Investor Presentaiton
Forward Looking Statements & Non-GAAP Measures (cont.)
Freshpet defines Adjusted Gross Profit as gross profit before depreciation expense, plant start-up expense, COVID-19 expenses and non-cash share-based
compensation, and Adjusted SG&A as SG&A expenses before depreciation and amortization expense, non-cash share-based compensation, launch expense,
gain (loss) on disposal of equipment, fees related to equity offerings of our common stock, implementation and other costs associated with the
implementation of an ERP system and COVID-19 expenses.
Management believes that the non-GAAP financial measures are meaningful to investors because they provide a view of the Company with respect to ongoing
operating results. Non-GAAP financial measures are shown as supplemental disclosures in this presentation because they are widely used by the investment
community for analysis and comparative evaluation. They also provide additional metrics to evaluate the Company's operations and, when considered with
both the Company's GAAP results and the reconciliation to the most comparable GAAP measures, provide a more complete understanding of the Company's
business than could be obtained absent this disclosure. Adjusted EBITDA is also an important component of internal budgeting and setting management
compensation. The non-GAAP measures are not and should not be considered an alternative to the most comparable GAAP measures or any other figure
calculated in accordance with GAAP, or as an indicator of operating performance. The Company's calculation of the non-GAAP financial measures may differ
from methods used by other companies. Management believes that the non-GAAP measures are important to an understanding of the Company's overall
operating results in the periods presented. The non-GAAP financial measures are not recognized in accordance with GAAP and should not be viewed as an
alternative to GAAP measures of performance.
Certain of these measures represent the Company's guidance for fiscal year 2021. The Company is unable to reconcile these forward-looking non-GAAP
financial measures to the most directly comparable GAAP measures without unreasonable efforts because the Company is currently unable to predict with a
reasonable degree of certainty the type and impact of certain items, including the timing of and amount of costs of goods sold and selling, general and
administrative expenses, that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. The unavailable
information could significantly impact our financial results. These items are not within the Company's control and may vary greatly between periods. Based on
the foregoing, the Company believes that providing estimates of the amounts that would be required to reconcile these forecasted non-GAAP measures to
forecasted GAAP measures would imply a degree of precision that would be confusing or misleading to investors for the reasons identified above.
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