Hagerty Investor Presentation Deck
RECONCILIATION OF NON-GAAP METRICS
Basic Earnings Per Share to Adjusted Earnings (Loss) Per Share
IN THOUSANDS (EXCEPT PER SHARE AMOUNTS)
Numerator:
Net income available to Class A Common Stockholders¹
Undistributed earnings allocated to Series A Convertible Preferred Stock
Accretion of Series A Convertible Preferred Stock
Net income (loss) attributable to non-controlling interest
Consolidated net income
Change in fair value of warrant liabilities
Revaluation gain on previously held equity method investment
Adjusted consolidated net income (loss)²
Denominator:
Weighted-average shares of Class A Common Stock Outstanding - basic¹
Total potentially dilutive shares outstanding:
Conversion of non-controlling interest Hagerty Group Units to Class A Common Stock
Conversion of Series A Convertible Preferred Stock to Class A Common Stock
Total unissued share-based compensation awards
Total warrants outstanding
Potentially dilutive shares outstanding
Fully dilutive shares outstanding²
Basic Earnings per Share¹
Adjusted Earnings (Loss) per Share²
Q3 2023
$3,255
261
1,838
13,269
18,623
(850)
$17,773
84,479
255,499
6,785
8,490
19,484
290,258
374,737
$0.04
$0.05
Q3 2022
$14,714
9,599
24,313
(11,583)
(34,735)
$(22,005)
82,816
255,758
6,878
19,484
282,120
364,936
$0.18
$(0.06)
YTD 2023
$3,712
110
1,838
13,477
19,137
1,419
$20,556
84,042
255,499
6,785
8,490
19,484
290,258
374,300
$0.04
$0.05
YTD 2022
$36,685
(2,049)
34,636
(37,869)
(34,735)
$(37,968)
82,569
255,758
6,878
19,484
282,120
364,689
$0.44
$(0.10)
¹ Numerator and Denominator of the GAAP measure Basic EPS
2 Numerator and Denominator of the non-GAAP measure Adjusted EPS
Adjusted EPS
We define Adjusted Earnings (Loss) Per Share ("Adjusted EPS") as consolidated Net income (loss), less the change in fair value of our warrants divided by our outstanding and total potentially dilutive securities, which includes (i) the weighted-average issued and outstanding shares of
Class A Common Stock; (ii) all issued and outstanding non-controlling interest Hagerty Group Units; (iii) all unexercised warrants; (iv) all unissued share-based compensation awards; and (v) all issued and outstanding shares of the Series A Convertible Preferred Stock.
In the third quarter of 2022, we began removing (i) the change in fair value of our warrants and (ii) the revaluation gain on previously held equity method investment from consolidated Net income (loss) for purposes of calculating Adjusted EPS. For comparability, references to prior
period non-GAAP measures have been updated to show the effect of removing the change in the fair value of our warrants from Adjusted EPS. We believe this updated presentation of Adjusted EPS enhances investors' understanding of our financial performance from activities
occurring in the ordinary course of our business..
The most directly comparable GAAP measure is basic earnings per share ("Basic EPS"), which is calculated as Net income (loss) available to Class A Common Stockholders divided by the weighted average number of Class A Common Stock shares outstanding during the period.
We caution investors that Adjusted EPS is not a recognized measure under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, including
Basic EPS, and that Adjusted EPS, as we define it, may be defined or calculated differently by other companies. In addition, Adjusted EPS has limitations as an analytical tool and should not be considered as a measure of profit or loss per share. HAGERTY Q3 2023 | 15View entire presentation