Emerald Holding(US:EEX)2025-10-31 20:02Financial Performance - Revenues for the three months ended September 30, 2025, were $77.5 million, a 12.7% increase from $72.6 million in the same period of 2024[17] - Net loss attributable to Emerald Holding, Inc. for the three months ended September 30, 2025, was $14.4 million, compared to a net loss of $11.1 million in the same period of 2024[20] - The company reported a basic loss per share of $0.07 for the three months ended September 30, 2025, compared to a basic loss per share of $0.05 for the same period in 2024[17] - The company experienced a net loss of $11.1 million for the three months ended September 30, 2024, compared to a net loss of $2.9 million for the nine months ended September 30, 2024[31] - The net loss for the three months ended September 30, 2025, was $14.4 million, compared to a net loss of $11.1 million in the same period of 2024[181] - For the nine months ended September 30, 2025, revenues increased by $38.7 million, or 13.3%, to $330.7 million, with organic revenue growth of $3.0 million, or 1.0%[211] - Net loss for the nine months ended September 30, 2025, was $0.5 million, an improvement from a net loss of $2.9 million in the same period of 2024[213] Assets and Liabilities - Total assets increased to $1,217.3 million as of September 30, 2025, up from $1,048.7 million as of December 31, 2024, representing a 16.1% growth[15] - Total current liabilities rose to $287.0 million as of September 30, 2025, compared to $241.3 million as of December 31, 2024, indicating a 19.0% increase[15] - The accumulated deficit increased to $650.6 million as of September 30, 2025, from $650.1 million as of December 31, 2024[15] - The company’s total stockholders' equity decreased to $369.5 million as of September 30, 2025, from $385.9 million as of December 31, 2024[15] - As of September 30, 2025, the long-term debt net of current maturities was $499.8 million, an increase from $398.5 million as of December 31, 2024, representing a 25.4% increase[87] Cash Flow and Investments - Cash and cash equivalents decreased to $95.4 million as of September 30, 2025, down from $194.8 million as of December 31, 2024[15] - The company reported a significant increase in cash used in investing activities, totaling $201.1 million for the nine months ended September 30, 2025, compared to $22.8 million for the same period in 2024[31] - The company ended the period with cash and cash equivalents of $95.4 million, down from $194.8 million at the beginning of the period, reflecting a decrease of approximately 51%[31] Expenses - Selling, general and administrative expenses for the three months ended September 30, 2025, were $51.3 million, up from $40.8 million in the same period of 2024, reflecting a 25.9% increase[17] - Stock-based compensation increased to $8.5 million for the nine months ended September 30, 2025, up from $4.7 million for the same period in 2024, representing an increase of approximately 80%[31] - Interest expense for the three months ended September 30, 2025, was $10.7 million, down from $12.3 million in the same period of 2024[17] - Depreciation and amortization expense was $22.7 million for the nine months ended September 30, 2025, compared to $21.2 million in 2024, showing a rise of approximately 7.1%[213] Acquisitions - The acquisition of Generis Group on August 8, 2025, had a total estimated purchase price of $64.6 million, including an initial cash payment of $51.6 million[57] - The acquisition of This is Beyond on May 2, 2025, had a total estimated purchase price of $165.5 million, including an initial cash payment of $122.1 million[64] - Emerald Holding, Inc. made an acquisition of businesses, net of cash acquired, amounting to $192.3 million during the nine months ended September 30, 2025[31] - The company acquired Insurtech Insights Limited for a total estimated purchase price of $27.9 million, which included an initial cash payment of $19.4 million and contingent consideration valued at $4.8 million[72] Revenue Breakdown - Trade show and other events revenues accounted for approximately 87.1% of total revenues for the three months ended September 30, 2025, compared to 86.0% for the same period in 2024[45] - Revenue generated from the acquisition of This is Beyond was $12.4 million for the three months ended September 30, 2025, and $29.5 million for the nine months ended September 30, 2025[66] - Revenues for the Connections segment increased by $5.1 million, or 8.2%, to $67.5 million for the three months ended September 30, 2025, driven primarily by $12.5 million from acquisitions, offset by a $4.5 million organic revenue decline[193] Stock and Dividends - The Company declared a dividend of $0.015 per share payable on November 20, 2025[142] - The Company repurchased 116,094 shares for $0.5 million and 3,776,218 shares for $16.2 million during the three and nine months ended September 30, 2025, with $20.3 million remaining available for share repurchases under the April 2025 Share Repurchase Program[119] Tax and Compliance - The company recorded a benefit from income taxes of $3.5 million for the three months ended September 30, 2025, resulting in an effective tax rate of 19.6%[129] - The company’s liabilities for unrecognized tax benefits were $1.8 million as of September 30, 2025, compared to $1.5 million as of December 31, 2024[130] Market and Economic Conditions - Increased inflation and interest rates pose risks related to labor and venue costs, potentially impacting pricing strategies[155] - The trade show industry is highly fragmented, with the five largest companies, including Emerald, comprising only 8% of the U.S. market, presenting acquisition opportunities[155]