Financial Overview slide image

Financial Overview

Reconciliations of Non-GAAP Financial Measures LTM Adjusted EBITDA We define LTM Adjusted EBITDA as adjusted EBITDA (defined previously) for the last twelve months. Reconciliation of net income to LTM EBITDA and Adjusted EBITDA: Net income Interest, net Income tax expense Depreciation and amortization Last Twelve Months Ended September 30, 2023 December 31, 2022 ($ in millions) 33.7 $ 36.5 27.5 29.6 12.3 12.6 15.7 14.9 $ 89.3 $ 93.6 Free Cash Flow We define Free Cash Flow as cash flow from operating activities less capital expenditures. We use this metric in analyzing our ability to service and repay our debt. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service our debt. cpi EBITDA Adjustments to EBITDA: Stock-based compensation expense $ 5.0 $ 3.5 Sales tax (benefit) expense (1) (0.0) 0.0 (2) Restructuring and other charges 2.2 Loss on debt extinguishment (3) 0.3 0.5 Foreign currency loss 0.0 0.1 Subtotal of adjustments to EBITDA $ 7.5 $ 4.1 LTM Adjusted EBITDA $ 96.8 $ 97.7 (1) Represents estimated sales tax (benefit) expense relating to a contingent liability due to historical activity in certain states where it is probable that the Company will be subject to sales tax plus interest and penalties. (2) Represents accrued executive retention to be paid in 2024. (3) The Company redeemed a portion of the 8.625% Senior Secured Notes through the third quarters of 2023 and 2022 and expensed the associated portion of the unamortized deferred financing costs. Three Months Ended September 30, 2023 2022 Nine Months Ended September 30, 2023 2022 Reconciliation of cash provided by (used in) operating activities - (GAAP) to Free Cash Flow: ($ in millions) Cash provided by operating activities $ 11.9 $ 19.9 $ Capital expenditures for plant, equipment and leasehold improvements, net Free Cash Flow 0.5 (6.3) $ 12.5 $ 13.6 $ 22.3 (6.1) 16.2 $ $ 11.7 (14.4) (2.7) 17
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