Consolidated Revenue Grew 5.6%

GES Continued to

Deliver Base Same-Show Growth

Pursuit Delivered

Organic Revenue Growth of 7.3% Despite Impact of Fires

PHOENIX--(BUSINESS WIRE)--Viad Corp (NYSE: VVI) today announced third quarter 2018 results that

were stronger year-over-year but slightly below prior guidance.

Consolidated revenue grew 5.6% and income before other items increased

28.5%. Net income attributable to Viad declined primarily due to

impairment recoveries of $17.8 million, after-tax, received during the

2017 third quarter related to the Mount Royal Hotel fire.

Steve Moster, president and chief executive officer, commented, “Our

income before other items of $1.72 per share was up significantly from

the 2017 third quarter driven largely by positive show rotation and

same-show growth at GES, as well as continued strength at Pursuit. While

both GES and Pursuit posted year-over-year increases, Pursuit’s growth

was hampered by forest fires that negatively affected visitation.

Additionally, at GES, sales of shorter lead time projects came in below

our targets for the quarter. Overall, we remain encouraged by the

underlying fundamentals of our businesses and our continued progress

against key strategic goals to enhance shareholder value.”



 

 

 

Q3


2018



 


Q3



2017



 


y-o-y



Change



$ in millions, except per share data





 


 


Revenue




$

358.2


$

339.1


5.6

%

Organic Revenue*





361.5



339.1


6.6

%









 

Net Income Attributable to Viad




$

37.4


$

44.7


-16.3

%

Income Before Other Items*





35.0



27.3


28.5

%

Income Before Other Items per Share*





1.72



1.33


29.3

%









 

Adjusted Segment Operating Income*




$

57.0


$

48.4


17.8

%

Adjusted Segment EBITDA*





73.1



64.1


14.0

%












 



  • Revenue of $358.2 million increased 5.6% ($19.1 million)
    year-over-year, or 6.6% ($22.4 million) on an organic basis (which
    excludes the impact of exchange rate variances).



    • The organic revenue increase primarily reflects positive show
      rotation of $28 million at GES.


    • Exchange rate variances had an unfavorable impact of $3.4 million.




  • Adjusted segment operating income, adjusted segment EBITDA and income
    before other items increased compared to the prior year quarter
    primarily due to the increase in revenue as well as a reduction in
    performance-based incentives.

GES Results

Moster said, “GES delivered solid same-show revenue growth of 5.3% and

strong performance from non-annual events during the third quarter. We

also continued to have success leveraging our full suite of services,

including audio-visual production, to win new business in the corporate

event space. However, as a result of lower than expected short-term

bookings, overall revenue growth was below our expectations. Looking

ahead, we remain committed to our strategic goals aimed at expanding in

higher-margin areas of the live events market and we are optimistic

about our future growth prospects.”





 

 

 

Q3


2018



 

Q3


2017



 


y-o-y



Change



$ in millions





 


 


Revenue




$

246.1



$

232.1



6.0

%

U.S. Organic Revenue*





191.7




184.8



3.8

%

International Organic Revenue*





57.6




54.0



6.5

%









 

Adjusted Segment Operating Income (Loss)*




$

1.2



$

(5.5

)


**

Adjusted Segment Operating Margin*





0.5

%



-2.4

%


290 bps









 

Adjusted Segment EBITDA*




$

10.6



$

3.9



**

Adjusted Segment EBITDA Margin*





4.3

%



1.7

%


260 bps













 


Key Performance Indicators:

U.S. Base Same-Show Revenue Growth(1)

 

 

 

 

 

 


5.3

%

U.S. Show Rotation Revenue Change (approx.)(2)







$

19


International Show Rotation Revenue Change (approx.)(2)







$

9



** Change is greater than 100%.



(1)

 

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 29.1% of GES’ U.S. organic revenue
during the 2018 third quarter.

(2)


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.



 



  • GES revenue of $246.1 million increased 6.0% ($14.0 million)
    year-over-year. On an organic basis, which excludes the impact of
    exchange rate variances, revenue increased 6.3% ($14.7 million).



    • U.S. organic revenue increased 3.8% ($6.9 million) primarily due
      to positive show rotation of approximately $19 million and base
      same-show growth of 5.3%, partially offset by nonrecurring
      business produced in the 2017 third quarter.


    • International organic revenue increased 6.5% ($3.5 million)
      primarily due to positive show rotation of approximately $9
      million, partially offset by nonrecurring business produced in the
      2017 third quarter.




  • GES adjusted segment operating income of $1.2 million* increased $6.7
    million year-over-year, and $6.7 million on an organic basis.



    • U.S. organic adjusted segment operating income increased by $5.0
      million to $2.3 million* primarily due to a reduction in
      performance-based incentives and the increase in revenue.


    • International organic adjusted segment operating results improved
      by $1.8 million to a loss of $1.1 million* primarily due to a
      reduction in performance-based incentives and the increase in
      revenue.



Pursuit Results

Moster said, “Pursuit delivered third quarter organic revenue growth of

7.3% despite forest fires that affected tourism in Banff, Jasper and

Glacier National Parks. Poor air quality and visibility due to smoke

resulted in lower year-on-year passenger volumes at our attractions and

reduced occupancy at certain hospitality properties near Glacier

National Park. However, our team did a great job with revenue management

efforts to capture higher same-store revenue per passenger and RevPAR.

Looking ahead, we are very excited about the many organic growth

projects that are in progress and expected to open in 2019. We remain

committed to driving unforgettable and inspiring guest experiences

across all of our iconic destinations.”



 

 

 

Q3


2018



 

Q3


2017



 

y-o-y


Change




$ in millions







 


 


Revenue




$

112.1



$

107.0



4.7

%

Organic Revenue*





114.7




107.0



7.3

%









 

Adjusted Segment Operating Income*




$

55.8



$

53.9



3.6

%

Adjusted Segment Operating Margin*





49.8

%



50.4

%



(60) bps











 

Adjusted Segment EBITDA*




$

62.5



$

60.2



3.7

%

Adjusted Segment EBITDA Margin*





55.8

%



56.3

%



(50) bps











 

Key Performance Indicators:









Same-Store RevPAR(1)




$

203



$

198



2.5

%

Same-Store Room Nights Available(1)





107,696




108,015



-0.3

%

Same-Store Passengers(2)





1,333,204




1,361,934



-2.1

%

Same-Store Revenue per Passenger(2)




$

45



$

42



7.1

%














 



(1)



 

Same-store RevPAR is calculated as total rooms revenue divided by
the total number of room nights available for all comparable Pursuit
properties during the periods presented, expressed on a constant
currency basis. Comparable properties are defined as those owned by
Viad and operating for the entirety of both periods. Accordingly,
the measures shown above do not include the Mount Royal Hotel, which
was closed during 2017 due to fire damage.

(2)


Same-store revenue per passenger is calculated as total attractions
revenue divided by the total number of passengers for all comparable
Pursuit attractions, expressed on a constant currency basis.
Comparable attractions are defined as those owned by Viad for the
entirety of both periods.



 



  • Pursuit revenue of $112.1 million increased 4.7% ($5.1 million)
    year-over-year. On an organic basis, which excludes the impact of
    exchange rate variances, revenue increased 7.3% ($7.8 million)
    primarily driven by the re-opening of the Mount Royal Hotel, combined
    with our revenue management efforts across our attractions and
    hospitality properties.


  • Pursuit adjusted segment operating income of $55.8 million* increased
    3.6% ($1.9 million). Organic adjusted segment operating income of
    $57.3 million* increased $3.4 million primarily due to the increase in
    revenue.

Cash Flow / Capital Structure



  • Our cash flow from operations was $70.2 million for the 2018 third
    quarter.


  • Our capital expenditures for the quarter totaled $21.5 million,
    comprised of $15.8 million for Pursuit, and $5.7 million for GES.


  • Our return of capital totaled $2.0 million for the quarter (which
    represented quarterly dividend of $0.10 per share). Viad had 265,449
    shares remaining under its current repurchase authorization at
    September 30, 2018.


  • Our debt payments (net) totaled $40.5 million for the quarter.


  • Our cash and cash equivalents totaled $55.5 million, our debt totaled
    $200.8 million and our debt-to-capital ratio was 29.6% at September
    30, 2018.


  • On October 24, 2018, we amended and restated our credit agreement to
    provide additional debt capacity through 2023. The amendment replaced
    our $175 million revolving credit facility, $125 million term loan and
    $100 million accordion feature with an expanded $450 million revolving
    credit facility and $250 million accordion feature.

Business Outlook

Our guidance is subject to change as a variety of factors, identified in

the safe harbor language at the end of this press release, can affect

actual results.

We have provided the following forward-looking non-GAAP financial

measures: Adjusted Segment EBITDA, Adjusted Segment Operating Income and

Income Before Other Items. We do not provide quantitative

reconciliations of these forward-looking non-GAAP financial measures to

their most directly comparable GAAP financial measures because, due to

variability and difficulty in developing accurate projections and/or

certain information not being ascertainable or accessible, not all of

the information necessary to do so is available to us without

unreasonable effort. Consequently, any attempt to disclose such

reconciliations would imply a degree of precision that could be

confusing or misleading to investors. It is probable that our

forward-looking non-GAAP financial measures may be materially different

from the corresponding GAAP financial measures.

2018 Full Year Guidance

Moster said, “We continue to drive solid performance in key areas like

same show growth and corporate event wins at GES, and same-store growth

at Pursuit. However, revenue challenges in certain areas have caused us

to reduce our full year expectations for 2018. For Pursuit, our revised

outlook reflects the fire impact on our third quarter results, partially

offset by cost-reduction actions during the fourth quarter. For GES, our

revised outlook reflects a lower level of short-term booking revenue,

which is based on our third quarter experience and our current sales

pipelines for the fourth quarter, as well as a reduction in

performance-based incentives. I remain encouraged by the progress we are

making against our strategic growth goals for both GES and Pursuit and

the positive results we are seeing in key areas. We also have an active

acquisition pipeline, in addition to many organic projects in progress

that will bolster Pursuit’s growth during 2019 and beyond.”



  • We expect consolidated revenue to decrease at a low single-digit rate
    from 2017 full year revenue, driven primarily by negative show
    rotation of $35 million to $40 million at GES, partially offset by
    continued growth in the underlying business.


  • We expect consolidated adjusted segment EBITDA to be in the range of
    $146.5 million to $150.5 million, as compared to $154.2 million* in
    2017. This guidance range reflects a reduction from our prior guidance
    of $154.5 million to $158.5 million primarily due to lower short-term
    booking revenue at GES, as well as the impact of fires on Pursuit’s
    peak operating season.


  • Our guidance assumes that exchange rates during the rest of 2018 will
    approximate $0.77 U.S. Dollars per Canadian Dollar and $1.30 U.S.
    Dollars per British Pound. As compared to 2017, we expect exchange
    rate variances to impact 2018 full year results as follows:


 

 

 

 

 

 

 

 

 

 

 


 

 

 

Viad Total

 

GES

 

Pursuit
















$ in millions, except per share data












Revenue




$

7.0


 

$

8.5

 

$

(1.5

)












Adjusted Segment Operating Income




$

(1.5

)


$

-


$

(1.5

)












Income per Share Before Other Items




$

(0.05

)


























 



  • The outlook for our business units is as follows:


 

 

 

 

 

 

 

 

 


 

 

 

GES

 

Pursuit










$ in millions





 











Revenue




Down low-single digits


(from $1,133 in 2017)




Up mid- to high-single digits


(from $174 in 2017)












Adjusted Segment EBITDA




$78.5 to $81.5 (vs. $88.2* in 2017)


$67.5 to $69.5 (vs. $66.0* in 2017)










Depreciation & Amortization




$38 to $39


$18.5 to $19.5










Adjusted Operating Income




$40 to $43 (vs. $50.9* in 2017)


$48.5 to $50.5 (vs. $48.4* in 2017)










Capital Expenditures




$28 to $31



$59 to $62



(inclusive of $19 for the Mount Royal Hotel and $10 for FlyOver
Iceland)


















 



  • We expect GES show rotation to have a net negative impact on full year
    revenue of $35 million to $40 million versus 2017. Show rotation
    refers to shows that occur less frequently than annually, as well as
    annual shows that shift quarters from one year to the next.


 

 

 

 

 

 

 

 


 

 

 

Q1 Act.

 

Q2 Act.

 

Q3 Act.

 

Q4 Est.

 

FY Est.









Show Rotation Revenue ($ in millions)




$(56)

 

$(15)

 

$28

 

$5

 


$(35) to $(40)




  • We expect GES U.S. base same-show revenue to increase at
    a low single digit rate.


  • During the 2017 third quarter, GES adjusted segment EBITDA and
    adjusted segment operating income included income of $2.8 million
    related to a contract settlement, which will not recur in 2018.


  • We expect Pursuit revenue to be favorably impacted by approximately
    $4.5 million from the re-opening of the Mount Royal Hotel in July
    2018, as well as continued focus on revenue management and refresh
    efforts across our attraction and hospitality portfolio.


  • We expect start-up costs related to the development of Pursuit’s
    FlyOver Iceland attraction, which is expected to open in 2019, to
    approximate $1 million during 2018 ($0.8 million of which was incurred
    during the first nine months of 2018). These costs are not included in
    the adjusted segment EBITDA or adjusted segment operating income
    guidance ranges above.


  • Our capital expenditure guidance for Pursuit includes approximately
    $19 million invested to complete the restoration and renovation of the
    Mount Royal Hotel and approximately $10 million for the development of
    the FlyOver Iceland attraction. The Mount Royal Hotel expenditures
    were funded primarily by the property insurance proceeds received
    during 2017. The FlyOver Iceland expenditures are being funded
    primarily out of our 2017 capital contribution relating to the FlyOver
    Iceland attraction.


  • We expect corporate activities expense to approximate $10 million to
    $11 million, inclusive of $0.4 million of acquisition-related costs
    incurred during the nine months ended September 30, 2018.


  • We expect our effective tax rate on income before other items to
    approximate 29%, which is based on our current best estimates
    regarding the impact of Tax Reform. The higher rate relative to the
    21% U.S. federal corporate tax rate is due to our foreign earnings in
    higher rate jurisdictions, the increase in non-deductible expenses,
    and an increase in our effective state tax rate.

2018 Fourth Quarter Guidance



 

 

 

2018 Guidance





2017

 

Low End

 


 



 


High End



 

FX Impact(1)





$ in millions, except per share data

Revenue:





 


 


 


 


GES





$




263.0





$




267.0





to



$




277.0






$




(1.0




)



Pursuit





14.3



14.5



to



16.5




(0.5

)

Adjusted Operating Income(Loss):













GES





$2.3*





$




9.0





to



$




12.0





$

-


Pursuit




(5.5)*



(6.0

)


to



(4.0

)



-














 

Income (Loss) per Share Before Other Items





$(0.26)*





$




(0.11




)




to



$




0.04





$

-




















 


(1)

 

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.



  • We expect GES fourth quarter revenue to increase primarily due to
    positive show rotation revenue of approximately $5 million. We expect
    the growth in GES operating income to be driven by lower expenses,
    including performance-based incentives, as well as the increase in
    revenue.


  • We expect Pursuit fourth quarter results to increase primarily due to
    the re-opening of the Mount Royal Hotel and continued focus on revenue
    management and refresh efforts across our attraction and hospitality
    portfolio.

Conference Call and Web Cast

We will hold a conference call with investors and analysts for a review

of third quarter 2018 results on Thursday, October 25, 2018 at 5:00 p.m.

(ET). To join the live conference, call (877) 917-8933, 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) 396-6279 (no

passcode required) or visit the Viad Web site and link to a replay of

the webcast.

About Viad

Viad (NYSE: VVI) generates revenue and shareholder value through two

business units: GES and Pursuit. GES is a global, full-service live

events company offering a comprehensive range of services to the world's

leading brands and event organizers. Pursuit is a collection of

inspiring and unforgettable travel experiences in Alaska, Glacier

National Park, Banff, Jasper and Vancouver that includes attractions,

lodges and hotels, and sightseeing tours that connect guests with iconic

places. Viad is an S&P SmallCap 600 company. For more information, visit www.viad.com.

Forward-Looking Statements

This press release contains a number of forward-looking statements.

Words, and variations of words, such as “will,” “may,” “expect,”

“would,” “could,” “might,” “intend,” “plan,” “believe,” “estimate,”

“anticipate,” “deliver,” “seek,” “aim,” “potential,” “target,”

“outlook,” and similar expressions are intended to identify our

forward-looking statements. Similarly, statements that describe our

business strategy, outlook, objectives, plans, intentions or goals also

are forward-looking statements. These forward-looking statements are not

historical facts and are subject to a host of risks and uncertainties,

many of which are beyond our control, which could cause actual results

to differ materially from those in the forward-looking statements.

Important factors that could cause actual results to differ materially

from those described in our forward-looking statements include, but are

not limited to, the following:



  • our ability to successfully integrate and achieve established
    financial and strategic goals from acquisitions;


  • our dependence on large exhibition event clients;


  • the importance of key members of our account teams to our business
    relationships;


  • the competitive nature of the industries in which we operate;


  • travel industry disruptions;


  • transportation disruptions and increases in transportation costs;


  • seasonality of our businesses;


  • terrorist attacks, natural disasters and other catastrophic events;


  • fluctuations in general economic conditions;


  • the impact of recent U.S. tax legislation;


  • our exposure to currency exchange rate fluctuations;


  • our multi-employer pension plan funding obligations;


  • our exposure to labor cost increases and work stoppages related to
    unionized employees;


  • our exposure to cybersecurity attacks and threats;


  • compliance with laws governing the collection, storage, handling and
    transfer of personal data and our exposure to legal claims and fines
    for data breaches or improper handling of such data;


  • unanticipated delays and cost overruns of our capital projects, and
    our ability to achieve established financial and strategic goals of
    such projects;


  • adverse effects of show rotation on our periodic results and operating
    margins;


  • the effects of the United Kingdom’s exit from the European Union; and


  • liabilities relating to prior and discontinued operations.

For a more complete discussion of the risks and uncertainties that may

affect our business or financial results, please see Item 1A, “Risk

Factors,” of our most recent annual report on Form 10-K filed with the

SEC. We disclaim and do not undertake any obligation to update or revise

any forward-looking statement in this press release except as required

by applicable law or regulation.

* Refer to Table Two of this press release for a discussion and

reconciliation of this non-GAAP financial measure to its most directly

comparable GAAP financial measure.


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)




2018


2017



$ Change





% Change




2018


2017



$ Change




% Change

Revenue:



















GES:



















U.S.




$

191,699



$

184,761



$

6,938



3.8

%


$

636,806



$

684,003



$

(47,197

)


-6.9

%

International





56,890




54,040




2,850



5.3

%



204,505




203,222




1,283



0.6

%

Intersegment eliminations




 

(2,479

)


 

(6,682

)


 

4,203

 


62.9

%


 

(12,173

)


 

(17,126

)


 

4,953

 


28.9

%

Total GES





246,110




232,119




13,991



6.0

%



829,138




870,099




(40,961

)


-4.7

%

Pursuit




 

112,053

 


 

106,980

 


 

5,073

 


4.7

%


 

170,130

 


 

159,581

 


 

10,549

 


6.6

%

Total revenue




$

358,163

 


$

339,099

 


$

19,064

 


5.6

%


$

999,268

 


$

1,029,680

 


$

(30,412

)


-3.0

%





















 

Segment operating income (loss):



















GES:



















U.S.




$

2,287



$

(2,664

)


$

4,951



**


$

21,569



$

40,002



$

(18,433

)


-46.1

%

International




 

(1,127

)


 

(2,858

)


 

1,731

 


60.6

%


 

9,176

 


 

8,524

 


 

652

 


7.6

%

Total GES





1,160




(5,522

)



6,682



**



30,745




48,526




(17,781

)


-36.6

%

Pursuit




 

55,408

 


 

53,860

 


 

1,548

 


2.9

%


 

53,770

 


 

53,523

 


 

247

 


0.5

%

Segment operating income





56,568




48,338




8,230



17.0

%



84,515




102,049




(17,534

)


-17.2

%

Corporate eliminations





18




18




-



0.0

%



51




50




1



2.0

%

Corporate activities (Note A)





(3,777

)



(4,425

)



648



14.6

%



(8,529

)



(9,886

)



1,357



13.7

%

Restructuring charges





(175

)



(255

)



80



31.4

%



(999

)



(817

)



(182

)


-22.3

%

Impairment recoveries (Note B)





-




24,467




(24,467

)


-100.0

%



35




29,098




(29,063

)


-99.9

%

Other expense (Note C)





(527

)



(248

)



(279

)


**



(1,308

)



(922

)



(386

)


-41.9

%

Net interest expense




 

(2,507

)


 

(2,043

)


 

(464

)


-22.7

%


 

(6,793

)


 

(6,107

)


 

(686

)


-11.2

%


Income from continuing operations before







49,600




65,852




(16,252

)


-24.7

%



66,972




113,465




(46,493

)


-41.0

%


income taxes



































Income tax expense (Note D)




 

(10,806

)


 

(20,010

)


 

9,204

 


46.0

%


 

(15,282

)


 

(32,929

)


 

17,647

 


53.6

%

Income from continuing operations





38,794




45,842




(7,048

)


-15.4

%



51,690




80,536




(28,846

)


-35.8

%

Income (loss) from discontinued operations (Note E)




 

(246

)


 

(101

)


 

(145

)


**


 

403

 


 

(408

)


 

811

 


**

Net income





38,548




45,741




(7,193

)


-15.7

%



52,093




80,128




(28,035

)


-35.0

%

Net income attributable to noncontrolling interest





(1,287

)



(1,084

)



(203

)


-18.7

%



(890

)



(747

)



(143

)


-19.1

%

Net loss attributable to redeemable noncontrolling interest




 

128

 


 

-

 


 

128

 


**


 

289

 


 

-

 


 

289

 


**

Net income attributable to Viad




$

37,389

 


$

44,657

 


$

(7,268

)


-16.3

%


$

51,492

 


$

79,381

 


$

(27,889

)


-35.1

%





















 

Amounts Attributable to Viad Common Stockholders:



















Income from continuing operations




$

37,635



$

44,758



$

(7,123

)


-15.9

%


$

51,089



$

79,789



$

(28,700

)


-36.0

%

Income (loss) from discontinued operations (Note E)




 

(246

)


 

(101

)


 

(145

)


**


 

403

 


 

(408

)


 

811

 


**

Net income




$

37,389

 


$

44,657

 


$

(7,268

)


-16.3

%


$

51,492

 


$

79,381

 


$

(27,889

)


-35.1

%





















 

Diluted income per common share:




















Income from continuing operations






$

1.84



$

2.19



$

(0.35

)


-16.0

%


$

2.49



$

3.91



$

(1.42

)


-36.3

%


attributable to Viad common shareholders




































Income (loss) from discontinued operations






 

(0.01

)


 

-

 


 

(0.01

)


**


 

0.02

 


 

(0.02

)


 

0.04

 


**


attributable to Viad common shareholders


































Net income attributable to Viad common






$

1.83

 


$

2.19

 


$

(0.36

)


-16.4

%


$

2.51

 


$

3.89

 


$

(1.38

)


-35.5

%


shareholders























































 

Basic income per common share:




















Income from continuing operations






$

1.85



$

2.19



$

(0.34

)


-15.5

%


$

2.50



$

3.91



$

(1.41

)


-36.1

%


attributable to Viad common shareholders




































Income (loss) from discontinued operations






 

(0.01

)


 

-

 


 

(0.01

)


**


 

0.02

 


 

(0.02

)


 

0.04

 


**


attributable to Viad common shareholders


































Net income attributable to Viad common






$

1.84

 


$

2.19

 


$

(0.35

)


-16.0

%


$

2.52

 


$

3.89

 


$

(1.37

)


-35.2

%


shareholders (Note F)























































 


Common shares treated as outstanding for






















income per share calculations:





















Weighted-average outstanding common shares




 

20,145

 


 

20,166

 


 

(21

)


-0.1

%


 

20,187

 


 

20,130

 


 

57

 


0.3

%





















 


Weighted-average outstanding and potentially






 

20,387

 


 

20,436

 


 

(49

)


-0.2

%


 

20,427

 


 

20,382

 


 

45

 


0.2

%


dilutive common shares





















** Change is greater than +/- 100 percent







































 

VIAD CORP AND SUBSIDIARIES
TABLE ONE - NOTES TO
QUARTERLY RESULTS

(UNAUDITED)

 





















 

(A)


Corporate Activities — The decrease in corporate activities
expense for the three and nine months ended September 30, 2018
relative to 2017 was primarily due to a decrease in
performance-based compensation expense.























 

(B)

Impairment Recoveries — The impairment recoveries recorded during
the three and nine months ended September 30, 2017 were related to
insurance proceeds received as a partial settlement for fire damage
to our Mount Royal Hotel.





















 

(C)

Other Expense — On January 1, 2018, we adopted ASU 2017-07, which
requires retrospective adoption. As a result, we recorded the
nonservice cost component of net periodic benefit cost within other
expense for the three and nine months ended September 30, 2018, and
we reclassified $0.2 million and $0.9 million from operating
expenses to other expense for the three and nine months ended
September 30, 2017, respectively, to conform to current period
presentation.





















 

(D)

Income Taxes — Income taxes went from an effective rate of 29% for
the nine months ended September 30, 2017 to an effective rate of 23%
for the nine months ended September 30, 2018. The decrease in the
effective rate for 2018 was primarily due to a $3.1 million benefit
related to reductions in our estimated repatriation tax and the
re-measurement of our deferred tax assets, as well as the lower
federal tax rate due to Tax Reform, partially offset by increased
non-deductible expenses, a higher effective state tax rate and our
mix of domestic versus foreign income, which is taxed at higher
rates.





















 

(E)

Income (Loss) from Discontinued Operations — The income from
discontinued operations for the nine months ended September 30, 2018
was primarily related to a favorable legal settlement related to
previously sold operations. The loss from discontinued operations
for the nine months ended September 30, 2017 was primarily related
to legal expenses associated with previously sold operations, offset
in part by a reduction in an uncertain tax position due to the lapse
of statute.





















 

(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)




2018


2017



$ Change




% Change


2018


2017



$ Change




% Change





















 


Net income attributable to Viad




$

37,389



$

44,657



$

(7,268

)


-16.3

%


$

51,492



$

79,381



$

(27,889

)


-35.1

%


Less: Allocation to nonvested shares





(338

)



(539

)



201



37.3

%



(493

)



(993

)



500



50.4

%


 




Adjustment to the redemption value of redeemable






 

(84

)


 

-

 


 

(84

)


**


 

(174

)


 

-

 


 

(174

)


**



noncontrolling interest



































Net income allocated to Viad common






$

36,967

 


$

44,118

 


$

(7,151

)


-16.2

%


$

50,825

 


$

78,388

 


$

(27,563

)


-35.2

%



shareholders























































 


Weighted-average outstanding common shares





20,145




20,166




(21

)


-0.1

%



20,187




20,130




57



0.3

%





















 



Basic income per common share attributable






$

1.84

 


$

2.19

 


$

(0.35

)


-16.0

%


$

2.52

 


$

3.89

 


$

(1.37

)


-35.2

%



to Viad common shareholders























































 


** Change is greater than +/- 100 percent






































 

Contacts

Viad Corp

Sajid Daudi or Carrie Long

Investor

Relations

602-207-2681