El Pollo Loco 2016 Annual Report Download - page 39

ThefollowingtablesetsforthreconciliationsofEBITDAandAdjustedEBITDAtoournetincome(loss):

 Fiscal Year
2015 2014 2013
Net income (loss)  $ 24,054  $ 42,463  $ (16,873)
Non-GAAPadjustments:         
(Benefit)provisionforincometaxes   20,857   (63,008)   1,401
Interestexpense,net   3,707   18,062   36,334
Depreciationandamortization   13,092   11,538   10,213
EBITDA  $ 61,710  $ 9,055  $ 31,075
Stockbasedcompensationexpense(a)   539   1,093   822
Managementfees(b)   —   343   624
Lossondisposalofassets(c)   471   646   868
Impairmentandclosures(d)   89   1,033   (101)
Earlyextinguishmentofdebt(e)   —   9,718   21,530
Gainondispositionofrestaurants(f)   —   (2,658)   (400)
Expenserelatedtosellingshareholders(g)   50   667   —
Incometaxreceivableagreementexpense(h)   156   41,382   —
Taxcreditexpense(i)   —   415   —
Securitiesclassactionlegalexpense(j)   993   —   —
Pre-openingcosts(k)   1,456   1,215   201
Adjusted EBITDA  $ 65,464  $ 62,909  $ 54,619


(a) Includesnon-cash,stock-basedcompensation.
(b) Includesmanagementfeesandotherout-of-pocketcostspaidtoaffiliatesofTrimaranandFreemanSpogliupthroughourIPO.Thisagreementwas
cancelledinconjunctionwiththeIPO.
(c) Lossondisposalofassetsincludesthelossondisposalofassetsrelatedtoretirementsandreplacementorwrite-offofleaseholdimprovementsor
equipment.
(d) Includescostsrelatedtoimpairmentoflong-livedassetsandclosingrestaurants.In2013,wereversedaportionoftheclose-storereservesestablishedin
2012,duetooursubleasing,in2013,ofoneofthereservedrestaurantsatalowernetcostthanoriginallyestimated.
(e) IncludescostsassociatedwithourdebtrefinancingtransactionsinDecember2014andOctober2013andtherepaymentofour2013SecondLienTerm
LoanwithaportionoftheproceedsofourIPOinJuly2014.
(f) OnSeptember24,2014,wecompletedthesaleofsixcompany-operatedrestaurantsinthegreaterSanAntonioarea.Thissaleresultedincashproceedsof
$5.4million,adecrementtogoodwillof$650,000andanetgainof$2.7million.Thesesixrestaurantsarenowfranchised.
(g) Includes:(1)Costsrelatedtothesale,inthesecondquarterof2015,of5.4millionshareofcommonstockinablocktradetovariousinvestors,byour
largestshareholder,whichwasatthattimeourmajorityshareholder,pursuanttoRule144undertheSecuritiesAct.Thisshareholderownsstockinusnot
registeredundertheSecuritiesAct.Underourstockholdersagreement,thisshareholdermayrequireustoregisterstockinusthatitowns,underthe
SecuritiesAct.Inthatevent,weareresponsibleforallregistrationexpenses.Inlieuoftheshareholder’sexerciseofitsregistrationrights,weagreedtobear
theexpensesincidenttotheshareholder’ssaleofthesesharesusingRule144and(2)CostsrelatedtooursecondaryofferingofstockonNovember25,
2014.
(h) OnJuly30,2014,weenteredintotheTRA.Thisagreementcallsforustopaytoourpre-IPOstockholders85%ofthesavingsincashthatwerealizeinour
taxesasaresultofutilizingournetoperatinglossesandothertaxattributesattributabletoprecedingperiods.
(i) Consistsofthecosttoobtainthetaxcreditsrecordedinthethirdandfourthquartersof2014.$6.7millionoftaxbenefitswererecordedtotaxprovisionin
thethirdandfourthquarters.
(j) Consistsofcostsrelatedtoasecuritiesclassactionlawsuit.SeeItem3.LegalProceedings
(k) Pre-openingcostsareacomponentofgeneralandadministrativeexpenses,andconsistofcostsdirectlyassociatedwiththeopeningofnewrestaurantsand
incurredpriortoopening,includingmanagementlaborcosts,stafflaborcostsduringtraining,foodandsuppliesusedduringtraining,marketingcosts,and
otherrelatedpre-openingcosts.Thesearegenerallyincurredoverthethreetofivemonthspriortoopening.Pre-openingcostsalsoincludeoccupancycosts
incurredbetweenthedateofpossessionandtheopeningdateforarestaurant.
36