Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Investor Presentation (June 2022)
54 slides from Pursuit Attractions And Hospitality's investor presentation, Jun 15, 2022
Slide 1: Investor Presentation June 2022
INVESTOR PRESENTATION JUNE 2022 Exhibit 99.1
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains a number of forward-looking statements. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,” “target,” “outlook,”
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This document includes the presentation of “Adjusted EBITDA”, which is supplemental to results presented under accounting principles generally accepted in the United States of America (“GAAP”) and may not be comparable to similarly titled measures presented by other compa
Slide 4: Viad: Pursuit, GES, Summary, Appendix
VIAD PURSU/T @Ges SUMMARY APPENDIX 22
Slide 5: Investment Highlights
Leading and defensible market positions Delivered strong growth from 2015 - 2019 Positioned for recovery and growth 5 INVESTMENT HIGHLIGHTS Leading global provider of extraordinary experiences, including hospitality and leisure activities, experiential marketing, and live events Track-record of crea
Slide 6: Global Leader in Live Events & Experiential Marketing
6 A vertically-integrated attractions and hospitality company that owns and operates a collection of world-class attractions, distinctive lodges, and engaging tours in iconic destinations A global, full-service live events company offering a comprehensive range of event and experiential marketing se
Slide 7: Focused on Maximizing Shareholder Value
FOCUSED ON MAXIMIZING SHAREHOLDER VALUE Smart allocation of capital Continually evaluate options to maximize shareholder value Significant investment in Refresh, Build, Buy opportunities that drive accelerated growth LONG-TERM GOALS Drive revenue growth in brand experiences through Spiro Deliver inc
Slide 8: Viad's Track Record of Creating Shareholder Value
165.7% TSR S&P SmallCap600 57.4% Russell 2000 48.4% Viad’S TRACK RECORD OF CREATING shareholder value 2015-2019 CASH FROM OPERATIONS 70% CASH CONVERSION IN GROWTH INVESTMENTS SINCE 2015(1) 15% MINIMUM IRR HURDLE $472 MILLION $367 MILLION 8 1 Includes acquisitions at GES & Pursuit and major growth pr
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Slide 10: Pursuit is a Global Attractions & Hospitality Company
10 ATTRACTIONS LODGING F&B, RETAIL & TRANSPORTATION Welcomed 2.4M visitors in 2019 Over 380,000 room nights sold in 2019 Integrated within our attractions and lodging PURSUIT IS A global ATTRACTIONS & HOSPITALITY company
Slide 11: Two Scalable Platforms to Deliver Growth
11 TWO SCALABLE PLATFORMS TO DELIVER GROWTH ICONIC LOCATIONS A collection of world-class attractions, distinctive lodges and engaging tours in renowned global travel locations FLYOVER ATTRACTIONS A collection of flight ride experiences in vibrant cities that showcase awe-inspiring sights in a way th
Slide 12: Pursuit Operates in Locations with Perennial Demand
Banff National Park Jasper National Park ~6.5M Visitors Denali National Park Kenai Fjords National Park ~1M Visitors Glacier National Park Waterton Lakes National Park ~3.5M Visitors Vancouver ~11M Visitors Reykjavik ~2M Visitors Market visitation statistic sources: Tourism Vancouver (2019); Parks C
Slide 13: Pursuit Has Delivered Profitable Growth
4-YEAR COMPOUNDED ANNUAL GROWTH RATES REVENUE 19% Adjusted EBITDA 23% pursuit has delivered profitable growth Pursuit has Doubled Revenue and Adjusted EBITDA in 48 months 19% Revenue CAGR 13 REVENUE ($M) EBITDA ($M) >30% EBITDA MARGIN
Slide 14: Pursuit Has a Proven Growth Strategy
14 Pursuit has a compelling and proven GROWTH strategy REFRESH To optimize guest experience, market position and maximize returns BUILD To create new guest experiences and revenue streams with economies of scale and scope BUY Strategic assets that drive guest experience, economies of scale and scope
Slide 15: Pursuit Has Nearly Doubled Its Attractions and Lodges Since 2018
15 Pursuit has nearly doubled its attractions and lodges since 2018 15 +82%
Slide 16: Pursuit Revenue and Margin Are Recovering
[ 16 ] Pursuit revenue and margin are recovering Revenue from existing Canadian experiences has not yet fully recovered Revenue from new experiences continues to ramp US destinations have rebounded on strong domestic leisure travel Lag in recovery of international leisure travel is impacting revenue
Slide 17: Pursuit's Lodging Pacing Remains Strong
15 PURSUIT’S LODGING PACING REMAINS STRONG Banff Rooms Revenue ($M, CAD) ADR +5% vs. 2021 Results shown “same store” and exclude the Belton Chalet and Basecamp Lodge ADR +6% vs. 2021 Chart above excludes the Denali Backcountry Lodge, which is impacted in 2022 by the closure of the Denali Park Road A
Slide 18: Iconic Locations Attraction Visitors 2022
18 Anticipate ~2.3 million attraction visitors at Pursuit Iconic Locations in 2022 85%+ recovery at attractions owned / operated prior to 2019 Banff Gondola Lake Minnewanka Cruise Maligne Lake Cruise Glacier Adventure Glacier Skywalk Golden Skybridge (Q2’21) Open Top Touring (Q3’20) Kenai Fjords Tou
Slide 19: FlyOver Attraction Visitors 2022
19 Anticipate ~1.1 million attraction visitors at Pursuit FlyOver Attractions in 2022 85-90% recovery at attractions owned / operated prior to 2019 Vancouver, BC Reykjavik, Iceland (Q3’19) Las Vegas, NV (Q3’21) Chicago, IL (Est. 2024) Toronto, ON (Est. 2024) Pursuit flyover attractions
Slide 20: Levered to Recovery + Growth from New Experiences
Levered to recovery + growth from new experiences 2022 2023 & Beyond 2022 FULL YEAR Sky Lagoon Golden Skybridge FlyOver Las Vegas 2024 (EST) FlyOver Chicago opens Flyover Canada Toronto opens ONGOING New Refresh, Build, Buy Investments 20 ONGOING, NEVER-ENDING FOCUS ON SAME-STORE ORGANIC GROWTH, IMP
Slide 21: Why We Will Be Successful: Pursuit
21 WHY WE WILL BE SUCCESSFUL Our MISSION is to connect guests and staff to iconic places through unforgettable inspiring experiences. 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 se
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Slide 23: GES: A Global Live Events Company
23 GES EXHIBITIONS SPIRO Works with show organizers to produce ~3,600 exhibitions / conferences annually 2019 Revenue: ~$750 Million Works with 1,500+ corporate clients to create unique brand experiences 2019 Revenue: ~$330 Million a Global Live Events Company
Slide 24: This is Spiro
THIS IS SPIRO Global Exhibit Program Management Environments & Permanent Installations Corporate Meetings & Events Digital & Hybrid Experiences Brand Activations Staging SPIRO is a fully-integrated brand experience agency that brings together our collective abilities, legacy of excellence, and globa
Slide 25: Spiro Client Roster Strength
25 SPIRO CLIENT ROSTER STRENGTH REPRESENTING THE BEST OF THE BEST Pharma Source: Beckers Hospital Review https://www.beckershospitalreview.com/pharmacy/top-10-pharma-companies-by-revenue-in-2020.html Healthcare Source: Investopedia, https://www.investopedia.com/articles/markets/030916/worlds-top-10-
Slide 26: Spiro Addressable Market
SPIRO ADDRESSABLE MARKET 26 Source: PQ Media’s Global Advertising & Marketing Spend Forecast, 2021-2025, December 2021 Experiential Marketing TAM is ~$95B and forecasted to grow by 8% annually $32B $36B 2021 Experiential Marketing Categories ($,000) $27B
Slide 27: Global Tradeshow Market
2019 Global Tradeshow Market $34.4B Source: PwC Global Entertainment & Media Outlook 2020-2024 Global Tradeshow Market Growth 2016-2019 4.3% annually The Exhibition and Conference market was over $34B in 2019 with low-single digit growth from 2016 THE US exhibition and conference market is the large
Slide 28: #1 and #2 Market Share in UK and US
#1 AND #2 MARKET SHARE IN UK AND US RESPECTIVELY 28 2019 GES Exhibition/Conference Revenue 2019 GES Market Share of Largest Tradeshows 75% 25% GES Exhibitions GES is a global leader in the $2.5 billion addressable market within Exhibition and Conference industry North America/UK GES clients analyzed
Slide 29: GES Has Generated Meaningful Free Cash Flow
Ges has generated meaningful free cash flow 2015-2019 $260M CUMULATIVE FCF1 $374M Adj. Segment EBITDA ~70% Conversion to FCF STRONG CASH CONVERSION with low capex requirements GES’ 5-Year Cumulative Free Cash Flow1 in $millions 29 1 Free Cash Flow defined as Adjusted Segment EBITDA less segment cape
Slide 30: Since 2019, We Have Transformed to Create a Stronger GES
Since 2019, We have transformed to Create A stronger GES Transformed with a vision for the future of live events Target financials >20% ON INCREMENTAL REVENUE FLOW THROUGH 8%+ EBITDA MARGIN
Slide 31: Show Sizes Continued to Improve in Q1'22
31 SHOW SIZES continued to Improve in Q1’22 31 Same-show revenue for GES US Exhibitions was ~73% of pre-pandemic level Still seeing wide variation in event performance with some at or above and some well-below pre-pandemic 46% 67% 73% Expect show sizes to continue increasing as companies return to p
Slide 32: GES Exhibitions Improved Cost Structure
32 Ges exhibitions IMPROVED COST STRUCTURE 32 19% Flow-Through GES Exhibitions Q1 Flow-Through Efforts to remove fixed costs and variabilize GES’ cost structure during pandemic are yielding results During Q1, our flow-through of incremental GES Exhibitions revenue to Adjusted EBITDA was slightly bel
Slide 33: Levered to Recovery + Spiro Growth and Improved Cost Structure
Levered to recovery + SPIRO GROWTH AND IMPROVED COST STRUCTURE 2022 2023 & Beyond 33 ONGOING, NEVER-ENDING FOCUS ON EXHIBITION MARGINS THROUGH COST LEADERSHIP AND DRIVING PROFITABLE EXPANSION OF SPIRO Spiro continues to benefit from new client wins and continued shift of corporate marketing budgets
Slide 34: Why We Will Be Successful: GES
34 WHY WE WILL BE SUCCESSFUL Our MISSION is to create the most meaningful and memorable experiences for marketers, organizers and attendees. Live events and other forms of experiential marketing provide a powerful means to drive business growth. That hasn’t changed. But we’ve changed. We’ve evolved
Slide 35: Investment Opportunity Summary
Investment Opportunity Summary
Slide 36: Creating Extraordinary Experiences & Strong Returns
Clear path to accelerate growth and significantly enhance shareholder returns 53% 47% 36 CREATING EXTRAORDINARY EXPERIENCES & STRONG RETURNS Proven Success Executing Growth Strategy and Driving Strong Returns Experienced Management Team Focused on Shareholder Value Financial Flexibility to Continue
Slide 37: Appendix
Appendix YY
Slide 38: Q1 Revenue and Adjusted EBITDA
38 Q1 REVENUE AND ADJUSTED EBITDA
Slide 39: Forward-Looking Non-GAAP Financial Measures
FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES We have also provided the following forward−looking non−GAAP financial measure: Adjusted EBITDA Margin. We do not provide a reconciliation of this forward−looking non−GAAP financial measure to the most directly comparable GAAP financial measure because, du
Slide 40: Non-GAAP Financial Reconciliation
(1) Revenue has been adjusted in 2018 and 2019 for immaterial errors related to the revenue recognition of GES’ Corporate Accounts’ third-party services, which are now reported on a net basis to reflect only the fees received for arranging these services. Note: Certain amounts above may not total du
Slide 41: Our Experienced Executive Management Team
Steve Moster - President & Chief Executive Officer Has served as President and CEO of Viad since 2014 and as President of GES from 2010 Joined Viad in 2004 as GES Vice President of Exhibition Furnishings and his career evolved to various sales and leadership roles within GES company, including Execu
Slide 42: Our Experienced Executive Management Team
OUR EXPERIENCED EXECUTIVE MANAGEMENT TEAM 42 Derek Linde – COO, General Counsel and Secretary Has served as General Counsel and Secretary of Viad since April 2018 Previously served as Deputy General Counsel & Assistant Secretary at Illinois Tool Works Inc., and was a partner at Winston & Strawn LLP,
Slide 43: Seasonality: Pursuit
43 Seasonality Pursuit experiences peak activity during the summer months. During 2019, 85% of Pursuit’s revenue was earned in the second and third quarters. Note: To help reduce the spread of COVID-19, Pursuit’s year-round attractions and year-round lodging properties were closed temporarily starti
Slide 44: Pursuit Geographic Overview
FLYOVER COLLECTION Pursuit 2019 Revenue Mix 44 SKY LAGOON (ICELAND) GLACIER PARK COLLECTION (MONTANA) ALASKA COLLECTION (ALASKA) BANFF JASPER COLLECTION (CANADA) Geographic overview Denotes Iconic Location Denotes FlyOver Location (Chicago and Toronto are in development) (1) Represents FlyOver Canad
Slide 45: Pursuit's Locations Have Strong Perennial Demand
Pursuit’s locations have strong perennial demand Recession SARS 9/11 Recession 45 Sources: Parks Canada; U.S. National Park Service
Slide 46: Seasonality: GES
46 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. (1) Revenue has been adjusted in 2019 for immaterial errors related to t
Slide 47: GES Geographic Overview
Geographic OVERVIEW 47 2019 REVENUE MIX ($1.1B Total)
Slide 48: Exhibition Industry Has Proven Resilient Through Prior Downturns
EXHIBITION INDUSTRY has proven resilient through prior downturns Recession SARS 9/11 Recession Source: Center for Exhibition Industry Research (CEIR) 48
Slide 49: Success Stories: Refresh, Build, Buy
SUCCESS STORIES: BUILD, BUY. 82 Attraction Net Promoter Score Sky Bistro #1 Restaurant in Banff on TripAdvisor ~$11M EBITDA INCREASE SINCE REFRESH1 49 1 2019 as compared to trailing twelve months prior to renovation
Slide 50: Success Stories: Refresh, Build, Buy
SUCCESS STORIES: BUILD, BUY. REVPAR INCREASE from $98 in 2016 to $157 in 2019 60% Improved Net Promotor Score 77 points from -7 to 70 in 2 years 50 #2 hOTEL in Banff
Slide 51: In Development: Refresh, Build, Buy
IN DEVELOPMENT: REFRESH, Opened Aug 2019 3 New attractions in world class tourism cities Opened Sept 2021 Expected opening in 2024 REYKJAVIK LAS VEGAS TORONTO #2 TripAdvisor Ranking for FlyOver Iceland BUY. 51
Slide 52: In Development: Refresh, Buy
IN DEVELOPMENT: REFRESH, BUY. IDEAL LOCATION Closest geothermal lagoon to Reykjavik OPERATING PARTNER in this venture 52 Opened May 2021
Slide 53: Success Stories: Refresh, Build, Buy
SUCCESS STORIES: REFRESH, BUILD, 7 Experiences in Iconic Locations Sightseeing Boat Tours Lodging Properties F&B and Retail 53
Slide 54: Success Stories: Refresh, Build, Buy
SUCCESS STORIES: REFRESH, BUILD, Ownership Interest 60% Market Share of the Jasper Area Bed Base 31% 54