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• | Blitz. In September 2014, the Company acquired Blitz Communications Group Limited and its affiliates (collectively, “Blitz”); |
• | onPeak. In October 2014, the Company acquired onPeak LLC and Travel Planners, Inc. with Travel Planners, Inc. merging into onPeak LLC (collectively, “onPeak”) in January 2015; and |
• | N200. In November 2014, the Company acquired N200 Limited and its affiliates (collectively, “N200”). |
|
(in thousands) | ||||||||
Purchase price | $ | 24,416 | ||||||
Cash acquired | (190 | ) | ||||||
Purchase price, net of cash acquired | 24,226 | |||||||
Fair value of net assets acquired: | ||||||||
Accounts receivable, net | $ | 264 | ||||||
Inventory | 433 | |||||||
Prepaid expenses | 410 | |||||||
Property and equipment | 5,951 | |||||||
Intangible assets | 8,692 | |||||||
Total assets acquired | 15,750 | |||||||
Accounts payable | 1,232 | |||||||
Accrued liabilities | 2,246 | |||||||
Customer deposits | 199 | |||||||
Deferred tax liability | 468 | |||||||
Revolving credit facility | 488 | |||||||
Accrued dilapidations | 417 | |||||||
Total liabilities acquired | 5,050 | |||||||
Total fair value of net assets acquired | 10,700 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 13,526 |
(in thousands) | ||||||||
Purchase price paid as: | ||||||||
Cash | $ | 42,950 | ||||||
Cash acquired | (4,064 | ) | ||||||
Purchase price, net of cash acquired | 38,886 | |||||||
Fair value of net assets acquired: | ||||||||
Accounts receivable, net | $ | 4,008 | ||||||
Prepaid expenses | 640 | |||||||
Property and equipment | 2,450 | |||||||
Other non-current assets | 309 | |||||||
Intangible assets | 14,100 | |||||||
Total assets acquired | 21,507 | |||||||
Accounts payable | 738 | |||||||
Accrued liabilities | 3,341 | |||||||
Customer deposits | 4,225 | |||||||
Deferred tax liability | 1,576 | |||||||
Other liabilities | 309 | |||||||
Total liabilities acquired | 10,189 | |||||||
Total fair value of net assets acquired | 11,318 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 27,568 |
(in thousands) | ||||||||
Purchase price paid as: | ||||||||
Cash | $ | 33,674 | ||||||
Additional purchase price paid for tax election | 896 | |||||||
Working capital adjustment | (279 | ) | ||||||
Cash acquired | (4,204 | ) | ||||||
Purchase price, net of cash acquired | 30,087 | |||||||
Fair value of net assets acquired: | ||||||||
Accounts receivable, net | $ | 1,450 | ||||||
Prepaid expenses | 120 | |||||||
Property and equipment | 93 | |||||||
Intangible assets | 14,400 | |||||||
Total assets acquired | 16,063 | |||||||
Accounts payable | 488 | |||||||
Accrued liabilities | 1,557 | |||||||
Customer deposits | 4,525 | |||||||
Total liabilities acquired | 6,570 | |||||||
Total fair value of net assets acquired | 9,493 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 20,594 |
(in thousands) | ||||||||
Purchase price paid as: | ||||||||
Cash | $ | 12,068 | ||||||
Working capital adjustment | 458 | |||||||
Contingent consideration | 1,145 | |||||||
Cash acquired | (943 | ) | ||||||
Purchase price, net of cash acquired | 12,728 | |||||||
Fair value of net assets acquired: | ||||||||
Accounts receivable, net | $ | 1,732 | ||||||
Inventory | 46 | |||||||
Prepaid expenses | 115 | |||||||
Property and equipment | 1,280 | |||||||
Intangible assets | 3,682 | |||||||
Total assets acquired | 6,855 | |||||||
Accounts payable | 421 | |||||||
Accrued liabilities | 1,057 | |||||||
Customer deposits | 569 | |||||||
Deferred tax liability | 911 | |||||||
Other liabilities | 106 | |||||||
Total liabilities acquired | 3,064 | |||||||
Total fair value of net assets acquired | 3,791 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 8,937 |
(in thousands, except per share data) | Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||
Revenue | $ | 308,268 | $ | 884,867 | ||||
Depreciation and amortization | $ | 10,204 | $ | 29,228 | ||||
Income from continuing operations | $ | 30,172 | $ | 50,104 | ||||
Net income attributable to Viad | $ | 28,245 | $ | 59,793 | ||||
Diluted net income per share | $ | 1.42 | $ | 2.96 | ||||
Basic net income per share | $ | 1.44 | $ | 3.01 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Raw materials | $ | 14,646 | $ | 16,749 | |||
Work in process | 24,013 | 15,652 | |||||
Inventories | $ | 38,659 | $ | 32,401 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Income tax receivable | $ | 4,274 | $ | 1,869 | |||
Prepaid software maintenance | 3,077 | 1,934 | |||||
Prepaid insurance | 2,626 | 2,170 | |||||
Prepaid vendor payments | 2,503 | 2,689 | |||||
Prepaid rent | 1,493 | 186 | |||||
Prepaid taxes | 1,010 | 1,416 | |||||
Prepaid other | 2,982 | 4,427 | |||||
Other | 609 | 2,749 | |||||
Other current assets | $ | 18,574 | $ | 17,440 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Land and land interests | $ | 29,200 | $ | 30,360 | |||
Buildings and leasehold improvements | 131,572 | 138,104 | |||||
Equipment and other | 278,423 | 319,435 | |||||
Gross property and equipment | 439,195 | 487,899 | |||||
Less: accumulated depreciation | (253,347 | ) | (288,328 | ) | |||
Property and equipment, net | $ | 185,848 | $ | 199,571 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Cash surrender value of life insurance | $ | 20,994 | $ | 20,866 | |||
Self-insured liability receivable | 7,728 | 7,728 | |||||
Workers’ compensation insurance security deposits | 4,250 | 4,250 | |||||
Other mutual funds | 2,162 | 2,536 | |||||
Other | 4,656 | 5,294 | |||||
Other investments and assets | $ | 39,790 | $ | 40,674 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Continuing operations: | |||||||
Self-insured liability accrual | $ | 6,728 | $ | 6,297 | |||
Accrued employee benefit costs | 3,824 | 3,215 | |||||
Accrued foreign income taxes | 3,767 | 2,370 | |||||
Accrued sales and use taxes | 3,039 | 3,624 | |||||
Accrued dividends | 2,102 | 2,107 | |||||
Accrued rebates | 1,813 | 1,600 | |||||
Current portion of pension liability | 1,729 | 1,641 | |||||
Deferred rent | 1,721 | 783 | |||||
Accrued restructuring | 1,020 | 1,154 | |||||
Accrued professional fees | 990 | 1,228 | |||||
Other | 6,725 | 2,837 | |||||
Total continuing operations | 33,458 | 26,856 | |||||
Discontinued operations: | |||||||
Environmental remediation liabilities | 289 | 350 | |||||
Self-insured liability accrual | 214 | 173 | |||||
Other | 403 | 408 | |||||
Total discontinued operations | 906 | 931 | |||||
Other current liabilities | $ | 34,364 | $ | 27,787 |
|
(in thousands) | Marketing & Events U.S. Segment | Marketing & Events International Segment | Travel & Recreation Group | Total | |||||||||||
Balance at December 31, 2014 | $ | 110,618 | $ | 42,221 | $ | 41,358 | $ | 194,197 | |||||||
Purchase price allocation adjustments | 230 | 397 | — | 627 | |||||||||||
Foreign currency translation adjustments | — | (2,905 | ) | (5,600 | ) | (8,505 | ) | ||||||||
Balance at September 30, 2015 | $ | 110,848 | $ | 39,713 | $ | 35,758 | $ | 186,319 |
September 30, 2015 | December 31, 2014 | ||||||||||||||
(in thousands) | Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||
Amortized intangible assets: | |||||||||||||||
Customer contracts and relationships | $ | 38,647 | $ | (6,534 | ) | $ | 41,624 | $ | (2,961 | ) | |||||
Other | 4,495 | (1,790 | ) | 4,576 | (732 | ) | |||||||||
Total amortized intangible assets | 43,142 | (8,324 | ) | 46,200 | (3,693 | ) | |||||||||
Unamortized intangible assets: | |||||||||||||||
Business licenses | 460 | — | 460 | — | |||||||||||
Other intangible assets | $ | 43,602 | $ | (8,324 | ) | $ | 46,660 | $ | (3,693 | ) |
(in thousands) | |||
Year ending December 31: | |||
Remainder of 2015 | $ | 1,802 | |
2016 | 6,370 | ||
2017 | 5,546 | ||
2018 | 4,573 | ||
2019 | 4,190 | ||
Thereafter | 12,337 | ||
Total | $ | 34,818 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Continuing operations: | |||||||
Self-insured liability accrual | $ | 12,772 | $ | 13,525 | |||
Self-insured excess liability | 7,728 | 7,728 | |||||
Accrued compensation | 6,989 | 6,824 | |||||
Deferred rent | 3,010 | 2,787 | |||||
Foreign deferred tax liability | 2,406 | 2,135 | |||||
Accrued restructuring | 434 | 555 | |||||
Other | 3,248 | 5,117 | |||||
Total continuing operations | 36,587 | 38,671 | |||||
Discontinued operations: | |||||||
Environmental remediation liabilities | 4,248 | 4,395 | |||||
Self-insured liability accrual | 4,040 | 4,327 | |||||
Accrued income taxes | 1,143 | 1,119 | |||||
Other | 1,121 | 1,250 | |||||
Total discontinued operations | 10,552 | 11,091 | |||||
Other deferred items and liabilities | $ | 47,139 | $ | 49,762 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Revolving credit facility and term loan, 2.3% and 2.4% weighted-average interest rate at September 30, 2015 and December 31, 2014, respectively, due through 2019 | $ | 115,625 | $ | 139,500 | |||
Capital lease obligations, 6.2% and 6.0% weighted-average interest at September 30, 2015 and December 31, 2014, respectively, due through 2018 | 1,282 | 1,520 | |||||
Total debt | 116,907 | 141,020 | |||||
Current portion | (18,489 | ) | (27,856 | ) | |||
Long-term debt and capital lease obligations | $ | 98,418 | $ | 113,164 |
|
• | 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 Reporting Date Using | |||||||||||||||
(in thousands) | September 30, 2015 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobserved Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Money market funds | $ | 7,519 | $ | 7,519 | $ | — | $ | — | |||||||
Other mutual funds | 2,162 | 2,162 | — | — | |||||||||||
Total assets at fair value | $ | 9,681 | $ | 9,681 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Earnout contingent consideration liability | $ | (1,118 | ) | $ | — | $ | — | $ | (1,118 | ) | |||||
Total liabilities at fair value on a recurring basis | $ | (1,118 | ) | $ | — | $ | — | $ | (1,118 | ) | |||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||
(in thousands) | December 31, 2014 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobserved Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Money market funds | $ | 8,518 | $ | 8,518 | $ | — | $ | — | |||||||
Other mutual funds | 2,536 | 2,536 | — | — | |||||||||||
Total assets at fair value | $ | 11,054 | $ | 11,054 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Earnout contingent consideration liability | $ | (1,210 | ) | $ | — | $ | — | $ | (1,210 | ) | |||||
Total liabilities at fair value on a recurring basis | $ | (1,210 | ) | $ | — | $ | — | $ | (1,210 | ) |
|
(in thousands) | Total Viad Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||
Balance at December 31, 2014 | $ | 335,387 | $ | 12,315 | $ | 347,702 | ||||||
Net income | 27,563 | 515 | 28,078 | |||||||||
Dividends on common stock | (6,020 | ) | — | (6,020 | ) | |||||||
Common stock purchased for treasury | (4,776 | ) | — | (4,776 | ) | |||||||
Employee benefit plans | 5,243 | — | 5,243 | |||||||||
Unrealized foreign currency translation adjustment | (23,117 | ) | — | (23,117 | ) | |||||||
Tax benefits from share-based compensation | 13 | — | 13 | |||||||||
Other changes to AOCI | 209 | — | 209 | |||||||||
Other | — | (1 | ) | (1 | ) | |||||||
Balance at September 30, 2015 | $ | 334,502 | $ | 12,829 | $ | 347,331 |
(in thousands) | Total Viad Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||
Balance at December 31, 2013 | $ | 347,441 | $ | 9,102 | $ | 356,543 | ||||||
Net income | 58,244 | 3,355 | 61,599 | |||||||||
Dividends on common stock | (36,374 | ) | — | (36,374 | ) | |||||||
Common stock purchased for treasury | (11,631 | ) | — | (11,631 | ) | |||||||
Employee benefit plans | 5,519 | — | 5,519 | |||||||||
Unrealized foreign currency translation adjustment | (9,950 | ) | — | (9,950 | ) | |||||||
Unrealized gain on investments | (17 | ) | — | (17 | ) | |||||||
Employee Stock Ownership Plan allocation adjustment | 44 | — | 44 | |||||||||
Other | (32 | ) | — | (32 | ) | |||||||
Balance at September 30, 2014 | $ | 353,244 | $ | 12,457 | $ | 365,701 |
(in thousands) | Unrealized Gains on Investments | Cumulative Foreign Currency Translation Adjustments | Unrecognized Net Actuarial Loss and Prior Service Credit, Net | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance at December 31, 2014 | $ | 471 | $ | 12,416 | $ | (13,280 | ) | $ | (393 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 29 | (23,117 | ) | — | (23,088 | ) | ||||||||||
Amounts reclassified from AOCI, net of tax | (49 | ) | — | 22 | (27 | ) | ||||||||||
Net other comprehensive income (loss) | (20 | ) | (23,117 | ) | 22 | (23,115 | ) | |||||||||
Balance at September 30, 2015 | $ | 451 | $ | (10,701 | ) | $ | (13,258 | ) | $ | (23,508 | ) |
Nine Months Ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | |||||||||
(in thousands) | 2015 | 2014 | ||||||||
Unrealized gains on investments | $ | 79 | $ | 52 | Interest income | |||||
Tax effect | (30 | ) | (20 | ) | Income taxes | |||||
$ | 49 | $ | 32 | |||||||
Recognized net actuarial loss(1) | $ | (569 | ) | $ | (705 | ) | ||||
Amortization of prior service credit(1) | 414 | 757 | ||||||||
Tax effect | 133 | (20 | ) | Income taxes | ||||||
$ | (22 | ) | $ | 32 |
|
|
Domestic Plans | ||||||||||||||||||||||||
Pension Plans | Postretirement Benefit Plans | Foreign Pension Plans | ||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 25 | $ | 20 | $ | 27 | $ | 11 | $ | 123 | $ | 104 | ||||||||||||
Interest cost | 237 | 263 | 148 | 140 | 124 | 158 | ||||||||||||||||||
Expected return on plan assets | (93 | ) | (107 | ) | — | — | (143 | ) | (161 | ) | ||||||||||||||
Amortization of prior service credit | — | — | (138 | ) | (149 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss | 100 | 101 | 123 | 16 | 2 | 3 | ||||||||||||||||||
Net periodic benefit cost | $ | 269 | $ | 277 | $ | 160 | $ | 18 | $ | 106 | $ | 104 |
Domestic Plans | ||||||||||||||||||||||||
Pension Plans | Postretirement Benefit Plans | Foreign Pension Plans | ||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 76 | $ | 65 | $ | 114 | $ | 105 | $ | 382 | $ | 313 | ||||||||||||
Interest cost | 763 | 809 | 464 | 517 | 384 | 478 | ||||||||||||||||||
Expected return on plan assets | (285 | ) | (327 | ) | — | — | (443 | ) | (484 | ) | ||||||||||||||
Amortization of prior service credit | — | — | (414 | ) | (445 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss | 368 | 305 | 396 | 225 | 5 | 8 | ||||||||||||||||||
Net periodic benefit cost | $ | 922 | $ | 852 | $ | 560 | $ | 402 | $ | 328 | $ | 315 |
|
Marketing & Events Group Consolidation | Other Restructurings | ||||||||||||||
(in thousands) | Severance & Employee Benefits | Facilities | Severance & Employee Benefits | Total | |||||||||||
Balance at December 31, 2014 | $ | 543 | $ | 1,161 | $ | 240 | $ | 1,944 | |||||||
Restructuring charges | 882 | 98 | 562 | 1,542 | |||||||||||
Cash payments | (1,036 | ) | (291 | ) | (561 | ) | (1,888 | ) | |||||||
Adjustment to liability | — | — | (144 | ) | (144 | ) | |||||||||
Balance at September 30, 2015 | $ | 389 | $ | 968 | $ | 97 | $ | 1,454 |
|
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Revenue: | |||||||||||||||
Marketing & Events Group: | |||||||||||||||
U.S. Segment | $ | 148,314 | $ | 168,058 | $ | 550,006 | $ | 558,292 | |||||||
International Segment | 44,870 | 64,199 | 195,829 | 186,296 | |||||||||||
Intersegment eliminations | (4,321 | ) | (5,595 | ) | (13,475 | ) | (13,517 | ) | |||||||
Total Marketing & Events Group | 188,863 | 226,662 | 732,360 | 731,071 | |||||||||||
Travel & Recreation Group | 67,083 | 73,140 | 105,017 | 110,763 | |||||||||||
Total revenue | $ | 255,946 | $ | 299,802 | $ | 837,377 | $ | 841,834 | |||||||
Segment operating income (loss): | |||||||||||||||
Marketing & Events Group: | |||||||||||||||
U.S. Segment | $ | (9,039 | ) | $ | 1,069 | $ | 12,572 | $ | 22,044 | ||||||
International Segment | (5,751 | ) | 1,297 | 6,405 | 7,512 | ||||||||||
Total Marketing & Events Group | (14,790 | ) | 2,366 | 18,977 | 29,556 | ||||||||||
Travel & Recreation Group | 29,361 | 30,648 | 30,755 | 30,955 | |||||||||||
Segment operating income | 14,571 | 33,014 | 49,732 | 60,511 | |||||||||||
Corporate activities | (1,354 | ) | (3,468 | ) | (6,147 | ) | (7,498 | ) | |||||||
Operating income | 13,217 | 29,546 | 43,585 | 53,013 | |||||||||||
Interest income | 65 | 81 | 571 | 200 | |||||||||||
Interest expense | (1,198 | ) | (462 | ) | (3,452 | ) | (1,069 | ) | |||||||
Restructuring (charges) recoveries: | |||||||||||||||
Marketing & Events U.S. Segment | (25 | ) | (186 | ) | (496 | ) | (392 | ) | |||||||
Marketing & Events International Segment | (213 | ) | (128 | ) | (484 | ) | (1,648 | ) | |||||||
Travel & Recreation Group | (18 | ) | (30 | ) | (160 | ) | 41 | ||||||||
Corporate | (1 | ) | 106 | (402 | ) | 185 | |||||||||
Impairment charges: | |||||||||||||||
Marketing & Events International Segment | — | — | — | (884 | ) | ||||||||||
Income from continuing operations before income taxes | $ | 11,827 | $ | 28,927 | $ | 39,162 | $ | 49,446 |
|
(in thousands) | Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||
Total revenue | $ | — | $ | — | ||||
Costs and expenses | (7 | ) | (93 | ) | ||||
Loss from discontinued operations, before income taxes | (7 | ) | (93 | ) | ||||
Income tax benefit | 7 | 45 | ||||||
Loss from discontinued operations, net of tax | — | (48 | ) | |||||
Gain (loss) on sale of discontinued operations, net of tax | (979 | ) | 13,343 | |||||
Income (loss) from discontinued operations | (979 | ) | 13,295 | |||||
Income from discontinued operations attributable to noncontrolling interest | (157 | ) | (2,825 | ) | ||||
Income (loss) from discontinued operations attributable to Viad | $ | (1,136 | ) | $ | 10,470 |
Nine Months Ended September 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Income from continuing operations | $ | 515 | $ | 530 | ||||
Income from discontinued operations | — | 2,825 | ||||||
Net income attributable to noncontrolling interest | $ | 515 | $ | 3,355 |
|
• | Blitz. In September 2014, the Company acquired Blitz Communications Group Limited and its affiliates (collectively, “Blitz”); |
• | onPeak. In October 2014, the Company acquired onPeak LLC and Travel Planners, Inc. with Travel Planners, Inc. merging into onPeak LLC (collectively, “onPeak”) in January 2015; and |
• | N200. In November 2014, the Company acquired N200 Limited and its affiliates (collectively, “N200”). |
|
(in thousands) | ||||||||
Purchase price | $ | 24,416 | ||||||
Cash acquired | (190 | ) | ||||||
Purchase price, net of cash acquired | 24,226 | |||||||
Fair value of net assets acquired: | ||||||||
Accounts receivable, net | $ | 264 | ||||||
Inventory | 433 | |||||||
Prepaid expenses | 410 | |||||||
Property and equipment | 5,951 | |||||||
Intangible assets | 8,692 | |||||||
Total assets acquired | 15,750 | |||||||
Accounts payable | 1,232 | |||||||
Accrued liabilities | 2,246 | |||||||
Customer deposits | 199 | |||||||
Deferred tax liability | 468 | |||||||
Revolving credit facility | 488 | |||||||
Accrued dilapidations | 417 | |||||||
Total liabilities acquired | 5,050 | |||||||
Total fair value of net assets acquired | 10,700 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 13,526 |
(in thousands) | ||||||||
Purchase price paid as: | ||||||||
Cash | $ | 42,950 | ||||||
Cash acquired | (4,064 | ) | ||||||
Purchase price, net of cash acquired | 38,886 | |||||||
Fair value of net assets acquired: | ||||||||
Accounts receivable, net | $ | 4,008 | ||||||
Prepaid expenses | 640 | |||||||
Property and equipment | 2,450 | |||||||
Other non-current assets | 309 | |||||||
Intangible assets | 14,100 | |||||||
Total assets acquired | 21,507 | |||||||
Accounts payable | 738 | |||||||
Accrued liabilities | 3,341 | |||||||
Customer deposits | 4,225 | |||||||
Deferred tax liability | 1,576 | |||||||
Other liabilities | 309 | |||||||
Total liabilities acquired | 10,189 | |||||||
Total fair value of net assets acquired | 11,318 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 27,568 |
(in thousands) | ||||||||
Purchase price paid as: | ||||||||
Cash | $ | 33,674 | ||||||
Additional purchase price paid for tax election | 896 | |||||||
Working capital adjustment | (279 | ) | ||||||
Cash acquired | (4,204 | ) | ||||||
Purchase price, net of cash acquired | 30,087 | |||||||
Fair value of net assets acquired: | ||||||||
Accounts receivable, net | $ | 1,450 | ||||||
Prepaid expenses | 120 | |||||||
Property and equipment | 93 | |||||||
Intangible assets | 14,400 | |||||||
Total assets acquired | 16,063 | |||||||
Accounts payable | 488 | |||||||
Accrued liabilities | 1,557 | |||||||
Customer deposits | 4,525 | |||||||
Total liabilities acquired | 6,570 | |||||||
Total fair value of net assets acquired | 9,493 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 20,594 |
(in thousands) | ||||||||
Purchase price paid as: | ||||||||
Cash | $ | 12,068 | ||||||
Working capital adjustment | 458 | |||||||
Contingent consideration | 1,145 | |||||||
Cash acquired | (943 | ) | ||||||
Purchase price, net of cash acquired | 12,728 | |||||||
Fair value of net assets acquired: | ||||||||
Accounts receivable, net | $ | 1,732 | ||||||
Inventory | 46 | |||||||
Prepaid expenses | 115 | |||||||
Property and equipment | 1,280 | |||||||
Intangible assets | 3,682 | |||||||
Total assets acquired | 6,855 | |||||||
Accounts payable | 421 | |||||||
Accrued liabilities | 1,057 | |||||||
Customer deposits | 569 | |||||||
Deferred tax liability | 911 | |||||||
Other liabilities | 106 | |||||||
Total liabilities acquired | 3,064 | |||||||
Total fair value of net assets acquired | 3,791 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 8,937 |
(in thousands, except per share data) | Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||
Revenue | $ | 308,268 | $ | 884,867 | ||||
Depreciation and amortization | $ | 10,204 | $ | 29,228 | ||||
Income from continuing operations | $ | 30,172 | $ | 50,104 | ||||
Net income attributable to Viad | $ | 28,245 | $ | 59,793 | ||||
Diluted net income per share | $ | 1.42 | $ | 2.96 | ||||
Basic net income per share | $ | 1.44 | $ | 3.01 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Raw materials | $ | 14,646 | $ | 16,749 | |||
Work in process | 24,013 | 15,652 | |||||
Inventories | $ | 38,659 | $ | 32,401 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Income tax receivable | $ | 4,274 | $ | 1,869 | |||
Prepaid software maintenance | 3,077 | 1,934 | |||||
Prepaid insurance | 2,626 | 2,170 | |||||
Prepaid vendor payments | 2,503 | 2,689 | |||||
Prepaid rent | 1,493 | 186 | |||||
Prepaid taxes | 1,010 | 1,416 | |||||
Prepaid other | 2,982 | 4,427 | |||||
Other | 609 | 2,749 | |||||
Other current assets | $ | 18,574 | $ | 17,440 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Land and land interests | $ | 29,200 | $ | 30,360 | |||
Buildings and leasehold improvements | 131,572 | 138,104 | |||||
Equipment and other | 278,423 | 319,435 | |||||
Gross property and equipment | 439,195 | 487,899 | |||||
Less: accumulated depreciation | (253,347 | ) | (288,328 | ) | |||
Property and equipment, net | $ | 185,848 | $ | 199,571 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Cash surrender value of life insurance | $ | 20,994 | $ | 20,866 | |||
Self-insured liability receivable | 7,728 | 7,728 | |||||
Workers’ compensation insurance security deposits | 4,250 | 4,250 | |||||
Other mutual funds | 2,162 | 2,536 | |||||
Other | 4,656 | 5,294 | |||||
Other investments and assets | $ | 39,790 | $ | 40,674 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Continuing operations: | |||||||
Self-insured liability accrual | $ | 6,728 | $ | 6,297 | |||
Accrued employee benefit costs | 3,824 | 3,215 | |||||
Accrued foreign income taxes | 3,767 | 2,370 | |||||
Accrued sales and use taxes | 3,039 | 3,624 | |||||
Accrued dividends | 2,102 | 2,107 | |||||
Accrued rebates | 1,813 | 1,600 | |||||
Current portion of pension liability | 1,729 | 1,641 | |||||
Deferred rent | 1,721 | 783 | |||||
Accrued restructuring | 1,020 | 1,154 | |||||
Accrued professional fees | 990 | 1,228 | |||||
Other | 6,725 | 2,837 | |||||
Total continuing operations | 33,458 | 26,856 | |||||
Discontinued operations: | |||||||
Environmental remediation liabilities | 289 | 350 | |||||
Self-insured liability accrual | 214 | 173 | |||||
Other | 403 | 408 | |||||
Total discontinued operations | 906 | 931 | |||||
Other current liabilities | $ | 34,364 | $ | 27,787 |
|
(in thousands) | Marketing & Events U.S. Segment | Marketing & Events International Segment | Travel & Recreation Group | Total | |||||||||||
Balance at December 31, 2014 | $ | 110,618 | $ | 42,221 | $ | 41,358 | $ | 194,197 | |||||||
Purchase price allocation adjustments | 230 | 397 | — | 627 | |||||||||||
Foreign currency translation adjustments | — | (2,905 | ) | (5,600 | ) | (8,505 | ) | ||||||||
Balance at September 30, 2015 | $ | 110,848 | $ | 39,713 | $ | 35,758 | $ | 186,319 |
September 30, 2015 | December 31, 2014 | ||||||||||||||
(in thousands) | Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||
Amortized intangible assets: | |||||||||||||||
Customer contracts and relationships | $ | 38,647 | $ | (6,534 | ) | $ | 41,624 | $ | (2,961 | ) | |||||
Other | 4,495 | (1,790 | ) | 4,576 | (732 | ) | |||||||||
Total amortized intangible assets | 43,142 | (8,324 | ) | 46,200 | (3,693 | ) | |||||||||
Unamortized intangible assets: | |||||||||||||||
Business licenses | 460 | — | 460 | — | |||||||||||
Other intangible assets | $ | 43,602 | $ | (8,324 | ) | $ | 46,660 | $ | (3,693 | ) |
(in thousands) | |||
Year ending December 31: | |||
Remainder of 2015 | $ | 1,802 | |
2016 | 6,370 | ||
2017 | 5,546 | ||
2018 | 4,573 | ||
2019 | 4,190 | ||
Thereafter | 12,337 | ||
Total | $ | 34,818 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Continuing operations: | |||||||
Self-insured liability accrual | $ | 12,772 | $ | 13,525 | |||
Self-insured excess liability | 7,728 | 7,728 | |||||
Accrued compensation | 6,989 | 6,824 | |||||
Deferred rent | 3,010 | 2,787 | |||||
Foreign deferred tax liability | 2,406 | 2,135 | |||||
Accrued restructuring | 434 | 555 | |||||
Other | 3,248 | 5,117 | |||||
Total continuing operations | 36,587 | 38,671 | |||||
Discontinued operations: | |||||||
Environmental remediation liabilities | 4,248 | 4,395 | |||||
Self-insured liability accrual | 4,040 | 4,327 | |||||
Accrued income taxes | 1,143 | 1,119 | |||||
Other | 1,121 | 1,250 | |||||
Total discontinued operations | 10,552 | 11,091 | |||||
Other deferred items and liabilities | $ | 47,139 | $ | 49,762 |
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Revolving credit facility and term loan, 2.3% and 2.4% weighted-average interest rate at September 30, 2015 and December 31, 2014, respectively, due through 2019 | $ | 115,625 | $ | 139,500 | |||
Capital lease obligations, 6.2% and 6.0% weighted-average interest at September 30, 2015 and December 31, 2014, respectively, due through 2018 | 1,282 | 1,520 | |||||
Total debt | 116,907 | 141,020 | |||||
Current portion | (18,489 | ) | (27,856 | ) | |||
Long-term debt and capital lease obligations | $ | 98,418 | $ | 113,164 |
|
Fair Value Measurements at Reporting Date Using | |||||||||||||||
(in thousands) | September 30, 2015 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobserved Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Money market funds | $ | 7,519 | $ | 7,519 | $ | — | $ | — | |||||||
Other mutual funds | 2,162 | 2,162 | — | — | |||||||||||
Total assets at fair value | $ | 9,681 | $ | 9,681 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Earnout contingent consideration liability | $ | (1,118 | ) | $ | — | $ | — | $ | (1,118 | ) | |||||
Total liabilities at fair value on a recurring basis | $ | (1,118 | ) | $ | — | $ | — | $ | (1,118 | ) | |||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||
(in thousands) | December 31, 2014 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobserved Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Money market funds | $ | 8,518 | $ | 8,518 | $ | — | $ | — | |||||||
Other mutual funds | 2,536 | 2,536 | — | — | |||||||||||
Total assets at fair value | $ | 11,054 | $ | 11,054 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Earnout contingent consideration liability | $ | (1,210 | ) | $ | — | $ | — | $ | (1,210 | ) | |||||
Total liabilities at fair value on a recurring basis | $ | (1,210 | ) | $ | — | $ | — | $ | (1,210 | ) |
|
(in thousands) | Total Viad Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||
Balance at December 31, 2014 | $ | 335,387 | $ | 12,315 | $ | 347,702 | ||||||
Net income | 27,563 | 515 | 28,078 | |||||||||
Dividends on common stock | (6,020 | ) | — | (6,020 | ) | |||||||
Common stock purchased for treasury | (4,776 | ) | — | (4,776 | ) | |||||||
Employee benefit plans | 5,243 | — | 5,243 | |||||||||
Unrealized foreign currency translation adjustment | (23,117 | ) | — | (23,117 | ) | |||||||
Tax benefits from share-based compensation | 13 | — | 13 | |||||||||
Other changes to AOCI | 209 | — | 209 | |||||||||
Other | — | (1 | ) | (1 | ) | |||||||
Balance at September 30, 2015 | $ | 334,502 | $ | 12,829 | $ | 347,331 |
(in thousands) | Total Viad Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||
Balance at December 31, 2013 | $ | 347,441 | $ | 9,102 | $ | 356,543 | ||||||
Net income | 58,244 | 3,355 | 61,599 | |||||||||
Dividends on common stock | (36,374 | ) | — | (36,374 | ) | |||||||
Common stock purchased for treasury | (11,631 | ) | — | (11,631 | ) | |||||||
Employee benefit plans | 5,519 | — | 5,519 | |||||||||
Unrealized foreign currency translation adjustment | (9,950 | ) | — | (9,950 | ) | |||||||
Unrealized gain on investments | (17 | ) | — | (17 | ) | |||||||
Employee Stock Ownership Plan allocation adjustment | 44 | — | 44 | |||||||||
Other | (32 | ) | — | (32 | ) | |||||||
Balance at September 30, 2014 | $ | 353,244 | $ | 12,457 | $ | 365,701 |
(in thousands) | Unrealized Gains on Investments | Cumulative Foreign Currency Translation Adjustments | Unrecognized Net Actuarial Loss and Prior Service Credit, Net | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance at December 31, 2014 | $ | 471 | $ | 12,416 | $ | (13,280 | ) | $ | (393 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 29 | (23,117 | ) | — | (23,088 | ) | ||||||||||
Amounts reclassified from AOCI, net of tax | (49 | ) | — | 22 | (27 | ) | ||||||||||
Net other comprehensive income (loss) | (20 | ) | (23,117 | ) | 22 | (23,115 | ) | |||||||||
Balance at September 30, 2015 | $ | 451 | $ | (10,701 | ) | $ | (13,258 | ) | $ | (23,508 | ) |
Nine Months Ended September 30, | Affected Line Item in the Statement Where Net Income is Presented | |||||||||
(in thousands) | 2015 | 2014 | ||||||||
Unrealized gains on investments | $ | 79 | $ | 52 | Interest income | |||||
Tax effect | (30 | ) | (20 | ) | Income taxes | |||||
$ | 49 | $ | 32 | |||||||
Recognized net actuarial loss(1) | $ | (569 | ) | $ | (705 | ) | ||||
Amortization of prior service credit(1) | 414 | 757 | ||||||||
Tax effect | 133 | (20 | ) | Income taxes | ||||||
$ | (22 | ) | $ | 32 |
|
Domestic Plans | ||||||||||||||||||||||||
Pension Plans | Postretirement Benefit Plans | Foreign Pension Plans | ||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 25 | $ | 20 | $ | 27 | $ | 11 | $ | 123 | $ | 104 | ||||||||||||
Interest cost | 237 | 263 | 148 | 140 | 124 | 158 | ||||||||||||||||||
Expected return on plan assets | (93 | ) | (107 | ) | — | — | (143 | ) | (161 | ) | ||||||||||||||
Amortization of prior service credit | — | — | (138 | ) | (149 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss | 100 | 101 | 123 | 16 | 2 | 3 | ||||||||||||||||||
Net periodic benefit cost | $ | 269 | $ | 277 | $ | 160 | $ | 18 | $ | 106 | $ | 104 |
Domestic Plans | ||||||||||||||||||||||||
Pension Plans | Postretirement Benefit Plans | Foreign Pension Plans | ||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 76 | $ | 65 | $ | 114 | $ | 105 | $ | 382 | $ | 313 | ||||||||||||
Interest cost | 763 | 809 | 464 | 517 | 384 | 478 | ||||||||||||||||||
Expected return on plan assets | (285 | ) | (327 | ) | — | — | (443 | ) | (484 | ) | ||||||||||||||
Amortization of prior service credit | — | — | (414 | ) | (445 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss | 368 | 305 | 396 | 225 | 5 | 8 | ||||||||||||||||||
Net periodic benefit cost | $ | 922 | $ | 852 | $ | 560 | $ | 402 | $ | 328 | $ | 315 |
|
Marketing & Events Group Consolidation | Other Restructurings | ||||||||||||||
(in thousands) | Severance & Employee Benefits | Facilities | Severance & Employee Benefits | Total | |||||||||||
Balance at December 31, 2014 | $ | 543 | $ | 1,161 | $ | 240 | $ | 1,944 | |||||||
Restructuring charges | 882 | 98 | 562 | 1,542 | |||||||||||
Cash payments | (1,036 | ) | (291 | ) | (561 | ) | (1,888 | ) | |||||||
Adjustment to liability | — | — | (144 | ) | (144 | ) | |||||||||
Balance at September 30, 2015 | $ | 389 | $ | 968 | $ | 97 | $ | 1,454 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Revenue: | |||||||||||||||
Marketing & Events Group: | |||||||||||||||
U.S. Segment | $ | 148,314 | $ | 168,058 | $ | 550,006 | $ | 558,292 | |||||||
International Segment | 44,870 | 64,199 | 195,829 | 186,296 | |||||||||||
Intersegment eliminations | (4,321 | ) | (5,595 | ) | (13,475 | ) | (13,517 | ) | |||||||
Total Marketing & Events Group | 188,863 | 226,662 | 732,360 | 731,071 | |||||||||||
Travel & Recreation Group | 67,083 | 73,140 | 105,017 | 110,763 | |||||||||||
Total revenue | $ | 255,946 | $ | 299,802 | $ | 837,377 | $ | 841,834 | |||||||
Segment operating income (loss): | |||||||||||||||
Marketing & Events Group: | |||||||||||||||
U.S. Segment | $ | (9,039 | ) | $ | 1,069 | $ | 12,572 | $ | 22,044 | ||||||
International Segment | (5,751 | ) | 1,297 | 6,405 | 7,512 | ||||||||||
Total Marketing & Events Group | (14,790 | ) | 2,366 | 18,977 | 29,556 | ||||||||||
Travel & Recreation Group | 29,361 | 30,648 | 30,755 | 30,955 | |||||||||||
Segment operating income | 14,571 | 33,014 | 49,732 | 60,511 | |||||||||||
Corporate activities | (1,354 | ) | (3,468 | ) | (6,147 | ) | (7,498 | ) | |||||||
Operating income | 13,217 | 29,546 | 43,585 | 53,013 | |||||||||||
Interest income | 65 | 81 | 571 | 200 | |||||||||||
Interest expense | (1,198 | ) | (462 | ) | (3,452 | ) | (1,069 | ) | |||||||
Restructuring (charges) recoveries: | |||||||||||||||
Marketing & Events U.S. Segment | (25 | ) | (186 | ) | (496 | ) | (392 | ) | |||||||
Marketing & Events International Segment | (213 | ) | (128 | ) | (484 | ) | (1,648 | ) | |||||||
Travel & Recreation Group | (18 | ) | (30 | ) | (160 | ) | 41 | ||||||||
Corporate | (1 | ) | 106 | (402 | ) | 185 | |||||||||
Impairment charges: | |||||||||||||||
Marketing & Events International Segment | — | — | — | (884 | ) | ||||||||||
Income from continuing operations before income taxes | $ | 11,827 | $ | 28,927 | $ | 39,162 | $ | 49,446 |
|
(in thousands) | Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||
Total revenue | $ | — | $ | — | ||||
Costs and expenses | (7 | ) | (93 | ) | ||||
Loss from discontinued operations, before income taxes | (7 | ) | (93 | ) | ||||
Income tax benefit | 7 | 45 | ||||||
Loss from discontinued operations, net of tax | — | (48 | ) | |||||
Gain (loss) on sale of discontinued operations, net of tax | (979 | ) | 13,343 | |||||
Income (loss) from discontinued operations | (979 | ) | 13,295 | |||||
Income from discontinued operations attributable to noncontrolling interest | (157 | ) | (2,825 | ) | ||||
Income (loss) from discontinued operations attributable to Viad | $ | (1,136 | ) | $ | 10,470 |
Nine Months Ended September 30, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Income from continuing operations | $ | 515 | $ | 530 | ||||
Income from discontinued operations | — | 2,825 | ||||||
Net income attributable to noncontrolling interest | $ | 515 | $ | 3,355 |
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