Emerald Holding, Inc. (NYSE:EEX) Q2 2022 Earnings Conference Call August 8, 2022 4:30 PM ET

Company Participants

Hervé Sedky - President and Chief Executive Officer

David Doft - Chief Financial Officer

Operator

Good afternoon, welcome to the Emerald Holding, Inc. Second Quarter 2022 Earnings Conference Call. Before we begin, let me remind everyone that this call will include certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, beliefs, estimates, plans, and prospects. In particular the company's statements about projected results for 2022 and 2023 are forward-looking statements.

Such statements are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from those indicated or implied by such statements. Such risks and other factors are set forth in the company's most recently filed periodic reports on Form 10-K and Form-10-Q, and subsequent filings.

The company does not undertake any duty to update such forward-looking statements. Additionally, during today's call, management will discuss non-GAAP measures, which it believes can be useful in evaluating the company's performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. A reconciliation of these non-GAAP measures to the most comparable GAAP measure can be found in the company's earnings release. As a reminder, this conference is being recorded and a replay of this call will be available on the investors section of the company's Web site through 11:59 p.m. Eastern Time on August 15, 2022.

I'd now like to turn the call over to Mr. Hervé Sedky, President and Chief Executive Officer. Sir, please go ahead.

Hervé Sedky

Thank you, Scott. And good afternoon, everyone. I'm very pleased to be with you all today to discuss our second quarter results. We delivered another solid performance this quarter and continue to see a nice recovery in the business as more in-person events have been staged. But before going into further detail on this quarter's operational performance, I'm pleased to announce that on August 3 2022, Emerald reached an agreement with our insurance underwriters to settle outstanding litigation relating to our 2020 and 2021 event cancellation insurance policies for $149.25 million.

As a result, the company expects to record $148.5 million as part of other income nets during the third quarter of 2022. Payment is expected to be received in the third quarter of 2022. And when added to the $223.6 million of claim payments already received, it will bring the total aggregate payments from insurers to approximately $372.9 million. This incremental cash will further improve our already strong liquidity and flexibility and importantly, the settlement removes a large distraction for our leadership team that can now focus all of its attention on building our business.