Question

1. Tremont Industries reported the following non-GAAP financials: (Values in $000s)

2020 Net income 1,365

Interest income (60)

Interest expense 640

Tax expense 637

One-time tax (gain) / loss (182)

Depreciation & amortization 80

EBITDA 2,480

Stock based compensation 350

Restructuring costs 175

(Gains) / Losses on sale (330)

Adjusted EBITDA 2,675

Had the gains/losses on sale been $350,000 instead of $330,000, which of the following statements is most accurate?

• Adjusted EBITDA would be $2,655,000

• Adjusted EBITDA would be $2,695,000.

• EBITDA would be $2,460,000.

• EBITDA would be $2,500,000.

Answer 1

	Amount in $
EBITDA	2,480,000
Add: Stock based compensation	350,000
Add: Restructuring Costs	175,000
Less: (Gain) /loss on sales	350,000
Adjusted EBITDA	2,655,000
Correct answer is option 1 (i.e. Adjusted EBITDA would be $2,655,000 ).