SAN JUAN CAPISTRANO, Calif. (BRAIN) — Emerald Expositions reported 14 percent growth in revenue for the second quarter compared with the same period last year — about a third of that from organic growth and two-thirds from recent acquisitions.
President and CEO David Loechner told financial analysts during a Thursday morning earnings call that the company was optimistic on the outlook for Interbike following the announcement about its relocation to Reno-Tahoe.
"You may not have heard, but Interbike is moving to Reno from its home in Las Vegas. We're adding two days of a consumer festival and a demonstration day ahead of the show. We're accelerating the format for the industry and the industry has been very receptive to the move and bringing new elements to the show," he said during the conference call.
"We're very optimistic and have talked to companies who haven't participated and are interested in participating, so we're expecting a stronger show next year," he added. "Reno had hosted Interbike and Outdoor Retailer for many years and we're looking forward to returning there with Interbike."
Emerald reported that revenue for the second quarter increased to $74.1 million from $65 million a year earlier. The increase reflected organic growth of 4.6 percent. However, Emerald posted a net loss of $5.8 million, compared with a loss of $400,000 a year earlier, partly due to costs from the relocation of Outdoor Retailer in 2018 to Denver.
The second-quarter expenses included $8.5 million of one-time costs to settle contractual commitments associated with the move of the OR show from Salt Lake City to Denver, as well as $400,000 of IPO-related costs in the quarter. Acquisitions contributed about $1.4 million of incremental costs, and the remaining $1 million of selling, general and administrative expenses were due to higher compensation and marketing costs.
Adjusted net income increased 62 percent to $12.8 million. By segment, about $59 million of revenue was attributed to shows, $8 million to other events, and $7 million to other marketing and services.
Emerald said that it's applied the net proceeds from its IPO -- $159.1 million — to reduce its debt under its term loan facility.
Loechner said he expected organic and reported revenues for the remainder of 2017 to be at the lower end of its guidance, and adjusted EBITDA to be below the midpoint of its previous provided guidance range.
The company previously said it expected total revenue growth of 7.5 to 9.5 percent, or $348 million to $355 million, with organic revenue growth of 0 to 2 percent. Adjusted EBITDA was forecasted to $154 million to $160 million, or growth of 1.2 to 5.2 percent.
Emerald operates more than 50 trade shows as well as numerous other events. Besides Interbike and Outdoor Retailer, Emerald owns Bicycle Retailer, which is operated under license by NBDA Services Inc.
For more on its financial earnings, see the Form 8-K filed with the SEC: http://d18rn0p25nwr6d.cloudfront.net/CIK-0001579214/c1690a7f-42e4-4d48-b...
