Investment Highlights and Value Creation Update
Adjusted EBITDA
UNAUDITED RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
EMERALD
Three Months
Ended March 31,
2022
2021
(dollars in millions)
(unaudited)
22.6
Net income (loss)
Add (deduct):
Interest expense
(15.3)
Benefit from income taxes
Goodwill impairment charges (1)
Intangible asset impairment charges (2)
Depreciation and amortization expense
Stock-based compensation expense (3)
Deferred revenue adjustment(4)
Other items(5)
Scheduling adjustments
Adjusted EBITDA
3.9
(2.2)
6.3
1.6
14.3
2.1
0.2
5.6
4.0
(8.3)
11.8
3.0
0.9
1.2
0.2
$
54.4
(2.5)
(1) For the three months ended March 31, 2022 and 2021, goodwill impairment charge represents non-cash charges of $6.3 million and zero, respectively, for goodwill in connection with the Company's interim testing of goodwill for
impairment.
(2) Intangible asset impairment charges for the three months ended March 31, 2022 and 2021 represent non-cash impairment charges of $1.6 million and zero, respectively, for certain definite-lived intangible assets in connection with the
Company's interim testing of intangibles for impairment.
(3) 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").
(4) Represents deferred revenue acquired in the Plum River Technologies ("Plum River") 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 and $0.9 million for Plum River for the three months ended March 31, 2022 and 2021, respectively, would not have been required and the revenues for the
three months ended March 31, 2022 and 2021, would have been higher by $0.2 million and $0.9 million, respectively.
(5) Other items for the three months ended March 31, 2022 included: (i) $4.3 million in expense related to the remeasurement of contingent consideration, (ii) $0.4 million in non-recurring legal, audit and consulting fees, (iii) $0.8 million in
transition costs in connection with previous acquisitions and (iv) $0.1 million in transition expenses. Other items for the three months ended March 31, 2021 included: (i) $0.2 million in transaction costs in connection with the Plum River LLC
and EDspaces acquisition transactions; (ii) $0.6 million in non-recurring legal, audit and consulting fees and (iii) $0.4 million in expense related to the remeasurement of contingent consideration.
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