Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Investor Presentation (June 2014)
46 slides from Pursuit Attractions And Hospitality's investor presentation, Jun 9, 2014
Slide 1: Investor Presentation June 2014
Investor Presentation June 2014
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 readers that, in addition to historical information contained herein, this press release includes certain information, assumptions and discussions that may co
Slide 3: Viad Overview
Viad Overview 3
Slide 4: Viad: Overview
Viad: Overview Viad Corp (NYSE: VVI), an S&P SmallCap 600 company, operates 2 business groups: Marketing & Events Group composed of Global Experience Specialists and affiliates (GES) • A leading full-service marketing agency serving live events around the world Travel & Recreation Group composed of
Slide 5: Viad: Investment Highlights
Viad: Investment Highlights square4 Leading and defensible market positions square4 Recurring revenue streams square4 Balance sheet strength boxshadowdwn $47.3 million in cash (3/31/14) boxshadowdwn 0.5% debt-to-capital (3/31/14) square4 Board and Management focused on enhancing shareholder value 5
Slide 6: Viad: Select Financial Information
Viad: Select Financial Information Revenues $927.8 $1,006.6 $953.3 $0 $200 $400 $600 $800 $1,000 $1,200 2011 2012 2013 $ m i l l i o n s $ m i l l i o n s $100.4 $114.2 $45.8 $0 $15 $30 $45 $60 $75 $90 $105 $120 2011 2012 2013 Cash & Cash Equivalents 6 Operating Income $23.1 $38.2 $41.9 $0 $10 $20 $
Slide 7: Viad: Core Values
Viad: Core Values INTEGRITY We lead by example, do the right thing and meet our commitments. INNOVATION We continuously look for new ways to create solutions to delight our clients, prospects and the markets we serve. LEADERSHIP Each one of us is an example for someone else. Be an energy provider th
Slide 8: Marketing & Events Group Global Experience Specialists (GES)
Marketing & Events Group Global Experience Specialists (GES)
Slide 9: Marketing & Events Group: Overview
Marketing & Events Group: Overview Global Experience Specialists (GES) – Specialists in the Art and Science of Engagement GES is a global leader in live event marketing that uniquely combines the art of high- impact creativity and service with the science of easy-to-use technology, strategy and worl
Slide 10: Marketing & Events Group: Global Leader
Marketing & Events Group: Global Leader GES holds leading positions in the U.S., U.K. and Canada Exhibition Contracting Markets GES U.S. CanadaU.K. 10 Source for Market Size/Share: GES estimates of Exhibition Contracting market. Note: GES 2013 Revenue shown above is total revenue before any intra-co
Slide 11: Marketing & Events Group: Profitable Growth
Marketing & Events Group: Profitable Growth GES is driving meaningful improvements in profitability $840.6 $902.0 $844.9 $800 $1,000 $1,200 M&E Group Revenue $17.9 $20.1 $15 $20 $25 M&E Group Operating Income 11* Same-show growth is defined as the increase in revenue from shows that were produced by
Slide 12: Marketing & Events Group: Profitable Growth
4.0% 3.0% 3.5% 4.0% 4.5% M&E Group Operating Margin Marketing & Events Group: Profitable Growth GES’ margin expansion initiatives are paying off LABOR MANAGEMENT: Improved labor-to-revenue ratio by 70 bps in 2013 and 50 bps in 2012 on U.S. base same-shows • Drive productivity gains at show site • Ne
Slide 13: Marketing & Events Group: Outlook
Marketing & Events Group: Outlook GES is expected to continue on its growth path to become a $1B revenue business with operating margins of 5% or better Other Higher-Growth Markets Continental Europe and Middle EastNEW C U S T O M E R S / G E O G R A P H I E S 13 Drive Share-of-Floor (Exhibitions) D
Slide 14: Marketing & Events Group: Event Services
Marketing & Events Group: Event Services GES has historically served the live events market primarily as a General Service Contractor (GSC) and Exhibitor Appointed Contractor (EAC) for exhibitions. Our goal is to strategically expand into new services and markets to become a full-service partner to
Slide 15: Marketing & Events Group: AV Opportunity
Marketing & Events Group: AV Opportunity GES has recently entered the U.S. Meetings AV market with the launch of in-house Audio-Visual Services LARGE MARKET*: U.S. meetings market for AV services is estimated to be >$1B U.K. meetings market for AV Services is estimated to be ~£175M GAINING MOMENTUM:
Slide 16: Marketing & Events Group: Geographic Expansion Opportunity
Marketing & Events Group: Geographic Expansion Opportunity CAGR CAGR 09-12 12-17 2.8% 4.7% 4.0% 5.4% 7.4% 8.4% 9.0% 8.3% 16.0% 7.6% We are also evaluating opportunities to expand GES’ position on the European continent and in the Middle East, as well as to enter higher-growth markets in Asia and pos
Slide 17: Recreation Group
Travel & Recreation Group Brewster Travel Canada, Glacier Park and Alaska Denali Travel 17
Slide 18: Recreation Group: Overview
Travel & Recreation Group: Overview 2013 Revenue Mix Viad’s Travel & Recreation (T&R) Group – Passionate Destination Experts Viad’s T&R Group offers guests rich travel experiences in iconic natural destinations in North America through its hotels and lodges, recreational attractions, transportation
Slide 19: Recreation Group: Overview
Travel & Recreation Group: Overview $87.2 $104.6 $108.4 $100 $120 $140 T&R Group Revenues The T&R Group has realized strong revenue growth and enjoys high operating margins $17.9 $20.3 $21.8 $20 $25 T&R Group Operating Income $0 $20 $40 $60 $80 2011 2012 2013 Operating Margin: 20.5% 19.4% 20.1% 19 $
Slide 20: 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 Location Operating Season Rooms Banff International Hotel Banff National Park, AB Year-r
Slide 21: Recreation: Hospitality Metrics
Travel & Recreation: Hospitality Metrics R e v P A R Room Nights Available (0 $ m i l l i o n s Hospitality revenue growth is being fueled by acquisitions of new properties and improved RevPAR Hospitality Revenues $25.7 $36.1 $38.2 $25 $30 $35 $40 $45 $86 $88 $96 59% 59% 63% 40% 50% 60% 70% $80 $100
Slide 22: Recreation: Attractions
Travel & Recreation: Attractions The Travel & Recreation Group offers unique attractions that enhance the guest experience, including: square4 The Banff Gondola, which offers visitors an unobstructed view of the Canadian Rockies and overlooks the town of Banff, Alberta (536k passengers in 2013) squa
Slide 23: Recreation: Glacier Skywalk
Travel & Recreation: Glacier Skywalk The Glacier Skywalk opened for the first time on May 1, 2014 square4 2014 revenue is projected to be $4.5 million to $5 million, with an operating margin of more than 50% square4 Initial ticket price of $24.95 (adult) / $12.50 (child) square4 Assumes ~230,000 vis
Slide 24: Recreation: Attractions Metrics
Travel & Recreation: Attractions Metrics Attractions Revenue Same-store* # of Passengers & Rev per Passenger** $ m i l l i o n s R e v e n u e p e r P a s s e n g e r # of Passenge Attractions revenue growth is being driven by both price and volume increases $31.9 $35.4 $36.1 $30 $40 $50 $36 $38 $39
Slide 25: Recreation: Transportation and Package Tours
Travel & Recreation: Transportation and Package Tours The Travel & Recreation Group provides ground transportation services to group tours and individual travelers, including: square4 Charter motorcoach services square4 Sightseeing square4 Airport shuttle and other scheduled services 25 The Travel &
Slide 26: Recreation: Transportation and Package Tours
Travel & Recreation: Transportation and Package Tours Transportation Revenue $ m i l l i o n s Package Tours Revenue $ m i l l i o n s Transportation and Package Tours revenues are also on the rise $14.8 $16.9 $17.2 $15 $20 $17.4 $18.8 $19.0 $15 $20 $25 26 $ m i l l i o n s $ m i l l i o n s $0 $5 $
Slide 27: Recreation: Growth Initiatives
Travel & Recreation: Growth Initiatives square6 Refresh: boxshadowdwn Enhance visitor experience with upgraded facility amenities to maximize asset yield and strengthen customer advocacy square6 Buy: boxshadowdwn Acquire exclusive and unique tourism assets in iconic natural destinations in North Ame
Slide 28: Recreation: Hospitality Market Share
Travel & Recreation: Hospitality Market Share There are opportunities to acquire Travel & Recreation assets in each of our current markets Total Viad All Other Owners # Rooms # Properties # Rooms % of Rooms in Market # Properties # Rooms # Properties # Owners Banff/Jasper Area: Town of Banff 4,750 4
Slide 29: Summary
Summary
Slide 30: Viad Opportunity Summary
Viad Opportunity Summary square4 Two business units with leading and defensible market positions boxshadowdwn M&E Group is experiencing significant improvements in profits driven by margin initiatives and improved industry fundamentals boxshadowdwn T&R Group enjoys high margins with strong revenue g
Slide 31: Appendix
Appendix 31
Slide 32: Viad Summary Financial Data
Viad Summary Financial Data (000's) 2011 2012 2013 Revenue: M&E Group 840,550$ 902,040$ 844,904$ T&R Group 87,220 104,605 108,443 927,770$ 1,006,645$ 953,347$ Segment Operating Income: M&E Group 5,180$ 17,900$ 20,092$ T&R Group 17,909 20,290 21,819 23,089$ 38,190$ 41,911$ Cash Flow from Operations 3
Slide 33: Marketing & Events Group: Summary
Marketing & Events Group: Summary GES is a leading global exhibition and trade show producer offering best-in-class event production, cutting-edge creative and design and service delivery square6 Exhibitions & Events boxshadowdwn Official Services Contractor boxshadowdwn Exhibitor Appointed Contract
Slide 34: Marketing & Events: Business Mix
Marketing & Events: Business Mix 75% 23% 1% 1% 2013 US Revenue by Major LOB Exhibitions - Official Services Contracting Exhibitions - Exhibitor Appointed Contractor and Other Branded Entertainment Revenue*: U.S. vs. International $631.4 $676.8 $628.9 $218.6 $240.1 $229.3 $0 $200 $400 $600 $800 $1,00
Slide 35: Marketing & Events: U.S. Business Model
Marketing & Events: U.S. Business Model Exhibitor Discretionary: ~20% of M&E U.S. revenue square6 Installing & Dismantling square6 Logistics/Transportation square6 Exhibit Rental Show Organizer: ~20% of M&E U.S. revenue square6 Show Planning & Production square6 Look & Feel Design Layout & Floor Pla
Slide 36: Marketing & Events: U.S. Industry Metrics
Marketing & Events: U.S. Industry Metrics 2.2% 1.4% 3.6% -1.4% -1.9% 2.0% 1.3% 0.8% 2.2% -1.8% 2.2% -2.0% -1.1% 2.2% 0.6% 0.5% -0.5% 0.7% 3.9% 3.1% 3.6% 2.8% 2.0% -2% 0% 2% 4% 6% Year-over-Year Change in U.S. Industry Metrics Data Source : Center for Exhibition Industry Research (CEIR), CEIR Index.
Slide 37: Marketing & Events: U.S. Show Revenue
Marketing & Events: U.S. Show Revenue 3.1% growth in Base Same- Show revenue for the Full Year 2013 43% 31% 42% 28% 48% 33% 28% 33% 56% 34% 43% 31% 45% 13.6% 5.8% 10.9% 11.8% 9.3% 6.1% 7.3% -0.4% 2.4% 2.6% 5.2% 3.4% 3.9% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 0% 10% 20% 30% 40% 50% 60% Q 1 1 1 Q 2 1 1 Q
Slide 38: Marketing & Events: Margin Improvement
Marketing & Events: Margin Improvement Key Initiatives • Focus on labor management to improve variable costs Expect incremental margins of 20%+ on revenue beyond current revenue run rate. Targeting 4% operating margins for total M&E in 2014, driven by initiatives to improve U.S. profitability Variab
Slide 39: Travel & Recreation Group: Summary
Viad’s Travel & Recreation (“T&R”) Group, comprised of Brewster Travel Canada, Glacier Park and Alaska Denali Travel, offers experiential leisure travel services and rich front-country experiences to national park visitors Travel & Recreation Group: Summary square6 Hospitality square6 Recreational A
Slide 40: Recreation Group: Business Mix
Travel & Recreation Group: Business Mix 80 100% Transportation Package Tours 73% 20% g e T o u r s T r a n s p o r t a t i o n 7% Total = $108.4M 2013 Revenue Mix 40 0 20 40 60 Brewster Travel Canada Attractions Hospitality Glacier Park Hospitality H o s p i t a l i t y P a c k a g Alaska Denali Tra
Slide 41: Recreation Group: Banff / Jasper and Glacier Skywalk
Travel & Recreation Group: Banff / Jasper and Glacier Skywalk 41
Slide 42: Recreation Group: Banff / Jasper
Travel & Recreation Group: Banff / Jasper 70 80 90 100 Other CanadianRocky MountainResorts Mutsumi Enterprises Charlton Resorts Morningstar Holdings Ltd. Irwin Group Fuji Starlight Express Co. 4,750 Rooms Other Claudio & Bruno Holdings Sunrise International 2,346 Rooms Other Shelton Canadian Propert
Slide 43: Recreation Group: Glacier / Waterton
Travel & Recreation Group: Glacier / Waterton 43
Slide 44: Recreation Group: Glacier / Waterton
Travel & Recreation Group: Glacier / Waterton Room Supply by Owner 60 80 100% Belton Chalets, Inc. Lundgren Family 587 Rooms All Other 495 Rooms All Other Woehler 276 Rooms All Other 810 Rooms All Other Suleman family 375 Rooms Total = 2,738 Rooms195 Rooms 44 0 20 40 Glacier NP Xanterra Viad Glacier
Slide 45: Recreation Group: Denali
Travel & Recreation Group: Denali 45
Slide 46: Travel & Recreation Group: Denali Room Supply by Owner
80 100% C o l e / H a m m Other Reisland Old Harbor Native Corp 2,039 Rooms Other Cook Inlet 749 Rooms Total = 2,898 Rooms LaHaie 110 Rooms Travel & Recreation Group: Denali Room Supply by Owner 0 20 40 60 D o y o n V i a d Denali Park Road Gateway Aramark Carnival Viad Talkeetna Area Carnival In-Pa