UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
 
April 25, 2019
Date of Report (Date of earliest event reported)

 
Viad Corp
(Exact name of registrant as specified in its charter)

Delaware	001-11015	36-1169950	
(State or other jurisdiction	(Commission	(IRS Employer	
of incorporation)	File Number)	Identification No.)	

1850 North Central Avenue, Suite 1900, Phoenix, Arizona	85004-4565	
(Address of principal executive offices)	(Zip Code)	
 
Registrant’s telephone number, including area code: (602) 207-1000
 
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

 

Item 2.02 Results of Operations and Financial Condition.
On April 25, 2019, we issued a press release announcing our earnings for the first quarter ended March 31, 2019. A copy of the earnings press release is furnished as Exhibit 99.1 to this current report.
This press release, including Exhibit 99.1, will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section and it will not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
 Item 9.01 Financial Statements and Exhibits.
 
(d)	Exhibits	
99.1 – Viad Corp Press Release dated April 25, 2019 .

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 	 	Viad Corp	
 	 	(Registrant)	
 	 	 	
April 25, 2019	By:	/s/ Leslie S. Striedel	
 	 	Leslie S. Striedel	
 	 	Chief Accounting Officer	

 
Exhibit 99.1
 
 Viad Corp Reports 2019 First Quarter Results
 
Underlying Business Performance was Stronger than Expected
GES Base Same Show Revenue Grew 4.0%
Pursuit Revenue Grew 9.7%

PHOENIX, April 25, 2019 -- Viad Corp (NYSE: VVI) today announced first quarter 2019 results that reflect stronger than anticipated performance at both GES and Pursuit.    

	 	Q1
2019	 	 	Q1
2018	 	 	y-o-y
Change	 	
$ in millions, except per share data	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	285.6	 	 	$	277.4	 	 	 	2.9	%	
Organic Revenue*	 	 	290.1	 	 	 	277.4	 	 	 	4.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Loss Attributable to Viad	 	$	(17.8	)	 	$	(9.4	)	 	 	-89.4	%	
Loss Before Other Items*	 	 	(10.2	)	 	 	(9.9	)	 	 	-2.8	%	
Loss Before Other Items per Share*	 	 	(0.51	)	 	 	(0.49	)	 	 	-4.1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Segment Operating Loss*	 	$	(11.0	)	 	$	(10.5	)	 	 	-4.7	%	
Adjusted Segment EBITDA*	 	 	2.1	 	 	 	2.5	 	 	 	-15.1	%	

•	Revenue of $285.6 million increased 2.9% ($8.2 million) year-over-year, or 4.6% ($12.7 million) on an organic basis (which excludes the impact of exchange rate variances).  	
 	o	The organic revenue increase primarily reflects same-show growth and new business wins at GES, as well as incremental revenue from Pursuit’s Mount Royal Hotel.	
 	o	Exchange rate variances had an unfavorable impact on revenue of $4.5 million.	
•	The expected declines in adjusted segment EBITDA and adjusted segment operating results were primarily driven by increased costs to support continued growth at Pursuit.	
•	The loss before other items increased primarily due to higher interest expense and lower adjusted segment operating results. The GAAP-basis net loss attributable to Viad for the 2019 first quarter also included a $6.4 million, after-tax, charge related to a legal settlement.	
 
Steve Moster, president and chief executive officer, commented, “We delivered better than expected revenue growth and adjusted segment EBITDA during the first quarter. GES continues to drive growth on a same-show basis as well as from new corporate wins. At Pursuit, we continue to realize the benefits of our revenue management efforts and refresh initiatives, and the team is preparing for a strong peak season with many new expansion projects opening in the coming months.”

 
 
- more -
* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

- Page 2 -
 
GES Results
Moster said, “GES realized stronger than anticipated revenue growth during the first quarter, with U.S. base same-show growth of 4 percent and continued progress from our efforts to increase our share of live event spend from corporate brands.  As we continue our journey to position GES as the preferred, global full-service provider for live events, with a focus on driving growth in higher margin areas, we also remain focused on generating operating efficiencies across the business.  To help ensure we are aligned optimally against our best opportunities, we recently organized the global business under two geographical leaders, one for North America and one for EMEA, who are focused on three strategic themes - Simplify, Grow, and Transform. Accordingly, we are now reporting on the results of each of those geographical segments.”

  	 	Q1
2019	 	 	Q1
2018	 	 	y-o-y
Change	 	
$ in millions	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	274.9	 	 	$	267.7	 	 	 	2.7	%	
North America Organic Revenue*	 	 	224.0	 	 	 	222.1	 	 	 	0.9	%	
EMEA Organic Revenue*	 	 	57.7	 	 	 	48.9	 	 	 	18.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Segment Operating Income*	 	$	1.7	 	 	$	0.6	 	 	**	 	
Adjusted Segment Operating Margin*	 	 	0.6	%	 	 	0.2	%	 	40 bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Segment EBITDA*	 	$	10.9	 	 	$	10.4	 	 	 	4.7	%	
Adjusted Segment EBITDA Margin*	 	 	4.0	%	 	 	3.9	%	 	10 bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Key Performance Indicators:	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. Base Same-Show Revenue Growth (1)	 	 	 	 	 	 	 	 	 	 	4.0	%	
Show Rotation Revenue Change - North America (approx.) (2)	 	 	 	 	 	 	 	 	 	$	(6	)	
Show Rotation Revenue Change - EMEA (approx.) (2)	 	 	 	 	 	 	 	 	 	$	4	 	
 
(1)	Base same-shows are defined as shows produced by GES out of the same U.S. city during the same quarter in both the current year and prior year.  Base same-shows represented 41.7% of GES North America’s organic revenue during the 2019 first quarter.	
(2)	Show rotation refers to shows that take place once every two, three or four years, as well as annual shows that change quarters from one year to the next.	
** Greater than 100%.
 
•	GES revenue of $274.9 million increased 2.7% ($7.2 million) year-over-year.  On an organic basis, which excludes the impact of exchange rate variances, revenue increased 4.2% ($11.3 million).	
 	o	North America organic revenue increased 0.9% ($1.9 million) primarily due to U.S. base same-show growth of 4.0% and growth from corporate clients, partially offset by negative show rotation of approximately $6 million.	
 	o	EMEA organic revenue increased 18.0% ($8.8 million) primarily due to new business wins, underlying growth and positive show rotation of approximately $4 million.	
•	GES adjusted segment operating income of $1.7 million* increased $1.1 million year-over-year, and $1.1 million on an organic basis.	
 	o	North America organic adjusted segment operating income of $0.6 million* increased by $0.7 million primarily due to the increase in revenue.	
 	o	EMEA organic adjusted segment operating income of $1.1 million* increased $0.4 million primarily due to the increase in revenue partially offset by higher compensation expense, including performance-based incentives, as well as the timing of expenses.	
 
- more -
* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

- Page 3 -

Pursuit Results
Moster said, “Pursuit delivered organic revenue growth of 14.6 percent during its seasonally slow first quarter, driven primarily by the Mount Royal Hotel, which continues to perform very well since re-opening in July of last year.  Most of our properties across Pursuit are just beginning to open for the season, and we continue to be on track to open many new experiences over the next few months, including FlyOver Iceland, the West Glacier RV Park and Cabin Village and the fully remodeled, all-inclusive Glacier View Lodge.  We are excited to welcome guests to our new and improved assets during the busy summer tourism season.”

	 	Q1
2019	 	 	Q1
2018	 	 	y-o-y
Change	 	
$ in millions	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	10.7	 	 	$	9.7	 	 	 	9.7	%	
Organic Revenue*	 	 	11.1	 	 	 	9.7	 	 	 	14.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Segment Operating Loss*	 	$	(12.8	)	 	$	(11.2	)	 	 	-14.4	%	
Adjusted Segment Operating Margin*	 	**	 	 	**	 	 	**	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Segment EBITDA*	 	$	(8.8	)	 	$	(7.9	)	 	 	-10.9	%	
Adjusted Segment EBITDA Margin*	 	 	-82.3	%	 	 	-81.4	%	 	-90 bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Key Performance Indicators:	 	 	 	 	 	 	 	 	 	 	 	 	
Same-Store Passengers (1)	 	 	151,166	 	 	 	158,472	 	 	 	-4.6	%	
Same-Store Effective Ticket Price (1)	 	$	23	 	 	$	21	 	 	 	9.5	%	
Same-Store Revenue per Passenger (1)	 	$	31	 	 	$	27	 	 	 	14.8	%	
Same-Store RevPAR (2)	 	$	51	 	 	$	53	 	 	 	(3.8	)%	
Same-Store Room Nights Available (2)	 	 	27,810	 	 	 	27,810	 	 	 	—	 	
(1)	Same-store effective ticket price is calculated as revenue from the sale of attraction tickets divided by the total number of passengers for all comparable Pursuit attractions, expressed on a constant currency basis. Same-store revenue per passenger is a similar measure but also takes into consideration ancillary revenue derived from food and beverage and retail offerings at the comparable attractions.  Comparable attractions are defined as those operated by Pursuit for the entirety of both periods.	
(2)	Same-store RevPAR is calculated as total rooms revenue divided by the total number of room nights available for all comparable Pursuit properties during the periods presented, expressed on a constant currency basis.  Comparable properties are defined as those operated by Pursuit for the entirety of both periods. Accordingly, the measures shown above do not include the Mount Royal Hotel, which was closed from December 2016 through June 2018 due to fire damage.	
** Greater than 100% or 1,000 basis points.
 
•	Pursuit revenue of $10.7 million increased 9.7% ($0.9 million) year-over-year. On an organic basis, which excludes the impact of exchange rate variances, revenue increased 14.6% ($1.4 million) primarily due to the re-opening of the Mount Royal Hotel, as well as continued focus on revenue management and refresh efforts to maximize revenues across our attraction and hotel portfolio.	
•	Pursuit adjusted segment operating loss of $12.8 million* increased $1.6 million year-over-year. On an organic basis, the operating loss of $13.1 million increased $1.9 million primarily due to higher depreciation expense, as well as additional costs to support continued growth initiatives and the timing of certain other expenses.	

 
- more -
* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

- Page 4 -

Cash Flow / Capital Structure

•	Our cash flow from operations was $8.2 million for the 2019 first quarter.	
•	Our capital expenditures for the quarter totaled $19.5 million, comprising $12.4 million for Pursuit and $7.1 million for GES.	
•	Our return of capital totaled $2.0 million for the quarter (which represented quarterly dividends of $0.10 per share).  We had 600,067 shares remaining under our current repurchase authorization at March 31, 2019.	
•	Our debt proceeds (net) totaled $13.9 million for the quarter.	
•	Our cash and cash equivalents were $43.5 million, debt was $251.0 million and our debt-to-capital ratio was 36.6% at March 31, 2019.	
 
Business Outlook
2019 Full Year Guidance
 Moster said, “We are encouraged by our solid start to 2019 and our forecast for the full year remains largely unchanged.  At GES, we are focused on driving continued same-show growth, new business wins, and efficiency gains as we work to improve the margin profile of the business. At Pursuit, we expect another year of profitable growth and we have many expansion projects underway that we expect will deliver strong returns, revenue and margins.  We remain committed to our growth strategies for GES and Pursuit, and to delivering enhanced shareholder value.”

 	•	We expect consolidated revenue to increase at a mid-single digit rate from 2018 full year revenue, driven by growth at both GES and Pursuit.	
 	•	We expect consolidated adjusted segment EBITDA to be in the range of $152.5 million to $158.5 million, as compared to $146.3 million* in 2018.	
•	The outlook for our business units is as follows:	
  	 	GES	 	Pursuit	
$ in millions	 	 	 	 	
Revenue	 	Up low-single digits
(from $1,111 in 2018)	 	Up 15% to 17%
(from $185 in 2018)	
Adjusted Segment EBITDA	 	$76 to $80
(vs. $77.7* in 2018)	 	$76 to $79
(vs. $68.6* in 2018)	
Depreciation & Amortization	 	$37 to $39	 	$22 to $23	
Adjusted Segment Operating Income	 	$38 to $42
(vs. $39.8* in 2018)	 	$53.5 to $56.5
(vs. $49.9* in 2018)	
Capital Expenditures	 	$30 to $33
(inclusive of about $10 for growth projects)	 	$64 to $68
(inclusive of about $50 for growth projects, including FlyOver Las Vegas)	

 
 
- more -
* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

- Page 5 -
 
•	Our guidance assumes that e xchange rates during the remainder of 2019 will approximate $0. 76 U.S. Dollars per Canadian Dollar and $1. 30 U.S. Dollars per British Pound.   As compared to 2018, we expect e xchange rate variances to impact 201 9 full year results as follows:	

  	 	Viad Total	 	 	GES	 	 	Pursuit	 	
 	 	$ in millions, except per share data	 	
Revenue	 	$	(8.5	)	 	$	(7.0	)	 	$	(1.5	)	
Adjusted Segment Operating Income	 	$	(0.5	)	 	$	(0.5	)	 	$	—	 	
Income per Share Before Other Items	 	$	(0.01	)	 	 	 	 	 	 	 	 	
 
 	o	We expect GES show rotation to have a net negative impact on full year revenue of about $25 million versus 2018.  Show rotation refers to shows that occur less frequently than annually, as well as annual shows that shift quarters from one year to the next.	
  	 	Q1 Act.	 	 	Q2 Est.	 	 	Q3 Est.	 	 	Q4 Est.	 	 	FY Est.	 	
Show Rotation Revenue ( $ in millions )	 	$	(2	)	 	$	20	 	 	$	(45	)	 	$	5	 	 	$	(25	)	
 	o	We expect GES U.S. base same-show revenue to increase at a low single digit rate.	
 	o	We expect Pursuit’s 2019 growth to be fueled primarily by investments to support our Refresh, Build, Buy strategy, which are expected to contribute incremental revenue of approximately $15 million to $17 million during 2019.  Additionally, we expect to realize mid- to high-single digit revenue growth across the rest of our attractions and hospitality assets driven by a combination of our revenue management efforts and strong visitation to our iconic destinations.	
 	o	We expect start-up costs related to the development of Pursuit’s FlyOver Iceland attraction, which is expected to open in July 2019, to approximate $1 million during the first six months of 2019.  These costs are not included in the adjusted segment EBITDA or adjusted segment operating income guidance ranges above.	
•	We expect corporate activities expense to approximate $11 million.	
•	We expect our effective tax rate on income before other items to approximate 29%.	
 
2019 Second Quarter Guidance

  	 	 	 	 	 	2019 Guidance	 	
 	 	2018	 	 	Low End	 	 	High End	 	 	FX Impact (1)	 	
 	 	$ in millions, except per share data	 	
Revenue:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES	 	$	315.3	 	 	$	335	 	 	to	 	$	350	 	 	$	(3.0	)	
Pursuit	 	 	48.4	 	 	$	54	 	 	to	 	$	57	 	 	 	(0.5	)	
Adjusted Segment Operating Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES	 	$	29.1	 	*	$	33	 	 	to	 	$	36	 	 	$	—	 	
Pursuit	 	 	10.0	 	*	 	10.0	 	 	to	 	 	12.5	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income per Share Before Other Items	 	$	1.20	 	*	$	1.28	 	 	to	 	$	1.43	 	 	$	(0.01	)	
 
(1)	FX Impact represents the expected effect of year-over-year changes in exchange rates that is incorporated in the low end and high end guidance ranges presented.	
•	We expect GES second quarter results to increase primarily due to positive show rotation revenue of approximately $20 million and new business wins, partially offset by unfavorable exchange rate	
- more -
* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

- Page 6 -
 
	variances. Our operating income guidance reflects higher performance-based incentive expense and additional resources to drive growth and profitability in high-value areas .	
•	We expect Pursuit second quarter revenue to increase primarily due to our refresh efforts and continued focus on revenue management across our attraction and hospitality portfolio.  Our operating income guidance reflects additional costs to support continued growth initiatives.	
 
Conference Call and Web Cast
We will hold a conference call with investors and analysts for a review of first quarter 2019 results on Thursday, April 25, 2019 at 5:00 p.m. (ET). To join the live conference, call (877) 917-8933, passcode “Viad”, or access the webcast through Viad’s Web site at www.viad.com. A replay will be available for a limited time at (866) 396-6249 or (203) 369-0511 (no passcode is required), or visit the Viad Web site and link to a replay of the webcast.
 
About Viad
Viad (NYSE: VVI) generates revenue and shareholder value through two business units: GES and Pursuit. GES is a global, full-service live events company offering a comprehensive range of services to the world's leading brands and event organizers. Pursuit is a collection of inspiring and unforgettable travel experiences in Alaska, Montana, the Canadian Rockies, Vancouver, Reykjavik (opening in July 2019), and Las Vegas (opening in 2021) that includes attractions, lodges and hotels, and sightseeing tours that connect guests with iconic places. Our business strategy focuses on providing superior experiential services to our customers and sustainable returns on invested capital to our shareholders. Viad is an S&P SmallCap 600 company. For more information, visit www.viad.com.
 
Contact
Carrie Long
Investor Relations
(602) 207-2681
ir@viad.com
 
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,” “target,” “outlook,” and similar expressions are intended to identify our forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements.  These forward-looking statements are not historical facts and are subject to a host of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those in the forward-looking statements.

 
- more -
* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

- Page 7 -
 
Important factors that could cause actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the following:
 	•	our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;	
 	•	fluctuations in general economic conditions;	
 	•	our dependence on large exhibition event clients;	
 	•	the importance of key members of our account teams to our business relationships;	
 	•	the competitive nature of the industries in which we operate;	
 	•	travel industry disruptions;	
 	•	unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals of such projects;	
 	•	seasonality of our businesses;	
 	•	transportation disruptions and increases in transportation costs;	
 	•	natural disasters and other catastrophic events;	
 	•	the impact of recent U.S. tax legislation;	
 	•	our multi-employer pension plan funding obligations;	
 	•	our exposure to labor cost increases and work stoppages related to unionized employees;	
 	•	liabilities relating to prior and discontinued operations;	
 	•	adverse effects of show rotation on our periodic results and operating margins;	
 	•	our exposure to currency exchange rate fluctuations; our exposure to cybersecurity attacks and threats;	
 	•	compliance with laws governing the storage, collection, handling, and transfer of personal data and our exposure to legal claims and fines for data breaches or improper handling of such data;	
 	•	the effects of the United Kingdom’s exit from the European Union; and	
 	•	the effects of changes in the U.S. trade policy.	
 
For a more complete discussion of the risks and uncertainties that may affect our business or financial results, please see Item 1A, “Risk Factors,” of our most recent annual report on Form 10-K filed with the SEC. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation.

 
- more -
* Refer to Table Two of this press release for a discussion and reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

- Page 8 -

 
Forward-Looking Non-GAAP Measures
We have provided the following forward-looking non-GAAP financial measures:  Adjusted Segment EBITDA, Adjusted Segment Operating Income and Income Before Other Items. We do not provide quantitative reconciliations of these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because, due to variability and difficulty in developing accurate projections and/or certain information not being ascertainable or accessible, not all of the information necessary to do so is available to us without unreasonable effort. Consequently, any attempt to disclose such reconciliations would imply a degree of precision that could be confusing or misleading to investors. It is probable that our forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

# # #

VIAD CORP AND SUBSIDIARIES
TABLE ONE – QUARTERLY RESULTS
(UNAUDITED)
 
	 	Three months ended March 31,	 	
($ in thousands, except per share data)	 	2019	 	 	2018	 	 	$ Change	 	 	% Change	 	
Revenue:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	$	223,241	 	 	$	222,064	 	 	$	1,177	 	 	0.5%	 	
EMEA	 	 	54,376	 	 	 	48,920	 	 	 	5,456	 	 	11.2%	 	
Intersegment eliminations	 	 	(2,690	)	 	 	(3,278	)	 	 	588	 	 	17.9%	 	
Total GES	 	 	274,927	 	 	 	267,706	 	 	 	7,221	 	 	2.7%	 	
Pursuit	 	 	10,667	 	 	 	9,722	 	 	 	945	 	 	9.7%	 	
Total revenue	 	$	285,594	 	 	$	277,428	 	 	$	8,166	 	 	2.9%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Segment operating income (loss):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
North America	 	$	608	 	 	$	(79	)	 	$	687	 	 	**	 	
EMEA	 	 	1,135	 	 	 	659	 	 	 	476	 	 	72.2%	 	
Total GES	 	 	1,743	 	 	 	580	 	 	 	1,163	 	 	**	 	
Pursuit	 	 	(12,995	)	 	 	(11,395	)	 	 	(1,600	)	 	-14.0%	 	
Segment operating loss	 	 	(11,252	)	 	 	(10,815	)	 	 	(437	)	 	-4.0%	 	
Corporate eliminations	 	 	16	 	 	 	16	 	 	 	—	 	 	0.0%	 	
Corporate activities (Note A)	 	 	(1,833	)	 	 	(2,217	)	 	 	384	 	 	17.3%	 	
Restructuring charges (Note B)	 	 	(688	)	 	 	(162	)	 	 	(526	)	 	**	 	
Legal settlement (Note C)	 	 	(8,500	)	 	 	—	 	 	 	(8,500	)	 	**	 	
Other expense	 	 	(455	)	 	 	(238	)	 	 	(217	)	 	-91.2%	 	
Net interest expense (Note D)	 	 	(2,817	)	 	 	(1,985	)	 	 	(832	)	 	-41.9%	 	
Loss from continuing operations before income taxes	 	 	(25,529	)	 	 	(15,401	)	 	 	(10,128	)	 	-65.8%	 	
Income tax benefit (Note E)	 	 	7,595	 	 	 	4,638	 	 	 	2,957	 	 	63.8%	 	
Loss from continuing operations	 	 	(17,934	)	 	 	(10,763	)	 	 	(7,171	)	 	-66.6%	 	
Income (loss) from discontinued operations (Note F)	 	 	(287	)	 	 	928	 	 	 	(1,215	)	 	**	 	
Net loss	 	 	(18,221	)	 	 	(9,835	)	 	 	(8,386	)	 	-85.3%	 	
Net loss attributable to noncontrolling interest	 	 	420	 	 	 	364	 	 	 	56	 	 	15.4%	 	
Net loss attributable to redeemable noncontrolling interest	 	 	24	 	 	 	84	 	 	 	(60	)	 	-71.4%	 	
Net loss attributable to Viad	 	$	(17,777	)	 	$	(9,387	)	 	$	(8,390	)	 	-89.4%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amounts Attributable to Viad Common Stockholders:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations	 	$	(17,490	)	 	$	(10,315	)	 	$	(7,175	)	 	-69.6%	 	
Income (loss) from discontinued operations (Note F)	 	 	(287	)	 	 	928	 	 	 	(1,215	)	 	**	 	
Net loss	 	$	(17,777	)	 	$	(9,387	)	 	$	(8,390	)	 	-89.4%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted loss per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations attributable to Viad common shareholders	 	$	(0.88	)	 	$	(0.51	)	 	$	(0.37	)	 	-72.5%	 	
Income (loss) from discontinued operations attributable to Viad common shareholders	 	 	(0.01	)	 	 	0.04	 	 	 	(0.05	)	 	**	 	
Net loss attributable to Viad common shareholders	 	$	(0.89	)	 	$	(0.47	)	 	$	(0.42	)	 	-89.4%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic loss per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations attributable to Viad common shareholders	 	$	(0.88	)	 	$	(0.51	)	 	$	(0.37	)	 	-72.5%	 	
Income (loss) from discontinued operations attributable to Viad common shareholders	 	 	(0.01	)	 	 	0.04	 	 	 	(0.05	)	 	**	 	
Net loss attributable to Viad common shareholders	 	$	(0.89	)	 	$	(0.47	)	 	$	(0.42	)	 	-89.4%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common shares treated as outstanding for loss per share calculations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average outstanding common shares	 	 	20,076	 	 	 	20,207	 	 	 	(131	)	 	-0.6%	 	
Weighted-average outstanding and potentially dilutive common shares	 	 	20,076	 	 	 	20,207	 	 	 	(131	)	 	-0.6%	 	
** Change is greater than +/- 100 percent

 

VIAD CORP AND SUBSIDIARIES
TABLE ONE – NOTES TO QUARTERLY RESULTS
(UNAUDITED)

(A)	Corporate Activities — The decrease in corporate activities expense for the three months ended March 31, 2019 relative to 2018 was primarily due to a gain on sale of corporate fixed assets, offset in part by an increase in performance-based compensation expense.	
(B)	Restructuring Charges — During the three months ended March 31, 2019, we recorded restructuring charges primarily related to the elimination of certain positions at GES. During the three months ended March 31, 2018, we recorded restructuring charges primarily related to the elimination of certain positions at Pursuit.	
(C)	Legal Settlement — During the three months ended March 31, 2019, we recorded a charge related to a legal settlement at GES involving a former industry contractor.	
(D)	Net Interest Expense — The increase in net interest expense for the three months ended March 31, 2019 relative to 2018 was primarily due to higher debt balances and interest rates in 2019.	
(E)	Income Taxes — Income taxes were at an effective tax rate of 30% for the three months ended March 31, 2019 and March 31, 2018.	
(F)	Income (Loss) from Discontinued Operations — The loss from discontinued operations for the three months ended March 31, 2019 was primarily related to legal expenses associated with previously sold operations.  The income from discontinued operations for the three months ended March 31, 2018 was primarily related to a favorable legal settlement related to previously sold operations.	

	 	Three months ended March 31,	 	
($ in thousands, except per share data)	 	2019	 	 	2018	 	 	$ Change	 	 	% Change	 	
Net loss attributable to Viad	 	$	(17,777	)	 	$	(9,387	)	 	$	(8,390	)	 	-89.4%	 	
Less: Allocation to nonvested shares	 	 	—	 	 	 	—	 	 	 	—	 	 	**	 	
Adjustment to the redemption value of redeemable noncontrolling interest	 	 	(87	)	 	 	(38	)	 	 	(49	)	 	**	 	
Net loss allocated to Viad common shareholders	 	$	(17,864	)	 	$	(9,425	)	 	$	(8,439	)	 	-89.5%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-average outstanding common shares	 	 	20,076	 	 	 	20,207	 	 	 	(131	)	 	-0.6%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic loss per common share attributable to Viad common shareholders	 	$	(0.89	)	 	$	(0.47	)	 	$	(0.42	)	 	-89.4%	 	
** Change is greater than +/- 100 percent

 
VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
IMPORTANT DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
This document includes the presentation of “Income/(Loss) Before Other Items”, “Adjusted EBITDA”, “Adjusted Segment EBITDA” and “Adjusted Segment Operating Income/(Loss)”, which are supplemental to results presented under accounting principles generally accepted in the United States of America (“GAAP”) and may not be comparable to similarly titled measures presented by other companies.  These non-GAAP measures are utilized by management to facilitate period-to-period comparisons and analysis of Viad’s operating performance and should be considered in addition to, but not as substitutes for, other similar measures reported in accordance with GAAP.  The use of these non-GAAP financial measures is limited, compared to the GAAP measure of net income attributable to Viad, because they do not consider a variety of items affecting Viad’s consolidated financial performance as reconciled below.  Because these non-GAAP measures do not consider all items affecting Viad’s consolidated financial performance, a user of Viad’s financial information should consider net income attributable to Viad as an important measure of financial performance because it provides a more complete measure of the Company’s performance.
Income/(Loss) Before Other Items and Adjusted Segment Operating Income/(Loss) are considered useful operating metrics, in addition to net income attributable to Viad, as potential variations arising from non-operational expenses/income are eliminated, thus resulting in additional measures considered to be indicative of Viad’s performance. Management believes that the presentation of Adjusted EBITDA and Adjusted Segment EBITDA provide useful information to investors regarding Viad’s results of operations for trending, analyzing and benchmarking the performance and value of Viad’s business.  Management also believes that the presentation of Adjusted Segment EBITDA for acquisitions and other major capital projects enables investors to assess how effectively management is investing capital into major corporate development projects, both from a valuation and return perspective.

	 	Three months ended March 31,	 	
($ in thousands)	 	2019	 	 	2018	 	 	$ Change	 	 	% Change	 	
Loss before other items:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Viad	 	$	(17,777	)	 	$	(9,387	)	 	$	(8,390	)	 	-89.4%	 	
(Income) loss from discontinued operations attributable to Viad	 	 	287	 	 	 	(928	)	 	 	1,215	 	 	**	 	
Loss from continuing operations attributable to Viad	 	 	(17,490	)	 	 	(10,315	)	 	 	(7,175	)	 	-69.6%	 	
Restructuring charges, pre-tax	 	 	688	 	 	 	162	 	 	 	526	 	 	**	 	
Legal settlement, pre-tax	 	 	8,500	 	 	 	—	 	 	 	8,500	 	 	**	 	
Acquisition-related costs and other non-recurring expenses, pre-tax (Note A)	 	 	537	 	 	 	440	 	 	 	97	 	 	22.0%	 	
Tax expense on above items	 	 	(2,419	)	 	 	(133	)	 	 	(2,286	)	 	**	 	
Net loss attributable to FlyOver Iceland noncontrolling interest	 	 	(24	)	 	 	(84	)	 	 	60	 	 	71.4%	 	
Loss before other items	 	$	(10,208	)	 	$	(9,930	)	 	$	(278	)	 	-2.8%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(per diluted share)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss before other items:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Viad	 	$	(0.89	)	 	$	(0.47	)	 	$	(0.42	)	 	-89.4%	 	
(Income) loss from discontinued operations attributable to Viad	 	 	0.01	 	 	 	(0.04	)	 	 	0.05	 	 	**	 	
Loss from continuing operations attributable to Viad	 	 	(0.88	)	 	 	(0.51	)	 	 	(0.37	)	 	-72.5%	 	
Restructuring charges, pre-tax	 	 	0.03	 	 	 	0.01	 	 	 	0.02	 	 	**	 	
Legal settlement, pre-tax	 	 	0.42	 	 	 	—	 	 	 	0.42	 	 	**	 	
Acquisition-related costs and other non-recurring expenses, pre-tax (Note A)	 	 	0.03	 	 	 	0.02	 	 	 	0.01	 	 	50.0%	 	
Tax expense on above items	 	 	(0.11	)	 	 	(0.01	)	 	 	(0.10	)	 	**	 	
Net loss attributable to FlyOver Iceland noncontrolling interest	 	 	—	 	 	 	—	 	 	 	—	 	 	**	 	
Loss before other items	 	$	(0.51	)	 	$	(0.49	)	 	$	(0.02	)	 	-4.1%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
($ in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Viad	 	$	(17,777	)	 	$	(9,387	)	 	$	(8,390	)	 	-89.4%	 	
(Income) loss from discontinued operations attributable to Viad	 	 	287	 	 	 	(928	)	 	 	1,215	 	 	**	 	
Interest expense	 	 	2,915	 	 	 	2,069	 	 	 	846	 	 	40.9%	 	
Income tax benefit	 	 	(7,595	)	 	 	(4,638	)	 	 	(2,957	)	 	-63.8%	 	
Depreciation and amortization	 	 	13,188	 	 	 	13,063	 	 	 	125	 	 	1.0%	 	
Other noncontrolling interest	 	 	55	 	 	 	72	 	 	 	(17	)	 	-23.6%	 	
Adjusted EBITDA	 	$	(8,927	)	 	$	251	 	 	$	(9,178	)	 	**	 	
 
** Change is greater than +/- 100 percent

 

 

 

 
VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

(A)	Acquisition-related costs and other non-recurring expenses include:	
	 	Three months ended March 31,	 	
 	 	2019	 	 	2018	 	 	$ Change	 	 	% Change	 	
Acquisition integration costs - GES 1	 	$	—	 	 	$	61	 	 	$	(61	)	 	-100.0%	 	
Acquisition transaction-related costs - Pursuit 1	 	 	185	 	 	 	12	 	 	 	173	 	 	**	 	
Acquisition transaction-related costs - Corporate 2	 	 	295	 	 	 	136	 	 	 	159	 	 	**	 	
FlyOver Iceland start-up costs 1	 	 	57	 	 	 	231	 	 	 	(174	)	 	-75.3%	 	
Acquisition-related and other non-recurring expenses, pre-tax	 	$	537	 	 	$	440	 	 	$	97	 	 	22.0%	 	
 
1 Included in segment operating income (loss)
2 Included in corporate activities
** Change is greater than +/- 100 percent

 
VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
 
Organic - The term “organic” is used within this document to refer to results without the impact of exchange rate variances and acquisitions, if any, until such acquisitions are included in the entirety of both comparable periods.  The impact of exchange rate variances (or “FX Impact”) is calculated as the difference between current period activity translated at the current period’s exchange rates and the comparable prior period’s exchange rates.  Management believes that the presentation of “organic” results permits investors to better understand Viad’s performance without the effects of exchange rate variances or acquisitions.

	 	Three months ended March 31, 2019	 	 	Three months ended March 31, 2018	 	
($ in thousands)	 	As Reported	 	 	Acquisitions
(Note A)	 	 	FX Impact	 	 	Organic	 	 	As Reported	 	 	Acquisitions
(Note A)	 	 	Organic	 	
Viad Consolidated:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	285,594	 	 	$	—	 	 	$	(4,525	)	 	$	290,119	 	 	$	277,428	 	 	$	—	 	 	$	277,428	 	
Net loss attributable to Viad	 	$	(17,777	)	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(9,387	)	 	 	 	 	 	 	 	 	
Net loss attributable to noncontrolling interest	 	 	(420	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(364	)	 	 	 	 	 	 	 	 	
Net loss attributable to redeemable noncontrolling interest	 	 	(24	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(84	)	 	 	 	 	 	 	 	 	
(Income) loss from discontinued operations	 	 	287	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(928	)	 	 	 	 	 	 	 	 	
Income tax benefit	 	 	(7,595	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(4,638	)	 	 	 	 	 	 	 	 	
Net interest expense	 	 	2,817	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,985	 	 	 	 	 	 	 	 	 	
Other expense	 	 	455	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	238	 	 	 	 	 	 	 	 	 	
Legal settlement	 	 	8,500	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	
Restructuring charges	 	 	688	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	162	 	 	 	 	 	 	 	 	 	
Corporate activities expense	 	 	1,833	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,217	 	 	 	 	 	 	 	 	 	
Corporate eliminations	 	 	(16	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(16	)	 	 	 	 	 	 	 	 	
Segment operating loss	 	$	(11,252	)	 	$	—	 	 	$	354	 	 	$	(11,606	)	 	$	(10,815	)	 	$	—	 	 	$	(10,815	)	
FlyOver Iceland start-up costs	 	 	57	 	 	 	—	 	 	 	—	 	 	 	57	 	 	 	231	 	 	 	—	 	 	 	231	 	
Integration costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	61	 	 	 	—	 	 	 	61	 	
Acquisition transaction-related costs	 	 	185	 	 	 	—	 	 	 	(7	)	 	 	192	 	 	 	12	 	 	 	—	 	 	 	12	 	
Adjusted segment operating loss	 	 	(11,010	)	 	 	—	 	 	 	347	 	 	 	(11,357	)	 	 	(10,511	)	 	 	—	 	 	 	(10,511	)	
Segment depreciation	 	 	10,057	 	 	 	—	 	 	 	(217	)	 	 	10,274	 	 	 	10,319	 	 	 	—	 	 	 	10,319	 	
Segment amortization	 	 	3,073	 	 	 	—	 	 	 	(32	)	 	 	3,105	 	 	 	2,688	 	 	 	—	 	 	 	2,688	 	
Adjusted Segment EBITDA	 	$	2,120	 	 	$	—	 	 	$	98	 	 	$	2,022	 	 	$	2,496	 	 	$	—	 	 	$	2,496	 	
Adjusted segment operating margin	 	 	-3.9	%	 	 	 	 	 	 	-7.7	%	 	 	-3.9	%	 	 	-3.8	%	 	 	 	 	 	 	-3.8	%	
Adjusted segment EBITDA margin	 	 	0.7	%	 	 	 	 	 	 	-2.2	%	 	 	0.7	%	 	 	0.9	%	 	 	 	 	 	 	0.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	274,927	 	 	$	—	 	 	$	(4,051	)	 	$	278,978	 	 	$	267,706	 	 	$	—	 	 	$	267,706	 	
Segment operating income	 	$	1,743	 	 	$	—	 	 	$	25	 	 	$	1,718	 	 	$	580	 	 	$	—	 	 	$	580	 	
Integration costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	61	 	 	 	—	 	 	 	61	 	
Adjusted segment operating income	 	 	1,743	 	 	 	—	 	 	 	25	 	 	 	1,718	 	 	 	641	 	 	 	—	 	 	 	641	 	
Depreciation	 	 	6,389	 	 	 	—	 	 	 	(90	)	 	 	6,479	 	 	 	7,352	 	 	 	—	 	 	 	7,352	 	
Amortization	 	 	2,766	 	 	 	—	 	 	 	(19	)	 	 	2,785	 	 	 	2,415	 	 	 	—	 	 	 	2,415	 	
Adjusted Segment EBITDA	 	$	10,898	 	 	$	—	 	 	$	(84	)	 	$	10,982	 	 	$	10,408	 	 	$	—	 	 	$	10,408	 	
Adjusted segment operating margin	 	 	0.6	%	 	 	 	 	 	 	-0.6	%	 	 	0.6	%	 	 	0.2	%	 	 	 	 	 	 	0.2	%	
Adjusted segment EBITDA margin	 	 	4.0	%	 	 	 	 	 	 	2.1	%	 	 	3.9	%	 	 	3.9	%	 	 	 	 	 	 	3.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES North America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	223,241	 	 	$	—	 	 	$	(717	)	 	$	223,958	 	 	$	222,064	 	 	$	—	 	 	$	222,064	 	
Segment operating income (loss)	 	$	608	 	 	$	—	 	 	$	(28	)	 	$	636	 	 	$	(79	)	 	$	—	 	 	$	(79	)	
Integration costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	61	 	 	 	—	 	 	 	61	 	
Adjusted segment operating income (loss)	 	 	608	 	 	 	—	 	 	 	(28	)	 	 	636	 	 	 	(18	)	 	 	—	 	 	 	(18	)	
Depreciation	 	 	5,098	 	 	 	—	 	 	 	(13	)	 	 	5,111	 	 	 	5,748	 	 	 	—	 	 	 	5,748	 	
Amortization	 	 	2,495	 	 	 	—	 	 	 	—	 	 	 	2,495	 	 	 	2,094	 	 	 	—	 	 	 	2,094	 	
Adjusted Segment EBITDA	 	$	8,201	 	 	$	—	 	 	$	(41	)	 	$	8,242	 	 	$	7,824	 	 	$	—	 	 	$	7,824	 	
Adjusted segment operating margin	 	 	0.3	%	 	 	 	 	 	 	3.9	%	 	 	0.3	%	 	 	0.0	%	 	 	 	 	 	 	0.0	%	
Adjusted segment EBITDA margin	 	 	3.7	%	 	 	 	 	 	 	5.7	%	 	 	3.7	%	 	 	3.5	%	 	 	 	 	 	 	3.5	%	

 

VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
 
	 	Three months ended March 31, 2019	 	 	Three months ended March 31, 2018	 	
($ in thousands)	 	As Reported	 	 	Acquisitions
(Note A)	 	 	FX Impact	 	 	Organic	 	 	As Reported	 	 	Acquisitions
(Note A)	 	 	Organic	 	
GES EMEA:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	54,376	 	 	$	—	 	 	$	(3,334	)	 	$	57,710	 	 	$	48,920	 	 	$	—	 	 	$	48,920	 	
Segment operating income	 	$	1,135	 	 	$	—	 	 	$	53	 	 	$	1,082	 	 	$	659	 	 	$	—	 	 	$	659	 	
Integration costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
Adjusted segment operating income	 	 	1,135	 	 	 	—	 	 	 	53	 	 	 	1,082	 	 	 	659	 	 	 	—	 	 	 	659	 	
Depreciation	 	 	1,291	 	 	 	—	 	 	 	(77	)	 	 	1,368	 	 	 	1,604	 	 	 	—	 	 	 	1,604	 	
Amortization	 	 	271	 	 	 	—	 	 	 	(19	)	 	 	290	 	 	 	321	 	 	 	—	 	 	 	321	 	
Adjusted Segment EBITDA	 	$	2,697	 	 	$	—	 	 	$	(43	)	 	$	2,740	 	 	$	2,584	 	 	$	—	 	 	$	2,584	 	
Adjusted segment operating margin	 	 	2.1	%	 	 	 	 	 	 	-1.6	%	 	 	1.9	%	 	 	1.3	%	 	 	 	 	 	 	1.3	%	
Adjusted segment EBITDA margin	 	 	5.0	%	 	 	 	 	 	 	1.3	%	 	 	4.7	%	 	 	5.3	%	 	 	 	 	 	 	5.3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pursuit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	10,667	 	 	$	—	 	 	$	(474	)	 	$	11,141	 	 	$	9,722	 	 	$	—	 	 	$	9,722	 	
Segment operating loss	 	$	(12,995	)	 	$	—	 	 	$	329	 	 	$	(13,324	)	 	$	(11,395	)	 	$	—	 	 	$	(11,395	)	
Integration costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
Acquisition transaction-related costs	 	 	185	 	 	 	—	 	 	 	(7	)	 	 	192	 	 	 	12	 	 	 	—	 	 	 	12	 	
FlyOver Iceland start-up costs	 	 	57	 	 	 	—	 	 	 	—	 	 	 	57	 	 	 	231	 	 	 	—	 	 	 	231	 	
Adjusted segment operating loss	 	 	(12,753	)	 	 	—	 	 	 	322	 	 	 	(13,075	)	 	 	(11,152	)	 	 	—	 	 	 	(11,152	)	
Depreciation	 	 	3,668	 	 	 	—	 	 	 	(127	)	 	 	3,795	 	 	 	2,967	 	 	 	—	 	 	 	2,967	 	
Amortization	 	 	307	 	 	 	—	 	 	 	(13	)	 	 	320	 	 	 	273	 	 	 	—	 	 	 	273	 	
Adjusted Segment EBITDA	 	$	(8,778	)	 	$	—	 	 	$	182	 	 	$	(8,960	)	 	$	(7,912	)	 	$	—	 	 	$	(7,912	)	
Adjusted segment operating margin	 	**	 	 	 	 	 	 	 	-67.9	%	 	**	 	 	**	 	 	 	 	 	 	**	 	
Adjusted segment EBITDA margin	 	 	-82.3	%	 	 	 	 	 	 	-38.4	%	 	 	-80.4	%	 	 	-81.4	%	 	 	 	 	 	 	-81.4	%	
 
** Greater than +/- 100 percent

(A)	No acquisitions were completed during the three months ended March 31, 2019 or the year ended December 31, 2018.	

 

VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
ADDITIONAL NON-GAAP FINANCIAL MEASURES
 
(per diluted share)	 	2018	 	
Income (loss) before other items:	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	Full Year	 	
Net income (loss) attributable to Viad	 	$	(0.47	)	 	$	1.15	 	 	$	1.83	 	 	$	(0.12	)	 	$	2.40	 	
(Income) loss from discontinued operations attributable to Viad	 	 	(0.04	)	 	 	0.01	 	 	 	0.01	 	 	 	(0.05	)	 	 	(0.07	)	
Income (loss) from continuing operations attributable to Viad	 	 	(0.51	)	 	 	1.16	 	 	 	1.84	 	 	 	(0.17	)	 	 	2.33	 	
Restructuring charges, pre-tax	 	 	0.01	 	 	 	0.03	 	 	 	0.01	 	 	 	0.03	 	 	 	0.08	 	
Acquisition-related costs and other non-recurring expenses, pre-tax	 	 	0.02	 	 	 	0.02	 	 	 	0.03	 	 	 	0.01	 	 	 	0.08	 	
Tax benefit on above items	 	 	(0.01	)	 	 	(0.01	)	 	 	—	 	 	 	(0.01	)	 	 	(0.03	)	
Adjustment related to Tax Reform	 	 	—	 	 	 	—	 	 	 	(0.15	)	 	 	—	 	 	 	(0.15	)	
Unfavorable tax matters	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.05	 	 	 	0.05	 	
Net loss attributable to FlyOver Iceland noncontrolling interest	 	 	—	 	 	 	—	 	 	 	(0.01	)	 	 	—	 	 	 	(0.02	)	
Income (loss) before other items	 	$	(0.49	)	 	$	1.20	 	 	$	1.72	 	 	$	(0.09	)	 	$	2.34	 	

	 	Q2 2018	 	 	 	 	FY 2018	 	
Adjusted segment operating income and adjusted segment EBITDA:	 	GES	 	 	Pursuit	 	 	Viad	 	 	 	 	GES	 	 	Pursuit	 	 	Viad	 	
Net income attributable to Viad	 	 	 	 	 	 	 	 	 	$	23,490	 	 	 	 	 	 	 	 	 	 	 	 	$	49,170	 	
Net income (loss) attributable to noncontrolling interest	 	 	 	 	 	 	 	 	 	 	(33	)	 	 	 	 	 	 	 	 	 	 	 	 	542	 	
Net loss attributable to redeemable noncontrolling interest	 	 	 	 	 	 	 	 	 	 	(77	)	 	 	 	 	 	 	 	 	 	 	 	 	(317	)	
(Income) loss from discontinued operations	 	 	 	 	 	 	 	 	 	 	279	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,481	)	
Income tax expense	 	 	 	 	 	 	 	 	 	 	9,114	 	 	 	 	 	 	 	 	 	 	 	 	 	17,095	 	
Net interest expense	 	 	 	 	 	 	 	 	 	 	2,301	 	 	 	 	 	 	 	 	 	 	 	 	 	9,286	 	
Other expense, pre-tax	 	 	 	 	 	 	 	 	 	 	543	 	 	 	 	 	 	 	 	 	 	 	 	 	1,744	 	
Impairment recoveries, pre-tax	 	 	 	 	 	 	 	 	 	 	(35	)	 	 	 	 	 	 	 	 	 	 	 	 	(35	)	
Restructuring charges, pre-tax	 	 	 	 	 	 	 	 	 	 	662	 	 	 	 	 	 	 	 	 	 	 	 	 	1,587	 	
Corporate activities expense	 	 	 	 	 	 	 	 	 	 	2,535	 	 	 	 	 	 	 	 	 	 	 	 	 	10,993	 	
Corporate eliminations	 	 	 	 	 	 	 	 	 	 	(17	)	 	 	 	 	 	 	 	 	 	 	 	 	(67	)	
Segment operating income	 	$	29,005	 	 	$	9,757	 	 	$	38,762	 	 	 	 	$	39,602	 	 	$	48,915	 	 	$	88,517	 	
FlyOver Iceland start-up costs	 	 	—	 	 	 	206	 	 	 	206	 	 	 	 	 	—	 	 	 	862	 	 	 	862	 	
Integration costs	 	 	69	 	 	 	—	 	 	 	69	 	 	 	 	 	155	 	 	 	—	 	 	 	155	 	
Acquisition transaction-related costs	 	 	—	 	 	 	56	 	 	 	56	 	 	 	 	 	—	 	 	 	136	 	 	 	136	 	
Adjusted segment operating income	 	 	29,074	 	 	 	10,019	 	 	 	39,093	 	 	 	 	 	39,757	 	 	 	49,913	 	 	 	89,670	 	
Segment depreciation	 	 	7,268	 	 	 	4,939	 	 	 	12,207	 	 	 	 	 	28,456	 	 	 	17,167	 	 	 	45,623	 	
Segment amortization	 	 	2,400	 	 	 	452	 	 	 	2,852	 	 	 	 	 	9,470	 	 	 	1,523	 	 	 	10,993	 	
Adjusted segment EBITDA	 	$	38,742	 	 	$	15,410	 	 	$	54,152	 	 	 	 	$	77,683	 	 	$	68,603	 	 	$	146,286	 	

 

 
VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

	 	2018	 	
($ in thousands)	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	Full Year	 	
Viad Consolidated:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	277,428	 	 	$	363,677	 	 	$	358,163	 	 	$	296,916	 	 	$	1,296,184	 	
Net income (loss) attributable to Viad	 	$	(9,387	)	 	$	23,490	 	 	$	37,389	 	 	$	(2,322	)	 	$	49,170	 	
Net income (loss) attributable to noncontrolling interest	 	 	(364	)	 	 	(33	)	 	 	1,287	 	 	 	(348	)	 	 	542	 	
Net loss attributable to redeemable noncontrolling interest	 	 	(84	)	 	 	(77	)	 	 	(128	)	 	 	(28	)	 	 	(317	)	
(Income) loss from discontinued operations	 	 	(928	)	 	 	279	 	 	 	246	 	 	 	(1,078	)	 	 	(1,481	)	
Income tax expense (benefit)	 	 	(4,638	)	 	 	9,114	 	 	 	10,806	 	 	 	1,813	 	 	 	17,095	 	
Net interest expense	 	 	1,985	 	 	 	2,301	 	 	 	2,507	 	 	 	2,493	 	 	 	9,286	 	
Other expense	 	 	238	 	 	 	543	 	 	 	527	 	 	 	436	 	 	 	1,744	 	
Impairment recoveries	 	 	—	 	 	 	(35	)	 	 	—	 	 	 	—	 	 	 	(35	)	
Restructuring charges	 	 	162	 	 	 	662	 	 	 	175	 	 	 	588	 	 	 	1,587	 	
Corporate activities expense	 	 	2,217	 	 	 	2,535	 	 	 	3,777	 	 	 	2,464	 	 	 	10,993	 	
Corporate eliminations	 	 	(16	)	 	 	(17	)	 	 	(18	)	 	 	(16	)	 	 	(67	)	
Segment operating income (loss)	 	$	(10,815	)	 	$	38,762	 	 	$	56,568	 	 	$	4,002	 	 	$	88,517	 	
FlyOver Iceland start-up costs	 	 	231	 	 	 	206	 	 	 	351	 	 	 	74	 	 	 	862	 	
Integration costs	 	 	61	 	 	 	69	 	 	 	25	 	 	 	—	 	 	 	155	 	
Acquisition transaction-related costs	 	 	12	 	 	 	56	 	 	 	29	 	 	 	39	 	 	 	136	 	
Adjusted segment operating income (loss)	 	 	(10,511	)	 	 	39,093	 	 	 	56,973	 	 	 	4,115	 	 	 	89,670	 	
Segment depreciation	 	 	10,319	 	 	 	12,207	 	 	 	13,233	 	 	 	9,864	 	 	 	45,623	 	
Segment amortization	 	 	2,688	 	 	 	2,852	 	 	 	2,896	 	 	 	2,557	 	 	 	10,993	 	
Adjusted Segment EBITDA	 	$	2,496	 	 	$	54,152	 	 	$	73,102	 	 	$	16,536	 	 	$	146,286	 	
Adjusted segment operating margin	 	 	-3.8	%	 	 	10.7	%	 	 	15.9	%	 	 	1.4	%	 	 	6.9	%	
Adjusted segment EBITDA margin	 	 	0.9	%	 	 	14.9	%	 	 	20.4	%	 	 	5.6	%	 	 	11.3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	267,706	 	 	$	315,322	 	 	$	246,110	 	 	$	281,759	 	 	$	1,110,897	 	
Segment operating income	 	$	580	 	 	$	29,005	 	 	$	1,160	 	 	$	8,857	 	 	$	39,602	 	
Integration costs	 	 	61	 	 	 	69	 	 	 	25	 	 	 	—	 	 	 	155	 	
Adjusted segment operating income	 	 	641	 	 	 	29,074	 	 	 	1,185	 	 	 	8,857	 	 	 	39,757	 	
Depreciation	 	 	7,352	 	 	 	7,268	 	 	 	7,077	 	 	 	6,759	 	 	 	28,456	 	
Amortization	 	 	2,415	 	 	 	2,400	 	 	 	2,354	 	 	 	2,301	 	 	 	9,470	 	
Adjusted Segment EBITDA	 	$	10,408	 	 	$	38,742	 	 	$	10,616	 	 	$	17,917	 	 	$	77,683	 	
Adjusted segment operating margin	 	 	0.2	%	 	 	9.2	%	 	 	0.5	%	 	 	3.1	%	 	 	3.6	%	
Adjusted segment EBITDA margin	 	 	3.9	%	 	 	12.3	%	 	 	4.3	%	 	 	6.4	%	 	 	7.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES North America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	222,064	 	 	$	260,891	 	 	$	200,855	 	 	$	225,980	 	 	$	909,790	 	
Segment operating income (loss)	 	$	(79	)	 	$	23,767	 	 	$	1,367	 	 	$	4,926	 	 	$	29,981	 	
Integration costs	 	 	61	 	 	 	69	 	 	 	25	 	 	 	—	 	 	 	155	 	
Adjusted segment operating income (loss)	 	 	(18	)	 	 	23,836	 	 	 	1,392	 	 	 	4,926	 	 	 	30,136	 	
Depreciation	 	 	5,748	 	 	 	5,751	 	 	 	5,577	 	 	 	5,505	 	 	 	22,581	 	
Amortization	 	 	2,094	 	 	 	2,095	 	 	 	2,060	 	 	 	2,026	 	 	 	8,275	 	
Adjusted Segment EBITDA	 	$	7,824	 	 	$	31,682	 	 	$	9,029	 	 	$	12,457	 	 	$	60,992	 	
Adjusted segment operating margin	 	 	0.0	%	 	 	9.1	%	 	 	0.7	%	 	 	2.2	%	 	 	3.3	%	
Adjusted segment EBITDA margin	 	 	3.5	%	 	 	12.1	%	 	 	4.5	%	 	 	5.5	%	 	 	6.7	%	

 

VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

  	 	2018	 	
($ in thousands)	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	Full Year	 	
GES EMEA:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	48,920	 	 	$	60,662	 	 	$	47,634	 	 	$	61,031	 	 	$	218,247	 	
Segment operating income (loss)	 	$	659	 	 	$	5,238	 	 	$	(207	)	 	$	3,931	 	 	$	9,621	 	
Integration costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
Adjusted segment operating income (loss)	 	 	659	 	 	 	5,238	 	 	 	(207	)	 	 	3,931	 	 	 	9,621	 	
Depreciation	 	 	1,604	 	 	 	1,517	 	 	 	1,500	 	 	 	1,254	 	 	 	5,875	 	
Amortization	 	 	321	 	 	 	305	 	 	 	294	 	 	 	275	 	 	 	1,195	 	
Adjusted Segment EBITDA	 	$	2,584	 	 	$	7,060	 	 	$	1,587	 	 	$	5,460	 	 	$	16,691	 	
Adjusted segment operating margin	 	 	1.3	%	 	 	8.6	%	 	 	-0.4	%	 	 	6.4	%	 	 	4.4	%	
Adjusted segment EBITDA margin	 	 	5.3	%	 	 	11.6	%	 	 	3.3	%	 	 	8.9	%	 	 	7.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pursuit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	9,722	 	 	$	48,355	 	 	$	112,053	 	 	$	15,157	 	 	$	185,287	 	
Segment operating income (loss)	 	$	(11,395	)	 	$	9,757	 	 	$	55,408	 	 	$	(4,855	)	 	$	48,915	 	
Integration costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
Acquisition transaction-related costs	 	 	12	 	 	 	56	 	 	 	29	 	 	 	39	 	 	 	136	 	
FlyOver Iceland start-up costs	 	 	231	 	 	 	206	 	 	 	351	 	 	 	74	 	 	 	862	 	
Adjusted segment operating income (loss)	 	 	(11,152	)	 	 	10,019	 	 	 	55,788	 	 	 	(4,742	)	 	 	49,913	 	
Depreciation	 	 	2,967	 	 	 	4,939	 	 	 	6,156	 	 	 	3,105	 	 	 	17,167	 	
Amortization	 	 	273	 	 	 	452	 	 	 	542	 	 	 	256	 	 	 	1,523	 	
Adjusted Segment EBITDA	 	$	(7,912	)	 	$	15,410	 	 	$	62,486	 	 	$	(1,381	)	 	$	68,603	 	
Adjusted segment operating margin	 	**	 	 	 	20.7	%	 	 	49.8	%	 	 	-31.3	%	 	 	26.9	%	
Adjusted segment EBITDA margin	 	 	-81.4	%	 	 	31.9	%	 	 	55.8	%	 	 	-9.1	%	 	 	37.0	%	
 
** Greater than +/- 100 percent

 
VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
 
	 	2017	 	
($ in thousands)	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	Full Year	 	
Viad Consolidated:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	325,807	 	 	$	364,774	 	 	$	339,099	 	 	$	277,285	 	 	$	1,306,965	 	
Net income (loss) attributable to Viad	 	$	6,777	 	 	$	27,947	 	 	$	44,657	 	 	$	(21,674	)	 	$	57,707	 	
Net income (loss) attributable to noncontrolling interest	 	 	(264	)	 	 	(73	)	 	 	1,084	 	 	 	(224	)	 	 	523	 	
Net loss attributable to redeemable noncontrolling interest	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(46	)	 	 	(46	)	
(Income) loss from discontinued operations	 	 	816	 	 	 	(509	)	 	 	101	 	 	 	(140	)	 	 	268	 	
Income tax expense	 	 	2,741	 	 	 	10,178	 	 	 	20,010	 	 	 	12,969	 	 	 	45,898	 	
Net interest expense	 	 	2,047	 	 	 	2,017	 	 	 	2,043	 	 	 	1,878	 	 	 	7,985	 	
Other expense	 	 	452	 	 	 	222	 	 	 	248	 	 	 	1,106	 	 	 	2,028	 	
Impairment recoveries	 	 	(2,384	)	 	 	(2,247	)	 	 	(24,467	)	 	 	—	 	 	 	(29,098	)	
Restructuring charges	 	 	394	 	 	 	168	 	 	 	255	 	 	 	187	 	 	 	1,004	 	
Corporate activities expense	 	 	2,541	 	 	 	2,920	 	 	 	4,425	 	 	 	2,510	 	 	 	12,396	 	
Corporate eliminations	 	 	(16	)	 	 	(16	)	 	 	(18	)	 	 	(17	)	 	 	(67	)	
Segment operating income (loss)	 	$	13,104	 	 	$	40,607	 	 	$	48,338	 	 	$	(3,451	)	 	$	98,598	 	
FlyOver Iceland start-up costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	125	 	 	 	125	 	
Integration costs	 	 	213	 	 	 	49	 	 	 	25	 	 	 	48	 	 	 	335	 	
Acquisition transaction-related costs	 	 	188	 	 	 	—	 	 	 	—	 	 	 	12	 	 	 	200	 	
Adjusted segment operating income (loss)	 	 	13,505	 	 	 	40,656	 	 	 	48,363	 	 	 	(3,266	)	 	 	99,258	 	
Segment depreciation	 	 	9,036	 	 	 	11,220	 	 	 	12,485	 	 	 	9,768	 	 	 	42,509	 	
Segment amortization	 	 	3,059	 	 	 	3,253	 	 	 	3,301	 	 	 	2,795	 	 	 	12,408	 	
Adjusted Segment EBITDA	 	$	25,600	 	 	$	55,129	 	 	$	64,149	 	 	$	9,297	 	 	$	154,175	 	
Adjusted segment operating margin	 	 	4.1	%	 	 	11.1	%	 	 	14.3	%	 	 	-1.2	%	 	 	7.6	%	
Adjusted segment EBITDA margin	 	 	7.9	%	 	 	15.1	%	 	 	18.9	%	 	 	3.4	%	 	 	11.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	317,871	 	 	$	320,109	 	 	$	232,119	 	 	$	262,998	 	 	$	1,133,097	 	
Segment operating income (loss)	 	$	23,379	 	 	$	30,669	 	 	$	(5,522	)	 	$	2,205	 	 	$	50,731	 	
Integration costs	 	 	125	 	 	 	(30	)	 	 	20	 	 	 	46	 	 	 	161	 	
Adjusted segment operating income (loss)	 	 	23,504	 	 	 	30,639	 	 	 	(5,502	)	 	 	2,251	 	 	 	50,892	 	
Depreciation	 	 	6,285	 	 	 	6,638	 	 	 	6,691	 	 	 	6,830	 	 	 	26,444	 	
Amortization	 	 	2,787	 	 	 	2,799	 	 	 	2,715	 	 	 	2,518	 	 	 	10,819	 	
Adjusted Segment EBITDA	 	$	32,576	 	 	$	40,076	 	 	$	3,904	 	 	$	11,599	 	 	$	88,155	 	
Adjusted segment operating margin	 	 	7.4	%	 	 	9.6	%	 	 	-2.4	%	 	 	0.9	%	 	 	4.5	%	
Adjusted segment EBITDA margin	 	 	10.2	%	 	 	12.5	%	 	 	1.7	%	 	 	4.4	%	 	 	7.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GES North America:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	273,589	 	 	$	263,664	 	 	$	199,153	 	 	$	207,546	 	 	$	943,952	 	
Segment operating income (loss)	 	$	21,767	 	 	$	25,110	 	 	$	(2,967	)	 	$	(2,715	)	 	$	41,195	 	
Integration costs	 	 	125	 	 	 	(59	)	 	 	9	 	 	 	36	 	 	 	111	 	
Adjusted segment operating income (loss)	 	 	21,892	 	 	 	25,051	 	 	 	(2,958	)	 	 	(2,679	)	 	 	41,306	 	
Depreciation	 	 	5,039	 	 	 	5,264	 	 	 	5,341	 	 	 	5,416	 	 	 	21,060	 	
Amortization	 	 	2,371	 	 	 	2,370	 	 	 	2,276	 	 	 	2,182	 	 	 	9,199	 	
Adjusted Segment EBITDA	 	$	29,302	 	 	$	32,685	 	 	$	4,659	 	 	$	4,919	 	 	$	71,565	 	
Adjusted segment operating margin	 	 	8.0	%	 	 	9.5	%	 	 	-1.5	%	 	 	-1.3	%	 	 	4.4	%	
Adjusted segment EBITDA margin	 	 	10.7	%	 	 	12.4	%	 	 	2.3	%	 	 	2.4	%	 	 	7.6	%	

 

VIAD CORP AND SUBSIDIARIES
TABLE TWO – NON-GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

  	 	2017	 	
($ in thousands)	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	Full Year	 	
GES EMEA:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	47,506	 	 	$	63,208	 	 	$	39,668	 	 	$	59,443	 	 	$	209,825	 	
Segment operating income (loss)	 	$	1,612	 	 	$	5,559	 	 	$	(2,555	)	 	$	4,920	 	 	$	9,536	 	
Integration costs	 	 	—	 	 	 	29	 	 	 	11	 	 	 	10	 	 	 	50	 	
Adjusted segment operating income (loss)	 	 	1,612	 	 	 	5,588	 	 	 	(2,544	)	 	 	4,930	 	 	 	9,586	 	
Depreciation	 	 	1,246	 	 	 	1,374	 	 	 	1,350	 	 	 	1,414	 	 	 	5,384	 	
Amortization	 	 	416	 	 	 	429	 	 	 	439	 	 	 	336	 	 	 	1,620	 	
Adjusted Segment EBITDA	 	$	3,274	 	 	$	7,391	 	 	$	(755	)	 	$	6,680	 	 	$	16,590	 	
Adjusted segment operating margin	 	 	3.4	%	 	 	8.8	%	 	 	-6.4	%	 	 	8.3	%	 	 	4.6	%	
Adjusted segment EBITDA margin	 	 	6.9	%	 	 	11.7	%	 	 	-1.9	%	 	 	11.2	%	 	 	7.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pursuit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	$	7,936	 	 	$	44,665	 	 	$	106,980	 	 	$	14,287	 	 	$	173,868	 	
Segment operating income (loss)	 	$	(10,275	)	 	$	9,938	 	 	$	53,860	 	 	$	(5,656	)	 	$	47,867	 	
Integration costs	 	 	88	 	 	 	79	 	 	 	5	 	 	 	2	 	 	 	174	 	
Acquisition transaction-related costs	 	 	188	 	 	 	—	 	 	 	—	 	 	 	12	 	 	 	200	 	
FlyOver Iceland start-up costs	 	 	—	 	 	 	—	 	 	 	—	 	 	 	125	 	 	 	125	 	
Adjusted segment operating income (loss)	 	 	(9,999	)	 	 	10,017	 	 	 	53,865	 	 	 	(5,517	)	 	 	48,366	 	
Depreciation	 	 	2,751	 	 	 	4,582	 	 	 	5,794	 	 	 	2,938	 	 	 	16,065	 	
Amortization	 	 	272	 	 	 	454	 	 	 	586	 	 	 	277	 	 	 	1,589	 	
Adjusted Segment EBITDA	 	$	(6,976	)	 	$	15,053	 	 	$	60,245	 	 	$	(2,302	)	 	$	66,020	 	
Adjusted segment operating margin	 	**	 	 	 	22.4	%	 	 	50.4	%	 	 	-38.6	%	 	 	27.8	%	
Adjusted segment EBITDA margin	 	 	-87.9	%	 	 	33.7	%	 	 	56.3	%	 	 	-16.1	%	 	 	38.0	%	
 
** Greater than +/- 100 percent