Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — 18th Annual B. Riley & Co. Institutional Investor Conference (May 2017)
46 slides from Pursuit Attractions And Hospitality's conference presentation, May 25, 2017
Slide 1: Investor Presentation May 2017
INVESTOR PRESENTATION MAY 2017 11
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 presentation includes certain information, assumptions and discussions that may con
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This document includes the presentation of “Income Before Other Items”, “Segment Operating Income”, “Adjusted Segment Operating Income” and “Adjusted Segment EBITDA”, which are supplemental to results presented under accounting principles generally accepted in the United
Slide 4: Non-GAAP Financial Measures, Continued
NON-GAAP FINANCIAL MEASURES, CONTINUED INCOME BEFORE OTHER ITEMS INCOME BEFORE OTHER ITEMS INCOME BEFORE OTHER ITEMS PER SHARE Millions (except per share amounts) 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Net Income Attributable to Viad 5.9 21.6 52.4 26.6 42.3 $ 0.29 $ 1.06 $ 2.59 $ 1.32 $ 2
Slide 5: Non-GAAP Financial Measures, Continued
NON-GAAP FINANCIAL MEASURES, CONTINUED SEGMENT OPERATING INCOME, ADJUSTED SEGMENT OPERATING INCOME and ADJUSTED SEGMENT EBITDA GES PURSUIT VIAD TOTAL Millions 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Net Income Attributable to Viad $ 5.9 $ 21.6 $ 52.4 $ 26.6 $ 42.3
Slide 6: Non-GAAP Financial Measures, Continued
NON-GAAP FINANCIAL MEASURES, CONTINUED EBITDA FROM ACQUISITIONS and THE GLACIER SKYWALK Year Ended December 31, 2016 GES PURSUIT 2011 - 2014 2011 - 2014 Glacier VIAD TOTAL Millions All Other Total All Other Total Acquisitions1 Acquisitions2 Skywalk Net Income Attributable to Viad $ 42.3 Net Income A
Slide 7: Contents
Introduction to Viad 8 - 11 GES 12 - 20 Pursuit 21 - 30 Summary 31 - 34 Contents Appendix 35 - 46 77
Slide 8: Introduction to Viad
INTRODUCTION TO VIAD Viad is a S&P SmallCap 600 company and its two business groups have a clear strategy for driving growth and shareholder value INVESTMENT HIGHLIGHTS ABOVE MARKET TOTAL SHAREHOLDER RETURN • Leading and defensible 80.0% market positions 70.0% Viad, 62.3% • Recurring revenues and 60
Slide 9: Introduction to Viad: Two Business Groups, GES and Pursuit
INTRODUCTION TO VIAD Viad generates revenue and shareholder value through its two business groups: GES and Pursuit 2016 GES REVENUE GES is a global, full-service $1.2B live events company offering a comprehensive range of 13% services to the world’s leading brands and event organizers. 87% GES Pursu
Slide 10: Strategic Goals
STRATEGIC GOALS Viad is executing a focused growth strategy to enhance shareholder value through smart capital allocation and efficiently running and positioning our businesses for more strategic options, including a potential separation GES • Transform into full-service live event company • ~50% of
Slide 11: Strong Earnings Growth and Cash Generation
STRONG EARNINGS GROWTH AND CASH GENERATION Viad’s strong earnings growth and cash generation allow for reinvestment in the business and return of capital to shareholders Adjusted Segment EBITDA1 Margin 18% 2012 - 2016 CAGR 130.2 Cash Generated from Operations $294M 91.3 90.6 68.2 69.7 8.6% 8.3% 10.8
Slide 12: GES
GES BI WAIELE: TaD DD I Ooo GVBIRBYEr) (PRBVILREE 4BYRBITZ CBOBZE > 4BREAVIEZE BIS MABBWWT> AMOUR WET BI
Slide 13: GES Growth Strategy
GES GROWTH STRATEGY Position GES as the Preferred Global, Full-Service Provider for Live Events Customer consolidation and continued global expansion creates increasing demand for global capabilities GLOBAL REACH Addition of adjacent Drive Expansion services creates a unique, Improve Margins Differe
Slide 14: Global Leader in Exhibitions Market with Opportunity for Growth
GLOBAL LEADER IN EXHIBITIONS MARKET WITH OPPORTUNITY FOR GROWTH ESTABLISHED POSITION1 IN KEY GLOBAL MARKETS 30% 55% 45% US UK Canada RECOGNIZED ABILITY TO SERVICE BROADER GEOGRAPHIES Leveraging global capabilities and large customer base to drive growth in new Countries GES Serves services and other
Slide 15: Opportunity for Growth in Higher-Margin Market Segments
OPPORTUNITY FOR GROWTH IN HIGHER-MARGIN MARKET SEGMENTS Live Events is a big market and GES is under-penetrated in key segments Live Event Market GES 2016 Total Addressable Market1 Market Share2 Market Dominant in ~7.7B ~$1B Consumer Share Exhibitions 0.05 Events 0.1 3% Low penetration in Corporate
Slide 16: Live Event Segments
LIVE EVENT SEGMENTS Industry leaders already select GES in every Live Event segment Congresses / Exhibitions Corporate Events Consumer Events Conferences 65% 23% 8% 4% of Revenue1 of Revenue1 of Revenue1 of Revenue1 1 Percent of GES’ 2016 consolidated revenue. 16 16
Slide 17: Opportunity for Growth in Higher-Margin Services
OPPORTUNITY FOR GROWH IN HIGHER-MARGIN SERVICES The addition of new services provides a more compelling offering to penetrate Corporate Events and Conferences where AV is a larger portion of total spend Total Addressable Market by Service1 Total ~$2.6B ~$1.8B ~$3.4B Addressable AV is required to Mar
Slide 18: Acquisition of New Services to Fuel Growth
ACQUISITION OF NEW SERVICES TO FUEL GROWTH With its recent acquisitions, GES has made significant progress creating the most comprehensive suite of services for the live events industry AUDIO-VISUAL SERVICES 1,000+ U.S. events The strategic fit of acquisitions brings 30 venues & 6 concert facilities
Slide 19: New Services Bring Attractive Margins and Growth Opportunity
NEW SERVICES BRING ATTRACTIVE MARGINS AND GROWTH OPPORTUNITY Newly acquired services provide a high-margin growth platform ATTRACTIVE MARGINS GROWTH OPPORTUNITY 2016 ADJUSTED AV Event Technology EBITDA1 Margin TAM2 TAM2 ~$2.6B ~$0.7B 27% >20 PTS HIGHER FOR NEW 2.5 0.6 SERVICES 4% 6% 6% Market Share
Slide 20: GES Is Driving Profitable Growth
GES IS DRIVING PROFITABLE GROWTH By positioning GES as the preferred global, full-service provider for live events, we are driving growth in higher-margin service lines, increasing our share within the live events market and differentiating GES to enhance customer loyalty ~6% ~18% Revenue ADJUSTED E
Slide 21: Pursuit
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Slide 22: Pursuit – High-Value Assets in Markets with Perennial Demand
PURSUIT – HIGH-VALUE ASSETS IN MARKETS WITH PERENNIAL DEMAND Pursuit is comprised of attractions, hospitality, transportation and travel planning services that work together, driving economies of scope in iconic destinations Vancouver, Banff National Park Glacier National Park Denali National Park B
Slide 23: Pursuit Growth Strategy
PURSUIT GROWTH STRATEGY Position Pursuit as a leading experiential, adventure tourism provider through a Refresh, Build, Buy framework REFRESH to optimize We have a focused growth strategy market position and maximize to add scale to the business with a goal returns of more than doubling its size BU
Slide 24: Driving Growth in High Value Areas Through Refresh, Build, Buy
DRIVING GROWTH IN HIGH VALUE AREAS THROUGH REFRESH, BUILD, BUY We are strategically investing in attractions and hospitality, which have the highest margins and strong return on investment REVENUE ($M) ~14% PROGRESS TOWARD $250M CAGR* REVENUE TARGET (2010-16) 153.4 ~7% CAGR from existing hotels and
Slide 25: Refresh – Positioning for Highest and Best Use
REFRESH – POSITIONING FOR HIGHEST AND BEST USE Our recent renovation of the Banff Gondola will ensure its ongoing success as the must do attraction in Banff and position it for optimal returns ~$22M ~$5M PRE-RENOVATION IMPROVEMENT vs. INVESTMENT ADJUSTED EBITDA1 in 2017 (est.) Increased Capacity for
Slide 26: Build – Powerful New Experiences That Drive Powerful Returns
BUILD - POWERFUL NEW EXPERIENCES THAT DRIVE POWERFUL RETURNS The Glacier Skywalk is delivering significant return on investment, surpassing attendance expectations, and receiving international awards and media coverage ~$20M ~$6M INVESTMENT ADJUSTED EBITDA1 in 2016 Glacier Skywalk Extensive Jasper N
Slide 27: Buy – Continuing to Add Scale Through High-Margin Acquisitions
BUY - CONTINUING TO ADD SCALE THROUGH HIGH-MARGIN ACQUISITIONS Powerful combination of attractions and hospitality assets in existing geographies and service lines provide cross-selling opportunities and operational synergies 3 ACQUISITIONS FOR $111M $15M - $16.5M ADJUSTED EBITDA1 in 2017 (est.) Jan
Slide 28: Refresh, Build, Buy Isn't Just About Buildings
REFRESH, BUILD, BUY ISN’T JUST ABOUT BUILDINGS Refresh, Build, Buy framework is driving improvements in all aspects of our business Attractions Culture Technology Experiences Assets Leadership Hotels Retail Food & Beverage Acquire and Professionalize Introduced an Align our service
Slide 29: RevMAX – Revenue Management for Maximum Yield
RevMAX – REVENUE MANAGEMENT FOR MAXIMUM YIELD Selling the Right Product to the Right Customer at the Right Time and the Right Price on the Right Distribution channel with the best commission efficiency ATTRACTIONS Right Product LODGING Right Right Channel Customer RETAIL Revenue Management SERVICES
Slide 30: Pursuit's Strategy Is Driving Growth and Margin Expansion
PURSUIT’S STRATEGY IS DRIVING GROWTH AND MARGIN EXPANSION Pursuit is pursuing a focused growth strategy to add scale to the business by strategically investing in hospitality and attractions, which have the highest margins and a strong return on investment Revenue ADJUSTED EBITDA1 ~10% ~15% CAGR CAG
Slide 31: Summary
Summary 31 31
Slide 32: Active Acquisition Pipeline
ACTIVE ACQUISITION PIPELINE Viad has a disciplined and proactive acquisition program focused on proprietary deal-sourcing in support of our business unit strategies to drive shareholder value GES Pursuit • New lines of business to drive • High-return tourism assets in iconic penetration across all L
Slide 33: Successful Track Record of Acquisitions
SUCCESSFUL TRACK RECORD OF ACQUISITIONS Viad has demonstrated an ability to successfully acquire and integrate strategic assets for both GES and Pursuit 2014 2016 4 Acquisitions 1 Acquisition ~18% $113M Purchase Price $87M Purchase Price AVERAGE IRR2 ~$18M EBITDA1 in 2016 ~$15-17M EBITDA1 in 2017 (e
Slide 34: Viad Opportunity Summary
VIAD OPPORTUNITY SUMMARY Viad is in a strong position to enhance shareholder value STRENGTH TWO SOLID BUSINESS GROUPS Strong, proven foundation • Leading and defensible market positions • Recurring revenue streams • Strong growth prospects with solid balance sheet VISION WELL-DEFINED GROWTH STRATEGI
Slide 35: Appendix
Appendix 35 35
Slide 36: Focused on Shareholder Value
FOCUSED ON SHAREHOLDER VALUE LONG HISTORY OF STRATEGIC DIVESTITURES1 Over the last 30 years, Viad has spun-off or sold more than 20 lines of business, including: 1987 1992 1993 1996 1997 1999 1999 2004 Greyhound The FINOVA Motor Coach The Dial Premier Restaura Dobbs Int’l MoneyGram Lines, Inc. bus G
Slide 37: GES Key Metrics
GES KEY METRICS US BASE SAME-SHOW GROWTH1 2016 GEOGRAPHIC REVENUE MIX 8.0% US EMEA Canada 6.5% 6.4% 5% 18% 4.1% 3.1% 77% 2012 2013 2014 2015 2016 SHOW ROTATION2 RECURRING & DIVERSE REVENUES Millions $65 $52 • 3-5 year contracts $16 • 90%+ renewal rate • Largest client is ~6% of GES revenue ~($15) ($
Slide 38: GES New Services - Audio-Visual / Digital Production
GES NEW SERVICES - AUDIO-VISUAL / DIGITAL PRODUCTION GES delivers high-impact AV production across the live event spectrum with significant opportunity for high-margin growth • Cutting edge video, sound and lighting equipment • Stock packages or entirely bespoke constructions • High quality, creativ
Slide 39: GES New Services – Event Accommodations
GES NEW SERVICES – EVENT ACCOMMODATIONS GES is a leading provider of end-to-end event accommodations solutions • Buying Power and strong 4M room nights hotel relationships result in 250,000+ hotels best possible rates Award-Winning • Advanced Technology is 160+ clients Technology & Marketing intuiti
Slide 40: GES New Services – Event Accommodations
GES NEW SERVICES – EVENT ACCOMMODATIONS Event accommodations business model delivers value to all event stakeholders • Turns complicated function into a Organizers profit center • Ensures best-rate and rate integrity • Enhances participant experience Delivering Value to All Stakeholders Attendees &
Slide 41: GES New Services – Registration and Data Analytics
GES NEW SERVICES – REGISTRATION AND DATA ANALYTICS GES’ registration and data analytics platform is industry-leading and highly-scalable Software AND Service for registration and lead management • SaaS model or fully managed options • Web-based, enterprise-wide application 1,100+ events • Multilingu
Slide 42: GES Core Services
GES CORE SERVICES As the official services contractor for an event, GES is the exclusive provider of certain services to the event organizer and exhibitors with an opportunity to up-sell discretionary services to exhibitors OFFICIAL SERVICES CONTRACTING1 CORPORATE ACCOUNTS1 Exclusive Discretionary U
Slide 43: Operational Excellence
OPERATIONAL EXCELLENCE Culture of continuous improvement drives efficiencies and margin improvements LeanLEAN SIXTools Six Sigma SIGMA UtilizedTOOLS & WasteUTILIZED Addressed MEASURES OF SUCCESS 5-S (T) Time 1M+ SF of facility space WIP Reduction (I) Inventory VA/NVA/BVA Analysis (M) Mot
Slide 44: Pursuit Key Metrics
PURSUIT KEY METRICS HOSPITALITY METRICS1 2016 GEOGRAPHIC REVENUE MIX RevPAR Occupancy Brewster Glacier Park Alaska Collection (Canada) (Montana) (Alaska) $119 $102 $105 $107 $92 24% 62.5% 66.1% 68.7% 68.3% 72.2% 19% 57% 2012 2013 2014 2015 2016 ATTRACTIONS METRICS1 2016 LINE OF BUSINESS REVENUE MIX
Slide 45: Pursuit Attractions - Awesome Experience with Compelling Cross-Sell
PURSUIT ATTRACTIONS - AWESOME EXPERIENCE WITH COMPELLING CROSS-SELL Pursuit’s attractions have strong financial performance and offer cross-selling opportunities. Banff Gondola 592,000 visitors Glacier Adventure Maligne Lake Tours 475,000 visitors 116,000 visitors Glacier Skywalk 347,000 visitors Fl
Slide 46: Pursuit Hospitality - Lodging Portfolio
PURSUIT HOSPITALITY - LODGING PORTFOLIO Pursuit provides lodging accommodations in and around Glacier, Banff, Denali, Kenai Fjords and Jasper National Parks Property Name Location Operating Season Rooms Talkeetna Alaskan Lodge Denali National Park, AK May – Sept 212 Seward Windsong Lodge Kenai Fjord
Viad — 18th Annual B. Riley & Co. Institutional Investor Conference (May 2017) on 6ix