Itafos Reports Record Q4 and FY 2022 Results
TSX-V: IFOS
News Release
ITAFOS REPORTS RECORD Q4 AND FY 2022 RESULTS
HOUSTON, TX – March 23, 2023 – Itafos Inc. (TSX-V: IFOS) (the “Company”) r eported today its Q4 and FY 2022 financial and
operational highlights. The Company’s financial statements and management’s discussion and analysis and annual information form for
the year ended December 31, 2022 are avai lable under the Company’s profile at www.sedar.com and on the Company’s website at
www.itafos.com. All figures are in thousands of US Dollars except as otherwise noted.
CEO Commentary
“We are pleased to report record safety performance and financia l results for 2022. The 2022 reported revenues of $593.3 millio n and
adjusted EBITDA of $224.8 million were suppor ted by strong production performance at our Conda facility and improved market
fundamentals for the agricultural sector.”
“Over the last 24 months we have successf ully executed on our stated business objecti ves and implemented solutions which have
strengthened the Company for the future. Included among those accomplishments were deploying strong free cash flow toward
deleveraging, including two debt refinancings which have significantly reduced the Company’s net debt at the end of 2022 to $88.3 million,
a $129.4 million reduction from the prior year-end. We have positioned Itafos for the next phase of sustainable growth with the planned
extension of the Conda (H1/NDR) mine-life through 2037. Follo wing the publication of the Final Environmental Impact Statement in
November, we continue to advance the H1/NDR mine-life extension approval process, working collaboratively with the relevant regulatory
agencies, and expect a decision in the coming months with capital work commencing soon thereafter.”
“As a result of the significant progress made over the last two years, the Company announced on March 13, 2023 that the Board h as
formed a committee of independent directors to explore and evaluate various strategic alternatives . The board believes that th is is an
appropriate time to consider the full range of potential alter natives to enhance value for all Itafos shareholders,” said G. David Delaney,
CEO of Itafos.
Q4 2022 Key Highlights
revenues of $135.2 million
adjusted EBITDA of $50.1 million (1)
net income of $29.3 million
basic earnings of C$0.21/share
free cash flow of $38.6 million (1)
FY 2022 Key Highlights
revenues of $593.3 million
adjusted EBITDA of $224.8 million (1)
net income of $114.7 million
basic earnings of C$0.79/share
free cash flow of $187.9 million (1)
December 31, 2022 Key Highlights
trailing 12 months adjusted EBITDA of $224.8 million (1)
net debt of $88.3 million (1)
net leverage ratio of 0.4x (1)
FY 2023 Guidance
adjusted EBITDA guidance of $140 to $180 million (1)
net income guidance of $35 to $65 million
basic earnings guidance of C$0.25 to $0.45/share
maintenance capex guidance of $15 to 25 million (1)
growth capex guidance of $40 to 50 million (1)
free cash flow guidance of $70 to $100 million (1)
1 Adjusted EBITDA, trailing 12 months adjusted EBITDA, maintenanc e capex, growth capex, net debt, net leverage ratio and free cas h flow are each a
non-International Financial Reporting Standards (“IFRS”) financial measure. For additional information on non-IFRS and other fi nancial measures, see
“Non-IFRS financial measures” below.
Q4 and FY 2022 Market Highlights
Diammonium phosphate (“DAP”) New Orleans (“NOLA”) prices averaged $672/short ton (“st”) in Q4 2022 compared to $715/st in Q4
2021, down 6% year-over-year. Although prices are marginally below the comparative period last year, pricing remains elevated relative
to historical norms. DAP NOLA prices averaged $772/st in FY 2022 compared to $602/st in FY 2021, up 28% year-over-year.
Specific factors impacting DAP NOLA prices were as follows:
limited phosphate capacity additions;
multi-year low stocks-to-use ratios for global coarse grai ns and oilseeds supporting fertilizer relative affordability;
historically high crop prices in 2022;
the breakout of war in Ukraine; and
continued restrictions and controls on exports of phosphate from China.
Q4 2022 Financial Highlights
For Q4 2022, the Company’s financial highlights were as follows:
revenues of $135.2 million in Q4 2022 compared to $116.8 million in Q4 2021;
adjusted EBITDA of $50.1 million in Q4 20 22 compared to $47.9 million in Q4 2021;
net income of $29.3 million in Q4 2022 compared to $24.3 million in Q4 2021;
basic earnings of C$0.21/share in Q4 20 22 compared to C$0.16/share in Q4 2021; and
free cash flow of $38.6 million in Q4 2022 compared to $28.8 million in Q4 2021.
The increase in the Company’s Q4 2022 financial performance compared to Q4 2021 was primarily due to higher realized MAP prices
(priced on a three-month lag under the terms of the MAP offtake agreement) and sales volumes at Conda, which were partially offset by
higher input costs. The increase in net income was primarily due to lower finance and income tax expenses.
The Company’s total capex(2) spend in Q4 2022 was $9.9 million compared to $6.3 m illion in Q4 2021 with the increase primarily due to
timing of projects at Conda.
FY 2022 Financial Highlights
For FY 2022, the Company’s financial highlights were as follows:
revenues of $593.3 million in FY 2022 compared to $413.2 million in FY 2021;
adjusted EBITDA of $224.8 million in FY 2 022 compared to $143.4 million in FY 2021;
net income of $114.7 million in FY 2022 compared to $51.4 million in FY 2021;
basic earnings of C$0.79/share in FY 202 2 compared to C$0.35/share in FY 2021; and
free cash flow of $187.9 million in FY 2022 compared to $71.3 million in FY 2021.
The increase in the Company’s FY 2022 financial performance compar ed to FY 2021 was primarily due to higher realized prices and
sales volumes at Conda, which were partially offset by higher input costs.
The Company’s total capex spend in FY 2022 was $39.9 million compared to $34.8 million in FY 2021 with the increase primarily due to
activities related to the initiative to produce and sell HFSA at Conda and maintenance activities at Arraias related to the res tart of the
sulfuric acid plant, which were partially offset by a shorter turnaround at Conda in 2022 compared to 2021.
2 Total capex is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”
below.
Final Environmental Impact Statement for Conda Mine Life Extension
On November 18, 2022, the Company announced the publication of the Final Environmental Impact Statement (“Final EIS”) for the Husky
1/North Dry Ridge (“H1/NDR”) mine development project. This represents a significant m ilestone in the extension of Conda’s mine life.
The Company will continue to work through the remaining regula tory approval process and expect to begin capital work on the min e
extension in the middle part of the year.
Strategic Alternative Review Process
On March 13, 2023, the Company announced the commencement of the process to explore and evaluate various strategic alternatives
in an effort to enhance shareholder value.
Anthony Cina, Chairman of Itafos, commented: “Itafos continues to successfully execute on its long-term plan. Over the last year, Itafos
has taken decisive actions to strengthen the operational efficienc y of the Company, including working to extend the life of the Conda
mine, extending the maturity and reducing the cost of the Company’s debt, improving its capital structure through significant deleveraging
and strengthening the Company’s management and Board. We expect significant shareholder benefits from these initiatives and believe
now is an opportune time to consider the full range of potential strategic alternatives to enhance value for all Itafos shareholders.”
CL Fertilizers Holding LLC, an entity owned by funds managed by Castlelake L.P. and the Company’s largest shareholder, supports the
Company’s process to review strategic alternatives.
December 31, 2022 Highlights
As at December 31, 2022, the Company had trailing 12 -month adjusted EBITDA of $224.8 million compared to $143.4 million at the end
of 2021 with the increase primarily due to higher realized prices and increased sales volumes at Conda partially offset by high er input
costs.
Also, as at December 31, 2022, the Company had net debt of $88.3 million compared to $217.7 million at the end of 2021 , with the
reduction due to the repayment of principal debt outstanding and higher cash and cash equivalents from free cash flows generated during
2022. The Company also closed during FY 2022, a term loan and asset- based revolving credit facility, which proceeds were used t o
refinance the 2021 secured term loan, the Company’s unsecured and su bordinated promissory note, Conda’s secured working capital
facility and the Canadian debentures. The Comp any’s net debt as at December 31, 2022, was comprised of $42.8 million in cash an d
$131.1 million in debt (gross of deferred financing costs). As at December 31, 2022, the Company’s net leverage ratio was 0.4x compared
to 1.5x at the end of 2021.
As at December 31, 2022, the Company had liquidity (3) of $64.3 million comprised of $42.8 m illion in cash and $21.5 million undrawn
borrowing capacity under the ABL Facility.
Q4 2022 Operational Highlights
Environmental, Health and Safety (“EHS”)
sustained EHS excellence, including no reportable envir onmental releases and one recordable incident; and
continued corporate-wide risk mitigation measures to address pot ential impacts to employees, contractors and operations as a
result of the COVID-19 pandemic, which resulted in no material impact to operations.
Conda
produced 89,226 tonnes P 2O5 at Conda in Q4 2022 compared to 84,808 tonnes P2O5 in Q4 2021 with the increase primarily due
to 2021 disruption in sulfuric acid supply;
generated revenues of $129.3 million at Conda in Q4 2022 compared to $116.8 million in Q4 2021 with the increase primarily
due to higher realized MAP prices (priced on a three-month l ag under the terms of the MAP offtake agreement) and increased
sales volumes, which were partially offset by lower realized SPA prices;
generated adjusted EBITDA at Conda of $54.8 million in Q4 2022 compared to $52. 8 million in Q4 2021 with the increase
primarily due to the same factors that resulted in higher revenues, which were partially offset by higher input costs;
advanced activities related to the extension of Conda's mi ne life through permitting and development of H1/NDR, including a
significant milestone on Conda’s mine life extension with the publication of the Final EIS for H1/NDR on November 18, 2022.
3 Liquidity is a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures”
below.
FY 2022 Operational Highlights
EHS
sustained EHS excellence, including no reportable environmental releases and one recordable incident, which resulted in a
consolidated total recordable incident frequency rate of 0.24, representing a new Company record;
received national recognition during the 87th North American Wildlife and Natural Resources Conference as the Bureau of Land
Management awarded the Conservation Leadership Partner Award to the Southeast Idaho Habitat Mitigation Fund, which was
developed and funded by Conda;
continued corporate-wide risk mitigation measures to address pot ential impacts to employees, contractors and operations as a
result of the COVID-19 pandemic, which resulted in no material impact to operations; and
received a notice of violation (“NOV”) at Conda from the Idaho Department of Environmental Quality (“DEQ”) related to a failed
air stack emissions test in May 2021. Conda investigated and corrected the issues during 2021. The NOV was formally received
from the DEQ in May 2022 and resolved in July 2022.
Conda
completed a scheduled plant turnaround at C onda and returned to full production capacity;
produced 343,526 tonnes P 2O5 at Conda in FY 2022 compared to 331,219 tonnes P 2O5 in FY 2021 with the increase primarily
due to a shorter plant turnaround in 2022 compared to 2021;
generated revenues of $571.1 million at Co nda in FY 2022 compared to $413.2 million in FY 2021 primarily due to higher realized
prices and sales volumes;
generated adjusted EBITDA at Conda of $240.2 million in FY 2022 compared to $160.6 million in FY 2021 primarily due to the
same factors that resulted in higher revenues, which were partially offset by higher input costs;
reached a settlement with insurers on a business interruption clai m related to the 2020 disruption in sulfuric acid supply to Conda,
which resulted in receipt of net insurance proceeds of $8.7 million;
reached a settlement agreement related to shared environmental and asset retirement obligations at Conda’s Lanes Creek mine;
advanced activities related to the extension of Conda’s mine life through permitting and development of H1/NDR, including a
significant milestone on Conda’s mine life extension with the publication of the Final EIS for H1/NDR on November 18, 2022;
and
advanced activities related to the opt imization of Conda's EBITDA generation, including beginning production and sales of
hydrofluorosilicic acid (“HFSA”).
Q4 Other Highlights
produced 35,895 tonnes of sulfuric acid at Arraias in Q4 2022 compared to zero production in Q4 2021;
generated adjusted EBITDA at Arraias of $0 in Q4 2022 compared to a loss of $1.1 million in Q4 2021 with the reduced loss due
to the restart of the sulfuric acid plant; and
continued evaluation of strategic alte rnatives for non-North American assets.
FY 2022 Other Highlights
produced 99,030 tonnes of sulfur ic acid at Arraias in 2022 compared to no production in 2021;
generated adjusted EBITDA at Arraias of $0 in 2022 compared to a $3.8 million loss in 2021 with the reduced deficit due to the
restart of the sulfuric acid plant;
continued evaluation of strategic alte rnatives for non-North American assets;
announced the appointment of Stephen Shapiro and Isaiah Toback to the Com pany’s Board of Directors (the “Board”). Mr.
Toback replaced Rory O'Neill as a nominee to the Board by its principal shareholder, CL Fertilizer Holdings, LLC; and
on August 11, 2022, announced the appointment of Matthew O’Neill as Chief Financial Officer (“CFO”). Mr. O’Neill succeeded
George Burdette who served as CFO since April 2018.
Subsequent Events
Subsequent to December 31, 2022, the Company approved the grant of up to, in a ggregate, 3,507,846 restricted share units
(“RSUs”) under its RSU Plan. The grants were made to dire ctors, officers, management, empl oyees, and contractors of the
Company.
Market Outlook
The Company expects the current strength in global agriculture and phosphate fertilizer fundamentals to continue, although 2023 prices
are expected to moderate off the historically high 2022 prices. Accordingly, the Company expects continued stability in prices and volume
fundamentals in the phosphate fertilizer markets.
Specific factors the Company expects to support the continued strength in the global phosphate fertilizer markets through 2023 are as
follows:
no significant phosphate supply capacity additions
sustained crop price levels
improved phosphate application follow ing historically high pricing; and
ongoing phosphate export restrictions from China.
The Company expects the sulfur and sulfuric acid market to remain soft globally through 2023 due to increased refinery activity and
reduced demand from phosphate producers and metals consumers.
Financial Outlook
The Company’s guidance for 2023 is as follows:
(in millions of US Dollars
except as otherwise noted) FY 2023
Adjusted EBITDA $140 to $180
Net income $35 to $65
Basic earnings (C$/share) $0.25 to $0.45
Maintenance capex $15 to $25
Growth capex $40 to $50
Free cash flow $70 to $100
Business Outlook
The Company continues to focus on the following key objectives to drive long-term value and shareholder returns:
improving financial and operational performance;
deleveraging the balance sheet;
extending Conda’s current mine life through permitting and development of H1/NDR; and
conducting the strategic alternatives review process (includi ng evaluating potential strategic alternatives for the company as
outlined in the news release dated 13 March, 2023).
About Itafos
The Company is a phosphate and specialty fertilizer company. The Company’s businesses and projects are as follows:
Conda – a vertically integrated phosphate fertilizer business loca ted in Idaho, US with production capacity as follows:
- approximately 550kt per year of monoammonium phosphate (“M AP”), MAP with micronutrients (“MAP+”), superphosphoric
acid (“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”); and
- approximately 27kt per year of hy drofluorosilicic acid (“HFSA”);
Arraias – a vertically integrated phosphate fertilizer business lo cated in Tocantins, Brazil with production capacity as follows:
- approximately 500kt per year of single superphosph ate (“SSP”) and SSP with micronutrients (“SSP+”); and
- approximately 40kt per year of excess sulfuric acid (220kt per year gross sulfuric acid production capacity);
Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau;
Santana – a vertically integrated high- grade phosphate mine and fertilizer plant project located in Pará, Brazil; and
Araxá – a vertically integrated rare earth elements and niobium mine and extraction plant project located in Minas Gerais, Brazil.
In addition to the businesses and projects described above, the Comp any also owns Mantaro (Junin, Peru), a phosphate mine proje ct
that is in the process of being wound down.
The Company is a Delaware corporation that is headquartered in Houston, TX. The Company’s shares trade on the TSX Venture
Exchange (“TSX-V”) under the ticker symbol “IFOS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is
an affiliate of Castlelake, L.P., a global private investment firm.
For more information, or to join the Comp any’s mailing list to receive notification of future news releases, please visit the C ompany’s
website at www.itafos.com.
Forward-Looking Information
Certain information contained in this news release constitutes forward-looking information, including statements with respect t o: the
exploration and evaluation of strategic alternatives; the timing for the extension of the life of the Conda mine; and the continued strength
in the global phosphate fertilizer markets. All information other than information of historical fact is forward-looking information. Statements
that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future include,
but are not limited to, statements regarding estimates and/or assumptions in respect of the Company’s financial and business outlook are
forward-looking information. The use of an y of the words “intend”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”,
“project”, “should”, “would”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward-looking information.
This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to d iffer
materially from those anticipated in such forward-looking info rmation. No assurance can be given that this information will pro ve to be
correct and such forward-looking information included in this news release should not be unduly relied upon.
Forward-looking information is subject to a number of risks and other factors that could cause actual results and events to vary materially
from that anticipated by such forward-look ing information. Although the Company has atte mpted to identify important factors tha t could
cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results
not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described
in forward-looking statements include, but are not limited to, uncertainties of es timates of capital and operating costs and pr oduction
estimates; the ability of the Company to meet its financial obligations and minimum commitments, fund capital expenditures and comply
with covenants contained in the agreements that govern indebtedness; fluctuations in foreign exchange or interest rates and stock market
volatility; the continued supply of sulfuric acid to Conda from its primary supplier; the risk t hat the strategic alternatives review process
will not result in the Company pursuing any transaction or that any alternative will be available to the Company; and those risk factors set
out in the Company’s annual information form and other disclosure documents available under the Company’s profile on SEDAR at
www.sedar.com and on the Company’s website at www.itafos.com. Readers are cautioned that the for egoing list of risks, uncertainties
and assumptions are not exhaustive. The forward-looking information included in this news release is expressly qualified by thi s
cautionary statement and is made as of the date of this news release. The Company undertakes no obligation to publicly update or revise
any forward-looking information except as required by applicable securities laws.
This news release contains future oriented financial information and financial outlook information (together, “FOFI”) about the Company’s
prospective results of operations, includi ng statements regarding expected adjusted EBITD A, net income, basic earnings per shar e,
maintenance capex, growth capex and free cash flow. FOFI is subject to the same assumptions, risk factors, limitations and qualifications
as set forth in the above paragraph. The Company has included the FOFI to provide an outlook of management’s expectations regarding
anticipated activities and results, and such information may no t be appropriate for other purposes. The Company and management
believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgements;
however, actual results of operations and the resulting financial results may vary from the amounts set forth herein. Any financial outlook
information speaks only as of the date on which it is made and th e Company undertakes no obligation to publicly update or revis e any
financial outlook information except as required by applicable securities laws.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-
V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information, please contact:
Matthew O’Neill
Itafos Investor Relations
713-242-8446
Non-IFRS Financial Measures
This press release contains both IFRS and certain non-IFRS m easures that management consi ders to evaluate the Company’s
operational and financial performance. Non-IFRS measures are a numerical measure of a company’s performance, that either include or
exclude amounts that are not normally includ ed or excluded from the most directly co mparable IFRS measures. Management believes
that the non-IFRS measures provide useful supplemental information to investors, analysts, lenders and others. In evaluating non-IFRS
measures, investors, analysts, lenders and others should consider that non-IFRS measures do not have any standardized meaning under
IFRS and that the methodology applied by t he Company in calculating such non-IFRS measures may differ among companies and
analysts. Non-IFRS measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared
in accordance with IFRS. Definitions and reconciliations of non-IFRS measures to the most directly comparable IFRS measures are
included below.
DEFINITIONS
The Company defines its non-IFRS measures as follows:
Non-IFRS Measure Definition Most Directly Comparable IFRS Measure
EBITDA Earnings before interest, taxes, depreciation,
depletion and amortization
Net income (loss) and operating income (loss)
Adjusted EBITDA EBITDA adjusted for non-cash, extraordinary,
non-recurring and other items unrelated to the
Company’s core operating activities
Net income (loss) and operating income (loss)
Trailing 12 months
adjusted EBITDA
Adjusted EBITDA for the current and preceding
three quarters
Net income (loss) and operating income (loss) for
the current and preceding three quarters
Total capex Additions to property, plant, and equipment and
mineral properties adjusted for additions to
asset retirement obligations, additions to right-
of-use assets and capitalized interest
Additions to property, plant and equipment and
mineral properties
Maintenance capex Portion of total capex relating to the
maintenance of ongoing operations
Additions to property, plant and equipment and
mineral properties
Growth capex Portion of total capex relating to the
development of growth opportunities
Additions to property, plant and equipment and
mineral properties
Cash growth capex Growth capex less accrued growth capex Additions to property, plant and equipment and
mineral properties
Net debt Debt less cash and cash equivalents plus
deferred financing costs (does not consider
lease liabilities)
Current debt, long-term debt and cash and cash
equivalents
Net leverage ratio
Net debt divided by trailing 12 months adjusted
EBITDA
Current debt, long-term debt and cash and cash
equivalents; net income (loss) and operating
income (loss) for the current and preceding three
quarters
Liquidity Cash and cash equivalents plus undrawn
committed borrowing capacity
Cash and cash equivalents
Free cash flow Cash flows from operating activities, which
excludes payment of interest expense, plus
cash flows from investi ng activities less cash
growth capex
Cash flows from operating activities and cash flows
from investing activities
EBITDA, ADJUSTED EBITDA AND TRAILING 12 MONTHS ADJUSTED EBITDA
EBITDA is a non-IFRS measure that excludes interest, taxes, depreciation, depletion and amortization from earnings. Management
believes that EBITDA is a valuable indicator of the Company’s ability to generate operating income.
Adjusted EBITDA is a non-IFRS measure t hat excludes non-cash, extraordinary, non -recurring and other items unrelated to the
Company’s core operating activities from EBITDA (non-IFRS m easure). Management believes that adjusted EBITDA is a valuable
indicator of the Company’s ability to generate operating income from its core operating activities normalized to remove the impact of non-
cash, extraordinary and non-recurring items. The Company provi des guidance on adjusted EBITDA as useful supplemental informatio n
to investors, analysts, lenders and others.
Trailing 12 months adjusted EBITDA is a non- IFRS measure that includes adjusted EBITDA (non-IFRS measure) for the current and
preceding three quarters.
For the three months ended December 31, 2022 and 2021
For the three months ended December 31, 2022, the Company had EBITDA and adjusted EBITDA by segment as follows:
(in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Net income (loss) $ 35,321 $ (116 ) $ 59 $ (5,942 ) $ 29,322
Finance (income) expense, net 1,164 (122 ) (2) 4,771 5,811
Current and deferred income tax expense
(recovery) 9,595 — — (3,660 ) 5,935
Depreciation and depletion 8,354 585 3 47 8,989
EBITDA $ 54,434 $ 347 $ 60 $ (4,784 ) $ 50,057
Unrealized foreign exchange (gain) loss 400 (124 ) (568) 578 286
Share‐based payment recovery — — — (133 ) (133)
Transaction costs — — 15 214 229
Gain on settlement — — — — —
Non‐recurring compensation expenses — — — — —
Other income, net (11) (223 ) (74) (1 ) (309)
Adjusted EBITDA $ 54,823 $ — $ (567) $ (4,126 ) $ 50,130
(in thousands of US Dollars) Conda Arraias
Development
and
exploration Corporate Total
Operating income (loss) $ 46,558 $ (585) $ (585) $ (4,254) $ 41,134
Depreciation and depletion 8,354 585 3 47 8,989
Foreign exchange loss ‐ realized (89) — — — (89 )
Share‐based payment recovery — — — (133) (133 )
Transaction costs — — 15 214 229
Gain on settlement — — — — —
Non‐recurring compensation expenses — — — — —
Adjusted EBITDA $ 54,823 $ $ (567) $ (4,126) $ 50,130