(2) Reflects interest expense assuming the Company’s current post-IPO long-term debt balance of $74.5 million was outstanding as of the beginning of fiscal year 2011. This balance reflects $42.5 million repayment of long-term debt from the net proceeds from the IPO. This interest expense calculation assumes an interest rate of 6.25%. The interest adjustment is also based on the following assumptions: (a) an unused facility fee on the unfunded $25 million revolver at an annual rate of 0.5%; (b) a lower annual amortization of deferred loan costs of approximately $0.7 million per year after the write-off of approximately $1.1 million in deferred loan costs associated with the $42.5 million paydown which occurred in the second quarter of 2012 but is assumed to occur at the beginning of fiscal year 2011; and (c) an assumed $0.1 million per year in capitalized interest. Does not include any impact of the refinancing described in this press release.
(3) Reflects the elimination of the management fees and expenses paid and reimbursed to J.H. Whitney for the periods presented.
(4) Reflects the elimination of fees and expense paid in regard to the Company’s exploration of strategic alternatives included expenses related to the IPO: (a) significant 2011 elements include $0.4 million in legal expenses and $0.2 million payable to external advisors and related expenses, and (b) significant 2012 elements include a $1.0 million fee for the termination of the management agreement paid to J.H. Whitney, $0.6 million in transaction related bonuses of which $0.2 million was stock based compensation paid to selected members of management for the successful completion of the IPO, and $0.3 million paid to the Company’s external legal counsel and advisors.
(5) Reflects the elimination of the professional fees and associated expenses connected directly to the Company’s restatement.(6) Reflects an estimate of recurring incremental legal, accounting, insurance, other compliance costs and board of director fees the Company expects to incur as a public company.