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Emerald Expositions Events Inc (EEX)
NYSE:EEX
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Emerald Expositions Events
(NYSE:EEX)
49Neutral
Positive Factors
Growth initiatives
Growth drivers include continued recovery of trade shows, high visibility on revenues, new organic events, M&A, and AI initiatives.
Negative Factors
Financial performance
Results missed estimates and consensus due to event cancellations and softness in the Content business.
Guidance and outlook
Management lowered 2024 guidance for revenue and adjusted EBITDA, indicating a less optimistic outlook.
Emerald Expositions Events (EEX) vs. S&P 500 (SPY)
Market Cap
$755.10M
Dividend Yield0.78%
Average Volume (3M)154.21K
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth4.96%
EPS Growth-94.10%
CountryUS
Employees673
SectorCommunication Services
Sector Strength82
IndustryTraditional Media
Share Statistics
EPS (TTM)-0.54
Shares Outstanding202,984,480
10 Day Avg. Volume132,139
30 Day Avg. Volume154,214
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.98
Price to Cash Flow (P/CF)21.40
P/FCF Ratio10.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside116.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Emerald Expositions Events Business Overview & Revenue Model
Company DescriptionEmerald Expositions Events (EEX) is a leading operator of business-to-business trade shows, conferences, and related events in the United States. The company operates in various sectors, including gift, home, general merchandise, sports, and lifestyle, among others. Emerald Expositions provides a platform for businesses to exhibit their products and services, facilitating networking and business opportunities across various industries.
How the Company Makes MoneyEmerald Expositions Events generates revenue primarily through the organization and management of trade shows and events. Key revenue streams include exhibitor fees, which are charged to businesses for space and participation at events, and attendee fees, which include registration and entrance fees from visitors. Additionally, the company earns revenue from sponsorships and advertising by offering promotional opportunities to exhibitors and other businesses looking to enhance their visibility at events. Partnerships with industry associations and media organizations also contribute to its earnings by broadening the reach and appeal of its events.
Emerald Expositions Events Financial Statement Overview
Summary
Emerald Expositions Events shows mixed results. Strengths in gross profit margin (58.51%) and cash flow growth (19.44%) are present, but negative net profitability (-5.29%) and fluctuating equity highlight challenges in achieving financial stability.Income Statement
Emerald Expositions Events shows mixed performance in the income statement. The TTM (Trailing-Twelve-Months) gross profit margin is 58.51%, indicating a strong ability to convert revenue into gross profit. However, the net profit margin is negative at -5.29%, highlighting ongoing challenges in achieving profitability. The revenue growth rate from the previous year is modest at 2.80%, reflecting limited growth. The EBIT margin is 9.59%, and the EBITDA margin is 23.44%, showing decent operational efficiency despite the negative net income.55
Neutral
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 1.06, indicating a slightly leveraged position. The return on equity (ROE) is negative due to negative net income, emphasizing profitability challenges. The equity ratio stands at 36.90%, suggesting a moderate level of financial stability, but the company's equity position has fluctuated significantly over recent years, posing potential risk.48
Neutral
Cash Flow
Cash flow analysis shows positive results with a free cash flow growth rate of 19.44%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is -2.01, reflecting the company's ability to generate cash flow despite net losses. The free cash flow to net income ratio is -1.65, further emphasizing strong cash flow relative to net income.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 393.50M | 382.80M | 325.90M | 145.50M | 127.40M | 360.90M | Gross Profit |
| 230.20M | 245.20M | 209.40M | 90.00M | 69.80M | 240.70M | EBIT |
| 37.70M | 34.70M | 179.80M | -23.20M | -97.40M | 61.40M | EBITDA |
| 92.20M | 85.40M | 242.00M | -14.20M | -622.00M | 27.30M | Net Income Common Stockholders |
| -20.80M | -8.20M | 130.80M | -78.10M | -633.60M | -50.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 20.50M | 204.20M | 239.10M | 231.20M | 295.30M | 9.60M | Total Assets |
| 1.58B | 1.05B | 1.10B | 1.06B | 1.05B | 1.47B | Total Debt |
| 569.90M | 415.80M | 429.20M | 534.60M | 538.70M | 555.20M | Net Debt |
| 549.40M | 211.60M | 190.10M | 303.40M | 243.40M | 545.60M | Total Liabilities |
| 871.70M | 649.30M | 1.13B | 1.18B | 660.00M | 831.50M | Stockholders Equity |
| 708.30M | 404.60M | -33.10M | -119.40M | 394.40M | 640.20M |
| Cash Flow | Free Cash Flow | ||||
| 34.40M | 28.80M | 164.80M | 83.40M | -41.10M | 63.90M | Operating Cash Flow |
| 41.80M | 40.30M | 175.10M | 90.00M | -37.10M | 67.80M | Investing Cash Flow |
| -24.90M | -21.00M | -47.90M | -131.90M | -37.30M | -16.70M | Financing Cash Flow |
| -28.30M | -54.20M | -119.30M | -22.20M | 360.10M | -62.00M |
Emerald Expositions Events Technical Analysis
Negative
3.69
Price Trends
4.40
Negative
4.51
Negative
4.93
Negative
Market Momentum
-0.19
Positive
15.65
Positive
5.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EEX, the sentiment is Negative. The current price of 3.69 is below the 20-day moving average (MA) of 4.10, below the 50-day MA of 4.40, and below the 200-day MA of 4.93, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 15.65 is Positive, neither overbought nor oversold. The STOCH value of 5.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EEX.
Emerald Expositions Events Risk Analysis
Emerald Expositions Events disclosed 38 risk factors in its most recent earnings report. Emerald Expositions Events reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Emerald Expositions Events Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $6.19B | 22.52 | 38.12% | 5.78% | 3.57% | 13.75% | |
69 Neutral | $1.04B | 73.35 | 25.49% | ― | 17.10% | 83.72% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
50 Neutral | $1.28B | ― | 20.03% | ― | -3.64% | 48.94% | |
49 Neutral | $755.10M | ― | -5.12% | 0.78% | 4.96% | -94.10% | |
48 Neutral | $168.31M | ― | -60.60% | 11.11% | -49.03% | -559.75% | |
48 Neutral | $509.37M | ― | -5.27% | ― | 45.67% | -100.72% |
* Communication Services Sector Average
Performance Comparison
EEX
Emerald Expositions Events
3.69
-2.10
-36.27%
EVC
Entravision
1.88
0.48
34.29%
NCMI
National Cinemedia
5.53
1.45
35.54%
MTN
Vail Resorts
161.74
-49.57
-23.46%
PRSU
Pursuit Attractions and Hospitality
39.03
3.10
8.63%
AMC
AMC Entertainment
2.94
-1.42
-32.57%
Emerald Expositions Events Earnings Call Summary
Earnings Call Date: Oct 30, 2024 | % Change Since: -20.30% | Next Earnings Date: Mar 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflects ongoing challenges, including reduced full-year guidance and content business underperformance. However, there are positive trends such as strong adjusted EBITDA growth, improved credit ratings, and robust pacing into 2025. The sentiment is mixed, with balanced highlights and lowlights.Highlights
Positive Adjusted EBITDA Growth
Third quarter adjusted EBITDA, excluding insurance proceeds, grew 56.3% or $4.5 million to $12.5 million versus the prior quarter, equating to an adjusted EBITDA margin of approximately 17.2%.
Strong First Half 2025 Pacing
The pacing into the first half of 2025 is stronger and more broad-based than at the same point last year, suggesting solid revenue growth and margin expansion due to portfolio optimization efforts.
Improved Credit Rating
S&P upgraded Emerald's debt from a B rating to B+, reinforcing the strength of the company's model and liquidity position.
Share Buyback and Dividend Declaration
During the third quarter, 743,000 shares were repurchased for $3.6 million, with an extension for up to $25 million through 2025. A regular quarterly dividend of $0.015 per share was declared.
Lowlights
Reduction in Full Year Guidance
2024 revenue and adjusted EBITDA guidance reduced to at least $400 million and $100 million respectively, due to portfolio optimization and content business softness.
Discontinued Events Impact
20 unprofitable events discontinued, resulting in a $5 million decrease in revenue this quarter as part of portfolio optimization strategy.
Content Business Underperformance
Continued softness in the small content business segment, accounting for a low-to-mid single-digit million dollar shortfall versus expectations for 2024.
Hurricane-Related Event Cancellation
A hosted buyer event in Florida was canceled due to Hurricane Milton, impacting revenue by just under $1 million, with an insurance claim expected.
Company Guidance
During the earnings call for Q3 2024, Emerald's management provided guidance that included revised projections for full-year revenue and adjusted EBITDA, now expected to be at least $400 million and $100 million, respectively. This adjustment reflects the impact of discontinuing 20 unprofitable events, which previously accounted for $20 million in historic run-rate revenue. The company's actions are part of a broader strategy to optimize its portfolio for better growth and profitability, with expectations of solid revenue growth and margin expansion returning in 2025. Despite these challenges, Emerald's existing show portfolio remains robust, with pacing into 2025 showing stronger and more broad-based growth compared to the previous year. Additionally, the company highlighted improvements in their free cash flow, which benefited from a 50 basis point reduction in interest rates by the Federal Reserve, impacting $410 million of term loans. Furthermore, Emerald reported a net leverage ratio of 2.11x and executed share repurchases, with an expanded buyback program authorized for up to $25 million through December 2025.Emerald Expositions Events Corporate Events
Private Placements and Financing
Emerald Expositions Plans $415M Loan for Refinancing
Positive
Jan 15, 2025
Emerald Expositions Events is seeking to raise a new $415 million First Lien Term Loan to refinance its existing $409 million loan due in 2026. The transaction aims to maintain leverage neutrality while extending the existing revolving credit facility into a new five-year facility, reflecting the company’s robust post-COVID recovery with significant liquidity and financial stability.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.