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Emerald Holding(EEX) - 2024 Q3 - Quarterly Report
EEXEmerald Holding(EEX)2024-10-30 10:01
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Financial Performance - Total revenues for the three months ended September 30, 2024, were 72.6million,aslightincreasefrom72.6 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 11.1million,comparedtoanetincomeof11.1 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 72.6million,aslightincreaseof72.6 million, a slight increase of 0.1 million or 0.1% compared to 72.5millioninthesameperiodof2023[170].−RevenuesfortheninemonthsendedSeptember30,2024,were72.5 million in the same period of 2023[170]. - Revenues for the nine months ended September 30, 2024, were 292.0 million, an increase of 10.7millionor3.810.7 million or 3.8% from 281.3 million in the same period of 2023[202]. - Organic revenue for the same period was 274.8million,up274.8 million, up 12.5 million or 4.8% from 262.3millionin2023[201].−AdjustedEBITDAfortheninemonthsendedSeptember30,2024,was262.3 million in 2023[201]. - Adjusted EBITDA for the nine months ended September 30, 2024, was 68.6 million, an increase of 6.7millionor10.86.7 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 23.6million,upfrom23.6 million, up from 22.5 million in 2023[128]. - Adjusted EBITDA increased by 1.7millionto1.7 million to 12.5 million for the three months ended September 30, 2024, compared to 10.8millionforthesameperiodin2023[196].AssetsandLiabilities−TotalcurrentassetsasofSeptember30,2024,were10.8 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 310.9millionasofDecember31,2023[11].−Totalliabilitiesincreasedto310.9 million as of December 31, 2023[11]. - Total liabilities increased to 668.7 million as of September 30, 2024, compared to 649.3millionasofDecember31,2023[11].−Cashandcashequivalentsdecreasedto649.3 million as of December 31, 2023[11]. - Cash and cash equivalents decreased to 188.9 million as of September 30, 2024, from 204.2millionasofDecember31,2023[11].−CurrentdeferredrevenuesasofSeptember30,2024,were204.2 million as of December 31, 2023[11]. - Current deferred revenues as of September 30, 2024, were 190.2 million, an increase from 174.3millionasofDecember31,2023[32].−Thecompanyreportedanincreaseinaccountspayableandothercurrentliabilitiesto174.3 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 46.6millionasofDecember31,2023[11].−Thetotalstockholders′equityincreasedto46.6 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)millionasofDecember31,2023[12].Acquisitions−TheCompanyacquiredGRCWorldForumsforatotalestimatedpurchasepriceof(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 1.2million[43].−TheacquisitionofOverthePondMedia(GlampingAmericas)wascompletedforatotalestimatedpurchasepriceof1.2 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 2.3million[50].−TheCompanyexecutedanacquisitionofHotelInteractiveforatotalestimatedpurchasepriceof2.3 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 11.6million[57].−TheFuturistacquisitiongeneratedrevenuesof11.6 million[57]. - The Futurist acquisition generated revenues of 1.6 million and net income of 0.3millionduringthethreeandninemonthsendedSeptember30,2024[56].−IdentifiedintangibleassetsassociatedwithGRCincludedtradenameandcustomerrelationshipintangibleassetsvaluedat0.3 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 1.0million,respectively[48].−Thetotalpurchasepricefortheacquisition,includingworkingcapitaladjustments,was1.0 million, respectively[48]. - The total purchase price for the acquisition, including working capital adjustments, was 13.5 million, with goodwill calculated at 11.8million[62].StockandDividends−TheCompanypaidPreferredStockCashDividendstotaling11.8 million[62]. Stock and Dividends - The Company paid Preferred Stock Cash Dividends totaling 8.6 million, or 0.12pershare,fortheperiodsendingMarch31,2024,andSeptember30,2023[92].−TheCompanydeclaredadividendof0.12 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 0.015pershare,payableonNovember21,2024[134].−TheCompanyrepurchased5,064,140sharesfor0.015 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 5.4millionduringtheninemonthsendedSeptember30,2024,with5.4 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 0.8million,or1.90.8 million, or 1.9%, to 40.8 million for the three months ended September 30, 2024, compared to 41.6millionforthesameperiodin2023[173].−Depreciationandamortizationexpensedecreasedby41.6 million for the same period in 2023[173]. - Depreciation and amortization expense decreased by 1.7 million, or 19.3%, to 7.1millionforthethreemonthsendedSeptember30,2024,from7.1 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 12.3million,slightlyupfrom12.3 million, slightly up from 12.1 million in the same period of 2023, an increase of 1.7%[164]. - Interest expense increased to 36.4millionfortheninemonthsendedSeptember30,2024,up36.4 million for the nine months ended September 30, 2024, up 4.9 million or 15.6% from 31.5millionin2023[198].−Thecompanyincurredapreferredstockcashdividendof31.5 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 6.3million,withnochargesinthesameperiodof2023[13].−Thecompanyrecognizedimpairmentchargesof6.3 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].