Investor Presentaiton
Additional Definitions
Free cash flow
To better understand trends in our business, we believe that it is helpful to subtract amounts for capital expenditures consisting of cash payments
for property, plant and equipment and cash payments for investments in displays from cash flows from continuing operations which is how we
define free cash flow. Management believes this measure gives investors an additional perspective on cash flow from operating activities in
excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations.
Net leverage
Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and
borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.
We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing 12 months Adjusted EBITDA.
A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with
GAAP are set forth on the following tables.
American Woodmark
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