Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Nexeo Solutions Holdings, LLC | d397083d8k.htm |
Exhibit 99.1
Nexeo Solutions Holdings, LLC
Management EBITDA Reconciliation
(in thousands)
| Q4 FY11(8) | Q1 FY12(8) | Q2 FY12(8) | Q3 FY12 | Q3 FY12 LTM |
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| Net Income |
(11,224 | ) | (12,028 | ) | 7,230 | 6,601 | (9,421 | ) | ||||||||||||
| Interest |
11,574 | 11,149 | 11,487 | 11,103 | 45,313 | |||||||||||||||
| Taxes |
1,126 | (408 | ) | 1,341 | 766 | 2,825 | ||||||||||||||
| Depreciation and Amortization |
9,866 | 10,081 | 10,824 | 9,378 | 40,149 | |||||||||||||||
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| EBITDA |
11,342 | 8,794 | 30,882 | 27,848 | 78,866 | |||||||||||||||
| Management add-backs (1) |
6,421 | 5,186 | 8,528 | 7,467 | 27,602 | |||||||||||||||
| Non-cash charges (2) |
(945 | ) | 627 | (303 | ) | 355 | (266 | ) | ||||||||||||
| Management Fees (3) |
1,670 | 1,423 | 1,553 | 1,691 | 6,337 | |||||||||||||||
| Letter of Credit Fees not included in Interest Expense |
157 | 157 | 48 | 327 | 689 | |||||||||||||||
| Compensation expense related to management equity plan (non-cash) |
97 | 478 | 754 | 326 | 1,655 | |||||||||||||||
| LIFO to Ave Cost accounting principle change (4) |
— | 5,532 | — | — | 5,532 | |||||||||||||||
| Transitional pension and medical payments – Ashland Employees (5) |
1,344 | 296 | 118 | 145 | 1,903 | |||||||||||||||
| Non-cash transaction related costs (6) |
10,000 | — | — | — | 10,000 | |||||||||||||||
| Transaction and other one-time costs (7) |
6,786 | 1,951 | 2,148 | 804 | 11,689 | |||||||||||||||
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| Adjusted Management EBITDA (8) |
36,872 | 24,444 | 43,728 | 38,963 | 144,007 | |||||||||||||||
| (1) | One-time costs related to the carve out of the business from Ashland, including headquarters relocation costs, certain severance and recruitment costs, and other project-related costs |
| (2) | Unrealized foreign exchange gains and losses |
| (3) | Management, monitoring, consulting and leverage fees, per the agreement with TPG |
| (4) | Cumulative adjustment for LIFO to average cost inventory accounting method change |
| (5) | Transitional pension and medical payments owed to certain Ashland employees pursuant to the Agreement of Purchase and Sale, dated November 5, 2010 by and between Ashland Inc. and Nexeo Solutions, LLC (formerly TPG Accolade, LLC), as amended |
| (6) | Accrual for investment advisory fee payable to TPG upon closing of the joint venture with the shareholders of Beijng Plaschem Trading Co. Ltd (the “China Joint Venture Acquisition”) |
| (7) | Professional and transaction costs related to the acquisition of the global distribution business of Ashland, the China Joint Venture Acquisition and other potential acquisitions |
| (8) | We have revised our calculation of Adjusted Management EBITDA from prior periods to include interest income and letter of credit fees that were not previously included. Adjusted Management EBITDA for the quarterly periods ending Q4 2011, Q1 and Q2 2012 differ from amounts previously furnished to reflect this new formulation and to correct for minor errors in the adjustments to calculate Adjusted Management EBITDA |