Emerald Reports Third Quarter 2021 Financial Results
Emerald Holding, Inc. (NYSE:EEX) reported a net loss of $9.0 million for Q3 2021, a significant improvement from $15.3 million in Q3 2020. Revenues surged to $76.5 million, up 800% year-over-year, benefiting from 32 in-person events serving over 92,000 attendees. Adjusted EBITDA stood at $9.4 million, a turnaround from a negative $3.2 million. The company ended the quarter with $303.6 million in cash and expanded its share repurchase program to $20 million. Insurance claims related to event cancellations totaled $167 million, with $184.3 million received.
- Revenue increased by 800% to $76.5 million compared to Q3 2020.
- Adjusted EBITDA improved to $9.4 million from negative $3.2 million year-over-year.
- Cash balance increased slightly, ending the quarter at $303.6 million.
- Share repurchase program expanded to allow for $20 million in buybacks.
- Net loss of $9.0 million, although improved from previous year.
- Organic revenues declined by 11.7% compared to Q3 2020.
Highlights
- During the third quarter, Emerald successfully traded 32 in-person trade shows, conferences and other events, serving more than 92,000 attendees and 5,200 exhibiting companies
-
Net loss of
$9.0 million $15.3 million -
Adjusted EBITDA, a non-GAAP measure, of
$9.4 million $3.2 million -
Cash generation increased as bookings for returning events accelerate
-
Emerald ended the third quarter with
$303.6 million $302.8 million
-
Emerald ended the third quarter with
-
The Company bought back 1.2 million shares for an average price of
$4.69 -
Emerald’s Board of Directors approved an extension and expansion of the Company’s share repurchase program which allows for the repurchase of
$20.0 million December 31, 2022 -
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 events, in addition to claims for its cancelled and impacted 2021 events
-
To date, Emerald has submitted
$167 million $76.2 million -
Insurance claim payments received to date total
$184.3 million $89.1 million $35.4 million $59.8 million
-
To date, Emerald has submitted
Third Quarter 2021 Financial Performance
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Three Months Ended
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Nine Months 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 |
|
$ |
76.5 |
|
|
$ |
8.5 |
|
|
$ |
68.0 |
|
|
|
800.0 |
% |
$ |
104.4 |
|
|
$ |
115.2 |
|
|
$ |
(10.8 |
) |
|
|
(9.4 |
%) |
Net loss |
|
$ |
(9.0 |
) |
|
$ |
(15.3 |
) |
|
$ |
6.3 |
|
|
|
41.2 |
% |
$ |
(70.8 |
) |
|
$ |
(599.7 |
) |
|
$ |
528.9 |
|
|
|
88.2 |
% |
Net cash provided by (used in)
|
|
$ |
9.6 |
|
|
$ |
(20.1 |
) |
|
$ |
29.7 |
|
|
NM |
|
$ |
36.3 |
|
|
$ |
(42.7 |
) |
|
$ |
79.0 |
|
|
NM |
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||
Diluted loss per share |
|
$ |
(0.25 |
) |
|
$ |
(0.31 |
) |
|
$ |
0.06 |
|
|
|
19.4 |
% |
$ |
(1.35 |
) |
|
$ |
(8.49 |
) |
|
$ |
7.14 |
|
|
|
84.1 |
% |
|
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Non-GAAP measures: |
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Adjusted EBITDA |
|
$ |
9.4 |
|
|
$ |
(3.2 |
) |
|
$ |
12.6 |
|
|
NM |
|
$ |
(6.9 |
) |
|
$ |
53.6 |
|
|
$ |
(60.5 |
) |
|
NM |
|
||
Free Cash Flow |
|
$ |
7.7 |
|
|
$ |
(20.9 |
) |
|
$ |
28.6 |
|
|
NM |
|
$ |
32.1 |
|
|
$ |
(45.8 |
) |
|
$ |
77.9 |
|
|
NM |
|
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COVID-19 Operational and Expected Insurance Recovery Update
Emerald remains focused on the health and safety of its employees and customers. We recently implemented a phased return-to-office practice for our employees, and we 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 130 events. Of the 130 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, these causes include event cancellation caused by the outbreak of communicable diseases, including COVID-19. Emerald’s policy provides 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 a calendar year. The aggregate limit under this event cancellation insurance policy is approximately
In addition to this primary policy, Emerald maintains a separate event cancellation insurance policy for the Surf Expo Summer 2020 and Surf Expo Winter 2021 shows, with respective coverage limits of
The Company has submitted insurance claims for each of its 2020 cancelled shows. For events previously scheduled to take place in 2020, Emerald has submitted approximately
Emerald is actively pursuing collection of the remaining unpaid amounts of filed insurance claims for its cancelled 2020 events, in addition to claims for its cancelled 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 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 third quarter of 2021, Emerald reported revenues of
The Company recognized a net loss of
For the third quarter of 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 2 for a reconciliation of Adjusted EBITDA 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 (used in) operating activities less capital expenditures, was an inflow of
Emerald ended the third quarter of 2021 with
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.
Emerald Extends and Expands Share Repurchase Program
Emerald’s Board of Directors approved an extension and expansion of our share repurchase program which allows for the repurchase of
Restatement of Historical Financial Information
On
Conference Call Webcast Details
As previously announced, the Company’s leadership will hold a conference call to discuss its third quarter 2021 results at
The conference call can be accessed by dialing 1-877-407-9039 (domestic) or 1-201-689-8470 (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 13724051. 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
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.
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, and (viii) other items that management believes are not part of our core operations.
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 ability to recover insurance proceeds under current policies; the timing of any such recoveries and our ability to obtain similar event cancellation insurance in the future; 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 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 earnings per share data) |
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Three Months
|
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Three Months
|
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Nine Months
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|
Nine Months
|
|
||||
Revenues |
|
$ |
76.5 |
|
|
$ |
8.5 |
|
|
$ |
104.4 |
|
|
$ |
115.2 |
|
Other income |
|
|
1.1 |
|
|
|
16.1 |
|
|
|
17.5 |
|
|
|
64.3 |
|
Cost of revenues |
|
|
33.7 |
|
|
|
4.3 |
|
|
|
41.3 |
|
|
|
47.1 |
|
Selling, general and administrative expense |
|
|
38.8 |
|
|
|
25.6 |
|
|
|
102.7 |
|
|
|
88.8 |
|
Depreciation and amortization expense |
|
|
12.2 |
|
|
|
12.2 |
|
|
|
36.1 |
|
|
|
37.2 |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
588.2 |
|
Intangible asset impairment charges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
59.4 |
|
Operating income (loss) |
|
|
(7.1 |
) |
|
|
(17.5 |
) |
|
|
(58.2 |
) |
|
|
(641.2 |
) |
Interest expense, net |
|
|
3.9 |
|
|
|
4.2 |
|
|
|
12.0 |
|
|
|
16.5 |
|
Loss before income taxes |
|
|
(11.0 |
) |
|
|
(21.7 |
) |
|
|
(70.2 |
) |
|
|
(657.7 |
) |
(Benefit from) provision for income taxes |
|
|
(2.0 |
) |
|
|
(6.4 |
) |
|
|
0.6 |
|
|
|
(58.0 |
) |
Net loss and comprehensive loss attributable to Emerald
|
|
$ |
(9.0 |
) |
|
$ |
(15.3 |
) |
|
$ |
(70.8 |
) |
|
$ |
(599.7 |
) |
Accretion to redemption value of redeemable preferred stock |
|
|
(9.0 |
) |
|
|
(7.0 |
) |
|
|
(26.3 |
) |
|
|
(7.1 |
) |
Net loss and comprehensive loss attributable to Emerald
|
|
$ |
(18.0 |
) |
|
$ |
(22.3 |
) |
|
$ |
(97.1 |
) |
|
$ |
(606.8 |
) |
Basic loss per share |
|
$ |
(0.25 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.35 |
) |
|
$ |
(8.49 |
) |
Diluted loss per share |
|
$ |
(0.25 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.35 |
) |
|
$ |
(8.49 |
) |
Basic weighted average common shares outstanding |
|
|
71,033 |
|
|
|
71,484 |
|
|
|
71,719 |
|
|
|
71,437 |
|
Diluted weighted average common shares outstanding |
|
|
71,033 |
|
|
|
71,484 |
|
|
|
71,719 |
|
|
|
71,437 |
|
|
|
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
303.6 |
|
|
$ |
295.3 |
|
Trade and other receivables, net of allowances of |
|
|
38.9 |
|
|
|
30.7 |
|
Insurance receivables |
|
|
- |
|
|
|
17.8 |
|
Prepaid expenses |
|
|
9.2 |
|
|
|
8.5 |
|
Total current assets |
|
|
351.7 |
|
|
|
352.3 |
|
Noncurrent assets |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
3.8 |
|
|
|
3.9 |
|
Intangible assets, net |
|
|
248.0 |
|
|
|
275.0 |
|
|
|
|
407.9 |
|
|
|
404.3 |
|
Right-of-use assets |
|
|
16.3 |
|
|
|
16.0 |
|
Other noncurrent assets |
|
|
2.4 |
|
|
|
2.9 |
|
Total assets |
|
$ |
1,030.1 |
|
|
$ |
1,054.4 |
|
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and other current liabilities |
|
$ |
54.1 |
|
|
$ |
31.1 |
|
Cancelled event liabilities |
|
|
21.6 |
|
|
|
25.9 |
|
Deferred revenues |
|
|
83.0 |
|
|
|
48.6 |
|
Right-of-use liabilities, current portion |
|
|
4.5 |
|
|
|
4.3 |
|
Term loan, current portion |
|
|
5.7 |
|
|
|
5.7 |
|
Total current liabilities |
|
|
168.9 |
|
|
|
115.6 |
|
Noncurrent liabilities |
|
|
|
|
|
|
|
|
Term loan, net of discount and deferred financing fees |
|
|
512.0 |
|
|
|
515.3 |
|
Deferred tax liabilities, net |
|
|
2.3 |
|
|
|
1.9 |
|
Right-of-use liabilities |
|
|
14.0 |
|
|
|
13.4 |
|
Other noncurrent liabilities |
|
|
11.8 |
|
|
|
13.7 |
|
Total liabilities |
|
|
709.0 |
|
|
|
659.9 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Redeemable convertible preferred stock |
|
|
|
|
|
|
|
|
|
|
424.6 |
|
|
398.3 |
|
||
Stockholders’ deficit |
|
|
|
|
|
|
|
|
Common stock, |
|
|
0.7 |
|
|
|
0.7 |
|
Additional paid-in capital |
|
|
661.8 |
|
|
|
690.7 |
|
Accumulated deficit |
|
|
(766.0 |
) |
|
|
(695.2 |
) |
Total stockholders’ deficit |
|
|
(103.5 |
) |
|
|
(3.8 |
) |
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit |
|
$ |
1,030.1 |
|
|
$ |
1,054.4 |
|
Schedule 1 |
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UNAUDITED RECONCILIATION OF REVENUES TO ORGANIC REVENUES |
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Three Months
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|
Change |
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Nine Months
|
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|
Change |
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||||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||||||
|
|
(dollars in millions)
|
|
|||||||||||||||||||||||||||||
Revenues |
|
$ |
76.5 |
|
|
$ |
8.5 |
|
|
$ |
68.0 |
|
|
|
800.0 |
% |
|
$ |
104.4 |
|
|
$ |
115.2 |
|
|
$ |
(10.8 |
) |
|
|
(9.4 |
%) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition revenues |
|
|
(3.7 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
(9.3 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
Discontinued events |
|
|
- |
|
|
|
(2.1 |
) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
(4.8 |
) |
|
|
|
|
|
|
|
|
COVID-19 prior year
|
|
|
(60.7 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
(63.4 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
COVID-19 current year
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
(75.7 |
) |
|
|
|
|
|
|
|
|
COVID-19 postponements(3) |
|
|
- |
|
|
|
7.3 |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Organic revenues |
|
$ |
12.1 |
|
|
$ |
13.7 |
|
|
$ |
(1.6 |
) |
|
|
(11.7 |
%) |
|
$ |
31.7 |
|
|
$ |
34.7 |
|
|
$ |
(3.0 |
) |
|
|
(8.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Notes:
- 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.
- Represents reduction in revenues as a result of the cancellation of certain events in the first, second and third quarters of fiscal 2021 due to COVID-19, compared to all events that staged in the first nine months of 2020. The Company believes the financial impact, net of costs saved, will be partially offset by event cancellation insurance proceeds from pending claims.
- Represents revenues of certain events that staged in the first quarter of 2020 and were postponed to the third quarter of 2021 as a result of COVID-19.
Schedule 2 |
||||||||||||||||
|
||||||||||||||||
UNAUDITED RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months
|
|
|
Nine Months
|
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
|
(dollars in millions)
|
|
|||||||||||||
Net loss |
|
$ |
(9.0 |
) |
|
$ |
(15.3 |
) |
|
$ |
(70.8 |
) |
|
$ |
(599.7 |
) |
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
3.9 |
|
|
|
4.2 |
|
|
|
12.0 |
|
|
|
16.5 |
|
(Benefit from) income taxes |
|
|
(2.0 |
) |
|
|
(6.4 |
) |
|
|
0.6 |
|
|
|
(58.0 |
) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
588.2 |
|
Intangible asset impairment charges(2) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
59.4 |
|
Depreciation and amortization |
|
|
12.2 |
|
|
|
12.2 |
|
|
|
36.1 |
|
|
|
37.2 |
|
Stock-based compensation |
|
|
2.4 |
|
|
|
1.5 |
|
|
|
8.2 |
|
|
|
4.2 |
|
Deferred revenue adjustment |
|
|
0.3 |
|
|
|
- |
|
|
|
1.4 |
|
|
|
- |
|
Other items(3) |
|
|
1.6 |
|
|
|
0.6 |
|
|
|
5.6 |
|
|
|
5.8 |
|
Adjusted EBITDA |
|
$ |
9.4 |
|
|
$ |
(3.2 |
) |
|
$ |
(6.9 |
) |
|
$ |
53.6 |
|
Notes:
-
For the nine months ending
September 30, 2021 and 2020, represents non-cash charges of zero and$588.2 million -
Intangible asset impairment charges for the nine months ending
September 30, 2020 represent non-cash charges of$46.2 million $13.2 million -
Other items for the three months ending
September 30, 2021 included: (i)$1.1 million $0.4 million $0.1 million September 30, 2020 included: (i)$0.7 million $0.2 million $0.3 million September 30, 2021 included: (i)$2.6 million $2.2 million $0.4 million $0.4 million PlumRiver LLC , EDspaces and Sue Bryce Education acquisitions. Other items for the nine months endingSeptember 30, 2020 included: (i)$4.6 million $2.8 million $1.5 million $0.4 million $0.7 million
Schedule 3 |
||||||||||||||||
|
||||||||||||||||
UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE
|
||||||||||||||||
|
|
Three Months
|
|
|
Nine Months
|
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|||||
Net Cash Provided by (Used in)
|
|
$ |
9.6 |
|
|
$ |
(20.1 |
) |
|
$ |
36.3 |
|
|
$ |
(42.7 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
1.9 |
|
|
|
0.8 |
|
|
|
4.2 |
|
|
|
3.1 |
|
Free Cash Flow |
|
$ |
7.7 |
|
|
$ |
(20.9 |
) |
|
$ |
32.1 |
|
|
$ |
(45.8 |
) |
Schedule 4 |
|||||||||||||||||
|
|||||||||||||||||
UNAUDITED RECONCILIATION OF REPORTABLE SEGMENTS RESULTS TO LOSS BEFORE TAXES |
|||||||||||||||||
|
|
Three Months
|
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
||||
|
|
(dollars in millions)
|
|
|
|||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
40.9 |
|
|
$ |
1.7 |
|
|
$ |
50.5 |
|
|
$ |
52.7 |
|
|
Design and Technology |
|
|
22.8 |
|
|
|
5.0 |
|
|
|
30.5 |
|
|
|
45.7 |
|
|
All Other |
|
|
12.8 |
|
|
|
1.8 |
|
|
|
23.4 |
|
|
|
16.8 |
|
|
Total revenues |
|
$ |
76.5 |
|
|
$ |
8.5 |
|
|
$ |
104.4 |
|
|
$ |
115.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
1.0 |
|
|
$ |
10.7 |
|
|
$ |
8.3 |
|
|
$ |
45.3 |
|
|
Design and Technology |
|
|
- |
|
|
|
3.1 |
|
|
|
5.4 |
|
|
|
16.0 |
|
|
All Other |
|
|
0.1 |
|
|
|
2.3 |
|
|
|
3.8 |
|
|
|
3.0 |
|
|
Total other income |
|
$ |
1.1 |
|
|
$ |
16.1 |
|
|
$ |
17.5 |
|
|
$ |
64.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce |
|
$ |
19.1 |
|
|
$ |
6.0 |
|
|
$ |
21.9 |
|
|
$ |
55.2 |
|
|
Design and Technology |
|
|
3.1 |
|
|
|
1.4 |
|
|
|
4.0 |
|
|
|
24.0 |
|
|
All Other |
|
|
(1.3 |
) |
|
|
0.2 |
|
|
|
1.2 |
|
|
|
3.1 |
|
|
Subtotal Adjusted EBITDA |
|
$ |
20.9 |
|
|
$ |
7.6 |
|
|
$ |
27.1 |
|
|
$ |
82.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General corporate and other expenses |
|
|
(11.5 |
) |
|
|
(10.8 |
) |
|
|
(34.0 |
) |
|
|
(28.7 |
) |
|
Interest expense |
|
|
(3.9 |
) |
|
|
(4.2 |
) |
|
|
(12.0 |
) |
|
|
(16.5 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(588.2 |
) |
|
Intangible asset impairment charges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(59.4 |
) |
|
Depreciation and amortization expense |
|
|
(12.2 |
) |
|
|
(12.2 |
) |
|
|
(36.1 |
) |
|
|
(37.2 |
) |
|
Stock-based compensation expense |
|
|
(2.4 |
) |
|
|
(1.5 |
) |
|
|
(8.2 |
) |
|
|
(4.2 |
) |
|
Deferred revenue adjustment |
|
|
(0.3 |
) |
|
|
- |
|
|
|
(1.4 |
) |
|
|
- |
|
|
Other items |
|
|
(1.6 |
) |
|
|
(0.6 |
) |
|
|
(5.6 |
) |
|
|
(5.8 |
) |
|
Loss before taxes |
|
$ |
(11.0 |
) |
|
$ |
(21.7 |
) |
|
$ |
(70.2 |
) |
|
$ |
(657.7 |
) |
|
Schedule 5 |
||||||||||||||||
|
||||||||||||||||
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 events |
|
$ |
- |
|
|
$ |
17.5 |
|
|
$ |
- |
|
|
$ |
17.5 |
|
2021 events |
|
|
76.2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
76.2 |
|
|
$ |
17.5 |
|
|
$ |
|
|
|
|
17.5 |
|
Cumulative Total |
|
$ |
243.0 |
|
|
$ |
106.6 |
|
|
$ |
17.9 |
|
|
$ |
124.5 |
|
* Includes insurance claims accrued and received in subsequent period |
|
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005367/en/
Source:
FAQ
What are the Q3 2021 financial results for Emerald Holding, Inc. (EEX)?
How did Emerald's revenues perform in Q3 2021 compared to the previous year?
What was the cash position of Emerald Holding, Inc. (EEX) at the end of Q3 2021?
Did Emerald Holding, Inc. (EEX) expand its share repurchase program recently?
What impact did event cancellations have on Emerald's financial results?
