Viad Corp (NYSE:VVI) Q4 2015 Earnings Conference Call - Final Transcript

Feb 04, 2016 • 05:00 pm ET


Viad Corp (NYSE:VVI) Q4 2015 Earnings Conference Call - Final Transcript


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Welcome to the Viad Corp Fourth Quarter Earnings Conference Call. [Operator Instructions].

I will now turn the call over to Ms. Carrie Long. Maa'm, you may begin.

Carrie Long

Thank you, and good afternoon to those of you on the call. Thanks for joining us. During the call, you will be hearing from Steve Moster, Viad's President and CEO, and Ellen Ingersoll, our Chief Financial Officer. During the call certain statements will be made, that not historical facts, and they may constitute forward-looking statements. 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 SEC.

Additionally, we'll be referring to certain non-GAAP measures during the call. A discussion and reconciliation of those measures can be found in table two of our earnings press release which is available on our website at

With that, I'll turn the call over to Steve.

Steve Moster

Thanks, and thank you for everybody for joining us on today's call. We delivered strong results for the 2015 fourth quarter and full year. And we met the financial targets that we set out at the beginning of 2015. Despite various headwinds, including a revenue decline of about $110 million from a combination of share rotation and exchange rate variances.

I'm very proud to say that we're able to hold adjusted segment EBITDA relatively flat to 2014, at both business groups. These results reflect the strength of our businesses, good industry fundamentals and execution against our strategic growth plans. Our Marketing & Events Group benefitted from strong same-show growth, new business wins and solid performance from our 2014 acquisitions.

For the year, GES delivered EBITDA of $54.8 million, which essentially was flat in 2014. Despite a revenue headwind of about $97 million from share rotation and exchange rates. GES' US base same-show growth was 8% for the full year. Similarly, CEIR, the Center for Exhibition Industry Research has reported positive growth in the industry for 2015 and has forecasted continued growth in 2016.

Our Travel & Recreation Group also delivered essentially flat, full-year EBITDA of $35.8 million on a revenue decline of about $8.3 million versus 2014. Our focus on margin improvement more than offset revenue headwinds of about $14 million from exchange rates and about $3.5 million due to the combination of forest fire activity at Glacier Park during our peak season and the closure of the Banff Gondola renovations during the fourth quarter.

We saw strong growth from Brewster, where revenue was up 6.4% in local currency, led by its high margin attraction. Alaska Denali travel also posted strong revenue growth of 8%, primarily due to increased RevPAR. The industry trends overall are positive, as visitation to National Parks continues to grow. The resiliency of our Travel & Recreation Group is a testament to the great experiences that we deliver for our guests and the iconic locations in which we operate. In 2015, we made significant progress