8-K: Pursuit Attractions and Hospitality Reports Solid First Quarter 2025 Results, Reaffirms Full Year Guidance

Pursuit Attractions and Hospitality, Inc. reported a slight revenue increase and a larger net loss for the first quarter of 2025, but maintains a positive outlook for the full year with double-digit growth expected in revenue and adjusted EBITDA.

Summary

• Pursuit Attractions and Hospitality reported its first quarter 2025 results, showing a slight revenue increase of 0.9% to $37.6 million compared to $37.2 million in the same period last year.
• The net loss attributable to Pursuit increased to $31.1 million from $25.1 million year-over-year, primarily due to the discontinued operations treatment of GES results in 2024.
• Adjusted EBITDA was negative $17.5 million, a decrease of $2.9 million year-over-year, attributed to inflationary cost increases and seasonal operating losses from new businesses.
• The company reaffirmed its full year 2025 guidance, expecting adjusted EBITDA between $98 million and $108 million, a substantial increase from the $77.1 million reported in 2024.
• Pursuit anticipates investing $38 million to $43 million in growth capital expenditures in 2025, including the Refresh of the Forest Park Hotel's Woodland Wing.
• Total liquidity at the end of the first quarter was $212.1 million, including $22.8 million in cash and $189.3 million available on the revolving credit facility.
• Debt was reported at $78.9 million, with a net leverage ratio of less than 1x.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While the company reported a larger net loss and a decrease in adjusted EBITDA for the first quarter, it reaffirmed its full-year guidance and highlighted strong advance bookings and growth investments. The management's comments are optimistic, and the company's liquidity position remains strong.

Positives

• Pursuit reported a slight increase in revenue for the first quarter of 2025.
• The company reaffirmed its full-year 2025 adjusted EBITDA guidance, indicating confidence in future performance.
• Liquidity remains strong at $212.1 million.
• The company is investing in growth capital expenditures to improve guest experiences and expand operations.
• Attraction effective ticket price and lodging RevPAR metrics increased approximately 9% year-over-year on a same-store constant-currency basis.

Negatives

• The net loss attributable to Pursuit increased significantly in the first quarter of 2025.
• Adjusted EBITDA decreased year-over-year due to inflationary cost increases and seasonal operating losses from new businesses.
• Foreign exchange rates present a translation headwind of approximately $7 million to Adjusted EBITDA compared to 2024 exchange rates.

Risks

• The company faces general economic and geopolitical uncertainty that could impact travel and consumer behavior.
• Seasonality of the business could affect financial results.
• The company is exposed to currency exchange rate fluctuations.
• The company's performance is subject to risks related to natural disasters, weather conditions, and accidents.
• The company's performance is subject to risks related to labor shortages and higher labor costs.

Future Outlook

For the full year 2025, Pursuit expects adjusted EBITDA of approximately $98 million to $108 million, representing substantial growth of approximately $21 million to $31 million relative to 2024. Revenue is expected to be up low-double digits vs. 2024.

Management Comments

• David Barry, Pursuit's President and Chief Executive Officer, commented, 'We delivered solid performance during the seasonally slower first quarter, achieving approximately 9% increases year-over-year in both our attraction effective ticket price and lodging RevPAR metrics on a same-store constant-currency basis.'
• Barry continued, 'Across Pursuit, our team is preparing to welcome guests and deliver exceptional guest experiences during a strong peak summer season.'

Industry Context

Pursuit operates in the attractions and hospitality industry, focusing on unique experiences in iconic destinations. The company's performance is influenced by travel trends, consumer preferences, and economic conditions. The company's focus on experiential travel aligns with current industry trends.

Comparison to Industry Standards

• Comparing Pursuit's performance to industry peers is challenging without specific competitor data in this release.
• However, companies like Vail Resorts (MTN) and SeaWorld Entertainment (SEAS) also operate in the attractions and hospitality sector.
• Vail Resorts, for example, focuses on ski resorts and mountain experiences, while SeaWorld operates theme parks.
• Pursuit's focus on unique, destination-based experiences differentiates it from more traditional theme park operators.
• The company's adjusted EBITDA margin of -46.5% in Q1 2025 is lower than the industry average, but this is attributed to seasonality and investments in new businesses.
• The company's expectation of Adjusted EBITDA of $98 to $108 million for the full year 2025 is a key indicator of future performance.

Stakeholder Impact

• Shareholders may be concerned about the increased net loss in the first quarter.
• Employees are expected to deliver exceptional guest experiences during the peak summer season.
• Customers can anticipate improved guest experiences due to ongoing investments in attractions and hospitality properties.
• Suppliers may benefit from the company's continued growth and capital expenditures.

Next Steps

• Management will host a conference call on May 8, 2025, to review the first quarter results.
• The company will continue to integrate recent acquisitions and prepare for the peak summer season.
• Pursuit will continue to invest in growth capital expenditures, including the Refresh of the Forest Park Hotel's Woodland Wing.

Key Dates

Keywords

Adjusted EBITDA, Revenue, Hospitality, Attractions, Pursuit, Financial Results