Emerald Holding, Inc., owner and manager of the Outdoor Retailer and Surf Expo B2B trade shows in the active lifestyle market, and other large shows and conferences, posted revenues of $133.4 million in Q1 2024, an increase of 9.1 percent year-over-year, driven primarily by organic growth of $13.5 million and $2.8 million in revenue from acquisitions.

Scheduling adjustments of $4.1 million in the first quarter of 2023, compared to $2.0 million in the first quarter of 2024, also contributed to higher revenue in the first quarter 2024, offset by prior-year discontinued event revenues of $3.1 million.

Organic Revenues, a non-GAAP measure, takes into account the impact of acquisitions, scheduling adjustments and discontinued events, if any, of $128.6 million for the first quarter, an increase of 11.7 percent from $115.1 million for the first quarter 2023.

  • Organic Revenues from the Connections reportable segment were $118.6 million, an increase of 13.0 percent versus the first quarter 2023, due primarily to a higher volume of exhibitors and improved pricing.
  • Organic Revenues from the All Other category were $10.0 million, a decrease of $0.1 million or 1.0 percent versus the first quarter 2023, due primarily to a $0.8 million decrease in Content revenues offset by a $0.7 million increase in Commerce revenues.

Net income came in at $11.0 million for the first quarter, compared to net income of $7.1 million for the first quarter 2023.

Adjusted EBITDA, a non-GAAP measure, of $40.8 million for the first quarter of 2024, compared to $36.5 million for the first quarter 2023. Adjusted EBITDA, excluding insurance proceeds, a non-GAAP measure, of $39.8 million for the first quarter 2024, compared to $36.5 million for the first quarter 2023.

Ended the quarter with $186.8 million in cash and full availability of its $110.0 million revolving credit facility.

For the full year 2024, Emerald expects to generate between $415 million and $425 million of revenue and between $110 million and $115 million of Adjusted EBITDA.

Operational Highlights

  • Emerald’s core trade show business is reportedly strong with year-over-year growth in revenue driven by increases in exhibitors, attendees and pricing.
  • In January 2024, Emerald acquired Hotel Interactive, a producer of hosted buyer events serving the hospitality, senior living and casino industries via the BITAC series of events.
  • Subsequent to quarter end, Emerald completed the mandatory conversion of its Series A Convertible Participating Preferred Stock into shares of common stock.

Hervé Sedky, Emerald’s president and CEO, said, “2024 is off to a strong start, driven by our unwavering commitment to customer centricity and year-round engagement. This focus has not only fueled early re-bookings into 2025 but has also provided us with excellent forward visibility into our revenue trajectory. In the seasonally significant first quarter alone, we hosted successful shows with record attendance in some of our strongest categories, including KBIS, Prosper, and the International Pizza Expo.

“After completion of the first quarter, and with the visibility we have into the remainder of the year, we believe the company is on track to deliver on our growth and profitability targets for the year of between $415 million and $425 million of revenue and between $110 million and $115 million of Adjusted EBITDA. 

“As we move forward, our steadfast focus remains on delivering consistent growth and building on the value of our irreplaceable portfolio of in-person B2B events, as well as our content and commerce business. Together, we plan to continue to maximize value for our customers and shareholders, driving towards a future where our events are not just moments in time but transformative experiences that leave a lasting impact.”

David Doft, Emerald’s CFO, added, “We delivered another quarter of solid organic revenue growth, supported by strong trends in exhibitor counts and pricing. Our customers rely on Emerald’s events to generate new leads and transact in high volumes, leading them to view our shows as an investment rather than an expense. 

“As we grow our revenues, we expect to better leverage our operating cost base to drive even greater profitability and free cash flow generation. Additionally, last week marked a significant milestone for us as we completed the conversion of our outstanding convertible preferred stock into common stock. This milestone not only simplifies our capital structure but also positions Emerald as an even more attractive investment opportunity as all shareholders can now share equally in the free cash generation of the business.”

Cash Flow

  • First quarter 2024 net cash provided by operating activities was $7.3 million, compared to $8.9 million in the first quarter 2023 due to increased non-recurring costs during the current year, mainly from acquisition integration and restructuring costs.
  • First quarter 2024 capital expenditures were $2.5 million, compared to $3.7 million in the first quarter 2023.
  • First 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 $3.8 million, compared to $5.2 million in the first quarter 2023. The calculation of first quarter 2024 Free Cash Flow, excluding event cancellation insurance proceeds, net, includes non-recurring acquisition-related transaction costs of $0.3 million, acquisition integration, restructuring-related transition costs of $4.8 million, and non-recurring legal, audit and consulting fees of $0.3 million. The calculation of first quarter 2023 Free Cash Flow, excluding event cancellation insurance proceeds, net, includes acquisition-related transaction costs of $0.7 million, integration-related transition costs of $1.7 million, and non-recurring legal and consulting fees of $1.8 million. The total of these items is $5.4 million and $4.2 million for the quarters ended March 31, 2024 and 2023, respectively.

Image courtesy Emerald Expositions/Surf Expo