Viad Corp’s Earnings Call Highlights Strategic Growth

Viad Corp ((PRSU)) has held its Q4 earnings call. Read on for the main highlights of the call. The recent earnings call for Viad Corp highlighted a generally optimistic outlook for the company, despite some challenges. The sentiment was buoyed by Pursuit’s strategic positioning and growth prospects following the sale of GES and successful expansion efforts. However, the company did acknowledge challenges such as impairment charges and the impact of the Jasper wildfire. Overall, Viad Corp remains optimistic about its future growth trajectory, supported by a strong balance sheet and strategic acquisitions. Completion of GES Sale Pursuit successfully completed the sale of GES to Truelink Capital for $535 million. This strategic move allowed the company to eliminate high-cost debt and establish substantial liquidity, positioning it well for future investments and growth opportunities. Expansion and New Openings Pursuit has been actively expanding its attractions, with the opening of a new FlyOver attraction in Chicago and the expansion of the Sky Lagoon experience in Iceland. These initiatives contributed to a 13% year-over-year growth in attractions ticket revenue, showcasing the company’s commitment to enhancing its offerings and driving revenue growth. Strong Financial Performance Despite challenges such as the Jasper wildfire, Pursuit reported a full-year revenue increase to $366.5 million, up 5% year-over-year. The company expects adjusted EBITDA guidance for 2025 to see double-digit growth, highlighting its resilience and strong financial performance. Strategic Acquisitions Pursuit completed three strategic tuck-in acquisitions, including Eddie’s Cafe and the Jasper SkyTram. These acquisitions are part of the company’s strategy to expand its presence in iconic locations, further solidifying its market position. Optimized Balance Sheet By the end of 2024, Pursuit had optimized its balance sheet with a net leverage ratio of approximately zero and a new $200 million undrawn revolver. This financial strength provides a solid foundation for future growth and investment. Impairment Charges Pursuit recorded impairment charges totaling $47.6 million for the full year, including a $27.5 million asset write-down related to FlyOver Las Vegas due to slower-than-expected performance. This reflects some of the challenges the company faces in its operations. Jasper Wildfire Impact The Jasper wildfire had a significant negative impact on Pursuit’s revenue, reducing it by approximately $23 million and adjusted EBITDA by $15 million in the second half of 2024. This event underscores the vulnerabilities that natural disasters can pose to business operations. Foreign Exchange Headwinds The weaker Canadian dollar is expected to create a $7 million headwind to EBITDA due to translation effects. This highlights the challenges that currency fluctuations can pose to international operations. Forward-Looking Guidance Looking ahead to 2025, Pursuit is optimistic about achieving double-digit growth in both revenue and adjusted EBITDA. The company projects adjusted EBITDA to range between $98 million and $108 million, driven by the anticipated recovery from the Jasper wildfire impact and recent acquisitions. With zero net leverage and $250 million in liquidity, Pursuit is well-positioned to support its “Refresh, Build, Buy” strategy and capitalize on growth opportunities. In summary, Viad Corp’s earnings call painted a picture of a company that is strategically positioned for growth, despite facing some challenges. With strong financial performance, strategic acquisitions, and a robust balance sheet, Pursuit is optimistic about its future prospects. The company’s forward-looking guidance further underscores its confidence in achieving significant growth in the coming year. Trending Articles:Target (NYSE:TGT) Puts More Into its Grocery Supply Chain The Ford (NYSE:F) Heritage Fleet Rolls Out Intel (NASDAQ:INTC) Rolls out Panther Lake System-on-a-Chip UnitsQuestions or Comments about the article? Write to editor@tipranks.com