36 slides from Pursuit Attractions And Hospitality's investor presentation, Jun 14, 2004
Slide 1: June 2004 Investor Presentation: Spin-off of MoneyGram International
June 2004 Investor Presentation Spin-off of MoneyGram International, Inc.
Slide 2: Forward-Looking Statements
Forward-Looking Statements As provided by the safe harbor provision under the "Private Securities Litigation Reform Act of 1995" Viad cautions that, in addition to historical information contained herein, this presentation includes certain information, assumptions and discussions that may constitute
Slide 3: Agenda
Agenda Opening Remarks Robert Bohannon Chairman, President and Chief Executive Officer Operating Companies Paul Dykstra, President and CEO Overview GES Exposition Services, Inc. Kimbra Fracalossi, President and CEO Exhibitgroup/Giltspur Robert Bohannon Travel and Recreation Segment Financial Review
Slide 4: Post-Spin Viad Company Structure
Post-Spin Viad Company Structure Viad Corp GES Exposition Services, Inc. Exhibitgroup/giltspur Travel & recreation glacier park, inc. Brewster Transport Company limited 2003 revenue of $770.5 million Company Structure GES Exhibitgroup Travel & Recreation Revenue 498.714 218.551 53.203
Slide 5: Leading Market Positions / Investment Highlights
Leading Market Positions Positioned well in major trade show markets Integrated suite of offerings for convention & event customers Strong, Long-term Customer Relationships Multi-year contracts High renewal rate Customer Diversity Technology Leadership Relative Financial Strength Improving operating
Slide 6: Strategic Focus
Strategic Focus Disciplined Growth Leverage leadership positions and enhance service offerings to fuel growth Increase efficiencies and capacity utilization Strategic acquisitions within our industries and adjacent industries Selective investments in new projects / technology Enhance margins and cas
Slide 7: Paul Dykstra, President & CEO, GES
Paul Dykstra President & CEO GES. everythingexposition
Slide 8: Leader in Convention & Event Services
Leader in Convention & Event Services Program Management Supervision Graphics Installing & Dismantling Exhibits Storage Refurbishing Logistics Upgraded Carpets & Furnishings Signage Show Planning & Production Look & Feel Design Layout & Floor Plan Designs Decorating, Furniture & Carpet Signage Trade
Slide 9: Sizable Market with Steady Long-Term Growth
Sizable Market with Steady Long-Term Growth Source: CEIR, Tradeshow Week Trade shows grew steadily from 1972-2000 Trade Show Market ~ $16 Billion NSF = Net Square Footage Advertising/Promotion $0.7B
Slide 10: Leading Market Share
Leading Market Share Over a third of the Top 200 shows in the U.S. 5 of the Top 10 trade shows is the U.S. in 2003; 7 of Top 10 in 2002 Source: 2003 Tradeshow Week 200 indoor shows 2002 Top 10
Slide 11: Producing World Class Shows
Producing World Class Shows Recent successes include an exciting, high-profile corporate event that we partnered with Exhibitgroup to produce Entire 152 acre Ford HQ Campus Larger than Disneyland Over 225,000 Visitors To view a video clip from this show as well as time-lapse clips of set up and tear
Slide 12: GES Strengths
GES Strengths Strong, long-term customer relationships and high contract renewal rate Solid and dependable cash flow with improving margins Strong, diverse and experienced management team Leading position in growing Las Vegas market Las Vegas hosted approximately 27% of the 200 largest trade shows (
Slide 13: Highly Focused Growth
Highly Focused Growth Growth focused acquisitions high growth geographies leverage new technologies lines of business outside trade shows incremental trade show & exhibitor revenue innovation business model products services systems processes it competition gscs venues Customers tradeshow & exhibito
Slide 14: GES Revenue & Operating Income
GES Revenue & Operating Income Operating Margin
Slide 15: Exhibitgroup/Giltspur, Kimbra A. Fracalossi
.. Exhibitgroup/Giltspur Kimbra A. Fracalossi President & CEO
Slide 16: Exhibitgroup Overview
Exhibitgroup Overview Industry leader Largest/broadest network of resources and talent State-of-the-art technology Purchasing power International resources Expert in the following areas: Design Fabrication Graphic Design and Production Program Management Installation & Dismantle Logistics Management
Slide 17: Exhibitgroup Strengths
Exhibitgroup Strengths E/G's competitive advantages include: Fortune 1000 client base Design, production and sales talent and network Wholly-owned installation and dismantling division, ExpoServices Global client services via ownership/alliances Patented exhibit technology and processes Full service
Slide 18: Exhibit market appears to be stabilizing
After a sharp decline from its peak in 2000, the market appears to be stabilizing 1997 98 99 00 01 02 03E 04F 05F 06F TSEA / EDPA 1.9 2 2.1 2.6 2.3 1.5 1.4 2.1 2.56 3.03 Billions of Dollars Sources: TSEA Budget Reports, EDPA Reports, Exhibit Builder Survey 1992-02, L.E.K. Analysis Stabilizing Market
Slide 19: E/G increased share during the decline
EG increased share during the decline as competitors fell and E/G retained clients 1999 2000 2001 2002 2003E 2004F 15.7 15.29 13.44 15.06 15.06 15.06 - - - - 0.44 0.69 North American Market Share (1999-04F) Market Share Sources: TSEA Budget Reports, EDPA Reports, Exhibit Builder Survey 1992-02, EG M
Slide 20: E/G Revenue & Operating Income
($ in Millions) 2000 2001 2002 2003 Revenue 426.4 346.394 252.376 218.6 E/G Revenue & Operating Income 2000 2001 2002 2003 Revenue 30.679 3.324 -2.597 1.07 Operating Margins 7.2% 1.0% (1.0%) 0.5%
Slide 21: Prior Position vs New Direction
Prior Position Decentralized Operations -15 mfg locations (N.A.) - 15 processes - 7 IT systems - finance/purchasing Decentralized Sales Growth through Acquisitions Low Capacity Utilization High Cost Structure New Direction Centralized Operations - 4 mfg locations - standardized process - one system
Slide 22: E/G Strategy: Near-term and Longer-term Opportunities
Near-term opportunities Focus on core capabilities Segment customer targeting Focus on national marketing initiatives (i.e., leasing) Increase capacity utilization Improve manufacturing and service delivery efficiency Longer-term opportunities Domestic and international growth Strategic partnerships
Slide 23: Travel and Recreation Segment
VIAD Brewster sharing the best of canada glacier park inc. Travel and Recreation Segment Travel and Recreation Segment One-of-a-kind Destinations Banff Alberta, Canada Glacier National Park Montana, USA
Slide 24: Brewster Gondola and Columbia Icefield
Brewster Gondola Columbia Icefield Passengers Revenue(1) Passengers Revenue(1) 2003 363,066 $10,764 414,098 $9,597 2000 586,830 $15,597 604,814 $12,610 Results from Brewster's 2 high-throughput attractions have been depressed in recent years due to reduced travel as the result of 9/11, SARS, a weak
Slide 25: Glacier Park, Inc.
Glacier Park, Inc. Glacier Park, Inc. Glacier Park, Inc. Glacier Park, Inc. Glacier Park, Inc. Glacier Park, Inc. provides lodging, food and beverage services, and guided tours in and around the Waterton-Glacier International Peace Park Prince of Wales Hotel Prince of Wales Hotel Seasonal business w
Slide 26: Travel and Recreation Revenue & Operating Income
2000 2001 2002 2003 72.508 61.453 58.253 53.203 Travel and Recreation Revenue & Operating Income ($ in Millions) 2000 2001 2002 2003 19.123 14.698 14.2 9.975 Operating Margins 26.4% 23.9% 24.5% 18.7% Recent results impacted by: 9/11 SARS Airline bankruptcies Forest Fires Iraq War
Slide 27: Viad Corp Financial Summary
Viad Corp Financial Summary Ellen Ingersoll, CFO
Slide 28: Pro Forma Balance Sheet
Pro Forma Balance Sheet ($ in Millions) March 31, 2004 Cash & ST Investments $79.0 Debt $23.7 Total Equity $381.8 Debt/Capital 5.8% Revolving Credit Facility $100 (1) May be increased to $150 million under certain circumstances. (1)
Slide 29: Financial Strength
Financial Strength In January 2002, Viad adopted SFAS No. 142. When adjusting 2001 amounts to conform to SFAS No. 142, operating income was $57.7 million with an operating margin of 6.1%. Includes restructuring charges (recoveries) and other items of $5.0 million income ($3.0 million after tax or $0
Slide 30: Earnings Potential
Earnings Potential 2000 2001 2002 2003 GES 605.715 537.65 533.857 498.714 Exhibitgroup 426.4 346.394 252.376 218.551 Travel & Recreation 72.508 61.453 58.253 53.203 2000 2001 2002 2003 GES 49.916 31.007 42.756 40.171 Exhibitgroup 30.679 3.324 0 1.07 Brewster 19.123 14.698 14.243 9.975 ($ in Millions
Slide 31: Leading Market Positions / Investment Highlights
Leading Market Positions Positioned well in major trade show markets Integrated suite of offerings for convention & event customers Strong, Long-term Customer Relationships Multi-year contracts High renewal rate Customer Diversity Technology Leadership Relative Financial Strength Improving operating
Slide 32: Questions & Answers
Questions & Answers 32
Slide 33: Supplemental Financial Information
Supplemental Financial Information Summary Income Statement EBITDA Reconciliation to Net Income Capital Expenditures and Depreciation & Amortization Appendix
Slide 34: Post-Spin Viad Summary Income Statement
Post-Spin Viad Summary Income Statement1 (1) P&L information taken from audited New Viad financial statements as provided in the registration statement on Form 10 filed by MoneyGram International, Inc. ($ in Thousands) 2001 2002 2003 Total revenues $945,497 $844,486 $770,468 Costs services & product
Slide 35: Post-Spin Viad EBITDA Reconciliation
Post-Spin Viad EBITDA Reconciliation ($ in Thousands) 2001 2002 2003 EBITDA (1) $(18,029) $47,083 $63,873 Interest (recoveries) expense (5,607) (4,056) 1,080 Income tax expense (benefit) 20,449 (9,839) (21,361) Depreciation & amortization (37,416) (24,793) (22,501) Change in accounting principle - (
Slide 36: Post-Spin Viad Capex and D&A
2000 2001 2002 2003 Fcst 2004 Plan Post-Spin Viad Capex and D&A ($ in Millions) 2001 2002 2003 Depreciation & Amortization 37.4 24.8 22.5 Capital Expenditures 17.558 13.385 15.535 In January 2002, Viad Corp adopted SFAS No. 142, which eliminates the amortization of goodwill and other intangibles. Wh