Viad Corp (VVI) Bundle
A Brief History of Viad Corp
Company Overview
Viad Corp, a public company listed on the New York Stock Exchange under the ticker symbol VVI, operates in the travel and hospitality sectors through its subsidiaries, including Pursuit and GES. As of 2024, the company has positioned itself to leverage growth opportunities within the tourism and event services industries.
Financial Performance
For the third quarter of 2024, Viad Corp reported total revenue of $455.7 million, representing a 24.5% increase compared to $365.9 million in the same quarter of 2023. The net income attributable to Viad for the same period was $48.6 million, up from $41.3 million, marking a 17.8% increase year-over-year.
| Period | Total Revenue (in thousands) | Net Income (in thousands) | EPS (Diluted) |
|---|---|---|---|
| Q3 2024 | $455,704 | $48,615 | $1.65 |
| Q3 2023 | $365,899 | $41,271 | $1.44 |
| 9M 2024 | $1,107,739 | $52,809 | $1.64 |
| 9M 2023 | $947,001 | $31,363 | $0.96 |
Debt and Liquidity
As of September 30, 2024, Viad Corp had total long-term debt of $381.9 million, with a current portion of $2.5 million due. The company's liquidity position is reinforced by unrestricted cash and cash equivalents amounting to $64.6 million and available capacity on its revolving credit facility of $164.3 million, giving a total liquidity of $228.8 million.
Recent Developments
In 2024, Viad Corp faced challenges including the impact of the Jasper wildfires, which affected operations and incurred costs of approximately $7.8 million. However, the company received $4.7 million in insurance proceeds as a partial settlement related to these events.
Segment Performance
The GES segment reported revenue of $273.4 million for Q3 2024, a significant increase of 52.8% compared to $179.0 million in Q3 2023. Segment operating income for GES was $16.6 million, compared to a loss of $5.4 million in the previous year.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Operating Income (in thousands) |
|---|---|---|---|
| GES | $273,447 | $178,959 | $16,632 |
| Pursuit | $182,257 | $184,940 | $5,000 |
Stockholder Equity
As of September 30, 2024, Viad Corp had stockholders' equity of $189.7 million, which includes $37.4 million in common stock and $572.2 million in additional paid-in capital. The accumulated deficit was $(280.0 million), reflecting historical losses.
Future Outlook
Viad Corp is focusing on strategic growth initiatives, including potential acquisitions and expansions in its Pursuit segment, which aims to enhance customer experiences in tourism. The company is positioned well for continued recovery and growth in the post-pandemic environment.
A Who Owns Viad Corp (VVI)
Major Shareholders
As of 2024, Viad Corp (VVI) has a mix of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Crestview Partners | 20.0% | Institutional |
| BlackRock, Inc. | 10.5% | Institutional |
| The Vanguard Group, Inc. | 8.8% | Institutional |
| Dimensional Fund Advisors | 5.7% | Institutional |
| State Street Corporation | 4.9% | Institutional |
| Other Individual Investors | 50.1% | Individual |
Convertible Series A Preferred Stock
Viad Corp has issued Convertible Series A Preferred Stock, which affects ownership dynamics. The details are as follows:
| Type | Shares Issued | Aggregate Purchase Price | Dividend Rate |
|---|---|---|---|
| Convertible Series A Preferred Stock | 135,000 shares | $135 million | 6.5% annually |
Noncontrolling Interests
Viad Corp also holds noncontrolling interests in various subsidiaries. The following table provides a breakdown of these interests as of September 30, 2024:
| Subsidiary | Ownership Percentage | Value (in thousands) |
|---|---|---|
| Esja (FlyOver Iceland) | 56.4% | $4,382 |
| Glacier Park Inc. | 45.0% | $18,159 |
| Brewster | 40.0% | $59,108 |
| Sky Lagoon | 49.0% | $11,921 |
Recent Ownership Changes
As of September 30, 2024, Viad Corp's total stockholders' equity stands at approximately $189.7 million, reflecting an increase compared to the previous year due to strategic investments and revenue growth.
| Equity Component | Value (in thousands) |
|---|---|
| Total Stockholders' Equity | $189,683 |
| Total Liabilities | $1,006,145 |
| Total Assets | $1,195,828 |
Conclusion on Ownership Dynamics
The ownership structure of Viad Corp, driven by institutional investments and convertible securities, positions the company for strategic growth and operational flexibility in 2024.
Viad Corp (VVI) Mission Statement
Overview of Mission Statement
As of 2024, Viad Corp's mission statement emphasizes its commitment to providing exceptional experiences through its diverse portfolio of services and attractions. The company aims to enhance customer engagement and deliver high-quality service across all business segments, including GES (Global Experience Specialists) and Pursuit.
Key Elements of the Mission Statement
- Focus on customer experience and engagement.
- Diverse offerings in the events and attractions sectors.
- Commitment to sustainability and community involvement.
Financial Performance Relevant to the Mission Statement
Viad Corp has shown significant growth in its financial metrics, directly reflecting its mission to enhance customer experiences. The following table summarizes the company's recent financial performance:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $455.7 million | $365.9 million | 24.5% |
| Net Income | $48.6 million | $41.3 million | 17.8% |
| Diluted Income per Share | $1.65 | $1.44 | 14.6% |
| Operating Cash Flow | $133.1 million | $116.6 million | 14.1% |
Strategic Initiatives Supporting the Mission
To align with its mission statement, Viad Corp has implemented several strategic initiatives:
- Expansion of service offerings through acquisitions, such as Eddie’s Café & Mercantile for $15.9 million .
- Investment in new attractions, including the FlyOver Chicago, which opened in March 2024, contributing $3.3 million in revenue in its initial quarter.
- Focus on sustainability through responsible tourism practices and community partnerships.
Market Position and Competitive Advantage
Viad Corp maintains a strong market position within the events and attractions sector, driven by its commitment to customer satisfaction and innovative experiences. The following key statistics illustrate its competitive advantages:
| Statistic | Value |
|---|---|
| Number of Visitors (YTD 2024) | 3,130,570 |
| Revenue from Attractions (YTD 2024) | $176.6 million |
| Room Nights Available | 483,700 |
| Occupancy Rate | 67.0% |
Conclusion
Viad Corp's mission statement and its strategic initiatives reflect a robust focus on enhancing customer experiences and expanding its market reach. The financial performance indicators and operational strategies align with its commitment to delivering high-quality services and attractions.
How Viad Corp (VVI) Works
Business Segments
Viad Corp operates through two primary segments: GES and Pursuit. GES focuses on live events and exhibition services, while Pursuit encompasses tourism attractions and hospitality services.
Financial Performance Overview
As of September 30, 2024, Viad Corp reported total revenue of $455.7 million for the third quarter, a 24.5% increase compared to $365.9 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $1.1 billion, up 17.0% from $947 million in 2023.
| Period | Total Revenue (in millions) | Net Income (in millions) | Diluted Income per Share |
|---|---|---|---|
| Q3 2024 | $455.7 | $48.6 | $1.65 |
| Q3 2023 | $365.9 | $41.3 | $1.44 |
| 9M 2024 | $1,107.7 | $52.8 | $1.64 |
| 9M 2023 | $947.0 | $31.4 | $0.96 |
Segment Analysis
The GES segment reported revenue of $273.4 million for Q3 2024, up from $179.0 million in Q3 2023, reflecting a significant increase in live event activity. The Pursuit segment generated $182.3 million in revenue during the same quarter, down slightly from $186.9 million in 2023.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| GES | $273.4 | $179.0 | 52.9% |
| Pursuit | $182.3 | $186.9 | (2.5%) |
Key Performance Indicators
Pursuit's attractions generated significant visitor traffic, with 3.13 million visitors reported in Q3 2024, compared to 2.99 million in Q3 2023. The average ticket price rose to $43.71, reflecting a 6.7% increase year-over-year.
| Indicator | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Visitors (in millions) | 3.13 | 2.99 | 4.6% |
| Average Ticket Price | $43.71 | $40.96 | 6.7% |
Income and Expenses
For Q3 2024, Viad's net income reached $55.9 million, compared to $49.1 million in Q3 2023, reflecting a strong operational performance. The effective tax rate for the third quarter was approximately 15.8%.
| Period | Net Income (in millions) | Effective Tax Rate (%) |
|---|---|---|
| Q3 2024 | $55.9 | 15.8 |
| Q3 2023 | $49.1 | 15.6 |
Liquidity and Capital Resources
As of September 30, 2024, Viad Corp reported unrestricted cash and cash equivalents of $64.6 million and total available liquidity of $228.8 million, including the capacity on the revolving credit facility.
| Liquidity Item | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $64.6 |
| Available Capacity on Revolving Credit Facility | $164.3 |
| Total Available Liquidity | $228.8 |
Debt Obligations
Viad Corp's total debt as of September 30, 2024, was $699.9 million, with a significant portion attributed to its credit facility and other finance obligations.
| Debt Type | Amount (in millions) | Interest Rate (%) |
|---|---|---|
| Term Loan B | $318.0 | 9.1 |
| Revolving Credit Facility | $0.0 | N/A |
| Total Debt | $699.9 | N/A |
Recent Developments
In 2024, Viad Corp faced challenges due to wildfires affecting operations in the Pursuit segment, resulting in impairment charges totaling $6.1 million. However, new attractions like FlyOver Chicago contributed positively to overall revenue.
How Viad Corp (VVI) Makes Money
Revenue Segmentation
Viad Corp generates revenue through two primary segments: GES (Global Experience Specialists) and Pursuit. As of September 30, 2024, the financial performance of each segment is as follows:
| Segment | Revenue (in thousands) | Operating Income (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| GES | $787,050 | $40,900 | 17.0% |
| Pursuit | $320,689 | $64,710 | 4.1% |
GES (Global Experience Specialists)
The GES segment focuses on providing event services, which include:
- Exhibitions and event management
- Design and production services
- Logistics and transportation
For the three months ended September 30, 2024, GES revenue increased by $94.5 million, attributed mainly to higher demand for live events and exhibitions.
Pursuit Segment Overview
Pursuit operates in the tourism sector and includes attractions, hospitality, and transportation services. The breakdown of Pursuit's revenue for the nine months ended September 30, 2024 is as follows:
| Category | Revenue (in thousands) | Operating Income (in thousands) |
|---|---|---|
| Attractions | $176,623 | $75,903 |
| Hospitality | $131,186 | $64,710 |
| Transportation | $10,311 | Data Not Available |
Key Performance Indicators in Pursuit
The Pursuit segment's performance metrics reveal significant insights:
| Metric | Value |
|---|---|
| Number of Visitors | 3,130,570 |
| Effective Ticket Price | $43.71 |
| RevPAR (Revenue per Available Room) | $153.41 |
| Occupancy Rate | 67.0% |
Financial Performance Summary
As of September 30, 2024, Viad Corp reported a total revenue of $1,107,739, an increase from $947,001 in the previous year, reflecting a 17.0% growth. The net income attributable to Viad for the same period was $52,809, compared to $31,363 in 2023, indicating a 68.4% increase.
Cost and Expenses Overview
Viad Corp's costs and expenses for the nine months ended September 30, 2024 are summarized below:
| Expense Category | Amount (in thousands) |
|---|---|
| Costs of Services | $798,666 |
| Costs of Products | $171,529 |
| Corporate Activities | $17,612 |
| Interest Expense, Net | $35,858 |
Liquidity and Financial Health
As of September 30, 2024, Viad Corp's liquidity position is solid, with unrestricted cash and cash equivalents amounting to $64,552, and available capacity on the revolving credit facility at $164,288.
Future Growth Strategies
Looking ahead, Viad Corp aims to enhance its offerings in the Pursuit segment through its Refresh, Build, Buy growth strategy, focusing on investments in high-return attractions and experiences.
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Resources:
- Viad Corp (VVI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Viad Corp (VVI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Viad Corp (VVI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.