Pursuit Attractions And Hospitality, Inc. · NYSE:PRSU
Pursuit Attractions And Hospitality — Viad — Investor Presentation (June 2021)
62 slides from Pursuit Attractions And Hospitality's investor presentation, Jun 16, 2021
Slide 1: Investor Presentation June 2021
INVESTOR PRESENTATION JUNE 2021 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 Segment 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 oth
Slide 4: Pursuit, GES, Summary, Appendix
Vi AD PURSU/T @GeEs SUMMARY APPENDIX 22
Slide 5: Investment Highlights
Leading and defensible market positions Delivered strong growth from 2015 - 2019 Strong liquidity and financial flexibility Opportunity to continue investing for growth 5 INVESTMENT HIGHLIGHTS High-quality businesses with leading market positions in experiential leisure travel and experiential B2B e
Slide 6: Premier experiential services company
6 Vertically-integrated attractions and hospitality company in iconic destinations with a collection of world-class attractions, distinctive lodges, and sightseeing tours A global, full-service live events company offering a comprehensive range of services for exhibitions/conferences, brand experien
Slide 7: Focused on Maximizing Shareholder Value
FOCUSED ON MAXIMIZING SHAREHOLDER VALUE Smart allocation of capital Continually evaluate options to maximize shareholder value Continue to drive growth through Refresh, Build, Buy and take advantage of economic disruption and opportunity in the space LONG-TERM GOALS Drive increased profitability and
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
Slide 9: COVID-19 Impact
covid-19 IMPACT The COVID-19 pandemic caused a halt to in-person exhibitions, conferences and corporate events, and a significant slow-down in leisure travel We took swift and significant actions to reduce costs, bolster liquidity and provide financial flexibility to ensure our business endured the
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Slide 11: Pursuit is a global attractions and hospitality company
11 ATTRACTIONS LODGING F&B, RETAIL & TRANSPORTATION 8 World-Class Attractions welcomed 2.4M visitors in 2019 3 new attractions online in 2021 25 owned and operated properties with over 380,000 room nights sold in 2019 36 Food & Beverage and 32 Retail Businesses Integrated within our attractions and
Slide 12: Inspiring, Unforgettable Experiences
12 Visitation in 2019, except where estimates are noted for new experiences coming online from Aug 2019 forward. These estimates represent management’s expectations for approximate run-rate visitation at maturity. Lake Minnewanka CRUISE Kenai FJORDS TOURS Columbia ICEFIELD Skywalk Maligne Lake CRUIS
Slide 13: Inspiring, Unforgettable Experiences: Lodging
13 INSPIRING, UNFORGETTABLE EXPERIENCES 1. Marmot Lodge currently has 107 guest rooms, 29 of which are expected to be converted to staff accommodation when the 78 Connaught property comes online. * Denotes a property that operates seasonally (generally closed from October - April)
Slide 14: Pursuit Operates in Iconic Global Locations
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 British Columbia ~11M Visitors Reykjavik Iceland ~2M Visitors Market visitation statistic sources: Tourism
Slide 15: Pursuit's locations have strong perennial demand
Pursuit’s locations have strong perennial demand Recession SARS 9/11 Recession 15 Sources: Parks Canada; U.S. National Park Service
Slide 16: Two Scalable Platforms to Deliver Growth
16 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 A collection of flight ride experiences in vibrant cities that showcase awe-inspiring sights in a way that visitors
Slide 17: Proven Growth Strategy: Refresh, Build, Buy
17 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 18: 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 18 REVENUE ($M) EBITDA ($M) >30% EBITDA MARGIN
Slide 19: Strong 2021 bookings and solid performance during pandemic
Strong 2021 bookings in destinations without border restrictions Demand at Alaska and Glacier Park Collections is pacing well-ahead of 2019 Best May ever at the Windsong Lodge, Kenai Fjords Wilderness Lodge and Denali Cabins (in Alaska) West Glacier RV Park opened early due to high demand Canada gai
Slide 20: The recovery is underway at Pursuit
SEQUENTIAL PERIOD REVENUE IMPROVEMENTS EXPECTED TO CONTINUE WITH STRONG AND IMPROVING ROOM BOOKINGS STRONG DEMAND FROM DOMESTIC LONG HAUL, LOCAL, AND REGIONAL MARKETS 20 Same-Store Revenue vs. Comparable Period in 2019 is Improving1 % of 2019 The recovery is underway at pursuit FY Rooms Revenue On t
Slide 21: Why We Will Be Successful
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: A Global Live Events Company
23 EXHIBITIONS/CONFERENCES BRAND EXPERIENCES VENUE SERVICES 3,600 exhibitions, #1 and #2 market share in the UK, US, respectively. 2,900 unique live and virtual experiences - partnering with leading brands incl. 4 of top 5 pharma companies. In-house AV, lighting, electrical, rigging and power servic
Slide 24: Revenue Mix and Geographic Markets Served
Revenue mix and Geographic Markets Served 24
Slide 25: 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 26: #1 and #2 Market Share in UK and US
#1 AND #2 MARKET SHARE IN UK AND US RESPECTIVELY 26 2019 GES Exhibition/Conference Revenue 2019 GES Market Share of Largest Tradeshows 75% 25% Exhibitions and Conferences GES is a global leader in the $2.5 billion addressable market within Exhibition and Conference industry North America/UK GES clie
Slide 27: Brand Experiences
Brand Experiences 27 2019 Global Digital & Alternative Marketing (%) Source: PQ Media’s Global Advertising & Marketing Spend Forecast, 2020-2024 Experiential marketing is forecasted to grow by 7% annually from 2021 to 2024 Experiential Marketing is a large, fast-growing segment of the corporate mark
Slide 28: Brand Experiences
A strategic partner to leading brands around the world to manage and elevate their global experiential marketing activities 28 Brand Experiences
Slide 29: Venue Services
29 Audio Visual Services Electrical or Power Services Rigging Services The Venue Services market was $9B in 2019 "For the past 14 years we have been partners with ON Site. It's good to know you have a trusted partner with you in the trenches, because sometimes Audio Visual services make the differen
Slide 30: GES' financial profile has been profitable and stable
Ges’ financial profile has been profitable and stable 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 $millions 30 1 Free Cash Flow defined as Adjusted Segment EBITDA less se
Slide 31: Exhibition industry has proven resilient through prior downturns
EXHIBITION INDUSTRY has proven resilient through prior downturns Recession SARS 9/11 Recession Source: Center for Exhibition Industry Research (CEIR) 31
Slide 32: Impact of COVID-19 on GES Revenue
Impact of CV19 on GES Revenue ($,000) Pandemic offered opportunity to accelerate transformation - creating a stronger GES Quick and thoughtful response with a vision for the future of live events
Slide 33: Significant cost reductions during pandemic
SIGNiFICANT COST REDUCTIONS DURING PANDEMIC WILL DRIVE IMPROVED PROFITABILITY GOING FORWARD EBITDA COST OF SALES (VARIABLE) SEMI-VARIABLE FIXED ~60% SG&A REDUCTION SG&A ~$10M Annualized facility cost take-outs achieved 33 Target financials >20% ON INCREMENTAL REVENUE FLOW THROUGH 8%+ EBITDA MARGIN L
Slide 34: The return of live events
The return of live events Live Events will continue to be a powerful driver for companies to transact business, build stronger relationships, network and generate business growth. Virtual event technology will continue to play a role in delivering content to a wider cast of attendees. “Ninety percen
Slide 35: Return of in-person events supported by states reopening
35 Return of in-person events to be further supported by states reopening Source: NY Times (as of June 14, 2021).
Slide 36: Exhibitors expect to return to in-person events
36 % of Exhibiting Companies That Expect to Return to In-Person Events Exhibitor Media Group’s Exhibitor Insight Report contracted events for 2h’21 are GREATER IN NUMBER BUT EXPECTED TO BE SMALLER IN SIZE Contracted for 2H 2019 Contracted for 2H 2021 RENEWAL RATE GES US Exhibitions Under Contract fo
Slide 37: Why We Will Be Successful
37 WHY WE WILL BE SUCCESSFUL Our MISSION is to create the most meaningful and memorable experiences for marketers, organizers and attendees. We believe that virtual events cannot replace the rich connections created through in-person interactions. From transacting business to building brand loyalty,
Slide 38: Investment Opportunity Summary
Investment Opportunity Summary
Slide 39: Clear path to accelerate growth and enhance shareholder returns
Clear path to accelerate growth and significantly enhance shareholder returns 53% 47% 39 CREATING EXTRAORDINARY EXPERIENCES & STRONG RETURNS Proven Success Executing Growth Strategy and Driving Strong Returns Experienced Management Team Focused on Shareholder Value Strong Liquidity Position and Fina
Slide 40: Appendix
Appendix Ws
Slide 41: Non-GAAP reconciliation notes
(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 42: Management's COVID-19 Response
42 MANAGEMENT’S COVID-19 RESPONSE We are positioned to win the recovery and emerge stronger than before, with market share gains and permanent changes to our cost structure
Slide 43: Ample liquidity and financial flexibility
43 Ample liquidity and FINANCIAL FLEXIBILITY to support continued growth of pursuit $450M revolving credit facility matures 10/24/23. Financial covenants waived until 9/30/22 and replaced by a minimum liquidity requirement of $100M for duration of the covenant relief period. Crestview Partners made
Slide 44: 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 to 2019 Joined Viad in 2004 as GES Vice President of Exhibition Furnishings and his career evolved to various sales and leadership roles within GES company, includi
Slide 45: Our Experienced Executive Management Team
OUR EXPERIENCED EXECUTIVE MANAGEMENT TEAM 45 Derek Linde - 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, wher
Slide 46: Environmental Sustainability
ENVIRONMENTAL SUSTAINABILITY 1,500+ MEALS provided at cost during the first two weeks of the Easy Eats program to support our communities when COVID-19 first hit 46 WASTE DIVERSION Introducing waste audit and management programs Implementing initiatives to reduce plastic waste and single-use contain
Slide 47: Environmental Sustainability
ENVIRONMENTAL SUSTAINABILITY As a testament to our commitment to sustainability, GES is the first global full-service events provider to earn both APEX/ASTM Level 2 Certification in the US and ISO 20121 in the UK, voluntary international standards for sustainable event management. 47 Events are crea
Slide 48: Social Responsibility
SOCIAL RESPONSIBiLITY 48 We believe that maintaining a culture of high ethical and legal standards provides Viad with a distinct advantage in recruiting and retaining top talent, driving the best value for our customers and attracting shareholders. Being Always Honest is at the very core of our corp
Slide 49: Safety Promise
49 Safety promise Pursuit's Safety Promise is our commitment to the safety and well-being of our guests and staff. Through this program, we will ensure that everyone feels safe when visiting our experiences and that these places can continue to make a positive impact.
Slide 50: Pursuit 2019 Revenue Mix and Geographic Overview
FLYOVER COLLECTION Pursuit 2019 Revenue Mix 50 SKY LAGOON (ICELAND) GLACIER PARK COLLECTION (MONTANA) ALASKA COLLECTION (ALASKA) BANFF JASPER COLLECTION (CANADA) Geographic overview Denotes Iconic Location Denotes FlyOver Location (1) Represents FlyOver Canada only. FlyOver Iceland opened Aug'20; Fl
Slide 51: New experiences will accelerate growth
New experiences will ACCELERATE growth 2021 2022 2023 & Beyond 2022 FULL YEAR Sky Lagoon Golden Skybridge FlyOver Las Vegas 2022 (Est) 78 Connaught Drive Hotel Jasper, AB, Canada early 2024 (EST) FlyOver Canada Toronto opens Toronto, ON September 2021 (EST) FlyOver Las Vegas opens Las Vegas, NV MAY
Slide 52: We're Just Getting Started
WE’RE JUST GETTING STARTED Our entrepreneurial hospitality-oriented culture, combined with two scalable growth platforms, provides significant growth opportunities
Slide 53: Success Stories: Build, Buy
SUCCESS STORIES: BUILD, BUY. 82 Attraction Net Promoter Score Sky Bistro #1 Restaurant in Banff on TripAdvisor ~$11M EBITDA INCREASE SINCE REFRESH1 53 1 2019 as compared to trailing twelve months prior to renovation
Slide 54: Success Stories: 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 54 #2 hOTEL in Banff
Slide 55: In Development: Refresh, Build, Buy
IN DEVELOPMENT: REFRESH, Opened Aug 2019 3 New attractions in world class tourism cities Expected opening Sept 2021 Expected opening in 2024 REYKJAVIK LAS VEGAS TORONTO #2 TripAdvisor Ranking for FlyOver Iceland BUY. 55
Slide 56: In Development: Refresh, Buy
IN DEVELOPMENT: REFRESH, BUY. IDEAL LOCATION Closest geothermal lagoon to Reykjavik OPERATING PARTNER in this venture 56 Opened May 2021
Slide 57: Success Stories: Refresh, Build, Buy
SUCCESS STORIES: REFRESH, BUILD, 7 Experiences in Iconic Locations Sightseeing Boat Tours Lodging Properties F&B and Retail 57
Slide 58: Success Stories: Refresh, Build, Buy
SUCCESS STORIES: REFRESH, BUILD, Ownership Interest 60% Market Share of the Jasper Area Bed Base 31% 58
Slide 59: Hospitality Metrics
HOSPITALITY METRICS1 2019 LINE OF BUSINESS REVENUE MIX KEY METRICS 59 1 Metrics are presented on a “same-store” basis, which includes assets owned by Viad and operating at full capacity for the entirety of the periods presented, expressed on a constant currency basis. Visitors are expressed in thous
Slide 60: Seasonality
60 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 61: GES Key Metrics
US BASE SAME-SHOW GROWTH1 SHOW ROTATION2 45% 39% 35% 34% 1 Year-over-year revenue growth of shows that occur every year in the same quarter and are produced out of the same GES location. 2 Net change in revenue due to non-annual shows produced by GES (shows occur every two, three or four years). 61
Slide 62: Seasonality
62 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. Show rotation refers to shows that occur less frequently than annually,