Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

November 13, 2017

Exhibit 99

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA (Unaudited)
(dollars in thousands)

Adjusted EBITDA is not a presentation made in accordance with U.S. generally accepted accounting principles (“GAAP”). It should not be considered an alternative to GAAP-based net income or income from operations or operating cash flows. Further, because not all companies use identical calculations, amounts reflected by us as Adjusted EBITDA may not be comparable to similarly titled measures of other companies. We use this non-GAAP measure internally to make operating decisions and believe it allows more meaningful period-to-period comparisons of our ongoing operating results. The information can also be used to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by these types of items. The reconciliation of Net Loss to Adjusted EBITDA is presented below.

 
 
 
Thirteen Weeks Ended
Three Months Ended
Thirty-nine Weeks Ended
Nine Months Ended
 
 
 
September 30,
September 30,
September 30,
September 30,
 
 
 
2017
2016
2017
2016
Net income (loss)
 
$
(1,322
)
$
(437
)
$
(6,787
)
$
(6,535
)
Income tax provision (benefit)
 
(538
)
479

(4,759
)
(2,471
)
Interest expense, net
 
12,787

12,671

37,960

38,580

Interest expense on junior subordinated debentures
 
3,152

3,152

9,456

9,456

Investment income on trust common securities
 
(95
)
(95
)
(284
)
(284
)
Depreciation
 
7,300

7,974

25,473

24,394

Amortization
 
9,500

9,481

28,442

28,435

EBITDA
 
30,784

33,225

89,501

91,575

 
 
 
 
 
 
   Stock compensation expense
 
472

573

2,025

1,691

   Management fees
 
127

148

390

420

   Acquisition and integration expense
 
53


53


   Legal fees and settlements
 

1,886

65

2,752

   Restructuring and other costs
 
1,628

1,499

5,898

2,107

   Anti-dumping duties
 
4,128


6,274


   Other adjustments
 
(318
)
(509
)
(984
)
150

Adjusted EBITDA
 
$
36,874

$
36,822

$
103,222

$
98,695