Investor Presentation Reconciliation of Non-GAAP measures Included in this presentation, we have disclosed certain non-GAAP measures as defined by Regulation G. The following reconciles these items to net income and cash flows as reported under GAAP. Adjusted EBITDA is defined as net income attributable to the Company before the effect of net interest expense, income taxes, depreciation, depletion and amortization, accretion on asset retirement obligations, amortization of sales contracts and reorganization items, net. Adjusted EBITDA may also be adjusted for items that may not reflect the trend of future results by excluding transactions that are not indicative of the Company's core operating performance. Adjusted EBITDA is not a measure of financial performance in accordance with generally accepted accounting principles, and items excluded from Adjusted EBITDA are significant in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income from operations, cash flows from operations or as a measure of our profitability, liquidity or performance under generally accepted accounting principles. The Company uses adjusted EBITDA to measure the operating performance of its segments and allocate resources to the segments. Furthermore, analogous measures are used by industry analysts and investors to evaluate our operating performance. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies. The table below shows how we calculate Adjusted EBITDA. Successor Successor Octobe r 2, 2016 through De ce m be r 31, 2016 (Unaudited) Pre de cess or Thre e M onths Ende d De ce m be r 31, 2017 (Unaudited) Tw e lve M onths Ende d De ce m be r 31, 2017 January 1, 2016 thr ough Octobe r 1, 2016 (Unaudited) (Unaudited) 238,450 (35,255) 24,256 122,464 30,209 53,985 - (21,297) 2,547 2,398 - Net income Provision for (benefit from) income taxes Interest expense, net Depreciation, depletion and amortization Accretion on asset retirement obligations Amortization of sales contracts, net Asset impairment and mine closure costs $ 81,271 $ $ 33,449 1,156 10,754 32,604 7,634 796 - - - 759 7,345 $ 1,242,081 (4,626) 133,235 191,581 24,321 (728) 129,267 - 2,213 (1,630,041) - (34,771) 4,945 27,928 7,383 11,082 - 277 - Gain on sale of Lone Mountain Processing, Inc. Net loss resulting from early retirement of debt and debt restructuring Reorganization items, net Fresh start coal inventory adjustment (494) - Adjusted EBITDAR $ 97,621 $ 417,757 $ 94,497 $ 87,303 29
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