EXHIBIT 99.1
 
THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Reconciliation Statement, Non-GAAP Basis
(dollars in thousands)
Unaudited

EBITDA and Adjusted EBITDA are not measures made in accordance with U.S. generally accepted accounting principles (“GAAP”), and as such, should not be considered a measure of financial performance or condition, liquidity, or profitability. 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 Hillman as EBITDA and Adjusted EBTIDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is included to satisfy a reporting obligation under our indenture. Adjusted EBITDA as presented herein does not include certain adjustments and pro forma run rate measures contemplated by our senior secured credit facilities and our indenture and may also include additional adjustments that were not applicable at the time of the offering of the senior notes governed by our indenture. Adjusted EBITDA is also one of the performance criteria for the Company's annual performance-based bonus plan.

The reconciliation of Net income (loss) to EBITDA and Adjusted EBTIDA for the years ended December 30, 2017 and December 31, 2016 and 2015 follows:
 
13 Weeks Ended
 
Year Ended
 
December 30, 2017
 
December 31, 2016
 
December 30, 2017
 
December 31, 2016
Net income (loss)
$
65,435

 
$
(7,671
)
 
$
58,648

 
$
(14,206
)
Income tax benefit
(80,152
)
 
(5,219
)
 
(84,911
)
 
(7,690
)
Interest expense, net
13,058

 
12,601

 
51,018

 
51,181

Interest expense on junior subordinated debentures
3,152

 
3,152

 
12,608

 
12,608

Investment income on trust common securities
(94
)
 
(94
)
 
(378
)
 
(378
)
Depreciation
8,543

 
7,851

 
34,016

 
32,245

Amortization
9,667

 
9,470

 
38,109

 
37,905

EBITDA
19,609

 
20,090

 
109,110

 
111,665

Stock compensation expense
459

 
593

 
2,484

 
2,280

Management fees
129

 
130

 
519

 
550

Acquisition and integration expense
881

 

 
934

 

Legal fees and settlements

 
134

 
65

 
2,886

Restructuring and other costs (1)
8,833

 
2,662

 
14,729

 
4,771

Anti-dumping duties

 

 
6,274

 

Mark-to-market adjustment on interest rate swaps
(497
)
 
(856
)
 
(1,481
)
 
(705
)
Adjusted EBITDA
$
29,414

 
$
22,753

 
$
132,634

 
$
121,447

(1)
Includes restructuring and other costs associated with our network of facilities in Canada, start up costs for the hub facility located on the U.S. West Coast, charges associated with exiting certain lines of business, and asset impairments charges.