Viad Corp Announces Fourth-Quarter Earnings Per Share Up 57 Percent; Revenues Increased 12 Percent for Quarter; Full-Year Earnings Per Share $1.26 Versus $1.25 Consensus.Business Editors PHOENIX--(BUSINESS WIRE)--Jan. 27, 2000 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 revenue, income and earnings per share for the fourth quarter and year ended December December: see month. 31, 1999. Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the (before nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. gains) was $34,255,000, or $.36 per 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. share in the fourth quarter, up 57 percent on a per-share basis over the prior year. Full-year income from continuing operations (before nonrecurring gains) was $122,428,000, or $1.26 per share, up 48 percent on a per-share basis from 1998. Revenues of ongoing operations (excluding sold businesses) for the 1999 fourth quarter were $408,472,000, up 12 percent. For the full year, revenues of ongoing operations were $1,627,956,000, up 18 percent. 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. of ongoing operations increased 26 percent for the quarter to $63,277,000. For the year, operating income of ongoing operations was $248,709,000, up 29 percent. Margins of ongoing operations, a company priority, increased to 15.5 percent from 13.8 percent in the quarter, and for the full year, improved to 15.3 percent from 13.9 percent. Details of financial performance for Viad's business segments include: -- For the quarter, operating income of payment services increased 52 percent on a 20 percent revenue increase. For the full year, operating income increased 47 percent on a 35 percent revenue increase. These outstanding results were driven by continuing strong revenues and income from official check, MoneyGram MoneyGram International, Inc. (NYSE: MGI) is a United States-based financial services company, headquartered in Minneapolis, Minnesota. It has additional facilities in Brooklyn Center, Minnesota, Lakewood, Colorado, and international offices in over 170 countries. (acquired as of June June: see month. 1, 1998) and money order operations. In addition, expenses for Year 2000 compliance projects were lower in the 1999 period. -- Revenues of convention and event services for the quarter increased 6 percent, with operating income down 4 percent. For the full year, operating income increased 14 percent on a 10 percent revenue increase, with both GES GES GTN (Global Transportation Network) Exercise System GES General Estimates System (NHTSA) GES Ghana Education Service GES Government Economic Service (UK) and Exhibitgroup/Giltspur reporting solid year-over-year gains. For the quarter, Exhibitgroup/Giltspur posted strong revenue and operating gains. GES 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, while solidly profitable, reported a decline in operating income in the quarter on a slight increase in revenues. Cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. or cutbacks of certain millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. events, along with increased investment in new products and exhibitor services programs, and productivity and quality initiatives, affected GES results for the quarter. These programs will contribute to bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. improvement in 2000. Net income for the fourth quarter was $46,371,000, or $.49 per share, including nonrecurring income of $12,116,000 (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 $.13 per share. Nonrecurring income in the quarter included a gain of $5,314,000, after deducting legal and other costs, arising from a court ruling which reinstated the earlier settlement of 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. 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. brought by Travelers Express several years ago and a gain of $5,866,000 arising from a deferred payment on a previously sold business. The contribution of a portion of Viad's investment in the Arizona Diamondbacks This article is about the baseball team. For other uses, see Diamondback. The Arizona Diamondbacks (also referred to as the D-backs) are a Major League Baseball team based in Phoenix, Arizona. They play in the West Division of the National League. limited partnership to the Viad Corp Medical Plan Trust in the fourth quarter also resulted in a nonrecurring gain, and will help defray de·fray tr.v. de·frayed, de·fray·ing, de·frays To undertake the payment of (costs or expenses); pay. [French défrayer, from Old French desfrayer : des-, future retiree medical expenses for the company. Going forward, Viad's remaining ownership interest in the Diamondbacks will be accounted for under the cost method and will not impact results in the coming years. For the year, net income was $353,722,000, or $3.66 per share, including income from nonrecurring income of $12,340,000 (after-tax), or $.13 per share, and income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $218,954,000, or $2.27 per share. Results of discontinued operations include a gain of $213,437,000 on the sale of Dobbs Dobbs may refer to:
&uot;The year's results represent Viad's third consecutive year of record earnings per share growth, from continuing operations, of over 30 percent per year since the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of its consumer products business in 1996,&uot; 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 of Viad, said. &uot;We are very pleased with our results. In addition to strong earnings for the year, our cash flow increased to $296,000,000, up 29 percent over the prior year. Our core businesses remain strong, and with additional new programs in place and continued emphasis on cash flow, margin improvements and profitable top-line growth, the outlook for 2000 is very positive,&uot; he added. Viad is a $1.6 billion S& MidCap mid·cap adj. 1. Or or relating to corporations whose retained earnings and outstanding shares of common stock have a value between those of small cap companies and large cap corporations. 2. 400 company. Major subsidiaries include Travelers Express/MoneyGram of Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. , GES Exposition Services of 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. and Exhibitgroup/Giltspur of Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. . For more information, visit the company's Web site at www.viad.com. As provided by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision under the &uot;Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995,&uot; Viad cautions readers that this press release includes certain information which may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained under the caption &uot;Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Statements&uot; in Viad's financial statements filed with the Securities and Exchange Commission.
VIAD CORP AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED INCOME
PRELIMINARY - SUBJECT TO AUDIT
(000 omitted,
except per share data) Quarter Ended Year Ended
Dec. 31, Dec. 31,
------------------ ----------------------
1999 1998 1999 1998
-------- -------- ---------- ----------
Revenues $393,146 $385,305 $1,581,169 $1,612,759
======== ======== ========== ==========
Operating income:
Before corporate
activities $ 47,951 $ 38,678 $ 187,786 $ 158,607
Corporate activities,
net (4,773) (4,953) (19,369) (24,207)
-------- -------- ---------- ----------
43,178 33,725 168,417 134,400
Other income (expense),
primarily interest, net (615) (6,068) (12,420) (27,212)
Minority interests (479) (594) (2,078) (2,165)
-------- -------- ---------- ----------
Income before income taxes 42,084 27,063 153,919 105,023
Income taxes (7,829) (4,151) (31,491) (20,416)
-------- -------- ---------- ----------
Income from continuing
operations, before
nonrecurring items 34,255 22,912 122,428 84,607
Nonrecurring items 12,116 4,004 12,340 12,737
-------- -------- ---------- ----------
Income from continuing
operations 46,371 26,916 134,768 97,344
Income from discontinued
operations 10,690 218,954 53,296
-------- -------- ---------- ----------
Net income $ 46,371 $ 37,606 $ 353,722 $ 150,640
======== ======== ========== ==========
Diluted income per
common share:
Income from continuing
operations, before
nonrecurring items $ 0.36 $ 0.23 $ 1.26 $ 0.85
Nonrecurring items 0.13 0.04 0.13 0.13
-------- -------- ---------- ----------
Income from continuing
operations 0.49 0.27 1.39 0.98
Discontinued operations 0.11 2.27 0.54
-------- -------- ---------- ----------
Net income per share $ 0.49 $ 0.38 $ 3.66 $ 1.52
======== ======== ========== ==========
Basic income per common
share:
Income from continuing
operations, before
nonrecurring items $ 0.38 $ 0.24 $ 1.31 $ 0.89
Nonrecurring items 0.13 0.04 0.13 0.13
-------- -------- ---------- ----------
Income from continuing
operations 0.51 0.28 1.44 1.02
Discontinued operations 0.11 2.35 0.56
-------- -------- ---------- ----------
Net income per share $ 0.51 $ 0.39 $ 3.79 $ 1.58
======== ======== ========== ==========
Common shares treated as
outstanding for net income
per share calculations:
Average outstanding
shares 90,522 94,537 93,007 94,382
======== ======== ========== ==========
Average outstanding
and potentially
dilutive shares 93,203 98,407 96,396 98,367
======== ======== ========== ==========
VIAD CORP AND SUBSIDIARIES SUMMARY OF CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: INCOME PRELIMINARY - SUBJECT TO AUDIT Notes to Summary of Consolidated Income: (A) Reportable Segments Viad measures segment profit and performance based on operating segment income from continuing operations after minority interests and income taxes, but before nonrecurring items. Operating income by segment is presented as additional information. An adjustment is made to the Payment Services segment to present revenues and operating income on a fully taxable equivalent basis for income resulting from investments 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. . Intersegment sales and transfers are not significant. Corporate and other includes expenses of corporate activities and interest expense not allocated to operating segments. Consolidated revenues, operating income and interest expense reflect the elimination of intercompany interest payments on investments in Viad commercial paper by a Payment Services subsidiary. The elimination has no effect on Viad's income from continuing operations or net income.
Quarter Ended
Dec. 31, 1999
---------------------------------
Income from
Operating Continuing
(000 omitted) Revenues Income Operations
-------- ---------- -----------
Payment Services $156,332 $ 39,387 $ 23,167
Convention and Event Services 236,915 24,181 10,993
-------- ---------- ----------
Reportable Segments 393,247 63,568 34,160
Travel and recreation services 15,225 (291) (345)
-------- ---------- ----------
Subtotal, ongoing operations 408,472 63,277 33,815
Sold travel &recreation
businesses(1)
Corporate and other(2) (4,773) 440
Nonrecurring items(3) 8,176 12,116
Intercompany interest
elimination (958) (958)
-------- ---------- ----------
Subtotal 407,514 65,722 46,371
Less taxable equivalent
adjustment (14,368) (14,368)
-------- ---------- ----------
Totals as reported $393,146 $ 51,354 $ 46,371
======== ========== ==========
Quarter Ended
Dec. 31, 1998
---------------------------------
Income from
Operating Continuing
(000 omitted) Revenues Income Operations
-------- ---------- -----------
Payment Services $130,299 $ 25,957 $ 15,332
Convention and Event Services 223,717 25,079 12,426
-------- ---------- -----------
Reportable Segments 354,016 51,036 27,758
Travel and recreation services 10,014 (712) (513)
-------- ---------- -----------
Subtotal, ongoing operations 364,030 50,324 27,245
Sold travel &recreation
businesses(1) 33,975 1,054 888
Corporate and other(2) (4,953) (5,221)
Nonrecurring items(3) 4,004
Intercompany interest elimination (1,697) (1,697)
-------- ---------- -----------
Subtotal 396,308 44,728 26,916
Less taxable equivalent
adjustment (11,003) (11,003)
-------- ---------- -----------
Totals as reported $385,305 $ 33,725 $ 26,916
======== ========== ===========
Year Ended
Dec. 31, 1999
-----------------------------------
Income from
Operating Continuing
(000 omitted) Revenues Income Operations
---------- ---------- -----------
Payment Services $581,492 $128,487 $ 76,064
Convention and Event Services 932,768 99,934 47,182
---------- ---------- ----------
Reportable Segments 1,514,260 228,421 123,246
Travel and recreation services 113,696 20,288 10,950
---------- ---------- ----------
Subtotal, ongoing operations 1,627,956 248,709 134,196
Sold travel &recreation
businesses(1) 10,928 (3,208) (1,953)
Corporate and other(2) (19,369) (9,815)
Nonrecurring items(3) 8,176 12,340
Intercompany interest
elimination (5,681) (5,681)
---------- ---------- ----------
Subtotal 1,633,203 228,627 134,768
Less taxable equivalent
adjustment (52,034) (52,034)
---------- ---------- ----------
Totals as reported $1,581,169 $176,593 $134,768
========== ========== ==========
Year Ended
Dec. 31, 1998
-----------------------------------
Income from
Operating Continuing
(000 omitted) Revenues Income Operations
---------- ---------- -----------
Payment Services $431,157 $ 87,206 $ 51,467
Convention and Event Services 849,165 87,446 42,924
---------- ---------- -----------
Reportable Segments 1,280,322 174,652 94,391
Travel and recreation services 102,952 17,729 9,523
---------- ---------- -----------
Subtotal, ongoing operations 1,383,274 192,381 103,914
Sold travel &recreation
businesses(1) 275,538 12,279 7,589
Corporate and other(2) (24,207) (26,896)
Nonrecurring items(3) (10,642) 12,737
Intercompany interest
elimination (6,744) (6,744)
---------- ---------- -----------
Subtotal 1,652,068 163,067 97,344
Less taxable equivalent
adjustment (39,309) (39,309)
---------- ---------- -----------
Totals as reported $1,612,759 $123,758 $ 97,344
========== ========== ===========
(1) The sold travel and recreation businesses category includes operating results up to the respective dates of sale for businesses which have not been classified as discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: operations. (2) Income from continuing operations for corporate and other includes investment income (primarily interest) in 1999 periods which arose from investment of a portion of the proceeds from the sale of Dobbs, as well as interest expense and expenses of corporate activities not allocated to operations in the 1999 and 1998 periods. (3) See Note B. VIAD CORP AND SUBSIDIARIES SUMMARY OF CONSOLIDATED INCOME PRELIMINARY - SUBJECT TO AUDIT Notes to Summary of Consolidated Income, continued: (B) Nonrecurring Items In the second quarter of 1998, Viad's Payment Services subsidiary, Travelers Express Company (&uot;TECI&uot;) petitioned the Federal District Court to set aside a settlement term sheet under a patent infringement litigation initiated by TECI TECI Theremin Enthusiasts Club International against Integrated Payment Systems (&uot;IPS&uot;), a subsidiary of First Data Corporation, because of the parties' failure to agree on final settlement terms. At that time, TECI recorded a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. provision totaling $6,917,000 (after-tax) and tendered back to 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 amounts which IPS had paid to TECI pursuant to the term sheet. In December 1999, the settlement was reinstated, and IPS was ordered to pay back to TECI the amounts paid in 1998 and to resume scheduled payments as provided by the term sheet. Accordingly, after deducting legal and other costs, TECI recorded a one-time gain of $5,314,000 (after-tax) in the fourth quarter of 1999. In the third quarter of 1999, Viad adopted the equity method of accounting for Viad's approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% investment in the Arizona Diamondbacks (&uot;Diamondbacks&uot;) limited partnership baseball franchise. Noncash charges Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. of $4,721,000 and $547,000 (after-tax) were recorded in the 1999 third and fourth quarters, respectively, representing Viad's pro-rata Pro-rata Used to describe a proportionate allocation. Notes: For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share they own. See also: Dividend share of the Diamondback losses. On December 31, 1999, Viad contributed a portion of its investment in the Arizona Diamondbacks limited partnership to the Viad Corp Medical Plan Trust to fund certain postretirement benefits. The contribution, which was recorded at fair value, resulted in a one-time gain of $1,483,000 (after-tax). Going forward, Viad's remaining ownership interest will be accounted for under the cost method. Gains arising from the sales of businesses not classified as discontinued operations of $15,650,000 and $4,004,000 (after-tax) were recorded in the third and fourth quarters of 1998, respectively. A gain of $5,866,000 (after-tax) arising from a deferred payment on a previously sold business was recorded in the fourth quarter of 1999, and a gain of $4,945,000 (after-tax) for adjustment of a previously reported gain on sale of a business upon resolution of contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. was recorded in 1999's third quarter. (C) Discontinued Operations On July July: see month. 1, 1999, Viad completed the sale of Dobbs International Services, Inc. (&uot;Dobbs&uot;), its airline catering business. Effective April 1, 1998, Viad sold its Aircraft Services International Group (&uot;ASIG&uot;), which conducted aircraft fueling and ground-handling operations. The sale of Dobbs completed the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of Viad's airline catering and services segment. In addition to operating income from the discontinued operations, this caption includes a gain of $213,437,000 (after-tax) in 1999 on the sale of Dobbs, partly offset by $11,161,000 (after-tax) of provisions related to previously discontinued businesses, and a gain of $13,201,000 (after-tax) in 1998 on the sale of ASIG ASIG Association Suisses et Internationaux de Genève (Geneva Swiss International Association; Geneva, Switzerland) ASIG Aerospace Special Interest Group ASIG Africa Special Interest Group . Vice President - Controller January January: see month. 27, 2000 |
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