Emerald Holding, Inc. (EEX) Bundle
A Brief History of Emerald Holding, Inc.
Emerald Holding, Inc. (EEX), a leading operator of business-to-business trade shows and events, has had a significant evolution in its financial and operational landscape leading up to 2024.
Financial Performance Overview
As of September 30, 2024, Emerald reported total revenues of $292.0 million, a 3.8% increase from $281.3 million in the same period of 2023. The company's net loss for the first nine months of 2024 was $2.9 million, contrasting with a net income of $9.7 million in the comparable period of 2023. This represented a decline of $12.6 million year-over-year.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Revenues | $292.0 million | $281.3 million | $10.7 million | 3.8% |
| Net (Loss) Income | $(2.9) million | $9.7 million | $(12.6) million | (129.9%) |
| Adjusted EBITDA | $68.6 million | $61.9 million | $6.7 million | 10.8% |
Operational Highlights
Emerald's adjusted EBITDA for the nine months ended September 30, 2024, reached $68.6 million, reflecting a growth of 10.8% from $61.9 million in the previous year. This growth was attributed to improved operational efficiencies despite the overall net loss.
Debt and Liquidity Position
As of September 30, 2024, Emerald had $410.2 million in borrowings outstanding under the Extended Term Loan Facility, with no borrowings on the Amended and Restated Revolving Credit Facility. The company reported cash and cash equivalents of $188.9 million, indicating a solid liquidity position to support ongoing operations and capital expenditures.
| Debt Metrics | Amount |
|---|---|
| Total Borrowings | $410.2 million |
| Cash and Cash Equivalents | $188.9 million |
Market Trends and Challenges
Emerald's performance in 2024 has been impacted by various market challenges, including the lingering effects of the COVID-19 pandemic on live events. The company has adjusted its operational strategies to focus on enhancing profitability and managing costs effectively.
Stock Performance
The stock performance of Emerald Holding, Inc. has reflected the company's financial results. The market has shown fluctuations in response to earnings announcements and changes in operational outlook.
For the three months ended September 30, 2024, the net loss was $11.1 million, compared to a net income of $10.7 million during the same period in 2023. This represents a significant decline of $21.8 million.
| Quarterly Performance | 2024 (Q3) | 2023 (Q3) | Variance ($) |
|---|---|---|---|
| Net (Loss) Income | $(11.1) million | $10.7 million | $(21.8) million |
| Revenues | $72.6 million | $72.5 million | $0.1 million |
The company recorded an increase in interest expense, totaling $36.4 million for the nine months ended September 30, 2024, compared to $31.5 million in 2023, reflecting a higher effective interest rate environment.
Conclusion
Emerald Holding, Inc. continues to navigate a complex landscape, focusing on improving its financial health and operational efficiencies as it moves through 2024.
A Who Owns Emerald Holding, Inc. (EEX)
Ownership Structure
As of September 30, 2024, approximately 90.8% of the common stock of Emerald Holding, Inc. is owned by investment funds affiliated with Onex Corporation.
Common Stock Details
At the end of Q3 2024, the total number of shares issued and outstanding was 203,220,000.
Preferred Stock Information
Emerald Holding had previously issued 71,403,000 shares of redeemable convertible preferred stock, which were converted into common stock on May 2, 2024. As of September 30, 2024, there were no shares of redeemable convertible preferred stock outstanding.
Investment Funds and Their Influence
Investment funds affiliated with Onex Corporation not only control the majority of common stock but also held a significant ownership position in Convex Group Ltd., an insurance provider for the company. The influence of Onex extends to the board of directors, where they have the right to appoint members due to their ownership stake.
Financial Overview
The financial condition of Emerald Holding, Inc. as of September 30, 2024, reflects a total stockholders’ equity (deficit) of $391.1 million, with an accumulated deficit of $(655.2 million). The total liabilities, redeemable convertible preferred stock, and stockholders’ equity amounted to $1,059.8 million.
| Category | Amount (in millions) |
|---|---|
| Total Common Stock Outstanding | 203.2 |
| Ownership by Onex Corporation | 90.8% |
| Total Stockholders’ Equity (Deficit) | 391.1 |
| Accumulated Deficit | (655.2) |
| Total Liabilities | 668.7 |
| Total Assets | 1,059.8 |
Market Performance
Emerald Holding's stock has been subject to fluctuations, reflecting the overall market dynamics. The basic loss per share for the three months ended September 30, 2024, was $(0.05), which is a decline compared to the previous year. The diluted loss per share also stood at $(0.05).
Dividend Policy
On October 29, 2024, the board of directors declared a dividend of $0.015 per share payable on November 21, 2024. This marks a step towards returning value to shareholders following the conversion of preferred stock to common stock earlier in the year.
Emerald Holding, Inc. (EEX) Mission Statement
Emerald Holding, Inc. operates with a mission to deliver innovative solutions that enable connections between buyers and sellers, providing an unparalleled experience across its diverse portfolio of trade shows and events.
Financial Overview
As of September 30, 2024, Emerald Holding reported:
| Financial Metrics | Q3 2024 | Q3 2023 | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Revenues | $72.6 million | $72.5 million | $0.1 million | 0.1% |
| Net (Loss) Income | $(11.1) million | $10.7 million | $(21.8) million | (203.7%) |
| Adjusted EBITDA | $12.5 million | $10.8 million | $1.7 million | 15.7% |
| Organic Revenue | $58.7 million | $62.0 million | $(3.3) million | (5.3%) |
| Cost of Revenues | $23.1 million | $25.9 million | $(2.8) million | (10.8%) |
| SG&A Expenses | $40.8 million | $41.6 million | $(0.8) million | (1.9%) |
Operational Insights
For the nine months ended September 30, 2024, the key operational metrics included:
| Operational Metrics | 2024 | 2023 | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Revenues | $292.0 million | $281.3 million | $10.7 million | 3.8% |
| Cost of Revenues | $103.7 million | $101.9 million | $1.8 million | 1.8% |
| SG&A Expenses | $135.8 million | $132.2 million | $3.6 million | 2.7% |
| Net (Loss) Income | $(2.9) million | $9.7 million | $(12.6) million | (129.9%) |
| Adjusted EBITDA | $68.6 million | $61.9 million | $6.7 million | 10.8% |
Debt and Liquidity
As of September 30, 2024, Emerald Holding's debt profile included:
| Debt Metrics | Amount |
|---|---|
| Borrowings under Extended Term Loan Facility | $410.2 million |
| Cash and Cash Equivalents | $188.9 million |
| Effective Interest Rate | 11.64% |
The company has maintained compliance with its covenants under the Amended and Restated Senior Secured Credit Facilities as of this date.
Market Position and Strategy
Emerald Holding continues to focus on enhancing its market position through strategic acquisitions and expanding its portfolio of live events. The company’s mission is supported by its commitment to delivering high-quality experiences for exhibitors and attendees alike.
In response to the evolving market dynamics, Emerald aims to leverage technology to improve engagement and streamline operations across its event offerings.
How Emerald Holding, Inc. (EEX) Works
Overview of Operations
Emerald Holding, Inc. operates primarily in the events and trade show industry, focusing on creating and managing events that connect buyers and sellers across various sectors. The company generates revenue through event registration fees, exhibitor fees, sponsorships, and ancillary services.
Financial Performance
For the nine months ended September 30, 2024, Emerald reported revenues of $292.0 million, an increase of 3.8% compared to $281.3 million for the same period in 2023 . The company’s net loss for the nine months was $2.9 million, a decline from net income of $9.7 million in the previous year .
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Revenues | $292.0 million | $281.3 million | $10.7 million | 3.8% |
| Net Income | ($2.9 million) | $9.7 million | ($12.6 million) | (129.9%) |
| Adjusted EBITDA | $68.6 million | $61.9 million | $6.7 million | 10.8% |
Revenue Streams
Emerald’s revenue sources include:
- Event Registration Fees
- Exhibitor Fees
- Sponsorships
- Commerce Revenues
For the three months ended September 30, 2024, the company reported revenues of $72.6 million, a slight increase from $72.5 million in the prior year .
Cost Structure
Emerald's costs include:
- Cost of Revenues: $103.7 million for the nine months ended September 30, 2024, compared to $101.9 million in 2023 .
- Selling, General and Administrative Expenses: $135.8 million for 2024, up from $132.2 million in 2023 .
- Depreciation and Amortization: $21.2 million for 2024 versus $35.2 million in 2023 .
| Cost Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Cost of Revenues | $103.7 million | $101.9 million |
| Selling, General and Administrative Expenses | $135.8 million | $132.2 million |
| Depreciation and Amortization | $21.2 million | $35.2 million |
Cash Flow and Liquidity
Emerald Holding reported net cash provided by operating activities of $26.2 million for the nine months ended September 30, 2024, compared to $24.7 million in 2023 . As of September 30, 2024, the company had cash and cash equivalents of $188.9 million .
Debt Obligations
The company had borrowings of $410.2 million under its Extended Term Loan Facility as of September 30, 2024 . The effective interest rate on debt was reported at 10.42% .
Stock Performance
Emerald’s stock has experienced fluctuations, reflecting its operational challenges and market conditions. As of the latest data, the basic loss per share was ($0.05) for the three months ended September 30, 2024, compared to no loss for the same period in 2023 .
Market Position
Emerald Holding continues to adapt its strategy to enhance its market position, focusing on expanding its portfolio of events and improving operational efficiencies. This includes leveraging its Elastic software platform to drive growth in its e-commerce activities .
How Emerald Holding, Inc. (EEX) Makes Money
Revenue Streams
Emerald Holding, Inc. generates revenue primarily through its events and exhibitions. For the nine months ended September 30, 2024, the company reported total revenues of $292.0 million, a 3.8% increase from $281.3 million in the same period of 2023. Organic revenue, which excludes acquisition revenues and scheduling adjustments, was $274.8 million, up 4.8% from $262.3 million the previous year.
Event Revenue
Emerald's revenue is significantly driven by trade shows and events. In Q3 2024, the company reported event revenues of $72.6 million, marginally up from $72.5 million in Q3 2023. The company organizes various industry-specific events, which are crucial for its revenue generation.
Cost Structure
The cost of revenues for the nine months ended September 30, 2024, was $103.7 million, reflecting a 1.8% increase from $101.9 million in the same period of 2023. This cost includes expenses directly associated with event production, such as venue rental, equipment, and labor costs.
Operating Expenses
Selling, general and administrative (SG&A) expenses totaled $135.8 million for the nine months ended September 30, 2024, which is a 2.7% increase from $132.2 million in the prior year. Notably, the SG&A expenses included $4.7 million in stock-based compensation.
Adjusted EBITDA
Emerald reported an Adjusted EBITDA of $68.6 million for the nine months ended September 30, 2024, an increase of 10.8% from $61.9 million in the same period of 2023. This metric is critical as it reflects the company's operational profitability before interest, taxes, depreciation, and amortization.
Net Income and Loss
For the nine months ended September 30, 2024, Emerald posted a net loss of $2.9 million, a decline from a net income of $9.7 million in the same period in 2023. The loss was attributed to higher intangible asset impairment charges and increased interest expenses.
Financial Overview Table
| Financial Metric | Q3 2024 | Q3 2023 | Variance % |
|---|---|---|---|
| Revenues | $72.6 million | $72.5 million | 0.1% |
| Organic Revenue | $58.7 million | $62.0 million | (5.3%) |
| Cost of Revenues | $23.1 million | $25.9 million | (10.8%) |
| SG&A Expenses | $40.8 million | $41.6 million | (1.9%) |
| Net (Loss) Income | $(11.1) million | $10.7 million | (203.7%) |
| Adjusted EBITDA | $12.5 million | $10.8 million | 15.7% |
Cash Flow and Liquidity
As of September 30, 2024, Emerald reported cash and cash equivalents of $188.9 million. The company had $410.2 million of borrowings outstanding and was in compliance with its debt covenants. Net cash provided by operating activities was $26.2 million for the nine months ended September 30, 2024.
Acquisitions and Growth Strategy
Emerald actively pursues acquisitions to enhance its portfolio. For example, during the nine months ended September 30, 2024, cash used for business acquisitions amounted to $22.8 million. This strategy aims to expand its reach and diversify revenue streams through new event offerings and enhanced capabilities.
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Article updated on 8 Nov 2024
Resources:
- Emerald Holding, Inc. (EEX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Emerald Holding, Inc. (EEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Emerald Holding, Inc. (EEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.