Definition of Adjusted EBITDA
Adjusted EBITDA (defined below) is a supplemental non-GAAP financial measure which eliminates the impact on net income of certain unusual or non-
recurring items and other factors that we do not consider representative of our core business or future operating performance. This measurement is not
recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance, including net income (loss). The
presentation of Adjusted EBITDA should not be construed as an implication that our future results will be unaffected by non-operating, unusual or non-recurring
items. Please see the Appendix Tables below for our definition of Adjusted EBITDA and additional disclosure on the usefulness of Adjusted EBITDA as a
supplementary non-GAAP measure and on its limitations.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
We disclose Adjusted EBITDA because we believe Adjusted EBITDA is useful to investors and other interested parties as a measure of financial and operating
performance and debt service capabilities. We believe Adjusted EBITDA provides an additional tool to investors and securities analysts to compare our
performance across periods and among us and our peer companies without regard to interest expense, taxes and depreciation and amortization. In addition,
Adjusted EBITDA is also used by our management for internal planning purposes, including for certain aspects of our consolidated operating budget. We
believe Adjusted EBITDA is useful as a planning tool because it allows our management to compare performance across periods on a consistent basis in order
to more easily view and evaluate operating and performance trends and as a means of forecasting operating and financial performance and comparing actual
performance to forecasted expectations. For these reasons, we believe it is also useful for communicating with shareholders, bondholders and lenders and
other stakeholders. Because of the limitations described below, however, we encourage you to review, and evaluate the basis for, each of the adjustments
made to arrive at Adjusted EBITDA.
We define Adjusted EBITDA as net income (loss) plus depreciation, accretion and amortization, non-cash affiliate general and administrative costs, acquisition
related expenses, interest expense, gains (losses) on interest rate swaps, foreign currency gains (losses), income tax (benefit) expense and stock
compensation expense, and certain other non-cash charges, unusual, non-operating or non-recurring items and other items that we believe are not
representative of our core business or future operating performance.
Adjusted EBITDA is a supplemental non-GAAP financial measure. Our definitions and calculations of these items may not necessarily be the same as those
used by other companies. Adjusted EBITDA is not a measure of liquidity or profitability and should not be considered as an alternative to net income, operating
income, net cash provided by operating activities or any other measure determined in accordance with U.S. GAAP. Moreover, Adjusted EBITDA has certain
limitations and should not be considered in isolation. Some of these limitations are: (i) Adjusted EBITDA does not reflect cash expenditures or future
requirements for capital expenditures or contractual liabilities or future working capital needs, (ii) Adjusted EBITDA does not reflect the significant interest
expenses that we expect to incur or any income tax payments that we may incur, and (iii) Adjusted EBITDA does not reflect depreciation and amortization and,
although these charges are non-cash, the assets to which they relate may need to be replaced in the future, and Adjusted EBITDA does not take into account
any cash expenditures required to replace those assets. Adjusted EBITDA also includes, among other things, adjustments for goodwill impairment charges,
gains and losses on derivatives and foreign currency swaps, acquisition related costs, and items that do not pertain to our core operations, including
adjustments for general and administrative expenses we have incurred as a result of the SunEdison bankruptcy. These adjustments for items that we do not
believe are representative of our core business involve the application of management judgment, and the presentation of Adjusted EBITDA should not be
construed to imply that our future results will be unaffected by non-operating, unusual or non-recurring items.