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Monday, Aug 15, 2022

Emerald Faces $128M Hit

Trade show cancellations as people avoid big gatherings have led to changes for San Juan Capistrano-based Emerald Holding Inc. (NYSE: EEX).

The company said Monday it postponed 14 events, worth $12 million, and cancelled 23 others worth $116 million. All affect Emerald’s 2019 revenue. The company said it’s filed insurance claims to offset losses.

Despite the pullback in events and trade shows due to the COVID-19 pandemic, CFO David Doft said he’s “confident” in Emerald’s liquidity position.

The company updated investors saying it ended the first quarter with $150 million in cash. It’s monitoring expenses, and halted dividends and share repurchases in response to the virus.

“While the current environment remains challenging, we are aggressively managing our business to reduce our expenses and near-term monthly cash burn, and preserve our liquidity,” Doft said in a statement.

The moves help “position Emerald to successfully weather the dislocation we are experiencing due to COVID-19 and its dramatic impact on travel and face-to-face gatherings.”

Emerald closed up 4% Monday for a market cap of $121 million.

Go here for more updates on OC companies’ responses to the coronavirus.

For ongoing, in-depth coverage of the coronavirus’ effects on OC businesses, see the Monday print edition of the Business Journal.


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