NEP/NCP Holdco Inc.

Overview Key strengths Key risks Leading global provider of outsourced production services for sports and entertainment events. High capital intensity that impairs cash flow generation, especially during peak contract renewal periods. Extensive geographic presence in a fragmented market of regional players. High macroeconomic exposure, particularly in live events. Strong revenue visibility from long-term contracts and high renewal rates, supported by longstanding client relationships. Client concentration risks within its media services segment. The company?s capital expenditure (capex) was approximately $143 million for the nine months ending Sept. 30, 2024, compared to $243 million during the same period last year. This decrease in capex resulted from a lighter contract renewal cycle, reduced investment requirements for the NEP 360 build-out, and optimized capex

...NEP's cash flow improved in the last nine months, driven by lower capital expenditure and EBITDA growth from a boost in events. The company's capital expenditure (capex) was approximately $143 million for the nine months ending Sept. 30, 2024, compared to $243 million during the same period last year. This decrease in capex resulted from a lighter contract renewal cycle, reduced investment requirements for the NEP 360 build-out, and optimized capex spending based on higher return-on-investment (ROI) priorities. Despite the decrease in capex, year-to-date free operating cash flow (FOCF) remains a use of $120 million, and we anticipate that 2024's FOCF will total an overall use of about $70 million, compared to a use of approximately $113 million in 2023. Notably, FOCF in 2023 benefited from a one-time working...

Full Report