Pursuit Attractions & Hospitality, Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Transformative Sale of GES: Sold GES to Truelink Capital for $535 million, transforming Pursuit into a standalone attractions and hospitality leader, eliminating high-cost debt, establishing liquidity, and optimizing the balance sheet.
• Refresh, Build, Buy Strategy: Strategy includes refreshing existing assets, building new experiences, and acquiring businesses. Examples include opening FlyOver Chicago, expanding Sky Lagoon, and completing three tuck-in acquisitions in Apgar Village (Eddie's Cafe, Mercantile, Apgar Lookout Retreat, Montana House) and acquiring Jasper SkyTram.
• 2024 Achievements: Opened FlyOver Chicago, expanded Sky Lagoon, completed strategic acquisitions, responded to Jasper wildfire, and transformed the balance sheet to support growth.

Segment Performance

• Attractions Performance: Full year 2024 traction ticket revenue was $162 million, growing 13% year-over-year with a 6% increase in visitors and higher effective ticket prices. FlyOver Chicago welcomed approximately 344,000 visitors since opening in March 2024. Sky Lagoon's expansion boosted ticket revenue by nearly 30% in the four months following completion. The Banff Gondola continued standout performance. Revenue contribution from attractions was significant, with growth driven by new openings and expansions.
• Hospitality Performance: Overall room revenue decreased $4 million vs 2023. Excluding Jasper properties from the third and fourth quarters, room revenue grew ~8% year-over-year, with all geographies outside Jasper showing growth. Same-store RevPAR (excluding Jasper) grew 9% year-over-year, capturing higher ADRs and strong occupancy levels.

Guidance

• 2025 Outlook: Expect double-digit growth in full year revenue and adjusted EBITDA. Adjusted EBITDA guidance range is $98 million to $108 million, an increase from 2024. Jasper's recovery is expected to boost EBITDA, with recent acquisitions projected to add $5-7 million in 2025 EBITDA. A weaker Canadian dollar is expected to be a ~$7 million headwind to EBITDA due to translation, but potential benefit from more U.S. guests due to cheaper travel.

Risks

• Wildfire Impact: Jasper wildfire impacted 2024 results, though recovery is anticipated.
• FlyOver Performance: Impairments in FlyOver Las Vegas and goodwill due to slower-than-expected ramping of FlyOver locations.
• Currency Fluctuations: Weaker Canadian dollar poses a headwind to EBITDA due to translation of Canadian profits into fewer U.S. dollars.

Question and Answer

• Q: About CapEx projection for 2025 A: Balancing internal refresh/build projects with acquisition opportunities, throttling based on the acquisition pipeline and what's happening on the acquisition side.
• Q: Acquisitions in Apgar Village A: Contiguous properties in Apgar Village provide opportunities for refresh and expanded services like lodging, food and beverage, and retail.
• Q: Canadian dollar impact on EBITDA A: Weaker Canadian dollar is a headwind, but potential benefit from more U.S. guests due to cheaper travel in Canada.
• Q: Travel trade and inventory management A: Increased demand from travel trade partners, managing inventory with strict release dates, and strong consumer direct demand.
• Q: EBITDA margin guidance A: Midpoint of guidance expected to be closer to 25% margin, driven by operating leverage and growth, with continued margin expansion expected over time.
• Q: Leverage for acquisitions A: Comfortable with leverage, targeting 2.5x to 3.5x net leverage for right opportunities, with strong liquidity including a $200 million undrawn revolver and $49.7 million cash balance at year-end 2024