$
|
115,946
|
** |
|
|||||||||||||
Corporate eliminations
|
16
|
18
|
(2
|
)
|
-11.1
|
%
|
67
|
70
|
(3
|
)
|
-4.3
|
%
|
||||||||||||||||||||
Corporate activities (Note A)
|
(3,537
|
)
|
(3,585
|
)
|
48
|
1.3
|
%
|
(13,418
|
)
|
(11,689
|
)
|
(1,729
|
)
|
-14.8
|
%
|
|||||||||||||||||
Gain on sale of ON Services (Note B)
|
19,637
|
-
|
19,637
|
** |
|
19,637
|
-
|
19,637
|
** |
|
||||||||||||||||||||||
Restructuring (charges) recoveries (Note C)
|
408
|
(267
|
)
|
675
|
** |
|
(3,059
|
)
|
(6,066
|
)
|
3,007
|
49.6
|
%
|
|||||||||||||||||||
Impairment charges
|
-
|
-
|
-
|
** |
|
(583
|
)
|
-
|
(583
|
)
|
** |
|
||||||||||||||||||||
Other expense
|
(547
|
)
|
(507
|
)
|
(40
|
)
|
-7.9
|
%
|
(2,077
|
)
|
(2,070
|
)
|
(7
|
)
|
-0.3
|
%
|
||||||||||||||||
Net interest expense (Note D)
|
(11,001
|
)
|
(8,156
|
)
|
(2,845
|
)
|
-34.9
|
%
|
(34,891
|
)
|
(28,324
|
)
|
(6,567
|
)
|
-23.2
|
%
|
||||||||||||||||
Income (loss) from continuing operations before income taxes
|
(6,318
|
)
|
(26,382
|
)
|
20,064
|
76.1
|
%
|
34,620
|
(95,081
|
)
|
129,701
|
** |
|
|||||||||||||||||||
Income tax (expense) benefit (Note E)
|
(386
|
)
|
1,906
|
(2,292
|
)
|
** |
|
(9,973
|
)
|
1,788
|
(11,761
|
)
|
** |
|
||||||||||||||||||
Income (loss) from continuing operations
|
(6,704
|
)
|
(24,476
|
)
|
17,772
|
72.6
|
%
|
24,647
|
(93,293
|
)
|
117,940
|
** |
|
|||||||||||||||||||
Income (loss) from discontinued operations
|
(137
|
)
|
24
|
(161
|
)
|
** |
|
148
|
558
|
(410
|
)
|
-73.5
|
%
|
|||||||||||||||||||
Net income (loss)
|
(6,841
|
)
|
(24,452
|
)
|
17,611
|
72.0
|
%
|
24,795
|
(92,735
|
)
|
117,530
|
** |
|
|||||||||||||||||||
Net (income) loss attributable to noncontrolling interest
|
708
|
1,363
|
(655
|
)
|
-48.1
|
%
|
(2,323
|
)
|
(1,686
|
)
|
(637
|
)
|
-37.8
|
%
|
||||||||||||||||||
Net loss attributable to redeemable noncontrolling interest
|
394
|
545
|
(151
|
)
|
-27.7
|
%
|
748
|
1,766
|
(1,018
|
)
|
-57.6
|
%
|
||||||||||||||||||||
Net income (loss) attributable to Viad
|
$
|
(5,739
|
)
|
$
|
(22,544
|
)
|
$
|
16,805
|
74.5
|
%
|
$
|
23,220
|
$
|
(92,655
|
)
|
$
|
115,875
|
** |
|
|||||||||||||
Amounts Attributable to Viad:
|
||||||||||||||||||||||||||||||||
Income (loss) from continuing operations
|
$
|
(5,602
|
)
|
$
|
(22,568
|
)
|
$
|
16,966
|
75.2
|
%
|
$
|
23,072
|
$
|
(93,213
|
)
|
$
|
116,285
|
** |
|
|||||||||||||
Income (loss) from discontinued operations
|
(137
|
)
|
24
|
(161
|
)
|
** |
|
148
|
558
|
(410
|
)
|
-73.5
|
%
|
|||||||||||||||||||
Net income (loss)
|
$
|
(5,739
|
)
|
$
|
(22,544
|
)
|
$
|
16,805
|
74.5
|
%
|
$
|
23,220
|
$
|
(92,655
|
)
|
$
|
115,875
|
** |
|
|||||||||||||
Income (loss) per common share attributable to Viad (Note F):
|
||||||||||||||||||||||||||||||||
Basic income (loss) per common share
|
$
|
(0.37
|
)
|
$
|
(1.23
|
)
|
$
|
0.86
|
69.9
|
%
|
$
|
0.54
|
$
|
(5.01
|
)
|
$
|
5.55
|
** |
|
|||||||||||||
Diluted income (loss) per common share
|
$
|
(0.37
|
)
|
$
|
(1.23
|
)
|
$
|
0.86
|
69.9
|
%
|
$
|
0.53
|
$
|
(5.01
|
)
|
$
|
5.54
|
** |
|
|||||||||||||
Weighted-average common shares outstanding:
|
||||||||||||||||||||||||||||||||
Basic weighted-average outstanding common shares
|
20,656
|
20,456
|
200
|
1.0
|
%
|
20,589
|
20,411
|
178
|
0.9
|
%
|
||||||||||||||||||||||
Additional dilutive shares related to share-based compensation
|
-
|
-
|
-
|
** |
|
223
|
-
|
223
|
** |
|
||||||||||||||||||||||
Diluted weighted-average outstanding common shares
|
20,656
|
20,456
|
200
|
1.0
|
%
|
20,812
|
20,411
|
401
|
2.0
|
%
|
||||||||||||||||||||||
Adjusted EBITDA* by Reportable Segment:
|
||||||||||||||||||||||||||||||||
Pursuit
|
$
|
(11,251
|
)
|
$
|
(9,854
|
)
|
$
|
(1,397
|
)
|
-14.2
|
%
|
$
|
67,949
|
$
|
42,689
|
$
|
25,260
|
59.2
|
%
|
|||||||||||||
GES:
|
||||||||||||||||||||||||||||||||
Spiro
|
5,795
|
6,430
|
(635
|
)
|
-9.9
|
%
|
26,975
|
(4,279
|
)
|
31,254
|
** |
|
||||||||||||||||||||
GES Exhibitions
|
6,926
|
3,219
|
3,707
|
** |
|
34,282
|
(26,084
|
)
|
60,366
|
** |
|
|||||||||||||||||||||
Total GES
|
12,721
|
9,649
|
3,072
|
31.8
|
%
|
61,257
|
(30,363
|
)
|
91,620
|
** |
|
|||||||||||||||||||||
Corporate
|
(3,476
|
)
|
(3,596
|
)
|
120
|
3.3
|
%
|
(13,089
|
)
|
(10,986
|
)
|
(2,103
|
)
|
-19.1
|
%
|
|||||||||||||||||
Consolidated Adjusted EBITDA
|
(2,006
|
)
|
(3,801
|
)
|
1,795
|
47.2
|
%
|
116,117
|
1,340
|
114,777
|
** |
|
As of December 31,
|
Capitalization Data:
|
2022
|
2021
|
$ Change
|
% Change
|
||||||||||||||||||||||||||||
Cash and cash equivalents
|
59,719
|
61,600
|
(1,881
|
)
|
-3.1
|
%
|
||||||||||||||||||||||||||
Total debt
|
481,792
|
474,184
|
7,608
|
1.6
|
%
|
|||||||||||||||||||||||||||
Viad shareholders' equity
|
14,530
|
6,282
|
8,248
|
** |
|
|||||||||||||||||||||||||||
Non-controlling interests (redeemable and non-redeemable)
|
87,266
|
91,000
|
(3,734
|
)
|
-4.1
|
%
|
||||||||||||||||||||||||||
Convertible Series A Preferred Stock (Note G):
|
||||||||||||||||||||||||||||||||
Convertible preferred stock (including accumulated dividends paid in kind)***
|
141,827
|
141,827
|
-
|
0.0
|
%
|
|||||||||||||||||||||||||||
Equivalent number of common shares
|
6,674
|
6,674
|
-
|
0.0
|
%
|
|||||||||||||||||||||||||||
VIAD CORP AND SUBSIDIARIES
|
|
TABLE ONE - NOTES TO QUARTERLY AND FULL YEAR RESULTS
|
|
(UNAUDITED)
|
|
(A)
|
Corporate Activities — The increase in corporate activities expense during 2022 relative to 2021 was primarily due to
higher performance-based compensation expense.
|
(B)
|
Gain on Sale of ON Services — On December 15, 2022, we completed the sale of substantially all of the assets of GES’
United States audio-visual production business, ON Services. We recognized a gain on sale of approximately $19.6 million.
|
(C)
|
Restructuring (Charges) Recoveries — Restructuring charges during 2022 and 2021 were primarily related to facility
closures and severance at GES. In response to the COVID-19 pandemic, we accelerated our transformation and streamlining efforts at GES to significantly reduce costs and create a lower and more flexible cost structure focused on
servicing our more profitable market segments.
|
(D)
|
Net Interest Expense — The increase in interest expense during 2022 relative to 2021 was primarily due to higher
interest rates and higher debt balances in 2022, offset in part by $3.0 million in capitalized interest recorded during 2022. Additionally, as a result of the refinance and the repayment of our then 2018 Credit Facility, we recorded
$2.1 million of interest expense related to the write-off of unamortized debt issuance costs during 2021.
|
(E)
|
Income Tax (Expense) Benefit – Our effective income tax rate was 29% for 2022 as compared to 2% for 2021. The
effective rate for 2022 was higher than the blended statutory rate primarily as a result of the higher mix of income earned in foreign jurisdictions where we do not have a valuation allowance. The effective rate for 2021 was lower
than the blended statutory rate primarily as a result of excluding the tax benefit on losses recognized in the United States, the United Kingdom, and other European countries where we have a valuation allowance.
|
(F)
|
Income (Loss) per Common Share — We apply the two-class method in calculating income (loss) per common share as
preferred stock and unvested share-based payment awards that contain nonforteitable rights to dividends are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating
income per share.
|
Diluted income (loss) per common share is calculated using the more dilutive of the two-class method or as-converted
method. The two-class method uses net income (loss) available to common stockholders and assumes conversion of all potential shares other than participating securities. The as-converted method uses net income (loss) available to
common shareholders and assumes conversion of all potential shares including participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred
stock.
|
|
Additionally, the adjustment to the carrying value of redeemable non-controlling interests is reflected in income
(loss) per common share.
|
|
The components of basic and diluted income (loss) per share are as follows:
|
|
Three months ended December 31,
|
Year ended December 31,
|
||||||||||||||||||||||||||||||||
(in thousands)
|
2022
|
2021
|
$ Change
|
% Change
|
2022
|
2021
|
$ Change
|
% Change
|
|||||||||||||||||||||||||
Net income (loss) attributable to Viad
|
$
|
(5,739
|
)
|
$
|
(22,544
|
)
|
$
|
16,805
|
74.5
|
%
|
$
|
23,220
|
$
|
(92,655
|
)
|
$
|
115,875
|
** |
|
||||||||||||||
Convertible preferred stock dividends paid in cash
|
(1,950
|
)
|
(1,950
|
)
|
-
|
0.0
|
%
|
(7,801
|
)
|
(3,900
|
)
|
(3,901
|
)
|
** |
|
||||||||||||||||||
Convertible preferred stock dividends paid in kind
|
-
|
-
|
-
|
** |
|
-
|
(3,821
|
)
|
3,821
|
-100.0
|
%
|
||||||||||||||||||||||
Adjustment to the redemption value of redeemable noncontrolling interest
|
-
|
(706
|
)
|
706
|
-100.0
|
%
|
(763
|
)
|
(1,797
|
)
|
1,034
|
57.5
|
%
|
||||||||||||||||||||
Undistributed income (loss) attributable to Viad
|
(7,689
|
)
|
(25,200
|
)
|
17,511
|
69.5
|
%
|
14,656
|
(102,173
|
)
|
116,829
|
** |
|
||||||||||||||||||||
Less: Allocation to participating securities
|
-
|
-
|
-
|
** |
|
(3,600
|
)
|
-
|
(3,600
|
)
|
** |
|
|||||||||||||||||||||
Net income (loss) allocated to Viad common shareholders (basic)
|
$
|
(7,689
|
)
|
$
|
(25,200
|
)
|
$
|
17,511
|
69.5
|
%
|
$
|
11,056
|
$
|
(102,173
|
)
|
$
|
113,229
|
** |
|
||||||||||||||
Add: Allocation to participating securities
|
-
|
-
|
-
|
** |
|
30
|
-
|
-
|
** |
|
|||||||||||||||||||||||
Net income (loss) allocated to Viad common shareholders (diluted)
|
$
|
(7,689
|
)
|
$
|
(25,200
|
)
|
$
|
17,511
|
69.5
|
%
|
$
|
11,086
|
$
|
(102,173
|
)
|
$
|
113,229
|
** |
|
||||||||||||||
Basic weighted-average outstanding common shares
|
20,656
|
20,456
|
200
|
1.0
|
%
|
20,589
|
20,411
|
178
|
0.9
|
%
|
|||||||||||||||||||||||
Additional dilutive shares related to share-based compensation
|
-
|
-
|
-
|
** |
|
223
|
-
|
223
|
** |
|
|||||||||||||||||||||||
Diluted weighted-average outstanding common shares
|
20,656
|
20,456
|
200
|
1.0
|
%
|
20,812
|
20,411
|
401
|
2.0
|
%
|
(G)
|
Convertible Series A Preferred Stock — On August 5, 2020, we entered into an Investment Agreement with funds managed by private equity firm Crestview Partners, relating to the
issuance of 135,000 shares of newly issued Convertible Series A Preferred Stock, par value $0.01 per share, for an aggregate purchase price of $135 million or $1,000 per share. The Convertible Series A Preferred Stock carries a 5.5%
cumulative quarterly dividend, which is payable in cash or in-kind at Viad’s option and is convertible into shares of our common stock at a conversion price of $21.25 per share. A total of $6.8 million of dividends have been paid
in kind, including $3.8 million during the first and second quarters of 2021. We began paying preferred stock dividends in cash during the 2021 third quarter and we intend to pay in cash for the foreseeable future.
|
VIAD CORP AND SUBSIDIARIES
|
|||||||||||||||||
TABLE TWO - NON-GAAP FINANCIAL MEASURES
|
|||||||||||||||||
(UNAUDITED)
|
|||||||||||||||||
IMPORTANT DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
|
|||||||||||||||||
This document includes the presentation of "Income (Loss) Before Other Items", "Adjusted EBITDA", "Segment Operating
Income (Loss)", and "Adjusted Segment Operating Income (Loss)", which are supplemental to results presented under accounting principles generally accepted in the United States of America (“GAAP”) and may not be comparable to
similarly titled measures presented by other companies. These non-GAAP measures are utilized by management to facilitate period-to-period comparisons and analysis of Viad’s operating performance and should be considered in
addition to, but not as substitutes for, other similar measures reported in accordance with GAAP. The use of these non-GAAP financial measures is limited, compared to the GAAP measure of net income attributable to Viad, because
they do not consider a variety of items affecting Viad’s consolidated financial performance as reconciled below. Because these non-GAAP measures do not consider all items affecting Viad’s consolidated financial performance, a
user of Viad’s financial information should consider net income attributable to Viad as an important measure of financial performance because it provides a more complete measure of the Company’s performance.
|
|||||||||||||||||
Income (Loss) Before Other Items, Segment Operating Income (Loss), and Adjusted Segment Operating Income (Loss) are
considered useful operating metrics, in addition to net income attributable to Viad, as potential variations arising from non-operational expenses/income are eliminated, thus resulting in additional measures considered to be
indicative of Viad’s performance. Management believes that the presentation of Adjusted EBITDA provides useful information to investors regarding Viad’s results of operations for trending, analyzing and benchmarking the
performance and value of Viad’s business. Management also believes that the presentation of Adjusted EBITDA for acquisitions and other major capital projects enables investors to assess how effectively management is investing
capital into major corporate development projects, both from a valuation and return perspective.
|
|||||||||||||||||
Three months ended December 31,
|
Year ended December 31,
|
|||||||||||||||||||||||||||||||
(in thousands, except per share data)
|
2022
|
2021
|
$ Change
|
% Change
|
2022
|
2021
|
$ Change
|
% Change
|
||||||||||||||||||||||||
Income (loss) before other items:
|
||||||||||||||||||||||||||||||||
Net income (loss) attributable to Viad
|
$
|
(5,739
|
)
|
$
|
(22,544
|
)
|
$
|
16,805
|
74.5
|
%
|
$
|
23,220
|
$
|
(92,655
|
)
|
$
|
115,875
|
** |
|
|||||||||||||
(Income) loss from discontinued operations attributable to Viad
|
137
|
(24
|
)
|
161
|
** |
|
(148
|
)
|
(558
|
)
|
410
|
73.5
|
%
|
|||||||||||||||||||
Income (loss) from continuing operations attributable to Viad
|
(5,602
|
)
|
(22,568
|
)
|
16,966
|
75.2
|
%
|
23,072
|
(93,213
|
)
|
116,285
|
** |
|
|||||||||||||||||||
Gain on sale of ON Services, pre-tax
|
(19,637
|
)
|
-
|
(19,637
|
)
|
** |
|
(19,637
|
)
|
-
|
(19,637
|
)
|
** |
|
||||||||||||||||||
Restructuring charges (recoveries), pre-tax
|
(408
|
)
|
267
|
(675
|
)
|
** |
|
3,059
|
6,066
|
(3,007
|
)
|
-49.6
|
%
|
|||||||||||||||||||
Impairment charges, pre-tax
|
-
|
-
|
-
|
** |
|
583
|
-
|
583
|
** |
|
||||||||||||||||||||||
Pension plan withdrawal, pre-tax
|
-
|
-
|
-
|
** |
|
-
|
57
|
(57
|
)
|
-100.0
|
%
|
|||||||||||||||||||||
Acquisition-related costs and other non-recurring expenses, pre-tax (Note A)
|
572
|
(113
|
)
|
685
|
** |
|
3,884
|
6,211
|
(2,327
|
)
|
-37.5
|
%
|
||||||||||||||||||||
Remeasurement of finance lease obligation attributable to Viad, pre-tax (Note B)
|
(410
|
)
|
-
|
(410
|
)
|
** |
|
2,120
|
-
|
2,120
|
** |
|
||||||||||||||||||||
Tax benefit on above items
|
16
|
(43
|
)
|
59
|
** |
|
(755
|
)
|
(723
|
)
|
(32
|
)
|
-4.4
|
%
|
||||||||||||||||||
Income (loss) before other items
|
$
|
(25,469
|
)
|
$
|
(22,457
|
)
|
$
|
(3,012
|
)
|
-13.4
|
%
|
$
|
12,326
|
$
|
(81,602
|
)
|
$
|
93,928
|
** |
|
||||||||||||
The components of income (loss) before other items per share are as follows:
|
||||||||||||||||||||||||||||||||
Income (loss) before other items (as reconciled above)
|
(25,469
|
)
|
(22,457
|
)
|
(3,012
|
)
|
-13.4
|
%
|
12,326
|
(81,602
|
)
|
93,928
|
** |
|
||||||||||||||||||
Convertible preferred stock dividends paid in cash
|
(1,950
|
)
|
(1,950
|
)
|
-
|
0.0
|
%
|
(7,801
|
)
|
(3,900
|
)
|
(3,901
|
)
|
** |
|
|||||||||||||||||
Convertible preferred stock dividends paid in kind
|
-
|
-
|
-
|
** |
|
-
|
(3,821
|
)
|
3,821
|
-100.0
|
%
|
|||||||||||||||||||||
Undistributed income (loss) before other items attributable to Viad (Note C)
|
(27,419
|
)
|
(24,407
|
)
|
(3,012
|
)
|
-12.3
|
%
|
4,525
|
(89,323
|
)
|
93,848
|
** |
|
||||||||||||||||||
Less: Allocation to participating securities (Note D)
|
-
|
-
|
-
|
** |
|
(1,102
|
)
|
-
|
(1,102
|
)
|
** |
|
||||||||||||||||||||
Diluted income (loss) before other items allocated to Viad common shareholders
|
$
|
(27,419
|
)
|
$
|
(24,407
|
)
|
$
|
(3,012
|
)
|
-12.3
|
%
|
$
|
3,423
|
$
|
(89,323
|
)
|
$
|
92,746
|
** |
|
||||||||||||
Diluted weighted-average outstanding common shares
|
20,656
|
20,456
|
200
|
1.0
|
%
|
20,812
|
20,411
|
401
|
2.0
|
%
|
||||||||||||||||||||||
Income (loss) before other items per common share
|
$
|
(1.33
|
)
|
$
|
(1.19
|
)
|
$
|
(0.14
|
)
|
-11.8
|
%
|
$
|
0.16
|
$
|
(4.38
|
)
|
$
|
4.54
|
** |
|
(A)
|
Acquisition-related costs and other non-recurring expenses include:
|
Three months ended December 31,
|
Year ended December 31,
|
|||||||||||||||||||||||||||||||
(in thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||||||||||||||||||
Acquisition integration costs - Pursuit1
|
$
|
101
|
$
|
-
|
$
|
237
|
$
|
6
|
||||||||||||||||||||||||
Acquisition transaction-related costs - Pursuit1
|
24
|
209
|
1,259
|
862
|
||||||||||||||||||||||||||||
Acquisition transaction-related costs - Corporate2
|
29
|
(33
|
)
|
68
|
30
|
|||||||||||||||||||||||||||
Attraction start-up costs1, 3
|
418
|
(289
|
)
|
2,169
|
4,744
|
|||||||||||||||||||||||||||
Other non-recurring expenses2, 4
|
-
|
-
|
151
|
569
|
||||||||||||||||||||||||||||
Acquisition-related and other non-recurring expenses, pre-tax
|
$
|
572
|
$
|
(113
|
)
|
$
|
3,884
|
$
|
6,211
|
|||||||||||||||||||||||
1 Included in segment operating loss
|
||||||||||||||||||||||||||||||||
2 Included in corporate activities
|
||||||||||||||||||||||||||||||||
3 Includes costs related to the development of Pursuit's new FlyOver attractions in
Las Vegas, Chicago, and Toronto, the Sky Lagoon in Iceland, the Golden Skybridge and Forest Park Hotel in Canada.
|
||||||||||||||||||||||||||||||||
4 Includes non-capitalizable fees and expenses related to Viad’s credit facility
refinancing efforts.
|
||||||||||||||||||||||||||||||||
(B)
|
Remeasurement of finance lease obligation attributable to Viad represents the non-cash foreign exchange loss/(gain)
included within Cost of Services related to the periodic remeasurement of the Sky Lagoon finance lease obligation that is attributed to Viad’s 51% interest in Sky Lagoon.
|
(C) |
We exclude the adjustment to the redemption value of redeemable noncontrolling interest from the calculation of income before other items
per share as it is a non-cash adjustment that does not affect net income or loss attributable to Viad. |
(D) |
Preferred stock and unvested share-based payment awards that contain nonforteitable rights to dividends are considered participating
securities. Accordingly, such securities are included in the earnings allocation in calculating income (loss) before other items per common share unless the effect of such inclusion is anti-dilutive. The following table provides
the share data used for calculating the allocation to participating securities if applicable: |
Three months ended December 31, |
Year ended December 31, |
|||||||||||||||||||||||||||||||
(in thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||||||||||||||||||
Weighted-average outstanding common shares
|
20,656
|
20,456
|
20,812
|
20,411
|
||||||||||||||||||||||||||||
Effect of participating convertible preferred shares (if applicable)
|
-
|
-
|
6,674
|
-
|
||||||||||||||||||||||||||||
Effect of participating non-vested shares (if applicable)
|
-
|
-
|
29
|
-
|
||||||||||||||||||||||||||||
Weighted-average shares including effect of participating interests (if applicable)
|
20,656
|
20,456
|
27,515
|
20,411
|
||||||||||||||||||||||||||||
** Change is greater than +/- 100 percent
|
VIAD CORP AND SUBSIDIARIES
|
TABLE TWO - NON-GAAP FINANCIAL MEASURES (CONTINUED)
|
(UNAUDITED)
|
Same-Store - The term "same-store" is used within this document to refer to results without the impact of new
experiences, if any, until such new experiences are included in the entirety of both comparable periods. Management believes that the presentation of "same-store" results permits investors to better understand Viad's performance
without the effects of new experiences. |
Three months ended December 31, 2022
|
Three months ended December 31, 2021
|
|||||||||||||||||||||||
($ in thousands)
|
As Reported
|
New
Experiences
(Note A)
|
Same-Store
|
As Reported
|
New
Experiences
(Note A)
|
Same-Store
|
||||||||||||||||||
Viad Consolidated:
|
||||||||||||||||||||||||
Revenue
|
$
|
248,027
|
$
|
9,984
|
$
|
238,043
|
$
|
183,573
|
$
|
5,139
|
$
|
178,434
|
||||||||||||
Net loss attributable to Viad
|
$
|
(5,739
|
)
|
$
|
(22,544
|
)
|
||||||||||||||||||
Net loss attributable to noncontrolling interest
|
(708
|
)
|
(1,363
|
)
|
||||||||||||||||||||
Net loss attributable to redeemable noncontrolling interest
|
(394
|
)
|
(545
|
)
|
||||||||||||||||||||
(Income) loss from discontinued operations
|
137
|
(24
|
)
|
|||||||||||||||||||||
Net interest expense
|
11,001
|
8,156
|
||||||||||||||||||||||
Income tax expense (benefit)
|
386
|
(1,906
|
)
|
|||||||||||||||||||||
Depreciation and amortization
|
13,041
|
13,764
|
||||||||||||||||||||||
Gain on sale of ON Services
|
(19,637
|
)
|
-
|
|||||||||||||||||||||
Restructuring charges (recoveries)
|
(408
|
)
|
267
|
|||||||||||||||||||||
Other expense
|
547
|
507
|
||||||||||||||||||||||
Start-up costs (B)
|
418
|
(289
|
)
|
|||||||||||||||||||||
Acquisition transaction-related costs
|
53
|
176
|
||||||||||||||||||||||
Integration costs
|
101
|
-
|
||||||||||||||||||||||
Remeasurement of finance lease obligation (C)
|
(804
|
)
|
-
|
|||||||||||||||||||||
Consolidated Adjusted EBITDA
|
$
|
(2,006
|
)
|
$
|
755
|
$
|
(2,761
|
)
|
$
|
(3,801
|
)
|
$
|
(884
|
)
|
$
|
(2,917
|
)
|
|||||||
Adjusted EBITDA attributable to noncontrolling interest
|
(246
|
)
|
(1,032
|
)
|
786
|
(5
|
)
|
(300
|
)
|
295
|
||||||||||||||
Consolidated Adjusted EBITDA attributable to Viad
|
$
|
(2,252
|
)
|
$
|
(277
|
)
|
$
|
(1,975
|
)
|
$
|
(3,806
|
)
|
$
|
(1,184
|
)
|
$
|
(2,622
|
)
|
||||||
Consolidated Adjusted EBITDA by Business:
|
||||||||||||||||||||||||
Pursuit
|
$
|
(11,251
|
)
|
$
|
755
|
$
|
(12,006
|
)
|
$
|
(9,854
|
)
|
$
|
(884
|
)
|
$
|
(8,970
|
)
|
|||||||
Total GES
|
12,721
|
-
|
12,721
|
9,649
|
-
|
9,649
|
||||||||||||||||||
Total Segment EBITDA
|
1,470
|
755
|
715
|
(205
|
)
|
(884
|
)
|
679
|
||||||||||||||||
Corporate EBITDA
|
(3,476
|
)
|
-
|
(3,476
|
)
|
(3,596
|
)
|
-
|
(3,596
|
)
|
||||||||||||||
Consolidated Adjusted EBITDA
|
$
|
(2,006
|
)
|
$
|
755
|
$
|
(2,761
|
)
|
$
|
(3,801
|
)
|
$
|
(884
|
)
|
$
|
(2,917
|
)
|
|||||||
Pursuit Adjusted EBITDA:
|
||||||||||||||||||||||||
Revenue
|
$
|
34,148
|
$
|
9,984
|
$
|
24,164
|
$
|
23,390
|
$
|
5,139
|
$
|
18,251
|
||||||||||||
Cost of services and products
|
(54,239
|
)
|
(11,117
|
)
|
(43,122
|
)
|
(41,964
|
)
|
(7,271
|
)
|
(34,693
|
)
|
||||||||||||
Segment operating loss
|
(20,091
|
)
|
(1,133
|
)
|
(18,958
|
)
|
(18,574
|
)
|
(2,132
|
)
|
(16,442
|
)
|
||||||||||||
Depreciation
|
7,926
|
1,699
|
6,227
|
7,623
|
1,151
|
6,472
|
||||||||||||||||||
Amortization
|
1,175
|
474
|
701
|
1,177
|
386
|
791
|
||||||||||||||||||
Start-up costs (B)
|
418
|
418
|
-
|
(289
|
)
|
(289
|
)
|
-
|
||||||||||||||||
Acquisition transaction-related costs
|
24
|
-
|
24
|
209
|
-
|
209
|
||||||||||||||||||
Integration costs
|
101
|
101
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Remeasurement of finance lease obligation (C)
|
(804
|
)
|
(804
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||
Adjusted EBITDA
|
$
|
(11,251
|
)
|
$
|
755
|
$
|
(12,006
|
)
|
$
|
(9,854
|
)
|
$
|
(884
|
)
|
$
|
(8,970
|
)
|
|||||||
Adjusted EBITDA attributable to noncontrolling interest
|
(246
|
)
|
(1,032
|
)
|
786
|
(5
|
)
|
(300
|
)
|
295
|
||||||||||||||
Adjusted EBITDA attributable to Viad
|
$
|
(11,497
|
)
|
$
|
(277
|
)
|
$
|
(11,220
|
)
|
$
|
(9,859
|
)
|
$
|
(1,184
|
)
|
$
|
(8,675
|
)
|
||||||
Pursuit Operating margin
|
-58.8
|
%
|
-11.3
|
%
|
-78.5
|
%
|
-79.4
|
%
|
-41.5
|
%
|
-90.1
|
%
|
||||||||||||
Pursuit Adjusted EBITDA margin
|
-32.9
|
%
|
7.6
|
%
|
-49.7
|
%
|
-42.1
|
%
|
-17.2
|
%
|
-49.1
|
%
|
||||||||||||
Total GES Adjusted EBITDA:
|
||||||||||||||||||||||||
Revenue
|
$
|
213,879
|
$
|
-
|
$
|
213,879
|
$
|
160,183
|
$
|
-
|
$
|
160,183
|
||||||||||||
Cost of services and products
|
(205,082
|
)
|
-
|
(205,082
|
)
|
(155,494
|
)
|
-
|
(155,494
|
)
|
||||||||||||||
Segment operating income
|
8,797
|
-
|
8,797
|
4,689
|
-
|
4,689
|
||||||||||||||||||
Depreciation
|
2,802
|
-
|
2,802
|
3,746
|
-
|
3,746
|
||||||||||||||||||
Amortization
|
1,122
|
-
|
1,122
|
1,214
|
-
|
1,214
|
||||||||||||||||||
Total GES Adjusted EBITDA
|
$
|
12,721
|
$
|
-
|
$
|
12,721
|
$
|
9,649
|
$
|
-
|
$
|
9,649
|
||||||||||||
Total GES Operating margin
|
4.1
|
%
|
4.1
|
%
|
2.9
|
%
|
2.9
|
%
|
||||||||||||||||
Total GES Adjusted EBITDA margin
|
5.9
|
%
|
5.9
|
%
|
6.0
|
%
|
6.0
|
%
|
||||||||||||||||
GES Adjusted EBITDA by Reportable Segment:
|
||||||||||||||||||||||||
Spiro
|
$
|
5,795
|
$
|
5,795
|
$
|
6,430
|
$
|
6,430
|
||||||||||||||||
GES Exhibitions
|
6,926
|
6,926
|
3,219
|
3,219
|
||||||||||||||||||||
Total GES
|
$
|
12,721
|
$
|
-
|
$
|
12,721
|
$
|
9,649
|
$
|
-
|
$
|
9,649
|
||||||||||||
Spiro Revenue
|
$
|
72,123
|
$
|
-
|
$
|
72,123
|
$
|
54,718
|
$
|
-
|
$
|
54,718
|
||||||||||||
Spiro Adjusted EBITDA Margin
|
8.0
|
%
|
8.0
|
%
|
11.8
|
%
|
11.8
|
%
|
||||||||||||||||
GES Exhibitions Revenue
|
$
|
143,577
|
$
|
-
|
$
|
143,577
|
$
|
108,182
|
$
|
-
|
$
|
108,182
|
||||||||||||
GES Exhibitions Adjusted EBITDA Margin
|
4.8
|
%
|
4.8
|
%
|
3.0
|
%
|
3.0
|
%
|
||||||||||||||||
(A) New Experiences comprises the following attractions and hotel properties that were opened or acquired after January
1, 2021: Sky Lagoon (opened May 2021), Golden Skybridge (acquired March 2021 and opened June 2021), FlyOver Las Vegas (opened September 2021), Glacier Raft Company (acquired April 2022), and Forest Park Hotel (opened August 2022)
and costs related to the development of new experiences.
|
(B) Includes costs related to the development of Pursuit's new FlyOver attractions in Las Vegas, Chicago, and Toronto,
and Forest Park Hotel in Canada.
|
(C) Remeasurement of finance lease obligation represents the non-cash foreign exchange loss/(gain) included within Cost
of Services related to the periodic remeasurement of the Sky Lagoon finance lease obligation.
|
VIAD CORP AND SUBSIDIARIES
|
TABLE TWO - NON-GAAP FINANCIAL MEASURES (CONTINUED)
|
(UNAUDITED)
|
Same-Store - The term "same-store" is used within this document to refer to results without the impact of new experiences, if any, until such new experiences are included in the entirety of both comparable periods. Management believes that the presentation of "same-store" results permits investors to better understand Viad's performance without the effects of new experiences. |
Year ended December 31, 2022
|
Year ended December 31, 2021
|
|||||||||||||||||||||||
($ in thousands)
|
As Reported
|
New
Experiences
(Note A)
|
Same-Store
|
As Reported
|
New
Experiences
(Note A)
|
Same-Store
|
||||||||||||||||||
Viad Consolidated:
|
||||||||||||||||||||||||
Revenue
|
$
|
1,127,311
|
$
|
43,203
|
$
|
1,084,108
|
$
|
507,340
|
$
|
15,643
|
$
|
491,697
|
||||||||||||
Net income (loss) attributable to Viad
|
$
|
23,220
|
$
|
(92,655
|
)
|
|||||||||||||||||||
Net income attributable to noncontrolling interest
|
2,323
|
1,686
|
||||||||||||||||||||||
Net loss attributable to redeemable noncontrolling interest
|
(748
|
)
|
(1,766
|
)
|
||||||||||||||||||||
Income from discontinued operations
|
(148
|
)
|
(558
|
)
|
||||||||||||||||||||
Net interest expense
|
34,891
|
28,324
|
||||||||||||||||||||||
Income tax expense (benefit)
|
9,973
|
(1,788
|
)
|
|||||||||||||||||||||
Depreciation and amortization
|
52,483
|
53,750
|
||||||||||||||||||||||
Gain on sale of ON Services
|
(19,637
|
)
|
-
|
|||||||||||||||||||||
Restructuring charges
|
3,059
|
6,066
|
||||||||||||||||||||||
Impairment charges
|
583
|
-
|
||||||||||||||||||||||
Other expense
|
2,077
|
2,070
|
||||||||||||||||||||||
Start-up costs (B)
|
2,169
|
4,744
|
||||||||||||||||||||||
Acquisition transaction-related costs
|
1,327
|
892
|
||||||||||||||||||||||
Integration costs
|
237
|
6
|
||||||||||||||||||||||
Remeasurement of finance lease obligation (C)
|
4,157
|
-
|
||||||||||||||||||||||
Other non-recurring expenses (D)
|
151
|
569
|
||||||||||||||||||||||
Consolidated Adjusted EBITDA
|
$
|
116,117
|
$
|
6,929
|
$
|
109,188
|
$
|
1,340
|
$
|
3,286
|
$
|
(1,946
|
)
|
|||||||||||
Adjusted EBITDA attributable to noncontrolling interest
|
(10,950
|
)
|
(4,365
|
)
|
(6,585
|
)
|
(7,585
|
)
|
(2,145
|
)
|
(5,440
|
)
|
||||||||||||
Consolidated Adjusted EBITDA attributable to Viad
|
$
|
105,167
|
$
|
2,564
|
$
|
102,603
|
$
|
(6,245
|
)
|
$
|
1,141
|
$
|
(7,386
|
)
|
||||||||||
Consolidated Adjusted EBITDA by Business:
|
||||||||||||||||||||||||
Pursuit
|
$
|
67,949
|
$
|
6,929
|
$
|
61,020
|
$
|
42,689
|
$
|
3,286
|
$
|
39,403
|
||||||||||||
Total GES
|
61,257
|
-
|
61,257
|
(30,363
|
)
|
-
|
(30,363
|
)
|
||||||||||||||||
Total Segment EBITDA
|
129,206
|
6,929
|
122,277
|
12,326
|
3,286
|
9,040
|
||||||||||||||||||
Corporate EBITDA
|
(13,089
|
)
|
-
|
(13,089
|
)
|
(10,986
|
)
|
-
|
(10,986
|
)
|
||||||||||||||
Consolidated Adjusted EBITDA
|
$
|
116,117
|
$
|
6,929
|
$
|
109,188
|
$
|
1,340
|
$
|
3,286
|
$
|
(1,946
|
)
|
|||||||||||
Pursuit Adjusted EBITDA:
|
||||||||||||||||||||||||
Revenue
|
$
|
299,327
|
$
|
43,203
|
$
|
256,124
|
$
|
187,048
|
$
|
15,643
|
$
|
171,405
|
||||||||||||
Cost of services and products
|
(275,296
|
)
|
(49,954
|
)
|
(225,342
|
)
|
(182,439
|
)
|
(20,136
|
)
|
(162,303
|
)
|
||||||||||||
Segment operating income (loss)
|
24,031
|
(6,751
|
)
|
30,782
|
4,609
|
(4,493
|
)
|
9,102
|
||||||||||||||||
Depreciation
|
31,075
|
5,371
|
25,704
|
27,360
|
1,611
|
25,749
|
||||||||||||||||||
Amortization
|
5,021
|
1,746
|
3,275
|
5,108
|
1,424
|
3,684
|
||||||||||||||||||
Start-up costs (B)
|
2,169
|
2,169
|
-
|
4,744
|
4,744
|
-
|
||||||||||||||||||
Acquisition transaction-related costs
|
1,259
|
-
|
1,259
|
862
|
-
|
862
|
||||||||||||||||||
Integration costs
|
237
|
237
|
-
|
6
|
-
|
6
|
||||||||||||||||||
Remeasurement of finance lease obligation (C)
|
4,157
|
4,157
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Adjusted EBITDA
|
$
|
67,949
|
$
|
6,929
|
$
|
61,020
|
$
|
42,689
|
$
|
3,286
|
$
|
39,403
|
||||||||||||
Adjusted EBITDA attributable to noncontrolling interest
|
(10,950
|
)
|
(4,365
|
)
|
(6,585
|
)
|
(7,585
|
)
|
(2,145
|
)
|
(5,440
|
)
|
||||||||||||
Adjusted EBITDA attributable to Viad
|
$
|
56,999
|
$
|
2,564
|
$
|
54,435
|
$
|
35,104
|
$
|
1,141
|
$
|
33,963
|
||||||||||||
Pursuit Operating margin
|
8.0
|
%
|
-15.6
|
%
|
12.0
|
%
|
2.5
|
%
|
-28.7
|
%
|
5.3
|
%
|
||||||||||||
Pursuit Adjusted EBITDA margin
|
22.7
|
%
|
16.0
|
%
|
23.8
|
%
|
22.8
|
%
|
21.0
|
%
|
23.0
|
%
|
||||||||||||
Total GES Adjusted EBITDA:
|
||||||||||||||||||||||||
Revenue
|
$
|
827,984
|
$
|
-
|
$
|
827,984
|
$
|
320,292
|
$
|
-
|
$
|
320,292
|
||||||||||||
Cost of services and products
|
(783,071
|
)
|
-
|
(783,071
|
)
|
(371,903
|
)
|
-
|
(371,903
|
)
|
||||||||||||||
Segment operating income (loss)
|
44,913
|
-
|
44,913
|
(51,611
|
)
|
-
|
(51,611
|
)
|
||||||||||||||||
Depreciation
|
11,914
|
-
|
11,914
|
16,319
|
-
|
16,319
|
||||||||||||||||||
Amortization
|
4,430
|
-
|
4,430
|
4,929
|
-
|
4,929
|
||||||||||||||||||
Total GES Adjusted EBITDA
|
$
|
61,257
|
$
|
-
|
$
|
61,257
|
$
|
(30,363
|
)
|
$
|
-
|
$
|
(30,363
|
)
|
||||||||||
Total GES Operating margin
|
5.4
|
%
|
5.4
|
%
|
-16.1
|
%
|
-16.1
|
%
|
||||||||||||||||
Total GES Adjusted EBITDA margin
|
7.4
|
%
|
7.4
|
%
|
-9.5
|
%
|
-9.5
|
%
|
||||||||||||||||
GES Adjusted EBITDA by Reportable Segment:
|
||||||||||||||||||||||||
Spiro
|
$
|
26,975
|
$
|
-
|
$
|
26,975
|
$
|
(4,279
|
)
|
$
|
-
|
$
|
(4,279
|
)
|
||||||||||
GES Exhibitions
|
34,282
|
-
|
34,282
|
(26,084
|
)
|
-
|
(26,084
|
)
|
||||||||||||||||
Total GES
|
$
|
61,257
|
$
|
-
|
$
|
61,257
|
$
|
(30,363
|
)
|
$
|
-
|
$
|
(30,363
|
)
|
||||||||||
Spiro Revenue
|
$
|
277,641
|
$
|
-
|
$
|
277,641
|
$
|
116,587
|
$
|
-
|
$
|
116,587
|
||||||||||||
Spiro Adjusted EBITDA Margin
|
9.7
|
%
|
9.7
|
%
|
-3.7
|
%
|
-3.7
|
%
|
||||||||||||||||
GES Exhibitions Revenue
|
$
|
557,880
|
$
|
-
|
$
|
557,880
|
$
|
209,529
|
$
|
-
|
$
|
209,529
|
||||||||||||
GES Exhibitions Adjusted EBITDA Margin
|
6.1
|
%
|
6.1
|
%
|
-12.4
|
%
|
-12.4
|
%
|
||||||||||||||||
(A) New Experiences comprises the following attractions and hotel properties that were opened or acquired after
January 1, 2021: Sky Lagoon (opened May 2021), Golden Skybridge (acquired March 2021 and opened June 2021), FlyOver Las Vegas (opened September 2021), Glacier Raft Company (acquired April 2022), and Forest Park Hotel (opened
August 2022) and costs related to the development of new experiences.
|
(B) Includes costs related to the development of Pursuit's new FlyOver attractions in Las Vegas, Chicago, and
Toronto, the Sky Lagoon in Iceland, the Golden Skybridge, and Forest Park Hotel in Canada.
|
(C) Remeasurement of finance lease obligation represents the non-cash foreign exchange loss/(gain) included within
Cost of Services related to the periodic remeasurement of the Sky Lagoon finance lease obligation.
|
(D) Includes non-capitalizable fees and expenses related to Viad’s credit facility refinancing efforts.
|
VIAD CORP AND SUBSIDIARIES
|
||||
TABLE TWO - NON-GAAP FINANCIAL MEASURES (CONTINUED)
|
||||
(UNAUDITED)
|
||||
The following table provides revenue and Adjusted EBITDA for the three months ended March 31, 2022, along with
reconciliations of Adjusted EBITDA to the nearest GAAP measure, net income attributable to Viad.
|
||||
2022
|
||||
($ in thousands)
|
First Quarter
|
|||
Viad Consolidated:
|
||||
Net loss attributable to Viad
|
$
|
(29,001
|
)
|
|
Net loss income attributable to noncontrolling interest
|
(1,204
|
)
|
||
Net loss attributable to redeemable noncontrolling interest
|
(138
|
)
|
||
Income from discontinued operations
|
(275
|
)
|
||
Net interest expense
|
5,877
|
|||
Income tax benefit
|
(2,582
|
)
|
||
Depreciation and amortization
|
13,279
|
|||
Restructuring charges
|
654
|
|||
Impairment charges
|
583
|
|||
Other expense
|
638
|
|||
Start-up costs (A)
|
431
|
|||
Acquisition transaction-related costs
|
418
|
|||
Other non-recurring expenses (B)
|
8
|
|||
Consolidated Adjusted EBITDA
|
$
|
(11,312
|
)
|
|
Consolidated Adjusted EBITDA by Business:
|
||||
Pursuit
|
$
|
(11,498
|
)
|
|
Total GES
|
2,720
|
|||
Total Segment EBITDA
|
(8,778
|
)
|
||
Corporate EBITDA
|
(2,534
|
)
|
||
Consolidated Adjusted EBITDA
|
$
|
(11,312
|
)
|
|
Pursuit Adjusted EBITDA:
|
||||
Revenue
|
$
|
23,784
|
||
Cost of services and products
|
(44,982
|
)
|
||
Segment operating loss
|
(21,198
|
)
|
||
Depreciation
|
7,782
|
|||
Amortization
|
1,179
|
|||
Start-up costs (A)
|
431
|
|||
Acquisition transaction-related costs
|
308
|
|||
Adjusted EBITDA
|
$
|
(11,498
|
)
|
|
Pursuit Operating margin
|
-89.1
|
%
|
||
Pursuit Adjusted EBITDA margin
|
-48.3
|
%
|
||
Total GES Adjusted EBITDA:
|
||||
Revenue
|
$
|
153,576
|
||
Cost of services and products
|
(155,170
|
)
|
||
Segment operating loss
|
(1,594
|
)
|
||
Depreciation
|
3,220
|
|||
Amortization
|
1,094
|
|||
Total GES Adjusted EBITDA
|
$
|
2,720
|
||
Total GES Operating margin
|
-1.0
|
%
|
||
Total GES Adjusted EBITDA margin
|
1.8
|
%
|
||
GES Adjusted EBITDA by Reportable Segment:
|
||||
Spiro
|
$
|
742
|
||
GES Exhibitions
|
1,978
|
|||
Total GES
|
$
|
2,720
|
||
Spiro Revenue
|
$
|
42,816
|
||
Spiro Adjusted EBITDA Margin
|
1.7
|
%
|
||
GES Exhibitions Revenue
|
$
|
111,831
|
||
GES Exhibitions Adjusted EBITDA Margin
|
1.8
|
%
|
||
(A) Includes costs related to the development of Pursuit's new FlyOver attractions in Chicago and Toronto, and Forest
Park Hotel in Canada.
|
||||
(B) Includes non-capitalizable fees and expenses related to Viad’s credit facility refinancing efforts.
|
||||
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