Viad Corp. reports improved earnings for quarter

Friday, April 26, 2002 | 11:09 a.m.

The parent company of convention services giant GES Exposition Services of Las Vegas reported improved earnings for its first quarter despite continued weakness in the convention and trade show industry.

Phoenix-based Viad Corp. reported net income of $32.3 million, 37 cents a share, on revenue of $454.7 million, compared with net income of $24.3 million, 28 cents a share, on revenue of $472.5 million for the same period in 2001 for the quarter ended March 31.

Viad Chairman Robert Bohannon said the company's money-transfer and payment-services divisions grew substantially for the quarter, offsetting a weak performance in the convention and event services segment.

Convention and event services revenue was $254.8 million for the quarter, down 12 percent from the same period a year earlier and the company initiated cost-savings measures last year to fend off declining earnings.

"We are still seeing evidence of economic weakness in our convention and event services segment and we believe the economy will continue to challenge this segment throughout 2002," said Bohannon in a statement. "That said, for the full year ... we still expect to deliver earnings growth of 3 to 6 percent."

Bohannon said the anticipated 10 to 15 percent revenue decline from 2001 levels is greater than expected and "we are not seeing any signs that companies are beginning to spend again on new exhibits."