Pursuit Attractions & Hospitality, Inc. (PRSU)·Q4 2024 Earnings Summary

Executive Summary

• Q4 delivered 8.5% y/y revenue growth to $45.8M, with seasonally negative adjusted EBITDA improving to -$11.2M; GAAP diluted EPS was $10.81 due to the gain on sale of discontinued operations, while adjusted diluted EPS improved to -$0.82 from -$1.13 y/y .
• Management guided FY25 revenue up low-double digits and consolidated adjusted EBITDA to $98–$108M (vs. $77.1M in 2024), citing Jasper wildfire recovery, tuck-in contributions ($5–$7M), and continued demand, partially offset by a ~$7M FX translation headwind at CAD/USD 0.69 .
• Balance sheet reset post-GES sale: term loan and revolver repaid; net leverage ≈0; $200M undrawn revolver; annual savings of ~$30M interest and ~$8M preferred dividends (CFO framed total savings at ~$40M) .
• Stock reaction catalysts: transformation into a pure-play attractions/hospitality platform, double-digit 2025 growth outlook, improving margins toward mid-20s, and M&A/refresh pipeline supported by ~$250M liquidity .

What Went Well and What Went Wrong

• What Went Well

  • Pure-play transformation and deleveraging: GES sale completed, high-cost debt eliminated, new $200M revolver established; total liquidity ~$249.7M and net leverage ≈0 .
  • Operational execution in attractions: Flyover Chicago opened (USA Today Top 10 new attractions), Sky Lagoon expanded; management expects double-digit revenue and EBITDA growth in 2025 .
  • Q4 revenue growth despite Jasper headwinds: Q4 revenue +8.5% y/y (+15.3% ex-Jasper) driven by attractions ticket revenue; adjusted EBITDA loss narrowed y/y .

• What Went Wrong

  • Impairments at Flyover: $27.5M asset write-down for Flyover Las Vegas and $14.0M goodwill impairment for the Flyover Collection in Q4; slower-than-expected ramp, particularly in Las Vegas, drove revisions .
  • Wildfire impact: Jasper wildfire reduced H2’24 adjusted EBITDA by ~$15M; revenue also affected in Q3 and trailing into Q4 .
  • Higher interest expense and unusual items: 2024 net loss from continuing ops ($57.1M) includes $47.6M impairments and $3.2M restructuring; interest expense elevated from revolver balances and write-off of issuance costs prior to payoff .

Financial Results

Segment Adjusted EBITDA (Quarterly)

KPI Highlights (FY unless noted)

Additional context:

• Q4 ex-Jasper revenue +15.3% y/y .
• Seasonality remains pronounced: Q3 Adjusted EBITDA $82.9M vs Q4 $(11.2)M .

Guidance Changes

Assumptions include Jasper travel recovery, $5–$7M EBITDA from late-2024 tuck-ins, and continued demand for authentic experiential travel .

Earnings Call Themes & Trends

Management Commentary

• “We expect to deliver double digit growth in revenue and adjusted EBITDA in 2025.” — David Barry, CEO .
• “The elimination of our high-cost Term Loan B debt and the preferred stock will save us approximately $40,000,000 annually.” — Ellen Ingersoll, CFO .
• “Impairment charges… $27,500,000 asset write down related to FlyOver Las Vegas and a $14,000,000 goodwill write off related to the FlyOver collection… due to slower-than-expected ramping, particularly at the Las Vegas location.” — Ellen Ingersoll, CFO .
• “We expect to recover, if not exceed, the $15,000,000 of EBITDA that was lost in 2024 due to the [Jasper] wildfire.” — Michael (Beau) Heitz, CFO .
• “We’ve identified more than $200,000,000 of refresh and build investments… over the next five years.” — David Barry, CEO .

Q&A Highlights

• Capex cadence vs. $200M pipeline: Management balancing internal refresh/build with buy-side pipeline; liquidity ample but pacing remains disciplined .
• Apgar (Glacier NP) acquisitions: Contiguous assets open opportunities for integrated refresh across lodging, F&B, retail; increased visitor traffic after gate relocation; plans forthcoming .
• FX: FY25 includes CAD/USD 0.69; ~$7M EBITDA translation headwind; potentially positive demand effects for Canada with weaker CAD .
• Guidance/Corporate costs: FY25 EBITDA guidance includes corporate; ~21% FY24 margin, moving to ~25% at guide midpoint; corporate baseline ~$12–13M with SG&A efficiency focus .
• Leverage/M&A: Immediate liquidity ~$250M (cash + revolver); long-term net leverage target 2.5x–3.5x for the right opportunities .

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 and FY 2024 was unavailable at the time of preparation due to a temporary access limit, so we cannot present vs-consensus comparisons. Future updates will default to S&P Global consensus when accessible.

Key Takeaways for Investors

• 2025 setup is constructive: double-digit revenue and EBITDA growth targeted, with mid-20s EBITDA margins at guidance midpoint as wildfire headwinds subside and operating leverage returns .
• Balance sheet strength enables offense: ~$250M liquidity, undrawn $200M revolver, and net leverage ≈0 support refresh/build execution and opportunistic M&A; management comfortable up to 2.5x–3.5x net leverage for the right deals .
• Watch Jasper recovery through peak season: management expects EBITDA to recover if not exceed ~$15M lost in 2024—key driver of year-over-year margin expansion .
• Monitor Flyover Las Vegas trajectory: Q4 impairments reflect revised growth expectations; ramp stabilization and marketing effectiveness are execution watchpoints .
• FX is a known swing factor: translation headwind (~$7M) embedded in guide; demand could benefit from weaker CAD—track booking pace and US/international mix .
• Capex discipline with growth bias: 2025 growth capex $38–$43M and total capex $70–$75M; focus on high-ROI refresh/build projects and integration of Q4 tuck-ins ($5–$7M EBITDA in 2025) .
• Seasonality remains material: Q3 is the earnings engine; quarterly prints will be volatile—focus on FY trajectory and execution against guidance .

Citations:

• 8-K press release and financial tables:
• Q4 2024 earnings call transcript: