Olaplex Results Presentation Deck
NON-GAAP RECONCILIATION
Adjusted EBITDA ($MM)
1.
2.
Net Income
Income tax provision
Depreciation and amortization of
intangible assets
Interest expense
Loss on extinguishment of debt¹
Non-recurring litigation costs²
Inventory write off and disposal ³
Share-based compensation
Non-capitalizable IPO and strategic
transaction costs4
Adjusted EBITDA
Adjusted EBITDA margin
3.
For the Quarter Ended
June 30
2022
$ 88
22
Q2 2022 EARNINGS
12
9
2
$ 133
63.1%
2021
$ 49
11
12
16
14
1
2
$ 105
69.3%
For the Six Months
Ended June 30
2022
2021
$150
38
25
20
19
4
$259
65.3%
$95
23
25
31
14
1
2
$191
70.8%
Adjusted Gross Profit ($MM)
Gross Profit
Amortization of patented formulations
20
Adjusted Gross Profit
For the Quarter Ended June 30
2022
$156
3
$ 159
2021
$ 121
On February 23, 2022, the Company refinanced its existing secured credit facility with a new credit agreement comprised of a $675 million senior secured term loan facility and a $150 million senior secured revolving credit facility. This refinancing resulted in recognition of loss on extinguishment of
debt of $19 million which is comprised of $11 million in deferred financing fee write off, and $8 million of prepayment fees for the previously existing credit facility. Loss on extinguishment of debt is included as non-ordinary costs and fees in the reconciliations above.
The inventory write-off and disposal costs relate to unused stock of a product that the Company reformulated in June 2021 as a result of regulation changes in the E.U. In the interest of having a single formulation for sale worldwide, the Company reformulated on a global basis and is now
disposing of unused stock.
4. Represents non-capitalizable professional fees and executive severance incurred in connection with the Company's initial public offering and the Company's public company transition.
2
$ 123
Represents costs incurred related to the payment to LIQWD, Inc. ("LIQWD"), a predecessor entity to the Company substantially all of whose assets and liabilities were purchased as part of the the acquisition of the Olaplex, LLC business in 2020 by certain investment funds affiliated with Advent
International Corporation and other investors (the "Acquisition"), of certain amounts due in connection with the resolution of certain litigation and contingency matters involving LIQWD, which amounts were required to be paid pursuant to the purchase agreement for the Acquisition.
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