Viad Q3 Revenues Jump 42 Percent; Same-show Revenue Increases More Than 7 Percent
The positive trend for Viad, parent company of Global Experience Specialists, continued into the third quarter, with the company scoring a 42.2-percent spike in revenues to $307.5 million, compared with $216.2 million during the same time period in 2011.
Viad’s Q3 income also soared to $20.4 million, compared with $1.2 million during the same time period last year.
The improved financial results primarily were driven by positive show rotation and strong throughput at Viad's Marketing & Events Group and expanded revenue at the company's Travel & Recreation Group.
Same-show results in the third quarter was a good sign of recovery within the trade show industry, posting more than a 7-percent increase in revenue to $49.5 million, compared with the same time period last year.
"Our financial results for the third quarter of 2012 were very strong,” said Paul B. Dykstra, Viad’s chairman, president and CEO.
He added, “Revenue from our Marketing & Events Group increased 52 percent to $230.3 million, primarily driven by better than anticipated revenue from non-annual shows that took place during the quarter. Base same-show revenue was up seven percent, marking the ninth consecutive quarter of growth.”
The sharp increase in the Marketing & Events Group, of which GES is a part of, benefited from two non-annual megashows - International Manufacturing Technology Show and MINExpo International.
MINExpo, the premier quadrennial event for the mining industry produced by the National Mining Association, spanned 860,000 net square feet at the Las Vegas Convention Center, up 40 percent from its previous show in 2008.
IMTS, a biennial show produced by the Association for Manufacturing Technology at Chicago’s McCormick Place, also grew its showfloor to 1.24 million net sq. ft.
In addition to positive revenues, GES had more good news when it scored a significant new show contract.
“We were awarded a contract to produce The National Rifle Association (NRA) Annual Meetings and Exhibits, commencing in 2013 through 2015,” Dykstra said.
He added, “The NRA Annual Meeting is a three-day major exhibition covering more than 400,000 square feet with more than 500 exhibitors and an estimated 70,000 attendees. We are very pleased with this competitive takeaway and we look forward to working closely with the NRA for many years to come.”
A significant uptick of international revenue in Marketing & Events Group was driven by work done on the 2012 London Olympic and Paralympic Games.
“All in all, the Marketing & Events Group delivered solid performance and is on track to deliver strong improvement in full-year results," Dykstra said.
Viad’s Travel & Recreation Group also posted positive results, with revenue for the third quarter of 2012 increasing 19.7 percent to $77.2 million.
Dykstra said the company expected full-year results also to deliver more good news.
"We expect that both the Marketing & Events Group and the Travel & Recreation Group will post significant revenue and operating income increases in full year 2012 and will achieve our guidance targets,” he added,
As showfloors continue to grow, Dykstra said, “We expect that event square footage, freight-weight and discretionary spend by exhibitors, as well as tradeshow attendance in 2012, will show meaningful increases versus the previous two years.”