Viad 2Q Revenues Up More Than 3 Percent Driven By U.S. Marketing/Events Group
Viad chalked up its eighth consecutive quarter of growth with second-quarter revenues for this year up 3.3 percent to $246.5 million, compared with $238.7 million during the same period last year.
Net income also was up to $6.1 million in the second quarter this year, compared with $4.5 million during the same period last year.
Positive second-quarter revenue results were driven by the U.S. Marketing & Events Group that saw an increase of 15 percent to $165.5 million, compared with $150.2 million during the same period last year.
International results for the Marketing & Events Group dipped more than 18 percent, however, from $67 million during the second quarter last year to $54.7 million during the same period this year.
The Travel & Recreation Group posted good second-quarter numbers with a 23 percent revenue increase to $29.5 million this year, compared with $24 million last year.
“Both of our business groups performed at a high level in the second quarter of 2012,” said Paul B. Dykstra, Viad’s chairperson, president and CEO. “Consolidated revenues for the quarter increased 3.3 percent to $246.5 million, while total segment operating income increased 6.4 percent to $10.5 million, primarily reflecting strong execution in both segments and traction gained in our on-going initiatives to expand margins and profitability in our Marketing & Events Group.
A good indicator of recovery within the trade show industry is that U.S. base same-show revenues were up 6.1 percent in the quarter, he added.
Increases on the U.S. Marketing & Events Group were driven primarily by net positive show rotation revenue of approximately $5 million, base same-show growth, new business wins and a focus on margin improvement, according to Viad officials.
“During the quarter, GES produced the WINDPOWER Conference and Exhibition in Atlanta on June 3-6,” Dykstra said.
He added, “This was the first of five annual events awarded to GES by the American Wind Energy Association in a notable contract win in the fourth quarter of 2011. We are gratified to have won this business and we look forward to a very successful collaboration in the coming years. All in all, we are pleased with the results of the quarter.”
Revenue dips in the international Marketing & Events Group primarily were driven by net negative show rotation revenue of approximately $14 million.
In addition, foreign exchange rate variances had an unfavorable impact on revenue and operating income of $2.7 million and $117,000, respectively, as compared with the 2011 quarter.
The future looks brighter, though, with Viad’s U.K.-based Melville GES unit scoring a large number of projects for the 2012 London Summer Olympic Games.
Revenue increases in the Travel & Recreation Group were driven by the additions of Alaska Denali Travel, the Banff International Hotel and the St. Mary Lodge & Resort, as well as an increase in visitor traffic across all of the attractions at the company’s Brewster unit.
“We look forward to building on the momentum achieved in the first half of 2012 throughout the remainder of the year,” Dykstra said.