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EX-32.2 - EXHIBIT 32.2 - HILLMAN COMPANIES INCexhibit322-certificationof.htm
EX-32.1 - EXHIBIT 32.1 - HILLMAN COMPANIES INCexhibit321-certificationof.htm
EX-31.2 - EXHIBIT 31.2 - HILLMAN COMPANIES INCexhibit312-certificationof.htm
EX-31.1 - EXHIBIT 31.1 - HILLMAN COMPANIES INCexhibit311-certificationof.htm
10-Q - 10-Q - HILLMAN COMPANIES INChillman10-q92918.htm
Exhibit 99

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (Unaudited)
(dollars in thousands)

EBITDA and Adjusted EBITDA are not measures made in accordance with U.S. generally accepted accounting principles (“GAAP”), and as such, should not be considered a measure of financial performance or condition, liquidity, or profitability. It should not be considered an alternative to GAAP-based net income or income from operations or operating cash flows. Further, because not all companies use identical calculations, amounts reflected by Hillman as EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is included to satisfy a reporting obligation under our indenture. Adjusted EBITDA as presented herein does not include certain adjustments and pro forma run rate measures contemplated by our senior secured credit facilities and our indenture and may also include additional adjustments that were not applicable at the time of the offering of the senior notes governed by our indenture. Adjusted EBITDA is also one of the performance criteria for the Company's annual performance-based bonus plan. The reconciliation of Net Loss to Adjusted EBITDA is presented below.

 
 
Thirteen Weeks Ended
Thirty-nine Weeks Ended
 
 
September 29,
September 30,
September 29,
September 30,
 
 
2018
2017
2018
2017
Net loss
 
$
(10,708
)
$
(1,322
)
$
(34,556
)
$
(6,787
)
Income tax provision (benefit)
 
(1,565
)
(538
)
2,182

(4,759
)
Interest expense, net
 
16,122

12,787

44,054

37,960

Interest expense on junior subordinated debentures
 
3,152

3,152

9,456

9,456

Investment income on trust common securities
 
(95
)
(95
)
(284
)
(284
)
Depreciation
 
12,004

7,300

30,481

25,473

Amortization
 
10,437

9,500

29,872

28,442

EBITDA
 
29,347

30,784

81,205

89,501

 
 
 
 
 
 
   Stock compensation expense
 
227

472

1,219

2,025

   Management fees
 
134

127

396

390

   Acquisition and integration expense
 
4,479

53

6,941

53

   Non-recurring legal fees
 


45

65

   Canada Restructuring (1)
 
2,523


2,774


   Restructuring and other costs (2)
 
1,361

1,628

7,578

5,898

   Refinancing costs
 


8,542


   Anti-dumping duties
 

4,128

(4,128
)
6,274

   Mark-to-market adjustment on interest rate swaps
 
(259
)
(318
)
(1,677
)
(984
)
Adjusted EBITDA
 
$
37,812

$
36,874

$
102,895

$
103,222




1.
Includes charges related to a restructuring plan announced in our Canada segment in the third quarter of 2018, including facility consolidation and charges relating to exiting certain lines of business. See Note 9 - Restructuring of the Notes to the Condensed Consolidated Financial statements for additional information.
2.
Includes restructuring and other costs associated with the implementation of a new pricing program, cost associated with implementing our ERP system in Canada, costs to relocate our distribution center in Edmonton, Canada, costs associated with relocating our distribution center in Dallas, Texas, and start up costs for the hub facility located on the U.S. West Coast.