Financial Performance and Strategic Outlook slide image

Financial Performance and Strategic Outlook

Non-GAAP Reconciliation Important Disclosure Regarding Non-GAAP Measures EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define EBITDA as net income excluding net interest, income tax and depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding severance expenses, revaluation of tax receivable agreement, (gain) loss on debt extinguishment, stock-based compensation, and equity offering expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of Revenue. Our management believes EBITDA and Adjusted EBITDA are useful, because they allow management to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We present EBITDA and Adjusted EBITDA because we believe they provide useful information regarding the factors and trends affecting our business. Year Ended ($ in thousands) Net income (loss) Interest (income) expense, net Income tax expense December 31, 2021 2020 2019 2018 2017 2016 2015 Annualized Three Months Ended December 31, 2021 Three Months Ended December 31, 2021 $67,470 $59,215 $156,303 $150,281 774 (701) (879) 3,595 $66,547 20,767 7,675 10,970 32,020 19,520 1,549 ($8,176) 20,233 809 $21,224 21,837 $81,532 568 $20,383 142 EBIT 75,919 69,484 187,444 173,396 88,863 12,866 784 43,845 28,356 7,089 110,456 27,614 Depreciation and amortization 36,308 40,520 38,854 30,153 23,271 21,241 20,580 35,312 8,828 EBITDA $112,227 $110,004 $226,298 $203,549 $112,134 $34,107 $64,425 $145,768 $36,442 Severance expenses Revaluation of tax receivable agreement liability. Secondary offering related expenses (898) 406 1,864 555 (5,336) 1,042 (7,608) (1,902) (Gain) loss on debt extinguishment Stock-based compensation 8,620 Adjusted EBITDA $120,355 8,599 $121,022 6,995 $228,999 4,305 4,704 $212,558 $112,134 (2,251) 361 $32,217 (1,640) 359 $63,144 8,296 $146,456 2,074 $36,614 Revenue Net income (loss) margin Adjusted EBITDA margin $438,589 15.4% 27.4% $348,566 17.0% 34.7% $628,414 24.9% 36.4% $544,135 27.6% 39.1% $341,191 19.5% 32.9% $155,048 (5.3%) 20.8% $221,395 9.6% 28.5% $519,664 15.7% 28.2% $129,916 15.7% 28.2% 29 29 *For the year ended December 31, 2014, we had EBITDA of $88.8 million, representing net income of $59.1 million, excluding net interest expense of $11.2 million, income tax expense of $0.3 million and depreciation and amortization of $18.2 million. There was no early extinguishment of debt in 2014. Stock-based compensation was $1.3 million in 2014. Adjusted EBITDA was equal to $90.1 million. Revenue was $259.5 million, Net Income margin was 22.8% and Adjusted EBITDA margin was 34.7%.
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