Net Income (Loss) to Adjusted Net Income / Adjusted Net Income Per Share Reconciliation In 2018, primarily relates to one-time expenses related to (a) Q4 2018 Loring Ward severance cash compensation of $507, which was recorded in compensation and related expenses and Q3 2018 IPO and related reorganization transaction cash compensation expenses of $5,926, which were recorded in compensation and related expenses, (b) transaction expenses of $1,762, which were recorded in selling, general and administrative expenses, associated with the acquisition of Loring Ward of which $1,114 were incurred in Q4 2018 and $648 were incurred in Q3 2018 and (c) Q4 2018 other expenses, net of $2,373, which were recorded in other (expense) income-net, primarily related to the loss on sale of a tax customer list and related receivables. In 2017, relates to one-time transaction expenses, which were recorded in other (expense) income-net, related to insurance fees associated with the investment by our private equity investors. For periods ended prior to the closing of the IPO and the consummation of the related reorganization transactions on July 30, 2018, these adjustments are being made for comparative purposes only. As of December 31, 2018, estimated tax adjustments from intangible asset related income tax benefits from closed acquisitions based on a pro forma 27% tax rate for the next 12 months is $25,171. See calculation of Adjusted Shares Outstanding in the fourth quarter and full year 2018 earnings release. Three Months Ended December 31, Twelve Months Ended December 31, ($ in thousands) 2017 2018 2017 2018 Net Income (Loss) $(9,690) $17,547 $(48,359) $(41,087) Income Tax Expense (Benefit) (2,782) 3,783 (1,501) 9,450 Amortization of Debt Financing Costs 1,358 782 4,084 3,498 Intangible Amortization 18,347 24,981 64,367 90,381 Non-Cash Equity Compensation Expense 3,480 12,856 34,879 44,468 Non-Cash Changes in Fair Value of Estimated Contingent Consideration 15,067 (22,241) 22,294 6,638 Gain on Sale of Investment – – – (5,509) Loss on Extinguishment of Borrowings – – 8,106 21,071 Delayed Offering Cost Expense – – 9,840 – Other One Time Transaction Expenses(1) – 3,994 2,843 11,529 Subtotal $25,780 $41,702 $96,553 $140,439 Pro Forma Income Tax Expense (27%)(2) (6,961) (11,260) (26,069) (37,919) Tax Adjustments(2)(3) 4,651 6,307 16,217 22,828 Adjusted Net Income $23,470 $36,749 $86,701 $125,348 Adjusted Shares Outstanding(4) 71,843,916 71,677,504 71,843,916 71,960,540 Adjusted Net Income Per Share $0.33 $0.51 $1.21 $1.74 8
