Emerald Holding Inc, an operator of B2B trade shows in the United States, reported its second-quarter 2024 financial results, showing a mixed performance. The company, which operates through three complementary business lines—Connections, Content, and Commerce—saw a slight decline in revenue but a significant reduction in net loss.
Financial Performance and Challenges
For the second quarter of 2024, Emerald Holding Inc reported revenues of $86.0 million, a slight decrease of 0.6% compared to $86.5 million in Q2 2023. This decline was primarily due to the discontinuation of several small events and scheduling differences. Despite this, the company achieved organic revenue growth of 3.3%, reaching $82.1 million, up from $79.5 million in the same period last year.
Net loss for the quarter narrowed significantly to $2.8 million, compared to a net loss of $8.1 million in Q2 2023. Adjusted EBITDA also improved, reaching $15.3 million, up from $14.6 million in the previous year.
Key Financial Metrics
Emerald Holding Inc ended the quarter with $193.2 million in cash and full availability of its $110.0 million revolving credit facility. The company also announced the reintroduction of a regular quarterly dividend, declaring a dividend of $0.015 per share for the quarter ending September 30, 2024.
Here are some key financial metrics from the earnings report:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenues | $86.0 million | $86.5 million | -0.6% |
| Net Loss | $(2.8) million | $(8.1) million | N/A |
| Adjusted EBITDA | $15.3 million | $14.6 million | 4.8% |
| Free Cash Flow | $7.1 million | $4.6 million | 54.3% |
Operational Highlights
Emerald Holding Inc's Connections segment, which generates the majority of the company's revenue, reported organic revenues of $71.1 million, a 3.6% increase from Q2 2023. The All Other category, which includes the Content and Commerce divisions, saw a slight increase in organic revenues to $11.0 million, up 0.9% from the previous year.
Commenting on the results, Hervé Sedky, Emerald’s President and CEO, stated,
We are pleased to report another quarter of solid growth in organic revenue and Adjusted EBITDA, despite it being our seasonally smaller second quarter. The continued positive trends indicate that our customers continue to value the high return on investment of live events."
Income Statement and Balance Sheet Highlights
Emerald Holding Inc's income statement showed a reduction in selling, general, and administrative expenses to $39.5 million, down from $41.8 million in Q2 2023. Depreciation and amortization expenses also decreased significantly to $7.0 million from $12.9 million in the previous year.
On the balance sheet, the company reported total assets of $1,062.6 million, slightly up from $1,053.9 million at the end of 2023. Current liabilities stood at $233.1 million, with total liabilities amounting to $655.0 million.
Cash Flow and Dividend
Net cash provided by operating activities for Q2 2024 was $9.8 million, compared to $7.3 million in the same period last year. Free Cash Flow, excluding event cancellation insurance proceeds, was $7.1 million, up from $4.6 million in Q2 2023.
Emerald Holding Inc's board of directors approved the reintroduction of a regular quarterly dividend, declaring a dividend of $0.015 per share, payable on August 29, 2024, to shareholders of record as of August 19, 2024.
Analysis
Emerald Holding Inc's Q2 2024 results show a company that is navigating its challenges effectively, with a focus on organic growth and cost management. The reintroduction of the quarterly dividend is a positive signal to investors, reflecting confidence in the company's cash flow and future earnings potential. However, the slight decline in revenue and ongoing net losses indicate that there are still hurdles to overcome.
Overall, Emerald Holding Inc's performance in Q2 2024 demonstrates resilience and a strategic focus on long-term growth, making it a company to watch for value investors.
Explore the complete 8-K earnings release (here) from Emerald Holding Inc for further details.
