- During fiscal year 2022, restructuring, transaction expenses and other, primarily represent expenses incurred in relation to the Coherent acquisition as well as integration and restructuring charges from the Finisar acquisition, and various one-time adjustments. Incremental interest expense related to the financing for the Coherent transaction will be included as an adjustment in arriving at non-GAAP earnings for periods prior to transaction close, as the associated funding was contingent on transaction close. During fiscal year 2021, transaction costs primarily represent acquisition and integration costs related to the Ascatron and Innovion acquisitions, as well as customer settlements from acquired liabilities of previous acquisitions.
- The Company recorded debt extinguishment expense of $24.7 million in connection with the extinguishment of the Term B Loan Facility during the fiscal year ended June 30, 2021.
- Start-up costs in operating expenses incurred in the quarter were related to the start-up of new devices for new customer applications.
- GAAP gross profit basis for prior periods has been updated to include amortization of developed technology intangible assets, with a corresponding decrease to selling, general and administrative on GAAP basis.
| Table 5 | |||||||||||||||||||||
| Reconciliation of GAAP Net Income (Loss), EBITDA and Adjusted EBITDA | |||||||||||||||||||||
| $ Millions | |||||||||||||||||||||
| (Unaudited) | Three Months Ended | Year Ended | |||||||||||||||||||
| Jun 30, | Mar 31, | Jun 30, | Jun 30, | Jun 30, | |||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| Net earnings on GAAP basis | $ | 43.6 | $ | 49.0 | $ | 82.3 | $ | 234.8 | $ | 297.6 | |||||||||||
| Income taxes | 5.3 | 14.0 | 10.9 | 47.0 | 55.0 | ||||||||||||||||
| Depreciation and amortization | 73.3 | 72.8 | 70.2 | 286.8 | 270.1 | ||||||||||||||||
| Interest expense | 48.5 | 43.5 | 14.1 | 121.3 | 59.9 | ||||||||||||||||
| EBITDA (1) | $ | 170.7 | $ | 179.3 | $ | 177.5 | $ | 689.9 | $ | 682.6 | |||||||||||
| EBITDA margin | 19.2 | % | 21.7 | % | 22.0 | % | 20.8 | % | 22.0 | % | |||||||||||
| Share-based compensation | 13.5 | 18.2 | 18.5 | 73.1 | 78.9 | ||||||||||||||||
| Foreign currency exchange losses, net | 19.8 | 1.1 | 1.2 | 16.2 | 5.5 | ||||||||||||||||
| Start-up costs | 6.4 | 14.6 | — | 32.3 | — | ||||||||||||||||
| Debt extinguishment expense | — | — | — | — | 24.7 | ||||||||||||||||
| Gain on investment | — | — | — | — | (7.0 | ) | |||||||||||||||
| Gain on preferred equity forward sale agreement | — | — | — | — | (11.4 | ) | |||||||||||||||
| Restructuring, transaction expenses, and other (3) | 14.6 | 13.2 | 2.8 | 53.3 | 27.4 | ||||||||||||||||
| Adjusted EBITDA (2) | $ | 225.0 | $ | 226.4 | $ | 200.0 | $ | 864.8 | $ | 800.7 | |||||||||||
| Adjusted EBITDA margin | 25.4 | % | 27.4 | % | 24.8 | % | 26.1 | % | 25.8 | % | |||||||||||
