| Debt
|
|
|
|
|
|
|
|
(in thousands) | ||||
Other current assets
|
$ | 43 | ||
Property and equipment
|
11,090 | |||
Goodwill
|
3,482 | |||
Other intangible assets
|
818 | |||
|
||||
Total assets acquired
|
15,433 | |||
|
||||
|
||||
Customer deposits
|
(38 | ) | ||
Other current liabilities
|
(90 | ) | ||
|
||||
Total liabilities acquired
|
(128 | ) | ||
|
||||
|
||||
Purchase price
|
$ | 15,305 | ||
|
(in thousands) | ||||
Cash and cash equivalents
|
$ | 21 | ||
Other current assets
|
715 | |||
Property and equipment
|
13,058 | |||
Goodwill
|
2,583 | |||
Other intangible assets
|
60 | |||
|
||||
Total assets acquired
|
16,437 | |||
|
||||
|
||||
Customer deposits
|
(684 | ) | ||
Other current liabilities
|
(46 | ) | ||
Other long-term liabilities
|
(382 | ) | ||
|
||||
Total liabilities acquired
|
(1,112 | ) | ||
|
||||
|
||||
Purchase price
|
$ | 15,325 | ||
|
(in thousands) | ||||
Cash and cash equivalents
|
$ | 9 | ||
Other current assets
|
126 | |||
Property and equipment
|
8,750 | |||
Goodwill
|
1,331 | |||
Other intangible assets
|
400 | |||
|
||||
Total assets acquired
|
10,616 | |||
|
||||
|
||||
Customer deposits
|
(99 | ) | ||
Other current liabilities
|
(12 | ) | ||
|
||||
Total liabilities acquired
|
(111 | ) | ||
|
||||
|
||||
Purchase price
|
$ | 10,505 | ||
|
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Revenue
|
$ | 221,335 | $ | 227,169 | $ | 752,868 | $ | 673,567 | ||||||||
Net income attributable to
Viad
|
$ | 2,869 | $ | 7,114 | $ | 17,158 | $ | 6,852 | ||||||||
Diluted net income per share
|
$ | 0.14 | $ | 0.35 | $ | 0.84 | $ | 0.33 | ||||||||
Basic net income per share
|
$ | 0.14 | $ | 0.35 | $ | 0.84 | $ | 0.33 |
|
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Raw materials
|
$ | 18,143 | $ | 18,488 | ||||
Work in process
|
22,267 | 20,182 | ||||||
|
||||||||
Inventories
|
$ | 40,410 | $ | 38,670 | ||||
|
|
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Land
|
$ | 17,846 | $ | 9,139 | ||||
Buildings and leasehold improvements
|
109,729 | 89,945 | ||||||
Equipment and other
|
306,617 | 299,558 | ||||||
|
||||||||
|
434,192 | 398,642 | ||||||
Accumulated depreciation
|
(260,170 | ) | (249,296 | ) | ||||
|
||||||||
Property and equipment, net
|
$ | 174,022 | $ | 149,346 | ||||
|
|
Marketing & | ||||||||||||||||
Marketing & | Events | Travel & | ||||||||||||||
Events U.S. | International | Recreation Group | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at January 1, 2011
|
$ | 62,686 | $ | 22,455 | $ | 42,300 | $ | 127,441 | ||||||||
Business acquisitions
|
— | — | 7,396 | 7,396 | ||||||||||||
Foreign currency translation
adjustments
|
— | (465 | ) | (2,463 | ) | (2,928 | ) | |||||||||
|
||||||||||||||||
Balance at September 30, 2011
|
$ | 62,686 | $ | 21,990 | $ | 47,233 | $ | 131,909 | ||||||||
|
Gross Carrying | Accumulated | Net Carrying | ||||||||||
Value | Amortization | Value | ||||||||||
(in thousands) | ||||||||||||
Amortized intangible assets:
|
||||||||||||
Customer contracts and
relationships
|
$ | 2,587 | $ | (1,540 | ) | $ | 1,047 | |||||
Non-compete agreement
|
85 | — | 85 | |||||||||
Proprietary technology
|
517 | (505 | ) | 12 | ||||||||
Other
|
67 | (26 | ) | 41 | ||||||||
|
||||||||||||
|
3,256 | (2,071 | ) | 1,185 | ||||||||
|
||||||||||||
|
||||||||||||
Unamortized intangible assets:
|
||||||||||||
Trade names
|
633 | — | 633 | |||||||||
Business licenses
|
460 | — | 460 | |||||||||
|
||||||||||||
|
1,093 | — | 1,093 | |||||||||
|
||||||||||||
|
||||||||||||
Total
|
$ | 4,349 | $ | (2,071 | ) | $ | 2,278 | |||||
|
Gross Carrying | Accumulated | Net Carrying | ||||||||||
Value | Amortization | Value | ||||||||||
(in thousands) | ||||||||||||
Customer contracts
and relationships
|
$ | 2,506 | $ | (1,135 | ) | $ | 1,371 | |||||
Proprietary technology
|
517 | (448 | ) | 69 | ||||||||
Design libraries
|
175 | (110 | ) | 65 | ||||||||
Other
|
166 | (108 | ) | 58 | ||||||||
|
||||||||||||
|
$ | 3,364 | $ | (1,801 | ) | $ | 1,563 | |||||
|
(in thousands) | ||||
2011
|
$ | 265 | ||
2012
|
$ | 434 | ||
2013
|
$ | 349 | ||
2014
|
$ | 119 | ||
2015
|
$ | 18 |
|
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Continuing operations:
|
||||||||
Customer deposits
|
$ | 40,257 | $ | 43,411 | ||||
Accrued compensation
|
21,679 | 17,599 | ||||||
Self-insured liability accrual
|
7,819 | 8,278 | ||||||
Accrued foreign income taxes
|
5,004 | 2,852 | ||||||
Accrued employee benefit costs
|
3,232 | 3,127 | ||||||
Accrued restructuring
|
1,840 | 4,272 | ||||||
Accrued sales and use taxes
|
1,454 | 2,990 | ||||||
Accrued dividends
|
826 | 827 | ||||||
Other
|
12,182 | 11,084 | ||||||
|
||||||||
|
94,293 | 94,440 | ||||||
|
||||||||
Discontinued operations:
|
||||||||
Environmental remediation
liabilities
|
936 | 1,124 | ||||||
Self-insured liability accrual
|
493 | 552 | ||||||
Other
|
534 | 633 | ||||||
|
||||||||
|
1,963 | 2,309 | ||||||
|
||||||||
Total other current liabilities
|
$ | 96,256 | $ | 96,749 | ||||
|
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Continuing operations:
|
||||||||
Self-insured liability accrual
|
$ | 13,442 | $ | 14,330 | ||||
Accrued compensation
|
4,984 | 5,129 | ||||||
Accrued restructuring
|
3,972 | 3,724 | ||||||
Foreign deferred tax liability
|
1,584 | 1,582 | ||||||
Accrued income taxes
|
— | 146 | ||||||
Other
|
5,877 | 3,945 | ||||||
|
||||||||
|
29,859 | 28,856 | ||||||
|
||||||||
Discontinued operations:
|
||||||||
Self-insured liability accrual
|
6,607 | 6,898 | ||||||
Environmental remediation liabilities
|
4,897 | 4,953 | ||||||
Accrued income taxes
|
1,015 | 987 | ||||||
Other
|
1,180 | 1,331 | ||||||
|
||||||||
|
13,699 | 14,169 | ||||||
|
||||||||
Total other deferred items and
liabilities
|
$ | 43,558 | $ | 43,025 | ||||
|
|
|
Total Viad | Total | |||||||||||
Stockholders’ | Noncontrolling | Stockholders’ | ||||||||||
Equity | Interest | Equity | ||||||||||
(in thousands) | ||||||||||||
|
||||||||||||
Balance at January 1, 2011
|
$ | 378,959 | $ | 7,752 | $ | 386,711 | ||||||
Net income
|
15,517 | 675 | 16,192 | |||||||||
Dividends on common stock
|
(2,435 | ) | — | (2,435 | ) | |||||||
Common stock purchased for treasury
|
(5,230 | ) | — | (5,230 | ) | |||||||
Employee benefit plans
|
2,800 | — | 2,800 | |||||||||
Unrealized foreign currency translation
adjustment
|
(7,460 | ) | — | (7,460 | ) | |||||||
Unrealized gain on investments
|
(99 | ) | — | (99 | ) | |||||||
Prior service credit and net actuarial loss
|
(133 | ) | — | (133 | ) | |||||||
ESOP allocation adjustment
|
920 | — | 920 | |||||||||
Other
|
4 | — | 4 | |||||||||
|
||||||||||||
Balance at September 30, 2011
|
$ | 382,843 | $ | 8,427 | $ | 391,270 | ||||||
|
Total Viad | Total | |||||||||||
Stockholders’ | Noncontrolling | Stockholders’ | ||||||||||
Equity | Interest | Equity | ||||||||||
(in thousands) | ||||||||||||
|
||||||||||||
Balance at January 1, 2010
|
$ | 377,515 | $ | 7,116 | $ | 384,631 | ||||||
Net income
|
4,842 | 766 | 5,608 | |||||||||
Dividends on common stock
|
(2,466 | ) | — | (2,466 | ) | |||||||
Common stock purchased for treasury
|
(6,906 | ) | — | (6,906 | ) | |||||||
Employee benefit plans
|
2,621 | — | 2,621 | |||||||||
Unrealized foreign currency translation
adjustment
|
2,783 | — | 2,783 | |||||||||
Unrealized loss on investments
|
78 | — | 78 | |||||||||
Prior service credit and net actuarial loss
|
(1,658 | ) | — | (1,658 | ) | |||||||
ESOP allocation adjustment
|
1,100 | — | 1,100 | |||||||||
Other
|
10 | — | 10 | |||||||||
|
||||||||||||
Balance at September 30, 2010
|
$ | 377,919 | $ | 7,882 | $ | 385,801 | ||||||
|
|
Level 1 — |
Quoted prices in active markets for identical assets or liabilities.
|
Level 2 — |
Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
|
Level 3 — |
Unobservable inputs to the valuation methodology that are significant to the measurement of fair value.
|
Fair Value Measurements at September 30, 2011 Using | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices | Other | Significant | ||||||||||||||
in Active | Observable | Unobserved | ||||||||||||||
September 30, | Markets | Inputs | Inputs | |||||||||||||
2011 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(in thousands) | ||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$ | 19,245 | $ | 19,245 | $ | — | $ | — | ||||||||
Other mutual funds
|
1,331 | 1,331 | — | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 20,576 | $ | 20,576 | $ | — | $ | — | ||||||||
|
|
2011 | 2010 | |||||||||||||||
(in thousands) | ||||||||||||||||
Computed income tax expense at
statutory
federal income tax rate of 35%
|
$ | 8,821 | 35.0 | % | $ | 3,331 | 35.0 | % | ||||||||
State income tax expense
(benefit), net of
federal benefit or provision
|
537 | 2.1 | % | (279 | ) | (2.9 | %) | |||||||||
Tax resolutions, net
|
(103 | ) | (0.4 | %) | (149 | ) | (1.6 | %) | ||||||||
Change in enacted tax law
|
— | 0.0 | % | 1,279 | 13.5 | % | ||||||||||
Other, net
|
(244 | ) | (0.9 | %) | (273 | ) | (2.9 | %) | ||||||||
|
||||||||||||||||
Income tax expense
|
$ | 9,011 | 35.8 | % | $ | 3,909 | 41.1 | % | ||||||||
|
|
Domestic Plans | ||||||||||||||||||||||||
Postretirement | Foreign | |||||||||||||||||||||||
Pension Plans | Benefit Plans | Pension Plans | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Service cost
|
$ | 17 | $ | 53 | $ | 22 | $ | 27 | $ | 92 | $ | 75 | ||||||||||||
Interest cost
|
292 | 311 | 187 | 265 | 183 | 193 | ||||||||||||||||||
Expected return on plan assets
|
(140 | ) | (149 | ) | (35 | ) | (41 | ) | (164 | ) | (149 | ) | ||||||||||||
Amortization of prior service
cost (credit)
|
— | 10 | (320 | ) | (293 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss
|
1 | 139 | 80 | 157 | — | — | ||||||||||||||||||
|
||||||||||||||||||||||||
Net periodic benefit cost
|
$ | 170 | $ | 364 | $ | (66 | ) | $ | 115 | $ | 111 | $ | 119 | |||||||||||
|
Domestic Plans | ||||||||||||||||||||||||
Postretirement | Foreign | |||||||||||||||||||||||
Pension Plans | Benefit Plans | Pension Plans | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Service cost
|
$ | 91 | $ | 159 | $ | 96 | $ | 81 | $ | 276 | $ | 227 | ||||||||||||
Interest cost
|
892 | 933 | 651 | 795 | 551 | 581 | ||||||||||||||||||
Expected return on plan assets
|
(422 | ) | (447 | ) | (101 | ) | (123 | ) | (493 | ) | (448 | ) | ||||||||||||
Amortization of prior service
cost (credit)
|
— | 30 | (958 | ) | (879 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss
|
342 | 416 | 400 | 470 | — | — | ||||||||||||||||||
|
||||||||||||||||||||||||
Net periodic benefit cost
|
$ | 903 | $ | 1,091 | $ | 88 | $ | 344 | $ | 334 | $ | 360 | ||||||||||||
|
|
Marketing & Events | ||||||||||||||||||||
Group Consolidation | Other Restructurings | |||||||||||||||||||
Severance & | Severance & | |||||||||||||||||||
Employee | Employee | |||||||||||||||||||
Benefits | Facilities | Benefits | Facilities | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
|
||||||||||||||||||||
Balance at January 1, 2011
|
$ | 1,106 | $ | 5,051 | $ | 197 | $ | 1,642 | $ | 7,996 | ||||||||||
Restructuring charges
|
514 | 1,036 | — | — | 1,550 | |||||||||||||||
Cash payments
|
(1,509 | ) | (1,175 | ) | (197 | ) | (481 | ) | (3,362 | ) | ||||||||||
Adjustment to liability
|
(128 | ) | — | — | (263 | ) | (391 | ) | ||||||||||||
Foreign currency translation
adjustment
|
17 | 2 | — | — | 19 | |||||||||||||||
|
||||||||||||||||||||
Balance at September 30, 2011
|
$ | — | $ | 4,914 | $ | — | $ | 898 | $ | 5,812 | ||||||||||
|
|
|
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenues:
|
||||||||||||||||
Marketing & Events Group:
|
||||||||||||||||
U.S.
|
$ | 116,826 | $ | 125,127 | $ | 498,691 | $ | 438,996 | ||||||||
International
|
38,516 | 38,133 | 159,443 | 144,559 | ||||||||||||
Intersegment eliminations
|
(3,645 | ) | (101 | ) | (7,364 | ) | (7,546 | ) | ||||||||
|
||||||||||||||||
|
151,697 | 163,159 | 650,770 | 576,009 | ||||||||||||
Travel & Recreation Group
|
64,472 | 51,985 | 94,189 | 81,787 | ||||||||||||
|
||||||||||||||||
|
$ | 216,169 | $ | 215,144 | $ | 744,959 | $ | 657,796 | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Segment operating income (loss):
|
||||||||||||||||
Marketing & Events Group:
|
||||||||||||||||
U.S.
|
$ | (17,078 | ) | $ | (9,544 | ) | $ | 1,061 | $ | (11,890 | ) | |||||
International
|
(3,110 | ) | (2,038 | ) | 7,325 | 7,131 | ||||||||||
|
||||||||||||||||
|
(20,188 | ) | (11,582 | ) | 8,386 | (4,759 | ) | |||||||||
Travel & Recreation Group
|
25,600 | 21,501 | 24,147 | 22,602 | ||||||||||||
|
||||||||||||||||
|
5,412 | 9,919 | 32,533 | 17,843 | ||||||||||||
Corporate activities
|
(2,356 | ) | (1,749 | ) | (5,203 | ) | (4,451 | ) | ||||||||
|
||||||||||||||||
|
3,056 | 8,170 | 27,330 | 13,392 | ||||||||||||
Interest income
|
198 | 174 | 588 | 358 | ||||||||||||
Interest expense
|
(373 | ) | (472 | ) | (1,165 | ) | (1,438 | ) | ||||||||
Restructuring charges:
|
||||||||||||||||
Marketing & Events U.S.
|
(75 | ) | (183 | ) | (1,550 | ) | (2,508 | ) | ||||||||
Travel & Recreation Group
|
— | — | — | (235 | ) | |||||||||||
Corporate
|
— | — | — | (52 | ) | |||||||||||
|
||||||||||||||||
Income before income taxes
|
$ | 2,806 | $ | 7,689 | $ | 25,203 | $ | 9,517 | ||||||||
|
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Assets:
|
||||||||
Marketing & Events U.S.
|
$ | 232,212 | $ | 235,965 | ||||
Marketing & Events International
|
86,149 | 83,441 | ||||||
Travel & Recreation Group
|
202,214 | 157,562 | ||||||
Corporate and other
|
104,821 | 139,535 | ||||||
|
||||||||
|
$ | 625,396 | $ | 616,503 | ||||
|
|