Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Q1 2022 Earnings Presentation
34 slides from Pursuit Attractions And Hospitality's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Earnings Call
FIRST QUARTER 2022 EARNINGS CALL MAY 5, 2022
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains a number of forward- • travel industry disruptions; • our multi-employer pension plan funding looking statements. Words, and variations of words, obligations; • seasonality of our businesses; such as “will,” “may,” “expect,” “would,” “could,” “mi
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This document includes the presentation of “Adjusted EBITDA”, which is supplemental Adjusted EBITDA is defined by management as net income attributable to Viad before to results presented under accounting principles generally accepted in the United States of income (loss)
Slide 4: Management Representatives
MANAGEMENT REPRESENTATIVES ELLEN INGERSOLL DAVID BARRY CFO PRESIDENT PURSUIT 4
Slide 5: Q1'22 Highlights
Q1’22 HIGHLIGHTS Q122 results significantly better than expected and full 1 year expectations raised Pursuit Refresh, Build, Buy strategy continues to fuel 2 growth GES launches Spiro to accelerate growth in Brand 3 Experiences 5
Slide 6: Financial Performance
FINANCIAL PERFORMANCE ELLEN INGERSOLL CFO
Slide 7: Strong Q1'22 Results Above Guidance
STRONG Q1’22 RESULTS ABOVE GUIDANCE GES significantly exceeded guidance (in millions) Q1’22 Revenue was ~59% of Q1’19 versus prior Revenue $ 177.4 guidance of ~50%, and Adjusted EBITDA Pursuit Revenue 23.8 was positive versus expectation for a loss GES Revenue 153.6 Industry recovery continues
Slide 8: Pursuit Q1'22 Results Year-over-Year
PURSUIT Q1’22 RESULTS YEAR-OVER-YEAR Record Q1 revenue was driven by: (in millions) Q1’22 Q1’21 $ Change Lifting of COVID restrictions (including Revenue: Canadian border re-opening) Same Store New Experiences $ 18.7 5.1 $ 9.8 - $ 8.9 5.1 Refreshing of assets and revenue Total Pursuit $ 23.8 $
Slide 9: GES Q1'22 Results Year-over-Year
GES Q1’22 RESULTS YEAR-OVER-YEAR Revenue growth reflects resumption of in- (in millions) Q1’22 Q1’21 $ Change person event activity Revenue: Revenue as % of same 77% Spiro $ 42.8 $ 12.1 $ 30.8 period in 2019 GES Exhibitions 111.8 7.2 104.7 IMPACTED Inter-segment Elims (1.1) (0.1) (1.0) 57% BY 53%
Slide 10: Liquidity Remains Strong
LIQUIDITY REMAINS STRONG LIQUIDITY & Q1'22 CASH FLOWS (000's) 12/31/21 Liquidity 149,022 Cash from Operations 17,923 Ending liquidity of $145 million Capital Expenditures: Pursuit (11,491) was significantly higher than prior GES (1,009) guidance Corporate (70) Primarily due to stronger than Conv
Slide 11: Balance Sheet Flexibility to Continue Growth Investments
BALANCE SHEET FLEXIBILITY TO CONTINUE GROWTH INVESTMENTS During Q1, we amended the CAPITALIZATION DATA (000's) Q1'22 Q4'21 financial covenants related to our Cash and Cash Equivalents 57,902 61,600 revolving credit facility to provide Term Loan B 398,000 399,000 additional flexibility through Q1’2
Slide 12: David Barry, President Pursuit
DAVID BARRY PRESIDENT PURSUIT
Slide 13: Pursuit Delivered Record Q1 Revenue
PURSUIT DELIVERED RECORD Q1 REVENUE Pursuit Revenue (in millions) $23.8 Q1’22 revenue of $23.8 million Acquired/opened increased 143% year over year and 5.1 after 2020 123% from Q1’19 Acquired/opened 6.3 from 2019-2020 $11.4 million was generated by new experiences acquired/opened from $10.7 $9.
Slide 14: Three Drivers of Strong Q1 Performance
THREE DRIVERS OF STRONG Q1 PERFORMANCE EXECUTION OF PURSUIT’S REFRESH BUILD BUY STRATEGY Banff Gondola and FlyOver Strong Demand for Lodging Benefit from Continued 1 Canada Drove Strong Same- 2 Room Nights and Continued 3 Investment in High-Margin, Store Attraction Performance Revenue Maximization E
Slide 15: Pursuit's Lodging Pacing Remains Strong
PURSUIT’S LODGING PACING REMAINS STRONG Banff Jasper Glacier Park Alaska Rooms Revenue ($M, CAD) Rooms Revenue ($M, CAD) Rooms Revenue ($M) Rooms Revenue ($M) +178% +83% +8% +3% 8.6 21.5 14.2 4.8 4.9 8.1 13.1 10.5 3.2 11.8 3.1 2019 2021 2022 2021 2022 2019 2021 2022 2019 2021 2022 • ADR +26% vs. 202
Slide 16: Pursuit Iconic Locations Attractions
PURSUIT ICONIC LOCATIONS ATTRACTIONS Banff Lake Maligne Glacier Glacier Golden Open Top Kenai Denali Sky Glacier Gondola Minnewanka Lake Adventure Skywalk Skybridge Touring Fjords Backcountry Lagoon Raft Co Cruise Cruise Tours Adventure • Anticipate 2.3 million attraction visitors at Pursuit Iconic
Slide 17: Pursuit FlyOver Attractions
PURSUIT FLYOVER ATTRACTIONS Vancouver, Reykjavik, Las Vegas, Chicago, Toronto, BC Iceland NV IL (2024) ON (2024) • Anticipate 1.1 million attraction visitors at Pursuit FlyOver Attractions in 2022 17
Slide 18: Hospitality Profit Chain
18 HOSPITALITY PROFIT CHAIN Team Member Guest Systems, Profitability Retention, Satisfaction Discipline & & Growth Satisfaction & & Loyalty Execution Engagement © Pursuit All Rights Reserved | Confidential C U LT U R E | O U R C O M P E T I T I V E A D VA N TA G E 18
Slide 19: Pursuit's Margin Recovery
PURSUIT’S MARGIN RECOVERY Pursuit Adjusted EBITDA Margin Drivers of Margin Recovery Attraction model is built to scale 36% 35%+ Return of long-haul international guests ~ 28% 23% Pricing power Disciplined expense management New high-margin attractions coming online 2019 2021 2022 Return to
Slide 20: Steve Moster, President & CEO
STEVE MOSTER PRESIDENT & CEO
Slide 21: GES Revenue Is Rebounding
GES REVENUE IS REBOUNDING GES Revenue (in millions) Q1’22 revenue of $154 million was stronger than expected $262 Reached ~59% of pre-pandemic 67 Q1’19 vs. expectation of ~50% $154 Spiro was 64% of Q1’19 43 Spiro 195 GES Exhibitions was 57% of Q1’19 GES 112 Exhibitions $19 12 Q1'19 Q1'21 Q1'
Slide 22: Show Sizes Continued to Improve in Q1
SHOW SIZES CONTINUED TO IMPROVE IN Q1 GES US EXHIBITIONS SHOW REVENUE VS. Same-show revenue for GES US Exhibitions was ~73% of pre- LAST PRE-PANDEMIC OCCURRENCE pandemic level 75% 73% Still seeing wide variation in event performance with some at 67% 65% or above and some well-below pre-pandemic
Slide 23: GES Exhibitions Improved Cost Structure
GES EXHIBITIONS IMPROVED COST STRUCTURE Efforts to remove fixed costs GES Exhibitions Q1 Flow-Through and variabilize GES’ cost (in millions) Q1'22 Q1'21 Change structure during pandemic are yielding results Revenue $ 111.8 $ 7.2 $ 104.7 Adjusted EBITDA $ 2.0 $ (8.7) 19% Flow-Through 19% During
Slide 24: Spiro Client Roster Strength
SPIRO CLIENT ROSTER STRENGTH REPRESENTING THE BEST OF THE BEST HEALTHCARE AEROSPACE & MACHINERY & FINANCIAL TECHNOLOGY DEFENSE INDUSTRIAL TECHNOLOGY Spiro 10 of the Top 10 3 of the Top 10 8 of the Top 9 of the top 10 6 of the Top 10 works Pharma Companies Aerospace & Defense Machinery & Industrial F
Slide 25: Spiro Addressable Market
SPIRO ADDRESSABLE MARKET Experiential Marketing TAM is ~$95B and forecasted to grow by 8% annually 2021 Experiential Marketing Categories ($,000) B2B Events $27B Live Consumer Events $32B Consumer Event Sponsorship $36B Source: PQ Media’s Global Advertising & Marketing Spend Forecast, 2021-2025, Dec
Slide 26: Financial Outlook
DRAFT FINANCIAL OUTLOOK ELLEN INGERSOLL CFO 26
Slide 27: Financial Outlook - Pursuit
FINANCIAL OUTLOOK - PURSUIT The following expectations assume no future material adverse changes to the macro environment from COVID, geo-political events, or other factors. KEY ASSUMPTIONS Adjusted EBITDA Guidance • US same store revenue outperforms 2019 on strong leisure ($millions) travel demand
Slide 28: Financial Outlook - GES
FINANCIAL OUTLOOK - GES The following expectations assume no future material adverse changes to the macro environment from COVID, geo-political events, or other factors. KEY ASSUMPTIONS Adjusted EBITDA Guidance ($millions) • Exhibitions same-show revenue will generally remain at or better than 75% o
Slide 29: Clear Path to Accelerate Growth and Enhance Shareholder Returns
CLEAR PATH TO ACCELERATE GROWTH AND SIGNIFICANTLY ENHANCE SHAREHOLDER RETURNS Proven Success Executing Experienced Management Growth Strategy and Team Focused on Driving Strong Returns Shareholder Value 53% 47% Strong Liquidity Position Capitalized on Pandemic and Financial Flexibility to Disruption
Slide 30: Appendix
APPENDIX
Slide 31: Q1 Revenue and Adjusted EBITDA
Q1 REVENUE AND ADJUSTED EBITDA REVENUE AND ADJUSTED EBITDA (000's) Q122 Q121 VAR ($) Revenue: Pursuit 23,784 9,790 13,994 GES: Spiro 42,816 12,059 30,757 GES Exhibitions 111,831 7,152 104,679 GES Intersegment Eliminations (1,071) (66) (1,005) Total GES 153,576 19,145 134,431 Total Revenue 177,360 28
Slide 32: Non-GAAP Financial Reconciliation
NON-GAAP FINANCIAL RECONCILIATION VIAD CONSOLIDATED (000's) 2019 2020 2021 Q121 Q122 (1) Revenue 1,302,736 415,435 507,340 28,935 177,360 Net Income (Loss) Attributable to Viad 22,035 (374,094) (92,655) (43,152) (29,001) Net Income (Loss) Attributable to Noncontrolling Interest 2,309 (1,376) 1,686 (
Slide 33: Pursuit Q1'22 Key Performance Metrics
PURSUIT Q1’22 KEY PERFORMANCE METRICS Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Change vs. 2021 New New As Same- As FX Same- As Same- Reported Experiences(1) Store(2) Reported Experiences(1) Impact(3) Store(2) Reported Store(2) Attractions Key Performance Indicators: Number
Slide 34: Pursuit Revenue by Line of Business
PURSUIT REVENUE BY LINE OF BUSINESS Three Months Ended March 31, (in thousands) 2022 2021 Change vs. 2021 Revenue : (1) Pursuit: Attractions $ 12,501 $ 2,256 ** Hospitality 9,415 6,941 35.6% Transportation 1,288 533 ** Other 580 60 ** Total Pursuit $ 23,784 $ 9,790 ** Segment operating loss: Total P
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