Viad Corp Announces 16.7 Percent Increase in Third-Quarter Earnings Per Share.PHOENIX--(BUSINESS WIRE)--Oct. 22, 1998-- Income Before Nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. Items Up 22.3 Percent Revenues Of Ongoing Businesses Increased 16.2 Percent Strong Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Growth Continues At All Core Companies Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. H. Bohannon, chairman, president and chief executive officer, Viad Corp (NYSE NYSE See: New York Stock Exchange :VVI VVI Vertical Velocity Indicator VVI Velocity Vector Imaging (trademark of Siemens AG) VVI Vermont Volunteer Infantry (Civil War) VVI VVimaging, Inc. ), today announced revenues, income and earnings per share for the third quarter and nine months ended September September: see month. 30, 1998. Revenues for the 1998 third quarter increased 8.1 percent to $672,393,000 from $622,226,000 in the 1997 quarter. Third-quarter income before nonrecurring items was $41,383,000, or $.42 per share, on the diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, up 16.7 percent on a per-share basis from comparable income of $33,850,000, or $.36 per share, in the 1997 period. For the 1998 per-share calculations, there were 4.4 million more average common shares outstanding than in 1997, due primarily to the acquisition of Game Financial Corporation in December December: see month. of 1997 (for approximately 2.6 million shares of Viad stock), stock option exercises and the effects of a higher Viad stock price on the calculation of additional common shares arising from unexercised stock options. A stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program (which commenced in July July: see month. ), is having the intended effect of reducing the dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. otherwise resulting from common shares issued upon exercise of stock options and in connection with other stock compensation plans. Revenues for the first nine months of 1998 were $1,932,244,000, up 6.9 percent over 1997's comparable revenues of $1,806,897,000. For the first nine months, income before nonrecurring items was $91,100,000, or $.92 per share, up 22.7 percent on a per-share basis over 1997's comparable income of $71,045,000, or $.75 per share. Net income for the 1998 quarter was $57,033,000, or $.58 per share, including a gain of $15,650,000 (after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ), or $.16 per share, on the sale of Viad's duty-free du·ty-free adj. 1. Exempt from customs duties: duty-free merchandise. 2. Of, relating to, or being a region or establishment in which imported goods are exempt from customs duties: and shipboard ship·board n. 1. The condition of being aboard a ship: on shipboard. 2. Archaic The side of a ship. adj. concessions business, Greyhound greyhound, breed of tall, swift, sight hound developed nearly 5,000 years ago in Egypt. It stands about 26 in. (66 cm) high at the shoulder and weighs about 65 lb (29.5 kg). Leisure Services, Inc. This compares to net income of $33,850,000, or $.36 per share, in the 1997 quarter. Net income for the 1998's first nine months was $113,034,000, or $1.14 per share, after nonrecurring items. Nonrecurring items included gains aggregating $28,851,000 (after-tax), or $.29 per share, on the sales of Viad's duty-free and shipboard concessions and fueling and ground-handling businesses, and a provision of $6,917,000 (after-tax), or $.07 per share, for repayment of amounts previously received by Travelers Express, Viad's payment services subsidiary, under a proposed litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement term sheet. Net income for the first nine months of 1997 was $62,587,000, or $.66 per share, after deducting an extraordinary charge for early retirement of debt of $8,458,000 (after-tax), or $.09 per share. In 1998, Viad began charging its operations an increased allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of corporate expenses, which is offset by reductions in expense for corporate activities for the 1998 periods. Excluding the effects of the aircraft fueling and ground-handling operations and the duty-free and shipboard concessions businesses (sold as of April 1, 1998, and September 15, 1998, respectively), third-quarter consolidated revenues increased 16.2 percent (16.6 percent on a fully taxable equivalent basis). Segment operating income was up 20.1 percent in the third quarter (21.9 percent before the increased corporate allocation), on the fully taxable equivalent basis. Viad's core businesses continued to perform solidly, bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by contributions from acquisitions made earlier in the year and by the start-up Start-up The earliest stage of a new business venture. of Bank One Ballpark concession operations. These results were achieved despite the effects of third-quarter strikes at Northwest Airlines, which impacted the Dobbs Dobbs may refer to:
For the first nine months, also on the fully taxable equivalent basis, revenues increased 12.4 percent and operating income was up 17.7 percent (19.9 percent before the increased corporate allocation). The fully taxable equivalent numbers are presented to provide meaningful comparisons, as Travelers Express is investing increasing amounts of its growing money order and official check funds in tax-exempt securities Tax-exempt security An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district. , which have lower pre-tax yields, but produce higher income on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. than comparable taxable investments. Details of financial performance for Viad's three business segments include: -- Excluding the effects of the sold aircraft fueling and ground-handling business, airline catering's operating income increased 6 percent (7.4 percent before the increased corporate allocation) in the quarter on an 11 percent revenue increase. Through nine months, operating income was up 7.3 percent on this basis (9.2 percent before the increased corporate allocation) on a 12.2 percent revenue increase. These results were driven by new business added during the past year, including the Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. kitchen acquired in the second quarter of 1998, and by strong airline traffic. Operating income did not grow as fast as revenues due to the start-up of new and replacement kitchens and the effects of the Northwest Airlines strike in the third quarter. -- Convention services' operating income increased 17 percent 20.8 percent before the increased corporate allocation) in the third quarter on revenues which were up 3.3 percent over last year. For the first nine months, convention services' operating income was also up 17 percent (20 percent before the increased corporate allocation) on a 2 percent revenue increase. GES GES GTN (Global Transportation Network) Exercise System GES General Estimates System (NHTSA) GES Ghana Education Service GES Government Economic Service (UK) Exposition exposition or exhibition, term frequently applied to an organized public fair or display of industrial and artistic productions, designed usually to promote trade and to reflect cultural progress. Services continued to eliminate low-margin business during the 1998 periods, and Exhibitgroup/Giltspur revenues were 3 percent below last year in the traditionally slow third-quarter period, due to certain customers delaying delivery of their exhibits into the fourth quarter. Both Exhibitgroup/Giltspur and GES had solid gains in operating income due to improved cost controls and better margin business in the 1998 periods. -- Excluding the effects of the sold duty-free and shipboard concessions business, travel and leisure and payment services' third-quarter operating income increased 30.4 percent (31.5 percent before the increased corporate allocation) on a 39.9 percent revenue increase on the fully taxable equivalent basis. For the nine months, on the same basis, operating income rose 26.2 percent (28.1 percent before the increased corporate allocation) on a 29.2 percent revenue increase. These results were driven by continuing strong growth in traditional Travelers Express operations, supplemented by Game Financial (acquired in December 1997) and MoneyGram (acquired as of June 1, 1998). In addition, results included full operation of Restaura's concessions at Bank One Ballpark, home of the new Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). Diamondbacks major league baseball "MLB" and "Major Leagues" redirect here. For other uses, see MLB (disambiguation) and Major Leagues (disambiguation). Major League Baseball (MLB) is the highest level of play in North American professional baseball. franchise, which helped to overcome effects of the third-quarter strike at General Motors plants where Restaura provides contract foodservice. "Our core operating companies operating company A business that engages in transactions with outsiders. recorded excellent income growth in the 1998 third-quarter and nine-month periods, continuing the positive results achieved in 1997," Bohannon said. "The ongoing, strong emphasis on cost controls and customer service should enable Viad to continue this trend," he added. -0-
VIAD CORP AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
UNAUDITED
(000 omitted, except per share data)
Quarter Ended Nine Months Ended
Sept. 30, Sept. 30,
______________________ ______________________
1998 1997 1998 1997
__________ __________ __________ __________
Revenues (Note A) $672,393 $622,226 $1,932,244 $1,806,897
__________ __________ __________ __________
__________ __________ __________ __________
Operating Income
(Note A):
Principal business
segments $75,706 $68,255 $182,567 $165,611
Corporate activities
and nonoperating
items, net (5,422) (6,910) (17,362) (22,412)
Sale of trade
accounts receivable
expense (1,123) (1,110) (3,338) (3,330)
__________ __________ __________ __________
69,161 60,235 161,867 139,869
Interest expense (10,261) (11,471) (31,668) (38,073)
Minority interests (1,105) (555) (1,571) (1,039)
__________ __________ __________ __________
Income before income
taxes 57,795 48,209 128,628 100,757
Income taxes (16,412) (14,359) (37,528) (29,712)
__________ __________ __________ __________
Income before
nonrecurring items 41,383 33,850 91,100 71,045
Nonrecurring items,
net of tax (Note B):
Gains on sales of
businesses 15,650 28,851
Provision for patent
infringement payments
received (6,917)
__________ __________ __________ __________
15,650 - 21,934 -
__________ __________ __________ __________
Income before
extraordinary
charge 57,033 33,850 113,034 71,045
Extraordinary charge
for early retirement
of debt, net of tax
benefit of $4,554 (8,458)
__________ __________ __________ __________
Net income $57,033 $33,850 $113,034 $62,587
__________ __________ __________ __________
__________ __________ __________ __________
Diluted income per
common share:
Income before
nonrecurring
items $0.42 $0.36 $0.92 $0.75
Gains on sales of
businesses 0.16 0.29
Provision for
patent
infringement
payments
received (0.07)
Extraordinary
charge (0.09)
__________ __________ __________ __________
Net income per
share $0.58 $0.36 $1.14 $0.66
__________ __________ __________ __________
__________ __________ __________ __________
Average outstanding
and potentially
dilutive common
shares 98,595 94,239 98,354 93,457
__________ __________ __________ __________
__________ __________ __________ __________
Basic income per
common share:
Income before
nonrecurring
items $0.44 $0.37 $0.96 $0.77
Gains on sales of
businesses 0.16 0.30
Provision for
patent infringement
payments received (0.07)
Extraordinary
charge (0.09)
__________ __________ __________ __________
Net income per
share $0.60 $0.37 $1.19 $0.68
__________ __________ __________ __________
__________ __________ __________ __________
Average outstanding
common shares 94,595 91,077 94,331 90,547
__________ __________ __________ __________
__________ __________ __________ __________
VIAD CORP AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
UNAUDITED
Notes to Summary of Consolidated Income:
(A) Supplementary Information--Revenues and Operating Income
(excluding nonrecurring items)
(000 omitted) Quarter Ended Nine Months Ended
Sept. 30, Sept. 30,
______________________ ______________________
1998 1997 1998 1997
__________ __________ _________ __________
Revenues:
Airline Catering and
Services:
Catering $237,083 $213,625 $669,149 $596,488
Fueling and ground
handling (sold as
of 4/1/98) - 30,912 30,594 90,867
_________ __________ __________ __________
237,083 244,537 699,743 687,355
Convention Services 187,276 181,310 625,448 612,977
Travel and Leisure and
Payment Services (1) 217,213 155,251 499,500 386,580
Duty free and
shipboard
concessions (sold
as of 9/15/98) 41,280 48,231 135,859 141,025
_________ _________ __________ __________
258,493 203,482 635,359 527,605
_________ _________ __________ __________
Total principal
business
segments (1) 682,852 629,329 1,960,550 1,827,937
Less taxable
equivalent
adjustment (1) (10,459) (7,103) (28,306) (21,040)
_________ _________ __________ __________
Total revenues as
reported $672,393 $622,226 $1,932,244 $1,806,897
_________ _________ __________ __________
_________ _________ __________ __________
Operating Income:
Airline Catering and
Services (2):
Catering $23,006 $21,708 $53,717 $50,044
Fueling and ground
handling (sold as
of 4/1/98) - 2,634 2,723 8,744
_________ _________ __________ __________
23,006 24,342 56,440 58,788
Convention Services
(2) 16,435 14,046 63,492 54,273
Travel and Leisure
and Payment
Services (1) 44,565 34,187 83,086 65,813
Duty free and
shipboard
concessions
(sold as of
9/15/98) 2,159 2,783 7,855 7,777
_________ _________ __________ __________
46,724 36,970 90,941 73,590
_________ _________ __________ __________
Total principal
business
segments (1)(2) 86,165 75,358 210,873 186,651
Less taxable
equivalent
adjustment (1) (10,459) (7,103) (28,306) (21,040)
_________ _________ __________ __________
Total principal
business segments
as reported (2) 75,706 68,255 182,567 165,611
Corporate activities
and nonoperating
items, net (2) (5,422) (6,910) (17,362) (22,412)
Sale of trade accounts
receivable expense (1,123) (1,110) (3,338) (3,330)
_________ _________ __________ __________
Total operating
income $69,161 $60,235 $161,867 $139,869
_________ _________ __________ __________
_________ _________ __________ __________
(1) Viad's Payment Services subsidiary is investing increasing amounts in tax-exempt securities. On a fully taxable equivalent basis, revenues and operating income would be higher by $10,459,000 and $7,103,000 for the 1998 and 1997 quarters, respectively, and by $28,306,000 and $21,040,000 for the 1998 and 1997 nine month periods, respectively. The Travel and Leisure and Payment Services segment and total principal business segments revenues and operating income are presented including adjustments for such amounts, which are then deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. to arrive at reported totals. (2) In 1998, Viad began charging its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. an increased allocation of Corporate expenses, which is offset by reductions in expense for Corporate activities for the 1998 periods. VIAD CORP AND SUBSIDIARIES SUMMARY OF CONSOLIDATED INCOME UNAUDITED Notes to Summary of Consolidated Income, continued: (B) Nonrecurring Items (1) Gains on sales of businesses: Effective April 1, 1998, Viad sold its Aircraft Services International Group ("ASIG ASIG Association Suisses et Internationaux de Genève (Geneva Swiss International Association; Geneva, Switzerland) ASIG Aerospace Special Interest Group ASIG Africa Special Interest Group "), which conducted fueling and ground-handling operations. After repaying short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings with proceeds of the sale, Viad terminated certain related interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. agreements. The gain on the sale of ASIG, after deducting costs of sale and related expense provisions, was $13,201,000 (net of income taxes of $7,954,000), or $0.13 per diluted share. In September 1998, Viad completed the sale of its duty-free and shipboard concessions business, Greyhound Leisure Services, Inc. ("GLSI"). The gain on sale, after deducting costs of sale and related expense provisions, was $15,650,000 (net of income taxes of $11,034,000), or $0.16 per diluted share. ASIG's and GLSI's operations were included in Viad's Airline Catering and Services segment and Viad's Travel and Leisure and Payment Services segment, respectively, until the date of sale. (2) Provision for patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. payments received: Following protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. efforts, including formal mediation mediation, in law, type of intervention in which the disputing parties accept the offer of a third party to recommend a solution for their controversy. Mediation has long been a part of international law, frequently involving the use of an international commission, , to settle patent infringement litigation initiated by Viad's Payment Services subsidiary, Travelers Express Company, Inc. ("TECI TECI Theremin Enthusiasts Club International "), against Integrated Payment Systems ("IPS (1) (Inches Per Second) The measurement of the speed of tape passing by a read/write head or paper passing through a pen plotter. (2) (IPS) (Intrusion Prevention S "), a subsidiary of First Data Corporation, TECI petitioned the Federal District Court in May 1998 to set aside a settlement term sheet entered into over three years previously because of the parties' failure to agree on final settlement terms. At the same time, TECI tendered back to IPS amounts which IPS had paid to TECI pursuant to the term sheet. The Court granted TECI's motion and set a trial date for its patent infringement lawsuit lawsuit: see procedure; tort. against IPS. While TECI expects a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. outcome, the timing and amount of recovery pursuant to litigation cannot be assured. Accordingly, TECI recorded a one-time provision in the second quarter of 1998 for the payments received from IPS and recorded as income in prior years, plus interest thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that and related expenses totaling $6,917,000 (net of tax benefit of $3,725,000), or $0.07 per diluted share. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion