Emerald Holding Inc Q1 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Robert Weaver - INTL FCStone - Analyst : I know there has been a lot of questions asked on the insurance, but just -- I'll take one more stab at it. Basically, you're covered at $191 million of lost revenue. It is -- the purpose of the insurance is to cover the gross profit effectively associated with that lost revenue after the -- like you're saying, you have to pay back the deferred revenue, the prepayments. After all that is done, the gross profit from that $191 million in revenue should be protected. Is that the correct way to look at that?

Question: Robert Weaver - INTL FCStone - Analyst : Okay. And then on your revolver utilization, I don't know if it's too much of a projection to ask. But given these -- given the expected proceeds that you can get from the insurance coverage, do you think you would have availability beyond the current draw, which I understand is $50 million beyond the current $50 million draw going forward like, let's say, past 2Q?

Question: Robert Weaver - INTL FCStone - Analyst : You noticed that you have the springing financial covenant on your revolver. But the financial covenant takes into account expected insurance proceeds as well as deferrals of events or costs associated -- onetime costs associated with deferral of events. Given all those expectations, do you think you would have availability on that revolver greater than the current amount that you've drawn down? Like you noted that you're below the amount of the springing financial covenant right now. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MAY 04, 2020 / 8:30PM, EEX.N - Q1 2020 Emerald Holding Inc Earnings Call

Question: Robert Weaver - INTL FCStone - Analyst : Do you think you could take it up beyond that at any point in this year, even if -- for one quarter or so?