Viad Corp (VVI) Reports Revenue Growth and EBITDA Improvement in Q4 and Full Year 2023
Revenue: Q4 revenue rose to $291.7 million, a 17.6% increase, with full-year revenue up by 9.9% to $1,238.7 million.
Net Income: Full-year net income attributable to Viad was $16.0 million, a decrease of 31.0% from the previous year.
Adjusted EBITDA: Consolidated adjusted EBITDA for the year improved by 26.6% to $147.0 million.
Segment Performance: Pursuit segment revenue grew by 17.0%, while GES revenue increased by 7.3% for the year.
Outlook: Viad expects full-year consolidated adjusted EBITDA growth of approximately 16% to 30% in 2024 with strong free cash flow.
Balance Sheet: Cash and cash equivalents stood at $52.7 million as of December 31, 2023, with total debt at $462.1 million.
On February 8, 2024, Viad Corp (NYSE:VVI), a leading provider of extraordinary experiences across attractions, hospitality, exhibition management, and experiential marketing, announced its financial results for the fourth quarter and full year of 2023. The company reported a significant increase in revenue and adjusted EBITDA, exceeding the high end of its guidance. Viad Corp released its 8-K filing detailing these results.
Viad Corp operates through two main segments: Pursuit, which offers travel experiences, hotels, and attractions, and GES, which provides exhibition services and experiential marketing through its Spiro agency. The company's performance in the fourth quarter was particularly strong due to increased corporate client spending on high-margin experiential marketing services within the GES segment. Pursuit also posted record revenue, benefiting from heightened demand for its unique travel experiences.
President and CEO Steve Moster commented on the results:
"We delivered strong fourth quarter and full year results, with consolidated revenue and adjusted EBITDA exceeding the high-end of our guidance. GES results significantly surpassed our expectations due to increased corporate client spending on high-margin experiential marketing services. Pursuit posted record revenue and benefited from increased demand for our inspiring and unforgettable attractions and hotels."
For the fourth quarter, Viad reported revenue of $291.7 million, a 17.6% increase from the same period in the previous year. The full-year revenue reached $1,238.7 million, marking a 9.9% increase from 2022. The Pursuit segment's revenue grew by 23.6% in the fourth quarter and 17.0% for the full year, while the GES segment saw a 16.6% increase in the fourth quarter and a 7.3% increase for the full year.
Despite the revenue growth, net income attributable to Viad for the full year was $16.0 million, a decline of 31.0% from the previous year. The company's adjusted net income improved, however, with a 50.9% increase to $18.6 million for the year. Diluted earnings per share (EPS) for the full year was $0.30, down from $0.53 in the previous year.
The company's adjusted EBITDA for the full year was $147.0 million, a 26.6% improvement from 2022. The Pursuit segment's adjusted EBITDA increased by 36.3% to $92.6 million, while the GES segment's adjusted EBITDA grew by 11.3% to $68.2 million.
Looking ahead to 2024, Viad expects to continue its growth trajectory, forecasting a full-year consolidated adjusted EBITDA increase of approximately 16% to 30%. The company also anticipates strong free cash flow generation.
Viad's balance sheet as of December 31, 2023, showed cash and cash equivalents of $52.7 million and total debt of $462.1 million. The company's shareholders' equity stood at $41.4 million, with non-controlling interests at $93.9 million.
The company's performance reflects its strategic focus on delivering extraordinary experiences and achieving sustainable growth. Viad's outlook for 2024 suggests continued demand for its unique offerings in both the Pursuit and GES segments, positioning it for another year of financial success.
For more detailed information, investors and interested parties can access the supplemental earnings presentation on the "Investors" section of Viad's website and join the conference call scheduled for February 8, 2024, at 5 p.m. Eastern Time.
Viad Corp's full financial tables and additional notes can be found in the accompanying 8-K filing.
Explore the complete 8-K earnings release (here) from Viad Corp for further details.
This article first appeared on GuruFocus.
