Viad Corp 2015 Third Quarter Earnings Better than Guidance
Marketing & Events Group Remains Strong, with U.S. Base Same-Show Revenue up 4.7%
Marketing & Events Group Remains Strong, with U.S. Base Same-Show Revenue up 4.7%
PHOENIX, Oct. 29, 2015 /PRNewswire/ -- Viad Corp (NYSE: VVI) today announced 2015 third quarter results that were better than guidance, driven by continued strength in its Marketing & Events Group. The expected year-over-year decrease in total revenue and income was driven by the timing of non-annual events and unfavorable exchange rate variances.
Q3 2015 |
Q3 2014 |
Change |
|
$ in millions, except per share data |
|||
Revenue |
$ 255.9 |
$ 299.8 |
-14.6% |
Organic Revenue(1) |
258.4 |
297.9 |
-13.2% |
Segment Operating Income |
$ 14.6 |
$ 33.0 |
-55.9% |
Adjusted Segment Operating Income(1) |
14.8 |
33.1 |
-55.2% |
Adjusted Segment EBITDA(1) |
24.0 |
40.9 |
-41.5% |
Income from Continuing Operations |
$ 7.4 |
$ 30.8 |
-76.0% |
Income Before Other Items(1) |
7.8 |
22.3 |
-64.9% |
Income from Continuing Operations per Diluted Share |
$ 0.37 |
$ 1.53 |
-75.8% |
Income Before Other Items per Diluted Share(1) |
0.39 |
1.11 |
-64.9% |
(1) |
Reconciliations of non-GAAP financial measures to GAAP financial measures are presented in Table Two of this press release. |
Steve Moster, president and chief executive officer, said, "Our Marketing & Events Group continues to deliver better than expected performance. As a result, our income per share before other items came in above our prior guidance for the quarter."
M&E (or GES) Results
Moster said, "GES delivered better results in the third quarter than we had previously anticipated. We continued to see stronger same-show growth, short-term bookings and sales to corporate clients. Our acquisitions of onPeak, Blitz and N200 are performing well and we continue to have success cross-selling these new services into our client base. We expect strong execution and favorable industry conditions to continue, resulting in meaningful year-over-year growth during the fourth quarter."
Q3 2015 |
Q3 2014 |
Change |
|
$ in millions |
|||
Revenue |
$ 188.9 |
$ 226.7 |
-16.7% |
U.S. Organic Revenue(1) |
143.5 |
168.1 |
-14.6% |
International Organic Revenue(1) |
43.9 |
62.3 |
-29.5% |
Segment Operating Income (Loss) |
$ (14.8) |
$ 2.4 |
** |
Adjusted Segment Operating Income (Loss)(1) |
(14.5) |
2.4 |
** |
Adjusted Segment Operating Margin(1) |
-7.7% |
1.1% |
-880 bps |
Adjusted Segment EBITDA(1) |
$ (8.0) |
$ 7.3 |
** |
Adjusted Segment EBITDA Margin(1) |
-4.2% |
3.2% |
-740 bps |
Key Performance Indicators: |
|||
U.S. Base Same-Show Revenue Growth(2) |
4.7% |
||
U.S. Show Rotation Revenue Change(3) |
$(36) approx. |
||
International Show Rotation Revenue Change(3) |
$(17) approx. |
||
(1) |
A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Table Two of this press release. |
(2) |
Base same-shows are defined as shows produced by GES out of the same city during the same quarter in both the current year and prior year. Base same-shows represented 44.5% of GES' U.S. organic revenue during the 2015 third quarter. |
(3) |
Show rotation refers to shows that take place once every two, three or four years, as well as annual shows that change quarters from one year to the next. |
** |
Change is greater than +/- 100 basis points. |
T&R Results
Moster said, "T&R delivered revenue growth of 3.1 percent with a $2.9 million increase in segment operating income, when adjusting for unfavorable currency translation. This growth would have been stronger had it not been such a severe year for forest fire activity that affected visitation in our markets."
Q3 2015 |
Q3 2014 |
Change |
|
$ in millions |
|||
Revenue |
$ 67.1 |
$ 73.1 |
-8.3% |
Organic Revenue(1) |
75.4 |
73.1 |
3.1% |
Segment Operating Income |
$ 29.4 |
$ 30.6 |
-4.2% |
Segment Operating Margin |
43.8% |
41.9% |
190 bps |
Adjusted Segment EBITDA(1) |
$ 31.9 |
$ 33.6 |
-4.9% |
Adjusted Segment EBITDA Margin(1) |
47.6% |
45.9% |
170 bps |
Key Performance Indicators: |
|||
Same-Store RevPAR(2) |
$161 |
$158 |
1.9% |
Same-Store Room Nights Available(2) |
88,664 |
89,547 |
-1.0% |
Same-Store Passengers(3) |
822,480 |
833,515 |
-1.3% |
Same-Store Revenue per Passenger(3) |
$30 |
$27 |
11.1% |
(1) |
A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Table Two of this press release. |
(2) |
Same-store RevPAR is calculated as total rooms revenue divided by the total number of room nights available for all comparable T&R properties during the periods presented, expressed on a constant currency basis. Comparable properties are defined as those owned by Viad for the entirety of both periods. |
(3) |
Same-store revenue per passenger is calculated as total attractions revenue divided by the total number of passengers for all comparable T&R attractions, expressed on a constant currency basis. Comparable attractions are defined as those owned by Viad for the entirety of both periods. |
Cash Flow / Capital Structure
Business Outlook
Guidance provided by Viad is subject to change as a variety of factors can affect actual results. Those factors are identified in the safe harbor language at the end of this press release.
2015 Full Year Guidance
M&E |
T&R |
|||
$ in millions |
||||
Revenue |
Up low-single digits from 2014 ($944.5) |
Down mid-single digits from 2014 ($120.5) |
||
Adjusted Segment EBITDA(1) |
$53 to $55 (vs. $54.9 in 2014) |
$34 to $36 (vs. $36.4 in 2014) |
||
Depreciation & Amortization |
$27 to $28 |
Approximately $8 |
||
Adjusted Operating Income(1) |
$25.5 to $28 (vs. $32.5 in 2014) |
$26 to $28 (vs. $28.1 in 2014) |
||
Adjusted Operating Margin(1) |
2.6% to 2.9% |
Comparable to 2014 (23.3%) |
||
Capital Expenditures |
$15 to $17 |
$18 to $20 |
||
(1) See Table Two of this press release for discussion of these non-GAAP measures. |
||||
Q1 Actual |
Q2 Actual |
Q3 Actual |
Q4 Est. |
FY Est. |
|
Show Rotation Revenue (in millions) |
$(40) |
$14 |
$(53) |
$10 |
$(70) |
Viad Total |
M&E |
T&R |
|
$ in millions, except per share amounts |
|||
Revenue |
$ (40) |
$ (26) |
$ (14) |
Adjusted Segment Operating Income(1) |
$ (6) |
$ (1) |
$ (5) |
Income per Share Before Other Items(1) |
$(0.21) |
||
(1) See Table Two of this press release for discussion of these non-GAAP measures. |
|||
2015 Fourth Quarter Guidance
2015 Guidance |
|||||
2014 |
Low End |
High End |
FX Impact(2) |
||
$ in millions, except per share amounts |
|||||
Revenue: |
|||||
M&E |
$213.4 |
$ 230 |
to |
$ 240 |
$ (5) |
T&R |
9.8 |
7 |
to |
9 |
(1) |
Adjusted Segment Operating Income (Loss)(1): |
|||||
M&E |
$ 2.9 |
$ 5.5 |
to |
$ 8.0 |
$ (0.4) |
T&R |
(2.8) |
(4.8) |
to |
(2.8) |
0.3 |
Income per Share Before Other Items(1) |
$(0.18) |
$(0.08) |
to |
$0.00 |
$0.00 |
(1) |
See Table Two of this press release for discussion of these non-GAAP measures. |
(2) |
FX Impact represents the expected effect of year-over-year changes in exchange rates that is incorporated in the low end and high end guidance ranges presented. |
Conference Call and Web Cast
Viad Corp will hold a conference call with investors and analysts for a review of third quarter 2015 results on Thursday, October 29, 2015 at 4:30 p.m. (ET). To join the live conference, call (800) 857-4380, passcode "Viad," or access the webcast through Viad's Web site at www.viad.com. A replay will be available for a limited time at (866) 479-2462 (no passcode required) or visit the Viad Web site and link to a replay of the webcast.
About Viad
Viad is an S&P SmallCap 600 company. Viad operates through its Marketing & Events Group, composed of Global Experience Specialists and affiliates, and its Travel & Recreation Group, composed of Brewster, Glacier Park, Inc. and Alaska Denali Travel. For more information, visit the company's Web site at www.viad.com.
Forward-Looking Statements
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 may constitute forward-looking statements. These forward-looking statements are not historical facts, but reflect current estimates, projections, expectations, or trends concerning future growth, operating cash flows, availability of short-term borrowings, consumer demand, new or renewal business, investment policies, productivity improvements, ongoing cost reduction efforts, efficiency, competitiveness, legal expenses, tax rates and other tax matters, foreign exchange rates, and the realization of restructuring cost savings. Actual results could differ materially from those discussed in the forward-looking statements. Viad's businesses can be affected by a host of risks and uncertainties. Among other things, natural disasters, gains and losses of customers, consumer demand patterns, labor relations, purchasing decisions related to customer demand for exhibition and event services, existing and new competition, industry alliances, consolidation and growth patterns within the industries in which Viad competes, acquisitions, capital allocations, adverse developments in liabilities associated with discontinued operations and any deterioration in the economy, may individually or in combination impact future results. In addition to factors mentioned elsewhere, economic, competitive, governmental, technological, capital marketplace and other factors, including terrorist activities or war, a pandemic health crisis and international conditions, could affect the forward-looking statements in this press release. Additional information concerning business and other risk factors that could cause actual results to materially differ from those in the forward-looking statements can be found in Viad's annual and quarterly reports filed with the Securities and Exchange Commission.
Information about Viad Corp obtained from sources other than the company may be out-of-date or incorrect. Please rely only on company press releases, SEC filings and other information provided by the company, keeping in mind that forward-looking statements speak only as of the date made. Viad undertakes no obligation to update any forward-looking statements, including prior forward-looking statements, to reflect events or circumstances arising after the date as of which the forward-looking statements were made.
Contact:
Carrie Long
Viad Corp
(602) 207-2681
[email protected]
VIAD CORP AND SUBSIDIARIES |
|||||||||||||||||
TABLE ONE - QUARTERLY RESULTS |
|||||||||||||||||
(UNAUDITED) |
|||||||||||||||||
Three months ended September 30, |
Nine months ended September 30, |
||||||||||||||||
(in thousands, except per share data) |
2015 |
2014 |
$ Change |
% Change |
2015 |
2014 |
$ Change |
% Change |
|||||||||
Revenue: |
|||||||||||||||||
Marketing & Events Group: |
|||||||||||||||||
U.S. |
$ 148,314 |
$ 168,058 |
$ (19,744) |
-11.7% |
$ 550,006 |
$ 558,292 |
$ (8,286) |
-1.5% |
|||||||||
International |
44,870 |
64,199 |
(19,329) |
-30.1% |
195,829 |
186,296 |
9,533 |
5.1% |
|||||||||
Intersegment eliminations |
(4,321) |
(5,595) |
1,274 |
22.8% |
(13,475) |
(13,517) |
42 |
0.3% |
|||||||||
Total Marketing & Events Group |
188,863 |
226,662 |
(37,799) |
-16.7% |
732,360 |
731,071 |
1,289 |
0.2% |
|||||||||
Travel & Recreation Group |
67,083 |
73,140 |
(6,057) |
-8.3% |
105,017 |
110,763 |
(5,746) |
-5.2% |
|||||||||
Total revenue |
$ 255,946 |
$ 299,802 |
$ (43,856) |
-14.6% |
$ 837,377 |
$ 841,834 |
$ (4,457) |
-0.5% |
|||||||||
Segment operating income (loss): |
|||||||||||||||||
Marketing & Events Group: |
|||||||||||||||||
U.S. |
$ (9,039) |
$ 1,069 |
$ (10,108) |
** |
$ 12,572 |
$ 22,044 |
$ (9,472) |
-43.0% |
|||||||||
International |
(5,751) |
1,297 |
(7,048) |
** |
6,405 |
7,512 |
(1,107) |
-14.7% |
|||||||||
Total Marketing & Events Group |
(14,790) |
2,366 |
(17,156) |
** |
18,977 |
29,556 |
(10,579) |
-35.8% |
|||||||||
Travel & Recreation Group |
29,361 |
30,648 |
(1,287) |
-4.2% |
30,755 |
30,955 |
(200) |
-0.6% |
|||||||||
Segment operating income |
14,571 |
33,014 |
(18,443) |
-55.9% |
49,732 |
60,511 |
(10,779) |
-17.8% |
|||||||||
Corporate activities (Note A) |
(1,354) |
(3,468) |
2,114 |
61.0% |
(6,147) |
(7,498) |
1,351 |
18.0% |
|||||||||
Restructuring charges |
(257) |
(238) |
(19) |
-8.0% |
(1,542) |
(1,814) |
272 |
15.0% |
|||||||||
Impairment charges (Note B) |
- |
- |
- |
** |
- |
(884) |
884 |
** |
|||||||||
Net interest expense (Note C) |
(1,133) |
(381) |
(752) |
** |
(2,881) |
(869) |
(2,012) |
** |
|||||||||
Income from continuing operations before |
|||||||||||||||||
income taxes |
11,827 |
28,927 |
(17,100) |
-59.1% |
39,162 |
49,446 |
(10,284) |
-20.8% |
|||||||||
Income tax (expense) benefit (Note D) |
(3,746) |
2,623 |
(6,369) |
** |
(10,851) |
(870) |
(9,981) |
** |
|||||||||
Income from continuing operations |
8,081 |
31,550 |
(23,469) |
-74.4% |
28,311 |
48,576 |
(20,265) |
-41.7% |
|||||||||
Income (loss) from discontinued operations (Note E) |
(163) |
(979) |
816 |
83.4% |
(233) |
13,023 |
(13,256) |
** |
|||||||||
Net income |
7,918 |
30,571 |
(22,653) |
-74.1% |
28,078 |
61,599 |
(33,521) |
-54.4% |
|||||||||
Net income attributable to noncontrolling interest |
(688) |
(951) |
263 |
27.7% |
(515) |
(3,355) |
2,840 |
84.6% |
|||||||||
Net income attributable to Viad |
$ 7,230 |
$ 29,620 |
$ (22,390) |
-75.6% |
$ 27,563 |
$ 58,244 |
$ (30,681) |
-52.7% |
|||||||||
Amounts Attributable to Viad Common Stockholders: |
|||||||||||||||||
Income from continuing operations |
$ 7,393 |
$ 30,756 |
$ (23,363) |
-76.0% |
$ 27,796 |
$ 48,046 |
$ (20,250) |
-42.1% |
|||||||||
Income (loss) from discontinued operations |
(163) |
(1,136) |
973 |
85.7% |
(233) |
10,198 |
(10,431) |
** |
|||||||||
Net income |
$ 7,230 |
$ 29,620 |
$ (22,390) |
-75.6% |
$ 27,563 |
$ 58,244 |
$ (30,681) |
-52.7% |
|||||||||
Diluted income per common share: |
|||||||||||||||||
Income from continuing operations |
|||||||||||||||||
attributable to Viad common shareholders |
$ 0.37 |
$ 1.53 |
$ (1.16) |
-75.8% |
$ 1.38 |
$ 2.38 |
$ (1.00) |
-42.0% |
|||||||||
Income (loss) from discontinued operations |
|||||||||||||||||
attributable to Viad common shareholders |
(0.01) |
(0.05) |
0.04 |
80.0% |
(0.01) |
0.50 |
(0.51) |
** |
|||||||||
Net income attributable to Viad common |
|||||||||||||||||
shareholders |
$ 0.36 |
$ 1.48 |
$ (1.12) |
-75.7% |
$ 1.37 |
$ 2.88 |
$ (1.51) |
-52.4% |
|||||||||
Basic income per common share: |
|||||||||||||||||
Income from continuing operations |
|||||||||||||||||
attributable to Viad common shareholders |
$ 0.37 |
$ 1.53 |
$ (1.16) |
-75.8% |
$ 1.38 |
$ 2.38 |
$ (1.00) |
-42.0% |
|||||||||
Income (loss) from discontinued operations |
|||||||||||||||||
attributable to Viad common shareholders |
(0.01) |
(0.05) |
0.04 |
80.0% |
(0.01) |
0.50 |
(0.51) |
** |
|||||||||
Net income attributable to Viad common |
|||||||||||||||||
shareholders (Note F) |
$ 0.36 |
$ 1.48 |
$ (1.12) |
-75.7% |
$ 1.37 |
$ 2.88 |
$ (1.51) |
-52.4% |
|||||||||
Common shares treated as outstanding for |
|||||||||||||||||
Income (loss) per share calculations: |
|||||||||||||||||
Weighted-average outstanding common shares |
19,831 |
19,679 |
152 |
0.8% |
19,782 |
19,832 |
(50) |
-0.3% |
|||||||||
Weighted-average outstanding and potentially |
|||||||||||||||||
dilutive common shares |
19,974 |
19,954 |
20 |
0.1% |
19,946 |
20,174 |
(228) |
-1.1% |
|||||||||
** Change is greater than +/- 100 percent |
|||||||||||||||||
Note - Certain amounts above may not foot due to rounding. |
|||||||||||||||||
VIAD CORP AND SUBSIDIARIES |
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TABLE ONE - NOTES TO QUARTERLY RESULTS |
|||||||||||||||||
(UNAUDITED) |
|||||||||||||||||
(A) |
Corporate Activities -- The decrease in corporate activities expense for the nine months ended September 30, 2015 was primarily related to consulting and other transaction-related costs associated with acquisitions incurred primarily during the third quarter of 2014, offset in part by costs related to a shareholder nomination and settlement agreement during 2015. |
||||||||||||||||
(B) |
Impairment Charges -- During the nine months ended September 30, 2014, Viad recorded impairment charges of $0.9 million ($0.5 million after-tax) related to the write-off of certain assets in the Marketing & Events International segment. |
||||||||||||||||
(C) |
Net Interest Expense -- The increase in net interest expense for the nine months ended September 30, 2015 was primarily related to higher outstanding debt balances resulting from acquisitions completed during the second half of 2014. |
||||||||||||||||
(D) |
Income Taxes -- The nine months ended September 30, 2015 included a $1.6 million non-cash tax benefit related to deferred taxes associated with certain foreign intangibles. This resulted in a $0.07 per share tax benefit. |
||||||||||||||||
The relatively low effective tax rates for the three and nine months ended September 30, 2014 was primarily due to the release of the valuation allowance related to foreign tax credits and certain adjustments to deferred tax assets. During the third quarter of 2014, it was determined that certain deferred tax assets associated with foreign tax credits, for which a valuation allowance had previously been established, once again met the "more-likely-than-not" test in the accounting standards regarding the realization of those assets. Accordingly, the Company recorded a tax benefit of $10.1 million to income tax expense. This resulted in a $0.50 per share tax benefit. |
|||||||||||||||||
(E) |
Income (Loss) from Discontinued Operations -- On December 31, 2013, Glacier Park's concession contract with the Park Service to operate lodging, tour and transportation, and other hospitality services for Glacier National Park expired. Upon completion of the contract term, Viad received cash payments in January 2014 totaling $25.0 million for the Company's possessory interest. This resulted in a pre-tax gain of $21.5 million and an after-tax gain of $12.6 million which was recorded as income from discontinued operations. The loss from discontinued operations for the three months ended September 30, 2014 included income of $0.7 million, net of tax, related to the gain on sale of personal property at Glacier Park, which was more than offset by the allocation of taxes to the possessory interest gain. |
||||||||||||||||
For the nine months ended September 30, 2014, Viad also recorded a loss from discontinued operations of approximately $0.3 million, net of tax, due to additional reserves related to certain liabilities associated with previously sold operations. |
|||||||||||||||||
(F) |
Income per Common Share -- Following is a reconciliation of net income attributable to Viad to net income allocated to Viad common shareholders: |
||||||||||||||||
Three months ended September 30, |
Nine months ended September 30, |
||||||||||||||||
(in thousands, except per share data) |
2015 |
2014 |
$ Change |
% Change |
2015 |
2014 |
$ Change |
% Change |
|||||||||
Net income attributable to Viad |
$ 7,230 |
$ 29,620 |
$ (22,390) |
-75.6% |
$ 27,563 |
$ 58,244 |
$ (30,681) |
-52.7% |
|||||||||
Less: Allocation to nonvested shares |
(100) |
(538) |
438 |
81.4% |
(402) |
(1,098) |
696 |
63.4% |
|||||||||
Net income allocated to Viad common |
|||||||||||||||||
shareholders |
$ 7,130 |
$ 29,082 |
$ (21,952) |
-75.5% |
$ 27,161 |
$ 57,146 |
$ (29,985) |
-52.5% |
|||||||||
Weighted-average outstanding common shares |
19,831 |
19,679 |
152 |
0.8% |
19,782 |
19,832 |
(50) |
-0.3% |
|||||||||
Basic income per common share attributable |
|||||||||||||||||
to Viad common shareholders |
$ 0.36 |
$ 1.48 |
$ (1.12) |
-75.7% |
$ 1.37 |
$ 2.88 |
$ (1.51) |
-52.4% |
|||||||||
** Change is greater than +/- 100 percent |
|||||||||||||||||
Note - Certain amounts above may not foot due to rounding. |
|||||||||||||||||
VIAD CORP AND SUBSIDIARIES |
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TABLE TWO - NON-GAAP MEASURES (NOTE A) |
|||||||||||||||||
(UNAUDITED) |
|||||||||||||||||
Three months ended September 30, |
Nine months ended September 30, |
||||||||||||||||
(in thousands) |
2015 |
2014 |
$ Change |
% Change |
2015 |
2014 |
$ Change |
% Change |
|||||||||
Income before other items: |
|||||||||||||||||
Income from continuing operations attributable to Viad |
$ 7,393 |
$ 30,756 |
$ (23,363) |
-76.0% |
$ 27,796 |
$ 48,046 |
$ (20,250) |
-42.1% |
|||||||||
Restructuring charges, net of tax |
128 |
148 |
(20) |
13.5% |
980 |
1,134 |
(154) |
13.6% |
|||||||||
Acquisition-related costs and other non-recurring expenses, net of tax (B) |
297 |
1,477 |
(1,180) |
79.9% |
1,845 |
1,602 |
243 |
-15.2% |
|||||||||
Impairment charges, net of tax |
- |
- |
- |
** |
- |
549 |
(549) |
** |
|||||||||
Favorable tax matters |
- |
(10,089) |
10,089 |
** |
(1,563) |
(12,624) |
11,061 |
-87.6% |
|||||||||
Income before other items |
$ 7,818 |
$ 22,292 |
$ (14,474) |
-64.9% |
$ 29,058 |
$ 38,707 |
$ (9,649) |
-24.9% |
|||||||||
(per diluted share) |
|||||||||||||||||
Income before other items: |
|||||||||||||||||
Income from continuing operations attributable to Viad |
$ 0.37 |
$ 1.53 |
$ (1.16) |
-75.8% |
$ 1.38 |
$ 2.38 |
$ (1.00) |
-42.0% |
|||||||||
Restructuring charges, net of tax |
0.01 |
0.01 |
- |
0.0% |
0.05 |
0.06 |
(0.01) |
16.7% |
|||||||||
Acquisition-related costs and other non-recurring expenses, net of tax (B) |
0.01 |
0.07 |
(0.06) |
85.7% |
0.09 |
0.07 |
0.02 |
-28.6% |
|||||||||
Impairment charges, net of tax |
- |
- |
- |
** |
- |
0.03 |
(0.03) |
** |
|||||||||
Favorable tax matters |
- |
(0.50) |
0.50 |
** |
(0.07) |
(0.63) |
0.56 |
-88.9% |
|||||||||
Income before other items |
$ 0.39 |
$ 1.11 |
$ (0.72) |
-64.9% |
$ 1.45 |
$ 1.91 |
$ (0.46) |
-24.1% |
|||||||||
(in thousands) |
|||||||||||||||||
Adjusted EBITDA: |
|||||||||||||||||
Net income attributable to Viad |
$ 7,230 |
$ 29,620 |
$ (22,390) |
-75.6% |
$ 27,563 |
$ 58,244 |
$ (30,681) |
-52.7% |
|||||||||
(Income) loss from discontinued operations |
163 |
1,136 |
(973) |
85.7% |
233 |
(10,198) |
10,431 |
** |
|||||||||
Impairment charges |
- |
- |
- |
** |
- |
884 |
(884) |
** |
|||||||||
Interest expense |
1,226 |
489 |
737 |
** |
3,532 |
1,161 |
2,371 |
** |
|||||||||
Income tax expense |
3,386 |
(3,168) |
6,554 |
** |
10,611 |
439 |
10,172 |
** |
|||||||||
Depreciation and amortization |
9,043 |
7,780 |
1,263 |
-16.2% |
26,680 |
21,559 |
5,121 |
-23.8% |
|||||||||
Adjusted EBITDA |
$ 21,048 |
$ 35,857 |
$ (14,809) |
-41.3% |
$ 68,619 |
$ 72,089 |
$ (3,470) |
-4.8% |
|||||||||
Additional Prior Year Non-GAAP Measures: |
2014 |
||||||||||||||||
(per diluted share) |
Q1 |
Q2 |
Q3 |
Q4 |
Full Year |
||||||||||||
Income (loss) before other items: |
|||||||||||||||||
Income (loss) from continuing operations attributable to Viad |
$ 0.46 |
$ 0.39 |
$ 1.53 |
$ (0.37) |
$ 2.02 |
||||||||||||
Restructuring charges, net of tax |
- |
0.04 |
0.01 |
- |
0.05 |
||||||||||||
Acquisition-related costs and other non-recurring expenses, net of tax (B) |
- |
0.01 |
0.07 |
0.16 |
0.24 |
||||||||||||
Impairment charges, net of tax |
- |
0.03 |
- |
- |
0.03 |
||||||||||||
Tax matters |
(0.10) |
(0.02) |
(0.50) |
0.03 |
(0.59) |
||||||||||||
Income (loss) before other items |
$ 0.36 |
$ 0.45 |
$ 1.11 |
$ (0.18) |
$ 1.75 |
||||||||||||
2014 Fourth Quarter |
2014 Full Year |
||||||||||||||||
(in thousands) |
M&E |
T&R |
Viad Total |
M&E |
T&R |
Viad Total |
|||||||||||
Adjusted Segment Operating Income, EBITDA and EBITDA Margin: |
|||||||||||||||||
Revenue |
$ 213,398 |
$ 9,756 |
$ 223,154 |
$ 944,468 |
$ 120,519 |
$ 1,064,987 |
|||||||||||
Segment operating income (loss) |
2,183 |
(2,827) |
(644) |
31,739 |
28,127 |
59,866 |
|||||||||||
Integration costs |
723 |
- |
723 |
782 |
- |
782 |
|||||||||||
Adjusted segment operating income (loss) |
2,906 |
(2,827) |
79 |
32,521 |
28,127 |
60,648 |
|||||||||||
Segment depreciation |
5,306 |
1,623 |
6,929 |
20,024 |
7,866 |
27,890 |
|||||||||||
Segment amortization |
1,851 |
111 |
1,962 |
2,353 |
366 |
2,719 |
|||||||||||
Adjusted segment EBITDA |
$ 10,063 |
$ (1,093) |
$ 8,970 |
$ 54,898 |
$ 36,359 |
$ 91,257 |
|||||||||||
Adjusted segment EBITDA margin |
4.7% |
-11.2% |
4.0% |
5.8% |
30.2% |
8.6% |
|||||||||||
** Change is greater than +/- 100 percent |
|||||||||||||||||
Note - Certain amounts above may not foot due to rounding. |
|||||||||||||||||
(A) |
Income before other items, Adjusted EBITDA and free cash flow are 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 other companies. These non-GAAP measures are used by management to facilitate period-to-period comparisons and analysis of Viad's operating performance and liquidity. Management believes these non-GAAP measures are useful to investors in trending, analyzing and benchmarking the performance and value of Viad's business. These non-GAAP measures should be considered in addition to, but not as a substitute for, other similar measures reported in accordance with GAAP. |
||||||||||||||||
Forward−Looking Non−GAAP Financial Measures |
|||||||||||||||||
(B) |
Acquisition-related costs and other non-recurring expenses include: acquisition integration costs (included in segment operating income); acquisition transaction-related costs (included in corporate activities expense), costs related to a shareholder nomination and settlement agreement (included in corporate activities expense) and CEO transition costs (included in Q4 2014 corporate activities expense). |
||||||||||||||||
VIAD CORP AND SUBSIDIARIES |
|||||||||||||||
TABLE TWO - NON-GAAP MEASURES |
|||||||||||||||
(UNAUDITED) |
|||||||||||||||
Organic - The term "organic" is used within this document to refer to results without the impact of exchange rate variances and acquisitions, if any, until such acquisitions are included in the entirety of both comparable periods. The impact of exchange rate variances (or "FX Impact") is calculated as the difference between current period activity translated at the current period's exchange rates and the comparable prior period's exchange rates. Management believes that the presentation of "organic" results permits investors to better understand Viad's performance without the effects of exchange rate variances or acquisitions. |
|||||||||||||||
Adjusted segment operating income (loss) and Adjusted Segment EBITDA - Adjusted segment operating income (loss) is calculated as segment operating income (loss) excluding acquisition integration costs, if any. Adjusted segment EBITDA is calculated as adjusted segment operating income (loss) plus depreciation and amortization. Adjusted Segment Operating Income and Adjusted Segment EBITDA are 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 other companies. Management believes these measures are useful information to investors regarding Viad's results of operations for trending, analyzing and benchmarking the performance and value of Viad's business. Management also believes that the presentation of adjusted segment EBITDA for acquisitions enables investors to assess how effectively management is investing capital into major corporate development projects, both from a valuation and return perspective. |
|||||||||||||||
Three months ended September 30, 2015 |
Three months ended September 30, 2014 |
||||||||||||||
(in thousands) |
As Reported |
Acquisitions(A) |
FX Impact |
Organic |
As Reported |
Acquisitions(A) |
Organic |
||||||||
Viad Consolidated: |
|||||||||||||||
Revenue |
$ 255,946 |
$ 10,010 |
$ (12,507) |
$ 258,443 |
$ 299,802 |
$ 1,932 |
$ 297,870 |
||||||||
Segment operating income (loss) |
$ 14,571 |
(2,475) |
(3,531) |
20,577 |
33,014 |
470 |
32,544 |
||||||||
Integration costs |
247 |
247 |
- |
- |
59 |
59 |
- |
||||||||
Adjusted segment operating income (loss) |
14,818 |
(2,228) |
(3,531) |
20,577 |
33,073 |
529 |
32,544 |
||||||||
Segment depreciation |
7,434 |
821 |
(438) |
7,051 |
7,660 |
84 |
7,576 |
||||||||
Segment amortization |
1,702 |
1,558 |
(12) |
156 |
190 |
- |
190 |
||||||||
Adjusted Segment EBITDA |
$ 23,954 |
$ 151 |
$ (3,981) |
$ 27,784 |
$ 40,923 |
$ 613 |
$ 40,310 |
||||||||
Adjusted segment operating margin |
5.8% |
-22.3% |
28.2% |
8.0% |
11.0% |
27.4% |
10.9% |
||||||||
Adjusted segment EBITDA margin |
9.4% |
1.5% |
31.8% |
10.8% |
13.7% |
31.7% |
13.5% |
||||||||
Marketing & Events Group: |
|||||||||||||||
Revenue |
$ 188,863 |
$ 10,010 |
$ (4,200) |
$ 183,053 |
$ 226,662 |
$ 1,932 |
$ 224,730 |
||||||||
Segment operating income (loss) |
(14,790) |
(2,475) |
639 |
(12,954) |
2,366 |
470 |
1,896 |
||||||||
Integration costs |
247 |
247 |
- |
- |
59 |
59 |
- |
||||||||
Adjusted segment operating income (loss) |
(14,543) |
(2,228) |
639 |
(12,954) |
2,425 |
529 |
1,896 |
||||||||
Depreciation |
4,941 |
821 |
(100) |
4,220 |
4,807 |
84 |
4,723 |
||||||||
Amortization |
1,625 |
1,558 |
(4) |
71 |
104 |
- |
104 |
||||||||
Adjusted Segment EBITDA |
$ (7,977) |
$ 151 |
$ 535 |
$ (8,663) |
$ 7,336 |
$ 613 |
$ 6,723 |
||||||||
Adjusted segment operating margin |
-7.7% |
-22.3% |
-15.2% |
-7.1% |
1.1% |
27.4% |
0.8% |
||||||||
Adjusted segment EBITDA margin |
-4.2% |
1.5% |
-12.7% |
-4.7% |
3.2% |
31.7% |
3.0% |
||||||||
Marketing & Events Group - U.S.: |
|||||||||||||||
Revenue |
$ 148,314 |
$ 4,827 |
$ - |
$ 143,487 |
$ 168,058 |
$ - |
$ 168,058 |
||||||||
Segment operating income (loss) |
(9,039) |
(1,220) |
- |
(7,819) |
1,069 |
- |
1,069 |
||||||||
Integration costs |
88 |
88 |
- |
- |
- |
- |
- |
||||||||
Adjusted segment operating income (loss) |
(8,951) |
(1,132) |
- |
(7,819) |
1,069 |
- |
1,069 |
||||||||
Depreciation |
3,545 |
347 |
- |
3,198 |
3,536 |
- |
3,536 |
||||||||
Amortization |
992 |
992 |
- |
- |
- |
- |
- |
||||||||
Adjusted Segment EBITDA |
$ (4,414) |
$ 207 |
$ - |
$ (4,621) |
$ 4,605 |
$ - |
$ 4,605 |
||||||||
Adjusted segment operating margin |
-6.0% |
-23.5% |
-5.4% |
0.6% |
0.6% |
||||||||||
Adjusted segment EBITDA margin |
-3.0% |
4.3% |
-3.2% |
2.7% |
2.7% |
||||||||||
Marketing & Events Group - International: |
|||||||||||||||
Revenue |
$ 44,870 |
$ 5,183 |
$ (4,200) |
$ 43,887 |
$ 64,199 |
$ 1,932 |
$ 62,267 |
||||||||
Segment operating income (loss) |
(5,751) |
(1,255) |
639 |
(5,135) |
1,297 |
470 |
827 |
||||||||
Integration costs |
159 |
159 |
- |
- |
59 |
59 |
- |
||||||||
Adjusted segment operating income (loss) |
(5,592) |
(1,096) |
639 |
(5,135) |
1,356 |
529 |
827 |
||||||||
Depreciation |
1,396 |
474 |
(100) |
1,022 |
1,271 |
84 |
1,187 |
||||||||
Amortization |
633 |
566 |
(4) |
71 |
104 |
- |
104 |
||||||||
Adjusted Segment EBITDA |
$ (3,563) |
$ (56) |
$ 535 |
$ (4,042) |
$ 2,731 |
$ 613 |
$ 2,118 |
||||||||
Adjusted segment operating margin |
-12.5% |
-21.1% |
-15.2% |
-11.7% |
2.1% |
27.4% |
1.3% |
||||||||
Adjusted segment EBITDA margin |
-7.9% |
-1.1% |
-12.7% |
-9.2% |
4.3% |
31.7% |
3.4% |
||||||||
Travel & Recreation Group: |
|||||||||||||||
Revenue |
$ 67,083 |
$ - |
$ (8,307) |
$ 75,390 |
$ 73,140 |
$ - |
$ 73,140 |
||||||||
Segment operating income |
29,361 |
- |
(4,170) |
33,531 |
30,648 |
- |
30,648 |
||||||||
Integration costs |
- |
- |
- |
- |
- |
- |
- |
||||||||
Adjusted segment operating income |
29,361 |
- |
(4,170) |
33,531 |
30,648 |
- |
30,648 |
||||||||
Depreciation |
2,493 |
- |
(338) |
2,831 |
2,853 |
- |
2,853 |
||||||||
Amortization |
77 |
- |
(8) |
85 |
86 |
- |
86 |
||||||||
Adjusted Segment EBITDA |
$ 31,931 |
$ - |
$ (4,516) |
$ 36,447 |
$ 33,587 |
$ - |
$ 33,587 |
||||||||
Adjusted segment operating margin |
43.8% |
50.2% |
44.5% |
41.9% |
41.9% |
||||||||||
Adjusted segment EBITDA margin |
47.6% |
54.4% |
48.3% |
45.9% |
45.9% |
(A) |
Acquisitions include onPeak (acquired October 2014) for M&E U.S., and Blitz (acquired September 2014) and N200 (acquired November 2014) for M&E International. |
|||||||||||||||
Note - Certain amounts above may not foot due to rounding. |
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SOURCE Viad Corp
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