<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1997
Commission file number 001-11015
VIAD CORP
(Exact name of registrant as specified in its charter)
DELAWARE 36-1169950
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1850 N. CENTRAL AVE., PHOENIX, ARIZONA 85077
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (602) 207-4000
Indicate by check mark whether the registrant (1) has filed all
Exchange Act reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12
months, and (2) has been subject to such filing requirements for
the past 90 days.
Yes x No
--------- ---------
As of April 30, 1997, 95,992,279 shares of Common Stock ($1.50
par value) were outstanding.<PAGE>
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
VIAD CORP
CONSOLIDATED BALANCE SHEET
<CAPTION>
March 31, December 31,
(000 omitted) 1997 1996
----------- -----------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 4,161 $ 4,422
Receivables, less allowance of
$11,430 and $12,744 165,736 163,262
Inventories 101,974 93,730
Deferred income taxes 29,319 32,567
Other current assets 49,200 59,562
---------- ----------
350,390 353,543
Funds, agents' receivables and
current maturities of investments
restricted for payment service
obligations, after eliminating
$90,000 invested in Viad commercial paper 508,172 670,258
---------- ----------
Total current assets 858,562 1,023,801
Investments restricted for
payment service obligations 1,172,058 1,144,279
Property and equipment 478,614 473,039
Other investments and assets 117,301 125,705
Investment in discontinued operations 30,662 97,958
Deferred income taxes 50,084 47,904
Intangibles 544,888 540,626
---------- ----------
$ 3,252,169 $ 3,453,312
========== ==========
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
March 31, December 31,
(000 omitted, except number of shares) 1997 1996
---------- ----------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 154,191 $ 148,990
Accrued compensation 50,910 68,976
Other current liabilities 210,490 263,049
Current portion of long-term debt 18,426 2,348
---------- ----------
434,017 483,363
Payment service obligations 1,746,087 1,869,480
---------- ----------
Total current liabilities 2,180,104 2,352,843
Long-term debt 498,118 518,779
Pension and other benefits 60,872 61,689
Other deferred items and insurance reserves 72,258 73,291
Minority interests 8,077 7,888
$4.75 Redeemable preferred stock 6,607 6,604
Common stock and other equity:
Common stock, $1.50 par value,
200,000,000 shares authorized,
97,108,724 shares issued 145,663 145,663
Additional capital 278,989 282,203
Retained income 139,971 146,664
Cumulative translation adjustments (2,272) (1,519)
Unearned employee benefits (110,396) (118,766)
Unrealized gain (loss) on securities
available for sale (4,312) 205
Common stock in treasury, at cost,
1,137,012 and 1,162,718 shares (21,510) (22,232)
---------- ----------
Total common stock and other equity 426,133 432,218
---------- ----------
$ 3,252,169 $ 3,453,312
========== ==========
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
VIAD CORP
STATEMENT OF CONSOLIDATED INCOME
<CAPTION>
Three months ended March 31, 1997 1996
(000 omitted, except per share data) ---------- ----------
<S> <C> <C>
REVENUES $ 569,726 $ 531,723
---------- ----------
Costs and expenses:
Costs of sales and services 531,016 496,261
Unallocated corporate expense
and other items, net 7,983 9,027
Sale of accounts receivable expense 1,088 514
Interest expense 14,263 13,490
Minority interests 364 154
---------- ----------
554,714 519,446
---------- ----------
Income before income taxes 15,012 12,277
Income taxes 4,492 3,765
---------- ----------
INCOME FROM CONTINUING OPERATIONS 10,520 8,512
Income from discontinued operations 15,982
---------- ----------
Income before extraordinary charge 10,520 24,494
Extraordinary charge for early retirement
of debt, net of tax benefit of $4,554 (8,458)
---------- ----------
NET INCOME $ 2,062 $ 24,494
========== ==========
INCOME (LOSS) PER COMMON SHARE:
Continuing operations $ 0.11 $ 0.09
Discontinued operations 0.18
---------- ----------
Income before extraordinary charge 0.11 0.27
Extraordinary charge (0.09)
---------- ----------
NET INCOME PER COMMON SHARE $ 0.02 $ 0.27
========== ==========
Dividends declared per common share $ 0.08 $ 0.16
========== ==========
Average outstanding common
and equivalent shares 93,006 90,783
========== ==========
<FN>
See Notes to Consolidated Financial Statements.
</TABLE> <PAGE>
<PAGE>
<TABLE>
VIAD CORP
STATEMENT OF RETAINED INCOME
<CAPTION>
Three months ended March 31, 1997 1996
(000 omitted) ---------- ----------
<S> <C> <C>
Balance, beginning of year $ 146,664 $ 322,439
Net income 2,062 24,494
Dividends on common and preferred stock (7,552) (14,432)
Adjust distribution of consumer products
business to Viad stockholders for post-
closing settlements (1,216)
Other 13
---------- ----------
Balance, end of period $ 139,971 $ 332,501
========== ==========
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
VIAD CORP
STATEMENT OF CONSOLIDATED CASH FLOWS
<CAPTION>
Three months ended March 31, 1997 1996
(000 omitted) ---------- ----------
<S> <C> <C>
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
Net income $ 2,062 $ 24,494
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 19,372 18,087
Deferred income taxes 4,128 (598)
Income from discontinued operations (15,982)
Extraordinary charge for early retirement of debt 8,458
Other noncash items, net 2,689 1,539
Change in operating assets and liabilities:
Receivables and inventories (10,570) (32,155)
Payment service assets and obligations, net 33,607 41,196
Accounts payable and accrued compensation (12,865) (5,351)
Other assets and liabilities, net (29,186) (18,886)
---------- ----------
Net cash provided by operating activities 17,695 12,344
---------- ----------
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES:
Capital expenditures (13,849) (12,552)
Acquisitions of businesses, net of cash acquired (17,555)
Proceeds from sales of property and equipment 277 330
Investments restricted for payment service obligations:
Proceeds from sales and maturities of securities
classified as available for sale 178,557 215,962
Proceeds from maturities of securities
classified as held to maturity 6,841
Purchases of securities classified as
available for sale (150,726) (155,780)
Purchases of securities classified as
held to maturity (65,352) (91,511)
Investments in and advances from
discontinued operations, net, including
$70,000 proceeds from the sale of the
Star/Ship Atlantic in 1997 66,080 26,586
---------- ----------
Net cash provided (used) by investing activities 4,273 (16,965)
---------- ----------
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Payments on long-term borrowings (58,528) (103)
Premium paid upon early retirement of debt (13,012)
Net change in short-term borrowings 53,856 10,844
Dividends on common and preferred stock (7,552) (14,432)
Proceeds from sales of treasury stock 5,164 13,077
Net change in receivables sold 1,039
Cash payments on interest rate swaps (2,157) (1,254)
---------- ----------
Net cash (used) provided by financing activities (22,229) 9,171
---------- ----------
Net (decrease) increase in cash and cash equivalents (261) 4,550
Cash and cash equivalents, beginning of year 4,422 17,945
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,161 $ 22,495
========== ==========
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<PAGE>
VIAD CORP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A--Basis of Preparation
The Consolidated Financial Statements of Viad Corp ("Viad")
include the accounts of Viad and all of its subsidiaries. This
information should be read in conjunction with the financial
statements set forth in the Viad Corp Annual Report to
Stockholders for the year ended December 31, 1996.
Accounting policies utilized in the preparation of the financial
information herein presented are the same as set forth in Viad's
annual financial statements except as modified for interim
accounting policies which are within the guidelines set forth in
Accounting Principles Board Opinion No. 28, "Interim Financial
Reporting." The interim consolidated financial information is
unaudited. In the opinion of management, all adjustments,
consisting only of normal recurring accruals, necessary to
present fairly Viad's financial position as of March 31, 1997,
and its results of operations and its cash flows for the three
months ended March 31, 1997 and 1996 have been included. Interim
results of operations are not necessarily indicative of the
results of operations for the full year.
NOTE B--Investments Restricted for Payment Service Obligations
Investments restricted for payment service obligations include
the following debt and equity securities:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
(000 omitted) ----------- -----------
<S> <C> <C>
Securities available for sale, at
fair value (amortized cost of
$720,374 and $748,642) $ 713,304 $ 748,977
Securities held to maturity, at
amortized cost (fair value of
$456,523 and $403,278) 464,287 405,921
----------- ----------
1,177,591 1,154,898
Less current maturities (5,533) (10,619)
----------- ----------
$ 1,172,058 $ 1,144,279
=========== ==========
</TABLE>
NOTE C--Debt
At March 31, 1997 and December 31, 1996, Viad classified as long-
term debt $137,856,000 and $84,000,000, respectively, of short-
term borrowings supported by unused commitments under a
$400,000,000 long-term revolving bank credit agreement.
As discussed in Liquidity and Capital Resources, in late March
1997, Viad repurchased $58,414,000 par value of its 10.5 percent
subordinated debentures at a premium, resulting in an
extraordinary charge of $8,458,000.
NOTE D--Income Taxes
A reconciliation of the provision for income taxes and the amount
that would be computed using statutory federal income tax rates
on income before income taxes for the three months ended March
31, is as follows:
<TABLE>
<CAPTION>
1997 1996
(000 omitted) ------------ ------------
<S> <C> <C>
Computed income taxes at statutory
federal income tax rate of 35% $ 5,254 $ 4,297
Nondeductible goodwill amortization 1,039 883
Minority interests 127 54
State income taxes 829 493
Tax-exempt income (4,199) (2,831)
Adjustment to estimated annual
effective rate 1,750 825
Other, net (308) 44
----------- -----------
Provision for income taxes $ 4,492 $ 3,765
=========== ===========
</TABLE>
NOTE E--Supplementary Information--Revenues and Operating Income
<TABLE>
<CAPTION>
Three months ended March 31,
-----------------------------------------------------
Revenues Operating Income
------------------------- --------------------------
1997 1996 1997 1996
(000 omitted) ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Airline Catering
and Services $ 211,829 $ 193,263 $ 13,147 $ 12,305
Convention Services 209,327 195,012 18,489 17,134
Travel and Leisure
and Payment
Services (1) 148,570 143,448 7,074 6,023
----------- ----------- ----------- -----------
Total principal
business segments $ 569,726 $ 531,723 38,710 35,462
=========== ===========
Unallocated
corporate expense
and other
items, net (7,983) (9,027)
Sale of accounts
receivable expense (1,088) (514)
----------- -----------
$ 29,639 $ 25,921
=========== ===========
<FN>
(1) Viad's payment services subsidiary is investing increasing amounts in tax-
exempt securities. On a fully taxable equivalent basis, revenues and operating
income would be higher by $6,460,000 and $4,355,000 for the 1997 and 1996
quarter, respectively.
</TABLE>
NOTE F--Discontinued Operations
The caption "Income from discontinued operations" presented in the
Statement of Consolidated Income for the quarter ended March 31,
1996, includes the following, after income taxes where applicable:
<TABLE>
<CAPTION>
(000 omitted)
<S> <C>
Consumer products business
(spun off August 15, 1996 as
The Dial Corporation) $ 17,648
Canadian intercity bus
transportation business,
net of applicable minority
interests (disposed of May 31, 1996) (268)
Cruise line business (1) (1,398)
-----------
Income from discontinued operations $ 15,982
===========
<FN>
(1) In February 1997, Viad's Board of Directors approved plans to dispose of
Viad's cruise line business, operated by Premier Cruise Lines. The Star/Ship
Majestic, formerly on charter to a European operator, was sold in December 1996.
In mid-March 1997, Viad sold the Star/Ship Atlantic. In April 1997, Viad
finalized the sale of Premier Cruise Lines, which continues to operate the
Star/Ship Oceanic.
</TABLE>
NOTE G--Dividends Declared Per Common Share
The first quarter 1997 common stock dividend of $0.08 per share,
when added together with The Dial Corporation's first quarter
1997 dividend declaration of $0.08 per common share, results in a
combined quarterly dividend rate for Viad and The Dial
Corporation comparable to the dividend rate of The Dial Corp
prior to the spin-off.
NOTE H--Earnings Per Share
In March 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings
Per Share." The Statement requires the dual presentation of
basic and diluted earnings per share ("EPS") on the face of the
earnings statement and requires a reconciliation of the
numerators and denominators of basic and diluted EPS
calculations. The Statement will be effective for Viad's 1997
fiscal year. Early adoption of the Statement is not permitted.
Adoption of this Statement would not have had a material impact
on the EPS calculations for the 1997 and 1996 first quarters.
<PAGE>
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS:
There were no material changes in the nature of Viad's business,
nor were there any other changes in the general characteristics
of its operations as described and discussed in the first
paragraph of the results section of Management's Discussion and
Analysis of Results of Operations and Financial Condition
presented in the Viad Corp Annual Report to Stockholders for the
year ended December 31, 1996.
COMPARISON OF FIRST QUARTER OF 1997 TO THE FIRST QUARTER OF 1996:
In the first quarter of 1997, revenues increased $38.0 million,
or 7.1 percent, to $569.7 million from $531.7 million in 1996.
The 1997 first quarter operating income of Viad's principal
business segments increased $3.2 million, or 9.2 percent, over
that of 1996. Viad's payment services subsidiary continues to
invest increasing amounts in tax-exempt securities. On a fully
taxable equivalent basis, revenues rose 7.5 percent and operating
income was up 13.4 percent.
Income from continuing operations for the first quarter of 1997
was $10.5 million, or $0.11 per share, compared to income from
continuing operations of $8.5 million, or $0.09 per share, for
the 1996 quarter. There were 2.2 million more average common and
equivalent shares outstanding in 1997 than in 1996, due primarily
to the effects of stock option exercises and other issuances
related to employee benefit and dividend reinvestment plans.
Net income for the first quarter of 1997 was $2.1 million, or
$0.02 per share, after deducting an extraordinary charge of $8.5
million (net of tax benefit of $4.6 million), or $0.09 per share,
for the early retirement of debt. Net income for the first
quarter of 1996 was $24.5 million, or $0.27 per share, which
included income from discontinued operations of $16.0 million, or
$0.18 per share. See Note F of Notes to Consolidated Financial
Statements and Liquidity and Capital Resources.
AIRLINE CATERING AND SERVICES.
The first quarter 1997 revenues of the Airline Catering and
Services group were $211.8 million, a 9.6 percent increase from
the 1996 first quarter revenues of $193.3 million. On a fully
comparable basis, the revenue increase was 6.8 percent, as the
reported 1996 revenues did not include two catering kitchens
which had only been 50 percent owned in 1996. Operating income
increased $800,000, or 6.8 percent, over that of the 1996 first
quarter. Revenues and operating income increased due to new
catering customers gained since the first quarter of 1996.
Revenues and operating income from the airplane fueling and
ground handling business were essentially even. Operating
margins decreased slightly to 6.2 percent from 1996's 6.4 percent
due to the effects of consolidating the two joint venture
kitchens in 1997.
CONVENTION SERVICES.
Convention Services first quarter 1997 revenues increased $14.3
million, or 7.3 percent, to $209.3 million from $195 million in
the 1996 first quarter. Operating income increased $1.4 million,
or 7.9 percent, and operating margins remained even at 8.8
percent. Efficiencies gained from the consolidation of Giltspur
Inc. operations with Exhibitgroup offset the effects of a major
rotating show included in the 1996 first quarter, but not
repeating this year.
TRAVEL AND LEISURE AND PAYMENT SERVICES.
Revenues of the Travel and Leisure and Payment Services companies
were $148.6 million for the first quarter of 1997, up $5.1
million, or 3.6 percent, from those of the 1996 first quarter.
Operating income increased 17.5 percent to $7.1 million. On a
fully taxable equivalent basis, first quarter revenues and
operating income would have been higher by $6.5 million and $4.4
million in 1997 and 1996, respectively. Operating margins on the
fully taxable equivalent basis would have been 8.7 percent in the
first quarter of 1997, up from 7 percent in the 1996 first
quarter. The first quarter revenue increase was 7.3 percent on a
comparable basis, as the Oakbrook Hills Hotel & Resort, sold June
30, 1996, had contributed revenues in the 1996 quarter.
On the fully taxable equivalent basis, payment services revenues
and operating income increased $5.8 million and $1.4 million,
respectively, over those of 1996's first quarter, primarily as a
result of increased investment income arising from larger
investment balances.
Duty Free and shipboard concession revenues and operating income
increased $800,000 and $100,000, respectively, over those of the
1996 first quarter, due primarily to an increase in the number of
shipboard passenger days.
Travel tour service revenues and operating income increased $4.0
million and $700,000, respectively, over those of the 1996 first
quarter. Revenues increased primarily as a result of higher
passenger and hotel guest volumes. Operating income increased as
a result of the revenue increase, partially offset by higher
volume-related costs to provide services.
Food service companies 1997 first quarter revenues decreased
$100,000 from those of the 1996 first quarter. Increased
revenues at General Motors (due to strikes at certain General
Motors plants in 1996) and increased business at America West
Arena (due to the addition of Phoenix Coyotes hockey) was offset
by the closure of certain locations in 1996. Operating income
increased $1.6 million, primarily due to improved cost
efficiencies compared to the strike effects on 1996 operations.
UNALLOCATED CORPORATE EXPENSE AND OTHER ITEMS, NET.
Unallocated corporate expense and other items, net, decreased
$1.0 million from those in the first quarter of 1996.
INTEREST EXPENSE.
Interest expense increased $800,000 over 1996's first quarter, as
proceeds of the Star/Ship Atlantic sale were not received until
late in the 1997 quarter and effective rates were slightly higher
than in the 1996 quarter.
INCOME TAXES.
The effective tax rate in the 1997 first quarter was 29.9
percent, down from 30.7 percent in 1996. The reduction in the
effective tax rate results primarily from the increased use of
tax-exempt investments by Viad's payment services subsidiary.
LIQUIDITY AND CAPITAL RESOURCES:
In late March 1997, Viad repurchased $58.4 million par value of
its 10.5 percent subordinated debentures at a premium, resulting
in an extraordinary charge of $8.5 million (net of tax benefit of
$4.6 million), or $0.09 per share. The tender offer was financed
with general corporate funds, operating cash flow, proceeds from
the sale of certain assets and short-term borrowings. Viad
expects ongoing interest expense to be reduced as a result of the
repurchase.
Viad's total debt at March 31, 1997 was $516.5 million compared
with $521.1 million at December 31, 1996. The debt-to-capital
ratio at March 31, 1997 was 0.54 to 1, unchanged from December
31, 1996.
Fluctuations in the balances of payment service assets and
obligations result from varying levels of sales of money orders
and other payment instruments, the timing of the collections of
agents' receivables and the timing of the presentment of such
instruments.
There were no other material changes in Viad's financial
condition nor were there any substantive changes relative to
matters discussed in the Liquidity and Capital Resources section
of Management's Discussion and Analysis of Results of Operations
and Financial Condition as presented in Viad Corp's Annual Report
to Stockholders for the year ended December 31, 1996.
RECENT DEVELOPMENTS:
As discussed in Note F of Notes to Consolidated Financial
Statements, Viad finalized the sale of Premier Cruise Lines in
April 1997.
PART II. OTHER INFORMATION
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The annual meeting of stockholders of Viad Corp was held
May 13, 1997.
(b) Not applicable--(i) proxies for the meeting were
solicited pursuant to Regulation 14 under the
Securities Exchange Act of 1934; (ii) there was no
solicitation in opposition to management's nominees as
listed in the proxy statement; and (iii) all such
nominees were elected.
(c) Matters voted upon at the annual meeting for which
proxies were solicited pursuant to Regulation 14 under
the Securities Exchange Act of 1934:
1. The election of Directors as follows:
Robert H. Bohannon
------------------
Affirmative Vote . . . . . . . . . . . . . . . 82,218,703
Against. . . . . . . . . . . . . . . . . . . . . .612,695
Withheld . . . . . . . . . . . . . . . . . . . . . . . .0
Abstentions. . . . . . . . . . . . . . . . . . . . . . .0
Broker non-votes . . . . . . . . . . . . . . . . . . . .0
Douglas L. Rock
---------------
Affirmative Vote . . . . . . . . . . . . . . . 81,933,173
Against. . . . . . . . . . . . . . . . . . . . . .898,225
Withheld . . . . . . . . . . . . . . . . . . . . . . . .0
Abstentions. . . . . . . . . . . . . . . . . . . . . . .0
Broker non-votes . . . . . . . . . . . . . . . . . . . .0
2. The appointment of Deloitte & Touche LLP to
audit the accounts of Viad and its subsidiaries
for the fiscal year 1997.
Affirmative Vote . . . . . . . . . . . . . . . 82,081,243
Against. . . . . . . . . . . . . . . . . . . . . .440,953
Withheld . . . . . . . . . . . . . . . . . . . . . . . .0
Abstentions. . . . . . . . . . . . . . . . . . . .309,202
Broker non-votes . . . . . . . . . . . . . . . . . . . .0
3. The approval of performance goals and certain
other terms under the 1997 Viad Corp Omnibus
Incentive Plan.
Affirmative Vote . . . . . . . . . . . . . . . 58,589,511
Against. . . . . . . . . . . . . . . . . . . . 17,000,135
Withheld . . . . . . . . . . . . . . . . . . . . . . . .0
Abstentions. . . . . . . . . . . . . . . . . . . .903,164
Broker non-votes . . . . . . . . . . . . . . . .6,338,588
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit No. 11 - Statement Re Computation of Per Share
Earnings
Exhibit No. 27 - Financial Data Schedule
(b) No reports on Form 8-K were filed by the
registrant during the quarter for which this
report is filed.
SIGNATURES
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.
VIAD CORP
(Registrant)
May 14, 1997 By /s/ Richard C. Stephan
-------------------------
Richard C. Stephan
Vice President-Controller
(Chief Accounting Officer
and Authorized Officer)
<PAGE>
<TABLE>
Exhibit 11
Page 1 of 1
VIAD CORP
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(000 omitted)
<CAPTION>
Three months ended March 31,
----------------------------
Primary: 1997 1996
------------ ------------
<S> <C> <C>
Net income $ 2,062 $ 24,494
Less: Preferred stock dividends (282) (281)
------------ ------------
$ 1,780 $ 24,213
============ ============
Average common shares outstanding
before common equivalents 90,432 88,277
Common equivalent stock options 2,574 2,506
------------ ------------
93,006 90,783
============ ============
Net income per share (dollars) $ 0.02 $ 0.27
============ ============
<CAPTION>
Three months ended March 31,
-------------------------------------------------------
1997 1996
-------------------------- ----------------------------
Common Common
Fully Diluted: Shares Income Shares Income
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Average common and
equivalent shares
and net income
per above 93,006 $ 1,780 90,783 $ 24,213
Common equivalent
stock options
------------ ------------ ------------ ------------
93,006 $ 1,780 90,783 $ 24,213
============ ============ ============ ============
Net income per
share (dollars) $ 0.02 $ 0.27
============ ============
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM VIAD CORP'S
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED
MARCH 31, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
<MULTIPLIER> 1,000
<CAPTION>
Exhibit 27
VIAD CORP
FINANCIAL DATA SCHEDULE
<S> <C>
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<PERIOD-TYPE> 3-MOS
<CASH> 4,161
<SECURITIES> 0
<RECEIVABLES> 177,166
<ALLOWANCES> 11,430
<INVENTORY> 101,974
<CURRENT-ASSETS> 858,562
<PP&E> 875,151
<DEPRECIATION> 396,537
<TOTAL-ASSETS> 3,252,169
<CURRENT-LIABILITIES> 2,180,104
<BONDS> 498,118
<COMMON> 145,663
6,607
0
<OTHER-SE> 280,470
<TOTAL-LIABILITY-AND-EQUITY> 3,252,169
<SALES> 0
<TOTAL-REVENUES> 569,726
<CGS> 0
<TOTAL-COSTS> 531,016
<OTHER-EXPENSES> 9,071
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 14,263
<INCOME-PRETAX> 15,012
<INCOME-TAX> 4,492
<INCOME-CONTINUING> 10,520
<DISCONTINUED> 0
<EXTRAORDINARY> (8,458)
<CHANGES> 0
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