Viad Corp (NYSE : VVI) is a leader in experiential leisure travel, live events, and marketing experiences. Today, Viad Corp announced that it has completed the sale assets of ON Services, its US-based business providing audio-visual services, for $30 million. This was subject to any customary working capital adjustments.
Viad's President and Chief Executive Officer Steve Moster stated that the sale of ON Services assets will continue the strategic transformational changes made at GES in the last few years. It will also simplify GES' operational model. GES is now well-positioned to generate significant free cash flow, with low capital expenditures requirements and a simplified cost structure through its core Exhibitions/Spiro businesses.
Moster stated, "The increased balance sheet strength resulting from this transaction allows us to continue our focus upon scaling Pursuit with investments into high-return unforgettable and inspiring experiences through our REFRESH, BUILD, BUY growth strategy."
ON Services' audio-visual services revenue accounted for approximately 6% of the total GES revenue during the nine months ending September 30, 2022. GES will offer certain services during the transition period to help ensure a smooth transition.
Viad (NYSE : VVI) is a global leader in extraordinary experiences. It offers a wide range of services, including leisure and hospitality activities, experiential marketing and live events through its two businesses, Pursuit and GES. Our business strategy is focused on creating extraordinary experiences for our clients, employees, and guests. We also aim to achieve significant and sustainable growth as well as above-market returns for shareholders. Viad is a S&P SmallCap 600 Company.
Pursuit offers a variety of unforgettable and inspiring travel experiences in Alaska and Montana, Canada Rockies, Vancouver and Reykjavik as well as new experiences in Chicago and Toronto. Pursuit offers a variety of attractions, lodges, hotels, and sightseeing tours to connect guests with famous places.
GES is a global company that provides live events services. It offers a wide range of services to event organizers and brands around the globe through two reporting segments: GES Exhibitions and Spiro. Spiro is an experiential marketing company that partners with top brands to improve their global marketing efforts. GES Exhibitions, a global exhibition services provider, partners with top conference and exhibition organizers to provide full-service logistics and strategic solutions to manage the complex events with teams across North America, Europe and the Middle East.
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This press release contains forward-looking statements. These forward-looking statements are identified by words and combinations of words such as "will", "may", and "expect", and other similar expressions. Forward-looking statements also include statements about our business strategy, outlook and goals, as well as plans, intentions, goals, and objectives. Forward-looking statements are not historical facts. They are subject to many risks and uncertainties that could cause actual results and outcomes to differ materially from the statements.
The following are important factors that could lead to actual results being materially different from those stated in our forward-looking statements:
General economic uncertainty on key global markets, and worsening global economic conditions
Travel industry disruptions
Seasonality of our businesses
The impact of the COVID-19 pandemic upon our financial situation, liquidity, cash flow, and other aspects.
Our ability to anticipate the effects of the COVID-19 pandemic and adapt accordingly;
Unexpected delays and cost overruns in capital projects can impact our ability to meet established financial and strategic goals.
Our exposure to labor shortages, turnover and labor cost rises;
The importance of key account team members to our business relationships
The competitive nature of the industries where we work
our dependence on large exhibition event clients;
Show rotation can have adverse effects on our periodic results, and operating margins.
Transportation disruptions and an increase in transportation costs
Natural disasters, weather conditions and accidents are all possible.
Our exposure to labor cost hikes and work stoppages relating to unionized employees
Our multi-employer pension fund funding obligations
Our ability to successfully integrate acquisitions and achieve financial and strategic goals;
Our vulnerability to cyber-attacks and threats
Our exposure to fluctuations in currency exchange rates
Liabilities relating to discontinued and prior operations
Compliance with the laws regarding storage, collection and handling personal data can expose us to legal claims for data breaches and penalties for improper handling.
You can find a detailed discussion on the risks and uncertainties that could affect our business or financial results at Item 1A of our most recent Annual Report on Form 10-K, filed with the SEC. Businesswire.com: URL