Viad Corp (NYSE: VVI), a leading provider of experiential leisure travel and face-to-face events and marketing experiences, today announced the acquisition of a controlling interest in a new attraction, the filing of a “universal shelf” registration statement for added flexibility, and participation in an upcoming virtual investor conference.
Golden Skybridge Acquisition
We have expanded Pursuit’s collection of unforgettable and inspiring attractions and hospitality experiences with the addition of a new attraction located in the Canadian Rockies. The Golden Skybridge features the two highest suspension bridges in Canada, which span almost 500 feet across an expansive canyon, as well as a canyon-edge nature walk and viewing platforms that offer breathtaking views of a roaring 200-foot waterfall, serene mountain river and the surrounding vistas of the iconic Columbia and Rocky Mountain ranges. The attraction is expected to open in May 2021 and will be expanded to include a bungee swing and a zipline across the canyon later this summer.
The Golden Skybridge is located about 90 minutes west of Banff in the mountain town of Golden, British Columbia, surrounded by six national parks. Historically known as an outdoor adventurer’s paradise, Golden is a perfect basecamp to explore pristine mountain landscapes and is also a popular stop for visitors travelling between Alberta and British Columbia.
David Barry, president of Pursuit, commented, “We are excited to add the Golden Skybridge to our lineup of new attractions that will open this year, which also includes the Sky Lagoon in Iceland and FlyOver Las Vegas. These investments reflect our ongoing commitment to our Refresh, Build, Buy strategy that has fueled Pursuit’s strong growth and margins over the past several years. As the world continues to emerge from the pandemic, we believe that all of Pursuit’s experiences in iconic locations are well-positioned to benefit from pent-up perennial demand.”
We acquired a 60% controlling interest in the Golden Skybridge attraction for a cash purchase price of $15 million Canadian (approximately $12 million U.S.), of which $6 million Canadian (approximately $4.8 million U.S.) will be used to fund remaining start-up costs and the development of additional activities, including the zipline and bungee swing. Our liquidity position, after completing the acquisition, was approximately $227 million as of March 19, 2021, comprising approximately $37.5 million in unrestricted cash, approximately $144.2 million of available capacity on our revolving credit facility, and an additional $45 million available to us through a delayed draw commitment from Crestview Partners.
Universal Shelf Registration Statement Filing
On Friday, March 19, 2021, we filed a “universal shelf” registration statement on Form S-3 (the “Registration Statement”) with the Securities and Exchange Commission (“SEC”), relating solely to the sale, from time-to-time, of common stock, preferred stock, debt securities, warrants, purchase contracts, and units (collectively, the “Securities”).
Steve Moster, Viad’s president and chief executive officer, commented, “Throughout the pandemic, we have taken various actions to solidify Viad’s financial position to ensure our business withstands the effects of the pandemic while also funding select growth investments at Pursuit. Like the Golden Skybridge acquisition, we expect other high-return growth opportunities will become available for Pursuit and may only be available for a short window. With a universal shelf registration statement in place, we have additional flexibility to access the capital markets should the right opportunities arise.”
The Registration Statement was automatically effective upon filing and allows us to sell an unlimited amount of Securities from time to time and in one or more offerings. The terms of any such offering, including the specific terms and prices of the Securities, will be determined at the time of such offering and be made solely by means of the base prospectus included in the Registration Statement and an accompanying prospectus supplement relating to such offering. A copy of the prospectus included in the Registration Statement may be obtained on the SEC's website at www.sec.gov. There is no certainty any Securities will be offered or sold.
Moster concluded, “As we continue to navigate the uncertainties of the COVID-19 pandemic, we remain committed to carefully managing our cash flows and being strong stewards of our capital to maximize shareholder value.”
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sales of the Securities in any jurisdiction in which such offer, solicitation or sales would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Participation in Upcoming Investor Conference
Viad’s President and Chief Executive Officer Steve Moster will deliver a presentation at the Sidoti Spring 2021 Virtual Conference on Wednesday, March 24th, 2021 at 3:15 p.m. Eastern Time. He and Chief Financial Officer Ellen Ingersoll will also be available for meetings with investors registered for the conference.
To access the live presentation or to view the presentation materials, please visit our website at www.viad.com. The updated investor presentation material will be posted to our website by 8 a.m. Eastern Time on Wednesday, March 24th.
About Viad
Viad (NYSE: VVI) is a leading provider of experiential leisure travel and face-to-face events and marketing experiences that generates revenue and shareholder value through two businesses: Pursuit and GES. Pursuit is a collection of inspiring and unforgettable travel experiences in Alaska, Montana, the Canadian Rockies, Vancouver, and Reykjavik, as well as new experiences in development in Las Vegas and Toronto. Pursuit’s collection includes attractions, lodges and hotels, and sightseeing tours that connect guests with iconic places. GES is a global, full-service live events company offering a comprehensive range of services to the world's leading brands and event organizers. Our business strategy focuses on providing superior experiential services to our customers and sustainable returns on invested capital to our shareholders. Viad is an S&P SmallCap 600 company. For more information, visit www.viad.com.
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “estimate,” “anticipate,” “deliver,” “seek,” “aim,” “potential,” “target,” “outlook,” and similar expressions are intended to identify our forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts and are subject to a host of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those in the forward-looking statements.
Important factors that could cause actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the following:
- the impact of the COVID-19 pandemic on our financial condition, liquidity, and cash flow;
- our ability to anticipate and adjust for the impact of the COVID-19 pandemic on our businesses;
- general economic uncertainty in key global markets and a worsening of global economic conditions;
- travel industry disruptions;
- our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;
- our dependence on large exhibition event clients;
- the importance of key members of our account teams to our business relationships;
- the competitive nature of the industries in which we operate;
- unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals for such projects;
- seasonality of our businesses;
- transportation disruptions and increases in transportation costs;
- natural disasters, weather conditions, and other catastrophic events;
- our multi-employer pension plan funding obligations;
- our exposure to labor cost increases and work stoppages related to unionized employees;
- liabilities relating to prior and discontinued operations;
- adverse effects of show rotation on our periodic results and operating margins;
- our exposure to currency exchange rate fluctuations;
- our exposure to cybersecurity attacks and threats;
- compliance with laws governing the storage, collection, handling, and transfer of personal data and our exposure to legal claims and fines for data breaches or improper handling of such data; and
- changes affecting the London Inter-bank Offered Rate (“LIBOR”) and the Canadian Dollar Offered Rate (“CDOR”).
For a more complete discussion of the risks and uncertainties that may affect our business or financial results, please see Item 1A, “Risk Factors,” of our most recent annual report on Form 10-K filed with the SEC. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation.
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Contacts:
Investor Relations
(602) 207-2681
ir@viad.com
