San Juan Capistrano, Calif. — Emerald Expositions Events Inc. released its third quarter financial results in early November, showing a slight decrease in revenue to $100.4 million compared to $100.5 million for the same period last year.
Net income of $19.2 million in the third reporting quarter was up roughly 4.4% from $18.4 million for the same period in 2016. That increase was primarily attributed to a $5.2 million decrease in interest expense for the quarter.
The company said the flat results were primarily due to the impact of Hurricane Irma on the Surf Expo and ISS Orlando shows, both of which were forced to close two days early because of the hurricane. Those closures alone accounted for a $6.6 million reduction in revenue, though $6.5 million was recovered by event cancellation insurance, the company said.
Emerald President and CEO David Loechner noted that the majority of the booked revenue for these two shows was not reflected in the reported revenue for the quarter. If it had been possible to do so, third quarter revenue would have increased by roughly 6.5% year over year, he said.
Other revenue declines, discussed in the previous quarter earnings report, totaled roughly $8.4 million due to specific one-time situations surrounding the last-minute relocation of the Outdoor Retailer show from Salt Lake City to Denver, and a space crunch at the Javits Center in New York, which affected NY NOW.
Loechner also noted “strong contributions” of $13.7 million in revenue from acquisitions that closed in 2017 and late 2016 that helped offset the losses that resulted from Hurricane Irma. Those 2017 acquisitions included CEDIA Expo and the InterDrone show.
Loechner also noted in the earnings conference call that “M&A remains an important component of our growth strategy” and said the company is working on other opportunities. “We remain optimistic that we will close one or more transactions before year’s end,” he said.
Reach David Loechner at (949) 226-5700 or david.loechner@emeraldexpo.com.
