Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Investor Day (June 2016)
57 slides from Pursuit Attractions And Hospitality's investor day presentation, Jun 15, 2016
Slide 1: Analyst Meeting June 15, 2016
1 1 Analyst Meeting June 15, 2016
Slide 2: Forward-Looking Statements
2 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
Slide 3: Non-GAAP Financial Measures
3 3 NON - GAAP FINANCIAL MEASURES This document includes the presentation of “Income Before Other Items” , “Adjusted Segment Operating Income” and “Adjusted Segment EBITDA” , which are supplemental to results presented under accounting principles generally accepted in the United States of America (“
Slide 4: Non-GAAP Financial Measures, Continued: Income Before Other Items
4 4 NON - GAAP FINANCIAL MEASURES, CONTINUED Note: Certain amounts above may not foot due to rounding . INCOME BEFORE OTHER ITEMS Millions (except per share amounts) 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Net Income 9.7$ 6.6$ 21.7$ 55.6$ 27.0$ Noncontrolling Interest (0.5) (0.7) (0.1) (3.
Slide 5: Non-GAAP Financial Measures, Continued: Adjusted Segment Operating Income and EBITDA
5 5 NON - GAAP FINANCIAL MEASURES, CONTINUED Note: Certain amounts above may not foot due to rounding . ADJUSTED SEGMENT OPERATING INCOME and ADJUSTED SEGMENT EBITDA Millions 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Net Income 9.7$ 6.6$ 21.7$ 55.6$ 27.0$ (Income) Lo
Slide 6: Non-GAAP Financial Measures, Continued
6 6 NON - GAAP FINANCIAL MEASURES, CONTINUED Note : Certain amounts above may not foot due to rounding . 1 Marketing & Events Group acquisitions include : Blitz Communications, onPeak and N 200 (all acquired in the second half of 2014 ) . 2 Travel & Recreation Group acquisitions include : Grouse Mou
Slide 7: Contents
7 7 Introduction to Viad 8 - 18 Marketing & Events Group 19 - 33 Travel & Recreation Group 34 - 44 Summary 45 - 46 Appendix 47 - 57 CONTENTS
Slide 8: Introduction to Viad
8 8 INTRODUCTION TO VIAD Viad is a n S&P SmallCap 600 company that is driving growth and shareholder value • Leading and defensible market positions • Recurring revenues and strong free cash flows • Experienced management team focused on shareholder v alue c reation • Proven strategy and strong grow
Slide 9: Viad's Two Leading Business Units
9 9 VIAD’S TWO LEADING BUSINESS UNITS Viad generates revenue and shareholder value through two business groups: the Marketing & Events Group (GES) and the Travel & Recreation Group (T&R ) MARKETING & EVENTS TRAVEL & RECREATION GES is a global, full - service live events company offering a comprehens
Slide 10: Long History of Strategic Divestitures and Review of Options
10 10 1987 Greyhound Lines, Inc. bus operations LONG HISTORY OF STRATEGIC DIVESTITURES 1 Over the last 30 years, Viad has spun - off or sold more than 20 lines of business, including : 1992 The FINOVA Group 1993 Motor Coach Industries 1996 The Dial Corp. 1997 Premier Cruise Lines 1999 Restaura dinin
Slide 11: Strategic Goals
11 11 STRATEGIC GOALS Viad is executing a focused growth strategy to enhance shareholder value through smart capital allocation , efficiently running and positioning our businesses for more strategic options , including a potential separation MARKETING & EVENTS TRAVEL & RECREATION • Scale to ≥$ 250M
Slide 12: Disciplined and Proactive Acquisition Program
12 12 Viad has a disciplined and proactive acquisition program focused on proprietary deal - sourcing in support of our business unit strategies to drive shareholder value ACTIVE ACQUISITION PIPELINE Culture requirements: • Integrity • Customer - focus • Innovation • Continuous improvement Strong cu
Slide 13: Successful Track Record of Acquisitions
13 13 SUCCESSFUL TRACK RECORD OF ACQUISITIONS Viad has demonstrated an ability to successfully acquire and integrate strategic assets for both GES and T&R 4 ACQUISITIONS FOR $113M $18.1M 18 % AVERAGE IRR 2 ADJUSTED EBITDA 1 in 2015 in 2014 5 ACQUISITIONS FOR $82M $10.0M 20 % AVERAGE IRR 3 ADJUSTED E
Slide 14: Capital Structure and Capacity
14 14 CAPITAL STRUCTURE AND CAPACITY STRONG BALANCE SHEET STRONG CASH FLOW FINANCIAL FLEXIBILITY + = As of 3/31/16: • 32.7% Debt - to - Capital • 48.6% Debt - to - Equity 2016 Outlook: • $119M to $126M In Segment EBITDA 1 • $85M to $95M i n Cash from Operations Continued capacity to fund strategic g
Slide 15: Strong Cash Flow
15 15 STRONG CASH FLOW Viad’s strong cash generation allows for reinvestment in the business and return of capital to shareholders 228 186 25 145 209 133 Cash Sources Capital Deployed Change in Net Debt Cash from Operations Returned to Shareholders 4 Capital Expenditures Acquisitions Other 3 1 Refer
Slide 16: Strong Earnings Growth
16 16 1 Refer to pages 3 - 6 for important disclosures regarding this non - GAAP measure . 27.5 40.7 40.6 54.9 54.8 77 to 80 24.0 27.5 29.1 36.4 35.8 42 to 46 2011 2012 2013 2014 2015 2016F GES T&R Viad has been driving strong earnings growth in both business units Adjusted Segment EBITDA 1 STRONG E
Slide 17: GES Outlook
17 17 GES OUTLOOK We expect to drive continued growth at GES over the next several years, with market share gains in higher - margin areas and efficiency gains 1 Refers to Adjusted Segment EBITDA Margin. Refer to pages 3 - 6 for important disclosures regarding this non - GAAP measure. REVENUE GROWTH
Slide 18: T&R Outlook
18 18 T&R OUTLOOK We will continue to focus on growing and improving our current T&R business while also pursuing material scale gains through acquisitions 1 Refers to Adjusted Segment EBITDA Margin. Refer to pages 3 - 6 for important disclosures regarding this non - GAAP measure. REVENUE GROWTH Up
Slide 19: Marketing & Events Group
19 19 Marketing & Events Group Global Experience Specialists, Inc. (GES)
Slide 20: GES Growth Strategy
20 20 GLOBAL REACH LIVE EVENTS FULL - SERVICE PROVIDER Drive Expansion Improve Margins Differentiate Addition of adjacent services creates a unique, integrated offering to deepen client relationships, expand client base and increase share of total event spend Position GES as the Preferred Global , F
Slide 21: Global Leader in Exhibitions Market with Opportunity for Growth
21 21 GLOBAL LEADER IN EXHIBITIONS MARKET WITH OPPORTUNITY FOR GROWTH Leveraging global capabilities and large customer base to drive growth in new services and other live event segments ESTABLISHED POSITION 1 IN KEY GLOBAL MARKETS RECOGNIZED ABILITY TO SERVICE BROADER GEOGRAPHIES 30% 55% 45% US UK
Slide 22: Opportunity for Growth in Higher-Margin Market Segments
22 22 OPPORTUNITY FOR GROWTH IN HIGHER - MARGIN MARKET SEGMENTS 2.6 0.6 1.8 0.2 3.4 0.1 0.05 ~7.7B ~$1B Profit Margin 24% 13% 2% Exhibitions Conferences Corporate Events Consumer Events Live Event Market Total Addressable Market 1 GES 2015 Market Share Market Share Live Events is a big market and GE
Slide 23: Live Events – Exhibitions and Conferences
23 23 LIVE EVENTS – EXHIBITIONS AND CONFERENCES P rimary purpose is to facilitate attendee education; expo or trade show may be held in conjunction to further facilitate attendee education. Host and exhibitors typically pay for services. Primary purpose is to facilitate B2B & B2C sales/marketing. Ho
Slide 24: Live Events – Corporate and Consumer Events
24 24 LIVE EVENTS – CORPORATE AND CONSUMER EVENTS P rimary purpose is to entertain, educate or create an experience, typically around a specific genre. P rimary purpose is to facilitate attendee education of sponsoring company’s products or product ecosystem. Corporation or host pays for services. C
Slide 25: Opportunity for Growth in Higher-Margin Services
25 25 OPPORTUNITY FOR GROWH IN HIGHER - MARGIN SERVICES 1.9 1.2 1.3 0.4 0.5 1.7 0.2 0.05 0.4 ~$2.6B ~$1.8B ~$3.4B Exhibitions Conferences Corp Events Total Addressable Market by Service 1 MARGIN Core Services Audio - Visual Event Technology The addition of new services provides a more compelling off
Slide 26: Acquisition of New Services to Fuel Growth
26 26 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 In - house provider to top 4 UK venues Servicing over 1,100 events in 43 countries Majority of the top 100 U
Slide 27: Attractive Margins
27 27 ATTRACTIVE MARGINS 5.7% 4.2% 19.5% 27.8% 2014 2015 ~24 PTS HIGHER FOR NEW SERVICES ADJUSTED EBITDA 1 Margin CORE SERVICES NEW SERVICES NEW SERVICES BRING ATTRACTIVE MARGINS AND GROWTH OPPORTUNITY GROWTH OPPORTUNITY Newly acquired services provide a high - margin growth platform 1 Refers to Adj
Slide 28: New Services - Audio-Visual / Digital Production
28 28 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 v ideo, sound and lighting equipment • Stock packages or entirely bespoke constructions • High quality
Slide 29: New Services – Registration and Data Analytics
29 29 US UK NEW SERVICES – REGISTRATION AND DATA ANALYTICS • Quick & easy • Personalized • Seamless • Multilingual • Multi - currency • Generate, capture, qualify & respond to leads • Measure ROI • Measure engagement • Prove ROI • Real - time insight • Increase re - bookings GES’ registration and da
Slide 30: New Services – Event Accommodations
30 30 NEW SERVICES – EVENT ACCOMMODATIONS GES is the leading provider of end - to - end event accommodations solutions • Buying Power and strong hotel relationships result in best possible rates • Advanced Technology is intuitively tailored for large, complicated events • Full - Service Offering , i
Slide 31: New Services – Event Accommodations Business Model
31 31 NEW SERVICES – EVENT ACCOMMODATIONS Event accommodations business model delivers value to all event stakeholders Delivering Value to All Stakeholders Organizers Hotels Attendees & Exhibitors • Turns complicated function into a profit center • E nsures best - rate and rate integrity • Enhances
Slide 32: Core Services
32 32 CORE SERVICES Exhibitors: Exhibit Rental Furnishings & Carpet Graphics Installing & Dismantling Labor Logistics/Transportation Event Organizer: Event Planning & Production Look & Feel Design Layout & Floor Plan Designs Furnishings & Carpet Signage Show Traffic Analysis 1 Representative list of
Slide 33: Operational Excellence
33 33 All Other Variable COS Variable Labor COS Semi - Variable SG&A Fixed G&A Cost Structure (2015) OPERATIONAL EXCELLENCE Culture of continuous improvement drives efficiencies and margin improvements Lean Six Sigma Tools Utilized & Waste Addressed □ 5 - S □ WIP Reduction □ VA/NVA/BVA Analysis □ Sp
Slide 34: Travel & Recreation Group
34 34 Travel & Recreation Group Brewster Travel Canada Glacier Park Alaska Denali Travel
Slide 35: T&R – High-Value Assets in Markets with Perennial Demand
35 35 Banff National Park Jasper National Park ~ 6M Visitors T&R – HIGH - VALUE ASSETS IN MARKETS WITH PERENNIAL DEMAND Denali National Park Kenai Fjords National Park ~ 1M Visitors Glacier National Park Waterton Lakes National Park ~ 2M Visitors T&R is comprised of attractions, hospitality, transpo
Slide 36: T&R Growth Strategy
36 36 T&R GROWTH STRATEGY Position T&R as a leading experiential, adventure tourism provider through a Refresh, Build, Buy framework BUILD to create new revenue streams with economies of scale and scope BUY strategic assets that drive economies of scale and scope, improving financial performance REF
Slide 37: Driving Growth Through Refresh, Build, Buy
37 37 70.0 87.2 104.6 108.4 120.5 112.2 135 - 140 2010 2011 2012 2013 2014 2015 2016F Existing Hotels & Attractions Existing Package Tours & Transportation Acquisitions Skywalk Build DRIVING GROWTH IN HIGH VALUE AREAS THROUGH REFRESH, BUILD, BUY We are strategically investing in attractions and hosp
Slide 38: Build - Powerful New Experiences That Drive Powerful Returns
38 38 BUILD - POWERFUL NEW EXPERIENCES THAT DRIVE POWERFUL RETURNS ~ $20M >90% INVESTMENT IRR 2 The Glacier Skywalk secured a significant return on investment, surpassing attendance expectations, and receiving international awards and media coverage Extensive Awards and Media Coverage Glacier Skywal
Slide 39: Refresh – Positioning for Highest and Best Use
39 39 REFRESH – POSITIONING FOR HIGHEST AND BEST USE ~ $22M ~28% INVESTMENT The Banff Gondola is undergoing significant renovations that will ensure its ongoing success as the must do attraction in Banff and position it for optimal returns 1 Assumes Exit EBITDA of 10x . IRR on full $20M capital inve
Slide 40: Gondola Renovation Update
40 40 GONDOLA RENOVATION UPDATE CONSTRUCTION TIMELINE OCT 2015 MAY 2016 AUG 2016 Closed for Construction during off - peak season Lift Re - Opened ahead of peak season Fully Open enhanced interior experience
Slide 41: Buy - Continuing to Add Scale Through High-Margin Acquisitions
41 41 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 January 2016 Maligne Lake Tours Interpretive boat tours, boat re
Slide 42: Refresh, Build, Buy Isn't Just About Buildings
42 42 REFRESH, BUILD, BUY ISN’T JUST ABOUT BUILDINGS x Attractions x Experiences x Hotels x Culture x Assets x Retail x Technology x Leadership x Food & Beverage Refresh, Build, Buy framework is driving improvements in all aspects of our business Create an umbrella brand for our collection of unique
Slide 43: Focused on Profitable Growth
43 43 FOCUSED ON PROFITABLE GROWTH Team Member Satisfaction & Engagement Guest Satisfaction & Loyalty Systems, Discipline, Execution Profitability and Growth SERVICE PROFIT CHAIN TEAM ALIGNMENT AUTHENTICITY ECONOMIES OF SCALE • Operations • Guest Service • Product Delivery • Marketing • Sales • RevM
Slide 44: RevMAX – Revenue Management for Maximum Yield
44 44 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 Revenue Management Right Product Right Customer Right Time Right Price Right Channel ATTRACT
Slide 45: Summary
45 45 Summary
Slide 46: Viad Opportunity Summary
46 46 VIAD OPPORTUNITY SUMMARY WELL - DEFINED GROWTH STRATEGIES VISION Clear plans for meaningful growth BALANCED CAPITAL ALLOCATION STRATEGY PERFORMANCE Focus on shareholder return TWO SOLID BUSINESS GROUPS STRENGTH Strong, proven foundation Viad is in a strong position to enhance shareholder value
Slide 47: Appendix
PLACES Appendix
Slide 48: Financial Summary 2011-2015
48 48 Millions (except per share amounts) 2011 2012 2013 2014 2015 Revenue: Marketing & Events Group 840.6$ 902.0$ 844.9$ 944.5$ 976.9$ Travel & Recreation Group 87.2 104.6 108.4 120.5 112.2 927.8$ 1,006.6$ 953.3$ 1,065.0$ 1,089.0$ Adjusted Segment EBITDA 1 : Marketing & Events Group 27.5$ 40.7$ 40.
Slide 49: Marketing & Events Group (GES) Key Metrics
49 49 MARKETING & EVENTS GROUP (GES) KEY METRICS • 3 - 5 year contracts • 90%+ renewal rate • Largest client is ~7% of GES revenue • Clients span broad range of industries; not overly exposed to any given industry US BASE SAME - SHOW GROWTH 1 2015 GEOGRAPHIC REVENUE MIX SHOW ROTATION 2 RECURRING & D
Slide 50: onPeak/Travel Planners – Acquired October 7, 2014
50 50 ONPEAK/TRAVEL PLANNERS – ACQUIRED OCTOBER 7, 2014 FOR $76.6M BUSINESS & SERVICES OVERVIEW KEY HIGHLIGHTS Leading technology platform , expert data analytics, innovative culture Strong customer service culture and capabilities with long - term client relationships STRATEGIC FIT EXTENDS FULL SER
Slide 51: onPeak/Travel Planners Integration Overview
51 51 ONPEAK/TRAVEL PLANNERS INTEGRATION OVERVIEW MERGER OVERVIEW Next largest serves 7% OTHER SYNERGIES • Increased scale provides stronger negotiating leverage with hotels to capture higher revenue commissions • Introduction of tiered pricing to increase booking capture rate • Best of breed capabi
Slide 52: Blitz – Acquired September 16, 2014
52 52 BLITZ – ACQUIRED SEPTEMBER 16, 2014 FOR £15M ($24.4M) • Company Description: Blitz Communications is an AV staging and creative services provider for the live events industry in the UK and continental Europe, including corporate events, congresses and conferences, trade shows and select consum
Slide 53: N200 – Acquired November 24, 2014
53 53 N200 – ACQUIRED NOVEMBER 24, 2014 FOR € 9.7M ($12.1M) BUSINESS & SERVICES OVERVIEW KEY HIGHLIGHTS Largest registration provider in the UK and The Netherlands Serves over 600 events each year, in 46 countries, supported by multi - lingual and multi - currency capabilities STRATEGIC FIT EXTENDS
Slide 54: Travel & Recreation Group (T&R) Key Metrics
54 54 TRAVEL & RECREATION GROUP (T&R) KEY METRICS HOSPITALITY METRICS 1 2015 GEOGRAPHIC REVENUE MIX 2015 LINE OF BUSINESS REVENUE MIX ATTRACTIONS METRICS 1 71% 23% 6% Brewster Glacier Park Alaska Denali Travel (Canada) (Montana) (Alaska) 37% 37% 14% 12% Hospitality Attractions Packaged Tours Transpo
Slide 55: Attractions - Awesome Experience with Compelling Cross-Sell
55 55 ATTRACTIONS - AWESOME EXPERIENCE WITH COMPELLING CROSS - SELL T&R’s attractions have strong financial performance and offer cross - selling opportunities. 570,000 visits Visitation in 2015 BANFF GONDOLA 570,000 VISITS GLACIER SKYWALK 275,000 VISITS GLACIER ADVENTURE 435,000 VISITS BANFF LAKE C
Slide 56: T&R Hospitality - Lodging Portfolio
56 56 T&R HOSPITALITY - LODGING PORTFOLIO The Travel & Recreation Group 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 Wi
Slide 57: Continued Opportunity to Scale Business
57 57 CONTINUED OPPORTUNITY TO SCALE BUSINESS ROOMS PROPERTIES ROOMS PROPERTIES BANFF / JASPER MARKET Town of Banff 6% 5% 4,752 40 Jasper 0% 0% 2,346 25 Lake Louise 0% 0% 1,133 8 Icefields Parkway 11% 10% 291 10 TOTAL 4% 4% 8,522 83 GLACIER NATIONAL PARK MARKET Whitefish 18% 5% 810 19 Glacier NP 13%