Viad Corp (NYSE:VVI) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET

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Viad Corp (NYSE:VVI) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Thank you all for standing by, and welcome to the Viad Corp Fourth Quarter Earnings Conference Call. At this time all participants will be in a listen-only mode. (Operator Instructions) This call is being recorded. If you object, you may disconnect at this point.

Now I'll turn the meeting over to your host, Ms. Carrie Long. You may begin.

Executive
Carrie Long

Thank you and good afternoon for those of you on the call and thanks for joining us today. During the call, you'll be hearing from Steve Moster, our President and CEO; and Ellen Ingersoll, our Chief Financial Officer.

Before we get started, I'd like to remind you, certain statements made during this call, which are not historical facts, 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 our annual and quarterly reports filed with the SEC.

We'll be referring to certain non-GAAP measures during the call, including income or loss before other items, adjusted segment EBITDA and adjusted segment operating income or loss. These measures exclude restructuring and impairment charges or recoveries, acquisition transaction-related and integration costs as well as FlyOver Iceland start-up costs as appropriate. Important disclosures regarding these measures, including reconciliations to net income attributable to Viad, can be found in Table 2 of our earnings press release, which is available on www.viad.com.

Now, I'll turn the call over to Steve.

Executive
Steve W. Moster

Thank you for joining us on today's call. We are delivered fourth quarter revenue growth of 7.1% that exceeded the high end of our prior guidance range. Our adjusted segment EBITDA improved by $7.2 million versus the 2017 fourth quarter. The higher than expected revenue was driven by GES, although we did see strong throughput on the year-over-year revenue increase. It was lower than we previously anticipated primarily due to the mix of revenue at GES. GES had some real bright spots during the quarter, like strong growth in our revenue from corporate clients, but there are also areas where we missed our margin expectation in some cases due to external factors like labor supply and medical claims.

In other cases where quite frankly we had missed opportunities and could have delivered better results. For the full year, our consolidated revenue was essentially flat to 2017, as growth at Pursuit and favorable exchange rate variances were offset by expected negative show rotation at GES. At GES, we continue to strengthen our product and service offerings as we strive to become the preferred global full service provider for live events. Our award winning services are some of the most comprehensive in the industry and we continue to see more clients select us for an expanded array of services.

In addition to the increased scope of work our engagement with clients is moving up the value change as increasingly we are participating in strategy and planning discussions. One of the major themes emerging in our space is the need to drive