Pursuit Attractions & Hospitality, Inc. Q1 FY2025 earnings call

• Strong Q1 Performance: Delivered solid financial performance in Q1, with meaningful progress in integrating recent tuck-in acquisitions. Reaffirmed full-year guidance for double-digit growth in revenue and adjusted EBITDA.
• Business Description: Delivers authentic experiences in iconic destinations with 15 world-class point-of-interest sightseeing attractions and 28 distinctive lodges. Has 4,000 dedicated team members, and seasonal hiring is on track for summer.
• Acquisition Integration: Three recent tuck-in acquisitions in Glacier Park and Jasper are integrating smoothly. The Jasper SkyTram is a strategic fit, and reimagining opportunities are in progress.
• Refresh, Build, Buy Strategy: Plan to invest $38 million to $43 million in growth projects in 2025, including the transformational refresh of the Woodland Wing at the Forest Park Hotel in Jasper. Pipeline for acquisition expansion remains robust with strategically aligned opportunities.

Attractions Performance

• Attraction ticket revenue reached $19 million in Q1, a 6% year-over-year increase. This was driven by higher effective ticket prices and increased visitors, with the successful launch of FlyOver Chicago in Q1 2024 contributing to growth. Same-store constant currency effective ticket pricing (excluding FlyOver Chicago) grew 10% due to the expansion of the premium ritual experience at Sky Lagoon.

Hospitality Performance

• Lodging room revenue totaled $7.3 million, a $300,000 decrease year over year. This was mainly due to fewer available rooms at the Forest Park Hotel's Woodland Wing due to renovations and unfavorable FX impact. However, same-store constant currency RevPAR (excluding the Woodland Wing and recently acquired Apgar Lookout Retreat) grew 9% as higher ADRs and strong occupancy levels were maintained. Revenue contribution %: Attractions likely contributed a significant portion, with hospitality also being a key segment.

• Reaffirmed full-year guidance for double-digit growth in both revenue and adjusted EBITDA.
• Adjusted EBITDA guidance range is $98 million to $108 million, representing an increase of $21 million to $31 million over 2024. Based on first quarter performance and positive forward indicators.

• Foreign exchange rate variances could impact financial results. For example, unfavorable FX rates affected revenue and EBITDA.
• Challenges in certain markets like Vegas with ongoing efforts to drive visitation remain a risk.

Q: On the travel trade business, what percentage is rooms revenue on the books from travel trade and expectations for the mix through peak season?

A: Right around 45%, and it fluctuates, with strong demand for destinations like Jasper, Banff, etc., and good demand from around the world.

Q: Thoughts on currency impact, especially on Jasper, and sensitivity?

A: US inbound remains strong, Canada is advantageously priced. FX rates can impact results, with a prior year $7 million headwind at the 69¢ rate, and recent rates around 72¢ being noted.

Q: Performance of FlyOver locations, including Vegas?

A: Vancouver performing on track, Chicago entering second year with positive outlook, Iceland visitation as expected, but Vegas remains challenging.

Q: Commentary on M&A pipeline and capital spends adjustment?

A: Pipeline remains robust with strategic aligned opportunities in current and new locations. Capital spends can be adjusted based on acquisition pace, with the team working on accelerating beneficial opportunities and keeping contacts warm during transformation.