OTCQX SHWZ NEO SHWZ - CORPORATE PRESENTATION | APRIL 2022
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OTCQX SHWZ
NEO SHWZ
CORPORATE PRESENTATION | APRIL 2022
1
SAFE HARBOR
This presentation contains “forward-looking statements” within the meaning of the Private states, open new dispensaries, and offer new products, services and other offerings; the U.S.
Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by federal government’s enforcement priorities regarding the cannabis industry; changes in laws
words such as “believes,” “plan”, “expects,” “anticipates,” “will,” “should,” ”positioned” and words and regulations applicable to cannabis and the cannabis industry, including the classification
of similar import. Examples of forward-looking statements include, among others, statements of cannabis as a Schedule I controlled substance under the Controlled Substances Act and
regarding Medicine Man Technologies, Inc.’s dba Schwazze (the “Company”) operations, Section 208E of the Internal Revenue Code of 1986, as amended; and the demand for cannabis
financial performance, business or financial strategies, or achievements. products. Any forward-looking statement in this presentation is based only on information
currently available to the Company and speaks only as of the date of this presentation. The
Forward-looking statements are neither historical facts or assurances of future results of
Company disclaims any obligation to update any forward-looking statement or to announce
performance. Instead, they are based only on the Company’s current beliefs, expectations and
publicly the results of any revisions to any forward-looking statement to reflect future events
assumptions regarding the future of the Company’s business, future plans and strategies,
or developments except as required by law.
projections, anticipated events and trends, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject to inherent uncertainties, The unaudited preliminary pro forma results, projections and other financial information
risks and changes in circumstances that are difficult to predict and many of which are outside discussed in this presentation consists of estimates derived from the Company’s and the
of the Company’s control. Actual outcomes and results and the Company’s financial acquisitions targets’ internal books and records and are based on various assumptions that
performance and condition may differ materially from those indicated in the forward-looking have been prepared and made by the Company’s management. Such financial information is
statements. Therefore, you should not rely on any of these forward-looking statements. subject to the completion of financial closing procedures, final adjustments and other
developments that may arise between now and the time such financial information is
Important factors that could cause actual results and financial conditions to differ materially
finalized. Further, the assumptions used in developing such financial information are subject
from those indicated in the forward-looking statements include, among others, the following:
to significant uncertainties and contingencies and may not prove to be correct. Therefore,
The Company’s ability to finance any of its proposed acquisitions; the Company’s ability to
actual results may differ materially from such financial information and such financial
close on any of its proposed acquisitions; the Company’s ability to successfully integrate and
information is subject to change.
achieve synergies and its objectives with respect to any of its proposed acquisitions; the
Company’s ability to successfully execute its business, financial and growth strategies; the
Company’s ability to successfully identify future acquisition targets, expand into additional
OTCQX:SHWZ | NEO:SHWZ 2
We are a Leading,
VERTICALLY INTEGRATED
Retail Operator Driving
BRAND DEVELOPMENT
with a REGIONAL Focus
3
AT A GLANCE
33 Dispensaries1
RETAIL #1 IN COLORADO
#2 IN NEW MEXICO
115K ft2 Indoor 7 Grows
HEADQUARTERS
CULTIVATION1 35 Acres Outdoor in CO & NM
60K ft2 Hoop Houses
Denver, Colorado
Operating in Colorado
13,000 ft2 manufacturing facilities
and New Mexico MANUFACTURING 1 in Colorado and 1 in New Mexico
OTCQX:SHWZ | NEO:SHWZ Note: 1 Includes all announced transactions 44
CANNABIS TODAY
Well positioned to
take advantage of a
hypergrowth industry
18 45%
States where of the U.S. Population
Cannabis is Living in Recreationally
Legal Recreationally 1 Legal States
18% 11%
ANNUAL MONTHLY
U.S. Cannabis Use Incidence
Note: 1 As of November 2021
OTCQX:SHWZ | NEO:SHWZ 5
THE STRATEGY
Our goal is to create value by becoming number 1 in the markets
we serve as premium retailers and memorable brands creators.
GO DEEP RUN DRIVE PRODUCT MEASURE
IN RETAIL LEAN BRANDS AND MANAGE
Diversified, focused, Allocate the right Market our products Meticulously collect
growing asset portfolio products at the right into premium brands, and analyze data for maximum
in Colorado and price to create and consolidate efficiency
New Mexico the Schwazze House
OTCQX:SHWZ | NEO:SHWZ 6
GOING DEEP WHAT IT IS & WHY IT MATTERS
Consumer Choice Geographic Coverage
Sales Volume Density
Stores Shelf Space
Source: BDSA
OTCQX:SHWZ | NEO:SHWZ 7
OUR HOUSE OF BRANDS
>30% market share 17 dispensaries
3 grows in CO & 4 in NM
COLORADO COLORADO COLORADO
& NEW MEXICO & NEW MEXICO
2 dispensaries in CO - more 10 dispensaries in NM - more
to be rebranded to be rebranded
COLORADO NEW MEXICO
8
NEW MEXICO
EXPECTED GROWTH 300%1 BY 2026
R. Greenleaf Dispensaries
Elemental Kitchen &
Laboratories, LLC
Medzen Services Inc.
MANUFACTURING RETAIL
1 Facility 10 Retail Locations
6K ft2 Manufacturing 26K+ ft2
26K+ ft2 of Cannabis Production
CULTIVATION 65K ft2 incremental being developed
Note: 1 BDSA estimates 300% growth by 2026
OTCQX:SHWZ | NEO:SHWZ 9
SUPER REGIONAL
FOOTPRINT SPRING 2020
SPRING 2022
COLORADO NEW MEXICO
Cannabis Retail Sales (2020) $2.2B Cannabis Retail Sales (2020)* ~$200M
12M Incidence (18+) ~27% 12M Incidence (18+) ~21%
Population 5.8M Population 2.1M
Increase Since 2010: 13% Increase Since 2010: 3%
* Transition to adult use by April 2022
OTCQX:SHWZ | NEO:SHWZ 10WHY BRANDS MATTER
Enterprise Value / 2022 Adjusted EBITDA (Consensus)
($ in billions)
SCHWAZZE BRANDED CPG PRIVATE LABEL
28.3x
27.0x
23.0x
21.2x
19.9x 19.3x 18.7x 18.4x
16.7x 16.0x 15.8x
14.5x 13.7x
12.0x 11.5x
9.5x 9.6x 9.
7.6x
Market
$0.3 $142 $33 $281 $96 $200 $119 $382 $239 $54 $93 $47 $43 $346 $116 $17 $3 $2 $
Cap
CY 2022 ADJ. EBITDA & MARGIN (CONSENSUS)
$0.1 $4.8 $1.3 $13.7 $4.7 $10.5 $6.8 $21.8 $15.0 $3.8 $7.0 $3.4 $3.7 $27.2 $18.7 $2.2 $0.2 $0.4 $0
27% 44% 33% 33% 24% 24% 35% 27% 18% 32% 21% 37% 20% 34% 34% 19% 11% 19% 8%
OTCQX:SHWZ | NEO:SHWZ Source: Company filings, FactSet as of 4/13/22
11BRAND BUILDING SUCCESS
3RD Party Success Story
BRAND 20% Improvement Jan – Dec 21
PROMOTION Product B Continues to be Dominant
45 %
41.93%
40%
Product A
3 5%
Declined
30.89% 31.15% 30.96%
29.64% 28.91% 29.31% 30.14%
% Improvement
3 0% 28.03% 27.97%
27.61%
29.40% 25.97% 25.41%
23.88% 24.46% 24.43%
25%
22.65%
21.32% 20.77% 20.84% 25.28% 24.98% 21.23%
19.41% 18.87%
20%
15.45%
15.01%
15 %
10 % Product B
Promoted
5%
0%
Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul -21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22
OTCQX:SHWZ | NEO:SHWZ 12BRAND BUILDING SUCCESS
10%
27%
27% of Category Sold
One time by Internal Brand
promotion
22%
% of Category Sold
20% 20%
20%
17%
17% 16%
13%
12% 11%
10%
7%
6/1/2021 7/1/2021 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 2/1/2022
OTCQX:SHWZ | NEO:SHWZ 13PURPLEBEE’S MANUFACTURING
PRODUCTION IMPROVEMENT
Manufacturing Impact Bulk Output
189%
Increase in Bulk
858.9
Output Since Apr. 2020
850.0 Acquisition
Acquisition
Total FG Produced (kg)
750.0 717.4
650.0 628.0
592.2
550.0 529.7
450.0
414.6
350.0
2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4
OTCQX:SHWZ | NEO:SHWZ 14MESA ORGANICS
OPERATING PLAYBOOK
Retail Impact – Gross Margin
370bps
56% 55.3% Improvement in
Acquisition Gross Margin Since
April 2020 Acquisition
54%
54.1%
52%
52.4%
Gross Margin
50% 50.5% 50.7%
48% 48.7%
46%
44%
2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4
GM %
OTCQX:SHWZ | NEO:SHWZ 15STARBUDS
OPERATING PLAYBOOK
490 bps
Retail Impact – Gross Margin
Acquisition
Increase in Gross
57% Margin Since Dec. 2020
56.0% Acquisition
56%
56.3% 56.3%
55%
55.3%
Gross Margin
54%
53%
52%
52.1%
51% 51.4%
50%
49%
48%
2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4
GM %
OTCQX:SHWZ | NEO:SHWZ 16COGS MANAGEMENT
OPERATING PLAYBOOK
2 %
5 9.0% Reduction 10 .0%
58.5%
in COGS 58.3%
9.0 %
5 8.0% 8.8%
8.0 %
5 7. 0%
56.8% Gross Margin as a % 56.8% 56.8%
7.0%
of Total COGS / Month
COGS Reductions
56.2% 56.2%
Gross Margin
6.0 %
5 6.0% 55.7%
55.6% 55.5%
55.5% 4.9%
4.7% 5 .0%
54.8%
5 5. 0%
4. 0%
5 4.0% 3 .0%
2.0% COGS Reductions as a %
1.5% 1.4% 1.6% of Total COGS / Month 2.0%
5 3. 0% 1.1%
0.7% 1. 0%
0.2% 0.2%
0.0%
5 2. 0% 0. 0%
3/1/2021 4/1/2021 5/1/2021 6/1/2021 7/1/2021 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 2/1/2022
GM% COGS Re duc tions as a % of Tota l COGS
OTCQX:SHWZ | NEO:SHWZ Note: *As a % of Total COGS for Participating Suppliers for FY’22 is YTD through February
17MANAGEMENT EXPERIENCE
JUSTIN DYE Nancy Huber Todd Williams Nirup Krishnamurthy Dan Pabon
Chief Executive Officer, Chief Financial Officer Senior Advisor, Strategy Chief Operating Officer General Counsel &
Chairman Government Relations
Led the growth of Albertsons 30+ years 25+ years 25+ years 15+ years
retail chain sales from experience managing public consulting, strategy, asset experience in innovation, expertise in merging
enterprises, overseeing valuation and M&A experience technology, restructuring and regulatory systems, legal
~$10B to ~$60B
multifunctional management M&A in Fortune 500 companies research & legislative relations
At Albertsons, managed the
with over
acquisition of over
2,300 & 285,000
CFO of Forward Foods, C-suite roles at United Experienced former Colorado
oversaw improvements in
revenue, margins and
1,600 Airlines, Northern Trust
Bank, A&P Supermarkets
State Representative,
stores employees operating grocery stores with instrumental in the writing
EBITDA and passing of cannabis laws
creating one of the largest
privately held companies in
~$40B & $10B in Colorado
in sales transaction
the U.S. value
Responsible for divesting 168
stores with over $3B in sales
OTCQX:SHWZ | NEO:SHWZ 18MAKING A DIFFERENCE
Operational Excellence
ENVIRONMENT QUALITY
We understand that diversity
and engagement make a better
and more enriched Company
We are dedicated to making
a difference in the communities
and neighborhoods in which we
SOCIAL GOVERNANCE
operate and serve
We listen to our customers’ needs
and wants and make intelligent,
data-driven decisions
We thrive in a team-oriented culture
OTCQX:SHWZ | NEO:SHWZ 19CURRENT CAPITAL STRUCTURE
$2.09
$ MILLIONS CURRENT Stock Price
03/31/22
Common Shares Outstanding 53.5 (2)
Total Preferred Shares
80.1
(“As-Converted” to Common) (3) AVG.
2121 MULTIPLE ANALYSTS MULTIPLES
Net Warrants/Options(1) 4.6
2022
Fully diluted Shares Outstanding 138.2
Enterprise Value
$108 3.8X $180.7 2.3X
Star Buds Seller notes $44.3 / Sales
Altmore note $15.0
RGA Seller note $17.0 Enterprise Value
$32 12.8X $53.9 7.6X
Convertible Debt $98.1 / EBITDA (5)
Total Debt $174.4 Total Debt /
5.4X 3.2X
EBITDA (5)
Cash Estimate(4) $52
Net Debt /
Net Debt $122.6 3.8X 2.3X
EBITDA (5)
Market Capitalization $288.8
Enterprise Value $411.4
Source: Company filings, FactSet as of 12/2/21 senior secured convertible notes;
Notes: 1 Inclusive of net in-the-money options and warrants; 4 Based on 12/31/21 cash less marketable securities balance less cash used for Drift,
2 Includes shares issued or issuable in Drift, Smoking Gun and Emerald Fields Brow, Smoking Gun, Emerald Fields and RGA acquisitions and applicable fees;
acquisitions; 5 See footnote on page 19 regarding Adjusted EBITDA
OTCQX:SHWZ | NEO:SHWZ 3 Assumes outstanding preferred stock converted to common stock at $1.20 per share
20
for purposes of calculating equity value; includes accrued dividends through 3/31/22;
does not include shares of common stock issuable upon potential conversion of newPEER COMPARISON
Rising Industry Leader
Trading at a Discount
Enterprise Value / 2022 Adjusted EBITDA (Consensus)
($ in millions)
SCHWAZZE TOP 5 MSOs REGIONAL MSOs
22.3x
19.6x
14.9x
13.2x
11.3x
9.6x 9.4x
8.2x 8.7x 8.2x
7.6x 7.6x
6.6x 6.6x
Market
$256 $4,985 $3,943 $3,477 $3,427 $2,767 $749 $501 $446 $640 $1,326 $1,616 $899 $163
Cap
CY 2022 ADJ. EBITDA & MARGIN (CONSENSUS)
$54
$49 $401 $355 $434 $475 $505 $42 $24 $40 $106 $182 $216 $170 $42
27%
30% 28% 33% 27% 35% 42% 13% 17% 24% 25% 27% 28% 29% 16%
Source: Company filings, FactSet as of 4/13/22
OTCQX:SHWZ | NEO:SHWZ Note: Peer set pro forma for all significant M&A
21Q4 & FY PERFORMANCE
Selected Highlights for the Quarter & FY Ended December 31, 2021
$ in Millions
Revenues F Y 2021 F Y 2020 Q4 2021 Q4 2020
Retail $73.7 $3.9 $19.6 $2.0
Wholesale $34.5 $18.6 $6.8 $5.7
Other $0.2 $1.5 $0.1 $0.2
Total Revenues $108.4 $24.0 $26.5 $7.9
Cost of Goods & Services $59.1 $17.2 $14.4 $7.4
Gross Profit $49.4 $6.8 $12.1 $0.61
Gross Profit Margin (%) 45.5% 28.2% 45.8% 7.8%
Adjusted EBITDA $32.2 ($7.6) $7.5 ($3.4)
EBITDA Margin (%) 29.7% (31.7%) 28.3% (42.6%)
OTCQX:SHWZ | NEO:SHWZ Note: Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non-recurring items, other non-cash items, including stock-based
compensation expense, depreciation, and amortization, and further adjusted to remove acquisition related costs, and other one-time expenses, such as severance. The Company 22
uses Adjusted EBITDA as it believes it better explains the results of its core business. See Appendix for reconciliation.REVENUE/EBITDA HISTORICAL
2019 to 2022 Financials
$200,000
67%
Y-o-Y
growth
352%
Y-o-Y
growth 50.5%
94% 48.3%
Y-o-Y 29.8%
growth
30.7%
29.7%
$0 2019 2020 (31.7%) 2021 2022 Analyst Consensus
Revenue Gross Margin Adjusted EBITDA
OTCQX:SHWZ | NEO:SHWZ 23We are committed to UNLOCKING THE
FULL POTENTIAL of the cannabis plant to
IMPROVE the HUMAN CONDITION.
Justin Dye
Chief Executive Officer
24CORPORATE OFFICE CONTACT
Schwazze Joanne Jobin, Investor Relations
4880 Havana St., Ste 201 T 647 964 0292
Denver, CO 80239 E ir@Schwazze.com
OTCQX & NEO SHWZ T 303-371-0387 W Schwazze.com
25APPENDIX
26MANAGEMENT EXPERIENCE
Justin Dye Chief Executive Officer & Chairman, Director Nancy Huber Chief Financial Officer
25+ years of experience in private equity, general management, operations, Successful track record with 30+ years of experience managing public
corporate finance and M&A. He led the growth of Albertsons from ~$10Bn to enterprises and overseeing multifunctional management. As CFO of
over ~$60Bn in sales with over 2,300 stores and 285,000 employees, creating one Forward Foods, she oversaw improvements in revenue, margins and
of the largest privately held companies in the U.S. EBITDA. Nancy received her MBA from Kellogg School of Management.
Nirup Krishnamurthy Chief Operating Officer, Director Jim Parco President, Biosciences
Dye Capital Partner carrying 25+ years of experience in innovation, In 2014, Jim Parco founded Mesa Organics (Purplebee’s) which is the
technology, restructuring and M&A in Fortune 500 companies, holding leading Colorado extractor and manufacturer of cannabis products. Prior to
executive roles at United Airlines, Northern Trust Bank and A&P that, Jim served two decades of active duty in the Air Force and was a
Supermarkets. Nirup holds a PhD in Industrial Engineering from SUNY. tenured full professor of economics and business for nine years at Colorado
College. Jim holds his PhD from University of Arizona.
Dan Pabon General Counsel and Government Relations
Experienced former Colorado State Representative who was instrumental in Todd Williams Senior Advisor, Strategy
the writing and passing of cannabis laws in Colorado. Dan has 15+ years of 24 years of consulting, strategy, asset valuation and M&A experience. In
expertise in emerging regulatory systems, legal research and legislative his most recent role at Albertsons, he managed the acquisition of over
relations. 1,600 operating grocery stores with ~$40Bn in sales and $10Bn in
transaction value and was also responsible for divesting 168 stores with
Julie Suntrup VP Marketing & Merchandising over $3Bn in sales.
With 20+ years of regulatory and CPG experience, Julie has introduced and
Collin Lodge VP Retail Operations
marketed brands across: cannabis, alcohol, functional beverage, food, retail, 10+ years experience in Retail Operations, M&A, and Integration from
QSR, natural/personal care and pharma sectors. She has represented brands Albertsons Companies. As a skilled negotiator, Collin excels at expanding
such as: LivWell Enlightened Health, CDPHE, Anheuser-Busch, Budweiser, eCommerce, launching subscription services and last mile delivery, while
Coca-Cola, Vitaminwater/Smartwater, QuikTrip, Electrolux, Kellogg, Colgate establishing mutually beneficial strategic partnerships.
and Tom’s of Maine.
OTCQX:SHWZ | NEO:SHWZ 27BOARD OF DIRECTORS
Pratap Mukharji
Mr. Mukharji is a retired consultant working over 30 years in management consulting, the Salim Wahdan
majority with Bain & Company leading its Supply Chain and Service Operations practices. Salim Wahdan has close to two decades of entrepreneurial experience owning and operating
With a concentration in Industrials and Retail, Mukharji has led strategy; M&A; retail businesses. Most recently, he was a partner and operator of Star Buds in Adams,
transformation and turnaround; operations improvement; due diligence, omnichannel; and Louisville, and Westminster, several of the Star Buds’ branded dispensaries the Company
e-commerce efforts across multiple industries. Prior to Bain, he was at Kearney and Booz- purchased between December 2020 and March 2021. Mr. Wahdan was instrumental in the
Allen & Hamilton. early growth of the Star Buds franchise. Previous to his time in the cannabis industry, he
owned and operated various retail concepts in Colorado.
Jeff Garwood
Jeff Garwood founded and is managing member of Liberation Capital, a private equity fund
focused on providing modular, repeatable waste to value project finance. He is also the co- Jeff Cozad
owner of Zysense, an entity providing high precision measurement instruments for research. Jeff Cozad is the co-founder of CRW Cann Holdings, LLC – a special purpose vehicle created to
Jeff previously held senior leadership positions with General Electric, Garrett Aviation, and support Schwazze’s vision of becoming the dominant, vertically integrated player in the
McKinsey and Company. Colorado cannabis market. He is also the Managing Partner of his family office, Cozad
Investments, LP, which has completed more than 20 investments across a disparate set of
industries over the past 13 years. Mr. Cozad holds an MBA from The University of Chicago
Brian Ruden
Booth School of Business and received a BA in Economics and Management from DePauw
Since 2010, Brian Ruden has owned and operated cannabis businesses under the Star Buds
University, where he serves on the Board of Trustees and is Chairman of the University
brand. Under his leadership, Star Buds has become one of the most recognized and
Endowment Fund Investment Committee.
successful retail cannabis operations in North America. In 2014, Brian founded Star Buds
Consulting which provides strategic advice to start-up cannabis operations.
Jonathan Berger
Jonathan Berger is the retired CEO of Great Lakes Dredge & Dock, Inc. (GLDD nasdaq). In
Paul J. Maltalbano addition to having been a director of GLDD he was also a director of Boise Paper, Inc. a New
Paul J. Montalbano, MD is a private practicing neurosurgeon in Boise, Idaho. His background York Stock Exchange listed company where he previously served as both chair of the audit
includes over 30 years in healthcare, developing two highly successful multidisciplinary programs in and compensation committees. Berger is currently a director of Alloy - a privately held
the nonprofit and for profit sector. Serving on the governing and financial boards the for profit specialty environmental contractor and Partner with Genesis Business Humanity, a boutique
hospital has increased revenue from 8 to 64 million dollars in EBIDTA. He has led the most advisory firm helping bring Israeli tech companies to the US. He is a former partner in KPMG,
profitable and busiest neurosurgical program at Neuroscience Associates for the last 22 years. He the international accounting and consulting firm where he ran their corporate finance
received his bachelor's degree in biology from Loyola University of Chicago, medical degree from practice unit on a national level. Previously, Berger held a CPA license and securities licenses
Northwestern University Feinberg School of Medicine and completed his neurosurgical training in 7, 24, 63. He received a BS in Human Development from Cornell University and an MBA from
complex spinal reconstruction and brain surgery at the University of South Florida. Emory University.
OTCQX:SHWZ | NEO:SHWZ 28THE SCHWAZZE VERTICAL PLATFORM
32 LOCATIONS(1) WITH ~86K RETAIL ft2 CULTIVATION
Deploying grocery retail playbook to Improved yields from Success
cannabis dispensaries Nutrients and Three-A-Light
Customer focused retail strategy methodology
Strong local ties & tailored Acquisition of Southern Colorado
merchandising Growers (500 lbs. / month + additional
Partnering with 3rd party brands 34 acres of outdoor cultivation
CULTIVATION capacity)
for in-store marketing
Benefits of scale and RETAIL Expected to pull down ~11k lbs. in Q4
purchasing power with outdoor harvest and new hoop
houses
2 FACILITIES WITH LAUNCHED MAY 2021
13K ft2 MANUFACTURING(3) CANNABINOID AND TERPENE
RESEARCH
Brand building expertise combined
with state-of-the-art capabilities for R&D Basic and applied research focused on
derivative production SCHWAZZE bringing consumers and pets the most
MANUFACTURING BIOSCIENCES
Provides opportunity for wholesale beneficial properties of the cannabis
and private label growth, plus margin plant
expansion Cannabinoid and terpene research
Currently producing ~25% of Colorado’s
wholesale distillate
Acquisition of Medzen (as part of RGA)
OTCQX:SHWZ | NEO:SHWZ Note: 1 Includes all announced transactions
29ADJUSTED EBIDTA RECONCILIATION
Quarter Ended December 31 Year Ended December 31
$ in Millions 2021 2020 2021 2020
Operating Income (loss) $12.8 $(8.5) $14.5 $(19.4)
Addbacks:
Interest income (expense), net $2.5 $0.09 $7.1 $0.04
Provision for income taxes (benefit) $2.4 ($0.9) $4.4 ($1.0)
Other (income) expense ($14.1) $0.5 ($15.5) ($2.6)
Depreciation & amortization $0.7 $0.2 $8.6 $0.5
Earnings before interest, taxes, depreciation &
$4.4 $(8.7) $19.0 $(22.4)
amortization (EBITDA) (non-GAAP measure)
Non-cash stock compensation $1.2 $2.4 $5.0 $8.2
Deal related expenses $0.7 $0.8 $2.8 $3.7
Capital raise related expenses $0.3 $0.7 $1.5 $1.3
Severance $0.05 $0.7 $0.2 $1.0
Retention program expenses $0.1 - $0.1 -
Employee relocation expenses $0.02 ($0.06) $0.04 $0.3
Other non-recurring items $0.9 $0.5 $3.6 $0.5
Adjusted EBITDA (non-GAAP measure) $7.5 $(3.4) $32.2 $(7.6)
Source: Company filings
Source: Company filings: 10K
Note: 12/31/21EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non-recurring items,
Adjusted
Note: Adjusted EBITDA represents income
other non-cash (loss)
items, from operations,
including as reported,
stock-based before expense,
compensation tax, adjusted to excludeand
depreciation, non-recurring items,
amortization, and other non-cash
further adjusteditems,
to including
stock-based compensation expense, depreciation, and amortization, and further adjusted to remove acquisition related costs, and other one-time expenses,
OTCQX:SHWZ | NEO:SHWZ remove acquisition related costs, and other one-time expenses, such as severance. The Company uses Adjusted EBITDA as it
such as severance. The Company uses Adjusted EBITDA as it believes it better explains the results of its core business. 30
believes it better explains the results of its core business.You can also read
