Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Investor Presentation (September 2016)
49 slides from Pursuit Attractions And Hospitality's investor presentation, Sep 13, 2016
Slide 1: Investor Presentation September 2016
1 1 Investor Presentation September 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” , “Segment Operating Income” , “Adjusted Segment Operating Income” and “Adjusted Segment EBITDA” , which are supplemental to results presented under accounting principles generally accepted in th
Slide 4: Non-GAAP Financial Measures, Continued
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
5 5 NON - GAAP FINANCIAL MEASURES, CONTINUED Note: Certain amounts above may not foot due to rounding . SEGMENT OPERATING INCOME, 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.
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 - 13 Marketing & Events Group 14 - 22 Travel & Recreation Group 23 - 32 Summary 33 - 35 Appendix 36 - 49 CONTENTS
Slide 8: Introduction to Viad
8 8 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 • Leading and defensible market positions • Recurring revenues and strong free cash flows • Experienced management team focused on shareholder v alue
Slide 9: Introduction to Viad
9 9 INTRODUCTION TO VIAD 90% 10% M&E T&R REVENUE $1.1B ADJUSTED SEGMENT EBITDA 1 $90.6M 60% 40% MARKETING & EVENTS 2015 1 Refers to Adjusted Segment EBITDA. Refer to pages 3 - 6 for important disclosures regarding this non - GAAP measure. TRAVEL & RECREATION GES is a global, full - service live even
Slide 10: Strategic Goals
10 10 STRATEGIC GOALS Viad is executing a focused growth strategy to enhance shareholder value through smart capital allocation and efficiently running and positioning our businesses for more strategic options , including a potential separation MARKETING & EVENTS TRAVEL & RECREATION • Scale to ≥$ 25
Slide 11: Disciplined acquisition program
11 11 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 12: Successful Track Record of Acquisitions
12 12 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 13: Earnings growth and capital allocation
13 13 $228M 1 Refers to Adjusted Segment EBITDA. Refer to pages 3 - 6 for important disclosures regarding this non - GAAP measure. 2 Capex as a % of revenue was ~2% for GES and ~7% for T&R (excluding construction of the Glacier Skywalk and renovation of the Gondola) from 2011 - 15. 3 Net of proceeds
Slide 14: Marketing & Events Group (GES)
14 14 Marketing & Events Group (GES)
Slide 15: GES Growth Strategy
15 15 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 16: Global Leader in Exhibitions Market with Opportunity for Growth
16 16 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 17: Opportunity for Growth in Higher-Margin Market Segments
17 17 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% 14% 3% Exhibitions Conferences Corporate Events Consumer Events Live Event Market Total Addressable Market 1 GES 2015 Market Share 2 Market Share Live Events is a big market and
Slide 18: Live Event Segments
18 18 Congresses / Conferences Exhibitions LIVE EVENT SEGMENTS Consumer Events Industry leaders already select GES in every Live Event segment 63% o f Revenue 1 25% 7% 5% Corporate Events o f Revenue 1 1 Percent of GES’ 2015 consolidated revenue. o f Revenue 1 o f Revenue 1
Slide 19: Opportunity for Growth in Higher-Margin Services
19 19 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 20: Acquisition of New Services to Fuel Growth
20 20 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 Servicing over 1,100 events in 43 countries Majority of the top 100 U.S. shows use onPeak 1 The strategic fi
Slide 21: Attractive Margins
21 21 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 22: GES Is Driving Profitable Growth
22 22 2014 2015 2016 (est.) $944M >$1B $977M 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 enh
Slide 23: Travel & Recreation Group
23 23 Travel & Recreation Group Brewster Travel Canada Glacier Park Alaska Denali Travel
Slide 24: T&R High-Value Assets in Markets with Perennial Demand
24 24 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 25: T&R Growth Strategy
25 25 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 26: Driving Growth Through Refresh, Build, Buy
26 26 70.0 87.2 104.6 108.4 120.5 112.2 >145 2010 2011 2012 2013 2014 2015 2016F Existing Hotels & Attractions Existing Package Tours & Transportation Acquisitions Glacier Skywalk (Build) DRIVING GROWTH IN HIGH VALUE AREAS THROUGH REFRESH, BUILD, BUY We are strategically investing in attractions and
Slide 27: Refresh – Positioning for Highest and Best Use
27 27 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 28: Build – Powerful New Experiences
28 28 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 29: Buy – Continuing to Add Scale
29 29 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 30: Refresh, Build, Buy Isn't Just About Buildings
30 30 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 31: RevMAX – Revenue Management for Maximum Yield
31 31 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 32: T&R's Strategy Is Driving Meaningful Growth
32 32 2014 2015 2016 (est.) $121M > $145M $112M T&R’S STRATEGY IS DRIVING MEANINGFUL GROWTH AND MARGIN EXPANSION T&R is pursuing a focused growth strategy to add scale to the business by strategically investing in hospitality and attractions, which have the highest margins and a strong return on inv
Slide 33: Summary
33 33 Summary
Slide 34: Viad Opportunity Summary
34 34 VIAD OPPORTUNITY SUMMARY WELL - DEFINED GROWTH STRATEGIES VISION Clear plans for meaningful growth BALANCED CAPITAL ALLOCATION STRATEGY PERFORMANCE Focus on shareholder return TWO SOLID BUSINESS GROUPS STRENGTH Strong, proven foundation Viad is in a strong position to enhance shareholder value
Slide 35: Longer-Term Outlook
35 35 LONGER - TERM OUTLOOK We expect to drive continued growth over the next several years, with market share gains in higher - margin areas and efficiency gains 1 Refers to Adjusted Segment EBITDA Margin. Refer to pages 3 - 6 for important disclosures regarding this non - GAAP measure. REVENUE GRO
Slide 36: Appendix
PLACES Appendix
Slide 37: Historical Financial Data
37 37 HISTORICAL FINANCIAL DATA Note: Certain amounts above may not foot due to rounding. 1 Refer to pages 3 - 6 for important disclosures regarding this non - GAAP measure. Millions (except per share amounts) 2011 2012 2013 2014 2015 Revenue: Marketing & Events Group 840.6$ 902.0$ 844.9$ 944.5$ 976
Slide 38: Long History of Strategic Divestitures
38 38 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 39: Marketing & Events Group (GES) Key Metrics
39 39 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 40: New Services – Audio-Visual / Digital Production
40 40 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 41: New Services – Event Accommodations
41 41 NEW SERVICES – EVENT ACCOMMODATIONS GES is a 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 , inc
Slide 42: New Services – Event Accommodations
42 42 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 43: New Services – Registration and Data Analytics
43 43 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 44: Core Services
44 44 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 45: Operational Excellence
45 45 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 46: Travel & Recreation Group (T&R) Key Metrics
46 46 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 47: Attractions – Awesome Experience with Compelling Cross-Sell
47 47 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 48: T&R Hospitality – Lodging Portfolio
48 48 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 49: Continued Opportunity to Scale Business
49 49 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%