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VIAD CORP (VVI)·Q3 2024 Earnings Summary

Executive Summary

  • Strong quarter driven by GES; consolidated revenue rose 24.5% YoY to $455.7M and Adjusted EBITDA increased 19.6% to $103.1M; GAAP diluted EPS was $1.65 and adjusted diluted EPS $2.01 .
  • GES outperformed on timing of major non-annual shows (IMTS/MINExpo), with revenue +52.8% YoY to $273.4M and Adjusted EBITDA +$22.2M to $20.2M, expanding margins via disciplined cost management .
  • Pursuit’s reported revenue declined 2.5% YoY to $182.3M on Jasper wildfire disruptions, but ex-Jasper revenue grew ~13% YoY; Pursuit Adjusted EBITDA was $86.3M (−$5.5M YoY) with a 47.4% margin .
  • FY24 guidance tightened/higher: consolidated Adj. EBITDA $163–$172M (from $151–$176M), Pursuit $87–$92M (narrowed), GES $90–$95M (raised low end); ETR increased to 35–36% (from 28–29%) .
  • Strategic catalyst: sale of GES to Truelink Capital for $535M targeted to close Dec 31, 2024; proceeds expected to retire high-cost debt (~$30M annual interest savings), repositioning Viad as a pure-play Pursuit with capacity to accelerate Refresh/Build/Buy .

What Went Well and What Went Wrong

  • What Went Well

    • GES delivered outsized growth from major non-annual shows (~$104M incremental revenue) and margin expansion: “We successfully serviced our major non-annual shows… and remain focused on disciplined cost management.” — CEO Steve Moster .
    • Pursuit ex-Jasper resilience: revenue +13% YoY, with same-store attractions ticket revenue +16% and hospitality RevPAR +9% on pricing power and demand .
    • Strong cash generation: $110M operating cash flow in Q3, enabling $93.7M net debt repayments; quarter-end liquidity ~$229M .

  • What Went Wrong

    • Jasper wildfire disruption cut Pursuit revenue by ~$21.9M YoY in Q3, pressuring segment EBITDA (−$5.5M YoY) despite strength elsewhere .
    • Non-cash impairments ($6.1M) tied to FlyOver Toronto lease termination and a Jasper asset loss; transaction-related costs rose with pending GES sale .
    • Higher FY effective tax rate (35–36%) vs prior 28–29%; BI insurance proceeds timing uncertain (to appear in P&L starting Q4) .

Financial Results

Consolidated performance

MetricQ3 2023Q2 2024Q3 2024
Revenue ($M)$365.9 $378.5 $455.7
Net Income Attributable to Viad ($M)$41.3 $29.3 $48.6
Diluted EPS ($)$1.41 $0.97 $1.65
Adjusted Net Income ($M)$43.3 $29.2 $58.8
Adjusted Diluted EPS ($)$1.49 $0.97 $2.01
Consolidated Adjusted EBITDA ($M)$86.3 $64.3 $103.1

Segment performance

MetricQ3 2023Q3 2024
Pursuit Revenue ($M)$186.9 $182.3
Pursuit Adjusted EBITDA ($M)$91.8 $86.3
Pursuit Adjusted EBITDA Margin (%)49.1% 47.4%
GES Revenue ($M)$179.0 $273.4
GES Adjusted EBITDA ($M)$(2.0) $20.2
GES Adjusted EBITDA Margin (%)(1.1%) 7.4%

KPIs (Q3 2024)

KPIQ3 2024 LevelYoY Change
Pursuit Attraction Visitors (000s)1,624.4−3%
Same-Store Attraction Effective Ticket Price$51+14%
Same-Store Hospitality RevPAR$265+9%
Major Non-Annual Show Revenue (GES)$104.4Mn/a (incremental)
U.S. Exhibition Same-Show Revenue (GES)$37.2M−3.2%
Operating Cash Flow (Q3)$110Mn/a
Capex (Q3)~$15Mn/a

Notes: Pursuit ex-Jasper revenue +13.1% YoY; Jasper-specific Q3 revenue declined ~$21.9M YoY .

Guidance Changes

MetricPeriodPrevious Guidance (Q2 release)Current Guidance (Q3 release)Change
Consolidated Adjusted EBITDA ($M)FY 2024$151–$176 $163–$172 Narrowed; midpoint higher
Consolidated RevenueFY 2024Up high-single digits Up high-single to low-double digits Raised qualitatively
Cash from Operations ($M)FY 2024$80–$100 $90–$100 Raised low end
Capital Expenditures ($M)FY 2024$65–$70 (incl. ~$20 growth) $65–$70 (incl. ~$20 growth) Maintained
Effective Tax RateFY 202428%–29% 35%–36% Raised
Pursuit Adjusted EBITDA ($M)FY 2024$80–$95 $87–$92 Narrowed
GES Adjusted EBITDA ($M)FY 2024$85–$95 $90–$95 Raised low end
Consolidated Revenue ($M)Q4 2024n/a$240–$260 New
Consolidated Adj. EBITDA ($M)Q4 2024n/a$(9)–$0 New
Pursuit Revenue/Adj. EBITDA ($M)Q4 2024n/a$40–$45 / $(12)–$(7) New
GES Revenue/Adj. EBITDA ($M)Q4 2024n/a$200–$215 / $6–$11 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2024)Trend
Jasper wildfire impact & recoveryQ2: Estimated $20–$25M FY24 EBITDA headwind; reopening assumptions; strong tour/travel demand; no material Banff cancellations . Q1: n/a.7 of 8 Jasper hotels reopened in Q3; Sept visitation at Columbia Icefield ~5% below 2023; Q4 Jasper room nights ~90% of prior year; 1Q25 pacing slightly higher; compression expected due to ~18% room stock loss .Rapid operational recovery; supportive demand; compression tailwind into 2025.
Insurance proceeds & accountingQ2: BI tied to property damage; lengthy process anticipated .~$6M insurance recovered to date ($4.7M in Q3); on balance sheet; BI proceeds to be shown in P&L starting Q4 .Visibility improving; P&L impact to begin Q4.
GES sale & capital structureQ2: Focus on scaling Pursuit; not yet announcing sale; margin expansion plan at GES .Sale to Truelink for $535M on track for Dec 31 close; repay Term Loan B; ~$30M annual interest savings; Viad to relaunch as Pursuit (NYSE: PRSU) .Transformational separation imminent; balance sheet to reset.
Pricing power & demandQ1/Q2: Strong attractions pricing/visitation; same-store ETP +16% (Q2); RevPAR +9% (Q2) .Q3 same-store ETP +14%, hospitality RevPAR +9%; demand robust outside Jasper .Continuing favorable mix/price.
FlyOver strategyQ2: Chicago opened strong; Toronto lease termination; Las Vegas competitive dynamics .Chicago “on a positive track”; no near-term capital for new FlyOver locations; focus on iconic locations .Shift to capital-light optimization; no new FlyOver builds near-term.
Margin outlook (Pursuit)Q1: Pursuit margin expansion path; 30% FY target within reach longer term .2025 Pursuit EBITDA margin around 30% (ex-public company burden); stand-alone costs ~$12–13M .Confident multi-year margin trajectory.

Management Commentary

  • “We delivered another quarter of strong operational and financial results at both Pursuit and GES... GES’ outperformance was largely driven by successful execution at our major non-annual shows and disciplined cost management.” — CEO Steve Moster .
  • “Outside of Jasper, Pursuit's revenue grew approximately 13% during the quarter from the significant demand for our unforgettable experiences.” — CEO Steve Moster .
  • “We generated $110 million of cash from operations, spent $15 million on capital expenditures and repaid $94 million of debt during the third quarter.” — CFO Ellen Ingersoll .
  • “Our Jasper room night reservations on the books for the fourth quarter are at about 90% of the prior year, and our first quarter 2025 reservations are tracking slightly higher than 2024.” — Pursuit President David Barry .
  • “We are on track to complete the transformative sale of GES by the end of the year... This transaction will establish Pursuit as a pure-play, high-growth and high-margin business.” — CEO Steve Moster .

Q&A Highlights

  • FlyOver strategy: Chicago performing positively and contributing to EBITDA; no plans to deploy capital into new FlyOver locations near term given focus on iconic-location platform .
  • Jasper demand and tour/travel: Expect 2025 travel trade revenue in Jasper to be up ~12% vs 2023; market compression likely given ~18% reduction in room inventory; strong pacing into 1Q25 .
  • Transaction costs timeline: ~$20M by year-end 2024; additional $5–$6M in 2025 for transition (e.g., IT, retention) .
  • Insurance proceeds accounting: ~$6M collected to date; recorded on balance sheet; BI recoveries to be presented as separate P&L line starting Q4 .
  • 2025 Pursuit margin: Targeting around 30% (pre stand-alone cost burden), consistent with long-term expansion path .

Estimates Context

  • S&P Global consensus (EPS and revenue) for Q3 2024 was unavailable for VVI due to a mapping constraint in the S&P CIQ company table; as a result, we cannot quantify beat/miss vs Wall Street consensus at this time. We will update comparisons once mapping is restored.
  • Management’s FY24 guidance was raised/tightened (Consolidated Adj. EBITDA $163–$172M; Pursuit $87–$92M; GES $90–$95M), implying potential upward estimate revisions for GES and consolidated EBITDA, partially offset by a higher tax rate (35–36%) .

Key Takeaways for Investors

  • GES-driven upside with non-annual shows and structural margin gains; 2024 GES Adj. EBITDA guided to $90–$95M, above 2023 and prior low-end guide, supporting durability into 2025 .
  • Pursuit is showing underlying strength (ex-Jasper +13% revenue, strong ETP/RevPAR) despite wildfire disruptions; 2025 set up for a rebound aided by market compression in Jasper and continued pricing power .
  • Balance sheet inflection ahead: GES sale proceeds expected to eliminate high-cost debt (~$30M interest savings), fund growth investments, and relaunch as Pursuit (PRSU), likely a key narrative/valuation catalyst at year-end close .
  • Watch Q4: BI insurance proceeds to begin appearing in P&L; Q4 consolidated Adj. EBITDA guided to $(9)–$0 (seasonal trough) with GES offsetting seasonal Pursuit losses .
  • Capex discipline maintained ($65–$70M FY, ~$20M growth), while tuck-in M&A continues (Glacier National Park acquisition) and a pipeline of ~$200M refresh/build opportunities positions multi-year growth .
  • Tax headwind (35–36% FY ETR) reduces EPS conversion near term; however, lower leverage post-transaction should enhance equity optionality and M&A capacity .
  • Near-term trading setup: end-of-year GES close/renaming, BI proceeds cadence, and Jasper booking recovery updates are the likely stock-moving data points over the next 1–2 quarters .