Emerald Holding(US:EEX)2021-07-30 20:01Financial Performance - Net loss for the three months ended June 30, 2021, was $46.5 million compared to a net income of $9.9 million for the same period in 2020, indicating a substantial decline [19]. - Revenues for the six months ended June 30, 2021, were $27.9 million, down from $106.7 million for the same period in 2020, a decrease of approximately 73.8% [19]. - Basic loss per share for the three months ended June 30, 2021, was $(0.75), compared to earnings of $0.13 per share for the same period in 2020 [19]. - For the six months ended June 30, 2021, the net loss was $61.8 million, a significant improvement compared to a net loss of $560.2 million for the same period in 2020 [27]. - Revenues for the three months ended June 30, 2021, were $15.0 million, an increase of $8.0 million or 114.3% from $7.0 million in the same period of 2020 [197]. - Organic revenues for the same period were $11.6 million, up $5.3 million or 84.1% from $6.3 million in the prior year [196]. Assets and Liabilities - Total assets decreased from $1,054.4 million as of December 31, 2020, to $1,047.0 million as of June 30, 2021, a decline of approximately 0.7% [15]. - Current liabilities increased significantly from $115.6 million to $171.6 million, representing an increase of 48.4% [15]. - Total stockholders' equity decreased from $394.5 million to $333.2 million, a decline of approximately 15.5% [15]. - The accumulated deficit increased from $695.2 million to $757.0 million, reflecting a worsening financial position [15]. - Cash and cash equivalents at the end of the period were $302.8 million, up from $218.6 million at the end of June 30, 2020 [27]. - Current deferred revenues were $119.2 million as of June 30, 2021, up from $48.6 million as of December 31, 2020 [56]. Expenses - Selling, general and administrative expenses rose to $33.1 million for the three months ended June 30, 2021, compared to $25.1 million for the same period in 2020, an increase of 31.9% [19]. - Interest expense for the three months ended June 30, 2021, was $4.1 million, down from $5.6 million for the same period in 2020 [19]. - The company recorded stock-based compensation expense of $5.8 million for the six months ended June 30, 2021, compared to $2.7 million for the same period in 2020 [27]. - Provision for income taxes was $10.9 million, an increase of $7.7 million or 240.6% from $3.2 million in the prior year [192]. Acquisitions and Investments - The Company acquired PlumRiver Technologies and EDspaces for total purchase prices of $46.4 million and $3.6 million, respectively, in December 2020 [72]. - In April 2021, the Company acquired Sue Bryce Education and The Portrait Masters for a total purchase price of $7.7 million [72]. - The PlumRiver acquisition had a total estimated purchase price of $46.4 million, which included an initial cash payment of $30.0 million and contingent consideration with an estimated fair value of $10.0 million [75]. Market and Operational Insights - The COVID-19 pandemic has had a significant adverse impact on the Company's revenues and financial position, leading to cancellations and postponements of trade shows [50]. - The trade show industry is highly fragmented, with the three largest companies, including the company, comprising only 10% of the U.S. market, presenting ongoing acquisition opportunities [164]. - The company generates over 95% of its sales through its employees, with less than 5% from third-party sales agents [168]. - The company operates in two reportable segments: Commerce and Design and Technology, with a focus on leveraging trade shows and digital tools to enhance customer experiences [157]. Cash Flow and Liquidity - The company generated net cash provided by operating activities of $26.7 million for the six months ended June 30, 2021, compared to a net cash used in operating activities of $22.6 million for the same period in 2020 [27]. - The company reduced its expense structure across all key areas of discretionary spending to strengthen its liquidity position [34]. - Management believes current financial resources will be sufficient to fund liquidity requirements for the next twelve months [42]. Stock and Shareholder Information - The Company had 71,442,407 shares of 7% Series A Convertible Participating Preferred Stock outstanding, convertible into 193,236,067 shares of common stock as of June 30, 2021 [134]. - The Company suspended its regular quarterly cash dividend on common stock starting from the second quarter of 2020 due to the negative impact of COVID-19 [114]. - The October 2020 Share Repurchase Program was authorized for a total of $20.0 million, with $14.2 million remaining available for repurchases as of June 30, 2021 [115]. - The Company repurchased 726,895 shares for $3.9 million and 929,103 shares for $5.1 million during the three and six months ended June 30, 2021, respectively [115].