Emerald Holding(EEX) - 2021 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2021, were $76.5 million, a significant increase from $8.5 million for the same period in 2020, representing a growth of 800%[18] - The net loss for the three months ended September 30, 2021, was $9.0 million, compared to a net loss of $15.3 million for the same period in 2020, showing an improvement of 41.2%[18] - The company reported a basic loss per share of $0.25 for the three months ended September 30, 2021, an improvement from a loss of $0.31 per share in the same period of 2020[18] - The company recorded an operating loss of $7.1 million for the three months ended September 30, 2021, an improvement from an operating loss of $17.5 million in the same period of 2020[18] - Adjusted EBITDA for the three months ended September 30, 2021, was $20.9 million, compared to $7.6 million for the same period in 2020, indicating a substantial increase[185] Assets and Liabilities - Total current assets as of September 30, 2021, were $351.7 million, slightly down from $352.3 million as of December 31, 2020[15] - Total liabilities increased to $709.0 million as of September 30, 2021, compared to $659.9 million as of December 31, 2020, reflecting a rise of 7.4%[15] - The company’s total stockholders' equity (deficit) was $(103.5) million as of September 30, 2021, compared to $(3.8) million as of December 31, 2020[15] - The total assets as of September 30, 2021, were $1,030.1 million, a decrease from $1,054.4 million as of December 31, 2020[15] - Long-term debt as of September 30, 2021, was $512.0 million, slightly down from $515.3 million as of December 31, 2020[118] Cash Flow and Operating Activities - The company generated net proceeds of $382.7 million from the sale of its 7% Series A Convertible Participating Preferred Stock[53] - The net cash provided by operating activities for the nine months ended September 30, 2021, was $36.3 million[30] - The cash and cash equivalents at the end of the period were $303.6 million, compared to $326.7 million at the end of the same period in 2020[30] - The company had $521.0 million of borrowings outstanding under the Amended and Restated Term Loan Facility as of September 30, 2021[61] Acquisitions and Goodwill - The company acquired PlumRiver Technologies for a total purchase price of $46.4 million, which included an initial cash payment of $30.0 million and contingent consideration with an estimated fair value of $10.0 million[92] - The acquisition of Sue Bryce Education and The Portrait Masters was completed for a total estimated purchase price of $7.7 million, which included an initial cash payment of $6.9 million[94] - The company recorded goodwill of $3.4 million during the nine months ended September 30, 2021, reflecting future cash flow expectations for the acquired businesses[93] - The company experienced a significant goodwill impairment of $588.2 million during the nine months ended September 30, 2020[30] Stock and Equity - The company has 71,442,407 shares of 7% Series A Redeemable Convertible Participating Preferred Stock outstanding, convertible into 124,005,083 shares of common stock[170] - The Company authorized a $20.0 million share repurchase program in October 2020, with $8.6 million remaining available for repurchases as of September 30, 2021[150] - The Company repurchased 1,193,861 shares for $5.5 million and 2,122,964 shares for $10.7 million during the three and nine months ended September 30, 2021, respectively[150] Revenue Sources and Trends - Trade show revenues represented approximately 74% of total revenues for the three months ended September 30, 2021, compared to 0% for the same period in 2020[72] - The company generated revenues primarily from selling trade show exhibit space, with additional revenue streams from sponsorships, ancillary services, and digital commerce platforms[207] - Organic revenue growth is defined as the growth in revenue from one period to the next, adjusted for acquisitions, discontinued events, and event cancellations, providing a clearer view of underlying revenue trends[209] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2021, was 17.5%, compared to an effective tax rate of 29.5% for the same period in 2020[172] - Liabilities for unrecognized tax benefits as of September 30, 2021, were $1.3 million, an increase from $1.1 million as of December 31, 2020[175] Strategic Initiatives and Market Position - The company has completed 21 strategic acquisitions since June 2013, with purchase prices ranging from approximately $5.0 million to $46.0 million, excluding the $335.0 million acquisition of George Little Management (GLM)[202] - The trade show industry is highly fragmented, with the three largest companies, including the company, comprising only 10% of the wider U.S. market, presenting ongoing acquisition opportunities[204] - The company aims to modestly increase booth space pricing annually across its portfolio, driven by increased exhibitor and attendee participation[201]