Exhibit 99.1
CORRECTION
www.e2open.com
Press Release
E2open Announces Fiscal First Quarter 2023 Financial Results
GAAP subscription revenue of $129.5 Million, up 154%
12% organic subscription revenue growth on a constant currency basis
CORRECTION…by E2open Parent Holdings, Inc.
AUSTIN, Texas – July 11, 2022 –Adjusted EBITDA margin in the fourth bullet under “Fiscal First Quarter 2023 Financial Highlights” should read: Adjusted EBITDA margin was 32.0%... (instead of: Adjusted EBITDA margin was 31.6%...) This change has also been made in the Reconciliation of Pro Forma Information table.
The updated release reads:
GAAP subscription revenue of $129.5 Million, up 154%
12% organic subscription revenue growth on a constant currency basis
AUSTIN, Texas – July 11, 2022 – E2open Parent Holdings, Inc. (NYSE: ETWO), the connected supply chain SaaS platform with the largest multi-enterprise network, today announced financial results for its fiscal first quarter ended May 31, 2022.
“We are very pleased with our first quarter performance where we continued to support the world’s largest and most complex supply chains adapt to growing inflationary pressures, and increasing demand and supply challenges,” said Michael Farlekas, chief executive officer at e2open. “The size and resiliency of our subscription revenue base enables us to sustain profitable growth as demonstrated by our first quarter results of 12% organic subscription revenue growth on a constant currency basis, along with adjusted EBITDA growing to $51.4 million.”
“We are reaffirming our EBITDA outlook for this fiscal year despite incremental foreign exchange headwinds to our total revenue base,” continued Farlekas. “As we look forward, we see the demand for our multi-enterprise supply chain platform continue to expand as companies seek to become more agile in an ever-changing global economy.”
Fiscal First Quarter 2023 Financial Highlights
We present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation, as presented and defined in the Information Tables below.
NOTE: Refer to Reconciliation of Pro Forma and Non-GAAP Information Tables at the end of this press release for more detail regarding revenue, gross margin, adjusted EBITDA margin, net loss, adjusted earnings per share, unlevered free cash flow and adjusted EBITDA. Prior year comparisons of non-GAAP measures include e2open, BluJay and Logistyx, as if BluJay and Logistyx were acquired on March 1, 2021.
Recent Business Highlights
Financial Outlook for Fiscal Year 2023
As of July 11, 2022, e2open is providing updated guidance for the remainder of fiscal year 2023, which ends February 28, 2023, as follows:
Fiscal 2023 GAAP Subscription Revenue
Fiscal 2023 Total GAAP Revenue
Fiscal Second Quarter 2023 GAAP Subscription Revenue
Fiscal 2023 Non-GAAP Gross Profit Margin
Fiscal 2023 Adjusted EBITDA
NOTE: E2open is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures for non-GAAP gross profit margin or adjusted EBITDA without unreasonable effort, and therefore no reconciliation of certain forward-looking non-GAAP financial measures for non-GAAP gross profit margin or adjusted EBITDA is included.
Quarterly Conference Call
E2open will host a conference call today at 5:00 p.m. ET to review fiscal 2023 first quarter financial results, in addition to discussing the Company’s outlook for the full fiscal year 2023. To access this call, dial 888-506-0062 (domestic) or 973-528-0011 (international). The conference ID is 453559. A live webcast of the conference call will be accessible in the “Investor Relations” section of e2open’s website at www.e2open.com. A replay of this conference call can also be accessed through July 25, 2022, at 877-481-4010 (domestic) or 919-882-2331 (international). The replay pass code is 45894. An archived webcast of this conference call will also be available after the completion of the call in the “Investor Relations” section of the Company’s website at www.e2open.com.
About E2open
E2open is the connected supply chain software platform that enables the world’s largest companies to transform the way they make, move, and sell goods and services. With the broadest cloud-native global platform purpose-built for modern supply chains, e2open connects more than 400,000 manufacturing, logistics, channel, and distribution partners as one multi-enterprise network tracking over 12 billion transactions annually. Our SaaS platform anticipates disruptions and opportunities to help companies improve efficiency, reduce waste, and operate sustainably. Moving as one.™ Learn More: www.e2open.com.
E2open and “Moving as one.” are the registered trademarks of E2open, LLC. All other trademarks, registered trademarks and service marks are the property of their respective owners.
Non-GAAP Financial Measures
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including non-GAAP revenue, non-GAAP subscription revenue, non-GAAP professional services and other revenue, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, non-GAAP net income, non-GAAP gross margin, unlevered free cash flow and adjusted earnings per share. These non-GAAP financial measures are not a measure of financial performance in accordance with GAAP and may exclude
items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity, or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies.
The Company believes this non-GAAP measure of financial results provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures.
Safe Harbor Statement
Certain statements in this press release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential," "outlook," "guidance" or the negative of those terms or other comparable terminology.
Please see the Company's documents filed or to be filed with the Securities and Exchange Commission, including the annual report filed on Form 10-K, and any amendments thereto for a discussion of certain important risk factors that relate to forward-looking statements contained in this press release. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
###
Investor Contact
Adam Rogers
AVP Investor Relations, e2open
adam.rogers@e2open.com
515-556-1162
Media Contact
5W PR for e2open
e2open@5wpr.com
718-757-6144
Corporate Contact
Kristin Seigworth
VP Communications, e2open
kristin.seigworth@e2open.com
E2OPEN PARENT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
| Three Months Ended May 31, | ||
(In thousands, except per share amounts) |
| 2022 |
| 2021 |
Revenue |
|
|
|
|
Subscriptions |
| $ 129,547 |
| $ 51,034 |
Professional services and other |
| 30,834 |
| 15,293 |
Total revenue |
| 160,381 |
| 66,327 |
Cost of Revenue |
|
|
|
|
Subscriptions |
| 33,134 |
| 16,508 |
Professional services and other |
| 20,646 |
| 10,140 |
Amortization of acquired intangible assets |
| 24,901 |
| 11,511 |
Total cost of revenue |
| 78,681 |
| 38,159 |
Gross Profit |
| 81,700 |
| 28,168 |
Operating Expenses |
|
|
|
|
Research and development |
| 22,562 |
| 15,701 |
Sales and marketing |
| 24,155 |
| 12,514 |
General and administrative |
| 20,346 |
| 13,717 |
Acquisition-related expenses |
| 6,764 |
| 9,778 |
Amortization of acquired intangible assets |
| 21,535 |
| 3,830 |
Total operating expenses |
| 95,362 |
| 55,540 |
Loss from operations |
| (13,662) |
| (27,372) |
Other income (expense) |
|
|
|
|
Interest and other expense, net |
| (15,413) |
| (4,903) |
Change in tax receivable agreement liability |
| (1,670) |
| (2,499) |
Gain (loss) from change in fair value of warrant liability |
| 5,455 |
| (59,943) |
Gain (loss) from change in fair value of contingent consideration |
| 4,200 |
| (73,260) |
Total other expenses |
| (7,428) |
| (140,605) |
Loss before income tax provision |
| (21,090) |
| (167,977) |
Income tax benefit (expense) |
| 8,469 |
| (1,378) |
Net loss |
| (12,621) |
| (169,355) |
Less: Net loss attributable to noncontrolling interest |
| (1,265) |
| (27,097) |
Net loss attributable to E2open Parent Holdings, Inc. |
| $ (11,356) |
| $ (142,258) |
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
Basic |
| 301,373 |
| 187,051 |
Diluted |
| 301,373 |
| 187,051 |
Net loss attributable to E2open Parent Holdings, Inc. |
|
|
|
|
Basic |
| $ (0.04) |
| $ (0.76) |
Diluted |
| $ (0.04) |
| $ (0.76) |
E2OPEN PARENT HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts) |
| May 31, 2022 |
| February 28, 2022 |
|
| (Unaudited) |
|
|
Assets |
|
|
|
|
Cash and cash equivalents |
| $ 129,191 |
| $ 155,481 |
Restricted cash |
| 26,944 |
| 19,073 |
Accounts receivable, net |
| 118,867 |
| 155,341 |
Prepaid expenses and other current assets |
| 28,629 |
| 26,243 |
Total current assets |
| 303,631 |
| 356,138 |
Long-term investments |
| 199 |
| 208 |
Goodwill |
| 3,847,094 |
| 3,756,871 |
Intangible assets, net |
| 1,193,400 |
| 1,181,390 |
Property and equipment, net |
| 72,893 |
| 65,937 |
Operating lease right-of-use assets |
| 28,761 |
| 28,102 |
Other noncurrent assets |
| 20,011 |
| 16,809 |
Total assets |
| $ 5,465,989 |
| $ 5,405,455 |
Liabilities and Stockholders' Equity |
|
|
|
|
Accounts payable and accrued liabilities |
| $ 123,100 |
| $ 131,246 |
Incentive program payable |
| 26,944 |
| 19,073 |
Deferred revenue |
| 178,122 |
| 190,992 |
Acquisition-related obligations |
| 56,943 |
| — |
Current portion of notes payable |
| 10,994 |
| 89,097 |
Current portion of operating lease obligations |
| 8,240 |
| 7,652 |
Current portion of financing lease obligations |
| 2,206 |
| 2,307 |
Total current liabilities |
| 406,549 |
| 440,367 |
Long-term deferred revenue |
| 1,562 |
| 1,141 |
Operating lease obligations |
| 21,652 |
| 21,202 |
Financing lease obligations |
| 1,882 |
| 1,950 |
Notes payable |
| 1,048,156 |
| 863,577 |
Tax receivable agreement liability |
| 68,260 |
| 66,590 |
Warrant liability |
| 61,684 |
| 67,139 |
Contingent consideration |
| 41,368 |
| 45,568 |
Deferred taxes |
| 371,461 |
| 413,038 |
Other noncurrent liabilities |
| 707 |
| 712 |
Total liabilities |
| 2,023,281 |
| 1,921,284 |
Commitments and Contingencies |
|
|
|
|
Stockholders' Equity |
|
|
|
|
Class A common stock |
| 31 |
| 31 |
Class V common stock |
| — |
| — |
Series B-1 common stock |
| — |
| — |
Series B-2 common stock |
| — |
| — |
Additional paid-in capital |
| 3,364,272 |
| 3,362,219 |
Accumulated other comprehensive loss |
| (49,719) |
| (19,019) |
Accumulated deficit |
| (166,332) |
| (154,976) |
Treasury stock, at cost |
| (2,473) |
| (2,473) |
Total E2open Parent Holdings, Inc. equity |
| 3,145,779 |
| 3,185,782 |
Noncontrolling interest |
| 296,929 |
| 298,389 |
Total stockholders' equity |
| 3,442,708 |
| 3,484,171 |
Total liabilities and stockholders' equity |
| $ 5,465,989 |
| $ 5,405,455 |
E2OPEN PARENT HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
| Three Months Ended May 31, | ||
(In thousands) |
| 2022 |
| 2021 |
Cash flows from operating activities |
|
|
|
|
Net loss |
| $ (12,621) |
| $ (169,355) |
Adjustments to reconcile net loss to net cash from operating activities: |
|
|
|
|
Depreciation and amortization |
| 53,297 |
| 20,205 |
Amortization of deferred commissions |
| 849 |
| 158 |
Provision for credit losses |
| 146 |
| 245 |
Amortization of debt issuance costs |
| 1,378 |
| 667 |
Amortization of operating lease right-of-use assets |
| 3,175 |
| 1,372 |
Share-based and unit-based compensation |
| 3,188 |
| 2,043 |
Change in tax receivable agreement liability |
| 1,670 |
| 2,499 |
(Gain) loss from change in fair value of warrant liability |
| (5,455) |
| 59,943 |
(Gain) loss from change in fair value of contingent consideration |
| (4,200) |
| 73,260 |
Gain on disposal of property and equipment |
| — |
| (187) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
| 41,661 |
| 51,771 |
Prepaid expenses and other current assets |
| 864 |
| 552 |
Other noncurrent assets |
| (743) |
| (1,399) |
Accounts payable and accrued liabilities |
| (8,079) |
| (9,234) |
Incentive program payable |
| 7,872 |
| (1,010) |
Deferred revenue |
| (23,197) |
| 9,611 |
Changes in other liabilities |
| (34,925) |
| (1,875) |
Net cash provided by operating activities |
| 24,880 |
| 39,266 |
Cash flows from investing activities |
|
|
|
|
Payments for acquisitions - net of cash acquired |
| (124,168) |
| — |
Capital expenditures |
| (19,279) |
| (12,385) |
Minority investment in private firm |
| (3,000) |
| — |
Net cash used in investing activities |
| (146,447) |
| (12,385) |
Cash flows from financing activities |
|
|
|
|
Proceeds from indebtedness |
| 190,000 |
| — |
Repayments of indebtedness |
| (82,756) |
| (153) |
Repayments of financing lease obligations |
| (219) |
| (546) |
Payments of debt issuance costs |
| (4,766) |
| — |
Net cash provided by (used in) financing activities |
| 102,259 |
| (699) |
Effect of exchange rate changes on cash and cash equivalents |
| 889 |
| (1,161) |
Net (decrease) increase in cash, cash equivalents and restricted cash |
| (18,419) |
| 25,021 |
Cash, cash equivalents and restricted cash at beginning of period |
| 174,554 |
| 207,542 |
Cash, cash equivalents and restricted cash at end of period |
| $ 156,135 |
| $ 232,563 |
E2OPEN PARENT HOLDINGS, INC.
RECONCILIATION OF PRO FORMA INFORMATION
TABLE I
| Q1 | Q1 | $ Var | % Var |
PRO FORMA REVENUE RECONCILIATION |
|
|
|
|
Total GAAP Revenue | 160.4 | 66.3 | 94.1 | 141.8% |
Deferred revenue purchase accounting adjustment (2) | - | 22.5 | (22.5) | n/m |
BluJay pre-acquisition revenue | - | 47.9 | (47.9) | n/m |
Logistyx pre-acquisition revenue | - | 9.4 | (9.4) | n/m |
Total non-GAAP revenue (3) | $160.4 | $146.1 | $14.3 | 9.8% |
Constant currency FX impact (4) | 2.3 | - | 2.3 | n/m |
Total non-GAAP revenue (constant currency basis) | $162.7 | $146.1 | $16.6 | 11.4% |
|
|
|
|
|
GAAP Subscription Revenue | 129.5 | 51.0 | 78.5 | 153.9% |
Deferred revenue purchase accounting adjustment (2) | - | 22.5 | (22.5) | n/m |
BluJay pre-acquisition revenue | - | 37.1 | (37.1) | n/m |
Logistyx pre-acquisition revenue | - | 6.4 | (6.4) | n/m |
Non-GAAP subscription revenue (3) | $129.5 | $117.0 | $12.5 | 10.7% |
Constant currency FX impact (4) | 1.7 | - | 1.7 | n/m |
Non-GAAP subscription revenue (constant currency basis) | $131.2 | $117.0 | $14.2 | 12.1% |
|
|
|
|
|
GAAP Professional Services and other revenue | 30.8 | 15.3 | 15.5 | 101.3% |
BluJay pre-acquisition revenue | - | 10.8 | (10.8) | n/m |
Logistyx pre-acquisition revenue | - | 3.0 | (3.0) | n/m |
Non-GAAP professional services and other revenue (3) | $30.8 | $29.0 | $1.8 | 6.3% |
Constant currency FX impact (4) | 0.6 | - | 0.6 | n/m |
Non-GAAP professional services and other revenue (constant currency basis) | $31.4 | $29.0 | 2.4 | 8.2% |
|
|
|
|
|
PRO FORMA GROSS PROFIT RECONCILIATION |
|
|
|
|
GAAP Gross profit | 81.7 | 28.2 | 53.5 | 190.0% |
Deferred revenue purchase accounting adjustment (2) | - | 22.5 | (22.4) | n/m |
Depreciation and amortization | 28.4 | 14.1 | 14.3 | n/m |
Share-based compensation (5) | 0.2 | 0.3 | (0.1) | n/m |
Non-recurring/non-operating costs (6) | 0.9 | 0.3 | 0.6 | n/m |
Non-GAAP gross profit | $111.3 | $65.4 | $45.8 | 70.0% |
BluJay pre-acquisition gross profit | - | 31.5 | (31.5) | n/m |
Logistyx pre-acquisition gross profit | - | 4.8 | (4.8) | n/m |
Total non-GAAP gross profit (3) | $111.3 | $101.8 | $9.5 | 9.3% |
Non-GAAP Gross Margin % (3) | 69.4% | 69.7% |
|
|
Constant currency FX impact (4) | 1.1 | - | 1.1 | n/m |
Total non-GAAP gross profit (constant currency basis) | $112.3 | $101.8 | $10.7 | 10.3% |
Non-GAAP Gross Margin % (constant currency basis) | 69.1% | 69.7% |
|
|
|
|
|
|
|
|
|
|
|
|
PRO FORMA ADJUSTED EBITDA RECONCILIATION |
|
|
|
|
Net income (loss) | (12.6) | (169.4) | 156.8 | n/m |
Interest expense, net | 15.6 | 6.1 | 9.4 | 156.0% |
Income tax benefit | (8.5) | 1.4 | (9.9) | n/m |
Depreciation and amortization | 53.3 | 20.2 | 33.1 | 163.8% |
EBITDA | $47.8 | $(141.7) | $189.4 | n/m |
Deferred revenue purchase accounting adjustment (2) | - | 22.5 | (22.5) | n/m |
Share-based compensation (5) | 3.2 | 2.4 | 0.8 | 33.3% |
Non-recurring/non-operating costs (6) | 1.6 | 0.4 | 1.2 | n/m |
Acquisition-related adjustments (7) | 6.8 | 9.8 | (3.0) | n/m |
Change in tax receivable agreement liability (8) | 1.7 | 2.5 | (0.8) | n/m |
Change in fair value of warrant liability (9) | (5.5) | 59.9 | (65.4) | n/m |
Change in fair value of contingent consideration (10) | (4.2) | 73.3 | (77.5) | n/m |
Adjusted EBITDA | $51.4 | $29.2 | $22.2 | 76.0% |
BluJay pre-acquisition EBITDA and other (11) | - | 15.8 | (15.8) | n/m |
Logistyx pre-acquisition EBITDA and other (11) | - | 0.7 | (0.7) | n/m |
Total adjusted EBITDA (3) | $51.4 | $45.8 | $5.7 | 12.4% |
Adjusted EBITDA Margin % (3) | 32.0% | 31.3% |
|
|
Constant currency FX impact (4) | (0.8) | - | (0.8) | n/m |
Total adjusted EBITDA (constant currency basis) | $50.6 | $45.8 | $4.9 | 10.7% |
Adjusted EBITDA Margin % (constant currency basis) | 31.1% | 31.3% |
|
|
E2OPEN PARENT HOLDINGS, INC.
RECONCILIATION OF NON-GAAP EXPENSES
TABLE II
Fiscal First Quarter 2023 |
|
|
|
|
|
|
(in millions, except per share amounts) | GAAP | M&A Related(1) & Non-recurring(2) | Depreciation & Amortization | Share-Based Compensation | Non-GAAP (Adjusted) | % of Revenue |
COST OF GOODS |
|
|
|
|
|
|
Subscriptions | 33.1 | (0.5) | (3.3) | (0.1) | 29.2 | 22.5% |
Professional services and other | 20.6 | (0.4) | (0.2) | (0.1) | 19.9 | 64.6% |
Amortization of intangibles | 24.9 | - | (24.9) | - | - |
|
Total cost of revenue | $78.7 | $(0.9) | $(28.4) | $(0.2) | $49.1 | 30.6% |
|
|
|
|
|
|
|
Gross Profit | $81.7 | $0.9 | $28.4 | $0.2 | $111.3 | 69.4% |
|
|
|
|
|
|
|
OPERATING COSTS |
|
|
|
|
|
|
Research & development | 22.6 | (0.1) | (2.2) | (0.5) | 19.8 | 12.4% |
Sales & marketing | 24.2 | (0.5) | (0.3) | (0.8) | 22.6 | 14.1% |
General & administrative | 20.3 | (0.4) | (0.8) | (1.7) | 17.4 | 10.8% |
Acquisition related expenses | 6.8 | (6.8) | - | - | - |
|
Amortization of intangibles | 21.5 | - | (21.5) | - | - |
|
Total operating expenses | $95.4 | $(7.7) | $(24.9) | $(3.0) | $59.8 | 37.3% |
|
|
|
|
|
|
|
E2OPEN PARENT HOLDINGS, INC.
RECONCILIATION OF ADJUSTED EARNINGS PER SHARE
TABLE III
Fiscal First Quarter 2023
|
|
|
|
|
|
|
GAAP Net Income (Loss) | (12.6) |
Interest Expense | 15.6 |
Income Taxes Provision | 8.5 |
Depreciation & Amortization | 53.3 |
EBITDA | $47.8 |
Share-based compensation | 3.2 |
Non-recurring/non-operating costs | 1.6 |
Acquisition-related adjustments | 6.8 |
Change in tax receivable agreement liability | 1.7 |
Change in fair value of warrant liability | (5.5) |
Change in fair value of contingent consideration | (4.2) |
Adjusted EBITDA | $51.4 |
Depreciation | (6.8) |
Interest and other expense, net | (15.4) |
Adjusted EBT | $29.2 |
Normalized income taxes (1) | (7.0) |
Adjusted net income | $22.2 |
Adjusted basic shares outstanding | 341.0 |
Adjusted earnings per share | $0.07 |
E2OPEN PARENT HOLDINGS, INC.
UNLEVERED FREE CASH FLOW CONVERSION (1)
TABLE IV
(in millions) | Q1 23 |
GAAP revenue | $160.4 |
|
|
Adjusted EBITDA (3) | 51.4 |
|
|
Capital expenditures | (19.3) |
Less M+A related capital expenditures (2) | 9.2 |
Normalized capital expenditures | (10.1) |
|
|
Unlevered Free Cash Flow | $41.3 |
Free Cash Flow % of GAAP revenue | 25.7% |
Free Cash Flow % of adjusted EBITDA | 80.3% |
1. Unlevered free cash flow is a performance metric that illustrates the cash available through the operations of the business after normalized capital expenditures excluding interest, taxes, acquisition-related expenses and non-recurring/non-operating costs. Non-cash expenses are also excluded from this metric. Non-cash expenses include changes in the tax receivable agreement liability, changes in the fair value of warrants, changes in the fair value of contingent consideration and share-based compensation. 2. Primarily includes hardware and software purchases for integrating data center operations of newly acquired companies 3. The table below reconciles Net Income to Adjusted EBITDA: |
($ in millions) | Q1 FY23 |
GAAP Net Income (Loss) | (12.6) |
Interest Expense | 15.6 |
Income Taxes Provision | 8.5 |
Depreciation & Amortization | 53.3 |
EBITDA | $47.8 |
Share-based compensation | 3.2 |
Non-recurring/non-operating costs | 1.6 |
Acquisition-related adjustments | 6.8 |
Change in tax receivable agreement liability | 1.7 |
Change in fair value of warrant liability | (5.5) |
Change in fair value of contingent consideration | (4.2) |
Adjusted EBITDA | $51.4 |
E2OPEN PARENT HOLDINGS, INC.
CONSOLIDATED CAPITAL
TABLE V
Description |
| Shares (000’s) |
| Notes |
Shares outstanding as of May 31, 2022 |
| 301,426 |
| Shares outstanding as of first quarter fiscal 2023 |
Common Units |
| 33,536 |
| Units issued in the business combination that have not yet been converted from common units in the LLC to Class A shares of E2open Parent Holdings, Inc. (Common units yet to be converted are represented by class V shares) |
Series B-2 shares (unvested) |
| 3,372 |
| Series B-2 shares issued in the Business Combination that vest when the 20-day VWAP reaches $15.00 |
Series 2 common units (unvested) |
| 2,628 |
| Represent rights in the LLC that convert into common units when the 20-day VWAP reaches $15.00. Upon conversion to common units, the holder can elect to convert into Class A common stock |
Adjusted Basic Shares |
| 340,962 |
|
|
|
|
|
|
|
Warrants |
| 29,080 |
| Warrants outstanding as of first quarter fiscal 2023 with an exercise price of $11.50 |
Incentive plan options (unvested) |
| 4,924 |
| Options issued to management and directors under E2open’s long-term incentive plan |
Incentive plan restricted shares (unvested) |
| 5,876 |
| Restricted shares issued to management and directors under E2open’s long-term incentive plan |
Fully converted shares |
| 380,842 |
|
|