EX-99.1 2 ss2023297_ex9901.htm RECONCILIATION OF NON-GAAP MEASURE

Exhibit 99.1

 

RECONCILIATION OF EBITDA AND ADJUSTED EBITDA TO NET INCOME

(unaudited; in thousands)

   Thirteen Weeks Ended
   March 31, 2023  March 25, 2022
Net income  $1,401   $1,385 
Interest expense   10,006    4,365 
Depreciation   7,011    5,889 
Amortization   4,697    3,356 
Provision for income tax expense   492    514 
EBITDA (1)   23,607    15,509 
           
Adjustments:          
Stock compensation (2)   5,334    3,043 
Other operating expenses, net (3)   1,672    1,163 
Duplicate rent (4)   1,615    1,736 
           
Adjusted EBITDA (1)  $32,228   $21,451 

 

1.We are presenting EBITDA and Adjusted EBITDA, which are not measurements determined in accordance with the U.S. generally accepted accounting principles, or GAAP, because we believe these measures provide additional metrics to evaluate our operations and which we believe, when considered with both our GAAP results and the reconciliation to net income, provide a more complete understanding of our business than could be obtained absent this disclosure. We use EBITDA and Adjusted EBITDA, together with financial measures prepared in accordance with GAAP, such as revenue and cash flows from operations, to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. The use of EBITDA and Adjusted EBITDA as performance measures permits a comparative assessment of our operating performance relative to our performance based upon GAAP results while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies.
2.Represents non-cash stock compensation expense associated with awards of restricted shares of our common stock and stock options to our key employees and our independent directors.
3.Represents non-cash changes in the fair value of contingent earn-out liabilities related to our acquisitions, non-cash charges related to asset disposals, certain third-party deal costs incurred in connection with our acquisitions or financing arrangements and certain other costs.
4.Represents duplicate rent and occupancy costs for our Los Angeles, CA, Richmond, CA, Miami, FL and Portland, OR facilities.