Exhibit 99.1

 

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Fathom Digital Manufacturing Reports Fourth Quarter

and Full Year 2021 Preliminary Unaudited Financial Results

Fourth Quarter 2021 Highlights

 

   

Revenue increased 132.8% to $44.3 million; Pro forma revenue1 increased 18.4%

 

   

Total orders increased 25.9% to $49.1 million

 

   

Net income totaled $21.0 million; adjusted net loss totaled $1.7 million1 

 

   

Adjusted EBITDA1 increased to $10.5 million, representing an Adjusted EBITDA margin1 of 23.8%

 

   

Commenced trading on the New York Stock Exchange under the ticker “FATH”

Full Year 2021 Highlights

 

   

Revenue increased 148.5% to $152.2 million; Pro forma revenue1 increased 8.8% to $162.6 million

 

   

Net income totaled $13.0 million; adjusted net loss totaled $5.4 million1

 

   

Adjusted EBITDA1 increased to $34.4 million, representing an Adjusted EBITDA margin1 of 22.6%

HARTLAND, Wis., March 4, 2022 — Fathom Digital Manufacturing Corp. (NYSE: FATH), an industry leader in on-demand digital manufacturing services, today announced its preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2021.

 

     Three Months Ended     Twelve Months Ended  
($ in thousands)    12/31/2021     12/31/2020     12/31/2021     12/31/2020  

Revenue

   $ 44,330     $ 19,040     $ 152,196     $ 61,240  

Pro forma revenue1

   $ 44,330     $ 37,455     $ 162,576     $ 149,400  

Net income (loss)

   $ 20,981     $ (6,858   $ 13,019     $ (7,963

Adjusted net income (loss) 1

   $ (1,682   $ (5,018   $ (5,408   $ (4,198

Adjusted EBITDA1

   $ 10,534     $ 1,510     $ 34,353     $ 11,194  

Adjusted EBITDA margin1

     23.8     7.9     22.6     18.3

 

1

See “Non-GAAP Financial Information. Reconciliations of non-GAAP financial measures are included in the appendix.

“Fathom’s strong fourth quarter and full year 2021 financial results reflect the increasing demand for our comprehensive on-demand digital manufacturing services,” said Ryan Martin, Fathom Chief Executive Officer. “Our scalable, technology-agnostic platform for prototyping and low- to mid-volume production provides timely, value-added solutions with quality assurances for corporate enterprise customers, uniquely positioning Fathom to accelerate new product development and manufacturing innovation for some of the largest and most innovative companies in the world. During the fourth quarter, our record order volumes of $49.1 million translated into organic revenue growth of 18.4% while expanding our backlog of new business. We also maintained our focus on profitable growth by generating $10.5 million in Adjusted EBITDA, representing 23.8% of revenue for the quarter and demonstrating Fathom’s industry-leading margins.”

Mr. Martin added, “In December, Fathom commenced trading on the New York Stock Exchange, representing a major milestone in the company’s deep-rooted history. We believe our successful public listing enhances our ability to achieve continued market penetration for our additive and advanced traditional manufacturing technologies and take full advantage of the Industry 4.0 digital manufacturing revolution. Our focus remains on further strengthening Fathom’s breadth of leading offerings as we continue to invest in the business. Additionally, we intend to maintain Fathom’s role as an active consolidator in a large and highly fragmented $25 billion industry. By leveraging our proven business model and attractive financial profile, we expect to build upon our solid performance and drive long-term profitable growth in 2022 and beyond for the benefit of our shareholders.”

 


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Summary of Financial Results (preliminary unaudited)

Revenue for the fourth quarter of 2021 was $44.3 million compared to $19.0 million in the fourth quarter of 2020, an increase of 132.8%. The year-over-year growth was driven by an increase in the volume of customers served, primarily through acquisition-related activity and growth within Fathom’s strategic accounts.

On a pro forma basis, which combines the results of Fathom for the applicable period with the pre-acquisition results of businesses acquired in 2021 and 2020 for the respective period, revenue for the fourth quarter of 2021 increased 18.4% to $44.3 million from $37.5 million for the fourth quarter of 2020.

For the year ended December 31, 2021, revenue increased 148.5% to $152.2 million from $61.2 million for the year ended December 31, 2020. Pro forma revenue for the full year 2021 totaled $162.6 million compared to $149.4 million for the full year 2020, representing an increase of 8.8%.

Net income for the fourth quarter of 2021 was $21.0 million compared to a net loss of $6.9 million in the fourth quarter of 2020. For the year ended December 31, 2021, the company reported a net income of $13.0 million compared to a net loss of $8.0 million for the same period in 2020.

On an adjusted basis excluding acquisition costs and purchase accounting adjustments related to the revaluation of Fathom warrants and earnout shares following the completion of its business combination on December 23, 2021, Fathom reported a net loss of $1.7 million compared to a net loss of $5.0 for the same period in 2020. For the year ended December 31, 2021, the adjusted net loss of $5.4 million compared to an adjusted net loss of $4.2 million for the same period in 2020.

Adjusted EBITDA for the fourth quarter of 2021 increased to $10.5 million from $1.5 million for the same period in 2020 primarily due to higher volumes stemming from acquisition-related activity. The Adjusted EBITDA margin increased to 23.8% in the quarter from 7.9% in the fourth quarter of 2020.

For the year ended December 31, 2021, Adjusted EBITDA and Adjusted EBITDA margin were $34.4 million and 22.6%, respectively, compared to $11.2 million and 18.3%, respectively, for the same period in 2020.

Full Year 2022 Outlook

For the full year 2022, Fathom expects reported revenue to range between $182 million and $192 million, representing a year-over-year increase of approximately 23% at the midpoint. The company also expects Adjusted EBITDA to range between $40 million and $45 million, representing a year-over-year increase of approximately 26% at the midpoint and an implied Adjusted EBITDA margin of 22.0% to 23.4%. This outlook, as of March 4, 2022, reflects management’s current projections and excludes the impact of any potential new acquisitions.

Conference Call

Fathom will host a conference call on Friday, March 4, 2022 at 8:30 am Eastern Time. The dial-in number for callers in the U.S. is +1-844-200-6205 and the dial-in number for international callers is +1-929-526-1599. The access code for all callers is 830754. The conference call will be broadcast live over the Internet and include a slide presentation. To access the webcast and supporting materials, please visit the investor relations section of Fathom’s website at https://investors.fathommfg.com.

A replay of the conference call can be accessed through March 11, 2022 by dialing +1-866-813-9403 (US) or +1-226-828-7578 (international), and then entering the access code 983238. The webcast will also be archived on Fathom’s website.

About Fathom Digital Manufacturing

Fathom is one of the largest on-demand digital manufacturing platforms in North America, serving the comprehensive product development and low- to mid-volume manufacturing needs of some of the largest and most innovative companies in the world. With more than 25 unique manufacturing processes and a national footprint with nearly 450,000 square feet of manufacturing capacity across 12 facilities, Fathom


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seamlessly blends in-house capabilities across plastic and metal additive technologies, CNC machining, injection molding & tooling, sheet metal fabrication, and design and engineering. With more than 35 years of industry experience, Fathom is at the forefront of the Industry 4.0 digital manufacturing revolution, serving clients in the technology, defense, aerospace, medical, automotive and IOT sectors. Fathom’s certifications include: ITAR Registered, ISO 9001:2015 Design Certified, ISO 9001:2015, ISO 13485:2016, AS9100:2016, and NIST 800-171. To learn more, visit https://fathommfg.com/.

Forward-Looking Statements

Certain statements made in this press release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “estimates,” “projects,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “would,” “should,” “future,” “propose,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of Fathom Digital Manufacturing Corporation (“Fathom”) that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: the inability to recognize the anticipated benefits of our business combination with Altimar Acquisition Corp. II (“Altimar”); changes in general economic conditions, including as a result of the COVID-19 pandemic; the outcome of litigation related to or arising out of the business combination, or any adverse developments therein or delays or costs resulting therefrom; the ability to meet the New York Stock Exchange’s listing standards following the consummation of the business combination; costs related to the business combination and additional factors discussed in Altimar’s final prospectus/proxy statement filed with the Securities and Exchange Commission (the “SEC”) on December 3, 2021 (the “Proxy Statement/Prospectus”) and the documents of Altimar and Fathom filed, or to be filed, with the SEC. If any of the risks described above materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by our forward-looking statements. There may be additional risks that Fathom does not presently know or that Fathom currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Fathom’s expectations, plans or forecasts of future events and views as of the date of this presentation. Although Fathom may elect to update these forward-looking statements at some point in the future, Fathom specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Fathom’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Non-GAAP Financial Information

This press release includes Adjusted Net Income and Adjusted EBITDA, which are non-GAAP financial measures that we use to supplement our results presented in accordance with U.S. GAAP. We believe Adjusted Net Income and Adjusted EBITDA are useful in evaluating our operating performance, as they are similar to measures reported by our public competitors and regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Adjusted Net Income and Adjusted EBITDA are not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

We define and calculate Adjusted Net Income as net loss before the impact of any increase or decrease in the estimated fair value of the Company’s warrants or earnout shares. We define and calculate Adjusted EBITDA as net losses before the impact of interest income or expense, income tax expense and depreciation and amortization, and further adjusted for the following items: stock-based compensation, transaction-related costs, and certain other non-cash and non-core items, as described in the reconciliation included in the appendix to this press release. Adjusted EBITDA margin represents Adjusted EBITDA divided by total revenue. We include these non-GAAP financial measures because they are used by management to evaluate Fathom’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Adjusted EBITDA excludes certain expenses that are required in accordance with U.S. GAAP because they are non-recurring (for example, in the case of transaction-related costs), non-cash (for example, in the case of depreciation and amortization, stock-based compensation) or are not related to our underlying business performance (for example, in the case of interest income and expense).

 


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Information reconciling forward-looking Adjusted EBITDA to GAAP financial measures is unavailable to Fathom without unreasonable effort. The company is not able to provide reconciliations of forward-looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Fathom’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to Fathom without unreasonable effort. Fathom provides a range for its Adjusted EBITDA forecast that it believes will be achieved, however it cannot accurately predict all the components of the Adjusted EBITDA calculation. Fathom provides an Adjusted EBITDA forecast because it believes that Adjusted EBITDA, when viewed with the company’s results under GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity.

As described in the Proxy Statement/Prospectus, during 2020 Fathom completed the acquisitions of Incodema Holdings, Inc., Newchem, Inc., GPI Prototype and Manufacturing Services, LLC, Dahlquist Machine, Inc., Majestic Metals, LLC, and Mark Two Engineering, Inc. (the “2020 Acquisitions”). During 2021 we completed the acquisitions of Summit Tooling, Inc., Summit Plastics, LLC, Centex Machine and Welding, Inc., Laser Manufacturing, Inc. and Screenshot Precisions, LLC d/b/a Micropulse West and Precisions Process Corp. (the “2021 Acquisitions”). Pro forma revenue gives pro forma effect to the 2020 Acquisitions and 2021 Acquisitions, as though such transactions occurred on January 1, 2020.

Financial Disclosure Disclaimer

Fathom has not yet completed its reporting process for the three and twelve months ended December 31, 2021. Full financial statements for these periods will be filed on or before March 31, 2022. The preliminary unaudited results presented herein are based on Fathom’s reasonable estimates and the information available at this time. The amounts reported herein are subject to various adjustments that are still under review, including potential adjustments relating to changes in the estimated fair value of warrants and earnout shares, purchase accounting and provision for income taxes. Such adjustments may be material and could impact the results reported herein.

Contact:

Michael Cimini

Director, Investor Relations

Fathom Digital Manufacturing

(262) 563-5575

michael.cimini@fathommfg.com


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Q4 2021 U.S GAAP Income Statement (preliminary unaudited)

($ in thousands)

 

     Three Months Ended December 31,  
     2021     2020  

Net Sales

     44,330       19,040  

Cost of Revenue1

     26,290       10,178  
  

 

 

   

 

 

 

Gross Profit

     18,040       8,862  

Operating expenses

    

Selling, general, and administrative (SG&A)1

     12,276       8,713  

Depreciation and amortization

     3,309       2,028  
  

 

 

   

 

 

 

Total operating expenses

     15,585       10,741  
  

 

 

   

 

 

 

Operating income (loss)

     2,455       (1,879
  

 

 

   

 

 

 

Interest expense

     3,536       1,330  

Other expense (income)

     9,387       3,811  

Other income

     (30,985     (162
  

 

 

   

 

 

 

Total other expense, net

     (18,062     4,979  
  

 

 

   

 

 

 

Net income (loss) before income tax

     20,517       (6,858

Provision for income tax (benefit)

     (464  
  

 

 

   

 

 

 

Net income (loss)

     20,981       (6,858
  

 

 

   

 

 

 

Net income (loss) attributable to noncontrolling interest

     13,092       —    
  

 

 

   

 

 

 

Net income (loss) attributable to Fathom Digital Manufacturing Corporation

     7,889       (6,858
  

 

 

   

 

 

 

 

1

Fathom reclassified certain historically reported expenses within the statement of operations to reflect go-forward policy. Specifically, cost of revenue included a reclassification of certain expenses equal to 4.4% and 0.5% of revenue for the three months ended December 31, 2021, and December 31, 2020, respectively. Additionally, SG&A included a reclassification of certain expenses equal to 1.8% and 3.4% of revenue for the three months ended December 31, 2021, and December 31, 2020, respectively. Prior to the Company’s ownership of applicable acquired entities, these expenses were recorded inconsistently. The accounting reclassification had no impact on net income (loss).


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Full Year 2021 US GAAP Income Statement (preliminary unaudited)

($ in thousands)

 

     Year Ended December 31,  
     2021     2020  

Net Sales

     152,196       61,240  

Cost of Revenue1

     92,388       33,064  
  

 

 

   

 

 

 

Gross Profit

     59,808       28,176  

Operating expenses

    

Selling, general, and administrative (SG&A)1

     39,490       24,642  

Depreciation and amortization

     10,606       4,672  
  

 

 

   

 

 

 

Total operating expenses

     50,096       29,314  
  

 

 

   

 

 

 

Operating income (loss)

     9,712       (1,138
  

 

 

   

 

 

 

Interest expense

     12,318       3,635  

Other expense

     14,846       2,208  

Other expense (income)

     (30,872     959  
  

 

 

   

 

 

 

Total other expense, net

     (3,707     6,802  
  

 

 

   

 

 

 

Net income (loss) before income tax

     13,419       (7,940

Provision for income tax

     400       23  
  

 

 

   

 

 

 

Net income (loss)

     13,019       (7,963
  

 

 

   

 

 

 

Net income (loss) attributable to noncontrolling interest

     8,124       —    
  

 

 

   

 

 

 

Net income (loss) attributable to Fathom Digital Manufacturing Corporation

     4,895       (7,963
  

 

 

   

 

 

 

 

1

Fathom reclassified certain historically reported expenses within the statement of operations to reflect go-forward policy. Specifically, cost of revenue included a reclassification of certain expenses equal to 6.2% and 0.5% of revenue for the twelve months ended December 31, 2021, and December 31, 2020, respectively. Additionally, SG&A included a reclassification of certain expenses equal to 3.4% net of revenue for both the twelve months ended December 31, 2021, and December 31, 2020. Prior to the Company’s ownership of applicable acquired entities, these expenses were recorded inconsistently. The accounting reclassification had no impact on net income (loss).


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Consolidated Balance Sheet (preliminary unaudited)

($ in thousands)

 

     December 31,
2021
    December 31,
2020
 

Assets

    

Cash and cash equivalents

   $ 20,099     $ 8,188  

Account receivables, net

     25,367       15,563  

Inventory

     10,539       6,325  

Prepaid expenses and other current assets

     1,980       2,598  
  

 

 

   

 

 

 

Total current assets

     57,985       32,674  

Investments held in trust account

     —         —    

Property and equipment, net

     42,377       26,386  

Intangible & other

     249,575       83,466  

Goodwill

     1,242,482       63,215  

Other non-current assets

     9,813       1,038  
  

 

 

   

 

 

 

Total assets

   $ 1,602,232     $ 206,779  
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Accounts payable

   $ 9,409     $ 4,404  

Accrued expenses

     4,391       4,181  

Other current liabilities

     4,698       2,778  

Contingent consideration

     2,750       4,066  

Current portion of debt

     30,096       2,853  
  

 

 

   

 

 

 

Total current liabilities

     51,345       18,282  

Long-term debt, net

     120,913       90,486  

Long-term contingent consideration

     65,150       7,373  

Deferred tax liability

     —         —    

Founders share liability

     9,400       —    

Other non-current liabilities

     1,788       514  

Warrant liability

     16,608       —    

Payable to related parties pursuant to tax receivable agreement

     4,600       —    
  

 

 

   

 

 

 

Total liabilities

   $ 269,804     $ 116,655  
  

 

 

   

 

 

 

Contingently Redeemable Preferred Equity

    

Class A Contingently Redeemable Preferred Units; $100 par value, authorized 1,167,418 units, issued and outstanding and 1,167,418 units as of December 31, 2021 and 2020, respectively

   $ —       $ 54,105  
  

 

 

   

 

 

 

Equity:

    

Class A common stock

     5       35,869  

Class B common stock

     8       14,450  

Additional paid-in capital

     491,050       —    

Accumulated other comprehensive loss

     —         (68

Accumulated deficit

     (1,585     (14,232

Non-controlling interest in subsidiaries

     842,950       —    
  

 

 

   

 

 

 

Total stockholders’ equity

     1,332,428       36,019  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 1,602,232     $ 206,779  
  

 

 

   

 

 

 


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Q4 2021 Revenue by Product Line (preliminary unaudited)

 

     Reported Revenue for Three Months Ended  
($ in thousands)    12/31/2021      Percentage     12/31/2020      Percentage     $ Change  

Additive manufacturing

   $ 4,514        10.2   $ 4,320        22.7   $ 194  

Injection molding

   $ 9,032        20.4   $ 4,905        25.8   $ 4,127  

CNC machining

   $ 14,196        32.0   $ 2,484        13.0   $ 11,712  

Precision sheet metal

   $ 13,855        31.3   $ 5,819        30.6   $ 8,036  

Other revenue

   $ 2,733        6.2   $ 1,512        7.9   $ 1,173  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 44,330        100.0   $ 19,040        100.0   $ 25,241  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Full Year 2021 Revenue by Product Line (preliminary unaudited)

 

     Reported Revenue for Twelve Months Ended  
($ in thousands)    12/31/2021      Percentage     12/31/2020      Percentage     $ Change  

Additive manufacturing

   $ 17,830        11.7   $ 17,075        27.9   $ 755  

Injection molding

   $ 28,892        19.0   $ 17,904        29.2   $ 10,988  

CNC machining

   $ 43,149        28.4   $ 10,380        16.9   $ 32,769  

Precision sheet metal

   $ 53,445        35.1   $ 10,166        16.6   $ 43,279  

Other revenue

   $ 8,880        5.8   $ 5,715        9.3   $ 3,166  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

   $ 152,196        100.0   $ 61,240        100.0   $ 90,957  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Pro Forma Revenue Calculation (preliminary unaudited)

 

($ in thousands)

   Q4 2021      Q4 2020      Full Year 2021      Full Year 2020  

GAAP reported revenue

   $ 44,330      $ 19,040      $ 152,196      $ 61,240  
  

 

 

    

 

 

    

 

 

    

 

 

 

2020 Acquisitions adjusted revenue1

     —          9,328        —          49,294  

2021 Acquisitions adjusted revenue2

     —          9,087        10,380        38,866  
  

 

 

    

 

 

    

 

 

    

 

 

 

Pro forma revenue

   $ 44,330      $ 37,455      $ 162,576      $ 149,400  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

1

As described in the Proxy Statement/Prospectus, during 2020 Fathom completed the acquisitions of Incodema Holdings, Inc., Newchem, Inc., GPI Prototype and Manufacturing Services, LLC, Dahlquist Machine, Inc., Majestic Metals, LLC, and Mark Two Engineering, Inc. (the “2020 Acquisitions”). During 2021, we completed the acquisitions of Summit Tooling, Inc., Summit Plastics, LLC, Centex Machine and Welding, Inc., Laser Manufacturing, Inc. and Screenshot Precisions, LLC d/b/a Micropulse West and Precisions Process Corp. (the “2021 Acquisitions”). Information gives pro forma effect to the 2020 Acquisitions, as though such transactions occurred on January 1, 2020.

2

Information gives pro forma effect the 2021 Acquisitions, as though such transactions occurred on January 1, 2020.


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Reconciliation of GAAP Net Income to Adjusted Net Loss (preliminary unaudited)

 

($ in thousands)

   Q4 2021      Q4 2020      FY 2021      FY 2020  

Net income (loss)

   $ 20,981      ($ 6,858    $ 13,019      $ (7,963
  

 

 

    

 

 

    

 

 

    

 

 

 

Acquisition expenses1

     —          1,840        4,236        3,765  

Transaction costs

     8,000        —          8,000        —    

Change in fair value of tax receivable agreement (TRA)

     300        —          300        —    

Change in fair value of warrant liability2

     (4,103      —          (4,103      —    

Change in fair value of earnout share payable2

     (26,860      —          (26,860      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income (loss)

   ($ 1,682    ($ 5,018    ($ 5,408    ($ 4,198
  

 

 

    

 

 

    

 

 

    

 

 

 

 

1

Represents expenses incurred related to business acquisitions; 2 Represents the income statement impacts from the change in fair value related to both the earnout liability and the warrant liability associated with the business combination completed on December 23, 2021.

Reconciliation of GAAP Net Income to Adjusted EBITDA (preliminary unaudited)

 

($ in thousands)

   Q4 2021      Q4 2020      FY 2021      FY 2020  

Net income (loss)

   $ 20,981      ($ 6,858    $ 13,019      $ (7,963
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation and amortization

     4,428        2,399        16,452        7,390  

Interest expense, net

     3,536        1,330        12,318        3,635  

Income tax expense

     (465      —          400        23  

Contingent consideration1

     —          1,055        (1,120      1,055  

Acquisition expenses2

     —          1,840        4,236        3,765  

Loss on extinguishment of debt3

     996        —          4,491        —    

Transaction costs

     8,000        —          8,000        —    

Change in fair value of tax receivable agreement (TRA)

     300        —          300        —    

Change in fair value of warrant liability4

     (4,103      —          (4,103      —    

Change in fair value of earnout share payable4

     (26,860      —          (26,860      —    

Non-recurring and non-cash costs5

     3,721        1,744        7,220        3,289  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

   $ 10,534      $ 1,510      $ 34,353      $ 11,194  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

1

Represents the change in fair value of contingent consideration payable to former owners of acquired businesses;

2 

Represents expenses incurred related to business acquisitions; 3 Represents amounts paid to refinance debt in April of 2021; 4 Represents the impacts from the change in fair value related to both the earnout liability and the warrant liability associated with the business combination completed on December 23, 2021; 5 Represents adjustments for other non-recurring, non-operating, and non-cash costs related primarily to integration costs for new acquisitions, severance, and charges for the increase of fair value of inventory related to acquisitions, and management fees paid to Fathom’s principal owner.

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