Emerald Holding Q1 Results Reveal 'Robust Recovery', Plans More Acquisitions Similar To MJBiz

New York-headquartered B2B event and media company Emerald Holding, Inc. EEX reported Monday financial results for the first quarter ended March 31, 2022.

Q1 Financial & Operational Highlights

• 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.
• 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.
• Cash provided by operations of $33.0 million for the first quarter 2022, compared to $1.6 million for the first quarter 2021.
• Emerald bought back 300,000 shares at an average price of $3.63 per share during the first quarter 2022.
• 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.
• 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 2022

 “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,” Hervé Sedky, Emerald’s president and chief executive officer stated. “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. “

Sedky added that the company is planning to launch three new events this year, and to look for more acquisition candidates, similar to its recent acquisition of MJBiz that enabled it to enter the booming cannabis industry.

Price Action

Emerald shares closed Friday market session 1.60% higher at $2.54 per share.

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