Viad’s Second-quarter Revenues Up 9.3 Percent to $238.7 Million

Phoenix-based Viad, the parent company of Global Experience Specialists, recently posted second-quarter earnings results, with $238.7 million in overall revenues, compared with $218.3 million during the same period last year, a 9.3-percent uptick.

In addition, second-quarter net income rose 48 percent to $4.5 million, compared with net income of $3 million during the same period last year.

Viad’s U.S. Marketing & Events Group division, which includes Las Vegas-based GES, also saw good results, with revenues of $150.2 million, compared with $144.5 million during the same period last year, a 4-percent uptick.

"Our results for the second quarter reflect stronger than expected performance from our Marketing & Events Group,” said Paul B. Dykstra, Viad’s chairman, president and CEO. “U.S. base same-show revenue growth was 5.8 percent, and exhibition and event industry fundamentals continue to improve with modest increases in net square footage. We continue to be successful in capturing additional spend from exhibitors while focusing on high-quality execution and customer service.”

He added, “Our Travel & Recreation Group posted results in line with our prior guidance. Viad's performance during the first half of 2011 has been strong, providing a foundation for solid earnings growth in 2011."

In the Marketing & Events Group, positive results were driven by exhibitor spending and positive show rotation, which impacted total group revenues by approximately $6 million, according to Viad officials.

U.S. segment revenues and operating income increased $5.7 million and $2.5 million, respectively, compared with the 2010 quarter.

The improved operating results primarily were driven by base same-show revenue growth of 5.8 percent, increased short-term bookings, capturing greater exhibitor spending and continued cost control, according to Viad officials.

These improvements were partially offset by negative show rotation of approximately $2 million, as well as increased performance-based incentives and merit increases that did not occur in 2010 or 2009.

"The Marketing & Events Group's improved results over the 2010 quarter were driven mainly by continued base same-show growth, favorable foreign exchange rate variances, increased short-term bookings and success in capturing additional exhibitor spending, Dykstra said.

He added, “We are gaining traction from last quarter's realignment of our U.S. sales organization to better attack opportunities to capture new shows, new exhibiting clients and a greater share of exhibitor services."

According to Dykstra, Viad is predicted to end the year on a high note for same-show growth. 

"We expect full year base same-show growth to be in the mid-to-high single digits,” he said. “We also expect the Marketing & Events Group to return to profitability in 2011 as a result of industry growth, positive show rotation, capturing greater exhibitor discretionary services revenue and the cost structure and efficiency gains we made during the past two years."

The next two quarters look to be a challenge, with an estimated $30 million negative revenue impact from third-quarter show rotation and estimated fourth-quarter flat revenue impact from show rotation.

Overall, annual show rotation is expected to positively impact full-year revenues by approximately $15 million.