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3/25/22, 9:42 AM
<br />Table of Contents
<br />road -20210930
<br />Other Key Performance Indicators — Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Net Income
<br />Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for
<br />income taxes, (iii) depreciation, depletion, accretion and amortization, (iv) equity -based compensation expense, (v) loss on the
<br />extinguishment of debt, (vi) certain management fees and expenses and (vii) nonrecurring legal settlement costs and associated legal
<br />expenses unrelated to the Company's core operations. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of
<br />revenues for each period. Adjusted net income represents net income before nonrecurring legal settlement costs and associated legal
<br />expenses unrelated to the Company's core operations. These metrics are supplemental measures of our operating performance that are
<br />neither required by, nor presented in accordance with, GAAP. These measures have limitations as analytical tools and should not be
<br />considered in isolation or as an alternative to net income or any other performance measure derived in accordance with GAAP as an
<br />indicator of our operating performance. We present Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted net income because
<br />management uses these measures as key performance indicators, and we believe that securities analysts, investors and others use these
<br />measures to evaluate companies in our industry. Our calculation of Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted net
<br />income may not be comparable to similarly named measures reported by other companies. Potential differences may include
<br />differences in capital structures, tax positions and the age and book depreciation of intangible and tangible assets.
<br />The following table presents a reconciliation of net income, the most directly comparable measure calculated in accordance with
<br />GAAP, to Adjusted EBITDA and the calculation of Adjusted EBITDA Margin for the periods presented (in thousands, except
<br />percentages):
<br />Net income
<br />Interest expense, net
<br />Provision for income taxes
<br />Depreciation, depletion, accretion and amortization
<br />Equity -based compensation expense
<br />Management fees and expenses t')
<br />Settlement of legal claim and associated legal expenses (�)
<br />Adjusted EBITDA
<br />Revenues
<br />For the Fiscal Year
<br />Ended September 30,
<br />2021
<br />2020
<br />$ 20,177 $
<br />40,297
<br />2,404
<br />3,113
<br />8,349
<br />12,760
<br />49,806
<br />39,301
<br />3,549
<br />1,570
<br />1,935
<br />1,403
<br />4,362
<br />434
<br />$ 90,582 $
<br />98,878
<br />$ 910,739 $
<br />785,679
<br />Adjusted EBITDA Margin 9.9% 12.6%
<br />0) Reflects fees and reimbursement of certain out-of-pocket expenses under a management services agreement with SunTx
<br />Capital Partners, the Company's controlling stockholder (see Note 17 - Related Parties to the consolidated financial statements
<br />included elsewhere in this report).
<br />(2) Reflects $3.2 million legal settlement and associated legal expenses (see Note 26 - Legal Settlement to the consolidated
<br />financial statements included elsewhere in this report).
<br />The following table presents a reconciliation of net income, the most directly comparable measure calculated in accordance with
<br />GAAP, to adjusted net income for the periods presented (in thousands):
<br />Net income
<br />Settlement of legal claim and associated legal expenses
<br />Tax impact due to above reconciling items
<br />Adjusted net income
<br />For the Fiscal Year
<br />Ended September 30,
<br />2021 2020
<br />20,177 $ 40,297
<br />4,362 434
<br />$ (570) $ (109)
<br />$ 23,969 $ 40,622
<br />Reflects $3.2 million legal settlement and associated legal expenses (see Note 26 - Legal Settlement to the consolidated
<br />financial statements included elsewhere in this report).
<br />https://www.sec.gov/Archivestedgar/data/0001718227/000171822721000107/road-20210930.htm 55/144
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