Investor Presentaiton
Non-GAAP measures - Adjusted EBITDA and
Adjusted EBITDA Margin
We include net income and net income margin, which are calculated in accordance with U.S. generally accepted accounting principle as well as Adjusted EBITDA and Adjusted
EBITDA margin to provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of certain items. We calculate
Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization. We also exclude other gains and losses, which is primarily comprised of fair value
adjustments on our investments which management does not believe are indicative of our core business performance. From time to time, we will also adjust certain items
from operating income, which we believe is meaningful because it best allows comparison of the performance with that of the comparable period. Adjusted EBITDA margin is
calculated by dividing Adjusted EBITDA by consolidated net sales.
Adjusted EBITDA and Adjusted EBITDA margin are considered non-GAAP financial measures. Management believes, however, that these measures provide meaningful
information about our operational efficiency by excluding the impact of differences in tax jurisdictions and structures, debt levels, capital investments and other items which
management does not believe are indicative of our core business performance. We consider net income to be the financial measure computed in accordance with GAAP that
is the most directly comparable financial measure to our calculation of Adjusted EBITDA. We consider net income margin to be the financial measure computed in
accordance with GAAP that is the most directly comparable financial measure to our calculation of Adjusted EBITDA margin. Although Adjusted EBITDA and Adjusted
EBITDA margin are standard financial measures, numerous methods exist for calculating a company's Adjusted EBITDA and Adjusted EBITDA margin. As a result, the method
used by management to calculate our Adjusted EBITDA and Adjusted EBITDA margin may differ from the methods used by other companies to calculate similarly titled
measures.
Net income margin was 4.9% and 3.4% for the three months ended July 31, 2023 and 2022, respectively. The increase in net income margin was primarily due to the increase
in net income, which was impacted by higher unrealized net gains on our equity and other investments, when compared to the same period in the previous year. Adjusted
EBITDA margin was 6.4% and 6.3% for the three months ended July 31, 2023 and 2022, respectively. The increase in Adjusted EBITDA margin was due to higher operating
income driven primarily by an increase in net sales when compared to the same period in the previous year.View entire presentation