Pursuit Attractions and Hospitality, Inc. (PRSU) Q1 2025 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The earnings call presents mixed signals: while there's optimism in revenue growth and EBITDA guidance, financial performance shows a net loss and declining adjusted EBITDA due to inflation and seasonal losses. The Q&A reveals strong demand and positive sentiment for attractions, but concerns remain about competitive pressures, regulatory changes, and currency impacts. Lack of shareholder return announcements and management's avoidance of specific currency impact answers further temper enthusiasm. Overall, these factors suggest a neutral sentiment, with potential for modest fluctuations in stock price.

Key Financial Performance

Revenue $37.6 million, up approximately 1% year-over-year; growth driven primarily by an increase in ticket revenue, largely offset by unfavorable foreign exchange rate variances.

Net Loss $31.1 million, compared to $25.1 million in the prior year; change driven by the discontinued operations treatment of GES' results in 2024.

Adjusted Net Loss $26.9 million, compared to $25.4 million in the prior year; change reflects lower adjusted EBITDA, partially offset by lower interest expense.

Adjusted EBITDA Negative $17.5 million, a decline of $2.9 million year-over-year; primarily due to inflationary cost increases and seasonal operating losses from new businesses.

Attraction Ticket Revenue $19 million, reflecting a 6% year-over-year increase; driven by higher effective ticket prices and increased visitors, notably from the launch of Flyover Chicago.

Lodging Room Revenue $7.3 million, a decrease of $300,000 compared to 2024; primarily due to fewer rooms available at the Forest Park Hotel's Woodland Wing due to renovations.

Same-store RevPAR Grew 9% year-over-year, excluding the Forest Park Hotel's Woodland Wing and the recently acquired Apgar Lookout Retreat; driven by higher ADRs and strong occupancy levels.

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Operating Highlights

Attraction Ticket Revenue: Attraction ticket revenue reached $19 million, reflecting a 6% year-over-year increase driven by higher effective ticket prices and increased visitors.

Flyover Chicago Attraction: The successful launch of our Flyover Chicago attraction in the first quarter of 2024 significantly contributed to the growth in revenue and visitors.

Sky Lagoon Premium Experience: The expansion of the premium ritual experience at our Sky Lagoon attraction, completed in August 2024, fueled a 10% increase in same-store, constant currency effective ticket pricing.

Room Booking Pacing: U.S. lodging properties are pacing approximately 10% ahead of the same time last year, and Canadian properties are up approximately 2% year-over-year.

2025 Revenue Guidance: Reaffirming 2025 guidance for double-digit growth in full-year revenue and adjusted EBITDA.

Seasonal Hiring: Seasonal hiring efforts are on track for being well-staffed heading into the busy summer season.

Renovations at Forest Park Hotel: Renovations are currently underway on approximately half of the property's rooms, expected to reopen in June.

Refresh, Build, Buy Strategy: Identified more than $200 million of Refresh and Build investments to be executed over the next five years.

Acquisition Pipeline: The acquisition pipeline remains robust with strategically aligned opportunities in current and new geographies.

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Risk or Challenges

Competitive Pressures: Pursuit faces competitive pressures in the attractions and hospitality sector, which may impact market share and pricing strategies.

Regulatory Issues: Potential regulatory changes in tourism and hospitality could affect operational compliance and costs.

Supply Chain Challenges: The company may encounter supply chain challenges that could impact the availability of resources and materials necessary for operations and renovations.

Economic Factors: Economic fluctuations, including inflationary pressures, could affect consumer spending on leisure activities and travel, impacting revenue.

Foreign Exchange Risks: Unfavorable foreign exchange rates have already impacted revenue, particularly in translating Canadian results into U.S. dollars, which could continue to affect financial performance.

Seasonal Operating Losses: Seasonal operating losses from new businesses may pose risks to overall profitability, particularly during slower quarters.

Investment Risks: Investments in Refresh and Build strategies carry risks related to execution and market reception, which could affect expected returns.

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Guidance & Outlook

Refresh, Build, Buy Strategy: Pursuit's strategy focuses on improving existing assets (Refresh), creating new experiences (Build), and acquiring unique businesses (Buy) to enhance hospitality and financial performance.

Recent Acquisitions: Pursuit has integrated three recent acquisitions in Glacier Park and Jasper, enhancing operational synergies and guest experiences.

Investment Plans: Pursuit plans to invest between $38 million and $43 million in growth projects in 2025, including renovations at the Forest Park Hotel.

Growth Opportunities: Pursuit has identified over $200 million in Refresh and Build investments to be executed over the next five years.

2025 Revenue Growth: Pursuit expects double-digit growth in full-year revenue and adjusted EBITDA for 2025.

Adjusted EBITDA Guidance: The adjusted EBITDA guidance range for 2025 is $98 million to $108 million, representing an increase of $21 million to $31 million over 2024.

Room Revenue Pacing: U.S. lodging properties are pacing approximately 10% ahead of the same time last year, with Canadian properties up approximately 2% year-over-year.

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Shareholder Return Plan

Shareholder Return Plan: Pursuit Attractions and Hospitality, Inc. has not announced any specific share buyback program or dividend program during the Q1 2025 earnings call. The focus remains on growth through acquisitions and investments in existing properties.

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Key Q&A

Q:What percentage of your room's revenue is from travel trade and what are your expectations for that mix as we move through the peak season?

A:Right around 45%, and it does fluctuate. So in certain times of the year, that percentage might be slightly higher. But if I round it out for the full year, it's right around 45% coming from travel trade.

Q:Are you expecting more local Canadian visitation than normal this year? How does the U.S. inbound look versus prior years?

A:U.S. inbound remains quite strong. Canada is priced very advantageously on a world scale, and that's really reacting to currency values. This year, we see strong demand from the U.S., Western Europe, Japan, and parts of Asia, and Canadians staying home.

Q:Is there a way to think about sensitivity if the currency moves one way or the other in terms of the translation impact in your results?

A:Not going to give a specific answer on that, but if you think about right now, rates are around $0.72. At the $0.69 rate, that was about a $7 million headwind year-over-year.

Q:How are things progressing at flyover Las Vegas and other locations?

A:Vancouver is performing on track, Chicago is positive, Iceland visitation is performing as expected, but Vegas continues to be challenging.

Q:Can you expand on the commentary regarding M&A and the pipeline?

A:I can't comment on things that we're working on or looking at around the world. We have a robust pipeline and are well positioned.

Q:Review of Unclear Management Responses

A:Management avoided giving a direct answer regarding the sensitivity of currency movements on results, stating they would not provide a specific answer on that.

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Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

PRSU Transcript

Pursuit Attractions and Hospitality, Inc. (PRSU) Q3 2025 Earnings Call Transcript

Positive11-6

The earnings call reveals strong financial performance, with significant revenue and EBITDA growth, driven by strategic acquisitions and organic investments. Positive guidance and expansion plans, including the Costa Rica acquisition, bolster future growth prospects. The Q&A session supports this with confidence in continued demand and strategic investments. The raised guidance and robust financial health, coupled with strategic growth initiatives, suggest a strong positive outlook for the stock price over the next two weeks.

Pursuit Attractions and Hospitality, Inc. (PRSU) Q2 2025 Earnings Call Transcript

Positive8-7

The earnings call reveals strong financial performance, with a 15% revenue increase and significant EBITDA growth. Positive factors include optimistic guidance for 2025, a strategic buyback program, and successful acquisitions. The Q&A reinforces confidence in the company's strategy and market positioning, despite some uncertainty regarding specific investments and buyback details. Overall, the positive aspects outweigh the negatives, suggesting a likely stock price increase.

Pursuit Attractions and Hospitality, Inc. (NYSE:PRSU) Q1 2025 Earnings Call Transcript

Unknown5-10

The earnings call summary presents a mixed picture. Basic financial performance shows a slight EPS improvement but remains negative, indicating potential instability. Product development and market strategy appear positive with strategic acquisitions and growth guidance reaffirmed. However, financial health concerns and lack of shareholder returns counterbalance this. Q&A insights reveal challenges in acquisition integration and currency impact, with management providing vague responses on some issues. Overall, the sentiment is neutral, as positive growth guidance and market positioning are offset by financial and operational risks.

Pursuit Attractions and Hospitality, Inc. (PRSU) Q1 2025 Earnings Call Transcript

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