On November 7, 2024, Viad Corp (VVI, Financial) released its 8-K filing, showcasing a robust third-quarter performance that exceeded analyst expectations. The company, known for its extraordinary experiences in hospitality, leisure, and live events, reported significant growth across its segments, particularly in GES, despite challenges faced by Pursuit due to natural disruptions.
Company Overview
Viad Corp is a marketing company engaged in providing extraordinary experiences, including hospitality and leisure activities, experiential marketing, and live events. The company operates through three segments: Pursuit, Spiro, and GES Exhibitions. Pursuit offers travel experiences, Spiro focuses on experiential marketing, and GES Exhibitions provides exhibition services.
Performance and Challenges
Viad Corp reported a revenue increase of 24.5% year-over-year, reaching $455.7 million, surpassing the analyst estimate of $435.71 million. This growth was primarily driven by GES, which saw a 52.8% increase in revenue due to successful execution at major non-annual shows. However, Pursuit faced a 2.5% decline in revenue, attributed to temporary closures and lower visitation from the Jasper wildfire. Despite these challenges, Pursuit's revenue outside of Jasper grew by 13%.
Financial Achievements
The company's net income attributable to Viad increased by 17.8% to $48.6 million, with an adjusted net income of $58.8 million, reflecting a 35.7% increase. The diluted EPS of $1.65 and adjusted diluted EPS of $2.01 both exceeded the analyst estimate of $1.74. These achievements highlight Viad Corp's ability to manage costs effectively and capitalize on high-demand periods, crucial for sustaining growth in the business services industry.
Key Financial Metrics
Viad Corp's consolidated adjusted EBITDA rose by 19.6% to $103.1 million. GES's adjusted EBITDA saw a remarkable increase, driven by higher revenue and margin expansion, while Pursuit's adjusted EBITDA decreased due to the wildfire impact and increased costs. The company's cash flow from operations was a positive $110 million, with capital expenditures totaling $15 million. Viad's total liquidity stood at $228.8 million, with a net leverage ratio of 1.7x, indicating strong financial health.
Steve Moster, Viad’s President and CEO, stated, “We delivered another quarter of strong operational and financial results at both Pursuit and GES. We expect to deliver significant full year growth in consolidated adjusted EBITDA, and both businesses are positioned for continued success.”
Strategic Developments
Viad Corp completed a tuck-in acquisition for Pursuit in Glacier National Park, enhancing its hospitality offerings. The company is also on track to finalize the sale of GES for $535 million by the end of the year, positioning Pursuit as a high-growth, high-margin business. This strategic move is expected to provide financial flexibility and support Pursuit's growth strategy.
Analysis and Outlook
Viad Corp's strong performance in Q3 2024, particularly in GES, underscores its strategic execution and resilience in the face of challenges. The company's focus on high-margin segments and strategic acquisitions positions it well for future growth. The anticipated sale of GES will further streamline operations and enhance financial flexibility, allowing Viad to capitalize on growth opportunities in the hospitality and attractions space.
For more detailed insights and financial data, visit the 8-K filing and explore Viad Corp's strategic developments and financial health.
Explore the complete 8-K earnings release (here) from Viad Corp for further details.
