Viad Corp (VVI) is a premier global provider of unforgettable experiences, renowned for its innovative approach to attractions, hospitality, and experiential marketing. Founded in 1926 and headquartered in Scottsdale, Arizona, the company has evolved into a leader in the travel and leisure industry, with a focus on delivering world-class destinations and services through its flagship Pursuit business. Pursuit operates iconic attractions, distinctive lodges, and integrated hospitality services across breathtaking locations in the United States, Canada, and Iceland.
As Viad transitions to a pure-play attractions and hospitality company, its commitment to exceptional guest experiences remains at the forefront. The company’s strategic focus on its “Refresh, Build, Buy” growth strategy drives its mission to create inspiring destinations that connect travelers to some of the world’s most stunning natural landscapes. With a legacy of innovation, a robust portfolio of high-margin properties, and a clear vision for the future, Viad continues to set the standard for excellence in the travel and hospitality industry.
Exceptional Q3 2024 Performance Highlights Momentum
Viad Corp’s Q3 2024 results underscore its operational strength and strategic progress. The company reported a 24.5% increase in revenue year-over-year, reaching $455.7 million. This growth was fueled by strong contributions from both Pursuit and GES. Pursuit’s revenue reached $182.3 million despite the temporary impact of wildfires in Jasper, which reduced visitation. Excluding Jasper, Pursuit’s revenue grew by an impressive 13.1%, driven by strong demand for its curated experiences. Meanwhile, GES delivered outstanding results, with a 52.8% revenue increase to $273.4 million, attributed to the successful execution of major non-annual events.
Net income attributable to Viad rose by 17.8% to $48.6 million, reflecting disciplined cost management and improved efficiencies. Adjusted diluted earnings per share increased by 34.9% to $2.01, showcasing the company’s ability to drive profitability while executing its strategic initiatives. Consolidated Adjusted EBITDA for the quarter rose 19.6% year-over-year to $103.1 million, reinforcing Viad’s financial health and operational capabilities.
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Pursuit: A High-Margin, High-Growth Business
Pursuit is at the core of Viad’s transformation, representing a collection of iconic attractions, lodges, and hospitality experiences across the United States, Canada, and Iceland. With a strategic focus on delivering unforgettable experiences in breathtaking locations, Pursuit continues to capitalize on growing consumer demand for unique travel opportunities. In Q3 2024, Pursuit expanded its Glacier Park Collection with the acquisition of Eddie’s Café & Mercantile and the newly constructed Apgar Lookout Retreat. This acquisition complements Pursuit’s existing Apgar Village Lodge near Lake McDonald in Glacier National Park, enhancing its portfolio of high-end accommodations.
Despite challenges posed by the Jasper wildfires, Pursuit demonstrated resilience and growth in unaffected geographies. Its “Refresh, Build, Buy” strategy is focused on enhancing existing assets, developing new properties, and acquiring complementary experiences, all of which contribute to sustainable long-term growth.
Strategic Exit from GES Unlocks Value
Viad’s planned sale of GES for $535 million, expected to close by the end of 2024, marks a pivotal moment in its transformation. While GES performed exceptionally well in Q3 2024, contributing $273.4 million in revenue and $20.2 million in Adjusted EBITDA, the divestiture aligns with Viad’s strategy to concentrate on high-margin opportunities in Pursuit. The proceeds from this transaction will provide Viad with financial flexibility to accelerate growth initiatives within its core attractions and hospitality business. This shift is expected to result in a leaner, more focused organization poised for sustained profitability.
Financial Resilience and Outlook
Viad’s financial position remains robust, supported by a net leverage ratio of 1.7x and liquidity of $228.8 million as of Q3 2024. The company generated $110 million in cash flow from operations during the quarter, underscoring its ability to fund strategic investments. For fiscal 2024, Viad projects consolidated Adjusted EBITDA in the range of $163 million to $172 million, reflecting strong underlying performance across its businesses. Pursuit’s Adjusted EBITDA guidance stands at $87 million to $92 million, highlighting its ability to drive growth despite external challenges.
A Bright Future in the Hospitality and Attractions Market
Viad Corp is strategically positioned to thrive in the expanding global travel and leisure market. The company’s decision to focus exclusively on Pursuit aligns with shifting consumer preferences toward unique, high-quality travel experiences. By leveraging its expertise in iconic destinations and premium hospitality, Viad is well-equipped to capture a growing share of this lucrative market.
Pursuit’s portfolio of world-class attractions and accommodations, combined with its proven ability to execute its growth strategy, provides a solid foundation for long-term success. Additionally, the planned rebranding of Viad to Pursuit by the end of 2024 reflects its commitment to this new direction, signaling a clear focus on delivering exceptional value to guests and shareholders alike.
Conclusion: A Transformative Opportunity for Growth
Viad Corp’s transformation into a pure-play attractions and hospitality company is a compelling growth story. The combination of strong financial performance, strategic acquisitions, and a sharpened focus on Pursuit positions Viad for sustained success. With the sale of GES nearing completion and the company’s dedication to creating unforgettable travel experiences, Viad offers a unique investment opportunity in the thriving hospitality and attractions market. For investors seeking exposure to a dynamic, high-margin business with significant growth potential, Viad Corp stands out as a leader poised for long-term value creation.
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