Emerald Holding(US:EEX)2024-08-07 10:04Financial 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].