SAN JUAN CAPISTRANO, Calif. (BRAIN) — Emerald Expositions Events on Thursday reported 4.8 percent revenue growth for the first quarter. Revenue reached $142.2 million, compared with $135.7 million for the same quarter last year.
Emerald owns Interbike and the Outdoor Retailer shows among its more than 55 business-to-business shows.
The company also said net income increased 34.6 percent to $38.1 million, compared with $28.3 million for the first quarter of 2017. Net cash provided by operating activities decreased 28.5 percent to $20.6 million, compared with $28.8 million for the first quarter of 2017.
Adjusted EBITDA increased 1.7 percent to $73.6 million, compared with $72.4 million a year earlier. Adjusted net income increased 30.9 percent to $50.4 million, compared with $38.5 million a year earlier.
“I am pleased with our first-quarter results as revenue grew by 5 percent, year over year, driven by our acquisition of Connecting Point Marketing Group, CPMG, in the fourth quarter of 2017. The inaugural Outdoor Retailer + Snow Show staged in Denver at the end of January and its considerable success bodes very well for future shows,” said David Loechner, president and CEO of Emerald Expositions, in a release.
For the first quarter, organic revenue was flat compared with the first quarter of 2017. The company reported strong growth in several of the quarter’s trade shows, including KBIS and Pizza Expo, which were offset by mid-single-digit revenue declines at its ASD Market Week and NY NOW shows.
In addition, despite a strong and expanded show in its new Denver venue, the Outdoor Retailer + Snow Show’s first-quarter show declined in revenue, due mainly to transitional pricing accommodations provided to exhibitors as a result of Emerald’s acquisition of the SIA Snow Show last year.
Still, Loechner told analysts during an earnings call that attendance was 60 percent higher at this year’s January OR show compared with last year, noting that the show picked up SIA show attendees as well as additional retailers and buyers from the snow community that hadn’t been to Outdoor Retailer or the SIA shows.
The Connecting Point Marketing Group (CPMG) business, acquired in November 2017, contributed $8.2 million in revenue during the first quarter of 2018. This increase in revenue was reduced by the impact of events that were discontinued between the first quarter of 2017 and the first quarter of 2018, as well as the impact of a scheduling difference for a small show.
Emerald noted that it expected revenue growth of 7.4 to 9.7 percent for the full year, or approximately $367 million to $375 million, and organic revenue growth of 1.5 to 3.5 percent.
