Company Accelerates Portfolio Optimization
Initiatives - Discontinues Several Smaller, Unprofitable Events
Totaling $20 million of Run-Rate Revenue
Emerald Holding, Inc. (NYSE: EEX) (“Emerald” or the “Company”),
America’s largest producer of trade shows and their associated
conferences, content and commerce, today reported financial results
for the third quarter ended September 30, 2024.
Financial Highlights
- Revenues of $72.6 million for the third quarter 2024, an
increase of $0.1 million, or 0.1% over Q3 2023, primarily due to
revenues from acquisitions and scheduling differences, offset by
organic decline, sustained softness in the Content business, and
several small, discontinued events that were not contributing to
profitability.
- Organic Revenues, a non-GAAP measure, which takes into account
the impact of acquisitions, scheduling adjustments and discontinued
events, if any, of $58.7 million for the third quarter 2024, a
decrease of $3.3 million, or 5.3%, from $62.0 million for the third
quarter 2023 (Refer to Schedule 1 for a reconciliation to revenues,
the most directly comparable GAAP measure)
- Net loss of $11.1 million for the third quarter 2024, compared
to net income of $10.7 million for the third quarter 2023.
- Adjusted EBITDA, a non-GAAP measure, of $12.5 million for the
third quarter of 2024, compared to $10.8 million for the third
quarter 2023 (Refer to Schedule 3 for a reconciliation to net
(loss) income, the most directly comparable GAAP measure);
Increased Adjusted EBITDA excluding event cancellation insurance, a
non-GAAP measure, by 56.2% as compared to $8.0 million in the third
quarter of 2023 (Refer to Schedule 3 for a reconciliation to net
(loss) income, the most directly comparable GAAP measure)
- Ended the quarter with $188.9 million in cash and full
availability of its $110.0 million revolving credit facility.
Operational and Capital Structure Updates
- For the full year 2024, the Company is updating its FY 2024
guidance and now expects to generate at least $400 million of
Revenue and at least $100 million of Adjusted EBITDA.
- Accelerated portfolio optimization initiatives through the
discontinuation of 20 smaller, unprofitable events totaling $20
million of historical run-rate revenue
- The Company repurchased $3.6 million of its common stock in the
third quarter at an average price of $4.85 per share
- Emerald’s Board of Directors authorized an extension and
expansion of existing share repurchase program through December 31,
2025 for the repurchase of $25.0 million of Emerald’s common
stock
- On October 29, 2024, Emerald’s Board of Directors declared a
dividend for the quarter ending December 31, 2024 of $0.015 per
share
Hervé Sedky, Emerald’s President and Chief Executive Officer,
said, “We managed through several operational initiatives in our
Connections business this quarter, including accelerating our
portfolio optimization efforts. This, combined with sustained
softness in our Content business, impacted our performance and
resulted in our outlook for the year to be below prior
expectations. Despite these near-term effects, our overall
Connections pacing into H1 2025 is showing accelerated growth,
driving expectations for improved results in the new year.
We pruned twenty select, non-core events which, in aggregate,
were a drag on organic growth and weren’t contributing to
profitability. While this process is expected to enhance our
overall growth rate, margin and profitability in 2025, it will have
a negative impact on our 2024 performance. We are also working to
address softness in our Content business, which accounts for just
5% of revenue, where a challenging advertising environment in
several of our end markets continues to weigh on our performance.
We have a profitable portfolio of well-known and respected events
and are committed to building this portfolio through new event
launches as well as accretive acquisitions in the coming year.”
David Doft, Emerald’s Chief Financial Officer, added, “We feel
confident that the changes to the makeup of our portfolio and more
aggressive efforts in our Content business leave us well positioned
for strength in 2025 and beyond. Our forward visibility into trade
show booking, including into the first half of 2025, as well as the
critical place of trade shows in companies’ marketing budgets,
gives us confidence in our ability to deliver year-over-year growth
as we cycle past these near-term effects.”
Third Quarter 2024 Financial
Performance and Highlights
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
Change
% Change
2024
2023
Change
% Change
(unaudited, dollars in
millions, except percentages and per share data)
Revenues
$
72.6
$
72.5
$
0.1
0.1
%
$
292.0
$
281.3
$
10.7
3.8
%
Net (loss) income
$
(11.1
)
$
10.7
$
(21.8
)
NM
$
(2.9
)
$
9.7
$
(12.6
)
NM
Net cash provided by operating
activities
$
9.1
$
8.5
$
0.6
7.1
%
$
26.2
$
24.7
$
1.5
6.1
%
Diluted loss per share
$
(0.05
)
$
—
$
(0.05
)
NM
$
(0.11
)
$
(0.33
)
$
0.22
NM
Non-GAAP measures:
Adjusted EBITDA
$
12.5
$
10.8
$
1.7
15.7
%
$
68.6
$
61.9
$
6.7
10.8
%
Adjusted EBITDA excluding event
cancellation insurance proceeds
$
12.5
$
8.0
$
4.5
56.2
%
$
67.6
$
59.1
$
8.5
14.4
%
Free Cash Flow
$
6.7
$
5.5
$
1.2
21.8
%
$
18.6
$
15.3
$
3.3
21.6
%
Free cash flow excluding event
cancellation insurance proceeds, net
$
6.7
$
2.7
$
4.0
148.1
%
$
17.6
$
12.5
$
5.1
40.8
%
- Third quarter 2024 revenues were $72.6 million, an increase of
$0.1 million or 0.1% versus the third quarter 2023, driven
primarily by $4.2 million in revenue from acquisitions as well as
scheduling adjustments of $4.2 million, offset by prior year
discontinued event revenue of $5.0 million that was not
contributing to profitability and organic decline of $3.3
million.
- Third quarter 2024 Organic Revenues from the Connections
reportable segment were $48.5 million, a decrease of $3.0 million
or 5.8% versus the third quarter 2023.
- Third quarter 2024 Organic Revenues from the All Other category
were $10.2 million, a decrease of $0.3 million or 2.9% versus the
third quarter of 2023, due to a $0.8 million decrease in Content
revenues offset by a $0.5 million increase in Commerce
revenues.
- Third quarter 2024 net loss was $11.1 million, compared to net
income of $10.7 million for the third quarter 2023 principally as a
result of lower benefit from income taxes and recognition of
intangible asset impairment charges offset by lower stock-based
compensation expense, and other items primarily relating to
acquisition costs.
- Third quarter 2024 Adjusted EBITDA was $12.5 million, compared
to $10.8 million for the third quarter 2023. Adjusted EBITDA
excluding event cancellation insurance for the third quarter of
2023 was $8.0 million. The year-over-year increase was a result of
cost management and the discontinuation of several small, non-core
and unprofitable events.
For a discussion of the Company’s presentation of Organic
revenues and Adjusted EBITDA, which are non-GAAP measures, see
below under the heading “Non-GAAP Financial Information.” Refer to
Schedule 1 for a reconciliation of Organic revenues to revenues
(discussed in the first paragraph of this section), the most
directly comparable GAAP measure, and refer to Schedule 3 for a
reconciliation of Adjusted EBITDA to net income (discussed in the
second paragraph of this section), the most directly comparable
GAAP measure.
Cash Flow
- Third quarter 2024 net cash provided by operating activities
was $9.1 million, compared to $8.5 million in the third quarter
2023 primarily due to increased Adjusted EBITDA.
- Third quarter 2024 capital expenditures were $2.4 million,
compared to $3.0 million in the third quarter 2023.
- Third quarter 2024 Free Cash Flow excluding event cancellation
insurance proceeds, net, which the Company defines as net cash
provided by operating activities less capital expenditures, event
cancellation insurance proceeds and taxes paid on event
cancellation insurance proceeds, was $6.7 million, compared to $2.7
million in the third quarter 2023. The calculation of third quarter
2024 Free Cash Flow excluding event cancellation insurance
proceeds, net, includes non-recurring acquisition related
transaction costs of $1.0 million, acquisition integration and
restructuring-related transition costs of $1.4 million and $0.7
million in non-recurring legal, audit and consulting fees. The
calculation of third quarter 2023 Free Cash Flow excluding event
cancellation insurance proceeds, net, includes non-recurring
acquisition related transaction costs of $0.9 million, acquisition
integration, restructuring-related transition costs of $1.4
million, and non-recurring legal and consulting fees of $0.8
million. The total of these items is $3.1 million and $3.1 million
for the quarters ended September 30, 2024 and 2023,
respectively.
For a review of the Company’s presentation of Free Cash Flow,
which is a non-GAAP measure, see below under the heading “Non-GAAP
Financial Information.” Refer to Schedule 4 for a reconciliation of
Free Cash Flow to net cash provided by operating activities
(discussed in the first paragraph of this section), the most
directly comparable GAAP measure.
Dividend
On October 29, 2024, Emerald’s Board of Director’s declared a
dividend for the quarter ending December 31, 2024, of $0.015 per
share payable on November 21, 2024 to holders of Emerald’s common
stock as of November 11, 2024.
Emerald Extends and Expands Share Repurchase Program
Emerald’s Board of Directors approved an extension and expansion
of the Company’s share repurchase program that allows for the
repurchase of $25.0 million of its common stock through December
31, 2025. In the three months ended September 30, 2024, Emerald
bought back 742,939 shares for $3.6 million at an average price of
$4.85 per share.
Since the beginning of the share program in 2021, the Company
has bought back 11.7 million shares of common stock for $45.9
million through the program. Prior to the expansion, Emerald had
$19.6 million remaining available under its prior repurchase
authorization.
Conference Call Webcast Details
As previously announced, the Company’s leadership will hold a
conference call to discuss its third quarter 2024 results at 8:30
am EDT on Wednesday, October 30, 2024.
The conference call can be accessed by dialing 1-800-717-1738
(domestic) or 1-646-307-1865 (international). A telephonic replay
will be available approximately two hours after the call by dialing
1-844-512-2921, or for international callers, 1-412-317-6671. The
passcode for the replay is 1112376. The replay will be available
until 11:59 pm (Eastern Time) on November 6, 2024.
Interested investors and other parties can access the webcast of
the live conference call by visiting the Investors section of
Emerald’s website at http://investor.emeraldx.com. An online replay
will be available on the same website immediately following the
call.
About Emerald
Emerald’s talented and experienced team grows our customers’
businesses 365 days a year through connections, content, and
commerce. We expand connections that drive new business
opportunities, product discovery, and relationships with over 140
annual events, matchmaking, and lead-gen services. We create
content to ensure that our customers are on the cutting edge of
their industries and are continually developing their skills. And
we power commerce through efficient year-round buying and selling.
We do all this by seamlessly integrating in-person and digital
platforms and channels. Emerald is immersed in the industries we
serve and committed to supporting the communities in which we
operate. As true partners, we create experiences that inspire,
amaze, and deliver breakthrough results. For more:
http://www.emeraldx.com/.
Non-GAAP Financial
Information
This press release presents certain “non-GAAP” financial
measures. The components of these non-GAAP measures are computed by
using amounts that are determined in accordance with accounting
principles generally accepted in the United States of America
(“GAAP”). These non-GAAP financial measures are in addition to, and
not as a substitute for or superior to, measures of financial
performance prepared in accordance with GAAP. The Company believes
that these non-GAAP financial measures enhance the reader’s
understanding of our past financial performance and our prospects
for the future. The non-GAAP financial information is presented for
supplemental informational purposes only and should not be
considered a substitute for financial information presented in
accordance with GAAP and may be different from similarly titled
non-GAAP measures used by other companies. A reconciliation of
non-GAAP financial measures used in this press release to their
nearest comparable GAAP financial measures is included in the
schedules attached hereto.
Organic Revenue
We define “Organic revenue growth” and “Organic revenue decline”
as the growth or decline, respectively, in our revenue from one
period to the next, adjusted for the revenue impact of: (i)
acquisitions and dispositions, (ii) discontinued events and (iii)
material show scheduling adjustments. We disclose changes in
Organic revenue because we believe it assists investors and
analysts in comparing Emerald’s operating performance across
reporting periods on a consistent basis by excluding items that we
do not believe provide a fair comparison of the trends underlying
our existing event portfolio given changes in timing or strategy.
Management and Emerald’s board of directors evaluate changes in
Organic revenue to evaluate our historical and prospective
financial performance and understand underlying revenue trends of
our events.
Adjusted EBITDA
We use Adjusted EBITDA because we believe it assists investors
and analysts in comparing Emerald’s operating performance across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance.
Management and Emerald’s board of directors use Adjusted EBITDA to
assess our financial performance and believe it is helpful in
highlighting trends because it excludes the results of decisions
that are outside the control of management, while other measures
can differ significantly depending on long-term strategic decisions
regarding capital structure, the tax jurisdictions in which we
operate, and capital investments. Adjusted EBITDA should not be
considered as an alternative to net income as a measure of
financial performance or to cash flows from operations as a
liquidity measure.
We define Adjusted EBITDA as net income before (i) interest
expense, net, (ii) provision for income taxes, (iii) depreciation
and amortization, (iv) stock-based compensation, (v) goodwill and
other intangible asset impairment charges and (vi) other items that
management believes are not part of our core operations.
We have also presented Adjusted EBITDA excluding event
cancellation insurance proceeds in order to illustrate the amount
of Adjusted EBITDA from continuing operations.
Note: Schedule 3 provides reconciliations for 2024 and 2023
Adjusted EBITDA to net (loss) income, however, it is not possible,
without unreasonable efforts, to estimate the impacts of show
scheduling adjustments, acquisitions and certain other special
items that may occur in 2024 as these items are inherently
uncertain and difficult to predict. As a result, the Company is
unable to quantify certain amounts that would be included in a
reconciliation of 2024 projected Adjusted EBITDA to projected net
income without unreasonable efforts and has not provided
reconciliations for these forward-looking non-GAAP financial
measures.
Free Cash Flow
We present Free Cash Flow because we believe it is a useful
indicator of liquidity that provides information to management and
investors about the amount of cash generated from our core
operations that, after capital expenditures, can be used to
maintain and grow our business, for the repayment of indebtedness,
payment of dividends and to fund strategic opportunities. Free Cash
Flow is a supplemental non-GAAP measure of liquidity and is not
based on any standardized methodology prescribed by GAAP. Free Cash
Flow should not be considered in isolation or as an alternative to
cash flows from operating activities or other measures determined
in accordance with GAAP.
We have also presented Free Cash Flow excluding event
cancellation insurance proceeds, net in order to illustrate the
amount of Free Cash Flow from continuing operations.
Other companies may compute these measures differently. No
non-GAAP metric should be considered as an alternative to any other
measure derived in accordance with GAAP.
Cautionary Statement Concerning
Forward-Looking Statements
This press release contains and our earnings call will contain
certain forward-looking statements, including, but not limited to,
statements regarding our ability to return our business to
pre-COVID levels; general economic conditions, or more specifically
about the markets in which we operate, including growth of our
various markets, and our expectations, beliefs, plans, strategies,
objectives, prospects, assumptions or future events or performance;
the multiple avenues to return to organic growth; expectations
regarding interest rates and economic conditions, among others; our
guidance with respect to estimated revenues and Adjusted EBITDA;
our ability or inability to obtain insurance coverage relating to
event cancellations or interruptions; our intention to continue to
pay regular quarterly dividends; and our ability to successfully
identify and acquire acquisition targets; our expectations arising
from the ongoing impact of COVID-19 on our business; and how we
integrate and grow acquired businesses. In particular, the
declaration, timing and amount of any future dividends will be
subject to the discretion and approval of the Board and will depend
on a number of factors, including Company’s results of operations,
cash flows, financial position and capital requirements, any
applicable restrictions under the Company’s debt facilities, as
well as general business conditions, legal, tax and regulatory
restrictions and other factors the Board deems relevant at the time
it determines to declare such dividends. These statements are based
on management’s current expectations as well as estimates and
assumptions prepared by management as of the date hereof, and
although they are believed to be reasonable, they are inherently
uncertain and not guaranteed. These statements involve risks and
uncertainties, including, but not limited to, economic,
competitive, governmental and technological factors outside of the
Company’s control that may cause its business, industry, strategy,
financing activities or actual results to differ materially. See
“Risk Factors” and “Cautionary Note Regarding Forward-Looking
Statements” in the Company’s most recently filed periodic reports
on Form 10-K and Form 10-Q and subsequent filings. The Company
undertakes no obligation to update or revise any of the
forward-looking statements contained herein, whether as a result of
new information, future events or otherwise.
Emerald Holding, Inc.
Condensed Consolidated Statements of (Loss) Income and
Comprehensive (Loss) Income (unaudited, dollars in millions,
share data in thousands, except loss per share data)
Three Months Ended September
30, 2024
Three Months Ended September
30, 2023
Nine Months Ended September
30, 2024
Nine Months Ended September
30, 2023
Revenues
$
72.6
$
72.5
$
292.0
$
281.3
Other income, net
—
2.8
1.0
2.8
Cost of revenues
23.1
25.9
103.7
101.9
Selling, general and administrative
expense
40.8
41.6
135.8
132.2
Depreciation and amortization expense
7.1
8.8
21.2
35.2
Intangible asset impairment charges
6.3
—
6.3
—
Operating (loss) income
(4.7
)
(1.0
)
26.0
14.8
Interest expense
12.3
12.1
36.4
31.5
Interest income
2.2
1.6
6.6
5.0
Loss on extinguishment of debt
—
—
—
2.3
Other expense
—
0.1
—
0.3
Loss before income taxes
(14.8
)
(11.6
)
(3.8
)
(14.3
)
Benefit from income taxes
(3.7
)
(22.3
)
(0.9
)
(24.0
)
Net (loss) income and comprehensive (loss)
income attributable to Emerald Holding, Inc.
$
(11.1
)
$
10.7
$
(2.9
)
$
9.7
Accretion to redemption value of
redeemable convertible preferred stock
—
(10.7
)
(12.7
)
(31.2
)
Net loss and comprehensive loss
attributable to Emerald Holding, Inc. common stockholders
$
(11.1
)
$
—
$
(15.6
)
$
(21.5
)
Basic loss per share
(0.05
)
—
(0.11
)
(0.33
)
Diluted loss per share
(0.05
)
—
(0.11
)
(0.33
)
Basic weighted average common shares
outstanding
203,893
63,586
141,179
64,317
Diluted weighted average common shares
outstanding
203,893
63,586
141,179
64,317
Emerald Holding, Inc.
Condensed Consolidated Balance Sheets (dollars in
millions, share data in thousands, except par value)
September 30, 2024
December 31, 2023
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
188.9
$
204.2
Trade and other receivables, net of
allowances of $1.6 million and $1.4 million, as of September 30,
2024 and December 31, 2023, respectively
86.4
85.2
Prepaid expenses and other current
assets
37.0
21.5
Total current assets
312.3
310.9
Noncurrent assets
Property and equipment, net
1.7
1.5
Intangible assets, net
162.2
175.1
Goodwill, net
573.4
553.9
Right-of-use assets
6.9
8.8
Other noncurrent assets
3.3
3.7
Total assets
$
1,059.8
$
1,053.9
Liabilities, Redeemable Convertible
Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable and other current
liabilities
$
46.3
$
46.6
Income taxes payable
—
0.2
Cancelled event liabilities
1.7
0.6
Deferred revenues
190.2
174.3
Contingent consideration
0.2
0.2
Right-of-use liabilities, current
portion
3.9
4.0
Term loan, current portion
4.2
4.2
Total current liabilities
246.5
230.1
Noncurrent liabilities
Term loan, net of discount and deferred
financing fees
398.6
398.7
Deferred tax liabilities, net
5.7
3.1
Right-of-use liabilities, noncurrent
portion
6.4
8.9
Other noncurrent liabilities
11.5
8.5
Total liabilities
668.7
649.3
Commitments and contingencies
Redeemable convertible preferred stock
7% Series A Redeemable Convertible
Participating Preferred Stock, $0.01 par value; authorized shares
at September 30, 2024 and December 31, 2023: 80,000; zero and
71,403 shares issued and outstanding; aggregate liquidation
preference of zero and $492.6 million at September 30, 2024 and
December 31, 2023, respectively
—
497.1
Stockholders’ equity (deficit)
Common stock, $0.01 par value; authorized
shares at September 30, 2024 and December 31, 2023: 800,000;
203,220 and 62,915 shares issued and outstanding at September 30,
2024 and December 31, 2023, respectively
2.0
0.6
Additional paid-in capital
1,044.3
559.2
Accumulated deficit
(655.2
)
(652.3
)
Total stockholders’ equity (deficit)
391.1
(92.5
)
Total liabilities, redeemable convertible
preferred stock and stockholders’ equity (deficit)
$
1,059.8
$
1,053.9
Schedule
1 Emerald Holding, Inc. UNAUDITED RECONCILIATION OF REVENUES
TO ORGANIC REVENUES
Three Months Ended September
30,
Change
Nine Months Ended September
30,
Change
Consolidated
2024
2023
$
%
2024
2023
$
%
(dollars in millions)
(unaudited)
Revenues
$
72.6
$
72.5
$
0.1
0.1
%
$
292.0
$
281.3
$
10.7
3.8
%
Deduct:
Acquisition revenues
(4.2
)
—
(8.7
)
—
Discontinued events
—
(5.0
)
—
(16.2
)
Scheduling adjustments(1)
(9.7
)
(5.5
)
(8.5
)
(2.8
)
Organic revenues
$
58.7
$
62.0
$
(3.3
)
(5.3
%)
$
274.8
$
262.3
$
12.5
4.8
%
Three Months Ended September
30,
Change
Nine Months Ended September
30,
Change
Connections
2024
2023
$
%
2024
2023
$
%
(dollars in millions)
(unaudited)
Revenues
$
62.4
$
62.0
$
0.4
0.6
%
$
260.8
$
249.8
$
11.0
4.4
%
Deduct:
Acquisition revenues
(4.2
)
—
(8.7
)
—
Discontinued events
—
(5.0
)
—
(16.2
)
Scheduling adjustments(1)
(9.7
)
(5.5
)
(8.5
)
(2.8
)
Organic revenues
$
48.5
$
51.5
$
(3.0
)
(5.8
%)
$
243.6
$
230.8
$
12.8
5.5
%
Three Months Ended September
30,
Change
Nine Months Ended September
30,
Change
All Other
2024
2023
$
%
2024
2023
$
%
(dollars in millions)
(unaudited)
Revenues
$
10.2
$
10.5
$
(0.3
)
(2.9
%)
$
31.2
$
31.5
$
(0.3
)
(1.0
%)
Deduct:
Acquisition revenues
—
—
—
—
Discontinued events
—
—
—
—
Scheduling adjustments
—
—
—
—
Organic revenues
$
10.2
$
10.5
$
(0.3
)
-2.9
%
$
31.2
$
31.5
$
(0.3
)
(1.0
%)
Notes:
(1)
For the three months ended September 30,
2024, represents revenues from seven events that staged in the
third quarter of fiscal 2024, but staged in a different quarter in
fiscal 2023 and revenues from five events that staged in the third
quarter of fiscal 2023 but are scheduled to stage in a different
quarter in fiscal 2024. For the nine months ended September 30,
2024, represents revenues from six events that staged in the first
nine months of fiscal 2024, but staged later in fiscal 2023 and
revenues from three events that staged in the first nine months of
fiscal 2023 but are scheduled to stage in the fourth quarter of
fiscal 2024.
Schedule
2 Emerald Holding, Inc. UNAUDITED
RECONCILIATION OF REVENUES TO DISAGGREGATED REVENUES
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(dollars in millions)
(unaudited)
Connections
$
62.4
$
62.0
$
260.8
$
249.8
Content
4.9
5.7
15.5
17.3
Commerce
5.3
4.8
15.7
14.2
Total Revenues
$
72.6
$
72.5
$
292.0
$
281.3
Schedule
3 Emerald Holding, Inc. UNAUDITED
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(dollars in millions)
(unaudited)
Net (loss) income
$
(11.1
)
$
10.7
$
(2.9
)
$
9.7
Add (deduct):
Interest expense, net
10.1
10.5
29.8
26.5
Loss on extinguishment of debt
—
—
—
2.3
Benefit from income taxes
(3.7
)
(22.3
)
(0.9
)
(24.0
)
Intangible asset impairment charges(1)
6.3
—
6.3
—
Depreciation and amortization
7.1
8.8
21.2
35.2
Stock-based compensation
0.7
1.9
4.7
5.9
Other items(2)
3.1
1.2
10.4
6.3
Adjusted EBITDA
$
12.5
$
10.8
$
68.6
$
61.9
Deduct:
Event cancellation insurance proceeds
—
2.8
1.0
2.8
Adjusted EBITDA excluding event
cancellation insurance proceeds
$
12.5
$
8.0
$
67.6
$
59.1
Notes:
(1)
Intangible asset impairment charges for
the three and nine months ended September 30, 2024 represent
non-cash charges of $6.3 million for certain indefinite-lived
intangible assets in connection with the Company’s interim testing
of intangibles for impairment.
(2)
Other items for the three months ended
September 30, 2024 included: (i) $1.0 million in
acquisition-related transaction costs; (ii) $1.4 million in
acquisition integration and restructuring-related transition costs
and (iii) $0.7 million in non-recurring legal, audit and consulting
fees. Other items for the three months ended September 30, 2023
included: (i) $0.9 million in acquisition-related transaction
costs, (ii) $1.4 million in transition expenses, (iii) $0.8 million
in non-recurring legal, audit and consulting fees and (iv) $1.9
million in gains related to the remeasurement of contingent
consideration. Other items for the nine months ended September 30,
2024 included: (i) $2.2 million in acquisition-related transaction
costs; (ii) $7.2 million in acquisition integration and
restructuring-related transition costs, including one-time
severance expense of $3.6 million; (iii) $1.7 million in
non-recurring legal, audit and consulting fees and (iv) $0.7
million in gains related to the remeasurement of contingent
consideration. Other items for the nine months ended September 30,
2023 included (i) $1.8 million in acquisition-related transaction
costs, (ii) $4.0 million in transition expenses, (iii) $3.0 million
in non-recurring legal, audit and consulting fees and (iv) $2.5
million in gains related to the remeasurement of contingent
consideration.
Schedule
4 Emerald Holding, Inc. UNAUDITED
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE
CASH FLOW
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(dollars in millions)
(unaudited)
Net Cash Provided by Operating
Activities
$
9.1
$
8.5
$
26.2
$
24.7
Less:
Capital expenditures
2.4
3.0
7.6
9.4
Free Cash Flow
$
6.7
$
5.5
$
18.6
$
15.3
Event cancellation insurance proceeds
—
(2.8
)
(1.0
)
(2.8
)
Free cash flow excluding event
cancellation insurance proceeds, net
$
6.7
$
2.7
$
17.6
$
12.5
Schedule
5 Emerald Holding, Inc. UNAUDITED
RECONCILIATION OF REPORTABLE SEGMENTS RESULTS TO LOSS BEFORE
TAXES
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(dollars in millions)
(unaudited)
Revenues
Connections
$
62.4
$
62.0
$
260.8
$
249.8
All Other
10.2
10.5
31.2
31.5
Total revenues
$
72.6
$
72.5
$
292.0
$
281.3
Other income, net
Connections
$
—
$
2.8
$
1.0
$
2.8
All Other
—
—
—
—
Total other income, net
$
—
$
2.8
$
1.0
$
2.8
Adjusted EBITDA
Connections
$
23.6
$
22.5
$
106.2
$
97.0
All Other
1.6
1.3
3.7
2.0
Adjusted EBITDA (excluding General
corporate expenses)
$
25.2
$
23.8
$
109.9
$
99.0
General corporate expenses
(12.7
)
(13.0
)
(41.3
)
(37.1
)
Interest expense, net
(10.1
)
(10.5
)
(29.8
)
(26.5
)
Loss on extinguishment of debt
—
—
—
(2.3
)
Intangible asset impairment charges
(6.3
)
—
(6.3
)
—
Depreciation and amortization expense
(7.1
)
(8.8
)
(21.2
)
(35.2
)
Stock-based compensation expense
(0.7
)
(1.9
)
(4.7
)
(5.9
)
Other items
(3.1
)
(1.2
)
(10.4
)
(6.3
)
Loss before income taxes
$
(14.8
)
$
(11.6
)
$
(3.8
)
$
(14.3
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030559025/en/
Emerald Holding, Inc. Investor Relations
investor.relations@emeraldx.com 1-866-339-4688 (866EEXINVT)
Emerald (NYSE:EEX)
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