Viad Corp Reports Results for the 2021 Fourth Quarter and Full Year

• Delivers significant improvement in full year results with continued recovery at both Pursuit and GES
• Pursuit fourth quarter revenue exceeds pre-COVID levels driven by new attractions
• GES fourth quarter revenue increases 38% on sequential quarter basis

Viad Corp (NYSE: VVI), a leading provider of experiential leisure travel and live events and marketing experiences, today reported financial results for the 2021 fourth quarter and full year.

Steve Moster, president and chief executive officer, commented, “Both Pursuit and GES finished 2021 with solid fourth quarter results. Pursuit revenue exceeded pre-COVID levels during the quarter primarily driven by our new world-class attractions that opened this year, and GES’ fourth quarter revenue grew 38% on a sequential quarter basis.”

Fourth Quarter and Full Year 2021 Results

Fourth quarter revenue was $183.6 million, up from $27.9 million in the 2020 fourth quarter. Fourth quarter net loss attributable to Viad improved to a net loss of $22.5 million and our consolidated adjusted EBITDA* improved to negative $3.8 million, as compared to a net loss of $50.5 million and negative adjusted EBITDA* of $32.8 million in the 2020 fourth quarter.

Full year revenue was $507.3 million, up from $415.4 million in 2020. Full year net loss attributable to Viad improved to $92.7 million and our consolidated adjusted EBITDA* improved to positive $1.3 million, as compared to a net loss of $374.1 million and negative adjusted EBITDA* of $56.8 million in 2020.

These improvements relative to the prior year primarily reflect accelerating activity in leisure travel and in-person events as the world emerges from COVID lock-downs and finds safe ways to travel and convene.

* Refer to Table 2 of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

Moster commented, “With a strong rebound in leisure travel, the return of in-person events, and great execution by our teams, the company delivered positive adjusted EBITDA for the 2021 full year. We are very pleased with the actions we have taken to invest in new high-margin experiences at Pursuit, transform GES’ cost structure, and increase our financial flexibility to support our growth initiatives. We are well-positioned for continued improvement in profitability as our industries continue to recover.”

Regarding Pursuit, Moster commented, “At Pursuit, our seasonally slow fourth quarter revenue of $23.4 million exceeded the amount generated in the pre-pandemic 2019 fourth quarter primarily due to our new attractions that opened this year, which contributed approximately $5 million in incremental revenue during the quarter. For the full year, Pursuit revenue of $187 million reached approximately 84% of the amount generated in 2019, reflecting $15.6 million of incremental revenue from our new experiences and strong leisure travel demand. Pursuit’s full year adjusted EBITDA of $42.7 million increased by $52.4 million year-over-year. We saw exceptionally strong visitation during peak season this year at our Glacier and Alaska experiences, and we expect that to continue into 2022, combined with improved visitation across our Canadian experiences with the border now open. Our three new high-margin attractions will have a full season of operations in 2022, and we will welcome the opening of our new 88-room hotel in Jasper ahead of this peak season.”

Regarding GES, Moster commented, “At GES, our fourth quarter revenue of $160.2 million increased 38% from the third quarter and reached 57% of the amount generated in the 2019 fourth quarter. GES’ fourth quarter adjusted EBITDA increased $32.5 million year-over-year and achieved a more than 20% flow-through on incremental year-over-year revenue. We are very pleased with the transformational changes we made to significantly improve our cost structure and how our team worked closely to manage our variable costs against the event activity during the quarter. As we head into 2022, we look forward to continuing to produce extraordinary live events, partnering with new Brand Experiences clients, and utilizing our low-cost model to maximize profitability.”

Cash Flow and Balance Sheet Highlights

Our 2021 fourth quarter cash flow from operations was an outflow of approximately $35 million, our capital expenditures totaled approximately $13 million, and we paid approximately $2 million in cash dividends on our convertible preferred equity and a $1 million principal payment on our Term Loan B.

At December 31, 2021, our cash and cash equivalents were approximately $62 million and we had approximately $87 million of capacity available on our revolving credit facility ($100 million total facility size, less approximately $13 million in letters of credit). Our debt totaled approximately $474 million, including $399 million outstanding on our Term Loan B, financing lease obligations of approximately $63 million (which primarily comprises real estate leases at Pursuit), and approximately $12 million in other debt.

Moster commented, “Our teams have done and continue to do a fantastic job responding to the challenges of the COVID pandemic to maintain a solid liquidity position while also making investments to continue Pursuit’s growth journey. We are excited about the investments we made to open three new Pursuit attractions during 2021 that will deliver incremental cash flow and help propel us back to an accelerated growth trajectory. Additionally, our new 88-room hotel in Jasper is on track to open ahead of this peak tourism season in the early-summer. We continue to actively pursue other compelling investments, including new FlyOver locations and acquisitions in iconic locations.”

2022 Outlook

Moster said, “Having finished 2021 on much stronger footing than we started, we have much reason to be excited about the year ahead. At this time last year, the live event industry was still largely shut down and the Canadian border was closed to international travel, and that remained the case until the 2021 third quarter. Fast forward to today, and major live events are taking place around the world and Canada is welcoming international visitors. We have three new Pursuit experiences online and a fourth set to open this summer. GES is successfully servicing clients with its new lower-cost model and businesses are gradually lifting corporate travel restrictions as vaccines and mitigation efforts are proving effective.”

Moster continued, “Without question we are still operating in a very dynamic environment, and our teams have demonstrated their ability to anticipate challenges and respond very well. Although the Omicron variant is resulting in some near-term disruption to first quarter activity, we expect to deliver significant growth in full year 2022 revenue and adjusted EBITDA at both Pursuit and GES.”

Full Year 2022

We expect Pursuit’s full year 2022 adjusted EBITDA to be near or above pre-pandemic levels with several new experiences online and improvements in long-haul international travel.

We expect GES’ full year 2022 adjusted EBITDA to be above breakeven with the acceleration of live event activity as we move past the near-term disruption to first quarter events caused by the Omicron variant.

First Quarter 2022

We expect Pursuit’s first quarter 2022 revenue to be approximately double the revenue generated in the 2019 first quarter, with a higher seasonal adjusted EBITDA loss. Revenue from new experiences is anticipated to more than offset lower international visitation to the Banff area during this seasonally slow period.

We expect GES’ first quarter 2022 revenue to be approximately 50% lower than the revenue generated in the 2019 first quarter, with a flow-through on the revenue decline of about 20% to adjusted EBITDA versus the 2019 quarter. GES’s revenue during the early part of the first quarter is being impacted by Omicron. We are preparing for an acceleration of event activity beginning in March.

These expectations are subject to the impact of COVID, including the Omicron variant.

Conference Call Details

To join the live conference call, please register at least 10 minutes before the start of the call using the following link: https://www.incommglobalevents.com/registration/q4inc/9713/viad-corp-fourth-quarter-2021-earnings-call/. After registering, an email confirmation will be sent that includes dial-in information as well as unique codes for entry into the live call. Registration will be open throughout the call. However, we recommend that you register a day in advance to ensure access for the full call.

A live audio webcast of the call will also be available in listen-only mode through the "Investors" section of our website. A replay of the webcast will be available on our website shortly after the call and, for a limited time, by calling (866) 813-9403 or (929) 458-6194 and entering the conference ID 511621.

About Viad

Viad (NYSE: VVI) is a leading provider of experiential leisure travel and live events and marketing experiences that generates revenue and shareholder value through two businesses: Pursuit and GES. Pursuit is a collection of inspiring and unforgettable travel experiences in Alaska, Montana, the Canadian Rockies, Vancouver, Reykjavik, and Las Vegas, as well as a new experience planned in Toronto. Pursuit’s collection includes attractions, lodges and hotels, and sightseeing tours that connect guests with iconic places. GES is a global, full-service live events company offering a comprehensive range of services to the world's leading brands and event organizers. Our business strategy focuses on providing superior experiential services to our customers and sustainable returns on invested capital to our shareholders. 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:

• the impact of the COVID-19 pandemic on our financial condition, liquidity, and cash flow;
• our ability to anticipate and adjust for the impact of the COVID-19 pandemic on our businesses;
• general economic uncertainty in key global markets and a worsening of global economic conditions;
• travel industry disruptions;
• 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;
• unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals for such projects;
• seasonality of our businesses;
• transportation disruptions and increases in transportation costs;
• natural disasters, weather conditions, and other catastrophic events;
• our multi-employer pension plan funding obligations;
• our exposure to labor cost increases and work stoppages related to unionized employees;
• liabilities relating to prior and discontinued operations;
• adverse effects of show rotation on our periodic results and operating margins;
• our exposure to currency exchange rate fluctuations;
• our exposure to cybersecurity attacks and threats;
• compliance with laws governing the storage, collection, handling, and transfer of personal data and our exposure to legal claims and fines for data breaches or improper handling of such data; and
• changes affecting the London Inter-bank Offered Rate.

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 and our most recent quarterly report on Form 10-Q 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.

Forward-Looking Non-GAAP Measures

The company has not quantitatively reconciled its guidance for adjusted EBITDA to its respective most comparable GAAP measure because certain reconciling items that impact this metric including, provision for income taxes, interest expense, restructuring or impairment charges, acquisition-related costs, and attraction start-up costs have not occurred, are out of the company’s control, or cannot be reasonably predicted. Accordingly, reconciliations to the nearest GAAP financial measure are not available without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the company’s results as reported under GAAP.