Pursuit Attractions and Hospitality, Inc.

Good afternoon. My name is Tiffany and I will be your conference operator today. At this time, I would like to welcome everyone to Pursuit's 2026 Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. Carrie Long, you may begin the conference.

Good afternoon, and thank you for joining us for our 2026 Second Quarter Earnings Conference Call. During the call, led by David Barry, our President and CEO, and Bo Heitz, our Chief Financial Officer, we will reference our earnings presentation, which is available on the Investors section of our website. We encourage investors to monitor the Investors section of our website in addition to our press releases, filings submitted with the SEC, and any public conference calls or webcasts. Before I turn the call over to David, I would like to draw your attention to important disclaimers on pages 2 and 3 of our presentation regarding non-GAAP financial measures and the use of forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Page two identifies forward-looking statements and discusses risks and other important factors that could cause results to differ from those expressed in such statements. And page three identifies and defines the non-GAAP financial measures we use and reconciliations to the most directly comparable GAAP financial measures are provided in the appendix of the presentation and in our earnings release. And with that, I am pleased to turn the call over to David, who will start on page four.

Thanks, Carrie, and thank you all for joining us. We're excited to review our 2026 second quarter results and share our view to continued significant long-term growth and value creation. Let's start with three key highlights that demonstrate our strategy is working and show the momentum in our business. First, we delivered exceptional guest experiences and record second quarter results. Revenue grew 14% with strong contributions from Telecom and continued growth across our existing geographies. Second, we completed two strategic transactions at compelling valuations that advance our growth strategy. The acquisition of Eagle Wing Tours, a leading sightseeing attraction in Victoria, British Columbia, strengthens our portfolio and reflects our approach to disciplined capital deployment. And we completed the sale of our non-core flyover business, bolstering our balance sheet for future growth investments more aligned with our strategy and vision 2030 targets. And third, We're increasing our full year 2026 guidance to incorporate incremental contributions from our recent strategic transactions. Our demand indicators remain positive and we expect to deliver 14% adjusted EBITDA growth year over year at the midpoint. Turning to page six, I'll spend a moment on the sale of flyover and what that does for our business. This transaction has been years in the making and is the final chapter in Pursuit's transformational story of becoming a pure play attractions and hospitality growth engine. With the sale complete, we further sharpen our singular focus on delivering great guest experiences where nature is our content and driving growth through sightseeing attractions and hospitality experiences in iconic destinations with an even stronger balance sheet to support our growth into the future. This is a clear example of focused portfolio management. It simplifies the business. that strengthens our financial position and allows us to invest behind the opportunities with the greatest long-term value creation potential. We wish the talented flyover team great success in their future growth journey with their new owner, Progen Technologies. Next, let's turn to page seven to briefly reinforce what makes Pursuit special. Simply put, Pursuit is in a category of one. We own and operate unforgettable and inspiring experiences in some of the world's most iconic destinations with a portfolio of 14 sightseeing attractions and 29 distinctive lodging properties across four countries. Page 8 highlights our differentiated model. Pursuit's assets are one-of-a-kind experiential infrastructure that connect guests to extraordinary places. Our demand is anchored to destinations with perennial global appeal. And importantly, we operate in supply-constrained markets where development is regulated and difficult to replicate. We build on these dynamics with an integrated operating model and a strong culture of guest-obsessed hospitality, experience design, and our own unique growth mindset. By connecting attractions, lodging, dining, retail, and transportation, We create a seamless guest journey that drives visitation, guest satisfaction, yield, and sustainable and scalable cash flow growth. Pursuit has a compelling position that is aligned to the global travel trends as shown on page nine. Increasingly, people all over the world are prioritizing experiences over things and building trips around must-do bucket list moments, exactly what Pursuit delivers. Outdoor adventure, wellness, curated travel, group demand, flexible work, and the desire to unplug all support our iconic nature immersive experiences. And for pursuit, AI is an enabler, not a disruptor. AI can help plan your trip, but it will never take your vacation for you. We build upon our compelling positioning with a consistent proven growth strategy that drives shareholder value. As shown on page 10, we have a long track record of deploying capital into growth investments that deliver strong returns for shareholders. From 2014 through 2025, we invested approximately $578 million across major growth projects and acquisitions that generated approximately $102 million of adjusted EBITDA in 2025. That's an effective EBITDA multiple of roughly six times. This is a proven and repeatable playbook. disciplined investments in one-of-a-kind experiences and iconic destinations with a strong cultural and strategic fit drive strong investment outcomes and strong growth. Page 11 shows the growth journey that we've been on over the past 10 years and the expected continuation of that journey into the future. From 2015 to 2025, Pursuit delivered a 15% revenue CAGR through a combination of growth investments and iconic assets, are relentless focus on the guest experience and an ever-present growth mindset. As we go forward, we're replicating that success using the same proven playbook with an even sharper focus and a stronger balance sheet to deliver compelling growth and exceptional hospitality. Which brings me to our Vision 2030 targets on page 12. Pursuit is on a path to once again deliver a double-digit revenue CAGR through 2030 with meaningful EBITDA growth and margin expansion. By 2030, we expect to deliver over 265 million of adjusted EBITDA, which is more than double 2025 levels. And these Vision 2030 targets aren't merely aspirational. They are the next chapter of a strategy that's already working. This strategy comes to life through our four growth levers that are shown on page 14. First, We work to improve performance across every business, leveraging perennial demand and maintaining an unwavering focus on the guest experience. Second, we invest organically to elevate experiences, expand capacity and drive attractive returns. Third, we pursue strategic acquisitions that strengthen our portfolio. And finally, we repurchase shares opportunistically when valuations are compelling. These levers work and our track record proves it. And as shown on page 15, our strong balance sheet allows us to invest across all four of these levers at the same time when returns are compelling. Pro forma for the sale of Flyover and the acquisition of Eagle Wing Tours, our June 30th net leverage ratio was approximately one times, which is well below our target range of 2 to 3.5 times. and we had substantial immediate balance sheet liquidity of about $220 million also on a pro forma basis. This balance sheet strength combined with continued adjusted EBITDA growth gives us the financial flexibility to simultaneously invest in high return organic growth projects, one of a kind strategic acquisitions and opportunistic share repurchases. Now I'll walk you through the progress we're making on each one of our growth levers starting on page 16. We're improving performance across our existing experiences. During the first half of 2026, we drove a 6% increase in attraction effective ticket price and a 9% increase in lodging rev par on a same store basis. This is the hospitality profit chain heart of work. Strong team member engagement drives guest satisfaction and drives growth. Next on page 17, we highlight a few recent examples of how our growth mindset and relentless focus on the guest experience is driving incremental visitation to our attractions. Across pursuit, we continually find ways to offer new differentiated experiences that create more reasons for guests to visit. For example, strategic programming initiatives at our attractions require little to no capital investment and help fill white space, maximizing capacity utilization and flow through. Our newly launched Rockies Rangers program for kids is bringing families deeper into our Canadian attractions through interactive exploration, education, and achievement-based experiences. At the Banff Gondola, Bloom and Brunch, and the Sunset Festival are expanding morning and evening visitation with unique mountaintop experiences, live music, and great dining. And at Lake Minnewanka, Beer Voyage is driving growth and evening visitation through a premium cruise experience with rotating local craft beer tastings. These are three great examples of our growth mindset in using experience design to drive results. Now let's move on to our second growth lever, investing in ourselves through organic growth projects on page 18. We have a pipeline of more than 300 million of organic growth investment opportunities from 2026 through 2030. These are low-risk investments in well-instrumented businesses that we already own, know, and operate. By 2030, we expect these investments will contribute more than $40 million of incremental adjusted EBITDA at an estimated effective multiple of less than seven times. As these investments are completed, additional organic growth investments under development in our internal pipeline will continue to come forward in the natural cycle of our business. On page 19, our Golden Sky Bridge attraction is a powerful example of our organic growth investment playbook in action. What started as sightseeing suspension bridges has become a multi-experience adventure park that continues to scale. On August 1st, we opened a new net park at Golden Sky Bridge that adds another compelling reason to visit. The team keeps elevating the guest journey and it's driving stronger revenue per visitor and improve Net Promoter Scores. Pages 20 to 29 include many exciting growth investment examples across Pursuit that help demonstrate the strength of our pipeline. I'll cover a few of them now, and I encourage you to review them in more detail after the call. At the Jasper Sky Tram and the Banff Gondola, we're planning to elevate the Arrival to Summit journey with new, modernized lifts and expanded amenities to strengthen their positions as must-do experiences in Jasper and Banff National Parks. In Denali, we're preparing to relaunch the high-margin Denali Backcountry Adventure attraction in 2027. This premium wildlife safari tour will take guests deep inside Denali National Park for a bucket-list, nature-focused backcountry experience. The park road repairs are completed, and the road is reopened for industry permit holders in anticipation of summer 27 operations. Denali is one of the few U.S. national parks where road access is for outfitters and permit holders only. To see Denali's incredible wildlife, you must travel with an experienced provider or the National Park Service. By offering the best guest experience, we know we can meet pent up demand for this iconic attraction. We're also adding lake cruise capacity in 2027 with a new 56-passenger boat at Moline Lake in Jasper and redeployment of an existing boat to Lake Minnewanka in Banff to meet strong demand at these iconic attractions. On the lodging side, we have two properties well underway with renovations that will reposition them in their respective markets for stronger occupancy and ADR. In Jasper, the Forest Park Hotel's woodland wing is nearing completion with a phased renovation that already demonstrated a 22% ADR lift for renovated rooms. And at Grouse Mountain Lodge in Whitefish, Montana, we've just finished the first phase of room renovations with a new 300-person event center opening August 15th and full hotel transformation to be completed in summer 2027. We're also excited to be moving forward with investments to elevate the guest experience at Lobstic Lodge and Pyramid Lake Lodge in Jasper and to expand our lodging offering near Glacier National Park. Lobstic will undergo a full renovation to up-level the property, and Pyramid Lake Lodge will see the addition of wellness-focused guest amenities, including outdoor hot tubs and sauna with picturesque views of Pyramid Lake. In East Glacier, we're adding 41 elevated cabins in an absolute showstopper location with idyllic views into Glacier National Park. Now let's move forward to our third growth lever, expanding our portfolio with disciplined strategic acquisitions on page 30. We have a robust pipeline of forever asset opportunities, but we remain highly selective. We're focused only on businesses that are iconic, unforgettable, and inspiring, located in destinations with perennial demand and Limited Supply, supported by attractive EBITDA margins, exceptional guest experiences and a clear path to exceed our 15% IRR hurdle rate. Eagle Wing Tours is a great example, a leading sightseeing attraction in an iconic destination that fits our strategy, our values and our disciplined investment criteria. And Tabacon continues to validate this approach, contributing strong performance and demonstrating what happens when we combine exceptional assets with guest-obsessed execution. Let's look at how Eagle Wing Tour fits into our growth strategy on page 31. On July 14th, we acquired a leading whale watching and marine wildlife experience in Victoria, British Columbia for roughly 6.5 times adjusted EBITDA. Eagle Wing provides an unforgettable guest experience to about 50,000 guests annually and brings us into the Vancouver Island market, an iconic, resilient tourism destination with annual visitation of about 5 million. Eagle Wing fits our strategy and investment criteria, perennial demand, limited supply, attractive returns and clear upside through Pursuit's platform. We're thrilled to welcome the Eagle Wing team and are excited to support their continued growth as part of Pursuit. Now on page 32, Our acquisition of Tabacon has reached its first year mark under Pursuit's ownership, and we're incredibly proud of its performance. This is a truly irreplaceable asset, an experience driven resort rooted in place with world class thermal river attractions at the base of Costa Rica's Arenal volcano with a fantastic team that is delivering at a very high level. We're seeing strong thermal river attraction visitation and lodging performance, High Guest Satisfaction, and continued traction from targeted enhancements, like the improved arrival experience and Hot Springs Puerto Vida rebrand. TabaCon continues to validate our disciplined strategic acquisition strategy. For the trailing 12 months, adjusted EBITDA growth has driven the effective purchase multiple down to nearly nine times, and we have additional opportunities ahead. We've just announced the creation of three new premium villas to meet demand from luxury and multifamily travelers in the Arenal region. And looking ahead, we see meaningful upside across the 570-acre property and are pursuing additional growth investment opportunities to expand Tabacon and build a broader Costa Rica collection of iconic experiences. Next, I'll briefly touch on our fourth growth lever on page 33, investing in our own shares at attractive valuations. To date, we've repurchased $43 million worth of shares at an average price of $35.72. Based on recent trading levels, this represents a strong return on investment of more than 40%. We have approximately $57 million remaining in our $100 million share repurchase authorization, and we remain committed to opportunistic repurchases when we see a compelling return relative to our other investment opportunities. And with that, I'll turn it over to Beau who will walk you through our second quarter financial highlights in 2026 outlook starting on page 35. Thanks, David.