8-K: Pursuit Attractions and Hospitality Reports Strong 2024 Results, Guides for Double-Digit Growth in 2025

Pursuit Attractions and Hospitality reports solid fourth quarter and full year 2024 performance, driven by the sale of GES and strategic growth investments, and provides guidance for strong growth in 2025.

Summary

• Pursuit Attractions and Hospitality reported their 2024 fourth quarter and full year results on March 11, 2025.
• The company completed the sale of its GES business to Truelink Capital for $535 million on December 31, 2024, and relaunched as a pure-play attractions and hospitality company.
• Full year revenue increased by 4.6% to $366.5 million, while net income attributable to Pursuit increased significantly to $368.5 million due to the GES sale.
• Consolidated Adjusted EBITDA decreased slightly to $77.1 million, impacted by the Jasper wildfire.
• For 2025, the company expects double-digit year-over-year revenue and adjusted EBITDA growth, with Adjusted EBITDA projected to be between $98 million and $108 million.

Sentiment

Score: 8

Explanation: The document presents a positive outlook for the company, highlighting strong financial results, strategic growth initiatives, and a strengthened balance sheet. While there are some challenges, the overall tone is optimistic and forward-looking.

Positives

• The sale of GES significantly strengthened the balance sheet, eliminating high-cost debt and providing substantial liquidity.
• The company is guiding for strong growth in 2025, with double-digit increases expected in both revenue and Adjusted EBITDA.
• Strategic acquisitions and growth investments are expected to contribute to future growth.
• The company has a new undrawn $200 million revolving credit facility, providing additional financial flexibility.
• The company completed three strategic tuck-in acquisitions for approximately $34 million.
• The company invested approximately $20 million in refresh and build growth capital expenditures in 2024.
• The company expects to invest approximately $38 million to $43 million in growth capital expenditures in 2025.
• The repayment of the Term Loan B is expected to yield annual interest savings of approximately $30 million.
• The final quarterly dividend of approximately $2 million on the preferred stock was paid on December 31, 2024, yielding annual cash savings of approximately $8 million.

Negatives

• Consolidated Adjusted EBITDA decreased by 2.3% year-over-year, primarily due to the impact of the Jasper wildfire.
• Net loss from continuing operations attributable to Pursuit of $57.1 million included non-cash impairment charges of $47.6 million and restructuring charges of $3.2 million.
• Adjusted net income declined $10.5 million year-over-year primarily due to higher interest and depreciation expenses.
• The fourth quarter included a $27.5 million asset write-down related to Flyover Las Vegas and a $14.0 million goodwill write-off related to the Flyover Collection.

Risks

• The company's forward-looking statements are subject to various risks and uncertainties, including economic uncertainty, seasonality, competition, travel industry disruptions, and natural disasters.
• The Jasper wildfire had a negative impact on revenue and Adjusted EBITDA in 2024.
• Currency exchange rate fluctuations could impact financial results.
• The company's ability to successfully integrate acquisitions and achieve financial and strategic goals is subject to risk.

Future Outlook

For 2025, Pursuit expects double-digit year-over-year revenue and adjusted EBITDA growth, with Adjusted EBITDA projected to be between $98 million and $108 million.

Management Comments

• David Barry, Pursuits President and Chief Executive Officer, commented, 2024 was a pivotal year for Pursuit, as we delivered strong operational and financial results and took actions to position the Company for long-term success.
• Barry continued, This is an exciting time for our company, team members, and shareholders.

Industry Context

The announcement highlights Pursuit's strategic shift to focus on attractions and hospitality, aligning with the growing demand for experiential travel. The company's investments in iconic destinations and unique experiences position it well to capitalize on this trend.

Comparison to Industry Standards

• Comparing Pursuit's Adjusted EBITDA margin of 21.0% for 2024 to industry peers such as SeaWorld Entertainment (SEAS) and Six Flags Entertainment (SIX), which typically have margins in the 30-40% range, indicates room for improvement.
• However, Pursuit's focus on unique, location-based experiences in national parks and renowned global travel locations differentiates it from traditional theme park operators.
• The company's growth strategy of 'Refresh, Build, Buy' is similar to that employed by Vail Resorts (MTN), which focuses on enhancing existing properties, developing new attractions, and acquiring complementary businesses.
• The sale of GES for $535 million and subsequent debt reduction mirrors strategic moves by other companies to streamline operations and focus on core competencies.

Stakeholder Impact

• Shareholders can expect potential growth in revenue and Adjusted EBITDA.
• Employees may see opportunities for advancement as the company expands.
• Customers can anticipate improved guest experiences and new attractions.
• Suppliers may benefit from increased business as the company grows.

Next Steps

• The company plans to continue investing in refresh and build growth capital expenditures.
• The company will focus on delivering exceptional guest experiences and managing revenue and costs.
• The company will continue to execute its Refresh, Build, Buy growth strategy.

Key Dates