Q2 Revenue, Income Down at Viad

Viad Corp. had a tough second quarter, according to its earnings report released July 24 – and, because of negative show rotation, the third quarter could be difficult as well, at least compared with last year.

“These are unprecedented times,” said John Jastrem, who recently was named CEO of the company's division that includes GES Exposition Services, Exhibitgroup/Giltspur and Becker Group.

Revenue for all of Viad was $213.6 million, down $63.6 million from the second quarter of last year. Revenue for GES was $132.4 million, down nearly 30 percent from last year's $187.6 million.

Operating income for the entire company was $9.8 million, down $11.3 million (or 53.5 percent) from last year. Operating income for GES was $4.8 million, down from $14 million last year.

Viad Chairman, President and CEO Paul Dykstra said, “Tradeshows have decreased in overall size as exhibitors pull back on spending, exhibits are smaller and fewer materials are being sent to the showfloor.”

Negative show rotation is expected to cost Viad about $73 million in the third quarter. During the same quarter last year, GES serviced the quadrennial Minexpo Intl. and the biennial Intl. Manufacturing Technology Show and Intl. Woodworking Machinery & Furniture Supply Fair-USA.

“Things came together last year,” Jastrem said, “and the third quarter was very big.”

Viad's Experiential Marketing Services – which includes Exhibitgroup/Giltspur and Becker Group – did a bit better, even though it is much smaller than GES. Revenue for the group was $62.9 million in the second quarter, down only a little more than 4 percent from last year's $65.7 million.

Operating income for the group rose to $2.7 million, from $1.9 million last year.

“There is more organic growth there because we're adding services,” Jastrem said. “We've been able to accomplish more in some cases, taking business away from some of the (advertising) agencies.”