Federal Signal Investor Presentation Deck
Appendix V: Non-GAAP Measures (Adjusted EBITDA)
$ millions, except %
Net income
Add:
Interest expense
Acquisition and integration-related expenses (benefits)
Other expense (income), net
Income tax expense
Depreciation and amortization
Consolidated adjusted EBITDA
Net Sales
Consolidated adjusted EBITDA margin
a
$
$
$
Q2 2023
40.3
$
5.6
0.6
1.1
12.4
15.5
75.5 $
442.4 $
17.1%
Q2 2022
33.5
1.9
(1.7)
(0.3)
11.1
13.7
58.2
366.7
15.9%
Adjusted EBITDA and adjusted EBITDA margin
The Company uses adjusted EBITDA and the ratio of
adjusted EBITDA to net sales ("adjusted EBITDA margin"),
as additional measures which are representative of its
underlying performance and to improve the comparability
of results across reporting periods. We believe that
investors use versions of these metrics in a similar
manner. For these reasons, the Company believes that
adjusted EBITDA and adjusted EBITDA margin are
meaningful metrics to investors in evaluating the
Company's underlying financial performance. Other
companies may use different methods to calculate
adjusted EBITDA and adjusted EBITDA margin.
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