Exhibit D | |||||||||||||||
MTS SYSTEMS CORPORATION | |||||||||||||||
Reconciliation of EBITDA and Adjusted EBITDA to Net Income | |||||||||||||||
(unaudited - in thousands) | |||||||||||||||
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| Three Months Ended |
| Nine Months Ended | ||||||||||||
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| June 29, 2019 |
| June 30, 2018 |
| June 29, 2019 |
| June 30, 2018 | ||||||||
Net income | $ | 13,585 |
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| $ | 8,979 |
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| $ | 38,246 |
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| $ | 50,568 |
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Net income margin | 5.9 | % |
| 4.6 | % |
| 5.7 | % |
| 8.7 | % | ||||
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Income tax provision (benefit) | 2,605 |
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| 1,066 |
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| 6,217 |
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| (20,877) |
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Interest expense, net | 6,687 |
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| 6,249 |
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| 20,873 |
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| 19,761 |
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Depreciation and amortization | 9,685 |
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| 8,510 |
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| 28,153 |
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| 25,858 |
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EBITDA 1 | 32,562 |
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| 24,804 |
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| 93,489 |
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| 75,310 |
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Stock-based compensation | 2,609 |
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| 2,088 |
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| 7,298 |
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| 5,378 |
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Restructuring expenses 2 | — |
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| 890 |
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| 130 |
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| 1,498 |
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Acquisition-related expenses 3 | 29 |
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| — |
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| 955 |
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| — |
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Acquisition inventory fair value adjustment | 157 |
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| — |
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| 1,141 |
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| — |
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Adjusted EBITDA 1 | $ | 35,357 |
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| $ | 27,782 |
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| $ | 103,013 |
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| $ | 82,186 |
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| Adjusted EBITDA margin 1,4 | 15.2 | % |
| 14.3 | % |
| 15.4 | % |
| 14.2 | % | ||||
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| 1 | Denotes non-GAAP financial measure. | ||||||||||||||
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| 2 | Restructuring expenses were adjusted to exclude stock-based compensation forfeitures that are otherwise included in the stock-based compensation line. | ||||||||||||||
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| 3 | Acquisition-related expenses were adjusted to exclude stock-based compensation that is otherwise included in the stock-based compensation line. | ||||||||||||||
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| 4 | Adjusted EBITDA was divided by revenue when calculating the Adjusted EBITDA margin. | ||||||||||||||
