Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Q3 2023 Earnings Presentation
27 slides from Pursuit Attractions And Hospitality's earnings presentation, Nov 2, 2023
Slide 1: Third Quarter 2023 Earnings Call
THIRD QUARTER 2023 EARNINGS CALL NOVEMBER 2, 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains a number of forward- • seasonality of our businesses; • natural disasters, weather conditions, accidents, and looking statements. Words, and other catastrophic events; • the impact of the COVID-19 pandemic on our variations of words, such as “wil
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This document includes the presentation of “Adjusted Adjusted EBITDA is defined by management as net Income (Loss) Before Other Items is defined by EBITDA” and ”Income (Loss) Before Other Items”, income attributable to Viad before income (loss) from management as net inco
Slide 4: Q3'23 Highlights
Q3’23 HIGHLIGHTS Q3 performance was strong and in line with guidance as 1 demand for international leisure travel and live events grew Pursuit delivered record Q3 and YTD results with significant 2 margin expansion GES continues to see healthy same-show Exhibition growth 3 and new client wins at Spi
Slide 5: Financial Performance & Outlook
FINANCIAL PERFORMANCE & OUTLOOK
Slide 6: Strong Q3'23 Results
STRONG Q3’23 RESULTS $ MILLIONS Q3’23 VS. Q3’22 ▪ Pursuit posted record results with Revenue $365.9 $(16.8) significant year-over-year growth primarily Pursuit Revenue $186.9 $23.1 driven by: GES Revenue $179.0 $(40.0) ▪ Higher visitation Net Income Attributable to Viad $41.3 $3.2 ▪ Strong demand fo
Slide 7: Pursuit Q3'23 Year-over-Year Results
PURSUIT Q3’23 YEAR-OVER-YEAR RESULTS PURSUIT ($ MILLIONS) Q3’23 VS. Q3’22 Revenue: ▪ Revenue increased ~14% year-over-year Ticket Revenue $71.7 $10.9 with remarkable performance from Room Revenue $48.7 $6.2 attractions and lodging experiences Food & Beverage $28.4 $3.3 ▪ Growth across all markets, w
Slide 8: GES Q3'23 Year-over-Year Results
GES Q3’23 YEAR-OVER-YEAR RESULTS GES ($ MILLIONS) Q3’23 VS. Q3’22 ▪ Major non-annual shows and sale of ON Services Revenue: in 2022 impacted year-over-year revenue by a Spiro $58.9 $(14.4) combined $64 million GES Exhibitions $122.1 $(25.8) Inter-Segment Elims $(2.0) $0.2 ▪ Excluding major non-annua
Slide 9: Financial Outlook – Q4'23 & FY'23
FINANCIAL OUTLOOK – Q4’23 & FY’23 $ MILLIONS Q4’23 GUIDANCE FY’23 GUIDANCE Pursuit: Revenue $35 to $40 Up ~15% Adjusted EBITDA $(10) to $(6) $91 to $95 GES: Revenue $235 to $250 Up mid-single digits Adjusted EBITDA $16 to $20 $58 to $62 Consolidated: Revenue $270 to $290 Up high-single digits Adjust
Slide 10: Pursuit
PURSU,T”
Slide 11: Pursuit's Q3 YTD Attraction Performance
PURSUIT’S Q3 YTD ATTRACTION PERFORMANCE TICKET REVENUE VISITATION (K) Solid year-over-year ticket revenue ($M) growth primarily driven by increased +20% attraction visitation 2,992 +23% 2,485 ▪ Strong visitation to Canadian attractions from 123 increased international tourism ▪ Newer experiences lau
Slide 12: Pursuit's Q3 YTD Lodging Performance
PURSUIT’S Q3 YTD LODGING PERFORMANCE ROOM REVENUE SAME-STORE REVPAR Strong year-over-year room revenue ($M) growth with increases in both ADR +10% and occupancy $146.72 $161.80 +12% ▪ All geographies delivered growth in room 78 revenue, with stand-out performance 70 from Canadian hotels Q3'22 Q3'23
Slide 13: Pursuit's Overall Revenue Growth
PURSUIT’S OVERALL REVENUE GROWTH REVENUE ($M) ~+15% +16% Significant year-over-year revenue 308 growth primarily driven by: 299 265 ▪ Increased international visitation ▪ Continued ramping of newer experiences ▪ Strong demand for iconic, unforgettable, inspiring experiences ▪ Pricing power 2022 2023
Slide 14: Pursuit's Margin Expansion
PURSUIT’S MARGIN EXPANSION ADJUSTED EBITDA MARGIN (%) Significant year-over-year margin expansion primarily driven by: ~+4% ▪ Higher attraction visitation with +3% strong throughput ~27% 33% 23% ▪ Prudent labor and expense 30% management 30% ADJUSTED EBITDA 2022 2023 2022 2023F MARGIN TARGET BY 2024
Slide 15: Pursuit's Powerful Growth Strategy
PURSUIT’S POWERFUL GROWTH STRATEGY PROVEN TRACK RECORD REFRESH BUILD BUY Strategic assets that drive Expect to To optimize guest experience, To create new guest guest experience, economies MORE THAN TRIPLE market position, and experiences and revenue of scale and scope, ADJUSTED EBITDA maximize retu
Slide 16: Slide 16
Slide 17: Exhibitions' Industry Has Substantially Recovered With Room for More Growth
EXHIBITIONS’ INDUSTRY HAS SUBSTANTIALLY RECOVERED WITH ROOM FOR MORE GROWTH GES US Exhibitions Same-Show* Revenue and Square Footage vs. 2019 Pre-Pandemic Occurrence ▪ In Q3’23, GES Exhibitions’ same GES’ revenue per net square foot of event show revenue is now exceeding space has improved vs. pre-p
Slide 18: Spiro's Growth Strategy
SPIRO’S GROWTH STRATEGY LARGE FRAGMENTED GROWING MARKET Well-positioned to win business from new and existing clients to drive accelerated growth: Experiential marketing is ✓ Global network forecasted to rise globally at ✓ End to end in-house solutions – ~9% CAGR to $105B by 2026 from strategy & cre
Slide 19: GES' Overall Revenue Growth
GES’ OVERALL REVENUE GROWTH REVENUE ($M) Solid year-over-year revenue growth primarily driven by: +Mid-Single Digits ▪ Stronger demand for exhibition and 828 +4% event services 614 639 ▪ Pricing strength and continued recovery of exhibition show sizes ▪ Spiro winning new clients and cultivating exis
Slide 20: GES' Margin Expansion
GES’ MARGIN EXPANSION >8% ADJUSTED EBITDA MARGIN TARGET BY 2024 Margin expansion expected to be driven by: ▪ Exhibitions’ show sizes recovering ▪ New Spiro wins with improved SG&A leverage ▪ Continued focus on efficiency with lean productivity initiatives 20
Slide 21: Appendix
APPENDIX
Slide 22: Q3 Revenue and Adjusted EBITDA
Q3 REVENUE AND ADJUSTED EBITDA REVENUE AND ADJUSTED EBITDA (000's) Q3'23 Q3'22 VAR ($) Revenue: Pursuit 186,940 163,796 23,144 GES: Spiro 58,887 73,277 (14,390) GES Exhibitions 122,115 147,872 (25,757) GES Intersegment Eliminations (2,043) (2,224) 181 Total GES 178,959 218,925 (39,966) Total Revenue
Slide 23: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION VIAD CONSOLIDATED (000's) 2019 2020 2021 2022 Q3'22 Q3'23 Revenue 1,302,736 415,435 507,340 1,127,311 382,721 365,899 Net Income (Loss) Attributable to Viad 22,035 (374,094) (92,655) 23,220 38,121 41,271 Net Income (Loss) Attributable to Noncontrolling Interest 2,30
Slide 24: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION INCOME BEFORE OTHER ITEMS (000's) Q3'23 Q3'22 VAR ($) Net Income Attributable to Viad 41,271 38,121 3,150 Loss from Discontinued Operations Attributable to Viad 654 42 612 Income from Continuing Operations Attributable to Viad 41,925 38,163 3,762 Restructuring Charg
Slide 25: Pursuit Key Performance Metrics
PURSUIT KEY PERFORMANCE METRICS 9/30 YTD 2023 2022 2023 2022 Q1 Q2 Q3 Q1 Q2 Q3 Q4 FY Attractions KPIs: Number of Visitors 2,991,656 2,485,057 409,136 914,317 1,668,203 291,578 742,920 1,450,559 446,209 2,931,266 Effective Ticket Price $ 40.96 $ 39.98 $ 34.86 $ 39.97 $ 43.01 $ 31.56 $ 39.49 $ 41.93 $
Slide 26: Pursuit Metrics vs. Pre-Pandemic 2019
PURSUIT METRICS VS. PRE-PANDEMIC 2019 Lodging and attraction experiences show significant improvement compared to the prior year and pre-pandemic 2019 Rooms Revenue ($ Millions) Ticket Revenue ($ Millions) $71.7 $48.7 $60.8 $42.5 $38.4 $48.7 Q3'19 Q3'22 Q3'23 Q3'19 Q3'22 Q3'23 Q3'19 Q3'22 Q3'23 Y/Y
Slide 27: Cash Flow and Balance Sheet Highlights
CASH FLOW AND BALANCE SHEET HIGHLIGHTS LIQUIDITY & CASH FLOW (000's) (000's) Q3'23 Q2'23 6/30/23 Liquidity 148,220 Cash and Cash Equivalents 106,268 53,179 Cash from Operations 77,754 Term Loan B 392,000 393,000 Capital Expenditures: Revolving Credit Facility ($100M total facility size) - - Pursuit