On November 2, 2023, Viad Corp (VVI, Financial), a leading provider of experiential leisure travel and live events and marketing experiences, released its financial results for the third quarter of 2023. The company reported a net income of $41.3 million, an increase from $38.1 million in the same period last year. However, revenue for the quarter was $365.9 million, a decrease from $382.7 million in Q3 2022.
Financial Highlights
The company's Pursuit segment, which focuses on experiential leisure travel, posted record results with revenue reaching $186.9 million, up from $163.8 million in Q3 2022. Adjusted EBITDA for the segment was $91.8 million, a significant increase from $75.1 million in the same period last year.
On the other hand, the GES segment, which provides live events and marketing experiences, saw a decline in revenue to $179.0 million from $218.9 million in Q3 2022. Adjusted EBITDA for the segment was negative $2.0 million, compared to $10.7 million in the same period last year.
Management Commentary
Steve Moster, Viad’s president and chief executive officer, commented, “We delivered strong third quarter results in line with our prior guidance ranges. Pursuit posted record results during our peak summer season and benefited from increased international visitation and solid demand. GES’ results were at the high-end of our guidance ranges and reflect continued strength in live events.”
Moster continued, “We are thrilled with our year-to-date performance and the continued positive momentum we are experiencing at both Pursuit and GES. We are on track to deliver strong full year growth in 2023 and are very optimistic about our growth prospects for next year.”
Cash Flow and Balance Sheet Highlights
Viad Corp's cash flow from operations for Q3 2023 was approximately $78 million, and capital expenditures totaled approximately $23 million. The company ended the quarter with total liquidity of $201.3 million, comprising cash and cash equivalents of $106.3 million and $95 million of capacity available on its revolving credit facility.
2023 Outlook
Looking ahead, Viad Corp expects to see continued strong demand for Pursuit’s leisure travel markets and GES’ live events. The company has raised the bottom end of its full-year guidance ranges based on its solid performance year-to-date.
Explore the complete 8-K earnings release (here) from Viad Corp for further details.
