Emerald reports first quarter 2022 financial results
Emerald Holding, Inc. reported first-quarter financial results for the first quarter ended March 31, 2022. Emerald Holding organizes the Create NYC 2022 (formerly PhotoPlus) event.
Highlights
- In the first quarter of 2022, Emerald successfully traded 31 in-person trade shows, conferences, and other events, serving more than 141,000 attendees and 5,700 exhibiting companies
- Revenues of $98.5 million for the first quarter 2022 an increase of $85.6 million, or 663.6%, from $12.9 million in revenue for the first quarter of 2021
- Net income of $22.6 million for the first quarter 2022, compared to net loss of $15.3 million for the first quarter 2021
- First quarter net income included non-cash charges of $7.9 million and $0 for 2022 and 2021, respectively, related to impairment of goodwill and certain intangible assets
- Adjusted EBITDA, a non-GAAP measure, of $54.4 million for the first quarter 2022, compared to negative $2.5 million for the first quarter 2021 (Refer to Schedule 3 for a reconciliation to net income, the most directly comparable GAAP measure)
- Cash generation increased as bookings for returning events accelerate
- Cash provided by operations of $33.0 million for the first quarter 2022, compared to $1.6 million for the first quarter 2021
- Emerald generated free cash flow, a non-GAAP measure, of $29.8 million for the first quarter 2022 as compared to $0.6 million for the first quarter 2021 (Refer to Schedule 4 for a reconciliation to net cash provided by operations, the most directly comparable GAAP measure)
- Emerald bought back 0.3 million shares at an average price of $3.63 per share during the first quarter 2022
- Emerald continues to actively pursue the collection of the remaining unpaid amounts of filed insurance claims for its canceled and impacted 2020 and 2021 events
- To date, Emerald has submitted $347.5 million in claims, which represents the net amount of budgeted gross revenues less avoided costs for impacted or canceled events previously scheduled to take place in 2020 and 2021
- Insurance claim payments received to date total $213.1 million, of which $89.1 million was received in 2020, $95.3 million was received in 2021 and $28.8 million was received in the first quarter of 2022,
- Emerald ended the quarter with $254.4 million in cash and full availability of its $110 million revolving credit facility
First Quarter 2022 Financial Performance
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Three Months |
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2022 |
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2021 |
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Change |
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% Change |
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(unaudited, dollars in millions, except percentages and per share data) |
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Revenues |
$ |
98.5 |
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$ |
12.9 |
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$ |
85.6 |
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|
663.6 |
% |
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Net income (loss) |
$ |
22.6 |
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|
$ |
(15.3 |
) |
|
$ |
37.9 |
|
|
NM |
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|
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Net cash provided by operating activities |
$ |
33.0 |
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|
$ |
1.6 |
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|
$ |
31.4 |
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|
|
1,962.5 |
% |
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Diluted income (loss) per share |
$ |
0.07 |
|
|
$ |
(0.33 |
) |
|
$ |
0.40 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Non-GAAP measures: |
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Adjusted EBITDA |
$ |
54.4 |
|
|
$ |
(2.5 |
) |
|
$ |
56.9 |
|
|
NM |
|
|
|
Adjusted EBITDA excluding event cancellation insurance proceeds |
$ |
25.6 |
|
|
$ |
(16.6 |
) |
|
$ |
42.2 |
|
|
NM |
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|
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Free Cash Flow |
$ |
29.8 |
|
|
$ |
0.6 |
|
|
$ |
29.2 |
|
|
|
4,866.7 |
% |
“We are pleased with our first-quarter results which clearly demonstrate that we are in the midst of a robust recovery, highlighted by several of our events that have delivered or are tracking ahead of their pre-pandemic levels,” said Hervé Sedky, Emerald’s President and Chief Executive Officer. “Continued strong attendee turnout is also driving improved NPS scores for our exhibitors and providing a catalyst for rebooking of future events which we believe strengthens our ability to achieve our full-year 2022 financial guidance. While our business and industry are recovering, we remain focused on transforming Emerald and accelerating organic growth through new show launches and accretive M&A. Along those lines, I am very pleased with our launch of SIAL America in March, which is our entry into the high growth food and beverage category. The show met all of our internal metrics for exhibitors, attendees, and 1-on-1 meetings, and positions the show for a successful second edition next March. Our plan is to launch three more new events in 2022 as we believe new show launches can add two to three points to organic growth, annually, over the next few years. We will also continue to evaluate acquisition candidates in high-growth industries which will further Emerald’s objectives to continue diversifying across end markets, similar to our recent acquisition of MJBiz which provides entry into serving the high-growth Cannabis industry. Looking forward, we have a robust M&A pipeline and expect to be active over the balance of the year as we strive to accelerate growth and profitability.”