(Registrant’s telephone number, including area code): ~~(949)~~ (949) 226-5700

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August 4,~~October 31, 2022, there were ~~69,115,769~~67,609,466 shares of the Registrant’s common stock, par value $0.01, outstanding.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. You can generally identify forward-looking statements by our use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect”, “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek” or “should,” or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions or future events or performance contained in this report are forward-looking statements. In addition, statements contained in this Quarterly Report on Form 10-Q relating to the COVID-19 pandemic, the potential impacts of which are inherently uncertain, are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in this report under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect the trading price of our common stock on the New York Stock Exchange. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include:

Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this report are not guarantees of future performance and our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate, may differ materially from the forward-looking statements contained in this report. In addition, even if our results of operations, financial condition and liquidity, and events in the industry in which we operate, are consistent with the forward-looking statements contained in this report, they may not be predictive of results or developments in future periods.

Any forward-looking statement that we make in this Quarterly Report on Form 10-Q speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this report.

~~The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.~~

~~Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)~~

~~The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.~~

~~Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and of Stockholders’ Equity~~

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and of Stockholders’ Equity

	Three Months Ended June 30, 2021
	(shares in thousands; dollars in millions)
						Total Emerald Holding, Inc. Stockholders' Equity (Deficit)
	Redeemable Convertible Preferred Stock					Common Stock					Additional Paid-in			Accumulated			Total Stockholders’
	Shares			Amount		Shares			Amount		Capital			Deficit			Deficit
Balances at March 31, 2021		71,444		$	406.8		72,274		$	0.7	$	683.9		$	(710.5	)	$	(25.9	)
Stock-based compensation		—			—		17			—		2.8			—			2.8
Issuance of common stock under equity plans		—			—		4			—		—			—			—
Redeemable convertible preferred stock conversion		(2	)		—		4			—		—			—			—
Accretion to redemption value of redeemable convertible preferred stock		—			8.8		—			—		(8.8	)		—			(8.8	)
Repurchase of common stock							(781	)		—		(4.0	)		—			(4.0	)
Net loss and comprehensive loss		—			—		—			—		—			(46.5	)		(46.5	)
Balances at June 30, 2021		71,442		$	415.6		71,518		$	0.7	$	673.9		$	(757.0	)	$	(82.4	)

	Six Months Ended June 30, 2021																			Three Months Ended September 30, 2022
	(shares in thousands; dollars in millions)																			(shares in thousands; dollars in millions)
						Total Emerald Holding, Inc. Stockholders' Equity (Deficit)																				Total Emerald Holding, Inc. Stockholders' Equity (Deficit)
	Redeemable Convertible Preferred Stock					Common Stock					Additional Paid-in			Accumulated			Total Stockholders’			Redeemable Convertible Preferred Stock						Common Stock					Additional Paid-in			Accumulated			Total Stockholders’
	Shares			Amount		Shares			Amount		Capital			Deficit			Deficit			Shares			Amount			Shares			Amount		Capital			Deficit			Deficit
Balances at December 31, 2020		71,445		$	398.3		72,195		$	0.7	$	690.7		$	(695.2	)	$	(3.8	)
Balances at June 30, 2022																					71,417		$	452.5			69,284		$	0.7	$	634.0		$	(759.5	)	$	(124.8	)
Stock-based compensation		—			—		226			—		5.6			—			5.6			—			—			16			—		1.4			—			1.4
Issuance of common stock under equity plans		—			—		22			—		—			—			—			—			—			17			—		—			—			—
Redeemable convertible preferred stock conversion		(3	)		—		5			—		—			—			—
Accretion to redemption value of redeemable convertible preferred stock		—			17.3		—			—		(17.3	)		—			(17.3	)		—			9.9			—			—		(9.9	)		—			(9.9	)
Repurchase of common stock		—			—		(930	)		—		(5.1	)		—			(5.1	)		—			—			(1,676	)		—		(5.8	)		—			(5.8	)
Net loss and comprehensive loss		—			—		—			—		—			(61.8	)		(61.8	)
Balances at June 30, 2021		71,442		$	415.6		71,518		$	0.7	$	673.9		$	(757.0	)	$	(82.4	)
Redeemable convertible preferred stock conversion																					—			—			1			—		—			—			—
Net income and comprehensive income																					—			—			—			—		—			93.0			93.0
Balances at September 30, 2022																					71,417		$	462.4			67,642		$	0.7	$	619.7		$	(666.5	)	$	(46.1	)

																				Nine Months Ended September 30, 2022
																				(shares in thousands; dollars in millions)
																										Total Emerald Holding, Inc. Stockholders' Equity (Deficit)
																				Redeemable Convertible Preferred Stock						Common Stock					Additional Paid-in			Accumulated			Total Stockholders’
																				Shares			Amount			Shares			Amount		Capital			Deficit			Deficit
Balances at December 31, 2021																					71,442		$	433.9			70,026		$	0.7	$	653.2		$	(774.9	)	$	(121.0	)
Stock-based compensation																					—			—			361			—		5.1			—			5.1
Issuance of common stock under equity plans																					—			—			37			—		—			—			—
Accretion to redemption value of redeemable convertible preferred stock																					—			28.7			—			—		(28.7	)		—			(28.7	)
Repurchase of common stock																					—			—			(2,828	)		—		(10.1	)		—			(10.1	)
Redeemable convertible preferred stock conversion																					(25	)		(0.2	)		46			—		0.2			—			0.2
Net income and comprehensive income																					—			—			—			—		—			108.4			108.4
Balances at September 30, 2022																					71,417		$	462.4			67,642		$	0.7	$	619.7		$	(666.5	)	$	(46.1	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Condensed Consolidated Statements of ~~Cash Flows~~Redeemable Convertible Preferred Stock and of Stockholders’ Equity

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

The unaudited condensed consolidated financial statements include the operations of Emerald Holding, Inc. (the “Company” or “Emerald”) and its wholly-owned subsidiaries. These unaudited condensed consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC for Interim Reporting. All intercompany transactions, accounts and profits/losses, if any, have been eliminated in the unaudited condensed consolidated financial statements. In the opinion of management, all recurring adjustments considered necessary for a fair statement of results for the interim period have been included.

These unaudited condensed consolidated financial statements do not include all disclosures required by GAAP, therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the more detailed audited consolidated financial statements for the year ended December 31, 2021. The December 31, 2021 condensed consolidated balance sheet was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2021.

The results for the three and ~~six~~nine months ended ~~June~~September 30, 2022 are not necessarily indicative of results to be expected for a full year, any other interim periods or any future year or period. Results of our reportable segments for the three and ~~six~~nine months ended ~~June~~September 30, 2022 reflect the updated segment presentation discussed below in Note 15 “Segment Information”.

In conjunction with the Company’s close process for the second quarter of 2022, management identified an immaterial error relating to a payment due to a third party as a result of the Company’s recognition of insurance claim proceeds associated with a cancelled event in 2021 as a result of COVID-19. Management determined that upon recognition of the insurance proceeds during December of 2021, the Company did not appropriately record a liability in the amount of $ ~~$1.6~~1.6 million,, representing the portion of the insurance proceeds that were payable to the third party. The failure to accrue this payment due to the third party resulted in Cost of revenues and Accounts payable and other current liabilities being understated by ~~$1.6~~$1.6 million. Management evaluated the impact of this error on the Company’s Q4 and full year 2021 consolidated financial statements and determined that the consolidated financial statements were not materially misstated. However, in order to correctly state equity, , the December 31, 2021 stockholders’ deficit has been corrected to reflect the impact of this immaterial error. The Company will revise its consolidated financial statements as of and for the year ended December 31, 2021 when it files its Form 10-K for the period ended December 31, 2022.

Operating segments are components of an enterprise for which discrete financial reporting information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Emerald’s ~~CEO~~Chief Executive Officer (“CEO”) was appointed in January 2021 and is considered the CODM. Effective January 31, 2022, Emerald’s CEO changed the way that he evaluates the results of the Company’s

operations and as a result, there was a change in reporting segments. The CODM evaluates performance based on the results of 7seven executive portfolios, which represent the Company’s 7seven operating segments. Based on an evaluation of economic similarities, 5five operating segments are aggregated into 2two reportable segments: ~~Commerce~~"Commerce" and ~~Design,~~"Design, Creative and ~~Technology~~Technology" reportable segments. ~~NaN~~Two operating segments do not meet the quantitative thresholds of a reportable operating segment and did not meet the aggregation criteria set forth in Accounting Standards Codification 280 (“ASC 280”), Segment Reporting, as of ~~June~~September 30, 2022 and as such are referred to as “All ~~Other”.~~Other.” Refer to Note 15, Segment Information, for information regarding the Company’s reportable segments.

In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard (“ASU”) 2021-08 (“ASU 2021-08”), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, creating an exception to the recognition and measurement principles in ASC 805, Business Combinations. The amendments require an acquirer to use the guidance in ASC 606, Revenue from Contracts with Customers, rather than using fair value, when recognizing and measuring contract assets and contract liabilities related to customer contracts assumed in a business combination. This guidance is effective for fiscal years beginning after December 15, 2022, and for interim periods within that year. Early adoption is permitted and the amendments in ASU 2021-08 should be applied to business combinations occurring during the year of adoption. The Company adopted ASU 2021-08 in October 2021 and the adoption did ~~not~~not have a material impact on the Company’s consolidated financial statements.

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions and adding further guidance to simplify the accounting for income taxes. The standard removes certain exceptions related to intra-period tax allocations, the methodology for calculating income taxes in interim periods and the recognition of deferred taxes for investments. The standard also clarifies and amends existing guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted ASU 2019-12 on January 1, 2021, which did ~~not~~not have a material impact on the Company’s condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden of accounting for (or recognizing the effects of) reference rate reform. The amendments in ASU 2020-04 are effective upon issuance through December 31, 2022 and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. The Company does not expect the adoption of this accounting standard will have a material impact on the Company’s condensed consolidated financial statements.

There have been no other new accounting pronouncements that are expected to have a significant impact on the Company’s condensed consolidated financial statements or notes thereto.

The global COVID-19 pandemic significantly impacted the Company’s revenues from mid-March 2020 through the end of fiscal year 2021. Late in the second quarter of 2021, the Company began to see the positive impacts of successful vaccination rollouts throughout the United States, with social distancing restrictions easing and live events resuming. As a result, the Company was able to hold 5984 in-person events during the first ~~half~~nine months of 2022.

Revenue is recognized as the customer receives the benefit of the promised services and performance obligations are satisfied. Revenue is recognized at an amount that reflects the consideration the Company expects to receive in exchange for those services. Customers generally receive the benefit of the Company’s services upon the staging of each trade

show or conference event and over the subscription period for access to the Company’s subscription software and ~~services~~services..

A significant portion of the Company’s annual revenue is generated from the production of trade shows and ~~conference~~other events, ~~(collectively, “trade shows”),~~ including booth space sales, registration fees and sponsorship fees. Trade show revenues and other events represented ~~approximately 83.8%~~79.8% and ~~26.0%~~85.4% of total revenues for the three months ended ~~June~~September 30, 2022 and 2021, respectively. Trade show and other event revenues represented ~~approximately 86.8%~~84.9% and ~~34.1%~~71.6% of total revenues for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively.

Deferred revenues generally consist of booth space sales, registration fees and sponsorship fees that are invoiced prior to a trade show, as well as upfront payments for software subscription fees, professional services and implementation fees for the Company’s subscription software and ~~services~~.services. Current deferred revenues were ~~$143.5~~$166.7 million as of ~~June~~September 30, 2022 and are reported as deferred revenues on the condensed consolidated balance ~~sheets~~.sheets. Long-term deferred revenues as of ~~June~~September 30, 2022 were ~~$0.2~~$1.7 million and are reported as other noncurrent liabilities on the condensed consolidated balance sheets. Current and long-term deferred revenues as of December 31, 2021 were ~~$118.1~~$118.1 million and ~~$0.2~~$0.2 million, respectively. During the three and ~~six~~nine months ended ~~June~~September 30, 2022, the Company recognized revenues of ~~$59.3~~$54.5 million and ~~$144.0~~$198.4 million, respectively, from amounts included in deferred revenue at the beginning of the respective period. During the three and ~~six~~nine months ended ~~June~~September 30, 2021, the Company recognized revenues of ~~$9.3~~$76.7 million and ~~$14.8~~$91.4 million, respectively, from amounts included in deferred revenue at the beginning of the respective period.

The accounts receivable and deferred revenue balances related to cancelled events have been reclassified to cancelled event liabilities in the condensed consolidated balance sheets as the total amount represents balances which are expected to be refunded to customers. As of ~~June~~September 30, 2022, cancelled event liabilities of ~~$4.4~~$4.4 million represents ~~$0.8~~$3.2 million of deferred revenues for cancelled trade shows and ~~$3.6~~$1.2 million of related accounts receivable reclassified to cancelled event liabilities in the condensed consolidated balance sheets. As of December 31, 2021, cancelled event liabilities of ~~$9.8~~$9.8 million represents ~~$5.6~~$5.6 million of deferred revenues for cancelled trade shows and ~~$4.2~~$4.2 million of related accounts receivable ~~reclassifed~~reclassified to cancelled event liabilities in the condensed consolidated balance sheets.

For the Company’s trade shows and other events, sales are deferred and recognized when performance obligations under the terms of a contract with the Company’s customers are satisfied, which is typically at the completion of a show or event. Revenue is measured as the amount of consideration the Company expects to receive upon completion of its performance obligations.

For the Company’s subscription software and services, the Company enters into contracts with customers that often include multiple performance obligations, which are generally capable of being distinct. Fees associated with implementation and professional services are deferred and recognized over the expected customer life, which is four ~~years.~~years. Subscription revenue is generally recognized over the term of the contract. The Company’s contracts associated with the subscription software and services are typically three-year terms with one-year renewals following the initial three-year term.

For the Company’s other marketing services, revenues are deferred and recognized when performance obligations under the terms of a contract with the Company’s customers are satisfied. This generally occurs in the period in which the publications are issued. Revenue is measured as the amount of consideration the Company expects to receive upon completion of its performance obligations.

The Company applies a practical expedient which allows the exclusion of disclosure information regarding remaining performance obligations if the performance obligation is part of a contract that has an expected duration of one year or less. The Company’s performance obligations greater than one year are immaterial.

The Company’s primary sources of revenue are from trade shows, other events, subscription software and services and other marketing services.

The Company’s contract assets are primarily sales commissions incurred in connection with the Company’s subscription software and services,, which are expensed over the expected customer relationship period. As of ~~June~~September 30, 2022, the Company does not have material contract assets.

Contract liabilities generally consist of booth space sales, registration fees, sponsorship fees that are collected prior to the trade show or other event and subscription revenue, implementation fees and professional services associated with the Company’s subscription software and ~~services~~.services. Contract liabilities less than one year from the date of the performance obligation are reported on the condensed consolidated balance sheets as deferred revenues. Contract liabilities greater than one year from the date of the performance obligation are reported on the condensed consolidated balance sheets in other noncurrent liabilities.

The Company’s sales commission costs incurred in connection with sales of booth space, registration fees and sponsorship fees at the Company’s trade shows and other events and with sales of advertising for industry publications

are generally short term, as sales typically begin up to one year prior to the date of the trade shows and other events. The Company expects the period benefited by each commission to be less than one year, and as a result, the Company expenses sales commissions associated with trade shows, other events and other marketing services as incurred. Sales commissions are reported on the condensed consolidated statements of ~~loss~~income (loss) and comprehensive ~~loss~~income (loss) as selling, general and administrative expense.

The Company monitors collections and payments from its customers and maintains an allowance based upon applying an expected credit loss rate to receivables based on the historical loss rate from similar higher risk customers adjusted for current conditions, including any specific customer collection issues identified, and forecasts of economic conditions. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The activities in this account, including the current-period provision for expected credit losses for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, were not material.

In furtherance of the Company’s strategy to ~~provide year-round engagement,~~combine both in-person and e-commerce offerings, the Company executed an asset purchase agreement on ~~June 21,~~July 11, 2022 to acquire ~~all the~~certain assets and assume certain liabilities of the business known as ~~Advertising Week from Stillwell Partners~~Bulletin for a total estimated purchase price of ~~$34.3~~$9.9 million, which included an initial cash payment of ~~$28.4~~$8.9 million and contingent consideration with an estimated fair value of ~~$5.9~~$1.0 million. ~~Advertising Week~~The contingent consideration liability related to the acquisition of Bulletin of $1.0 million, consists of a potential payment based on the 2026 Bulletin EBITDA. The 2026 payment is ~~a global event~~expected to be settled in the second quarter of 2027. Bulletin is an online wholesale market for retail where brands, buyers and ~~thought leadership platform focused on marketing, media, technology,~~designers gather to connect and ~~culture.~~discover new products. The Company believes this acquisition will infuse the NY NOW Gift and Home Show with Bulletin’s industry expertise and extensive customer base of brands and retailers. The acquisition was financed with cash from operations.

The preparation of the valuation required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, royalty rate and the applicable discount rates. These estimates were based on assumptions that the Company believes to be reasonable, however, actual results may differ from these estimates.

Identified intangible assets associated with Advertising Week included trade name, customer relationship and content intangible assets of $5.4 million, $5.9 million and $1.1 million, respectively. The weighted-average amortization period of the trade names acquired was 15.0 years. The weighted-average amortization period of the customer relationship intangible assets acquired was 10.0 years, based on the expected pattern of economic benefit used to calculate their fair value. The weighted-average amortization period of the content intangible assets acquired was 7.0 years. There is 0 assumed residual value for the acquired content, trade names, customer relationships.

The contingent consideration liability related to the acquisition of Advertising Week of $5.9 million, consists of two potential payments, the 2023 payment and the 2026 payment. The 2023 payment is a based on a multiple of 2023 EBITDA growth from a specified EBITDA target and will be settled in the second quarter of 2024. The 2026 payment is based on a range of multiples, which are dependent upon the acquisition’s 5-year compounded annual EBITDA growth rate from 2021 through 2026, being applied to the average annual EBITDA growth in calendar years 2024, 2025 and 2026, from a specified EBITDA target, less the 2023 payment. The 2026 payment will be settled in the second quarter of 2027.

External acquisition costs of ~~$0.6~~$1.1 million were expensed as incurred and included in selling, general and administrative expenses in the condensed consolidated statements of income (loss) and comprehensive income (loss). ~~The revenue, expenses or net income (loss) generated from the acquisition of Advertising Week during three and six months ended June 30, 2022 was not material.~~ Goodwill was calculated as the excess of the purchase price over the estimated fair values of acquired assets and intangible assets acquired offset by liabilities acquired and is primarily attributable to the future economic benefits expected to arise from synergies expected to arise due to certain cost savings, operating efficiencies and other strategic benefits. Substantially all of the goodwill recorded is expected to be deductible for income tax purposes.

The primary tasks that are required to be completed to finalize the valuation of assets and liabilities acquired include validation of business level forecasts, customer attrition rates and acquired working capital balances.

Identified intangible assets associated with Bulletin included acquired technology and trade name intangible assets of $2.0 million and $0.1 million, respectively. The weighted-average amortization period of the acquired technology was 3.0 years. The weighted-average amortization period of the trade name intangible assets acquired was 3.0 years. There is no assumed residual value for the acquired technology and trade name intangible assets.

In furtherance of the Company’s strategy to provide year-round engagement and optimize its portfolio within strategic growth industries, the Company executed an asset purchase agreement on June 21, 2022 to acquire all the assets and assume certain liabilities of the business known as Advertising Week from Stillwell Partners for a total estimated purchase price of $34.3 million, which included an initial cash payment of $28.4 million and contingent consideration with an estimated fair value of $5.9 million. Advertising Week is a global event and thought leadership platform focused on marketing, media, technology, and culture. The acquisition was financed with cash from operations.

The preparation of the valuation required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that the Company believes to be reasonable, however, actual results may differ from these estimates.

Identified intangible assets associated with Advertising Week included trade name, customer relationship and content intangible assets of $5.4 million, $5.9 million and $1.1 million, respectively. The weighted-average amortization period of the trade names acquired was 15.0 years. The weighted-average amortization period of the customer relationship intangible assets acquired was 10.0 years, based on the expected pattern of economic benefit used to calculate their fair value. The weighted-average amortization period of the content intangible assets acquired was 7.0 years. There is no assumed residual value for the acquired content, trade names, customer relationships.

The contingent consideration liability related to the acquisition of Advertising Week in the amount of $5.9 million as of the acquisition date, consists of two potential payments, the 2023 payment and the 2026 payment. The 2023 payment is based on a multiple of 2023 EBITDA growth from a specified EBITDA target and will be settled in the second quarter of 2024. The 2026 payment is based on a range of multiples, which are dependent upon the acquisition’s 5-year compounded annual EBITDA growth rate from 2021 through 2026, being applied to the average annual EBITDA growth in calendar years 2024, 2025 and 2026, from a specified EBITDA target, less the 2023 payment. The 2026 payment will be settled in the second quarter of 2027. The 2023 and 2026 payments are not capped as they are based on increases in EBITDA. Therefore, there is no pre-determined upper limit to the undiscounted range.

External acquisition costs of $0.6 million were expensed as incurred and included in selling, general and administrative expenses in the condensed consolidated statements of income (loss) and comprehensive income (loss). Goodwill was calculated as the excess of the purchase price over the estimated fair values of acquired assets and intangible assets acquired offset by liabilities acquired and is primarily attributable to the future economic benefits expected to arise from synergies expected to arise due to certain cost savings, operating efficiencies and other strategic benefits. Substantially all of the goodwill recorded is expected to be deductible for income tax purposes.

The primary tasks that are required to be completed include validation of business level forecasts, customer attrition rates and acquired working capital balances.

The following table summarizes the preliminary fair value of the acquired assets and liabilities on the acquisition date:

During the three months ended March 31, 2022, the Company finalized its analysis of the purchase accounting, including gaining a better understanding of historical MJBizCon registration revenue and its impact on the valuation model. The final analysis of the registration revenue and the associated revision to the average EBITDA growth estimate for MJBiz resulted in an ~~$8.9~~$8.9 million increase in the estimated contingent consideration liability. The measurement period closed in the first quarter of 2022.

Amortization expense for the three and ~~six~~nine months ended ~~June~~September 30, 2022 was ~~$13.7~~$14.0 million and ~~$27.7~~$41.7 million, respectively. Amortization expense for the three and ~~six~~nine months ended ~~June~~September 30, 2021 was ~~$11.8~~$11.8 million and ~~$23.3~~$35.1 million, respectively.

Long-term debt related to the Amended and Restated Term Loan Facility is comprised of the following indebtedness to various lenders:

On February 14, 2020, Emerald Expositions Holding, Inc., a wholly-owned subsidiary of the Company and the borrower under the Amended and Restated Senior Secured Credit Facilities, was renamed Emerald X, Inc. (“Emerald X”). Emerald X had 0no borrowings outstanding under its Revolving Credit Facility as of ~~June~~September 30, 2022 and December 31, 2021, respectively. Emerald X had ~~$1.0~~$1.0 million in stand-by letters of credit outstanding under the Revolving Credit Facility as of ~~June~~September 30, 2022 and December 31, 2021. Until August 6, 2020, borrowings under the Revolving Credit Facility were subject to an interest rate equal to LIBOR plus ~~2.75%~~2.75% or ABR plus ~~1.75%~~1.75%. As a result of the Company’s Total First Lien Net Leverage Ratio decreasing below 2.50 to 1.00 (as defined in the Amended and Restated Senior Secured Credit Facilities), from August 7, 2020 through March 31, 2022, borrowings under the Revolving Credit Facility were subject to an interest rate equal to LIBOR plus ~~2.25%~~2.25% or ABR plus ~~1.25%~~1.25%.

The Revolving Credit Facility contains a financial covenant requiring Emerald X to comply with a 5.50 to 1.00 Total First Lien Net Leverage Ratio, which is defined as the ratio of Consolidated Total Debt (as defined in the Amended and Restated Senior Secured Credit Facilities) secured on a first lien basis, net of unrestricted cash and cash equivalents to trailing four-quarter Consolidated EBITDA (as defined in the Amended and Restated Senior Secured Credit Facilities). This financial covenant is tested on the last day of each quarter only if the aggregate amount of revolving loans, swingline loans and letters of credit outstanding under the Revolving Credit Facility (net of up to ~~$10.0~~$10.0 million of outstanding letters of credit) exceeds ~~35%~~35% of the total commitments thereunder. As of ~~June~~September 30, 2022, the Company was not required to test this financial covenant and Emerald X was in compliance with all covenants under the Amended and Restated Senior Secured Credit Facilities.

As of ~~June~~September 30, 2022, the Company’s assets and liabilities measured at fair value on a recurring basis other-than-temporary are categorized in the table below:

As of December 31, 2021, the Company’s assets and liabilities measured at fair value on a recurring basis are categorized in the table below:

As part of the Company’s cash management strategy, the Company holds high credit quality marketable securities that are available to support the Company’s current operations. The Company's certificates of deposit with maturities of greater than 90 days are classified as available for sale and are not traded in active markets. Therefore, the certificates of deposit are classified as Level 2 assets. These certificates of deposit are reported at fair value. Level 2 marketable securities in the fair value hierarchy were based on unadjusted quoted ~~prices.~~

The market-based share awards liability of ~~$0.5~~$0.4 million and ~~$0.4~~$0.4 million as of ~~June~~September 30, 2022 and December 31, 2021, respectively, entitles the grantees of these awards the right to receive shares of common stock equal to a maximum cash value of ~~$9.8~~$9.8 million, in the aggregate, upon achievement of specified targeted share prices measured over sixty days within a ninety-day trading period. The liability is measured at fair value and is re-measured to an updated fair value at each reporting period. The Company recognizes stock-based compensation expense for awards subject to market-based vesting conditions regardless of whether it becomes probable that these conditions will be achieved. The stock-based compensation expense is included in selling, general and administrative expense in the condensed consolidated statements of ~~loss~~income (loss) and comprehensive ~~loss.~~income (loss). Refer to Note 10, Stock-Based Compensation, under the heading Market-based Share Awards for unobservable inputs for the market-based share award liability.

As of ~~June~~September 30, 2022 and December 31, 2021, the Company had ~~$39.2~~$36.3 million and ~~$36.2~~$36.2 million, respectively, in contingent consideration liabilities measured at fair value related to the Company’s acquisitions of G3 Communications, EDspaces, PlumRiver, Sue Bryce Education, MJBiz, Advertising Week and ~~Advertising Week.~~Bulletin. The contingent consideration liability of ~~$39.2~~$36.3 million as of ~~June~~September 30, 2022 consists of liabilities of ~~$32.7~~$28.5 million, ~~$1.8~~$1.9 million, ~~$0.3~~$0.3 million and ~~$4.4~~$5.7 million that are expected to be settled in 2023, 2024, 2025 and 2027, respectively. Refer to Note 4, Business Acquisitions, for further information related to the measurement period adjustment for the MJBiz contingent consideration and the contingent consideration related to the ~~acquisition~~acquisitions of Advertising ~~Week.~~Week and Bulletin.

The Company paid ~~$6.5~~$6.5 million in contingent consideration during the first quarter of 2022 in relation to the Company’s acquisition of G3 Communications. The liabilities are re-measured to fair value each reporting period. As a result of the Company’s remeasurements during the first, second and ~~second~~third quarters of 2022, the Company recorded a ~~$9.9~~$9.6 million decrease in fair value of contingent consideration, which is included in selling, general and administrative expense in the condensed consolidated statements of income (loss) and comprehensive ~~income.~~income (loss).

The determination of the fair value of the contingent consideration liabilities could change in future periods. Any such changes in fair value will be reported in selling, general and administrative expense in the condensed consolidated statements of income (loss) and comprehensive income (loss).

The Company’s condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amount of assets and liabilities.

On June 10, 2020, the Company entered into an investment agreement (the “Investment Agreement”) with Onex Partners V LP (“Onex”), pursuant to which the Company agreed to (i) issue to an affiliate of Onex, in a private placement transaction (the “Initial Private Placement”), 47,058,332 shares of redeemable convertible preferred stock for a purchase price of ~~$5.60~~$5.60 per share and (ii) effect a rights offering to holders of its outstanding common stock of one non-transferable subscription right for each share of the Company’s common stock held, with each right entitling the holder to purchase one share of redeemable convertible preferred stock at the Series A Price per share. Onex agreed to purchase (the “Onex Backstop”) any and all redeemable convertible preferred stock not subscribed for in the Rights Offering by stockholders other than affiliates of Onex at the Series A Price per share. On June 29, 2020 (the “First Closing Date”), Emerald received proceeds of ~~$252.0~~$252.0 million, net of fees and expenses of ~~$11.6~~$11.6 million, from the sale of redeemable convertible preferred stock to Onex in the Initial Private Placement. Emerald used ~~$50.0~~$50.0 million of the net proceeds from the sale of redeemable convertible preferred stock to repay outstanding debt under the Revolving Credit Facility and expects to use the remaining proceeds for general corporate purposes, including organic and acquisition growth initiatives. The Rights Offering subscription period started and ended on July 7, 2020 and July 22, 2020, respectively. On July 24, 2020, the Company issued a further 1,727,427 shares of redeemable convertible preferred stock pursuant to the Rights Offering and received proceeds of approximately ~~$9.7~~$9.7 million. Pursuant to the Onex Backstop, on August 13, 2020, an additional 22,660,587 shares of redeemable convertible preferred stock were sold to Onex in exchange for approximately ~~$121.3~~$121.3 million, net of fees and estimated expenses of ~~$5.6~~$5.6 million. The rights of the redeemable convertible preferred stock are summarized below.

Upon liquidation or dissolution of the Company, the holders of redeemable convertible preferred stock are entitled to receive the greater of (a) the accreted liquidation preference, and (b) the amount the holders of redeemable convertible preferred stock would have received if they had converted their redeemable convertible preferred stock into common stock immediately prior to such liquidation or dissolution.

E~~ach~~Each share of redeemable convertible preferred stock will accumulate dividends at a rate per annum equal to 7%7% of the accreted liquidation preference, compounding quarterly by adding to the accreted liquidation preference until July 1, 2023 and thereafter, at the Company’s option, paid either in cash or by adding to the accreted liquidation preference. During the three and ~~six~~nine months ended ~~June~~September 30, 2022, the redeemable convertible preferred stock accumulated ~~$7.8~~$8.0 million and ~~$15.6~~$23.6 million worth of dividends, respectively, bringing the aggregate accreted liquidation preference to ~~$459.7~~$467.7 million as of ~~June~~September 30, 2022. There were 0no dividends declared or paid in the first, ~~and~~ second or third quarters of 2022 or 2021. Holders of redeemable convertible preferred stock are also entitled to participate in and receive any dividends declared or paid on the Company’s common stock on an as-converted basis, and 0no dividends may be paid to holders of common stock unless the aggregate accreted liquidation preference on the redeemable convertible preferred stock has been paid or holders of a majority of the outstanding redeemable convertible preferred stock have consented to such dividends.

Shares of the redeemable convertible preferred stock may be converted at the option of the holder into a number of shares of common stock equal to (a) the amount of the accreted liquidation preference, divided by (b) the applicable conversion price. Each share of redeemable convertible preferred stock had an initial liquidation preference of ~~$5.60~~

$5.60and were initially convertible into approximately 1.59 shares of common stock, which is equivalent to the initial liquidation preference per share of ~~$5.60~~$5.60 divided by the initial conversion price of ~~$3.52~~$3.52 per share. The conversion price is subject to customary anti-dilution adjustments upon the occurrence of certain events, including downward adjustment in the event the Company issues securities, subject to exceptions, at a price that is lower than the fair market value of such securities.

If, at any time following the third anniversary of the First Closing Date the closing price per share of the Company’s common stock exceeds ~~175%~~175% of the then-applicable conversion price for at least 20 consecutive trading days, the Company may, at its option, and subject to certain liquidity conditions, cause any or all of the then outstanding shares of redeemable convertible preferred stock to be converted automatically into common stock at the then applicable conversion price.

The Company has the right to redeem all, but not less than all, of the redeemable convertible preferred stock on or after June 29, 2026 for a cash purchase price equal to (a) on or after the six-year anniversary of the initial issuance date, ~~105%~~105% of the accreted liquidation preference, (b) on or after the seven-year anniversary of the initial issuance date, ~~103%~~103% of the accreted liquidation preference or (c) on or after the eight-year anniversary of the initial issuance date, the accreted liquidation preference. In addition, if there is a change of control transaction involving the Company prior to the six-year anniversary of the First Closing Date, the Company has the right to redeem all, but not less than all, of the redeemable convertible preferred stock for a cash purchase price equal to the accreted liquidation preference plus the net present value of the additional amount by which the accreted liquidation preference would have otherwise increased from the date of such redemption through the sixth anniversary of the closing. If, after the Company ceases to have a controlling stockholder group, there is a change of control transaction involving the Company, holders of redeemable convertible preferred stock may elect to (x) convert their redeemable convertible preferred stock into shares of common stock at the then current conversion price or (y) require the Company to redeem the redeemable convertible preferred stock for cash, at a price per share equal to the then-unpaid accreted liquidation preference. Although only Unaffiliated Directors (as defined below) can be involved in any decisions with respect to the Company’s rights to exercise the redemption features, the holders of the redeemable convertible preferred stock control the majority of the votes through representation on the board of directors. Therefore, the redeemable convertible preferred stock is required to be accreted to its redemption price on the date the redemption option first becomes exercisable. For the three months ~~ending June~~ended September 30, 2022 and 2021, the Company recorded ~~$9.6~~$9.9 million and ~~$8.8~~$9.0 million in deemed dividends, respectively, and for the ~~six~~nine months ~~ending June~~ended September 30, 2022 and 2021, the Company recorded ~~$18.8~~$28.7 million and ~~$17.3~~$26.3 million in deemed dividends, respectively, representing the accretion of the redeemable convertible preferred stock to the redemption value.

Certain matters will require the approval of holders of a majority of the redeemable convertible preferred stock, including (i) amendments to the Company’s organizational documents in a manner adverse to the redeemable convertible preferred stock, (ii) the creation or issuance of senior or parity equity securities or (iii) the issuance of any convertible indebtedness, other class of redeemable convertible preferred stock or other equity securities in each case with rights to payments or distributions in which the redeemable convertible preferred stock would not participate on a pro-rata, as-converted basis.

In addition, for so long as the redeemable convertible preferred stock represents more than ~~30%~~30% of the outstanding common stock on an as-converted basis, without the approval of a majority of the directors elected by the holders of the redeemable convertible preferred stock, the Company may not (i) incur new indebtedness to the extent certain financial metrics are not satisfied, (ii) redeem or repurchase any equity securities junior to the redeemable convertible preferred stock, (iii) enter into any agreement for the acquisition or disposition of assets or businesses involving a purchase price in excess of ~~$100~~$100 million, (iv) hire or terminate the chief executive officer of the Company or (v) make a voluntary filing for bankruptcy or commence a dissolution of the Company.

For so long as the redeemable convertible preferred stock represents a minimum percentage of the outstanding shares of common stock on an as-converted basis as set forth in the Certificate of Designations relating to the redeemable convertible preferred stock, the holders of the redeemable convertible preferred stock shall have the right to appoint up to five members of the Company’s Board of Directors (the “Board”).

All decisions of the Company’s Board with respect to the exercise or waiver of the Company’s rights relating to the redeemable convertible preferred stock shall be determined by a majority of the Company’s directors that are not employees of the Company or affiliated with Onex (“Unaffiliated Directors”), or a committee of Unaffiliated Directors.

As part of the transactions contemplated by the Investment Agreement, the Company and Onex entered into a Registration Rights Agreement whereby Onex is entitled to certain demand and piggyback registration rights in respect of the redeemable convertible preferred stock and the shares of common stock issuable upon conversion thereof.

There were 0no dividends paid or declared during the first, second or ~~second~~third quarters of ~~2022~~2022 and 2021.

October 2020 Share Repurchase Program (“October 2020 Share Repurchase Program”)

In October 2020, the Company’s Board authorized and approved a ~~$20.0~~$20.0 million share repurchase program. Under the terms of the October 2020 Share Repurchase Program, the Company may, from time to time, purchase shares of its common stock for an aggregate purchase price not to exceed ~~$20.0~~$20.0 million through December 31, 2021, subject to early termination or extension by the Board. In October ~~2021,~~2022, the ~~Company’s~~Company's Board approved an extension and expansion of ~~the October 2020 Share Repurchase Program,~~its share repurchase program which allows for the repurchase of ~~$20.0~~$20.0 million of ~~our Common Stock~~the Company's common stock through December 31, ~~2022.~~2023 subject to early termination or extension by the Board. The share repurchase program may be suspended or discontinued at any time without notice. The Company repurchased ~~982,622~~1,590,030 shares and ~~1,238,206~~2,828,236 shares for ~~$3.4~~$5.9 million and ~~$4.3~~$10.2 million during the three and ~~six~~nine months ended ~~June~~September 30, 2022, respectively. The Company repurchased ~~726,895~~1,193,861 shares and ~~929,103~~2,122,964 shares for ~~$3.9~~$5.5 million and ~~$5.1~~$10.7 million during the three and ~~six~~nine months ended ~~June~~September 30, 2021, respectively. There was ~~$14.0~~$9.2 million remaining available for share repurchases under the October 2020 Share Repurchase Program as of ~~June~~September 30, 2022.

The Company recognizes cumulative stock-based compensation expense for the portion of the awards for which the service period and performance or market conditions, as applicable, have been satisfied. Stock-based compensation expense is included in selling, general and administrative expense in the condensed consolidated statements of ~~loss~~income (loss) and comprehensive ~~loss.~~income (loss). The related deferred tax benefit for stock-based compensation recognized was ~~$0.4~~$0.3 million and ~~$1.0~~$1.1 million for the three and ~~six~~nine months ended ~~June~~September 30, 2022, respectively. The related deferred tax benefit for ~~stock -based~~stock-based compensation recognized was ~~$0.7~~$0.5 million and ~~$1.4~~$1.7 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021.

In January 2019, the Company’s Board approved the ESPP, which was approved by the Company’s stockholders in May 2019. The ESPP requires that participating employees must be customarily employed for at least 20 hours per week, have completed at least 6 months of service, and have compensation (as defined in the ESPP) not greater than ~~$150,000~~$150,000 in the 12-month period before the enrollment date to be eligible to participate in the ESPP. Under the ESPP, eligible employees will receive a ~~10%~~10% discount from the lesser of the closing price on the first day of the offering period and the closing price on the purchase date. The Company reserved 500,000 shares of its common stock for issuance under the ESPP. The ESPP expense recognized by the Company was not material for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021.

The Company recognized stock-based compensation expense relating to stock option activity of ~~$0.9~~$0.9 million and ~~$2.2~~$3.1 million for the three and ~~six~~nine months ended ~~June~~September 30, 2022, respectively. The Company recognized stock-based compensation expense relating to stock option activity of ~~$1.7~~$1.6 million and ~~$3.3~~$4.9 million for the three and ~~six~~nine months ended ~~June~~September 30, 2021, respectively.

Stock option activity for the ~~six~~nine months ended ~~June~~September 30, 2022, was as follows:

The aggregate intrinsic value is the amount by which the fair value of the Company’s common stock exceeded the exercise price of the options as of the close of trading hours on the New York Stock Exchange on ~~June~~September 30, 2022 for those options for which the market price was in excess of the exercise price.

There was a total of ~~$9.3~~$8.5 million unrecognized stock-based compensation expense at ~~June~~September 30, 2022 related to unvested stock options expected to be recognized over a weighted-average period of ~~2.65~~2.72 years.

The Company periodically grants RSUs that contain service and, in certain instances, performance and market conditions to certain directors, executives and employees. Stock-based compensation expense relating to RSU activity recognized in the three and ~~six~~nine months ended ~~June~~September 30, 2022 was ~~$0.6~~$0.5 million and ~~$1.4~~$1.9 million, respectively. Stock-based compensation expense relating to RSU activity recognized in the three and ~~six~~nine months ended ~~June~~September 30, 2021 was ~~$1.1~~$0.9 million and ~~$2.4~~$3.3 million, respectively. There was a total of ~~$3.0~~$2.5 million of unrecognized stock-based compensation expense at ~~June~~September 30, 2022 related to unvested RSUs expected to be recognized over a weighted-average period of ~~2.2~~2.0 years.

In January 2020, the Company granted performance-based market condition share awards to one senior executive under the 2017 Omnibus Equity Plan, which entitle this employee the right to receive shares of common stock equal to a maximum value of ~~$4.9~~$4.9 million in the aggregate upon achievement of specified targeted share prices measured over sixty days within a ninety-day trading period. In June 2019, the Company granted performance-based market condition share awards to one senior executive under the 2017 Omnibus Equity Plan, which entitle this employee the right to receive shares of common stock equal to a maximum value of ~~$4.9~~$4.9 million in the aggregate, upon achievement of specified targeted share prices measured over sixty days within a ninety-day trading period. As of ~~June~~September 30, 2022, all outstanding performance-based market condition share awards remain unvested with an estimated weighted average conversion threshold of ~~$21.08~~$21.08 per share, which would result in an estimated 78,041 shares of common stock to be issued upon vesting. Each of the estimated 78,041 shares of common stock have a weighted-average grant date fair value of ~~$24.77~~$24.77 per share.

As of ~~June~~September 30, 2022 and December 31, 2021, the liability for these awards was ~~$0.5~~$0.4 million and ~~$0.4~~$0.4 million, respectively, and is reported on the condensed consolidated balance sheets in other noncurrent liabilities. The fair value of performance-based market condition share awards is estimated on the grant date using a risk-neutral Monte Carlo simulation model. The grant date fair value of the remaining outstanding awards granted in 2019 was ~~$0.8~~$0.8 million. The grant date fair value of the 2020 awards was ~~$1.1~~$1.1 million. The Company recognized stock-based compensation expense relating to performance-based market condition share awards of ~~$0.1~~a credit of $0.1 million and zero for the three and ~~six~~nine months ended ~~June~~September 30, ~~2022.~~2022, respectively. The Company recognized stock-based compensation expense relating to performance-based market condition share awards of ~~0 and $0.1 million~~zero during the three and ~~six~~nine months ended ~~June~~September 30, 2021, respectively.

The weighted-average expected term of the Company’s performance-based market condition share awards is the weighted-average of the derived service periods for the share awards.

Basic earnings per share is computed using the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding options, using the treasury stock method and the average market price of the Company's common stock during the applicable period. Certain shares related to some of the Company's outstanding employee share awards were excluded from the computation of diluted earnings per share, because they were antidilutive in the periods presented but could be dilutive in the future. Performance-based market condition share awards are considered contingently issuable shares, which would be included in the denominator for earnings per share if the applicable market conditions have been achieved, and the inclusion of any performance-based market condition share awards is dilutive for the respective reporting periods. For both the three and ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, unvested performance-based market condition share awards were excluded from the calculation of diluted earnings per share because the market conditions had not been met. There were ~~71,417,407 7%~~71,416,9077% Series A Redeemable Convertible Participating Preferred Stock shares outstanding which were convertible into ~~130,584,232~~132,868,526 shares of common stock at ~~June~~September 30, 2022. These preferred stock shares were anti-dilutive for the three and ~~six~~nine months ended ~~June~~September 30, 2022 and are therefore excluded from the diluted ~~loss~~income (loss) per common share calculation.

The details of the computation of basic and diluted earnings per common share are as follows:

The Company ~~determined~~determines its interim income tax provision ~~for Q2 2022~~ by applying the ~~actual year-to-date~~estimated effective income tax rate expected to income before taxes for the period as the Company was not able to make a reliable estimate of the annual effective tax rate for the fiscal year. This discrete-period approach is an exception to the use of an estimated annual effective tax ratebe applicable for the full fiscal year ~~and permissible under ASC 740-270.~~to the income (loss) before income taxes for the period. In determining the full year effective tax rate estimate, the Company does not include the estimated impact of unusual and/or infrequent items, which may cause significant variations in the expected relationship between income tax expense (benefit) and pre-tax income (loss). Significant judgment is exercised in determining the income tax provision due to transactions, credits and estimates where the ultimate tax determination is uncertain.

The Company’s U.S. federal statutory corporate income tax rate was ~~21%~~21% as of ~~June~~September 30, 2022. For the three and ~~six~~nine months ended ~~June~~September 30, 2022, the Company recorded provision for income taxes of ~~$2.9~~$28.2 million and ~~$2.1~~$30.3 million, respectively, which resulted in an effective tax rate of ~~125.5%~~23.3% and ~~11.1%~~21.8%, respectively. The differences between the U.S. federal statutory and effective tax rates before discrete items are primarily attributable to changes in valuation allowances, nondeductible officer compensation and goodwill impairment. For the three and ~~six~~nine months ended ~~June~~September 30, 2021, the Company recorded a benefit from income taxes of $2.0 million and a provision for income taxes of ~~$10.9 million and $2.6~~$0.6 million, respectively, which resulted in effective tax rates of ~~negative 30.5%~~17.5% and negative ~~4.3%~~0.9%, respectively.

Liabilities for unrecognized tax benefits and associated interest and penalties were 0zero as of ~~June~~September 30, 2022 and December 31, 2021, respectively.

The Company has entered into operating leases and other contractual obligations to secure real estate facilities, equipment and trade show venues. These agreements are not unilaterally cancelable by the Company, are legally enforceable and specify fixed or minimum amounts or quantities of goods or services at fixed or minimum ~~prices~~prices..

The Company is subject to litigation and other claims in the ordinary course of business. In the opinion of management, the Company’s liability, if any, arising from regulatory matters and legal proceedings related to these matters is not expected to have a material adverse impact on the Company’s condensed consolidated balance sheets, results of operations or cash flows.

In the opinion of management, there are no claims, commitments or guarantees pending to which the Company is party that would have a material adverse effect on the condensed consolidated financial statements.

The Company routinely evaluates whether its operating and reportable segments continue to reflect the way the Chief Operating Decision Maker (the “CODM”) evaluates the business. The determination is based on: (1) how the Company’s CODM evaluates the performance of the business, including resource allocation decisions, and (2) whether discrete financial information for each operating segment is available. The Company considers its ~~Chief Executive Officer~~CEO to be its CODM.

The CODM evaluates performance based on the results of 7seven executive brand portfolios, which represent the Company’s 7seven operating segments. The brands managed by the Company’s segment managers do not necessarily

align with specific industry sectors. Due to economic similarities and the nature of services, fulfillment processes of those services and types of customers, 5five operating segments are aggregated into 2two reportable segments, the Commerce and the Design, Creative, and Technology reportable segments. In addition, 2two operating segments did not meet the quantitative thresholds of a reportable segment and did not meet the aggregation criteria set forth in ASC Topic 280, Segment Reporting. Therefore, results for these operating segments are included in the rows labeled "All Other" in the tables below for all periods presented. Six of the executive portfolios generate revenues through the production of trade show events, including booth space sales, registration fees and sponsorship fees. In addition, these six segments generate revenues from marketing activities, including digital and print media. The seventh operating segment generates revenues from Emerald’s software-as-a-service platform.

Operating segment performance is evaluated by the Company’s CODM based on revenues and Adjusted EBITDA, a non-GAAP measure, defined as EBITDA exclusive of general corporate expenses, stock-based compensation expense, impairments and other items. These adjustments are primarily related to items that are managed on a consolidated basis at the corporate level. The exclusion of such charges from each segment is consistent with how the CODM evaluates segment performance.

The following table presents a reconciliation of reportable segment revenues, other income, net, and Adjusted EBITDA to net income (loss):

The Company’s CODM does not receive information with a measure of total assets or capital expenditures for each operating segment as this information is not used for the evaluation of executive brand portfolio performance as the Company’s operations are not capital intensive. Capital expenditure information is provided to the CODM on a consolidated basis. Therefore, the Company has not provided asset and capital expenditure information by reportable segment. Intersegment revenues were immaterial for the three months ended ~~June~~September 30, 2022 and 2021. For the three months ended ~~June~~September 30, 2022 and 2021, substantially all revenues were derived from transactions in the United States.

Investment funds affiliated with Onex Corporation owned approximately ~~87.3%~~88.1% of the Company’s common stock on an as-converted basis as of ~~June~~September 30, 2022. Affiliates of Onex Corporation held a ~~49%~~48.0% ownership position in ASM Global (“ASM”), including SMG Food & Beverage, LLC, a wholly-owned subsidiary of ASM, which the Company has contracted with for catering services at certain of the Company’s trade shows and events and a ~~97%~~97.0% ownership position in Convex Group Ltd. (“Convex”), which is one of the insurers in the syndicate that provides the Company’s insurance coverage. Additionally, certain of the Company’s future tradeshows and other events may be held at facilities managed by ASM. The Company made payments of ~~$0.5~~$0.4 million and ~~$0.8~~$1.2 million to ASM and ASM managed facilities during the three and ~~six~~nine months ended ~~June~~September 30, 2022, respectively. The Company made payments of ~~$0.1~~$0.3 million and $0.4 million to ASM and ASM managed facilities during the three and ~~six~~nine months ended ~~June~~September 30, ~~2021.~~2021, respectively. The Company had 0zero and ~~$0.1~~$0.1 million due to ASM as of ~~June~~September 30, 2022 and December 31, 2021, respectively. The Company made payments of ~~$0.2 million~~zero and ~~$0.5~~$0.5 million to Convex during the three and ~~six~~nine months ended ~~June~~September 30, 2022, respectively. The Company made 0no payments to Convex for the three and ~~six~~nine months ended ~~June~~September 30, 2021. The Company had 0no accounts payable due to Convex as of ~~June~~September 30, 2022 and December 31, 2021.

Item 2.Management’s Discussion and ~~2021 coverage under those policies. As a result, the Company expects to record the proceeds~~Analysis of ~~$148.54 million as Other income, net during the third quarter~~Financial Condition and Results of ~~2022.~~Operations

This discussion and analysis of the financial condition and results of our operations should be read in conjunction with the unaudited condensed consolidated financial statements and related notes of Emerald Holding, Inc. included in Item 1 of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and the related notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”), as filed with the SEC. You should review the disclosures under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors” in the Annual Report, for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. All references to the “Company”, “us,” “we,” “our,” and all similar expressions are references to Emerald Holding, Inc., together with its consolidated subsidiaries, unless otherwise expressly stated or the context otherwise requires.

The following information has been adjusted to reflect the Q4 2021 revision of our condensed consolidated financial statements as described in Note 1, “Basis of Presentation”, in Notes to the Condensed Consolidated Financial Statements of this Quarterly Report.

Emerald is a leading operator of business-to-business trade shows in the United States. Leveraging our shows as key market-driven platforms, we combine our events with effective industry insights, digital tools, and data-focused solutions to create uniquely rich experiences. Emerald strives to build its customers’ businesses by creating opportunities that deliver tangible results.

All of our trade show franchises typically hold market-leading positions within their respective industry verticals, with significant brand value established over a long period of time. Each of our shows is typically held at least annually, with certain franchises offering multiple editions per year. As our shows are frequently the largest and most well attended in their respective industry verticals, we are able to attract high-quality attendees, including those who have the authority to make purchasing decisions on the spot or subsequent to the show. The participation of these attendees makes our trade shows “must-attend” events for our exhibitors, further reinforcing the leading positions of our trade shows within their respective industry verticals. Our attendees use our shows to fulfill procurement needs, source new suppliers, reconnect with existing suppliers, identify trends, learn about new products and network with industry peers, which we believe are factors that make our shows difficult to replace with non-face-to-face events. Our portfolio of trade shows is well-balanced and diversified across both industry sectors and customers.

In addition to organizing our trade shows, conferences and other events, we also operate content and content-marketing websites and related digital products, and produce publications, each of which is aligned with a specific event sector. We also offer business-to-business (“B2B”) commerce and digital merchandising solutions, serving the needs of manufacturers and retailers, through our Elastic Suite platform creating a digital year-round transactional platform for use by Emerald’s customers regardless of their location. In addition to their respective revenues, these products complement our live events by delivering year-round channels for customer acquisition and development.

As described in Note 15, Segment Information, to our condensed consolidated financial statements included herein, our business is organized into two reportable segments, consistent with the information provided to our Chief Executive Officer, who is considered the chief operating decision-maker ("CODM"). The CODM evaluates performance based on the results of seven executive brand portfolios, which represent our seven operating segments. Based on an evaluation of economic similarities and the nature of services and types of customers, five of these operating segments have been aggregated into two reportable segments, the Commerce reportable segment and the Design, Creative and Technology reportable segment. The remaining two operating segments do not meet the quantitative thresholds to be considered reportable segments and are included in the “All Other” category. In addition, we have a Corporate-Level Activities category consisting of finance, legal, information technology and administrative functions. Prior year disclosures below have been updated to reflect the current reportable segment structure described in Note 15, Segment Information.

The following discussion provides additional detailed disclosure for the two reportable segments, the All Other category and the Corporate-Level Activity category:

Commerce: This segment includes events and services covering merchandising, licensing, retail sourcing and marketing to enable professionals to make informed decisions and meet consumer demands.

Design, Creative and Technology: This segment includes events and services that support a wide variety of industries connecting businesses and professionals with products, operational strategies, and integration opportunities to drive new business and streamline processes and creative solutions.

All Other: This category consists of Emerald’s remaining operating segments, which provide diverse events, services and eCommerce software solutions but are not aggregated with the reportable segments. Each of the operating segments in the All Other category do not meet the criteria to be a separate reportable segment.

Corporate-Level Activity: This category consists of Emerald’s finance, legal, information technology and administrative functions.

We are primarily focused on generating organic growth by understanding and leveraging the drivers for increased exhibitor and attendee participation at trade shows and providing year-round services that provide incremental value to those customers. Creating new opportunities for exhibitors to influence their market, engage and transact with significant buyers, generate incremental sales and expand their brand’s awareness in their industry builds further demand for exhibit space and strengthens the value proposition of a trade show, generally allowing us to modestly increase booth space pricing annually across our portfolio. At the same time, our trade shows provide attendees with the opportunity to enhance their industry connectivity, develop relationships with targeted suppliers and distributors, discover new products, learn about new industry developments, celebrate their industry’s achievements and, in certain cases, obtain continuing professional education credits, which we believe increases their propensity to return and, consequently, drives high recurring participation among our exhibitors. By investing in and promoting these tangible and return-on-investment linked outcomes, we believe we will be able to continue to enhance the value proposition for our exhibitors and attendees alike, thereby driving strong demand and premium pricing for exhibit space, sponsorship opportunities, attendee registration and eCommerce software subscriptions.

We are also focused on growing our national footprint through the acquisition of high-quality events that are leaders in their specific industry verticals. Since the Onex Acquisition in June 2013, we have completed 2324 strategic acquisitions, with purchase prices, excluding the $335.0 million acquisition of George Little Management (“GLM”), ranging from approximately $5.0 million to approximately $151.1 million, and annual revenues ranging from approximately ~~$1.3~~$1.0 million to approximately $25.6 million. Historically, we have completed acquisitions at EBITDA purchase multiples that are typically in the mid-to-high single digits. Our acquisitions have historically been structured as asset deals that have resulted in the generation of long-lived tax assets, which in turn have reduced our purchase multiples when incorporating the value of the created tax assets. In the future, we intend to look for acquisitions with similarly attractive valuation multiples.

There are a number of existing and developing factors and trends which impact the performance of our business, and the comparability of our results from year to year and from quarter to quarter, including:

In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators of the financial condition and operating performance of our business are revenues, cost of revenues, selling, general and administrative expenses, interest expense, depreciation and amortization, income taxes, Adjusted EBITDA, and Free Cash Flow.

We generate revenues primarily from selling trade show exhibit space to exhibitors on a per square foot basis. Other trade show revenue streams include sponsorship, fees for ancillary exhibition services and attendee registration fees. Additionally, we generate revenue through a digital commerce platform, conferences, digital media, online webinars and print publications that complement our trade shows. We also engage third-party sales agents to support our marketing efforts. More than 95% of our sales are made by our employees, with less than 5% made by third-party sales agents.

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 and postponements 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 reflect a true comparison of the trends of the existing event calendar given changes in timing or strategy. Management and Emerald’s Board evaluate changes in Organic revenues to understand underlying revenue trends of its events. Organic revenue is not defined under accounting principles generally accepted in the United States of America (“GAAP”), and has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under GAAP. Some of these limitations include that Organic revenue reflects certain adjustments that we consider not to be indicative of our ongoing operating performance. Because not all companies use identical calculations, our presentation of Organic revenue may not be comparable to other similarly titled measures used by other companies.

The most directly comparable GAAP measure to Organic revenue is revenues. For a reconciliation of Organic revenues to revenues as reported, see Footnote 3 to the table under the heading “—“—Results of Operations— Three Months Ended ~~June~~September 30, 2022 compared to the Three Months Ended ~~June~~September 30, 2021”.

For the periods presented in this report, interest expense principally represents interest payments and certain other fees paid to lenders under our Amended and Restated Senior Secured Credit Facilities.

We have historically grown our business through acquisitions and, in doing so, have acquired significant intangible assets, the value of some of which is amortized over time. These acquired intangible assets, unless determined to be indefinite-lived, are amortized over periods of two to 30 years from the date of each acquisition or date of change in estimated useful life under GAAP, or fifteen years for tax purposes. This amortization expense reduces our taxable income.

Income tax expense consists of federal, state and local taxes based on income in the jurisdictions in which we operate.

We also record deferred tax charges or benefits primarily associated with our utilization or generation of net operating loss carryforwards and book-to-tax differences related to amortization of goodwill, amortization of intangible assets, depreciation, stock-based compensation charges and deferred financing costs.

Adjusted EBITDA is a key measure of our performance. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense, goodwill and intangible asset impairment charges, depreciation and amortization, stock-based compensation, deferred revenue adjustment, and other items that management believes are not part of our core operations. We present Adjusted EBITDA because we believe it assists investors and analysts in comparing our 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 our 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 performance metrics can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. We reference Adjusted EBITDA frequently in our decision-making because it provides supplemental information that facilitates internal comparisons to the historical operating performance of prior periods.

Adjusted EBITDA is not defined under GAAP, and has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under GAAP. Some of these limitations include that Adjusted EBITDA excludes certain normal recurring expenses and one-time cash adjustments that we consider not to be indicative of our ongoing operating performance. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.

The most directly comparable GAAP measure to Adjusted EBITDA is net income (loss). For a reconciliation of Adjusted EBITDA to net income (loss), see Footnote 2 to the table under the heading “—Results of Operations— Three Months Ended ~~June~~September 30, 2022 Compared to Three Months Ended ~~June~~September 30, 2021.”

We typically have favorable cash flow characteristics, as described below (see “—Cash Flows”), as a result of our high profit margins, low capital expenditures and generally negative working capital. Our working capital is negative as our current assets are generally lower than our current liabilities. Current assets primarily include accounts receivable and prepaid expenses, while current liabilities primarily include accounts payable, borrowings under our Amended and Restated Revolving Credit Facility (“Revolving Credit Facility”) and deferred revenues. Cash received prior to an event is recorded as deferred revenue on our balance sheet and recognized as revenue upon completion of each trade show. The implication of having negative working capital is that changes in working capital represent a source of cash as our business grows. As a result of COVID-19, the accounts receivable and deferred revenue balances related to cancelled events have been reclassified to Cancelled event liabilities in the condensed consolidated balance sheets, as the net amount represents balances which we expect will be refunded to our customers. We believe that our business interruption insurance proceeds will largely mitigate this liability.

The primary driver for our negative working capital is the sales cycle for a trade show, which typically begins during the twelve months prior to a show. In the interim period between the current show and the following show, we continue to sell to new and past exhibitors and collect payments on contracted exhibit space. Most of our exhibitors pay in full in advance of each trade

show, whereas the bulk of expenses are paid close to or after the show. Cash deposits start to be received as early as twelve months prior to a show taking place and the balance of booth space fees are typically received in cash one month prior to a show taking place. This highly efficient cash flow model, where cash is received in advance of expenses to be paid, creates a working capital benefit.

In addition to net cash provided by operating activities presented in accordance with GAAP, 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 for the repayment of indebtedness, paying of dividends, repurchasing of shares of our common stock and strategic initiatives, including investing in our business and making strategic acquisitions.

Free Cash Flow is a supplemental non-GAAP financial 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 net cash provided by operating activities or other measures determined in accordance with GAAP. Also, Free Cash Flow is not necessarily comparable to similarly titled measures used by other companies.

The most directly comparable GAAP measure to Free Cash Flow is net cash provided by operating activities. For a reconciliation of Free Cash Flow to net cash provided by operating activities, see Footnote 5 to the table under the heading “—Results of Operations— ~~Six~~Nine Months Ended ~~June~~September 30, 2022 Compared to ~~Six~~Nine Months Ended ~~June~~September 30, 2021.”

Three Months Ended ~~June~~September 30, 2022, Compared to Three Months Ended ~~June~~September 30, 2021

The tables in this section summarize key components of our results of operations for the periods indicated.

We define Adjusted EBITDA as net income (loss) before (i) interest expense, (ii) income tax (benefit) expense, (iii) goodwill impairment charges, (iv) intangible asset impairment charges, (v) depreciation and amortization, (vi) stock-based compensation, (vii) deferred revenue adjustment and (viii) other items that management believes are not part of our core operations. We present Adjusted EBITDA because we believe it assists investors and analysts in comparing

our 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 our Board of Directors use Adjusted EBITDA to assess our financial performance and believe they are helpful in highlighting trends because it excludes the results of decisions that are outside the control of management, while other performance metrics can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. We reference Adjusted EBITDA frequently in our decision-making because it provides supplemental information that facilitates internal comparisons to the historical operating performance of prior periods. Adjusted EBITDA is not defined under GAAP and has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under GAAP. Some of these limitations include that Adjusted EBITDA excludes certain normal recurring expenses and one-time cash adjustments that we consider not to be indicative of our ongoing operative performance. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.

~~(a)~~

Represents costs related to stock-based compensation associated with certain employees’ participation in the 2013 Stock Option Plan (“2013 Plan”), the 2017 Omnibus Equity Plan (the “2017 Plan”) and the 2019 Employee Stock Purchase Plan (the “ESPP”).

revenue trends of its events. Our presentation of Organic Revenue adjusts revenue for (i) acquisition revenue, (ii) discontinued events, (iii) COVID-19 cancellations, (iv) COVID-19 postponements and (v) scheduling adjustments.

~~(b)~~

Represents deferred revenue acquired in the PlumRiver Technologies (“PlumRiver”) acquisition that was marked down to the acquisition date fair value due to purchase accounting rules. If the business had been continuously owned by us throughout the quarter periods presented, the fair value adjustments of $0.2 million for PlumRiver for the three months ended June 30, 2022 and 2021, would not have been required and the revenues for the three months ended June 30, 2022 and 2021, would have been higher by $0.2 million.

~~(c)~~

Other items for the three months ended June 30, 2022 included: (i) $10.0 million in gains related to the remeasurement of contingent consideration, (ii) $2.0 million in transaction costs, primarily in connection with the MJBiz, Advertising Week and Bulletin acquisitions; (iii) $0.8 million in non-recurring legal, audit and consulting fees and (iv) $0.2 million in transition expenses. Other items for the three months ended June 30, 2021 included: (i) $1.1 million in expense related to the remeasurement of contingent consideration (ii) $1.2 million in non-recurring legal, audit and consulting fees (iii) $0.3 million in transition costs in connection with previous acquisitions (iv) $0.2 million in transaction costs in connection with PlumRiver LLC and Sue Bryce Education acquisitions.

~~(3)~~

In addition to revenues presented in accordance with GAAP, we present 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 reflect a true comparison of the trends of the existing event calendar given changes in timing or strategy. Management and Emerald’s Board evaluate changes in Organic revenues to understand underlying revenue trends of its events. Our presentation of Organic Revenue adjusts revenue for (i) acquisition revenue, (ii) discontinued events, (iii) COVID-19 cancellations, (iv) COVID-19 postponements and (v) scheduling adjustments.

Organic revenue is a supplemental non-GAAP financial measure of performance and is not based on any standardized methodology prescribed by GAAP. Organic revenue should not be considered in isolation or as an alternative to revenues or other measures determined in accordance with GAAP. Organic revenue is not defined under GAAP, and has limitations as an analytical tool, and you should not consider such measure either in isolation or as a substitute for analyzing our results as reported under GAAP. Some of these limitations include that Organic revenue reflects certain adjustments that we consider not to be indicative of our ongoing operating performance. Because not all companies use identical calculations, our presentation of Organic revenue may not be comparable to other similarly titled measures used by other companies.


	Three Months Ended September 30,
	2022			2021			Variance $			Variance %
	(unaudited) (dollars in millions)
Revenues	$	62.4		$	76.5		$	(14.1	)		(18.4	%)
Add (deduct):
Acquisition revenues		(2.6	)		—
COVID-19 prior year cancellations(a)		(3.2	)		—
COVID-19 prior year postponements(b)		—			(32.8	)
Scheduling adjustments		—			(1.3	)
Organic revenues	$	56.6		$	42.4		$	14.2			33.5	%

Three Months Ended
June 30,

2022

2021

Variance $

Variance %

(unaudited)
(dollars in millions)

Revenues

$
71.4

$
15.0

$
56.4

376.0
%
Add (deduct):

Acquisition revenues

(0.9
)

—

(0.9
)

COVID-19 prior year cancellations^(a)

(9.6
)

—

(9.6
)

COVID-19 postponements^(b)

(45.2
)

—

(45.2
)

Scheduling adjustments

—

(0.1
)

0.1

Organic revenues

$
15.7

$
14.9

$
0.8

5.4
%
(a)

Represents the increase in 2022 revenues as a result of events that staged in the current year and were cancelled due to COVID-19 in the prior year.

(b)

Represents the decrease in revenues from events that staged in the first half of 2022 but were postponed due to COVID-19 in the prior year and staged in the third quarter of 2021.

Revenues

~~(a)~~

~~Represents the increase in 2022 revenues as a result of events that staged in the current year and were cancelled due to COVID-19 in the prior year.~~

~~(b)~~

~~Represents the increase in revenues from events that staged in the first quarter of 2022 but were postponed to the second half of 2021 due to COVID-19.~~

~~Revenues~~

Revenues of ~~$71.4~~$62.4 million for the three months ended ~~June~~September 30, 2022 ~~increased $56.4~~decreased $14.1 million, from ~~$15.0~~$76.5 million for the comparable period in 2021, primarily due to a more normal schedule of live events trading during the quarter. See “Commerce Segment – Revenues,” “Design, Creative and Technology Segment – Revenues,” and “All Other Category – Revenues” below for a discussion of the factors contributing to the changes in total revenues.

Other Income, net

Other income, net of ~~$8.1~~$151.0 million during the three months ended ~~June~~September 30, 2022 increased ~~$5.8~~$149.9 million, from ~~$2.3~~$1.1 million in the comparable period in 2021. Other income, net was related to event cancellation insurance claims proceeds, all of which were received during the three months ended ~~June~~September 30, 2022. See “Commerce Segment – Other Income, net,” “Design, Creative and Technology Segment – Other Income, net,” and “All Other Category – Other Income, net” below for a discussion of other income, net by segment.

Cost of Revenues

Cost of revenues of ~~$26.4~~$22.7 million for the three months ended ~~June~~September 30, 2022 ~~increased $22.8~~decreased $11.0 million, from ~~$3.6~~$33.7 million for the comparable period in 2021, primarily due to a more normal schedule of live events trading during the quarter. See “Commerce Segment – Cost of Revenues,” “Design, Creative and Technology Segment – Cost of Revenues” and “All Other Category – Cost of Revenues” below for a discussion of the factors contributing to the changes in total cost of revenues.

Selling, General and Administrative Expense

Total selling, general and administrative expense consists primarily of compensation and employee-related costs, sales commissions and incentive plans, stock-based compensation expense, marketing expenses, information technology expenses, travel expenses, facilities costs, consulting fees and public reporting costs. Selling, general and administrative expenses of ~~$32.3~~$48.7 million for the three months ended ~~June~~September 30, 2022 ~~decreased $0.8~~increased $9.9 million, or ~~2.4%~~25.5%, from ~~$33.1~~$38.8 million for the comparable period in 2021. See “Commerce Segment – Selling, General and Administrative Expenses”, “Design, Creative and

Technology Segment – Selling, General and Administrative Expenses”, “All Other category – Selling, General and Administrative Expense” and “Corporate -– Selling, General and Administrative Expense” below for a discussion of the factors contributing to the changes in total selling, general and administrative expense.

Depreciation and Amortization Expense

Depreciation and amortization expense of ~~$14.0~~$14.7 million for the three months ended ~~June~~September 30, 2022, increased ~~$1.9~~$2.5 million, or ~~15.7%~~20.5% from ~~$12.1~~$12.2 million for the comparable period in 2021. See “Commerce Segment – Depreciation and Amortization Expense,” “Design, Creative and Technology Segment – Depreciation and Amortization Expense,” “All Other Category – Depreciation and Amortization Expense” and “Corporate – Depreciation and Amortization Expense” below for a discussion of the factors contributing to the changes in total depreciation and amortization expense.

Segment Results for the Three Months Ended ~~June~~September 30, 2022 Compared to Three Months Ended ~~June~~September 30, 2021

Commerce

The following represents the change in revenue, expenses and operating (loss) profit in the Commerce reportable segment for the three months ended ~~June~~September 30, 2022 and 2021:


	Three Months Ended June 30,										Three Months Ended September 30,
	2022		2021			Variance $		Variance %			2022		2021		Variance $			Variance %
	(unaudited) (dollars in millions)										(unaudited) (dollars in millions)
Revenues	$	19.7	$	3.8		$	15.9		418.4	%	$	33.9	$	38.8	$	(4.9	)		(12.6	%)
Other income, net		4.5		—			4.5		—			2.4		1.1		1.3			118.2	%
Cost of revenues		6.2		1.2			5.0		416.7	%		10.5		14.3		(3.8	)		(26.6	%)
Selling, general and administrative expense		8.0		5.2			2.8		53.8	%		9.9		8.4		1.5			17.9	%
Depreciation and amortization expense		9.9		6.0			3.9		65.0	%		8.1		5.9		2.2			37.3	%
Operating income (loss)	$	0.1	$	(8.6	)	$	8.7	NM
Operating income											$	7.8	$	11.3	$	(3.5	)		(31.0	%)

Revenues

During the three months ended ~~June~~September 30, 2022, revenues for the Commerce reportable segment ~~increased $15.9~~decreased $4.9 million, or ~~418.4%~~12.6%, to ~~$19.7~~$33.9 million from ~~$3.8~~$38.8 million for the comparable period in the prior year. The primary driver of the ~~increase~~decrease was ~~$14.7~~$11.5 million of prior year revenue generated by events that ~~staged in~~normally stage during the ~~second quarter~~first half of ~~2022~~the year but were ~~either cancelled in the prior year or~~ postponed to the ~~second half~~third quarter of 2021 due to COVID-19. Organic revenues increased by ~~$0.5~~$6.9 million, or ~~20.7%~~26.5%, to ~~$2.9~~$33.1 million from ~~$2.4~~$26.1 million for the comparable period in the prior year. This growth was driven by a ~~$0.5~~$7.1 million, or 28.5%, increase to $32.0 million from $24.9 million in trade show revenue from events that staged in the same period in both ~~periods, $0.4 million from a new event that launched in the second quarter of 2022~~years, offset by lower other marketing services revenues. The ~~remaining increase in revenues was attributable to the~~ acquisition of MJBiz generated incremental revenues of $0.8 million during the three months ended September 30, 2022. The Commerce reportable segment revenues were also reduced by a $1.1 million scheduling adjustment in ~~December 2021.~~ the third quarter of 2022.

Other Income, net

Other income, net of ~~$4.5~~$2.4 million was recorded for the Commerce reportable segment related to event cancellation insurance claims proceeds for the three months ended ~~June~~September 30, 2022. All of the ~~$4.5~~$2.4 million of other income, net for the Commerce reportable segment was received during the three months ended ~~June~~September 30, 2022. Other income, net of $1.1 million was recorded for the Commerce reportable segment related to event cancellation insurance proceeds during the quarter ended September 30, 2021. All of the $1.1 million of other income, net for the Commerce reportable segment was received during the three months ended September 30, 2021.

Cost of Revenues

During the three months ended ~~June~~September 30, 2022, cost of revenues for the Commerce reportable segment ~~increased $5.0~~decreased $3.8 million, or ~~416.7%~~26.6%, to ~~$6.2~~$10.5 million from ~~$1.2~~$14.3 million for the comparable period in the prior year. The primary driver of the ~~increase~~decrease was ~~$4.9~~$5.3 million of costs for events that ~~staged in~~normally stage during the ~~second quarter~~first half of ~~2022~~the year but were ~~either cancelled in the prior year period or~~ postponed to the ~~second half~~third quarter of 2021 due to ~~COVID-19.~~ COVID-19 and a $1.0 million decrease in event cancellation charges. Organic cost of revenues increased

by $2.6 million, or 35.1%, to $10.0 million from $7.4 million for the comparable period in the prior year. This growth was primarily driven by events that staged in same period in both years.

Selling, General and Administrative Expense

During the three months ended ~~June~~September 30, 2022, selling, general and administrative expense for the Commerce reportable segment increased ~~$2.8~~$1.5 million, or ~~53.8%~~17.9%, to ~~$8.0~~$9.9 million, from ~~$5.2~~$8.4 million for the comparable period in 2021. The primary driver of the increase was ~~higher selling and promotional expenses attributable to the return to a more regular event schedule and~~ expenses related to the acquisition of MJBiz in December ~~2021.~~2021, offset by lower promotional costs.

Depreciation and Amortization Expense

During the three months ended ~~June~~September 30, 2022, depreciation and amortization expense for the Commerce reportable segment increased ~~$3.9~~$2.2 million, or ~~65.0%~~37.3%, to ~~$9.9~~$8.1 million from ~~$6.0~~$5.9 million for the comparable period in 2021. The increase was driven by incremental amortization attributable to the December 2021 acquisition of MJBiz.

Design, Creative and Technology

The following represents the change in revenue, expenses and operating (loss) profit in the Design, Creative and Technology reportable segment for the three months ended ~~June~~September 30, 2022 and 2021:


	Three Months Ended June 30,											Three Months Ended September 30,
	2022		2021			Variance $			Variance %			2022			2021			Variance $			Variance %
	(unaudited) (dollars in millions)											(unaudited) (dollars in millions)
Revenues	$	47.6	$	8.3		$	39.3			473.5	%	$	23.0		$	34.8		$	(11.8	)		(33.9	%)
Other income, net		3.4		2.3			1.1			47.8	%
Cost of revenues		18.6		2.0			16.6			830.0	%		9.8			19.1			(9.3	)		(48.7	%)
Selling, general and administrative expense		10.6		7.8			2.8			35.9	%		10.7			11.1			(0.4	)		(3.6	%)
Depreciation and amortization expense		2.6		4.9			(2.3	)		(46.9	%)		5.0			4.9			0.1			2.0	%
Operating income (loss)	$	19.2	$	(4.1	)	$	23.3		NM
Operating loss												$	(2.5	)	$	(0.3	)	$	(2.2	)	NM

Revenues

During the three months ended ~~June~~September 30, 2022 revenues for the Design, Creative and Technology reportable segment ~~increased $39.3~~decreased $11.8 million, or ~~473.5%~~33.9%, to ~~$47.6~~$23.0 million, from ~~$8.3~~$34.8 million for the comparable period in 2021. The primary driver of the ~~increase~~decrease was ~~$39.6~~the non-recurrence of $21.3 million of prior year revenue generated by events that ~~staged in~~normally stage during the ~~second~~first half of the year but had been postponed to the third quarter of ~~2022 but~~2021 due to COVID-19 offset by $2.1 million in current year revenues from events that were ~~either~~ cancelled in the prior year ~~period or postponed to the second half of 2021~~ due to COVID-19. Organic revenues ~~decreased~~increased by ~~$0.3~~$5.5 million, or ~~4.0%~~42.9%, to ~~$7.6~~$18.4 million from ~~$7.9~~$12.9 million for the comparable period in the prior year. ~~The organic~~This growth was driven by a $4.8 million, or 78.7%, increase to $10.9 million from $6.1 million in trade show revenue ~~decrease was primarily attributable to~~from events that staged in the same period in both years and $1.3 million generated from two new event launches, offset by lower other marketing services revenues.

~~Other Income, net~~

~~Other income, net~~The acquisition of ~~$3.4~~Advertising Week in June 2022 generated incremental revenue of $1.8 million ~~was recorded for the Design, Creative and Technology reportable segment related to event cancellation insurance claims proceedsfor the three months ended June 30, 2022. All of the $3.4 million of other income, net for the Design, Creative and Technology reportable segment was received~~ during the three months ended ~~June~~September 30, 2022. Other income, net of $2.3 million was recorded for the Design, Creative and Technology reportable segment related to event cancellation insurance proceeds during the quarter ended June 30, 2021. All of the $2.3 million of other income, net for the Design, Creative and Technology reportable segment was received during the three months ended June 30, 2021.

Cost of Revenues

During the three months ended ~~June~~September 30, 2022, cost of revenues for the Design, Creative and Technology reportable segment ~~increased $16.6~~decreased $9.3 million, or ~~830.0%~~48.7%, to ~~$18.6~~$9.8 million from ~~$2.0~~$19.1 million for the comparable period in 2021. The ~~increase~~primary driver of the decrease was ~~attributable to~~the non-recurrence of $11.7 million of costs for events that ~~staged in~~normally stage during the ~~second~~first half of the year but had been postponed to the third quarter of ~~2022 but~~2021 due to COVID-19 and a $1.9 million decrease in event cancellation charges during the three months ended September 30, 2022. These declines were ~~either~~partially offset by $0.8 million in current year costs from events that were cancelled in the prior year ~~or postponed to the second half of 2021~~ due to COVID-19. Organic cost of revenues increased by $2.3 million, or 51.1%, to $6.8 million from $4.5 million for the comparable period in the prior year. This growth was primarily driven by trade shows that staged in the same period in both years and the launch of two new events during the three months ended September 30, 2022. The acquisition of Advertising Week in June 2022 generated $1.3 million of incremental cost of revenues during the three months ended September 30, 2022.

Selling, General and Administrative Expense

During the three months ended ~~June~~September 30, 2022, selling, general and administrative expense for the Design, Creative and Technology reportable segment ~~increased $2.8~~decreased $0.4 million, or ~~35.9%~~3.6%, to ~~$10.6~~$10.7 million from ~~$7.8~~$11.1 million for the comparable period in 2021. The primary driver of the ~~increase~~decrease was lower higher selling, promotional and travel expenses ~~attributable to~~partly offset by incremental expense from the ~~return to a more regular event schedule.~~acquisition of Advertising Week.

Depreciation and Amortization Expense

During the three months ended ~~June~~September 30, 2022, depreciation and amortization expense for the Design, Creative and Technology reportable segment ~~decreased $2.3~~increased $0.1 million, or ~~46.9%~~2.0%, to ~~$2.6~~$5.0 million from $4.9 million for the comparable

period in 2021. The ~~decrease~~increase was ~~primarily related~~driven by incremental amortization attributable to the ~~impairment~~June 2022 acquisition of ~~definite-lived intangible assets in the Design, Creative and Technology reportable segment during the three months ended December 31, 2021.~~ Advertising Week.

All Other Category

The following represents the change in revenue, expenses and operating loss in the All Other category for the three months ended ~~June~~September 30, 2022 and 2021:


	Three Months Ended June 30,												Three Months Ended September 30,
	2022			2021			Variance $			Variance %			2022			2021			Variance $			Variance %
	(unaudited) (dollars in millions)												(unaudited) (dollars in millions)
Revenues	$	4.1		$	2.9		$	1.2			41.4	%	$	5.5		$	2.9		$	2.6			89.7	%
Other income, net		0.2			—			0.2			—
Cost of revenues		1.6			0.4			1.2			300.0	%		2.4			0.3			2.1		NM
Selling, general and administrative expense		5.7			3.2			2.5			78.1	%		6.3			3.4			2.9			85.3	%
Depreciation and amortization expense		0.8			0.7			0.1			14.3	%		0.9			0.7			0.2			28.6	%
Operating loss	$	(3.8	)	$	(1.4	)	$	(2.4	)		171.4	%	$	(4.1	)	$	(1.5	)	$	(2.6	)		173.3	%

Revenues

During the three months ended ~~June~~September 30, 2022 revenues for the All Other category increased ~~$1.2~~$2.6 million, or ~~41.4%~~89.7%, to ~~$4.1~~$5.5 million from $2.9 million for the comparable period in 2021. The primary drivers of the increase were ~~$0.7~~$1.0 million of additional software subscription revenues as well as ~~$0.5~~$0.9 million in revenue generated by events that staged in the ~~second~~third quarter of 2022 but were cancelled due to COVID-19 in the ~~second~~third quarter of 2021.

~~Other Income, net~~

~~Other income, net of $0.2 million was recorded for the All Other category related to~~ A newly launched event ~~cancellation insurance claims proceeds, which were paid by the insurance provider during the quarter ended June 30, 2022. All of the $0.2~~generated $0.8 million of ~~other income, net for the All Other category was received~~incremental revenue during the three months ended ~~June~~September 30, 2022.

Cost of Revenues

During the three months ended ~~June~~September 30, 2022, cost of revenues for the All Other category increased ~~$1.2~~$2.1 million ~~or 300.0%,~~ to ~~$1.6~~$2.4 million from ~~$0.4~~$0.3 million for the comparable period in 2021. The primary drivers of the increase were ~~$0.4~~$0.6 million of expense related to the Company's software subscription business, $0.9 million for events that staged in the ~~second~~third quarter of 2022 but ~~were~~had been cancelled due to COVID-19 in the ~~second~~third quarter of 2021 and ~~$0.8~~$0.6 million related to the ~~Company’s software subscription business.~~aforementioned newly launched event.

Selling, General and Administrative Expense

During the three months ended ~~June~~September 30, 2022, selling, general and administrative expense for the All Other category increased ~~$2.5~~$2.9 million, or ~~78.1%~~85.3%, to ~~$5.7~~$6.3 million from ~~$3.2~~$3.4 million for the comparable period in 2021. The increase was primarily related to growth in the Company’s software subscription business as well as the continued ramp of the Xcelerator division.

Depreciation and Amortization Expense

During the three months ended ~~June~~September 30, 2022 depreciation and amortization expense for the All Other category increased ~~$0.1~~$0.2 million, or ~~14.3%~~28.6%, to ~~$0.8~~$0.9 million from $0.7 million for the comparable period in 2021.

Corporate Category

The following represents the change in operating expenses in the Corporate category for the three months ended ~~June~~September 30, 2022 and 2021:

	Three Months Ended June 30,
	2022		2021		Variance $			Variance %			Three Months Ended September 30,
	(unaudited) (dollars in millions)										2022		2021			Variance $		Variance %
											(unaudited) (dollars in millions)
Other income, net											$	148.6	$	—		$	148.6	NM
Selling, general and administrative expense		8.0		16.9		(8.9	)		(52.7	%)		21.8	$	15.9			5.9		37.1	%
Depreciation and amortization expense		0.7		0.5		0.2			40.0	%		0.7		0.7			—		—
Total operating expenses	$	8.7	$	17.4	$	(8.7	)		(50.0	%)
Operating income (loss)											$	126.1	$	(16.6	)	$	142.7	NM

~~Selling, General and Administrative Expense~~Other Income, net

During the three months ended ~~June~~September 30, 2022 other income, net for the Corporate category was $148.6 million and was related to a one-time insurance litigation settlement. The one-time settlement payment was not specifically attributable to any of the Company's outstanding event cancellation insurance claims and therefore was not recorded at the segment level.

Selling, General and Administrative Expense

During the three months ended September 30, 2022 selling, general and administrative expense for the Corporate category ~~decreased $8.9~~increased $5.9 million, or ~~52.7%~~37.1%, to ~~$8.0~~$21.8 million from ~~$16.9~~$15.9 million for the comparable period in 2021. The ~~decrease~~increase was primarily ~~attributable~~ to higher one-time transaction and insurance settlement related costs, offset by contingent consideration adjustments recorded during the three months ended ~~June~~September 30, 2022.

Depreciation and Amortization Expense

During the three months ended ~~June~~September 30, 2022 depreciation and amortization expense for the Corporate category ~~increased $0.2 million, or 40.0%, to~~was $0.7 million ~~from $0.5 million~~ for ~~the comparable period~~both periods in 2022 and 2021.

Interest Expense

Interest expense of ~~$4.6~~$6.8 million for the three months ended ~~June~~September 30, 2022 increased ~~$0.5~~$2.9 million, or ~~12.2%~~74.4%, from ~~$4.1~~$3.9 million for the comparable period in 2021. The increase is attributable to a higher effective interest rate of ~~3.26%~~4.83% on our outstanding indebtedness for the three months ended ~~June~~September 30, 2022 compared to ~~2.60%~~2.59% for the comparable period in the prior year.

Provision for Income Taxes

For the three months ended ~~June~~September 30, 2022, the Company recorded a provision for income taxes of ~~$2.9~~$28.2 million which resulted in an effective tax rate of ~~125.5%~~23.3% for the three months ended ~~June~~September 30, 2022. The Company recorded a ~~provision for~~benefit from income taxes of ~~$10.9~~$2.0 million and an effective tax rate of ~~negative 30.5%~~17.5% for the three months ended ~~June~~September 30, 2021. The change in the effective tax rate for the three months ended ~~June~~September 30, 2022 is attributable to ~~differences in pre-tax book income (loss) positions in comparison to~~the timing of current period and full year projected ~~results and changes in permanent book-to-tax differences (e.g., nondeductible officer compensation, goodwill impairment, and changes in valuation allowance).~~results.

Net ~~Loss~~Income (Loss)

Net ~~loss~~income of ~~$0.7~~$93.0 million for the three months ended ~~June~~September 30, 2022 represented a ~~$45.8~~$102.0 million improvement from net loss of ~~$46.5~~$9.0 million for the comparable period in 2021. The key driver of the improvement was the ~~increase in revenue and~~recognition of other income, net of $151.0 million related to event cancellation insurance litigation settlement and event cancellation insurance claim proceeds ~~as well as lower provision for income taxes, partly offset by higher cost of revenues~~ during the three months ended ~~June~~September 30, 2022.

Adjusted EBITDA

Adjusted EBITDA of ~~$15.6~~$149.7 million for the three months ended ~~June~~September 30, 2022 increased by ~~$29.2~~$141.1 million, from negative ~~$13.6~~$8.6 million for the comparable period in 2021. The increase in Adjusted EBITDA was primarily attributable to a ~~$45.8~~$102.0 million ~~improvement~~increase in net ~~loss~~income described above, as well as higher addbacks for income taxes, interest expense, depreciation and amortization and one-time costs, offset by lower add-backs ~~for other items primarily due to adjustments to the fair value of contingent consideration,~~ stock-based ~~compensation and benefit from income taxes during the period. These were partly offset by higher add-backs for interest expense and depreciation and amortization.~~compensation.

~~Six~~Nine Months Ended ~~June~~September 30, 2022 Compared to ~~Six~~Nine Months Ended ~~June~~September 30, 2021

The tables in this section summarize key components of our results of operations for the periods indicated.


	Nine Months Ended September 30,
	2022		2021			Variance $		Variance %
	(unaudited) (dollars in millions)
Statement of income (loss) and comprehensive income (loss) data:
Revenues	$	232.3	$	104.4		$	127.9	NM
Other income, net		182.8		17.5			165.3	NM
Cost of revenues		83.3		41.3			42.0	NM
Selling, general and administrative expenses(1)		127.6		102.7			24.9		24.2	%
Depreciation and amortization expense		43.0		36.1			6.9		19.1	%
Goodwill impairment charge(2)		6.3		—			6.3	NM
Intangible asset impairment charges(3)		1.6		—			1.6	NM
Operating income (loss)		153.3		(58.2	)		211.5		(363.4	%)
Interest expense		15.5		12.0			3.5		29.2	%
Interest income		1.1		0.1			1.0	NM
Other expense		0.2		0.1			0.1	NM
Income (loss) before income taxes		138.7		(70.2	)		208.9		(297.6	%)
Provision for income taxes		30.3		0.6			29.7		4950.0	%
Net income (loss) and comprehensive income (loss)	$	108.4	$	(70.8	)	$	179.2		(253.1	%)

Other financial data (unaudited):
Adjusted EBITDA(4)	$	214.5	$	(6.4	)	$	220.9	NM
Free Cash Flow(5)	$	191.2	$	32.1		$	159.1		495.6	%
Organic revenue(6)	$	152.2	$	107.0		$	45.2		42.2	%

Six Months Ended
June 30,

2022

2021

Variance $

Variance %

(unaudited)
(dollars in millions)

Statement of income (loss) and comprehensive
income (loss) data:

Revenues

$
169.9

$
27.9

$
142.0

NM

Other income, net

31.8

16.4

15.4

NM

Cost of revenues

60.6

7.6

53.0

NM

Selling, general and administrative expenses⁽¹⁾

78.9

63.9

15.0

23.5
%
Depreciation and amortization expense

28.3

23.9

4.4

18.4
%
Goodwill impairment charge⁽²⁾

6.3

—

6.3

NM

Intangible asset impairment charges⁽³⁾

1.6

—

1.6

NM

Operating income (loss)

26.0

(51.1
)

77.1

(150.9
%)
Interest expense

8.5

8.1

0.4

4.9
%
Income (loss) before income taxes

17.5

(59.2
)

76.7

(129.6
%)
Provision for income taxes

2.1

2.6

(0.5
)

(19.2
%)
Net income (loss) and comprehensive income (loss)

$
15.4

$
(61.8
)

$
77.2

(124.9
%)

Other financial data (unaudited):

Adjusted EBITDA⁽⁴⁾

$
64.9

$
(16.1
)

$
81.0

NM

Free Cash Flow⁽⁵⁾

$
40.3

$
24.4

$
15.9

65.2
%
Organic revenue⁽⁶⁾

$
38.0

$
29.0

$
9.0

31.0
%
(1)

Selling, general and administrative expenses for the nine months ended September 30, 2022 and 2021 included $4.9 million and $5.6 million, respectively, in acquisition-related transaction, transition and integration costs, including legal and advisory fees. Also included in selling, general and administrative expenses for the nine months ended September 30, 2022 and 2021 were stock-based compensation expenses of $5.0 million and $8.2 million, respectively.

(2)

Goodwill impairment charge for the nine months ended September 30, 2022 and 2021 represents a non-cash charge of $6.3 million and zero, respectively.

(3)

Intangible asset impairment charges for the nine months ended September 30, 2022 and 2021 represent non-cash charges of $1.6 million and zero for certain indefinite-lived intangible assets and definite-lived intangible assets, respectively, in connection with the Company’s interim testing of intangibles for impairment.

(4)

For a definition of Adjusted EBITDA and the reasons management uses this metric, see footnote 2 to the table under the heading “— Results of Operations — Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021.”


	Nine Months Ended September 30,
	2022		2021
	(unaudited)
	(dollars in millions)
Net income (loss)	$	108.4	$	(70.8	)
Add:
Interest expense, net		14.4		11.9
Provision for income taxes		30.3		0.6
Goodwill impairment charge(a)		6.3		—
Intangible asset impairment charge(b)		1.6		—
Depreciation and amortization expense		43.0		36.1
Stock-based compensation expense(c)		5.0		8.2
Deferred revenue adjustment(d)		0.6		1.4
Other items(e)		4.9		5.6
Scheduling adjustments		—		0.6
Adjusted EBITDA	$	214.5	$	(6.4	)
Deduct:
Event cancellation insurance proceeds		182.8		17.5
Adjusted EBITDA excluding event cancellation insurance proceeds	$	31.7	$	(23.9	)

~~(1)~~

Selling, general and administrative expenses for the six months ended June 30, 2022 and 2021 included a credit of $1.4 million and $4.0 million, respectively, in acquisition-related transaction, transition and integration costs, including legal and advisory fees. Also included in selling, general and administrative expenses for the six months ended June 30, 2022 and 2021 were stock-based compensation expenses of $3.7 million and $5.8 million, respectively.

(a)

Represents non-cash goodwill impairment charges for the nine months ended September 30, 2022, in connection with the Company’s interim testing of goodwill for impairment.

~~(2)~~

~~Goodwill impairment charge for the six months ended June 30, 2022 and 2021 represents a non-cash charge of $6.3 million and zero.~~

(b)

Represents non-cash intangible asset impairment charges for the nine months ended September 30, 2022, in connection with the Company’s interim testing of intangibles for impairment.

~~(3)~~

Intangible asset impairment charges for the six months ended June 30, 2022 and 2021 represent non-cash charges of $1.6 million and zero for certain indefinite-lived intangible assets and definite-lived intangible assets, respectively, in connection with the Company’s interim testing of intangibles for impairment.

(c)

Represents costs related to stock-based compensation associated with certain employees’ participation in the 2013 Plan, the 2017 Plan and the ESPP.

~~(4)~~

For a definition of Adjusted EBITDA and the reasons management uses this metric, see footnote 2 to the table under the heading “— Results of Operations — Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021.”

(d)

Represents deferred revenue acquired in the PlumRiver acquisition that was marked down to the acquisition date fair value due to purchase accounting rules. If the business had been continuously owned by us throughout the periods presented, the fair value adjustments of $0.6 million and $1.4 million for PlumRiver for the nine months ended September 30, 2022 and 2021, respectively, would not have been required and the revenues for the nine months ended September 30, 2022 and 2021, would have been higher by $0.6 million and $1.4 million, respectively.

(e)

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) $3.4 million in transaction costs, primarily in connection with the MJBiz, Advertising Week and Bulletin acquisitions; (iii) $2.0 million in non-recurring legal, audit and consulting fees; (iv) $1.9 million in transition expenses and (v) $7.0 million in insurance litigation settlement related expenses. Other items for the nine months ended September 30, 2021 included: (i) $2.6 million in expense related to the remeasurement of contingent consideration; (ii) $2.2 million in non-recurring legal, audit and consulting fees; (iii) $0.4 million in transition costs in connection with previous acquisitions and (iv) $0.4 million in transaction costs in connection with PlumRiver LLC, EDspaces and Sue Bryce Education acquisitions.

Six Months Ended
June 30,

2022

2021

(unaudited)

(dollars in millions)

Net income (loss)

$
15.4

$
(61.8
)
Add:

Interest expense

8.5

8.1

Provision for income taxes

2.1

2.6

Goodwill impairment charge^(a)

6.3

—

Intangible asset impairment charge^(b)

1.6

—

Depreciation and amortization expense

28.3

23.9

Stock-based compensation expense^(c)

3.7

5.8

Deferred revenue adjustment^(d)

0.4

1.1

Other items^(e)

(1.4
)

4.0

Scheduling adjustments

—

0.2

Adjusted EBITDA

$
64.9

$
(16.1
)
Deduct:

Event cancellation insurance proceeds

31.8

16.4

Adjusted EBITDA excluding event cancellation insurance proceeds

$
33.1

$
(32.5
)
(5)

In addition to net cash provided by operating activities presented in accordance with GAAP, 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 for the repayment of indebtedness and strategic initiatives, including investing in our business, payment of dividends, making strategic acquisitions and strengthening our balance sheet.

~~(a)~~

~~Represents non-cash goodwill impairment charges for the six months ended June 30, 2022, in connection with the Company’s interim testing of goodwill for impairment.~~

~~(b)~~

~~Represents non-cash intangible asset impairment charges for the six months ended June 30, 2022, in connection with the Company’s interim testing of intangibles for impairment.~~

~~(c)~~

~~Represents costs related to stock-based compensation associated with certain employees’ participation in the 2013 Plan, the 2017 Plan and the ESPP.~~

~~(d)~~

Represents deferred revenue acquired in the PlumRiver acquisition that was marked down to the acquisition date fair value due to purchase accounting rules. If the business had been continuously owned by us throughout the quarter periods presented, the fair value adjustments of $0.4 million and $1.1 million for PlumRiver for the six months ended June 30, 2022 and 2021, respectively, would not have been required and the revenues for the six months ended June 30, 2022 and 2021, would have been higher by $0.4 million and $1.1 million, respectively.

~~(e)~~

Other items for the six months ended June 30, 2022 included: (i) $5.8 million in gains related to the remeasurement of contingent consideration, (ii) $2.9 million in transaction costs, primarily in connection with the MJBiz, Advertising Week and Bulletin acquisitions; (iii) $1.2 million in non-recurring legal, audit and consulting fees and (iv) $0.3 million in transition expenses. Other items for the six months ended June 30, 2021 included: (i) $1.5 million in expense related to the remeasurement of contingent consideration (ii) $1.8 million in non-recurring legal, audit and consulting fees (iii) $0.3 million in transition costs in connection with previous acquisitions (iv) $0.4 million in transaction costs in connection with PlumRiver, EDspaces and Sue Bryce Education acquisitions.

~~(5)~~

In addition to net cash provided by operating activities presented in accordance with GAAP, 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 for the repayment of indebtedness and strategic initiatives, including investing in our business, payment of dividends, making strategic acquisitions and strengthening our balance sheet.

flows from operating activities or other measures determined in accordance with GAAP. Also, Free Cash Flow is not necessarily comparable to similarly titled measures used by other companies.


	Nine Months Ended September 30,
	2022		2021
	(unaudited)
	(dollars in millions)
Net Cash Provided by Operating Activities		198.7	$	36.3
Less:
Capital expenditures		7.5		4.2
Free Cash Flow	$	191.2	$	32.1

Six Months Ended
June 30,

2022

2021

(unaudited)

(dollars in millions)

Net Cash Provided by Operating Activities

$
45.2

$
26.7

Less:

Capital expenditures

4.9

2.3

Free Cash Flow

$
40.3

$
24.4

(6)

For a definition of Adjusted Organic revenue and the reasons management uses this metric, see Footnote 3 to the table under the heading “—Results of Operations—Three Months Ended September 30, 2022 Compared to Three Months Ended September 30, 2021”


	Nine Months Ended September 30,
	2022			2021		Variance $		Variance %
	(unaudited) (dollars in millions)
Revenues	$	232.3		$	104.4	$	127.9		122.5	%
Add (deduct):
Acquisition revenues		(4.8	)		—
COVID-19 prior year cancellations(a)		(75.3	)		—
Scheduling adjustments		—			2.6
Organic revenues	$	152.2		$	107.0	$	45.2		42.2	%

(a)

Represents the increase in 2022 revenues as a result of events that staged in the current year and were cancelled due to COVID-19 in the prior year.

(b)

Represents the increase in revenues from events that staged in the second quarter of 2022 but were also postponed and staged in the second half of 2021 due to COVID-19.

Revenues

~~(6)~~

For a definition of Adjusted Organic revenue and the reasons management uses this metric, see Footnote 3 to the table under the heading “—Results of Operations—Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021.”

Six Months Ended
June 30,

2022

2021

Variance $

Variance %

(unaudited)
(dollars in millions)

Revenues

$
169.9

$
27.9

$
142.0

509.0
%
Add (deduct):

Acquisition revenues

(2.1
)

—

(2.1
)

COVID-19 prior year
cancellations^(a)

(72.3
)

—

(72.3
)

COVID-19 postponements^(c)

(57.5
)

—

(57.5
)

Scheduling adjustments

—

1.1

(1.1
)

Organic revenues

$
38.0

$
29.0

$
9.0

31.0
%

~~(a)~~

~~Represents the increase in 2022 revenues as a result of events that staged in the current year and were cancelled due to COVID-19 in the prior year.~~

~~(b)~~

~~Represents the increase in revenues from events that staged in the second quarter of 2022 but were also postponed and staged in the second half of 2021 due to COVID-19.~~

~~Revenues~~

Revenues of ~~$169.9~~$232.3 million for the ~~six~~nine months ended ~~June~~September 30, 2022 increased ~~$142.0~~$127.9 million, from ~~$27.9~~$104.4 million for the comparable period in 2021, primarily due to a more normal schedule of live events trading during 2022. See “Commerce Segment – Revenues,” “Design and Technology Segment – Revenues,” and “All Other Category – Revenues” below for a discussion of the factors contributing to the changes in total revenues.

Other Income, net

For the ~~six~~nine months ended ~~June~~September 30, 2022, other income, net of ~~$31.8~~$182.8 million was recorded related to event cancellation insurance claims proceeds, all of which was received during the period. ~~Other~~During the prior year period, other income, net of ~~$16.4~~$17.5 million was recorded related to event cancellation insurance claims proceeds, all of which was received during the ~~six~~nine months ended ~~June~~September 30, 2021. See “Commerce Segment – Revenues,” “Design and Technology Segment – Revenues,” and “All Other Category – Revenues” below for a discussion of other income, net by segment.

Cost of Revenues

Cost of revenues of ~~$60.6~~$83.3 million for the ~~six~~nine months ended ~~June~~September 30, 2022 increased ~~$53.0~~$42.0 million, from ~~$7.6~~$41.3 million for the comparable period in 2021, primarily due to a more normal schedule of live events trading during 2022. See “Commerce Segment – Cost of Revenues,” “Design and Technology Segment – Cost of Revenues” and “All Other Category – Cost of Revenues” below for a discussion of the factors contributing to the changes in total cost of revenues.

Selling, General and Administrative Expense

Total selling, general and administrative expenses consist primarily of compensation and employee-related costs, sales commissions and incentive plans, stock-based compensation expense, marketing expenses, information technology expenses, travel expenses, facilities costs, consulting fees and public reporting costs. Selling, general and administrative expenses of ~~$78.9~~$127.6 million for the ~~six~~nine months ended ~~June~~September 30, 2022 increased ~~$15.0~~$24.9 million, or ~~23.5%~~24.2%, from ~~$63.9~~$102.7 million for the comparable period in 2021. See “Commerce Segment – Selling, General and Administrative Expenses”, “Design and Technology Segment – Selling, General and Administrative Expenses”, “All Other category – Selling, General and Administrative Expenses” and “Corporate -– Selling, General and Administrative Expenses” below for a discussion of the factors contributing to the changes in total selling, general and administrative expenses.

Depreciation and Amortization Expense

Depreciation and amortization expense of ~~$28.3~~$43.0 million for the ~~six~~nine months ~~June~~ended September 30, 2022 increased ~~$4.4~~$6.9 million, or ~~18.4%~~19.1%, from ~~$23.9~~$36.1 million for the comparable period in 2021. See “Commerce Segment – Depreciation and Amortization Expense,” “Design and Technology Segment – Depreciation and Amortization Expense,” “All Other Category – Depreciation and Amortization Expense” and “Corporate – Depreciation and Amortization Expense” below for a discussion of the factors contributing to the changes in total depreciation and amortization expense.

Goodwill Impairment

During the ~~six~~nine months ended ~~June~~September 30, 2022, in connection with the change in operating segments that resulted in a change in reporting units, we performed an interim goodwill impairment assessment. As a result of this assessment, the Company recorded a $6.3 million non-cash goodwill impairment charge. The impairment consisted of the write-down of goodwill, equal to the excess carrying value of goodwill above fair value, of all of the reporting units included in our Design, Creative and Technology reportable segment and the All Other category. See “Design, Creative and Technology Segment – Goodwill Impairment,” and “All Other Category – Goodwill Impairment” below for further discussion of goodwill impairment. No goodwill impairment charges were recorded during the ~~six~~nine months ended ~~June~~September 30, 2021.

Intangible Asset Impairment

Due to the change in operating segments described above, management performed impairment assessments of our indefinite-lived intangible assets during the ~~six~~nine months ended ~~June~~September 30, 2022. These assessments resulted in the recognition of a non-cash impairment charge of $1.6 million, which included non-cash impairment charges for certain of our indefinite-lived trade name intangible assets. See “Design, Creative and Technology Segment – Intangible Asset Impairments,” below for further discussion of total intangible asset impairments. No intangible asset impairment charges were recorded during the ~~six~~nine months ended ~~June~~September 30, 2021.

Segment Results for the ~~Six~~Nine Months Ended ~~June~~September 30, 2022 Compared to ~~Six~~Nine Months Ended ~~June~~September 30, 2021

Commerce

The following represents the change in revenue, expenses and operating loss in the Commerce reportable segment for the ~~six~~nine months ended ~~June~~September 30, ~~2021~~2022 and ~~2020:~~2021:


	Six Months Ended June 30,											Nine Months Ended September 30,
	2022		2021			Variance $			Variance %			2022		2021		Variance $		Variance %
	(unaudited) (dollars in millions)											(unaudited) (dollars in millions)
Revenues	$	76.4	$	9.5		$	66.9			704.2	%	$	110.3	$	48.3	$	62.0		128.4	%
Other income, net		5.6		6.7			(1.1	)		(16.4	%)		8.0		7.8		0.2		2.6	%
Cost of revenues		21.8		3.0			18.8			626.7	%		32.3		17.3		15.0		86.7	%
Selling, general and administrative expenses		18.4		10.6			7.8			73.6	%		28.3		19.0		9.3		48.9	%
Depreciation and amortization expense		15.8		12.0			3.8			31.7	%		23.9		17.9		6.0		33.5	%
Operating income (loss)	$	26.0	$	(9.4	)	$	35.4		NM
Operating income												$	33.8	$	1.9	$	31.9	NM

Revenues

~~Revenues~~

During the ~~six~~nine months ended ~~June~~September 30, 2022, revenues for the Commerce reportable segment increased ~~$66.9~~$62.0 million, or ~~704.2%~~128.4%, to ~~$76.4~~$110.3 million from ~~$9.5~~$48.3 million for the comparable period in the prior year. The primary driver of the increase was ~~$59.5~~$39.1 million of revenue generated by events that staged during the ~~six~~nine months ended ~~June~~September 30, 2022 but were ~~either~~ cancelled in the prior year ~~or postponed to the second half of 2021~~ due to COVID-19. Organic revenues increased by ~~$5.5~~$21.4 million, or ~~85.7%~~48.6%, to ~~$12.0~~$65.4 million from ~~$6.5~~$44.0 million for the comparable period in the prior year. This growth was driven by a ~~$3.8~~$19.9 million, or 49.7%, increase to $60.1 million from $40.2 million in trade show revenue from events that staged in the same period in both ~~periods~~years and $2.0 million from two new events that launched in the first half of 2022, offset by lower other marketing services revenues. The remaining increase ~~in revenues~~ was attributable to $2.6 million of incremental revenues from the acquisition of MJBiz in December 2021. The Commerce reportable segment revenues were also impacted by a $1.1 million scheduling adjustment in the nine months ended September 30, 2022.

Other Income, net

During the ~~six~~nine months ended ~~June~~September 30, 2022 other income, net for the Commerce reportable segment ~~decreased $1.1~~increased $0.2 million, or ~~16.4%~~2.6%, to ~~$5.6~~$8.0 million from ~~$6.7~~$7.8 million for the comparable period in the prior year. Other income, net for both nine-month periods related to event cancellation insurance claim proceeds received or confirmed by the insurance provider during the period. All event cancellation insurance proceeds recognized as other income, net for the Commerce reportable segment during the ~~six~~nine months ended ~~June~~September 30, 2022 were received during the period. All of the ~~$6.7~~$7.8 million, of event cancellation insurance proceeds recognized as other income, net during the ~~six~~nine months ended ~~June~~September 30, 2021 were received during the period.

Cost of Revenues

During the ~~six~~nine months ended ~~June~~September 30, 2022, cost of revenues for the Commerce reportable segment increased ~~$18.8~~$15.0 million, or ~~626.7%~~86.7%, to ~~$21.8~~$32.3 million from ~~$3.0~~$17.3 million for the comparable period in the prior year. The primary driver of the increase was ~~$16.5~~$10.0 million of costs for events that staged induring the ~~second quarter of~~nine month ended September 30, 2022 but were ~~either~~ cancelled in the prior year ~~period or postponed to the second half of 2021~~ due to COVID-19. Organic cost of revenues increased by ~~$1.7~~$4.5 million, or ~~87.1%~~29.8%, to ~~$3.6~~$19.6 million from ~~$1.9~~$15.1 million for the comparable period in the prior year. This growth was primarily driven by events that staged in the same period in both years and two new events that launched in the first half of 2022. The remaining increase in revenues was attributable to the acquisition of MJBiz in December 2021.

Selling, General and Administrative Expense

During the ~~six~~nine months ended ~~June~~September 30, 2022, selling, general and administrative expenses for the Commerce reportable segment increased ~~$7.8~~$9.3 million, or ~~73.6%~~48.9%, to ~~$18.4~~$28.3 million from ~~$10.6~~$19.0 million for the comparable period in 2021. The primary

driver of the increase was ~~higher travel, selling and promotional expenses attributable to the return to a more regular event schedule and expenses related to~~driven by the acquisition of MJBiz in December ~~2021.~~2021 as well as higher promotional, salaries and commission expenses.

Depreciation and Amortization Expense

During the ~~six~~nine months ended ~~June~~September 30, 2022, depreciation and amortization expense for the Commerce reportable segment increased ~~$3.8~~$6.0 million, or ~~31.7%~~33.5%, to ~~$15.8~~$23.9 million from ~~$12.0~~$17.9 million for the comparable period in 2021. The increase was driven by incremental amortization attributable to the December 2021 acquisition of MJBiz.

Design, Creative and Technology

The following represents the change in revenue, expenses and operating loss in the Design and Technology reportable segment for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021:


	Six Months Ended June 30,										Nine Months Ended September 30,
	2022		2021			Variance $		Variance %			2022		2021			Variance $		Variance %
	(unaudited) (dollars in millions)										(unaudited) (dollars in millions)
Revenues	$	85.1	$	13.2		$	71.9		544.7	%	$	108.1	$	48.0		$	60.1		125.2	%
Other income, net		25.3		9.2			16.1		175.0	%		25.3		9.2			16.1		175.0	%
Cost of revenues		35.1		4.0			31.1		777.5	%		44.9	23.1				21.8		94.4	%
Selling, general and administrative expenses		21.0		15.3			5.7		37.3	%		31.6	26.4				5.2		19.7	%
Depreciation and amortization expense		9.5		9.5			—		—			14.6	14.4				0.2		1.4	%
Goodwill impairment charge		5.8		—			5.8	NM				5.8		—			5.8	NM
Intangible asset impairment charges		1.6		—			1.6	NM				1.6		—			1.6	NM
Operating loss	$	37.4	$	(6.4	)	$	43.8	NM
Operating income (loss)											$	34.9	$	(6.7	)	$	41.6	NM

Revenues

During the ~~six~~nine months ended ~~June~~September 30, 2022 revenues for the Design, Creative and Technology reportable segment increased ~~$71.9~~$60.1 million, or ~~544.7%~~125.2%, to ~~$85.1~~$108.1 million from ~~$13.2~~$48.0 million for the comparable period in 2021. The primary driver of the increase was ~~$69.1~~$34.4 million of revenue generated by events that staged during the ~~six~~nine months ended ~~June~~September 30, 2022 but were ~~either~~ cancelled in the prior year ~~period or postponed to the second half of 2021~~ due to COVID-19. ~~Acquisitions that closed in the prior year generated $1.0 million of incremental revenues during the six months ended June 30, 2022.~~ Organic revenues increased by ~~$0.6~~$19.8 million, or ~~4.6%~~41.8%, to ~~$13.4~~$67.2 million from ~~$12.8~~$47.4 million for the comparable period in the prior year. ~~The organic revenue increase~~This growth was primarily ~~attributable~~driven by a $17.9 million, or 60.5%, increase to ~~higher revenues generated by several small~~$47.4 million from $29.5 million in trade show revenue from events that staged in the same period in both years and $1.3 million from two new events that launched in the ~~current and prior years.~~first half of 2022. The remaining increase was attributable to $2.2 million of incremental revenues from the acquisition of Advertising Week in June 2022. Revenues ~~during the six months ended June 30, 3022 were~~ also ~~impacted by several small~~include $3.6 million from events that staged ~~later~~during the nine months ended September 30, 2022, but staged in the ~~prior year.~~ fourth quarter of 2021.

Other Income, net

During the ~~six~~nine months ended ~~June~~September 30, 2022 other income, net for the Design, Creative and Technology reportable segment increased ~~$21.2~~$16.1 million, or 175.0%, to $25.3 million from $9.2 million for the comparable period in the prior year. Other income, net for both ~~six-month~~nine-month periods related to event cancellation insurance claim proceeds received or confirmed by the insurance provider during the period. All event cancellation insurance proceeds recognized as other income, net for the Design, Creative and Technology reportable segment during the ~~six~~nine months ended ~~June~~September 30, 2022 were received during the period. All event cancellation insurance proceeds recognized as other income, net for the Design, Creative and Technology reportable segment during the ~~six~~nine months ended ~~June~~September 30, 2021 were received during the period.

Cost of Revenues

During the ~~six~~nine months ended ~~June~~September 30, 2022 cost of revenues for the Design, Creative and Technology reportable segment increased ~~$31.1~~$21.8 million, or ~~777.5%~~94.4%, to ~~$35.1~~$44.9 million from ~~$4.0~~$23.1 million for the comparable period in 2021. The primary driver of the increase was ~~$29.9~~$13.0 million of cost of revenue generated by events that staged during the ~~six~~nine months ended ~~June~~September 30, 2022 but were ~~either~~ cancelled in the prior year ~~period or postponed to the second half of 2021~~ due to COVID-19. Organic cost of revenues increased by ~~$0.2~~$6.2 million, or ~~5.9%~~32.0%, to ~~$2.7~~$25.6 million from ~~$2.5~~$19.4 million for the comparable period in the prior year. ~~The organic cost of revenue increase~~This growth was primarily ~~attributable to higher revenues generated~~ driven

by ~~several small~~ events that staged in the same period in both years and two new events that launched in the ~~current and prior years. Cost~~first half of 2022. The remaining increase in cost of revenues ~~during~~was attributable to the ~~six months ended~~acquisition of Advertising Week in June ~~30, 2022 were~~2022. Design, Creative and Technology segment cost of revenues also ~~impacted by several small~~include $2.2 million from events that staged ~~later~~during the nine months ended September 30, 2022, but staged in the ~~prior year.~~ fourth quarter of 2021.

Selling, General and Administrative Expense

During the ~~six~~nine months ended ~~June~~September 30, 2022 selling, general and administrative expenses for the Design, Creative and Technology reportable segment increased ~~$5.7~~$5.2 million, or ~~37.3%~~19.7%, to ~~$21.0~~$31.6 million from ~~$15.3~~$26.4 million for the comparable

period in ~~2020.~~2021. The primary driver of the increase was driven by the acquisition of Advertising Week in June 2022 as well as higher ~~selling,~~ promotional, salaries and ~~travel expenses attributable to the return to a more regular event schedule.~~commission expenses.

Depreciation and Amortization Expense

Depreciation and amortization expense for the Design, Creative and Technology reportable segment was ~~$9.5~~$14.6 million and $14.4 million for ~~both~~ the ~~six-month periods~~nine months ended ~~June~~September 30, 2022 and ~~June 30, 2021.~~ 2021, respectively.

Goodwill Impairment

Due to the change in operating segments and reporting units described in Note 6, Intangible Assets and Goodwill, above, management was required to perform an interim goodwill impairment assessment of its old and new reporting units during the ~~six~~nine months ended ~~June~~September 30, 2022. As a result of this assessment, a $5.8 million non-cash goodwill impairment charge was recorded in connection with reporting units under the Design, Creative and Technology reportable segment. No goodwill impairment charges were recorded in the Design, Creative and Technology reportable segment during the ~~six~~nine months ended ~~June~~September 30, 2021.

Intangible Asset Impairments

In connection with the change in operating segments described above, management performed impairment assessments of indefinite-lived intangible assets during the ~~six~~nine months ended ~~June~~September 30, 2022, and as a result, recognized a non-cash impairment charge related to certain indefinite-lived intangible assets under the Design, Creative and Technology reportable segment of $1.6 million. No intangible asset impairment charges were recorded in the Design, Creative and Technology reportable segment during the ~~six~~nine months ended ~~June~~September 30, 2021.

All Other Category

The following represents the change in revenue, expenses and operating loss in the All Other category for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021:


	Six Months Ended June 30,												Nine Months Ended September 30,
	2022			2021			Variance $			Variance %			2022			2021			Variance $			Variance %
	(unaudited) (dollars in millions)												(unaudited) (dollars in millions)
Revenues	$	8.4		$	5.2		$	3.2			61.5	%	$	13.9		$	8.1		$	5.8			71.6	%
Other income, net		0.9			0.5			0.4			80.0	%		0.9			0.5			0.4			80.0	%
Cost of revenues		3.7			0.6			3.1			516.7	%		6.1		0.9				5.2		NM
Selling, general and administrative expenses		11.1			5.9			5.2			88.1	%		17.3		9.4				7.9			84.0	%
Depreciation and amortization expense		1.6			1.4			0.2			14.3	%		2.5		2.1				0.4			19.0	%
Goodwill impairment charge		0.5			—			0.5		NM				0.5			—			0.5		NM
Operating loss	$	(7.6	)	$	(2.2	)	$	(5.4	)		245.5	%	$	(11.6	)	$	(3.8	)	$	(7.8	)		205.3	%

Revenues

During the ~~six~~nine months ended ~~June~~September 30, 2022 revenues for the All Other category increased ~~$3.2~~$5.8 million, or ~~61.5%~~71.6%, to ~~$8.4~~$13.9 million from ~~$5.2~~$8.1 million for the comparable period in 2021. ~~The primary drivers of~~Organic revenues increased by $4.1 million, or 51.9%, to $12.0 million from $7.9 million for the comparable period in the prior year. This growth was primarily driven by a $2.8 million,

or 35.9%, increase ~~were $1.8~~to $10.7 million ~~of additional~~from $7.9 million in software subscription revenue and $1.2 million from new events launched by the Company's Xcelerator division. All other category revenues ~~as well as $1.4~~also increased by $1.9 million ~~in revenue generated by~~from events that staged induring the ~~second quarter of~~nine months ended September 30, 2022 but were cancelled in the prior year due to ~~COVID-19 in the second quarter of 2021.~~COVID-19.

Other Income, net

During the ~~six~~nine months ended ~~June~~September 30, 2022 other income, net for the All Other category increased $0.4 million, or 80.0%, to $0.9 million from $0.5 million for the comparable period in the prior year. Other income, net for both ~~six-month~~nine-month periods related to event cancellation insurance claim proceeds received during the period.

Cost of Revenues

During the ~~six~~nine months ended ~~June~~September 30, 2022, cost of revenues for the All Other category increased ~~$3.1~~$5.2 million ~~or 516.7%,~~ to ~~$3.7~~$6.1 million from ~~$0.6~~$0.9 million for the comparable period in 2021. The primary drivers of the increase were ~~$1.3 million of costs for events that staged in the second quarter of 2022 but were cancelled due to COVID-19 in the second quarter of 2021 and $1.5~~$2.1 million of costs related to the growth of the ~~Company’s~~Company's software subscription ~~business.~~business, $1.9 million related to the events that staged in the current year but were cancelled in the prior year due to COVID-19 and $1.1 million of costs related to new event launches.

Selling, General and Administrative Expense

During the ~~six~~nine months ended ~~June~~September 30, 2022 selling, general and administrative expenses for the All Other category increased ~~$5.2~~$7.9 million, or ~~88.1%~~84.0%, to ~~$11.1~~$17.3 million from ~~$5.9~~$9.4 million for the comparable period in 2021. The increase in selling, general and administrative expense was primarily driven by higher costs associated with the growth of the Company’s software subscription business and as well as the continued ramp of the Xcelerator division.

Depreciation and Amortization Expense

During the ~~six~~nine months ended ~~June~~September 30, 2022 depreciation and amortization expense for the All Other category increased ~~$0.2~~$0.4 million, or ~~14.3%~~19.0%, to ~~$1.6~~$2.5 million from ~~$1.4~~$2.1 million for the comparable period in 2021. ~~The increase was attributable to definite-lived intangible assets acquired in the Sue Bryce acquisition.~~

~~Goodwill Impairment~~

~~Due to the change in operating segments and reporting units described in Note 6,~~ ~~Intangible Assets and Goodwill~~, above, management was required to perform an interim goodwill impairment assessment of its old and new reporting units during the six months ended June 30, 2022. As a result of this assessment, a $0.5 million non-cash goodwill impairment charge was recorded in connection with reporting units under the All Other category. No goodwill impairment charges were recorded in the All Other category during the six months ended June 30, 2021.

Corporate Category

The following represents the change in operating expenses in the Corporate category for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021:

	Six Months Ended June 30,
	2022		2021		Variance $			Variance %			Nine Months Ended September 30,
	(unaudited) (dollars in millions)										2022		2021			Variance $		Variance %
											(unaudited) (dollars in millions)
Other income, net											$	148.6	$	—		$	148.6	NM
Selling, general and administrative expenses		28.4		32.1		(3.7	)		(11.5	%)		50.4	47.9				2.5		5.2	%
Depreciation and amortization expense		1.4		1.0		0.4			40.0	%		2.0	1.7				0.3		17.6	%
Total operating expenses	$	29.8	$	33.1	$	(3.3	)		(10.0	%)
Operating income (loss)											$	96.2	$	(49.6	)	$	145.8	NM

Other Income, net

During the nine months ended September 30, 2022 other income, net for the Corporate category was $148.6 million and was related to a one-time insurance litigation settlement. The one-time settlement payment was not specifically attributable to any of the Company's outstanding event cancellation insurance claims and therefore was not recorded at the segment level.

Selling, General and Administrative Expense

During the ~~six~~nine months ended ~~June~~September 30, 2022 selling, general and administrative expenses for the Corporate category decreased ~~$3.7~~$2.5 million, or ~~11.5%~~5.2%, to ~~$28.4~~$50.4 million from ~~$32.1 million for the comparable period in 2021. The decrease was primarily attributable to gains related to the remeasurement of contingent consideration.~~

~~Depreciation and Amortization Expense~~

During the six months ended June 30, 2022 depreciation and amortization expense for the Corporate category increased $0.4 million, or 40.0%, to $1.4 million from $1.0 million for the comparable period in 2021.

~~Interest Expense~~

~~Interest expense of $8.5 million for the six months ended June 30, 2022 increased $0.4 million, or 4.9%, from $8.1~~$47.9 million for the comparable period in 2021. The increase was primarily attributable to ~~a decrease~~higher salary and bonus expense offset by gains attributable to the remeasurement of contingent consideration.

Depreciation and Amortization Expense

During the nine months ended September 30, 2022 depreciation and amortization expense for the Corporate category increased $0.3 million, or 17.6%, to $2.0 million from $1.7 million for the comparable period in 2021.

Interest Expense, net

Interest expense, net of $15.5 million for the nine months ended September 30, 2022 increased $3.5 million, or 29.2%, from $12.0 million for the comparable period in 2021. The increase was primarily attributable to an increase in the variable interest rate on our

Amended and Restated Term Loan Facility, for which the average rate during the ~~six~~nine months ended ~~June~~September 30, 2022 was ~~2.95%~~3.59%, compared to ~~2.62%~~2.61% during the ~~six~~nine months ended ~~June~~September 30, 2021. The increase in interest expense was offset by interest income of $1.1 million during the nine months ended September 30, 2022.

Provision for Income Taxes

For the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, the Company recorded a provision for income taxes of ~~$2.1~~$30.3 million and ~~$2.6~~$0.6 million, respectively, which resulted in an effective tax rates of ~~11.1%~~21.8% and negative ~~4.3%~~0.9% for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively. The change in the effective tax rate for the ~~six~~nine months ended ~~June~~September 30, ~~2021~~2022 is attributable to the timing of current period and full year projected results.

Net Income / (Loss)

Net income of ~~$15.4~~$108.4 million for the ~~six~~nine months ended ~~June~~September 30, 2022 represented a ~~$77.2~~$179.2 million improvement from net loss of ~~$61.8~~$70.8 million for the comparable period in 2021. Key drivers of the year-over-year increase were an increase in revenues of ~~$142.0~~$127.9 million and other income, net of ~~$15.4~~$165.3 million offset by increases in cost of revenues of ~~$53.0~~$42.0 million, a $29.7 million increase in provision for income taxes, selling, general and administrative expenses of ~~$15.0 million, non-cash goodwill of $6.3~~$24.9 million, depreciation and amortization of ~~$4.4~~$6.9 million, non-cash goodwill change of $6.3 million and non-cash intangible asset impairment charges of $1.6 million.

Adjusted EBITDA

Adjusted EBITDA of ~~$64.9~~$214.5 million for the ~~six~~nine months ended ~~June~~September 30, 2022 increased by ~~$81.0~~$220.9 million, from Adjusted EBITDA of negative ~~$16.1~~$6.4 million for the comparable period in 2021. The increase in Adjusted EBITDA, was mainly driven by ~~higher operating~~the $179.2 million increase in net income ~~generated by 59 live events the Company staged~~described above during the ~~six~~nine months ended ~~June~~September 30, 2022, as well as higher ~~other~~addbacks for income ~~net from cancellation insurance policy claims proceeds, partly~~taxes, interest expense, depreciation and amortization and one-time costs offset by ~~gains related to the remeasurement of contingent consideration.~~lower addbacks for stock-based compensation.

Liquidity and Capital Resources

The unprecedented and rapid spread of COVID-19 and the related government restrictions and social distancing measures implemented in the United Stated and throughout the world significantly impacted Emerald’s business from mid-March 2020 through the end of fiscal year 2021. Late in the second quarter of 2021, management began to see the positive impacts of successful vaccination rollouts in many countries, with social distancing restrictions easing and live events resuming in the United States. In the second half of 2021, Emerald’s live events business experienced a meaningful restart with the successful execution of 56 in-person events, serving more than 129,000 attendees and 7,500 exhibiting companies. We entered 2022 planning to stage a full slate of events and successfully traded 5984 in-person events during the ~~half~~first nine months of the year, serving more than ~~203,000~~282,300 attendees and ~~9,400~~13,300 exhibiting companies. While we have been able to resume our full schedule of events in the first quarter of 2022, the ongoing effects of COVID-19 on our operations have had, and will continue to have, a significant negative impact on our financial results and liquidity, and such negative impact may continue beyond the containment of the COVID-19 pandemic.

The assumptions used to estimate ~~our~~the Company’s liquidity are subject to greater uncertainty because ~~we had~~the Company has never previously cancelled or postponed all upcoming events for a period of over a year due to a pandemic. Management cannot estimate with certainty whether event exhibitors and attendees will attend ~~our~~the Company’s events in numbers similar to pre-pandemic editions now that ~~they are~~our events have fully resumed. Therefore, current estimates of revenues and the associated impact on liquidity could differ significantly in the future.

~~We continue~~51

On August 3, 2022, the Company reached an agreement to ~~pursue full recovery for~~settle outstanding insurance litigation relating to event cancellation insurance ~~claims relating to events originally scheduled to stage in 2020 and 2021. To date, we have submitted claims related to impacted or cancelled events previously scheduled to take place in 2020 and 2021~~for proceeds of ~~$166.4 million and $182.0 million, respectively.~~$148.6 million. Other income, net recognized ~~to date,~~through September 30, 2022 related to insurance claim and settlement proceeds received ~~or confirmed on the claims related to events previously scheduled to take place in 2020 and 2021,~~ totaled ~~$148.6 million and $67.5 million, respectively.~~$367.1 million. During the three and ~~six~~nine months ended ~~June~~September 30, 2022, we recorded ~~Other~~other income, net of ~~$8.1~~$151.0 million and ~~$31.8~~$182.8 million, respectively, related to event cancellation insurance claim proceeds deemed to be realizable by management. All of the other income, net recognized during the three and ~~six~~nine months ended ~~June~~September 30, 2022 was received during the period. During the three and ~~six~~nine months ended ~~June~~September 30, 2021, we recorded other income, net of ~~$2.3~~$1.1 million and ~~$16.4~~$17.5 million, respectively, related to event cancellation insurance claim proceeds deemed to be realizable by management. All of the other income, net recognized during the three and ~~six~~nine months ended ~~June~~September 30, 2021 was received during the period. ~~Outstanding claims are subject to review and adjustment and there is no guarantee or assurance as to the amount or timing of future recoveries from Emerald’s event cancellation insurance policy.~~

Emerald’s renewed event cancellation insurance policies for the year 2022 do not cover losses due to event cancellations caused by the outbreak of communicable diseases, including COVID-19. The aggregate limit for our renewed 2022 primary event cancellation insurance policy is $100.0 million. We have also obtained a similar separate event cancellation insurance policy for the Surf Expo Winter 2022 and Surf Expo Summer 2022 shows, with a coverage limit of $8.4 million and $6.5 million, for each respective event.

On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which provides for the ability of employers to delay payment of employer payroll taxes during 2020 after the date of enactment. The Company deferred the payment of more than $1.9 million of employer payroll taxes otherwise due in 2020, with 50% repaid in December 2021 and the remaining 50% due by December 31, 2022.

As of ~~June~~September 30, 2022, the Company had ~~$516.8~~$515.3 million of borrowings outstanding under the Amended and Restated Term Loan Facility and no borrowings outstanding under the Revolving Credit Facility. In addition, as of ~~June~~September 30, 2022, the Company had cash and cash equivalents of ~~$181.7~~$366.1 million. As of ~~June~~September 30, 2022, the Company was in compliance with the covenants contained in the Amended and Restated Senior Secured Credit Facilities.

Based on these actions, assumptions regarding the impact of COVID-19, and ~~expected~~receipt of insurance recoveries, management believes that the Company’s current financial resources will be sufficient to fund its liquidity requirements for the next twelve months.

Share Repurchase Plan

On October 5, 2020, our Board authorized and approved a new $20.0 million share repurchase program (the “October 2020 share repurchase program”). Share repurchases may be made from time to time through and including December 31, 2021, subject to early termination or extension by the Board, through open market purchases, block transactions, privately negotiated purchases or ~~otherwise~~. otherwise. We settled the repurchase of ~~982,622~~ 1,590,030 shares and ~~726,895~~ 1,193,861 shares of our common stock for ~~$3.4~~ $5.9 million and ~~$3.9~~ $5.5 million during the three months ended ~~June~~September 30,, 2022 and ~~June~~September 30, 2021,, respectively. We settled the repurchase of ~~1,238,206~~ 2,828,236 shares and ~~929,103~~2,122,964 shares of our common stock for ~~$4.3~~ $10.2 million and ~~$5.1~~ $10.7 million during the ~~six~~nine months ended ~~June~~September 30,, 2022 and ~~June~~September 30, 2021, respectively.~~, respectively.~~ There was ~~$14.1~~$9.2 million remaining available for share repurchases under the October 2020 Share Repurchase Program as of ~~June~~September 30, 2022.

On October 29, 2021, our Board approved extension and expansion of the October 2020 share repurchase program, which allows for the repurchase of $20.0 million of our Common Stock through December 31, 2022. On October 26, 2022, our Board approved the extension and expansion of the October 2020 share repurchase program, which allows for the repurchase of $20.0 million of our Common Stock through December 31, 2023, subject to early termination or extension by the Board. The share repurchase program may be suspended or discontinued at any time without notice.

Suspension of Dividend Policy

On March 20, 2020, due to the negative impact of COVID-19 on our business, the Board temporarily suspended the Company’s regular quarterly cash dividend on its common stock. The payment of dividends in future quarters is subject to the discretion of our Board and depending upon our results of operations, cash requirements, financial condition, contractual restrictions, restrictions imposed by applicable laws and other factors that our Board may deem relevant.

Our business is conducted through our subsidiaries. Dividends, distributions and other payments from, and cash generated by, our subsidiaries will be our principal sources of cash to repay indebtedness, fund operations and pay dividends. Accordingly, our ability to pay dividends to our stockholders is dependent on the earnings and distributions of funds from our subsidiaries. In addition, the covenants in the agreements governing our existing indebtedness, including the Amended and Restated Senior Secured Credit Facilities, significantly restrict the ability of our subsidiaries to pay dividends or otherwise transfer assets to us. us. We cannot assure you that we will resume paying dividends on our common stock in the future, and our indebtedness could limit our ability to pay dividends on our common stock.

Cash Flows

The following table summarizes the changes to our cash flows for the periods presented:


	Six Months Ended June 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(unaudited) (dollars in millions)						(unaudited) (dollars in millions)
Statement of Cash Flows Data
Net cash provided by operating activities	$	45.2		$	26.7		$	198.7		$	36.3
Net cash used in investing activities	$	(83.3	)	$	(9.3	)	$	(45.1	)	$	(11.1	)
Net cash used in financing activities	$	(11.4	)	$	(9.9	)	$	(18.7	)	$	(16.9	)

Operating Activities

Operating activities consist primarily of net income (loss) adjusted for non-cash items that include depreciation and amortization, deferred income taxes, amortization of deferred financing fees and debt discount, stock-based compensation, provision for credit losses and goodwill and intangible asset impairment charges, plus the effect of changes during the period in our working capital.

Net cash provided by operating activities for the ~~six~~nine months ended ~~June~~September 30, 2022 was ~~$45.2~~$198.7 million, as compared to net cash provided by operating activities of ~~$26.7~~$36.3 million for the ~~six~~nine months ended ~~June~~September 30, 2021. Cash provided by operating activities primarily reflects the increase in our net income of ~~$77.2~~$179.2 million, ~~and increases in non-cash items of $1.0 million. These were~~ partly offset by an increase in cash used in working capital of ~~$59.7~~$16.8 million in the ~~six~~nine months ended ~~June~~September 30, 2022. Net income (loss) plus non-cash items provided operating cash flows of ~~$52.2~~$159.4 million and cash outflows of ~~$26.1~~$19.8 million for the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively. Cash provided by operating activities reflects the ~~usage~~generation of ~~$6.9~~$39.3 million and generation of ~~$52.8~~$56.1 million for working capital in the ~~six~~nine months ended ~~June~~September 30, 2022 and 2021, respectively.

Investing Activities

Investing activities generally consist of business acquisitions and purchases of other productive assets, investments in information technology and capital expenditures to furnish or upgrade our offices.

Net cash used in investing activities for the ~~six~~nine months ended ~~June~~September 30, 2022 increased ~~$74.0~~$34.0 million to ~~$83.3~~$45.1 million from ~~$9.3~~$11.1 million in the comparable period in the prior year. The increase was primarily attributable to the ~~purchase~~acquisitions of ~~$50.0 million in marketable securities, and an acquisition of a business~~two businesses for ~~$24.8~~$37.6 million as well as investments in information technology during the current year.

Financing Activities

Financing activities primarily consist of proceeds from issuance of preferred stock, borrowing and repayments on our debt to fund business acquisitions and our operations, payments of dividends prior to the suspension of the dividend policy and proceeds from the issuance of common stock associated with stock option exercises.

Net cash used in financing activities for the ~~six~~nine months ended ~~June~~September 30, 2022 increased ~~$1.5~~$1.8 million to ~~$11.4~~$18.7 million, compared to ~~$9.9~~$16.9 million for the ~~six~~nine months ended ~~June~~September 30, 2021. The increase was due to higher payments of contingent consideration for acquisition of businesses offset by lower cash outflow for deferred consideration for acquisition of business as well as common stock repurchases during the ~~six~~nine months ended ~~June~~September 30, 2022.

Free Cash Flow

Free Cash Flow for the ~~six~~nine months ended ~~June~~September 30, 2022 increased ~~$15.9~~$159.1 million, to ~~$40.3~~$191.2 million from an inflow of ~~$24.4~~$32.1 million for the comparable period in the prior year.

Free Cash Flow is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Free Cash Flow, see Footnote 5 to the table under the heading “—Results of Operations—~~Six~~Nine Months Ended ~~June~~September 30, 2022 Compared to ~~Six~~Nine Months Ended ~~June~~September 30, 2021.”

Contractual Obligations and Commercial Commitments

There have been no material changes to the contractual obligations as disclosed in the Company’s Annual Report on Form 10-K, filed with the SEC on February ~~22,~~24, 2022, which is accessible on the SEC’s website at www.sec.gov, other than those made in the ordinary course of business.

Goodwill and Intangible Assets

Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the assets acquired and liabilities assumed resulting from acquisitions. Goodwill and indefinite-lived intangible assets are not amortized but instead tested for impairment at least annually or more frequently should an event or circumstances indicate that a reduction in fair value may have occurred. We test for impairment of goodwill and indefinite-lived intangible assets on October 31 of each year, or more frequently if events and circumstances warrant. During the first quarter of 2022, we had a change in operating segments which resulted in a change in reporting units. We reassigned goodwill to the updated reporting units using a relative fair value approach. In relation to this change, we performed a quantitative assessment of the fair value of our goodwill as of January 31, 2022 using an income approach with assumptions that are considered ~~level~~Level 3 inputs and concluded that the carrying value of two reporting units exceeded their respective fair values, resulting in a goodwill impairment of $6.3 million. Long-lived assets other than goodwill held and used by the Company, including property and equipment and long-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. During the first quarter of 2022, in conjunction with the change in reporting units, management concluded that the carrying value of one of its reporting units exceeded its fair value. As a result, management determined this circumstance to be a triggering event for the asset groups associated with this reporting unit, and after performing an interim impairment assessment, we recognized an impairment charge of $1.6 million related to its indefinite-lived intangible assets during the first quarter of 2022. There can be no assurance that we will not be required to recognize additional impairment charges in future periods, including in connection with the impairment test on January 31, or as a result of future impairment tests that may be required based on specific events and circumstances. Such events and circumstances may include the decision to cancel or postpone future live events, a significant change in our business climate, the ongoing impacts associated with the COVID-19 pandemic, economic and industry trends, legal factors, negative operating performance indicators, significant competition or changes in strategy. If the trading price of our common stock decreases significantly we may be required to recognize a non-cash charge relating to impairment of our goodwill and intangible assets, and any such charge may be material in the period in which it is recognized. A prolonged or significant decline in our stock price or market capitalization could be an indicator of goodwill and intangible asset impairment and constitute a triggering event that would require an interim assessment for potential goodwill and intangible asset impairment.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with GAAP requires the appropriate application of certain accounting policies, some of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements. Since future events and their impact cannot be determined with absolute certainty, the actual results will inevitably differ from our estimates.

We believe the application of our accounting policies, and the estimates inherently required therein, are reasonable. Our accounting policies and estimates are reevaluated on an ongoing basis and adjustments are made when facts and circumstances dictate a change. We base our estimates and judgments on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions and conditions. We considered the impacts of the COVID-19 pandemic on our significant estimates and judgments used in applying our accounting policies for the period ended ~~June~~September 30, 2022. However, in light of the pandemic, there is a high degree of uncertainty in applying these judgments and depending on the duration and severity of the pandemic, changes to our estimates and judgments could result in meaningful impacts to our financial statements in future periods.

The policies and estimates discussed below involve the selection or application of alternative accounting policies that are material to our consolidated financial statements. With respect to critical accounting policies, even a relatively minor variance between actual and expected experience can potentially have a materially favorable or unfavorable impact on subsequent results of operations.

Our accounting policies are more fully described in Note 1, Basis of Presentation, in the notes to our audited consolidated financial statements included in the Annual Report. Management has discussed the selection of these critical accounting policies and estimates with members of our Board of Directors. Given the current impacts to our business, there is a higher degree of uncertainty as to the long-term impacts to our cash flow projections and discount rates used for determining the

recoverability of goodwill and intangible assets. Changes to key assumptions, market trends, or continued impacts of

macroeconomic events could produce test results in the future that differ, and we could be required to record an impairment charge. There have been no significant changes in the critical accounting policies and estimates described in the Annual Report.

Recently Issued Accounting Pronouncements

See Item 1 of Part I, “Financial ~~Statements~~—Statements—Note 2 – Recent Accounting Pronouncements.”

Recently Adopted Accounting Pronouncements

See Item 1 of Part I, “Financial ~~Statements~~—Statements—Note 2 – Recent Accounting Pronouncements.”

Jumpstart Our Business Act of 2012

We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, which we refer to as the JOBS Act. We would cease to be an emerging growth company upon the earliest of: (i) the last day of the first fiscal year in which our annual gross revenues are $1.07 billion or more; (ii) the end of any fiscal year in which the market value of our common stock held by non-affiliates exceeded $700 million as of the end of the second quarter of that fiscal year; (iii) the date on which we have, during the previous three-year period, issued more than $1.07 billion in non-convertible debt securities or (iv) the last day of the fiscal year ending December 31, 2022. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. We have elected to take advantage of these reduced disclosure obligations and may elect to take advantage of other reduced reporting obligations in the future. The Company expects to cease to qualify as a emerging growth company on the last day of the fiscal year ending December 31, 2022.

The JOBS Act permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have chosen to irrevocably “opt out” of this provision and, as a result, we will comply with new or revised accounting standards when they are required to be adopted by public companies.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

~~Item 3.~~

~~Quantitative and Qualitative Disclosures About Market Risk~~

Market risk is the potential loss arising from adverse changes in market rates and prices. Our primary exposure to market risk is interest rate risk associated with our Amended and Restated Senior Secured Credit Facilities. See Note 7, Debt, in the notes to the condensed consolidated financial statements for further description of our Amended and Restated Senior Secured Credit Facilities.

Recently, interest rates have remained at relatively low levels on a historical basis and the Federal Reserve maintained the federal funds target range at 0.0% to 0.25% for much of 2021. However, in March 2022, the Federal Reserve approved a 0.25% rate increase, and in each of June, July and September of 2022, it approved a further 0.75% rate increase. The Federal Reserve has indicated that, in light of increasing signs of inflation, it foresees further increases in interest rates throughout the year and into 2023 and 2024.

As of ~~June~~September 30, 2022, we had ~~$516.8~~$515.3 million of variable rate borrowings outstanding under our Amended and Restated Senior Secured Credit Facilities with respect to which we are exposed to interest rate risk. Holding other variables constant and assuming no interest rate hedging, a 0.25% increase in the average interest rate on our variable rate indebtedness would have resulted in a $1.3 million increase in annual interest expense based on the amount of borrowings outstanding as of ~~June~~September 30, 2022.

~~Inflation rates~~Historically, inflation did not have a material effect on our business, results of operations, or financial condition. During 2021, inflation began to increase. If our costs were to become subject to significant inflationary pressures, we may ~~impact the~~not be able to fully offset such higher costs. Our inability or failure to do so could harm our business, [AR1] results of operations and financial ~~statements and operating results in several areas. Inflation~~condition. For example, inflation influences interest rates, which in turn impact the fair value of our investments and yields on new investments. Operating expenses, including payroll, are impacted to a certain degree by the inflation ~~rate.~~rate as well. We do not believe that inflation has had a material effect on our results of operations for the periods presented.

Item 4.Controls and Procedures

~~Item 4.~~

~~Controls and Procedures~~

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) that are designed to ensure that information required to be disclosed in the Company's reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including the ~~Chief Executive Officer~~CEO and the Chief Financial Officer ("CFO"), as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company will be detected. 

As of the end of the period covered by this report, management, under the supervision of the ~~Company's Chief Executive Officer~~CEO and ~~Chief Financial Officer,~~CFO, evaluated the effectiveness of the Company's disclosure controls and procedures and based on that evaluation, the CEO and CFO concluded its disclosure controls and procedures were not effective at the reasonable assurance level due to the following material weaknesses in internal control over financial reporting.  

Material Weaknesses in Internal Control over Financial Reporting

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. The following material weaknesses remain unremediated as of September 30, 2022:

•

The Company did not design and maintain effective controls related to the evaluation of the impact of the arrangement’s terms and conditions on the accounting and reporting for preferred stock instruments. This material weakness resulted in the restatement of the Company’s previously filed consolidated financial statements as of and for the year ended December 31, 2020 and the condensed consolidated financial statements as of and for the quarters ended March 31, 2021 and June 30, ~~2022:~~2021, as well as the quarterly condensed consolidated financial information for the 2020 interim periods ended June 30, September 30 and December 31, 2020 related to temporary equity, permanent equity, additional paid in capital, accretion to redemption value of redeemable convertible preferred stock, net income

(loss) and comprehensive income (loss) attributable to common shareholders, loss per share and the related disclosures. 

•

The Company did not maintain effective controls for recognizing payment obligations payable to third parties upon recognition of insurance claim proceeds. This material weakness resulted in the restatement of the unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2022 and immaterial misstatements to the consolidated financial statements as of and for the year ended December 31, 2021. 

•

The Company did not design and maintain effective controls related to the evaluation of the impact of the arrangement’s terms and conditions on the accounting and reporting for preferred stock instruments. This material weakness resulted in the restatement of the Company’s previously filed consolidated financial statements as of and for the year ended December 31, 2020 and the condensed consolidated financial statements as of and for the quarters ended March 31, 2021 and June 30, 2021, as well as the quarterly condensed consolidated financial information for the 2020 interim periods ended June 30, September 30 and December 31, 2020 related to temporary equity, permanent equity, additional paid in capital, accretion to redemption value of redeemable convertible preferred stock, net income (loss) and comprehensive income (loss) attributable to common shareholders, loss per share and the related disclosures. 

•

Additionally, these material weaknesses could result in misstatements of the aforementioned accounts and disclosures that would result in a material misstatement to the annual or interim consolidated financial statements that would not be prevented or detected.

Remediation Plan

In order to remediate the material weaknesses, management plans to (a) enhance the design of its control activities related to the evaluation of the impact of the terms and conditions on the accounting and reporting for preferred stock issuances; and (b) provide additional training to the relevant control operators related to recognizing payment obligations payable to third parties upon recognition of insurance claim proceeds with respect to the required level of precision of their review when executing the control activities. The material weaknesses cannot be considered remediated until the applicable controls operate for a sufficient period of time and the Company’s management has concluded, through testing, that these controls are operating effectively.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting identified in management's evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the Company’s ~~second~~third fiscal quarter of 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1.Legal Proceedings

~~Item 1.~~

~~Legal Proceedings~~

From time to time, we may be involved in general legal disputes arising in the ordinary course of our business. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, financial condition or results of operations.

On February 22, 2021, the Company filed a complaint in Federal District Court in Orange County, California against its event cancellation insurers under the Company’s 2020 and 2021 event cancellation insurance policies. The insurer defendants are W.R. Berkley Syndicate Limited and Great Lakes Insurance SE. The Company believes the insurers have acted in bad faith and failed to timely pay amounts due and owing on submitted claims. Under this complaint, the Company is seeking to enforce its rights under the policies to receive the maximum applicable coverage for the 2020 and 2021 event cancellations, postponements and reductions, and to receive court-ordered payment on all outstanding submissions for 2020 and 2021 events. By Order dated May 26, 2021, the District Court in Orange County, California denied the insurers motion to transfer venue for this litigation proceeding to New York.

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.Item 1A.Risk Factors

~~Item 1A.~~

~~Risk Factors~~

Our Annual Report on Form 10-K, filed with the SEC on February 24, 2022 is accessible on the SEC’s website at www.sec.gov, and includes detailed discussions of our risk factors. At the time of this filing, there have been no material changes to the risk factors that were included in our Annual Report on Form 10-K.

Item 2.Unregistered Sale of Equity Securities and Use of Proceeds

~~Item~~ 2.

~~Unregistered Sale of Equity Securities and Use of Proceeds~~

Share Repurchase Program

In October 2020, we announced that our Board of Directors had authorized a $20.0 million share repurchase program. Share repurchases may be made from time to time through and including December 31, 2021, subject to early termination or extension by our Board of Directors. In October 2021, our Board ~~of Directors~~ approved an extension and expansion of the ~~October 2020 Share Repurchase Program,~~share repurchase program, which allows for the repurchase of $20.0 million of ~~our Common Stock~~the Company's common stock through December 31, 2022. In October 2022, our Board approved an extension and expansion of the share repurchase program, which allows for the repurchase of $20.0 million of the Company's common stock through December 31, 2023. The share repurchase program may be suspended or discontinued at any time without notice. There is no minimum number of shares that we are required to repurchase. Shares may be purchased from time to time in the open market or in privately negotiated transactions. Such purchases will be at times and in amounts as we deem appropriate, based on factors such as market conditions, legal requirements and other business considerations.

The following table presents our purchases of common stock during the second quarter ended ~~June~~September 30, 2022, as part of the publicly announced share repurchase program:

(Dollars in millions, except per share data)

Total Number
of Shares
Purchased as
Part of
Publicly
Announced
Program

Average Price
Paid Per Share

Approximate
Dollar Value of
Shares That
May Yet Be
Purchased
Under the
Program
(in millions)

April 1, 2022, - April 30, 2022

—

$
—

$
17.4

May 1, 2022 - May 31, 2022

506,637

3.20

15.7

June 1, 2022 - June 30, 2022

475,985

3.60

14.0

Total

982,622


(Dollars in millions, except per share data)	Total Number of Shares Purchased as Part of Publicly Announced Program		Average Price Paid Per Share		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (in millions)
July 1, 2022 - July 31, 2022		98,057	$	3.96	$	13.7
August 1, 2022 - August 31, 2022		1,277,463		3.75		8.9
September 1, 2022 - September 30, 2022		214,510		3.70		9.2
Total		1,590,030

Item 3.Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures

None.

Item 5.Other Information

None.

Item 6.Exhibits



*+10.1	~~Defaults Upon Senior Securities~~	Binding Settlement Term Sheet, dated August 3, 2022.

~~None.~~

~~Item 4.~~
*31.1	~~Mine Safety Disclosures~~

~~None.~~

~~Item 5.~~

~~Other Information~~

~~None.~~

~~Item 6.~~

~~Exhibits~~


*31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

*31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended.

*32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*101.INS		Inline XBRL Instance Document

*101.SCH		Inline XBRL Taxonomy Extension Schema Document

*101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

*101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

*101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

*101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

*101		The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in Inline XBRL included: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Loss and Comprehensive Loss, (iii) Condensed Consolidated Statements of Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements

*104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

+Portions of this exhibit are redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K.

SIGNATURES

~~Filed herewith.~~

~~SIGNATURES~~

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		EMERALD HOLDING, INC.

Date: ~~August 8,~~November 3, 2022	By:	/s/ David Doft
		David Doft
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

6160


Consolidated Balance Sheet	December 31, 2021									December 31, 2021
(dollars in millions, share data in thousands, except par value)	As Originally Reported			Adjustments			As Revised			As Originally Reported			Adjustments			As Revised
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Current liabilities
Accounts payable and other current liabilities	$	46.7		$	1.6		$	48.3		$	46.7		$	1.6		$	48.3
Total current liabilities		190.1			1.6			191.7			190.1			1.6			191.7
Total liabilities		747.9			1.6			749.5			747.9			1.6			749.5
Accumulated deficit		(773.3	)		(1.6	)		(774.9	)		(773.3	)		(1.6	)		(774.9	)
Total stockholders’ deficit		(119.4	)		(1.6	)		(121.0	)		(119.4	)		(1.6	)		(121.0	)
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit	$	1,062.4			—		$	1,062.4		$	1,062.4			—		$	1,062.4

	Year ended December 31, 2021
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)	As Originally Reported			Adjustments			As Revised
(dollars in millions, share data in thousands except earnings per share)
Cost of revenues		55.5			1.6			57.1
Operating loss		(63.1	)		(1.6	)		(64.7	)
Loss before income taxes		(79.4	)		(1.6	)		(81.0	)
Net loss and comprehensive loss		(78.1	)		(1.6	)		(79.7	)
Net loss and comprehensive loss attributable to Emerald Holding, Inc. common stockholders	$	(113.7	)	$	(1.6	)	$	(115.3	)
Basic loss per share	$	(1.59	)	$	(0.03	)	$	(1.62	)
Diluted loss per share	$	(1.59	)	$	(0.03	)	$	(1.62	)
Basic weighted average common shares outstanding		71,309			71,309			71,309
Diluted weighted average common shares outstanding		71,309			71,309			71,309


	Year ended December 31, 2021
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)	As Originally Reported			Adjustments			As Revised
(dollars in millions, share data in thousands except earnings per share)
Cost of revenues		55.5			1.6			57.1
Operating loss		(63.1	)		(1.6	)		(64.7	)
Loss before income taxes		(79.4	)		(1.6	)		(81.0	)
Net loss and comprehensive loss		(78.1	)		(1.6	)		(79.7	)
Net loss and comprehensive loss attributable to Emerald Holding, Inc. common stockholders	$	(113.7	)	$	(1.6	)	$	(115.3	)
Basic loss per share	$	(1.59	)	$	(0.03	)	$	(1.62	)
Diluted loss per share	$	(1.59	)	$	(0.03	)	$	(1.62	)
Basic weighted average common shares outstanding		71,309			71,309			71,309
Diluted weighted average common shares outstanding		71,309			71,309			71,309


	Year ended December 31, 2021
Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders' Deficit	As Originally Reported			Adjustments			As Revised
(in millions)
Net loss and comprehensive loss attributable to:
Accumulated deficit	$	(773.3	)	$	(1.6	)	$	(774.9	)
Total stockholders’ deficit		(119.4	)		(1.6	)		(121.0	)


Consolidated Statement of Cash Flows	Year ended December 31, 2021
(in millions)	As Originally Reported			Adjustments			As Revised

Operating activities
Net loss	$	(78.1	)	$	(1.6	)	$	(79.7	)
Changes in operating assets and liabilities:
Accounts payable and other current liabilities		19.2			1.6			20.8
Net cash provided by operating activities		90.0			—			90.0


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☒


		Page

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		1

PART I. FINANCIAL INFORMATION		3

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	56

Item 4.	Controls and Procedures	56

PART II. OTHER INFORMATION		58

Item 1.	Legal Proceedings	58

Item 1A.	Risk Factors	58

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58

Item 3.	Defaults Upon Senior Securities	5958

Item 4.	Mine Safety Disclosures	5958

Item 5.	Other Information	5958

Item 6.	Exhibits	6059


(dollars in millions, share data in thousands, except par value)	June 30, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	181.7		$	231.2		$	366.1		$	231.2
Marketable securities		50.0			—
Trade and other receivables, net of allowances of $1.4 million and $1.2 million as of June 30, 2022 and December 31, 2021, respectively		79.7			46.4
Trade and other receivables, net of allowances of $1.5 million and $1.2 million as of September 30, 2022 and December 31, 2021, respectively								82.8			46.4
Prepaid expenses and other current assets		17.7			12.5			18.6			12.5
Total current assets		329.1			290.1			467.5			290.1
Noncurrent assets
Property and equipment, net		4.2			3.7			4.0			3.7
Intangible assets, net		226.6			236.7			216.7			236.7
Goodwill		537.5			514.2			545.5			514.2
Right-of-use lease assets		14.7			15.1			14.5			15.1
Other noncurrent assets		2.6			2.6			2.6			2.6
Total assets	$	1,114.7		$	1,062.4		$	1,250.8		$	1,062.4
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Deficit
Current liabilities
Accounts payable and other current liabilities	$	66.2		$	48.3		$	65.0		$	48.3
Income tax payable								28.0			—
Cancelled event liabilities		4.4			9.8			4.4			9.8
Deferred revenues		143.5			118.1			166.7			118.1
Contingent consideration		32.7			5.1			28.5			5.1
Right-of-use lease liabilities, current portion		4.7			4.7			4.9			4.7
Term loan, current portion		5.7			5.7			5.7			5.7
Total current liabilities		257.2			191.7			303.2			191.7
Noncurrent liabilities
Term loan, net of discount and deferred financing fees		508.7			510.9			507.6			510.9
Deferred tax liabilities, net		1.7			1.5			2.0			1.5
Right-of-use lease liabilities, noncurrent portion		11.9			13.3			11.5			13.3
Other noncurrent liabilities		7.5			32.1			10.2			32.1
Total liabilities		787.0			749.5			834.5			749.5
Commitments and contingencies (Note 13)
Redeemable convertible preferred stock
7% Series A Redeemable Convertible Participating Preferred stock, $0.01 par value; authorized shares at June 30, 2022 and December 31, 2021: 80,000; 71,417 and 71,442 issued and outstanding; aggregate liquidation preference of $459.7 million and $444.1 million at June 30, 2022 and December 31, 2021, respectively		452.5			433.9
7% Series A Redeemable Convertible Participating Preferred stock, $0.01 par value; authorized shares at September 30, 2022 and December 31, 2021: 80,000; 71,417 and 71,442 issued and outstanding; aggregate liquidation preference of $467.7 million and $444.1 million at September 30, 2022 and December 31, 2021, respectively								462.4			433.9
Stockholders’ deficit
Common stock, $0.01 par value; authorized shares at June 30, 2022 and December 31, 2021: 800,000; 69,284 and 70,026 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		0.7			0.7
Common stock, $0.01 par value; authorized shares at September 30, 2022 and December 31, 2021: 800,000; 67,642 and 70,026 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively								0.7			0.7
Additional paid-in capital		634.0			653.2			619.7			653.2
Accumulated deficit		(759.5	)		(774.9	)		(666.5	)		(774.9	)
Total stockholders’ deficit		(124.8	)		(121.0	)		(46.1	)		(121.0	)
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit	$	1,114.7		$	1,062.4		$	1,250.8		$	1,062.4

	Three Months Ended						Six Months Ended
(dollars in millions, share data in thousands except earnings per share)	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Revenues	$	71.4		$	15.0		$	169.9		$	27.9
Other income, net		8.1			2.3			31.8			16.4
Cost of revenues		26.4			3.6			60.6			7.6
Selling, general and administrative expense		32.3			33.1			78.9			63.9
Depreciation and amortization expense		14.0			12.1			28.3			23.9
Goodwill impairment charge		—			—			6.3			—
Intangible asset impairment charge		—			—			1.6			—
Operating income (loss)		6.8			(31.5	)		26.0			(51.1	)
Interest expense		4.6			4.1			8.5			8.1
Income (loss) before income taxes		2.2			(35.6	)		17.5			(59.2	)
Provision for income taxes		2.9			10.9			2.1			2.6
Net (loss) income and comprehensive (loss) income	$	(0.7	)	$	(46.5	)	$	15.4		$	(61.8	)
Accretion to redemption value of redeemable convertible preferred stock		(9.6	)		(8.8	)		(18.8	)		(17.3	)
Net loss and comprehensive loss attributable to Emerald Holding, Inc. common stockholders	$	(10.3	)	$	(55.3	)	$	(3.4	)	$	(79.1	)
Basic loss per share	$	(0.15	)	$	(0.77	)	$	(0.05	)	$	(1.10	)
Diluted loss per share	$	(0.15	)	$	(0.77	)	$	(0.05	)	$	(1.10	)
Basic weighted average common shares outstanding		69,816			71,938			70,007			72,091
Diluted weighted average common shares outstanding		69,816			71,938			70,007			72,091

	Three Months Ended June 30, 2022
	(shares in thousands; dollars in millions)
							Total Emerald Holding, Inc. Stockholders' Equity (Deficit)
	Redeemable Convertible Preferred Stock						Common Stock					Additional Paid-in			Accumulated			Total Stockholders’
	Shares			Amount			Shares			Amount		Capital			Deficit			Deficit
Balances at March 31, 2022		71,442		$	443.1			70,130		$	0.7	$	645.2		$	(758.8	)	$	(112.9	)
Stock-based compensation		—			—			5			—		1.5			—			1.5
Accretion to redemption value of redeemable convertible preferred stock		—			9.6			—			—		(9.6	)		—			(9.6	)
Repurchase of common stock		—			—			(896	)		—		(3.3	)		—			(3.3	)
Redeemable convertible preferred stock conversion		(25	)		(0.2	)		45			—		0.2			—			0.2
Net loss and comprehensive loss		—			—			—			—		—			(0.7	)		(0.7	)
Balances at June 30, 2022		71,417		$	452.5			69,284		$	0.7	$	634.0		$	(759.5	)	$	(124.8	)

	Six Months Ended June 30, 2022
	(shares in thousands; dollars in millions)
							Total Emerald Holding, Inc. Stockholders' Equity (Deficit)
	Redeemable Convertible Preferred Stock						Common Stock					Additional Paid-in			Accumulated			Total Stockholders’
	Shares			Amount			Shares			Amount		Capital			Deficit			Deficit
Balances at December 31, 2021		71,442		$	433.9			70,026		$	0.7	$	653.2		$	(774.9	)	$	(121.0	)
Stock-based compensation		—			—			345			—		3.7			—			3.7
Issuance of common stock under equity plans		—			—			20			—		—			—			—
Accretion to redemption value of redeemable convertible preferred stock		—			18.8			—			—		(18.8	)		—			(18.8	)
Repurchase of common stock		—			—			(1,152	)		—		(4.3	)		—			(4.3	)
Redeemable convertible preferred stock conversion		(25	)		(0.2	)		45			—		0.2			—			0.2
Net income and comprehensive income		—			—			—			—		—			15.4			15.4
Balances at June 30, 2022		71,417		$	452.5			69,284		$	0.7	$	634.0		$	(759.5	)	$	(124.8	)


	Three Months Ended						Nine Months Ended
(dollars in millions, share data in thousands except earnings per share)	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Revenues	$	62.4		$	76.5		$	232.3		$	104.4
Other income, net		151.0			1.1			182.8			17.5
Cost of revenues		22.7			33.7			83.3			41.3
Selling, general and administrative expense		48.7			38.8			127.6			102.7
Depreciation and amortization expense		14.7			12.2			43.0			36.1
Goodwill impairment charge		—			—			6.3			—
Intangible asset impairment charge		—			—			1.6			—
Operating income (loss)		127.3			(7.1	)		153.3			(58.2	)
Interest expense		6.8			3.9			15.5			12.0
Interest income		0.8			—			1.1			0.1
Other expense		0.1			—			0.2			0.1
Income (loss) before income taxes		121.2			(11.0	)		138.7			(70.2	)
Provision for (benefit from) income taxes		28.2			(2.0	)		30.3			0.6
Net income (loss) and comprehensive income (loss)	$	93.0		$	(9.0	)	$	108.4		$	(70.8	)
Accretion to redemption value of redeemable convertible preferred stock		(9.9	)		(9.0	)		(28.7	)		(26.3	)
Participation rights on if-converted basis		(54.7	)		—			(51.9	)		—
Net income (loss) and comprehensive income (loss) attributable to Emerald Holding, Inc. common stockholders	$	28.4		$	(18.0	)	$	27.8		$	(97.1	)
Basic income (loss) per share	$	0.42		$	(0.25	)	$	0.40		$	(1.35	)
Diluted income (loss) per share	$	0.41		$	(0.25	)	$	0.40		$	(1.35	)
Basic weighted average common shares outstanding		68,433			71,033			69,479			71,719
Diluted weighted average common shares outstanding		68,643			71,033			69,588			71,719

(in millions)	Six Months Ended June 30, 2022			Six Months Ended June 30, 2021
Operating activities
Net income (loss)	$	15.4		$	(61.8	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense		3.7			5.8
Provision for credit losses		0.2			0.2
Depreciation and amortization		28.3			23.9
Goodwill impairment		6.3			—
Intangible asset impairment		1.6			—
Non-cash operating lease expense		1.6			1.6
Amortization of deferred financing fees and debt discount		0.6			0.8
Remeasurement of contingent consideration		(5.8	)		1.5
Deferred income taxes		0.2			1.9
Changes in operating assets and liabilities:
Trade and other receivables		(29.6	)		(10.9	)
Insurance receivables		—			17.8
Prepaid expenses and other current assets		(5.9	)		(5.6	)
Other noncurrent assets		(0.1	)		0.4
Accounts payable and other current liabilities		14.8			2.2
Cancelled event liabilities		(5.4	)		(17.4	)
Contingent consideration		(2.1	)		—
Income tax payable		1.6			0.7
Deferred revenues		22.2			70.0
Operating lease liabilities		(2.7	)		(1.0	)
Other noncurrent liabilities		0.3			(3.4	)
Net cash provided by operating activities		45.2			26.7
Investing activities
Acquisition of businesses		(28.4	)		(7.0	)
Purchase of marketable securities		(50.0	)		—
Purchases of property and equipment		(1.1	)		(0.6	)
Purchases of intangible assets		(3.8	)		(1.7	)
Net cash used in investing activities		(83.3	)		(9.3	)
Financing activities
Payment of deferred consideration for acquisition of businesses		—			(2.0	)
Payment of contingent consideration for acquisition of businesses		(4.4	)		—
Repayment of principal on term loan		(2.8	)		(2.8	)
Fees paid for revolving credit facility extension		—			(0.1	)
Repurchase of common stock		(4.3	)		(5.1	)
Proceeds from issuance of common stock		0.1			0.1
Net cash used in financing activities		(11.4	)		(9.9	)
Net increase (decrease) in cash and cash equivalents		(49.5	)		7.5
Cash and cash equivalents
Beginning of period		231.2			295.3
End of period	$	181.7		$	302.8


	Three Months Ended September 30, 2021
	(shares in thousands; dollars in millions)
						Total Emerald Holding, Inc. Stockholders' Equity (Deficit)
	Redeemable Convertible Preferred Stock					Common Stock					Additional Paid-in			Accumulated			Total Stockholders’
	Shares			Amount		Shares			Amount		Capital			Deficit			Deficit
Balances at June 30, 2021		71,442		$	415.6		71,518		$	0.7	$	673.9		$	(757.0	)	$	(82.4	)
Stock-based compensation		—			—		55			—		2.5			—			2.5
Issuance of common stock under equity plans		—			—		20			—		—			—			—
Accretion to redemption value of redeemable convertible preferred stock		—			9.0		—			—		(9.0	)		—			(9.0	)
Repurchase of common stock							(1,193	)		—		(5.6	)		—			(5.6	)
Net loss and comprehensive loss		—			—		—			—		—			(9.0	)		(9.0	)
Balances at September 30, 2021		71,442		$	424.6		70,400		$	0.7	$	661.8		$	(766.0	)	$	(103.5	)

	Nine Months Ended September 30, 2021
	(shares in thousands; dollars in millions)
						Total Emerald Holding, Inc. Stockholders' Equity (Deficit)
	Redeemable Convertible Preferred Stock					Common Stock					Additional Paid-in			Accumulated			Total Stockholders’
	Shares			Amount		Shares			Amount		Capital			Deficit			Deficit
Balances at December 31, 2020		71,445		$	398.3		72,195		$	0.7	$	690.7		$	(695.2	)	$	(3.8	)
Stock-based compensation		—			—		281			—		8.1			—			8.1
Issuance of common stock under equity plans		—			—		42			—		—			—			—
Accretion to redemption value of redeemable convertible preferred stock		—			26.3		—			—		(26.3	)		—			(26.3	)
Redeemable convertible preferred stock conversion		(3	)		—		5			—		—			—			—
Repurchase of common stock		—			—		(2,123	)		—		(10.7	)		—			(10.7	)
Net loss and comprehensive loss		—			—		—			—		—			(70.8	)		(70.8	)
Balances at September 30, 2021		71,442		$	424.6		70,400		$	0.7	$	661.8		$	(766.0	)	$	(103.5	)


(in millions)	Nine Months Ended September 30, 2022			Nine Months Ended September 30, 2021
Operating activities
Net income (loss)	$	108.4		$	(70.8	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense		5.0			8.2
Provision for credit losses		0.3			0.2
Depreciation and amortization		43.0			36.1
Goodwill impairment		6.3			—
Intangible asset impairment		1.6			—
Non-cash operating lease expense		2.5			2.4
Amortization of deferred financing fees and debt discount		1.0			1.1
Remeasurement of contingent consideration		(9.3	)		2.6
Deferred income taxes		0.5			0.4
Loss on disposal of property and equipment		0.1			—
Changes in operating assets and liabilities:
Trade and other receivables		(32.8	)		(8.3	)
Insurance receivables		—			17.8
Prepaid expenses and other current assets		(6.5	)		(0.6	)
Other noncurrent assets		(0.1	)		0.3
Accounts payable and other current liabilities		14.3			21.6
Cancelled event liabilities		(5.4	)		(4.3	)
Contingent consideration		(2.1	)		—
Income tax payable		28.5			0.3
Deferred revenues		45.5			33.8
Operating lease liabilities		(3.6	)		(1.8	)
Other noncurrent liabilities		1.5			(2.7	)
Net cash provided by operating activities		198.7			36.3
Investing activities
Acquisition of businesses		(37.6	)		(7.0	)
Purchase of marketable securities		(50.0	)		—
Proceeds from maturity of marketable securities		50.0			—
Purchases of property and equipment		(1.5	)		(1.0	)
Purchases of intangible assets		(6.0	)		(3.1	)
Net cash used in investing activities		(45.1	)		(11.1	)
Financing activities
Payment of deferred consideration for acquisition of businesses		—			(2.0	)
Payment of contingent consideration for acquisition of businesses		(4.4	)		—
Repayment of principal on term loan		(4.2	)		(4.2	)
Fees paid for revolving credit facility extension		—			(0.1	)
Repurchase of common stock		(10.2	)		(10.7	)
Proceeds from issuance of common stock under equity plans		0.1			0.1
Net cash used in financing activities		(18.7	)		(16.9	)
Net increase in cash and cash equivalents		134.9			8.3
Cash and cash equivalents
Beginning of period		231.2			295.3
End of period	$	366.1		$	303.6


	Reportable Segment
	Commerce(1)		Design, Creative, and Technology(1)		All Other(1)		Total
Three Months Ended September 30, 2022	(in millions)
Trade shows	$	32.1	$	4.6	$	0.9	$	37.6
Other events		0.1		11.3		0.8		12.2
Subscription software and services		0.1		0.7		3.8		4.6
Other marketing services		1.6		6.4		—		8.0
Total revenues	$	33.9	$	23.0	$	5.5	$	62.4

Three Months Ended September 30, 2021
Trade shows	$	37.3	$	19.1	$	—	$	56.4
Other events		0.2		8.7		—		8.9
Subscription software and services		—		0.8		2.9		3.7
Other marketing services		1.3		6.2		—		7.5
Total revenues	$	38.8	$	34.8	$	2.9	$	76.5

Nine Months Ended September 30, 2022
Trade shows	$	104.3	$	60.0	$	2.4	$	166.7
Other events		0.6		29.2		0.8		30.6
Subscription software and services		0.1		2.3		10.7		13.1
Other marketing services		5.3		16.6		—		21.9
Total revenues	$	110.3	$	108.1	$	13.9	$	232.3

Nine Months Ended September 30, 2021
Trade shows	$	42.9	$	19.1	$	—	$	62.0
Other events		1.7		11.1		—		12.8
Subscription software and services		—		1.3		8.1		9.4
Other marketing services		3.7		16.5		—		20.2
Total revenues	$	48.3	$	48.0	$	8.1	$	104.4

	Reportable Segment
	Commerce⁽¹⁾		Design, Creative, and Technology⁽¹⁾		All Other⁽¹⁾		Total
Three Months Ended June 30, 2022	(in millions)
Trade shows	$	18.0	$	31.9	$	0.6	$	50.5
Other events		—		9.3		—		9.3
Subscription software and services		—		0.8		3.5		4.3
Other marketing services		1.7		5.6		—		7.3
Total revenues	$	19.7	$	47.6	$	4.1	$	71.4

Three Months Ended June 30, 2021
Trade shows	$	2.0	$	—	$	—	$	2.0
Other events		0.5		1.4		—		1.9
Subscription software and services		—		0.5		2.9		3.4
Other marketing services		1.3		6.4		—		7.7
Total revenues	$	3.8	$	8.3	$	2.9	$	15.0

Six Months Ended June 30, 2022
Trade shows	$	72.2	$	55.4	$	1.5	$	129.1
Other events		0.5		17.9		—		18.4
Subscription software and services		—		1.6		6.9		8.5
Other marketing services		3.7		10.2		—		13.9
Total revenues	$	76.4	$	85.1	$	8.4	$	169.9

Six Months Ended June 30, 2021
Trade shows	$	5.6	$	—	$	—	$	5.6
Other events		1.5		2.4		—		3.9
Subscription software and services		—		0.5		5.2		5.7
Other marketing services		2.4		10.3		—		12.7
Total revenues	$	9.5	$	13.2	$	5.2	$	27.9


(in millions)	July 11, 2022
Trade receivables and prepaid expenses	$	0.4
Goodwill		7.9
Intangible assets		2.1
Accounts payable and other current liabilities		(0.5	)
Purchase price	$	9.9


(in millions)	June 21, 2022			June 21, 2022
Trade and other receivables	$	3.8		$	3.8
Prepaid expenses and other current assets		0.3			0.3
Goodwill		23.6			23.6
Intangible assets		12.4			12.4
Right-of-use lease asset		1.2			1.2
Accounts payable and other current liabilities		(2.7	)		(2.7	)
Deferred revenues		(3.1	)		(3.1	)
Right-of-use lease liability		(1.2	)		(1.2	)
Purchase price, including working capital adjustment	$	34.3
Purchase price				$	34.3


(in millions)	Fair Value Recognized as of Acquisition Date (as previously reported)			Non-Cash Measurement Period Adjustment⁽¹⁾		Fair Value Recognized as of June 30, 2022 as adjusted				Fair Value Recognized as of Acquisition Date (as previously reported)			Non-Cash Measurement Period Adjustment(1)		Fair Value Recognized as of September 30, 2022 as adjusted
Trade and other receivables	$	0.6		$	—	$	0.6			$	0.6		$	—	$	0.6
Prepaid expenses		0.1			—		0.1				0.1			—		0.1
Goodwill		113.8		6.0			119.8				113.8		6.0			119.8
Intangible Assets		30.4			2.9		33.3				30.4			2.9		33.3
Deferred Revenues		(1.3	)		—		(1.3	)			(1.3	)		—		(1.3	)
Other current liabilities		(1.4	)		—		(1.4	)			(1.4	)		—		(1.4	)
Purchase price	$	142.2		$	8.9	$	151.1			$	142.2		$	8.9	$	151.1

(1) During the three months ended June 30,2022, the Company recorded a non-cash adjustment to reflect a measurement period adjustment. Upon finalizing the analysis of the average EBITDA growth estimate, including gaining a better understanding of historical MJBizCon registration revenue trends, the estimated contingent consideration liability increased by $8.9 million, from approximately $24.0 million to $32.9 million. Such change resulted in an increase to Goodwill of $6.0 million and an increase in Intangible Assets of $2.9 million in the Commerce reportable segment.
(1) During the first quarter of 2022, the Company recorded a non-cash adjustment to reflect a measurement period adjustment. Upon finalizing the analysis of the average EBITDA growth estimate, including gaining a better understanding of historical MJBizCon registration revenue trends, the estimated contingent consideration liability increased by $8.9 million, from approximately $24.0 million to $32.9 million. Such change resulted in an increase to Goodwill of $6.0 million and an increase in Intangible Assets of $2.9 million in the Commerce reportable segment.									(1) During the first quarter of 2022, the Company recorded a non-cash adjustment to reflect a measurement period adjustment. Upon finalizing the analysis of the average EBITDA growth estimate, including gaining a better understanding of historical MJBizCon registration revenue trends, the estimated contingent consideration liability increased by $8.9 million, from approximately $24.0 million to $32.9 million. Such change resulted in an increase to Goodwill of $6.0 million and an increase in Intangible Assets of $2.9 million in the Commerce reportable segment.


(in millions)	Indefinite- lived trade names		Customer relationship intangibles			Definite- lived trade names			Acquired Technology			Acquired Content			Computer software			Capitalized software in progress		Total Intangible Assets			Indefinite- lived trade names		Customer relationship intangibles			Definite- lived trade names			Acquired Technology			Acquired Content			Computer software			Capitalized software in progress		Total Intangible Assets
Gross carrying amount at June 30, 2022	$	52.6	$	362.9		$	89.9		$	6.4		$	2.6		$	19.2		$	4.1	$	537.7
Gross carrying amount at September 30, 2022																							$	52.6	$	362.9		$	90.1		$	8.4		$	2.7		$	23.3		$	1.8	$	541.8
Accumulated amortization		—		(283.2	)		(14.6	)		(1.4	)		(0.4	)		(11.5	)		—		(311.1	)		—		(294.7	)		(16.0	)		(1.8	)		(0.5	)		(12.1	)		—		(325.1	)
Net carrying amount at June 30, 2022	$	52.6	$	79.7		$	75.3		$	5.0		$	2.2		$	7.7		$	4.1	$	226.6
Net carrying amount at September 30, 2022																							$	52.6	$	68.2		$	74.1		$	6.6		$	2.2		$	11.2		$	1.8	$	216.7

Gross carrying amount at December 31, 2021	$	54.2	$	354.3		$	84.2		$	6.2		$	1.5		$	13.8		$	5.9	$	520.1		$	54.2	$	354.3		$	84.2		$	6.2		$	1.5		$	13.8		$	5.9	$	520.1
Accumulated amortization		—	$	(259.4	)	$	(12.2	)		(0.9	)		(0.2	)	$	(10.7	)		—		(283.4	)		—	$	(259.4	)	$	(12.2	)		(0.9	)		(0.2	)	$	(10.7	)		—		(283.4	)
Net carrying amount at December 31, 2021	$	54.2	$	94.9		$	72.0		$	5.3		$	1.3		$	3.1		$	5.9	$	236.7		$	54.2	$	94.9		$	72.0		$	5.3		$	1.3		$	3.1		$	5.9	$	236.7


(in millions)	Total		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	175.3	$	175.3	$	—	$	—
Certificates of deposits(a)		99.9		—		99.9		—
Money market mutual funds(b)		90.9		90.9		—		—
Total assets at fair value	$	366.1	$	266.2	$	99.9	$	—

Liabilities
Market-based share awards liability(c)	$	0.4	$	—	$	—	$	0.4
Contingent consideration(c)		36.3		—		—		36.3
Total liabilities at fair value	$	36.7	$	—	$	—	$	36.7


				Weighted-Average									Weighted-Average
	Number of Options			Exercise Price per Option		Remaining Contractual Term		Aggregate Intrinsic Value		Number of Options			Exercise Price per Option		Remaining Contractual Term		Aggregate Intrinsic Value
	(thousands)					(years)		(millions)		(thousands)					(years)		(millions)
Outstanding at December 31, 2021		14,403		$	8.10		8.1	$	—		14,403		$	8.10		8.1	$	—
Granted		480			5.63						575			5.66
Exercised		—			—
Forfeited		(445	)		9.97						(523	)		10.18
Outstanding at June 30, 2022	$	14,438		$	7.96		7.7	$	89.1
Exercisable at June 30, 2022		4,744		$	10.89		6.0	$	—
Outstanding at September 30, 2022											14,455		$	7.93		7.5	$	—
Exercisable at September 30, 2022											4,845		$	10.97		5.8	$	—


(share data in thousands, except per share data)	Number of RSUs (share data in thousands)			Weighted Average Grant Date Fair Value per Share		Number of RSUs (share data in thousands)			Weighted Average Grant Date Fair Value per Share
Unvested balance, December 31, 2021		1,358		$	8.13		1,358		$	8.13
Granted		126			3.58		126			3.58
Forfeited		(38	)		10.92		(47	)		10.72
Vested		(479	)		8.16		(504	)		8.73
Unvested balance, June 30, 2022		967		$	8.13
Unvested balance, September 30, 2022							933		$	7.05


	~~June~~September 30, 2022
Expected volatility	~~56.04%~~	57.50%
Dividend yield	~~0.00%~~	0.00%
Risk-free interest rate	~~3.03%~~	3.97%
Weighted-average expected term (in years)	~~3.8~~	4.5