Emerald Reports 2021 Financial Results
Emerald Holding, a leader in B2B trade shows, reported financial results for 2021, showcasing a net loss of $78.1 million, significantly improved from a loss of $633.6 million in 2020. The company hosted 63 in-person events with over 129,000 attendees. Revenue reached $145.5 million, a 14.2% increase year-over-year, influenced by recovered live events. Adjusted EBITDA stood at $45.7 million, reflecting a decrease from $71.9 million in 2020. Emerald completed the acquisition of MJBiz for $120 million and anticipates continued growth with a full 2022 event slate.
- Increased revenues to $145.5 million, up 14.2% from 2020.
- Improvement in net loss from $633.6 million to $78.1 million.
- Adjusted EBITDA of $45.7 million, despite a decline from $71.9 million.
- Successful acquisition of MJBiz enhances growth potential in the cannabis sector.
- Strong cash position with $231.2 million and $110 million revolving credit available.
- Continued decline in organic revenue, down 0.7% year-over-year.
- Adjusted EBITDA decreased by 36.4% from the previous year.
- Dependence on event cancellation insurance proceeds, which may not sustain in future.
~ Plans for Full Slate of Events in 2022 ~
Highlights
- In 2021, Emerald successfully traded 63 in-person trade shows, conferences and other events, serving more than 129,000 attendees and 7,500 exhibiting companies
-
Completed the acquisition of MJBiz on
December 31, 2021 , for initial consideration of$120 million -
Net loss of
$78.1 million $633.6 million -
Full year net loss included non-cash charges of
$39.9 million $680.2 million -
Adjusted EBITDA, a non-GAAP measure, of
$45.7 million $71.9 million -
Cash generation increased as bookings for returning events accelerate
-
Cash provided by operations of
$90.0 million $37.1 million -
Emerald generated free cash flow, a non-GAAP measure, of
$83.4 million $41.1 million
-
Cash provided by operations of
-
Emerald bought back 2.5 million shares at an average price of
$4.94 -
Impact of event cancellations and date postponements on operating income was partially offset by claim payments received under Emerald’s event cancellation insurance policy. Emerald is actively pursuing the collection of the remaining unpaid amounts of filed insurance claims for its cancelled and impacted 2020 and 2021 events
-
To date, Emerald has submitted
$249 million -
Insurance claim payments received to date total
$184.4 million $89.1 million $95.3 million -
Additional
$20.0 million -
Emerald currently has pending claims of
$64.7 million $45 million
-
To date, Emerald has submitted
-
Emerald ended the year with
$231.2 million $110 million
Fourth Quarter and Full Year 2021 Financial Performance
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Three Months
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Year Ended
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2021 |
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2020 |
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Change |
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% Change |
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2021 |
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2020 |
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Change |
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% Change |
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(unaudited, dollars in millions, except percentages and per share data) |
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Revenues |
|
$ |
41.1 |
|
|
$ |
12.2 |
|
|
$ |
28.9 |
|
|
|
236.9 |
% |
$ |
145.5 |
|
|
$ |
127.4 |
|
|
$ |
18.1 |
|
|
14.2 |
% |
|
Net loss |
|
$ |
(7.3 |
) |
|
$ |
(33.9 |
) |
|
$ |
26.6 |
|
|
|
78.5 |
% |
$ |
(78.1 |
) |
|
$ |
(633.6 |
) |
|
$ |
555.5 |
|
|
87.7 |
% |
|
Net cash provided by (used in) operating activities |
|
$ |
53.7 |
|
|
$ |
5.6 |
|
|
$ |
48.1 |
|
|
|
858.9 |
% |
$ |
90.0 |
|
|
$ |
(37.1 |
) |
|
$ |
127.1 |
|
|
NM |
|
|
Diluted loss per share |
|
$ |
(0.24 |
) |
|
$ |
(0.59 |
) |
|
$ |
0.35 |
|
|
|
59.3 |
% |
$ |
(1.59 |
) |
|
$ |
(9.09 |
) |
|
$ |
7.50 |
|
|
82.5 |
% |
|
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Non-GAAP measures: |
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Adjusted EBITDA |
|
$ |
52.6 |
|
|
$ |
18.3 |
|
|
$ |
34.3 |
|
|
|
187.4 |
% |
$ |
45.7 |
|
|
$ |
71.9 |
|
|
$ |
(26.2 |
) |
|
(36.4 |
%) |
|
Adjusted EBITDA excluding event cancellation insurance proceeds |
|
$ |
(7.3 |
) |
|
$ |
(24.4 |
) |
|
$ |
17.1 |
|
|
|
70.1 |
% |
$ |
(31.7 |
) |
|
$ |
(35.1 |
) |
|
$ |
3.4 |
|
|
9.7 |
% |
|
Free Cash Flow |
|
$ |
51.2 |
|
|
$ |
4.7 |
|
|
$ |
46.5 |
|
|
|
989.4 |
% |
$ |
83.4 |
|
|
$ |
(41.1 |
) |
|
$ |
124.5 |
|
|
NM |
|
|
COVID-19 Operational and Expected Insurance Recovery Update
Emerald remains focused on the health and safety of its employees and customers. The Company recently implemented a flexible hybrid work model for employees and actively returned to in-person events beginning in July and continuing through the remainder of 2021
The rapid spread of COVID-19 and the resulting limitations placed on travel and gatherings have had a material impact on Emerald’s ability to deliver large, in-person experiences which has necessitated substantial show calendar changes. To date, Emerald has cancelled a total of 132 events. Of the 132 cancelled events, 94 were scheduled to stage in 2020, representing
Emerald maintains event cancellation insurance to protect against losses due to the unavoidable cancellation, postponement, relocation and enforced reduced attendance at events due to certain covered causes. Specifically, for the policies covering calendar year 2020 and 2021, these causes include event cancellation caused by the outbreak of communicable diseases, including COVID-19. Coverage for the outbreak of communicable disease, including COVID-19, is not included in Emerald’s event cancellation insurance policy for events scheduled to be held in 2022. Emerald’s policies for the 2020 and 2021 calendar years provide coverage for the budgeted amount of gross revenues (less avoided costs, plus certain costs relating to the taking of remedial action) for each of the Company’s individual events and conferences occurring within the covered years. The aggregate limit under these event cancellation insurance policies is approximately
In addition to these primary policies, Emerald maintains separate event cancellation insurance policies for the Surf Expo Summer 2020, Surf Expo Winter 2021, Surf Expo Winter 2022 and Surf Expo Summer 2022 shows, with respective coverage limits of
In total, Emerald has submitted insurance claims of
Emerald is actively pursuing collection of the remaining unpaid amounts of filed insurance claims for its cancelled or otherwise impacted 2020 and 2021 events. On
While there is no guarantee or assurance as to the outcome of this litigation or the amount or timing of future recoveries from the Company’s event cancellation insurance policies, the Company believes that all events that have been impacted, cancelled or postponed due to COVID-19 during 2020 and 2021 to date should qualify as covered losses under the event cancellation insurance policies and that, to date, the insurers have paid less than what is owed under the policies.
Financial & Operational Results, Quarter Ended
For the fourth quarter of 2021, Emerald reported revenues of
The Company recognized a net loss of
For the fourth quarter of 2021, Adjusted EBITDA was
For a discussion of the Company’s presentation of Organic revenues and Adjusted EBITDA, including Adjusted EBITDA excluding event cancellation insurance proceeds, which are non-GAAP measures, see below under the heading “Non-GAAP Financial Information.” Refer to Schedule 1 for a reconciliation of Organic revenues to revenues (discussed in the first paragraph of this section), the most directly comparable GAAP measure, and refer to Schedule 3 for a reconciliation of Adjusted EBITDA and Adjusted EBITDA excluding event cancellation insurance proceeds to net loss (discussed in the second and third paragraphs of this section), the most directly comparable GAAP measure.
Financial & Operational Results, Year Ended
For 2021, Emerald reported revenues of
The Company incurred a net loss of
For 2021, Adjusted EBITDA was
For a discussion of the Company’s presentation of Organic revenues and Adjusted EBITDA, which are non-GAAP measures, see below under the heading “Non-GAAP Financial Information.” Refer to Schedule 1 for a reconciliation of Organic revenues to revenues (discussed in the first paragraph of this section), the most directly comparable GAAP measure, and refer to Schedule 3 for a reconciliation of Adjusted EBITDA to net loss (discussed in the second paragraph of this section), the most directly comparable GAAP measure.
Cash Flow
Net cash provided by operating activities was
Capital expenditures were
Free Cash Flow, which the Company defines as net cash provided by operating activities less capital expenditures, was an inflow of
Emerald acquired MJBiz in the fourth quarter of 2021 for an aggregate amount of
For the full year, net cash provided by operating activities was
Capital expenditures were
Free Cash Flow, which the Company defines as net cash provided by (used in) operating activities less capital expenditures, was an inflow of
For a review of the Company’s presentation of Free Cash Flow, which is a non-GAAP measure, see below under the heading “Non-GAAP Financial Information.” Refer to Schedule 4 for a reconciliation of Free Cash Flow to net cash (used in) provided by operating activities (discussed in the first paragraph of this section), the most directly comparable GAAP measure.
Conference Call Webcast Details
As previously announced, the Company’s leadership will hold a conference call to discuss its fourth quarter 2021 results at
The conference call can be accessed by dialing 1-877-300-8521 (domestic) or 1-412-317-6026 (international). A telephonic replay will be available approximately two hours after the call by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the replay is 10164027. The replay will be available until
Interested investors and other parties can access the webcast of the live conference call by visiting the Investors section of Emerald’s website at http://investor.emeraldx.com. An online replay will be available on the same website immediately following the call.
About Emerald
Emerald is a leader in building dynamic, market-driven business-to-business platforms that integrate live events with a broad array of industry insights, digital tools, and data-focused solutions to create uniquely rich experiences. As true partners, we at Emerald strive to build our customers’ businesses by creating opportunities that inspire, amaze, and deliver breakthrough results. With over [140] events each year, our teams are creators and connectors who are thoroughly immersed in the industries we serve and committed to supporting the communities in which we operate.
Non-GAAP Financial Information
This press release presents certain “non-GAAP” financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in
Organic Revenue
We define “Organic revenue growth” and “Organic revenue decline” as the growth or decline, respectively, in our revenue from one period to the next, adjusted for the revenue impact of: (i) acquisitions and dispositions, (ii) discontinued events, (iii) material show scheduling adjustments and (iv) event cancellations for which the Company has received, or expects to receive, claim proceeds from its event cancellation insurance policy. We disclose changes in Organic revenue because we believe it assists investors and analysts in comparing Emerald’s operating performance across reporting periods on a consistent basis by excluding items that we do not believe provide a fair comparison of the trends underlying our existing event portfolio given changes in timing or strategy. Management and Emerald’s board of directors evaluate changes in Organic revenue to evaluate our historical and prospective financial performance and understand underlying revenue trends of our events.
Adjusted EBITDA
We use Adjusted EBITDA because we believe it assists investors and analysts in comparing Emerald’s operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management and Emerald’s board of directors use Adjusted EBITDA to assess our financial performance and believe it is helpful in highlighting trends because it excludes the results of decisions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Adjusted EBITDA should not be considered as an alternative to net income as a measure of financial performance or to cash flows from operations as a liquidity measure.
We define Adjusted EBITDA as net income before (i) interest expense, (ii) income tax benefit, (iii) depreciation and amortization, (iv) stock-based compensation, (v) deferred revenue adjustment, (vi) goodwill and other intangible asset impairment charge, (vii) material show scheduling adjustments, where applicable, and (viii) other items that management believes are not part of our core operations.
We have also presented Adjusted EBITDA excluding event cancellation insurance proceeds in order to illustrate the amount of Adjusted EBITDA from continuing operations.
Note: Schedule 3 provides reconciliations for 2020 and 2021 Adjusted EBITDA to net income, however, it is not possible, without unreasonable efforts, to estimate the impacts of show scheduling adjustments, acquisitions and the amount and timing of receipt of event cancellation insurance proceeds and certain other special items that may occur in 2022 as these items are inherently uncertain and difficult to predict. As a result, the Company is unable to quantify certain amounts that would be included in a reconciliation of 2022 projected Adjusted EBITDA to projected net income without unreasonable efforts and has not provided reconciliations for these forward-looking non-GAAP financial measures.
Free Cash Flow
We present Free Cash Flow because we believe it is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after capital expenditures, can be used to maintain and grow our business, for the repayment of indebtedness, payment of dividends and to fund strategic opportunities. Free Cash Flow is a supplemental non-GAAP measure of liquidity and is not based on any standardized methodology prescribed by GAAP. Free Cash Flow should not be considered in isolation or as an alternative to cash flows from operating activities or other measures determined in accordance with GAAP.
Other companies may compute these measures differently. No non-GAAP metric should be considered as an alternative to any other measure derived in accordance with GAAP.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains and our earnings call will contain certain forward-looking statements, including, but not limited to, our expectations arising from the severe impact of COVID-19 and related variants on our business; our ability to continue staging live events and return our business to pre-COVID levels; our guidance with respect to estimated 2022 revenues and Adjusted EBITDA, including Adjusted EBITDA excluding event cancellation insurance proceeds; our ability to recover insurance proceeds under current policies and the timing of any such recoveries; our ability to obtain event cancellation insurance in the future on similar terms or at all; the outcome of the Company’s litigation against the insurers under the Company’s event cancellation insurance policies; the timing for rescheduled trade show events; and our ability to successfully identify and acquire acquisition targets and integrate and grow acquired businesses. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of the Company’s control that may cause its business, industry, strategy, financing activities or actual results to differ materially. See “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company undertakes no obligation to update or revise any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise.
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Condensed Consolidated Statements of Loss and Comprehensive Loss |
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(unaudited, dollars in millions, share data in thousands, except loss per share data) |
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Three Months
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Three Months
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|
Year
|
|
|
Year
|
|
||||
Revenues |
|
$ |
41.1 |
|
|
$ |
12.2 |
|
|
$ |
145.5 |
|
|
$ |
127.4 |
|
Other income |
|
|
59.9 |
|
|
|
42.7 |
|
|
|
77.4 |
|
|
|
107.0 |
|
Cost of revenues |
|
|
14.2 |
|
|
|
10.5 |
|
|
|
55.5 |
|
|
|
57.6 |
|
Selling, general and administrative expense |
|
|
40.3 |
|
|
|
29.8 |
|
|
|
143.0 |
|
|
|
118.6 |
|
Depreciation and amortization expense |
|
|
11.5 |
|
|
|
11.4 |
|
|
|
47.6 |
|
|
|
48.6 |
|
|
|
|
7.2 |
|
|
|
15.2 |
|
|
|
7.2 |
|
|
|
603.4 |
|
Intangible asset impairment charges |
|
|
32.7 |
|
|
|
17.4 |
|
|
|
32.7 |
|
|
|
76.8 |
|
Operating loss |
|
|
(4.9 |
) |
|
|
(29.4 |
) |
|
|
(63.1 |
) |
|
|
(670.6 |
) |
Interest expense, net |
|
|
3.8 |
|
|
|
4.1 |
|
|
|
15.8 |
|
|
|
20.6 |
|
Loss on disposal of fixed assets |
|
|
0.5 |
|
|
|
- |
|
|
|
0.5 |
|
|
|
- |
|
Loss before income taxes |
|
|
(9.2 |
) |
|
|
(33.5 |
) |
|
|
(79.4 |
) |
|
|
(691.2 |
) |
(Benefit from) provision for income taxes |
|
|
(1.9 |
) |
|
|
0.4 |
|
|
|
(1.3 |
) |
|
|
(57.6 |
) |
Net loss and comprehensive loss attributable to |
|
$ |
(7.3 |
) |
|
$ |
(33.9 |
) |
|
$ |
(78.1 |
) |
|
$ |
(633.6 |
) |
Accretion to redemption value of redeemable convertible preferred stock |
|
|
(9.3 |
) |
|
|
(8.5 |
) |
|
|
(35.6 |
) |
|
|
(15.6 |
) |
Net loss and comprehensive loss attributable to |
|
$ |
(16.6 |
) |
|
$ |
(42.4 |
) |
|
$ |
(113.7 |
) |
|
$ |
(649.2 |
) |
Basic loss per share |
|
$ |
(0.24 |
) |
|
$ |
(0.59 |
) |
|
$ |
(1.59 |
) |
|
$ |
(9.09 |
) |
Diluted loss per share |
|
$ |
(0.24 |
) |
|
$ |
(0.59 |
) |
|
$ |
(1.59 |
) |
|
$ |
(9.09 |
) |
Basic weighted average common shares outstanding |
|
|
70,088 |
|
|
|
71,413 |
|
|
|
71,309 |
|
|
|
71,431 |
|
Diluted weighted average common shares outstanding |
|
|
70,088 |
|
|
|
71,413 |
|
|
|
71,309 |
|
|
|
71,431 |
|
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Condensed Consolidated Balance Sheets |
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(dollars in millions, share data in thousands, except par value) |
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(unaudited) |
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Assets |
|
|
|
|
|
|
|
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Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
231.2 |
|
|
$ |
295.3 |
|
Trade and other receivables, net of allowances of |
|
|
46.4 |
|
|
|
30.7 |
|
Insurance receivables |
|
|
- |
|
|
|
17.8 |
|
Prepaid expenses |
|
|
12.5 |
|
|
|
8.5 |
|
Total current assets |
|
|
290.1 |
|
|
|
352.3 |
|
Noncurrent assets |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
3.7 |
|
|
|
3.9 |
|
Intangible assets, net |
|
|
236.7 |
|
|
|
275.0 |
|
|
|
|
514.2 |
|
|
|
404.3 |
|
Right-of-use assets |
|
|
15.1 |
|
|
|
16.0 |
|
Other noncurrent assets |
|
|
2.6 |
|
|
|
2.9 |
|
Total assets |
|
$ |
1,062.4 |
|
|
$ |
1,054.4 |
|
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and other current liabilities |
|
$ |
51.8 |
|
|
$ |
31.1 |
|
Cancelled event liabilities |
|
|
9.8 |
|
|
|
25.9 |
|
Deferred revenues |
|
|
118.1 |
|
|
|
48.6 |
|
Right-of-use liabilities, current portion |
|
|
4.7 |
|
|
|
4.3 |
|
Term loan, current portion |
|
|
5.7 |
|
|
|
5.7 |
|
Total current liabilities |
|
|
190.1 |
|
|
|
115.6 |
|
Noncurrent liabilities |
|
|
|
|
|
|
|
|
Term loan, net of discount and deferred financing fees |
|
|
510.9 |
|
|
|
515.3 |
|
Deferred tax liabilities, net |
|
|
1.5 |
|
|
|
1.9 |
|
Right-of-use liabilities |
|
|
13.3 |
|
|
|
13.4 |
|
Other noncurrent liabilities |
|
|
32.1 |
|
|
|
13.7 |
|
Total liabilities |
|
|
747.9 |
|
|
|
659.9 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Redeemable convertible preferred stock |
|
|
|
|
|
|
|
|
|
|
433.9 |
|
|
398.3 |
|
||
Stockholders’ deficit |
|
|
|
|
|
|
|
|
Common stock, |
|
|
0.7 |
|
|
|
0.7 |
|
Additional paid-in capital |
|
|
653.2 |
|
|
|
690.7 |
|
Accumulated deficit |
|
|
(773.3 |
) |
|
|
(695.2 |
) |
Total stockholders’ deficit |
|
|
(119.4 |
) |
|
|
(3.8 |
) |
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit |
|
$ |
1,062.4 |
|
|
$ |
1,054.4 |
|
Schedule 1 |
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UNAUDITED RECONCILIATION OF REVENUES TO ORGANIC REVENUES |
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Three Months
|
|
|
Change |
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|
Year Ended
|
|
|
Change |
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||||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||||||
|
|
(dollars in millions)
|
|
|||||||||||||||||||||||||||||
Revenues |
|
$ |
41.1 |
|
|
$ |
12.2 |
|
|
$ |
28.9 |
|
|
|
236.9 |
% |
|
$ |
145.5 |
|
|
$ |
127.4 |
|
|
$ |
18.1 |
|
|
|
14.2 |
% |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition revenues |
|
|
(7.3 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
(16.6 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
Discontinued events |
|
|
- |
|
|
|
(2.8 |
) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
(7.6 |
) |
|
|
|
|
|
|
|
|
COVID-19 prior year cancellations(1) |
|
|
(21.7 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
(85.1 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
COVID-19 current year cancellations(2) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
(75.7 |
) |
|
|
|
|
|
|
|
|
Organic revenues |
|
$ |
12.1 |
|
|
$ |
9.4 |
|
|
$ |
2.7 |
|
|
|
28.7 |
% |
|
$ |
43.8 |
|
|
$ |
44.1 |
|
|
$ |
(0.3 |
) |
|
|
(0.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|||
(1) |
Represents the increase in 2021 revenues as a result of events that staged in the current year and were cancelled due to COVID-19 in the prior year. |
||
(2) |
Represents reduction in revenues as a result of the cancellation of certain events in fiscal 2021 due to COVID-19, compared to all events that staged in 2020. The Company believes the financial impact, net of costs saved, will be partially offset by event cancellation insurance proceeds from pending claims. |
Schedule 2 |
||||||||||||||||
|
||||||||||||||||
UNAUDITED RECONCILIATION OF REVENUES TO DISAGGREGATED REVENUES |
||||||||||||||||
|
|
Three Months
|
|
|
Three Months
|
|
|
Year
|
|
|
Year
|
|
||||
|
|
(dollars in millions)
|
|
|||||||||||||
|
|
$ |
22.0 |
|
|
$ |
1.6 |
|
|
$ |
84.0 |
|
|
$ |
80.3 |
|
Other Events |
|
|
6.7 |
|
|
|
4.6 |
|
|
|
19.5 |
|
|
|
20.9 |
|
Subscription software and services |
|
|
3.2 |
|
|
|
- |
|
|
|
11.1 |
|
|
|
- |
|
Other marketing services |
|
|
9.2 |
|
|
|
6.0 |
|
|
|
30.9 |
|
|
|
26.2 |
|
Total Revenues |
|
$ |
41.1 |
|
|
$ |
12.2 |
|
|
$ |
145.5 |
|
|
$ |
127.4 |
|
Schedule 3 |
||||||||||||||||
|
||||||||||||||||
UNAUDITED RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
||||||||||||||||
|
|
Three Months
|
|
|
Year Ended
|
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
2020 |
|
|||||
|
|
(dollars in millions)
|
|
|||||||||||||
Net loss |
|
$ |
(7.3 |
) |
|
$ |
(33.9 |
) |
|
$ |
(78.1 |
) |
$ |
(633.6 |
) |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
3.8 |
|
|
|
4.1 |
|
|
|
15.8 |
|
|
20.6 |
|
|
(Benefit from) provision for income taxes |
|
|
(1.9 |
) |
|
|
0.4 |
|
|
|
(1.3 |
) |
|
(57.6 |
) |
|
|
|
|
7.2 |
|
|
|
15.2 |
|
|
|
7.2 |
|
|
603.4 |
|
|
Intangible asset impairment charges(2) |
|
|
32.7 |
|
|
|
17.4 |
|
|
|
32.7 |
|
|
76.8 |
|
|
Depreciation and amortization |
|
|
11.5 |
|
|
|
11.4 |
|
|
|
47.6 |
|
|
48.6 |
|
|
Stock-based compensation |
|
|
2.2 |
|
|
|
2.5 |
|
|
|
10.4 |
|
|
6.7 |
|
|
Deferred revenue adjustment |
|
|
0.6 |
|
|
|
- |
|
|
|
2.0 |
|
|
- |
|
|
Other items(3) |
|
|
3.8 |
|
|
|
1.2 |
|
|
|
9.4 |
|
|
7.0 |
|
|
Adjusted EBITDA |
|
$ |
52.6 |
|
|
$ |
18.3 |
|
|
$ |
45.7 |
|
$ |
71.9 |
|
|
Deduct: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Event cancellation insurance proceeds |
|
|
59.9 |
|
|
|
42.7 |
|
|
|
77.4 |
|
|
107.0 |
|
|
Adjusted EBITDA excluding event cancellation insurance proceeds |
|
$ |
(7.3 |
) |
|
$ |
(24.4 |
) |
|
$ |
(31.7 |
) |
$ |
(35.1 |
) |
|
Notes: |
|||
(1) |
For the three months ended |
||
For the year ended |
|||
For the year ended |
|||
(2) |
Intangible asset impairment charges for the three and twelve months ended |
||
Intangible asset impairment charges for the three months ended |
|||
Intangible asset impairment charges for the year ended |
|||
(3) |
Other items for the three months ended |
||
Other items for the three months ended |
|||
Other items for the year ended |
|||
Other items for the year ended |
Schedule 4 |
||||||||||||||||
|
||||||||||||||||
UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW |
||||||||||||||||
|
|
Three Months
|
|
|
Year Ended
|
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|||||
Net Cash Provided by (Used in) Operating Activities |
|
$ |
53.7 |
|
|
$ |
5.6 |
|
|
$ |
90.0 |
|
|
$ |
(37.1 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
2.5 |
|
|
|
0.9 |
|
|
|
6.6 |
|
|
|
4.0 |
|
Free Cash Flow |
|
$ |
51.2 |
|
|
$ |
4.7 |
|
|
$ |
83.4 |
|
|
$ |
(41.1 |
) |
Schedule 5 |
||||||||||||||||
|
||||||||||||||||
UNAUDITED RECONCILIATION OF REPORTABLE SEGMENTS RESULTS TO LOSS BEFORE TAXES |
||||||||||||||||
|
|
Three Months
|
|
|
Year Ended
|
|||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
|
(dollars in millions)
|
|
|||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
6.8 |
|
|
$ |
4.2 |
|
|
$ |
57.3 |
|
|
$ |
56.9 |
|
Design and Technology |
|
|
24.9 |
|
|
|
5.5 |
|
|
|
55.4 |
|
|
|
51.2 |
|
All Other |
|
|
9.4 |
|
|
|
2.5 |
|
|
|
32.8 |
|
|
|
19.3 |
|
Total revenues |
|
$ |
41.1 |
|
|
$ |
12.2 |
|
|
$ |
145.5 |
|
|
$ |
127.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
51.0 |
|
|
$ |
24.9 |
|
|
$ |
59.3 |
|
|
$ |
70.3 |
|
Design and Technology |
|
|
6.9 |
|
|
|
16.6 |
|
|
|
12.3 |
|
|
|
32.5 |
|
All Other |
|
|
2.0 |
|
|
|
1.2 |
|
|
|
5.8 |
|
|
|
4.2 |
|
Total other income |
|
$ |
59.9 |
|
|
$ |
42.7 |
|
|
$ |
77.4 |
|
|
$ |
107.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
51.7 |
|
|
$ |
19.6 |
|
|
$ |
73.6 |
|
|
$ |
74.8 |
|
Design and Technology |
|
|
14.5 |
|
|
|
11.1 |
|
|
|
18.5 |
|
|
|
35.1 |
|
All Other |
|
|
1.3 |
|
|
|
(0.2 |
) |
|
|
2.5 |
|
|
|
2.9 |
|
Subtotal Adjusted EBITDA |
|
$ |
67.5 |
|
|
$ |
30.5 |
|
|
$ |
94.6 |
|
|
$ |
112.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General corporate and other expenses |
|
|
(14.9 |
) |
|
|
(12.2 |
) |
|
|
(48.9 |
) |
|
|
(40.9 |
) |
Interest expense |
|
|
(3.8 |
) |
|
|
(4.1 |
) |
|
|
(15.8 |
) |
|
|
(20.6 |
) |
|
|
|
(7.2 |
) |
|
|
(15.2 |
) |
|
|
(7.2 |
) |
|
|
(603.4 |
) |
Intangible asset impairment charges |
|
|
(32.7 |
) |
|
|
(17.4 |
) |
|
|
(32.7 |
) |
|
|
(76.8 |
) |
Depreciation and amortization expense |
|
|
(11.5 |
) |
|
|
(11.4 |
) |
|
|
(47.6 |
) |
|
|
(48.6 |
) |
Stock-based compensation expense |
|
|
(2.2 |
) |
|
|
(2.5 |
) |
|
|
(10.4 |
) |
|
|
(6.7 |
) |
Deferred revenue adjustment |
|
|
(0.6 |
) |
|
|
- |
|
|
|
(2.0 |
) |
|
|
- |
|
Other items |
|
|
(3.8 |
) |
|
|
(1.2 |
) |
|
|
(9.4 |
) |
|
|
(7.0 |
) |
Loss before taxes |
|
$ |
(9.2 |
) |
|
$ |
(33.5 |
) |
|
$ |
(79.4 |
) |
|
$ |
(691.2 |
) |
Schedule 6 |
||||||||||||||||
|
||||||||||||||||
UNAUDITED EVENT CANCELLATION INSURANCE CLAIM ACTIVITY |
||||||||||||||||
|
|
Insurance claims
|
|
|
Insurance claims
|
|
|
Insurance claim
|
|
|
Insurance
|
|
||||
|
(dollars in millions)
|
|
||||||||||||||
Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 events |
|
$ |
166.8 |
|
|
$ |
89.1 |
|
|
$ |
17.9 |
|
|
$ |
107.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 events |
|
$ |
- |
|
|
$ |
52.3 |
|
|
$ |
(17.9 |
) |
|
$ |
34.4 |
|
2021 events |
|
|
82.3 |
|
|
|
43.0 |
|
|
|
- |
|
|
$ |
43.0 |
|
Total |
|
$ |
82.3 |
|
|
$ |
95.3 |
|
|
$ |
(17.9 |
) |
|
|
77.4 |
|
Cumulative Total |
|
$ |
249.1 |
|
|
$ |
184.4 |
|
|
$ |
- |
|
|
$ |
184.4 |
|
*Includes insurance claims accrued and received in subsequent period |
|
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220223006337/en/
Source:
FAQ
What were Emerald Holding's financial results for 2021?
What is the significance of the acquisition of MJBiz for EEX?
What is Emerald's guidance for 2022?
How did the COVID-19 pandemic impact Emerald Holding's business?
What are the key factors influencing Emerald Holding's stock performance?
