Viad Corp. (VVI) Tops Q3 EPS by 59c, Revenues Miss
Viad Corp. (NYSE: VVI) reported Q3 EPS of ($0.81), $0.59 better than the analyst estimate of ($1.40). Revenue for the quarter came in at $63.1 million versus the consensus estimate of $64.8 million.
Steve Moster, president and chief executive officer, commented, “I am very proud of how our team has responded to the challenges presented by the COVID-19 pandemic, and I am pleased with our performance during a very difficult third quarter. We kept a keen focus on cash and finished the quarter with a strong liquidity position that will enable us to withstand the pandemic and position our businesses for greater success on the other side.”
Regarding Pursuit, Moster commented, “We had a successful third quarter across Pursuit, with improving revenue trends. Each of our geographies successfully re-opened and delivered positive EBITDA during the quarter. Despite ongoing border closures and other restrictions, we saw Pursuit-wide revenue rise to about 40% of the prior year levels during August and September driven by strong demand from our domestic long haul, local and regional markets. Remarkably, some Pursuit experiences posted year-over-year growth in the quarter. Occupancy across Pursuit was 60% with select properties seeing higher average daily rates and RevPAR than 2019. These results demonstrate the resiliency of our business model, the strength of our Refresh, Build, Buy strategy, the value of iconic, inspiring and unforgettable experiences, and the determination of our team to prevail in the face of significant challenges.”
Regarding GES, Moster commented, “We are seeing strong interest from exhibitors and attendees to see live events resume. However, the ongoing pandemic and related government restrictions have kept the live events market largely closed. At GES, we have responded by reducing operating costs to minimal essential levels to preserve liquidity, and we are making structural changes to our delivery model that will yield ongoing cost-savings when revenues return. The market disruption caused by the pandemic has provided us a unique opportunity to accelerate the transformation of GES into a leaner, more flexible, and more profitable organization. I am very grateful to our team for responding rapidly to the challenges of the pandemic and making the difficult decisions necessary to ensure we weather the storm and emerge stronger.”
Moster commented, “The COVID-19 pandemic continues to have a meaningful impact on the live events industry and leisure travel, and our third quarter results reflect that reality. We continue to believe that virtual cannot replace the value of in-person experiences and interactions, and we are seeing positive signs for future demand. At GES, we’re seeing increased RFPs for corporate business and strong contract pacing for future events. At Pursuit, our 2021 bookings for many locations are pacing ahead of the same time last year. These are indicators that our guests and clients are eager to explore and convene when it is safe and possible to do so. That said, given the evolving, uncertain nature of COVID-19, it is not possible to predict how the pandemic and government reactions will continue to impact the events industry and the broader travel market. Accordingly, we will not be re-issuing financial guidance at this time.”
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