Exhibit 99

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

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 loss to Adjusted EBITDA is presented below.

 
 
Thirteen Weeks Ended
 
Thirty-nine Weeks Ended
 
 
September 28,
 
September 29,
 
September 28,
 
September 29,
 
 
2019
 
2018
 
2019
 
2018
Net loss
 
$
(14,526
)
 
$
(10,708
)
 
$
(69,290
)
 
$
(34,556
)
Income tax provision (benefit)
 
(3,775
)
 
(1,565
)
 
(1,844
)
 
2,182

Interest expense, net
 
24,882

 
16,122

 
77,509

 
44,054

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
 
16,269

 
12,004

 
48,740

 
30,481

Amortization
 
14,665

 
10,437

 
44,114

 
29,872

EBITDA
 
40,572

 
29,347

 
108,401

 
81,205

 
 
 
 
 
 
 
 
 
   Stock compensation expense
 
1,243

 
227

 
1,906

 
1,219

   Management fees
 
140

 
134

 
396

 
396

   Acquisition and integration expense
 
2,757

 
4,479

 
5,225

 
6,941

Retention and long term incentive bonuses
 
2,030

 
—

 
6,089

 
—

   Canada Restructuring (1)
 
1,874

 
2,523

 
3,111

 
2,774

   Restructuring and other costs (2)
 
2,905

 
1,361

 
13,027

 
7,623

   Asset impairment costs(3) 
 
96

 
—

 
6,896

 
—

   Refinancing costs
 
—

 
—

 
—

 
8,542

   Anti-dumping duties
 
—

 
—

 
—

 
(4,128
)
   Mark-to-market adjustment on interest rate swaps
 
315

 
(259
)
 
3,217

 
(1,677
)
Adjusted EBITDA
 
$
51,932

 
$
37,812

 
$
148,268

 
$
102,895




1.
Includes charges related to a restructuring plan announced in our Canada segment in 2018, including facility consolidation and charges relating to exiting certain lines of business. See Note 9 - Restructuring of the Notes to the Condensed 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 one time charges associated with new business wins.
3.
Impairment losses for the disposal of FastKey self-service key duplicating kiosks and related assets.