Sustainable Growth and Financial Review slide image

Sustainable Growth and Financial Review

Non-GAAP reconciliation - adjusted income from operations¹ ($M) FY2017 FY2018 FY2019 FY2020 FY2021 1Q22 1Q21 Income from operations $280 $376 $208 $287 $534 $135 $76 Litigation and audit assessments² 6 13 (14) 64 . Goodwill impairment³ Duplicate chassis costs4 15 WSL contingent (14) consideration adjustment Acquisition-related costs Restructuring charges 2 35 I 64 1 11 2 I I Property gain net (51) Adjusted income from operations $282 $384 $306 $301 $533 $148 $76 Notes: 1 Table may not sum due to rounding. 2 2018 Costs associated with the settlement of a lawsuit that challenged Washington state labor law compliance; 2020 - Costs resulting from an adverse excise tax ruling in 2020 related to an excise tax audit by the IRS for tax years 2011-2013; 2021- Subsequent recovery of 2020 taxes and interest. 2022- Includes a $59.0M adverse judgment related to a lawsuit with former owners of WSL and $5.2M of charges related to an adverse audit assessment for state sales tax on rolling stock equipment used within that state. 3 The Company recorded impairment charges for its Asia reporting unit in 2018 and 2021 and a full impairment of its FTFM reporting unit in 2019. 4 As of December 31, 2017, the Company completed its migration to an owned chassis model, which required the replacement of rented chassis with owned chassis. Accordingly, the Company adjusted its income from operations for rental costs related to idle chassis as rented units were replaced. 5 Represents a fair value adjustment to the contingent consideration related to the acquisition of Watkins Shepard and Lodeso (WSL). 6 Advisory, legal, and accounting costs related to the December 31, 2021 acquisition of MLS. 13 Investor presentation SCHNEIDER
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