Shoals Results Presentation Deck slide image

Shoals Results Presentation Deck

RECONCILIATION OF NON-GAAP MEASURES 3 Months Ended June 30, 2022 $ 7,303 6 Months Ended June 30, 2022 2021 2021 $ 9,154 $ 11,952 8,006 4,170 1,511 470 3,620 (339) 3,033 893 411 2,238 1,996 4,509 1,664 $, thousands Net Income (loss) Interest expense, net Income tax expense Depreciation expense Amortization of intangibles Tax receivable agreement liability adjustment Loss on debt repayment Equity-based compensation Acquisition-related expenses COVID-19 expenses (b) Non-recurring and other expenses Adjusted EBITDA $, thousands (c) Net income (loss) attributable to Shoals Technologies Group, Inc. (b) Net income (loss) impact from pro forma conversion of Class (d) B common stock to Class A common stock (e) Adjustment to the provision for income tax Tax effected net income (loss) Amortization of intangibles Amortization of deferred financing costs Tax receivable agreeement liability adjustment (a) Loss on debt repayment Equity-based compensation Acquisition-related expenses COVID-19 expenses Non-recurring and other expenses (f) Tax impact of adjustments Adjusted Net Income (a) (c) 4,063 12 $ 19,767 $ 4,402 2,901 3 Months Ended June 30, 2022 2021 (686) 6,617 2,238 408 4,063 12 (1,588) 2,780 $ 11,750 - 106 1,239 $ 20,631 $ 4,558 4,596 (942) 8,212 1,996 305 1,664 2,780 106 1,239 (1,635) $ 14,667 7,896 12 $36,301 $ 7,042 6 Months Ended June 30, 2022 2021 4,910 (1,159) 10,793 4,509 684 7,896 12 $ 820 7,329 (1,814) 816 3,992 1,664 15,990 4,172 (3,093) $ 20,801 161 1,578 $ 34,708 $ 1,699 (879) 192 1,012 3,992 675 1,664 15,990 4,172 161 1,578 (5,806) $ 23,438 (a) Represents an adjustment to eliminate the remeasurement of the payable pursuant to the TRA. (b) Represents costs incurred as a direct impact from the COVID-19 pandemic, disinfecting and reconfiguration of facilities, medical professionals to conduct daily screenings of employees, premium pay during the pandemic to hourly workers in 2020 and direct legal costs associated with the pandemic. (c) Represents certain costs associated with non-recurring professional services, Oaktree's expenses and other costs. (d) Reflects net income (loss) to Class A common shares from pro forma exchange of corresponding shares of our Class B common shares held by our Founder and management. (e) Shoals Technologies Group, Inc. is subject to U.S. Federal income taxes, in addition to state and local taxes with respect to its allocable share of any net taxable income of Shoals Parent LLC. The adjustment to the provision for income tax reflects the effective tax rates below, assuming Shoals Technologies Group, Inc. owns 100% of the units in Shoals Parent LLC. (f) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax. shoals © 2022 Shoals Technologies Group 39
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