Viad Corp Announces Date of Conference Call to Review First Quarter 2020 Preliminary Results, Waiver of Financial Covenants, ...
May 11 2020 - 8:00AM
Business Wire
Highlights
- Conference call to review preliminary first quarter 2020
financial results to be held Thursday, May 14, 2020 at 5:00 p.m.
Eastern Time
- Financial covenants waived for second quarter of 2020
- Form 10-Q filing to be delayed up to 45 days
Viad Corp (NYSE: VVI) will hold a conference call to review
preliminary financial results for our 2020 first quarter on
Thursday, May 14, 2020 at 5:00 p.m. Eastern Time. The call will be
hosted by President and Chief Executive Officer Steve Moster and
Chief Financial Officer Ellen Ingersoll, who will be joined by
President of Pursuit David Barry. During the call, we will also
provide an update on COVID impacts and our liquidity. We will issue
a press release outlining our preliminary financial results and
updates on that date and will also post it on our website at
www.viad.com prior to the call.
Conference Call Details
To join our live
teleconference on Thursday, May 14, 2020 at 5:00 p.m. Eastern Time,
please call (833) 513-0557 and enter the passcode 2041759 or access
the webcast through our website. A replay will be available for a
limited time at (800) 585-8367 or (416) 621-4642, passcode 2041759,
or visit our website and link to a replay of the
webcast.
Waiver of Financial Covenants
On May 8, 2020, we amended the
credit agreement for our $450 million revolving credit facility to
suspend the testing of the interest coverage ratio and the leverage
ratio for the fiscal quarter ending June 30, 2020. The amendment
also adds a new minimum liquidity covenant, in addition to other
reporting requirements, and extends the deadline for delivery of
our quarterly financial statements for the 2020 first
quarter. In addition, the
amendment sets the applicable interest rate during the covenant
waiver period to, at our option: (a) a customary base rate formula,
plus a margin of 2.50% per annum (subject to a base rate floor of
2.00%) or (b) a customary eurocurrency rate formula, plus a margin
of 3.50% per annum (subject to a eurocurrency rate floor of
1.00%).
Delay of First Quarter 2020 Form 10-Q Filing
The impact of COVID-19 on our business has resulted in the need
to perform additional asset impairment testing and other complex
financial analysis, which will delay the filing of our first
quarter Form 10-Q. We expect to file our Form 10-Q no later than
June 25, 2020, which is 45 days after the original due date of May
11, 2020. The preliminary financial results we expect to provide on
Thursday, May 14, 2020 will therefore not include impairment
charges and the corresponding tax effects, which are currently
being evaluated. We do not expect the non-cash impairment charges
to impact future operations or affect our liquidity or compliance
with debt covenants. However, we expect the impact on Viad’s
reported GAAP financial results to be material.
Forward-Looking Statements
This press release contains a number of forward-looking
statements. Words, and variations of words, such as “will,” “may,”
“expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,”
“estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,”
“target,” “outlook,” and similar expressions are intended to
identify our forward-looking statements. Similarly, statements that
describe our business strategy, outlook, objectives, plans,
intentions or goals also are forward-looking statements. These
forward-looking statements are not historical facts and are subject
to a host of risks and uncertainties, many of which are beyond our
control, which could cause actual results to differ materially from
those in the forward-looking statements.
Important factors that could cause actual results to differ
materially from those described in our forward-looking statements
include, but are not limited to, the following:
- the effects of the COVID-19 pandemic on our business;
- the impact of the pandemic and actions taken in response to the
pandemic on global and regional economies, travel and economic
activity;
- the pace of recovery when the COVID-19 pandemic subsides;
- general economic uncertainty in key global markets and a
worsening of global economic conditions;
- our ability to successfully integrate and achieve established
financial and strategic goals from acquisitions;
- our dependence on large exhibition event clients;
- the importance of key members of our account teams to our
business relationships;
- the competitive nature of the industries in which we
operate;
- travel industry disruptions;
- unanticipated delays and cost overruns of our capital projects,
and our ability to achieve established financial and strategic
goals for such projects;
- seasonality of our businesses;
- transportation disruptions and increases in transportation
costs;
- natural disasters, weather conditions, and other catastrophic
events;
- our multi-employer pension plan funding obligations;
- our exposure to labor cost increases and work stoppages related
to unionized employees;
- liabilities relating to prior and discontinued operations;
- adverse effects of show rotation on our periodic results and
operating margins;
- our exposure to currency exchange rate fluctuations;
- our exposure to cybersecurity attacks and threats;
- 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;
- the effects of the United Kingdom’s exit from the European
Union; and
- changes affecting the London Inter-bank Offered Rate.
For a more complete discussion of the risks and uncertainties
that may affect our business or financial results, please see Item
1A, “Risk Factors,” of our most recent annual report on Form 10-K
filed with the SEC. We disclaim and do not undertake any obligation
to update or revise any forward-looking statement in this press
release except as required by applicable law or regulation.
About Viad
Viad (NYSE: VVI) generates revenue and shareholder value through
two businesses: Pursuit and GES. Pursuit is a collection of
inspiring and unforgettable travel experiences in Alaska, Montana,
the Canadian Rockies, Vancouver, and Reykjavik, with new
experiences in development in Las Vegas, Reykjavik, and Toronto.
Pursuit’s collection of experiences includes attractions, lodges
and hotels, and sightseeing tours that connect guests with iconic
places. GES is a global, full-service live events company offering
a comprehensive range of services to the world's leading brands and
event organizers. Our business strategy focuses on providing
superior experiential services to our customers and sustainable
returns on invested capital to our shareholders. Viad is an S&P
SmallCap 600 company. For more information, visit www.viad.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200511005308/en/
Carrie Long Investor Relations (602) 207-2681 ir@viad.com
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