Calculation of Consolidated Debt-to-Consolidated EBITDA, as defined by the Company's credit agreements at September 30, 2018

Events & Presentations

Calculation of Consolidated Debt-to-Consolidated EBITDA, as defined by the Company's credit agreements at September 30, 2018

Jun 7, 2016

The ratio of Consolidated Debt-to-Consolidated EBITDA, as defined, for the trailing -12 months is a covenant under the Company’s Revolving Facility and Accounts Receivable Securitization Facility. Under the terms of these agreements, as amended, the Company’s ratio of consolidated debt-to-consolidated EBITDA, as defined, for the trailing -12 months cannot exceed 3.50 times, with certain exceptions related to qualifying acquisitions, as defined.

If there are no amounts outstanding under the Revolving Facility and the Accounts Receivable Securitization Facility, consolidated debt, including debt for which the Company is a co-borrower, may be reduced for purposes of the covenant calculation by the Company’s unrestricted cash and cash equivalents in excess of $50 million, such reduction not to exceed $200 million (hereinafter, “net debt”).

Consolidated Debt-to-Consolidated EBITDA, as defined, is calculated as net debt, including debt for which the Company is a co-borrower, divided by consolidated EBITDA, as defined, for the trailing -12 months. Consolidated EBITDA is generally defined as earnings before interest expense (benefit), income tax expense, and depreciation, depletion and amortization expense for continuing operations. Additionally, stock-based compensation expense is added back and interest income is deducted in the calculation of consolidated EBITDA. Certain other nonrecurring items and noncash items, if they occur, can affect the calculation of consolidated EBITDA.