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Investor Presentaiton

Adjusted EBITDA — U.S. GAAP Reconciliation LTM September 2019 - Three Months Ended December 31, 2018 March 31, 2019 June 30, 2019 (in millions) September 30, 2019 Twelve Months Ended September 30, 2019 Net income (loss) as reported Undistributed equity (earnings) losses, net $10.0 $(4.9) $(11.5) $(13.5) $(19.9) (0.1) 0.1 0.1 0.2 0.3 Income tax provision (benefit) Interest expense Depreciation and amortization 7.6 (2.5) (5.8) 15.1 14.4 5.6 4.9 4.7 5.2 20.4 6.5 6.4 6.3 6.1 25.3 Impairment of goodwill Stock compensation expense Contingent consideration fair value adjustment ― - 9.7 9.7 1.1 0.9 1.2 1.5 4.7 (1.8) (1.8) Unrealized gain on foreign currency contracts SKU Rationalization | │ 8.5 8.5 Acquisition and divestment related expenses 0.5 0.2 ― 0.7 Restructuring expenses 1.0 0.6 0.2 0.3 2.1 Integration charges 0.4 0.2 0.7 0.2 1.5 Warehouse relocation 0.1 0.2 0.9 1.2 Projected synergies 2.5 Adjusted EBITDA, before limitation $30.9 $6.1 $4.4 $25.7 $69.6 Permitted non-recurring charge limitation Adjusted EBITDA $(8.5) $61.1 LifetimeBrands Adjusted EBITDA is a non-GAAP financial measure which is defined in the Company's debt agreements. Adjusted EBITDA is defined as net income (loss), adjusted to exclude undistributed equity in (earnings) losses, income tax provision (benefit), interest, depreciation and amortization, stock compensation expense, and SKU rationalization expenses 48
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