Revenue Growth of 16% Year-over-Year
Emerald Holding, Inc. (NYSE: EEX) (“Emerald” or the “Company”),
America's largest producer of trade shows and their associated
conferences, content and commerce, today reported financial results
for the third quarter ended September 30, 2023.
Financial Highlights
- Revenues of $72.5 million for the third quarter 2023, an
increase of $10.1 million, or 16.2% over Q3 2022, primarily due to
growth in events that staged in both Q3 2023 and Q3 2022, new
launches and acquisitions.
- Organic Revenues, a non-GAAP measure, which takes into account
the impact of acquisitions and scheduling adjustments, of $68.5
million for the third quarter 2023, an increase of $12.4 million,
or 22.1%, from $56.1 million for the third quarter 2022 (Refer to
Schedule 1 for a reconciliation to revenues, the most directly
comparable GAAP measure)
- Net income of $10.7 million for the third quarter 2023,
compared to net income of $93.0 million for the third quarter
2022
- Adjusted EBITDA, a non-GAAP measure, of $10.8 million for the
third quarter of 2023, compared to $149.7 million for the third
quarter 2022; Adjusted EBITDA excluding insurance proceeds, a
non-GAAP measure, of $8.0 million for the third quarter 2023,
compared to ($1.3) million for the third quarter 2022 (Refer to
Schedule 3 for a reconciliation to net (loss) income, the most
directly comparable GAAP measure)
- $200.3 million in cash at quarter end and full availability of
its $110.0 million revolving credit facility
- The Company is adjusting its full year 2023 guidance and now
expects to generate revenue in the range of $385 million - $395
million and Adjusted EBITDA in the range of $95 million - $100
million, due to some softness in its content business. The
Company’s core trade show segment, which comprises the bulk of its
operations, continues to experience strong performance
- Emerald’s Board of Directors approved an extension and
expansion of the Company’s share repurchase program which allows
for the repurchase of $25.0 million of the Company’s common stock
through December 31, 2024
Operational Highlights
- Company’s core trade show business is strong as the post-COVID
recovery cycle continues to drive growth in exhibitor and attendee
counts
- Successfully launched the first edition of Cocina Sabrosa, a
trade show focused on the Latin food and beverage industry, in
September 2023
Hervé Sedky, Emerald’s President and Chief Executive Officer,
said, “We are very pleased with the continued double-digit growth
we’re seeing in our live events business. Trade shows remain a
durable and high-return part of our customers’ marketing budgets,
providing exhibitors with an unparalleled opportunity to access a
large number of quality buyers at their industry’s must-attend
event. Our focus on delivering increasing value to customers has
translated to higher re-bookings along with sustained strength in
pricing - trends which are reflected in our sales pacing data as we
continue to book reservations for shows up to a year in advance.
The performance of our content business was somewhat muted in the
quarter, driven by cautious ad spending trends within the
technology sector, where we have broad exposure. Nevertheless, we
expect content to be a positive contributor to our results over
time, offering not only opportunities for profitable growth but
also synergies with our broader portfolio as we leverage the data
and marketing resources of our media assets to grow our shows.”
David Doft, Emerald’s Chief Financial Officer, added, “Revenue
and profitability trends in our core trade show business remain
strong, as customers continue to value the high return on
investment of live events. Our strong performance drove
year-to-date revenue growth of 21% year-over-year, while Adjusted
EBITDA increased over 85% versus the prior year. Importantly, we
believe that 2024 sales pacing indicates that we can sustain
double-digit top-line growth into next year with strong operating
leverage, a testament to the strength and durability of our
business model and the importance of our brands in their respective
end markets. In our content business, reduced ad spend in the tech
sector put modest downward pressure on our top line and as a
result, we anticipate our FY 2023 revenue guidance will now be in
the range of $385 million to $395 million. Our core trade show
segment, which comprises the bulk of our operations, continues to
support a strong full year performance, with Emerald set to achieve
Adjusted EBITDA in the range of $95 million to $100 million in
2023. Our focus continues to be on maximizing value for our
customers, which ultimately leads to stronger, more sustainable
growth in per-share value for Emerald’s stockholders.”
Third Quarter 2023 Financial
Performance and Highlights
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
Change
% Change
2023
2022
Change
% Change
(unaudited, dollars in
millions, except percentages and per share data)
Revenues
$
72.5
$
62.4
$
10.1
16.2
%
$
281.3
$
232.3
$
49.0
21.1
%
Net income
$
10.7
$
93.0
$
(82.3
)
NM
$
9.7
$
108.4
$
(98.7
)
NM
Net cash provided by operating
activities
$
8.5
$
153.5
$
(145.0
)
(94.5
%)
$
24.7
$
198.7
$
(174.0
)
(87.6
%)
Diluted (loss) income per share
$
—
$
0.41
$
(0.41
)
NM
$
(0.33
)
$
0.40
$
(0.73
)
NM
Non-GAAP measures:
Adjusted EBITDA
$
10.8
$
149.7
$
(138.9
)
(92.8
%)
$
61.9
$
214.5
$
(152.6
)
(71.1
%)
Adjusted EBITDA excluding event
cancellation insurance proceeds
$
8.0
$
(1.3
)
$
9.3
NM
$
59.1
$
31.7
$
27.4
86.4
%
Free Cash Flow
$
5.5
$
150.9
$
(145.4
)
(96.4
%)
$
15.3
$
191.2
$
(175.9
)
(92.0
%)
Free cash flow excluding event
cancellation insurance proceeds, net
$
2.7
$
(0.1
)
$
2.8
NM
$
12.5
$
8.4
$
4.1
48.8
%
- Third quarter 2023 revenues were $72.5 million, an increase of
$10.1 million or 16.2% versus the third quarter 2022, driven
primarily by organic revenue growth of $12.4 million as well as
$4.0 million in revenue from acquisitions. This growth was offset
by scheduling adjustments of $5.1 million and prior year
discontinued event revenue of $1.2 million. The third quarter of
2023 benefited from $2.8 million of insurance proceeds related to
events cancelled or otherwise impacted by COVID-19 in prior
periods.
- Third quarter 2023 Organic Revenues were $68.5 million, an
increase of $12.4 million or 22.1% versus the third quarter 2022,
due primarily to a $8.6 million increase in revenues from events
that traded in both periods, $3.2 million from newly launched
events and $0.9 million from increased subscription software
revenues.
- Third quarter 2023 net income was $10.7 million, compared to
net income of $93.0 million for the third quarter 2022 principally
as a result of lower event cancellation insurance proceeds and
higher interest expense.
- Third quarter 2023 Adjusted EBITDA was $10.8 million, compared
to $149.7 million for the third quarter 2022. Excluding event
cancellation insurance proceeds, third quarter 2023 Adjusted EBITDA
was $8.0 million, compared to Adjusted EBITDA ex-insurance of
($1.3) million for the third quarter 2022.
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) income (discussed
in the second paragraph of this section), the most directly
comparable GAAP measure.
Cash Flow
- Third quarter 2023 net cash provided by operating activities
was $8.5 million, compared to $153.5 million in the third quarter
2022.
- Third quarter 2023 capital expenditures were $3.0 million,
compared to $2.6 million in the third quarter 2022.
- Third quarter 2023 Free Cash Flow excluding event cancellation
insurance proceeds, net, which the Company defines as net cash
provided by operating activities less capital expenditures, event
cancellation insurance proceeds and taxes paid on event
cancellation insurance proceeds, was $2.7 million, compared to
($0.1) million in the third quarter 2022. The calculation of third
quarter 2023 Free Cash Flow excluding event cancellation insurance
proceeds, net, includes non-recurring acquisition related
transaction costs of $0.9 million, acquisition integration,
restructuring-related transition costs of $1.4 million, and
non-recurring legal, audit and consulting fees of $0.8 million. The
calculation of third quarter 2022 Free Cash Flow excluding event
cancellation insurance proceeds, net, includes insurance settlement
expenses of $7.0 million, contingent consideration paid in excess
of the original estimate of $2.1 million, acquisition related
transaction costs of $0.6 million, integration-related transition
costs of $1.6 million, and non-recurring legal and consulting fees
of $0.8 million. The total of these items is $3.1 million and $12.1
million for the quarters ended September 30, 2023 and 2022,
respectively.
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.
Emerald Extends and Expands Share
Repurchase Program Emerald’s Board of Directors approved
an extension and expansion of the Company’s share repurchase
program that allows for the repurchase of $25.0 million of our
common stock through December 31, 2024. Since the beginning of
2022, the Company has bought back 7.9 million shares of common
stock. Prior to this expansion, Emerald had $3.0 million remaining
available under its prior repurchase authorization.
Conference Call Webcast
Details As previously announced, the Company’s
leadership will hold a conference call to discuss its third quarter
2023 results at 8:30 am EDT on Monday, November 6, 2023.
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 13742126. The replay will be available
until 11:59 pm (Eastern Time) on November 15, 2023.
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’s
talented and experienced team grows our customers’ businesses 365
days a year through connections, content, and commerce. We expand
connections that drive new business opportunities, product
discovery, and relationships with over 140 annual events,
matchmaking, and lead-gen services. We create content to ensure
that our customers are on the cutting edge of their industries and
are continually developing their skills. And we power commerce
through efficient year-round buying and selling. We do all this by
seamlessly integrating in-person and digital platforms and
channels. Emerald is immersed in the industries we serve and
committed to supporting the communities in which we operate. As
true partners, we create experiences that inspire, amaze, and
deliver breakthrough results. For more:
http://www.emeraldx.com/.
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 the
United States of America (“GAAP”). A reconciliation of non-GAAP
financial measures used in this press release to their nearest
comparable GAAP financial measures is included in the schedules
attached hereto.
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 and (iii) material show scheduling adjustments. 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 (loss) 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, and (vii) 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 2023 and 2022
Adjusted EBITDA to net loss, 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 2023 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.
We have also presented Free Cash Flow excluding event
cancellation insurance proceeds, net in order to illustrate the
amount of Free Cash Flow from continuing operations.
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 ability to return
our business to pre-COVID levels; our guidance with respect to
estimated revenues and Adjusted EBITDA; our ability or inability to
obtain insurance coverage relating to event cancellations or
interruptions; and our ability to successfully identify and acquire
acquisition targets; our expectations arising from the ongoing
impact of COVID-19 on our business; and how we 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.
Emerald Holding, Inc. 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 September
30, 2023
Three Months Ended September
30, 2022
Nine Months Ended September
30, 2023
Nine Months Ended September
30, 2022
Revenues
$
72.5
$
62.4
$
281.3
$
232.3
Other income, net
2.8
151.0
2.8
182.8
Cost of revenues
25.9
22.7
101.9
83.3
Selling, general and administrative
expense
41.6
48.7
132.2
127.6
Depreciation and amortization expense
8.8
14.7
35.2
43.0
Goodwill impairment charge
—
—
—
6.3
Intangible asset impairment charge
—
—
—
1.6
Operating (loss) income
(1.0
)
127.3
14.8
153.3
Interest expense
12.1
6.8
31.5
15.5
Interest income
1.6
0.8
5.0
1.1
Loss on extinguishment of debt
—
—
2.3
—
Other expense
0.1
0.1
0.3
0.2
(Loss) income before income taxes
(11.6
)
121.2
(14.3
)
138.7
(Benefit from) provision for income
taxes
(22.3
)
28.2
(24.0
)
30.3
Net income and comprehensive income
attributable to Emerald Holding, Inc.
$
10.7
$
93.0
$
9.7
$
108.4
Accretion to redemption value of
redeemable convertible preferred stock
(10.7
)
(9.9
)
(31.2
)
(28.7
)
Participation rights on if-converted
basis
—
(54.7
)
—
(51.9
)
Net (loss) income and comprehensive (loss)
income attributable to Emerald Holding, Inc. common
stockholders
$
(0.0
)
$
28.4
$
(21.5
)
$
27.8
Basic (loss) income per share
—
0.42
(0.33
)
0.40
Diluted (loss) income per share
—
0.41
(0.33
)
0.40
Basic weighted average common shares
outstanding
63,586
68,433
64,317
69,479
Diluted weighted average common shares
outstanding
63,586
68,643
64,317
69,588
Emerald Holding, Inc. Condensed
Consolidated Balance Sheets (dollars in millions, share data
in thousands, except par value)
September 30, 2023
December 31, 2022
(unaudited)
Assets
Current assets
Cash and cash equivalents
$
200.3
$
239.1
Trade and other receivables, net of
allowances of $1.6 million and $1.5 million, as of September 30,
2023 and December 31, 2022, respectively
78.6
74.9
Prepaid expenses and other current
assets
49.4
17.8
Total current assets
328.3
331.8
Noncurrent assets
Property and equipment, net
1.7
2.2
Intangible assets, net
182.7
204.8
Goodwill, net
553.9
545.5
Right-of-use assets
10.6
10.6
Other noncurrent assets
3.8
3.5
Total assets
$
1,081.0
$
1,098.4
Liabilities, Redeemable Convertible
Preferred Stock and Stockholders’ Deficit
Current liabilities
Accounts payable and other current
liabilities
$
46.2
$
58.1
Income taxes payable
—
1.2
Cancelled event liabilities
0.7
3.3
Deferred revenues
175.8
151.2
Contingent consideration
0.3
3.5
Right-of-use liabilities, current
portion
4.3
4.9
Term loan, current portion
4.2
—
Total current liabilities
231.5
222.2
Noncurrent liabilities
Term loan, net of discount and deferred
financing fees
398.8
413.9
Deferred tax liabilities, net
2.4
1.8
Right-of-use liabilities, noncurrent
portion
9.9
10.4
Other noncurrent liabilities
9.2
10.8
Total liabilities
651.8
659.1
Commitments and contingencies
Redeemable convertible preferred stock
7% Series A Redeemable Convertible
Participating Preferred Stock, $0.01 par value; authorized shares
at September 30, 2023 and December 31, 2022: 80,000; 71,403 and
71,417 shares issued and outstanding; aggregate liquidation
preference of $492.6 million and $475.9 million at September 30,
2023 and December 31, 2022, respectively
494.9
472.4
Stockholders’ deficit
Common stock, $0.01 par value; authorized
shares at September 30, 2023 and December 31, 2022: 800,000; 62,890
and 67,588 shares issued and outstanding at September 30, 2023 and
December 31, 2022, respectively
0.6
0.7
Additional paid-in capital
568.1
610.3
Accumulated deficit
(634.4
)
(644.1
)
Total stockholders’ deficit
(65.7
)
(33.1
)
Total liabilities, redeemable convertible
preferred stock and stockholders’ deficit
$
1,081.0
$
1,098.4
Schedule 1
Emerald Holding, Inc. UNAUDITED RECONCILIATION OF
REVENUES TO ORGANIC REVENUES
Three Months Ended September
30,
Change
Nine Months Ended September
30,
Change
2023
2022
$
%
2023
2022
$
%
(dollars in millions)
(unaudited)
Revenues
$
72.5
$
62.4
$
10.1
16.2
%
$
281.3
$
232.3
$
49.0
21.1
%
Add (deduct):
Acquisition revenues
(4.0
)
(10.8
)
Discontinued events
(1.2
)
(2.3
)
Scheduling adjustments(1)
—
(5.1
)
—
2.0
Organic revenues
$
68.5
$
56.1
$
12.4
22.1
%
$
270.5
$
232.0
$
38.5
16.6
%
Notes:
- For the three months ended September 30, 2023, represents
revenues from four events that staged in the third quarter of
fiscal 2022, but were scheduled to stage in a different quarter in
fiscal 2023, offset by revenues from one event that staged in the
third quarter of fiscal 2023, but was scheduled to stage in a
different quarter in fiscal 2022. For the nine months ended
September 30, 2023, represents revenues from four events that
staged in the first nine months of fiscal 2022, but are scheduled
to stage in the fourth quarter of fiscal year 2023, offset by
revenues from three events that staged in the first nine months of
fiscal 2023, but staged in the fourth quarter of fiscal 2022.
Schedule 2
Emerald Holding, Inc. UNAUDITED RECONCILIATION OF
REVENUES TO DISAGGREGATED REVENUES
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(dollars in millions)
(unaudited)
Trade shows
$
48.6
$
37.6
$
200.8
$
166.7
Other events
12.7
12.2
46.5
30.6
Subscription software and services
5.4
4.6
15.9
13.1
Other marketing services
5.8
8.0
18.1
21.9
Total Revenues
$
72.5
$
62.4
$
281.3
$
232.3
Schedule 3
Emerald Holding, Inc. UNAUDITED RECONCILIATION OF NET
(LOSS) INCOME TO ADJUSTED EBITDA
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(dollars in millions)
(unaudited)
Net income
$
10.7
$
93.0
$
9.7
$
108.4
Add (deduct):
Interest expense, net
10.5
6.0
26.5
14.4
Loss on extinguishment of debt
—
—
2.3
—
(Benefit from) provision for income
taxes
(22.3
)
28.2
(24.0
)
30.3
Goodwill impairment charge(1)
—
—
—
6.3
Intangible asset impairment charge(2)
—
—
—
1.6
Depreciation and amortization
8.8
14.7
35.2
43.0
Stock-based compensation
1.9
1.3
5.9
5.0
Deferred revenue adjustment
—
0.2
—
0.6
Other items(3)
1.2
6.3
6.3
4.9
Adjusted EBITDA
$
10.8
$
149.7
$
61.9
$
214.5
Deduct:
Event cancellation insurance proceeds
2.8
151.0
2.8
182.8
Adjusted EBITDA excluding event
cancellation insurance proceeds
$
8.0
$
(1.3
)
$
59.1
$
31.7
Notes:
- For the nine months ended September 30, 2022, represents
non-cash charges of $6.3 million for goodwill in connection with
the Company’s interim testing of goodwill for impairment resulting
from the change in operating segments and reporting units that
occurred in the first quarter of 2022.
- Intangible asset impairment charges for the nine months ended
September 30, 2022 represent non-cash charges of $1.6 million for
certain indefinite-lived intangible assets in connection with the
Company’s interim testing of intangibles for impairment.
- Other items for the three months ended September 30, 2023
included: (i) $0.9 million in acquisition-related transaction
costs; (ii) $1.4 million in acquisition integration and
restructuring-related transition costs, including one-time
severance expense of $0.6 million; (iii) $0.8 million in
non-recurring legal, audit and consulting fees and (iv) $1.9
million in gains related to the remeasurement of contingent
consideration. Other items for the three months ended September 30,
2022 included: (i) $3.7 million in gains related to the
remeasurement of contingent consideration; (ii) $0.8 million in
non-recurring legal, audit and consulting fees; (iii) $0.6 million
in acquisition-related transaction costs; (iv) $1.6 million in
transition expenses and (v) $7.0 million in insurance settlement
related expenses. Other items for the nine months ended September
30, 2023 included: (i) $1.8 million in acquisition-related
transaction costs; (ii) $4.0 million in acquisition integration and
restructuring-related transition costs, including one-time
severance expense of $1.3 million; (iii) $3.0 million in
non-recurring legal, audit and consulting fees and (iv) $2.5
million in gains related to the remeasurement of contingent
consideration. Other items for the nine months ended September 30,
2022 included: (i) $9.5 million in gains related to the
remeasurement of contingent consideration; (ii) $2.0 million in
non-recurring legal, audit and consulting fees; (iii) $3.4 million
in acquisition-related transaction costs; (iv) $1.9 million in
transition expenses and (v) $7.0 million in insurance settlement
related expenses.
Schedule 4
Emerald Holding, Inc. UNAUDITED RECONCILIATION OF NET
CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(dollars in millions)
(unaudited)
Net Cash Provided by Operating
Activities
$
8.5
$
153.5
$
24.7
$
198.7
Less:
Capital expenditures
3.0
2.6
9.4
7.5
Free Cash Flow
$
5.5
$
150.9
$
15.3
$
191.2
Event cancellation insurance proceeds
(2.8
)
(151.0
)
(2.8
)
(182.8
)
Free cash flow excluding event
cancellation insurance proceeds, net
$
2.7
$
(0.1
)
$
12.5
$
8.4
Schedule 5
Emerald Holding, Inc. UNAUDITED RECONCILIATION OF
REPORTABLE SEGMENTS RESULTS TO (LOSS) INCOME BEFORE TAXES
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(dollars in millions)
(unaudited)
Revenues
Commerce
$
44.6
$
33.9
$
135.8
$
109.9
Design, Creative, and Technology
19.3
23.0
125.4
108.1
All Other
8.6
5.5
20.1
14.3
Total revenues
$
72.5
$
62.4
$
281.3
$
232.3
Other income, net
Commerce
$
2.8
$
2.4
$
2.8
$
8.0
Design, Creative, and Technology
—
—
—
25.3
All Other
—
—
—
0.9
Total other income, net
$
2.8
$
2.4
$
2.8
$
34.2
Adjusted EBITDA
Commerce
$
27.0
$
16.0
$
73.1
$
57.8
Design, Creative, and Technology
2.7
2.5
38.6
57.0
All Other
(3.2
)
(3.1
)
(5.1
)
(8.3
)
Subtotal Adjusted EBITDA
$
26.5
$
15.4
$
106.6
$
106.5
General corporate and other expenses
(15.7
)
(14.3
)
(44.7
)
(40.6
)
Other income, net
—
148.6
—
148.6
Interest expense, net
(10.5
)
(6.0
)
(26.5
)
(14.4
)
Loss on extinguishment of debt
—
—
(2.3
)
—
Goodwill impairment charges
—
—
—
(6.3
)
Intangible asset impairment charges
—
—
—
(1.6
)
Depreciation and amortization expense
(8.8
)
(14.7
)
(35.2
)
(43.0
)
Stock-based compensation expense
(1.9
)
(1.3
)
(5.9
)
(5.0
)
Deferred revenue adjustment
—
(0.2
)
—
(0.6
)
Other items
(1.2
)
(6.3
)
(6.3
)
(4.9
)
(Loss) income before taxes
$
(11.6
)
$
121.2
$
(14.3
)
$
138.7
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106327011/en/
Emerald Holding, Inc. Investor Relations
investor.relations@emeraldx.com 1-866-339-4688 (866EEXINVT)
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