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GAAP to Non-GAAP Reconciliation
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1) Includes depreciation and amortization on our Generation portfolio of $6.9 million and $28.2 million for the three months and year ended October 31, 2024, respectively, and $5.4 million and $20.3 million for the three months and year ended October 31, 2023, respectively. Other (income)
expense, net includes gains and losses from transactions denominated in foreign currencies, interest rate swap income earned from investments and other items incurred periodically, which are not the result of the normal business operations.
2) Other (income) expense, net includes gains and losses from transactions denominated in foreign currencies, interest rate swap income earned from investments and other items incurred periodically, which are not the result of the normal business operations.
3) The Company recorded a mark-to-market net loss of $1.8 million and $6.9 million for the three months and year ended October 31, 2024, respectively, related to natural gas purchase contracts, and $4.1 million for the three months and year ended October 31, 2023, as a result of net
settling certain natural gas purchases under previous normal purchase normal sale contract designations, which resulted in a change to mark-to-market accounting. These losses are classified as Generation cost of sales.
4) The gain on extinguishment of finance obligations and debt, net was $15.3 million for the year ended October 31, 2023 and represents a one-time gain on the payoff of the PNC finance obligations in conjunction with a new project financing facility entered into in May 2023.
The following table calculates EBITDA and Adjusted EBITDA and reconciles these figures to the GAAP financial statement
measure Net loss
Financial results are presented in accordance with accounting principles generally accepted in the United States . Management also uses non-GAAP measures to analyze and make operating decisions on the business. Earnings before interest, taxes, depreciation and
amortization and Adjusted EBITDA are non-GAAP measures of operations and operating performance by the Company.
These supplemental non-GAAP measures are provided to assist readers in assessing operating performance. Management believes EBITDA and Adjusted EBITDA are useful in assessing performance and highlighting trends on an overall basis. Management also believes these measures
are used by companies in the fuel cell sector and by securities analysts and investors when comparing the results of the Company with those of other companies. EBITDA differs from the most comparable GAAP measure, net loss attributable to the Company, primarily because it does
not include finance expense, income taxes and depreciation of property, plant and equipment and project assets. Adjusted EBITDA adjusts EBITDA for stock-based compensation, restructuring charges, non-cash (gain) loss on derivative instruments and other unusual items, which are
considered either non-cash or non-recurring.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these measures. The measures are not prepared in accordance with GAAP and may not be directly comparable to
similarly titled measures of other companies due to potential differences in the exact method of calculation. The non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in
conjunction with the consolidated financial statements prepared in accordance with GAAP.
Three Months Ended October 31, Year Ended October 31,
(Amounts in thousands) 2024 2023 2024 2023
Net loss $ (39,600) $ (29,458) $ (156,778) $ (108,056)
Depreciation and amortization (1) 8,782 6,716 36,171 25,375
Provision for income taxes 23 - 25 581
Other (income) expense, net (2) (983) (4,508) 2,295 (4,724)
Gain on extinguishment of finance obligations and debt, net(4) - - - (15,337)
Interest income (2,994) (4,731) (13,720) (15,795)
Interest expense 2,522 2,321 9,690 7,247
EBITDA $ (32,250) $ (29,660) $ (122,317) $ (110,709)
Stock-based compensation expense 2,537 2,957 11,764 11,954
Unrealized loss (gain) on natural gas contract derivative assets (3) 1,808 (4,127) 6,880 (4,127)
Restructuring 2,562 - 2,562 -
Adjusted EBITDA $ (25,343) $ (30,830) $ (101,111) $ (102,882) |
