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 EBITDA 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 EBITDA for the years ended December 29, 2018 and December 30, 2017 follows:
 
 
Thirteen Weeks Ended
Year Ended
 
 
December 29,
December 30,
December 29,
December 30,
 
 
2018
2017
2018
2017
Net loss
 
$
(35,085
)
$
65,435

$
(69,641
)
$
58,648

Income tax provision (benefit)
 
(112
)
(80,152
)
2,070

(84,911
)
Interest expense, net
 
26,491

13,058

70,545

51,018

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
 
15,580

8,543

46,060

34,016

Amortization
 
14,700

9,667

44,572

38,109

EBITDA
 
24,632

19,609

105,836

109,110

 
 
 
 
 
 
   Stock compensation expense
 
371

459

1,590

2,484

   Management fees
 
150

129

546

519

   Acquisition and integration expense
 
5,180

881

12,358

934

   Canada Restructuring (1)
 
5,587

—

8,261

—

   Restructuring and other costs (2)
 
1,528

8,833

9,016

14,794

   Refinancing costs
 
3,090

—

11,632

—

   Anti-dumping duties
 
300

—

(3,829
)
6,274

   Mark-to-market adjustment on interest rate swaps
 
2,284

(497
)
607

(1,481
)
Adjusted EBITDA
 
$
43,122

$
29,414

$
146,017

$
132,634



1.
Includes charges related to a restructuring plan announced in our Canada segment in 2018, including facility consolidation, stock keeping unit rationalization, severance, sale of property and equipment, and charges relating to exiting certain lines of business. See Note 14 - Restructuring of the Notes to the Consolidated Financial statements for additional information.
2.
Includes restructuring and other costs associated with the implementation of a new pricing program, cost associated with implementing our ERP system in Canada, costs to relocate our distribution center in Edmonton, Canada, costs associated with relocating our distribution center in Dallas, Texas, and start up costs for the hub facility located on the U.S. West Coast.