Reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow 22 (1) During the nine months ended September 30, 2016 and the year ended December 31, 2015, the Partnership completed four and eight drop-down acquisitions, respectively, from Landmark and affiliates (the “Drop-down Assets”). The assets and liabilities acquired are recorded at the historical cost of Landmark, as the transactions are between entities under common control, the statements of operations of the Partnership are adjusted retroactively as if the transactions occurred on the earliest date during which the entities were under common control. The historical financial statements have been retroactively adjusted to reflect the results of operations, financial position, and cash flows of the Drop-down Assets as if the Partnership owned the Drop-down Assets in all periods while under common control. The reconciliation presents our results of operations and financial position giving effect to the Drop-down Assets. The combined results of the Drop-down Assets prior to each transaction date are included in “Drop-down Assets Predecessor.” The consolidated results of the Drop-down Assets after each transaction date are included in “Landmark Infrastructure Partners LP.” (2) Under the omnibus agreement that we entered into with Landmark at the closing of the IPO, we agreed to reimburse Landmark for expenses related to certain general and administrative services that Landmark will provide to us in support of our business, subject to a quarterly cap equal to the greater of $162,500 and 3% of our revenue during the preceding calendar quarter. This cap on expenses will last until the earlier to occur of: (i) the date on which our revenue for the immediately preceding four consecutive fiscal quarters exceeded $80.0 million and (ii) November 19, 2019. The full amount of general and administrative expenses incurred will be reflected in our income statements, and to the extent such general and administrative expenses exceed the cap amount, the amount of such excess will be reflected in our financial statements as a capital contribution from Landmark rather than as a reduction of our general and administrative expenses, except for expenses that would otherwise be allocated to us, which are not included in our general and administrative expenses. as a capital contribution from Landmark rather than as a reduction of our general and administrative expenses, except for expenses that would otherwise be allocated to us, which are not included in our general and administrative expenses. For the Three Months Ended September 30, 2016 2015 (1) Landmark Drop - down Landmark Drop - down Infrastructure Assets Consolidated Infrastructure Assets Consolidated Partners LP Predecessor Results Partners LP Predecessor Results Revenue: Rental revenue $ 8,504,764 $ 1,526,674 $ 10,031,438 $ 5,326,821 $ 3,480,017 $ 8,806,838 Interest income on receivables 296,232 53,592 349,824 200,117 785 200,902 Total revenue 8,800,996 1,580,266 10,381,262 5,526,938 3,480,802 9,007,740 Expenses: Management fees to affiliate — 49,530 49,530 — 119,915 119,915 Property operating 22,914 — 22,914 7,568 13,614 21,182 General and administrative 632,251 — 632,251 462,364 — 462,364 Acquisition - related 875,136 111,519 986,655 817,099 254,617 1,071,716 Amortization 2,474,531 391,220 2,865,751 1,251,433 848,276 2,099,709 Impairments 1,235,035 — 1,235,035 302,008 — 302,008 Total expenses 5,239,867 552,269 5,792,136 2,840,472 1,236,422 4,076,894 Other income and expenses Interest expense (3,116,640) (546,540) (3,663,180) (1,404,727) (1,383,912) (2,788,639) Loss on early extinguishment of debt — (1,703,468) (1,703,468) — (902,625) (902,625) Realized loss on derivatives — (99,071) (99,071) — (13,823) (13,823) Unrealized gain (loss) on derivatives 1,029,153 202,318 1,231,471 (1,552,185) (27,945) (1,580,130) Total other income and expenses (2,087,487) (2,146,761) (4,234,248) (2,956,912) (2,328,305) (5,285,217) Net income $ 1,473,642 $ (1,118,764) $ 354,878 $ (270,446) $ (83,925) $ (354,371) Add: Interest expense 3,116,640 546,540 3,663,180 1,404,727 1,383,912 2,788,639 Amortization expense 2,474,531 391,220 2,865,751 1,251,433 848,276 2,099,709 EBITDA $ 7,064,813 $ (181,004) $ 6,883,809 $ 2,385,714 $ 2,148,263 $ 4,533,977 Less: Unrealized gain on derivatives (1,029,153) (202,318) (1,231,471) — — — Straight line rent adjustments (50,899) (34,392) (85,291) (33,116) (63,163) (96,279) Amortization of above - and below - market rents (242,045) (45,184) (287,229) (311,516) (136,111) (447,627) Add: Impairments 1,235,035 — 1,235,035 302,008 — 302,008 Acquisition - related expenses 875,136 111,519 986,655 817,099 254,617 1,071,716 Loss on early extinguishment of debt — 1,703,468 1,703,468 — 902,625 902,625 Unrealized loss on derivatives — — — 1,552,185 27,945 1,580,130 Realized loss on derivatives — 99,071 99,071 — 13,823 13,823 Unit - based compensation — — — 8,750 — 8,750 Deemed capital contribution to fund general and administrative expense reimbursement (2) 415,107 — 415,107 291,115 — 291,115 Adjusted EBITDA $ 8,267,994 $ 1,451,160 $ 9,719,154 $ 5,012,239 $ 3,147,999 $ 8,160,238 Less: Expansion capital expenditures (190,303,446) — (190,303,446) (122,400,000) — (122,400,000) Cash interest expense (2,703,851) (485,770) (3,189,621) (1,223,898) (1,051,211) (2,275,109) Distributions to preferred unitholders (951,426) — (951,426) — — — Add: Borrowings and capital contributions to fund expansion capital expenditures 190,303,446 — 190,303,446 122,400,000 — 122,400,000 Distributable cash flow $ 4,612,717 $ 965,390 $ 5,578,107 $ 3,788,341 $ 2,096,788 $ 5,885,129
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