Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Credit Suisse Global Services Conference 2013
39 slides from Pursuit Attractions And Hospitality's conference presentation, Mar 12, 2013
Slide 1: Investor Presentation - Credit Suisse Global Services Conference
Investor Presentation Credit Suisse Global Services Conference - March 12, 2013
Slide 2: Forward Looking Statements
2 Forward Looking Statements As provided by the safe harbor provision under the Private Securities Litigation Reform Act of 1995, Viad cautions readers that, in addition to historical information contained herein, this presentation includes certain information, assumptions and discussions that may c
Slide 3: Company Overview
Company Overview VilaD
Slide 4: Viad Overview
4 Viad Overview Viad Corp (NYSE: VVI) operates 2 business units: Travel & Recreation Group comprised of Brewster Travel Canada, Glacier Park, Inc. and Alaska Denali Travel Marketing & Events Group comprised of Global Experience Specialists and affiliates ("GES") ("GES") ("GES") ("GES") ("GES") ("GES
Slide 5: Company Highlights
5 Company Highlights Rapidly growing Travel & Recreation business providing high-end leisure travel experiences in and around North American national parks Global leader in producing some of the largest and most prestigious trade shows and exhibitions Balance sheet strength $114.2 million in cash (1
Slide 6: Selected Annual and YTD Financials
6 Selected Annual and YTD Financials Revenue (CHART) Operating Income (CHART) Income Before Other Items Per Share* (CHART) Adjusted EBITDA* (CHART) $ millions $ millions $ millions $ per share *A reconciliation of this non-GAAP measure can be found in the Appendix. Operating Margins: 0.5% 1.7% 2.7%
Slide 7: Travel & Recreation Group
Travel & Recreation Group VilaD
Slide 8: Travel & Recreation Group: Overview
Viad's Travel & Recreation ("T&R") Group, comprised of Brewster Travel Canada, Glacier Park, Inc. and Alaska Denali Travel, offers experiential leisure travel services and rich front-country experiences to national park visitors Travel & Recreation Group: Overview 8 Hospitality Recreational Attracti
Slide 9: Travel & Recreation Group: Overview (revenue and operating income)
The T&R Group has realized strong revenue growth and enjoys high operating margins Travel & Recreation Group: Overview (CHART) Total T&R Revenue (CHART) Total T&R Operating Income Operating Margins: 22.7% 22.5% 19.8% 19.5% 9 $ millions $ millions 17.8% CAGR
Slide 10: Travel & Recreation: Key Metrics
10 Travel & Recreation: Key Metrics RevPAR # of Rooms 2 Revenue per Passenger defined as total attractions revenue divided by number of passengers. Amount shown represents simple average of all T&R attractions. 1 RevPAR defined as revenue from room sales divided by the number of rooms available. Amo
Slide 11: Travel & Recreation: Asset Acquisition Criteria
11 Travel & Recreation: Asset Acquisition Criteria "Buy right" - location, asset, price, ROIC and terms Significant opportunity to add value to acquired assets Leverage economies of scale - e.g., leveraging our major suppliers, such as our service supplier, to lower the cost of purchases, leveraging
Slide 12: Travel & Recreation: New Attraction Build
Travel & Recreation: New Attraction Build 12 The Glacier Skywalk will be a stunning world-class attraction in Jasper National Park that will provide an immersive interpretive guided experience focusing on the unique ecosystem, glaciology, natural and aboriginal history of the Columbia Icefield area
Slide 13: Travel & Recreation: GNP Concession Contract
Travel & Recreation: GNP Concession Contract Glacier Park, Inc. ("GPI") has been the chosen concessionaire in Glacier National Park ("GNP") since 1980 Concession contract covers all services provided by GPI within GNP 510 out of 1,015 total rooms in the GNP area are operated under the concession con
Slide 14: Marketing & Events Group
Marketing & Events Group VilaD
Slide 15: Marketing & Events Group: Overview
15 Marketing & Events Group: Overview The Marketing & Events ("M&E") Group is a leading global exhibition and trade show producer offering best-in-class event production, cutting-edge creative and design and service delivery Exhibitions & Events Official Services Contractor Exhibitor Appointed Contr
Slide 16: Marketing & Events Group: Profitability Improvement
16 Marketing & Events Group: Overview The M&E Group is experiencing meaningful improvement in profitability following the lows of the 2009 recession (CHART) Total M&E Revenue (CHART) Total M&E Operating Results Operating Margins: -1.8% -0.7% 0.6% 2.0% SSG * : -22.5% -1.0% 11.2% 6.5% $ millions $ mil
Slide 17: Marketing & Events: Business Mix
17 Marketing & Events: Business Mix Revenue*: U.S. vs. International (CHART) Operating Margins: U.S. vs. International (CHART) (CHART) (CHART) $ millions * Excludes intersegment eliminations.
Slide 18: Marketing & Events: U.S. Margin Improvement
18 Marketing & Events: U.S. Margin Improvement Key Initiatives Focus on labor management to improve variable costs Drive down fixed expenses through consolidation of service delivery network Tight control over discretionary SG&A Increase show floor penetration Expect incremental margins of 20%+ on r
Slide 19: Marketing & Events: U.S. Margin Improvement
19 Marketing & Events: U.S. Margin Improvement U.S. operating margins improved by 180 basis points from 2011 to 2012, driven by revenue growth and efficiency gains Labor productivity gains at show site Rigorous & strategic planning Introduction of new tools to support planning, measurement and bench
Slide 20: Summary
Summary
Slide 21: Viad Opportunity Summary
21 Viad Opportunity Summary Two business units with leading and defensible market positions T&R Group enjoys high margins with strong revenue growth fueled by Refresh- Build-Buy strategy M&E Group is experiencing significant improvements in profits driven by margin initiatives and improved industry
Slide 22: Appendix
22 Appendix
Slide 23: Selected Quarterly Financials
23 Selected Quarterly Financials Revenue Operating Income Income Before Other Items Per Share* Adjusted EBITDA* (CHART) (CHART) (CHART) $ millions $ per share $ millions $ millions (CHART) *A reconciliation of this non-GAAP measure can be found later in this Appendix.
Slide 24: Selected Balance Sheet Highlights
24 Selected Balance Sheet Highlights As of December 31, 2012: Cash: $114.2 million Shares Outstanding: 20.2 million Debt: $2.2 million Debt to Capital: 0.6% (CHART) (CHART) Free Cash Flow* CapEx $ millions $ millions *A reconciliation of this non-GAAP measure can be found in the Appendix.
Slide 25: Disciplined Capital Deployment
25 Disciplined Capital Deployment Selective investments to support organic growth Strategic acquisitions after careful due diligence Strategic fit in or adjacent to Viad's core businesses Good cultural fit Economic return criteria met Quarterly Dividend $0.10 per share effective October 2012 (150% i
Slide 26: Travel & Recreation: Hospitality
26 Travel & Recreation: Hospitality Travel & Recreation: Hospitality The Travel & Recreation Group provides lodging accommodations in and around Glacier National Park, Denali National Park and Preserve, Banff National Park and Jasper National Park National Park National Park National Park National P
Slide 27: Travel & Recreation: Hospitality Metrics
27 Travel & Recreation: Hospitality Metrics Hospitality Revenue (CHART) Room Count & RevPAR* (CHART) RevPAR # of Rooms $ millions ** **Excludes rooms under renovation in 2011 at Many Glacier Hotel (111 rooms). * RevPAR defined as revenues from room sales divided by the number of rooms available. Amo
Slide 28: Travel & Recreation: Attractions
28 Travel & Recreation: Attractions The Travel & Recreation Group offers unique attractions that enhance the guest experience, including: The Banff Gondola, which offers visitors an unobstructed view of the Canadian Rockies and overlooks the town of Banff, Alberta Tours of the Athabasca Glacier on t
Slide 29: Travel & Recreation: Attractions Metrics
29 Travel & Recreation: Attractions Metrics Attractions Revenue (CHART) # of Passengers & Rev per Passenger* (CHART) $ millions Revenue per Passenger # of Passengers (000's) * Rev per Passenger defined as total attractions revenue divided by number of passengers. Amount shown represents simple avera
Slide 30: Travel & Recreation: Transportation and Package Tours
30 Travel & Recreation: Transportation and Package Tours The Travel & Recreation Group provides ground transportation services to group tours and individual travelers, including: Charter motorcoach services Sightseeing Airport shuttle and other scheduled services The Travel & Recreation Group offers
Slide 31: Travel & Recreation: Transportation and Package Tours revenue
31 Travel & Recreation: Transportation and Package Tours Transportation Revenue (CHART) $ millions Package Tours Revenue (CHART) $ millions Transportation and Package Tours revenues are also on the rise * Includes higher revenue from transportation business related to the 2010 Winter Olympic and Par
Slide 32: Marketing & Events U.S.: Exhibitions & Events
Marketing & Events U.S.: Exhibitions & Events Exhibitor Discretionary: ~20% of M&E U.S. revenue Installing & Dismantling Logistics/Transportation Exhibit Rental Furnishings & Carpet Graphics Lighting Storage Refurbishing ROI Analysis Show Organizer: ~19% of M&E U.S. revenue Show Planning & Productio
Slide 33: Marketing & Events U.S.: Industry Size/Growth
Marketing & Events U.S.: Industry Size/Growth Viad's Marketing & Events Group derives the majority of its revenue from the $13 Billion* Exhibition and Events Industry Graph Data Source: Center for Exhibition Industry Research (CEIR), CEIR Index. (CHART) 33 * Data Source: 2012 IBIS Report Post-recess
Slide 34: Marketing & Events U.S.: Show Revenue
(CHART) 34 Marketing & Events U.S.: Show Revenue (CHART) 6.5% growth in Base Same- Show revenue for the Full Year 2012 GES services ~5 to ~15 non-annual shows >$250k in rev. each year Major non-annual shows include: Every 2 Years: IMTS - Q310, Q312 IWF - Q310, Q312 PROMAT - Q109, Q111, Q113 Every 3
Slide 35: Reconciliation of Income Before Other Items Per Share
35 Reconciliation of Income Before Other Items Per Share(1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. with GAAP. with GAAP.
Slide 36: Reconciliation of Income Before Other Items Per Share
36 Reconciliation of Income Before Other Items Per Share(1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. with GAAP. with GAAP.
Slide 37: Reconciliation of Adjusted EBITDA
37 Reconciliation of Adjusted EBITDA(1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. with GAAP. with GAAP. Note: Total amounts presented above are calculated using dollars in thousands.
Slide 38: Reconciliation of Adjusted EBITDA
38 Reconciliation of Adjusted EBITDA(1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. with GAAP. with GAAP. Note: Total amounts presented above are calculated using dollars in thousands.
Slide 39: Reconciliation of Free Cash Flow
39 Reconciliation of Free Cash Flow (1) This non-GAAP measure should be considered in addition to, but not as a substitute for, a similar measure presented in accordance with GAAP. with GAAP. with GAAP. Note: Total amounts presented above are calculated using dollars in thousands.