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Edited Transcript of VVI earnings conference call or presentation 27-Apr-17 9:00pm GMT

Thomson Reuters StreetEvents

Q1 2017 Viad Corp Earnings Call

PHOENIX May 5, 2017 (Thomson StreetEvents) -- Edited Transcript of Viad Corp earnings conference call or presentation Thursday, April 27, 2017 at 9:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Carrie Long

Viad Corp - IR

* Ellen Marie Ingersoll

Viad Corp - CFO

* Steven W. Moster

Viad Corp - CEO, President, Director and President of GES

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Conference Call Participants

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* Jamie Yackow

Moab Capital Partners - Analyst

* Marco Andres Rodriguez

Stonegate Capital Markets, Inc., Research Division - Director of Research and Senior Research Analyst

* Stephen O'Hara

Sidoti & Company, LLC - Research Analyst

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Presentation

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Operator [1]

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Welcome to the Viad Corp First Quarter Earnings Conference Call. (Operator Instructions) This call is being recorded. If you have any objections, you may disconnect at this time. Now I would like to turn the call over to Carrie Long. Ma'am, you may begin.

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Carrie Long, Viad Corp - IR [2]

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Good afternoon, and thank you for joining us for Viad's 2017 first quarter earnings conference call. During the call, you will hear from Steve Moster, Viad's President and CEO; and Ellen Ingersoll, Viad's Chief Financial Officer.

Certain statements made during this call, which are not historical facts, may constitute forward-looking statements. Information concerning business and other risk factors that could cause actual results to materially differ from those in the forward-looking statements can be found in Viad's annual and quarterly reports filed with the SEC.

During the call, we'll be referring to certain non-GAAP measures. Important disclosures regarding these measures can be found in Table 2 of the earnings press release, which is available on the website at viad.com.

With that, I'll turn the call over to Steve.

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [3]

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Thank you for joining us on today's call. Viad kicked off 2017 on a strong note, with GES exceeding our prior guidance and Pursuit delivering results near the high end of our range.

Overall, Viad generated income per share before other items of $0.33 on revenue of $325.8 million, which was up 35% from the 2016 first quarter.

GES had a strong first quarter. Revenue grew by 34.6% year-over-year and adjusted segment operating income increased by $22.8 million.

GES continues to experience solid industry fundamentals and our team continues to execute well. We realized our 16th straight quarter of same-show growth with a healthy 4.1% increase in U.S.-based same-show revenue during the first quarter.

And CONEXPO-CON/AGG, one of our clients and the largest exhibition in the Western Hemisphere, posted record-breaking square footage and strong attendance.

GES' overall revenue growth was broad-based. In addition to positive show rotation and growth in our core services, we generated stronger-than-expected audiovisual production services revenue from ON Services, and our international operations delivered an organic revenue increase of 27.4% or $14.8 million, primarily from new business wins and same-show growth.

The team also did a great job executing on our first quarter events to drive strong EBITDA flow-through of about 30% on the revenue growth.

I'm also pleased to say that our strategy to position GES as a full-service provider is gaining traction in the marketplace. The investments we've made to broaden our suite of event services are helping to differentiate GES and drive profitable revenue growth.

We recently extended our relationship with Penton Media through a multiyear renewal of our core contracting and event accommodation services for its portfolio of 19 events through 2022. We also recently renewed our core services contract with the American Academy of Oral and Maxillofacial Surgeons and added audiovisual production to the scope of our work. These renewals validate the confidence our clients have in both our core services and our new offerings.

Another great example of the cross-selling success is HELI-EXPO, which is one of the largest helicopter industry events and a long-time exhibition client. For this year's event, we produced core contracting services, audiovisual production and event accommodation services and were awarded a multiyear contract renewal.

With a compelling full-service offering and global reach, our sales teams are also having success winning new clients like GSMA Mobile World Congress America. After a record show attendance in Spain in March, this premier global event for the mobile industry will have its American debut in San Francisco later this year.

GES has a long history working with corporate clients at GSMA's international events, and we're honored to be chosen as a trusted partner for its first-ever U.S.-based event.

Another win for the year is the American College of Surgeons' Clinical Congress. This educational event is one of the largest surgical meetings of its kind and reaches an audience of over 8,000 U.S. and international health care professionals. Our team will provide core contracting and accommodation services for this event.

These wins and our improving financial performance provide validation that our growth strategy is driving enhanced shareholder value. And we continue to make progress towards our longer-term strategic goals.

The integration of ON Services is progressing well, and we're starting to realize the anticipated cross-selling and in-sourcing synergies from this acquisition. The high-quality audiovisual production services that ON Services provides has enhanced our ability to gain share in the large and profitable corporate event space. During the quarter, our corporate events team secured several new wins and continues to build a strong pipeline of future opportunities.

To further strengthen our high-margin event technology platform, we recently purchased a cloud-based technology solution called Poken. This small but exciting acquisition is a powerful complement to our existing registration and data platform. Poken provides us industry leading and proprietary event engagement technology, and when integrated with our registration software, will provide even more insightful analytics and reporting to drive enhanced event performance.

Overall, the live events industry continues to perform well, and I'm very pleased with GES' progress and the results during the first quarter. Our solid execution and favorable industry conditions give me confidence in our ability to deliver on our full year revenue and operating income targets for GES. With a healthy sales pipeline and a strong arsenal of value-added offerings, we're well-positioned for a successful 2017.

Now let me switch gears to Pursuit, which is the recently launched umbrella brand for our collection of Travel & Recreation assets. Our team at Pursuit delivered solid results for its seasonally slow first quarter that were near the high end of our prior guidance range. Our recent acquisition of FlyOver Canada is performing well, and we're confident that this attraction will continue to thrive under the leadership of the Pursuit team as we leverage our existing sales and marketing teams and apply revenue management tactics to accelerate growth. Additionally, we continue to seek opportunities to expand the concept into additional markets.

Across the Pursuit business, our teams are preparing for a busy peak season this summer. With 5 of our attractions and 12 of our lodging properties being seasonally closed for the winter, getting these assets open and ready for guests is the primary focus of the Pursuit team right now. During late March, our Kenai Fjords boat tours began operating the season. And just a couple of weeks ago, we opened our Columbia Icefield operation, which includes our Glacier Adventure, Glacier Skywalk and the Glacier View Inn. Over the course of the next 6 weeks, we will open our remaining 11 hotels located at Glacier and in Alaska as well as our Canadian boat tour attractions in Banff and Jasper.

Successfully activating all of these properties in such a short period of time is an amazing feat, and I want to thank the Pursuit team for always ensuring we're ready to welcome our guests at the start of each season.

As we prepare for the peak season, we're encouraged by the strength of our pacing reports, which point to a very strong year in 2017. We have a number of favorable drivers going for us. Parks Canada will be celebrating Canada's 150 years anniversary with free admission to the parks for Canadian and U.S. citizens. This, coupled with the relatively weak Canadian dollar, should drive strong visitation to the Canadian parks. Additionally, relatively low fuel prices and the trend towards experiential travel to safe destinations could bode well for all of our geographies.

Before I turn it over to Ellen to comment on our financials, I'd like to provide an update on the important renovation activities that support our Refresh, Build, Buy growth strategy for Pursuit.

Our newly renovated Banff Gondola is performing well and was a key driver of revenue growth during the first quarter. The upgraded experience is enabling us to drive growth in both passengers and revenue per passenger. Because the Gondola was closed for renovation during the 2016 first quarter, I'll provide some comparisons to the 2015 first quarter, which provides a good benchmark for its pre-renovation performance. Revenue increased 20%, passengers were up 13% and we realized a 6.5% increase in revenue per passenger. The Banff Gondola continues to receive positive guest feedback, and its new upscale mountaintop restaurant, the Sky Bistro, was recently named one of the top restaurants with a view by OpenTable, an online dining reservation specialist. The Gondola renovation is proving to be a highly successful refresh project.

Drawing upon the insights gleaned from the Gondola renovation, we recently completed similar upgrades to the restaurant at our Glacier Discovery Center. This center, located at the remote Columbia Icefield, welcomes over 1 million visitors annually and serves as a starting point for Pursuit's iconic Glacier Adventure Tour and Glacier Skywalk. The renovations of the dining facilities has completely changed the guest experience, with an incredible glacier view restaurant in a warm and inviting fast casual dining space that draws inspiration from the mountain and glacier surroundings. The dramatic improvement in both atmosphere and quality of food and service are receiving great reviews from our guests and enabling us to capture a higher spend per guest.

Another major renovation project that we are preparing to undertake is the upgrading and reopening of the Mount Royal Hotel located in downtown Banff. As we've previously announced, the hotel has been closed as a result of a fire this past December. Due to the extent of the damage and given its prime location in downtown Banff, we are planning to completely renovate the property to provide an upgraded guest experience that enables us to drive stronger RevPAR and returns. We currently expect the hotel to reopen sometime during 2018, and we will provide additional updates as the year progresses. We continue to work closely with our insurance providers to finalize our property and business interruption insurance claims.

And now I'll turn it over to Ellen to provide some more color on the financials. Ellen?

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Ellen Marie Ingersoll, Viad Corp - CFO [4]

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Thanks, Steve. As Steve mentioned earlier, our results for the first quarter of 2017 came in better than our prior guidance. Our income before other items was $0.33 per share on revenue of $325.8 million; adjusted segment EBITDA of $25.7 million; and adjusted segment operating income of $13.6 million.

As a reminder, by definition, income before other items, adjusted segment EBITDA and adjusted segment operating income exclude restructuring and impairment charges or recoveries as well as acquisition transaction-related and integrated costs. A reconciliation of these non-GAAP measures to net income can be found in Table 2 of the earnings press release.

As compared to the 2016 first quarter, our income before other items increased by $0.63 per share from a loss of $0.30 per share to income of $0.33 per share, primarily due to an increase in revenue at GES. Consolidated revenue increased 35% or $84.4 million; adjusted segment EBITDA increased by $23.6 million; and adjusted segment operating income increased by $19.8 million.

Moving on to the business group results. GES' first quarter revenue was $317.9 million, up 34.6% or $81.7 million versus the 2016 first quarter. On an organic basis, which excludes the impact of acquisitions and exchange rate variances, GES first quarter revenue increased $71.1 million or 30.4%.

U.S. segment organic revenue increased $57.9 million or 31.8%, primarily due to positive show rotation of about $52 million, continued base same-show growth and new business wins.

Organic revenue for GES' international segment increased $14.8 million or 27.4%, primarily due to new business wins, same-show growth and positive show rotation of about $3 million.

The acquisition of ON Services contributed incremental revenue of about $17.5 million during the first quarter, which was partially offset by a $5.1 million revenue decline from unfavorable currency translation.

GES delivered strong flow-through of about 30% on the first quarter revenue growth. Adjusted segment EBITDA was $32.2 million, up $25.3 million from the 2016 quarter. U.S. adjusted segment EBITDA increased $22.9 million. And international adjusted segment EBITDA increased $2.4 million, primarily due to higher revenue and solid operating leverage.

GES' adjusted segment operating income was $23.1 million, an increase of $22.8 million versus the prior year quarter, including incremental depreciation and amortization expense of $2.5 million, primarily due to the ON Services acquisition.

Pursuit's first quarter results came in near the high end of our prior guidance range with revenue of $7.9 million, up $2.7 million year-over-year, and an adjusted segment operating loss of $10 million versus $6.5 million in the prior year quarter. The revenue growth during the seasonally slow quarter was primarily driven by the Banff Gondola, which was closed for renovation during the 2016 quarter, and the FlyOver Canada acquisition. These positive contributors were partially offset by the closure of the Mount Royal Hotel. The higher adjusted segment operating loss was primarily due to the full quarter of seasonal losses from CATC, which was acquired in March 2016, and was seasonally closed for most of the first quarter. On an organic basis, Pursuit's loss increased $0.9 million, primarily due to higher repairs and maintenance costs incurred during the quarter and the timing of certain other expenses.

The acquisitions of CATC and FlyOver Canada contributed $1.5 million of revenue with a seasonal adjusted segment operating loss of $3.1 million. The revenue was primarily generated by FlyOver Canada, while the operating loss was primarily from CATC. And as Steve mentioned, FlyOver is performing well and in line with our expectations thus far.

For the full year, we continue to expect FlyOver to generate revenue of $9 million to $10 million, with an adjusted segment EBITDA margin of about 55%.

Our first quarter year-over-year performance was also affected by the closure of the Mount Royal Hotel as a result of the fire that occurred at the end of last year. Last year, we generated $1.1 million in revenue and an operating profit of a little over $200,000 at the property during the first quarter. As Steve noted, we will continue to work with our insurance carriers to reach a full and final settlement of our property and business interruption insurance claim. To date, we have received a total of $9 million of interim insurance proceeds, including $3.7 million that was received in early April. The remaining $5.3 million was received during the first quarter and was accounted for as follows: $2.2 million was allocated to an insurance receivable recorded at the end of 2016; $2.4 million was recorded as an impairment recovery related to construction-in-progress capital expenditures incurred during the first quarter; and $0.6 million was recorded as contra-expense to offset non-capitalizable costs incurred by the company during the first quarter; and the remaining $0.1 million was recorded as a business interruption gain for the recovery of lost profits. We expect to reach a full and final settlement with our insurance carriers during the second quarter, which will include proceeds to cover both property damage and lost profits.

And now I'll cover some cash flow and balance sheet items before discussing 2017 guidance. [Viad's] consolidated cash flow from operations was $34.8 million for the 2017 first quarter, and this was up from $17 million in 2016, primarily due to higher income. Capital expenditures totaled $14.7 million, up from $7.3 million in the 2016 quarter, primarily due to investments in new audiovisual and electrical equipment to support business growth and timing of capital spend at GES. At March 31, our cash flow -- cash and cash equivalents totaled $25.4 million. And our debt was $238 million, with a debt-to-capital ratio of 38.6%. And we also paid $1.7 million for the acquisition of Poken during March 2017.

Now moving on to guidance. Our overall full year outlook remains unchanged. We continue to expect consolidated revenue to increase by approximately 5% versus 2016, with growth in adjusted segment EBITDA of about $14.3 million to $18.3 million. Depreciation and amortization expense is expected to increase by $11 million to $14 million, primarily reflecting the acquisitions of ON Services and FlyOver Canada. Our full year cash flow from operations is expected to be in the range of $110 million to $120 million, and capital expenditures are expected to be about $44 million to $48 million.

For GES, we continue to expect full year revenue to increase at a mid-single-digit rate as the ON Services acquisition and continued growth in the underlying business more than offset unfavorable currency translation and negative show rotation.

GES' adjusted segment EBITDA is expected to grow by about $8.5 million to $11.5 million versus 2016. Our full year guidance for ON Services remains unchanged and we expect the Poken technology platform to yield revenue of about $2 million, with a small loss this year.

For Pursuit, we're continuing to expect full year revenue to grow at a mid-single-digit rate as the renovated Gondola, the FlyOver Canada acquisition and our revenue management initiatives, combined with Parks Canada's 150-year Canadian anniversary, more than offset the impact of the Mount Royal Hotel closure and our continued downsizing of package tours.

Pursuit's adjusted segment EBITDA is expected to grow by about $5 million to $7 million versus 2016. Note that this outlook for Pursuit does not include any income, including additional business interruption gains or capital expenditures related to the Mount Royal Hotel as the timing amounts have not yet been determined. We will provide an update once we have reached a full and final settlement with our insurance carriers. As a reminder, our business interruption policy will cover lost profits from the hotel closure. During 2016, the hotel generated $2.7 million in adjusted segment EBITDA.

For the second quarter, we expect income per share of $0.88 to $0.99 as compared to $1.04 in the 2016 quarter. The expected decline reflects higher depreciation, amortization and interest expense as a result of the acquisitions of ON Services and FlyOver Canada. Adjusted segment EBITDA and revenue are both expected to increase versus the 2016 quarter.

For GES, we expect second quarter revenue to increase by approximately $11.5 million to $21.5 million from the 2016 quarter, which included $16 million to $18 million from the acquisition of ON Services and Poken. We expect positive show rotation during the quarter to be offset by unfavorable currency translation. Continued same-show growth and new wins are expected to help offset some nonrecurring business that we produced during the 2016 second quarter.

GES' second quarter adjusted segment operating income is expected to decline about $500,000 to $3.5 million versus the 2016 quarter, which reflects additional depreciation and amortization expense of approximately $3 million.

For Pursuit, we expect second quarter revenue to increase by $1.5 million to $4.5 million from the 2016 quarter, which includes $1.5 million to $2.5 million from the acquisition of FlyOver Canada. We expect revenue headwinds of about $7 million from the combination of our continued downsizing of package tours, the Mount Royal Hotel closure and unfavorable currency translation.

Pursuit's second quarter adjusted segment operating income is expected to be in the range of $6.5 million to $8 million as compared to $7.4 million in the 2016 quarter. We expect additional depreciation and amortization expense of about $1.5 million year-over-year.

Additional 2017 guidance can be found in the earnings press release.

Steve, back to you.

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [5]

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Thank you, Ellen. In closing, we continue to see favorable industry conditions on both sides of our business. And with a solid first quarter under our belts, we are squarely focused on delivering strong performance over the balance of the year. The investments we've made to scale Pursuit and to improve GES' competitive position continue to deliver strong returns and create opportunities for future growth. We remain committed to our strategy and to driving enhanced shareholder value in the years to come.

I want to thank the entire Viad team for their commitment to our strategy and to our customers.

And with that, we'll open the call up for questions. Carrie, can you open the call, please?

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question coming from Marco Rodriguez of Stonegate Capital Markets.

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Marco Andres Rodriguez, Stonegate Capital Markets, Inc., Research Division - Director of Research and Senior Research Analyst [2]

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I was wondering if you could talk a little bit more about GES. In your prepared remarks, you were talking about ON Services, where you are starting to see some pretty good success on the cross-selling aspects. I was wondering if you could maybe dive down a little bit deeper into that as far as what you're kind of seeing there and how you're kind of tracking that.

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [3]

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Sure, Marco. This is one of the things we've talked about after we did the acquisition. There's really 2 primary drivers of value. The first is, we believe and what we've seen is the ability to cross-sell, meaning that the GES team has presented new opportunities to ON Services for audiovisual production, and in return, the ON Services team has provided new opportunities for the GES event team to go after. And so the combination of those synergies is really what has helped out in the first quarter and helped us to talk about the [core], build a strong pipeline for future opportunities. And then the second value creation is around in-sourcing. If you remember, GES had started an organic audiovisual department, but we did not have any gear at the time, any equipment, when we started the business. So in-sourcing is basically taking those projects and using the existing equipment that is part of the ON Services acquisition, which helps lower the overall cost of execution. And so we're seeing good traction on both of those synergies.

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Marco Andres Rodriguez, Stonegate Capital Markets, Inc., Research Division - Director of Research and Senior Research Analyst [4]

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Got you. And is -- it kind of seemed to imply, at least from your comments, and perhaps I just interpreted this incorrectly, that it's kind of just now starting to bear fruit in terms of the cross-selling. Or is this just kind of a continuation?

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [5]

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Yes. So the acquisition we did, it was August of 2016, and so there was some ramp-up around the integration of the 2 businesses. There's also a natural cadence to when contracts come up for renewal. So typically, exhibition contracts for audiovisual services are either 3- or 5-year tenure. So at any point you get 20% to 30% of the available contracts will come out in a year. So there's a natural cadence to it. So I think we are in our stride now, and it's about where we planned in terms of timing of it.

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Marco Andres Rodriguez, Stonegate Capital Markets, Inc., Research Division - Director of Research and Senior Research Analyst [6]

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Got it. And talking about Poken here, your most recent acquisition, maybe you can talk a little bit about the potential you see there. It kind of implied, based on your guidance that, that might add an incremental $2 million into this fiscal year on a revenue basis. And then if also you might be able to talk about the complexity, or lack thereof, that is, of integrating that cloud-based solution into your current technology offerings.

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [7]

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Sure. And we're very excited about the acquisition. It's a small acquisition in terms of the capital [outlie], but strategically it's a very important one for us. We -- Poken has worked with our registration platform over the last several years, and there are already components that were integrated before we even did the acquisition. So we believe that the integration and further integration between Poken and our registration platform will be relatively easy for us to do. We're working on them now. And we believe that, that will overall strengthen the proposition we have for our registration platform and the services that Poken provides. So we're very excited about it, just a small acquisition, but strategically it was the right move for us.

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Marco Andres Rodriguez, Stonegate Capital Markets, Inc., Research Division - Director of Research and Senior Research Analyst [8]

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Understood. Helpful. And then in terms of the reported revenues for GES from same-store -- or rather, excuse me, from the show rotation, you had an additional $5 million that came through above kind of guidance. Can you talk a little bit about where that kind of came from?

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [9]

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Yes. So beyond the show rotation, you saw broad-based growth across our platform, and this is -- we're speaking about the U.S. specifically. So you saw same-show growth of 4.1%. You saw other services contribute to that over-deliver in revenue of $5 million. And it was the large rotation piece within the quarter.

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Marco Andres Rodriguez, Stonegate Capital Markets, Inc., Research Division - Director of Research and Senior Research Analyst [10]

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Right. I guess what I was trying to ask, and I apologize for my miscommunication, but if I'm not mistaken, I thought that show rotation was supposed to add about $50 million this quarter, in Q1, and I think it came in at $55 million.

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [11]

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Yes. That's just growth -- as I mentioned in my comments, CONEXPO-CON/AGG, one of our clients for a long term, over-delivered in terms of the size of that event. They had record square footage and also a very strong attendance. So that 1 event is what drove the -- a lot of that $5 million.

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Operator [12]

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Our next question is from Steve O'Hara of Sidoti & Company.

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Stephen O'Hara, Sidoti & Company, LLC - Research Analyst [13]

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Can you just -- going back to the Mount Royal. Did I hear you say there was a charge in the quarter from, I don't know, writing down the asset or something like that and there was a reversal? Or was that in the fourth quarter? Can you just tell me where that was?

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Ellen Marie Ingersoll, Viad Corp - CFO [14]

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We had recorded an insurance recovery at the end of the fourth quarter of '16. So when we received proceeds in '17, part of that satisfied that receivable, but then we also had further recoveries in the first quarter. So you'll see them on our P&L as impairment recovery.

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Stephen O'Hara, Sidoti & Company, LLC - Research Analyst [15]

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Okay. And then...

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Ellen Marie Ingersoll, Viad Corp - CFO [16]

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So no charges, just recoveries.

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Stephen O'Hara, Sidoti & Company, LLC - Research Analyst [17]

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Okay, okay. And then the plans for the spot and the property, I mean, how far along are you in terms of the planning? And, I mean, do you expect to announce something kind of midyear time frame? Is that your goal?

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [18]

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Well, we've been parallel-pathing both the insurance claim for business interruption and property and equipment. At the same time, we've been designing an upgraded experience that we can have at the Mount Royal Hotel. So we've been parallel-tracking both of these. We believe that we can open the Mount Royal Hotel sometime in 2018. And as we get more information around the settlement with the insurance company as well as our plans for the hotel -- when those become more concrete, then we'll be able to share that with our investors.

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Stephen O'Hara, Sidoti & Company, LLC - Research Analyst [19]

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Okay. And then I thought I heard you say the EBITDA was $2.6 million or something in 2016 from the property. And to me, that sounded low, but I mean, was that -- was the building kind of rundown for the -- depreciation-wise. Is that what -- why that was low? Or maybe, I guess I had a different understanding of the property.

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Ellen Marie Ingersoll, Viad Corp - CFO [20]

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Yes, Steve, it's about $6 million in revenue and that -- it was $2.7 million in EBITDA in 2016.

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Stephen O'Hara, Sidoti & Company, LLC - Research Analyst [21]

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Okay. Okay. And, I mean, have you kind of talked about the improvement and the investment you think you can make? I mean, should we be thinking of something along the lines of the recent investments you've made in the Glacier Skywalk or something like that? I mean, are those types of returns what you're looking at? Or is this something more subdued?

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [22]

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I mean, I think when we designed the new Mount Royal Hotel, you'll see it very similar in terms of the quality and the financial performance of something like a Gondola or what we just finished at the Glacier Discovery Center. So there's a certain market that we're targeting, and we believe we can hit that. And it's an ideal location in Banff. We believe that it will have strong returns.

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Operator [23]

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Our next question is from Jamie Yackow of Moab Partners.

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Jamie Yackow, Moab Capital Partners - Analyst [24]

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Could you just give us a sense of how ON events and FlyOver did on a year-over-year basis?

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [25]

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From a first quarter perspective, both were actually above first quarter of 2016 from a revenue and from an operating income perspective.

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Jamie Yackow, Moab Capital Partners - Analyst [26]

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Okay. And for FlyOver, this is -- I guess for both, this is a seasonally weak quarter as well or...

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [27]

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Yes. Most of the visitation traffic in Vancouver is Q3, a little bit in Q2, but -- and Q4, there's a strong holiday attraction as well. So most of it is in Q3 and Q4, so this is seasonally light.

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Operator [28]

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Thank you. We show no further question at this time. (Operator Instructions) We show no further questions at this time, speakers.

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Steven W. Moster, Viad Corp - CEO, President, Director and President of GES [29]

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All right. Thanks, Carrie. Thank you, everyone on the call, for your questions and your interest in Viad. We look forward to speaking with you again in the next quarter. Bye-bye.

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Operator [30]

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Thank you. And that concludes today's conference. Thank you for participating. You may now disconnect.