Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Investor Presentation (November 2023)
50 slides from Pursuit Attractions And Hospitality's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
INVESTOR PRESENTATION NOVEMBER 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains a number of forward- • seasonality of our businesses; • natural disasters, weather conditions, accidents, and looking statements. Words, and other catastrophic events; • the impact of the COVID-19 pandemic on our variations of words, such as “wil
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This document includes the presentation of “Adjusted EBITDA”, which is supplemental income (loss) from discontinued operations, interest expense and interest income, income to results presented under accounting principles generally accepted in the United States of taxes,
Slide 4: Summary / Appendix
5 10 17 SUMMARY 26 APPENDIX 28
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS 1 HIGH-QUALITY 2 CREATING 3 POSITIONED FOR BUSINESSES WITH EXTRAORDINARY ONGOING STRONG LEADING AND EXPERIENCES AND GROWTH DEFENSIBLE MARKET STRONG RETURNS FOR ▪ Investments in new world- POSITIONS OUR SHAREHOLDERS class, high-margin ▪ Proven success executing experiences to sc
Slide 6: Viad Is a Leading Global Provider of Extraordinary Experiences
VIAD IS A LEADING GLOBAL PROVIDER OF EXTRAORDINARY EXPERIENCES OUR MISSION is to drive significant and sustainable growth by delivering extraordinary experiences for our teams, clients, and guests GLOBAL ATTRACTIONS & HOSPITALITY COMPANY GLOBAL LIVE EVENTS & EXPERIENTIAL MARKETING COMPANY ▪ Inspirin
Slide 7: Our Strategy to Maximize Shareholder Value
OUR STRATEGY TO MAXIMIZE SHAREHOLDER VALUE Smart allocation of capital Drive accelerated growth Drive revenue growth in through significant experiential marketing investment in Pursuit’s through Spiro Refresh, Build, Buy high- Continually evaluate options return growth opportunities to maximize shar
Slide 8: Creating Value with Capital Allocation Strategy
CREATING VALUE WITH CAPITAL ALLOCATION STRATEGY We prioritize being strong stewards of our capital to maximize shareholder value using a balanced approach 1 MAINTAIN STRONG BALANCE SHEET CREATING VALUE CASE STUDIES ▪ $201.3 million in liquidity and 2.5x net leverage ratio as of September 30, 2023 ▪
Slide 9: Significant Catalysts and Tailwinds to Drive Year-over-Year Growth
SIGNIFICANT CATALYSTS AND TAILWINDS TO DRIVE MEANINGFUL YEAR-OVER-YEAR GROWTH CONSOLIDATED FY’24 OUTLOOK ADJUSTED EBITDA ($M) PURSUIT GES ~135-143 ▪ FlyOver Chicago opens in ▪ Major non-annual shows March 2024 (~$70M of incremental 116 ▪ Strong demand for iconic, revenue vs. 2023) unforgettable, ins
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Slide 11: Pursuit Is a Global Attractions & Hospitality Company
PURSUIT IS A GLOBAL ATTRACTIONS & HOSPITALITY COMPANY A vertically-integrated attractions and hospitality company that owns and operates a collection of world-class attractions, distinctive hotels, and engaging tours in iconic destinations ATTRACTIONS HOTELS F&B, RETAIL & TRANSPORTATION ▪ 13 World-C
Slide 12: Pursuit's Unforgettable, Inspiring Experiences
PURSUIT’S UNFORGETTABLE, INSPIRING EXPERIENCES Located in some of the world’s most remarkable places with meaningful barriers to entry and strong perennial demand BANFF JASPER GLACIER PARK ALASKA COLLECTION SKY LAGOON FLYOVERS COLLECTION COLLECTION ▪ 2022 Revenue: ~$153M ▪ 2022 Revenue: ~$58M ▪ 2022
Slide 13: Pursuit's Experiences Have Pricing Power
PURSUIT’S EXPERIENCES HAVE PRICING POWER Our continued focus on the guest experience and revenue maximization in capacity constrained iconic destinations allows us to drive increases in rates and spend per guest while maintaining high guest reviews MOUNT ROYAL HOTEL REFRESH REVENUE MANAGEMENT BANFF
Slide 14: Pursuit's Powerful Growth Strategy
PURSUIT’S POWERFUL GROWTH STRATEGY Investing through Pursuit’s REFRESH BUILD BUY REFRESH, BUILD, BUY Strategic assets that drive To optimize guest experience, To create new guest guest experience, economies strategy since 2015 to market position, and experiences and revenue of scale and scope, drive
Slide 15: Pursuit Delivers Significant Profitable Growth
PURSUIT DELIVERS SIGNIFICANT PROFITABLE GROWTH KEY GROWTH DRIVERS ADJUSTED EBITDA ($M) ▪ Strong demand for iconic, unforgettable, inspiring experiences ~91-95 Expect to ▪ Barriers to entry with strong moats MORE THAN ▪ World-class attractions with meaningful TRIPLE visitation and throughput Adjusted
Slide 16: Why We Will Be Successful
WHY WE WILL BE S U CC E S S F U L We believe that collecting memories is far more important than collecting things. Since the beginning of time, human beings share a passion for exploration and the search for remarkable experiences. Our MISSION is to connect guests and staff to iconic places through
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Slide 18: GES Is a Global Live Events & Experiential Marketing Company
GES IS A GLOBAL LIVE EVENTS & EXPERIENTIAL MARKETING COMPANY A global, full-service live events company offering a comprehensive range of event and experiential marketing services for exhibitions/conferences and corporate brand marketers SPIRO GES EXHIBITIONS Strong growth opportunity in large, Mark
Slide 19: Spiro Is a Global Experiential Marketing Agency
SPIRO IS A GLOBAL EXPERIENTIAL MARKETING AGENCY THIS IS SPIRO DELIVERING CREATIVE AND STRATEGIC EVENTS AND EXPERIENCES into the large, fragmented ~$70B market MEETINGS & ENVIRONMENTS & EVENTS PERMANENT INSTALLATIONS MARKETING & MEASUREMENT EXHIBITS & PROGRAM BRAND & MANAGEMENT PRODUCT ACTIVATIONS So
Slide 20: Spiro Has Meaningful Scale with a Strong and Growing Client Roster
SPIRO HAS MEANINGFUL SCALE WITH A 49 STRONG AND GROWING CLIENT ROSTER NEW CLIENTS SINCE SPIRO LAUNCH IN REPRESENTING OVER 1,500 CORPORATE CLIENTS AND THE BEST OF THE BEST Q1’22 HEALTHCARE AEROSPACE & MACHINERY & FINANCIAL TECHNOLOGY DEFENSE INDUSTRIAL TECHNOLOGY 10 of the Top 10 Spiro Pharma Compani
Slide 21: Spiro Is Built for Growth
SPIRO IS BUILT FOR GROWTH LARGE FRAGMENTED GROWING MARKET Uniquely positioned to win business from new and existing clients Experiential marketing is ✓ Global network forecasted to rise globally at ✓ End to end in-house solutions – ~9% CAGR to $105B by 2026 from strategy & creative to execution & an
Slide 22: GES Exhibitions Is a Leading Contractor for Tradeshow Organizers
GES EXHIBITIONS IS A LEADING CONTRACTOR FOR TRADESHOW ORGANIZERS GLOBAL LEADER #2 market share in the US #1 market share in the UK RECURRING REVENUE 3–5 year contracts SERVICES PROVIDED: High Renewal Rates ▪ Material Handling ▪ Graphics and Signage ▪ Electrical and Rigging WE SERVE ▪ Furnishings and
Slide 23: Exhibitions' Industry Has Substantially Recovered with Room for More Growth
EXHIBITIONS’ INDUSTRY HAS SUBSTANTIALLY RECOVERED WITH ROOM FOR MORE GROWTH GES US Exhibitions Same-Show* Revenue and Square Footage vs. 2019 Pre-Pandemic Occurrence ▪ In Q3’23, GES Exhibitions’ same GES’ revenue per net square foot of event show revenue is now exceeding space has improved vs. pre-p
Slide 24: GES Drives Strong Free Cash Flow
GES DRIVES STRONG FREE CASH FLOW KEY GROWTH DRIVERS ADJUSTED EBITDA – CAPEX ($M) ▪ Substantial benefit in 2024 from major non-annual shows (~$70M of incremental revenue vs. 2023) ~43-47 Expect 45 STRONGER ▪ Continued focus on efficiency with lean productivity Free Cash initiatives Flow in 2024 ▪ Spi
Slide 25: Why We Will Be Successful
WHY WE WILL BE S U CC E S S F U L Live events and other forms of experiential marketing provide a powerful means to drive business growth. We are primed to create what is possible for our clients and to be the industry leader. Our MISSION is to create the most meaningful and memorable experiences fo
Slide 26: Investment Opportunity Summary
INVESTMENT OPPORTUNITY SUMMARY
Slide 27: Creating Extraordinary Experiences and Strong Returns
CREATING EXTRAORDINARY EXPERIENCES AND STRONG RETURNS Proven Success Executing Experienced Management Growth Strategy and Team Focused on Driving Strong Returns Shareholder Value 53% 47% Ongoing Investments to Benefiting from Industry Scale Pursuit’s Iconic Recovery and Delivering Locations New Grow
Slide 28: Appendix
APPENDIX
Slide 29: Non-GAAP Financial Reconciliation (Viad Consolidated)
NON-GAAP FINANCIAL RECONCILIATION VIAD CONSOLIDATED ($M) 2015 2016 2017 2018 2019 2020 2021 2022 Revenue $ 1,089.0 $ 1,205.0 $ 1,307.0 $ 1,237.3 $ 1,302.7 $ 415.4 $ 507.3 $ 1,127.3 Net Income (Loss) Attributable to Viad $ 26.6 $ 42.3 $ 57.7 $ 49.2 $ 22.0 $ (374.1) $ (92.7) $ 23.2 Net Income (Loss) A
Slide 30: Non-GAAP Financial Reconciliation (GES)
NON-GAAP FINANCIAL RECONCILIATION GES ($M) 2015 2016 2017 2018 2019 2020 2021 2022 (1) Revenue $ 976.9 $ 1,054.7 $ 1,133.1 $ 1,052.0 $ 1,079.9 $ 338.6 $ 320.3 $ 828.0 Operating Income (Loss) $ 27.6 $ 51.1 $ 50.7 $ 39.6 $ 35.9 $ (73.9) $ (51.6) $ 44.9 Depreciation 20.2 21.3 26.4 28.5 24.9 21.6 16.3 1
Slide 31: Our Experienced Executive Management Team
OUR EXPERIENCED EXECUTIVE MANAGEMENT TEAM STEVE MOSTER - PRESIDENT & CHIEF EXECUTIVE OFFICER ELLEN INGERSOLL - CHIEF FINANCIAL OFFICER • Has served as President and CEO of Viad since 2014 • Has served as CFO of Viad since 2002 and as President of GES from 2010 • During her tenure, the Company succes
Slide 32: Our Experienced Executive Management Team
OUR EXPERIENCED EXECUTIVE MANAGEMENT TEAM JEFF STELMACH - PRESIDENT SPIRO LESLIE STRIEDEL - CHIEF ACCOUNTING OFFICER • Joined Viad in 2021 to lead GES’ growth in Brand • Has served as Chief Accounting Officer of Viad Corp Experiences since 2014 • Prior to joining the Company, he served as Opus • Pre
Slide 33: Our Mission & What We Stand For
OUR MISSION & WHAT WE STAND FOR OUR MISSION Drive significant and sustainable growth by delivering extraordinary experiences for our teams, clients, and guests OUR VISION Create the world’s most extraordinary experiences PEOPLE FUTURE HONESTY, BE FIRST FOCUSED ALWAYS EXTRAORDINARY 33
Slide 34: Our ESG Commitment
OUR ESG COMMITMENT We are committed to delivering extraordinary experiences that support a more sustainable world for generations to come. We protect and improve our world by continuously investing in our people, reducing our environmental impact, and honoring our communitie s. OUR PILLARS AND INITI
Slide 35: Geographic Overview
GEOGRAPHIC OVERVIEW SKY LAGOON (ICELAND) ALASKA COLLECTION (ALASKA) PURSUIT 2022 REVENUE MIX ($299M TOTAL) 1400867_1 1400867_1 GLACIER PARK COLLECTION (MONTANA) BANFF JASPER COLLECTION (CANADA) Banff Jasper Collection Glacier Park Collection Alaska Collection FlyOver (1) Sky Lagoon 8% 8% 13% 51% 20%
Slide 36: Experience Pursuit
EXPERIENCE PURSUIT We invite you to experience some of our inspiring Refresh, Build, Buy growth investments in person or through the VIDEO LINKS BELOW: REFRESH BUILD BUY BANFF GONDOLA SKY LAGOON GOLDEN SKYBRIDGE GLACIER VIEW LODGE FLYOVER LAS VEGAS MALIGNE VALLEY MOUNT ROYAL HOTEL FLYOVER ICELAND KE
Slide 37: Pursuit's Iconic Location Attractions
PURSUIT’S ICONIC LOCATION ATTRACTIONS A collection of 10 inspiring and unforgettable, world-class attractions in renowned global travel locations with attractive margins and barriers to entry ADDED 4 HIGH-QUALITY BUCKET LIST EXPERIENCES FROM 2020 TO PRESENT THAT CONTINUE TO RAMP BANFF LAKE MALIGNE G
Slide 38: Pursuit's FlyOver Flying Ride Experiences
PURSUIT’S FLYOVER FLYING RIDE EXPERIENCES Multi-sensory flight ride experiences showcasing awe-inspiring scenery with state-of-the-art motion seating, media, and special effects that simulate a true flying experience VANCOUVER INVESTMENT HIGHLIGHTS Opened 2013 61 seats ▪ High-quality guest experienc
Slide 39: Pursuit's Iconic Location Hotels
PURSUIT’S ICONIC LOCATION HOTELS A collection of 27 inspiring and unforgettable, distinctive hotels with 2,373 rooms in renowned global travel locations with occupancy compression and barriers to entry MORE THAN DOUBLED ROOM NIGHTS AVAILABLE FROM 2019 TO PRESENT WITH NEW HOTELS BANFF | JASPER GLACIE
Slide 40: Pursuit's New Experiences Overview
PURSUIT’S NEW EXPERIENCES OVERVIEW Added 11 new experiences from 2019 to Present NEW EXPERIENCES – 2019 TO PRESENT DATE Belton Chalet – 27 rooms and dining located outside the west entrance to Glacier National Park Acquired May 2019 Mountain Park Lodges – 60% equity interest in 7 year-round hotels i
Slide 41: Pursuit's Locations Have Strong Perennial Demand
PURSUIT’S LOCATIONS HAVE STRONG PERENNIAL DEMAND PARK VISITATION 7,000,000 9/11 Recession SARS Recession COVID-19 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Banff & J
Slide 42: Seasonality
SEASONALITY Pursuit experiences peak activity during the summer months. During 2022, 81% of Pursuit’s revenue was earned in the second and third quarters. Pursuit Revenue by Quarter ($M) 187 164 135 118 107 112 97 88 78 55 49 33 41 45 48 36 34 24 22 23 5 8 10 11 14 10 5 10 14 15 9 Q1 Q2 Q3 Q4 2016 2
Slide 43: What We Do
WHAT WE DO Specializing in results-based experiences, we activate, grow, and evolve brands through our hybrid experiential solutions: MEETINGS & EVENTS EXHIBITS & PROGRAM ENVIRONMENTS & BRAND & PRODUCT MARKETING & ▪ Keynote Presentations MANAGEMENT PERMANENT ACTIVATIONS MEASUREMENT ▪ Annual Meetings
Slide 44: Success Stories: RISE at the Paris Air Show
SUCCESS STORIES: RISE AT THE PARIS AIR SHOW As a world-leading provider of jet engines, commercial and military aircraft systems, GE Aerospace partnered with Spiro to inspire minds at the Paris Air Show 2023 and bring to life its incredible heritage culminating in the story of RISE – its revolutiona
Slide 45: Success Stories: The Need for Speed
SUCCESS STORIES: THE NEED FOR SPEED Across 14 of the most iconic cities in the world, Formula E is the world’s largest electric motorsport race series combining an incredible racing spectacle with its sustainable global messaging. ▪ Partnering with iconic luxury brand sponsor Hugo Boss, we designed
Slide 46: Success Stories: Finding Beauty in Science Through Technology
SUCCESS STORIES: FINDING BEAUTY IN SCIENCE THROUGH TECHNOLOGY For over a century, L’Oréal has been dedicated to one sole vocation: creating beauty. Partnering with the brand at the American Academy of Dermatology appearance in 2023, we brought to life the brand’s goal to offer life-changing & sustai
Slide 47: Exhibitions: What We Do
EXHIBITIONS: WHAT WE DO Specializing in providing strategic and logistics solutions to leading exhibition and conference organizers and exhibitors through exclusive and discretionary services: EXCLUSIVE SERVICES DISCRETIONARY SERVICES ORGANIZERS EXHIBITORS EXHIBITORS ▪ Event planning and ▪ Material
Slide 48: Geographic Overview
GEOGRAPHIC OVERVIEW 2022 REVENUE MIX ($828M TOTAL) North America EMEA 21% 79% Countries GES Serves GES facilities 48
Slide 49: Seasonality
SEASONALITY GES’ exhibition and event activity can vary significantly from quarter to quarter and year to year depending on the frequency and timing of shows. Some shows are not held annually and some shift between quarters. GES Revenue(1) by Quarter ($M) 318 320 315 321 281 285 287 282 279 268 262
Slide 50: Exhibition Industry Has Proven Resilient Through Prior Downturns
EXHIBITION INDUSTRY HAS PROVEN RESILIENT THROUGH PRIOR DOWNTURNS Live face-to-face events provide a powerful and cost-effective way to drive business growth, from transacting business, to building brand loyalty, and the rich connections created through in-person interactions are irreplaceable US EXH