VIAD CORP [VVI] Filings

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

10-Q 1 vvi-20240930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to____________

Commission file number: 001-11015

Viad Corp

(Exact name of registrant as specified in its charter)


Delaware		36-1169950
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7000 East 1st Avenue Scottsdale, Arizona		85251-4304
(Address of principal executive offices)		(Zip Code)

(602) 207-1000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.50 Par Value	VVI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 5, 2024, there were 21,201,906 shares of Common Stock ($1.50 par value) outstanding.

INDEX


		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023	1
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023	2
	Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and 2023	3
	Condensed Consolidated Statements of Stockholders’ Equity and Mezzanine Equity for the Three Months Ended March 31, June 30, and September 30, 2024 and 2023	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	40
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 5.	Other Information	42
Item 6.	Exhibits	43

SIGNATURES		44

In this report, for periods presented, “we,” “us,” “our,” “the Company,” and “Viad Corp” refer to Viad Corp and its subsidiaries.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

VIAD CORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	September 30,			December 31,
(in thousands, except share data)	2024			2023
Assets
Current assets
Cash and cash equivalents	$	64,552		$	52,704
Accounts receivable, net of allowances of $3,661 and $2,901, respectively		168,635			128,019
Inventories		11,246			10,153
Current contract costs		28,909			20,202
Prepaid insurance		6,303			2,925
Other current assets		29,944			21,774
Total current assets		309,589			235,777
Property and equipment, net		588,864			592,891
Other investments and assets		20,352			17,047
Operating lease right-of-use assets		100,404			109,774
Deferred income taxes		2,304			1,930
Goodwill		121,905			123,906
Other intangible assets, net		52,410			55,997
Total Assets	$	1,195,828		$	1,137,322
Liabilities, Mezzanine Equity, and Stockholders’ Equity
Current liabilities
Accounts payable	$	120,355		$	77,405
Contract liabilities		67,721			52,980
Accrued compensation		40,249			31,309
Operating lease obligations		17,807			17,334
Other current liabilities		53,213			42,397
Current portion of debt and finance obligations		8,314			8,371
Total current liabilities		307,659			229,796
Long-term debt and finance obligations		381,887			444,304
Pension and postretirement benefits		15,859			16,457
Long-term operating lease obligations		96,502			106,109
Other deferred items and liabilities		67,265			70,711
Total liabilities		869,172			867,377
Commitments and contingencies
Convertible Series A Preferred Stock, $0.01 par value, 180,000 shares authorized, 135,000 shares issued and outstanding		132,591			132,591
Redeemable noncontrolling interest		4,382			4,733
Stockholders’ equity
Viad Corp stockholders’ equity:
Common stock, $1.50 par value, 200,000,000 shares authorized, 24,934,981 shares issued and outstanding		37,402			37,402
Additional capital		572,219			568,230
Accumulated deficit		(280,017	)		(326,084	)
Accumulated other comprehensive loss		(46,551	)		(40,394	)
Common stock in treasury, at cost, 3,745,837 and 3,948,316 shares, respectively		(186,288	)		(195,721	)
Total Viad stockholders’ equity		96,765			43,433
Non-redeemable noncontrolling interest		92,918			89,188
Total stockholders’ equity		189,683			132,621
Total Liabilities, Mezzanine Equity, and Stockholders’ Equity	$	1,195,828		$	1,137,322

Refer to Notes to Condensed Consolidated Financial Statements.

VIAD CORP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share data)	2024			2023			2024			2023
Revenue:
Services	$	375,236		$	285,119		$	912,126		$	765,598
Products		80,468			80,780			195,613			181,403
Total revenue		455,704			365,899			1,107,739			947,001
Costs and expenses:
Costs of services		298,081			222,794			798,666			681,409
Costs of products		65,075			67,063			171,529			161,602
Corporate activities		7,757			3,579			17,612			10,255
Gain on sale of ON Services		—			—			—			204
Interest expense, net		11,428			12,476			35,858			37,081
Other expense, net		407			554			1,287			1,533
Restructuring charges (recoveries)		383			480			(326	)		1,125
Impairment charges		6,110			—			6,110			—
Total costs and expenses		389,241			306,946			1,030,736			893,209
Income from continuing operations before income taxes		66,463			58,953			77,003			53,792
Income tax expense		10,509			9,173			17,247			13,623
Income from continuing operations		55,954			49,780			59,756			40,169
Income (loss) from discontinued operations		(90	)		(654	)		743			(855	)
Net income		55,864			49,126			60,499			39,314
Net income attributable to non-redeemable noncontrolling interest		(7,178	)		(7,716	)		(8,062	)		(8,221	)
Net (income) loss attributable to redeemable noncontrolling interest		(71	)		(139	)		372			270
Net income attributable to Viad	$	48,615		$	41,271		$	52,809		$	31,363
Diluted income per common share:
Continuing operations attributable to Viad common stockholders	$	1.65		$	1.44		$	1.64		$	0.96
Discontinued operations attributable to Viad common stockholders		—			(0.03	)		0.03			(0.04	)
Net income attributable to Viad common stockholders	$	1.65		$	1.41		$	1.67		$	0.92
Weighted-average outstanding and potentially dilutive common shares		21,615			21,174			21,517			21,025
Basic income per common share:
Continuing operations attributable to Viad common stockholders	$	1.68		$	1.46		$	1.65		$	0.97
Discontinued operations attributable to Viad common stockholders		—			(0.03	)		0.04			(0.04	)
Net income attributable to Viad common stockholders	$	1.68		$	1.43		$	1.69		$	0.93
Weighted-average outstanding common shares		21,166			20,885			21,107			20,825
Amounts attributable to Viad
Income from continuing operations	$	48,705		$	41,925		$	52,066		$	32,218
Income (loss) from discontinued operations		(90	)		(654	)		743			(855	)
Net income attributable to Viad	$	48,615		$	41,271		$	52,809		$	31,363

Refer to Notes to Condensed Consolidated Financial Statements.

VIAD CORP

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2024			2023			2024			2023
Net income	$	55,864		$	49,126		$	60,499		$	39,314
Other comprehensive income (loss):
Unrealized foreign currency translation adjustments		4,314			(7,840	)		(6,567	)		110
Change in fair value of interest rate cap		(157	)		(122	)		277			316
Change in net actuarial loss, net of tax (1)		(50	)		60			106			48
Change in prior service cost, net of tax (1)		9			17			27			56
Comprehensive income		59,980			41,241			54,342			39,844
Non-redeemable noncontrolling interest:
Comprehensive income attributable to non-redeemable noncontrolling interest		(7,178	)		(7,716	)		(8,062	)		(8,221	)
Unrealized foreign currency translation adjustments		971			(1,513	)		(1,181	)		287
Redeemable noncontrolling interest:
Comprehensive (income) loss attributable to redeemable noncontrolling interest		(71	)		(139	)		372			270
Comprehensive income attributable to Viad	$	53,702		$	31,873		$	45,471		$	32,180

(1) The tax effect on other comprehensive income (loss) is not significant.

Refer to Notes to Condensed Consolidated Financial Statements.

VIAD CORP

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND MEZZANINE EQUITY

(Unaudited)


																								Mezzanine Equity
(in thousands)	Common Stock		Additional Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Common Stock in Treasury			Total Viad Equity			Non-Redeemable Non-Controlling Interest			Total Stockholders’ Equity			Redeemable Non-Controlling Interest			Convertible Series A Preferred Stock
Balance, December 31, 2023	$	37,402	$	568,230		$	(326,084	)	$	(40,394	)	$	(195,721	)	$	43,433		$	89,188		$	132,621		$	4,733		$	132,591
Net loss		—		—			(25,117	)		—			—			(25,117	)		(923	)		(26,040	)		(203	)		—
Dividends on convertible preferred stock		—		—			(1,950	)		—			—			(1,950	)		—			(1,950	)		—			—
Capital contributions from noncontrolling interest		—		—			—			—			—			—			149			149			—			—
Change in fair value of interest rate cap		—		—			—			218			—			218			—			218			—			—
Employee benefit plans		—		(5,387	)		—			—			5,358			(29	)		—			(29	)		—			—
Share-based compensation - equity awards		—		3,107			—			—			—			3,107			—			3,107			—			—
Unrealized foreign currency translation adjustment		—		—			—			(7,502	)		—			(7,502	)		(1,570	)		(9,072	)		(107	)		—
Amortization of net actuarial loss, net of tax		—		—			—			85			—			85			—			85			—			—
Amortization of prior service cost, net of tax		—		—			—			19			—			19			—			19			—			—
Other, net		—		(17	)		—			—			—			(17	)		—			(17	)		—			—
Balance, March 31, 2024	$	37,402	$	565,933		$	(353,151	)	$	(47,574	)	$	(190,363	)	$	12,247		$	86,844		$	99,091		$	4,423		$	132,591
Net income (loss)		—		—			29,311			—			—			29,311			1,807			31,118			(240	)		—
Dividends on convertible preferred stock		—		—			(1,950	)		—			—			(1,950	)		—			(1,950	)		—			—
Distributions to noncontrolling interest		—		—			—			—			—			—			(3,300	)		(3,300	)		—			—
Change in fair value of interest rate cap		—		—			—			216			—			216			—			216			—			—
Employee benefit plans		—		(515	)		—			—			1,737			1,222			—			1,222			—			—
Share-based compensation - equity awards		—		3,679			—			—			—			3,679			—			3,679			—			—
Unrealized foreign currency translation adjustment		—		—			—			(3,379	)		—			(3,379	)		(582	)		(3,961	)		16			—
Amortization of net actuarial loss, net of tax		—		—			—			71			—			71			—			71			—			—
Amortization of prior service cost, net of tax		—		—			—			(1	)		—			(1	)		—			(1	)		—			—
Other, net		—		684			(893	)

VIAD CORP [VVI] Filings
10-Q	[2024-11-07]
10-Q	[2024-08-07]
10-Q	[2024-05-03]
10-K	[2024-03-01]
10-Q	[2023-11-03]
10-Q	[2023-08-04]
10-Q	[2023-05-05]
10-K	[2023-02-28]
10-Q	[2022-11-04]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-05]
10-Q	[2021-08-09]
10-Q	[2021-05-07]
10-K	[2021-03-02]
10-Q	[2020-11-06]
10-Q	[2020-08-07]
10-Q	[2020-06-22]
10-K	[2020-02-26]
10-Q	[2019-11-01]
10-Q	[2019-08-02]
10-Q	[2019-05-03]
10-K	[2019-02-27]
10-Q	[2018-11-02]
10-Q	[2018-08-06]
10-Q	[2018-05-09]
10-K	[2018-02-28]
10-Q	[2017-11-06]
10-Q	[2017-08-04]
10-Q	[2017-05-05]
10-K	[2017-03-06]
10-Q	[2016-11-04]
10-Q	[2016-08-05]
10-Q	[2016-05-06]
10-K	[2016-03-11]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-08]
10-K	[2015-03-13]
10-Q	[2014-11-10]
10-Q	[2014-08-08]
10-Q	[2014-05-09]
10-K	[2014-03-07]
10-Q	[2013-11-08]
10-Q	[2013-08-08]
10-Q	[2013-05-09]
10-K	[2013-03-11]
10-Q	[2012-11-08]
10-Q	[2012-08-08]
10-Q	[2012-05-09]
10-K	[2012-03-09]