SCOTTSDALE, AZ – Viad Corp (NYSE:VVI), a business services provider, disclosed the immediate departure of a board member in a recent regulatory filing with the Securities and Exchange Commission (SEC). On July 17, 2024, Crestview Partners IV GP, L.P., along with affiliated entities, informed Viad Corp's Board of Directors of their decision to remove Sung-Chul Patrick T. LaValley from the board.
The removal of Mr. LaValley, who was appointed under the terms of the Stockholders Agreement between Viad Corp and Crestview Partners, aligns with the provisions of the Certificate of Designations for the company’s 5.5% Series A Convertible Preferred Stock, which is held by the Crestview Parties. Crestview Partners is currently seeking a suitable replacement to fill the vacancy left by Mr. LaValley's departure.
The filing, dated July 22, 2024, did not provide specific reasons for the removal of Mr. LaValley from the board or details on potential candidates for the position. Viad Corp, headquartered in Scottsdale, Arizona, operates under the Services-Business Services, NEC [7389] industry classification and is incorporated in Delaware.
The information regarding this corporate governance change is based on the latest 8-K filing and reflects the company's ongoing compliance with SEC regulations and corporate governance standards. The market's reaction to this announcement and its impact on Viad Corp's operations or strategic direction remains to be observed.
In other recent news, Viad Corp has been making strategic moves, notably its acquisition of Jasper SkyTram for approximately $18 million. This popular tourist attraction in Jasper National Park is expected to contribute around $4 million in revenue in 2024. The deal, which is pending Parks Canada's approval, is set to finalize in July and aligns with Viad's business strategy of delivering extraordinary experiences and sustainable growth.
In financial developments, Viad Corp reported a 4.9% increase in first-quarter revenue, equating to an additional $12.7 million compared to the same period last year. The company's subsidiary, Pursuit, significantly contributed with a 14% increase in revenue. Viad Corp also announced a projected growth in adjusted EBITDA of 16% to 30% for the full year, with consolidated adjusted EBITDA expected to fall between $171 million and $191 million.
Despite the slow recovery of Chinese tourism, the company remains optimistic about its ability to attract visitors from other markets. Viad also disclosed a strong pipeline of investment opportunities for future growth. These recent developments reflect Viad's commitment to expansion and financial growth.
InvestingPro Insights
In light of the recent board member changes at Viad Corp, investors may find the following metrics and tips from InvestingPro insightful. Viad Corp currently has a market capitalization of $804.14 million and is trading at a high earnings multiple, with a P/E ratio of 404.89, which adjusts to 274.44 when looking at the last twelve months as of Q1 2024. While the company's revenue has shown modest growth of 3.36% over the last twelve months, its gross profit margin stands at a relatively low 8.44%, indicating potential challenges in maintaining profitability.
InvestingPro Tips suggest that net income is expected to grow this year, which is a positive sign for investors. Additionally, the fact that three analysts have revised their earnings upwards for the upcoming period could indicate a more favorable financial outlook for Viad Corp. It's worth noting, however, that the company does not pay a dividend to shareholders and that the stock price movements are quite volatile.
For those looking to delve deeper into Viad Corp's financials and future prospects, InvestingPro offers additional tips. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to even more valuable insights. There are currently 6 additional InvestingPro Tips available for Viad Corp, which can help investors make more informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.