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Performance Summary 2016

$ 1.2Billion

Revenue

$ 130.2Million

Adjusted Segment EBITDA1

$ 2.38

INCOME BEFORE OTHER ITEMS PER SHARE1

$ 100.3Million

Cash Flow from operations

1 Click here for a reconciliation of this non-GAAP measure to the nearest GAAP measure.

“Our company is committed to making a discernible difference in all that we do. Our reputation for integrity is our most valuable business asset. Our people respect the rights of and deal fairly with our customers, employees, business partners, and communities in which we live. Our commitment to the company and to be Always Honest drives our success.“

Steve W. Moster

President & Chief Executive Officer
NON-GAAP FINANCIAL MEASURES    
ADJUSTED SEGMENT EBITDA   INCOME BEFORE OTHER ITEMS
Millions 2016   (per diluted share) 2016
Net income attributable to Viad $ 42.3   Net income attributable to Viad $ 2.09
Loss from discontinued operations attributable to Viad 0.7   Loss from discontinued operations attributable to Viad 0.03
    Income tax expense 21.3   Income from continuing operations attributable to Viad 2.12
    Interest income (1.2)       Restructuring charges, pre-tax 0.26
    Interest expense 5.9       Acquisition-related costs and other non-recurring expenses, pre-tax
 0.12
    Impairments charges, pre-tax 0.2       Impairment charges, pre-tax 0.01
    Restructuring charges, pre-tax 5.2       Tax benefit on above items (0.13)
    Corporate activities expense 10.3   Income before other items $ 2.38
    Corporate eliminations 0.7      
Segment Operating Income $ 85.9      
    Fire-related business interuption expense 0.1      
    Acquisition integration costs 1.1      
    Acquisition Transaction-related Costs 0.5      
Adjusted Segment Operating Income $ 87.7      
    Segment Depreciation 33.4      
    Segment Amortization 9.2      
Adjusted Segment EBITDA  $ 130.2      

Opportunity Summary

Strength

Two solid business units
Strong, proven foundation
  • Leading and defensible market positions
  • Recurring revenue streams
  • Strong growth prospects
  • Solid balance sheet

Vision

Well-defined growth strategies
Clear plans for meaningful growth
  • GES: Differentiating as the preferred global, full-service provider for live events
  • Pursuit: Driving economies of scale and scope and enhancing a unique portfolio of integrated tourism assets

Performance

Balanced capital allocation
Focus on shareholder return
  • Business development remains the priority
  • Opportunistically repurchase shares
  • Pay quarterly dividend: $0.10 / share
  • Credit facility leverage ratio
    • For acquisitions: ≤3.0X
    • For return of capital >20M1: ≤2.5X

1In any calendar year.

Strategic Goals

Ges

  • Transform into full-service live event company
    • ~50% of revenue from non-Exhibition segments (37% in 2015)
    • ≥$250M in revenue from AV and Event Technologies (7% in 2015)
  • Grow revenue mid-single digits (same-show)
  • Increase EBITDA1 margin to ~8% w/o show rotation benefit (5.6% in 2015)

PURSUIT

  • Scale to ≥$250M in revenue ($112M in 2015)
  • Leverage professional team and systems
  • Maintain strong EBITDA1 margin (32% in 2015)
  • Create umbrella brand for unique collection of experience assets

1.Refers to Adjusted Segment EBITDA and a Non-GAAP to GAAP reconciliation is published 10K