Q4 2019 Earnings Call
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Welcome to the VIP Corp. fourth quarter earnings call.
At this time Oliver.
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[laughter]. Good afternoon. Thank you for joining us for beyond 2019 fourth quarter and full year earnings conference call.
During the call you'll be hearing from Steve Monster, our president and CEO and Ellen Ingersoll, Our Chief Financial Officer.
Certain statements.
Made during the call, which are not historical facts may constitute forward looking statements.
Information concerning business and other risk factors that could cause actual results to materially differ from those in the forward looking statements can be found at our annual and quarterly reports filed with the FCC.
Well, the referring to certain non-GAAP measures during the.
Call, including income or loss before other items adjusted segment EBITDA and adjusted segment operating income or loss.
Important disclosures regarding these measures, including reconciliations to net income or loss attributable to be on.
Can be found and able to <unk> earnings press release, which.
Is available on our website at Www Dot Dot com.
Now I'd like to turn the call over to Steve.
Thank you for joining us on todays call.
Sure. It Ngs delivered solid revenue growth for the 2019 fourth quarter and full year, how do we expect significant growth in 2020 from Bose.
Businesses.
Pursued had an exciting here and I'm very proud of the many growth opportunities. The team has worked diligently to create an executed successfully.
We continue to pursue a refresh build bike room strategy by refreshing our existing experiences to maximize revenues.
Building news.
Your answers with economies of scale and scope and by strategic asset that drive guest experiences.
We are leveraging to growth platforms within pursue it's like chronic locations and its flyover attractions to become the world's leading provider of experience will adventure travel.
And we've made great progress.
Yes accelerating growth within each of these platforms during 2019.
Within our iconic locations, we completed several significant growth projects to refresh and Peru, and expand our collection of World Classic sphere experiences.
Canyon and believed lake and Jasper.
We refreshed the food and beverage and retail offerings and increased ancillary revenue per visitor at our when song Lodge and Alaska, We built a 36 room expansion and increased cross selling of our nearby popular and high margin Q nine fjord Marine sightseeing tour attraction.
I.
The Columbia Icefield, we rebranded and renovated aren't Glacier view lodge to create a premium all inclusive hospitality experience with exclusive activities at our nearby Glacier adventure and Glacier skywalk attractions.
This glacier view resort was recognized as one of the doors.
Five best hotels in Canada.
Your Glacier National Park, we built the West Glacier RV Park and cabin village, which is ideally situated at the west entrance of the park and adjacent to our existing amenities in West Glacier.
Each of these growth projects has enhanced the guest.
And improved our market position and maximize our returns for this year and beyond.
On the acquisition front, we completed three transactions during 2019 within our iconic locations platform. The first was the tuck in acquisition of the Bell the chalet in West Glacier.
Sure.
The second what's the purchase of 60% controlling interests in the Mountain Park lodges seven hotel properties and Jasper National Park in early June.
These 735, guestrooms represent 31% of the lodging market and are ideally situated near three of our.
Attractions.
We experienced very strong results during our first season operating these properties and we see a meaningful opportunity to accelerate revenue growth through our revenue management and refresh efforts going forward.
Finally in July we announced that we acquired a 51% controlling stake.
In an Icelandic entity that will operate a new geothermal in June in Iceland.
This all season attraction will have an ideal ocean front location in close proximity to downtown ratio that.
Development efforts are underway and we expect to opened a new sky lagoon in 2021.
We also continue to realize growth in our existing assets from our revenue management efforts and our commitment to excellent cost guest experiences.
We maximize revenue by managing price and filling capacity based on our understanding of who our guest star when they can visit and what experience.
Is there seeking.
We have developed our own ability to improve quality and experience at our previously refreshed Mount Royal Hotel and Banff gondola traction.
The Mount Royal Hotel has climbed to the number two hotel and they have on trip advisor and is capturing strong growth in.
Far.
The Banff gondola now boasts the number one ranking on trip advisor for both attraction and restaurant and band and we continued into two delivered year over year growth in revenue per visitor.
Pursuits other growth platform flyover attractions offers and exhilarating.
Ride with state of the Arden technology that gives the feeling of flight with full motion seeding over incredible scenery on a largest spherical screen with special effects featuring wind missed consent.
We acquired our first flavor attraction flyover, Canada in Vancouver.
Over in December 2016, as an established and proven concept generating high margins with an opportunity to grow.
Using this cutting edge technology, and our operational expertise, we see expanding flyover attractions around the world as a meaningful and profitable growth strategy.
In late August we opened our second flyover attraction flavor, Iceland Inratio Vic.
Which has already achieved the number two rating on trip advisor.
We also have two additional flyover attractions in development.
Flavor Las Vegas is expected to open in 2021.
And flyover, Canada in Toronto is expected to open in 2022.
We design each flyover attraction with a seat capacity to meet the demand of the local tourism market.
Flyover, Las Vegas, and flyover, Canada, Toronto will be our largest thus far at 80 seats.
Each which is based on the significant visitation to these markets.
Across both platforms within pursued our strong hospitality cost culture differentiates us and as a key to our success.
Engage team members create extraordinary guest experiences, which ultimately drives.
Long term profitable growth.
Our positive guest feedback and improved financial metrics also support that we know how to position our properties in the market effectively.
Going forward, we continue to seek value enhancing opportunities to grow pursued through our refresh go by strategy.
We have a strong pipeline of high quality bucket list experiences and iconic locations when perennial demand that we that we are diligently pursuing.
And we are actively evaluating other visually iconic locations with strong visitation to continue expanding the flyover platform.
And now I'll ask Alan to comment a little bit on pursues financial results Alan Thanks, Steve.
Good afternoon, everyone for the fourth quarter proceeds revenue was 21.7 million up 6.5 million from the prior year, reflecting incremental revenue of 3.8 million from acquisitions completed during 2000.
Total 1.6 million revenue from flavor, Iceland, and other account organic growth.
Christine fourth quarter adjusted segment EBITDA declined by 1.2 million, primarily reflecting additional cost to support the ongoing growth of purchasing.
First it delivered full year revenue that 222.8 million.
20.3% from 2018.
This growth came from acquisitions.
On an organic basis proceeds revenue grew 19.8 million or 10.7%.
Our various refreshing built investments contributed approximately $10 million and organic revenue growth and our same store.
Revenues grew at a mid single digit rate.
Per seems full year adjusted segment EBITDA grew 18.3% to 81.2 million.
The acquisitions at Mountain Park lodges and about one chalet contributed adjusted segment EBITDA at 9.5 million with the remaining Chris being driven by our our or.
Ganic revenue growth and back to Steve.
Now, let's switch gears and talk a little bit about GTS GDS is making great progress against our strategic objectives to simplify our business grow our profitability long term and transform into the preferred full service provider for live events our.
Working team is focused on serving client our clients driving profitable revenue growth and managing our costs as a testament to our commitment to providing the best customer service experience for our clients. The GDS National Service Center achieved the JD power certification for phone support for 11 consecutive.
Five years and became the first company to receive the JD power certification for chat support this year I'm very proud of our employees and their dedicate dedication to providing service excellence.
One of the ways that we can simplify our business is to standardize our product offerings in a manner that drives client satisfaction.
Auction and ease of execution.
This year, we introduced a new modern standardized registration counter system for check in had our events that has created delivery efficiencies and received a very positive client feedback.
In addition, Gs launched exhibit ready.
A new exhibit rental offering which serves a turnkey solution for corporate clients exhibiting at trade shows with smaller footprints.
On services, our USA the company launched scenic ready a new turnkey seen design solution that combines a lightweight recyclable aluminum frame.
Framing system with high impact graphics, digital content and lighting and to create a custom stage design that decreases set up time.
We continue to look for additional ways to meet the needs of our clients more efficiently and effectively.
Another way that we can simplify our business is to rationalize arpus.
Cities.
During the year, we strengthened our operational efficiencies through consolidating facilities in Las Vegas, and various other small us operations, reducing our footprint facility at our facility footprint in Canada, and streamlining our organizational structure.
These.
Actions will enhance our ability to serve our clients and help improve our cost structure for years ahead.
Within our largest market segments exhibitions and conferences, we continue to grow same show revenue at low single digits and we expect this trend to continue into 2020.
We have seen softness from two industry sectors retail in auto and we believe these sectors have stabilized at lower growth rates than the rest of the industry.
This year, our revenue was impacted.
By negative show rotation of about $15 million from non.
You'll shows that took place in 2018.
In 2020, our revenue will benefit from about $100 million of positive show rotation driven largely by three major non annual events that will all occur in 2020.
Conexpo Conagra occurs every three years during the first.
Quarter I MTS occurs every two years during the third quarter mine Expo occurs every four years during the third quarter.
Our team is very excited and gearing up for a big year of activity.
As a global leader in the exhibition and conference segment.
Yes as.
Leveraging our relationships with corporate marketers and existing capabilities to penetrate the large higher growth and margin corporate event market.
The team is making great progress against his strategic goal and increased revenue from corporate events.
By 11.8%.
Year over year during the 2019.
We partnered with many major brands like Bell helicopter Halliburton, Lockheed Martin Boeing Saudi Aramco, Moulay Komatsu Hormel Starbucks in cloud fees during the fourth quarter, we renewed business with J.D.A.
Same pfizer as well as one new business with Green sphere.
Summit Aviation fresh food group than end. This we continue to see strong demand from corporate marketers to create engaging and immersive brand experiences at events were encouraged by our early success penetrating.
Important segment of the market and we see significant runway ahead.
And now I'll turn it over to Ellen person financial commentary Alan Thanks Jade.
For the fourth quarter GSS revenue was 299.6 million up 17.9 million or 6.3% from the prior year.
Approximately.
$25 million in this revenue per it lifts. The result of positive show rotation and with the remaining drag coming primarily from new business plan and same show growth.
Setting aside the impact of share rotation, both in North America segment in the EMEA segment realized mid single digit revenue growth during the quarter.
Key into fourth quarter adjusted.
Segment EBITDA increased by 1.2 million from the 2018 quarter, primarily driven by higher revenue, partially offset by accruals for performance based incentive fees earned in 2019.
As a reminder, Keith did not achieve a short term incentive payout for 2008.
Yes delivered full year revenue.
Growth at 3.4% or $38 million.
Adjusting for the 15 million or impact of negative share rotation and the 11.2 million dollar impact from unfavorable exchange rate variances.
Yes, its full year revenue grew by about $64 million.
This reflects mid single digit growth.
Within both in North America segment, and the amazed segment due to new business wins in underlying business growth.
As Steve mentioned, we realized strong revenue growth of about 11.8% within the corporate event market segment.
Well, our US base same show revenue from exhibitions and conferences grew at a low single.
That rate of 1.3%.
Yes, its full year adjusted segment EBITDA declined 6.2 million from 2018 as accruals for performance based incentives earned in 2019 more than offset that flow through on revenue growth.
Yes, as adjusted segment operating income declined in.
According to a lesser degree due to lower depreciation and amortization.
Yes, it's already a business that low capital intensity and we continue to seek ways to streamline the business and improve our operating leverage across the network.
During the fourth quarter, we identified opportunities to improve the asset utilization cost structure and.
Margin profile of our UK based audio visual services business.
It's fitness has historically term UK market in a fairly diverse manner with clients ranging from corporate conveying to exhibitions and conferences.
Across the UK.
Going forward, we intend to be more selective about how we.
Clients in the market, so that we can maximize asset utilization serving higher profitability account.
We recorded a pretax asset impairment charge and $5.3 million during the fourth quarter, primarily related to our review.
Okay. Thanks.
For the at as a whole.
We reported full year consolidated adjusted segment EBITDA of 152.7 million.
Which is up 4.4%.
From 2018, as lower results that G.S., where more than offset by strong growth pursue.
Our consolidated cash flow from operations was 108.1.
1 million for the year.
We reinvested 76.1 million back into the business your capital expenditures, including approximately $35 million for growth projects and pursue.
About $10 million from margin driving investment that gene yes.
And we deployed another $92 million toward acquisitions at.
Yes.
We continue to maintain a strong balance sheet leverage ratio of 2.5 at December 31st our debt was 342.3 million and our cash and cash equivalents totaled 62 million at the end of year.
Our GAAP basis net income attributable to be yet for the 2019 full.
There was a dollar and two per share.
This figure includes after tax charges of $11.7 million related to any pension withdrawal and 6.4 million related to legal settlement that we discussed on previous earnings call.
As well as restructuring charges of 6.3 million after tax.
And the asset.
In charge of 4.3 million after tax.
Which were primarily related to strategic simplification and profit improvement actions actually yes.
Finally, it included flavor startup costs and acquisition related costs totaling about 4.2 million after tax.
And favorable tax matters at 4.2 million.
Our full year income before other items was Q2 dollars in 48 cents per share up 6% from two hours in 34 cents per share in 2018.
Our higher per share earnings primarily reflects growth in our adjusted segment operating income and a lower effective tax rate, partially offset by increases in.
Interest expense and income attributable to non controlling interests.
And now I'll cover our guidance for 2020 before returning effect.
For the first quarter, we expect income before other items to be in the range of one cents to 16 cents per share.
This compares to a loss per share of 51 cents.
In 2019 first quarter.
Improvement primarily reflects positive show rotation at GE, as which we expect will approximate $16 million.
At this point, we have not experiencing meaningful impact on our business from the Corona buyers either in terms of current volumes or future bookings.
And while we believe our risk for the first quarter is low given its seasonally slow period pursued with minimal exposure to long haul travelers it as possible we could feel some effect.
Overall pursuit works with about 8000 tour and travel partners and 80 countries. The team worked hard to balance demand between travel partners.
Errors in certain countries. So that we're never out overweight in one visitor Oregon.
The majority of our Chinese visitors travel between May and early October.
At present group travel outbound from China is affected by the travel all in these inbound numbers are small for us through the end of March.
Of our approximately 2.5 million attraction visitors only about 9% or Chinese based group travelers to plans could be affected by the travel halt.
Because it is difficult to estimate the severity or duration of travel disruptions caused by the current a virus at this time.
Current guidance range, our current guidance ranges.
In the virus was minimal impact on in the first quarter or the full year.
For the full year. We currently expect our consolidated adjusted segment EBITDA increased by about 42 million to $53 million driven by growth Apple GPS and proceed.
We expect yes, its full year revenue to increase by 11 to 13.
10% driven by positive show rotation of about $100 million and continued new business wins.
We expect strong flow through on this revenue.
In the range of about 30% duty operating leverage that exists with the GDS business.
We expect GSS full year adjusted.
Segment EBITDA to be in the range of $109 million to $114 million as compared to 71.5 million in 2019.
At pursuit, we expect full year revenue growth in the range of 12% to 17% driven by incremental revenue at 19 to 21 million from Mount Apart.
Watches and flavor I fun.
Well, it's mid single digit to high single digit growth across the rest of our attractions and hospitality.
Charlie asset.
We expect to pursue adjusted segment EBITDA to grow by about $5 million to $11 million.
These ranges reflect a slight reduction in proceeds strong EBITDA.
At a margin, which is due in part to owning that and PERC latches during a seasonally slower months of January through May when margins are meaningfully lower than the full year margin for these properties.
It also reflects investments to support the ongoing expansion precedes business.
We expect our full year cash flow from operations to be in that range.
The $140 million to $150 million.
We expect capital expenditures to be in the range at $93 million to $99 million, which includes approximately $45 million of gross capex it pursuit.
$10 million at margin driving Capex at GE yeah.
Additional guidance can be found in earnings press.
Really.
And with that I'll turn it back.
Thanks, Alan in closing, we're pleased with our performance in 2019 and excited about the opportunities that lie ahead in 2020 and beyond.
The significant progress we've achieved on our growth initiatives. This year has set us up for a bright future with long term.
Profitability.
With respect to the krona virus as Alan mentioned, we do not it we have not experience any meaningful impact on our business, thus far and we're hopeful that swift progress we made to treat and prevent the virus ahead of pursuits peak summer season.
Although it's impossible to predict.
Any accuracy, how our 2020 financial performance will be affected by the current a virus, we believe that any impact will be temporary.
And we still expect to realize significant growth over 2019 with GPS is strong show rotation schedule.
Importantly, we expect to generate a large amount of operating.
Cash flow during the 20 during 2020 from about $100 million of positive show rotation revenue at GPS that we can reinvest into the business using disciplined capital allocation to drive value.
We lead with a holistic view of our businesses to determine where our.
Segments will generate the highest return to accelerate growth.
Our soon has three future high margin attractions that are expected to open in 2021, and 2022, including flyover Las Vegas, the new Sky Lagoon in Iceland, and flyover, Canada, Toronto that will also generate.
Inefficient cash flow and helped partially offset the negative show rotation revenue falling 2020.
Additionally, we have a robust pipeline of iconic experiences with strong returns at pursuit and substantial runway to capture market share in the higher margin corporate events segment that.
Yes, we're confident in our growth strategy and committed to maximizing shareholder value.
I want to thank the entire VR team for their hard work and dedication I'm very proud of what we've already accomplished and I'm excited about the new growth opportunities that we're actively pursuing.
With that we will open up the call for questions.
Debbie can you please open it for one.
Certainly thank you if you would like to ask a question. Please press star followed by the number one and yourself.
Where are you name and company named clearly when Thompson.
Cancel your request press star followed by the numbers change.
And our first question will come.
Kartik Mehta with North Coast Research. Your line is now open.
Good evening Ethan Allen.
You talked about obviously, the GE as business and a success, you're having on the corporate expense side and I'm wondering what percentage of the now in its corporate designs for GE Hudson.
Good.
With that segment of the business in 2020.
Thanks Kartik. Thanks for the question. So we are very excited about the corporate events segment within GTS I think we mentioned in 2018 and was 14% of our revenue.
And we've seen.
But growing.
So 14% of total GBS revenue and we've seen that grow pretty substantially.
We kind of forecast.
Significant run where significant growth in the coming years, we think we have pretty good runway.
Our growth it's been one of the fastest areas of growth.
Growth within G.
So what we're optimistic about our opportunities and we're excited about what what we can do within that segment.
And then.
As you look at some of the leading indicators for the trade shows that are happening in 2020 years in June 14 out.
Yes.
2020, you know feature.
What are some of them not to to look out and where do they stand in terms of holds for the industry.
So I think there's some theres some common metrics that that we look at as well as the entire industry.
We'll look at the square footage of.
Overall square footage for the events, which ties are correlates pretty strong to our revenue within those events. We'll also look at the number of exhibitors and the number of attendees that that are at the event.
And these are metrics at the industry follows pretty regularly they're part of the C or.
Her center for industry research.
Report that comes out throughout the year.
So those are those are the metrics we look at when we look forward, we think that overall the industry is in good health.
Performing at kind of low single digits, that's what we see from a same show.
Basis low single digit growth there are couple sectors that we mentioned in 2019, and we still continue to see them.
Grow slower than the rest of the industry, which is the auto industry and retail.
Theres wouldn't be the two that we've identified wouldn't slower growth, but overall we.
See I'm pretty pretty good growth in the industry overall, and we see some strength from the non annual events that we have happening in 2020.
And then just one last question, Steve just on the plane Iceland any worries at all since there has been pretty sharp.
Line and visitors to Iceland in 2019.
I'm not sure what they're projecting for 2020, but just any thoughts or concerns at all for the attraction as you move into the travel all primary travel season for 2020.
Yeah, I think that visitation I'm still is very popular.
And what we've seen with the opening of flyover Iceland in September of last year. It is tracking above our expectation in terms of the ramp up of packs.
We're getting phenomenal reviews from our guests on trip advisor and I mentioned during my comments.
Comments.
It's already risen to the second most popular thing to do and Iceland based on trip advisor score. So you know I think it's still a strong market in Iceland and I'm really excited about.
Hitting our stride in 2020 with a full year of.
Clever Iceland.
No I think Steve I really appreciate it.
Thanks Kartik.
And our next question will come from Tyler between Gene capital markets. Your line is now open.
Hi, good afternoon, thanks for taking my questions.
First question I have is on the guidance for the pursuit business and I'm wondering if you can talk a little bit more about the margin and cost in that segment are there other areas of expense growth at a worth calling out is there any onetime impacting mat business in 2020 on the cost side and you also give a little bit more color on.
Some of the investment that you called out to support expansion about business.
Sure. So on the margin as we talked about in the one of the bigger items is that full year non park lodges. So that the January two Macy's and as lower margin than the rest of the year or.
We also had some growth projects last year and we'll have some this year in their food and beverage and retail segments and those are lower margin than our traction so that gets into the mix as well.
And then kind of getting on the margin side is we're investing keep position for growth.
And these are these.
Key leadership positions and growth in digital marketing capabilities. So that's that's kind of on the margin side on key growth projects for 2020.
Well, we'll have a significant investment in fiber Las Vegas and flavor Toronto, We also had some of our.
Hotels, having a re refresh projects and that includes room refresh and food and beverage as well.
So as to what the projects going on next year that the two big ones are our investments in flavor Las Vegas and clever Toronto.
Okay got it that's helpful and I'm just also on the revenue.
<unk> guidance and pursued maybe talk about mid single digit to high single digit growth ex acquisition, one but acceleration from the organic growth you saw in 2019, so if you're talking about your expectations for the growth institution diverse growth in on the revenue per passenger which would you think should be.
Growing more quickly.
Well you know we've had a long runway over the last couple of years, where we have.
Really driven.
Really driven price at some of our attractions and our hotels as Weve improved the overall experience.
Periods for our guests.
We continue seeing that going forward.
We think there will be modest growth on the pack side.
Our actions and we think that we can continue to drive HCP at our.
At our attractions.
So thats primarily where.
Where we think Theres gain we also Tyler.
A lot of and we made a lot of investments in 2019.
So whether it's the RV Park West Glacier or in some of the refresh in terms of food and beverage.
Or some of the refresh of our lodging.
Properties those are all first year. They all went live in 2019, and I think what you'll see as us continue to be able to grow those into their second year of operation.
So so what I would say is.
Pass is kind of modest growth.
We believe HCP or pricing is going.
To be acute lever for us and then also another key area will be just the second year of some of these rate refreshing build projects that we did in 2019.
Okay, Great. That's very helpful. And then switching gears to the GBS business.
What are you hearing in terms of the conversations you're having with some of your corporate.
Specifically is there any slowdown in terms of what those customers are willing to spend on events or are things fell pretty strong.
No. We finished I was really close to a number of events that we did in the fourth quarter and.
We continued to see increasing budgets through the fourth quarter.
You know the.
The clients would have a stated budget and decide to add to their budget as the planning process.
That went on and so.
I think there's I think the brands of the corporate market or should it still getting quite a bit of value out of.
Operating expenses.
For instance for their guests at these events and so we see healthy budgets in that area.
Okay, Great and then last question for me you, obviously, there's going to be a lot of cash flow generation coming this year.
Updated thoughts in terms of what you're seeing on the M&A side of things many opportunities out.
They are on the Gi side of things and what does the pipeline book like with respect to pursue acquisitions, specifically, you're looking at are seeing anything beyond the traditional national parks.
Yes, we are we're obviously excited about 2020, it's a big year for GDS were also though.
We think about 2020 120 to 22, you have a number of other attractions that come on line that will continue to give us some solid free cash flow. So.
We're in a position where we want to.
Continue to aggressively grow these businesses and what I would say as both businesses have.
Strong.
On pipelines in terms of M&A.
And then a pursuit also has quite a bit in terms of organic opportunities like Flyers.
That weekend.
And it would build so we are actively pursuing it we're excited about the opportunity and.
We're we're set to Oh please.
Deliver on some of that in the coming years and add more shareholder value.
Okay, Great Thats all from it thank you.
And then I wanted just circle back with critics question on the corporate events as a percentage of consolidated revenue of 15%. So just wanted to follow up on this.
[music].
Friction yes.
And our next question comes from Steve O'hara, with Sidoti and company. Your line is now.
Hi, good afternoon.
Thank you.
Hi, I'm just quickly on the not part lodges the guidance I'm just curious.
When you guys acquired the properties, yet you know kind of your expectations at that time.
And are they more or less the same.
Better lower and then you noted there was some startup costs can you just remind you. Those are included in the you know kind of adjusted operating.
And what was the number in 2019.
For that same Ah Ah.
Startup cost and things thank you.
Sure So Steve Madden Park launches there.
At our expectations and they were in 19. They are for 20, so that's that.
On the startup crossing talking about Iceland.
I think in the press release, there was talk of.
Five to 6 million of startup costs expected per person Ryan.
Yeah I didn't know if that was is that for 2020 and is that already taken out of the operating.
Or is that included in operating income guidance.
Is it is for 2020. It is not included in the adjusted segment EBITDA.
Okay, Okay, and what was the number in 2019.
[noise] about 2.32 0.39.
Okay, and Super pretty good step up this year with those costs.
Yes.
And we ocular that from our guidance.
From the EBITDA guidance right and some of that Steve is noncash lease expense as well.
So on on some of that flyover cost okay.
Because you're paying for the space.
We are ready or what.
Correct correct, okay. Okay.
And then just.
Just to be clear this t., sorry, it's an accounting charge, but it's it's non cash in a startup cost for accounting purposes, we have to straight line the lease costs.
Okay. Okay.
That helps and then.
And just looking at the other flyover attractions take a few years go you talked about the margins there can use.
Are there any reason to think that these projects wouldn't have similar margins or any better or worse or that this then maybe what's the right way to think.
About the margin profile.
From these attractions going forward or maybe by market. Thanks.
Yes, Steve.
We did talk about the margin of flyover, Canada Vancouver.
2017, I believe we talked about the results.
Being roughly $10 million in revenue and roughly I think it was 50% EBITDA margin.
And the other flowers are similar in nature, it varies a little bit both up and down.
Based on the location and the arrangement that we have so.
In the Vancouver market you know.
At the locations ideal we got to.
The lease arrangement that we have set up is very strong and very favorable for us.
So depending on other locations and what the negotiated at least maybe it may fluctuate a.
Little bit.
From a from what you see in Vancouver, but overall.
Similar margins it varies a little bit based on a location.
Okay. That's helpful. And then maybe lastly on when you talk about UBS.
Jason and things like that.
Pretty long, maybe a longer booking curves given.
The length of travel and things like that but when do you guys start to get a real seal for what the peak season looks like.
Pursued I guess is maybe a more.
First question.
Yes with pursuit.
I think about two types of travelers, who you have group travelers, which are booking pretty far in advance and then you have individual travelers, which.
You don't get much visibility into so on the group side.
We're at a point where in the first quarter, we're starting to see.
A lot of the group.
Travel.
Scheduled and materialize on the books.
And but we won't have visibility into those individual travelers until we really hit into the Q2 in Q3.
Okay and is are way to think about kind of.
Group.
Travel versus individual.
As a percentage so yeah as we've talked about Steve it really varies by location and even by asset within the location. So it's hard for me to give you a rough.
Breakdown between individual and group group visitation.
Okay.
And then maybe just a follow up on a previous question with the airport and Iceland or was there an issue with with the an airline.
We're connecting in revenue back or in within Iceland, and that seem to have it pretty detrimental impact on.
On the.
Well look like the visitation numbers with the travel numbers or is.
Visitation down.
Significantly.
In general Yeah, Steve there's a low cost airline called while which I believe was based out of Iceland, but at a lot of routes to ratio but.
Rick.
And.
They went out of business I want to say like all of last year.
And you know.
A lot of those routes were actually picked up by other airlines so.
What we see from the visitation perspective.
And were new in the market.
Is that.
Our attraction is doing well and that Theres still a vibrant tourism market with in Iceland and.
We're excited about the market so.
We're not currently seeing any impact on our assets from.
From that airline.
Going into bankruptcy.
Okay, all right. Thank you very much.
Thank you Steve.
Showing no further questions in key.
Okay.
[music].
Thanks for your questions and your interest in VR, we look forward to speaking with you again next quarter.
Bye.
That concludes today's conference. Thank you for your participation.
May now disconnect.