H.B. Fuller (FUL) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Worldwide Headquarters 1200 Willow Lake Boulevard St. Paul, Minnesota 55110-5101		Maximillian Marcy Investor Relations Contact 651-236-5062
NEWS	For Immediate Release	September 13, 2010

H.B. Fuller Reports Third Quarter 2010 Results

Diluted EPS $0.38;

Net Revenue Up 7 Percent Year-Over-Year,

Organic Revenue Grew 9 Percent Year-Over-Year

ST. PAUL, Minn. – H.B. Fuller Company (NYSE: FUL) today reported financial results for the third quarter that ended August 28, 2010.

Third Quarter 2010 Notable Items:

• Net revenue totaled $338.6 million, up 7 percent year-over-year;

• Organic revenue increased 9 percent year-over-year driven by double-digit organic revenue growth in EIMEA and Latin America Adhesives;

• Gross margin contracted in the third quarter versus the prior quarter; however, year-to-date adjusted gross margin¹ remained at a historically high level;

• Selling, general, and administrative expense declined versus the second quarter;

• Acquisition of Revertex Finewaters in Malaysia was completed.

Third Quarter 2010 Results:

Net income for the third quarter of 2010 was $19.0 million, or $0.38 per diluted share, versus $35.4 million, or $0.72 per diluted share, in last year’s third quarter. Net Income for the third quarter of 2009 included a significant one-time gain related to the settlement of a lawsuit. Excluding this settlement, net income in last year’s third quarter was $0.48² per diluted share.

Net revenue for the third quarter of 2010 was $338.6 million, up 7.4 percent versus the third quarter of 2009. Higher volume, higher average selling prices, and acquisitions positively impacted net revenue growth by 6.4, 2.5, and 1.6 percentage points, respectively. Unfavorable foreign currency translation reduced net revenue growth by 3.1 percentage points. Organic sales grew by 8.9 percent year-over-year.

1

“We faced many challenges in the third quarter — most notably rising raw material costs and raw material shortages — and achieved mixed results. While we were successful in sourcing sufficient material to satisfy customer orders, our material costs escalated more than our prices and profit margins did not meet our expectations. Additionally, in the North America region, end-market demand contracted significantly at the beginning of the quarter, and consequently, we did not achieve our volume expectations in the region. Amidst these challenges, we successfully maintained the overall growth momentum that is a key component of our strategic transformation,” said Michele Volpi, H.B. Fuller president and chief executive officer. “While we are disappointed in our bottom line performance this quarter we believe that we have put in place the actions necessary to improve financial performance in the fourth quarter and beyond.”

Segment Perspective:

In North America, net revenue grew by 5.2 percent year-over-year with Adhesives up 6.2 percent and Construction Products up 1.9 percent. Nearly all of the growth for the segment was organic. After recording stronger volume growth in the previous quarter, sales momentum slowed significantly, especially in Construction Products, at the start of the third quarter, but improved somewhat at the end of the quarter.

In EIMEA (Europe, India, Middle East, Africa), net revenue was up 3.4 percent year-over-year, and 15.6 percent on an organic basis. The region posted strong growth across all geographies and market segments, benefiting from improved end-market conditions and significant new business wins with key customers.

In Latin America, net revenue grew by 8.2 percent year-over-year with Adhesives up 13.1 percent and Paints up 2.2 percent. Adhesives continued to gain business with new and existing customers, while Paints returned to positive organic growth for the first time since the end of 2008.

In Asia Pacific, economic activity remains strong. Net revenue grew by 27.2 percent versus last year’s third quarter and organic growth was 7.6 percent. Sales from the region benefitted from our recent acquisition in Malaysia by 15.7 percent, and positive currency translation of 3.9 percent.

Balance Sheet and Cash Flow:

At the end of the third quarter of 2010 the Company had cash totaling $141 million and total debt of $299 million. This compares to second quarter levels of $161 million and $292 million, respectively. Sequentially, net debt increased by approximately $27 million, primarily driven by cash used for the

2

acquisition of Revertex Finewaters which was completed at the start of the third quarter. Cash flow from operations was $11 million in the third quarter. This year’s cash flow was approximately $50 million lower than last year’s third quarter driven primarily by higher working capital requirements to support continued growth.

Year-To-Date 2010 Results:

Net Income for the first nine months of 2010 was $48.9 million, or $0.99 per diluted share, versus $59.1 million, or $1.21 per diluted share, in the last year’s first nine months. Net income for the first nine months of 2010 includes one-time charges associated with exiting a product line in Europe. After adjusting for these charges, net income for the first nine months of 2010 was $57.4 million, or $1.16² per diluted share. Additionally, last year’s first nine months net income included two non-recurring items that, taken together, boosted net income. Excluding these items, net income for the first nine months of last year was $0.98² per diluted share. On an adjusted basis, net income per diluted share for the first nine months of 2010 was up 18 percent year-over-year.

Net revenue for the first nine months of 2010 was $995.9 million, up 11.5 percent versus the first nine months of 2009. Higher volume, favorable foreign currency translation, and acquisitions positively impacted net revenue growth by 9.8, 0.8, and 1.0 percentage points, respectively. Organic sales increased by 9.7 percent year-over-year in the first nine months of 2010.

Fiscal 2010 Outlook:

“As we move into the fourth quarter, we are able to provide more specific guidance for the remainder of the fiscal year. We now expect net revenue for the full year to be up approximately 10 percent from last year, with fourth quarter net revenue between $360 million and $365 million. We expect financial performance to improve in the fourth quarter relative to the third quarter and we will continue to press forward to achieve our long term objectives for profitable growth,” said Michele Volpi, H.B. Fuller president and chief executive officer.

Expectations for fiscal year 2010 include:

• Net revenue between $1.356 billion and $1.361 billion, up about 10 percent from last year (revised guidance);

• Raw material costs up about 8 percent from last year (no change from previous guidance);

• Capital expenditures of approximately $30 million (revised guidance);

• Effective tax rate, excluding discrete items, of approximately 34 percent for the fourth quarter (no change from previous guidance).

3

Conference Call:

The Company will host an investor conference call to discuss third quarter 2010 results on Tuesday, September 14, 2010 at 9:30 a.m. central time (10:30 a.m. eastern time). The conference call audio and accompanying presentation slides will be available to all interested parties via a simultaneous webcast atwww.hbfuller.com under the investor relations section. The event is scheduled to last one hour. For those unable to listen live, an audio replay of the event along with the accompanying presentation will be archived on our website.

Regulation G:

The information presented in this earnings release regarding adjusted earnings per share, operating income, operating margin, adjusted gross margin, adjusted SG&A expense, and earnings before interest, taxes, depreciation, and amortization (EBITDA) does not conform to generally accepted accounting principles (GAAP) and should not be construed as an alternative to the reported results determined in accordance with GAAP. The Company has included this non-GAAP information to assist in understanding the operating performance of the Company and our operating segments. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information is reconciled with reported GAAP results in the tables below.

About H.B. Fuller Company:

H.B. Fuller Company is a leading worldwide manufacturer and marketer of adhesives, sealants, paints and other specialty chemical products, with fiscal 2009 net revenue of $1.235 billion. Its common stock is traded on the New York Stock Exchange under the symbol FUL. For more information, please visit the website atwww.hbfuller.com.

Safe Harbor for Forward-Looking Statements:

Certain statements in this document may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: the Company’s ability to effectively integrate and operate acquired businesses; political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; geographic and product mix; availability and price of raw materials; the Company’s relationships with its major customers and suppliers; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations; the impact of litigation and environmental matters; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Further information about the various risks and uncertainties can be found in the Company’s SEC 10-Q filings of March 21, 2010 and June 30, 2010, and 10-K filing, as amended, for the fiscal year ended

4

November 28, 2009. All forward-looking information represents management’s best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the Company and the regions where the Company does business make it difficult to determine with certainty the increases or decreases in net revenue resulting from changes in the volume of products sold, currency impact, changes in product mix, and selling prices. However, management’s best estimates of these changes as well as changes in other factors have been included.

5

H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

	13 Weeks Ended August 28, 2010			13 Weeks Ended August 29, 2009
Net revenue	$	338,568		$	315,329
Cost of sales		(242,294	)		(214,914	)
Gross profit		96,274			100,415
Selling, general and administrative expenses		(73,584	)		(68,324	)
Other income (expense), net		1,041			18,487
Interest expense		(2,669	)		(1,680	)
Income before income taxes and income from equity investments		21,062			48,898
Income taxes		(4,071	)		(15,113	)
Income from equity investments		1,859			1,677
Net income including non-controlling interests		18,850			35,462
Net (income) loss attributable to non-controlling interests		128			(49	)
Net income attributable to H.B. Fuller	$	18,978		$	35,413
Basic income per common share attributable to H.B. Fuller	$	0.39		$	0.73
Diluted income per common share attributable to H.B. Fuller	$	0.38		$	0.72
Weighted-average common shares outstanding:
Basic		48,595			48,343
Diluted		49,585			49,242
Dividends declared per common share	$	0.0700		$	0.0680

Selected Balance Sheet Information (subject to change prior to filing of the Company’s Quarterly Report on Form 10-Q)

	August 28, 2010		November 28, 2009		August 29, 2009
Cash & cash equivalents	$	140,717	$	100,154	$	180,136
Inventories		148,464		116,907		112,452
Trade accounts receivable, net		209,429		203,898		190,211
Trade payables		118,967		109,165		96,245
Total assets		1,178,669		1,100,445		1,150,732
Total debt		299,355		214,028		243,915

6

H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

Common Size Income Statement (unaudited)

	13 Weeks Ended August 28, 2010		13 Weeks Ended August 29, 2009
Net revenue	100.0	%	100.0	%
Cost of sales	(71.6	%)	(68.2	%)
Gross profit	28.4	%	31.8	%
Selling, general and administrative expenses	(21.7	%)	(21.7	%)
Other income (expense), net	0.3	%	5.9	%
Interest expense	(0.8	%)	(0.5	%)
Income before income taxes and income from equity investments	6.2	%	15.5	%
Income taxes	(1.2	%)	(4.8	%)
Income from equity investments	0.5	%	0.5	%
Net income including non-controlling interests	5.6	%	11.2	%
Net (income) loss attributable to non-controlling interests	0.0	%	(0.0	%)
Net income attributable to H.B. Fuller	5.6	%	11.2	%

7

H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

	39 Weeks Ended August 28, 2010			39 Weeks Ended August 29, 2009
Net revenue	$	995,918		$	893,086
Cost of sales		(700,857	)		(628,264	)
Gross profit		295,061			264,822
Selling, general and administrative expenses		(220,324	)		(192,446	)
Asset impairment charges		(8,785	)		(790	)
Other income (expense), net		2,318			16,142
Interest expense		(7,660	)		(6,266	)
Income before income taxes and income from equity investments		60,610			81,462
Income taxes		(17,152	)		(26,175	)
Income from equity investments		5,391			3,744
Net income including non-controlling interests	$	48,849		$	59,031
Net (income) loss attributable to non-controlling interests		92			56
Net income attributable to H.B. Fuller	$	48,941		$	59,087
Basic income per common share attributable to H.B. Fuller	$	1.01		$	1.22
Diluted income per common share attributable to H.B. Fuller	$	0.99		$	1.21
Weighted-average common shares outstanding:
Basic		48,552			48,312
Diluted		49,564			49,031
Dividends declared per common share	$	0.2080		$	0.2020

8

H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

Common Size Income Statement (unaudited)

	39 Weeks Ended August 28, 2010		39 Weeks Ended August 29, 2009
Net revenue	100.0	%	100.0	%
Cost of sales	(70.4	%)	(70.3	%)
Gross profit	29.6	%	29.7	%
Selling, general and administrative expenses	(22.1	%)	(21.5	%)
Asset impairment charges	(0.9	%)	(0.1	%)
Other income (expense), net	0.2	%	1.8	%
Interest expense	(0.8	%)	(0.7	%)
Income before income taxes and income from equity investments	6.1	%	9.1	%
Income taxes	(1.7	%)	(2.9	%)
Income from equity investments	0.5	%	0.4	%
Net income including non-controlling interests	4.9	%	6.6	%
Net (income) loss attributable to non-controlling interests	0.0	%	0.0	%
Net income attributable to H.B. Fuller	4.9	%	6.6	%

9

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

In thousands (unaudited)

	13 Weeks Ended August 28, 2010			13 Weeks Ended August 29, 2009
Net Revenue:
North America	$	146,584		$	139,353
EIMEA		97,306			94,145
Latin America		53,726			49,635
Asia Pacific		40,952			32,196
Total H.B. Fuller	$	338,568		$	315,329
Operating Income4:
North America	$	18,491		$	21,469
EIMEA		2,276			7,043
Latin America		1,207			1,448
Asia Pacific		716			2,131
Total H.B. Fuller	$	22,690		$	32,091
Depreciation Expense:
North America	$	3,414		$	4,084
EIMEA		2,284			2,488
Latin America		1,055			1,081
Asia Pacific		829			547
Total H.B. Fuller	$	7,582		$	8,200
Amortization Expense:
North America	$	2,009		$	2,238
EIMEA		219			664
Latin America		12			99
Asia Pacific		261			54
Total H.B. Fuller	$	2,501		$	3,055
EBITDA3:
North America	$	23,914		$	27,791
EIMEA		4,779			10,195
Latin America		2,274			2,628
Asia Pacific		1,806			2,732
Total H.B. Fuller	$	32,773		$	43,346
Operating Margin5:
North America		12.6	%		15.4	%
EIMEA		2.3	%		7.5	%
Latin America		2.2	%		2.9	%
Asia Pacific		1.7	%		6.6	%
Total H.B. Fuller		6.7	%		10.2	%
EBITDA Margin3:
North America		16.3	%		19.9	%
EIMEA		4.9	%		10.8	%
Latin America		4.2	%		5.3	%
Asia Pacific		4.4	%		8.5	%
Total H.B. Fuller		9.7	%		13.7	%
Net Revenue Growth:
North America		5.2	%
EIMEA		3.4	%
Latin America		8.2	%
Asia Pacific		27.2	%
Total H.B. Fuller		7.4	%

10

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

In thousands (unaudited)

	39 Weeks Ended August 28, 2010			39 Weeks Ended August 29, 2009
Net Revenue:
North America	$	424,752		$	393,820
EIMEA		295,893			258,604
Latin America		163,758			155,502
Asia Pacific		111,515			85,160
Total H.B. Fuller	$	995,918		$	893,086
Operating Income4:
North America	$	54,536		$	51,348
EIMEA		9,681			15,240
Latin America		6,317			4,282
Asia Pacific		4,203			1,506
Total H.B. Fuller	$	74,737		$	72,376
Depreciation Expense:
North America	$	10,256		$	12,199
EIMEA		7,055			7,221
Latin America		3,099			3,462
Asia Pacific		1,982			1,566
Total H.B. Fuller	$	22,392		$	24,448
Amortization Expense:
North America	$	6,380		$	6,723
EIMEA		1,390			1,796
Latin America		191			299
Asia Pacific		364			164
Total H.B. Fuller	$	8,325		$	8,982
EBITDA3:
North America	$	71,172		$	70,270
EIMEA		18,126			24,257
Latin America		9,607			8,043
Asia Pacific		6,549			3,236
Total H.B. Fuller	$	105,454		$	105,806
Operating Margin5:
North America		12.8	%		13.0	%
EIMEA		3.3	%		5.9	%
Latin America		3.9	%		2.8	%
Asia Pacific		3.8	%		1.8	%
Total H.B. Fuller		7.5	%		8.1	%
EBITDA Margin3:
North America		16.8	%		17.8	%
EIMEA		6.1	%		9.4	%
Latin America		5.9	%		5.2	%
Asia Pacific		5.9	%		3.8	%
Total H.B. Fuller		10.6	%		11.8	%
Net Revenue Growth:
North America		7.9	%
EIMEA		14.4	%
Latin America		5.3	%
Asia Pacific		30.9	%
Total H.B. Fuller		11.5	%

11

H.B. FULLER COMPANY AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

(unaudited)

13 Weeks Ended August 28, 2010
	North America		EIMEA		Latin America		Asia Pacific		Total HBF
Price	1.9	%	3.1	%	4.4	%	(0.2	%)	2.5	%
Volume	2.9	%	12.5	%	3.8	%	7.8	%	6.4	%
Organic Growth	4.8	%	15.6	%	8.2	%	7.6	%	8.9	%
F/X	0.4	%	(12.2	%)	0.0	%	3.9	%	(3.1	%)
Acquisition	0.0	%	0.0	%	0.0	%	15.7	%	1.6	%
	5.2	%	3.4	%	8.2	%	27.2	%	7.4	%
39 Weeks Ended August 28, 2010
	North America		EIMEA		Latin America		Asia Pacific		Total HBF
Price	0.2	%	(1.5	%)	2.3	%	(1.6	%)	(0.1	%)
Volume	6.9	%	17.0	%	3.0	%	14.4	%	9.8	%
Organic Growth	7.1	%	15.5	%	5.3	%	12.8	%	9.7	%
F/X	0.8	%	(2.4	%)	0.0	%	12.2	%	0.8	%
Acquisition	0.0	%	1.3	%	0.0	%	6.0	%	1.0	%
	7.9	%	14.4	%	5.3	%	31.0	%	11.5	%

12

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

	39 Weeks Ended August 28, 2010			Product Line Exit Adjustments			Adjusted 39 Weeks Ended August  28, 2010
Net revenue	$	995,918		$	—		$	995,918
Cost of sales		(700,857	)		(1,831	)		(699,026	)
Gross profit		295,061			(1,831	)		296,892
Selling, general and administrative expenses		(220,324	)		(752	)		(219,572	)
Asset impairment charges		(8,785	)		(8,785	)		—
Other income (expense), net		2,318			—			2,318
Interest expense		(7,660	)		—			(7,660	)
Income before income taxes and income from equity investments		60,610			(11,368	)		71,978
Income taxes		(17,152	)		2,928			(20,080	)
Income from equity investments		5,391			—			5,391
Net income including non-controlling interests	$	48,849		$	(8,440	)	$	57,289
Net (income) loss attributable to non-controlling interests		92			—			92
Net income attributable to H.B. Fuller	$	48,941		$	(8,440	)	$	57,381
Basic income per common share attributable to H.B. Fuller	$	1.01		$	(0.17	)	$	1.18
Diluted income per common share attributable to H.B. Fuller	$	0.99		$	(0.17	)	$	1.16	2
Weighted-average H.B. Fuller common shares outstanding:
Basic		48,552			48,552			48,552
Diluted		49,564			49,564			49,564

13

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

	13 Weeks Ended August 29, 2009			Adjustments			Adjusted 13 Weeks Ended August  29, 2009
Net revenue	$	315,329		$	—		$	315,329
Cost of sales		(214,914	)		—			(214,914	)
Gross profit		100,415			—			100,415
Selling, general and administrative expenses		(68,324	)		—			(68,324	)
Other income (expense), net		18,487			18,750			(263	)
Interest expense		(1,680	)		—			(1,680	)
Income before income taxes and income from equity investments		48,898			18,750			30,148
Income taxes		(15,113	)		(6,989	)		(8,124	)
Income from equity investments		1,677			—			1,677
Net income including non-controlling interests		35,462			11,761			23,701
Net (income) loss attributable to non-controlling interests		(49	)		—			(49	)
Net income attributable to H.B. Fuller	$	35,413		$	11,761		$	23,652
Basic income per common share attributable to H.B. Fuller	$	0.73		$	0.24		$	0.49
Diluted income per common share attributable to H.B. Fuller	$	0.72		$	0.24		$	0.48	2
Weighted-average common shares outstanding:
Basic		48,343			48,343			48,343
Diluted		49,242			49,242			49,242

14

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands, except per share amounts (unaudited)

	39 Weeks Ended August 29, 2009			Impairment Adjustments			Adjusted 39 Weeks Ended August  29, 2009
Net revenue	$	893,086		$	—		$	893,086
Cost of sales		(628,264	)		—			(628,264	)
Gross profit		264,822			—			264,822
Selling, general and administrative expenses		(192,446	)		—			(192,446	)
Asset impairment charges		(790	)		(790	)		—
Other income (expense), net		16,142			18,750			(2,608	)
Interest expense		(6,266	)		—			(6,266	)
Income before income taxes and income from equity investments		81,462			17,960			63,502
Income taxes		(26,175	)		(6,695	)		(19,480	)
Income from equity investments		3,744			—			3,744
Net income including non-controlling interests	$	59,031		$	11,265		$	47,766
Net (income) loss attributable to non-controlling interests		56			—			56
Net income attributable to H.B. Fuller	$	59,087		$	11,265		$	47,822
Basic income per common share attributable to H.B. Fuller	$	1.22		$	0.23		$	0.99
Diluted income per common share attributable to H.B. Fuller	$	1.21		$	0.23		$	0.98	2
Weighted-average common shares outstanding:
Basic		48,312			48,312			48,312
Diluted		49,031			49,031			49,031

15

H.B. FULLER COMPANY AND SUBSIDIARIES

REGULATION G RECONCILIATION

In thousands (unaudited)

	13 Weeks Ended August 28, 2010		13 Weeks Ended August 29, 2009
Net revenue	338,568		315,329
Cost of sales	242,294		214,914
Gross profit	96,274		100,415
Selling, general and administrative expenses	73,584		68,324
Operating Income4	22,690		32,091
Depreciation expense	7,582		8,200
Amortization expense	2,501		3,055
EBITDA3	32,773		43,346
EBITDA margin3	9.7	%	13.7	%
	39  Weeks Ended August 28, 2010		39 Weeks Ended August 29, 2009
Net revenue	995,918		893,086
Cost of sales	700,857		628,264
Gross profit	295,061		264,822
Selling, general and administrative expenses	220,324		192,446
Operating Income4	74,737		72,376
Depreciation expense	22,392		24,448
Amortization expense	8,325		8,982
EBITDA3	105,454		105,806
EBITDA margin3	10.6	%	11.8	%

16

¹ Adjusted gross margin is a non-GAAP financial measure. Second quarter 2010 excludes pre-tax exit costs and non-cash impairment charges associated with the exit of the Company’s European polysulfide-based insulating glass product line of $1.2 million and $0.6 million respectively.

² Adjusted diluted earnings per share (EPS) is a non-GAAP financial measure. First quarter 2009 excludes an after-tax “true-up” for the estimated goodwill impairment charge taken at the end of 2008 of $0.5 million ($0.01 per diluted share). Third quarter 2009 excludes an after-tax gain related to the settlement of a lawsuit filed against the former owners of the Roanoke Companies Group of $11.8 million ($0.24 per diluted share). Second quarter 2010 excludes after-tax exit costs and non-cash impairment charges associated with the exit of the Company’s European polysulfide-based insulating glass product line of $1.7 million ($0.03 per diluted share) and $6.7 million ($0.14 per diluted share) respectively. A full reconciliation is provided in the tables above.

³ EBITDA is a non-GAAP financial measure defined on a consolidated basis as gross profit, less SG&A expense, plus depreciation expense, plus amortization expense. On a segment basis it is defined as operating income, plus depreciation expense, plus amortization expense. EBITDA margin is defined as EBITDA divided by net revenue.

⁴ Management evaluates the performance of each of the Company’s operating segments based on operating income, which is defined as gross profit less SG&A expense for the segments.

⁵ Operating Income is a non-GAAP financial measure defined on a consolidated basis as gross profit less SG&A expense. Operating margin is a non-GAAP financial measure defined as gross profit, less SG&A expense, divided by net revenue.

17