GES' Parent Company - Viad - Reports Full-year Revenue Up, Earnings Down

February 3, 2013

Phoenix-based Viad – Global Experience Specialist’s parent company – reached $1 billion in revenue for 2012, an increase of $82.9 million, or 8.8 percent from 2011, although full-year earnings dropped from $8.8 million in 2011 to $5.3 million in 2012.

“We achieved strong growth in 2012, hitting more than $1 billion in revenue,” said ,” said Paul B. Dykstra, Viad’s chairman, president and CEO.

He added, “Both business units delivered solid results consistent with guidance for the year.”

The Marketing & Events Group performed well, with revenue increasing 7.3 percent to $902.0 million and U.S. base same-show revenue growth of 6.5 percent, compared with 2011.

“Revenue in the Travel & Recreation Group also increased 21 percent to $123.2 million as we benefitted from the first peak season contributions from Alaska Denali Travel and the Banff International Hotel, as well as the newly renovated rooms at the Many Glacier Hotel and increased organic revenue,” Dykstra said.

He added, “For the year, total revenue increased 8.8 percent, operating margins increased 140 basis points to 4.1 percent and income before other items per share nearly doubled compared to 2011.”

Viad also posted losses of $21.2 million in the fourth quarter of 2012, compared with a loss of $14.9 million during the same time period in 2011. The 2012 Q4 loss was attributed to “unfavorable tax matters” associated with foreign tax credits.

Q4 overall revenue, however, saw an uptick of nearly 3 percent to $202.6 million from $197.4 million during the same period in 2011.

The U.S. Marketing & Events Group, of which GES is a part of, scored favorable numbers in 2012.

Base same-show revenue, or revenue derived from shows that take place in the same city during the same quarter each year, increased 6.5 percent to $281.2 million from $264.0 million in 2011.

Positive show rotation in 2012 also helped drive growth, totaling approximately $21 million from non-annual shows that took place during the year.

One of those big shows was the quadrennial MINExpo International, which was held in September at the Las Vegas Convention Center and had an 860,000 square feet showfloor, up 40 percent from its previous show in 2008.
 
The show also featured a total of 1,890 exhibitors up nearly 45 percent, and attracted more than 58,359 attendees, an increase of more than 45 percent.

Dykstra pointed to several other cost-saving initiatives that led to higher numbers for GES.

“2012 was a very positive year for GES. Revenue on a year-over-year basis increased 7.3 percent, and we achieved significant cost savings and efficiencies from continuing to rationalize our Service Delivery Network,” he said.

Dykstra added, “Since 2008, we have reduced our U.S. facility footprint by approximately 1.2 million square feet and have realized annualized cost savings in excess of $6 million. Add to that our initiative to more efficiently manage labor utilization throughout the year, and GES’ operating margin for 2012 increased to 2.0 percent for the year from 0.6 percent in 2011.”

This year, though, may be more of a challenge with some of the bigger annual shows not in rotation.

Even so, Dykstra said, “We are targeting a full year operating margin of 2.5 percent for GES in 2013, as we win new business and operate the business even more efficiently.”

Add new comment

Partner Voices
One of the most iconic names on the Las Vegas Strip just got an upgrade. Mandalay Bay has everything that your business needs from a refreshed convention space designed to inspire productivity and creativity, to an impressive selection of world-class restaurants and amenities. If you're looking for a venue that's both inviting and innovative, you have to be here. New Wave Experiences Mandalay Bay continues to invest in a new wave of enhancements both in the convention space and within the resort as a whole. New restaurant openings including Orla by Michael Mina, drawing inspiration from the award-winning chef’s childhood in Egypt and with flavors and décor inspired by the spices found in markets common to coastal Mediterranean towns, as well as Caramá by Wolfgang Puck, bringing the essence of Italy and spirit of Wolfgang into one concept, are recent additions. The Four Seasons Hotel Las Vegas also experienced a recent remodel of all 424 rooms. Swingers, a high-end, adults-only golf and entertainment concept will debut in Fall 2024. Enhanced Technology Creating a truly effective conference venue requires careful thought into what a business needs: the right technology, capacity, and inspiration to bring ideas to the next level. As part of the resort’s refresh, Mandalay Bay implemented state-of-the-art technology upgrades, installing cutting-edge Cat6A Ethernet cabling throughout the convention center. This advancement doubles the frequency of data transmission, enabling lightning-fast speeds up to 9400% faster. The convention center now boasts 11 dynamic digital walls, spanning up to 24' x 13', strategically positioned for brand placements, sponsorships and targeted event messaging. Additionally, attendees can benefit from 20 double-sided 55" mobile flexible display units, facilitating effortless navigation to meeting rooms and events. RFID locks were installed on all meeting room doors, and over 200 motion detection cameras have been placed throughout the space. Refreshing New Design & Fine Art The newly remodeled convention space provides a bright and vibrant atmosphere that complements Mandalay Bay's tropical-inspired brand. Featuring white-washed walls and ceilings adorned with bold floral patterns in cerulean and coral tones, the space is complemented by warm walnut accent walls. In addition to the redesign of all pre-function spaces, meeting rooms and ballrooms, Mandalay Bay's 1 million square feet of exhibit space has undergone a rejuvenation, including new paint, covered pillars and relocated strobe lights. Sustainable Spectacles Mandalay Bay is committed to Focused on What Matters and creating more responsible meetings. Refillable water stations all available around the resort, cutting unnecessary plastic usage from single-use bottles. The Mandalay Bay campus’ recent upgrades represent a bold step forward in redefining the Las Vegas experience. With a focus on innovation, sustainability, and unparalleled service, Mandalay Bay sets a new standard for excellence in business hospitality. Whether you're seeking cutting-edge conference facilities, world-class dining options, or simply a luxurious retreat, an unparalleled meeting experience awaits.