Emerald Reports Second Quarter 2022 Financial Results
Emerald Holding, Inc. (NYSE:EEX) announced a significant turnaround in its financial performance, reporting second-quarter 2022 revenues of $71.4 million, up 376% from $15.0 million in Q2 2021. The company resolved outstanding insurance litigation, expecting to receive a settlement of $149.25 million, increasing total expected insurance proceeds to $372.9 million. Adjusted EBITDA reached $15.6 million, a notable recovery from negative earnings in the prior year. Additionally, Emerald has $231.7 million in cash and marketable securities, supporting its growth strategy.
- Settlement of insurance litigation expected to bring in $149.25 million.
- Q2 revenues of $71.4 million, a 376% increase from $15.0 million in the previous year.
- Adjusted EBITDA improved to $15.6 million from negative $13.6 million year-over-year.
- Strong liquidity with $231.7 million in cash and marketable securities.
- Net loss of $0.7 million in Q2 2022 compared to a loss of $46.5 million in Q2 2021, though improved, still indicates challenges.
- Q2 cash provided by operations decreased to $12.2 million from $25.1 million in the previous year.
Company Announces Settlement of Insurance Litigation; Recovery Momentum Continues
Highlights
-
Company reaches agreement to settle outstanding insurance litigation for proceeds of
$149.25 million $372.9 million - In the second quarter of 2022, Emerald successfully traded 29 in-person trade shows, conferences and other events, serving more than 62,000 attendees and 3,600 exhibiting companies
-
Revenues of
$71.4 million $56.4 million 376.0% , from$15.0 million -
Net loss of
$0.7 million $46.5 million -
Adjusted EBITDA, a non-GAAP measure, of
$15.6 million $13.6 million -
Continuing positive cash generation as bookings for returning events accelerate
-
Cash provided by operations of
$12.2 million $25.1 million -
Emerald generated free cash flow, a non-GAAP measure, of
$10.5 million $23.8 million
-
Cash provided by operations of
-
Emerald bought back 1.0 million shares of common stock at an average price of
$3.38 -
Emerald ended the quarter with
$231.7 million $110 million - During the second quarter 2022, Emerald acquired substantially all the assets of Advertising Week, a global event and thought leadership platform focused on marketing, media, technology and culture.
Second Quarter 2022 Financial Performance
|
|
Three Months
Ended |
|
Six Months Ended
|
|
||||||||||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
Change |
|
|
% Change |
|
2022 |
|
|
2021 |
|
|
Change |
|
|
% Change |
|
||||||||
|
|
(unaudited, dollars in millions, except percentages and per share data) |
|
||||||||||||||||||||||||||||
Revenues |
|
$ |
71.4 |
|
|
$ |
15.0 |
|
|
$ |
56.4 |
|
|
|
376.0 |
% |
$ |
169.9 |
|
|
$ |
27.9 |
|
|
$ |
142.0 |
|
|
|
509.0 |
% |
Net (loss) income |
|
$ |
(0.7 |
) |
|
$ |
(46.5 |
) |
|
$ |
45.8 |
|
|
NM |
|
$ |
15.4 |
|
|
$ |
(61.8 |
) |
|
$ |
77.2 |
|
|
|
124.9 |
% |
|
Net cash provided by operating activities |
|
$ |
12.2 |
|
|
$ |
25.1 |
|
|
$ |
(12.9 |
) |
|
|
(51.4 |
%) |
$ |
45.2 |
|
|
$ |
26.7 |
|
|
$ |
18.5 |
|
|
NM |
|
|
Diluted loss per share |
|
$ |
(0.15 |
) |
|
$ |
(0.77 |
) |
|
$ |
0.62 |
|
|
NM |
|
$ |
(0.05 |
) |
|
$ |
(1.10 |
) |
|
$ |
1.05 |
|
|
|
95.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
15.6 |
|
|
$ |
(13.6 |
) |
|
$ |
29.2 |
|
|
NM |
|
$ |
64.9 |
|
|
$ |
(16.1 |
) |
|
$ |
81.0 |
|
|
|
(503.1 |
%) |
|
Adjusted EBITDA excluding event cancellation insurance proceeds |
|
$ |
7.5 |
|
|
$ |
(15.9 |
) |
|
$ |
23.4 |
|
|
NM |
|
$ |
33.1 |
|
|
$ |
(32.5 |
) |
|
$ |
65.6 |
|
|
|
201.8 |
% |
|
Free Cash Flow |
|
$ |
10.5 |
|
|
$ |
23.8 |
|
|
$ |
(13.3 |
) |
|
|
(55.9 |
%) |
$ |
40.3 |
|
|
$ |
24.4 |
|
|
$ |
15.9 |
|
|
NM |
|
|
Resumption of Live Events and Insurance Litigation Settlement
Emerald actively returned to staging in-person events beginning in
On
In total, Emerald has submitted insurance claims of approximately
Financial & Operational Results, Quarter Ended
For the second quarter of 2022, Emerald reported revenues of
The Company recognized net loss of
For the second quarter of 2022, 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.
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
The Company bought back 1.0 million shares of common stock at an average price 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 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 second quarter 2022 results at
The conference call can be accessed by dialing 1-800-952-1438 (domestic) or 1-312-281-1211 (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 22019682. 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 charges, (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 2022 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 2023 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 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; 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.
Condensed Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income
(unaudited, dollars in millions, share data in thousands, except loss per share data)
|
|
Three Months Ended
2022 |
|
|
Three Months Ended
2021 |
|
|
Six Months Ended
2022 |
|
|
Six Months Ended
2021 |
|
||||
Revenues |
|
$ |
71.4 |
|
|
$ |
15.0 |
|
|
|
169.9 |
|
|
$ |
27.9 |
|
Other income, net |
|
|
8.1 |
|
|
|
2.3 |
|
|
|
31.8 |
|
|
|
16.4 |
|
Cost of revenues |
|
|
26.4 |
|
|
|
3.6 |
|
|
|
60.6 |
|
|
|
7.6 |
|
Selling, general and administrative expense |
|
|
32.3 |
|
|
|
33.1 |
|
|
|
78.9 |
|
|
|
63.9 |
|
Depreciation and amortization expense |
|
|
14.0 |
|
|
|
12.1 |
|
|
|
28.3 |
|
|
|
23.9 |
|
|
|
|
— |
|
|
|
— |
|
|
|
6.3 |
|
|
|
— |
|
Intangible asset impairment charges |
|
|
— |
|
|
|
— |
|
|
|
1.6 |
|
|
|
— |
|
Operating income (loss) |
|
|
6.8 |
|
|
|
(31.5 |
) |
|
|
26.0 |
|
|
|
(51.1 |
) |
Interest expense, net |
|
|
4.6 |
|
|
|
4.1 |
|
|
|
8.5 |
|
|
|
8.1 |
|
Income (loss) before income taxes |
|
|
2.2 |
|
|
|
(35.6 |
) |
|
|
17.5 |
|
|
|
(59.2 |
) |
Provision for income taxes |
|
|
2.9 |
|
|
|
10.9 |
|
|
|
2.1 |
|
|
|
2.6 |
|
Net (loss) income and comprehensive (loss) income attributable to |
|
$ |
(0.7 |
) |
|
$ |
(46.5 |
) |
|
$ |
15.4 |
|
|
$ |
(61.8 |
) |
Accretion to redemption value of redeemable convertible preferred stock |
|
|
(9.6 |
) |
|
|
(8.8 |
) |
|
|
(18.8 |
) |
|
$ |
(17.3 |
) |
Net loss and comprehensive loss attributable to |
|
$ |
(10.3 |
) |
|
$ |
(55.3 |
) |
|
$ |
(3.4 |
) |
|
$ |
(79.1 |
) |
Basic loss per share |
|
|
(0.15 |
) |
|
|
(0.77 |
) |
|
|
(0.05 |
) |
|
|
(1.10 |
) |
Diluted loss income per share |
|
|
(0.15 |
) |
|
|
(0.77 |
) |
|
|
(0.05 |
) |
|
|
(1.10 |
) |
Basic weighted average common shares outstanding |
|
|
69,816 |
|
|
|
71,938 |
|
|
|
70,007 |
|
|
|
72,091 |
|
Diluted weighted average common shares outstanding |
|
|
69,816 |
|
|
|
71,938 |
|
|
|
70,007 |
|
|
|
72,091 |
|
Condensed Consolidated Balance Sheets
(dollars in millions, share data in thousands, except par value)
|
|
2022 |
|
|
2021 |
|
||
|
|
(unaudited) |
|
|||||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
181.7 |
|
|
$ |
231.2 |
|
Marketable securities |
|
|
50.0 |
|
|
|
- |
|
Trade and other receivables, net of allowances of |
|
|
79.7 |
|
|
|
46.4 |
|
Prepaid expenses |
|
|
17.7 |
|
|
|
12.5 |
|
Total current assets |
|
|
329.1 |
|
|
|
290.1 |
|
Noncurrent assets |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
4.2 |
|
|
|
3.7 |
|
Intangible assets, net |
|
|
226.6 |
|
|
|
236.7 |
|
|
|
|
537.5 |
|
|
|
514.2 |
|
Right-of-use assets |
|
|
14.7 |
|
|
|
15.1 |
|
Other noncurrent assets |
|
|
2.6 |
|
|
|
2.6 |
|
Total assets |
|
$ |
1,114.7 |
|
|
$ |
1,062.4 |
|
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and other current liabilities |
|
$ |
66.2 |
|
|
$ |
48.3 |
|
Cancelled event liabilities |
|
|
4.4 |
|
|
|
9.8 |
|
Deferred revenues |
|
|
143.5 |
|
|
|
118.1 |
|
Contingent consideration |
|
|
32.7 |
|
|
|
5.1 |
|
Right-of-use liabilities, current portion |
|
|
4.7 |
|
|
|
4.7 |
|
Term loan, current portion |
|
|
5.7 |
|
|
|
5.7 |
|
Total current liabilities |
|
|
257.2 |
|
|
|
191.7 |
|
Noncurrent liabilities |
|
|
|
|
|
|
|
|
Term loan, net of discount and deferred financing fees |
|
|
508.7 |
|
|
|
510.9 |
|
Deferred tax liabilities, net |
|
|
1.7 |
|
|
|
1.5 |
|
Right-of-use liabilities |
|
|
11.9 |
|
|
|
13.3 |
|
Other noncurrent liabilities |
|
|
7.5 |
|
|
|
32.1 |
|
Total liabilities |
|
|
787.0 |
|
|
|
749.5 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Redeemable convertible preferred stock |
|
|
|
|
|
|
|
|
|
|
|
452.5 |
|
|
433.9 |
|
|
Stockholders’ deficit |
|
|
|
|
|
|
|
|
Common stock, |
|
|
0.7 |
|
|
|
0.7 |
|
Additional paid-in capital |
|
|
634.0 |
|
|
|
653.2 |
|
Accumulated deficit |
|
|
(759.5 |
) |
|
|
(774.9 |
) |
Total stockholders’ deficit |
|
|
(124.8 |
) |
|
|
(121.0 |
) |
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit |
|
$ |
1,114.7 |
|
|
$ |
1,062.4 |
|
Schedule 1
UNAUDITED RECONCILIATION OF REVENUES TO ORGANIC REVENUES
|
|
Three Months
Ended |
|
|
Change |
|
|
Six Months
Ended |
|
|
Change |
|
||||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
|
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
||||||||
|
|
(dollars in millions) (unaudited) |
|
|||||||||||||||||||||||||||||
Revenues |
|
$ |
71.4 |
|
|
$ |
15.0 |
|
|
$ |
56.4 |
|
|
|
376.0 |
% |
|
$ |
169.9 |
|
|
$ |
27.9 |
|
|
$ |
142.0 |
|
|
|
509.0 |
% |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition revenues |
|
|
(0.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
COVID-19 prior year cancellations(1) |
|
|
(9.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(72.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
COVID-19 prior year postponements(2) |
|
|
(45.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(57.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Scheduling adjustments |
|
|
— |
|
|
|
(0.1 |
) |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
Organic revenues |
|
$ |
15.7 |
|
|
$ |
14.9 |
|
|
$ |
0.8 |
|
|
|
5.4 |
% |
|
$ |
38.0 |
|
|
$ |
29.0 |
|
|
$ |
9.0 |
|
|
|
31.0 |
% |
| Notes: | |
(1) |
Represents the increase in 2022 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 the increase in revenues from events that staged in the second quarter of 2022 but were also postponed and staged in the second half of 2021 due to COVID-19. |
Schedule 2
UNAUDITED RECONCILIATION OF REVENUES TO DISAGGREGATED REVENUES
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
|
(dollars in millions) (unaudited) |
|
|||||||||||||
|
|
$ |
50.5 |
|
|
$ |
2.0 |
|
|
$ |
129.1 |
|
|
$ |
5.6 |
|
Other Events |
|
|
9.3 |
|
|
|
1.9 |
|
|
|
18.4 |
|
|
|
3.9 |
|
Subscription software and services |
|
|
4.3 |
|
|
|
3.4 |
|
|
|
8.5 |
|
|
|
5.7 |
|
Other marketing services |
|
|
7.3 |
|
|
|
7.7 |
|
|
|
13.9 |
|
|
|
12.7 |
|
Total Revenues |
|
$ |
71.4 |
|
|
$ |
15.0 |
|
|
$ |
169.9 |
|
|
$ |
27.9 |
|
Schedule 3
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
|
|
Three Months
Ended |
|
|
Six Months Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
|
(dollars in millions) (unaudited) |
|
|||||||||||||
Net (loss) income |
|
$ |
(0.7 |
) |
|
$ |
(46.5 |
) |
|
$ |
15.4 |
|
|
$ |
(61.8 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
4.6 |
|
|
|
4.1 |
|
|
|
8.5 |
|
|
|
8.1 |
|
Provision for income taxes |
|
|
2.9 |
|
|
|
10.9 |
|
|
|
2.1 |
|
|
|
2.6 |
|
|
|
|
— |
|
|
|
— |
|
|
|
6.3 |
|
|
|
— |
|
Intangible asset impairment charge(2) |
|
|
— |
|
|
|
— |
|
|
|
1.6 |
|
|
|
— |
|
Depreciation and amortization |
|
|
14.0 |
|
|
|
12.1 |
|
|
|
28.3 |
|
|
|
23.9 |
|
Stock-based compensation |
|
|
1.6 |
|
|
|
2.8 |
|
|
|
3.7 |
|
|
|
5.8 |
|
Deferred revenue adjustment |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.4 |
|
|
|
1.1 |
|
Other items(3) |
|
|
(7.0 |
) |
|
|
2.8 |
|
|
|
(1.4 |
) |
|
|
4.0 |
|
Scheduling adjustments |
|
|
— |
|
|
|
- |
|
|
|
— |
|
|
|
0.2 |
|
Adjusted EBITDA |
|
$ |
15.6 |
|
|
$ |
(13.6 |
) |
|
$ |
64.9 |
|
|
|
(16.1 |
) |
Deduct: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Event cancellation insurance proceeds |
|
|
8.1 |
|
|
|
2.3 |
|
|
|
31.8 |
|
|
|
16.4 |
|
Adjusted EBITDA excluding event cancellation insurance proceeds |
|
$ |
7.5 |
|
|
$ |
(15.9 |
) |
|
$ |
33.1 |
|
|
$ |
(32.5 |
) |
| Notes: | |
(1) |
For the six months ended |
(2) |
Intangible asset impairment charges for the three months ended |
(3) |
Other items for the three months ended |
Schedule 4
UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
|
|
Three Months
Ended |
|
|
Six Months
Ended |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
|
(dollars in millions) (unaudited) |
|
|
|
|
|
|
|
|
|
|||||
Net Cash Provided by Operating Activities |
|
$ |
12.2 |
|
|
$ |
25.1 |
|
|
$ |
45.2 |
|
|
$ |
26.7 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
1.7 |
|
|
|
1.3 |
|
|
|
4.9 |
|
|
|
2.3 |
|
Free Cash Flow |
|
$ |
10.5 |
|
|
$ |
23.8 |
|
|
$ |
40.3 |
|
|
$ |
24.4 |
|
Schedule 5
UNAUDITED RECONCILIATION OF REPORTABLE SEGMENTS RESULTS TO INCOME (LOSS) BEFORE TAXES
|
|
Three Months
Ended |
|
|
Six Months
Ended |
||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
||||
|
|
(dollars in millions) (unaudited) |
|
|
|||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
19.7 |
|
|
$ |
3.8 |
|
|
$ |
76.4 |
|
|
$ |
9.5 |
|
|
Design, Creative, and Technology |
|
|
47.6 |
|
|
|
8.3 |
|
|
|
85.1 |
|
|
|
13.2 |
|
|
All Other |
|
|
4.1 |
|
|
|
2.9 |
|
|
|
8.4 |
|
|
|
5.2 |
|
|
Total revenues |
|
$ |
71.4 |
|
|
$ |
15.0 |
|
|
$ |
169.9 |
|
|
$ |
27.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
4.5 |
|
|
$ |
— |
|
|
$ |
5.6 |
|
|
$ |
6.7 |
|
|
Design, Creative, and Technology |
|
|
3.4 |
|
|
|
2.3 |
|
|
|
25.3 |
|
|
|
9.2 |
|
|
All Other |
|
|
0.2 |
|
|
|
— |
|
|
|
0.9 |
|
|
|
0.5 |
|
|
Total other income, net |
|
$ |
8.1 |
|
|
$ |
2.3 |
|
|
$ |
31.8 |
|
|
$ |
16.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
10.0 |
|
|
$ |
(2.5 |
) |
|
$ |
41.8 |
|
|
$ |
2.7 |
|
|
Design, Creative, and Technology |
|
|
21.9 |
|
|
|
0.8 |
|
|
|
54.5 |
|
|
|
3.0 |
|
|
All Other |
|
|
(2.7 |
) |
|
|
(0.3 |
) |
|
|
(5.0 |
) |
|
|
0.3 |
|
|
Subtotal Adjusted EBITDA |
|
$ |
29.2 |
|
|
$ |
(2.0 |
) |
|
$ |
91.3 |
|
|
$ |
6.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General corporate and other expenses |
|
|
(13.6 |
) |
|
|
(11.6 |
) |
|
|
(26.4 |
) |
|
|
(22.3 |
) |
|
Interest expense |
|
|
(4.6 |
) |
|
|
(4.1 |
) |
|
|
(8.5 |
) |
|
|
(8.1 |
) |
|
|
|
|
— |
|
|
|
— |
|
|
|
(6.3 |
) |
|
|
— |
|
|
Intangible asset impairment charges |
|
|
— |
|
|
|
— |
|
|
|
(1.6 |
) |
|
|
— |
|
|
Depreciation and amortization expense |
|
|
(14.0 |
) |
|
|
(12.1 |
) |
|
|
(28.3 |
) |
|
|
(23.9 |
) |
|
Stock-based compensation expense |
|
|
(1.6 |
) |
|
|
(2.8 |
) |
|
|
(3.7 |
) |
|
|
(5.8 |
) |
|
Deferred revenue adjustment |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
|
Other items |
|
|
7.0 |
|
|
|
(2.8 |
) |
|
|
1.4 |
|
|
|
(4.0 |
) |
|
Income (Loss) before taxes |
|
$ |
2.2 |
|
|
$ |
(35.6 |
) |
|
$ |
17.5 |
|
|
$ |
(59.2 |
) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005432/en/
Investor Relations
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Source:
FAQ
What were Emerald's second quarter 2022 revenues?
How much did Emerald settle its insurance litigation for?
What is the expected total insurance recovery for Emerald?
What was Emerald's Adjusted EBITDA for Q2 2022?
What is the stock symbol for Emerald Holding?
