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(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, net | 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 | 282 | |||||||
Revolving credit facility | 488 | |||||||
Accrued dilapidations | 417 | |||||||
Total liabilities acquired | 4,864 | |||||||
Total fair value of net assets acquired | 10,886 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 13,340 |
(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, net | 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 payable 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, net | 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, net | 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 |
Three Months Ended | Six Months Ended | |||||||
(in thousands, except per share data) | June 30, 2014 | |||||||
Revenue | $ | 275,748 | $ | 576,599 | ||||
Depreciation and amortization | $ | 9,666 | $ | 19,024 | ||||
Income from continuing operations | $ | 10,517 | $ | 19,932 | ||||
Net income attributable to Viad | $ | 9,251 | $ | 31,548 | ||||
Diluted net income per share | $ | 0.46 | $ | 1.56 | ||||
Basic net income per share | $ | 0.47 | $ | 1.58 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Raw materials | $ | 17,383 | $ | 16,749 | |||
Work in process | 13,122 | 15,652 | |||||
Inventories | $ | 30,505 | $ | 32,401 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Prepaid software maintenance | $ | 4,173 | $ | 1,934 | |||
Income tax receivable | 3,182 | 1,869 | |||||
Prepaid vendor payments | 2,596 | 2,689 | |||||
Prepaid rent | 1,300 | 186 | |||||
Prepaid taxes | 1,213 | 1,416 | |||||
Prepaid insurance | 852 | 2,170 | |||||
Prepaid other | 4,344 | 4,427 | |||||
Other | 1,891 | 2,749 | |||||
Other current assets | $ | 19,551 | $ | 17,440 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Land and land interests | $ | 29,722 | $ | 30,360 | |||
Buildings and leasehold improvements | 135,225 | 138,104 | |||||
Equipment and other | 314,716 | 319,435 | |||||
Gross property and equipment | 479,663 | 487,899 | |||||
Less: accumulated depreciation | (287,654 | ) | (288,328 | ) | |||
Property and equipment, net | $ | 192,009 | $ | 199,571 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Cash surrender value of life insurance | $ | 20,939 | $ | 20,866 | |||
Self-insured liability receivable | 7,728 | 7,728 | |||||
Workers’ compensation insurance security deposits | 4,250 | 4,250 | |||||
Other mutual funds | 2,371 | 2,536 | |||||
Other | 5,521 | 5,294 | |||||
Other investments and assets | $ | 40,809 | $ | 40,674 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Continuing operations: | |||||||
Self-insured liability accrual | $ | 6,567 | $ | 6,297 | |||
Accrued employee benefit costs | 4,109 | 3,215 | |||||
Accrued foreign income taxes | 3,375 | 2,370 | |||||
Accrued sales and use taxes | 2,745 | 3,624 | |||||
Accrued dividends | 2,099 | 2,107 | |||||
Current portion of pension liability | 1,729 | 1,641 | |||||
Deferred rent | 1,689 | 783 | |||||
Accrued professional fees | 1,078 | 1,228 | |||||
Accrued restructuring | 956 | 1,154 | |||||
Accrued rebates | 928 | 1,600 | |||||
Other | 9,389 | 2,837 | |||||
Total continuing operations | 34,664 | 26,856 | |||||
Discontinued operations: | |||||||
Environmental remediation liabilities | 272 | 350 | |||||
Self-insured liability accrual | 156 | 173 | |||||
Other | 434 | 408 | |||||
Total discontinued operations | 862 | 931 | |||||
Other current liabilities | $ | 35,526 | $ | 27,787 |
|
(in thousands) | Marketing & Events U.S. | Marketing & Events International | Travel & Recreation Group | Total | |||||||||||
Balance at December 31, 2014 | $ | 110,618 | $ | 42,221 | $ | 41,358 | $ | 194,197 | |||||||
Purchase price allocation adjustments | 230 | 211 | — | 441 | |||||||||||
Foreign currency translation adjustments | — | (1,524 | ) | (3,079 | ) | (4,603 | ) | ||||||||
Balance at June 30, 2015 | $ | 110,848 | $ | 40,908 | $ | 38,279 | $ | 190,035 |
June 30, 2015 | December 31, 2014 | ||||||||||||||
(in thousands) | Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||
Amortized intangible assets: | |||||||||||||||
Customer contracts and relationships | $ | 38,943 | $ | (5,188 | ) | $ | 41,624 | $ | (2,961 | ) | |||||
Other | 4,614 | (1,455 | ) | 4,576 | (732 | ) | |||||||||
Total amortized intangible assets | 43,557 | (6,643 | ) | 46,200 | (3,693 | ) | |||||||||
Unamortized intangible assets: | |||||||||||||||
Business licenses | 460 | — | 460 | — | |||||||||||
Other intangible assets | $ | 44,017 | $ | (6,643 | ) | $ | 46,660 | $ | (3,693 | ) |
(in thousands) | |||
Remainder of 2015 | $ | 3,629 | |
2016 | $ | 6,444 | |
2017 | $ | 5,605 | |
2018 | $ | 4,613 | |
2019 | $ | 4,226 | |
Thereafter | $ | 12,397 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Continuing operations: | |||||||
Self-insured liability accrual | $ | 12,931 | $ | 13,525 | |||
Self-insured excess liability | 7,728 | 7,728 | |||||
Accrued compensation | 6,930 | 6,824 | |||||
Deferred rent income | 3,188 | 2,787 | |||||
Foreign deferred tax liability | 2,094 | 2,135 | |||||
Accrued restructuring | 460 | 555 | |||||
Other | 3,331 | 5,117 | |||||
Total continuing operations | 36,662 | 38,671 | |||||
Discontinued operations: | |||||||
Environmental remediation liabilities | 4,365 | 4,395 | |||||
Self-insured liability accrual | 4,234 | 4,327 | |||||
Accrued income taxes | 997 | 1,119 | |||||
Other | 1,134 | 1,250 | |||||
Total discontinued operations | 10,730 | 11,091 | |||||
Other deferred items and liabilities | $ | 47,392 | $ | 49,762 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Revolving Credit Facility and Term Loan, 2.3% and 2.4% weighted-average interest rate at June 30, 2015 and December 31, 2014, respectively, due through 2019 | $ | 131,874 | $ | 139,500 | |||
Capital lease obligations, 6.0% weighted-average interest at both June 30, 2015 and December 31, 2014, due through 2018 | 1,390 | 1,520 | |||||
Total debt | 133,264 | 141,020 | |||||
Current portion | (29,532 | ) | (27,856 | ) | |||
Long-term debt and capital lease obligations | $ | 103,732 | $ | 113,164 |
|
Fair Value Measurements at Reporting Date Using | |||||||||||||||
(in thousands) | June 30, 2015 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobserved Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Money market funds | $ | 7,320 | $ | 7,320 | $ | — | $ | — | |||||||
Other mutual funds | 2,371 | 2,371 | — | — | |||||||||||
Total assets at fair value | $ | 9,691 | $ | 9,691 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Earnout contingent consideration liability | (1,114 | ) | — | — | (1,114 | ) | |||||||||
Total liabilities at fair value on a recurring basis | $ | (1,114 | ) | $ | — | $ | — | $ | (1,114 | ) | |||||
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 (loss) | 20,333 | (173 | ) | 20,160 | ||||||||
Dividends on common stock | (4,008 | ) | — | (4,008 | ) | |||||||
Common stock purchased for treasury | (5,969 | ) | — | (5,969 | ) | |||||||
Employee benefit plans | 4,790 | — | 4,790 | |||||||||
Unrealized foreign currency translation adjustment | (11,626 | ) | — | (11,626 | ) | |||||||
Tax benefits from share-based compensation | 232 | — | 232 | |||||||||
Other changes to accumulated other comprehensive income | 298 | — | 298 | |||||||||
Other | (1 | ) | (1 | ) | (2 | ) | ||||||
Balance at June 30, 2015 | $ | 339,436 | $ | 12,141 | $ | 351,577 |
(in thousands) | Total Viad Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||
Balance at December 31, 2013 | $ | 347,441 | $ | 9,102 | $ | 356,543 | ||||||
Net income | 28,624 | 2,404 | 31,028 | |||||||||
Dividends on common stock | (34,534 | ) | — | (34,534 | ) | |||||||
Common stock purchased for treasury | (11,610 | ) | — | (11,610 | ) | |||||||
Employee benefit plans | 4,004 | — | 4,004 | |||||||||
Unrealized foreign currency translation adjustment | (151 | ) | — | (151 | ) | |||||||
Unrealized gain on investments | 50 | — | 50 | |||||||||
ESOP allocation adjustment | 44 | — | 44 | |||||||||
Other | 36 | — | 36 | |||||||||
Balance at June 30, 2014 | $ | 333,904 | $ | 11,506 | $ | 345,410 |
(in thousands) | Unrealized Gains on Investments | Cumulative Foreign Currency Translation Adjustments | Unrecognized Net Actuarial Loss and Prior Service Credit, Net | Accumulated Other Comprehensive Income | ||||||||||||
Balance at December 31, 2014 | $ | 471 | $ | 12,415 | $ | (13,280 | ) | $ | (394 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 168 | (11,626 | ) | — | (11,458 | ) | ||||||||||
Amounts reclassified from AOCI, net of tax | (34 | ) | — | (31 | ) | (65 | ) | |||||||||
Net other comprehensive income (loss) | 134 | (11,626 | ) | (31 | ) | (11,523 | ) | |||||||||
Balance at June 30, 2015 | $ | 605 | $ | 789 | $ | (13,311 | ) | $ | (11,917 | ) |
Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
(in thousands) | 2015 | 2014 | ||||||||
Unrealized gains on investments | $ | 54 | $ | 40 | Interest income | |||||
Tax effect | (20 | ) | (15 | ) | Income taxes | |||||
$ | 34 | $ | 25 | |||||||
Recognized net actuarial loss(1) | $ | (345 | ) | $ | (413 | ) | ||||
Amortization of prior service credit(1) | 275 | 353 | ||||||||
Tax effect | 101 | 23 | Income taxes | |||||||
$ | 31 | $ | (37 | ) |
|
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Domestic Plans | ||||||||||||||||||||||||
Pension Plans | Postretirement Benefit Plans | Foreign Pension Plans | ||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 26 | $ | 22 | $ | 44 | $ | 60 | $ | 131 | $ | 105 | ||||||||||||
Interest cost | 275 | 266 | 139 | 201 | 131 | 160 | ||||||||||||||||||
Expected return on plan assets | (81 | ) | (117 | ) | — | — | (152 | ) | (162 | ) | ||||||||||||||
Amortization of prior service credit | — | — | (185 | ) | (148 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss | 143 | 85 | 134 | 108 | 2 | 2 | ||||||||||||||||||
Net periodic benefit cost | $ | 363 | $ | 256 | $ | 132 | $ | 221 | $ | 112 | $ | 105 |
Domestic Plans | ||||||||||||||||||||||||
Pension Plans | Postretirement Benefit Plans | Foreign Pension Plans | ||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 51 | $ | 45 | $ | 87 | $ | 94 | $ | 259 | $ | 209 | ||||||||||||
Interest cost | 526 | 546 | 316 | 377 | 260 | 320 | ||||||||||||||||||
Expected return on plan assets | (192 | ) | (220 | ) | — | — | (301 | ) | (323 | ) | ||||||||||||||
Amortization of prior service credit | — | — | (276 | ) | (296 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss | 268 | 204 | 273 | 209 | 4 | 5 | ||||||||||||||||||
Net periodic benefit cost | $ | 653 | $ | 575 | $ | 400 | $ | 384 | $ | 222 | $ | 211 |
|
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 | 643 | 98 | 544 | 1,285 | |||||||||||
Cash payments | (891 | ) | (235 | ) | (543 | ) | (1,669 | ) | |||||||
Adjustment to liability | — | — | (144 | ) | (144 | ) | |||||||||
Balance at June 30, 2015 | $ | 295 | $ | 1,024 | $ | 97 | $ | 1,416 |
|
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Revenue: | |||||||||||||||
Marketing & Events Group: | |||||||||||||||
U.S. | $ | 208,749 | $ | 168,839 | $ | 401,692 | $ | 390,234 | |||||||
International | 85,723 | 63,379 | 150,959 | 122,097 | |||||||||||
Intersegment eliminations | (7,903 | ) | (5,632 | ) | (9,154 | ) | (7,922 | ) | |||||||
Total Marketing & Events Group | 286,569 | 226,586 | 543,497 | 504,409 | |||||||||||
Travel & Recreation Group | 30,466 | 29,805 | 37,934 | 37,623 | |||||||||||
Total revenue | $ | 317,035 | $ | 256,391 | $ | 581,431 | $ | 542,032 | |||||||
Segment operating income: | |||||||||||||||
Marketing & Events Group: | |||||||||||||||
U.S. | $ | 18,974 | $ | 5,124 | $ | 21,611 | $ | 20,975 | |||||||
International | 11,109 | 3,896 | 12,156 | 6,215 | |||||||||||
Total Marketing & Events Group | 30,083 | 9,020 | 33,767 | 27,190 | |||||||||||
Travel & Recreation Group | 6,203 | 5,116 | 1,394 | 307 | |||||||||||
Segment operating income | 36,286 | 14,136 | 35,161 | 27,497 | |||||||||||
Corporate activities | (1,983 | ) | (1,991 | ) | (4,793 | ) | (4,030 | ) | |||||||
Operating income | 34,303 | 12,145 | 30,368 | 23,467 | |||||||||||
Interest income | 443 | 54 | 506 | 119 | |||||||||||
Interest expense | (1,103 | ) | (309 | ) | (2,254 | ) | (607 | ) | |||||||
Restructuring (charges) recoveries: | |||||||||||||||
Marketing & Events U.S. | (383 | ) | (244 | ) | (471 | ) | (206 | ) | |||||||
Marketing & Events International | (133 | ) | (990 | ) | (271 | ) | (1,520 | ) | |||||||
Travel & Recreation Group | (148 | ) | (135 | ) | (142 | ) | 71 | ||||||||
Corporate | (405 | ) | 4 | (401 | ) | 79 | |||||||||
Impairment charges: | |||||||||||||||
Marketing & Events International | — | (884 | ) | — | (884 | ) | |||||||||
Income from continuing operations before income taxes | $ | 32,574 | $ | 9,641 | $ | 27,335 | $ | 20,519 |
|
Three Months Ended | Six Months Ended | |||||||
(in thousands) | June 30, 2014 | |||||||
Total revenue | $ | — | $ | — | ||||
Costs and expenses | (18 | ) | (86 | ) | ||||
Loss from discontinued operations, before income taxes | (18 | ) | (86 | ) | ||||
Income tax benefit | 18 | 38 | ||||||
Loss from discontinued operations, net of tax | — | (48 | ) | |||||
Gain (loss) on sale of discontinued operations, net of tax | (964 | ) | 14,322 | |||||
Income (loss) from discontinued operations | (964 | ) | 14,274 | |||||
Income from discontinued operations attributable to noncontrolling interest | — | (2,668 | ) | |||||
Income (loss) from discontinued operations attributable to Viad | $ | (964 | ) | $ | 11,606 |
(in thousands) | 2015 | 2014 | ||||||
Loss from continuing operations | $ | (173 | ) | $ | (264 | ) | ||
Income from discontinued operations | — | 2,668 | ||||||
Net income (loss) attributable to noncontrolling interest | $ | (173 | ) | $ | 2,404 |
|
|
(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, net | 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 | 282 | |||||||
Revolving credit facility | 488 | |||||||
Accrued dilapidations | 417 | |||||||
Total liabilities acquired | 4,864 | |||||||
Total fair value of net assets acquired | 10,886 | |||||||
Excess purchase price over fair value of net assets acquired (“goodwill”) | $ | 13,340 |
(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, net | 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 | $ | 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, net | 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) | ||||||||
Purchase price paid as: | ||||||||
Cash | $ | 33,674 | ||||||
Additional purchase price payable 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, net | 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 |
Three Months Ended | Six Months Ended | |||||||
(in thousands, except per share data) | June 30, 2014 | |||||||
Revenue | $ | 275,748 | $ | 576,599 | ||||
Depreciation and amortization | $ | 9,666 | $ | 19,024 | ||||
Income from continuing operations | $ | 10,517 | $ | 19,932 | ||||
Net income attributable to Viad | $ | 9,251 | $ | 31,548 | ||||
Diluted net income per share | $ | 0.46 | $ | 1.56 | ||||
Basic net income per share | $ | 0.47 | $ | 1.58 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Raw materials | $ | 17,383 | $ | 16,749 | |||
Work in process | 13,122 | 15,652 | |||||
Inventories | $ | 30,505 | $ | 32,401 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Prepaid software maintenance | $ | 4,173 | $ | 1,934 | |||
Income tax receivable | 3,182 | 1,869 | |||||
Prepaid vendor payments | 2,596 | 2,689 | |||||
Prepaid rent | 1,300 | 186 | |||||
Prepaid taxes | 1,213 | 1,416 | |||||
Prepaid insurance | 852 | 2,170 | |||||
Prepaid other | 4,344 | 4,427 | |||||
Other | 1,891 | 2,749 | |||||
Other current assets | $ | 19,551 | $ | 17,440 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Land and land interests | $ | 29,722 | $ | 30,360 | |||
Buildings and leasehold improvements | 135,225 | 138,104 | |||||
Equipment and other | 314,716 | 319,435 | |||||
Gross property and equipment | 479,663 | 487,899 | |||||
Less: accumulated depreciation | (287,654 | ) | (288,328 | ) | |||
Property and equipment, net | $ | 192,009 | $ | 199,571 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Cash surrender value of life insurance | $ | 20,939 | $ | 20,866 | |||
Self-insured liability receivable | 7,728 | 7,728 | |||||
Workers’ compensation insurance security deposits | 4,250 | 4,250 | |||||
Other mutual funds | 2,371 | 2,536 | |||||
Other | 5,521 | 5,294 | |||||
Other investments and assets | $ | 40,809 | $ | 40,674 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Continuing operations: | |||||||
Self-insured liability accrual | $ | 6,567 | $ | 6,297 | |||
Accrued employee benefit costs | 4,109 | 3,215 | |||||
Accrued foreign income taxes | 3,375 | 2,370 | |||||
Accrued sales and use taxes | 2,745 | 3,624 | |||||
Accrued dividends | 2,099 | 2,107 | |||||
Current portion of pension liability | 1,729 | 1,641 | |||||
Deferred rent | 1,689 | 783 | |||||
Accrued professional fees | 1,078 | 1,228 | |||||
Accrued restructuring | 956 | 1,154 | |||||
Accrued rebates | 928 | 1,600 | |||||
Other | 9,389 | 2,837 | |||||
Total continuing operations | 34,664 | 26,856 | |||||
Discontinued operations: | |||||||
Environmental remediation liabilities | 272 | 350 | |||||
Self-insured liability accrual | 156 | 173 | |||||
Other | 434 | 408 | |||||
Total discontinued operations | 862 | 931 | |||||
Other current liabilities | $ | 35,526 | $ | 27,787 |
|
(in thousands) | Marketing & Events U.S. | Marketing & Events International | Travel & Recreation Group | Total | |||||||||||
Balance at December 31, 2014 | $ | 110,618 | $ | 42,221 | $ | 41,358 | $ | 194,197 | |||||||
Purchase price allocation adjustments | 230 | 211 | — | 441 | |||||||||||
Foreign currency translation adjustments | — | (1,524 | ) | (3,079 | ) | (4,603 | ) | ||||||||
Balance at June 30, 2015 | $ | 110,848 | $ | 40,908 | $ | 38,279 | $ | 190,035 |
June 30, 2015 | December 31, 2014 | ||||||||||||||
(in thousands) | Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||
Amortized intangible assets: | |||||||||||||||
Customer contracts and relationships | $ | 38,943 | $ | (5,188 | ) | $ | 41,624 | $ | (2,961 | ) | |||||
Other | 4,614 | (1,455 | ) | 4,576 | (732 | ) | |||||||||
Total amortized intangible assets | 43,557 | (6,643 | ) | 46,200 | (3,693 | ) | |||||||||
Unamortized intangible assets: | |||||||||||||||
Business licenses | 460 | — | 460 | — | |||||||||||
Other intangible assets | $ | 44,017 | $ | (6,643 | ) | $ | 46,660 | $ | (3,693 | ) |
(in thousands) | |||
Remainder of 2015 | $ | 3,629 | |
2016 | $ | 6,444 | |
2017 | $ | 5,605 | |
2018 | $ | 4,613 | |
2019 | $ | 4,226 | |
Thereafter | $ | 12,397 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Continuing operations: | |||||||
Self-insured liability accrual | $ | 12,931 | $ | 13,525 | |||
Self-insured excess liability | 7,728 | 7,728 | |||||
Accrued compensation | 6,930 | 6,824 | |||||
Deferred rent income | 3,188 | 2,787 | |||||
Foreign deferred tax liability | 2,094 | 2,135 | |||||
Accrued restructuring | 460 | 555 | |||||
Other | 3,331 | 5,117 | |||||
Total continuing operations | 36,662 | 38,671 | |||||
Discontinued operations: | |||||||
Environmental remediation liabilities | 4,365 | 4,395 | |||||
Self-insured liability accrual | 4,234 | 4,327 | |||||
Accrued income taxes | 997 | 1,119 | |||||
Other | 1,134 | 1,250 | |||||
Total discontinued operations | 10,730 | 11,091 | |||||
Other deferred items and liabilities | $ | 47,392 | $ | 49,762 |
|
(in thousands) | June 30, 2015 | December 31, 2014 | |||||
Revolving Credit Facility and Term Loan, 2.3% and 2.4% weighted-average interest rate at June 30, 2015 and December 31, 2014, respectively, due through 2019 | $ | 131,874 | $ | 139,500 | |||
Capital lease obligations, 6.0% weighted-average interest at both June 30, 2015 and December 31, 2014, due through 2018 | 1,390 | 1,520 | |||||
Total debt | 133,264 | 141,020 | |||||
Current portion | (29,532 | ) | (27,856 | ) | |||
Long-term debt and capital lease obligations | $ | 103,732 | $ | 113,164 |
|
Fair Value Measurements at Reporting Date Using | |||||||||||||||
(in thousands) | June 30, 2015 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobserved Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Money market funds | $ | 7,320 | $ | 7,320 | $ | — | $ | — | |||||||
Other mutual funds | 2,371 | 2,371 | — | — | |||||||||||
Total assets at fair value | $ | 9,691 | $ | 9,691 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Earnout contingent consideration liability | (1,114 | ) | — | — | (1,114 | ) | |||||||||
Total liabilities at fair value on a recurring basis | $ | (1,114 | ) | $ | — | $ | — | $ | (1,114 | ) | |||||
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 (loss) | 20,333 | (173 | ) | 20,160 | ||||||||
Dividends on common stock | (4,008 | ) | — | (4,008 | ) | |||||||
Common stock purchased for treasury | (5,969 | ) | — | (5,969 | ) | |||||||
Employee benefit plans | 4,790 | — | 4,790 | |||||||||
Unrealized foreign currency translation adjustment | (11,626 | ) | — | (11,626 | ) | |||||||
Tax benefits from share-based compensation | 232 | — | 232 | |||||||||
Other changes to accumulated other comprehensive income | 298 | — | 298 | |||||||||
Other | (1 | ) | (1 | ) | (2 | ) | ||||||
Balance at June 30, 2015 | $ | 339,436 | $ | 12,141 | $ | 351,577 |
(in thousands) | Total Viad Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||
Balance at December 31, 2013 | $ | 347,441 | $ | 9,102 | $ | 356,543 | ||||||
Net income | 28,624 | 2,404 | 31,028 | |||||||||
Dividends on common stock | (34,534 | ) | — | (34,534 | ) | |||||||
Common stock purchased for treasury | (11,610 | ) | — | (11,610 | ) | |||||||
Employee benefit plans | 4,004 | — | 4,004 | |||||||||
Unrealized foreign currency translation adjustment | (151 | ) | — | (151 | ) | |||||||
Unrealized gain on investments | 50 | — | 50 | |||||||||
ESOP allocation adjustment | 44 | — | 44 | |||||||||
Other | 36 | — | 36 | |||||||||
Balance at June 30, 2014 | $ | 333,904 | $ | 11,506 | $ | 345,410 |
(in thousands) | Unrealized Gains on Investments | Cumulative Foreign Currency Translation Adjustments | Unrecognized Net Actuarial Loss and Prior Service Credit, Net | Accumulated Other Comprehensive Income | ||||||||||||
Balance at December 31, 2014 | $ | 471 | $ | 12,415 | $ | (13,280 | ) | $ | (394 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 168 | (11,626 | ) | — | (11,458 | ) | ||||||||||
Amounts reclassified from AOCI, net of tax | (34 | ) | — | (31 | ) | (65 | ) | |||||||||
Net other comprehensive income (loss) | 134 | (11,626 | ) | (31 | ) | (11,523 | ) | |||||||||
Balance at June 30, 2015 | $ | 605 | $ | 789 | $ | (13,311 | ) | $ | (11,917 | ) |
Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
(in thousands) | 2015 | 2014 | ||||||||
Unrealized gains on investments | $ | 54 | $ | 40 | Interest income | |||||
Tax effect | (20 | ) | (15 | ) | Income taxes | |||||
$ | 34 | $ | 25 | |||||||
Recognized net actuarial loss(1) | $ | (345 | ) | $ | (413 | ) | ||||
Amortization of prior service credit(1) | 275 | 353 | ||||||||
Tax effect | 101 | 23 | Income taxes | |||||||
$ | 31 | $ | (37 | ) |
|
Domestic Plans | ||||||||||||||||||||||||
Pension Plans | Postretirement Benefit Plans | Foreign Pension Plans | ||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 26 | $ | 22 | $ | 44 | $ | 60 | $ | 131 | $ | 105 | ||||||||||||
Interest cost | 275 | 266 | 139 | 201 | 131 | 160 | ||||||||||||||||||
Expected return on plan assets | (81 | ) | (117 | ) | — | — | (152 | ) | (162 | ) | ||||||||||||||
Amortization of prior service credit | — | — | (185 | ) | (148 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss | 143 | 85 | 134 | 108 | 2 | 2 | ||||||||||||||||||
Net periodic benefit cost | $ | 363 | $ | 256 | $ | 132 | $ | 221 | $ | 112 | $ | 105 |
Domestic Plans | ||||||||||||||||||||||||
Pension Plans | Postretirement Benefit Plans | Foreign Pension Plans | ||||||||||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 51 | $ | 45 | $ | 87 | $ | 94 | $ | 259 | $ | 209 | ||||||||||||
Interest cost | 526 | 546 | 316 | 377 | 260 | 320 | ||||||||||||||||||
Expected return on plan assets | (192 | ) | (220 | ) | — | — | (301 | ) | (323 | ) | ||||||||||||||
Amortization of prior service credit | — | — | (276 | ) | (296 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss | 268 | 204 | 273 | 209 | 4 | 5 | ||||||||||||||||||
Net periodic benefit cost | $ | 653 | $ | 575 | $ | 400 | $ | 384 | $ | 222 | $ | 211 |
|
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 | 643 | 98 | 544 | 1,285 | |||||||||||
Cash payments | (891 | ) | (235 | ) | (543 | ) | (1,669 | ) | |||||||
Adjustment to liability | — | — | (144 | ) | (144 | ) | |||||||||
Balance at June 30, 2015 | $ | 295 | $ | 1,024 | $ | 97 | $ | 1,416 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Revenue: | |||||||||||||||
Marketing & Events Group: | |||||||||||||||
U.S. | $ | 208,749 | $ | 168,839 | $ | 401,692 | $ | 390,234 | |||||||
International | 85,723 | 63,379 | 150,959 | 122,097 | |||||||||||
Intersegment eliminations | (7,903 | ) | (5,632 | ) | (9,154 | ) | (7,922 | ) | |||||||
Total Marketing & Events Group | 286,569 | 226,586 | 543,497 | 504,409 | |||||||||||
Travel & Recreation Group | 30,466 | 29,805 | 37,934 | 37,623 | |||||||||||
Total revenue | $ | 317,035 | $ | 256,391 | $ | 581,431 | $ | 542,032 | |||||||
Segment operating income: | |||||||||||||||
Marketing & Events Group: | |||||||||||||||
U.S. | $ | 18,974 | $ | 5,124 | $ | 21,611 | $ | 20,975 | |||||||
International | 11,109 | 3,896 | 12,156 | 6,215 | |||||||||||
Total Marketing & Events Group | 30,083 | 9,020 | 33,767 | 27,190 | |||||||||||
Travel & Recreation Group | 6,203 | 5,116 | 1,394 | 307 | |||||||||||
Segment operating income | 36,286 | 14,136 | 35,161 | 27,497 | |||||||||||
Corporate activities | (1,983 | ) | (1,991 | ) | (4,793 | ) | (4,030 | ) | |||||||
Operating income | 34,303 | 12,145 | 30,368 | 23,467 | |||||||||||
Interest income | 443 | 54 | 506 | 119 | |||||||||||
Interest expense | (1,103 | ) | (309 | ) | (2,254 | ) | (607 | ) | |||||||
Restructuring (charges) recoveries: | |||||||||||||||
Marketing & Events U.S. | (383 | ) | (244 | ) | (471 | ) | (206 | ) | |||||||
Marketing & Events International | (133 | ) | (990 | ) | (271 | ) | (1,520 | ) | |||||||
Travel & Recreation Group | (148 | ) | (135 | ) | (142 | ) | 71 | ||||||||
Corporate | (405 | ) | 4 | (401 | ) | 79 | |||||||||
Impairment charges: | |||||||||||||||
Marketing & Events International | — | (884 | ) | — | (884 | ) | |||||||||
Income from continuing operations before income taxes | $ | 32,574 | $ | 9,641 | $ | 27,335 | $ | 20,519 |
|
Three Months Ended | Six Months Ended | |||||||
(in thousands) | June 30, 2014 | |||||||
Total revenue | $ | — | $ | — | ||||
Costs and expenses | (18 | ) | (86 | ) | ||||
Loss from discontinued operations, before income taxes | (18 | ) | (86 | ) | ||||
Income tax benefit | 18 | 38 | ||||||
Loss from discontinued operations, net of tax | — | (48 | ) | |||||
Gain (loss) on sale of discontinued operations, net of tax | (964 | ) | 14,322 | |||||
Income (loss) from discontinued operations | (964 | ) | 14,274 | |||||
Income from discontinued operations attributable to noncontrolling interest | — | (2,668 | ) | |||||
Income (loss) from discontinued operations attributable to Viad | $ | (964 | ) | $ | 11,606 |
(in thousands) | 2015 | 2014 | ||||||
Loss from continuing operations | $ | (173 | ) | $ | (264 | ) | ||
Income from discontinued operations | — | 2,668 | ||||||
Net income (loss) attributable to noncontrolling interest | $ | (173 | ) | $ | 2,404 |
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