Emerald Holding(EEX) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2025, increased to $147.7 million, up 10.2$133.4 million in the same period of 2024[16] - Operating income rose to $35.8 million, compared to$24.3 million for the three months ended March 31, 2024, reflecting a 47.7% increase[16] - Net income attributable to Emerald Holding, Inc. was $15.3 million, a significant increase from$11.0 million in the prior year, representing a 39.1% growth[16] - Basic income per share for the three months ended March 31, 2025, was $0.08, compared to$0.00 for the same period in 2024[16] - Adjusted EBITDA for the same period was $53.6 million, reflecting a$12.8 million increase or 31.4% from $40.8 million in 2024[154] - Free Cash Flow increased to$10.8 million, up $6.0 million or 125.0$4.8 million in the prior year[154] - Net income for the three months ended March 31, 2025, was $15.3 million, a rise of$4.3 million or 39.1% from $11.0 million in 2024[156] Assets and Liabilities - Total current assets increased to$413.6 million as of March 31, 2025, compared to $306.9 million at December 31, 2024, marking a 34.7$790.9 million as of March 31, 2025, compared to $662.8 million at December 31, 2024, reflecting a 19.4$506.6 million, with a significant portion attributed to the Second Amended and Restated Term Loan Facility[63] - Cash and cash equivalents at the end of the period were $276.8 million, up from$194.8 million at the beginning of the year, indicating a 42.1% increase[22] Revenue Segments - The Connections segment generated $138.3 million in revenue for the three months ended March 31, 2025, compared to$123.4 million in 2024, accounting for approximately 93.6% of total revenues[34] - Revenue generated from the Insurtech acquisition during the three months ended March 31, 2025, was $4.6 million, with a net income contribution of$1.7 million[50] - Organic revenue for the three months ended March 31, 2025, was $139.2 million, an increase of$7.4 million or 5.6% from $131.8 million in 2024[158] Cash Flow - Net cash provided by operating activities was$12.6 million for the three months ended March 31, 2025, compared to $7.3 million in the same period of 2024, a 72.6$21.4 million in Q1 2025 from $14.1 million in Q1 2024, primarily due to an$8.0 million increase related to business acquisitions[196] - Net cash provided by financing activities rose to $90.8 million in Q1 2025, compared to cash used of$10.6 million in Q1 2024, driven by net proceeds of $105.9 million from the issuance of credit facilities[198] Share Repurchase and Dividends - The company repurchased 2,029 shares of common stock during the quarter, resulting in a reduction of$8.8 million in additional paid-in capital[18] - The company approved a share repurchase program allowing for the repurchase of $25.0 million of common stock through December 31, 2025[118] - The board of directors declared a dividend of$0.015 per share for the quarter ending June 30, 2025, payable on May 22, 2025[121] Tax and Interest - The effective tax rate for the three months ended March 31, 2025, was 26.1%, up from 24.1% in 2024[106] - The company recorded a provision for income taxes of $5.4 million for the three months ended March 31, 2025, compared to$3.5 million in 2024, marking a 54.3% increase[106] - Total interest expense for the three months ended March 31, 2025, was $17.4 million, an increase from$12.1 million in the same period of 2024, representing a 43.8% increase[78] Acquisitions - The acquisition of Insurtech Insights was completed for a total estimated purchase price of $25.2 million, including an initial cash payment of$19.6 million and contingent consideration of $4.8 million[48] - On May 2, 2025, the Company completed the acquisition of This is Beyond Limited for approximately$138.0 million, funded with cash from operations[119][122] Operational Insights - The Company focuses on generating organic growth by enhancing exhibitor and attendee participation at trade shows, which allows for modest annual increases in booth space pricing[129] - The trade show industry is highly fragmented, with the five largest companies, including the Company, comprising only 8% of the U.S. market, presenting growth opportunities through acquisitions[131] - The Company maintains event cancellation insurance to protect against losses from unavoidable cancellations, although recent policies do not cover losses due to communicable diseases[137] Miscellaneous - The company reported a negative working capital, which is beneficial as it indicates cash is received in advance of expenses, enhancing cash flow efficiency[149] - Management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective at the reasonable assurance level as of March 31, 2025[211]