Investor Presentaiton
Attractive Credit Facility with Limited Financial Risk
•
Term Loan Agreement has
no negative financial
maintenance covenants
Minimal required Term Loan
amortization $2.8 million per
year. Satisfied for 2020 and
2021 as result of Excess
Cash Flow payment made in
April 2020(4)
In the fourth quarter of 2020,
we may shorten payment
terms to certain vendors and
increase inventory levels to
meet expected 2021 demand.
These measures would
cause our debt level to be
higher than it would
Credit Facility due 2023
Senior Secured Term Loan due 2025
262.6
262.6
269.5
270.2
270.9
September 30, 2020
June 30, 2020
March 31, 2020
December 31, 2019 September 30, 2019
($ in millions)
$25.7
$27.4
$74.4
$32.8
$91.2
Less: Cash
(42.7)
(63.5)
(85.3)
(11.4)
(4.8)
Net Debt
245.6
226.5
258.6
291.6
357.3
LTM Adjusted EBITDA (1)
72.7
69.3
61.2
64.1
69.6
Adjusted Leverage Ratio(2)
3.4x
3.3x
4.2x
4.5x
5.1x
otherwise be if we don't take
the aforementioned actions.
Borrowing Capacity (3) plus Cash
$164.4
$183.4
$136.7
$126.3
$60.4
LifetimeBrands
(1) Adjusted EBITDA, and Adjusted EBITDA before limitation, represents a non-GAAP financial measure. This non-GAAP financial measures is provided because the Company uses it in evaluating its financial results and trends and as an
indicator of business performance. See appendix pages for a reconciliation to the most directly comparable GAAP measure.
(2) Adjusted Leverage Ratio, a non-GAAP financial measure, is a calculated ratio of Adjusted EBITDA over Net Debt
(3) Borrowing Capacity is a measure defined in the Company's debt agreements as "availability" and disclosed as such in the Company's quarterly and annual reports on Forms 10-Q and 10-K, respectively.
(4) The Term Loan facility requires quarterly payments, which commenced June 30, 2018, of principal equal to 0.25% of the original aggregate principal amount of the Term Loan facility. Per the Debt Agreements, when an Excess Cash Flow
payment is made by the Company, the payment is first applied to satisfy the future quarterly required payments in order of maturity.
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