| Table 5 | ||||||||||||||||||||||||||
| Reconciliation of Operating Income (Loss) to Adjusted EBITDA, EBITDA, and Net Earnings (Loss) | ||||||||||||||||||||||||||
| $ Millions | ||||||||||||||||||||||||||
| (Unaudited) | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
| Dec 31, | Sept 30, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||||
| 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
| Operating income (loss) | $ | (78.6 | ) | $ | (18.5 | ) | $ | 39.6 | $ | (97.1 | ) | $ | 76.8 | |||||||||||||
| Depreciation and amortization | 82.2 | 26.9 | 22.3 | 109.1 | 44.5 | |||||||||||||||||||||
| Preliminary fair value adjustment on acquired inventory | 80.6 | 7.1 | - | 87.7 | - | |||||||||||||||||||||
| Stock based compensation expense | 19.3 | 5.4 | 5.0 | 24.7 | - | |||||||||||||||||||||
| Transaction expenses related to acquisitions | 8.0 | 5.6 | 8.6 | 13.6 | 10.5 | |||||||||||||||||||||
| Other income (expense), net | (0.6 | ) | (5.0 | ) | 0.7 | (5.6 | ) | 1.4 | ||||||||||||||||||
| One-time costs related to the Finisar acquisition | - | 26.6 | - | 26.6 | - | |||||||||||||||||||||
| Severance and related - Stock based compensation | - | 10.7 | - | 10.7 | - | |||||||||||||||||||||
| Severance and related - Other compensation | - | 7.7 | - | 7.7 | - | |||||||||||||||||||||
| Special items - Other income (expense), net | - | 4.3 | - | 4.3 | - | |||||||||||||||||||||
| Adjusted EBITDA (1) | $ | 111.0 | $ | 70.9 | $ | 76.2 | $ | 181.7 | $ | 133.2 | ||||||||||||||||
| Adjusted EBITDA margin (1) | 16.7 | % | 20.8 | % | 22.2 | % | 18.0 | % | 20.3 | % | ||||||||||||||||
| Preliminary fair value adjustment on acquired inventory | (80.6 | ) | (7.1 | ) | - | (87.7 | ) | - | ||||||||||||||||||
| Stock based compensation expense | (19.3 | ) | (5.4 | ) | (5.0 | ) | (24.7 | ) | - | |||||||||||||||||
| Transaction expenses related to acquisitions | (8.0 | ) | (5.6 | ) | (8.6 | ) | (13.6 | ) | (10.5 | ) | ||||||||||||||||
| One-time costs related to the Finisar acquisition | - | (26.6 | ) | - | (26.6 | ) | - | |||||||||||||||||||
| Severance and related - Stock based compensation | - | (10.7 | ) | - | (10.7 | ) | - | |||||||||||||||||||
| Severance and related - Other compensation | - | (7.7 | ) | - | (7.7 | ) | - | |||||||||||||||||||
| Special items - Other income (expense), net | - | (4.3 | ) | - | (4.3 | ) | - | |||||||||||||||||||
| EBITDA (2) | $ | 3.1 | $ | 3.5 | $ | 62.6 | $ | 6.4 | $ | 122.7 | ||||||||||||||||
| EBITDA margin (3) | 0.5 | % | 1.0 | % | 18.3 | % | 0.6 | % | 18.7 | % | ||||||||||||||||
| Interest expense | $ | 28.3 | $ | 7.0 | $ | 5.6 | $ | 35.3 | $ | 11.2 | ||||||||||||||||
| Depreciation and amortization | 82.2 | 26.9 | 22.3 | 109.1 | 44.5 | |||||||||||||||||||||
| Income taxes | (9.2 | ) | (4.5 | ) | 6.0 | (13.8 | ) | 12.2 | ||||||||||||||||||
| Net Earnings (Loss) | $ | (98.2 | ) | $ | (26.0 | ) | $ | 28.7 | $ | (124.2 | ) | $ | 54.8 | |||||||||||||
- Adjusted EBITDA excludes non-GAAP adjustments for share-based compensation, acquired intangibles amortization expense, certain one-time transaction expense and the impact of and restructuring and related items.
- EBITDA is defined as earnings before interest, income taxes, depreciation and amortization.
- EBITDA margin is defined as earnings before interest, incomes taxes, depreciation and amortization divided by revenues.
