Intrado’s 1Q21 earnings soften as enterprise communication segment loses momentum
Intrado recently released 1Q21 results, disclosing declines in EBITDA and revenue, according to two sources familiar with the situation. The top-line pressure was due in part to softness in the enterprise communication segment, which includes the company’s legacy conference call business, the sources added.
Adjusted EBITDA in 1Q21 came in at USD 114.3m, compared to USD 145.9m in 1Q20, they added.
Quarterly revenue totaled USD 401m, compared to USD 478.2m the prior year period, sources said.
Of the total, the enterprise communications segment booked USD 63m of revenue in the quarter, compared to USD 158m in the corresponding period. Adjusted EBITDA for the entity fell to USD 13m from USD 62m in 1Q20, they added
The enterprise communication segment benefitted from a tailwind last year as more companies and individuals utilized conference calls to conduct business, but the momentum has since subsided, sources noted.
However, management emphasized on the 1Q earnings call that their goal is to keep EBITDA positive for the segment, one of the sources said.
As of 31 March, liquidity totaled USD 499.3m through USD 158.3m of cash and USD 341m of revolver availability.
On an LTM basis, leverage totaled 7.35x through USD 537m of adjusted EBITDA and USD 3.95bn of total debt. After accounting for cost savings, leverage skates to 6.4x, based on USD 615m of pro forma LTM adjusted EBITDA.
Intrado’s USD 847.5m 8.5% senior unsecured notes due 2025 last traded at 99 to yield 8.776% yesterday (2 June), compared to trades at 101.625 to yield 7.254% on 17 May, according to MarketAxess.
The USD 700m Libor+350bps incremental TLB due 2024 is quoted today at 96.484/97.25, compared to trades at 97.194/97.694 on 26 May before the earnings report, according to Markit.
Intrado declined to comment.
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