Strengthens Liquidity Position and Enhances
Financial Flexibility
- Secured up to $180 million investment from Crestview
Partners and amended credit facility to provide financial covenant
relief until September 30, 2022
- GES continues to minimize costs while supporting clients
with virtual events and plans for future event activity
- Pursuit experiences are open and welcoming guests with focus
on local and regional visitors
Viad Corp (NYSE: VVI) today reported financial results for the
second quarter of 2020, as well as provided updates regarding the
business and actions taken to bolster liquidity and secure
financial flexibility.
Business Update
Steve Moster, president and chief executive officer, commented,
“The second quarter was unlike any other quarter we have
experienced. I want to thank our teams for their actions to support
our businesses during this unprecedented time. As the COVID
pandemic and government actions halted services across our
business, we made swift and difficult decisions with an immediate
focus on cash flows and the health and safety of our team members,
clients, guests, and communities. We essentially placed our
business into a state of hibernation and took a host of other
actions to preserve liquidity, including securing additional
capital of $180 million and amending our credit facility for
longer-term covenant relief.”
“With the lifting of government mandated closures and
stay-at-home orders, Pursuit got back to business with a phased
re-opening of our attractions and lodging operations starting in
May and continuing into July,” continued Moster. “Most experiences
are currently open and welcoming guests primarily from our local
and regional markets in North America and international visitors in
Iceland. Despite ongoing border closures and other restrictions, we
are seeing continued demand for Pursuit’s attractions and hotels as
the summer tourism season progresses.”
“At GES, the live event market remains largely closed and our
primary focus remains on minimizing the cash burn. We continue to
operate at near hibernation levels, supporting clients with virtual
events and planning for future events. Given the uncertainty we
continue to see around event activity and industry recovery, we
have a sharp focus on our transformation efforts to ensure GES
emerges as a leaner and more profitable business. We will continue
controlling the things that we can control, and we stand ready to
re-activate areas of GES as it is prudent to do so,” concluded
Moster.
Second Quarter 2020 Results
Revenue was $30.9 million, down 92.3% from the 2019 second
quarter reflecting the acute impact of the COVID-19 pandemic that
halted event activity and forced closures across Pursuit’s
collection of experiences. Net loss attributable to Viad was $206.3
million, versus income of $13.8 million in the 2019 second quarter.
The 2020 net loss included non-cash impairment charges of $114.0
million and unfavorable tax matters of $37.9 million, which
includes a valuation allowance of $25.5 million against deferred
tax assets and a reversal of the $12.4 million tax benefit recorded
on impairment charges during the first quarter. Adjusted segment
operating loss* was $48.9 million, versus income of $47.3 million
in the prior year quarter, and adjusted segment EBITDA* was
negative $35.1 million, versus positive $61.8 million in the 2019
second quarter.
* Refer to Table 2 of this press release for a discussion and
reconciliation of this non-GAAP financial measure to its most
directly comparable GAAP financial measure.
Cash was $154.2 million and debt totaled $475.1 million at June
30, 2020. Cash flow from operations was an outflow of $26.5
million, which included favorable changes in working capital of
approximately $17 million. Cash flow from investing activities was
an inflow of $20.1 million, with proceeds from insurance policies
and the sale of assets of $29.3 million offsetting capital
expenditures of $9.3 million. Return of capital during the quarter
was $2.0 million, representing the regular quarterly dividend
declared in February. Future dividend payments have since been
suspended.
Moster said, “I am very proud of our team for responding rapidly
to the challenges of the COVID pandemic. After fully drawing on our
revolver at the beginning of April, we entered the second quarter
with $162 million of cash. And we limited our subsequent cash
outflow during the quarter to about $8 million through aggressive
cost reductions, diligent working capital management, the
monetization of certain non-operating assets, and the phased
re-opening of Pursuit’s experiences.”
Moster concluded, “Given the evolving, uncertain nature of
COVID-19, it is impossible to predict how the pandemic and
government reactions will continue to impact the events industry
and the broader travel market. Accordingly, we will not be
re-issuing financial guidance at this time.”
Liquidity Update and Response to COVID-19 Pandemic
On August 5, 2020, the Company announced that Crestview Partners
made an initial investment of $135 million in newly issued
perpetual convertible preferred stock, with a delayed draw
commitment of up to an additional $45 million. We also announced an
amendment to our credit facility that provides for the waiver of
existing leverage ratio and interest coverage tests until the third
quarter of 2022. That press release can be accessed on our website
at www.viad.com.
On a pro forma basis, our liquidity position at June 30, 2020
would have been approximately $340 million when factoring in the
total $180 million investment commitment from Crestview, $17
million of proceeds received in July from our sale of a GES
warehouse, and fees and expenses related to the equity raise and
credit facility amendment.
“We believe the investment from Crestview and the extended
waiver period for our financial covenants provide us ample
financial flexibility and strength to not only endure what may be a
slow recovery within the event industry and a gradual return to
normal levels of leisure travel, but also to continue making
important investments to fuel the growth of Pursuit,” said Moster.
“We remain committed to closely managing cash flows and our
businesses to maximize value for our shareholders.”
In addition to our recent actions to secure additional liquidity
and obtain longer-term financial covenant relief under our credit
facility, we have taken various other measures including, but not
limited to the following:
- We implemented aggressive cost reduction actions, including
furloughs, layoffs, mandatory unpaid time off, and salary
reductions for all employees across the company.
- We raised a total of $46 million in cash proceeds from the
disposition of certain assets, including $25 million in May related
to the cash surrender value of life insurance policies and $17
million in July from the sale of a GES warehouse that we plan to
vacate in connection with our facility downsizing efforts.
- We eliminated discretionary spending, reduced maintenance
capital expenditures to essential levels, and paused spending on
the majority of growth projects.
- We suspended future dividend payments and share
repurchases.
- We took advantage of available governmental assistance programs
for wage and tax relief.
Conference Call Details
Viad will host a conference call on Thursday, August 6, 2020, at
9:00 a.m. (Eastern Time) to review second quarter 2020 results,
updates regarding the business, and actions taken to bolster
liquidity and financial flexibility. To join the live
teleconference, please call (833) 513-0557 and enter the passcode
5064298 or access the webcast through our website. A replay will be
available for a limited time at (800) 585-8367 or (416) 621-4642
and enter the passcode 5064298 or visit our website and link to a
replay of the webcast.
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, as well as new
experiences in development in Las Vegas and Toronto. Pursuit’s
collection 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.
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 impact of the COVID-19 pandemic on our financial condition,
liquidity, and cash flow;
- the extent to which the COVID-19 pandemic will affect our
ongoing business and the duration of those effects;
- our ability to obtain shareholder approval of, and satisfy
other conditions to, the delayed draw commitment, if
applicable;
- our ability to successfully integrate and achieve established
financial and strategic goals from acquisitions;
- general economic uncertainty in key global markets and a
worsening of global economic conditions;
- 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 and Item 1A, “Risk Factors,” of the Company’s
Quarterly Report on Form 10-Q for the quarterly period ended March
31, 2020. 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.
VIAD CORP AND SUBSIDIARIES TABLE ONE - QUARTERLY
RESULTS (UNAUDITED)
Three months ended June 30,
Six months ended June 30,
($ in thousands, except per share data)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Revenue: GES: North America
$
18,776
$
283,682
$
(264,906)
-93.4%
$
270,534
$
506,923
$
(236,389)
-46.6%
EMEA
7,808
69,505
(61,697)
-88.8%
50,524
123,881
(73,357)
-59.2%
Intersegment eliminations
(985)
(6,317)
5,332
84.4%
(2,974)
(9,007)
6,033
67.0%
Total GES
25,599
346,870
(321,271)
-92.6%
318,084
621,797
(303,713)
-48.8%
Pursuit
5,264
55,409
(50,145)
-90.5%
18,787
66,076
(47,289)
-71.6%
Total revenue
$
30,863
$
402,279
$
(371,416)
-92.3%
$
336,871
$
687,873
$
351,002)
-51.0%
Segment operating income (loss): GES: North America
$
(29,174)
$
30,589
$
(59,763)
**
$
(17,208)
$
31,197
$
(48,405)
** EMEA
(2,886)
4,664
(7,550)
**
(3,994)
5,799
(9,793)
** Total GES
(32,060)
35,253
(67,313)
**
(21,202)
36,996
(58,198)
** Pursuit
(17,692)
11,313
(29,005)
**
(37,966)
(1,682)
(36,284)
**
Segment operating income (loss)
(49,752)
46,566
(96,318)
**
(59,168)
35,314
(94,482)
** Corporate eliminations
16
17
(1)
-5.9%
32
33
(1)
-3.0%
Corporate activities (Note A)
(2,468)
(3,282)
814
24.8%
(3,257)
(5,115)
1,858
36.3%
Restructuring charges (Note B)
(260)
(4,455)
4,195
94.2%
(1,111)
(5,143)
4,032
78.4%
Impairment charges (Note C)
(114,020)
-
(114,020)
**
(202,400)
-
(202,400)
**
Legal settlement (Note D)
-
-
-
**
-
(8,500)
8,500
-100.0%
Pension plan withdrawal (Note E)
(462)
(15,508)
15,046
97.0%
(462)
(15,508)
15,046
97.0%
Other expense
(265)
(456)
191
41.9%
(684)
(911)
227
24.9%
Net interest expense (Note F)
(5,010)
(2,874)
(2,136)
-74.3%
(8,949)
(5,691)
(3,258)
-57.2%
Income (loss) from continuing operations before income taxes
(172,221)
20,008
(192,229)
**
(275,999)
(5,521)
(270,478)
** Income tax (expense) benefit (Note G)
(35,516)
(6,565)
(28,951)
**
(19,719)
1,030
(20,749)
** Income (loss) from continuing operations
(207,737)
13,443
(221,180)
**
(295,718)
(4,491)
(291,227)
** Income (loss) from discontinued operations (Note H)
(379)
460
(839)
**
(833)
173
(1,006)
** Net income (loss)
(208,116)
13,903
(222,019)
**
(296,551)
(4,318)
(292,233)
** Net (income) loss attributable to noncontrolling interest
1,634
(331)
1,965
**
2,967
89
2,878
** Net loss attributable to redeemable noncontrolling interest
204
252
(48)
-19.0%
721
276
445
**
Net income (loss) attributable to Viad
$
(206,278)
$
13,824
$
(220,102)
**
$
(292,863)
$
(3,953)
$
(288,910)
** Amounts Attributable to Viad Common Stockholders: Income
(loss) from continuing operations
$
(205,899)
$
13,364
$
(219,263)
**
$
(292,030)
$
(4,126)
$
(287,904)
** Income (loss) from discontinued operations (Note H)
(379)
460
(839)
**
(833)
173
(1,006)
**
Net income (loss)
$
(206,278)
$
13,824
$
(220,102)
**
$
(292,863)
$
(3,953)
$
(288,910)
** Diluted income (loss) per common share: Income (loss)
from continuing operations attributable to Viad common shareholders
$
(10.17)
$
0.65
$
(10.82)
**
$
(14.44)
$
(0.22)
$
(14.22)
** Income (loss) from discontinued operations attributable to Viad
common shareholders
(0.02)
0.02
(0.04)
**
(0.05)
0.01
(0.06)
**
Net income (loss) attributable to Viad common
shareholders
$
(10.19)
$
0.67
$
(10.86)
**
$
(14.49)
$
(0.21)
$
(14.28)
** Basic income (loss) per common share: Income (loss) from
continuing operations attributable to Viad common shareholders
$
(10.17)
$
0.65
$
(10.82)
**
$
(14.44)
$
(0.22)
$
(14.22)
** Income (loss) from discontinued operations attributable to Viad
common shareholders
(0.02)
0.02
(0.04)
**
(0.05)
0.01
(0.06)
**
Net income (loss) attributable to Viad common
shareholders
$
(10.19)
$
0.67
$
(10.86)
**
$
(14.49)
$
(0.21)
$
(14.28)
** Common shares treated as outstanding for income (loss)
per share calculations: Weighted-average outstanding common shares
20,282
20,143
139
0.7%
20,249
20,110
139
0.7%
Weighted-average outstanding and potentially dilutive common shares
20,282
20,266
16
0.1%
20,249
20,110
139
0.7%
** Change is greater than +/- 100 percent
VIAD CORP AND
SUBSIDIARIES
TABLE ONE - NOTES TO QUARTERLY
RESULTS
(UNAUDITED)
(A)
Corporate Activities — The
decrease in corporate activities expense during the three and six
months ended June 30, 2020 relative to 2019 was primarily due to
lower headcount and lower performance-based compensation expense as
we reduced our estimated performance achievement to zero as a
result of COVID-19.
(B)
Restructuring Charges —
Restructuring charges during the three and six months ended June
30, 2020 and 2019 were primarily related to the elimination of
certain positions at GES and Viad’s corporate office.
(C)
Impairment Charges — Due to the
impact of COVID-19 on our business, we performed interim
evaluations of goodwill as of March 31, 2020 and June 30, 2020.
During the first quarter of 2020, we recorded a non-cash goodwill
impairment charge of $72.7 million associated with GES U.S., GES
EMEA, and Pursuit’s Glacier Park Collection reporting units and we
recorded a non-cash impairment charge to other intangible assets of
$15.7 million related to our U.S. audio-visual production business.
During the second quarter of 2020, we recorded a full impairment
charge to the remaining GES goodwill balance of $113.1 million in
addition to a fixed asset impairment charge of $0.9 million.
(D)
Legal Settlement — During 2019,
we recorded a charge to resolve a legal dispute at GES involving a
former industry contractor.
(E)
Pension Plan Withdrawal — During
2019, we finalized the terms of a new collective-bargaining
agreement with the Teamsters 727 union. The terms included a
withdrawal from the under-funded Central States Pension Plan.
Accordingly, we recorded a charge of $15.5 million, which
represented the estimated present value of future contributions we
will be required to make to the plan as a result of this withdrawal
from the plan. Additionally, in 2020, we recorded $0.5 million
related to the withdrawal from one of our multi-employer plans.
(F)
Net Interest Expense — The
increase in net interest expense for the three and six months ended
June 30, 2020 relative to 2019 was primarily due to higher debt
balances in 2020.
(G)
Income Taxes — The effective tax
rate was a negative 21% for the three months ended June 30, 2020
and 33% for the three months ended June 30, 2019. The effective tax
rate was a negative 7% for the six months ended June 30, 2020 and
19% for the six months ended June 30, 2019. The negative effective
tax rates for the three and six months ended June 30, 2020 were due
to the recording of a valuation allowance this quarter against our
remaining U.S., UK, and other European net deferred tax assets of
$25 million, as well as no tax benefits on non-deductible goodwill
impairments and losses recognized in those jurisdictions.
(H)
Loss from Discontinued Operations
— Loss from discontinued operations during the three and six months
ended June 30, 2020 and 2019 was primarily related to legal
expenses related to previously sold operations.
Three months ended June 30,
Six months ended June 30,
($ in thousands, except per share data)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Net income (loss) attributable to Viad
$
(206,278)
$
13,824
$
(220,102)
**
$
(292,863)
$
(3,953)
$
(288,910)
** Less: Allocation to nonvested shares
-
(102)
102
-100.0%
-
-
-
**
Adjustment to the redemption value of
redeemable noncontrolling interest
(332)
(179)
(153)
-85.5%
(458)
(266)
(192)
-72.2%
Net income (loss) allocated to Viad common shareholders
$
(206,610)
$
13,543
$
(220,153)
**
$
(293,321)
$
(4,219)
$
(289,102)
** Weighted-average outstanding common shares
20,282
20,143
139
0.7%
20,249
20,110
139
0.7%
Basic income (loss) per common share attributable
to Viad common shareholders
$
(10.19)
$
0.67
$
(10.86)
**
$
(14.49)
$
(0.21)
$
(14.28)
** ** Change is greater than +/- 100 percent
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", "Adjusted Segment EBITDA" 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 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 and Adjusted Segment EBITDA provide 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 Segment 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 June 30,
Six months ended June 30,
($ in thousands)
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Income (loss) before other items: Net income (loss)
attributable to Viad
$
(206,278)
$
13,824
$
(220,102)
**
$
(292,863)
$
(3,953)
$
(288,910)
** (Income) loss from discontinued operations attributable to Viad
379
(460)
839
**
833
(173)
1,006
** Income (loss) from continuing operations attributable to Viad
(205,899)
13,364
(219,263)
**
(292,030)
(4,126)
(287,904)
** Restructuring charges, pre-tax
260
4,455
(4,195)
-94.2%
1,111
5,143
(4,032)
-78.4%
Impairment charges, pre-tax
114,020
-
114,020
**
202,400
-
202,400
**
Legal settlement, pre-tax
-
-
-
**
-
8,500
(8,500)
-100.0%
Pension plan withdrawal, pre-tax
462
15,508
(15,046)
-97.0%
462
15,508
(15,046)
-97.0%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
875
1,481
(606)
-40.9%
2,075
2,018
57
2.8%
Tax benefit on above items
(168)
(5,376)
5,208
96.9%
(636)
(7,795)
7,159
91.8%
Unfavorable tax matters
37,908
-
37,908
**
25,500
-
25,500
**
Net loss attributable to FlyOver Iceland noncontrolling interest
-
(252)
252
-100.0%
-
(276)
276
-100.0%
Income (loss) before other items
$
(52,542)
$
29,180
$
(81,722)
**
$
(61,118)
$
18,972
$
(80,090)
** (per diluted share)
Income (loss) before other
items: Net income (loss) attributable to Viad
$
(10.19)
$
0.67
$
(10.86)
**
$
(14.49)
$
(0.21)
$
(14.28)
** (Income) loss from discontinued operations attributable to Viad
0.02
(0.02)
0.04
**
0.05
(0.01)
0.06
** Income (loss) from continuing operations attributable to Viad
(10.17)
0.65
(10.82)
**
(14.44)
(0.22)
(14.22)
** Restructuring charges, pre-tax
0.01
0.22
(0.21)
-95.5%
0.05
0.25
(0.20)
-80.0%
Impairment charges, pre-tax
5.62
-
5.62
**
10.00
-
10.00
**
Legal settlement, pre-tax
-
-
-
**
-
0.42
(0.42)
-100.0%
Pension plan withdrawal, pre-tax
0.02
0.77
(0.75)
-97.4%
0.02
0.77
(0.75)
-97.4%
Acquisition-related costs and other non-recurring expenses, pre-tax
(Note A)
0.04
0.07
(0.03)
-42.9%
0.10
0.10
-
0.0%
Tax benefit on above items
-
(0.26)
0.26
-100.0%
(0.03)
(0.37)
0.34
91.9%
Unfavorable tax matters
1.87
-
1.87
**
1.26
-
1.26
**
Adjustment to the redemption value of redeemable noncontrolling
interest
0.02
-
0.02
**
0.02
-
0.02
**
Net loss attributable to FlyOver Iceland noncontrolling interest
-
(0.01)
0.01
-100.0%
-
(0.01)
0.01
-100.0%
Income (loss) before other items
$
(2.59)
$
1.44
$
(4.03)
**
$
(3.02)
$
0.94
$
(3.96)
** ($ in thousands)
Adjusted EBITDA: Net
income (loss) attributable to Viad
$
(206,278)
$
13,824
$
(220,102)
**
$
(292,863)
$
(3,953)
$
(288,910)
** (Income) loss from discontinued operations attributable to Viad
379
(460)
839
**
833
(173)
1,006
** Impairment charges, pre-tax
114,020
-
114,020
**
202,400
-
202,400
** Interest expense
5,186
2,957
2,229
75.4%
9,204
5,872
3,332
56.7%
Income tax expense (benefit)
35,516
6,565
28,951
**
19,719
(1,030)
20,749
** Depreciation and amortization
13,850
14,527
(677)
-4.7%
29,135
27,715
1,420
5.1%
Other noncontrolling interest
(681)
(322)
(359)
**
(1,329)
(267)
(1,062)
**
Adjusted EBITDA
$
(38,008)
$
37,091
$
(75,099)
**
$
(32,901)
$
28,164
$
(61,065)
** (A) Acquisition-related costs and other
non-recurring expenses include:
Three months ended June 30,
Six months ended June 30,
2020
2019
$ Change
% Change
2020
2019
$ Change
% Change
Acquisition integration costs - Pursuit1
$
(10)
$
33
$
(43)
**
60
33
27
81.8%
Acquisition transaction-related costs - Pursuit1
-
86
(86)
-100.0%
(14)
271
(285)
**
Acquisition transaction-related costs - Corporate2
31
755
(724)
-95.9%
179
1,050
(871)
-83.0%
Attraction start-up costs1, 3
854
607
247
40.7%
1,850
664
1,186
**
Acquisition-related and other non-recurring expenses, pre-tax
$
875
$
1,481
$
(606)
-40.9%
$
2,075
$
2,018
$
57
2.8%
1 Included in segment operating income (loss) 2 Included in
corporate activities
3 Includes costs related to the development of Pursuit's new
FlyOver attractions in Iceland, Las Vegas, and Toronto and the Sky
Lagoon in Iceland.
** Change is greater than +/- 100 percent
VIAD CORP AND SUBSIDIARIES TABLE TWO -
NON-GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)
Organic - The term "organic" is used within this document
to refer to results without the impact of exchange rate variances
and acquisitions, if any, until such acquisitions are included in
the entirety of both comparable periods. The impact of exchange
rate variances (or "FX Impact") is calculated as the difference
between current period activity translated at the current period's
exchange rates and the comparable prior period's exchange rates.
Management believes that the presentation of "organic" results
permits investors to better understand Viad's performance without
the effects of exchange rate variances or acquisitions.
Three months ended June 30,
2020
Three months ended June 30,
2019
($ in thousands)
As Reported
Acquisitions (Note A)
FX Impact
Organic
As Reported
Acquisitions (Note A)
Organic
Viad Consolidated: Revenue
$
30,863
$
1,104
$
(396)
$
30,155
$
402,279
$
3,018
$
399,261
Net income (loss) attributable to Viad
$
(206,278)
$
13,824
Net income (loss) attributable to noncontrolling interest
(1,634)
331
Net loss attributable to redeemable noncontrolling interest
(204)
(252)
(Income) loss from discontinued operations
379
(460)
Income tax expense
35,516
6,565
Net interest expense
5,010
2,874
Other expense
265
456
Pension plan withdrawal
462
15,508
Impairment charges
114,020
-
Restructuring charges
260
4,455
Corporate activities expense
2,468
3,282
Corporate eliminations
(16)
(17)
Segment operating income (loss)
$
(49,752)
$
(1,787)
$
315
$
(48,280)
$
46,566
$
1,518
$
45,048
Attraction start-up costs (B)
854
-
-
854
607
-
607
Integration costs
(10)
(10)
-
-
33
33
-
Acquisition transaction-related costs
-
-
-
-
86
-
86
Adjusted segment operating income (loss)
(48,908)
(1,797)
315
(47,426)
47,292
1,551
45,741
Segment depreciation
11,478
931
(133)
10,680
11,098
255
10,843
Segment amortization
2,354
280
(19)
2,093
3,371
98
3,273
Adjusted segment EBITDA
$
(35,076)
$
(586)
$
163
$
(34,653)
$
61,761
$
1,904
$
59,857
Adjusted segment EBITDA attributable to noncontrolling interest
522
251
(2)
273
(647)
(711)
64
Adjusted segment EBITDA attributable to Viad
$
(34,554)
$
(335)
$
161
$
(34,380)
$
61,114
$
1,193
$
59,921
Adjusted segment operating margin ** **
-79.5%
**
11.8%
51.4%
11.5%
Adjusted segment EBITDA margin **
-53.1%
-41.2%
**
15.4%
63.1%
15.0%
GES: Revenue
$
25,599
$
-
$
(349)
$
25,948
$
346,870
$
-
$
346,870
Segment operating income (loss)
$
(32,060)
$
-
$
27
$
(32,087)
$
35,253
$
-
$
35,253
Integration costs
-
-
-
-
-
-
-
Adjusted segment operating income (loss)
(32,060)
-
27
(32,087)
35,253
-
35,253
Depreciation
5,485
-
(34)
5,519
6,322
-
6,322
Amortization
1,399
-
(3)
1,402
2,768
-
2,768
Adjusted segment EBITDA
$
(25,176)
$
-
$
(10)
$
(25,166)
$
44,343
$
-
$
44,343
Adjusted segment EBITDA attributable to noncontrolling interest
-
-
-
-
-
-
-
Adjusted segment EBITDA attributable to Viad
$
(25,176)
$
-
$
(10)
$
(25,166)
$
44,343
$
-
$
44,343
Adjusted segment operating margin **
-7.7%
**
10.2%
10.2%
Adjusted segment EBITDA margin
-98.3%
2.9%
-97.0%
12.8%
12.8%
GES North America: Revenue
$
18,776
$
-
$
(30)
$
18,806
$
283,682
$
-
$
283,682
Segment operating income (loss)
$
(29,174)
$
-
$
49
$
(29,223)
$
30,589
$
-
$
30,589
Integration costs
-
-
-
-
-
-
-
Adjusted segment operating income (loss)
(29,174)
-
49
(29,223)
30,589
-
30,589
Depreciation
4,495
-
(9)
4,504
5,030
-
5,030
Amortization
1,308
-
-
1,308
2,500
-
2,500
Adjusted segment EBITDA
$
(23,371)
$
-
$
40
$
(23,411)
$
38,119
$
-
$
38,119
Adjusted segment EBITDA attributable to noncontrolling interest
-
-
-
-
-
-
-
Adjusted segment EBITDA attributable to Viad
$
(23,371)
$
-
$
40
$
(23,411)
$
38,119
$
-
$
38,119
Adjusted segment operating margin ** ** **
10.8%
10.8%
Adjusted segment EBITDA margin ** ** **
13.4%
13.4%
GES EMEA: Revenue
$
7,808
$
-
$
(319)
$
8,127
$
69,505
$
-
$
69,505
Segment operating income (loss)
$
(2,886)
$
-
$
(22)
$
(2,864)
$
4,664
$
-
$
4,664
Integration costs
-
-
-
-
-
-
-
Adjusted segment operating income (loss)
(2,886)
-
(22)
(2,864)
4,664
-
4,664
Depreciation
990
-
(25)
1,015
1,292
-
1,292
Amortization
91
-
(3)
94
268
-
268
Adjusted segment EBITDA
$
(1,805)
$
-
$
(50)
$
(1,755)
$
6,224
$
-
$
6,224
Adjusted segment EBITDA attributable to noncontrolling interest
-
-
-
-
-
-
-
Adjusted segment EBITDA attributable to Viad
$
(1,805)
$
-
$
(50)
$
(1,755)
$
6,224
$
-
$
6,224
Adjusted segment operating margin
-37.0%
6.9%
-35.2%
6.7%
6.7%
Adjusted segment EBITDA margin
-23.1%
15.7%
-21.6%
9.0%
9.0%
Pursuit: Revenue
$
5,264
$
1,104
$
(47)
$
4,207
$
55,409
$
3,018
$
52,391
Segment operating income (loss)
$
(17,692)
$
(1,787)
$
288
$
(16,193)
$
11,313
$
1,518
$
9,795
Integration costs
(10)
(10)
-
-
33
33
-
Acquisition transaction-related costs
-
-
-
-
86
-
86
Attraction start-up costs (B)
854
-
-
854
607
-
607
Adjusted segment operating income (loss)
(16,848)
(1,797)
288
(15,339)
12,039
1,551
10,488
Depreciation
5,993
931
(99)
5,161
4,776
255
4,521
Amortization
955
280
(16)
691
603
98
505
Adjusted segment EBITDA
$
(9,900)
$
(586)
$
173
$
(9,487)
$
17,418
$
1,904
$
15,514
Adjusted segment EBITDA attributable to noncontrolling interest
522
251
(2)
273
(647)
(711)
64
Adjusted segment EBITDA attributable to Viad
$
(9,378)
$
(335)
$
171
$
(9,214)
$
16,771
$
1,193
$
15,578
Adjusted segment operating margin ** ** ** **
21.7%
51.4%
20.0%
Adjusted segment EBITDA margin **
-53.1%
** **
31.4%
63.1%
29.6%
(A) Acquisitions include Mountain Park Lodges (acquired June
2019) and Belton Chalet (acquired May 2019) for Pursuit. (B)
Includes costs related to the development of Pursuit's new FlyOver
attractions in Iceland, Las Vegas, and Toronto and the Sky Lagoon
in Iceland.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200806005337/en/
Carrie Long Investor Relations (602) 207-2681 ir@viad.com
Viad (NYSE:VVI)
Historical Stock Chart
From Feb 2024 to Mar 2024
Viad (NYSE:VVI)
Historical Stock Chart
From Mar 2023 to Mar 2024