Emerald Holding(EEX) - 2022 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2022, were $98.5 million, a significant increase from $12.9 million for the same period in 2021, representing a growth of approximately 664%[18] - Operating income for the first quarter of 2022 was $24.3 million, compared to an operating loss of $19.6 million in the first quarter of 2021[18] - Net income for the three months ended March 31, 2022, was $22.6 million, compared to a net loss of $15.3 million for the same period in 2021[18] - The company generated $33.0 million in net cash provided by operating activities for the three months ended March 31, 2022, significantly up from $1.6 million in the same period of 2021[23] - Adjusted EBITDA for the same period was $54.4 million, up from a loss of $2.5 million, reflecting a positive variance of $56.9 million[194] - Free Cash Flow for the three months ended March 31, 2022, was $29.8 million, compared to $0.6 million in the prior year, indicating a variance of $29.2 million[194] - Net income for the three months ended March 31, 2022, was $22.6 million, compared to a loss of $15.3 million in the same period in 2021[198] Assets and Liabilities - Total current assets increased to $354.1 million as of March 31, 2022, up from $290.1 million as of December 31, 2021, reflecting a growth of approximately 22%[15] - Total assets reached $1,115.3 million as of March 31, 2022, compared to $1,062.4 million as of December 31, 2021, indicating an increase of about 5%[16] - Total liabilities increased to $777.0 million as of March 31, 2022, compared to $747.9 million as of December 31, 2021[15] - As of March 31, 2022, the Company had long-term debt of $509.8 million, down from $510.9 million as of December 31, 2021[86] Revenue Sources - Trade show revenues accounted for approximately 89.0% of total revenues for the three months ended March 31, 2022, compared to 43.4% for the same period in 2021[48] - The company recognized revenues of $84.7 million from deferred revenue for the three months ended March 31, 2022, compared to $5.4 million for the same period in 2021[48] - The company recorded other income of $28.8 million related to event cancellation insurance claims during the three months ended March 31, 2022[32] Expenses - Cost of revenues rose to $34.2 million, a 755.0% increase from $4.0 million in the same quarter of 2021[194] - Selling, general and administrative expenses were $46.6 million, an increase of 51.3% from $30.8 million year-over-year[194] - General corporate and other expenses amounted to $12.8 million in Q1 2022, compared to $10.9 million in Q1 2021, indicating increased operational costs[154] Impairments and Adjustments - The company recorded a goodwill impairment charge of $6.3 million in the first quarter of 2022[18] - The Company recognized an impairment charge of $1.6 million related to indefinite-lived intangible assets during the three months ended March 31, 2022[74] - The Company recorded total goodwill impairment of $5.8 million and $0.5 million for the three months ended March 31, 2022, related to the Design, Creative and Technology segment and All Other Category, respectively[83] Shareholder Information - The company repurchased 255,584 shares for $0.9 million during Q1 2022, with $17.4 million remaining available under the share repurchase program[120] - The redeemable convertible preferred stock accumulated $7.8 million in dividends during Q1 2022, raising the aggregate accreted liquidation preference to $451.9 million[105] COVID-19 Impact - The company experienced a significant negative impact on its financial results and liquidity due to the ongoing effects of COVID-19[30] - The ongoing effects of COVID-19 have had a significant negative impact on financial results and liquidity, which may continue beyond the pandemic[170] Strategic Initiatives - The company aims to drive organic growth by enhancing exhibitor and attendee participation, which is expected to lead to increased demand for exhibit space and premium pricing[168] - Emerald has completed 22 strategic acquisitions since June 2013, with purchase prices ranging from approximately $5.0 million to $151.1 million, enhancing its market presence[169] Stock-Based Compensation - The company recognized stock-based compensation expense of $1.3 million for stock options in Q1 2022, compared to $1.6 million in Q1 2021[125] - Stock-based compensation expense related to RSUs for Q1 2022 was $0.8 million, down from $1.3 million in Q1 2021[128]