EROAD (NZX: ERD ASX: ERD)

FY23 RECONCILIATION OF GAAP AND NON-GAAP MEASURES

2023

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

  • EBITDA is a non-GAAP measure representing Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA).

EBITDA

($m)

31-Mar-2023

31-Mar-2022, restated

Total comprehensive loss for the period

(0.3)

(9.9)

Add back:

Items that are or may be reclassified subsequent to profit or loss

Income tax benefit

Net financing costs

Depreciation of property, plant and equipment

Amortisation of intangible assets

Amortisation of contract and customer acquisition assets

Earnings before interest, taxation, depreciation, and amortisation (EBITDA)

2.7

(0.3)

2.1

0.8

(6.8)

(3.2)

(17.2)

(10.4)

(17.9)

(11.0)

(8.4)

(6.8)

45.2

21.0

PAGE 2

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

  • Free cash flow is a non-GAAP measure representing operating cash flow and investingcash flow reported in the Statement of Cash Flows. For the purposes of this presentation, payments for the acquisition of Coretex have been excluded

Free cash flow

($m)

31-Mar-2023

31-Mar-2022, restated

Cash flows from operating activities

Cash received from customers

165.2

109.4

Payments to suppliers and employees

(128.9)

(92.2)

Payments for contract fulfilment assets

(7.6)

(5.7)

Interest received

0.3

0.1

Interest paid

(4.9)

(2.9)

Income taxes paid

-

(0.1)

Net cash inflow from operating activities

24.1

8.6

Payments for investment in property, plant and equipment

Payments for investment in intangible assets

Payments for investment in contract fulfilment assets

Payments for investment in costs to obtain contracts

Payments for investment in subsidiary (including contingent consideration), net of cash acquired

(27.5)

(28.4)

(28.2)

(24.9)

-

-

(2.9)

(3.2)

(8.5)

(72.4)

Net cash outflow from investing activities

(67.1)

(128.9)

Deduct:

Coretex acquisition payments

(8.5)

(72.4)

Free cash flow

(34.5)

(47.9)

PAGE 3

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

  • Free cash flow to the firm is a non-GAAP measure representing operating cash flow and investingcash flow net of interest paid and received. For the purposes of this presentation, payments for the acquisition of Coretex have been excluded

Free cash flow to the firm

($m)

31-Mar-2023

31-Mar-2022, restated

Cash flows from operating activities

Cash received from customers

165.2

109.4

Payments to suppliers and employees

(128.9)

(92.2)

Payments for contract fulfilment assets

(7.6)

(5.7)

Interest received

0.3

0.1

Interest paid

(4.9)

(2.9)

Income taxes paid

-

(0.1)

Net cash inflow from operating activities

24.1

8.6

Payments for investment in property, plant and equipment

Payments for investment in intangible assets

Payments for investment in contract fulfilment assets

Payments for investment in costs to obtain contracts

Payments for investment in subsidiary (including contingent consideration), net of cash acquired

(27.5)

(28.4)

(28.2)

(24.9)

-

-

(2.9)

(3.2)

(8.5)

(72.4)

Net cash outflow from investing activities

(67.1)

(128.9)

Deduct:

Interest received

0.3

0.1

Interest paid

(4.9)

(2.9)

Coretex acquisition payments

(8.5)

(72.4)

Free cash flow to the firm

(29.9)

(45.1)

PAGE 4

RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION

• FY23 EBIT is normalized for;

• a one-off acquisition accounting

adjustment of $9.6m relating to the

Coretex merger, and

• non-recurring integration costs of $3.4m

relating to the Coretex merger

• FY22 EBIT is normalized for a

Normalised EBIT

($m)

31-Mar-2023

31-Mar-2022, restated

Revenue

174.9

114.9

Operating expenses

(129.7)

(93.9)

Earnings before interest, taxation, depreciation and

45.2

21.0

amortisation (EBITDA)

•

one-off acquisition accounting adjustment

of $1.3m relating to the Coretex merger,

•

non-recurring integration costs of $4.0m

relating to the Coretex merger,

Depreciation of property, plant, and equipment

Amortisation of intangible assets

Amortisation of contract and customer acquisition assets

(17.2)(10.4)

(17.9)(11.0)

(8.4)(6.8)

•

non-recurring due diligence costs of $2.0m

relating to the Coretex merger, and

•

non-recurring transaction costs of $1.6m

relating to the Coretex merger.

Earnings/(loss) before interest and taxation (EBIT)

1.7

(7.2)

Deduct:

Acquisition accounting revenue(9.6)(1.3) Add back:

Integration costs

3.4

4.0

Due diligence costs

-

2.0

Transaction costs

-

1.6

Normalised EBIT

(4.5)

(0.9)

PAGE 5

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EROAD Limited published this content on 04 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 September 2023 20:45:05 UTC.