NON-GAAP FINANCIAL MEASURES RECONCILIATION (CONT.) The following table provides a reconciliation of distributable cash flow and adjusted EBITDA to net income (loss): See Note 1 of our financial statements, Description of Business and Basis of Presentation, to our Annual Report on the 10-K for basis of presentation. Hfii!iipifiiMftiUE'I·MI:Ift.JMI:IfUIII!,,I:IfUI&Fftil:l ($3,801) ($8,923) $9,387 $13,356 $3,544 ($19,335) $11,248 $9,196 $11,505 $9,334 $751 $625 $1,486 ($3,282) $3,952 $10,031 $9,047 $9,408 $8,645 $11,208 $9,633 $9,801 $9,445 $1,013 $350 ($2,334) ($281) $11,046 $525 $26,962 $2,472 $1,781 $656 $1,944 ($6,787) $2,480 $244 ($3,463) ($804) $1,343 $2,010 $289 $769 $16,590 1 2 3 $4,927 $21,616 $2 $33,760 $30 $30,226 ($7) $21,072 $153 $17,573 · $8,897 $8,848 $8,986 $7,839 $8,772 $8,373 $836 $17,229 $2,773 $14,456 $928 $11,840 $2,042 $9,798 $1,620 $23,154 $1,671 $21,483 $1,638 $20,749 $1,532 $19,217 $1,226 $11,074 $1,400 $9,674 $388 $8,812 $1,264 $7,548 1) Includes a) $10.9 million of MSA Fee Waivers in connection with the Hamlet Transaction where the Sponsor agreed to waive such fees that otherwise would be owed by (i) the First JV until the later of July 1, 2019 or commencement of commercial operations of the Hamlet plant, and (ii) the Partnership until June 30, 2020; b) $2.7 million of MSA Fee Waivers from our Sponsor as consideration for our assignment of two shipping contracts to our Sponsor, and c) $0.9 million of MSA Fee Waivers pursuant to the management services agreement between the First JV and the Sponsor prior to the Hamlet Transaction; 2) Includes $4.2 million of incremental costs incurred during the first quarter of 2019, which are unrepresentative of our ongoing operations, in connection with our evaluation of the potential purchase of a third-party wood pellet production plant (the "Potential Target") When we commenced our review, the Potential Target had recently returned to operations following an extended shutdown during a bankruptcy proceeding with the intent of demonstrating favorable operations prior to conducting an auction sale process; however, the Potential Target had not yet established a logistics chain through a viable export terminal, given that the terminal through which the plant historically had exported was not operational at the time and was not reasonably certain to become operational in the future Accordingly, as part of our diligence of the Potential Target, we developed an alternative logistics chain to bring the Potential Target's wood pellets to market and began purchasing the production of the Potential Target for a trial period. The incremental costs associated with the establishment and evaluation of this new logistics chain primarily consist of barge, freight, trucking, storage, and shiploading services. We have completed our evaluation of the alternative logistics chain and determined it is not viable; consequently, we do not expect to incur additional costs of this nature in the future; 3) Includes $1.2 million in costs incurred during the first and second quarter of 2019 related to the Hamlet Transaction, in addition to the costs described in footnote 2 40 DISTRIBUTABLE CASH FLOW ATTRIBUTABLE TO ENVIVA PARTNERS, LP LIMITED PARTNERS LESS DISTRIBUTABLE CASH FLOW ATTRIBUTABLE TO INCENTIVE DISTRIBUTION RIGHTS DISTRIBUTABLE CASH FLOW ATTRIBUTABLE TO ENVIVA PARTNERS, LP MAINTENANCE CAPITAL EXPENDITURES INTEREST EXPENSE, NET OF AMORTIZATION OF DEBT ISSUANCE COSTS , DEBT PREMIUM , ORIGINAL ISSUE DISCOUNT AND IMPACT FROM INCREMENTAL BORROWINGS RELATED TO CHESAPEAKE INCIDENT AND HURRICANE EVENTS LESS ADJUSTED EBITDA TRANSACTION EXPENSES I ACQUISITION COSTS MSA FEE WAIVERS CHESAPEAKE INCIDENT AND HURRICANE EVENTS CHANGES IN THE FAIR VALUE OF DERIVATIVE INSTRUMENTS ASSET IMPAIRMENTS AND DISPOSALS NON-CASH UNIT COMPENSATION EXPENSE EARLY RETIREMENT OF DEBT OBLIGATION INTEREST EXPENSE DEPRECIATION AND AMORTIZATION NET INCOME (LOSS) S THOUSANDS RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW THREE MOrHHS ErmED
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