Executive Summary

Q4 delivered 17.6% revenue growth to $291.7M and swung to positive adjusted EBITDA of $14.5M (up $16.5M YoY), topping the high-end of prior guidance; GAAP net loss widened due to a prior-year gain and higher taxes .
Management introduced robust 2024 guidance: consolidated adjusted EBITDA $171–$191M (+16%–30% YoY), with Pursuit at $105–$115M (~30% margin target) and GES at $80–$90M (~8.5% margin); Q1 guide implies seasonality at Pursuit and solid GES profitability .
Segment momentum: Pursuit revenue +23.6% with attractions visitors +23% and higher ticket price; GES revenue +16.6% with strong flow-through, aided by non-annual shows and improving event sizes .
2024 catalysts: Opening of FlyOver Chicago (March), ~$65M incremental non-annual shows (IMTS, MINExpo, Farnborough, largely Q3), continued recovery of exhibition square footage, and pursuit of 30%+ margins at Pursuit .

What Went Well and What Went Wrong

What Went Well
- Pursuit posted strong Q4 growth: attractions ticket revenue +34% on +23% visitors and higher ticket pricing; visitation strong in Western Canada and Iceland (Sky Lagoon) .
  “Our attractions are built for volume and revenue from every incremental guest flows through at a high rate to our bottom line.” — David Barry
- GES outperformed with Q4 adjusted EBITDA +$13.9M YoY on +16.6% revenue; underlying growth ~20% ex non-annual/ON Services, plus COP28 win in Q4 .
  “We expect GES to deliver full year revenue growth in the low double-digit range [in 2024]” — Steven Moster
- 2024 outlook raised expectations: consolidated adjusted EBITDA +16%–30%, strong cash from operations ($120–$140M) and capex discipline, with continued deleveraging .
What Went Wrong
- GAAP net loss widened in Q4 to $(15.3)M due to the prior-year $19.6M gain on sale of ON Services and higher tax expense despite better operating performance .
- Pursuit remained seasonally negative on EBITDA in Q4 (–$8.3M), though improved YoY on higher revenue .
- Higher interest expense and elevated effective tax rate (Q4 ETR –48.3% due to valuation allowance dynamics) pressured GAAP bottom line and complicate modeling .

Financial Results

Consolidated results by quarter (oldest → newest)

Metric	Q2 2023	Q3 2023	Q4 2023
Revenue ($M)	$320.3	$365.9	$291.7
Adjusted EBITDA ($M)	$42.9	$86.3	$14.5
Net Income Attributable to Viad ($M)	$11.0	$41.3	$(15.3)
Adjusted Net Income (Loss) ($M)	$11.8	$43.3	$(14.6)
Diluted EPS (GAAP)	—	—	$(0.83)
Adjusted Diluted EPS	—	—	$(0.79)

Segment breakdown (Q4 2023 vs. Q4 2022)

Segment	Q4 2022	Q4 2023
Pursuit Revenue ($M)	$34.1	$42.2
GES Revenue ($M)	$213.9	$249.5
• Spiro Revenue ($M)	$72.1	$83.6
• GES Exhibitions Revenue ($M)	$143.6	$168.3
Pursuit Adjusted EBITDA ($M)	$(11.3)	$(8.3)
GES Adjusted EBITDA ($M)	$12.7	$26.6
• Spiro Adjusted EBITDA ($M)	$5.8	$12.5
• GES Exhibitions Adjusted EBITDA ($M)	$6.9	$14.1
Corporate Adjusted EBITDA ($M)	$(3.5)	$(3.7)
Consolidated Adjusted EBITDA ($M)	$(2.0)	$14.5

Selected Q4 2023 operating KPIs (Pursuit)

KPI	Q4 2023	YoY
Attraction Visitors (000s)	549.0	+23.0%
Same-Store Effective Ticket Price	$38	+7.8%
Same-Store Lodging RevPAR	$66	+2.5%

Cash flow and balance sheet highlights (as of/for Q4 & FY23)

Q4 cash from operations outflow $9.8M; FY23 inflow $106.7M .
Q4 capex $23.6M ($20.3M Pursuit; $3.2M GES); FY23 capex $78.3M ($64.6M Pursuit; $13.6M GES) .
Year-end liquidity $160.7M (cash $52.7M; revolver availability ~$108.0M); total debt $462.1M; net leverage 2.6x .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Revenue	Q1 2024	— (initial 2024 outlook)	$260–$284M	Introduced
Consolidated Adjusted EBITDA	Q1 2024	—	$(0.5)–$7.5M	Introduced
Consolidated Cash from Operations	Q1 2024	—	$5–$15M	Introduced
Consolidated Capex	Q1 2024	—	$25–$30M (incl. ~$10M growth)	Introduced
Consolidated Revenue	FY 2024	—	Up high-single to low-double digits	Introduced
Consolidated Adjusted EBITDA	FY 2024	—	$171–$191M	Introduced
Consolidated Cash from Operations	FY 2024	—	$120–$140M	Introduced
Consolidated Capex	FY 2024	—	$65–$70M (incl. ~$20M growth)	Introduced
Pursuit Revenue	Q1 2024	—	$35–$39M	Introduced
Pursuit Adjusted EBITDA	Q1 2024	—	$(12)–$(8)M	Introduced
Pursuit Revenue	FY 2024	—	Up mid-single digits	Introduced
Pursuit Adjusted EBITDA	FY 2024	—	$105–$115M (~30% margin target)	Introduced
GES Revenue	Q1 2024	—	$225–$245M	Introduced
GES Adjusted EBITDA	Q1 2024	—	$15–$19M	Introduced
GES Revenue	FY 2024	—	Up low-double digits	Introduced
GES Adjusted EBITDA	FY 2024	—	$80–$90M (~8.5% margin)	Introduced

Notes: ~$65M incremental revenue from non-annual shows in 2024 (primarily Q3) underpin GES outlook ; major shows include IMTS, MINExpo, Farnborough .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2023, Q3 2023)	Current Period (Q4 2023)	Trend
International tourism & Pursuit demand	Q2: Strong visitation, ticket revenue +25%, Canadian attractions up; lodging RevPAR drivers and booking pace strength . Q3: Record Q3 revenue/EBITDA; attractions visitors +15%; Western Canada strength .	Q4: Attractions ticket revenue +34% on +23% visitors; continued strength in Western Canada and Iceland; 2024 same-store growth expected (visitation low double-digit; ETP mid-single-digit) .	Improving
GES same-show & event size recovery	Q2: U.S. same-show revenue ~98.5% of 2019; square footage ~86% . Q3: Recovery continued; 2024 stronger with non-annual shows .	Q4: Q4 revenue +16.6%; COP28 win; 2024 low double-digit growth; maintain ~8.5% margin even in odd years targeted longer term .	Improving
Non-annual shows cadence	Q3: ~$70M 2024 benefit expected .	2024 ~$65M incremental revenue; named IMTS, MINExpo, Farnborough in Q3 .	Positive
Pursuit margins	Q2/Q3: Path to 30%+ EBITDA margin reiterated .	2024 target ~30%; longer-term aspiration ~33% sustainable .	Improving
Spiro (experiential) growth	Q2: Investments to build capability; client wins; B2C sports marketing entry . Q3: New clients; budgets above 2019 .	Q4: Strong Q4 EBITDA uplift at Spiro; momentum to 2024 .	Improving
Cash flow & leverage	Q3: Expect strong 2024 operating cash flow; debt paydown via revolver flexibility .	FY24 CFO $120–$140M; net leverage 2.6x at YE; plan to reduce debt while funding selective Pursuit growth .	Improving

Management Commentary

“We delivered strong fourth quarter and full year results, with consolidated revenue and adjusted EBITDA exceeding the high-end of our guidance.” — Steve Moster, CEO .
“We expect full year consolidated adjusted EBITDA…up approximately 16% to 30% in 2024 with strong free cash flow.” — Steve Moster .
“Pursuit’s adjusted EBITDA margin improved by about 370 basis points…In 2024, we expect…~30%.” — David Barry, President of Pursuit .
“GES…Achieving a 7.7% adjusted EBITDA margin in 2023…With a strong non-annual show schedule in ’24…~8.5% this year.” — Steve Moster .
“We ended 2023 with total liquidity of $160.7 million…full year cash flow from operations…$106.7 million.” — Ellen Ingersoll, CFO .

Q&A Highlights

Non-annual shows timing: IMTS, MINExpo, and Farnborough, largely Q3 2024 .
Iceland dynamics: Sky Lagoon benefited from Blue Lagoon closures (no proximity risk), introducing new guests to the brand .
Pursuit margin drivers: High flow-through from attractions volume; execution and pricing support 30% margin goal .
2024 growth capex: ~$20M at Pursuit with ~$6M for Chicago and targeted capacity/experience expansions (e.g., Maligne Lake boat, Sky Lagoon ritual expansion) .
GES margins in off-cycle years: Expectation to maintain ~8%+ even without large non-annuals, supported by lean initiatives and same-show growth .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2023 EPS and revenue was unavailable in our system for VVI at the time of this analysis; therefore, a beat/miss versus consensus cannot be shown.
We will update vs-estimate comparisons once CIQ mapping becomes available in S&P Global feeds.

Key Takeaways for Investors

Pursuit demand and pricing power remain robust; scaling volume at attractions drives outsized EBITDA flow-through and supports the ~30% 2024 margin target (aspiration to 33%) .
GES has structurally improved margins via ~$50M SG&A reductions and lean initiatives; 2024 benefits from ~$65M non-annuals and continued same-show recovery, targeting ~8.5% EBITDA margin .
2024 guide is materially constructive (EBITDA +16%–30%), with strong operating cash flow and room to delever while funding selective high-return Pursuit projects .
Q4 GAAP loss was driven by non-operational comparisons (prior-year gain, tax), while underlying adjusted EBITDA improved; investors should focus on adjusted metrics and FY24 cash generation .
Near-term catalysts: FlyOver Chicago opening (March), Q3 non-annual mega-shows, continued recovery of exhibition square footage, and booking pace/ADR strength at Pursuit .

VIAD CORP (VVI)·Q4 2023 Earnings Summary