Viad looking at splitting business
Viad shares rise as it mulls splitting businesses to boost shareholder value
PHOENIX (AP) -- Trade show company Viad Corp. said Friday that it's considering splitting its travel and recreation and marketing and events businesses as part of a review of its options for boosting shareholder value.
The Phoenix-based company said that its board hired JP Morgan Securities LLC to help it evaluate its options.
Viad shares rose $1.73, or 7.1 percent, to $26.26 in morning trading.
Viad also said that its board approved the repurchase of up to an additional 1 million shares of the company's stock. As of Sept. 30, Viad had bought back about 610,000 shares since September 2010, representing the bulk of the shares available for repurchase under previous authorizations.
In October the company reported adjusted third-quarter earnings of $1.01 per share. Revenue jumped 42 percent to $307.5 million
Revenue at Viad's marketing and events business rose 52 percent to $230.3 million, while travel and recreation group revenue rose 20 percent to $77.2 million.
The company at that time also projected a fourth-quarter loss of 33 to 43 cents per share on revenue of $196 million to $207 million.
