Array Technologies, Inc. Reports Financial Results for the Second Quarter 2023 – Strong execution delivers revenue of $507.7 million and record gross margin of 29.6%
- Strong Q2 2023 results with revenue of $507.7 million and net income of $52.0 million
- Executed contracts and awarded orders at $1.7 billion
- Anticipated revenue for 2023 negatively impacted due to pushouts and permitting issues
Second Quarter 2023 Highlights
- Revenue of
$507.7 million - Net income to common shareholders of
$52.0 million - Adjusted EBITDA(1) of
$115.6 million - Basic and diluted net income per share of
$0.34 - Adjusted diluted net income per share(1) of
$0.47 - Executed contracts and awarded orders at June 30, 2023 totaling
$1.7 billion
(1) A reconciliation of the most comparable GAAP measure to its Non-GAAP measure is included below.
ALBUQUERQUE, N.M., Aug. 08, 2023 (GLOBE NEWSWIRE) -- Array Technologies (NASDAQ: ARRY) (“Array” or “the Company”), a leading provider of tracker solutions and services for utility-scale solar energy projects, today announced financial results for its second quarter ended June 30, 2023.
“Array delivered another strong performance in the second quarter as we exceeded expectations across the board. Revenue grew
Mr. Hostetler continued, “We also saw a meaningful increase in our sequential bookings, winning approximately
Mr. Hostetler concluded, “While we are disappointed in the progression of the elements we cannot control, we steadfastly remain focused on the execution of our strategy. That includes delivering a strong 2023 while positioning ourselves for success as the industry moves into its next phase of growth. We will enter 2024 with strong bookings momentum, a much-improved balance sheet, a multi-product offering enabling us to expand our target market while delivering industry-leading gross margin, and a stronger operating system that will continue to improve shareholder returns.”
Second Quarter 2023 Financial Results
Revenue increased
Gross profit increased
Operating expenses increased to
Net income to common stockholders was
Adjusted EBITDA increased to
Adjusted net income was
Executed Contracts and Awarded Orders
Total executed contracts and awarded orders at June 30, 2023 were
Full Year 2023 Guidance
For the year ending December 31, 2023, the company expects:
- Revenue to be in the range of
$1,650 million to$1,725 million - Adjusted EBITDA(2) to be in the range of
$280 million to$295 million - Adjusted net income per share(2) to be in the range of
$1.00 t o$1.07
(2) A reconciliation of projected adjusted EBITDA and adjusted net income per share, which are forward-looking measures that are not prepared in accordance with GAAP, to the most directly comparable GAAP financial measures, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, revaluation of the fair-value of our contingent consideration, and the tax effect of such items, in addition to other items we have historically excluded from adjusted EBITDA and adjusted net income per share. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments are inherently unpredictable as to if or when they may occur. As such, for our 2023 outlook, we have not included estimates for these items and are unable to address the probable significance of the unavailable information, which could be material to future results.
Conference Call Information
Array management will host a conference call today at 5:00 p.m. Eastern Time to discuss the Company’s financial results.
The conference call can be accessed live over the phone by dialing (877)-451-6152 (domestic) or (201)-389-0879 (international). A telephonic replay will be available approximately three hours after the call by dialing (844)-512-2921, or for international callers, (412)-317-6671. The passcode for the live call and the replay is 13739433. The replay will be available until 11:59 p.m. (ET) on August 22, 2023.
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at http://ir.arraytechinc.com. The online replay will be available for 30 days on the same website immediately following the call.
To learn more about Array Technologies, please visit the company's website at http://ir.arraytechinc.com.
About Array Technologies, Inc.
Array Technologies (NASDAQ: ARRY) is a leading American company and global provider of utility-scale solar tracker technology. Engineered to withstand the harshest conditions on the planet, Array’s high-quality solar trackers and sophisticated software maximize energy production, accelerating the adoption of cost-effective and sustainable energy. Founded and headquartered in the United States, Array relies on its diversified global supply chain and customer-centric approach to deliver, commission and support solar energy developments around the world, lighting the way to a brighter, smarter future for clean energy. For more news and information on Array, please visit arraytechinc.com.
Investor Relations Contact:
Array Technologies, Inc.
Investor Relations
505-437-0010
investors@arraytechinc.com
Forward-Looking Statements
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our projected future results of operations, business strategies, and industry and regulatory environment. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” "seek," “should,” “will,” “would” or similar expressions and the negatives of those terms.
Array’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: changes in the demand for solar energy projects; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; failure to retain key personnel or failure to attract additional qualified personnel; defects or performance problems in our products that could result in loss of customers, reputational damage, a loss of revenue, and warranty, indemnity and product liability claims; a drop in the price of electricity derived from the utility grid or from alternative energy sources; challenges in our ability to consolidate the financial reporting of our acquired foreign subsidiaries; delays, disruptions or quality control problems in our product development operations; the effects of a further increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system and could reduce the demand for our products; changes to tax laws and regulations that are applied adversely to us or our customers; existing electric utility industry policies and regulations, and any subsequent changes, that may present technical, regulatory and economic barriers to the purchase and use of solar energy systems; the interruption of the flow of materials from international vendors, including as a result of the imposition of additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the imposition of import tariffs; economic, political and market conditions, including the Russian-Ukraine conflict, uncertain credit and global financial markets resulting from increasing inflation and interest rates along with recent bank failures, and the COVID-19 pandemic; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy and solar energy specifically; our ability to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary rights; significant changes in the costs of raw materials; the implementation of the IRA may not deliver as much growth as we are anticipating; our ability to remediate our material weaknesses on a timely basis or at all; the effect of our substantial indebtedness on our financial condition; the occurrence of cybersecurity incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information; and the other risks and uncertainties described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC, each of which can be found on our website www.arraytechinc.com.
Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Non-GAAP Financial Information
This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share. We define Adjusted EBITDA as net income (loss) plus (i) other (income) expense, (ii) foreign currency (gain) loss, (iii) preferred dividends and accretion, (iv) interest expense, (v) income tax (benefit) expense, (vi) depreciation expense, (vii) amortization of intangibles, (viii) equity-based compensation, (ix) change in fair value of derivative assets, (x) change in fair value of contingent consideration, (xi) certain legal expense, (xii) certain acquisition costs, and (xiii) other costs. We define Adjusted Net Income as net income (loss) plus (i) amortization of intangibles, (ii) amortization of debt discount and issuance costs (iii) preferred accretion, (iv) equity-based compensation, (v) change in fair value of derivative assets, (vi) change in fair value of contingent consideration, (vii) certain legal expense, (viii) certain acquisition related costs, (ix) other costs, and (x) income tax (expense) benefit of adjustments. A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included within this presentation. We calculate net income (loss) per share as net income (loss) to common shareholders divided by the basic and diluted weighted average number of shares outstanding for the applicable period and we define Adjusted Net Income per share as Adjusted Net Income (as detailed above) divided by the basic and diluted weighted average number of shares outstanding for the applicable period.
We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies.
Among other limitations, Adjusted EBITDA and Adjusted Net Income do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted EBITDA and Adjusted Net Income differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted EBITDA and Adjusted Net Income should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA and Adjusted Net Income on a supplemental basis. You should review the reconciliation of net income (loss) to Adjusted EBITDA and Adjusted Net Income below and not rely on any single financial measure to evaluate our business.
Array Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
(in thousands, except per share and share amounts)
| June 30, 2023 | December 31, 2022 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 155,966 | $ | 133,901 | |||
| Accounts receivable, net of allowance of | 502,363 | 421,183 | |||||
| Inventories | 206,857 | 233,159 | |||||
| Income tax receivables | 312 | 3,532 | |||||
| Prepaid expenses and other | 42,740 | 39,434 | |||||
| Total current assets | 908,238 | 831,209 | |||||
| Property, plant and equipment, net | 30,674 | 23,174 | |||||
| Goodwill | 441,255 | 416,184 | |||||
| Other intangible assets, net | 375,527 | 386,364 | |||||
| Deferred income tax assets | — | 16,466 | |||||
| Derivative assets | 64,014 | — | |||||
| Other assets | 33,076 | 32,655 | |||||
| Total assets | $ | 1,852,784 | $ | 1,706,052 | |||
| LIABILITIES, REDEEMABLE PERPETUAL PREFERRED STOCK AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 188,633 | $ | 170,430 | |||
| Accrued expenses and other | 61,156 | 54,895 | |||||
| Accrued warranty reserve | 1,540 | 3,690 | |||||
| Income tax payable | 16,711 | 6,881 | |||||
| Deferred revenue | 114,810 | 178,922 | |||||
| Current portion of contingent consideration | 1,809 | 1,200 | |||||
| Current portion of debt | 37,450 | 38,691 | |||||
| Other current liabilities | 12,844 | 10,553 | |||||
| Total current liabilities | 434,953 | 465,262 | |||||
| Deferred income tax liabilities | 74,902 | 72,606 | |||||
| Contingent consideration, net of current portion | 7,620 | 7,387 | |||||
| Other long-term liabilities | 16,117 | 14,808 | |||||
| Long-term warranty | 4,415 | 1,786 | |||||
| Long-term debt, net of current portion | 702,485 | 720,352 | |||||
| Total liabilities | 1,240,492 | 1,282,201 | |||||
| Commitments and contingencies (Note 11) | |||||||
| Series A Redeemable Perpetual Preferred Stock of | 324,838 | 299,570 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock of | — | — | |||||
| Common stock of | 151 | 150 | |||||
| Additional paid-in capital | 417,624 | 383,176 | |||||
| Accumulated deficit | (176,530 | ) | (267,470 | ) | |||
| Accumulated other comprehensive income | 46,209 | 8,425 | |||||
| Total stockholders’ equity | 287,454 | 124,281 | |||||
| Total liabilities, redeemable perpetual preferred stock and stockholders’ equity | $ | 1,852,784 | $ | 1,706,052 | |||
Array Technologies, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenue | $ | 507,725 | $ | 419,865 | $ | 884,498 | $ | 720,451 | |||||||
| Cost of revenue | 357,683 | 379,919 | 633,277 | 653,918 | |||||||||||
| Gross profit | 150,042 | 39,946 | 251,221 | 66,533 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 40,250 | 28,936 | 78,392 | 74,361 | |||||||||||
| Change in fair value of contingent consideration | 705 | (1,678 | ) | 2,043 | (5,409 | ) | |||||||||
| Depreciation and amortization | 12,846 | 26,020 | 27,087 | 49,257 | |||||||||||
| Total operating expenses | 53,801 | 53,278 | 107,522 | 118,209 | |||||||||||
| Income (loss) from operations | 96,241 | (13,332 | ) | 143,699 | (51,676 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Other income (expense), net | 125 | (371 | ) | 319 | 372 | ||||||||||
| Foreign currency gain (loss) | 260 | (1,736 | ) | 66 | 2,127 | ||||||||||
| Change in fair value of derivative assets | 694 | — | (1,256 | ) | — | ||||||||||
| Interest expense | (10,109 | ) | (8,021 | ) | (19,609 | ) | (14,963 | ) | |||||||
| Total other (expense) | (9,030 | ) | (10,128 | ) | (20,480 | ) | (12,464 | ) | |||||||
| Income (loss) before income tax (benefit) expense | 87,211 | (23,460 | ) | 123,219 | (64,140 | ) | |||||||||
| Income tax (benefit) expense | 22,403 | (18,436 | ) | 32,279 | (33,179 | ) | |||||||||
| Net income (loss) | 64,808 | (5,024 | ) | 90,940 | (30,961 | ) | |||||||||
| Preferred dividends and accretion | 12,784 | 12,182 | 25,268 | 23,788 | |||||||||||
| Net income (loss) to common shareholders | $ | 52,024 | $ | (17,206 | ) | $ | 65,672 | $ | (54,749 | ) | |||||
| Income (loss) per common share | |||||||||||||||
| Basic | $ | 0.34 | $ | (0.11 | ) | $ | 0.44 | $ | (0.37 | ) | |||||
| Diluted | $ | 0.34 | $ | (0.11 | ) | $ | 0.43 | $ | (0.37 | ) | |||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 150,919 | 150,203 | 150,763 | 149,246 | |||||||||||
| Diluted | 152,129 | 150,203 | 151,970 | 149,246 | |||||||||||
Array Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(in thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Operating activities: | |||||||||||||||
| Net income (loss) | $ | 64,808 | (5,024 | ) | $ | 90,940 | $ | (30,961 | ) | ||||||
| Adjustments to net income (loss): | |||||||||||||||
| Provision for bad debts | (374 | ) | 365 | (141 | ) | 510 | |||||||||
| Deferred tax expense | (3,739 | ) | (28,259 | ) | 816 | (23,910 | ) | ||||||||
| Depreciation and amortization | 13,159 | 26,187 | 27,692 | 49,795 | |||||||||||
| Amortization of debt discount and issuance costs | 2,172 | 1,576 | 4,998 | 3,286 | |||||||||||
| Equity-based compensation | 4,945 | 2,964 | 8,311 | 7,472 | |||||||||||
| Contingent consideration | 705 | (1,678 | ) | 2,043 | (5,409 | ) | |||||||||
| Warranty provision | 43 | 621 | 479 | 1,215 | |||||||||||
| Write-down of inventories | 1,611 | — | 3,458 | 409 | |||||||||||
| Change in fair value of derivative assets | (694 | ) | — | 1,256 | — | ||||||||||
| Changes in operating assets and liabilities, net of business acquisition: | |||||||||||||||
| Accounts receivable | (87,277 | ) | (62,280 | ) | (81,039 | ) | (106,548 | ) | |||||||
| Inventories | 46,156 | (30,941 | ) | 22,844 | (77,191 | ) | |||||||||
| Income tax receivables | 2,851 | 14,862 | 3,220 | (7,062 | ) | ||||||||||
| Prepaid expenses and other | 3,655 | (6,543 | ) | (3,292 | ) | 5,015 | |||||||||
| Accounts payable | 387 | 15,094 | 30,542 | 74,513 | |||||||||||
| Accrued expenses and other | 3,197 | (3,671 | ) | 7,097 | 3,356 | ||||||||||
| Income tax payable | 4,878 | 1,543 | 9,830 | (7,217 | ) | ||||||||||
| Lease liabilities | 590 | (1,385 | ) | 1,414 | 4,700 | ||||||||||
| Deferred revenue | (36,533 | ) | 65,902 | (64,112 | ) | 47,263 | |||||||||
| Net cash provided by (used in) operating activities | 20,540 | (10,667 | ) | 66,356 | (60,764 | ) | |||||||||
| Investing activities: | |||||||||||||||
| Purchase of property, plant and equipment | (5,541 | ) | (1,538 | ) | (9,424 | ) | (3,895 | ) | |||||||
| Acquisition of STI, net of cash acquired | — | (2 | ) | — | (373,818 | ) | |||||||||
| Net cash used in investing activities | (5,541 | ) | (1,540 | ) | (9,424 | ) | (377,713 | ) | |||||||
| Financing activities: | |||||||||||||||
| Proceeds from Series A issuance | — | — | — | 33,098 | |||||||||||
| Proceeds from common stock issuance | — | — | — | 15,885 | |||||||||||
| Series A equity issuance costs | (758 | ) | (400 | ) | (1,508 | ) | (575 | ) | |||||||
| Common stock issuance costs | — | — | — | (450 | ) | ||||||||||
| Payments on revolving credit facility | — | (33,000 | ) | — | (33,000 | ) | |||||||||
| Proceeds from revolving credit facility | — | 49,000 | — | 101,000 | |||||||||||
| Proceeds from issuance of other debt | 17,332 | 24,370 | 23,801 | 30,599 | |||||||||||
| Principal payments on term loan facility | (11,075 | ) | 4,368 | (22,150 | ) | — | |||||||||
| Principal payments on other debt | (21,051 | ) | (22,377 | ) | (38,257 | ) | (22,377 | ) | |||||||
| Contingent consideration payments | — | — | (1,200 | ) | (1,483 | ) | |||||||||
| Net cash provided by (used in) financing activities | (15,552 | ) | 21,961 | (39,314 | ) | 122,697 | |||||||||
| Effect of exchange rate changes on cash and cash equivalent balances | 8,763 | (8,199 | ) | 4,447 | (844 | ) | |||||||||
| Net change in cash and cash equivalents | 8,210 | 1,555 | 22,065 | (316,624 | ) | ||||||||||
| Cash and cash equivalents, beginning of period | 147,756 | 49,491 | 133,901 | 367,670 | |||||||||||
| Cash and cash equivalents, end of period | $ | 155,966 | $ | 51,046 | $ | 155,966 | $ | 51,046 | |||||||
| Supplemental Cash Flow Information | |||||||||||||||
| Cash paid for interest | $ | 7,900 | $ | 4,389 | $ | 15,880 | $ | 7,428 | |||||||
| Cash paid for income taxes | $ | 15,962 | $ | (230 | ) | $ | 18,484 | $ | (230 | ) | |||||
| Non-cash Investing and Financing Activities | |||||||||||||||
| Dividends accrued on Series A Preferred | $ | 6,521 | $ | 6,417 | $ | 12,871 | $ | 12,606 | |||||||
| Stock consideration paid for acquisition of STI | $ | — | $ | — | $ | — | $ | 200,224 | |||||||
Array Technologies, Inc.
Adjusted EBITDA and Adjusted Net Income Reconciliation (unaudited)
(in thousands, except per share amounts)
The following table reconciles net income (loss) to Adjusted EBITDA:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net income (loss) | $ | 64,808 | $ | (5,024 | ) | $ | 90,940 | $ | (30,961 | ) | |||||
| Preferred dividends and accretion | 12,784 | 12,182 | 25,268 | 23,788 | |||||||||||
| Net income (loss) to common shareholders | $ | 52,024 | $ | (17,206 | ) | $ | 65,672 | $ | (54,749 | ) | |||||
| Other expense, net | (125 | ) | 371 | (319 | ) | (372 | ) | ||||||||
| Foreign currency (gain) loss | (260 | ) | 1,736 | (66 | ) | (2,127 | ) | ||||||||
| Preferred dividends and accretion | 12,784 | 12,182 | 25,268 | 23,788 | |||||||||||
| Interest expense | 10,109 | 8,021 | 19,609 | 14,963 | |||||||||||
| Income tax (benefit) expense | 22,403 | (18,436 | ) | 32,279 | (33,179 | ) | |||||||||
| Depreciation expense | 721 | 616 | 1,466 | 1,204 | |||||||||||
| Amortization of intangibles | 12,437 | 25,794 | 26,225 | 48,932 | |||||||||||
| Equity-based compensation | 5,240 | 2,971 | 8,580 | 7,479 | |||||||||||
| Change in fair value of derivative assets | (694 | ) | — | 1,256 | — | ||||||||||
| Change in fair value of contingent consideration | 705 | (1,678 | ) | 2,043 | (5,409 | ) | |||||||||
| Legal expense(a) | 248 | 1,733 | 552 | 2,779 | |||||||||||
| M&A(b) | — | (206 | ) | — | 10,977 | ||||||||||
| Other costs (c) | — | 4,981 | — | 7,327 | |||||||||||
| Adjusted EBITDA | $ | 115,592 | $ | 20,879 | $ | 182,565 | $ | 21,613 | |||||||
(a) Represents certain legal fees and other related costs associated with (i) action against a competitor in connection with violation of a non-competition agreement and misappropriation of trade secrets for which a judgement has been entered in our favor, (ii) actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023, and (iii) other litigation. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.
(b) Represents fees related to the acquisition of STI Norland.
(c) For the three months ended June 30, 2022, other costs represent (i)
The following table reconciles net income (loss) to Adjusted Net Income:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net income (loss) | $ | 64,808 | $ | (5,024 | ) | $ | 90,940 | $ | (30,961 | ) | |||||
| Preferred dividends and accretion | 12,784 | 12,182 | 25,268 | 23,788 | |||||||||||
| Net income (loss) to common shareholders | $ | 52,024 | $ | (17,206 | ) | $ | 65,672 | $ | (54,749 | ) | |||||
| Amortization of intangibles | 12,437 | 25,794 | 26,225 | 48,932 | |||||||||||
| Amortization of debt discount and issuance costs | 2,172 | 1,576 | 4,998 | 3,286 | |||||||||||
| Preferred accretion | 6,263 | 5,765 | 12,398 | 11,118 | |||||||||||
| Equity based compensation | 5,240 | 2,971 | 8,580 | 7,479 | |||||||||||
| Change in fair value of derivative assets | (694 | ) | — | 1,256 | — | ||||||||||
| Change in fair value of contingent consideration | 705 | (1,678 | ) | 2,043 | (5,409 | ) | |||||||||
| Legal expense(a) | 248 | 1,733 | 552 | 2,779 | |||||||||||
| M&A (b) | — | (206 | ) | — | 10,977 | ||||||||||
| Other costs(c) | — | 4,981 | — | 7,327 | |||||||||||
| Income tax expense of adjustments(d) | (7,251 | ) | (10,852 | ) | (13,295 | ) | (18,403 | ) | |||||||
| Adjusted Net Income | $ | 71,144 | $ | 12,878 | $ | 108,429 | $ | 13,337 | |||||||
| Income (loss) per common share | |||||||||||||||
| Basic | $ | 0.34 | $ | (0.11 | ) | $ | 0.44 | $ | (0.37 | ) | |||||
| Diluted | $ | 0.34 | $ | (0.11 | ) | $ | 0.43 | $ | (0.37 | ) | |||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 150,919 | 150,203 | 150,763 | 149,246 | |||||||||||
| Diluted | 152,129 | 150,203 | 151,970 | 149,246 | |||||||||||
| Adjusted net income (loss) per common share | |||||||||||||||
| Basic | $ | 0.47 | $ | 0.09 | $ | 0.72 | $ | 0.09 | |||||||
| Diluted | $ | 0.47 | $ | 0.09 | $ | 0.71 | $ | 0.09 | |||||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 150,919 | 150,203 | 150,763 | 149,246 | |||||||||||
| Diluted | 152,129 | 150,420 | 151,970 | 149,397 | |||||||||||
(a) Represents certain legal fees and other related costs associated with (i) action against a competitor in connection with violation of a non-competition agreement and misappropriation of trade secrets for which a judgement has been entered in our favor, (ii) actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023, and (iii) other litigation. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.
(b) Represents fees related to the acquisition of STI Norland.
(c) For the three months ended June 30, 2022, other costs represent (i)
(d) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.
