Viad 2Q Revenues Up More Than 3 Percent Driven By U.S. Marketing/Events Group

July 29, 2012

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.

Add new comment

Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.    Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.    Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.   The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.    MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.     MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.