Debt Restructure and WorkPlace Signed Deals
Terms and definitions (cont'd)
Financial Metrics:
Systemwide Revenue: systemwide location membership and service revenues represents the results of all locations regardless of ownership, including Consolidated and Unconsolidated
Locations.
- Location Operating Expenses: include the day-to-day costs of operating an open location and exclude pre-opening costs, depreciation and amortization and sales and marketing, which are
separately recorded.
°
о
о
Lease Cost: is recognized on a straight-line basis over the life of the lease term in accordance with GAAP and is the most significant component of location operating expenses
Direct Other Location Expenses: include utilities, ongoing repairs and maintenance, cleaning expenses, office expenses, security expenses, credit card processing fees and food and
beverage costs. Direct location operating expenses also include personnel and related costs for the teams managing our buildings.
Indirect Other Location Expenses: include certain expenses that are necessary to operate our buildings but not directly tied to an individual building. Examples of these expenses include
certain regional management and teams managing member relations, new member sales and facilities management.
- Pre-Opening Expense: consist of expenses (including all lease costs, which also include non-cash GAAP straight-line lease cost) incurred before a location opens for member operations.
Excludes depreciation and amortization expense and stock-based compensation expense.
- SG&A: consist of sales and marketing, general and administrative and sourcing, development and other expenses, and certain community support expenses that are necessary to operate our
buildings but not directly tied to an individual building. Excludes depreciation and amortization expense, stock-based compensation expense, expense related to stock-based payments for
services rendered by consultants, expense related to costs associated with mergers, acquisitions divestitures, and capital raising activities, legal, tax, and regulatory reserves or settlements.
Building Margin: is a non-GAAP measure we define as membership and services revenue, excluding management fees earned at our Unconsolidated Locations, less location operating expenses,
before depreciation and amortization, stock-based compensation and certain indirect location operating overhead expenses.
- Adj. EBITDA: and Adjusted EBITDA attributable to WeWork Inc. are non-GAAP measures we define as net loss before income tax (benefit) provision, interest and other (income) expense, net,
depreciation and amortization expense, restructuring and other related cost, impairment /(gain on sale) of goodwill, intangibles and other assets, stock-based compensation expense,
stock-based payments for services rendered by consultants, change in fair value of contingent consideration liabilities, legal, tax and regulatory reserves and settlements, legal costs incurred
by the Company in connection with regulatory investigations and litigation, and expenses related to costs associated with mergers, acquisitions, divestitures and capital raising activities.
Adjusted EBITDA attributable to WeWork Inc. includes the Company's share of Adjusted EBITDA from consolidated joint ventures and investments accounted for under the equity method, as
applicable.
-Free Cash Flow: is a non-GAAP measure we define as net cash provided by (used in) operating activities less purchases of property, equipment and capitalized software, each as presented in the
Company's condensed consolidated statements of cash flows and calculated in accordance with GAAP.
26
wework
© 2023 WeWorkView entire presentation