Project Management Business of Remington Holdings, L.P.
Selected Quarterly Results of Operations and Reconciliation of Net Income to EBITDA,
Adjusted EBITDA and Adjusted Net Income (1)
(unaudited, in thousands)
|
| | | | | | | | | | | | | | | |
| | | | | | First Quarter | | Second Quarter | | Six Months Ended June 30, 2018 |
| 2018 | | | | | | | | | |
| Total revenue | | | | | $ | 7,837 |
| | $ | 7,259 |
| | $ | 15,096 |
|
| Total operating expenses | | | | | 3,550 |
| | 3,772 |
| | 7,322 |
|
| Operating income | | | | | 4,287 |
| | 3,487 |
| | 7,774 |
|
| | | | | | | | | | |
| Net income | | | | | $ | 4,246 |
| | $ | 3,497 |
| | $ | 7,743 |
|
| Depreciation and amortization | | | | | 6 |
| | 4 |
| | 10 |
|
| Income tax expense | | | | | 29 |
| | 30 |
| | 59 |
|
| EBITDA | | | | | 4,281 |
| | 3,531 |
| | 7,812 |
|
| Transaction costs | | | | | 51 |
| | 16 |
| | 67 |
|
| Adjusted EBITDA | | | | | 4,332 |
| | 3,547 |
| | 7,879 |
|
| Income tax expense | | | | | (29 | ) | | (30 | ) | | (59 | ) |
| Adjusted net income | | | | | $ | 4,303 |
| | $ | 3,517 |
| | $ | 7,820 |
|
|
| | | | | | | | | | | | | | | | | | | |
| | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Year Ended December 31, 2017 |
| 2017 | | | | | | | | | |
| Total revenue | $ | 6,906 |
| | $ | 7,531 |
| | $ | 7,929 |
| | $ | 6,600 |
| | $ | 28,966 |
|
| Total operating expenses | 3,137 |
| | 3,236 |
| | 3,178 |
| | 3,139 |
| | 12,690 |
|
| Operating income | $ | 3,769 |
| | $ | 4,295 |
| | $ | 4,751 |
| | $ | 3,461 |
| | $ | 16,276 |
|
| | | | | | | | | | |
| Net income | $ | 3,726 |
| | $ | 4,296 |
| | $ | 4,725 |
| | $ | 3,468 |
| | $ | 16,215 |
|
| Depreciation and amortization | 14 |
| | 12 |
| | 9 |
| | 9 |
| | 44 |
|
| Income tax expense | 36 |
| | 30 |
| | 27 |
| | (3 | ) | | 90 |
|
| EBITDA | 3,776 |
| | 4,338 |
| | 4,761 |
| | 3,474 |
| | 16,349 |
|
| Transaction costs | 12 |
| | 32 |
| | 17 |
| | (5 | ) | | 56 |
|
| Adjusted EBITDA | 3,788 |
| | 4,370 |
| | 4,778 |
| | 3,469 |
| | 16,405 |
|
| Income tax expense | (36 | ) | | (30 | ) | | (27 | ) | | 3 |
| | (90 | ) |
| Adjusted net income | $ | 3,752 |
| | $ | 4,340 |
| | $ | 4,751 |
| | $ | 3,472 |
| | $ | 16,315 |
|
(1) The historical information in this table for the year ended December 31, 2017 is based upon the audited combined carve-out financial statements of the Project Management Business, audited by the Company's independent, registered accounting firm. The historical information in the table for the quarterly periods is based upon unaudited operating financial data provided by Remington Holdings, L.P. The historical financial information should not be relied upon as an indicator of future performance.
Included in the above tables are certain supplemental measures of performance which are not measures of operating performance under GAAP, to assist investors in evaluating the Company's historical or future financial performance. These supplemental measures include earnings before interest, tax, depreciation and amortization ("EBITDA"), Adjusted EBITDA and Adjusted Net Income. We believe that EBITDA, Adjusted EBITDA and Adjusted Net Income provide investors and management with a meaningful indicator of operating performance. Management also uses Adjusted EBITDA and Adjusted Net Income, among other measures, to evaluate profitability. The Project Management Business of Remington Holdings, L.P. ("Project Management") calculates Adjusted EBITDA by subtracting or adding to net income (loss): interest expense, income
taxes, depreciation, amortization, transaction costs, and other expenses. Project Management calculates Adjusted Net Income by subtracting or adding to net income (loss): depreciation, amortization, transaction costs, and other expenses. Project Management's methodology for calculating Adjusted EBITDA and Adjusted Net Income may differ from the methodologies used by other comparable companies, when calculating the same or similar supplemental financial measures and may not be comparable with these companies. Neither Adjusted EBITDA nor Adjusted Net Income represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity nor are such measures indicative of funds available to satisfy our cash needs. The Company urges investors to carefully review the U.S. GAAP financial information of Project Management filed in a Current Report on Form 8-K/A, filed on August 21, 2018.
