Viad Corp’s Earnings Call: Mixed Results with Promising Outlook

Viad Corp ((PRSU)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call of Viad Corp painted a mixed picture, highlighting both achievements and challenges. On the positive side, the company showcased notable financial performance, successful integration of acquisitions, and strong booking pacing for 2025. However, these were tempered by issues such as a net loss, a decline in adjusted EBITDA, challenges at FlyOver Las Vegas, and unfavorable foreign exchange impacts.

Strong Start to Fiscal Year 2025

Viad Corp reported a solid start to fiscal year 2025, with strong financial performance in the first quarter. The company noted robust demand indicators across various markets and reaffirmed its full-year guidance, projecting double-digit growth in both revenue and adjusted EBITDA.

Successful Integration of Acquisitions

The company has made significant progress in integrating three recent tuck-in acquisitions. These integrations are expected to contribute meaningfully to the company’s momentum as it heads into the summer of 2025, bolstering its overall growth strategy.

Financial Stability and Growth Outlook

Viad Corp maintains a strong balance sheet characterized by low leverage and substantial revolver capacity, with total liquidity standing at $212.1 million. The company reaffirmed its guidance for double-digit growth in full-year revenue and adjusted EBITDA, underscoring its financial stability and positive growth outlook.

Attractions Ticket Revenue Growth

The company reported a 6% year-over-year increase in attraction ticket revenue, reaching $19 million. This growth was driven by higher effective ticket prices and an increase in visitor numbers, reflecting the strong demand for Viad Corp’s attractions.

Room Booking Pacing for 2025

Viad Corp’s US lodging properties are pacing approximately 10% ahead of the same time last year, while Canadian properties are up approximately 2% year over year. This positive trend indicates strong future demand in the lodging segment.

Net Loss and Adjusted EBITDA Decline

Despite the positive aspects, Viad Corp reported a net loss attributable to Pursuit Attractions and Hospitality, Inc. of $31.1 million, compared to $25.1 million in the prior year. Additionally, adjusted EBITDA declined by $2.9 million to negative $17.5 million, highlighting areas of concern.

Challenges at FlyOver Las Vegas

FlyOver Las Vegas continues to face challenges, with difficult market conditions impacting its performance. This remains a critical area for Viad Corp to address moving forward.

Impact of Foreign Exchange Rates

Unfavorable foreign exchange rate variances negatively impacted first-quarter revenue by approximately $1.3 million. A $7 million year-over-year headwind is expected due to currency fluctuations, posing a challenge to the company’s financial performance.

Decrease in Lodging Revenue

Lodging room revenue totaled $7.3 million, reflecting a $300,000 decrease compared to 2024. This decline was primarily due to fewer rooms being available at the Forest Park Hotel’s Woodland Wing and the unfavorable impact of foreign exchange rates.

Forward-Looking Guidance

Viad Corp reaffirmed its guidance for double-digit growth in both revenue and adjusted EBITDA for the full year, with an expected adjusted EBITDA range of $98 million to $108 million. Despite challenges such as unfavorable foreign exchange impacts, the company remains optimistic about its growth prospects, supported by strong demand for its attractions and robust room booking pacing.

In summary, Viad Corp’s earnings call highlighted a balanced narrative of achievements and challenges. While the company demonstrated strong financial performance and successful integration of acquisitions, it also faces hurdles such as a net loss and foreign exchange impacts. Nonetheless, the reaffirmation of strong guidance for the year ahead provides a positive outlook for investors.