Emerald Expositions Events, Inc. Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited, dollars in millions, share data in thousands, except earnings per share data) Three Months Ended 2017 Three Months Ended 2016 Year Ended 2017 Year Ended 2016 Revenues $ 31.5 $ 30.4 $ 341.7 $ 323.7 Other income - - 6.5 - Cost of revenues 9.6 9.4 95.0 84.4 Selling, general and administrative expense 26.0 24.7 121.9 98.9 Depreciation and amortization expense 10.9 10.2 43.2 40.0 Operating (loss) income (15.0) (13.9) 88.1 100.4 Interest expense 7.4 13.2 38.3 51.4 Loss on extinguishment of debt - 12.8 3.0 12.8 (Loss) income before income taxes (22.4) (39.9) 46.8 36.2 (Benefit from) provision for income taxes (62.7) (15.7) (35.0) 14.0 Net income (loss) and comprehensive income (loss) $ 40.3 $ (24.2) $ 81.8 $ 22.2 Basic earnings (loss) per share $ 0.56 $ (0.39) $ 1.19 $ 0.36 Diluted earnings (loss) per share $ 0.53 $ (0.39) $ 1.13 $ 0.35 Basic weighted average common shares outstanding 72,331 61,860 68,912 61,859 Diluted weighted average common shares outstanding 75,800 61,860 72,116 63,294 Dividend declared per common share $ 0.07 $ $ 0.21 $
Emerald Expositions Events, Inc. Consolidated Balance Sheets (unaudited, dollars in millions, share data in thousands, except par value) 2017 2016 Assets Current assets Cash and cash equivalents $ 10.9 $ 14.9 Trade and other receivables, net of allowance for doubtful accounts of $828 and $693 as of 2017 and 2016, respectively 62.7 57.6 Prepaid expenses 19.9 23.0 Total current assets 93.5 95.5 Noncurrent assets Property and equipment, net 3.8 3.8 Goodwill 993.7 930.3 Other intangible assets, net 545.0 541.2 Other noncurrent assets 1.9 1.7 Total assets $ 1,637.9 $ 1,572.5 Liabilities and Shareholders Equity Current liabilities Accounts payable and other current liabilities $ 25.0 $ 28.2 Deferred revenues 192.5 171.6 Term loan, current portion 5.7 8.8 Total current liabilities 223.2 208.6 Noncurrent liabilities Term loan, net of discount and deferred financing fees 548.5 693.3 Deferred tax liabilities, net 100.2 140.1 Other noncurrent liabilities 4.7 2.8 Total liabilities 876.6 1,044.8 Commitments and contingencies Shareholders equity Preferred stock, $0.01 par value; 80,000 authorized at 2017; no shares issued and outstanding at 2017 and 2016 - - Common stock, $0.01 par value; authorized shares: 800,000; issued and outstanding shares: 72,604 and 61,860 at 2017 and 2016, respectively 0.7 0.6 Additional paid-in capital 677.1 510.3 Retained earnings 83.5 16.8 Total shareholders equity 761.3 527.7 Total liabilities and shareholders equity $ 1,637.9 $ 1,572.5
Appendix I Emerald Expositions Events, Inc. Reconciliation of Non-GAAP Financial Measures (unaudited, dollars in millions, share data in thousands, except per share data) Three Months Year Ended Ended 2017 2016 2017 2016 Net income (loss) $ 40.3 $ (24.0) $ 81.8 $ 22.2 Add (Deduct): Interest expense 6.7 13.2 33.8 51.4 Refinancing and repricing fees 0.7-4.5 - Loss on extinguishment of debt - 12.8 3.0 12.8 (Benefit from) provision for income taxes (62.7) (15.7) (35.0) 14.0 Depreciation and amortization 10.9 10.2 43.2 40.0 Stock-based compensation 0.5 0.6 2.4 2.9 Deferred revenue adjustment - 0.3 0.5 0.3 Management fee - 0.2 0.2 0.8 Contract termination costs (1) - - 10.0 - Other items (2) 4.6 3.3 13.5 7.7 Scheduling adjustment - (1.1) - - Adjusted EBITDA $ 1.0 $ (0.2) $ 157.9 $ 152.1 (1) Represents contract termination costs incurred in connection with the relocation of the Outdoor Retailer show from Salt Lake City to Denver. (2) Other items for the three months ended 2017 included: (i) $2.0 million in transaction costs in connection with certain acquisition transactions that were completed or pending in 2017 and 2016, (ii) $1.1 million in legal, audit and consulting fees related to the IPO and other related activities and (iii) $1.5 million in transition costs. Other items for the three months ended 2016 included: (i) $1.0 million in transaction costs incurred in connection with certain acquisition transactions that were completed or pending as well as acquisitions that were pursued but not completed in the period (ii) $1.3 million in legal and consulting fees related to the IPO, and (iii) $1.0 million in transition costs, primarily related to information technology and facility rental charges for terminated leases. Other items for the year ended 2017 included: (i) $5.7 million in transaction costs in connection with certain acquisition transactions that were completed or pending in 2017 and 2016, (ii) $4.6 million in legal, audit and consulting fees related to the IPO and other related activities and (iii) $3.2 million in transition costs. Other items for the year ended 2016 included (i) $4.0 million in transaction costs incurred in connection with certain acquisition transactions that were completed or pending and those that were pursued but not completed during 2016, (ii) $1.3 million in legal and consulting fees related to the IPO, and (iii) $2.4 million in transition costs, primarily related to information technology and facility rental charges for terminated leases.
Three Months Year Ended Ended 2017 2016 2017 2016 Net income (loss) $ 40.3 $ (24.0) $ 81.8 $ 22.2 Add (Deduct): Refinancing charges 0.7-4.5 - Loss on extinguishment of debt - 12.8 3.0 12.8 Stock-based compensation 0.5 0.6 2.4 2.9 Deferred revenue adjustment - 0.3 0.5 0.3 Management fee - 0.2 0.2 0.8 Contract termination costs (1) - - 10.0 - Other items (2) 4.6 3.4 13.5 7.7 Amortization of deferred financing fees and discount 0.4 1.5 4.6 5.3 Amortization of (acquired) intangible assets 10.5 9.8 41.3 38.3 Deferred tax adjustment (52.1) - (52.1) - Tax adjustments related to non-gaap adjustments (3) (4.2) (10.7) (29.4) (26.6) Adjusted Net Income (Loss) $ 0.7 $ (6.1) $ 80.3 $ 63.7 Basic earnings (loss) per share $ 0.01 $ (0.10) $ 1.16 $ 1.03 Diluted earnings (loss) per share $ 0.01 $ (0.10) $ 1.11 $ 1.01 Basic weighted average common shares outstanding 72,331 61,860 68,912 61,859 Diluted weighted average common shares outstanding 75,800 61,860 72,116 63,294 (1) Represents contract termination costs described in Note 1 above. (2) Represents other items described in Note 2 above. (3) Reflects application of U.S. federal and state enterprise tax rate of 25.3% and 36.5% for the three and twelve months ended 2017, respectively, and a rate of 39.3% and 39.1% for the three and twelve months ended 2016, respectively. Three Months Year Ended Ended 2017 2016 2017 2016 Net Cash Provided by Operating Activities $ 41.5 $ 16.0 $ 110.8 $ 93.0 Less: Capital expenditures 2.3 1.2 3.0 3.4 Free Cash Flow $ 39.2 $ 14.8 $ 107.8 $ 89.6