Viad Corp Provides Update on Near-Term COVID-19 Impacts

Viad Corp (NYSE: VVI) today announced that as a result of the current environment related to COVID-19, it has reduced first quarter 2020 guidance and withdrawn full-year 2020 guidance.

Update Highlights

• In the first quarter of 2020, January and February performance was in-line with expectations.
• The Company’s GES business is being impacted by near-term event postponements and cancellations resulting from virus concerns, which to date, do not extend past June.
• Management had previously guided for incremental revenue of about $100 million at GES in 2020, largely resulting from three major non-annual events:
  • CONEXPO-CON/AGG, which took place March 10 through March 13 in Las Vegas and exhibitor cancellations represented only 2.5% of the total square footage of the event.
  • IMTS and MINExpo, which are scheduled to take place during September in Chicago and Las Vegas, respectively.
• The Company’s Pursuit segment is seasonally strongest in June through September. To date, Viad has experienced about $1 million in revenue cancellations at Pursuit. As the disruption in travel and focus on social distancing continue, we expect more cancellations closer to the date of travel.
• First quarter 2020 guidance has been reduced, based on known impacts at GES, and full year 2020 guidance has been withdrawn due to uncertainty regarding the future impact of recently heightened public health concerns and related restrictions in response to the COVID-19 pandemic.

Steve Moster, president and chief executive officer, commented, “As a result of the unprecedented escalation of concerns over COVID-19, we are experiencing event postponements and cancellations, as well as reduced exhibitor participation, that are impacting results in our GES business. Based on known event postponements and cancellations to date, we expect our first quarter 2020 results to be below the guidance we issued on February 6, 2020.”

Moster continued, "Thus far, we have not seen event postponements or cancellations beyond the second quarter at GES, nor have we experienced a meaningful level of cancelled bookings at Pursuit. That said, the situation is changing rapidly and it is challenging to predict how COVID-19 will impact the events industry and the broader travel market for the remainder of fiscal year 2020. As a result, we are withdrawing our previous full year guidance issued on February 6, 2020.”