Strategic Growth & Financial Overview
Analysis of Adjusted EBITDA Relative to Cash Generated
by the Business
Adjusted EBITDA vs Cash Generated Analysis
Adjusted EBITDA
(Left Axis, "A")
Employee loans for new hires
and producers (Left Axis, "B")
Net cash provided by operating activities excluding activity from loan originations and
sales, before the impact of cash used with respect to the 2021 Equity Event (left axis, "C")
($ In Millions)
$700
$600
Cash flow (or B + C) as a percentage of
Adjusted EBITDA (A) (right axis)
$686
100%
$597
$500
$464
$433
$405
$471
75%
$439
$48
$17
$400
$373
$110
50%
$300
$265
$162
$252
$223
$200
$179
$421
$423
$34
$296
$128
25%
$100
$211
$144
$95
$0
0%
2017
2018
2019
2020
2021
TTM 2Q2022
Strong EBITDA conversion
to Cash Generated by the
Business
Notes: The Company recorded "net cash (used in) operating activities excluding activity from loan originations and sales" of $(63.0) million for the year ended December 31, 2021. This reflected $484.4
million of cash used with respect to the 2021 Equity Event. But for this use of cash, net cash provided by operating activities excluding loan originations and sales would have been $421.4 million in the
same period. The figures shown for 2021 and the trailing twelve months ended 6/30/2022 exclude the impact of the 2021 Equity Event. "Employee loans for new hires and producers" is from the line
item "Loans, forgivable loans and other receivables from employees and partners" in the "Consolidated Statements of Cash Flows" and represents the amount of loans issued in the period to both new
hires and with respect to renewals of existing employees and partners. Separately from what is shown on this chart, "Purchases of fixed assets", or capital expenditures, ranged from approximately $19
million to $35 million over the various twelve-month periods shown, and totaled $145 million for the entire 5.5 years depicted. "Other income" related to Nasdaq earn-outs is reflected in cash flows from
investing activities. Furthermore, this chart is for discussion purposes only. Neither Adjusted EBITDA or the modified version of cash flow shown above are intended to be measures of free cash flow or
GAAP cash flow from operations, because these measures do not consider certain cash requirements, such as capital expenditures, tax payments, and/or debt service payments.
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