Montrose Environmental Group Announces Second Quarter 2022 Results
08/08/2022 - 04:30 PM
- Increases Revenue to $139.9 Million
- Reiterates Full Year 2022 Outlook -
- Increases Operating Cash Flow by $18.1 Million
- Introduces Adjusted Net Income1 and Adjusted Net Income Per Share1 Metrics -
LITTLE ROCK, Ark. --(BUSINESS WIRE)--
Montrose Environmental Group, Inc. (the “Company,” “Montrose” or “MEG”) (NYSE: MEG) today announced results for the second quarter ended June 30, 2022 .
Montrose Chief Executive Officer and Director, Vijay Manthripragada , commented, “Montrose continues to perform well despite macroeconomic turbulence and the cyberattack in June which temporarily disrupted our business. We maintain our revenue and Consolidated Adjusted EBITDA1 outlook for the year. The inherent variability in our CTEH response business and the timing of select larger project awards which are ongoing and expanding in scope remain hard to predict and may impact results. Our sequential and year-over-year improvement in our revenue reflects continued organic growth outperformance against our expectations. The momentum in our business is also evident in the strength of our cash flow, which gives us more financial flexibility and the ability to continue investing in environmental innovation. We are seeing tailwinds from end market and regulatory activity, and we have been able to capitalize on broad demand for PFAS remediation, greenhouse gas measurement and mitigation, and renewable energy, in particular. We have also been awarded several large U.S. federal government projects, reflecting the growing importance of our environmental solutions across the private and public sector.”
Mr. Manthripragada continued, “The revenue growth in most of our business lines more than offset the previously communicated and expected normalization of CTEH revenues, a trend we expect to continue through the remainder of 2022. With costs, we have seen certain variable expenses such as travel accelerate faster than anticipated in the current inflationary environment, but we remain confident in our ability to offset those costs with pricing increases and improved efficiencies. As it relates to our people, our ability to recruit and retain talent, particularly at the mid to senior levels in the organization, remains strong. I remain very grateful to my team for all they do for our business, each other and our clients.”
Mr. Manthripragada elaborated, “I would also like to explain a change to our methodology for calculating Consolidated Adjusted EBITDA1 based on feedback from the SEC and other stakeholders. This does not reflect a change in our underlying economics, our cash flow, or our previously communicated expectations for either 2022 or the next three to five years. For example, we continue to see growing momentum with our R&D and technology efforts which are creating new market opportunities. As we see more of these opportunities, our ability to innovate, our ability to enter new geographies and our clients’ receptivity to our innovation – in other words, our continued launch of “startup initiatives” – is expected to continue or potentially accelerate. Therefore, going forward, we will no longer add back startup costs that we included in our historical calculation of Consolidated Adjusted EBITDA1 . Our previously reported 2021 Consolidated Adjusted EBITDA1 was $77.6 million $4.4 million 1 in 2021 was $73.2 million $73.0 million $78.0 million 1 included an estimate of approximately $5.0 million 1 is $68.0 million $73.0 million
________________________________
(1) Consolidated Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share are non-GAAP measures. See the appendix to this release for a discussion of these measures, including how they are calculated and the reasons why we believe they provide useful information to investors, and a reconciliation for historical periods to the most directly comparable GAAP measures.
Second Quarter 2022 Results
Total revenue in the second quarter of 2022 increased 2.7% to $139.9 million $136.2 million
Net loss was $(7.8) million $(0.40) per share, compared to a net loss of $(13.1) million $(0.66) per share, in the prior year quarter. The year-over-year change was primarily attributable to changes in the fair value of business acquisition contingencies in the current year compared to the prior year and lower interest expense, partially offset by higher stock-based compensation expense in the current year.
Adjusted Net Income 1 was $5.4 million 1 was $0.04 , compared to Adjusted Net Income1 of $4.8 million 1 of $0.03 in the prior year quarter. The year-over-year change was primarily attributable to lower interest expense in the current year, partially offset by lower operating segment Adjusted EBITDA primarily due to lower revenue from COVID-related services provided by CTEH.
Consolidated Adjusted EBITDA1 , under the revised methodology, was $15.6 million $0.9 million $19.8 million $1.1 million
First Six Months 2022 Results
Total revenue in the first six months of 2022 increased 1.7% to $274.6 million $270.0 million
Net loss was $(15.3) million $(0.79) per share, compared to a net loss of $(26.1) million $(1.34) per share, in the prior year period. The year-over-year change was primarily attributable to changes in the fair value of business acquisition contingencies in the current year compared to the prior year and lower interest expense, partially offset by higher stock-based compensation in the current year.
Adjusted Net Income1 was $10.9 million 1 was $0.09 , compared to Adjusted Net Income1 of $8.4 million 1 of $0.01 , in the prior year period. The year-over-year change was primarily attributable to lower interest expense in the current year, partially offset by lower operating segment Adjusted EBITDA primarily due to lower revenue from COVID-related services provided by CTEH.
Consolidated Adjusted EBITDA1 for the six months ended June 30, 2022 , under the revised methodology, was $31.3 million $1.7 million $35.7 million $2.1 million
Operating Cash Flow, Liquidity and Capital Resources
Cash used in operating activities for the first six months ended June 30, 2022 was $(2.9) million $(17.0) million $19.5 million $15.5 million $16.6 million $(1.5) million $18.1 million
As of June 30, 2022 , Montrose had total debt, before debt issuance costs, of $168.4 million $223.4 million $98.4 million $125.0 million June 30, 2022 , Montrose’s leverage ratio under its credit facility, which includes acquisition-related contingent earnout payments that may become payable in cash, was 1.1 times.
Acquisitions
In August 2022 , Montrose acquired TriAD Environmental Consultants , a small but highly additive environmental consulting firm with a focus on the Southeast U.S. TriAD is part of the Company’s Assessment, Permitting & Response segment.
Full Year 2022 Outlook
The Company reiterates its full year 2022 outlook. The Company expects revenue to be in the range of $520.0 million $570.0 million 1 , under the revised methodology, is expected to be in the range of $68.0 million $73.0 million $5.0 million February 28, 2022 .
The Company’s 2022 forecast reflects an expectation of organic growth outperformance relative to the Company’s historical average of 7.0% - 9.0% (excluding CTEH). The 2022 forecast also reflects revenue from CTEH to be elevated versus CTEH's expected $75.0 - $95.0 million
The outlook does not include any benefit from future acquisitions that have not yet been completed.
Webcast and Conference Call
The Company will host a webcast and conference call on Tuesday, August 9, 2022 at 8:30 a.m. Eastern time to discuss second quarter financial results. Their prepared remarks will be followed by a question and answer session. A live webcast of the conference call will be available in the Investors section of the Montrose website at www.montrose-env.com . The conference call will also be accessible by dialing 1-877-407-9208 (Domestic) and 1-201-493-6784 (International). For those who are unable to listen to the live broadcast, an audio replay of the conference call will be available on the Montrose website for 30 days.
About Montrose
Montrose is a leading environmental solutions company focused on supporting commercial and government organizations as they deal with the challenges of today, and prepare for what’s coming tomorrow. With approximately 2,800 employees across over 80 locations around the world, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling the Company to respond effectively and efficiently to the unique requirements of each project. From comprehensive air measurement and laboratory services to regulatory compliance, emergency response, permitting, engineering, and remediation, Montrose delivers innovative and practical solutions that keep its clients on top of their immediate needs – and well ahead of the strategic curve. For more information, visit www.montrose-env.com .
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as “intend,” “expect”, and “may”, and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Further, many of these factors are, and may continue to be, amplified by the COVID-19 pandemic. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission , including its Annual Report on Form 10-K for the year ended December 31, 2021 , for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.
MONTROSE ENVIRONMENTAL GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(In thousands, except per share data)
For the Three Months Ended June 30 ,
For the Six Months Ended June 30 ,
2022
2021
2022
2021
REVENUES
$
139,910
$
136,224
$
274,590
$
270,041
COST OF REVENUES (exclusive of
90,429
92,104
178,815
187,420
SELLING, GENERAL AND ADMINISTRATIVE
46,456
27,366
88,263
52,366
FAIR VALUE CHANGES IN BUSINESS
(3,510
)
12,971
(3,531
)
24,035
DEPRECIATION AND AMORTIZATION
12,280
9,878
24,424
21,674
LOSS FROM OPERATIONS
(5,745
)
(6,095
)
(13,381
)
(15,454
)
OTHER INCOME (EXPENSE)
Other income (expense)
343
(511
)
2,804
(1,393
)
Interest expense—net
(1,518
)
(6,798
)
(2,610
)
(9,486
)
Total other (expense) income—net
(1,175
)
(7,309
)
194
(10,879
)
LOSS BEFORE (EXPENSE) INCOME
(6,920
)
(13,404
)
(13,187
)
(26,333
)
INCOME TAX EXPENSE (BENEFIT)
831
(256
)
2,100
(254
)
NET LOSS
$
(7,751
)
$
(13,148
)
$
(15,287
)
$
(26,079
)
EQUITY ADJUSTMENT FROM FOREIGN
(84
)
28
(3
)
57
COMPREHENSIVE LOSS
(7,835
)
(13,120
)
(15,290
)
(26,022
)
CONVERTIBLE AND REDEEMABLE
(4,100
)
(4,100
)
(8,200
)
(8,200
)
NET LOSS ATTRIBUTABLE TO
(11,851
)
(17,248
)
(23,487
)
(34,279
)
WEIGHTED AVERAGE COMMON SHARES
29,678
26,056
29,670
25,586
NET LOSS PER SHARE ATTRIBUTABLE
$
(0.40
)
$
(0.66
)
$
(0.79
)
$
(1.34
)
MONTROSE ENVIRONMENTAL GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In thousands, except share data)
June 30, 2022
December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and restricted cash
$
98,414
$
146,741
Accounts receivable—net
87,676
98,513
Contract assets
47,740
40,139
Prepaid and other current assets
10,406
8,465
Total current assets
244,236
293,858
NON-CURRENT ASSETS:
Property and equipment—net
34,396
31,521
Operating lease right-of-use asset—net
29,466
23,532
Finance lease right-of-use asset—net
8,278
8,944
Goodwill
315,626
311,944
Other intangible assets—net
150,684
160,997
Other assets
5,057
2,298
TOTAL ASSETS
$
787,743
$
833,094
LIABILITIES, CONVERTIBLE AND REDEEMABLE SERIES A-2
CURRENT LIABILITIES:
Accounts payable and other accrued liabilities
59,285
68,936
Accrued payroll and benefits
18,756
25,971
Business acquisitions contingent consideration, current
2,814
31,450
Current portion of operating lease liabilities
8,226
6,888
Current portion of finance lease liabilities
3,462
3,512
Current portion of long-term debt
8,750
10,938
Total current liabilities
101,293
147,695
NON-CURRENT LIABILITIES:
Business acquisitions contingent consideration, long-term
3,560
4,350
Other non-current liabilities
81
100
Deferred tax liabilities—net
6,207
4,006
Conversion option
24,207
23,081
Operating lease liability—net of current portion
21,714
16,859
Finance lease liability—net of current portion
5,199
5,756
Long-term debt—net of deferred financing fees
157,703
161,818
Total liabilities
319,964
363,665
COMMITMENTS AND CONTINGENCIES
CONVERTIBLE AND REDEEMABLE SERIES A-2 PREFERRED STOCK $0.0001 PAR VALUE—
Authorized, issued and outstanding shares: 17,500 at June 30, 2022 and
December 31, 2021 ; aggregate liquidation preference of $182.2 million June 30, 2022 and December 31, 2021
152,928
152,928
STOCKHOLDERS’ EQUITY:
Common stock, $0.000004 par value; authorized shares: 190,000,000 at
June 30, 2022 and December 31, 2021 ; issued and outstanding shares: 29,679,392
June 30, 2022 and December 31, 2021 , respectively
—
—
Additional paid-in capital
477,783
464,143
Accumulated deficit
(162,965
)
(147,678
)
Accumulated other comprehensive income
33
36
Total stockholders’ equity
314,851
316,501
TOTAL LIABILITIES, CONVERTIBLE AND REDEEMABLE SERIES A-2
$
787,743
$
833,094
MONTROSE ENVIRONMENTAL GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended June 30 ,
2022
2021
OPERATING ACTIVITIES:
Net loss
$
(15,287
)
$
(26,079
)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for bad debt
(171
)
590
Depreciation and amortization
24,424
21,674
Amortization of right-of-use asset
4,582
4,025
Stock-based compensation expense
21,357
4,222
Fair value changes in financial instruments
(2,856
)
1,120
Fair value changes in business acquisition contingencies
(3,531
)
24,035
Deferred income taxes
2,100
(254
)
Debt extinguishment costs
—
4,052
Other
370
(87
)
Changes in operating assets and liabilities—net of acquisitions:
Accounts receivable and contract assets
8,248
(31,009
)
Prepaid expenses and other current assets
(433
)
1,316
Accounts payable and other accrued liabilities
(10,171
)
1,788
Accrued payroll and benefits
(7,794
)
(2,846
)
Payment of contingent consideration
(19,457
)
(15,549
)
Other assets
—
(107
)
Change in operating leases
(4,323
)
(3,937
)
Net cash used in operating activities
(2,942
)
(17,046
)
INVESTING ACTIVITIES:
Purchases of property and equipment
(3,501
)
(2,354
)
Proceeds received from corporate owned insurance
277
—
Proprietary software development and other software costs
(147
)
(208
)
Purchase price true ups
(631
)
(8,377
)
Cash paid for acquisitions—net of cash acquired
(14,328
)
(14,876
)
Net cash used in investing activities
(18,330
)
(25,815
)
FINANCING ACTIVITIES:
Proceeds from line of credit
—
105,000
Payments on line of credit
—
(40,000
)
Proceeds from term loans
—
175,000
Repayment of term loan
(6,563
)
(173,905
)
Payment of contingent consideration
(10,722
)
(9,605
)
Repayment of finance leases
(1,911
)
(1,143
)
Debt issuance costs
—
(2,590
)
Proceeds from issuance of common stock for exercised stock options
483
3,086
Dividend payment to the Series A-2 shareholders
(8,200
)
(8,200
)
Payments of deferred offering costs
(183
)
—
Net cash (used in) provided by financing activities
(27,096
)
47,643
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(48,368
)
4,782
Foreign exchange impact on cash balance
41
526
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of year
146,741
34,881
End of period
$
98,414
$
40,189
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:
Cash paid for interest
$
3,196
$
3,397
Cash paid for income tax
$
699
$
305
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued purchases of property and equipment
$
1,408
$
907
Property and equipment purchased under finance leases
$
1,273
$
1,766
Common stock issued to acquire new businesses
$
—
$
2,746
Acquisitions unpaid contingent consideration
$
6,374
$
31,152
Acquisitions contingent consideration paid in shares
$
—
$
25,000
Non-GAAP Financial Information
In addition to our results under GAAP, in this release we also present certain other supplemental financial measures of financial performance that are not required by, or presented in accordance with, GAAP, including, Consolidated Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share. We calculate Consolidated Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit) and depreciation and amortization, adjusted for the impact of certain other items, including stock-based compensation expense and acquisition-related costs, as set forth in greater detail in the table below. We calculate Adjusted Net Income (Loss) as net income (loss) before amortization of intangible assets, stock-based compensation expense, fair value changes to financial instruments and contingent earnouts, and other gain or losses, as set forth in greater detail in the table below. Adjusted Net Income (Loss) per Share represents Adjusted Net Income (Loss) attributable to stockholders divided by the weighted average number of shares of common stock outstanding during the applicable period.
Consolidated Adjusted EBITDA is one of the primary metrics used by management to evaluate our financial performance and compare it to that of our peers, evaluate the effectiveness of our business strategies, make budgeting and capital allocation decisions and in connection with our executive incentive compensation. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share are useful metrics to evaluate ongoing business performance after interest and tax. These measures are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe they are helpful in highlighting trends in our operating results because they allow for more consistent comparisons of financial performance between periods by excluding gains and losses that are non-operational in nature or outside the control of management, and, in the case of Consolidated Adjusted EBITDA, by excluding items that may differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments.
These non-GAAP measures do, however, have certain limitations and should not be considered as an alternative to net income (loss), earnings (loss) per share or any other performance measure derived in accordance with GAAP. Our presentation of Consolidated Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items for which we may make adjustments. In addition, Consolidated Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share may not be comparable to similarly titled measures used by other companies in our industry or across different industries, and other companies may not present these or similar measures. Management compensates for these limitations by using these measures as supplemental financial metrics and in conjunction with our results prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single measure and to view Consolidated Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Share in conjunction with the related GAAP measures.
Additionally, we have provided estimates regarding Consolidated Adjusted EBITDA for 2022. These projections account for estimates of revenue, operating margins and corporate and other costs. However, we cannot reconcile our projection of Consolidated Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, without unreasonable efforts because of the unpredictable or unknown nature of certain significant items excluded from Consolidated Adjusted EBITDA and the resulting difficulty in quantifying the amounts thereof that are necessary to estimate net income (loss) . Specifically, we are unable to estimate for the future impact of certain items, including income tax (expense) benefit, stock-based compensation expense, fair value changes and the accounting for the issuance of the Series A-2 preferred stock. We expect the variability of these items could have a significant impact on our reported GAAP financial results.
In this release we also reference our organic growth. We define organic growth as the change in revenues excluding revenues from acquisitions for the first twelve months following the date of acquisition and excluding revenues from businesses disposed of or discontinued. As a result of the significance of CTEH to Montrose, and the potential annual volatility in CTEH’s revenues due to the emergency response aspect of their business, we also disclose organic growth without the annual organic revenue growth of CTEH. We expect to continue to disclose organic revenue growth with and without CTEH. Management uses organic growth as one of the means by which it assesses our results of operations. Organic growth is not, however, a measure of revenue growth calculated in accordance with U.S. generally accepted accounting principles, or GAAP, and should be considered in conjunction with revenue growth calculated in accordance with GAAP. We have grown organically and expect to continue to do so.
Montrose Environmental Group, Inc.
Reconciliation of Net Loss to Adjusted Net Income
(in thousands)
(Unaudited)
For the Three Months
June 30 ,
For the Six Months
June 30 ,
2022
2021
2022
2021
Net loss
$
(7,751
)
$
(13,148
)
$
(15,287
)
$
(26,079
)
Amortization of intangible assets(1)
9,492
8,407
18,911
17,002
Stock-based compensation (2)
10,932
2,417
21,357
4,222
Acquisition costs (3)
519
506
986
743
Fair value changes in financial instruments (4)
(407
)
518
(2,856
)
1,120
Expenses related to financing transactions (5)
—
—
7
50
Fair value changes in business acquisition contingencies (6)
(3,510
)
12,971
(3,531
)
24,035
Other losses and expenses (7)
1,216
157
1,483
675
Tax effect of adjustments (8)
(5,108
)
(6,993
)
(10,180
)
(13,397
)
Adjusted Net Income
$
5,383
$
4,835
$
10,890
$
8,371
Preferred Dividend Series A-2
(4,100
)
(4,100
)
(8,200
)
(8,200
)
Adjusted Net Income attributable to
$
1,283
$
735
$
2,690
$
171
Net Loss per share attributable to
$
(0.40
)
$
(0.66
)
$
(0.79
)
$
(1.34
)
Adjusted Net Income per share(9)
$
0.04
$
0.03
$
0.09
$
0.01
Diluted Adjusted Net Income per share(10)
$
0.03
$
0.02
$
0.07
$
0.01
Weighted average common shares outstanding
29,678
26,056
29,670
25,586
Fully diluted shares
37,822
32,462
37,508
32,398
___________________________________
(1) Represents amortization of intangible assets.
(2) Represents non-cash stock-based compensation expenses related to (i) option awards issued to employees, (ii) restricted stock grants issued to directors and selected employees, (iii) and stock appreciation rights grants issued to selected employees.
(3) Includes financial and tax diligence, consulting, legal, valuation, accounting and travel costs and acquisition-related incentives related to our acquisition activity.
(4) Amounts relate to the change in fair value of the interest rate swap instrument and the embedded derivative attached to the Series A-2 preferred stock.
(5) Amounts represent non-capitalizable expenses associated with refinancing and amending our debt facilities.
(6) Amounts also reflect the difference between the expected settlement value of acquisition related earn-out payments at the time of the closing of acquisitions and the expected (or actual) value of earn-outs at the end of the relevant period.
(7) In 2022, amounts include costs associated with the closing of a lab. In 2021, amounts include non-operational charges incurred due to the remeasurement of finance leases as a result of the adoption of ASC 842 and costs related to the implementation of a new ERP.
(8) Applies Montrose's marginal tax rate of 28.0% to non-GAAP adjustments above, which are each pre-tax.
(9) Represents Adjusted Net Income attributable to stockholders divided by the weighted average common shares outstanding.
(10) Represents Adjusted Net Income attributable to stockholders divided by fully diluted shares.
Montrose Environmental Group, Inc.
Reconciliation of Net Loss to Consolidated Adjusted EBITDA
(in thousands)
(Unaudited)
For the Three Months Ended June 30 ,
For the Six Months
June 30 ,
2022
2021(a)
2022
2021(a)
Net loss
$
(7,751
)
$
(13,148
)
$
(15,287
)
$
(26,079
)
Interest expense
1,518
6,798
2,610
9,486
Income tax expense (benefit)
831
(256
)
2,100
(254
)
Depreciation and amortization
12,280
9,878
24,424
21,674
EBITDA
$
6,878
$
3,272
$
13,847
$
4,827
Stock-based compensation (1)
10,932
2,417
21,357
4,222
Acquisition costs (2)
519
506
986
743
Fair value changes in financial instruments (3)
(407
)
518
(2,856
)
1,120
Expenses related to financing transactions (4)
—
—
7
50
Fair value changes in business
(5)
(3,510
)
12,971
(3,531
)
24,035
Other losses and expenses(6)
1,216
157
1,483
675
Consolidated Adjusted EBITDA
$
15,628
$
19,841
$
31,293
$
35,672
___________________________________
(a) Prior period amounts have been recalculated from amounts originally disclosed using the current methodology.
(1) Represents non-cash stock-based compensation expenses related to (i) option awards issued to employees, (ii) restricted stock grants issued to directors and selected employees, (iii) and stock appreciation rights grants issued to selected employees.
(2) Includes financial and tax diligence, consulting, legal, valuation, accounting and travel costs and acquisition-related incentives related to our acquisition activity.
(3) Amounts relate to the change in fair value of the interest rate swap instrument and the embedded derivative attached to the Series A-2 preferred stock.
(4) Amounts represent non-capitalizable expenses associated with refinancing and amending our debt facilities.
(5) Reflects the difference between the expected settlement value of acquisition related earn-out payments at the time of the closing of acquisitions and the expected (or actual) value of earn-outs at the end of the relevant period.
(6) In 2022, amounts include costs associated with the closing of a lab. In 2021, amounts include non-operational charges incurred due to the remeasurement of finance leases as a result of the adoption of ASC 842 and costs related to the implementation of a new ERP.
View source version on businesswire.com : https://www.businesswire.com/news/home/20220808005716/en/
Investor Relations:
Rodny Nacier
ir@montrose-env.com
Media Relations:
Doug Donsky
Montrose@icrinc.com
Source: Montrose Environmental Group, Inc.
