Pursuit Attractions and Hospitality (PRSU) Q2 2024 earnings summary

Executive summary

• Q2 2024 results exceeded prior guidance, with strong performance and demand in both GES and Pursuit segments; GES's adjusted EBITDA and margin growth led to a raised full-year outlook, while Pursuit's growth was tempered by uncertainty from Jasper wildfires.

• 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 both segments.

• Jasper National Park wildfires in July 2024 led to park closures, limited property loss for Pursuit, and ongoing uncertainty for the full-year outlook.

Financial highlights

• Q2 2024 consolidated revenue increased $58.2 million (18.2% year-over-year) to $378.5 million; adjusted EBITDA grew by $21.5 million to $64.3 million; net income attributable to Viad rose to $29.3 million.

• Pursuit Q2 revenue grew 14.4% to $101.2 million, with adjusted EBITDA up $4.2 million to $23.7 million, driven by a 15% increase in visitors and higher ticket prices.

• GES Q2 revenue increased 19.6% to $277.3 million, with adjusted EBITDA up $17.6 million to $44.4 million; Spiro revenue up 47%, GES Exhibitions up 16%.

• Diluted EPS was $0.97, up from $0.64; adjusted diluted EPS was $0.97, up from $0.61.

• Ended Q2 with $490.9 million in debt, $49.0 million in cash, and total liquidity of $128.4 million.

Outlook and guidance

• Consolidated full-year 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.

• Pursuit full-year adjusted EBITDA guidance reduced to $80–$100 million due to wildfire impacts; assumes Jasper reopens by September 3, 2024.

• Management expects existing liquidity sources to be sufficient for at least the next 12 months, with $60–$70 million in planned capital expenditures.

• Guidance for Pursuit remains highly uncertain and subject to wildfire developments and reopening timelines.