EX-99.1 3 prsu-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

Pursuit Attractions and Hospitality, Inc. (formerly known as Viad Corp)

Unaudited Pro Forma Condensed Consolidated Financial Statements

On December 31, 2024 (the “Closing Date”), Pursuit Attractions and Hospitality, Inc. (formerly known as Viad Corp) (the “Company”) completed the previously announced sale of its GES business. As previously disclosed in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission (the “SEC”) on October 21, 2024, the Company entered into an Equity Purchase Agreement (the “Purchase Agreement”), dated October 20, 2024, with TL Voltron, LLC, a Delaware limited liability company (“Buyer”).

Subject to the terms and conditions of the Purchase Agreement, Buyer agreed to purchase, directly or indirectly through wholly-owned subsidiaries, as applicable, all of the outstanding equity interests held by the Company in its subsidiaries comprising the GES business (as defined in the Purchase Agreement) (such transaction, together with any other transactions contemplated by the Purchase Agreement, the “Transaction”). The aggregate purchase price for the Transaction was $535 million, consisting of a base purchase price of $510 million, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses, each as set forth in the Purchase Agreement (as so adjusted, the “Purchase Price”), and a deferred purchase price of $25 million payable by Buyer to the Company one year after the Closing Date.

The sale of the GES business constitutes a significant disposition for purposes of Item 2.01 of Form 8-K. The Company has also determined that the sale of the GES business has met the criteria under Accounting Standards Codification 205-20, Presentation of Financial Statements – Discontinued Operations (“ASC 205-20”) to be classified as a discontinued operation, as the sale represents a strategic shift that will have a significant effect on the Company’s operations and financial results. Accordingly, the Company will account for the GES business as a discontinued operation beginning in its Annual Report on Form 10-K for the year ended December 31, 2024. The Company’s estimates for discontinued operations, as presented below in the unaudited pro forma condensed consolidated financial information, are preliminary and actual results could differ from these estimates.

The unaudited pro forma condensed consolidated financial statements presented below have been prepared in accordance with Article 11 of Regulation S-X and were derived from the Company’s historical consolidated financial statements. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2024 reflects the Transaction as if it occurred on such date. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2024 and for each of the years ended December 31, 2023, 2022, and 2021 reflect the Transaction as if it occurred on January 1, 2023.

The unaudited pro forma condensed consolidated financial statements and the accompanying notes should be read in conjunction with:

•
The Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 1, 2024; and
•
The Company’s Quarterly Report on Form 10-Q for the nine months ended September 30, 2024, filed with the SEC on November 7, 2024.

The unaudited pro forma condensed consolidated balance sheet as of September 30, 2024 and the unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2024 and for the year ended December 31, 2023 reflect “Pro Forma Adjustments” that are incremental to those related to the sale of the GES business and discontinued operations presentation of the GES business, as discussed above. The Pro Forma Adjustments are described in the accompanying notes to the unaudited pro forma condensed consolidated financial statements.

The unaudited pro forma condensed consolidated financial information is provided for informational purposes only and does not purport to represent the Company’s actual financial condition or results of operations had the sale of the GES business occurred on the dates indicated, nor does it project the Company’s results of operations or financial condition for any future period or date. The Company has prepared the unaudited pro forma condensed consolidated financial information based on available information using certain assumptions that it believes are reasonable. As a result, the actual results reported by the Company in periods following the sale of the GES business may differ materially from this unaudited pro forma condensed consolidated financial information.

 

 

 

Pursuit Attractions and Hospitality, Inc. (formerly known as Viad Corp)

Pro Forma Condensed Consolidated Balance Sheet

(Unaudited)

As of September 30, 2024

(In thousands, except per share amounts)

 

 

 

 

Transaction Accounting Adjustments

 

 

 

 

Company Historical

 

Disposition Adjustments (Note 2a)

 

Additional Transaction Accounting Adjustments

 

Debt Adjustments

 

Pro Forma

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

64,552

 

$

 (27,262)

 

$

 92,292

2(b)

$

-

 

$

129,582

Accounts receivable, net

 

 168,635

 

 

(147,163)

 

 

  -

 

 

-

 

 

 21,472

Inventories

 

 11,246

 

 

(349)

 

 

 -

 

 

-

 

 

10,897

Current contract costs

 

28,909

 

 

 (28,909)

 

 

  -

 

 

-

 

 

 -

Prepaid insurance

 

6,303

 

 

 (62)

 

 

  -

 

 

-

 

 

 6,241

Other current assets

 

29,944

 

 

 (11,281)

 

 

 25,000

2(c)

 

-

 

 

 43,663

Total current assets

 

309,589

 

 

 (215,026)

 

 

 117,292

 

 

-

 

 

211,855

Property and equipment, net

 

588,864

 

 

(41,309)

 

 

 -

 

 

-

 

 

547,555

Other investments and assets

 

20,352

 

 

 (6,762)

 

 

 -

 

 

-

 

 

 13,590

Operating lease right-of-use assets

 

100,404

 

 

 (67,776)

 

 

 -

 

 

-

 

 

 32,628

Deferred income taxes

 

2,304

 

 

 (2,198)

 

 

 -

 

 

-

 

 

 106

Goodwill

 

121,905

 

 

  -

 

 

 -

 

 

-

 

 

121,905

Other intangible assets, net

 

52,410

 

 

 (280)

 

 

 -

 

 

-

 

 

 52,130

Total Assets

$

1,195,828

 

$

 (333,351)

 

$

117,292

 

$

-

 

$

979,769

Liabilities, Mezzanine Equity, and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

120,355

 

$

 (100,671)

 

$

 -

 

$

-

 

$

19,684

Contract liabilities

 

67,721

 

 

 (57,720)

 

 

 -

 

 

-

 

 

 10,001

Accrued compensation

 

40,249

 

 

 (30,920)

 

 

 -

 

 

-

 

 

 9,329

Operating lease obligations

 

17,807

 

 

 (15,230)

 

 

 -

 

 

-

 

 

 2,577

Other current liabilities

 

53,213

 

 

 (29,861)

 

 

(1,649)

2(d)

 

-

 

 

 21,703

Current portion of debt and finance

   obligations

 

 

8,314

 

 

 

 (1,674)

 

 

 

(4,000)

 

2(e)

 

 

-

 

 

 

 2,640

Total current liabilities

 

307,659

 

 

 (236,076)

 

 

(5,649)

 

 

-

 

 

65,934

Long-term debt and finance obligations

 

381,887

 

 

 (2,254)

 

 

(308,048)

2(f)

 

1,927

2(h)

 

73,512

Pension and postretirement benefits

 

15,859

 

 

 (559)

 

 

 -

 

 

-

 

 

 15,300

Long-term operating lease obligations

 

96,502

 

 

(59,602)

 

 

 -

 

 

-

 

 

36,900

Other deferred items and liabilities

 

67,265

 

 

(19,517)

 

 

 -

 

 

-

 

 

 47,748

Total liabilities

 

869,172

 

 

(318,008)

 

 

(313,697)

 

 

1,927

 

 

 239,394

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Series A preferred stock

 

132,591

 

 

 -

 

 

 -

 

 

-

 

 

132,591

Redeemable noncontrolling interest

 

4,382

 

 

 -

 

 

 -

 

 

-

 

 

 4,382

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

37,402

 

 

 -

 

 

 -

 

 

-

 

 

 37,402

Additional capital

 

572,219

 

 

 -

 

 

 -

 

 

-

 

 

 572,219

Accumulated earnings (deficit)

 

(280,017)

 

 

(15,343)

 

 

430,989

2(g)

 

(1,927)

2(h)

 

 133,702

Accumulated other comprehensive loss

 

(46,551)

 

 

 -

 

 

 -

 

 

-

 

 

 (46,551)

Common stock in treasury, at cost,

   3,745,837 shares

 

 

(186,288)

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(186,288)

Total Company stockholders' equity

 

96,765

 

 

(15,343)

 

 

430,989

 

 

(1,927)

 

 

 510,484

Non-redeemable noncontrolling interest

 

92,918

 

 

 -

 

 

 -

 

 

-

 

 

92,918

Total stockholders’ equity

 

189,683

 

 

(15,343)

 

 

430,989

 

 

(1,927)

 

 

603,402

Total Liabilities, Mezzanine Equity, and

   Stockholders' Equity

 

$

 

1,195,828

 

 

$

 

(333,351)

 

 

$

 

117,292

 

 

$

 

-

 

 

$

 

979,769

 

See notes to unaudited pro forma condensed consolidated financial statements.

2

 

 

Pursuit Attractions and Hospitality, Inc. (formerly known as Viad Corp)

Pro Forma Condensed Consolidated Statements of Operations

(Unaudited)

For the Nine Months Ended September 30, 2024

(In thousands, except per share amounts)

 

 

 

 

Transaction Accounting Adjustments

 

 

 

 

 

Company Historical

 

Disposition Adjustments

(Note 3a)

 

Additional Transaction Accounting Adjustments

 

Debt Adjustments

 

Pro Forma

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

$

 912,126

 

$

 (674,105)

 

$

-

 

$

 -

 

$

238,021

 

Products

 

 195,613

 

 

(112,946)

 

 

-

 

 

 -

 

 

      82,667

 

Total revenue

 

 1,107,739

 

 

 (787,051)

 

 

-

 

 

 -

 

 

320,688

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of services

 

 798,666

 

 

(612,705)

 

 

-

 

 

-

 

 

185,961

 

Costs of products

 

 171,529

 

 

 (99,095)

 

 

-

 

 

 -

 

 

72,434

 

Corporate activities

 

 17,612

 

 

 -

 

 

-

 

 

 -

 

 

17,612

 

Interest expense, net

 

 35,858

 

 

 (25,548)

 

 

-

 

 

 (4,822)

3(c)

 

5,488

 

Other expense, net

 

 1,287

 

 

 (414)

 

 

(2,084)

3(b)

 

 -

 

 

(1,211)

 

Restructuring charges

 

 (326)

 

 

 326

 

 

-

 

 

 -

 

 

-

 

Impairment charges

 

 6,110

 

 

-

 

 

-

 

 

 -

 

 

6,110

 

Total costs and expenses

 

1,030,736

 

 

 (737,436)

 

 

(2,084)

 

 

(4,822)

 

 

286,394

 

Income (loss) from continuing operations

 before income taxes

 

 

 77,003

 

 

 

(49,615)

 

 

 

2,084

 

 

 

4,822

 

 

 

34,294

 

Income tax expense (benefit)

 

 17,247

 

 

(5,624)

 

 

-

 

 

 -

 

 

11,623

 

Income (loss) from continuing operations

 

 59,756

 

 

 (43,991)

 

 

2,084

 

 

4,822

 

 

22,671

 

Income from discontinued operations

 

 743

 

 

 -

 

 

-

 

 

-

 

 

743

 

Net income (loss)

 

 60,499

 

 

 (43,991)

 

 

2,084

 

 

4,822

 

 

23,414

 

Net income attributable to non-redeemable

 noncontrolling interest

 

 

 (8,062)

 

 

 

 -

 

 

 

-

 

 

 

-

 

 

 

(8,062)

 

Net loss attributable to redeemable

 noncontrolling interest

 

 

 372

 

 

 

 -

 

 

 

-

 

 

 

 -

 

 

 

372

 

Net income (loss) attributable to Company

$

 52,809

 

$

 (43,991)

 

$

2,084

 

$

 4,822

 

$

15,724

 

Less: Allocation to participating securities

 

(11,282)

 

 

 

 

 

 

 

 

 

 

 

(2,372)

 

Convertible preferred stock dividends paid

   in cash

 

 

(5,850)

 

 

 

 

 

 

 

 

 

 

 

 

(5,850)

 

Convertible preferred stock dividends paid

 in kind

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 -

 

Adjustment to the redemption value of

   redeemable noncontrolling interest

 

  -

 

 

 

 

 

 

 

 

 

 

 

 -

 

Net income allocated to Company

   common stockholders (basic)

 

$

 

 35,677

 

 

 

 

 

 

 

 

 

 

 

$

 

7,502

 

Add: Allocation to participating securities

 

 165

 

 

 

 

 

 

 

 

 

 

 

34

 

Net income allocated to Company

   common stockholders (diluted)

 

$

 

35,842

 

 

 

 

 

 

 

 

 

 

 

$

 

7,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company’s net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic per share

$

1.69

 

 

 

 

 

 

 

 

 

 

$

0.36

3(d)

   Diluted per share

$

1.67

 

 

 

 

 

 

 

 

 

 

$

0.35

3(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares used in per share computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 21,107

 

 

 

 

 

 

 

 

 

 

 

21,107

3(d)

   Diluted

 

21,517

 

 

 

 

 

 

 

 

 

 

 

21,517

3(d)

 

See notes to unaudited pro forma condensed consolidated financial statements.

3

 

 

Pursuit Attractions and Hospitality, Inc. (formerly known as Viad Corp)

Pro Forma Condensed Consolidated Statements of Operations

(Unaudited)

For the Year Ended December 31, 2023

(In thousands, except per share amounts)

 

 

 

 

Transaction Accounting Adjustments

 

 

 

 

 

Company

 Historical

 

Disposition Adjustments

(Note 3a)

 

Additional Transaction Accounting Adjustments

 

Debt Adjustments

 

Pro Forma

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

$

 1,006,226

 

$

 (747,560)

 

$

-

 

$

-

 

$

258,666

 

Products

 

 232,454

 

 

 (140,833)

 

 

-

 

 

-

 

 

91,621

 

Total revenue

 

1,238,680

 

 

(888,393)

 

 

-

 

 

-

 

 

350,287

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of services

 

 919,966

 

 

(702,960)

 

 

-

 

 

-

 

 

217,006

 

Costs of products

 

 210,212

 

 

(125,754)

 

 

-

 

 

-

 

 

84,458

 

Corporate activities

 

 14,040

 

 

-

 

 

-

 

 

-

 

 

14,040

 

Gain on sale of ON Services

 

 204

 

 

(204)

 

 

-

 

 

-

 

 

-

 

Interest expense, net

 

47,978

 

 

(42,016)

 

 

-

 

 

(1,655)

3(c)

 

4,307

 

Other expense, net

 

2,033

 

 

(689)

 

 

(3,056)

3(b)

 

-

 

 

(1,712)

 

Restructuring charges

 

1,174

 

 

(975)

 

 

-

 

 

-

 

 

199

 

Total costs and expenses

 

1,195,607

 

 

(872,598)

 

 

(3,056)

 

 

(1,655)

 

 

318,298

 

Income (loss) from continuing operations

   before income taxes

 

 

43,073

 

 

 

(15,795)

 

 

 

3,056

 

 

 

 1,655

 

 

 

31,989

 

Income tax expense (benefit)

 

18,799

 

 

(5,871)

 

 

-

 

 

-

 

 

12,928

 

Income (loss) from continuing operations

 

 24,274

 

 

(9,924)

 

 

3,056

 

 

1,655

 

 

19,061

 

Loss from discontinued operations

 

 (822)

 

 

-

 

 

-

 

 

-

 

 

(822)

 

Net income (loss)

 

23,452

 

 

(9,924)

 

 

3,056

 

 

1,655

 

 

18,239

 

Net income attributable to non-redeemable

   noncontrolling interest

 

 

(7,836)

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

(7,836)

 

Net loss attributable to redeemable

   noncontrolling interest

 

 

401

 

 

 

 -

 

 

 

 -

 

 

 

-

 

 

 

401

 

Net income (loss) attributable to Company

$

16,017

 

$

(9,924)

 

$

3,056

 

$

1,655

 

$

10,804

 

Less: Allocation to participating securities

 

 (1,993)

 

 

 

 

 

 

 

 

 

 

 

(728)

 

Convertible preferred stock dividends paid

   in cash

 

 

 (7,801)

 

 

 

 

 

 

 

 

 

 

 

 

(7,801)

 

Convertible preferred stock dividends paid

   in kind

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Adjustment to the redemption value of

   redeemable noncontrolling interest

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Net income allocated to Company

   common stockholders (basic)

 

$

 

 6,223

 

 

 

 

 

 

 

 

 

 

 

$

 

2,275

 

Add: Allocation to participating securities

 

 18

 

 

 

 

 

 

 

 

 

 

 

              6

 

Net income allocated to Company

   common stockholders (diluted)

 

$

 

 6,241

 

 

 

 

 

 

 

 

 

 

 

$

 

2,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company’s net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic per share

$

 0.30

 

 

 

 

 

 

 

 

 

 

$

0.11

3(d)

   Diluted per share

$

 0.30

 

 

 

 

 

 

 

 

 

 

$

0.11

3(d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares used in per share computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

20,855

 

 

 

 

 

 

 

 

 

 

 

20,855

3(d)

   Diluted

 

 21,097

 

 

 

 

 

 

 

 

 

 

 

21,097

3(d)

 

See notes to unaudited pro forma condensed consolidated financial statements.

4

 

 

Pursuit Attractions and Hospitality, Inc. (formerly known as Viad Corp)

Pro Forma Condensed Consolidated Statements of Operations

(Unaudited)

For the Year Ended December 31, 2022

(In thousands, except per share amounts)

 

Company

Historical

 

Disposition Adjustments

(Note 3a)

 

Pro Forma

 

Revenue:

 

 

 

 

 

 

 

 

 

Services

$

912,040

 

$

(693,481)

 

$

218,559

 

Products

 

215,271

 

 

(134,502)

 

 

80,769

 

Total revenue

 

1,127,311

 

 

(827,983)

 

 

299,328

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Costs of services

 

857,760

 

 

(654,650)

 

 

203,110

 

Costs of products

 

200,540

 

 

(123,676)

 

 

76,864

 

Corporate activities

 

13,418

 

 

  -

 

 

13,418

 

Gain on sale of ON Services

 

(19,637)

 

 

19,637

 

 

  -

 

Interest expense, net

 

34,891

 

 

(30,826)

 

 

4,065

 

Other expense, net

 

  2,077

 

 

(788)

 

 

1,289

 

Restructuring charges

 

  3,059

 

 

(2,975)

 

 

  84

 

Impairment charges

 

  583

 

 

(583)

 

 

  -

 

Total costs and expenses

 

1,092,691

 

 

(793,861)

 

 

298,830

 

Income (loss) from continuing operations before income taxes

 

34,620

 

 

(34,122)

 

 

498

 

Income tax expense (benefit)

 

  9,973

 

 

(4,259)

 

 

5,714

 

Income (loss) from continuing operations

 

24,647

 

 

(29,863)

 

 

(5,216)

 

Income from discontinued operations

 

  148

 

 

  -

 

 

148

 

Net income (loss)

 

24,795

 

 

 (29,863)

 

 

(5,068)

 

Net income attributable to non-redeemable noncontrolling interest

 

(2,323)

 

 

  -

 

 

(2,323)

 

Net loss attributable to redeemable noncontrolling interest

 

  748

 

 

  -

 

 

748

 

Net income (loss) attributable to Company

$

23,220

 

$

(29,863)

 

$

(6,643)

 

Less: Allocation to participating securities

 

(3,600)

 

 

 

 

 

-

 

Convertible preferred stock dividends paid in cash

 

(7,801)

 

 

 

 

 

(7,801)

 

Convertible preferred stock dividends paid in kind

 

  -

 

 

 

 

 

  -

 

Adjustment to the redemption value of redeemable noncontrolling interest

 

  (763)

 

 

 

 

 

(763)

 

Net income (loss) allocated to Company common stockholders (basic)

$

11,056

 

 

 

 

$

(15,207)

 

Add: Allocation to participating securities

 

  30

 

 

 

 

 

  -

 

Net income (loss) allocated to Company common stockholders (diluted)

$

 11,086

 

 

 

 

$

(15,207)

 

 

 

 

 

 

 

 

 

 

 

Company’s net income (loss) per share:

 

 

 

 

 

 

 

 

 

   Basic per share

$

 0.54

 

 

 

 

$

 (0.74)

3(d)

   Diluted per share

$

 0.53

 

 

 

 

$

 (0.74)

3(d)

 

 

 

 

 

 

 

 

 

 

Number of shares used in per share computation:

 

 

 

 

 

 

 

 

 

   Basic

 

20,589

 

 

 

 

 

 20,589

3(d)

   Diluted

 

20,812

 

 

 

 

 

20,589

3(d)

See notes to unaudited pro forma condensed consolidated financial statements.

 

5

 

 

Pursuit Attractions and Hospitality, Inc. (formerly known as Viad Corp)

Pro Forma Condensed Consolidated Statements of Operations

(Unaudited)

For the Year Ended December 31, 2021

(In thousands, except per share amounts)

 

Company

Historical

 

Disposition Adjustments

(Note 3a)

 

Pro Forma

 

Revenue:

 

 

 

 

 

 

 

 

 

Services

$

 401,142

 

$

 (268,221)

 

$

 132,921

 

Products

 

106,198

 

 

 (52,074)

 

 

54,124

 

Total revenue

 

 507,340

 

 

 (320,295)

 

 

 187,045

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Costs of services

 

 440,383

 

 

(305,523)

 

 

134,860

 

Costs of products

 

113,889

 

 

(62,268)

 

 

 51,621

 

Corporate activities

 

 11,689

 

 

  -

 

 

11,689

 

Interest expense, net

 

28,324

 

 

(13,877)

 

 

 14,447

 

Other expense, net

 

  2,070

 

 

 (806)

 

 

1,264

 

Restructuring charges

 

  6,066

 

 

(5,936)

 

 

 130

 

Total costs and expenses

 

602,421

 

 

(388,410)

 

 

214,011

 

Income (loss) from continuing operations before income taxes

 

(95,081)

 

 

68,115

 

 

(26,966)

 

Income tax expense (benefit)

 

(1,788)

 

 

427

 

 

(1,361)

 

Income (loss) from continuing operations

 

 (93,293)

 

 

 67,688

 

 

 (25,605)

 

Income from discontinued operations

 

  558

 

 

  -

 

 

 558

 

Net income (loss)

 

(92,735)

 

 

67,688

 

 

(25,047)

 

Net income attributable to non-redeemable noncontrolling interest

 

(1,686)

 

 

  -

 

 

(1,686)

 

Net loss attributable to redeemable noncontrolling interest

 

  1,766

 

 

  -

 

 

1,766

 

Net income (loss) attributable to Company

$

(92,655)

 

$

67,688

 

$

(24,967)

 

Less: Allocation to participating securities

 

  -

 

 

 

 

 

                  -

 

Convertible preferred stock dividends paid in cash

 

(3,900)

 

 

 

 

 

(3,900)

 

Convertible preferred stock dividends paid in kind

 

(3,821)

 

 

 

 

 

 (3,821)

 

Adjustment to the redemption value of redeemable noncontrolling interest

 

 (1,797)

 

 

 

 

 

(1,797)

 

Net loss allocated to Company common stockholders (basic)

$

(102,173)

 

 

 

 

$

(34,485)

 

Add: Allocation to participating securities

 

  -

 

 

 

 

 

  -

 

Net loss allocated to Company common stockholders (diluted)

$

(102,173)

 

 

 

 

$

(34,485)

 

 

 

 

 

 

 

 

 

 

 

Company’s net loss per share:

 

 

 

 

 

 

 

 

 

   Basic per share

$

 (5.01)

 

 

 

 

$

 (1.69)

3(d)

   Diluted per share

$

 (5.01)

 

 

 

 

$

 (1.69)

3(d)

 

 

 

 

 

 

 

 

 

 

Number of shares used in per share computation:

 

 

 

 

 

 

 

 

 

   Basic

 

20,411

 

 

 

 

 

20,411

3(d)

   Diluted

 

20,411

 

 

 

 

 

 20,411

3(d)

 

 

See notes to unaudited pro forma condensed consolidated financial statements.

6

 

 

Pursuit Attractions and Hospitality, Inc. (formerly known as Viad Corp)

Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

1.
Basis of Pro Forma Presentation

The unaudited pro forma condensed consolidated financial statements have been prepared in accordance with Article 11 of Regulation S-X, Pro Forma Financial Information.

In accordance with ASC 205-20, discontinued operations represent the elimination of assets, liabilities, shareholders’ equity, and results of operations attributable to the GES business, which were included in the Company’s historical consolidated financial statements (“Company Historical”). Adjustments do not include general corporate overhead costs previously allocated to the GES business, which will continue to be recognized on an ongoing basis. Such allocations include labor and non-labor expense related to the Company’s corporate support functions that previously provided support to the GES business including finance, accounting, tax, treasury, information technology, human resources, and legal. Adjustments include direct operating expenses incurred that are identifiable as costs of the GES business and will not continue to be recognized on an ongoing basis.

In connection with the Transaction, the Company terminated its existing $500 million credit agreement (the “2021 Credit Agreement”), which provided for a $400 million term loan (the “Term Loan B”) and $100 million revolving credit facility (the “Revolver”). Under the terms of the 2021 Credit Agreement, the Company was required to repay amounts outstanding under Term Loan B upon close of the Transaction. Accordingly, direct expenses of the GES business reflects historical interest expense incurred for amounts outstanding under Term Loan B. The Company elected to allocate interest expense associated with the Revolver to the GES business based on the relative net assets of the GES business compared to the historical Company net assets.

No pro forma tax adjustments are reflected in the unaudited pro forma condensed consolidated financial statements as the tax impact is considered immaterial. This assessment is based on the presence of operating losses and other deferred tax assets to offset any significant taxable income arising from the pro forma adjustments reflected in the unaudited pro forma condensed consolidated financial statements.

2.
Pro Forma Adjustments – Balance Sheet
(a)
Represents the elimination of the assets and liabilities of the GES business that were sold under the terms of the Transaction.
(b)
Represents the estimated net cash proceeds at the closing of the Transaction:

 

 

$

510,000

Base purchase price

 

 

(80,691)

Less: indebtedness assumed by Buyer

 

 

2,811

Plus: working capital adjustment

 

 

(21,828)

Less: transaction expenses paid at the Closing Date

 

 

(318,000)

Less: repayment of amounts outstanding under the Term Loan B

 

$

92,292

Estimated net cash proceeds

 

 

 

 

 

(c)
Represents the estimated deferred purchase price payable by Buyer to the Company one year after Closing Date.

7

 

 

(d)
Represents the net impact to other current liabilities:

 

$

278

Additional transaction expenses incurred after September 30, 2024

 

 

(1,927)

Less: previously accrued transaction expenses paid at the Closing Date

 

$

(1,649)

Net impact to other current liabilities

 

 

 

 

 

(e)
Represents the repayment of current portion of amounts outstanding under Term Loan B.
(f)
Represents the net pro forma impact to long-term debt and finance obligations:

 

 

$

5,952

Write off of unamortized debt issuance costs associated with Term Loan B

 

 

(314,000)

Repayment of the long-term portion of amounts outstanding under Term Loan B

 

 

(308,048)

Net impact to long-term debt and finance obligations

 

 

 

 

 

(g)
Represents the net pro forma impact to accumulated earnings (deficit):

 

 

$

510,000

Base purchase price

 

 

25,000

Deferred purchase price payable by Buyer to the Company one year after the Closing Date discussed above in note 2(c)

 

 

535,000

Total consideration

 

 

(20,179)

Less: transaction expenses incurred post September 30, 2024

 

 

(77,880)

Less: indebtedness assumed by Buyer, offset by the working capital adjustment

 

 

(5,952)

Less: write off of unamortized debt issuance costs associated with Term Loan B

 

$

430,989

Net pro forma impact to accumulated earnings (deficit)

 

 

 

 

 

(h)
Represents the write off of unamortized debt issuance costs associated with the Revolver; Revolver was undrawn as of September 30, 2024.
3.
Pro Forma Adjustments – Statements of Operations
(a)
Represents the elimination of revenues and expenses associated with the GES business.
(b)
In connection with the Transaction, the Company and Buyer entered into a Transition Services Agreement (“TSA”) primarily to support the Company’s information technology infrastructure, which had historically been provided by the GES business along with other immaterial corporate functions that the Company had historically provided to the GES business. The terms of the services included in the TSA vary in length, with the longest being 12 months related to the information technology infrastructure support, and includes the option to extend for up to two additional 3-month periods. This adjustment recognizes the expense related to the TSA for the periods presented.
(c)
Represents the reduction of historical interest expense associated with the Revolver that had not been allocated to the GES business.
(d)
Represents the impact on earnings per share related to pro forma adjustments. For the years ended December 31, 2022 and 2021 the unaudited pro forma condensed consolidated statements of operations results in a loss, therefore there is no impact to dilutive earnings per share.

8