Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Investor Presentation (September 2012)
36 slides from Pursuit Attractions And Hospitality's investor presentation, Sep 24, 2012
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation September 2012
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: Viad Overview
Viad Overview ViadCorp(NYSE: VVI)operates2 business units: Travel& RecreationGroup,comprisedof Brewster, Glacier Park, and Alaska Denali Travel. Marketing& EventsGroup,comprisedof Global Experience Specialists (GES) and affiliates. 3
Slide 4: Company Highlights
Company Highlights Rapidly growing Travel & Recreation business providing high-end leisure travel experiences in and around North American national parks Global leader in producing some of the largest and most prestigious tradeshows and exhibitions Balance sheet strength $78.0 million in cash (6/30/
Slide 5: Travel & Recreation Group
Travel & Recreation Group7jAD
Slide 6: Travel & Recreation (T&R)
Travel & Recreation (T&R) Viad’s Travel & Recreation Group, comprised of Brewster, Glacier Park, Inc. and Alaska Denali Travel, offers experiential leisure travel services and rich front- country experiences to national park visitors. Services Strengths Hospitality Exclusive and unique services Recr
Slide 7: Travel & Recreation: Hospitality
Travel & Recreation: Hospitality The Travel & Recreation Group provides lodging accommodations in and around Glacier National Park, Denali National Park and Preserve, Banff National Park and Jasper National Park. Location OperatingSeason Rooms Owned Hotels Banff International Hotel Banff National Pa
Slide 8: Travel & Recreation: GNP Concession Contract
Travel & Recreation: GNP Concession Contract Glacier Park, Inc. (GPI) has been the chosen concessionaire in Glacier National Park since 1980. Concession contract covers all services provided by GPI within Glacier National Park 510 out of 1,017 total rooms in the Glacier National Park area are operat
Slide 9: Travel & Recreation: Hospitality Metrics
Travel & Recreation: Hospitality Metrics Hospitality Revenues Room Count vs. RevPAR* $40 $200 1200 $37.4 1,161 ** $190 $35 $31.0 $180 1100 $30 $28.2 $170 $25 $160 1000 $20 $150 924 924 $140 900 $15 $131 $131 $130 $124 $10 $120 800 $5 $110 $0 $100 700 2009 2010 2011 2009 2010 2011 RevPAR Room Count H
Slide 10: Travel & Recreation: Attractions
Travel & Recreation: Attractions The Travel & Recreation Group offers unique attractions that enhance the guest experience, including: The Banff Gondola, which offers visitors an unobstructed view of the Canadian Rockies and overlooks the town of Banff, Alberta (~475,000 passengers in 2011) Tours of
Slide 11: Travel & Recreation: Attractions Metrics
Travel & Recreation: Attractions Metrics Attractions Revenues # of Passengers vs. Rev per Passenger* Attractions revenue growth driven by price and volume increases * RevperPassengerdefinedastotalattractionsrevenuedividedbynumberof passengers. Amountshownrepresents simpleaverageof all T&R attraction
Slide 12: Travel & Recreation: Transportation and Package Tours
Travel & Recreation: Transportation and Package Tours The Travel & Recreation Group provides ground transportation services to group tours and individual travelers, including: Charter motorcoach services Sightseeing Airport shuttle and other scheduled services The Travel & Recreation Group offers in
Slide 13: Travel & Recreation: Transportation and Package Tours
Travel & Recreation: Transportation and Package Tours Transportation Revenues Package Tours Revenues $18 $20 $15.8 * $17.4 $16 $18 $14.8 $16 $14 $12.1 $14 $12 $12.7 $12 $10 $9.8 $10 $8 $8 $6 $6 $4 $4 $2 $2 $0 $0 2009 2010 2011 2009 2010 2011 Transportation and Package Tours revenues are also on the
Slide 14: Travel & Recreation: Acquisition Criteria
Travel & Recreation: Acquisition Criteria • “Buy right”– location, asset, price, ROIC, and terms • Significant opportunity to add value to acquired assets • Leverage economies of scalee.g.,– leveraging our major suppliers, such as our service supplier, to lower the cost of purchases, leveraging G&A
Slide 15: Marketing & Events Group
Marketing & Events GrouR7IAD
Slide 16: Marketing & Events Group: Overview
Marketing & Events Group: Overview The Marketing & Events Group is a leading global exhibition and tradeshow producer offering best-in-class event production, cutting-edge creative and design, and service delivery. Services Strengths Exhibitions & Events A leading market position Official Services C
Slide 17: Marketing & Events: Business Mix
Marketing & Events: Business Mix Revenues: U.S. vs. Int’l * 2011 US Revenues by Major LOB $1,000 2% 1% $800 24% $631.4 $568.4 $571.0 $600 73% $400 $197.8 $218.6 $200 $172.6 $0 Exhibitions -Official Services Contracting 2009 2010 2011 Exhibitions -EAC** and Other U.S. Int'l. Branded Entertainment Ret
Slide 18: Marketing & Events (U.S.): Exhibitions & Events
Marketing & Events (U.S.): Exhibitions & Events Official Services Contract with Show Organizer GES competes with other gives GES the exclusive right to provide services vendors to provide non- to Show Organizer and Exhibitors exclusive services to Exhibitors Show Organizer: Exhibitor Exclusive:* Exh
Slide 19: Marketing & Events (U.S.): Industry Size/Growth
Marketing & Events (U.S.): Industry Size/Growth Viad’s Marketing & Events Group derives the majority of its revenues from the $11.9* Billion Exhibition and Events Industry. Year-over- Year Change in Industry Metrics 6% 4% 3.2% 3.4% 3.2% 2.6% 2.8% 2.5% 2.1%2.4% 1.6% 2% 1.5% 1.5% 0% -0.6% -0.7% -2% -1
Slide 20: Marketing & Events (U.S.): Show Revenues
Marketing & Events (U.S.): Show Revenues Shows That Occur in the Same Quarter, Same City Each Year (Base Same-Shows) $160 $140 $120 $112 $107 $100 $100 $94 $80 8.3% growth in Base Same- $60 $49 $49 $44 $40 $43 $36 $46 $38 Show revenues 6/30/12 YTD $40 $36 $29 $20 $0 Shows That DO NOT Occur in the Sa
Slide 21: Marketing & Events (U.S.): Revenue Growth
Marketing & Events (U.S.): Revenue Growth Shows That Occur in the Same Shows That Occur in the Same Quarter, Same City Each Year Quarter, Different City Each Year (Base Same-Shows) $120 $300 $94.5 $94.9 $216.0 $232.3 $90.3 $250 $90 $212.1 $200 $60 $150 $100 $30 $50 $0 $0 2009 2010 2011 2009 2010 201
Slide 22: Marketing & Events (U.S.): Margin Improvement
Marketing & Events (U.S.): Margin Improvement Expect incremental margins of 20%+ on revenues beyond current revenue run rate. Cost Structure (2011) Key Initiatives Focus on labor management to improve Fixed Costs variable costs Variable Semi- Labor Drive down fixed expenses through Variable consolid
Slide 23: Marketing & Events (U.S.): Labor Management
Marketing & Events (U.S.): Labor Management Variable Labor as a % of Revenues (Base Same-Shows) 40.0% Key Initiatives 38.0% • Labor productivity gains at 37.4% 36.9% 36.8% show site • Rigorous & strategic planning 36.0% • Introduction of new tools to support planning, measurement and 34.0% benchmark
Slide 24: Marketing & Events (U.S.): Reduction in Overhead
Marketing & Events (U.S.): Reduction in Overhead U.S. Service Delivery Network Sq. Ft. 4.0 Key Initiatives 3.6 3.5 Optimize U.S. Service Delivery Network 3.0 • Reduce invested capital and 2.5 operating expenses through 2.5 rationalization of facilities, inventory and equipment 2.0 • Achievements to
Slide 25: Marketing & Events Group: Profit Improvement
Marketing & Events Group: Profit Improvement Targeting 5% operating margins for Total M&E in 2014, driven by initiatives to improve U.S. profitability Total M&E Revenues Total M&E Operating Margins $1,000 1.0% $900 0.6% $840.6 0.5% $800 $730.5 $756.5 $700 0.0% $600 $500 -0.5% $400 -0.7% -1.0% $300 $
Slide 26: Financials
Financials 26
Slide 27: Selected Annual Financials
Selected Annual Financials Revenues Adjusted EBITDA* $1,200 $60 $942.4 $1,000 $50 $844.8 $43.3 $805.8 $800 $40 $32.3 $600 $30 $400 $20 $12.8 $200 $10 $0 $0 2009 2010 2011 2009 2010 2011 Operating Income Income Before Other Items Per Share* $35 $0.70 $0.55 $0.60 $30 $25.4 $0.50 $25 $0.40 $20 $0.30 $0
Slide 28: Selected Quarterly Financials
Selected Quarterly Financials Revenues Adjusted EBITDA* $350 $30 $300 $290.1 $23.1 $268.8 $25 $238.7 $246.5 $250 $20 $218.3 $215.1 $216.2 $14.5 $14.8 $16.0 $197.4 $12.5 $200 $187.0 $15 $9.7 $8.9 $10 $150 $5 $100 $0.8 $0 $50 -$5 ($4.3) $0 -$10 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q210 Q310 Q4
Slide 29: Selected Balance Sheet Highlights
Selected Balance Sheet Highlights As of June 30, 2012: Cash: $78.0 million Shares Outstanding: 20.3 million Debt: $2.6 million Debt to Capital: 0.6% Free Cash Flow* CapEx $30 $25 $23.0 $21.5 $21.3 $20 $10.0 $20 $17.0 $10 $15 $0 ($10) $10 ($20) $5 ($30) ($30.9) ($40) $0 2009 2010 2011 2009 2010 2011
Slide 30: Disciplined Capital Deployment
Disciplined Capital Deployment Viad’s strong balance sheet enables the company to employ a disciplined capital deployment strategy. Selective investments to support organic growth Strategic acquisitions after careful due diligence Strategic fit in or adjacent to Viad’s core businesses Debt-to-Capita
Slide 31: Appendix
Appendix 31
Slide 32: Reconciliation of Income Before Other Items Per Share
Reconciliation of Income Before Other Items Per(1)Share 2009 2010 2011 Income (Loss) Before Other Items per Share: Income (loss) from continuing operations attributable to Viad $(5.28) $0.01 $0.43 Impairment charges, net of tax 4.92 0.01 -- Restructuring charges, net of tax 0.43 0.13 0.12 Resolution
Slide 33: Reconciliation of Income Before Other Items Per Share
Reconciliation of Income Before Other Items Per(1)Share Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Income (Loss) Before Other Items per Share: Income (loss) from continuing operations attributable to Viad $0.15 $0.23 $(0.24) $0.48 $0.22 $0.06 $(0.35) $0.05 $0.27 Impairment charges, net of tax -- -
Slide 34: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA (1) Adjusted EBITDA ($ Millions) 2009 2010 2011 Net income (loss) attributable to Viad $(104.7) $0.4 $9.2 Income from discontinued operations (0.7) (0.3) (0.5) Impairment charges 116.9 0.3 -- Interest expense 1.7 1.8 1.5 Income taxes (28.6) 1.7 3.9 Depreciation and
Slide 35: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA (1) Adjusted EBITDA Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 ($ Millions) Net income (loss) attributable to Viad $3.0 $4.8 $(4.4) $9.8 $4.5 $1.2 $(6.3) $1.0 $6.1 Income from -- -- (0.3) -- -- -- (0.5) -- (0.6) discontinued operations Impairment charges -- -- 0.3
Slide 36: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (1) Free Cash Flow ($ Millions) 2009 2010 2011 Net cash provided by (used in) operating activities $(6.2) $43.3 $34.7 Less: Capital expenditures (21.3) (17.0) (21.5) Dividends paid (3.3) (3.3) (3.2) Free cash flow (outflow) $(30.9) $23.0 $10.0 Note: Calculated amount