Viad Corp’s Earnings Call Highlights Robust Growth and Strategic Moves

Viad Corp ((PRSU)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for Viad Corp painted a largely positive picture, characterized by significant growth in revenue and adjusted EBITDA. The company’s strategic acquisition in Costa Rica and the raised full-year guidance highlight Pursuit’s robust growth strategy. Despite some non-cash charges impacting net income, the overall sentiment remains optimistic, with a focus on continued expansion and operational enhancements.

Strong Revenue and Growth

Pursuit reported impressive double-digit year-over-year growth in revenue, income from continuing operations, and adjusted EBITDA. For the second quarter, revenue reached $116.7 million, marking a 15% increase from the previous year. This growth was driven by a rise in visitors and effective ticket pricing strategies.

Successful Acquisition

The acquisition of Tabacon Thermal Resort & Spa in Costa Rica marks a strategic move to enhance geographic and seasonal diversification. This acquisition is anticipated to reduce the adjusted EBITDA multiple below 9x by the third year through operational enhancements, strengthening Pursuit’s market position.

Raised Full-Year Guidance

Pursuit has raised its full-year guidance for 2025, now projecting adjusted EBITDA between $108 million and $118 million, an increase of $10 million from previous expectations. This adjustment reflects the company’s confidence in its growth trajectory.

Successful Growth Strategy

The Refresh, Build, Buy strategy continues to yield significant returns, with plans for over $200 million in organic growth projects over the next five years. This strategy has been instrumental in driving Pursuit’s expansion and market presence.

Strong Attractions Performance

Attraction ticket revenue saw a 22% increase year-over-year, accompanied by a 50% rise in adjusted EBITDA. This performance was fueled by higher effective ticket prices and an increase in visitor numbers, showcasing the strength of Pursuit’s attractions segment.

Non-Cash Charge Impact

A largely non-cash pretax charge of approximately $5.4 million was recorded due to a legacy pension termination, aimed at improving long-term financial flexibility. While this impacted net income, it is a strategic move for future financial health.

Lower Net Income

Net income attributable to Pursuit was reported at $5.6 million, a decrease from $29.3 million in the previous year. This decline is primarily attributed to the sale of GES in 2024, impacting the current financial results.

Forward-Looking Guidance

During the earnings call, Pursuit announced robust performance with double-digit growth in revenue and adjusted EBITDA, driven by increased visitors and revenue per visitor. The company raised its full-year guidance, anticipating continued strong demand and positive indicators across its business. The strategic acquisition in Costa Rica is expected to bolster its global footprint and unlock long-term growth opportunities. Additionally, a share repurchase authorization for up to $50 million reflects confidence in its growth trajectory.

In summary, the earnings call for Viad Corp highlighted a positive outlook with significant growth in key financial metrics. The strategic acquisition and raised guidance underscore Pursuit’s commitment to expansion and operational excellence. Despite some challenges, the overall sentiment remains optimistic, with a focus on leveraging strategic initiatives for sustained growth.