Emerald Holding(US:EEX)2024-10-30 10:01Financial 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].