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| Non-GAAP Reconciliation LTM June 30, 2018 Year Ended December 31, 2016 Three Months Ended March 31, 2018 ($ in thousands) December 31, 2017 December 31, 2015 June 30, 2018 June 30, 2017 Net income (loss) Interest expense, net Income tax expense EBIT Depreciation and amortization EBITDA (Gain) loss on debt extinguishment Stock-based compensation Adjusted EBITDA $113,065 13,695 7,435 $66,547 20,767 1,549 ($8,176) 20,233 809 $21,224 21,837 784 $41,542 248 4,697 $26,408 2,852 1,652 $16,578 5,186 309 134,195 26,357 88,863 23,271 12,866 21,241 43,845 20,580 46,487 7,367 30,912 6,621 22,073 5,589 $160,552 4,305 2,097 $112,134 ---- $34,107 (2,251) 361 $64,425 (1,640) 359 $53,854 --1,263 $37,533 4,305 834 $27,662 ---- $166,954 $112,134 $32,217 $63,144 $55,117 $42,672 $27,662 *For the year ended December 31, 2014, we had EBITDA of $88.8 million, representing net income of $59.1 million, excluding net interest expense of $11.2 million, income tax expense of $0.3 million and depreciation and amortization of $18.2 million. There was no early extinguishment of debt in 2014. Stock-based compensation was $1.3 million in 2014. Adjusted EBITDA was equal to $90.1 million. Important Disclosure Regarding Non-GAAP Measures EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP. EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. We define EBITDA as net income excluding net interest expense, income tax and depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding (gain) loss on debt extinguishment and stock-based compensation. Our management believes EBITDA and Adjusted EBITDA are useful, because they allow management to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. Our computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We present EBITDA and Adjusted EBITDA, because we believe they provide useful information regarding the factors and trends affecting our business. 24 |