Acquisition and Portfolio Optimization - Emerald acquired This is Beyond and Insurtech Insights, expecting approximately $40 million in Revenue and $15 million in Adjusted EBITDA in 2025[10] - The company is strategically shifting its portfolio towards high-growth industry categories through acquisitions and discontinuing underperforming events[10] - Emerald has completed and integrated over 30 acquisitions over the last decade, deploying over $900 million in capital[20] Financial Performance and Liquidity - Q4 2024 revenues reached $106.8 million[22] - Q4 2024 net income was $5.1 million, resulting in a diluted income per share of $0.03[22] - Q4 2024 Adjusted EBITDA, excluding insurance proceeds, was $32.6 million[22] - Free cash flow for Q4 2024 was $17.9 million[22] - As of December 31, 2024, Emerald had $194.8 million in cash and cash equivalents and full availability on a $110 million revolver[22] Capital Allocation and Dividends - Emerald repurchased $8.4 million of its common stock in Q4 2024[10] - The Board of Directors declared a dividend of $0.015 per share for the quarter ending March 31, 2025[10] 2025 Guidance - Full Year 2025 revenue is projected to be in the range of $450 to $460 million[10] - Adjusted EBITDA for Full Year 2025 is expected to be in the range of $120 to $125 million[10]

Acquisitions and Investments - The company acquired Hotel Interactive on January 19, 2024, enhancing its hosted buyer platform with 15 events in hospitality, food service, and healthcare sectors [27]. - On May 7, 2024, the company acquired the Blockchain Futurist Conference to expand its offerings in the blockchain sector [28]. - In 2025, Emerald completed acquisitions including JD Events LLC, This is Beyond Limited, and Insurtech Insights Limited, expanding its portfolio in the food service and insurance technology sectors [177]. - Onex committed to invest more than $300 million in Convex Group Limited, which is the lead underwriter of the Company's event cancellation insurance policies for 2022 to 2026 [134]. Financial Performance - Revenues for the year ended December 31, 2024, were $398.8 million, an increase of 4.0% compared to $382.8 million in 2023 [165]. - Net income for 2024 was $2.2 million, compared to a net loss of $8.2 million in 2023 [165]. - Operating income for 2024 was $46.8 million, compared to $34.7 million in 2023, reflecting a 34.0% increase [165]. - Adjusted EBITDA for 2024 was $101.7 million, up by $3.9 million or 4.0% from $97.8 million in 2023 [209]. - Free Cash Flow increased to $37.0 million in 2024, representing an increase of $8.2 million or 28.5% compared to $28.8 million in 2023 [209]. Revenue Sources and Trends - The Commerce division's revenue consists of subscription revenue, implementation fees, and professional services from its Elastic Suite and Bulletin platforms [46]. - The majority of exhibit space is sold within twelve months prior to each trade show, leading to potential lag time in revenue recognition based on economic conditions [190]. - Seasonal trends indicate that trade show revenues typically peak in the first and fourth quarters, influenced by the timing of events [190]. - Organic revenue for 2024 was $385.3 million, reflecting a growth of $21.3 million or 5.9% from $364.0 million in 2023 [209]. Operational Challenges - The company has faced challenges in securing desirable dates and locations for trade shows, which can significantly impact profitability and operations [80]. - Increased competition in the trade show market could adversely affect the company's business, financial condition, cash flows, and results of operations [84]. - The company has historically depended on a concentrated number of top trade shows for revenue generation, making it vulnerable to declines in performance [85]. - The company is subject to significant restrictions and covenants in its Second Amended and Restated Senior Secured Credit Facilities, including a financial covenant requiring a total first lien net secured leverage ratio of 5.50 to 1.00, tested quarterly [114]. Insurance and Risk Management - The aggregate limit for the renewed 2025 primary event cancellation insurance policy is $100 million, with additional policies for specific events covering approximately $8.3 million and $7.8 million [67]. - The company maintains various insurance policies, but coverage may not fully offset losses from business interruptions or event cancellations, particularly due to natural disasters [98]. - The company’s event cancellation insurance policies do not cover losses due to communicable disease outbreaks, which could materially affect financial results [1]. - The company faces risks associated with event cancellations, which may not be fully covered by insurance, impacting financial results [98]. Corporate Governance and Shareholder Matters - Onex beneficially owns approximately 91.6% of the company's outstanding common stock, allowing it to control major corporate decisions, potentially conflicting with the interests of other shareholders [130]. - The Company is classified as a "controlled company" under New York Stock Exchange rules, with Onex owning the majority of outstanding common stock [136]. - The board of directors approved a share repurchase program allowing for the repurchase of $25.0 million of common stock through December 31, 2025 [157]. - A total of 1,776,884 shares were repurchased during the fourth quarter of 2024, with an average price of $4.76 per share [158]. Environmental and Social Responsibility - The company aims to reduce greenhouse gas emissions by 50% by 2030 as part of its commitment to achieving net zero carbon emissions by 2050 [61]. - The company is committed to fostering a culture of respect and inclusion, with initiatives to support diverse backgrounds and perspectives among employees [62]. - The company has eliminated the college-degree requirement for various positions to expand the applicant pool and promote skills-based hiring [63]. Cybersecurity and Compliance - The Company has implemented an enterprise-wide information security program to manage cybersecurity risks, including third-party monitoring and incident response services [147]. - The company faces evolving cybersecurity risks that could lead to loss or theft of confidential information, resulting in reputational damage and financial losses [117]. - The company is subject to various U.S. and international privacy and consumer protection laws, and non-compliance could result in significant penalties or legal liabilities [122]. - The evolving data protection landscape, including the California Consumer Privacy Act, may require substantial operational changes and incur additional costs for compliance [123].

Financial Performance - For the year ended December 31, 2024, the estimated total revenue is projected to be at least $400 million, with Adjusted EBITDA expected to be at least $100 million[29]. - As of September 30, 2024, the company reported total revenue of $393.5 million and Adjusted EBITDA of $103.5 million[18]. - FY 2024 revenue is expected to be at least $400 million, with adjusted EBITDA projected to be at least $100 million[60]. - FY 2023 revenue reached $382.8 million, up from $325.9 million in FY 2022, representing a growth of approximately 17.4%[63]. - Adjusted EBITDA for FY 2023 was $98 million, compared to $240 million in FY 2022, indicating a decline of about 59%[70]. - Adjusted EBITDA excluding insurance proceeds for FY 2023 was $95 million, compared to $57 million in FY 2022[70]. Liquidity and Capital Structure - The company has ample liquidity of $299 million, consisting of $189 million in cash and cash equivalents and $110 million of undrawn revolver capacity[18]. - The estimated total capitalization is $1.367 billion, with a market capitalization of $958 million[21]. - The total debt to Adjusted EBITDA ratio is 4.0x, while the net debt to Adjusted EBITDA ratio is 2.1x[21]. - The net leverage ratio as of September 30, 2024, is 2.1x, within the targeted long-term range of 2.0 - 3.0x[66]. - Emerald is seeking to raise a new $415 million First Lien Term Loan to refinance its existing $409 million First Lien Term Loan due in 2026[18]. - A common stock dividend has been reinstated at an annualized rate of $12 million, or $0.06 per share, with a target payout ratio of up to 25% of free cash flow[66]. Business Segments and Market Position - The company operates across three business lines: Connections (~90% of revenue), Content (~5% of revenue), and Commerce (~5% of revenue)[32]. - The Connections segment includes leading B2B trade shows and conferences, generating revenue from booth space sales, registration fees, and sponsorship fees[33]. - The US B2B trade show market represents a total addressable market (TAM) of $13.5 billion, with the largest trade show organizers accounting for only 8% of the overall market[43]. - Emerald's largest five shows contribute 29% of FY 2024E revenues, with no single customer exceeding 1% of total revenue[51]. - 90% of FY 2024E revenues are expected to come from live events, with over 90% of trade show franchises holding market-leading positions[51]. - The company has completed over 30 acquisitions in the last decade, totaling $897 million in capital deployed, enhancing its market position[52]. - The company completed 9 acquisitions over the past 3.5 years to supplement organic growth and diversify exposure[66]. Growth and Strategic Initiatives - The company anticipates continued growth and expansion in its market presence, leveraging its diversified portfolio across various sectors[32]. - The company anticipates a CAGR of approximately 3.0% in the US market from 2024E to 2028E[43]. - The company aims for adjusted EBITDA margin expansion to over 35% in the coming years, driven by organic growth and value-based pricing strategies[68]. - The long-term growth plan targets mid-high single-digit organic growth, supported by enhanced enterprise and international sales efforts[68]. - Significant revenue visibility is noted due to advanced booking of events, contributing to steady organic revenue growth[68]. Technology and Innovation - The company is investing approximately $5-6 million annually in upgraded technology related to its Elastic Suite offering[55]. - The average number of new leads generated per trade show is 60%, with 64% of CMOs planning to increase investments in in-person events[47].

Core Insights - The global watermelon seeds market is projected to reach USD 995.4 million by 2030, with a compound annual growth rate (CAGR) of 5.8% from 2025 to 2030 [1][7]. Market Drivers - Increasing cases of obesity and related health issues are driving demand for healthier food options, including watermelon seeds [2]. - The rising demand for organic, gluten-free, and non-GMO products is expected to further fuel market growth [2]. - Watermelon seeds are low in calories and fat while being rich in protein, making them popular in various seed-based food products [3]. Distribution Channels - The market is segmented into offline and online distribution channels, with online sales projected to grow at a CAGR of 6.6% during the forecast period [3][5]. - The growing popularity of e-commerce platforms, particularly Amazon, is a key factor driving the growth of the online segment [3]. Regional Insights - The Asia Pacific region is anticipated to be the fastest-growing market from 2019 to 2025, driven by health consciousness, rising disposable income, and an expanding e-commerce sector [4]. - North America held a dominant market share of 31.2% in 2024, attributed to the increasing demand for nutrient-dense superfoods like watermelon seeds [5]. Market Segmentation - Raw watermelon seeds accounted for a significant market share of 53.8% in 2024 due to growing awareness of their nutritional benefits [5]. - Roasted watermelon seeds are expected to see increased demand as consumers seek healthy and tasty snack options [5]. Competitive Landscape - Key players in the watermelon seeds market include Bayer CropScience, Vilmorin & Cie, Syngenta, and others [6]. - The report provides insights into market estimates, forecasts, and competitive strategies of these companies [6].

Financial Data and Key Metrics Changes - For Q3 2024, total revenue was $72.6 million, slightly up from $72.5 million in the prior year, driven by $4.2 million from acquisitions and scheduling adjustments, offset by $5 million from discontinued events and a $3.3 million organic decline [14][15] - Organic revenue declined 5.3% to $58.7 million compared to $62 million in the prior year quarter, while year-to-date organic revenue was up 4.8% [15] - Adjusted EBITDA grew 56.3% to $12.5 million, resulting in an adjusted EBITDA margin of approximately 17.2% [16] Business Line Data and Key Metrics Changes - The company discontinued 20 unprofitable events totaling $20 million in historic run rate revenue, which is expected to positively impact growth and margin in 2025 [5][11] - The Content business, accounting for about 5% of total revenue, is experiencing softness, with a projected year-over-year decline in 2024 revenue [9][10] Market Data and Key Metrics Changes - The company is seeing strong growth in its existing show portfolio, with positive pacing into 2025, indicating a stronger and more broad-based growth compared to the previous year [8][29] - The advertising environment remains challenging, impacting the Content business, which has seen a low-to-mid single-digit million-dollar shortfall versus expectations for 2024 [9][24] Company Strategy and Development Direction - The company is focused on portfolio optimization, which includes discontinuing underperforming events and investing in more profitable assets [4][7] - Future growth is expected to be supported by a strong collection of events and a shift towards in-person marketing strategies, as companies are reallocating budgets towards effective channels like live events [12][13] Management Comments on Operating Environment and Future Outlook - Management anticipates that the performance in the second half of 2024 will not meet expectations due to macroeconomic factors and operational impacts, leading to a reduction in full-year guidance [4][21] - The company remains confident in the long-term trends for in-person events and believes that the recent decisions will strengthen growth prospects for 2025 and beyond [13][41] Other Important Information - The company has a healthy cash balance of $188.9 million and total liquidity of $298.9 million, with a net debt of $221.2 million [18] - A quarterly dividend of $0.015 per share was declared, implying an annualized cash dividend amount of $12 million [20] Q&A Session Summary Question: Why is the EBITDA outlook reduced despite canceling unprofitable shows? - Management explained that the cancellation of events resulted in already incurred SG&A expenses that were not offset by revenue, leading to a timing difference in financial impact [23] Question: What is the profile of the discontinued events? - The discontinued events were largely extensions of existing brands that did not meet performance expectations, with the exception of NBA Con, which was a significant event [33] Question: How is the business tracking relative to pre-pandemic levels? - Management noted that while some brands have exceeded pre-pandemic levels, several underperforming events have not recovered, and the business has evolved significantly since then [34] Question: How is the company progressing with international expansion? - The company has invested in an international sales team and is beginning to see activity from various countries, although full impact will take time [35] Question: What is the status of the hosted buyer event affected by the hurricane? - The event has been canceled for this year [37] Question: How is the company integrating AI across the business? - AI initiatives are in progress, primarily for internal use in marketing, with plans to scale successful tests [38]

Emerald Holding, Inc. Third Quarter 2024 October 30, 2024 Legal Disclaimer Forward-Looking Statements The information provided in this presentation is for general informational purposes only. This presentation contains certain forward-looking statements regarding Emerald Holding, Inc. and its subsidiaries (the "Company"), including, without limitation, statements regarding the Company's ability to continue staging live events and scale its business beyond pre-COVID levels; statements about general economic ...

Revenue Performance - Revenues for Q3 2024 were $72.6 million, a slight increase of $0.1 million or 0.1% compared to Q3 2023, driven by $4.2 million from acquisitions and scheduling adjustments, but offset by a $5.0 million decline from discontinued events and a $3.3 million organic decline [2]. - Organic Revenues for Q3 2024 were $58.7 million, a decrease of $3.3 million or 5.3% from $62.0 million in Q3 2023 [2]. - Revenues for the three months ended September 30, 2024, were $72.6 million, a slight increase of 0.1% compared to $72.5 million in the same period of 2023 [31]. - Total revenues for the three months ended September 30, 2024, were $72.6 million, slightly up from $72.5 million in the same period of 2023, representing a 0.1% increase [37]. - For the nine months ended September 30, 2024, total revenues increased by 3.8% to $292.0 million, compared to $281.3 million in 2023 [31]. Net Income and Loss - The company reported a net loss of $11.1 million for Q3 2024, compared to a net income of $10.7 million in Q3 2023 [2]. - The company reported a net loss of $11.1 million for the three months ended September 30, 2024, compared to a net income of $10.7 million in the same period of 2023 [31]. - Basic loss per share for the three months ended September 30, 2024, was $(0.05), compared to $(0.11) for the same period in 2023 [31]. Adjusted EBITDA - Adjusted EBITDA for Q3 2024 was $12.5 million, an increase of $1.7 million or 15.7% from $10.8 million in Q3 2023 [2]. - Adjusted EBITDA for the three months ended September 30, 2024, was $12.5 million, compared to $10.8 million in the same period of 2023, reflecting a significant increase [38]. - Adjusted EBITDA excluding event cancellation insurance proceeds for the three months ended September 30, 2024, was $12.5 million, compared to $8.0 million in the same period of 2023 [38]. Cash Flow and Capital Management - Free Cash Flow for Q3 2024 was $6.7 million, a significant increase of $4.0 million or 148.1% from $2.7 million in Q3 2023 [13]. - Free cash flow for the three months ended September 30, 2024, was $6.7 million, up from $5.5 million in the same period of 2023, indicating a 21.8% increase [39]. - The company repurchased $3.6 million of its common stock in Q3 2024 at an average price of $4.85 per share [17]. - A dividend of $0.015 per share was declared for the quarter ending December 31, 2024 [16]. - The company intends to continue paying regular quarterly dividends, subject to Board approval and various financial factors [30]. Guidance and Future Outlook - The company updated its FY 2024 guidance, now expecting at least $400 million in revenue and at least $100 million in Adjusted EBITDA [3]. - The company anticipates improved results in H1 2025, driven by accelerated growth in its Connections business [4]. - The company is focused on returning to pre-COVID levels and exploring avenues for organic growth amidst ongoing economic uncertainties [30]. Assets and Liabilities - Total current assets as of September 30, 2024, were $312.3 million, slightly up from $310.9 million as of December 31, 2023 [32]. - Total liabilities increased to $668.7 million as of September 30, 2024, compared to $649.3 million at the end of 2023 [33]. - The company had cash and cash equivalents of $188.9 million as of September 30, 2024, down from $204.2 million at the end of 2023 [32]. Event Discontinuation and Scheduling Adjustments - The company discontinued 20 smaller, unprofitable events, which had a historical run-rate revenue of $20 million [3]. - The company experienced a decrease in scheduling adjustments, with a negative impact of $9.7 million for the three months ended September 30, 2024 [36]. - Total other income, net for the three months ended September 30, 2024, was $0, down from $2.8 million in the same period of 2023 [40].

Financial Performance - Total revenues for the three months ended September 30, 2024, were $72.6 million, a slight increase from $72.5 million in the same period of 2023[13]. - Net loss attributable to Emerald Holding, Inc. for the three months ended September 30, 2024, was $11.1 million, compared to a net income of $10.7 million in the same period of 2023[13]. - Revenues for the three months ended September 30, 2024, were $72.6 million, a slight increase of $0.1 million or 0.1% compared to $72.5 million in the same period of 2023[170]. - Revenues for the nine months ended September 30, 2024, were $292.0 million, an increase of $10.7 million or 3.8% from $281.3 million in the same period of 2023[202]. - Organic revenue for the same period was $274.8 million, up $12.5 million or 4.8% from $262.3 million in 2023[201]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $68.6 million, an increase of $6.7 million or 10.8% from $61.9 million in 2023[199]. - Adjusted EBITDA for the Connections segment for the three months ended September 30, 2024, was $23.6 million, up from $22.5 million in 2023[128]. - Adjusted EBITDA increased by $1.7 million to $12.5 million for the three months ended September 30, 2024, compared to $10.8 million for the same period in 2023[196]. Assets and Liabilities - Total current assets as of September 30, 2024, were $312.3 million, up from $310.9 million as of December 31, 2023[11]. - Total liabilities increased to $668.7 million as of September 30, 2024, compared to $649.3 million as of December 31, 2023[11]. - Cash and cash equivalents decreased to $188.9 million as of September 30, 2024, from $204.2 million as of December 31, 2023[11]. - Current deferred revenues as of September 30, 2024, were $190.2 million, an increase from $174.3 million as of December 31, 2023[32]. - The company reported an increase in accounts payable and other current liabilities to $46.3 million as of September 30, 2024, from $46.6 million as of December 31, 2023[11]. - The total stockholders' equity increased to $391.1 million as of September 30, 2024, from a deficit of $(92.5) million as of December 31, 2023[12]. Acquisitions - The Company acquired GRC World Forums for a total estimated purchase price of $2.9 million, including an initial cash payment of $1.2 million[43]. - The acquisition of Over the Pond Media (Glamping Americas) was completed for a total estimated purchase price of $2.6 million, with an initial cash payment of $2.3 million[50]. - The Company executed an acquisition of Hotel Interactive for a total estimated purchase price of $13.5 million, including an initial cash payment of $11.6 million[57]. - The Futurist acquisition generated revenues of $1.6 million and net income of $0.3 million during the three and nine months ended September 30, 2024[56]. - Identified intangible assets associated with GRC included trade name and customer relationship intangible assets valued at $0.4 million and $1.0 million, respectively[48]. - The total purchase price for the acquisition, including working capital adjustments, was $13.5 million, with goodwill calculated at $11.8 million[62]. Stock and Dividends - The Company paid Preferred Stock Cash Dividends totaling $8.6 million, or $0.12 per share, for the periods ending March 31, 2024, and September 30, 2023[92]. - The Company declared a dividend of $0.015 per share for the quarter ending December 31, 2024, payable on November 21, 2024[130]. - Emerald Holding, Inc. declared a quarterly dividend of $0.015 per share, payable on November 21, 2024[134]. - The Company repurchased 5,064,140 shares for $16.9 million during the nine months ended September 30, 2023, under the October 2022 Share Repurchase Program[104]. - Under the November 2023 Share Repurchase Program, the Company repurchased 1,038,589 shares for $5.4 million during the nine months ended September 30, 2024, with $19.6 million remaining available for repurchases[105]. Expenses and Costs - Selling, general and administrative expenses decreased by $0.8 million, or 1.9%, to $40.8 million for the three months ended September 30, 2024, compared to $41.6 million for the same period in 2023[173]. - Depreciation and amortization expense decreased by $1.7 million, or 19.3%, to $7.1 million for the three months ended September 30, 2024, from $8.8 million for the comparable period in 2023[174]. - Interest expense for the three months ended September 30, 2024, was $12.3 million, slightly up from $12.1 million in the same period of 2023, an increase of 1.7%[164]. - Interest expense increased to $36.4 million for the nine months ended September 30, 2024, up $4.9 million or 15.6% from $31.5 million in 2023[198]. - The company incurred a preferred stock cash dividend of $8.6 million for both periods reported[19]. Impairment and Charges - Intangible asset impairment charges for the three months ended September 30, 2024, were $6.3 million, with no charges in the same period of 2023[13]. - The company recognized impairment charges of $6.3 million for certain indefinite-lived trade name intangible assets during the three and nine months ended September 30, 2024[67]. - Intangible asset impairment charges of $6.3 million were recorded for the nine months ended September 30, 2024, compared to zero in the same period of 2023[208]. Market and Economic Conditions - Increased inflation and interest rates present risks related to labor costs, venue costs, and overall financing expenses[143]. - The trade show industry is highly fragmented, with the five largest companies, including Emerald, comprising only 8% of the U.S. market, presenting significant acquisition opportunities[143]. - The majority of exhibit space is sold during the twelve months prior to each trade show, leading to a lag time in reflecting economic conditions in financial results[143].

Emerald Holding, Inc. (NYSE:EEX) Q2 2024 Earnings Conference Call August 7, 2024 8:30 AM ET Company Participants Herve Sedky - President and Chief Executive Officer David Doft - Chief Financial Officer Conference Call Participants Barton Crockett - Rosenblatt Securities Allen Klee - Maxim Group Operator Good morning and welcome to the Emerald Holding, Inc. Second Quarter 2024 Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we'll conduct a question-and-a ...

Financial Performance - Total revenues for the three months ended June 30, 2024, were $86.0 million, a slight decrease of 0.6% compared to $86.5 million for the same period in 2023[12]. - Operating income for the six months ended June 30, 2024, was $30.7 million, significantly up from $15.8 million in the same period of 2023, reflecting improved operational efficiency[12]. - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $(4.8) million, compared to a net loss of $(18.5) million for the same period in 2023, indicating a reduction in losses[12]. - Basic loss per share for the three months ended June 30, 2024, was $(0.03), an improvement from $(0.29) in the same period of 2023[12]. - For the six months ended June 30, 2024, net income was $8.2 million, compared to a net loss of $1.0 million for the same period in 2023[17]. - The net loss for the three months ended June 30, 2024, was $2.8 million, a reduction of 65.4% from a net loss of $8.1 million in 2023[129]. - Revenues for the six months ended June 30, 2024, were $219.4 million, an increase of $10.6 million, or 5.1%, from $208.8 million in 2023[165]. - Adjusted EBITDA for the six months ended June 30, 2024, increased by $5.0 million to $56.1 million from $51.1 million in the comparable period in 2023[190]. Assets and Liabilities - Total current assets as of June 30, 2024, were $311.3 million, slightly up from $310.9 million as of December 31, 2023[9]. - Total liabilities increased to $655.0 million as of June 30, 2024, compared to $649.3 million as of December 31, 2023[10]. - Cash and cash equivalents decreased to $193.2 million as of June 30, 2024, down from $204.2 million as of December 31, 2023[9]. - The company reported a total stockholders' equity of $407.6 million as of June 30, 2024, a significant increase from a deficit of $(92.5) million as of December 31, 2023[11]. - The company’s deferred revenues increased to $175.5 million as of June 30, 2024, compared to $174.3 million as of December 31, 2023[10]. - Total assets at fair value as of June 30, 2024, were $193.2 million, primarily consisting of cash and money market mutual funds[58]. - Total liabilities at fair value were $10.4 million, including contingent consideration of $9.6 million[58]. Cash Flow and Investments - The company reported net cash provided by operating activities of $17.1 million for the six months ended June 30, 2024, compared to $16.2 million for the same period in 2023[17]. - The company experienced a net cash used in investing activities of $(16.9) million for the six months ended June 30, 2024, compared to $(15.9) million for the same period in 2023[17]. - Free Cash Flow for the six months ended June 30, 2024, was $11.9 million, an increase of $2.1 million, or 21.4%, from $9.8 million in 2023[163]. - Net cash used in financing activities decreased by $23.5 million to $11.2 million for the six months ended June 30, 2024, compared to $34.7 million in the same period of 2023[202]. Acquisitions and Goodwill - The company acquired the Blockchain Futurist Conference for a total estimated purchase price of $1.9 million, including $1.1 million in cash and $0.9 million in contingent consideration[36]. - The acquisition of Hotel Interactive was completed for $13.5 million, with an initial cash payment of $11.6 million and contingent consideration of $2.7 million[37]. - Revenue generated from the Hotel Interactive acquisition was $1.7 million for the three months ended June 30, 2024, and $4.5 million for the six months ended June 30, 2024[39]. - The company recorded goodwill of $1.8 million from the Futurist acquisition and $11.8 million from the Hotel Interactive acquisition[36][39]. - Goodwill increased from $553.9 million at December 31, 2023, to $567.5 million at June 30, 2024, following the acquisition of $13.6 million in goodwill[49]. Expenses and Cost Management - Selling, general and administrative expenses increased by $4.4 million, or 4.9%, to $95.0 million from $90.6 million in the comparable period in 2023[169]. - General corporate and other expenses increased to $12.9 million for the three months ended June 30, 2024, from $11.5 million in the same period of 2023[95]. - Cost of revenues for the three months ended June 30, 2024, was $33.1 million, an increase of $0.3 million, or 0.9%, from $32.8 million in the comparable period of 2023[136]. - Depreciation and amortization expense significantly decreased by 45.7% to $7.0 million from $12.9 million in 2023[129]. - Interest expense for the six months ended June 30, 2024, totaled $24.1 million, compared to $19.4 million for the same period in 2023[56]. Stock and Dividends - The Company paid a Preferred Stock Cash Dividend of $8.6 million on March 28, 2024, for the period ending March 31, 2024[68]. - The Company had no cash dividends declared or paid for common stock during the first and second quarters of 2024 and 2023[76]. - The mandatory conversion of redeemable convertible preferred stock occurred on May 2, 2024, resulting in the conversion of 71,402,607 shares into 140,781,525 shares of common stock[66]. Strategic Focus and Market Position - The company plans to continue focusing on operational improvements and strategic initiatives to enhance profitability in the upcoming quarters[12]. - The trade show industry is highly fragmented, with the five largest companies, including the company, comprising only 8% of the U.S. market, presenting ongoing acquisition opportunities[108]. - The company aims to enhance the value proposition for exhibitors and attendees, driving strong demand and premium pricing for exhibit space and sponsorship opportunities[106].