Q4 2021 Viad Corp Earnings Call

Speaker 1: 2021.

Speaker 1: This rebound is evidence that the world is healing, that the tourism industry is in recovery, and that guest demand for high quality experiential travel and hospitality experiences remain strong.

This rebound is evidenced that the world is healing, but the tourism industry is in recovery and the guest demand for high quality experiential travel and hospitality experiences remained strong.

Speaker 1: For the seasonally slow fourth quarter, Pursuit delivered revenue of $23.4 million compared to just $9.2 million in Q4 2020.

For the seasonally slow fourth quarter pursuit delivered revenue of $23 4 million compared to just $9 2 million in Q4 2020.

Speaker 1: And we exceeded pre-pandemic 2019 fourth quarter revenue by nearly 8%. As our two new year-round attractions, Skyland Runan Recuvik and Flyover Las Vegas, and our new Night Rise experience at the Banff Gondola, helped offset challenges driven by the pandemic, including the Omicron variant, which spiked in December and adversely impacted holiday season operation.

And we exceeded pre pandemic 2019 fourth quarter revenue by nearly 8% as our two new year round attraction Sky lagoon in Reykjavik, and flyover Las Vegas, and our new <unk> experience at the Banff gondola helped offset challenges driven by the pandemic, including the omicron variant.

Spiked in December and adversely impacted holiday season operations.

Despite ongoing COVID-19 related challenges our team's perseverance we.

Speaker 1: Despite ongoing COVID-related challenges, our teams persevered. We remained open for business throughout the quarter while delivering healthy results.

We remained open for business throughout the quarter, while delivering healthy results in.

Speaker 1: In Jasper, as part of our continued refresh build by growth strategy, we initiated a multi-year roadmap to invest in a variety of upgrades across the lodging portfolio and the benefit to the guest experience was immediately clear.

In Jasper as part of our continued to refresh build buy growth strategy, we initiated a multi year roadmap to invest in a variety of upgrades across the lodging portfolio and the benefit to the guest experience with immediately clear.

Speaker 1: All seven hotels saw meaningful year-over-year increases in guest feedback.

All seven hotels saw meaningful year over year increases in guest feedback scores.

Speaker 1: In Banff, as testament to the quality of our experiences and the dedication of our team members, we saw record net promoter scores at several attractions, including the Glacier Adventure, Glacier Skylock, and Brewster Sight theme tour.

And bounce as testament to the quality of our experiences and the dedication of our team members. We saw record net promoter scores that several attractions, including the Glacier adventure Glacier skywalk and Bruce are saving towards.

Several of our lodging properties in Montana record guest feedback scores with the historic ratio Park Lodge, Belton, Chalet and Westlake RV Park and cabin village all delivering new high.

Speaker 1: several of our lodging properties in Montana saw record guest feedback scores with the historic Glacier Park Lodge, Dalton Chalet and West Glacier RV Park and Cabin Village all delivering new high.

Speaker 1: Finally in Iceland, we were pleased with the success of our holiday gift ticket program at Sky Lagoon. We sold over 29,000 holiday gift ticket packages, which equates to roughly 80% of the total Icelandic population, receiving a Sky Lagoon gift product for Christmas.

Finally in Iceland, we were pleased with the success of our holiday gift ticket program at Sky Lagoon, we sold over 29000 holiday gift ticket packages, which equates to roughly 80% of the total Icelandic population receiving a sky, we're doing gift product for Chris.

Speaker 1: In terms of financial results, starting with attractions, you're all aware that international border closures remained in place well into the 2021 peak summer season, which impacted overall visitation.

In terms of financial results, starting with the traction Youre all aware the international border closures remain in place well into the 2021 peak summer season, which impacted overall vacation.

Speaker 1: And despite these short-term impacts to visitation, we're very encouraged by the growth of our revenue for customer metrics.

And despite these short term impacts to visitation, we're very encouraged by the growth of our revenue per customer metrics.

Speaker 1: For the year, effective ticket price or attraction ticket revenue per guest increased 11% from 2019 levels on a same store basis, including only the attractions we had in the entirety of both years.

The year effective ticket price or attraction ticket revenue per guest increased 11% from 2019 levels on a same store basis, including only the attractions we had in the entirety of both years.

Speaker 1: Attraction's performance in the fourth quarter also benefited from the launch of Night Ride, a new attraction within an attraction at the top of the Banff Gondola.

Attractions performance in the fourth quarter also benefited from the launch of <unk>, a new attraction within an attraction at the top of the Banff gondola.

We created this in partnership with the indigenous stoning, a coated nation Knight rises a multimedia light art and sensory experience that can actually gas to the story of the land stars at night.

Speaker 1: We created this in partnership with the Indigenous Stoning Dakota Nation. Night Rise is a multimedia light, art and sensory experience that connects the guests to the story of the land, stars and nights.

Knight rises that Great example of continuous improvement specifically, taking a great experience like the Banff gondola and creatively, making it even better.

Speaker 1: NightRise is a great example of continuous improvement, specifically taking a great experience like the Vamp gondola and creatively making it even better.

Launching in early December the exciting addition of night rise drove a 4% increase in Q4 effective ticket price at the gondola from 2019, while also increasing ancillary revenue yields for food and beverage and retail by 13% and 44% respectively.

Speaker 1: Launching in early December , the exciting addition of Night Rise drove a 4% increase in Q4 effective ticket price at the gondola from 2019, while also increasing ancillary revenue yields for food and beverage and retail by 13% and 44% perspective.

In Vancouver Flyover, Canada strong third quarter results continued into Q4 as pent up demand for the lenders of the flyover experienced drove strong ticket sales and ancillary revenue per guest.

Speaker 1: In Vancouver, FlyOver Canada's strong third quarter results continued in the Q4, as pent up demand for the wonders of the FlyOver experience drove strong ticket sales and ancillary revenue per year.

Speaker 1: And as mentioned, Biver Las Vegas got its first full quarter of operation, delighting Las Vegas visitors with the sensation of flying over the American Southwest, and earning the rating of 4.5 out of 5 stars on both Google and Tripadvice.

And as mentioned fiber Las Vegas saw its first full quarter of operation.

Lighting Las Vegas visitors with the sensation of flying over the American southwest and earning a rating of four five out of five stars on both Google and Tripadvisor.

Speaker 1: Over to lodging, the hotel properties saw significant euro breeder increases. For the quarter, same store room revenue increased 49% and rev park grew by 35.

Over to lodging the hotel property saw significant year over year increases for.

For the quarter same store room revenue increased 49% and Revpar grew by 35%.

Speaker 1: relative to the fourth quarter of 2019, occupied rooms increased 4%.

Relative to the fourth quarter of 2019 occupied rooms increased 4%.

Speaker 1: For the full 21 fiscal year, year-over-year hotel occupancy increased by 5%, rooms revenue by 109%, and revpar by 42% on a same-store currency adjusted page.

For the full 21 fiscal year year over year hotel occupancy increased by 5%.

<unk> revenue by 109% and Revpar by 42% on a same store currency adjusted basis.

As many of you know pursuits attractions and lodging businesses segments are complemented by the vertical integration of food and beverage and retail offerings.

Speaker 1: As many of you know, pursuit to traction from lodging businesses segments are complemented by the vertical integration of food beverage and retail.

Speaker 1: What many of you may not know is that there are now 44 food and beverage businesses and 45 retail stores across Pursuit and as we've grown they become meaningful contributors to revenue.

What many of you may not know is that there are now 44, food and beverage businesses and 45 retail stores across pursuit and as we've grown they become meaningful contributors to revenue and EBITDA for.

Speaker 1: We're constantly working to improve our menu, merchandising in the overall guest experience, and are pleased with the financial growth we're seeing in these categories.

We're constantly working to improve our menu Richie diving into the overall guest experience and are pleased with the financial growth we're seeing in these categories.

In food and beverage we delivered revenue of approximately $29 million in 2021 for a year over year increase of 180%.

Speaker 1: In food and beverage, we delivered revenue of approximately $29 million in 2021 for a year-over-year increase of $180 million.

Speaker 1: We believe that high quality F and B is an important part of the hospitality experience, whether it's that perfect cup of coffee before your morning hike, or the opportunity to sit down for dinner together as a family. And we're pleased to report that 2021 same store F and B yields at our hotels, measured by revenue per occupied room, increased 32% from 2019.

We believe that high quality F&B is an important part of the hospitality experience, whether it's that perfect Cup of coffee before your morning hike or the opportunity to sit down for dinner together as a family.

And we're pleased to report that 2021 same store F&B deals that our hotels measured by revenue per occupied room increased 32% from 2019.

Speaker 1: Yes, satisfaction scores are continuing to improve including beverage and the best part is we get to see guest comments and ratings daily Today in Montana, Alaska in the Van Jasper collection we have eight restaurants in the top five rankings on TripAdvisor in their region.

Guest satisfaction scores are continuing to improve and food and beverage and the best part is we get to see guest comments and ratings daily.

Today in Montana, Alaska, and the Fantastic collection, we have eight restaurants in the top five ranking on tripadvisor in their region.

And finally, we're very excited about the growth in our retail business for 2021, we delivered retail revenue of approximately $25 million, which more than doubled from the prior year.

Speaker 1: And finally, we're very excited about the growth in our retail business. For 2021, we delivered retail revenue of approximately $25 million, which more than doubled from the prior year. And as compared to 2019, retail yields increased 62% at our attraction and 70% at our lodging properties on a same store basis. So now let's-

And as compared to 2019 retail yields increased 62% of our attraction and 70% at our lodging properties on a same store basis.

So now, let's turn our attention to the year ahead.

Speaker 1: It is clear to us, based on early season booking trends and advanced reservations, people are ready to travel and will not be dissuaded from doing so.

It is clear to us based on early season booking trends and advanced reservations people are ready to travel and will not be dissuaded from doing so.

Speaker 1: We're confident that borders will remain open and that Pursuit will be able to welcome guests to Western Canada, Alaska, Montana, Las Vegas, and to Iceland throughout 2022.

We're confident that borders will remain open in that pursuit, we will be able to welcome guests to Western Canada, Alaska, Montana, Las Vegas and to Iceland throughout 2022.

Speaker 1: While we're still early in the booking cycle, lodging reservations for 2022 in Vance and Jasper are pacing ahead of the same reporting period in the prior year by 89% and 43% respectively.

While we're still early in the booking cycle lodging reservations for 2022, and Vance and Jasper are pacing ahead of the same reporting period in the prior year by 89% and 43% respectively.

Speaker 1: And for the critical third quarter, our Vans hotels are ahead of pace when compared to 2019.

And for the critical third quarter, our band hotels are ahead of pace when compared to 2019.

Speaker 1: Across the 10 hotel portfolios, the average daily rate is trending at 7.5% from 2021.

Across the 10 hotel portfolio average daily rate is trending up seven 5% from 2021.

Speaker 1: In pursuit of Glacier Park Collection, 2022 lodging room nights on the books are pacing 32% ahead at the same time last year and 60% ahead of 2019 on a same-store basis.

And pursue its Glacier Park collection 2022 lodging room nights on the books are pacing, 32% ahead at the same time last year and 60% ahead of 2019 on a same store basis.

Speaker 1: relative to the prior year ADR growth is approximately 10.

Relative to the prior year ADR growth is approximately 10%.

We're also seeing healthy pacing in Alaska with 2022 room nights up 14% compared to the same period last year and up 6% compared to the pre pandemic 2019 levels with ADR growth of 4%.

Speaker 1: We're also seeing healthy pacing in Alaska with 2022 room nights up 14% compared to the same period last year and up 6% compared to the pre-pandemic 2019 levels with ADR growth of 4%.

Speaker 1: In Iceland, inbound visitation to the country continues to grow relative to 2021 levels, and we anticipate a stronger tourism season this summer. We're already hard at work preparing for a notable year-over-year increase in guest volumes at both Flyover Iceland and Sky Lagoon.

Iceland inbound visitation to the country continues to grow relative to 2021 level and we anticipate a stronger tourism season. This summer.

We're already hard at work preparing for a notable year over year increase in gas volumes at both flyover, Iceland and Sky lagoon.

Speaker 1: And as we remain steadfast in our view that the future for our company and our industries, right, we have and will continue to invest in refresh, build, buy opportunities around the world.

And as we remain steadfast in our view that the future for our company and our industry is great. We have and will continue to invest in refresh build buy opportunities around the world.

Speaker 1: Our plan for 2022 includes several important investments to improve the guest experience at our location.

Our plan for 2022 includes several important investments to improve the guest experience at our locations.

Speaker 1: Some examples, just to name a few, include a new mountain coaster at the Golden Sky Bridge in Golden, D.C., a stunning new flyover film featuring the inspiring topography of the Canadian Rockies that will show in all locations, and tuning restaurant concepts in the Van Jasper collection.

Some examples just to name a few include our new mountain coaster at the Goldman Skybridge and Golden BC.

Stunning new flyover film featuring inspiring topography of the Canadian Rockies that will show in all locations and two new restaurant concepts in the Banff Jasper collection.

Speaker 1: Last quarter, we told you that construction has begun on the Forest Park Hotel, a new 88 room hotel in downtown Jasper, in the heart of Jasper National Park. And today I'm pleased to report that construction is on schedule and we are on track for an early summer open.

Last quarter, we told you that construction has begun on the Forest Park Hotel in New 88 room hotel in downtown Gaspar in the heart of Jasper National Park and today I am pleased to report that construction is on schedule and we are on track for an early summer opening.

Speaker 1: We continue to see high volumes of acquisition opportunities in multiple geographies, and our development team is hard at work assessing these opportunities for the next great pursuit experience.

We continue to see high volumes of acquisition opportunities in multiple geographies and our development team is hard at work assessing these opportunities for the next great pursued experience.

Speaker 1: In closing, I'll reiterate that we're proud of our 2021 results and are especially thankful for our 3000 seasonal and year-round team members that bring their best every day to deliver on our mission of connecting guests and staff to iconic places through unforgettable inspiring experiences.

In closing I'll reiterate that we're proud of our 2021 results in an especially thankful for our 3000 seasonal and year round team members that bring their best every day to deliver on our mission of connecting guests and staff to iconic places through unforgettable inspiring experiences.

We remain focused on the continuation of our growth trajectory to increasing the breadth and quality of our offerings to working hard to become an employer of choice in the hospitality industry and to achieve new heights and guest satisfaction.

Speaker 1: We remain focused on the continuation of our growth trajectory, to increasing the breadth and quality of our offerings, to working hard to become an employer of choice in the hospitality industry and to achieving new heights in guests out of sight.

Speaker 1: We're confident that we're poised to accelerate out of the pandemic, and we look forward to welcoming guests from near and far as the world more fully reopens to travel. Steve, back to you.

Confident we're poised to accelerate out of the pandemic and we look forward to welcoming guests from near and far as the world more fully reopens the travel Steve back to you.

Thanks, David now switching over to Ges 2021 was a significant turning point as the event industry reopen that activity began to accelerate during the third quarter.

Speaker 1: Thanks, David. Now switching over to GDS. 2021 was a significant turning point as the event industry reopened and activity began to accelerate during the third quarter. Along with this, we saw a steep jump in GDS's route.

Along with this we saw a steep jump in Ges's revenue from September through December we averaged more revenue per month than we realized during the entire first half of 2021.

Speaker 1: From September through December , we averaged more revenue per month than we realized during the entire first half of 2021.

Speaker 1: Our teams effectively went from zero to 60 miles an hour with a new leaner cost structure and did a fantastic job delivering safe, extraordinary experiences for our clients.

Our teams effectively went from zero to 60 miles an hour with a new leaner cost structure and did a fantastic job delivering safe extraordinary experiences for our clients.

Speaker 1: I want to extend a big thank you to all of the GES team members who made this happen by working diligently with lean staffing and tight schedules to support events around the world while prudently managing our profitability.

I want to extend a big thank you to all of the Ges team members, who made this happen by working diligently with lean staffing and tight schedules to support events around the world, while prudently managing our profitability.

Speaker 1: GES finished the year with strong revenue growth. On a sequential quarter basis, revenue grew 38% to $160 million in the fourth quarter as live event activity continued to improve. We produced over 500 events and projects in geographies around the world, including AUSA's Annual Meeting and Expo, Process Expo, Money 2020, and hybrid events for GE Healthcare and banking software solution provider Tanimo.

Ges finished the year with strong revenue growth on a sequential quarter basis revenue grew 38% to $160 million in the fourth quarter as live event activity continued to improve we produced over 500 events and projects and geographies around the world, including a USA annual meeting and Exco.

Process Expo money 2020, and hybrid events for GE healthcare and banking software solution provider channels.

Speaker 1: Some events that took place during the fourth quarter were near or above pre-pandemic levels, while others remained significantly below.

Some of that that took place during the fourth quarter were near or above pre pandemic levels, while others remained significantly below.

Speaker 1: For events that took place, the average revenue decline was about 35% compared to pre-pandemic, which is an improvement from about 50% last quarter.

For events that took place the average revenue decline was about 35% compared to <unk>, which is an improvement from about 50% last quarter.

Speaker 1: We believe that this is a strong indication that the recovery of live events is well underway. As revenues continue to recover to pre-pandemic levels, we are benefiting from the cost structure changes we made during the past two years. As discussed on prior calls, we took advantage of the pause in event activity during the height of the pandemic to make transformational changes that variableized more costs and permanently reduced fixed costs through network rationalization.

We believe that this is Australia indication that the recovery of live events is well underway as revenues.

<unk> continued to recover to pre pandemic levels, we are benefiting from the cost structure changes we made during the past two years as discussed on prior calls we took advantage of the pause in event activity during the height of the pandemic to make transformational changes that verbalize more costs and permanently reduced fixed costs through network rationalization.

Speaker 1: Primarily as a result of these actions, we delivered a fourth quarter adjusted EBITDA margin that was comparable to the 2019 fourth quarter, even though revenue was 43% lower.

Primarily as a result of these actions we delivered our fourth quarter adjusted EBITDA margin that was comparable to the 2019 fourth quarter, even though revenue was 43% lower.

Speaker 1: These results demonstrate that our new operating model is working and especially impressive in light of the headwinds presented by labor shortages and increased transportation costs.

These results demonstrate that our new operating model is working and especially impressive in light of the headwinds presented by labor shortages and increased transportation costs.

Speaker 1: As compared to 2020, our fourth quarter adjusted EBITDA improved by $32.5 million.

As compared to 2020, our fourth quarter, adjusted EBITDA improved by $32 $5 million.

Speaker 1: This represents a flow-through on incremental revenue of more than 20% as we carefully manage variable costs against event activity.

This represents a flow through on incremental revenue of more than 20% as we carefully managed variable cost against event activity.

Speaker 1: Our new low-cost model has been tested and is proving to be successful. Now let me pivot to talk about another area of success we're seeing in the business, brand experiences.

Our new low cost model has been tested and is proving to be successful now let me pivot to talk about another area of success, we're seeing in the business brand experiences.

Speaker 1: Earlier, I mentioned events that we produced for corporate clients, GE Healthcare, and Tenemos. These are just two great examples of the work we're doing within Brand Experience.

Earlier, I mentioned events that we produce for corporate clients GE healthcare in China. Most these are just two great. Examples of the work we're doing within brand experiences.

Speaker 1: CE Healthcare has been a client of ours for the last five years. We recently worked with them to provide an event solution that crossed physical and digital realms to offer both an in-person and virtual experience. The event was attended by thousands of people and received extremely positive feedback.

Health care has been a client of ours for the last five years. We recently worked with them to provide an event solution that cross physical and digital round to offer both an in person and virtual experience. The event was attended by thousands of people and received extremely positive feedback.

<unk> partnered with us to produce their 2022 sales kickoff event in Barcelona.

Speaker 1: Tenemos partnered with us to produce their 2022 sales kickoff event in Barcelona. The event included 680 in-person attendees, along with online streaming to 1,200 staff members around the globe.

The event included 680 in person attendees, along with online streaming to 1200 staff members around the globe.

Speaker 1: The event was a great success, offering flexibility for the sales team able to travel in from around the globe or attend virtually with flawless event streaming.

The event was a great success operating flexibility for the sales team able to travel in from around the globe.

Or attend virtually with flawless event streaming.

There was an overwhelming positive feedback from both the in person and remote attendee.

Speaker 1: there was an overwhelming positive feedback from both the in-person and remote attendees.

Speaker 1: Our brand experience team does a remarkable job delivering a broad range of unique and impactful experiences for our clients, including corporate meetings and events, digital experiences, brand and sports activation, product launches, strategic exhibition program management, corporate customer centers, and consumer pop-up events.

Our brand experienced team does a remarkable job delivering a broad range of unique and impactful experiences for our clients, including corporate meetings and events digital experiences brand in sports activation product launches strategic exhibition program management corporate customer centers and.

Consumer pop up events.

Speaker 1: We have a significant opportunity to expand in this large, fragmented market at attractive margins and are positioning GES for ongoing success in this area by making investments to strengthen our team and go-to-market strategy approach.

We have a significant opportunity to expand in this large fragmented market at attractive margins and our positioning ges for ongoing success in this area by making investments to strengthen our team and go to market strategy approach.

With just almac at the home of our brand experienced service lines, we have aggregated ges as marketing services to create an integrated marketing agency.

Speaker 1: With Jeff Stalmek at the helm of our Brand Experience Service Line, we have aggregated GDS's marketing services to create an integrated marketing agent.

Speaker 1: Through a series of investments, efficiencies, and additions of talent, we are creating the ability to sell marketing services horizontally across our existing clients.

Through a series of investments efficiencies in additions of talent, we are creating the ability to sell marketing services horizontally across our existing clients and.

Speaker 1: And we're enhancing our breadth of services as we compete for new logos and capture incremental marketing spend across new segments of the industry, such as B2C experiential activation and virtual and hybrid B2B meeting.

And we're enhancing our breadth of services as we compete for new logos and capture incremental marketing spend across new segments of the industry, such as DTC, experiential activations and virtual and hybrid <unk> meetings.

Speaker 1: We have many new business wins and renewals to celebrate, including CloudB, SAS, Fannie Mae, Taka, John Deere, HomeStar, National Indian Gaming Association, and World System Builder. I'm proud of our talented team across GES, providing quality work and incredible service to our clients and customers.

We have many new business wins and renewals to celebrate including cloud SaaS.

SaaS Fannie Mae Taka, John Deere, Homestar National Indian Gaming Association and World system builder.

Proud of our talented team across Ges, providing quality work and incredible service to our clients and customers. We have a lot to be optimistic about as we enter 2022, however, the industry recovery remains dynamic.

Speaker 1: We have a lot to be optimistic about as we enter 2022. However, the industry recovery remains dynamic.

Speaker 1: Last quarter's uncertainties from the Delta variant have been replaced with new concerns from the Omicron variant, which is impacting corporate travel policies and near-term business travel.

Last quarter's uncertainties from the Delta variant have been replaced with new concerns from the Omnicom variant, which is impacting corporate travel policies and near term business travel.

Speaker 1: Experts are cautiously optimistic that a swift decline in omicron cases will follow the rapid peak we are experiencing

Experts are cautiously optimistic that a swift decline in omicron cases, we'll follow the rapid peak we are experiencing.

Speaker 1: And we're starting to see this in certain places with easing of COVID restrictions and renewed demand for face-to-face events.

And we're starting to see this in certain places with easing of Covid restrictions and renewed demand for face to face events.

Speaker 1: We're encouraged by what we're seeing and hearing within the event industry.

We're encouraged by what we're seeing and hearing within the events industry.

Speaker 1: While we've seen some postponement and cancellations primarily in the first quarter, schedules for the balance of the year look quite strong and we're preparing for an acceleration of activity as we head into March. Both organizers and exhibitors prefer to have face-to-face events and more are motivated to move an event rather than cancel or pivot to virtual.

While we've seen some postponements and cancellations primarily in the first quarter schedules for the balance of the year looked quite strong and we're preparing for an acceleration of activity as we head into March both organizers and exhibitors prefer to have face to face events and more are motivated to move an event rather than <unk>.

Cancel or pivot to virtual.

Speaker 1: In preparation for a busier year in 2022, we are rebuilding our workforce with experienced personnel to ensure we are well positioned to service the expected increase in event activity. We're excited to bring back more employees to continue creating the world's most meaningful and memorable experiences for marketers, organizers, and event attendees.

In preparation for a busier year in 2022, we are rebuilding our workforce with experienced personnel to ensure we are well positioned to service the expected increase in event activity.

We're excited to bring back more employees to continue creating the world's most meaningful and memorable experiences for marketers organizers and event attendees.

Speaker 1: With a fuller exhibition team and the decisions we've made to add talent and increase marketing efforts to grow in our brand experiences, GES's revenue flow-through will temporarily be impacted, particularly in the early months due to the event seasonality and Omicron variant uncertainties.

With a fuller exhibition team and the decisions, we've made to add talent and increased marketing efforts to grow and our brand experiences.

<unk> revenue flow through will temporarily be impacted particularly in the early months due to the events seasonality and omnicom to various uncertainties.

Speaker 1: As the industry continues to recover and activity resumes throughout the year, our profitability will improve.

As the industry continues to recover and activity resumes throughout the year, our profitability will improve.

Speaker 1: Our clients and customers are committed to the return of live events. The value created from face-to-face live events is irreplaceable, as it is a powerful way to generate sales, drive brand awareness and loyalty, and interact with attendees. We see a bright future ahead as we continue down the path to recovery.

Our clients and customers are committed to the return of live events the value created from face to face live events is irreplaceable as it is a powerful way to generate sales drive brand awareness and loyalty and interact with attendees, we see a bright future as we continue down the path to recovery.

Speaker 1: And now I'd like to turn the call over to Ellen to discuss our financial results in more detail. Ellen.

And now I'd like to turn the call over to Alan to discuss our financial results in more detail Ellen.

Speaker 2: Thanks, Steve. I'm pleased to report that we delivered positive full year EBITDA from the continued recovery of both Pursue and GES. I'm encouraged by the accelerated activity in leisure travel and the in-person events this year as our industries were re-igniting.

Thanks, Steve I am pleased to report that we delivered positive full year EBIT gas and continued recovery in both pursuit and Ges.

Im encourage study accelerated activity in leisure travel and in person events fifth year as their industries, where we ignited at.

Speaker 2: At GES, we realized revenue of $160.2 million during the quarter, which improved about 38% from the third quarter and reached 57% of the amount generated in the pre-pandemic 2019 fourth quarter due to increased face-to-face live event activity and the return of large-scale events that were canceled or postponed for most of 2020 and into the first half of 2021.

At Ges, we realized revenue of $160 10 during the quarter, which improved about 38% in the third quarter reached 57% again now generated in the pre pandemic 2019 fourth quarter.

Due to increased face to face rather than activity and the return of large scale events that were canceled or postponed for most of 2020.

Into the first half of 2021.

Speaker 2: GES segment adjusted EVITA was positive 9.6 million, which improved by approximately 32.5 million as compared to the prior year driven by the increase in revenue and the cost structure improvements that we've implemented.

<unk> segment, adjusted EBITDA was positive $9 6 million, which improved by approximately $32 5 million as compared to the prior year driven by the increase in revenue and the cost structure improvements that we've implemented.

Speaker 2: At Pursuit, we realized revenue of $23.4 million during the seasonally slow fourth quarter, which increased $14.2 million from the 2020 fourth quarter and exceeded the revenue amount generated in the pre-pandemic 2019 fourth quarter.

At pursuit, we realized revenue of $23 4 million.

During the seasonally slow fourth quarter, which increased $14 $2 million from the 2024th quarter and exceeded the Raytheon map generated in the pre pandemic 2019 fourth quarter.

Speaker 2: The three new attractions that we opened during 2021, Miss Sky Lagoon, Goldbeet SkyBridge, and Fly Over Las Vegas collectively contributed an incremental $5.1 million of revenue during the quarter.

The three new attractions that we opened during 2021 Sky Lagoon Goldman Skybridge in flyover Las Vegas collectively contributed an incremental $5 1 million of revenue during the quarter.

Speaker 2: the net EBITDA contribution from these new attractions was not meaningful during the seasonally slower and COVID-impacted fourth quarter as they continue to ramp up. Pursuit's overall segment adjusted EBITDA was negative 9.9 million for the quarter which decreased as compared to the prior year primarily due to higher labor costs and lower wage subsidies from the Canadian government.

The net EBIT contribution from these new attractions, so it's not meaningful during seasonally slower on COVID-19 impacted first quarter as they continue to ramp up.

Pursuits overall segment adjusted EBITDA was negative $9 9 million for the quarter, which decreased as compared to the prior year, primarily due to higher labor costs and lower wage subsidy answering the Canadian government.

Speaker 2: For the full year, GES has adjusted EBITDA improved by $10.2 million as compared to 2020 on a revenue decrease of $18.3 million, as we dramatically reduced our costs in response to the slowdown in event activity caused by the pandemic.

For the full year Ges's adjusted EBITDA improved by $10 2 million as compared to 2020, and a revenue decrease of $18 3 million as we dramatically reduced our cross response to disclose down in event activity caused by the pandemic.

Speaker 2: Pursuits full year adjusted EBITDA increased by $52.4 million on a revenue increase of $110.2 million as leisure travel accelerated across pursuit high margin experiences.

Full year adjusted EBITDA increased by $52 4 million on a revenue increase of $110 2 million.

As leisure travel accelerated across prestige tie margin experiences.

Speaker 2: Our net loss attributable to the ad was $22.5 million for the quarter and $92.7 million for the full year. And our loss before other items was $22.5 million for the quarter and $81.6 million for the full year, which excludes restructuring charges, attraction startup costs, acquisition, integration, and transaction-related costs, and other non-recurring expenses as applicable.

Our net loss attributable to the AD was $22 5 million for the quarter and $92 7 million for the full year.

And our loss before other items was $22 5 million for the quarter and $81 6 million for the full year, which excludes restructuring charges attraction startup costs acquisition integration and transaction related costs and other nonrecurring expenses as applicable.

Speaker 2: Our cash flow from operations was an outflow of approximately $35 million for the quarter and $38 million for the full year.

Our cash flow from operations was an outflow of approximately $35 million for the quarter and $38 million for the full year.

Speaker 2: Our operating cash outflow for the quarter was greater than our prior guidance, primarily due to working capital changes.

Our operating cash outflow for the quarter was greater than our prior guidance, primarily due to working capital changes.

Speaker 2: Our team did an excellent job closely managing our costs and maximizing our cash generation wherever possible during the year.

Our team did an excellent job closely managing our costs and maximizing our cash generation wherever possible during the year.

Speaker 2: Our capital expenditures totaled about $13 million for the quarter and $58 million for the full year. Our investments during the year were mainly at Pursuit and included growth capex for the Flyover Las Vegas attraction and our new 88 room hotel in Jeff.

Our capital expenditures totaled about $13 million for the quarter and $58 million per year.

During the year remained pristine and including growth Capex for the flyover Las Vegas attraction, and our new 88 room hotel and Kathryn.

Speaker 2: During the quarter, we paid cash dividends of approximately $2 million on our convertible preferred equity and a $1 million principal payment on our term loan fee.

During the quarter, we paid cash dividends of approximately $2 million on our convertible preferred equity and a $1 million principal payments on our term loan b.

On December 31, 2021, our debt totaled approximately $474 million, including $399 million on our term loan b.

Speaker 2: On December 31, 2021, our debt totaled approximately $474 million, including $399 million on our term loan fee, financing lease obligations of approximately $63 million and approximately $12 million in other debt.

Financing lease obligations of approximately $63 million and approximately $12 million in other debt.

Speaker 2: We ended the year with approximately $62 million in cash and cash equivalents, and we had approximately $87 million of capacity available on our revolving credit facility for a total liquidity of nearly $150 million.

We ended the year with approximately $62 million in cash and cash equivalents and we had approximately $87 million of capacity available on our revolving credit facility for total liquidity of nearly $150 million.

Speaker 2: We are in an excellent position to continue our growth journey with our strong liquidity, financial flexibility and improving industry demand. We have a solid platform that can scale with us as we execute against our exciting refresh filled by growth strategy at Pursuit, including the new 88 room hotel in Jasper.

We are in an excellent position to continue our growth journey with our strong liquidity financial flexibility and improving industry demand. We have a solid platform that can scale with us as we execute against our exciting refresh build buy growth strategy pursued including the new 88 Gram per cow in gastric.

Speaker 2: We are actively evaluating other high margin growth opportunities, including acquisitions and iconic locations.

Actively evaluating other high margin growth opportunities, including acquisitions and iconic locations.

Speaker 2: Before I turn it back to Steve for concluding remarks, I'd like to briefly comment on our financial outlook.

Before I turn it back to Steve for concluding remarks, I'd like to briefly comment on our financial outlook.

As we head into 2022, we believe that prestige same store revenue will recover faster than ges.

Speaker 2: As we head into 2022, we believe that pursued same-serve revenue will recover faster than GES due to expectations that leisure travel will return more quickly than business travel.

Due to expectations that leisure travel will return more quickly than business travel.

Speaker 2: Pursuit will also benefit from incremental revenue from new experiences, both those that did not exist and those that did not have a full year in 2019.

Pursuit will also benefit from incremental revenue from new experiences both those that did not exist and those that did not have a full year in 2019.

We believe that precedes full year 2020 to EBIT.

Speaker 2: We believe that Pursuit's full year 2022 EBITCHA will be at or above 2019 levels, even without full recovery from international leisure travel driven by the new experience.

We'll be at or above 2019 levels, even without full recovery from international leisure travel driven by the new experiences.

Speaker 2: We expect pursuits even their margin in 2022 will remain lower than pre-pandemic levels as international leisure travel more gradually recovers.

We expect proceeds EBITDA margin in 2022 will remain lower than pre pandemic levels as international leisure travel more gradually recovers.

Speaker 2: Long Haul International visitors help drive strong visitation at our high margin attractions, which are still operating well below pre-pandemic visitor levels.

Long haul international visitors helped drive strong visitation at our high margin attraction.

We're still operating well below pre pandemic levels.

2021 same store attraction visitors were down about 54% from 2019.

Speaker 2: 2021 Sainstor attraction visitors were down about 54% from 2019.

Speaker 2: The upshot of this is we see a lot of EBITDA and margin growth opportunities from just getting back to more normal levels of visitation.

The upshot of vessels, we see a lot of EBITDA and margin growth opportunity from just getting back to more normal levels in visitation.

Speaker 2: As international travel picks up in 2022 and beyond, we expect that as the US pursuits, the margin will once again return north of 30%.

As international travel picks up in 2022 and beyond we expect proceeds from margin will once again return north of 30%.

At Ges, we had a strong backlog of contracted events and an expanding roster of corporate clients. However, we anticipate event activity will continue to be well below pre pandemic levels, especially during the first part of the year due to volatility from the COVID-19 bearing.

Speaker 2: At GES, we have a strong backlog of contracted events and an expanded roster of corporate clients. However, we anticipate event activity will continue to be well below pre-pandemic levels, especially during the first part of the year, due to volatility from the COVID variant.

Speaker 2: Based on our current schedule and strong demand from our brand experiences clients, we expect event activity will accelerate again beginning in March.

Based on our current schedule and strong demand from our brand experience as clients. We expect event activity will accelerate again beginning in March.

And we anticipate that even if the event activity remained 12, a lot of 2019 levels.

Speaker 2: And we anticipate that even if event activity remains well below 2019 levels, GES will deliver full year adjusted EBITDA that is above pre-even during 2022.

We will deliver full year adjusted EBITDA that is above breakeven during 2022.

With the new more variable cost structure in place at Ges, we have lowered our breakeven point for that business and expect to realize margin expansion as revenue continues to recover.

Speaker 2: with a new more variable cost structure in place at GES, we have lowered our break even point for that business and expect to realize margin expansion as revenue continues to recover.

During the first quarter of 2022, we currently expect both ges and pursuit to generate negative EBITDA.

Speaker 2: During the first quarter of 2022, we currently expect both GES and Pursuit to generate negative EVA debt. With the personnel we brought back to support the continued return of events, the investments we made to grow and experience our marketing, and the slower show schedule in the first few months of the year, GES's EVA debt will be negative until activity ramps up.

The personnel, we brought back to support the continued return of events.

Since we need to grow and experiential marketing and the slower show schedule in the first few months of the year Ges's EBITDA will be negative until activity ramps up.

Speaker 2: Pursuit historically has negative EBITDA during its traditionally slow tourism season, and although we expect to see higher revenue due to our new experiences, we do not expect these new experiences to have a meaningful impact on EBITDA during the seasonally slow first quarter.

Christine historically has negative EBITDA during a traditionally slow tourism season, although we expect to see higher revenue due to our new experiences. We do not expect these new experiences to have a meaningful impact on EBITDA during the seasonally slow first quarter.

As we get closer to peak season, <unk> will return to positive.

Speaker 2: As we get closer to peak season, pursuits even though we'll return to positive.

Speaker 2: We currently expect a free cash outflow during the first quarter of 2022 in the range of 20 to 25 million.

We currently expect a free cash outflow during the first quarter of 2022 in the range of $20 million to $25 million.

Speaker 2: This assumes an operating outflow somewhere in the range of $5 to $10 million and capital expenditures of approximately $15 million. And this includes growth capex for our new 88-room hotel in Jasper. We will also make our quarterly term 1B principal payment of $1 million and expect to pay approximately $2 million in cash dividends on our convertible preferred equity.

This assumes an operating outflow of somewhere in the range of $5 million to $10 million and capital expenditures of approximately $15 million and this includes growth capex for our new 88 room hotel in Casper.

We will also make a quarterly term loan principal payment of $1 million and expect to pay approximately $2 million in cash dividends on our convertible preferred equity.

Speaker 2: For the full year, we expect capital expenditures of approximately $75 to $80 million primarily at pursuit and including growth capex for the construction of the 88 room hotel in Jasper ahead of its summer.

For the full year, we expect capital expenditures of approximately $75 million to $80 million, primarily at pursuit and including growth Capex for the construction of the 88 room hotel in Jasper ahead of its summer okay.

Speaker 2: These expectations are subject to the impact of COVID, including the Omicron variant. We will continue to carefully manage our cash flows and be strong stewards of our capital to maximize shareholder value.

These expectations are subject to the impact of Covid, including the Omicron variant, we will continue to carefully manage our cash flows will be strong stewards of our capital to maximize shareholder value.

It is evident that there is pent up demand for our industry. We remain focused on positioning the company for great success and growth as our businesses continued to recover in 2022 and beyond.

Speaker 2: It is evident that there is a sense of demand for our industries. We remain focused on positioning the company for great success and growth as our businesses continue to recover in 2022 and beyond.

Speaker 2: And with that, I'll turn the call back over to Steve for some concluding remarks.

With that I'll turn the call back over to Steve for some concluding remarks.

Thanks, Allen our company is well positioned to re emerge from the pandemic in a position of strength with pent up demand for our industry's on both sides of the business New World class experiences at pursuit.

Speaker 1: Thanks, Ellen. Our company is well positioned to reemerge from the pandemic in a position of strength, with pent up demand for our industries on both sides of the business, new world class experiences at pursuit, and a transformed, more profitable GES.

Transformed more profitable ges.

Speaker 1: I'm encouraged by the progress that we've made this year and optimistic about the recovery in leisure travel at Pursuit and live event activity at GES as we head into 2022.

I am encouraged by the progress that we've made this year and optimistic about the recovery in leisure travel at pursuit and live event activity at Ges as we head into 2022.

Speaker 1: We remain focused on our strategy to create extraordinary experiences and strong returns for our shareholders.

We remain focused on our strategy to create extraordinary experiences and strong returns for our shareholders for pursuit, we will continue to significantly scale the business and drive growth through our proven refresh build buy strategy as well as take advantage of economic disruption and opportunity in this space.

Speaker 1: For pursuit, we will continue to significantly scale the business and drive growth through our proven refresh, build, buy strategy, as well as take advantage of economic disruption and opportunity in the space.

Speaker 1: For GES, we will build on the progress we've made to date to improve the margin profile and resume generating strong cash flow through our more flexible cost structure and focus on higher margin clients and service.

For Ges, we will build on the progress we've made to date to improve the margin profile and resume generating strong cash flow through our more flexible cost structure and focus on higher margin clients and services.

We have a clear path to accelerated growth and significantly enhance shareholder returns our liquidity position is strong and we have the financial flexibility to sustain and continue investing in our future.

Speaker 1: We have a clear path to accelerate growth and significantly enhance shareholder returns. Our liquidity position is strong and we have the financial flexibility to sustain and continue investing in our future.

Speaker 1: We have high quality businesses with leading market positions and experience for leisure travel and experiential B2B events.

We have high quality businesses, with leading market positions and experiential leisure travel and experiential <unk> events.

We plan to capitalize on the pandemic disruption to strengthen our leading market position our growth strategy has been proven to be successful driving strong returns pre pandemic.

Speaker 1: We plan to capitalize on the pandemic disruption to strengthen our leading market position. Our growth strategy has been proven to be successful, driving strong returns pre-pandemic. And there are tremendous opportunities to continue investing for long-term growth. I'm excited about the bright future that lies ahead for our company.

There are tremendous opportunities to continue investing for long term growth I.

I am excited about the bright future that lies ahead for our company.

Speaker 1: I want to thank our hardworking and dedicated employees who make this all possible, and thank our shareholders for their continued support in VR. And with that, we'll open up the call for questions.

I want to thank our hardworking and dedicated employees, who make this all possible and thank our shareholders for their continued support and VR.

With that we'll open up the call for questions.

Thank you if you like to ask a question. Please press star followed by one on your telephone keypad.

Speaker 3: Thank you. If you'd like to ask a question, please press star, fold by one on your telephone keypad. If for any reason you'd like to remove that question, please press star, fold by two. Again, to ask a question, press star one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered.

Reading light terminals that question. Please press star followed by two again to ask a question press Star one as a reminder.

Speaker phone, please remember to pick up your handset before asking your question. We will talk to you briefly ask questions are registered.

The first question comes from Kartik Mehta with Northcoast Research. Please proceed.

Speaker 3: The first question comes from Karthik Neta with North Coast Research. Please proceed.

Hey, good afternoon.

Speaker 4: Good afternoon. Ellen, I just want to make sure I understood on the cash flow. What do you anticipate in terms of cash flow for the year? And did I get the numbers right? Do you expect an outflow of $20 to $25 million in the first quarter?

Alan I, just want to make sure I understood on the cash flow would you be so what do you anticipate in terms of cash flow for the year and did I get the numbers right you expect an outflow of $20 million to $25 million in the first quarter.

Yes, that's correct, an outflow of 20% to 25 million in the first quarter, including five to 10 operating cash flow outflow and known about $15 million in Capex.

Speaker 2: Yes, that's correct. An outflow of 20 to 25 million in the first quarter, including 5 to 10 operating cash flow and outflow, and then about 15 million in TAPFAC.

Speaker 2: And for the year, the only guidance we gave was on the CAPEX side, $75 to $80 million total CAPEX.

And for the year.

<unk> guidance, we gave was on the Capex side $75 million to $80 million total capex.

Speaker 4: So I'm assuming since you're anticipating at or near EBITDA levels with pursuit and break even for GS, you'd anticipate break even or a little bit more free cash flow. Is that fair?

So im assuming its insurance anticipating.

That are near EBITDA levels, we pursued in breakeven for Ges.

If you would anticipate.

Breakeven a little bit more free cash flow is that fair.

Well the cash flow in the third quarter, especially will be greater but yes.

Speaker 2: Well, the cash flow in the third quarter especially will be greater, but yes.

Depending on working capital and so we do expect.

Speaker 2: depending on working capital. So we do expect greater than break even on GES and the positive law.

Greater than breakeven on Ges.

The positive levels for per se.

Alright.

Speaker 4: the next couple of weeks. Right. Steven just on G. S I know you've talked about getting the, um, revenue down break even level down lower. I'm wondering based on your guidance for 2022 on break even what that means in terms of revenue, um, compared to 2019. I'm just wondering all the work you've done. You know how much progress that you've made and, uh, what's down the line?

And then just on <unk> I know.

You've talked about getting the.

Revenue breakeven level down lower I'm wondering.

Just on your guidance for 2022 on breakeven what that means in terms of revenue.

Compared to 2019.

I'm just wondering all the work you've done how much progress.

You've made an.

And what's your expectations are based on what Youre seeing for <unk>.

Revenue for <unk>.

Yes, yes.

Speaker 1: Yeah, yeah, it's a good question. I'm really happy with how the business has performed based on the changes that we made during the pandemic. I think during our remarks we talked a little bit about.

Good question.

Really happy with.

How the business was performing based on the changes that we made during the pandemic.

During our.

Remarks, I talked a little bit about.

Speaker 1: how the fourth quarter of 21 had similar margin profile to what we did in the fourth quarter of 19. But yet we had half as much revenue. We were down about 43 percent.

How the fourth quarter of 'twenty one.

<unk> had similar margin profile to what we did in the fourth quarter of 19.

But yet we have to have as much revenue as we were down about 43% in terms of revenue.

Speaker 1: And I also looked at the difference between Q3 of 2021 and Q4 of 2021, where we had

Analysis looked at the difference between Q3.

2021.

Q4 of 2021, where we had stronger than 20% flow through on that incremental revenue. So when I look at.

Speaker 1: stronger than 20% flow through all that incremental revenue. So when I look at the changes that we've made, it's clear that we're improving the profitability. And I'm encouraged by the signs that I see now. To answer your question directly on Break UVID.

The changes that we've made.

It's clear that we're improving the profitability and are encouraged by the signs that I see now to answer your question directly on breakeven Theres a lot of moving parts right now in terms of the mix of revenue and the quality of that revenue coming through but if I look out through the course of the year.

Speaker 1: There's a lot of moving parts right now in terms of the mix of revenue, the quality of that revenue coming through. But if I look out through the course of the year, it's somewhere in the neighborhood of $50 million of revenue per month in that break-even area.

Somewhere in the neighborhood of $50 million of revenue per month.

And that breakeven area. So.

Speaker 1: Again, as Ellen mentioned, we anticipate being greater than break even on a four-year basis, but I would put the break even somewhere around 50 million a month.

As Ellen mentioned, we anticipate being greater than breakeven on a full year basis, but I would put the breakeven somewhere around $50 $50 million a month.

The month.

Speaker 4: that's helpful. And then just one last question on pursuit. I'm assuming you're being helped by kind of price increases because of inflation and all these new attractions you're seeing. Is your expectations for pursuit going back to pre-pandemic levels mean that your revenue will go back or are you anticipating the ability to get to those ABA dial levels even with smaller revenue?

That's helpful. And then just one last question on pursuit I'm, assuming you'll be being helped by kind of price increases because of inflation and all of these new attractions youre seeing.

Your expectations for pursuit EBITDA going back to pre pandemic levels mean that your revenue will go back or.

Are you anticipating the ability to get to those <unk> levels, even with lower revenue.

Actual revenue improvements in EBITDA performance within the range. So.

Speaker 1: actual revenue improvement and even about performance within the range.

The biggest encouragement we see biggest momentum you see in booking pace, which is very very strong for the coming season.

Speaker 1: The biggest encouragement we see, biggest momentum we see is in booking pace, which is very, very strong for the coming.

Speaker 4: Okay, so I apologize. So you said you anticipate revenue to kind of be at or better than pre-pandemic levels. Did I? I don't want to put words in your mouth, but I just wanted to try to get that right. Yeah, and what we're indicating is exactly that.

Okay. So I apologize. So you said you anticipate revenue to kind of be at or better than pre pandemic levels. Dubai I don't want to put words in your mouth, but I just wanted to try I got that right.

Yeah, and what we're indicating.

Hi.

I apologize.

Sure.

That is correct Kartik, David did you have anything else to add to that.

Speaker 2: That is correct, Karthik. David, did you have anything else to add to that? No.

No.

Thank you very much I really appreciate it.

Thanks, Greg Thank you Kartik.

Speaker 3: The next question comes from Tyler Battery with Tani. Please proceed.

The next question comes from Tyler Battery with Janney. Please proceed.

Speaker 1: Good afternoon. Thanks for taking my questions. Appreciate all the detail thus far here. I want to start on the GES side of things. You gave the guidance down 50 percent in Q1. Steve, can you please share any details or observations?

Good afternoon. Thanks for taking my questions I appreciate all the detail thus far here.

Yes, I wanted to start on the on the Ges side of things you gave the guidance down 50% in Q1.

Steve can you please share any details or observations from Q1, so far or did you see more shows cancel than you expected in January .

Speaker 1: from Q1 so far. Did you see more shows cancelled than you expected in January ? What are people saying about the shows that did happen? Have you seen any cancellations or postponements for February or March as well?

What are people, saying about the shows that did happen have you seen any any cancellations or postponements for February or March as well.

Yes, so that's a great question.

Speaker 1: Yeah, so it's a great question.

It was kind of late November and into December during kind of the peak of pharma CRO and when we started seeing cancellations for events that were to take place in the first quarter. Most of them were in the January .

Speaker 1: It was kind of late November and into December during kind of the peak of Armichron when we started seeing cancellations for events that were to take place in the first quarter. Most of them were in the January , in the month of January , a little bit in the month of February .

In the month of January a little bit in the month of February .

Speaker 1: It's really the pace of any postponements or cancellations has declined dramatically. I haven't heard of any here for the last...

It's really the pace of any postponements or cancellations has declined dramatically by occurred about a year for the last.

Speaker 1: four weeks or so. So, you know, I believe that the peace

Four weeks or so so.

I believe that.

The pace of cancellation postponement is dying down dramatically and I expect that to continue.

Speaker 1: has died down dramatically and I expect that to continue.

Speaker 1: I will say, you know, I did have the opportunity to attend a couple events in January . One was the production and processing expo in Atlanta. It's one of our larger events in the month. And albeit the show is a little bit smaller, there was a tremendous amount of enthusiasm on the floor from exhibitors and attendees.

I will say I did have the opportunity to attend a couple of events in January one was the.

Production production and processing Expo in Atlanta is one of our larger events in the months.

<unk>.

Albeit the show was a little bit smaller there was a tremendous amount of enthusiasm on the floor from exhibitors and attendees when I looked at some of the metrics for that event. They were very similar to pre pandemic levels, just on a smaller scale and thats very encouraging.

Speaker 1: When I looked at some of the metrics for that event, they were very similar to pre-pandemic levels, just on a smaller scale. And that's very encouraging for the business and for me. There are some very positive trends that are pointing to greater success as we get further away from 2021.

For the business and for me.

So there are some very positive trends that are that are.

Aiming to greater success as we get further away from 2021.

Speaker 1: Okay, great. That's helpful. And I think in the past, one of the things that we talked about in this business is more shows happening, but smaller in size. Is that something that occurred like you expected in Q4? Do you expect that trend to continue in 2022 as well?

Okay, Great. That's helpful and I think in the past one of the things that we've talked about in this business.

More shows happening, but smaller in size is that something that occurred like you expected in Q4 would you expect that trend to continue in 2022 as well.

Speaker 1: As we mentioned in our comments, the events in the fourth quarter were smaller than their pre-pandemic size. They were down about 35 percent or so. We did see a higher number of events, and that's mainly a phenomenon that would only happen in 2021 because there were so many events.

As we mentioned in our comments.

The events in the fourth quarter were smaller than they were pre pandemic side, they were down about 35% or so.

We did see a higher number of events and thats, mainly a phenomenon that would only happen in 2021, because there are so many events from the first half of 2021 that were postponed into the back half.

Speaker 1: from the first half of 2021 that were postponed into the back half. I do not anticipate seeing that number of events happen again in 2022 in the second half.

Not anticipate seeing that.

Number of events happen again in 2022 in the second half.

Speaker 1: it'll return and if it lasts you so far, it's returned to more normal scheduling.

It will return at the well actually so far that's returned to more normal.

Scheduling of events.

Speaker 1: Okay, okay, great, that's helpful. Switching gears to the pursuit side of things and some very optimistic commentary there. I'm just curious on the travel trade group side of things, specifically in Bam Jasper, are you having those...

Okay, Great. That's helpful switching gears to the pursuit side of things and some very optimistic commentary there I'm just I'm curious on the on the travel trade group side of things specifically in Banff Jasper and are you having those conversations when do those folks usually start to look to book for.

Speaker 1: conversations. I mean when do those folks usually start to look to the book.

Speaker 1: for the summer. And I think David you cited some very strong booking statistics in Banj Jasper. Does that include any travel trade business or is that mostly mostly just individuals making the bookings in advance?

For the summer and I think David you said that some very strong bookings statistics and Banff Jasper does that include any travel trade business or is that mostly mostly individuals making their bookings in advance.

Thanks, Tyler I can tell you travel trade is alive and well it is a big country specific and so generally from.

Speaker 1: Thanks, Tyler. I can tell you travel trade is alive and well. It is a bit country specific.

Speaker 1: And so generally from certain Asian destinations, that's going to recover more slowly because of policies that the countries have put in place.

Certain Asian destinations, that's going to recover more slowly because of policies that the countries have put in place but.

Speaker 1: But other than that, we see the world beginning to travel again, and we have strong pickup from tour and travel partners, certainly from Western Europe , certainly from beginning from Australia as they have just opened and are moving to opening both inbound and outbound. So we're seeing encouraging signs for tour and travel, and people are committing to space. A lot of space is deposited, so our pacing is very, very strong.

Other than that we see the world beginning to travel again, and we have strong pickup from tour and travel partners certainly from Western Europe , certainly from beginning from Australia, just opened and are moving to opening both inbound and outbound. So we're seeing encouraging signs for tour and travel and people are committing to space.

A lot of spaces deposited so our pacing is very very strong.

Speaker 1: Okay, excellent. And then the last question for me, interested from a capital allocation perspective.

Okay excellent.

But last question for me.

I'm interested from a capital allocation perspective.

Speaker 1: your views on your investment capacity right now. I know you talked about 75 to 80 million catbacks. You have a number of projects going on in the portfolio. If you saw an opportunity to go out and buy something, do you think you have the ability to pull the trigger on something significant? And I know you're probably not too much detail you can share, but I'm just curious what the pipeline looks out there for potential transactions, specifically in the pursuit side of things. Okay.

Your views on your investment capacity right now and I know you talked about $75 million to $80 million Capex you have a number of projects going on in the portfolio.

If you saw an opportunity to go out and buy something.

Do you think you have the ability to pull the trigger on something significant.

Probably not too much detail you can share but.

Just curious what the what the pipeline looks out there for potential transactions, specifically on the pursuit side of things.

Yes.

I'll, let Ellen.

I'll, let Alan speak to.

Speaker 1: I'll let Ellen speak to capacity. I think what's interesting is that there is lots of activity. There's lots of interesting things. And we're trying to be smart and be thoughtful and spend our time looking at the various opportunities and how they might grow the business. And Ellen received a few to speak to capacity.

Capacity I think what's interesting is that there is lots of activity.

There's lots of interesting things.

And we're trying to be smart and thoughtful and spend our time looking at the various opportunities and how that might grow the business.

Now under Steve is going to speak to capacity.

Yes, Tyler in terms of capital allocation I think first I would say I'm really happy with the decisions. We made during the pandemic to continue to invest in new opportunities.

Speaker 1: Yeah, Tyler, in terms of capital allocation, I think first I'd say I'm really happy with the decisions we made during the pandemic to continue to invest in new opportunities and some development projects. So we're seeing the benefit of that as we go into 2022. And our philosophy around capital allocation is going to continue to be the same, which is we will look for opportunities on the pursuit side of the business where we can allocate capital. Well, we ended the year close to

Some development projects. So we're seeing the benefit of that as we go into 2022.

Our philosophy around capital allocation is going to continue to be the same which is we will look for opportunities on the pursuit side of the business, where we can allocate.

Capital, we ended the year close to.

Speaker 1: $150 million of liquidity. So we have the ability to do reasonable size acquisitions or development projects. Ellen spoke to a little bit about what we've already committed to in terms of projects that are in 2022. But we have our eyes open for new opportunities. And for the right deal, we'll find a way to make it happen.

$150 million of liquidity, so we have the ability to do reasonable size.

Acquisitions or development projects, Alan spoke to a little bit about what we've already committed to in terms of projects that are.

In 2022, but we have our eyes open for new opportunities.

For the right deal, we'll find a way to make it happen.

Okay, Great. That's all from me I appreciate the detail.

Thanks Tyler.

Speaker 3: Thank you, Tyler. The next question comes from Brian Mayher. Would it be Riley? Please proceed.

Thank you Tyler. The next question comes from Brian <unk> with B Riley. Please proceed.

Good evening, Steve Alan and David and Thanks for those comments so far.

Speaker 5: Good evening Steve Allen and David and thanks for those comments so far. Just a couple of questions from me. How should we be thinking about wage pressure and other inflationary costs on pursuit's ability to drive margin improvements kind of as we move through 2022?

A couple of questions from me, how should we be thinking about wage pressure and other inflationary costs on pursuits, the ability to drive margin improvement.

As we move through 2022.

I think what's important is in a war for talent.

Speaker 1: I think what's important is in a war for talent, that you fight hard with a strong culture and work hard.

If you fight hard with a strong culture.

And work hard to bring people onboard so one we're quite focused on creating the kind of environment, where people want to work, but it's a rewarding place to work.

Speaker 1: We're quite focused on creating the kind of environment where people want to work, that it's a rewarding place to work.

Speaker 1: And that's a combination of everything from good leadership to good facilities to the right program, the right recruitment efforts and so on around the world.

And Thats a combination of everything from good leadership to good facilities to the right program the rate of recruitment efforts and so on around the world.

Speaker 1: Following that, then as our visitation numbers return and our mix of guests evolves, our margin, we believe, will return strongly. So we're focused on that and doing the right things to make sure we are staffed well ahead of the game. Two things that are powerful in that regard. One is the Commonwealth Country Visa Program that allows...

Following that then as our visitation numbers return and our mix of guest evolve our margin. We believe will return strongly so.

We're focused on that and doing the right things to make sure. We are staffed well ahead of the game to things that are powerful in that regard one is the Commonwealth country Visa program that allows.

Speaker 1: Commonwealth, you know young people to go from one country to another so Australians and New Zealanders and Brits coming to Banff and Jasper in Western Canada to work and then the return of the J1 visa program in the United States is key to the success in Alaska and Montana and both of those recruiting efforts are quite strong and I feel confident that we're ahead of the game and ahead of the competition in terms of what we're doing.

Commonwealth Young people to go from one country to another so Australians and new Zealanders and rates coming into Banff, and Jasper and Western Canada to work and then the return of the <unk> Visa program in the United States is key to the success in Alaska, and Montana and both of those recruiting efforts are quite strong and I feel confident that we're ahead of the game at all.

Out of the competition in terms of what we're doing.

Speaker 1: There will continue to be pressure, but I think we're well positioned to respond.

We will continue to be pressure, but I think we're well positioned to respond to that.

Yes.

Speaker 5: Great. And then just the second question for me, as it relates to SkyLagoon and FlyOver Las Vegas, can you give us a little color on how visitation and pricing trends have been since those properties opened, particularly relative to your initial expectations? And then maybe more recently, as we had Delta and Omicron, how your expectations evolved and how those properties are doing relative to your evolving expectations?

Great and then just the second question for me as it relates to Sky Lagoon in flyover Las Vegas can you give us a little color on how visitation and pricing trends has been since those properties open.

Particularly relative to your initial expectations and then maybe more recently as we have Delta omicron how.

How youre expectations evolved and how those properties are doing relative to.

Evolving expectations.

Speaker 1: Yeah, we spoke earlier about the success at Sky Lagoon in terms of the gift product into the holiday season, which is kind of astounding.

Yes, we spoke earlier about the success at Sky Lagoon in terms of the gift product into the holiday season, which is kind of astounding. When you think about the population of Iceland, and 340000, roughly approximately and sell close to 30000 gift products within the population and that's a product that.

Speaker 1: When you think about the population of Iceland, it's 340,000 roughly approximately. And to sell close to 30,000 gift products within the population. And that's a product that generally someone buys and holds onto for the year. So it's not necessarily a destination product that a visitor.

Generally someone buy them both onto for the year, So it's not necessarily a destination product that visitor.

Speaker 1: to Iceland who's there during the holiday period would buy. So that's a great indication in terms of success. And we've had strong visitation periods, and obviously those have been tempered in times when we have greater restrictions imposed by health authorities. And definitely the Omicron surge didn't help, but clearly we're past that as all jurisdictions are in the process of either lifting or preparing to lift.

To Iceland was there during the holiday period with by so Thats a great indication in terms of success and we've had strong visitation periods and obviously those have been tempered in times, when we have greater restrictions imposed by health authorities and definitely the omicron search didn't help but clearly we're past that.

All jurisdictions during the process of either listing or are preparing to lift.

Speaker 1: restrictions. So I won't get into specific visitation just yet in the sense that we're going to let the year evolve a little bit, but we're quite encouraged both by the pacing and all of the different geographies. That gives us quite a bit of confidence in terms of how the year is going to unfold.

Restrictions, so I won't get into specific visitation, just yet in the sense that we're in.

Let the year evolve a little bit, but we're quite encouraged.

Both by the pacing and all of the different geographies.

That gives us quite a bit of confidence in terms of how the year is going to unfold.

Great and maybe lastly for al and I. Thank you.

Speaker 5: Great and maybe lastly for Ellen, I think you mentioned a $75 million CapEx number for the year and I believe you gave a first quarter number. Can you show us how you think that that $75 million kind of paces throughout the quarters?

Mentioned, the $75 million Capex number for the year and I believe you gave the first quarter number.

Can you share how you think that that $75 million kind of paces throughout the quarters.

Sure.

So first and second quarter actually.

Speaker 2: So first and second quarter pretty, actually all four quarters pretty evenly throughout the year. Plus or minus a few.

Four quarters pretty evenly.

Throughout the year.

Plus or minus a few million dollars.

Okay, great. Thanks, that's all for me.

Okay.

Thank you Brian .

Speaker 3: Thank you, Brian . The next question comes from Barry Hain with Sage Asset Management.

Question comes from Barry Haimes with Sage asset management. Please proceed.

Speaker 4: Thanks everybody and thanks for all the hard work in 2021. Ellen had just a couple of questions to fill in a couple of the pieces to get to the free cash flow for 2022. Can you give us any help on depreciation and amortization for the year, on interest expense for the year, and whether you anticipate cash taxes in 2022? Thanks.

Thanks, everybody and thanks for all the hard work in 2021.

Just a couple of questions too.

So in a couple of pieces to it.

Get to the free cash flow for 2022.

Can you give us any help on depreciation.

Depreciation and amortization for the year.

On interest expense for the year.

And whether you anticipate cash taxes in 2022.

We haven't given any specific guidance, let me say on the.

Speaker 2: We haven't given any of that specific guidance. Let me see on the cash taxes. We don't anticipate that. The DNA we haven't given any guidance on. And what's the third? I'm sorry, Barry? Interest. Interest. Oh, interest.

Cash taxes.

We don't anticipate that.

DNA, we haven't given any guidance on and with the third I'm sorry their interest in chess.

Speaker 2: No guidance on the interest, but it's our current debt at the current rates. We don't see anything changing that right now. So no update really on what we have currently.

No no guidance on the interest.

Our current debt at the current rates, we haven't seen anything.

I don't see anything changing that right now.

No update really on what we have currently.

So just to follow up on if I look at the.

Speaker 4: So just to follow up on, so if I looked at the fourth quarter numbers for both DNA and for interest expense, those would be proximate to take into 2022 then?

Fourth quarter numbers for both DNA and for interest expense those will be approximate to take into 2022 of them.

Speaker 2: Yes. Then you would need to feather in the capex and how that flows through. But it's hard without getting guidance on it.

Yes, then you would need to feather in the Capex.

And how that flows.

Yeah with that get it.

<unk> on it.

Okay. Thanks, so much.

Yes.

Okay.

Speaker 3: Thank you, Barry. The next question comes from Mark Rydick with Sidoti and Company. Please proceed.

Thank you Barry the next question comes from Marc Riddick with Sidoti <unk> Company. Please proceed.

Speaker 4: Yes, hi. Good evening, everyone. I'd just like to go over some of my questions have already been answered. So I just wanted to follow up specifically on the hiring timing expectations and maybe what you're seeing there from what you're expecting or modeling from a pricing dynamic as far as the amount of hiring that you're going to need to do to prepare for the upcoming seasons there. Thank you.

Yes, hi, good evening, everyone I just wanted to go over some of my questions have already been answered. So I just wanted to follow up specifically on the.

The hiring timing expectations, and maybe what youre seeing there from a what youre expecting or modeling from a pricing.

Dynamic as far as.

I'm not declaring that we're going to need to do to prepare for for the upcoming season, Sir Thank you.

Hey, Mark and that is that specific to pursue.

Speaker 1: I believe there was commentary on hiring within pursuit, so I think that was what the commentary was.

I believe there was commentary on hiring within pursuit. So I think that was what the what the commentary widespread.

Yes.

Speaker 1: Well, as you know, our season kick off, so we start to get obviously busier. Things start to pick up in April , May, and then obviously end of second quarter, we go into what we call more of our peak season. Obviously we're staggering hiring to meet our demands and timing the onboarding of team members to when we have peak demand.

Well as you know our season kickoff, so we start to get obviously busier.

Things start to pick up in April May and then obviously in the second quarter. We go into what we call one of our peak season.

Obviously, we're staggering hiring to meet our demand and timing of the Onboarding of team members to when we have peak demand.

Speaker 1: It's a competitive hiring process, but I'm quite encouraged by where we are. We started much earlier than any other year, and as I mentioned earlier, we're quite focused on our programs to recruit across North America for North American businesses.

If a competitive hiring process, but I'm quite encouraged by where we are we started much earlier than any other year and as I mentioned earlier, we are quite focused on our programs to recruit across North America, our North American businesses.

Speaker 1: and to encourage both the Commonwealth visa workers to come and spend time in Canada, and then J1s who come to the United States and work for a season and then return to their home country. So we're quite focused on that and encouraged by it, and we'll match up our staffing levels to the levels within our business to provide the level of service and support that's appropriate.

And to encourage both Commonwealth visa workers to come and spend time in Canada, and then <unk> to come to the United States and work for a season and then returned to their home countries. So we're quite focused on that and encouraged by it and we will match up our staffing levels to the levels within our business to provide the level of service and support that's appropriate.

Great. Thank you.

Welcome Thanks Mark.

Thank you Mark.

Again to ask a question for Scott wine.

There are no additional questions registered at this time, so I'll pass the conference back to the management team for closing remarks.

Speaker 3: There are no additional questions registered at this time, so I'll pass the conference back to the management team for closing remarks.

Thank you and thanks for everybody for their time and interest and we look forward to giving you an update for the next quarter. Thank you very much.

Speaker 1: Thank you and thanks everybody for their time and interest in VIAAT. We look forward to giving you an update for the next quarter. Thank you very much.

That concludes the <unk> Corp, fourth quarter 2021 earnings call. Thank you for your participation you may now disconnect your line.

Speaker 3: That concludes the BIAT Corp fourth quarter 2021 earnings call. Thank you for your participation. You may now disconnect your line.

Speaker 6: Grow Mar on number. Mar fect n bus.

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