Emerald Holding(US:EEX)2023-03-14 16:00Acquisitions and Growth - Emerald completed two acquisitions in 2022, acquiring Advertising Week and Bulletin, enhancing its portfolio in marketing and retail sectors [23]. - The company has acquired and integrated 25 industry-leading events for approximately $921 million since the Onex Acquisition in 2013 [20]. Ownership and Financial Structure - As of December 31, 2022, Onex owned 69.6% of Emerald's outstanding common stock, translating to approximately 88.3% on an as-converted basis [22]. - As of December 31, 2022, the company had $415.3 million of variable rate borrowings outstanding under its Amended and Restated Senior Secured Credit Facilities [404]. - A 0.25% increase in the average interest rate on the company's variable rate indebtedness would have resulted in a $1.1 million increase in annual interest expense [404]. Revenue Generation and Business Model - Emerald's trade shows attract high-quality attendees, resulting in a self-reinforcing "network effect" that drives predictable, recurring revenue streams [15]. - The company generates substantial first-party data across its events and e-commerce platforms, aiming to enhance customer experience and drive higher revenue per customer [18]. - Other Marketing Services, including print and digital media products, generated 9.1% of Emerald's revenues for the year ended December 31, 2022 [34]. - The Elastic Suite platform streamlines the wholesale buying process, expected to enhance customer engagement year-round [35]. - The participation of qualified buyers at trade shows provides an efficient platform for high-quality lead generation for exhibitors [15]. - The company operates in multiple fragmented industry sectors, providing a centralized platform for interaction between buyers and sellers [27]. Risk Factors and Insurance - The impact of COVID-19 and other risk factors may cause actual results to differ materially from forward-looking statements [9]. - The company recorded other income, net of $182.8 million related to event cancellation insurance claim and settlement proceeds for the year ended December 31, 2022 [61]. - The aggregate limit for the company's renewed 2022 primary event cancellation insurance policy is $100.0 million [60]. - The company received payments of $95.2 million from its insurance carrier to recover lost revenues for the year ended December 31, 2021 [61]. Sustainability and Diversity Initiatives - The company aims to reduce greenhouse gas emissions by 50% by 2030 as part of its commitment to sustainability [54]. - The company has taken the Net Zero Carbon Events pledge to achieve net zero carbon emissions by 2050 [54]. - The company had 759 full-time employees as of December 31, 2022, with 49% of the senior management team being female [48]. - The company is committed to increasing the hiring of Black employees and has eliminated the college-degree requirement for various positions to promote diversity [56]. Employee Structure and Work Environment - The company has a hybrid work structure allowing employees to work from home and in the office [51].