Pursuit Attractions and Hospitality, Inc. Q2 FY2025 earnings call

• David Barry highlighted strong 2025 second quarter results with double-digit growth in revenue, income from continuing operations, and adjusted EBITDA, driven by healthy demand for guest experiences. The Refresh, Build, Buy strategy is a growth engine. The recent Costa Rica acquisition of Tabacon Thermal Resort & Spa strengthens the global footprint.
• Michael Bo Heitz discussed Q2 financial highlights, including revenue of $116.7 million (+15% y-o-y), net income of $5.6 million, and adjusted EBITDA of $29.7 million (+~50% y-o-y). He also mentioned lodging room revenue growth and strong room booking pace for 2025.

Attractions: Q2 attraction ticket revenue was $53.2 million, up ~22% year-over-year. Same-store constant currency effective ticket pricing (excluding Jasper SkyTram) grew 11%. Lodging: Lodging room revenue totaled $26 million, up 6% year-over-year. Same-store constant currency RevPAR (excluding Forest Park Hotel's Woodland Wing and Apgar Lookout Retreat) grew 9%.

• Raised full-year adjusted EBITDA guidance to $108 million to $118 million, an increase of $10 million from prior guidance. The increase includes ~$7 million from revised exchange rate assumptions and ~$3 million from the Tabacon acquisition. This new range represents substantial growth relative to 2024, driven by strong demand, execution, leisure travel recovery to Jasper, and contributions from recent acquisitions.

Q: On guidance revision, split of FX and Tabacon contribution?

A: FX contributed ~$7M and Tabacon ~$3M, with operating trends in line with expectations on a constant currency basis.

Q: Capital allocation and share buyback?

A: Board approved a new share repurchase authorization for up to $50M if market undervalues, focus remains on Refresh, Build, Buy, with repurchases opportunistic and nuanced relative to other priorities.

Q: ETP growth in attractions?

A: Sky Lagoon's Turf House expansion drove strong ETP growth, with the expansion enabling a premium offering.

Q: Costa Rica acquisition details?

A: Tabacon fits criteria of iconic, perennial demand, barriers to entry, and has 570 acres with opportunities to accelerate attraction and hotel businesses, potential for near-term operational enhancements to drive adjusted EBITDA multiple down below 9x by year 3.

Q: Canada group travel and visitor sources?

A: Return to tour travel, strong performance from various markets including Japan, South Korea, with tours booking inventory throughout shoulder seasons.

Q: Margin expansion and attraction mix?

A: Attractions first, focus on flow-through, organic growth projects like Refresh investments and build opportunities, and acquisitions for scale and diversification.

Q: M&A appetite?

A: Balance between smaller tuck-ins and larger acquisitions, pro forma net leverage 1.5x, target net leverage 2.5-3.5x, with robust pipeline of opportunities in existing and new geographies