Q4

2019

Q4

2018

y-o-y

Change

Full Year

2019

Full Year

2018

y-o-y

Change

$ in millions, except per share data

Revenue

$

321.3

$

296.9

8.2

%

$

1,371.7

$

1,296.2

5.8

%

Organic Revenue*

318.5

296.9

7.3

%

1,365.1

1,296.2

5.3

%

Net Income (Loss) Attributable to Viad

$

(5.4

)

$

(2.3

)

**

$

22.0

$

49.2

-55.2

%

Income (Loss) Before Other Items*

(0.2

)

(1.8

)

86.5

%

50.4

47.7

5.6

%

Net Income (Loss) Attributable to Viad per Share

$

(0.31

)

$

(0.12

)

**

$

1.02

$

2.40

-57.5

%

Income (Loss) Before Other Items per Share*

(0.01

)

(0.09

)

88.9

%

2.48

2.34

6.0

%

Adjusted Segment Operating Income*

$

1.7

$

4.1

-59.2

%

$

94.0

$

89.7

4.8

%

Adjusted Segment EBITDA*

16.5

16.5

-0.1

%

152.7

146.3

4.4

%

•

Full year revenue of $1.4 billion increased $75.5 million (5.8%) year-over-year, or $68.9 million (5.3%) on an organic basis (which excludes the impact of acquisitions and exchange rate variances).  

o

The increase in organic revenue is due to continued organic growth at both GES and Pursuit, partially offset by negative show rotation at GES of about $15 million.

o

Pursuit acquisitions completed during 2019 contributed revenue of $19.9 million.

o

Exchange rate variances had an unfavorable impact on revenue of $13.3 million.

•

The increases in full year adjusted segment operating income and adjusted segment EBITDA were primarily driven by the increase in revenue, partially offset by higher accruals for performance-based incentives, the revenue mix at GES, and additional costs to support the growth initiatives of Pursuit.

•

Income before other items was higher than the prior year primarily due to a lower effective tax rate and the increase in adjusted segment operating income, partially offset by higher interest expense and an increase in income attributable to noncontrolling interests.

•

The GAAP-basis net income attributable to Viad also included an $11.7 million, after-tax, charge related to our withdrawal from the Central States Pension Plan, a $6.4 million, after-tax, charge related to a legal settlement, higher restructuring charges due to GES simplification actions, and a $4.3 million, after-tax, asset impairment charge.

•

Fourth quarter revenue of $321.3 million increased $24.4 million (8.2%) year-over-year, or $21.6 million (7.3%) on an organic basis (which excludes the impact of acquisitions and exchange rate variances).  

o

The increase in organic revenue is primarily due to continued organic growth at both GES and Pursuit.

o

Pursuit acquisitions completed during 2019 contributed revenue of $3.8 million.

o

Exchange rate variances had an unfavorable impact on revenue of $1.0 million.

•

Adjusted segment EBITDA remained essentially flat year-over-year as revenue growth was offset primarily by accruals for performance-based incentives earned in 2019, the revenue mix at GES, and increased costs to support continued growth at Pursuit. The decrease in adjusted segment operating income also reflects higher depreciation and amortization expense primarily related to Pursuit growth investments.

•

The loss before other items decreased primarily due to a higher tax benefit, partially offset by lower adjusted segment operating results and higher interest expense.

•

The GAAP-basis net loss attributable to Viad also included a $4.3 million, after-tax, asset impairment charge primarily related to the GES EMEA segment.

Q4

2019

Q4

2018

y-o-y

Change

Full Year

2019

Full Year

2018

y-o-y

Change

$ in millions

Revenue

$

299.6

$

281.8

6.3

%

$

1,148.9

$

1,110.9

3.4

%

North America Organic Revenue*

237.2

226.0

4.9

%

937.6

909.8

3.1

%

EMEA Organic Revenue*

69.4

61.0

13.8

%

243.1

218.2

11.4

%

Adjusted Segment Operating Income*

$

10.5

$

8.9

18.8

%

$

35.9

$

39.8

-9.6

%

Adjusted Segment Operating Margin*

3.5

%

3.1

%

40 bps

3.1

%

3.6

%

-50 bps

Adjusted Segment EBITDA*

$

19.1

$

17.9

6.5

%

$

71.5

$

77.7

-7.9

%

Adjusted Segment EBITDA Margin*

6.4

%

6.4

%

0 bps

6.2

%

7.0

%

-80 bps

Key Performance Indicators:

U.S. Base Same-Show Revenue Growth⁽¹⁾

2.5

%

1.3

%

Show Rotation Revenue Change - North America (approx.)⁽²⁾

$

1

$

(27

)

Show Rotation Revenue Change - EMEA (approx.)⁽²⁾

$

4

$

12

(1)

Base same-shows are defined as shows produced by GES out of the same U.S. city during the same quarter in both the current year and prior year.  Base same-shows represented 26.3% and 29.7% of GES North America’s organic revenue during the 2019 fourth quarter and full year, respectively.

(2)

Show rotation refers to shows that take place once every two, three or four years, as well as annual shows that change quarters from one year to the next.

•

Full year GES revenue of $1.1 billion increased $38.0 million (3.4%) year-over-year.  On an organic basis, which excludes the impact of exchange rate variances, revenue increased $49.1 million (4.4%).

o

North America organic revenue increased $27.9 million (3.1%) primarily due to continued growth from corporate clients and other new client wins, partially offset by negative show rotation of approximately $27 million.

o

EMEA organic revenue increased $24.9 million (11.4%) primarily due to positive show rotation of approximately $12 million, new client wins, and growth from the underlying business.

•

Full year GES adjusted segment operating income of $35.9 million* decreased $3.8 million year-over-year, and $3.4 million on an organic basis.

o

North America organic adjusted segment operating income of $27.9 million* decreased by $2.3 million primarily due to accruals for performance-based incentives earned in 2019 and the revenue mix.

o

EMEA organic adjusted segment operating income of $8.5 million* decreased $1.1 million primarily due to the revenue mix, the timing of certain expenses, and accruals for performance-based incentives earned in 2019.

•

Exchange rate variances had a negative impact of $11.2 million on revenue and $0.4 million on adjusted segment operating income.

•

Fourth quarter GES revenue of $299.6 increased $17.9 million (6.3%) year-over-year.  On an organic basis, which excludes the impact of exchange rate variances, revenue increased $18.8 million (6.7%).

o

North America organic revenue increased $11.2 million (4.9%) primarily due to growth from corporate clients and other new business wins.

o

EMEA organic revenue increased $8.4 million (13.8%) primarily due to positive show rotation of approximately $4 million, new client wins, and growth from the underlying business.

•

Fourth quarter GES adjusted segment operating income of $10.5 million* increased $1.7 million year-over-year, and $1.9 million on an organic basis.

o

North America organic adjusted segment operating income of $5.1 million* increased by $0.1 million driven by higher revenue, mostly offset by the revenue mix and accruals for performance-based incentives earned in 2019.

o

EMEA organic adjusted segment operating income of $5.8 million* increased $1.8 million primarily due to the increase in revenue, partially offset by accruals for performance-based incentives earned in 2019.

•

Exchange rate variances had a negative impact of $0.9 million on revenue and $0.3 million on adjusted segment operating income.

Q4

2019

Q4

2018

y-o-y

Change

Full Year

2019

Full Year

2018

y-o-y

Change

$ in millions

Revenue

$

21.7

$

15.2

43.1

%

$

222.8

$

185.3

20.3

%

Organic Revenue*

17.9

15.2

18.2

%

205.1

185.3

10.7

%

Adjusted Segment Operating Income (Loss)*

$

(8.8

)

$

(4.7

)

-86.5

%

$

58.0

$

49.9

16.3

%

Adjusted Segment Operating Margin*

-40.8

%

-31.3

%

-950 bps

26.0

%

26.9

%

-90 bps

Adjusted Segment EBITDA*

$

(2.5

)

$

(1.4

)

-84.4

%

$

81.2

$

68.6

18.3

%

Adjusted Segment EBITDA Margin*

-11.7

%

-9.1

%

-260 bps

36.4

%

37.0

%

-60 bps

Key Performance Indicators:

Same-Store Effective Ticket Price⁽¹⁾

$

29

$

27

7.4

%

$

35

$

33

6.1

%

Same-Store Revenue per Attraction Visitor⁽¹⁾

$

39

$

36

8.3

%

$

46

$

42

9.5

%

Same-Store Attraction Visitors⁽¹⁾

271,371

280,028

-3.1

%

2,348,069

2,443,624

-3.9

%

Same-Store RevPAR⁽²⁾

$

57

$

51

11.8

%

$

150

$

142

5.6

%

Same-Store Room Nights Available⁽²⁾

41,048

41,249

-0.5

%

234,938

230,710

1.8

%

(1)

Same-store effective ticket price is calculated as revenue from the sale of attraction tickets divided by the total number of tickets sold for all comparable Pursuit attractions, expressed on a constant currency basis. Same-store revenue per attraction visitor is a similar measure but also takes into consideration ancillary revenue derived from food and beverage and retail offerings at the comparable attractions.  Comparable attractions are defined as those operated by Pursuit for the entirety of both periods. Accordingly, the measures shown above do not include the FlyOver Iceland attraction (opened August 2019).

(2)

Same-store RevPAR is calculated as total rooms revenue divided by the total number of room nights available for all comparable Pursuit properties during the periods presented, expressed on a constant currency basis.  Comparable properties are defined as those operated by Pursuit for the entirety of both periods. Accordingly, the fourth quarter and full year measures shown above do not include the Mountain Park Lodges (acquired June 2019), the Belton Chalet (acquired May 2019), and the West Glacier RV Park & Cabins (opened July 2019). The full year measures above also exclude the Mount Royal Hotel (closed for renovations due to fire and re-opened in July 2018).

•

Full year Pursuit revenue of $222.8 million increased $37.5 million (20.3%) year-over-year. On an organic basis, which excludes the impact of acquisitions and exchange rate variances, revenue increased $19.8 million (10.7%) primarily due to the opening of several new build and refresh projects as well as stronger performance from our existing assets.

o

Pursuit successfully opened the refreshed food and beverage and retail offerings at Maligne Canyon and Maligne Lake (May), the 36-room expansion at the Windsong Lodge (June), the renovated Glacier View Lodge (June), the West Glacier RV Park & Cabin Village (July), and the FlyOver Iceland attraction (late August).

o

Full year same-store revenue per attraction visitor increased 9.5% year-over-year primarily driven by higher effective ticket prices and ancillary revenues at our recently refreshed experiences and dynamic pricing. The decrease in same-store attraction

visitors year-over-year was primarily due to softer visitation from select long-haul markets at certain attractions.

o

Full year same-store RevPAR increased by 5.6% year-over-year primarily due to higher average daily rates at our refreshed properties and our revenue management efforts.  

•

Full year Pursuit adjusted segment operating income of $58.0 million* increased $8.1 million year-over-year. Organic adjusted segment operating income of $51.5 million* increased $1.6 million primarily due to the increase in revenue, partially offset by additional costs to support continued expansion of the business, including an increase of $2.0 million in depreciation and amortization expense.

•

Mountain Park Lodges (acquired in June) and the Belton Chalet (acquired in May) contributed $19.9 million in revenue and $9.5 million in adjusted segment EBITDA ($6.0 million of EBITDA attributable to Viad shareholders).

•

Exchange rate variances had a negative impact of $2.1 million on revenue and $0.2 million on adjusted segment operating income.

•

Fourth quarter Pursuit revenue of $21.7 million increased $6.5 million (43.1%) year-over-year. On an organic basis, which excludes the impact of acquisitions and exchange rate variances, revenue increased $2.8 million (18.2%) during the seasonally slow quarter primarily due to the opening of the FlyOver Iceland attraction as well as additional revenue captured at our recently refreshed properties.  

•

Fourth quarter Pursuit adjusted segment operating loss of $8.8 million* increased $4.1 million year-over-year. Organic adjusted segment operating loss of $7.9 million* increased $3.1 million primarily due to additional costs to support the growth initiatives of the business, including an increase of $1.8 million in depreciation and amortization expense.

•

Mountain Park Lodges (acquired on June 8, 2019) and the Belton Chalet (acquired on May 21, 2019) contributed $3.8 million in revenue and $0.2 million in adjusted segment EBITDA.

•

Our cash flow from operations was $7.0 million for the fourth quarter and $108.1 million for the full year.

•

Our capital expenditures for the quarter totaled $15.3 million, comprising $9.0 million for Pursuit and $6.3 million for GES. For the full year, our capital expenditures totaled $76.1 million, comprising $49.9 million for Pursuit and $26.2 million for GES (inclusive of about $35 million for growth projects at Pursuit and $10 million for growth projects at GES).

•

During the second quarter, we acquired the Mountain Park Lodges properties and the Belton Chalet for an aggregate purchase price of approximately $79 million. In the third quarter, we acquired a 51% controlling interest in a new geothermal lagoon attraction for approximately $13 million.

•

Our return of capital totaled $2.0 million for the quarter (which represented quarterly dividends of $0.10 per share) and $8.1 million for the full year.  We had 600,067 shares remaining under our current repurchase authorization at December 31, 2019.

•

Our debt proceeds (net) totaled $13.6 million for the quarter and $84.7 million for the full year.

•

Our cash and cash equivalents were $62.0 million, debt was $342.3 million, and our debt-to-capital ratio was 39.0% at December 31, 2019.

•

We expect consolidated revenue to increase at a low-double digit rate from 2019 full year revenue, driven by growth at both GES and Pursuit.

•

We expect consolidated adjusted segment EBITDA to be in the range of $195 million to $206 million, as compared to $152.7 million* in 2019.

•

The outlook for our business units is as follows:

GES

Pursuit

$ in millions

Revenue

Up low-double digits

(from $1,149 in 2019)

Up 12% to 17%

(from $223 in 2019)

Adjusted Segment EBITDA

$109 to $114

(vs. $71.5* in 2019)

$86 to $92

(vs. $81.2* in 2019)

Depreciation & Amortization

$35 to $36

$28 to $29

Adjusted Segment Operating Income

$74 to $78

(vs. $35.9* in 2019)

$58 to $63

(vs. $58.0* in 2019)

Capital Expenditures

$30 to $34

(inclusive of about $10 for growth projects)

$63 to $65

(inclusive of about $45 for growth projects)

•

Our guidance assumes that exchange rates during 2020 will approximate $0.76 U.S. Dollars per Canadian Dollar and $1.30 U.S. Dollars per British Pound.  As compared to 2019, we do not expect exchange rate variances to have a meaningful impact on 2020 full year growth.

•

We expect GES show rotation to have a net positive impact on full year revenue of about $100 million versus 2019.  Show rotation refers to shows that occur less frequently than annually, as well as annual shows that shift quarters from one year to the next.

Q1 Est.

Q2 Est.

Q3 Est.

Q4 Est.

FY Est.

Show Rotation Revenue ($ in millions)

$

60

$

(25

)

$

75

$

(10

)

$

100

•

We expect GES U.S. base same-show revenue to increase at a low single digit rate.

•

We expect Pursuit’s 2020 growth to be fueled primarily by investments to support our Refresh, Build, Buy strategy, including incremental revenue of $19 million to $21 million from Mountain Park Lodges (acquired June 2019) and FlyOver Iceland (opened late August 2019).  Additionally, we expect to realize mid-single digit to high-single digit revenue growth across the rest of our attractions and hospitality assets.

•

We expect start-up costs of $5 million to $6 million related to the development of new Pursuit attractions during 2020. These costs primarily represent non-cash lease expense due to straight-line accounting recognition, and are not included in the adjusted segment EBITDA or adjusted segment operating income guidance ranges above.

•

We expect corporate activities expense to approximate $10 million to $11 million.

•

We expect our effective tax rate on income before other items to approximate 27%.

2020 Guidance⁽¹⁾

2019

Low End

High End

$ in millions, except per share data

Revenue:

GES

$

274.9

$

335

to

$

350

Pursuit

10.7

$

15

to

$

18

Adjusted Segment Operating Income (Loss):

GES

$

1.7

*

$

23

to

$

26

Pursuit

(12.8

)

*

(18.5

)

to

(16

)

Loss per Share Before Other Items

$

(0.51

)

*

$

0.01

to

$

0.16

(1)

We do not expect exchange rate variances versus 2019 to have a meaningful impact to 2020 first quarter results.

•

We expect GES first quarter results to increase primarily due to positive show rotation and continued new business wins.

•

We expect the Mountain Park Lodges acquisition and FlyOver Iceland to contribute first quarter revenue of $4 million to $6 million.  We expect Pursuit first quarter operating results to decrease primarily due to additional costs and investments to support continued expansion of the business, including an increase of about $3 million in depreciation and amortization expense.

•

our ability to successfully integrate and achieve established financial and strategic goals from acquisitions;

•

fluctuations in general economic conditions;

•

our dependence on large exhibition event clients;

•

the importance of key members of our account teams to our business relationships;

•

the competitive nature of the industries in which we operate;

•

travel industry disruptions;

•

unanticipated delays and cost overruns of our capital projects, and our ability to achieve established financial and strategic goals of such projects;

•

seasonality of our businesses;

•

transportation disruptions and increases in transportation costs;

•

natural disasters and other catastrophic events;

•

the impact of recent U.S. tax legislation;

•

our multi-employer pension plan funding obligations;

•

our exposure to labor cost increases and work stoppages related to unionized employees;

•

liabilities relating to prior and discontinued operations;

•

adverse effects of show rotation on our periodic results and operating margins;

•

our exposure to currency exchange rate fluctuations;

•

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;

•

the effects of the United Kingdom’s exit from the European Union; and

•

the effects of changes in the U.S. trade policy.

Three months ended December 31,

Year ended December 31,

($ in thousands, except per share data)

2019

2018

$ Change

% Change

2019

2018

$ Change

% Change

Revenue:

GES:

North America

$

237,126

$

225,980

$

11,146

4.9%

$

936,032

$

909,790

$

26,242

2.9%

EMEA

68,524

61,031

7,493

12.3%

233,591

218,247

15,344

7.0%

Intersegment eliminations

(6,010

)

(5,252

)

(758

)

-14.4%

(20,741

)

(17,140

)

(3,601

)

-21.0%

Total GES

299,640

281,759

17,881

6.3%

1,148,882

1,110,897

37,985

3.4%

Pursuit

21,694

15,157

6,537

43.1%

222,813

185,287

37,526

20.3%

Total revenue

$

321,334

$

296,916

$

24,418

8.2%

$

1,371,695

$

1,296,184

$

75,511

5.8%

Segment operating income (loss):

GES:

North America

$

5,024

$

4,926

$

98

2.0%

$

27,659

$

29,981

$

(2,322

)

-7.7%

EMEA

5,499

3,931

1,568

39.9%

8,274

9,621

(1,347

)

-14.0%

Total GES

10,523

8,857

1,666

18.8%

35,933

39,602

(3,669

)

-9.3%

Pursuit

(10,400

)

(4,855

)

(5,545

)

**

54,310

48,915

5,395

11.0%

Segment operating income

123

4,002

(3,879

)

-96.9%

90,243

88,517

1,726

1.9%

Corporate eliminations

18

16

2

12.5%

67

67

—

0.0%

Corporate activities (Note A)

(3,070

)

(2,464

)

(606

)

-24.6%

(10,865

)

(10,993

)

128

1.2%

Restructuring charges (Note B)

(1,535

)

(588

)

(947

)

**

(8,380

)

(1,587

)

(6,793

)

**

Impairment (charges) recoveries (Note C)

(5,346

)

—

(5,346

)

**

(5,346

)

35

(5,381

)

**

Legal settlement (Note D)

—

—

—

**

(8,500

)

—

(8,500

)

**

Pension plan withdrawal (Note E)

(185

)

—

(185

)

**

(15,693

)

—

(15,693

)

**

Other expense

(394

)

(436

)

42

9.6%

(1,586

)

(1,744

)

158

9.1%

Net interest expense (Note F)

(4,478

)

(2,493

)

(1,985

)

-79.6%

(13,830

)

(9,286

)

(4,544

)

-48.9%

Income (loss) from continuing operations before income taxes

(14,867

)

(1,963

)

(12,904

)

**

26,110

65,009

(38,899

)

-59.8%

Income tax (expense) benefit (Note G)

8,355

(1,813

)

10,168

**

(2,506

)

(17,095

)

14,589

85.3%

Income (loss) from continuing operations

(6,512

)

(3,776

)

(2,736

)

-72.5%

23,604

47,914

(24,310

)

-50.7%

Income (loss) from discontinued operations (Note H)

(113

)

1,078

(1,191

)

**

(81

)

1,481

(1,562

)

**

Net income (loss)

(6,625

)

(2,698

)

(3,927

)

**

23,523

49,395

(25,872

)

-52.4%

Net income (loss) attributable to noncontrolling interest

1,020

348

672

**

(2,309

)

(542

)

(1,767

)

**

Net loss attributable to redeemable noncontrolling interest

177

28

149

**

821

317

504

**

Net income (loss) attributable to Viad

$

(5,428

)

$

(2,322

)

$

(3,106

)

**

$

22,035

$

49,170

$

(27,135

)

-55.2%

Amounts Attributable to Viad Common Stockholders:

Income (loss) from continuing operations

$

(5,315

)

$

(3,400

)

$

(1,915

)

-56.3%

$

22,116

$

47,689

$

(25,573

)

-53.6%

Income (loss) from discontinued operations (Note H)

(113

)

1,078

(1,191

)

**

(81

)

1,481

(1,562

)

**

Net income (loss)

$

(5,428

)

$

(2,322

)

$

(3,106

)

**

$

22,035

$

49,170

$

(27,135

)

-55.2%

Diluted income (loss) per common share:

Income (loss) from continuing operations attributable to Viad common shareholders

$

(0.30

)

$

(0.17

)

$

(0.13

)

-76.5%

$

1.02

$

2.33

$

(1.31

)

-56.2%

Income (loss) from discontinued operations attributable to Viad common shareholders

(0.01

)

0.05

(0.06

)

**

—

0.07

(0.07

)

-100.0%

Net income (loss) attributable to Viad common shareholders

$

(0.31

)

$

(0.12

)

$

(0.19

)

**

$

1.02

$

2.40

$

(1.38

)

-57.5%

Basic income (loss) per common share:

Income (loss) from continuing operations attributable to Viad common shareholders

$

(0.30

)

$

(0.17

)

$

(0.13

)

-76.5%

$

1.02

$

2.33

$

(1.31

)

-56.2%

Income (loss) from discontinued operations attributable to Viad common shareholders

(0.01

)

0.05

(0.06

)

**

—

0.07

(0.07

)

-100.0%

Net income (loss) attributable to Viad common shareholders

$

(0.31

)

$

(0.12

)

$

(0.19

)

**

$

1.02

$

2.40

$

(1.38

)

-57.5%

Common shares treated as outstanding for income (loss) per share calculations:

Weighted-average outstanding common shares

20,196

20,112

84

0.4%

20,146

20,168

(22

)

-0.1%

Weighted-average outstanding and potentially dilutive common shares

20,196

20,112

84

0.4%

20,284

20,404

(120

)

-0.6%

(A)

Corporate Activities — The increase in corporate activities expense during the three months ended December 31, 2019 relative to 2018 was primarily due to higher performance-based compensation expense driven by our stock price appreciation relative to December 31, 2018 and higher acquisition transaction-related costs in 2019. The decrease in corporate activities expense during the twelve months ended December 31, 2019 relative to 2018 was primarily due to a gain on sale of corporate fixed assets and foreign currency exchange, offset in part by higher acquisition transaction-related costs in 2019.

(B)

Restructuring Charges — Restructuring charges during 2019 were primarily related to the elimination of certain positions at GES, our corporate headquarters, and Pursuit, in addition to facility consolidations at GES. Restructuring charges during 2018 were primarily related to the elimination of certain positions at GES and Pursuit.

(C)

Impairment (Charges) Recoveries — We recorded asset impairment charges of $5.3 million during the fourth quarter of 2019 primarily related to our audio-visual production business in the United Kingdom.

(D)

Legal Settlement — During 2019, we recorded a charge to resolve a legal dispute at GES involving a former industry contractor.

(E)

Pension Plan Withdrawal — During 2019, we finalized the terms of a new collective-bargaining agreement with the Teamsters 727 union. The terms included a withdrawal from the under-funded Central States Pension Plan. Accordingly, we recorded a charge of $15.5 million, which represents the estimated present value of future contributions we will be required to make to the plan as a result of this withdrawal from the plan.

(F)

Net Interest Expense — The increase in net interest expense for the three and twelve months ended December 31, 2019 relative to 2018 was primarily due to higher debt balances in 2019.

(G)

Income Tax (Expense) Benefit — Our effective income tax rate for the twelve months ended December 31, 2019 and 2018 was 10% and 26%, respectively.  The decrease in the effective rate was primarily related to a $4.5 million benefit resulting from the re-measurement of our Alberta deferred tax assets due to a statutory rate reduction, higher foreign tax credits generated, and lower state taxes, partially offset by the mix of domestic versus foreign income, which is taxed at higher rates.

(H)

Income (Loss) from Discontinued Operations — Loss from discontinued operations during the three and twelve months ended December 31, 2019 was primarily related to legal expenses related to previously sold operations. Income from discontinued operations during the three and twelve months ended December 31, 2018 was primarily related to a favorable legal settlement related to previously sold operations, offset in part by legal expenses related to previously sold operations.

Three months ended December 31,

Year ended December 31,

($ in thousands, except per share data)

2019

2018

$ Change

% Change

2019

2018

$ Change

% Change

Net income (loss) attributable to Viad

$

(5,428

)

$

(2,322

)

$

(3,106

)

**

$

22,035

$

49,170

$

(27,135

)

-55.2%

Less: Allocation to nonvested shares

—

—

—

**

(156

)

(461

)

305

66.2%

Adjustment to the redemption value of redeemable noncontrolling interest

(788

)

(77

)

(711

)

**

(1,318

)

(251

)

(1,067

)

**

Net income (loss) allocated to Viad common shareholders

$

(6,216

)

$

(2,399

)

$

(3,817

)

**

$

20,561

$

48,458

$

(27,897

)

-57.6%

Weighted-average outstanding common shares

20,196

20,112

84

0.4%

20,146

20,168

(22

)

-0.1%

Basic income (loss) per common share attributable to Viad common shareholders

$

(0.31

)

$

(0.12

)

$

(0.19

)

**

$

1.02

$

2.40

$

(1.38

)

-57.5%

Three months ended December 31,

Year ended December 31,

($ in thousands)

2019

2018