Viad Corp. narrows losses in fourth quarter

By Richard N. Velotta

Friday, Feb. 4, 2011 | 5:51 p.m.

Viad Corp., parent company of Las Vegas-based convention services contractor Global Experience Specialists, narrowed its losses in the fourth quarter and indicated that the meetings and convention industry will continue to rebound in 2011.

After showing a loss in 2009, the company turned a small profit in 2010.

Phoenix-based Viad reported a loss of $4.4 million, 22 cents a share, on revenue of $187 million for the quarter that ended Dec. 31. That compared with a loss of $14.5 million, 72 cents a share, on revenue of $170.2 million for the same quarter a year earlier. Analysts anticipated a loss of 14 cents a share.

For the year, Viad reported earnings of $443,000, 2 cents a share, on revenue of $844.8 million. In 2009, the company reported losses of $104.7 million, $5.25 a share, on revenue of $805.8 million.

“The exhibition and event industry began to improve during the second half of 2010 and, while visibility over future revenues remains somewhat challenging, we anticipate continued same-show growth in 2011,” said Paul Dykstra, chairman, president and CEO of Viad in a release accompanying the announcement of earnings.

“We expect the Marketing and Events Group to return to profitability as a result of continued industry growth, positive show rotation and the cost structure improvements we made during the past two years,” he said.

The company told analysts they expect same-show revenue would increase by mid-single-digit percentages in the United States in 2011. Quarterly show rotation, which compares sales for events that don’t meet every year or shows that shift quarters from year to year, will result in a positive revenue change for the company in the first quarter, but a negative change in the third quarter with no meaningful impact in the second and fourth quarters.

Steve Moster, who was named president of GES in November, said three Las Vegas shows serve as bellwethers for the industry and are a good indicator of what’s ahead for the local subsidiary.

“What we’ve seen so far is very positive,” he said. “We’re encouraged by the growth we’ve seen on the Vegas shows to date.”

One show, the International Consumer Electronics Show, not only showed increases in sales, it also drew 140,000 attendees.

Other shows that GES are watching closely are this month’s MAGIC Marketplace, a fashion industry show, and the construction equipment industry’s ConExpo-Con/Agg, North America’s largest trade show, which will land in Las Vegas in March.

“We’re really excited to have ConExpo-Con/Agg in Las Vegas at this time,” Moster said. “It really is a boost to the Las Vegas economy as well as a boost to our company.

Moster said planning for the show, which appears in Las Vegas every three years, began a year before the March 22-26 event. He anticipates a three-week move-in period for the show. The Las Vegas Convention and Visitors Authority estimates that the show will bring more than 140,000 people to the city.

“It’s really incredible to watch the building of a small city in three weeks,” Moster said of GES’ role.