Pursuit Attractions and Hospitality (PRSU) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 24.5% to $455.7 million, driven by strong GES performance and stable Pursuit results outside Jasper, with net income attributable to shareholders up 17.8% to $48.6 million.

• GES delivered robust revenue and margin growth, while Pursuit's Adjusted EBITDA was near the high end of guidance despite wildfire-related headwinds in Jasper.

• Entered agreement to sell GES for $535 million, expected to close by December 31, 2024, positioning Pursuit as a pure-play, high-growth business.

• Pursuit completed a $15.9 million tuck-in acquisition in Glacier National Park, expanding hospitality offerings.

• Net income attributable to Viad rose 14.6% year-over-year for Q3 and 68.4% for the nine months ended September 30, 2024.

Financial highlights

• Q3 consolidated revenue was $455.7 million, up 24.5% year-over-year; GES revenue surged 52.8% to $273.4 million, Pursuit revenue fell 2.5% due to Jasper wildfires.

• Consolidated Adjusted EBITDA reached $103.1 million, up $16.9 million; adjusted net income improved by $15.5 million to $58.8 million.

• GAAP net income attributable to shareholders was $48.6 million, $7.3 million higher than Q3 2023.

• Diluted EPS grew 17.0% to $1.65; adjusted diluted EPS climbed 34.9% to $2.01.

• Cash flow from operations was $110 million; capital expenditures totaled $15 million in Q3.

Outlook and guidance

• Full-year consolidated adjusted EBITDA expected at $163–$172 million, with GES at $90–$95 million and Pursuit at $87–$92 million.

• Fourth quarter consolidated revenue guidance is $240–$260 million, with adjusted EBITDA between $(9) million and $0.

• Pursuit expects 2025 adjusted EBITDA to exceed $100 million after absorbing $12–$13 million in standalone public company costs.

• Pursuit to focus on scaling hospitality and attractions, with planned capital expenditures of $70–80 million over the next 12 months.