Emerald Holding(US:EEX)2022-08-09 02:29Financial Data and Key Metrics Changes - The company reported second quarter revenue of $71.4 million, a significant increase from $15 million in the prior year quarter, primarily due to events that were staged this year but canceled last year due to COVID [36] - Adjusted EBITDA for the second quarter was $15.6 million, compared to negative $13.6 million in the prior year quarter, driven by a large number of events and recognition of insurance claim proceeds [36] - Free cash flow in the second quarter was $10.5 million, down from $23.8 million in the prior year quarter, with a notable spike in customer deposits in the previous year due to the reopening of events [37] Business Line Data and Key Metrics Changes - The company staged 29 events in the quarter, attracting 61,600 attendees and 3,600 exhibiting companies, indicating consistent growth in overall show participation [7] - Event revenues are returning to and at times exceeding pre-pandemic levels, with expectations that nearly a quarter of 2022 events will surpass pre-pandemic revenues [11] Market Data and Key Metrics Changes - The company continues to see strong demand for in-person events, with exhibitors eager to reserve and maintain the best spaces, leading to early rebooking [12] - The company is currently selling exhibit space for events as far out as the third quarter of 2023, indicating strong forward-looking demand [13] Company Strategy and Development Direction - The company is focusing on portfolio optimization, 365-day engagements, and customer centricity as part of its growth strategy [16] - New product launches are targeting high-growth industries, including mental health and decentralized finance, with specific events planned for 2023 [18][20] - The acquisition of Advertising Week and Bulletin is part of the strategy to enhance the brand portfolio and diversify revenue streams [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macro conditions such as lockdowns in China and supply chain issues, emphasizing the strong domestic focus of their events [13] - The company expects to achieve full-year 2022 revenues in excess of $300 million and adjusted EBITDA of over $50 million, excluding substantial insurance recoveries [46] Other Important Information - The company reached an agreement to settle litigation related to event cancellation insurance policies for $149.25 million, expected to be recorded as other income in Q3 2022 [5][34] - The company had a cash balance of $232 million as of June 30, with total liquidity of $342 million, which will increase to approximately $380 million upon receipt of the insurance settlement [39][40] Summary of Q&A Session - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [50]