37 slides from Pursuit Attractions And Hospitality's investor presentation, Mar 17, 2015
Slide 1: Investor Presentation March 2015
INVESTOR PRESENTATION MARCH 2015
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS 2 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 ma
Slide 3: Important Additional Information
3 IMPORTANT ADDITIONAL INFORMATION 3 Viad intends to file a proxy statement and WHITE proxy card with the Securities and Exchange Commission (the "SEC") in connection with the solicitation of proxies for the 2015 Annual Meeting (the "Proxy Statement"). Viad, its directors, nominees and certain of it
Slide 4: Introduction to Viad
4 INTRODUCTION TO VIAD Viad is a SmallCap 600 company with two business groups and a clear strategy for growth and shareholder value MARKETING & EVENTS TRAVEL & RECREATION MEANINGFUL PROGRESS Against our goals BALANCED CAPITAL ALLOCATION Evaluate all levers – acquisition, share repurchase, dividends
Slide 5: Viad – Strong Earnings Growth and Cash Generation
5 $211M VIAD – STRONG EARNINGS GROWTH AND CASH GENERATION 1 A reconciliation of this non-GAAP measure to Income from Continuing Operations can be found in the appendix. 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 dive
Slide 6: Viad – Focused on Shareholder Value
6 VIAD – FOCUSED ON SHAREHOLDER VALUE THOROUGH REVIEW OF STRATEGIC OPTIONS1 • 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 auth
Slide 7: Marketing & Events Group (GES)
MARKETING & EVENTS GROUP (GES) Global Experience Specialists
Slide 8: GES Growth Strategy
8 GLOBAL REACH LIVE EVENTS FULL- SERVICE PROVIDER GES GROWTH STRATEGY 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 Pref
Slide 9: Live Events: GES Has Blue Chip Clients Across All Four Segments
9 LIVE EVENTS: GES HAS BLUE CHIP CLIENTS ACROSS ALL FOUR SEGMENTS Exhibitions Congresses / Conferences Consumer Events Corporate Events Industry leaders already select GES in every Live Event segment 9
Slide 10: Under-Penetrated Segments: Significant Opportunity for Growth
10 U N D ER -P EN ET R AT ED SE G M EN TS SIGNIFICANT OPPORTUNITY FOR GROWTH 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. LIVE EVENTS SEGMENTS Exhibitions 1 in 3 major US shows is
Slide 11: Full-Service Provider: Increasing Competitiveness and Differentiation
11 Exhibitions Congresses/ Conferences Corporate Events Consumer Events FULL-SERVICE PROVIDER: INCREASING COMPETITIVENESS AND DIFFERENTIATION NEW SERVICES CORE SERVICES GES has made significant progress creating the most comprehensive suite of services for the live events industry Contracting Servic
Slide 12: Strategic Acquisitions: Technology, Synergy, Cross-Sell and Opportunity
12 STRATEGIC ACQUISITIONS: TECHNOLOGY, SYNERGY, CROSS-SELL 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 onPEAK1 for event accommodations The strategic fit of GES acquisitions brings imm
Slide 13: GES Acquisitions Are Driving Results and Delivering Value
13 0 5 10 15 20 25 2013 2014 2015 Est GES ACQUISITIONS ARE DRIVING RESULTS AND DELIVERING VALUE 1 Assumes 2-3% perpetual growth rate. 2 GES official services contracting events that do not currently use GES for AV / Accommodations / Registration. 3 US AV is currently sold through an in-house team th
Slide 14: Global Advantage: Trusted Partnership as Industry Consolidates
14 Consolidation in Industry Geo-cloning/New Launches Consolidating Programs Ready to capitalize on increasing demand for global capabilities GLOBAL ADVANTAGE: TRUSTED PARTNERSHIP AS INDUSTRY CONSOLIDATES GLOBAL REACH ESTABLISHED POSITION1 IN KEY GLOBAL MARKETS RECOGNIZED ABILITY TO SERVICE BROADER
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 $944M >$1
Slide 16: Travel & Recreation Group (VTR)
TRAVEL & RECREATION GROUP (VTR) Brewster Travel Canada Glacier Park, Inc. Alaska Denali Travel
Slide 17: Travel & Recreation Group Growth Strategy
17 ATTRACTIONS HOSPITALITY Cross-sell / multi-property stays High-volume cross-sell / upsell TRAVEL & RECREATION GROUP GROWTH STRATEGY VTR is comprised of four asset groups that work together as an ecosystem, driving economies of scope TRANSPORTATION PACKAGE TOURS 17 Cross-sell / sales & marketing p
Slide 18: Driving Growth in Markets with Perennial Demand
18 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Park Visitation (000) Sources: Parks Canada; U.S. National Park Service (2013 methodology change for Denali); Viad estimates for 2014 Banff and Jasper visitation (actual full year results not ye
Slide 19: Driving Growth in High Value Areas
19 DRIVING GROWTH IN HIGH VALUE AREAS VTR strategically invests in hospitality and attractions, which have highest margins and strong return on investment Revenue ($M) 2010 70 2011 87 2012 105 2013 108 2014 121 14.5% CAGR 29% CAGR 13% CAGR 0% CAGR BUILD new assets, creating new revenue streams with
Slide 20: Refresh: Improving Experience and Financial Returns
20 REFRESH: IMPROVING EXPERIENCE AND FINANCIAL RETURNS 1 Based on 60% increase in 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 INCREASE IN REVENUE2
Slide 21: Build: Powerful New Experiences Driving Powerful Returns
21 ~300k BUILD: POWERFUL NEW EXPERIENCES DRIVING POWERFUL RETURNS ~$20M >90% INVESTMENT IRR1 VISITORS in first year The Glacier Skywalk secured significant return on investment, surpassing attendance expectations, and receiving international awards and media coverage Extensive Awards and Media Cover
Slide 22: Buy: VTR Has Proven Track Record of Returns on Acquisitions
22 BUY: VTR HAS PROVEN TRACK RECORD OF RETURNS ON ACQUISITIONS 22 1 Assumes Exit EBITDA of 10x January 2011 Grouse Mountain Lodge Year-round hotel in Whitefish, MT September 2011 Alaska Denali Travel Lodging, package tours, transportation Rare in-holding within park July 2014 West Glacier Properties
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 Rooms1 133% INCREASE IN ROOM COUNT $38.2 $42.7 $25.7 $36
Slide 24: Attractions Drive Growth in Markets with Perennial Demand
24 ATTRACTIONS DRIVE GROWTH IN MARKETS WITH PERENNIAL DEMAND 24 VTR’s attractions have strong financial performance and create cross-selling opportunities. In addition to surpassing forecasts, the new Glacier Skywalk has helped lift visits to the Glacier Adventure on the Columbia Ice Field 586,000 v
Slide 25: Package Tours & Transportation: A Critical Revenue Pipeline
25 PACKAGE TOURS & TRANSPORTATION: A CRITICAL REVENUE PIPELINE VTR offers packaged tours and transportation services that drive visitation and revenue to its higher-margin hotels and attractions PACKAGED TOURS TRANSPORTATION Annual consumer rides as basis for upsell Includes in-bound packages throug
Slide 26: Continued Opportunity to Scale Business
26 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 27: Summary
27 SUMMARY
Slide 28: Viad Opportunity Summary
28 VIAD OPPORTUNITY SUMMARY 28 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 29: Active Acquisition Pipeline
29 ACTIVE ACQUISITION PIPELINE 29 Viad has a disciplined and proactive acquisition program focused on proprietary deal-sourcing in support of our business unit strategies to drive shareholder value Culture requirements: • Integrity • Customer-focus • Innovation • Continuous improvement Strong cultur
Slide 30: Appendix
APPENDIX
Slide 31: onPeak/Travel Planners – Acquired October 7, 2014 for $76.3M
31 ONPEAK/TRAVEL PLANNERS – ACQUIRED OCTOBER 7, 2014 FOR $76.3M 31 MARKET COMPANY OVERVIEW BUSINESS & SERVICES OVERVIEW KEY HIGHLIGHT Leading technology platform, expert data analytics, innovative culture Strong customer service culture and capabilities with long-term client relationships STRATEGIC
Slide 32: onPeak/Travel Planners Integration Overview
32 ONPEAK/TRAVEL PLANNERS INTEGRATION OVERVIEW 32 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 capabi
Slide 33: Blitz – Acquired September 16, 2014 for £15M
33 BLITZ – ACQUIRED SEPTEMBER 16, 2014 FOR £15M ($24.4M) 33 • 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 consum
Slide 34: N200 – Acquired November 24, 2014 for €9.7M
34 N200 – ACQUIRED NOVEMBER 24, 2014 FOR €9.7M ($12.1M) 34 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 STR
Slide 35: Summary Income Statement Data
35 SUMMARY INCOME STATEMENT DATA 35 1 Corporate activities expense excludes CEO Transition Costs of $2.7M pre-tax ($1.7M after-tax) incurred in 2014, which are classified as an Other Item. 2 This measure is supplemental to results presented under accounting principals generally accepted in the U.S.
Slide 36: Marketing & Events Group Key Metrics
36 MARKETING & EVENTS GROUP KEY METRICS 36 • 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 GROWTH1 GEOGRAPHIC REVENUE MIX3 SHOW ROTATION2 RECURRING & DIVERSE REVENUE
Slide 37: Travel & Recreation Group Key Metrics
37 TRAVEL & RECREATION GROUP KEY METRICS 37 HOSPITALITY METRICS1 GEOGRAPHIC REVENUE MIX2 LINE OF BUSINESS REVENUE MIX2 ATTRACTIONS METRICS1 72% 22% 6% Brewster Glacier Park Alaska Denali Travel (Canada) (Montana) (Alaska) 35% 36% 16% 13% Hospitality Attractions Packaged Tours Transportation 1 Metric