Big Shows Give Viad Big Gains in Q3
Viad’s marketing and events group—which includes exhibition and event service provider GES—had a strong third quarter. According to a statement released by GES’s parent company Viad, the marketing and events group generated $168.4 million in revenue in the United States alone.
Viad’s third-quarter results show:
· Revenue up 42.2 percent to $307.5 million, compared with $216.2 million in 2011
· Segment operating income of $34.2 million, up from $5.4 million in 2011
· Free cash flow of $45.2 million, up from $23.8 million in 2011
· Debt of $2.3 million, with a debt-to-capital ration at 0.5 percent at the end of the third quarter
According to GES President Steve Moster (pictured), the growth was due to show rotation and other special circumstances. “In the U.S., two major non-annual shows, the International Manufacturing Technology Show and MINExpo were significant contributors to quarterly revenue,” he says. “In our international segment, we delivered event services in more than 20 venues throughout metropolitan London for the 2012 London Summer Olympic and Paralympic Games, making a significant contribution to the results of the quarter.”
Adds Moster in an interview with EXPO, “2013 will be a year with significantly less revenue from non-annual events, resulting in net negative show rotation of approximately $55 million. Despite the non-annual shows, we expect to offset the majority of the revenue loss with new revenue from new clients.”
Going into the fourth quarter and next year, Moster says GES will focus on initiatives to more effectively manage labor costs, reduce the physical footprint and the overhead associated with U.S. warehousing operation and attract new customers.
“We believe that the dynamics of the tradeshow and exhibitions business continue to improve,” he says. “GES has realized nine consecutive quarters of same-show growth. During 2012, we have seen an increase in overall square footage and the number of exhibiting companies, which has helped drive an increase in freight weight on our shows.”