Viad Corp (NYSE:VVI) Q3 2019 Earnings Conference Call - Final Transcript

Oct 24, 2019 • 05:00 pm ET

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Viad Corp (NYSE:VVI) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

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

May I introduce your speaker for today, Carrie Long. Please go ahead.

Executive
Carrie Long

Good afternoon and thank you for joining us for Viad's 2019 Third Quarter Earnings Conference Call. During the call, you'll hear from Steven Moster, our President and CEO; and Ellen Ingersoll, our Chief Financial Officer.

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. Important disclosures regarding these measures, including reconciliations to net income or loss attributable to Viad can be found in Table 2 of our earnings press release, which is available on www.viad.com.

With that, I will turn the call over to Steve.

Executive
Steve W. Moster

Thank you for joining us on today's call. Our third quarter was an important quarter with solid execution at both of our businesses. At Pursuit, we opened several experiences that will accelerate our growth and drive strong returns. At GES, we continue to realize strong growth within the corporate market and take actions to simply the business. Across Viad, our teams are working hard to drive shareholder value through successful execution of our growth strategies. Pursuit delivered third quarter revenue growth of 20% and adjusted segment EBITDA margins of 55.6%. These results reflect the strength of our Refresh, Build, Buy strategy and Pursuit's strong hospitality culture.

On the buy side, our recent acquisitions of seven Mountain Park Lodges properties in Jasper National Park and the Belton Chalet near Glacier National Park are performing very well. These properties are a great fit with our existing experiences. And we're delivering faster growth in RevPAR than we had initially expected.

Additionally, we continue to see opportunities to further enhance the return on these investments through future Refresh projects and continued revenue management efforts. On the build side, we successfully opened two new experiences during the third quarter, including our much-anticipated FlyOver Iceland attraction in Reykjavik. This virtual flight ride over the amazing scenery of Iceland is receiving great guest reviews and continues to gain awareness and interest from tourist and our travel trade partners.

We also opened our newly constructed West Glacier RV Park & Cabin village, which is ideally situated at the West entrance to Glacier National Park near our existing food and beverage and retail offerings. We received strong guest reviews in our inaugural year, and we look forward to building upon our initial success during the 2020 season.

Finally, our 36 room expansion of the Windsong Lodge in Alaska, which opened at the end of the second quarter continues to perform very well during the third quarter peak season. With the addition of these new