SCOTTSDALE, AZ – Viad Corp (NYSE:VVI) disclosed today that the recent wildfires in Jasper National Park have affected the area around its properties. The event, which necessitated the evacuation of Jasper National Park on Monday, escalated by Wednesday when the fire reached the Southwest end of the Jasper townsite, causing extensive damage to homes and businesses.
Pursuit, a Viad subsidiary operating within the park, successfully evacuated all team members and guests from its Banff Jasper Collection without harm. The company is now actively involved in community support and recovery efforts in collaboration with local, provincial, and federal agencies, as well as tourism partners. Pursuit is also assisting guests whose travel plans have been disrupted due to the wildfire.
Fortunately, Pursuit's six lodging facilities, situated in the Northeast of the Jasper townsite, were spared from the blaze. Viad is in the process of evaluating the business impact of the wildfire and is liaising with insurance carriers to ascertain coverage details and potential compensation under existing policies.
As the situation develops, Viad Corp will continue to provide updates on the repercussions of the wildfire and its influence on the company's operations in the Jasper region. This report is based on the latest information available from a press release statement.
In other recent news, Viad Corp reported a significant increase in Q1 revenue of 4.9%, amounting to an additional $12.7 million compared to the same period last year. The company's subsidiary, Pursuit, played a substantial role with a 14% revenue increase. Viad Corp projects a 16% to 30% growth in adjusted EBITDA for the full year, with consolidated adjusted EBITDA expected to land between $171 million and $191 million.
In a noteworthy development, Viad Corp announced the acquisition of Jasper SkyTram for approximately $18 million, a move expected to contribute around $4 million in revenue in 2024. The deal, which awaits Parks Canada's approval, aligns with Viad's strategy of delivering extraordinary experiences and sustainable growth.
Additionally, Viad Corp disclosed the immediate departure of board member Sung-Chul Patrick T. LaValley, as informed by Crestview Partners IV GP, L.P. The reasons for the removal were not specified, and Crestview Partners is currently seeking a suitable replacement.
Despite the slow recovery of Chinese tourism, Viad Corp remains optimistic about attracting visitors from other markets and has disclosed a strong pipeline of investment opportunities for future growth. These developments reflect recent changes and ongoing strategies within the company.
InvestingPro Insights
As Viad Corp navigates the aftermath of the Jasper National Park wildfires, the company's financial health and market performance become a focal point for investors. According to recent data from InvestingPro, Viad's market capitalization stands at $724.48 million, with a notably high price-to-earnings (P/E) ratio of 377.02, which adjusts to 247.26 for the last twelve months as of Q1 2024. These figures suggest a valuation that expects significant earnings growth, aligning with an InvestingPro Tip that anticipates net income to grow this year. Furthermore, the stock's recent volatility is reflected in the 10.66% drop in price total return over the last week, which may attract investors looking for potential rebound opportunities.
InvestingPro Tips also indicate that analysts are optimistic about Viad's earnings, with three analysts having revised their earnings estimates upwards for the upcoming period. While the company does not pay dividends, suggesting a reinvestment of earnings into the business, it trades at a high price/book multiple of 59.16, signifying a premium on its book value. For investors seeking more in-depth analysis, there are an additional 9 InvestingPro Tips available, which can be accessed with a subscription. To explore these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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