Schedule 1: Reconciliation of Adjusted EBITDA and constant currency revenues
Reconciliation of Non-GAAP Financial Measures to GAAP
Measures
-------------------------------------------------------- ----------------
Non-GAAP constant currency revenue
reconciliation
Three Months ended September 30,
----------------------------------
($ in thousands) 2024 2023
------------------------------------- ---------------- ----------------
Revenues, as reported (GAAP) 35,400 37,496
Foreign currency exchange impact (1) (688)
---------------- ----------------
Revenues, at constant currency
(Non-GAAP) 34,712 37,496
Reconciliation of Adjusted EBITDA
from Continuing Operations
------------------------------------- ---------------- ----------------
Three Months ended September 30,
----------------------------------
($ in thousands) 2024 2023
------------------------------------- ---------------- ----------------
Net loss from Continuing Operations
(GAAP) (1,226) (1,219)
Income tax expense 1,664 1,046
Interest expense including related
party interest expense, net 1,843 1,251
Depreciation and amortization 804 745
---------------- ----------------
EBITDA from Continuing Operations
(Non-GAAP) 3,085 1,823
Restructuring and related expenses (2) 316 309
Employment litigation matter (3) 57 64
Related party management fee and
royalties - 334
Foreign exchange losses, net 668 (530)
Non-cash equity compensation (4) 725 -
Changes in fair value of warrant
liability (5) -
Transaction Fees (5) - 244
---------------- ----------------
Adjusted EBITDA from Continuing
Operations (Non-GAAP) (6) 4,846 2,244
Reconciliation of Adjusted EBITDA
from Discontinuing Operations
------------------------------------- ---------------- ----------------
Three Months ended September 30,
----------------------------------
($ in thousands) 2024 2023
------------------------------------- ---------------- ----------------
Net loss from Discontinuing
Operations, Net of Income Taxes
(GAAP) (1,543) (1,668)
Income tax expense 72 -
Interest expense, net 3 19
Depreciation and amortization 135 350
---------------- ----------------
EBITDA from Discontinuing Operations
(Non-GAAP) (1,333) (1,299)
Restructuring and related expenses
(7) - -
Related party service fees and
royalties - -
Impairment of goodwill 87 -
Foreign exchange losses, net 2 1
---------------- ----------------
Adjusted EBITDA from Discontinuing
Operations (Non-GAAP) (6) (1,244) (1,298)
(1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the quarter ended September 30, 2023, to the revenues during the corresponding period in 2024.
(2) Adjustment represents costs associated with restructuring, including employee severance and vendor and lease termination costs.
(3) Represents the litigation settlement and associated expenses incurred in connection with the Company subsidiary litigation.
(4) Represents the non-cash charges related to restricted stock units and options.
(5) Represents transaction costs incurred as part of the Business Combination.
(6) Supplemental financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures should not be considered as alternatives to operating or net income or cash flows from operating activities, in each case determined in accordance with GAAP. These non-GAAP financial measures are among the indicators used by management to measure the performance of the Company's operations, and also among the criteria upon which performance-based compensation may be based. Adjusted EBITDA also is used by our lenders for debt covenant compliance purposes.
Similar non-GAAP financial measures may be calculated differently by other companies, including other companies in our industry, limiting their usefulness as comparative measures. Because of these limitations, you should consider the non-GAAP financial measures alongside other performance measures and liquidity measures, including operating income, various cash flow metrics, net income and our other GAAP results.
(7) Adjustment represents costs associated with restructuring related to employee severance.
Source: XBP Europe Holdings, Inc.
(END) Dow Jones Newswires
November 12, 2024 16:52 ET (21:52 GMT)
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