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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
March 31,
2025
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to____________
Commission file number:
001-11015
Pursuit Attractions and Hospitality, Inc.
(Exact name of registrant as specified in its charter)
Delaware
36-1169950
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1401 17th Stre
et,
Suite 1400
Denver
,
Colorado
80202
(Address of principal executive offices)
(Zip Code)
(
602
)
207-1000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $1.50 Par Value
PRSU
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
☒ No ☐
Indicate by check mark whether registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
☒
As of May 5, 2025, there were
28,255,866
shares of Common Stock ($1.50 par value) outstanding.
In this report, for periods presented, “we,” “us,” “our,” “the Company,” and “Pursuit” refer to Pursuit Attractions and Hospitality, Inc.
PART I - FINANCI
AL INFORMATION
Item 1.
Financi
al Statements
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
CONDENSED CONSOLIDA
TED BALANCE SHEETS
(Unaudited)
March 31,
December 31,
(in thousands, except share data)
2025
2024
Assets
Current assets
Cash and cash equivalents
$
22,801
$
49,702
Accounts receivable, net of allowances of $
213
and $
191
, respectively
10,735
9,267
Inventories
11,276
9,983
Prepaid insurance
10,272
825
Other current assets
44,964
47,607
Total current assets
100,048
117,384
Property and equipment, net
529,586
526,236
Other investments and assets
6,766
6,817
Operating lease right-of-use assets
27,561
26,765
Deferred income taxes
130
119
Goodwill
103,469
103,321
Other intangible assets, net
65,004
64,366
Total Assets
$
832,564
$
845,008
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$
20,748
$
22,494
Contract liabilities
22,057
12,372
Accrued compensation
10,991
7,642
Operating lease obligations
3,737
3,084
Other current liabilities
32,236
28,932
Current portion of debt and finance obligations
1,952
1,870
Total current liabilities
91,721
76,394
Long-term debt and finance obligations
75,195
71,443
Pension and postretirement benefits
11,033
11,038
Long-term operating lease obligations
36,481
36,336
Other deferred items and liabilities
28,789
33,109
Total liabilities
243,219
228,320
Commitments and contingencies
Stockholders’ equity
Pursuit stockholders’ equity:
Common stock, $
1.50
par value,
200,000,000
shares authorized,
28,248,036
and
28,076,662
shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively
47,413
47,413
Additional capital
673,971
680,684
Retained earnings
2,561
33,697
Accumulated other comprehensive loss
(
64,495
)
(
64,475
)
Common stock in treasury, at cost,
3,371,893
and
3,543,267
shares, respectively
(
161,596
)
(
171,494
)
Total Pursuit stockholders’ equity
497,854
525,825
Non-redeemable noncontrolling interest
91,491
90,863
Total stockholders’ equity
589,345
616,688
Total Liabilities and Stockholders’ Equity
$
832,564
$
845,008
Refer to Notes to Condensed Consolidated Financial Statements.
1
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
CONDENSED CONSOLIDATED S
TATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
(in thousands, except per share data)
2025
2024
Revenue:
Ticket, rooms, transportation, and other services revenue
$
29,734
$
28,984
Food, beverage, and retail products revenue
7,845
8,247
Total revenue
37,579
37,231
Costs and expenses:
Cost of food, beverage, and retail products sold
2,285
2,537
Operating expenses (exclusive of depreciation and amortization shown separately below)
38,427
40,374
Selling, general, and administrative expenses
17,165
12,842
Depreciation and amortization
10,968
9,763
Interest expense, net
1,464
2,922
Other expense, net
319
310
Restructuring charges
38
—
Total costs and expenses
70,666
68,748
Loss from continuing operations before income taxes
(
33,087
)
(
31,517
)
Income tax benefit
(
1,866
)
(
1,654
)
Loss from continuing operations
(
31,221
)
(
29,863
)
Income (loss) from discontinued operations, net of tax
(
131
)
3,620
Net loss
(
31,352
)
(
26,243
)
Net loss attributable to non-redeemable noncontrolling interest
216
923
Net loss attributable to redeemable noncontrolling interest
—
203
Net loss attributable to Pursuit
$
(
31,136
)
$
(
25,117
)
Diluted income (loss) per common share:
Continuing operations attributable to Pursuit common stockholders
$
(
1.10
)
$
(
1.46
)
Discontinued operations attributable to Pursuit common stockholders
(
0.01
)
0.17
Net loss attributable to Pursuit common stockholders
$
(
1.11
)
$
(
1.29
)
Weighted-average outstanding and potentially dilutive common
shares
28,113
21,029
Basic income (loss) per common share:
Continuing operations attributable to Pursuit common stockholders
$
(
1.10
)
$
(
1.46
)
Discontinued operations attributable to Pursuit common stockholders
(
0.01
)
0.17
Net loss attributable to Pursuit common stockholders
$
(
1.11
)
$
(
1.29
)
Weighted-average outstanding common shares
28,113
21,029
Amounts attributable to Pursuit
Loss from continuing operations
$
(
31,005
)
$
(
28,737
)
Income (loss) from discontinued operations
(
131
)
3,620
Net loss attributable to Pursuit
$
(
31,136
)
$
(
25,117
)
Refer to Notes to Condensed Consolidated Financial Statements.
2
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
CONDENSED CONSOLIDATED STATEM
ENTS OF COMPREHENSIVE LOSS
Refer to Notes to Condensed Consolidated Financial Statements.
5
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
CONDENSED CONSOLIDATED S
TATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
(in thousands)
2025
2024
Cash flows from operating activities
Net loss
$
(
31,352
)
$
(
26,243
)
(Income) loss from discontinued operations, net of tax
131
(
3,620
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
10,968
9,763
Deferred income taxes
2,619
799
Restructuring charges
38
—
Share-based compensation expense
2,436
2,302
Other non-cash items, net
(
1,962
)
2,130
Change in operating assets and liabilities (excluding the impact of acquisition and disposition):
Receivables
(
4,240
)
1,208
Inventories
(
1,259
)
(
570
)
Accounts payable
(
4,743
)
1,390
Restructuring liabilities
3,001
50
Accrued compensation
(
2,735
)
(
4,953
)
Contract liabilities
9,419
9,734
Income taxes payable
1,233
(
8,080
)
Other assets and liabilities, net
(
7,959
)
(
6,306
)
Net cash used in operating activities attributable to continuing operations
(
24,405
)
(
22,396
)
Cash flows from investing activities
Capital expenditures
(
9,899
)
(
16,390
)
Proceeds from insurance
4,565
—
Proceeds from dispositions of property and other assets
136
—
Net cash used in investing activities attributable to continuing operations
(
5,198
)
(
16,390
)
Cash flows from financing activities
Proceeds from borrowings
8,951
154,243
Payments on debt and finance obligations
(
4,115
)
(
127,455
)
Distributions to noncontrolling interest, net of contributions from noncontrolling interest
—
149
Payments of debt issuance costs
(
1,535
)
(
51
)
Payment of payroll taxes on stock-based compensation through shares withheld or repurchased
(
712
)
(
996
)
Proceeds from exercise of stock options
1,098
—
Net cash provided by financing activities attributable to continuing operations
3,687
25,890
Total cash used in continuing operations
(
25,916
)
(
12,896
)
Net cash provided by operating activities attributable to discontinued operations
—
14,853
Net cash used in investing activities attributable to discontinued operations
—
(
4,326
)
Net cash used in financing activities attributable to discontinued operations
—
(
509
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash attributable to discontinued operations
—
(
431
)
Total cash provided by discontinued operations
—
9,587
Effect of exchange rate changes on cash, cash equivalents, and restricted cash attributable to continuing operations
(
3,723
)
(
519
)
Net change in cash, cash equivalents, and restricted cash
(
29,639
)
(
3,828
)
Cash, cash equivalents, and restricted cash, beginning of year
56,057
59,029
Cash, cash equivalents, and restricted cash, end of period
$
26,418
$
55,201
Refer to Notes to Condensed Consolidated Financial Statements.
6
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1.
OV
ERVIEW AND BASIS OF PRESENTATION
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or United States Securities and Exchange Commission (“SEC”) rules and regulations for complete financial statements. These financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 17, 2025 (“2024 Form 10-K”).
The condensed consolidated financial statements include the accounts of Pursuit Attractions and Hospitality, Inc. (“Pursuit”) and its subsidiaries. We have eliminated all significant intercompany account balances and transactions in consolidation.
Certain prior year balances have been reclassified to conform to current year presentation.
Nature of Business
We are a global attractions and hospitality company that owns and operates a collection of inspiring and unforgettable travel experiences in iconic destinations. We are managed on a consolidated basis for purposes of assessing performance and making operating decisions. Accordingly, we are deemed to be a single operating segment.
On October 20, 2024, Pursuit (formerly known as Viad Corp) entered into an Equity Purchase Agreement (the “Purchase Agreement”) with TL Voltron, LLC, a Delaware limited liability company (“Truelink Capital”), pursuant to which Truelink Capital agreed to purchase all of the outstanding equity interests held by the Company in its subsidiaries comprising the Company’s former GES Exhibitions and Spiro reportable segments (the “GES Business”). The aggregate purchase price was $
535
million, consisting of a base purchase price of $
510
million, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses, and a deferred purchase price of $
25
million payable by Truelink Capital to the Company one year after the closing date.
On December 31, 2024, we completed the sale of the GES Business to Truelink Capital and relaunched Viad Corp as Pursuit Attractions and Hospitality, Inc., a standalone attractions and hospitality company with a singular focus on delivering unforgettable experiences in iconic destinations. We began trading under a new NYSE ticker symbol, PRSU, on January 2, 2025.
We determined that the sale of the GES Business met the criteria to be classified as a discontinued operation. Accordingly, we have accounted for the GES Business as a discontinued operation in this Quarterly Report on Form 10-Q. All amounts and disclosures for all periods presented reflect only the continuing operations of the Company unless otherwise noted. Refer to Note 5 –
Discontinued Operations
for further information.
7
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Impact of Recent Accounting Pronouncements
The following table provides a brief description of recent accounting pronouncements:
Standard
Description
Date of adoption
Effect on the financial statements
Standards Not Yet Adopted
Accounting Standards Update (“ASU”) 2024-03
, R
eporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses
Amendment requires additional disclosure in the notes to the financial statements about specified expense categories including purchases of inventory, employee compensation, depreciation, and intangible asset amortization.
1/1/2027
This new guidance will expand our footnote disclosures within the scope of this new standard with no impacts to our consolidated financial statements.
Standard
Description
Date of adoption
Effect on the financial statements
Standards Recently Adopted
ASU 2023-09
,
Income Taxes (Topic 740): Improvements to Income Tax Disclosures
Amendment expands the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid.
1/1/2025
This new guidance expanded our footnote disclosures within the scope of this new standard with no impacts to our consolidated financial statements.
Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and costs and expenses during the reported period. Estimates and assumptions are used in accounting for, among other things: impairment testing of recorded goodwill and intangible assets and long-lived assets; allowance for uncollectible accounts receivable; sales reserve allowances; provisions for income taxes, including uncertain tax positions; valuation allowances related to deferred tax assets; liabilities for losses related to self-insured liability claims; liabilities for losses related to environmental remediation obligations; pension and postretirement benefit costs and obligations; share-based compensation costs; the discount rates used to value lease obligations; and the allocation of purchase price of acquired businesses. These estimates are inherently based on judgment and information currently available. Actual results could differ from these and o
ther estimates.
Cash, Cash Equivalents, and Restricted Cash
Cash equivalents are highly-liquid investments with remaining maturities when purchased of three months or less. Cash and cash equivalents consist of cash and bank demand deposits. Restricted cash primarily represents collateral required for letters of credit.
Cash, cash equivalents, and restricted cash balances presented in the Condensed Consolidated Statements of Cash Flows consist of the following:
March 31,
December 31,
(in thousands)
2025
2024
Cash and cash equivalents on the consolidated balance sheet
$
22,801
$
49,702
Restricted cash included in other current assets
3,617
6,355
Cash, cash equivalents, and restricted cash shown in the statement of cash flows
$
26,418
$
56,057
8
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Revenue Recognition
Revenue is measured based on a specified amount of consideration in a contract with a customer, and amounts collected on behalf of third parties. We recognize revenue when a performance obligation is satisfied by transferring control of a product or delivering the service to a customer.
Service revenue is derived through ticket revenue, rooms revenue, and transportation and other services. Product revenue is derived through food and beverage and retail sales. Revenue is recognized at the time services are performed or upon delivery of the product. Service revenue is recognized over time as the customer simultaneously receives and consumes the benefits, and product revenue is recognized at a point in time.
Non-redeemable Noncontrolling Interest
Non-redeemable noncontrolling interest represents the portion of equity in a subsidiary that is not attributable, directly or indirectly, to us. We report non-redeemable noncontrolling interest within stockholders’ equity in the Condensed Consolidated Balance Sheets. The amount of consolidated net income or loss attributable to Pursuit and the non-redeemable noncontrolling interest is presented in the Condensed Consolidated Statements of Operations.
Leases
We recognize a right-of-use (“ROU”) asset and lease liability on the Condensed Consolidated Balance Sheets and classify leases as either finance or operating leases. The classification of the lease determines whether we recognize the lease expense on an effective interest method basis (finance lease) or on a straight-line basis (operating lease) over the lease term. In determining whether an agreement contains a lease, we consider if we have a right to control the use of the underlying asset during the lease term in exchange for an obligation to make lease payments arising from the lease. We recognize ROU assets and lease liabilities at commencement date, which is when the underlying asset is available for use to a lessee, based on the present value of lease payments over the lease term.
Our operating and finance leases are primarily equipment and land leases. Our equipment leases comprise mainly vehicles, hardware, and office equipment, each with various lease terms. Our land leases comprise mainly leases in Canada and Iceland on which our hotels or attractions are located and have lease terms ranging up to
46
years.
If a lease contains a renewal option that is reasonably certain to be exercised, then the lease term includes the optional periods in measuring a ROU asset and lease liability. We evaluate the reasonably certain threshold at lease commencement, and it is typically met if we identify substantial economic incentives or termination penalties. We do not include variable leases and variable non-lease components in the calculation of the ROU asset and corresponding lease liability. Our lease agreements do not contain any significant residual value guarantees or restrictive covenants.
Substantially all of our lease agreements do not specify an implicit borrowing rate, and as such, we utilize an incremental borrowing rate based on lease term and country in order to calculate the present value of our future lease payments. The incremental borrowing rate represents a risk-adjusted rate on a collateralized basis and is the expected rate at which we would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term and the country.
We are also a lessor to third party tenants who lease certain portions of facilities that we own. We record lease income from owned facilities as rental income. We classify all of our leases for which we are the lessor as operating leases.
Insurance Recoveries
Receipts from insurance up to the amount of the recognized losses are considered recoveries and are accounted for when they are probable of receipt. Anticipated proceeds in excess of the recognized loss are considered a contingency gain. A contingency gain for anticipated insurance proceeds in excess of losses already recognized is not recognized until all contingencies relating to the insurance claim have been resolved.
On July 22, 2024, Jasper National Park was closed and evacuated due to wildfire activity, and a wildfire entered the Jasper townsite on July 24, 2024. Pursuit’s hotels and attractions in and near the Jasper townsite were not reached by the wildfire and remain intact except for the Maligne Canyon Wilderness Kitchen (“Wilderness Kitchen”), a restaurant and retail operation located about three miles outside the town of Jasper. In addition to the loss of the Wilderness Kitchen, food and beverage inventories at our properties throughout the region were spoiled and written off. We also incurred other costs related to restoration efforts.
9
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
During 2024, we recorded total costs incurred at our properties affected by the Jasper wildfires of approximately $
21.5
million. All of these costs are deemed probable of recovery through our insurance. During 2024, we received approximately $
13
million in insurance proceeds as a partial settlement relating to the losses, of which $
3.8
million was allocated to the charge for the Wilderness Kitchen and $
9.2
million was allocated against the insurance receivable for costs incurred. During the three months ended March 31, 2025, we received additional partial settlement payments of approximately $
4.6
million from the insurance company relating to the losses and revised our estimated costs incurred downward by $
1.7
million. As of March 31, 2025, the remaining insurance receivable balance relating to the Jasper wildfires of approximately $
2.2
million represents costs that are deemed probable of recovery, compared to $
8.5
million as of December 31, 2024. We include the insurance receivable in “Other current assets” in the Consolidated Balance Sheets.
NOTE 2.
REVENUE AND RELATED CONTRACT LIABILITIES
Contract Liabilities
A contract liability represents an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer before transferring control of those goods or services. Our performance obligations are short-term in nature. They include the provision of a hotel room, an attraction admission, and a chartered or ticketed bus or van ride. We recognize revenue when the service has been provided or the product has been delivered. When we extend credit, payment terms are generally within 30 days and contain no significant financing components. We periodically receive customer deposits prior to transferring the related product or service to the customer. We record these deposits as a contract liability, which are recognized as revenue upon satisfaction of the related contract performance obligation(s). We include customer deposits in “Contract liabilities” in the Condensed Consolidated Balance Sheets. As of March 31, 2025
contract liabilities were $
22.1
million, compared to $
12.4
million as of
December 31, 2024. The contract liabilities as of December 31, 2024 will be primarily recognized in revenue during 2025.
Disaggregation of Revenue
The following tables disaggregate revenue by major service and product lines, timing of revenue recognition, and markets served:
Three Months Ended
March 31,
(in thousands)
2025
2024
Services:
Ticket revenue
$
18,952
$
17,805
Rooms revenue
7,339
7,604
Transportation
1,835
1,855
Other
1,608
1,720
Total services revenue
29,734
28,984
Products:
Food and beverage
6,123
6,522
Retail operations
1,722
1,725
Total products revenue
7,845
8,247
Total revenue
$
37,579
$
37,231
Timing of revenue recognition:
Services transferred over time
$
29,734
$
28,984
Products transferred at a point in time
7,845
8,247
Total revenue
$
37,579
$
37,231
Markets:
Banff Jasper Collection
$
17,443
$
18,106
Alaska Collection
715
613
Glacier Park Collection
1,495
1,433
Flyover Attractions
6,912
6,189
Sky Lagoon
11,014
10,890
Total revenue
$
37,579
$
37,231
10
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 3.
SHARE-BASED COMPENSATION
We grant share-based compensation awards to our officers, directors, and certain key employees pursuant to the 2017 Pursuit Attractions and Hospitality, Inc. Omnibus Incentive Plan, as amended (the “2017 Plan”). The 2017 Plan has a
10-year
term and provides for the following types of awards: (a) incentive and non-qualified stock options; (b) restricted stock awards and restricted stock units; (c) performance units or performance shares; (d) stock appreciation rights; (e) cash-based awards; and (f) certain other stock-based awards. As of
March 31, 2025
, there were
699,397
shares available for future grant under the 2017 Plan.
The following table summarizes share-based compensation expense:
Three Months Ended
March 31,
(in thousands)
2025
2024
Performance-based restricted stock units
$
1,054
$
799
Restricted stock awards and restricted stock units
1,331
1,304
Stock options
51
199
Share-based compensation expense before income tax
2,436
2,302
Income tax benefit
(1)
(
39
)
(
39
)
Share-based compensation expense, net of income tax
$
2,397
$
2,263
(1)
The income tax benefit amount for all periods primarily reflects the tax benefit associated with our Canadian-based employees.
NOTE 4.
ACQUISITION
Jasper SkyTram
On December 31, 2024, we acquired
100
% of the equity interests in the Jasper SkyTram attraction in Jasper National Park for total cash consideration of $
23.7
million Canadian dollars (approximately $
16.5
million U.S. dollars), which includes a renewable long-term lease with Parks Canada, with nearly 30 years remaining. The Jasper SkyTram ascends
2,263
meters (8,081 feet) up Whistlers Mountain while taking in 360-degree national park views. On-site amenities include an interpretive boardwalk, easy access to hiking trails, and light culinary offerings.
The following table summarizes the preliminary allocation of the aggregate purchase price and amounts of assets acquired based upon the estimated fair value at the date of acquisition.
(in thousands)
Purchase price paid as:
Cash
$
16,129
Holdback
347
Purchase price
16,476
Fair value of net assets acquired:
Property and equipment
1,947
Intangible assets
13,764
Total assets acquired
15,711
Excess purchase price over fair value of net assets acquired (“goodwill”)
$
765
Under the acquisition method of accounting, the purchase price as shown in the table above is allocated to the tangible and identifiable intangible assets acquired based on their estimated fair values. The excess purchase price over the fair value of net assets acquired was recorded as “Goodwill.” Goodwill is included in the Banff Jasper Collection reporting unit. The primary factor that contributed to the purchase price resulting in the recognition of goodwill related to future growth opportunities when combined with our other businesses. Goodwill is deductible for tax purposes.
11
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Following are details of the purchase price allocated to the intangible assets acquired for the Jasper SkyTram:
(in thousands)
Amount
Weighted Average Life
Operating licenses
$
13,555
27 years
Trade name
209
5 years
Total
$
13,764
27 years
Transaction costs associated with the acquisition were $
0.4
million during 2024, which are included in “Selling, general, and administrative expenses” in the Condensed Consolidated Statements of Operations. These assets have been included in the condensed consolidated financial statements from the date of acquisition.
NOTE 5.
DISCONTINUED OPERATIONS
On October 20, 2024, Pursuit (formerly known as Viad Corp) entered into a Purchase Agreement with Truelink Capital, pursuant to which Truelink Capital agreed to purchase all of the outstanding equity interests held by the Company in its subsidiaries comprising the GES Business. On December 31, 2024, we completed the sale of the GES Business to Truelink Capital and relaunched as Pursuit Attractions and Hospitality, Inc., a standalone attractions and hospitality company with a singular focus on delivering unforgettable experiences in iconic destinations.
We determined that the sale of the GES Business met the criteria under ASC 205-20 to be classified as a discontinued operation as the sale represented a strategic shift that had a significant effect on our operations and financial results. Accordingly, the Condensed Consolidated Statements of Operations have been adjusted for all prior periods to reflect the GES Business as discontinued operations.
The following table summarizes the results of the GES Business presented within discontinued operations in the Condensed Consolidated Statements of Operations:
Three Months Ended
(in thousands, except per share data)
March 31, 2024
Revenue:
Services
$
197,946
Products
38,320
Total revenue
236,266
Costs and expenses:
Cost of services
188,439
Cost of products
32,432
Interest expense, net
8,923
Other expense, net
128
Restructuring charges
116
Total costs and expenses
230,038
Income from discontinued operations before income taxes
6,228
Income tax expense
2,541
Income from discontinued operations of the GES Business
$
3,687
Loss from discontinued operations of previously sold operations
(
67
)
Income from discontinued operations
$
3,620
(1)
On December 31, 2024, in connection with the sale of the GES Business, we terminated and repaid in full all outstanding obligations (approximately $
393
million) due under our previous $
500
million credit facility with Bank of America, N.A. as administrative agent (the “2021 Credit Facility”) and all related liens and security interests were terminated, discharged and released. In accordance with Accounting Standards Codification (“ASC”) 205-20,
Presentation of Financial Statements – Discontinued Operations
, we elected to allocate interest expense to discontinued operations for the 2021 Credit Facility and the related debt issuance costs that were not directly attributable to the GES Business. All of the interest expense and related debt issuance costs of the $
400
million term loan were allocated to discontinued operations, and interest expense and debt issuance costs related to the $
170
million revolving credit facility were allocated based on a ratio of net assets of the GES Business to the sum of our consolidated net assets and consolidated debt. We allocated interest expense to discontinued operations of $
9.1
million during the three months ended March 31, 2024.
12
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
We incurred transaction costs of $
0.9
million in connection with the sale of the GES Business during the three months ended March 31, 2024, which are included in discontinued operations. These costs primarily include third-party advisory, consulting, legal, and professional fees.
NOTE 6.
INVENTORIES
We state inventories at the lower of cost or net realizable value, with cost determined using the average cost method. Inventories consist primarily of products for resale, including retail, food, and beverage. Total inventories was
$
11.3
million
as of March 31, 2025
and $
10.0
million as of
December 31, 2024
.
NOTE 7.
OTHER CURRENT ASSETS
Other current assets consisted of the following:
March 31,
December 31,
(in thousands)
2025
2024
Deferred proceeds from sale of GES Business
$
25,000
$
25,000
Prepaid taxes
7,974
2,386
Restricted cash
3,617
6,355
Insurance receivable
2,852
8,806
Prepaid vendor payments
2,013
1,708
Prepaid other
2,883
1,279
Other
625
2,073
Other current assets
$
44,964
$
47,607
NOTE 8.
PROPERTY AND EQUIPMENT, NET
Property and equipment consisted of the following:
March 31,
December 31,
(in thousands)
2025
2024
Land and land interests
$
31,329
$
31,332
Buildings and leasehold improvements
437,664
436,815
Equipment and other
269,387
258,677
Gross property and equipment
738,380
726,824
Accumulated depreciation
(
258,802
)
(
248,691
)
Property and equipment, net (excluding finance leases)
479,578
478,133
Finance lease ROU assets, net
50,008
48,103
Property and equipment, net
$
529,586
$
526,236
Depreciation expense was
$
9.8
million
during the three months ended March 31, 2025 and
$
8.7
million
during the three months ended March 31, 2024
.
NOTE 9.
OTHER INVESTMENTS AND ASSETS
Other investments and assets consisted of the following:
March 31,
December 31,
(in thousands)
2025
2024
Other mutual funds
$
5,212
$
5,258
Self-insured liability receivable
1,231
1,231
Other
323
328
Other investments and assets
$
6,766
$
6,817
13
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 10.
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
The changes in the carrying amount of goodwill are as follows:
(in thousands)
Balance at December 31, 2024
$
103,321
Foreign currency translation adjustments
148
Balance at March 31, 2025
$
103,469
Goodwill is tested for impairment at the reporting unit level on an annual basis as of October 31, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. We use a discounted expected future cash flow methodology (income approach) to estimate the fair value of our reporting units for purposes of goodwill impairment testing. We do not believe there have been any significant changes to the outlook for the future years or to the risk profile of our reporting units that would indicate that goodwill impairment testing should have been performed as of March 31, 2025.
Other intangible assets consisted of the following:
March 31, 2025
December 31, 2024
(in thousands)
Remaining Useful Life
(Years)
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Intangible assets subject to amortization:
Customer contracts and relationships
9.2
$
5,474
$
(
2,556
)
$
2,918
$
5,475
$
(
2,453
)
$
3,022
Operating contracts and licenses
25.9
54,148
(
5,955
)
48,193
52,697
(
5,505
)
47,192
In-place lease
31.5
13,584
(
2,164
)
11,420
13,588
(
2,069
)
11,519
Tradenames
3.6
4,990
(
3,078
)
1,912
4,992
(
2,920
)
2,072
Other
0.7
10
(
9
)
1
10
(
9
)
1
Total amortized intangible assets
78,206
(
13,762
)
64,444
76,762
(
12,956
)
63,806
Indefinite-lived intangible assets:
Business licenses
560
—
560
560
—
560
Other intangible assets, net
$
78,766
$
(
13,762
)
$
65,004
$
77,322
$
(
12,956
)
$
64,366
Intangible asset amortization expense (excluding amortization expense of ROU assets) was
$
0.7
million
during the three months ended March 31, 2025 and
$
0.6
million
during the three months ended March 31, 2024.
At
March 31, 2025, the estimated future amortization expense related to intangible assets subject to amortization is as follows:
(in thousands)
Year ending December 31,
Remainder of 2025
$
2,333
2026
2,987
2027
2,613
2028
2,592
2029
2,481
Thereafter
51,438
Total
$
64,444
14
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 11.
OTHER CURRENT LIABILITIES
Other current liabilities consisted of the following:
March 31,
December 31,
(in thousands)
2025
2024
Continuing operations:
Accrued concession fees
$
6,544
$
6,525
Income taxes payable
4,418
3,052
Deposit payable
3,052
—
Accrued restructuring
3,040
2,590
Current portion of pension and postretirement liabilities
2,155
2,256
Other
4,657
4,103
Total continuing operations
23,866
18,526
Discontinued operations:
Taxes payable
8,235
8,437
Self-insured liability
104
237
Environmental remediation liabilities
31
31
Other
—
1,701
Total discontinued operations
8,370
10,406
Total other current liabilities
$
32,236
$
28,932
NOTE 12.
OTHER DEFERRED ITEMS AND LIABILITIES
Other deferred items and liabilities consisted of the following:
March 31,
December 31,
(in thousands)
2025
2024
Continuing operations:
Foreign deferred tax liability
$
23,809
$
23,230
Self-insured liability
1,429
1,097
Accrued compensation
787
6,198
Other
1,511
1,150
Total continuing operations
27,536
31,675
Discontinued operations:
Environmental remediation liabilities
1,062
1,067
Self-insured liability
191
367
Total discontinued operations
1,253
1,434
Total other deferred items and liabilities
$
28,789
$
33,109
15
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 13.
DEBT AND FINANCE LEASE OBLIGATIONS
The components of debt and finance obligations consisted of the following:
March 31,
December 31,
(in thousands, except interest rates)
2025
2024
2025 Revolving Credit Facility - Pursuit borrowings
6.2
% interest rate at March 31, 2025, due through 2030
(1)
$
2,800
$
—
2025 Revolving Credit Facility - Brewster, Inc. borrowings
5.7
% interest rate at March 31, 2025, due through 2030
(1)
2,224
—
Jasper Term Loan -
6.5
% interest rate at March 31, 2025 and December 31, 2024, due through 2028
11,523
11,583
Flyover Iceland Credit Facility -
8.0
% interest rate at March 31, 2025 and
8.4
% at December 31, 2024, due through 2029
(1)
3,382
3,434
Less unamortized debt issuance costs
(
1,792
)
(
271
)
Total debt
18,137
14,746
Finance lease obligations
-
9.2
% weighted-average interest rate at March 31, 2025 and December 31, 2024, due through 2067
(2)
59,010
58,567
Total debt and finance lease obligations
(3)(4)
77,147
73,313
Current portion
(
1,952
)
(
1,870
)
Long-term debt and finance lease obligations
$
75,195
$
71,443
(1)
Represents the weighted-average interest rate in effect as of the end of the respective periods, including any applicable margin. The interest rates do not include amortization of debt issuance costs, or commitment fees.
(2)
Refer to Note 20
–
Leases and Other
for additional information
.
(3)
The estimated fair value of total debt and finance leases was $
76.7
million as of
March 31, 2025
and $
70.6
million as of
December 31, 2024. The fair value of debt was estimated by discounting the future cash flows using rates currently available for debt of similar terms and maturity, which is a Level 2 measurement. Refer to Note 14 –
Fair Value Measurements
for additional information.
(4)
Cash paid for interest on debt was $1.9 million during the
three months ended March 31, 2025
and $
12.0
million during the
three months ended March 31, 2024
.
2025 Credit Agreement
On January 3, 2025, Pursuit entered into a Credit Agreement (the “2025 Credit Agreement”), along with Brewster Inc., an Alberta corporation and a co-borrower. The Credit Agreement provides for a $
200
million revolving credit facility (the “2025 Revolving Credit Facility”), available in U.S. dollars, Canadian dollars, Euros and Pounds sterling, with a maturity of January 3, 2030. Proceeds from the 2025 Revolving Credit Facility will provide us with additional funds for operations, growth initiatives, acquisitions and other general corporate purposes.
The 2025 Credit Agreement carries financial covenants as follows:
•
Maintain a total net leverage ratio no greater than
2.50
to
1.00
; and
•
Maintain a fixed-charge coverage ratio no less than
1.25
to
1.00
.
As of March 31, 2025, we were in compliance with all financial covenants under the 2025 Revolving Credit Facility.
Interest rates for U.S. dollar borrowings are based on the Secured Overnight Financing Rate (“SOFR”). We also have the option to borrow U.S. funds based on the “Base Rate”, which for any day is the highest of the Fed Funds Rate plus
0.50
%, Bank of America’s publicly-announced “prime rate,” and SOFR plus
1.00
%.
Interest rates for Canadian dollar borrowings are based on the Canadian Overnight Repo Rate Average (“CORRA”) plus an additional credit spread adjustment of
0.2954
7% for a borrowing period of one-month’s duration or
0.32138
% for three-month’s duration. We also have the option to borrow Canadian funds based on the “Canadian Prime Rate”, which for any day is the higher of the per annum rate of interest designated by Bank of America (acting through its Canada branch) from time to time as its prime rate for commercial loans made by it in Canada in Canadian dollars, and the CORRA Rate for one-month’s duration as of such day, plus
1.00
%.
16
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Credit spreads for borrowings are based on our total net leverage ratio and range from
1.75
% to
2.25
% for SOFR and CORRA borrowings and from
0.75
% to
1.25
% for Base Rate and Canadian Prime Rate borrowings. Additionally, a 1.00% floor applies to the Base Rate and a 0% floor applies to the Canadian Prime Rate.
The 2025 Revolving Credit Facility includes an undrawn fee ranging from
0.25
% to
0.35
% that is based on our total net leverage ratio.
As of March 31, 2025, capacity remaining under the 2025 Revolving Credit Facility was $
189.3
million, reflecting $
200
million total facility size, less $
5.0
million of outstanding borrowing and $
5.7
million in outstanding letters of credit.
Interest rates for borrowings in Pound Sterling are based on the Sterling Overnight Index Average and interest rates for borrowings in Euro are based on the Euro Interbank Offered Rate (“EURIBOR”), plus applicable credit spreads. No such borrowings had been made as of March 31, 2025.
Jasper Credit Facility
Effective May 16, 2023, Pursuit entered into a $
27.0
million Canadian dollar (approximately $
20.0
million U.S. dollars) credit facility (the “Jasper Credit Facility”). The Jasper Credit Facility provides for a $
17.0
million Canadian dollar term loan (“Jasper Term Loan”) and a $
10.0
million Canadian dollar revolving credit facility (“Jasper Revolving Credit Facility”). The Jasper Credit Facility matures on January 31, 2028.
The Jasper Credit Facility carries financial covenants as follows:
•
Maintain a pre-compensation fixed-charge coverage ratio of not less than
1.30
to
1.00
; and
•
Maintain a post-compensation fixed-charge coverage ratio of not less than
1.10
to
1.00
.
As of March 31, 2025, we were in compliance with all financial covenants under the Jasper Credit Facility.
Jasper Term Loan
The proceeds of the Jasper Term Loan reflect the outstanding balance under our prior Forest Park construction loan facility at the time it was converted to the Jasper Term Loan of $
16.8
million Canadian dollars. The Jasper Term Loan bears interest at a
6.5
% fixed rate.
Jasper Revolving Credit Facility
The proceeds of the Jasper Revolving Credit Facility are used to fund capital improvements. As of March 31, 2025
, capacity remaining under the Jasper Revolving Credit Facility was $
10.0
million Canadian dollars (approximately $
7.0
million U.S. dollars). The Jasper Revolving Credit Facility bears interest at the Canadian Prime Rate plus
2.25
%.
Flyover Iceland Credit Facility
Effective February 15, 2019, Flyover Iceland ehf., (“Flyover Iceland”) a wholly-owned subsidiary of Esja, entered into a credit agreement with a €
5.0
million (approximately $
5.6
million U.S. dollars) credit facility (the “Flyover Iceland Credit Facility”) with an original maturity date of
March 1, 2022
. The loan proceeds were used to complete the development of the Flyover Iceland attraction. The loan bears interest at the three month
Euro Interbank Offered Rate (“
EURIBOR”) plus
5.5
%.
Flyover Iceland entered into an addendum effective
December 1, 2021
wherein the principal payments were deferred for twelve months beginning December 1, 2021, with equal quarterly principal payments due beginning
December 1, 2022
and the maturity date was extended to September 1, 2027.
On February 27, 2024, Flyover Iceland reached an agreement to amend and extend the Flyover Iceland Credit Facility, wherein the principal payments are deferred for six months beginning March 1, 2024, with equal quarterly principal payments due beginning September 1, 2024 and a maturity date of September 1, 2029. The amended terms also include a modification of the financial covenants and an adjustment of the interest rate to three month EURIBOR plus
5.5
%, decreasing to
4.9
% once Flyover Iceland’s leverage ratio is below
4.00
to
1.00
.
17
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 14.
FAIR VALUE MEASUREMENTS
The fair value of an asset or liability is defined as the price that would be received by selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value guidance requires an entity to maximize the use of quoted prices and other observable inputs and minimize the use of unobservable inputs when measuring fair value, and also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value as follows:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value.
The fair value of assets and liabilities measured at fair value on a recurring basis are as follows:
Fair Value Measurements at Reporting Date Using
(in thousands)
March 31, 2025
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Other mutual funds
(1)
$
5,212
$
5,212
$
—
$
—
Total assets at fair value on a recurring basis
$
5,212
$
5,212
$
—
$
—
Fair Value Measurements at Reporting Date Using
(in thousands)
December 31, 2024
Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Other mutual funds
(1)
$
5,258
$
5,258
$
—
$
—
Total assets at fair value on a recurring basis
$
5,258
$
5,258
$
—
$
—
(1)
We include other mutual funds in “Other investments and assets” in the Condensed Consolidated Balance Sheets.
The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. Refer to Note 13
–
Debt and Finance Lease Obligations
for the estimated fair value of debt obligations.
18
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 15.
INCOME (LOSS) PER SHARE
The components of basic and diluted loss per share are as follows:
Three Months Ended
March 31,
(in thousands, except per share data)
2025
2024
Loss from continuing operations
$
(
31,221
)
$
(
29,863
)
Less: Net loss attributable to non-redeemable noncontrolling interest
216
923
Less: Net loss attributable to redeemable noncontrolling interest
—
203
Net loss from continuing operations attributable to Pursuit
(
31,005
)
(
28,737
)
Convertible preferred stock dividends paid in cash
—
(
1,950
)
Net loss from continuing operations allocated to Pursuit common stockholders (basic)
$
(
31,005
)
$
(
30,687
)
Income (loss) from discontinued operations, net of tax
(
131
)
3,620
Net loss allocated to Pursuit common stockholders - basic and diluted
$
(
31,136
)
$
(
27,067
)
Basic and diluted weighted-average outstanding common shares
28,113
21,029
Income (loss) per common share:
Basic:
Continuing operations
$
(
1.10
)
$
(
1.46
)
Discontinued operations
(
0.01
)
0.17
Basic loss attributable to Pursuit common stockholders:
$
(
1.11
)
$
(
1.29
)
Diluted
(1)
:
Continuing operations
$
(
1.10
)
$
(
1.46
)
Discontinued operations
(
0.01
)
0.17
Diluted loss attributable to Pursuit common stockholders:
$
(
1.11
)
$
(
1.29
)
(1)
Diluted income (loss) per common share is calculated using the more dilutive of the two-class method or if-converted method. The two-class method uses net income (loss) available to common stockholders and assumes conversion of all potential shares other than the participating securities. The if-converted method uses net income (loss) available to common stockholders and assumes conversion of all potential shares including the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock. We apply the two-class method in calculating income (loss) per common share as unvested share-based payment awards that contain nonforfeitable rights to dividends and preferred stock are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating income (loss) per share. The adjustment to the carrying value of the redeemable noncontrolling interest is reflected in income (loss) per common share.
We excluded the following weighted-average potential common shares from the calculations of diluted net income (loss) per common share during the applicable periods because their inclusion would have been anti-dilutive:
Three Months Ended
March 31,
(in thousands)
2025
2024
Convertible preferred stock
—
6,674
Unvested restricted share-based awards
203
281
Unvested performance share-based awards
258
179
Stock options
164
164
19
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 16.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Changes in
accumulated other comprehensive income (loss) (“AOCI”) by component are as follows:
Unrecognized Net Actuarial Loss and Prior Service Credit, Net
Unrealized Gain (Loss) on Interest Rate Cap
Accumulated
Other
Comprehensive
Income (Loss)
Balance at December 31, 2023
$
(
35,340
)
$
(
4,403
)
$
(
651
)
$
(
40,394
)
Other comprehensive income (loss) before reclassifications
(
7,502
)
—
150
(
7,352
)
Amounts reclassified from AOCI, net of tax
—
104
68
172
Net other comprehensive income (loss)
(
7,502
)
104
218
(
7,180
)
Balance at March 31, 2024
$
(
42,842
)
$
(
4,299
)
$
(
433
)
$
(
47,574
)
Amounts reclassified from AOCI that relate to our defined benefit pension and postretirement plans include the amortization of prior service costs and actuarial net losses recognized during each period presented. We recorded these costs as components of net periodic cost for each period presented. Refer to Note 18 –
Pension and Postretirement Benefits
for additional information.
NOTE 17.
INCOME TAXES
The effective tax rate was
5.6
%
for the three months ended March 31, 2025 and
5.2
%
for the three months ended March 31, 2024.
The income tax provision was computed based on our estimated annualized effective tax rate and the full-year forecasted income or loss plus the tax impact of unusual, infrequent, or nonrecurring significant items during the period. The amount and change of pre-tax income and loss recognized between jurisdictions impacted the reported effective tax rate for the three months ended March 31, 2025, as we do not recognize a tax benefit primarily on losses in the United States where we have a valuation allowance, while recognizing tax expense in Canada and Iceland.
During the three months ended March 31, 2024, we recorded a $
0.5
million expense to record estimated withholding taxes associated with repatriating all of Sky Lagoon’s earnings back to the United States and a valuation allowance against the tax credit generated from this withholding tax.
We paid net cash for income taxes of $
2.8
million during the three months ended March 31, 2025, of which $
2.3
million was paid to Canadian taxing authorities. We paid net cash for income taxes of $
6.1
million during the three months ended March 31, 2024, of which $
5.9
million was paid to Canadian taxing authorities.
20
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 18.
PENSION AND POSTRETIREMENT BENEFITS
The components of net periodic benefit cost of our pension and postretirement benefit plans for the
three months ended March 31, 2025 and 2024 consist of the following:
Domestic Plans
Pension Plans
Postretirement Benefit Plans
Foreign Pension Plans
(in thousands)
2025
2024
2025
2024
2025
2024
Service cost
$
—
$
—
$
5
$
6
$
—
$
51
Interest cost
208
201
109
91
72
78
Expected return on plan assets
(
63
)
(
57
)
—
—
(
50
)
(
80
)
Amortization of prior service credit
(
10
)
(
10
)
8
19
10
—
Recognized net actuarial loss (gain)
63
79
(
24
)
(
38
)
7
24
Net periodic benefit cost
$
198
$
213
$
98
$
78
$
39
$
73
We expect to contribute $
2.0
million to our funded pension plans, $
1.4
million to our unfunded pension plans, and $
0.8
million to our postretirement benefit plans in 2025. During the
three months ended March 31, 2025
, we contributed $
0.1
million to our funded pension plans, $
0.2
million to our unfunded pension plans, and $
0.2
million to our postretirement benefit plans.
NOTE 19.
RESTRUCTURING CHARGES
Changes to the restructuring liability by major restructuring activity are as follows:
(in thousands)
Severance &
Employee
Benefits
Balance at December 31, 2024
$
3,102
Restructuring charges
38
Adjustment to liability
—
Balance at March 31, 2025
$
3,140
NOTE 20.
LEASES AND OTHER
The balance sheet presentation of our operating and finance leases is as follows:
March 31,
December 31,
(in thousands)
Classification on the Condensed Consolidated Balance Sheet
2025
2024
Assets:
Operating lease ROU assets
Operating lease ROU assets
$
27,561
$
26,765
Finance lease ROU assets, net
Property and equipment, net
50,008
48,103
Total lease ROU assets
$
77,569
$
74,868
Liabilities:
Current:
Operating lease obligations
Operating lease obligations
$
3,737
$
3,084
Finance lease obligations
Current portion of debt and finance obligations
928
883
Noncurrent:
Operating lease obligations
Long-term operating lease obligations
36,481
36,336
Finance lease obligations
Long-term debt and finance obligations
58,082
57,684
Total lease liabilities
$
99,228
$
97,987
21
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The components of lease expense consisted of the following:
Three Months Ended
March 31,
(in thousands)
2025
2024
Finance lease cost:
Amortization of ROU assets
$
483
$
518
Interest on lease liabilities
1,329
1,358
Operating lease cost
1,647
1,664
Short-term lease cost
486
418
Variable lease cost
30
31
Total lease cost, net
$
3,975
$
3,989
Other information related to operating and finance leases are as follows:
Three Months Ended
March 31,
(in thousands)
2025
2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$
1,682
$
1,619
Operating cash flows from finance leases
$
1,520
$
1,488
Financing cash flows from finance leases
$
221
$
309
ROU assets obtained in exchange for lease obligations:
Operating leases
$
1,721
$
240
March 31,
December 31,
2025
2024
Weighted-average remaining lease term (years):
Operating leases
10.34
10.82
Finance leases
34.60
35.02
Weighted-average discount rate:
Operating leases
7.27
%
7.29
%
Finance leases
9.22
%
9.22
%
As of
March 31, 2025, the estimated future minimum lease payments under non-cancellable leases, excluding variable leases and variable non-lease components, are as follows:
(in thousands)
Operating Leases
Finance Leases
Total
Remainder of 2025
$
4,851
$
4,692
$
9,543
2026
6,088
6,271
12,359
2027
5,231
6,149
11,380
2028
5,050
5,987
11,037
2029
5,077
5,987
11,064
Thereafter
33,114
169,389
202,503
Total future lease payments
59,411
198,475
257,886
Less: Amount representing interest
(
19,193
)
(
139,465
)
(
158,658
)
Present value of minimum lease payments
40,218
59,010
99,228
Current portion
(
3,737
)
(
928
)
(
4,665
)
Long-term portion
$
36,481
$
58,082
$
94,563
22
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
As of
March 31, 2025, the estimated future minimum rental income under non-cancellable leases, which includes rental income from facilities that we own, are as follows:
(in thousands)
Remainder of 2025
$
1,471
2026
1,650
2027
966
2028
790
2029
649
Thereafter
1,415
Total minimum rents
$
6,941
NOTE 21.
LITIGATIONS, CLAIMS, CONTINGENCIES, AND OTHER
Litigation and Regulatory Proceedings
We are plaintiffs or defendants in various actions, proceedings, and pending claims, some of which involve, or may involve, compensatory, punitive, or other damages. Litigation is subject to many uncertainties and it is possible that some of the legal actions, proceedings, or claims could be decided against us. Although the amount of liability as of March 31, 2025 with respect to unresolved legal matters is not ascertainable, we believe that any resulting liability, after taking into consideration amounts already provided for and insurance coverage, will not have a material effect on our business, financial position, or results of operations.
On July 18, 2020, one of our off-road Ice Explorers was involved in an accident while enroute to the Athabasca Glacier, resulting in three fatalities and multiple other serious injuries. We immediately reported the accident to our relevant insurance carriers, who have supported our investigation and subsequent claims relating to the accident. In May 2023, we resolved charges from the Canadian office of Occupational Health and Safety in relation to this accident, resulting in fines and related payments in an aggregate amount of $
0.5
million Canadian dollars (approximately $
0.3
million U.S. dollars). We continue to manage our legal defense of various claims from the victims and their families. In addition, we believe that our reserves and, subject to customary deductibles, our insurance coverage is sufficient to cover potential claims related to this accident.
We are subject to various United States federal, state, and foreign laws and regulations governing the prevention of pollution and the protection of the environment in the jurisdictions in which we have or had operations. If we fail to comply with these environmental laws and regulations, civil and criminal penalties could be imposed, and we could become subject to regulatory enforcement actions in the form of injunctions and cease and desist orders. As is the case with many companies, we also face exposure to actual or potential claims and lawsuits involving environmental matters relating to our past operations. As of March 31, 2025, we had recorded environmental remediation liabilities of
$
1.1
million
related to previously sold operations. Although we are a party to certain environmental disputes, we believe that any resulting liabilities, after taking into consideration amounts already provided for and insurance coverage, will not have a material effect on our financial position or results of operations.
Guarantees
As of March 31, 2025, we had certain obligations under guarantees to third parties. These guarantees are not subject to liability recognition in the condensed consolidated financial statements and relate to leased facilities and equipment leases entered into by our subsidiary operations. We would generally be required to make payments to the respective third parties under these guarantees in the event that the related subsidiary could not meet its own payment obligations. The maximum potential amount of future payments that we would be required to make under all guarantees existing as of March 31, 2025
would be approximately $
43.6
million. These guarantees relate to our leased equipment and facilities through
December 2038
. There are
no
recourse provisions that would enable us to recover from third parties any payments made under the guarantees. Furthermore, there are no collateral or similar arrangements pursuant to which we could recover payments.
23
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Following the sale of the GES Business, certain facility lease guarantees remained in place. Although Truelink Capital has agreed to indemnify us for any lease obligations, if Truelink Capital fails to make the required payments under the facility leases, we could be required to satisfy those obligations. Accordingly, we recorded a lease liability for the estimated fair value of the facility lease guarantees of $
0.6
million, which will be amortized over the remaining lease term through 2033. As of March 31, 2025, the lease liability balance was $
0.6
million.
NOTE 22.
NONCONTROLLING INTERESTS - REDEEMABLE AND NON-REDEEMABLE
Redeemable noncontrolling interest
On November 3, 2017, we acquired the controlling interest (
54.5
% of the common stock) in Esja, a private corporation in Reykjavik, Iceland. Subsequent to additional capital contributions, our equity ownership increased to
56.4
% as of March 31, 2025. Through Esja and its wholly-owned subsidiary, we operate the Flyover Iceland attraction.
The minority Esja shareholders had the right to sell (or “put”) their Esja shares to us based on a multiple of 5.0x EBITDA as calculated on the trailing 12 months from the most recently completed quarter before the put option exercise. The put option was only exercisable after August 2022 (the “Reference Date”), and in the event the Flyover Iceland attraction had earned a minimum of €3.25 million in unadjusted EBITDA during the most recent fiscal year and during the trailing 12-month period prior to exercise (the “Put Option Condition”). The put option was exercisable during a period of 12 months following the Reference Date (the “Option Period”) if the Put Option Condition had been met. If the Put Option Condition had not been met during the first Option Period, the Reference Date was extended for an additional 12 months up to three times. If the Flyover Iceland attraction had not achieved the Put Option Condition by December 31, 2024, the put option would expire. As of December 31, 2024, the Flyover Iceland attraction did not achieve the Put Option Condition and such option expired. The redeemable noncontrolling interest owned by Esja was reclassified to non-redeemable noncontrolling interest and is presented within stockholders’ equity in the Condensed Consolidated Balance Sheets.
The noncontrolling interest’s carrying value was determined by the fair value of the noncontrolling interest as of the acquisition date and the noncontrolling interest’s share of the subsequent net income or loss. This value was benchmarked against the redemption value of the sellers’ put option. The carrying value was adjusted to the redemption value, provided that it did not fall below the initial carrying value, as determined by the purchase price allocation. We made a policy election to reflect any changes caused by such an adjustment to retained earnings (accumulated deficit), rather than to current earnings (loss).
Non-redeemable noncontrolling interest
Non-redeemable noncontrolling interest represents the portion of equity in a subsidiary that is not attributable, directly or indirectly, to us. Our non-redeemable noncontrolling interest relates to the equity ownership interest that we do not own.
Changes in the non-redeemable noncontrolling interest are as follows:
(in thousands)
Glacier Park, Inc.
Brewster
(1)
Sky Lagoon
Flyover Iceland
Total
Balance at December 31, 2024
$
19,998
$
54,923
$
12,563
$
3,379
$
90,863
Net income (loss) attributable to non-redeemable noncontrolling interest
(
950
)
(
864
)
1,859
(
261
)
(
216
)
Foreign currency translation adjustments
—
(
14
)
699
159
844
Balance at March 31, 2025
$
19,048
$
54,045
$
15,121
$
3,277
$
91,491
Equity ownership interest that we do not own
20
%
40
%
49
%
43.6
%
(1)
Includes Mountain Park Lodges and the Golden Skybridge at Brewster, part of the Banff Jasper Collection.
NOTE 23.
SEGMENT INFORMATION
On December 31, 2024, we completed the sale of our GES Business (“GES Sale”). Prior to the GES Sale, our three operating segments comprised Pursuit, GES Exhibitions, and Spiro. As a result of the GES Sale, the operating results and cash flows for the GES Business have been classified as discontinued operations within the consolidated financial statements for all periods presented. Refer to Note 5 –
Discontinued Operations
for additional information. In connection with the GES Sale, our Board of Directors appointed a new President and Chief Executive Officer, who is our chief operating decision maker (“CODM”).
24
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
An operating segment is defined as a component of an enterprise that engages in business activities for which discrete financial information is available and regularly reviewed by the CODM in deciding how to allocate resources and assess performance. Our CODM manages the business on a consolidated basis and accordingly we have a single operating and reportable segment. We derive our revenue through our collection of travel experiences including attractions and hospitality, along with integrated restaurants, retail, and transportation.
Our CODM assesses performance of our single reportable segment and decides how to allocate resources based on income (loss) from continuing operations, which is also reported on the Condensed Consolidated Statements of Operations as “Income (loss) from continuing operations.” Our CODM uses income (loss) from continuing operations to monitor actual results to our forecasted plan, which is used in assessing performance and in establishing management’s compensation.
The financial information, including significant single segment expense categories regularly provided to our CODM, are included in the following table including a reconciliation to loss from continuing operations:
Three Months Ended
March 31,
(in thousands)
2025
2024
Total revenue
$
37,579
$
37,231
Costs and expenses:
Cost of food, beverage, and retail products sold
$
2,285
$
2,537
Operating labor expenses
(1)
16,178
17,085
Other segment expenses
(2)
22,249
23,289
Selling, general, and administrative expenses
17,165
12,842
Depreciation and amortization
10,968
9,763
Interest expense, net
1,464
2,922
Other expense, net
319
310
Restructuring charges
38
—
Total costs and expenses
70,666
68,748
Loss from continuing operations before income taxes
(
33,087
)
(
31,517
)
Income tax benefit
(
1,866
)
(
1,654
)
Loss from continuing operations
$
(
31,221
)
$
(
29,863
)
(1)
Operating labor expenses consist of wages, incentives, benefits, and employer taxes.
(2)
Other segment expenses, exclusive of depreciation and amortization, primarily include insurance expense, royalty fees, utilities, operating lease expense, property tax expense, credit card fees and certain overhead expenses.
Additional information of our reportable segment is as follows:
Three Months Ended
March 31,
(in thousands)
2025
2024
Total assets
$
832,564
$
845,008
Depreciation
$
9,800
$
8,650
Amortization
$
1,168
$
1,113
Capital expenditures
$
9,899
$
16,390
NOTE 24.
SUBSEQUENT EVENT
Jasper Wildfires Insurance Proceeds Update
Subsequent to March 31, 2025, we received additional partial settlement payments of approximately $
1.8
million from the insurance company related to the Jasper wildfires. We are currently working with our insurance carriers to determine the extent of potential recoveries from our policies. Assessment of the full value of the loss is ongoing.
25
Item 2.
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
Forward-Looking Statements
This Quarterly Report on Form 10-Q (this “Form 10-Q”) contains a number of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words, and variations of words, such as “aim,” “anticipate,” “believe,” “could,” “deliver,” “estimate,” “expect,” “intend,” “may,” “might,” “outlook,” “plan,” “potential,” “seek,” “target,” “will,” and similar expressions are intended to identify our forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, initiatives, intentions, or goals also are forward-looking statements. These forward-looking statements are not historical facts and are subject to a host of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those in the forward-looking statements.
Important factors that could cause actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the following:
•
general economic and geopolitical uncertainty in key global markets and a worsening of global economic conditions;
•
seasonality of our businesses;
•
the competitive nature of the industries in which we operate;
•
travel industry disruptions;
•
changes in consumer tastes and preferences for recreational activities;
•
natural disasters, weather conditions, accidents, and other catastrophic events;
•
accidents and adverse incidents at our hotels and attractions;
•
sufficiency and cost of insurance coverage;
•
the impact of financial covenants on our operational and financial flexibility;
•
risks of new capital projects not being commercially successful;
•
our ability to fund capital expenditures;
•
our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;
•
failure to adapt to technological developments or industry trends
•
our inability to realize the strategic, financial or operational benefits from the sale of the Company’s former GES Exhibitions and Spiro reportable segments (the “GES Business”);
•
conducting business globally;
•
our exposure to currency exchange rate fluctuations;
•
liabilities relating to prior and discontinued operations;
•
the importance of key members to our business;
•
labor shortages;
•
our exposure to cybersecurity attacks and threats;
•
compliance with laws governing the storage, collection, handling, and transfer of personal data and our exposure to legal claims and fines for data breaches or improper handling of such data;
•
our exposure to litigation in the ordinary course of business;
•
changes in federal, state, local or foreign tax laws;
•
extensive environmental requirements;
•
volatility in our stock price; and
•
stock price and trading volumes affected by reports issued by securities industry analysts.
For a more complete discussion of the risks and uncertainties that may affect our business or financial results, refer to Part 1, Item 1A –
Risk Factors
of our 2024 Form 10-K. We disclaim and do not undertake any obligation to update or revise any forward-looking statement except as required by applicable law or regulation.
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with our 2024 Form 10-K and the condensed consolidated financial statements and related notes included in this Form 10-Q. The MD&A is intended to assist in understanding our financial condition and results of operations.
Overview
We are an attractions and hospitality company that owns and operates a collection of inspiring and unforgettable experiences in iconic destinations in the United States, Canada, and Iceland. Our elevated hospitality experiences include 15 world-class point-of-interest attractions and 28 distinctive lodges, along with integrated restaurants, retail and transportation that enable visitors to discover and connect with stunning national parks and renowned global travel locations.
26
Sale of the GES Business and Viad Corp Transformation into Pursuit
On October 20, 2024, Pursuit (formerly known as Viad Corp) entered into an Equity Purchase Agreement (the “Purchase Agreement”) with TL Voltron, LLC, a Delaware limited liability company (“Truelink Capital”), pursuant to which Truelink Capital agreed to purchase all of the outstanding equity interests held by the Company in its subsidiaries comprising the GES Business. The aggregate purchase price was $535 million, consisting of a base purchase price of $510 million, subject to customary adjustments for cash, indebtedness, working capital and transaction expenses, and a deferred purchase price of $25 million payable by Truelink Capital to the Company one year after the closing date.
On December 31, 2024, we completed the sale of the GES Business to Truelink Capital and relaunched Viad Corp as Pursuit Attractions and Hospitality, Inc., a standalone attractions and hospitality company with a singular focus on delivering unforgettable experiences in iconic destinations. We began trading under a new NYSE ticker symbol, PRSU, on January 2, 2025.
We determined that the sale of the GES Business met the criteria to be classified as a discontinued operation. Accordingly, we have accounted for the GES Business as a discontinued operation in this Quarterly Report on Form 10-Q. All amounts and disclosures for all periods presented reflect only the continuing operations of the Company unless otherwise noted. Refer to Note 5 –
Discontinued Operations
of the Notes to Condensed Consolidated Financial Statements (Part I, Item 1 of this Form 10-Q) for further information.
Seasonality
Our peak activity occurs during the summer months. During 2024, 77% of our revenue was earned in the second and third quarters.
Results of Operations
The following table presents total revenue by lines of business:
Three Months Ended
March 31,
(in thousands)
2025
2024
%
Change
Revenue
(1)
:
Attractions
$
23,992
$
22,980
4.4
%
Hospitality
11,194
11,580
(3.3
)%
Transportation
1,795
1,928
(6.9
)%
Other
598
743
(19.5
)%
Total revenue
$
37,579
$
37,231
0.9
%
(1)
Revenue by line of business does not agree to Note 2 –
Revenue and Related Contract Liabilities
of the Notes to Condensed Consolidated Financial Statements (Part I, Item 1 of this Form 10-Q) as the amounts in the above table include product revenue from food and beverage and retail operations within each line of business.
Attractions revenue
increased $1.0 million primarily due to a 1.7% increase in the number of visitors at our year-round attractions, as well as higher revenue per attraction visitor of 2.7%, offset in part by a $1.3 million foreign exchange negative impact. Our Flyover Chicago attraction, which opened on March 1, 2024, contributed incremental revenue of $1.0 million during the three months ended March 31, 2025.
Hospitality revenue
decreased $0.4 million primarily due to a 3.5% decrease in rooms revenue. This decrease was driven by fewer room nights available at the Forest Park Woodland Wing resulting from refresh renovations and unfavorable foreign exchange impacts, offset in part by an increase in Revenue per Available Room (“RevPAR”).
Performance Measures
We use the following key business metrics to evaluate the performance of Pursuit’s attractions business:
•
Number of visitors.
The number of visitors allows us to assess the volume of tickets sold at each attraction during the period.
•
Revenue per attraction visitor.
Revenue per attraction visitor is calculated as total attractions revenue divided by the total number of visitors at all Pursuit attractions during the period. Total attractions revenue includes ticket sales and ancillary revenue generated by attractions, such as food and beverage and retail revenue. Total attractions revenue per visitor measures the total spend per visitor that attraction properties are able to capture, which is important to the profitability of the attractions business.
•
Effective ticket price.
Effective ticket price is calculated as revenue from the sale of attraction tickets divided by the total number of visitors at all comparable Pursuit attractions during the period.
27
We use the following key business metrics, common in the hospitality industry, to evaluate Pursuit’s hospitality business:
•
Revenue per Available Room
RevPAR is calculated as total rooms revenue divided by the total number of room nights available for all comparable Pursuit hospitality properties during the period. Total rooms revenue does not include non-rooms revenue, which consists of ancillary revenue generated by hospitality properties, such as food and beverage and retail revenue. RevPAR measures the period-over-period change in rooms revenue per available room for comparable hospitality properties. RevPAR is affected by average daily rate and occupancy, which have different implications on profitability.
•
Average Daily Rate (“ADR”)
.
ADR is calculated as total rooms revenue divided by the total number of room nights sold for all comparable Pursuit hospitality properties during the period. ADR is used to assess the pricing levels that the hospitality properties are able to realize. Increases in ADR lead to increases in rooms revenue with no substantial effect on variable costs, therefore having a greater impact on margins than increases in occupancy.
•
Occupancy.
Occupancy is calculated as the total number of room nights sold divided by the total number of room nights available for all comparable Pursuit hospitality properties during the period. Occupancy measures the utilization of the available capacity at the hospitality properties. Increases in occupancy result in increases in rooms revenue and additional variable operating costs (including housekeeping services, utilities, and room amenity costs), as well as increases in ancillary non-rooms revenue (including food and beverage and retail revenue).
The following table provides our key performance indicators:
Three Months Ended
Three Months Ended
March 31, 2025
March 31, 2024
% Change
As
Reported
Same-Store
(1)
As
Reported
Same-Store
(1)
As
Reported
Same-Store
(1)
Attractions Key Performance Indicators:
Number of visitors
459,460
390,784
451,808
416,148
1.7
%
(6.1
)%
Ticket revenue
(in thousands)
$
18,952
$
17,237
$
17,805
$
16,761
6.4
%
2.8
%
Effective ticket price
$
41.25
$
44.11
$
39.41
$
40.28
4.7
%
9.5
%
Attractions revenue
(in thousands)
$
23,992
$
22,209
$
22,980
$
21,678
4.4
%
2.4
%
Revenue per attraction visitor
$
52.22
$
56.83
$
50.86
$
52.09
2.7
%
9.1
%
Hospitality Key Performance Indicators:
Room nights available
109,115
101,558
117,310
103,478
(7.0
)%
(1.9
)%
Rooms revenue
(in thousands)
$
7,339
$
6,862
$
7,604
$
6,439
(3.5
)%
6.6
%
RevPAR
$
67.26
$
67.56
$
64.82
$
62.22
3.8
%
8.6
%
Occupancy
59.3
%
59.2
%
57.7
%
58.2
%
1.6
%
1.0
%
ADR
$
113.38
$
114.10
$
112.40
$
107.00
0.9
%
6.6
%
Hospitality revenue
(in thousands)
$
11,194
$
10,343
$
11,580
$
9,737
(3.3
)%
6.2
%
(1)
Same-Store metrics include only attractions and lodging properties that we operated at full capacity, considering seasonal closures, for the entirety of the 2025 and 2024 periods presented. Apgar Lookout Retreat, Forest Park Hotel Woodland Wing, and Flyover Chicago, and the Jasper SkyTram are excluded from same-store metrics. For experiences located outside the United States, key performance indicator comparisons to the prior year are expressed on a constant U.S. dollar basis.
Attractions.
The increase in the number of attraction visitors during 2025 was primarily driven by higher visitation at the Flyover Chicago attraction, which opened on March 1, 2024.
Attractions ticket revenue on a same-store basis increased $0.5 million, primarily attributable to a 9.5% increase in effective ticket price. This increase was driven by the expansion of the Sky Lagoon experience, which included the addition of a larger ritual area and the debut of Skjól, a seven step ritual that opened in August 2024. These increases were offset in part by a 6.1% decrease in visitors, primarily attributable to the Sky Lagoon attraction, which had experienced exceptionally strong demand in the prior year.
Hospitality.
The increase in RevPAR during 2025 was primarily driven by higher occupancy and an increase in ADR, offset in part by a decrease in room nights available at the Forest Park Woodland Wing resulting from refresh renovations.
Rooms revenue on a same-store basis increased $0.4 million on an 8.6% increase in RevPAR, offset in part by a 1.9% decrease in room nights available.
28
Other Expenses
Three Months Ended
March 31,
(in thousands)
2025
2024
% Change
Cost of food, beverage, and retail products sold
$
2,285
$
2,537
(9.9
)%
Operating expenses (exclusive of depreciation and amortization shown separately below)
$
38,427
$
40,374
(4.8
)%
Selling, general, and administrative expenses
$
17,165
$
12,842
33.7
%
Depreciation and amortization
$
10,968
$
9,763
12.3
%
Interest expense, net
$
1,464
$
2,922
(49.9
)%
Other expense, net
$
319
$
310
2.9
%
Restructuring charges
$
38
$
—
**
Income tax benefit
$
(1,866
)
$
(1,654
)
(12.8
)%
Income (loss) from discontinued operations, net of tax
$
(131
)
$
3,620
**
** Change is greater than +/- 100%.
Operating expenses (exclusive of depreciation and amortization) -
The decrease in operating expenses is primarily due to the periodic remeasurement of the Sky Lagoon finance lease obligation, which resulted in an unrealized foreign exchange gain of $2.2 million in the first quarter of 2025 versus an unrealized loss of $1.0 million in the first quarter of 2024. This was partially offset by inflationary cost increases to support year-round operations as well as seasonal operating losses from new businesses.
Selling, general, and administrative expenses -
The increase in selling, general and administrative expenses is primarily due to higher transaction-related costs totaling $4.9 million during the three months ended March 31, 2025 (primarily related to our transition to a standalone publicly-traded operating company in connection with the sale of the GES Business).
Income tax benefit
–
The effective tax rate was 5.6% for the three months ended March 31, 2025, and 5.2% for three months ended March 31, 2024. The effective rates differed from the 21% federal rate as we do not recognize a tax benefit primarily on losses in the United States where we have a valuation allowance, while recognizing tax expense and benefit in Canada and Iceland.
Income (loss) from discontinued operations, net of tax
– On December 31, 2024, we completed the sale of the GES Business. Accordingly, the operating results of the GES Business are included within discontinued operations for the 2024 first quarter.
Liquidity and Capital Resources
We believe that our existing sources of liquidity will be sufficient to fund operations and projected capital outlays for at least the next 12 months and the longer term.
When assessing our current sources of liquidity, we include the following:
March 31,
December 31,
(in thousands)
2025
2024
Unrestricted cash and cash equivalents
(1)
$
22,801
$
49,702
Available capacity on 2025 Revolving Credit Facility
(2)
189,348
—
Total available liquidity
$
212,149
$
49,702
(1)
As of March 31, 2025, we held $21.5 million of our cash and cash equivalents outside of the United States.
(2)
As of March 31, 2025, the available capacity includes our 2025 Revolving Credit Facility (as defined below) size of $200 million less $5.0 million of outstanding borrowings and $5.7 million in outstanding letters of credit.
On January 3, 2025, Pursuit entered into the 2025 Credit Agreement (the “2025 Credit Agreement”) with Bank of America, N.A., as administrative agent, and the other lenders named in the agreement. The 2025 Credit Agreement provides for the $200 million revolving credit facility (the “2025 Revolving Credit Facility”), available in U.S. dollars, Canadian dollars, Euros and Pounds sterling, with a maturity of January 3, 2030. Proceeds from the 2025 Revolving Credit Facility will provide us with additional funds for operations, growth initiatives, acquisitions, and other general corporate purposes. Refer to Note 13 –
Debt and Finance Lease Obligations
of the Notes to Condensed Consolidated Financial Statements (Part I, Item 1 of this Form 10-Q) for further information.
29
Cash provided by operating activities, supplemented by our existing cash and cash equivalents and availability under our 2025 Revolving Credit Facility, are our primary sources of liquidity for funding our business requirements. During the three months ended March 31, 2025, net cash used in operating activities attributable to continuing operations was $24.4 million.
Our short-term and long-term funding requirements include debt obligations, maintenance capital expenditures, working capital requirements, and potential acquisitions and strategic investments as we focus on scaling our investments in high-return unforgettable, inspiring experiences with high return potential through our Refresh, Build, Buy growth strategy. Our projected capital outlays can be adjusted for changes in the operating environment.
Capital Expenditures
For 2025, we have planned capital expenditures of approximately $70 million to $75 million. This includes approximately $38 million to $43 million on select growth projects, including the refresh of the Forest Park Hotel’s Woodland Wing. We expect to evaluate other selective investments to advance our Refresh, Build, Buy growth strategy while maintaining a solid liquidity position.
Other Obligations
We have additional obligations as part of our ordinary course of business, beyond those committed for debt obligations and capital expenditures. Refer to Note 20 –
Leases and Other
and Note 18 –
Pension and Postretirement Benefits
of the Notes to Condensed Consolidated Financial Statements (Part I, Item 1 of this Form 10-Q) for further information. The expected timing of payments of our obligations is estimated based on current information. Timing of payments and actual amounts paid may be different, depending on changes to agreed-upon amounts for certain obligations.
Cash Flows
Operating Activities
Three Months Ended
March 31,
(in thousands)
2025
2024
Net loss
$
(31,352
)
$
(26,243
)
(Income) loss from discontinued operations, net of tax
131
(3,620
)
Depreciation and amortization
10,968
9,763
Deferred income taxes
2,619
799
Restructuring charges
38
—
Share-based compensation expense
2,436
2,302
Other non-cash items, net
(1,962
)
2,130
Changes in operating assets and liabilities, net
(7,283
)
(7,527
)
Net cash used in operating activities attributable to continuing operations
$
(24,405
)
$
(22,396
)
Net cash used in operating activities attributable to continuing operations remained relatively flat as compared to the prior year during the seasonally soft first quarter.
Investing Activities
Three Months Ended
March 31,
(in thousands)
2025
2024
Capital expenditures
$
(9,899
)
$
(16,390
)
Proceeds from insurance
4,565
—
Proceeds from dispositions of property and other assets
136
—
Net cash used in investing activities attributable to continuing operations
$
(5,198
)
$
(16,390
)
Net cash used in investing activities attributable to continuing operations decreased $11.2 million, primarily due to a decrease in capital expenditures and insurance proceeds received of $4.6 million for the Jasper wildfires in the 2025 period.
30
Financing Activities
Three Months Ended
March 31,
(in thousands)
2025
2024
Proceeds from borrowings
$
8,951
$
154,243
Payments on debt and finance obligations
(4,115
)
(127,455
)
Distributions to noncontrolling interest, net of contributions from noncontrolling interest
—
149
Payments of debt issuance costs
(1,535
)
(51
)
Payment of payroll taxes on stock-based compensation through shares withheld or repurchased
(712
)
(996
)
Proceeds from exercise of stock options
1,098
—
Net cash provided by financing activities attributable to continuing operations
$
3,687
$
25,890
Net cash provided by financing activities attributable to continuing operations decreased $22.2 million, primarily due to net debt borrowings of $4.8 million during the three months ended March 31, 2025 compared $26.8 million during the three months ended March 31, 2024.
Critical Accounting Estimates
Refer to Part II, Item 7 –
Management’s Discussion and Analysis of Financial Condition and Results of Operations
of our 2024 Form 10-K for a discussion of our critical accounting estimates.
Impact of Recent Accounting Pronouncements
Refer to Note 1 –
Overview and Basis of Presentation
of the Notes to Condensed Consolidated Financial Statements (Part I, Item 1 of this Form 10-Q) for additional information.
Item 3.
Quantitative and Qualitati
ve Disclosures About Market Risk
Our market risk exposure relates to fluctuations in interest rates and foreign exchange rates. Foreign exchange risk is the risk that fluctuating exchange rates will adversely affect our financial condition or results of operations. The foreign exchange risk is composed of both potential losses from the translation of foreign currency financial information and the remeasurement of foreign currency transactions. Interest rate risk is the risk that changing interest rates will adversely affect our financial position or results of operations.
Our foreign operations are primarily in Canada and Iceland. The functional currency of our foreign subsidiaries is their local currency. Accordingly, for purposes of consolidation, we translate the assets and liabilities of our foreign subsidiaries into U.S. dollars at the foreign exchange rates in effect at the balance sheet date. The unrealized gains or losses resulting from the translation of these foreign denominated assets and liabilities are included as a component of AOCI in the Condensed Consolidated Balance Sheets. As a result, significant fluctuations in foreign exchange rates relative to the U.S. dollar may result in material changes to our net equity position reported in the Condensed Consolidated Balance Sheets. We do not currently hedge our equity risk arising from the translation of foreign denominated assets and liabilities. We recorded cumulative unrealized foreign currency translation losses in stockholders’ equity of $63.0 million as of March 31, 2025 and $62.9 million as of December 31, 2024. We recorded an unrealized foreign currency translation loss in other comprehensive income (loss) of $0.1 million during the three months ended March 31, 2025 and $7.5 million during the three months ended March 31, 2024.
For purposes of consolidation, revenue, cost and expenses, gains, and losses related to our foreign operations are translated into U.S. dollars at the average foreign exchange rates for the period. As a result, our consolidated results of operations are exposed to fluctuations in foreign exchange rates as revenue and segment operating income (loss) of our foreign operations, when translated, may vary from period to period, even when the functional currency amounts have not changed. Such fluctuations may adversely impact overall expected profitability and historical period-to-period comparisons. We do not currently hedge our net earnings exposure arising from the translation of our foreign revenue and segment operating income (loss) from continuing operations.
We are exposed to foreign exchange transaction risk, as our foreign subsidiaries have certain loans and leases denominated in currencies other than the functional currency of the respective subsidiary. As of March 31, 2025, we had long-term contractual liabilities that were denominated in nonfunctional currencies of $46.1 million. As foreign exchange rates fluctuate, these liabilities are remeasured, and the corresponding adjustment is recorded in the Condensed Consolidated Statements of Operations. As of March 31, 2025 and December 31, 2024, we did not have any outstanding foreign currency forward contracts.
We are exposed to short-term and long-term interest rate risk on certain of our debt obligations.
31
Item 4.
Controls
and Procedures
We have established disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms, and such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate to allow timely decisions regarding required disclosure. Management, together with our CEO and CFO, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2025. Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective as of March 31, 2025.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during the quarter ended March 31, 2025.
32
PART II - OTHE
R INFORMATION
Item 1.
Legal
Proceedings
Refer to Note 21 –
Litigation, Claims, Contingencies, and Other
of the Notes to Condensed Consolidated Financial Statements (Part I, Item 1 of this Form 10-Q) for information regarding legal proceedings in which we are involved, which information is incorporated by reference herein.
Item 1A.
Ri
sk Factors
In addition to other information set forth in this report, careful consideration should be given to the factors discussed in Part I, Item 1A –
Risk Factors
and Part II, Item 7 –
Management’s Discussion and Analysis of Financial Condition and Results of Operations
of our 2024 Form 10-K, which could materially affect our business, financial condition, or future results.
Item 2.
Unregistered Sales of Equi
ty Securities AND Use of Proceeds
Pursuant to previously announced authorizations, our Board of Directors has authorized us to repurchase shares of our common stock from time to time at prevailing market prices. As of March 31, 2025, 546,283 shares remained available for repurchase under all prior authorizations. In March 2020, our Board of Directors suspended future common stock dividend payments and our share repurchase program for the foreseeable future. During the three months ended March 31, 2025, we did not repurchase any equity securities. The Board of Directors’ authorization does not have an expiration date.
Item 5. OTH
ER INFORMATION
Securities Trading Plans of Directors and Executive Officers
During the quarter ended March 31, 2025
, no director or officer of the Company
adopted
or
terminated
a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema with embedded Linkbase Documents.
104
Cover Page formatted as Inline XBRL and contained in Exhibit 101
*
Filed herewith.
**
Furnished herewith.
34
SIGNAT
URES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
PURSUIT ATTRACTIONS AND HOSPITALITY, INC.
(Registrant)
May 9, 2025
By:
/s/ Leslie S. Striedel
(Date)
Leslie S. Striedel
Chief Accounting Officer and Duly Authorized Officer
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