44 slides from Pursuit Attractions And Hospitality's investor presentation, Dec 7, 2015
Slide 1: Investor Presentation December 2015
1 Investor Presentation December 2015
Slide 2: Forward-Looking Statements
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 press release includes certain information, assumptions and discussions that m
Slide 3: Introduction to Viad; Marketing & Events; Travel & Recreation; Summary; Appendix
3 Introduction to Viad 4 - 7 Marketing & Events Group 8 - 15 Travel & Recreation Group 16 - 25 Summary 26 - 29 Appendix 30 - 44
Slide 4: Introduction to Viad
; ; Introduction to Viad AN a 4 S >!
Slide 5: Introduction to Viad
5 INTRODUCTION TO VIAD Viad is a SmallCap 600 company with two business groups and a clear strategy for growth and shareholder value 89% 11% M&E T&R REVENUE $1.1B ADJUSTED SEGMENT EBITDA 1 $91.3M 60% 40% MARKETING & EVENTS 2014 1 A reconciliation of this non - GAAP measure to segment operating incom
Slide 6: Thorough Review of Strategic Options
6 THOROUGH REVIEW OF STRATEGIC OPTIONS 1 • Announced review of strategic options to enhance shareholder value (including possible separation of M&E and T&R businesses and increasing dividends or share repurchases), working with JP Morgan • Announced repurchase authorization of 1M shares (613k shares
Slide 7: Strong earnings growth and cash generation
7 $211M 1 A reconciliation of this non - GAAP measure to Income from Continuing Operations can be found in the A ppendix. 2 Capex as a % of revenue was ~2% for GES and ~7% for T&R (excluding the Glacier Skywalk) from 2010 - 14. 3 Net of proceeds from divestitures of non - strategic assets totaling $
Slide 8: Marketing & Events Group Global Experience Specialists (GES)
8 Marketing & Events Group Global Experience Specialists (GES)
Slide 9: GES Growth Strategy
9 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 Establish GES as the Preferred Global , Full
Slide 10: Global Leader in Exhibitions Market with Opportunity for Growth
10 GLOBAL LEADER IN EXHIBITIONS MARKET WITH OPPORTUNITY FOR GROWTH GLOBAL REACH ESTABLISHED POSITION 1 IN KEY GLOBAL MARKETS RECOGNIZED ABILITY TO SERVICE BROADER GEOGRAPHIES 30% 55% 45% US UK Canada 1 GES Official Services Contracting market share (internal estimates) BROAD CUSTOMER SET IN MULTIPLE
Slide 11: Significant Opportunity in Under-Penetrated Live Event Segments
11 SIGNIFICANT OPPORTUNITY IN UNDER - PENETRATED LIVE EVENT SEGMENTS Consumer Events Industry leaders already select GES in every Live Event segment 67% GES REVENUE MIX (2015 EST.) 23% 6 % 4 % Exhibitions Congresses / Conferences Corporate Events
Slide 12: New Services Facilitate Penetration and Increase Competitiveness
12 NEW SERVICES FACILITATE PENETRATION AND INCREASE COMPETITIVENESS GES has made significant progress creating the most comprehensive suite of services for the live events industry • Enhances differentiation and overall competitiveness • Facilitates growth in under - penetrated segments (Congresses
Slide 13: Strategic Acquisitions Bring Leading Technology, Synergy, and Opportunity
13 STRATEGIC ACQUISITIONS BRING LEADING TECHNOLOGY, SYNERGY, AND OPPORTUNITY In - house provider of AV Services to top 4 UK venues Event registration for over 600 events in 42 countries Majority of the top 100 US shows use onPEAK 1 for event accommodations The strategic fit of GES acquisitions bring
Slide 14: Acquisitions Are Driving Results and Delivering Value
14 ACQUISITIONS ARE DRIVING RESULTS AND DELIVERING VALUE 1 Refers to Adjusted Segment EBITDA. A discussion of this non - GAAP measure can be found in the Appendix . 2 Assumes 2 - 3% perpetual growth rate 3 Percent of top 15 UK contracting events 4 Percent of US contracting events >$400K for onPeak a
Slide 15: GES Is Driving Profitable Growth
15 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 2014 2015 2016 $944.
Slide 16: Travel & Recreation Group (T&R)
16 Travel & Recreation Group (T&R) Brewster Travel Canada Glacier Park, Inc. Alaska Denali Travel
Slide 17: Integrated Offerings in Markets with Perennial Demand
17 INTEGRATED OFFERINGS IN MARKETS WITH PERENNIAL DEMAND T&R is comprised of four lines of business that work together, driving economies of scope in and around iconic destinations targeting 8.5+ million annual visitors - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2004 2005 2006 2007 2008 2009 20
Slide 18: Driving Growth Through Refresh, Build, Buy
18 DRIVING GROWTH IN HIGH VALUE AREAS THROUGH REFRESH, BUILD, BUY We have a focused growth strategy to add scale to the business by strategically investing in hospitality and attractions, which have the highest margins and strong return on investment Revenue ($M) 2010 70 2011 87 2012 105 2013 108 20
Slide 19: Build - Powerful New Experiences That Drive Powerful Returns
19 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 Skywalk J
Slide 20: Attractions - Awesome Experience with Compelling Cross-Sell
20 ATTRACTIONS - AWESOME EXPERIENCE WITH COMPELLING CROSS - SELL T&R’s attractions have strong financial performance and offer cross - selling opportunities. In addition to exceeding projections , the new Glacier Skywalk helped lift visits to the Glacier Adventure on the Columbia Ice Field 570,000 v
Slide 21: Refresh - Positioning for Highest and Best Use
21 REFRESH – POSITIONING FOR HIGHEST AND BEST USE ~ $20M >25% 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 2% perpetual growth rate. IRR on full $20M capital in
Slide 22: Buy - Proven Track Record of Returns on Acquisitions
22 BUY - PROVEN TRACK RECORD OF RETURNS ON ACQUISITIONS 22 1 Refers to Adjusted Segment EBITDA. A discussion of this non - GAAP measure can be found in the Appendix. 2 Assumes Exit EBITDA of 10x. January 2011 Grouse Mountain Lodge Year - round hotel in Whitefish, MT September 2011 Alaska Denali Trav
Slide 23: Hospitality Revenue Growth Outpaces Room Count
23 HOSPITALITY REVENUE GROWTH OUTPACES ROOM COUNT We have successfully pursued scale and enhanced performance in our hospitality operations 2010 2011 2012 2013 2014 443 703 789 953 1,031 +133% ‘14 vs. ‘10 +98% BANFF +122% GLACIER PARK # of Hotel Rooms 1 133% INCREASE IN ROOM COUNT $38.2 $42.7 $25.7
Slide 24: Continued Opportunity to Scale Business
24 CONTINUED OPPORTUNITY TO SCALE BUSINESS ROOMS PROPERTIES ROOMS PROPERTIES BANFF / JASPER MARKET Town of Banff 6% 5% 4,750 40 Jasper 0% 0% 2,346 25 Lake Louise 0% 0% 1,133 8 Icefields Parkway 11% 10% 291 10 TOTAL 4% 4% 8,520 83 GLACIER NATIONAL PARK MARKET Whitefish 18% 5% 810 19 Glacier NP 13% 20
Slide 25: Rationalizing Lower-Margin Lines of Business
25 RATIONALIZING LOWER - MARGIN LINES OF BUSINESS We are exiting certain lower - margin, capital intensive activities in our Transportation and Package Tours lines of business to improve margins and returns WHAT WE WON’T DO WHAT WE WILL DO • Provide charter transportation services × Commoditized and
Slide 26: Summary
Art and Science of Engage hae wy SUMMARY
Slide 27: 2016 Outlook
27 2016 OUTLOOK We expect significant growth in 2016 , with an increase in total segment operating income (EBIT) of 40% or more versus 2015 MARKETING & EVENTS GROUP • Revenue to exceed $1B (growth in the range of 10%) • Positive show rotation of $50M - $55M • Same - show growth in the mid - single d
Slide 28: Disciplined and Proactive Acquisition Program
28 Viad has a disciplined and proactive acquisition program focused on proprietary deal - sourcing in support of our business unit strategies to drive shareholder value ACTIVE ACQUISITION PIPELINE Culture requirements: • Integrity • Customer - focus • Innovation • Continuous improvement Strong cultu
Slide 29: Viad Opportunity Summary
29 VIAD OPPORTUNITY SUMMARY WELL - DEFINED GROWTH STRATEGIES VISION Clear plans for meaningful growth BALANCED CAPITAL ALLOCATION STRATEGY PERFORMANCE Focus on shareholder return TWO SOLID BUSINESS GROUPS STRENGTH Strong, proven foundation Viad is in a strong position to enhance shareholder value •
Slide 30: Appendix
30 APPENDIX
Slide 31: Viad Summary Income Statement Data
31 VIAD SUMMARY INCOME STATEMENT DATA Note: Certain amounts above may not foot due to rounding. 1 Refer to the following pages for discussion and reconciliation of these non - GAAP measures to the most comparable GAAP measures. 2 Corporate activities expense have been adjusted to exclude acquisition
Slide 32: Non-GAAP Financial Measures
32 NON - GAAP FINANCIAL MEASURES This document includes the presentation of “Income B efore O ther Items” , “Adjusted Segment Operating Income” and “Adjusted Segment EBITDA” , which are supplemental to results presented under accounting principles generally accepted in the United States of America (
Slide 33: Non-GAAP Financial Measures, Continued
33 NON - GAAP FINANCIAL MEASURES, CONTINUED Note: Certain amounts above may not foot due to rounding . INCOME BEFORE OTHER ITEMS Millions (except per share amounts) 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Income from Continuing Operations Attributable to Viad (1.8)$ 7.4$ 3.3$ 19.4$ 40.8$ (
Slide 34: Non-GAAP Financial Measures, Continued
34 NON - GAAP FINANCIAL MEASURES, CONTINUED Note: Certain amounts above may not foot due to rounding . INCOME BEFORE OTHER ITEMS Millions (except per share amounts) 9/30/2014 YTD 9/30/2015 YTD 9/30/2014 YTD 9/30/2015 YTD Income from Continuing Operations Attributable to Viad 48.0$ 27.8$ 2.38$ 1.38$
Slide 35: Non-GAAP Financial Measures, Continued
35 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 Moun
Slide 36: Marketing & Events Group (GES) Key Metrics
36 MARKETING & EVENTS GROUP (GES) KEY METRICS • 3 - 5 year contracts • 90%+ renewal rate • Largest contract is <5% of GES revenue • Clients span broad range of industries; not overly exposed to any given industry US BASE SAME - SHOW GROWTH 1 2014 GEOGRAPHIC REVENUE MIX SHOW ROTATION 2 RECURRING & DI
Slide 37: GES - Significant Opportunity for Growth in Under-Penetrated Segments
37 GES - SIGNIFICANT OPPORTUNITY FOR GROWTH UNDER - PENETRATED SEGMENTS GES holds a leading position delivering its Core Services to the Exhibitions segment of the market and is expanding into other Live Events segments and New Services Exhibitions 1 in 3 major US shows is a GES client ~14,000 event
Slide 38: onPeak/Travel Planners - Acquired October 7, 2014
38 ONPEAK/TRAVEL PLANNERS – ACQUIRED OCTOBER 7, 2014 FOR $76.3M MARKET COMPANY OVERVIEW 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
Slide 39: onPeak/Travel Planners Integration Overview
39 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 capabilit
Slide 40: Blitz - Acquired September 16, 2014
40 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 consumer
Slide 41: N200 - Acquired November 24, 2014
41 N200 – ACQUIRED NOVEMBER 24, 2014 FOR € 9.7M ($12.1M) MARKET COMPANY OVERVIEW 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 S
Slide 42: Travel & Recreation Group (T&R) Key Metrics
42 TRAVEL & RECREATION GROUP (T&R) KEY METRICS HOSPITALITY METRICS 1 2014 GEOGRAPHIC REVENUE MIX 2014 LINE OF BUSINESS REVENUE MIX ATTRACTIONS METRICS 1 72% 22% 6% Brewster Glacier Park Alaska Denali Travel (Canada) (Montana) (Alaska) 35% 36% 16% 13% Hospitality Attractions Packaged Tours Transporta
Slide 43: T&R Hospitality - Lodging Portfolio
43 T&R HOSPITALITY - LODGING PORTFOLIO 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 Property Name Location Operating Season Rooms Banff International Hotel Banff Nati
Slide 44: T&R Refresh - Improving Experience and Financial Returns
44 T&R REFRESH - IMPROVING EXPERIENCE AND FINANCIAL RETURNS 1 Based on 60% increase in annual retail revenue (including Starbucks) per passenger from 2008 (pre - renovation) to 2014. 2 Increase from 2011 (pre - renovation) to 2014. $1.3M UPGRADE BANFF GONDOLA LOWER TERMINAL $3.3M UPGRADE $1.3M INCRE