Pursuit Attractions and Hospitality (PRSU) Q2 2024 earnings summary

Executive summary

• Q2 2024 results exceeded prior guidance, with strong performance and margin improvement in both GES and Pursuit segments; GES benefited from robust show performance and client spend, while Pursuit saw increased guest demand, though Jasper wildfires introduce uncertainty for the full-year outlook.

• Revenue for Q2 2024 rose 18.2% year-over-year to $378.5 million, with net income attributable to Viad increasing by $18.4 million to $29.3 million, driven by strong performance in both GES and Pursuit.

• For the first half of 2024, revenue increased 12.2% to $652.0 million, and net income attributable to Viad improved by $14.1 million to $4.2 million, reflecting higher segment operating income at GES and offset by higher costs at Pursuit.

• Jasper wildfires in July 2024 led to the closure of Jasper National Park, with limited property losses for Pursuit, notably Maligne Canyon Wilderness Kitchen; the full financial impact is under assessment.

Financial highlights

• Q2 2024 consolidated revenue was $378.5 million, up 18.2% year-over-year; Pursuit revenue up 14.4% to $101.2 million, GES revenue up 19.6% to $277.3 million.

• Adjusted EBITDA grew by $21.5 million to $64.3 million; Pursuit adjusted EBITDA up $4.2 million to $23.7 million; GES adjusted EBITDA up $17.6 million to $44.4 million.

• Net income attributable to Viad increased to $29.3 million from $18.4 million in Q2 2023; adjusted net income was $29.2 million.

• Adjusted diluted EPS was $0.97, up from $0.36 in Q2 2023.

• Cash flow from operations was an inflow of about $20 million; capital expenditures totaled $17 million, with $14.4 million for Pursuit and $2.7 million for GES.

Outlook and guidance

• Full-year consolidated adjusted EBITDA guidance raised to $151–$176 million, above 2023's $147 million.

• GES full-year adjusted EBITDA guidance raised to $85–$95 million, up from $68.2 million in 2023; revenue expected to grow low double digits.

• Pursuit full-year adjusted EBITDA guidance reduced to $80–$100 million due to wildfire impacts, compared to $92.6 million in 2023; revenue expected in line with prior year.

• Guidance for Pursuit assumes Jasper National Park reopens September 3, 2024, but remains subject to wildfire developments.

• Management expects existing liquidity sources to be sufficient for at least the next 12 months and plans $60–$70 million in capital expenditures, including $20 million for growth projects.