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Press Release: Post Holdings Reports Results for -8-

· 02/04/2021 17:00
Three Months Ended December 31, 2020 2019 -------------- ---------- Net Loss $ (1.4) $ (0.9) Interest expense, net 9.0 10.7 Income tax benefit (0.2) (0.2) Depreciation and amortization 13.2 12.5 Integration costs 0.3 0.2 Non-cash stock-based compensation 0.3 0.1 Transaction costs -- 0.3 Sale-leaseback costs -- 0.7 Advisory costs 0.4 0.3 ---------- ------ Adjusted EBITDA $ 21.6 $ 23.7 ====== ===== Adjusted EBITDA as a percentage of Net Sales 9.4% 10.9% ========== ======a. Transaction, integration and sale-leaseback costs: Post has excluded transaction costs related to professional service fees and other related costs associated with (i) signed and closed business combinations, (ii) a sale-leaseback transaction, (iii) the separate capitalization of 8th Avenue and (iv) integration costs incurred to integrate the component business units that comprise the combined 8th Avenue organization. Post believes that these exclusions allow for more meaningful evaluation of 8th Avenue's current operating performance and comparisons of 8th Avenue's operating performance to other periods. Post believes such costs are generally not relevant to assessing or estimating the long-term performance of 8th Avenue's assets or acquired assets as part of 8th Avenue, and such costs are not factored into 8th Avenue management's evaluation of its performance, its evaluation of potential acquisitions or its performance after completion of an acquisition. In addition, the frequency and amount of such charges varies significantly based on the size and timing of the acquisitions and the maturity of the businesses being acquired. Also, the size, complexity and/or volume of past acquisitions, which often drive the magnitude of such expenses, may not be indicative of the size, complexity and/or volume of future acquisitions. By excluding these expenses, 8th Avenue management is better able to evaluate 8th Avenue's ability to utilize its existing assets and estimate the long-term value that its assets will generate for 8th Avenue. Furthermore, Post believes that the adjustments of these items more closely correlate with the sustainability of 8th Avenue's operating performance. b. Non-cash stock-based compensation: 8th Avenue's compensation strategy includes the use of stock-based compensation to attract and retain executives and employees by aligning their long-term compensation interests with shareholders' investment interests. Post has excluded non-cash stock-based compensation as non-cash stock-based compensation can vary significantly based on reasons such as the timing, size and nature of the awards granted and subjective assumptions which are unrelated to operational decisions and performance in any particular period and do not contribute to meaningful comparisons of 8th Avenue's operating performance to other periods. c. Advisory costs: Post has excluded advisory costs payable by 8th Avenue to Post and a third party as Post believes such costs do not contribute to a meaningful evaluation of 8th Avenue's current operating performance or comparisons of 8th Avenue's operating performance to other periods.Three Months Ended December 31, ------------------------ 2020 2019 ------------ ---------- Net Sales $ 229.0 $ 218.4 Gross Profit $ 35.4 $ 38.4 Net Loss $ (1.4) $ (0.9) Less: Preferred Stock Dividend 8.8 7.8 ----------- ------- Net Loss Available to 8th Avenue Common Shareholders $ (10.2) $ (8.7) ======= ======costs -- -- -- -- 1.5 3.4 4.9 Integration costs 1.2 -- -- 0.4 -- -- 1.6 Advisory income -- -- -- -- -- (0.2) (0.2) Adjusted EBITDA $109.7 $ 31.9 $ 75.3 $ 43.8 $ 58.6 $ (16.2) $303.1 ===== ==== ===== ==== ===== ===== ==== ====== ===== Adjusted EBITDA as a percentage of Net Sales 24.9% 31.4% 17.9% 17.5% 24.0% -- 20.8% ====== ======== ========= === ========= ==== ======== ========== ======

SELECTED FINANCIAL INFORMATION FOR 8TH AVENUE (Unaudited)

(in millions)

EXPLANATION AND RECONCILIATION OF 8TH AVENUE'S NON-GAAP MEASURE

Post believes that Adjusted EBITDA is useful to investors in evaluating 8th Avenue's operating performance and liquidity because (i) Post believes it is widely used to measure a company's operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, (ii) it presents a measure of corporate performance exclusive of 8th Avenue's capital structure and the method by which the assets were acquired and (iii) it is a financial indicator of a company's ability to service its debt. Management uses 8th Avenue's Adjusted EBITDA to provide forward-looking guidance and to forecast future results.

8th Avenue's Adjusted EBITDA reflects adjustments for interest expense, net, income tax expense/benefit and depreciation and amortization, and the following adjustments:

RECONCILIATION OF 8TH AVENUE'S NET LOSS TO 8TH AVENUE'S ADJUSTED EBITDA (Unaudited)

(in millions)

(END) Dow Jones Newswires

February 04, 2021 17:00 ET (22:00 GMT)