Inovalon Results Presentation Deck
Reconciliation of Forward-Looking Guidance Adjusted
EBITDA
Inovalon defines Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) as net income or loss calculated in
accordance with GAAP, adjusted for the impact of depreciation and amortization, other expense, net, interest income, interest expense, provision for
income taxes, stock-based compensation, acquisition costs, restructuring expense, tax on equity exercises, and other non-comparable items. Adjusted
EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. A reconciliation of net income to Adjusted EBITDA follows:
Guidance Range
(In millions)
Reconciliation of Forward-Looking Guidance Net (loss) income to Adjusted EBITDA:
Net (loss) income
Depreciation and amortization
Interest expense
Interest income
Provision for income taxes (¹)
EBITDA
Stock-based compensation
Acquisition costs:
Transaction costs
Integration costs
Contingent consideration
Other non-comparable items (2)
Adjusted EBITDA
Adjusted EBITDA margin
Three Months Ending
September 30, 2019
Low
High
INOV Q2 2019 Earnings Supplement (7.31.19) v1.0.0
3
27
17
(1)
47
6
53
32.6%
GA
$
27
17
(1)
48
6
57
34.0%
69
$
Year Ending
December 31, 2019
Low
High
107
66
(2)
176
20
1
3
4
205
32.1%
GA
69
$
9
107
(2)
3
183
20
1
42
214
33.0%
A 28% statutory tax rate is assumed in order to approximate the Company's effective corporate tax rate.
Other "non-comparable items include items that are not comparable across reporting periods or items that do not otherwise relate to the Company's ongoing financial results, such as certain employee related expenses attributable to advancements in automation and operational
efficiencies, and legal expenses beyond those in the normal course of business. Non-comparable items are excluded from Adjusted EBITDA in order to more effectively assess the Company's period over period and ongoing operating performance.
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