Attached files
| file | filename |
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| 8-K/A - 8-K/A - GENESEE & WYOMING INC | d312372d8ka.htm |
Exhibit 99.1
Reconciliation of Non-GAAP Financial Measures
Earnings before interest, taxes, depreciation and amortization (EBITDA) as well as net adjusted debt and adjusted EBITDA, calculated in accordance with the covenant requirements of the Credit Agreement, are “non-GAAP financial measures” as this term is defined in Regulation G under the Securities Exchange Act of 1934. In accordance with this rule, G&W has reconciled these non-GAAP financial measures to their most directly comparable U.S. GAAP measures.
Management views these non-GAAP financial measures as important measures when evaluating G&W’s leverage profile. These non-GAAP financial measures are not intended to represent, and should not be considered more meaningful than, or as an alternative to, their most directly comparable GAAP measures. These non-GAAP financial measures may be different from similarly-titled non-GAAP financial measures used by other companies.
The following tables set forth reconciliations of non-GAAP financial measures to their most directly comparable GAAP measure ($ in millions).
Illustrative Impact of the Acquisitions and the Equity Sale
| G&W Twelve Months Ended September 30, 2016 |
Less: Existing Australian Operations (a) |
Plus: P&W | Australia Partnership Adjustments |
Illustrative Covenant Based EBITDA — Pre Pentalver & Equity Sale |
Plus: Pentalver (d) |
Equity Sale |
Illustrative Covenant Based EBITDA — Post Pentalver & Equity Sale |
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| Net income/(loss) |
$ | 217.1 | $ | 0.1 | $ | 4.1 | $ | — | $ | 221.1 | $ | 8 | $ | 229.1 | ||||||||||||||||||
| Credit for cash distribution(b) |
— | — | — | 16.0 | 16.0 | — | 16.0 | |||||||||||||||||||||||||
| Add back: |
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| Provision for income taxes |
47.4 | 2.8 | 4.6 | — | 49.3 | 2 | 51.3 | |||||||||||||||||||||||||
| Interest expense - net |
71.4 | 9.2 | — | — | 62.2 | — | 62.2 | |||||||||||||||||||||||||
| Depreciation and amortization expense |
201.1 | 27.7 | 3.3 | — | 176.7 | 5 | 181.7 | |||||||||||||||||||||||||
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| EBITDA |
$ | 537.0 | $ | 39.8 | $ | 12.0 | $ | 16.0 | $ | 525.2 | $ | 15 | $ | 540.2 | ||||||||||||||||||
| Add back certain items |
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| Non-cash compensation cost related to equity awards |
$ | 18.0 | $ | — | $ | — | $ | — | $ | 18.0 | $ | — | $ | 18.0 | ||||||||||||||||||
| Australia impairment and related costs |
13.0 | 21.1 | — | — | (8.1 | ) | — | (8.1 | ) | |||||||||||||||||||||||
| Corporate development and related costs |
3.1 | 4.4 | — | — | (1.3 | ) | — | (1.3 | ) | |||||||||||||||||||||||
| Restructuring costs |
6.1 | 0.8 | — | — | 5.3 | — | 5.3 | |||||||||||||||||||||||||
| Net gain on sale of assets |
(1.3 | ) | — | — | — | (1.3 | ) | — | (1.3 | ) | ||||||||||||||||||||||
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| Adjusted covenant based EBITDA |
$ | 575.9 | $ | 66.1 | $ | 12.0 | $ | 16.0 | $ | 537.8 | $ | 15 | $ | 552.8 | ||||||||||||||||||
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| Total debt |
$ | 2,063 | $ | 195 | $ | 126 | $ | 66 | (c) | $ | 2,060 | $ | — | $ | (176 | )(e) | $ | 1,884 | ||||||||||||||
| Less: Cash |
26 | 7 | — | — | 19 | — | — | 19 | ||||||||||||||||||||||||
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| Net debt |
$ | 2,037 | $ | 189 | $ | 126 | $ | 66 | $ | 2,041 | $ | — | $ | (176 | ) | $ | 1,865 | |||||||||||||||
| Add back: Deferred financing costs |
19 | 2 | — | — | 17 | — | — | 17 | ||||||||||||||||||||||||
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| Net adjusted debt |
$ | 2,056 | $ | 191 | $ | 126 | $ | 66 | $ | 2,058 | $ | — | $ | (176 | ) | $ | 1,882 | |||||||||||||||
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| Net adjusted debt/Adjusted covenant based EBITDA ratio |
3.6 : 1.0 | 3.8 : 1.0 | 3.4 : 1.0 | |||||||||||||||||||||||||||||
| (a) | Australia operations are excluded from G&W’s Senior Secured Syndicated Credit Facility Agreement (“Credit Facility”) as of December 1, 2016 |
| (b) | Pro forma credit received in covenant calculation of Credit Facility for cash distributions from Australia Partnership |
| (c) | Cash contribution to fund acquisition of GRail on December 1, 2016 |
| (d) | First year of operations converted to US Dollars at a rate of £1.00 = $1.26 |
| (e) | Net proceeds of Equity Sale less $110 million purchase price for Pentalver and other transaction costs related thereto used to repay debt |
Company prior to Acquisitions and the Equity Sale
| G&W | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended |
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| December 31, 2015 |
March 31, 2016 | June 30, 2016 | September 30, 2016 |
September 30, 2016 |
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| Net income/(loss) |
$ | 84.9 | $ | 27.0 | $ | 48.4 | $ | 56.8 | $ | 217.1 | ||||||||||
| Add back: |
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| (Benefit from)/Provision for income taxes |
(7.1 | ) | 12.8 | 22.1 | 19.6 | 47.4 | ||||||||||||||
| Interest expense - net |
18.3 | 18.0 | 17.7 | 17.3 | 71.4 | |||||||||||||||
| Depreciation and amortization expense |
50.0 | 49.3 | 50.9 | 50.8 | 201.1 | |||||||||||||||
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| EBITDA |
$ | 146.1 | $ | 107.1 | $ | 139.2 | $ | 144.6 | $ | 537.0 | ||||||||||
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