The Next Generation Cannabis Platform
Disclaimers
JUSHI HOLDINGS INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
In addition to providing financial measurements based on GAAP, the Company provides additional financial metrics that are not prepared in accordance with GAAP. The Company uses
non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision
making, for planning and forecasting purposes and to evaluate our financial performance. These non-GAAP financial measures are EBITDA, Adjusted EBITDA, and Adjusted EBITDA
Margin (each as defined below). The Company believes that these non-GAAP financial measures reflect our ongoing business by excluding the effects of expenses that are not reflective
of the operating business performance and allow for meaningful comparisons and analysis of trends in the business. These non-GAAP financial measures also facilitate comparing
financial results across accounting periods and to those of peer companies. As there are no standardized methods of calculating these non-GAAP measures, the Company's method may
differ from those used by others, and accordingly, the use of these measures may not be directly comparable to similar measures used by others, thus limiting their usefulness.
Accordingly, these non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance
prepared in accordance with GAAP.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are financial measures that are not defined under GAAP. The Company defines EBITDA as net income (loss), or "earnings", before
interest, income taxes, depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA before: (i) non-cash share-based compensation expense; (ii) inventory-related
adjustments; (iii) fair value changes in derivatives; (iv) other (income)/expense items; (v) transaction costs; (vi) asset impairment; (vii) loss on debt extinguishment; and (viii) start-up
costs. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. These financial measures are metrics that have been adjusted from the GAAP net income
(loss) measure in an effort to provide readers with a normalized metric in making comparisons more meaningful across the cannabis industry, as well as to remove non-recurring,
irregular and one-time items that may otherwise distort the GAAP net income measure. Other companies in the industry may calculate this measure differently, limiting their usefulness
as comparative measures.
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