As of March 31, 2021, cash and cash equivalents of $53.0 million

During Q1, repurchased additional bonds with a face value of $26.3 million for a total purchase price of $8.4 million, leaving $320.3 million of senior notes outstanding

Revenue, net loss and adjusted EBITDA^A of $66.6 million, $(8.2) million and $(3.4) million, respectively, for the first quarter of 2021

First quarter basic loss per share of $(0.28)

Revenues

Cost and expenses

Cost of revenues (exclusive of depreciation and amortization shown separately below)

General and administrative expenses

Depreciation

Amortization of intangibles

Gain on revaluation of contingent liabilities

(Gain) loss on sale of property and equipment

Loss from operations

Interest expense

Interest income

Gain on extinguishment of debt

Other income

Loss before income taxes

Provision (benefit) for income taxes

Net loss

Loss per share

Basic

Diluted

Weighted average shares outstanding

Basic

Diluted

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments, net of tax of $0 and $0

Total other comprehensive income, net of tax

Total comprehensive loss

Assets

Current assets

Cash and cash equivalents

Accounts receivable, net

Income taxes receivable

Inventories, net

Prepaid expenses and other current assets

Total current assets

Property and equipment, net

Operating lease right-of-use assets, net

Finance lease right-of-use assets, net

Intangible assets, net

Other long-term assets

Total assets

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

Accrued expenses

Current portion of long-term debt

Current portion of operating lease obligations

Current portion of finance lease obligations

Total current liabilities

Long-term liabilities

Long-term debt

Long-term operating lease obligations

Long-term finance lease obligations

Other long-term liabilities

Total liabilities

Stockholders’ equity

Common stock (120,000,000 shares authorized at $.01 par value; 31,517,982 and 31,557,809 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively)

Additional paid-in capital

Accumulated other comprehensive loss

Accumulated deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

Cash flows from operating activities

Net loss

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation

Amortization of intangibles

Amortization of deferred financing costs

Amortization of operating leases

Provision for doubtful accounts

Provision for inventory obsolescence

Impairment of operating lease

Stock-based compensation expense

Gain on extinguishment of debt

(Gain) loss on sale of property and equipment

Gain on revaluation of contingent liabilities

Changes in operating assets and liabilities, net of effects from acquisitions

Accounts receivable, net

Inventories, net

Prepaid expenses and other current assets

Accounts payable and accrued expenses

Income taxes receivable/payable

Other assets and liabilities

Net cash used in operating activities

Cash flows from investing activities

Proceeds from sales of property and equipment

Proceeds from property and equipment casualty losses

Purchases of property and equipment

Net cash used in investing activities

Cash flows from financing activities

Payments on Magnum Promissory Notes

Repurchases of senior notes

Payments on finance leases

Payments of contingent liabilities

Vesting of restricted stock

Net cash used in financing activities

Impact of foreign currency exchange on cash

Net decrease in cash and cash equivalents

Cash and cash equivalents

Beginning of period

End of period

Calculation of gross loss

Revenues

Cost of revenues (exclusive of depreciation and amortization shown separately below)

Depreciation (related to cost of revenues)

Amortization of intangibles

Gross loss

Adjusted gross profit (loss) reconciliation

Gross loss

Depreciation (related to cost of revenues)

Amortization of intangibles

Adjusted gross profit (loss)

EBITDA reconciliation:

Net loss

Interest expense

Interest income

Provision (benefit) for income taxes

Depreciation

Amortization of intangibles

EBITDA

Gain on extinguishment of debt

Gain on revaluation of contingent liabilities (1)

Restructuring charges

Stock-based compensation expense

Gain (loss) on sale of property and equipment

Legal fees and settlements (2)

Adjusted EBITDA

Amounts relate to the revaluation of contingent liabilities associated with the Company’s 2018 acquisitions

Amounts represent fees and legal settlements associated with legal proceedings brought pursuant to the Fair Labor Standards Act and/or similar state laws.

Net loss

Add back:

Interest expense

Interest income

Restructuring charges

Gain on extinguishment of debt

After-tax net operating loss

Total capital as of prior period-end:

Total stockholders’ equity

Total debt

Less: cash and cash equivalents

Total capital as of prior period-end:

Total capital as of period-end:

Total stockholders’ equity

Total debt

Less: cash and cash equivalents

Total capital as of period-end:

Average total capital

ROIC

Reconciliation of adjusted net loss:

Net loss

Add back:

Gain on extinguishment of debt (a)

Restructuring charges

Adjusted net loss

Weighted average shares

Weighted average shares outstanding for basic

and adjusted basic earnings (loss) per share

Loss per share:

Basic loss per share

Adjusted basic loss per share

Amount represents the difference between the repurchase price and the carrying amount of senior notes repurchased during the respective period.

Adjusted EBITDA is defined as net income (loss) before interest, taxes, and depreciation and amortization, further adjusted for (i) goodwill, intangible asset, and/or property and equipment impairment charges, (ii) transaction and integration costs related to acquisitions, (iii) loss or gain on revaluation of contingent liabilities, (iv) loss or gain on the extinguishment of debt, (v) loss or gain on the sale of subsidiaries, (vi) restructuring charges, (vii) stock-based compensation expense, (viii) loss or gain on sale of property and equipment, and (ix) other expenses or charges to exclude certain items which we believe are not reflective of ongoing performance of our business, such as legal expenses and settlement costs related to litigation outside the ordinary course of business. Management believes Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure and helps identify underlying trends in our operations that could otherwise be distorted by the effect of the impairments, acquisitions and dispositions and costs that are not reflective of the ongoing performance of our business.

Adjusted Net Income (Loss) is defined as net income (loss) adjusted for (i) goodwill, intangible asset, and/or property and equipment impairment charges, (ii) transaction and integration costs related to acquisitions, (iii) restructuring charges, (iv) loss or gain on the sale of subsidiaries, (v) loss or gain on the extinguishment of debt and (vi) the tax impact of such adjustments. Management believes Adjusted Net Income (Loss) is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period and helps identify underlying trends in our operations that could otherwise be distorted by the effect of the impairments and acquisitions.

Adjusted Basic Earnings (Loss) Per Share is defined as adjusted net income (loss), divided by weighted average basic shares outstanding. Management believes Adjusted Basic Earnings (Loss) Per Share is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period and help identify underlying trends in our operations that could otherwise be distorted by the effect of the impairments and acquisitions.

Adjusted Gross Profit (Loss) is defined as revenues less cost of revenues excluding depreciation and amortization. This measure differs from the GAAP definition of gross profit (loss) because we do not include the impact of depreciation and amortization, which represent non-cash expenses. Our management uses adjusted gross profit (loss) to evaluate operating performance. We prepare adjusted gross profit (loss) to eliminate the impact of depreciation and amortization because we do not consider depreciation and amortization indicative of our core operating performance.

Return on Invested Capital (“ROIC”) is defined as after-tax net operating profit (loss), divided by average total capital. We define after-tax net operating profit (loss) as net income (loss) plus (i) goodwill, intangible asset, and/or property and equipment impairment charges, (ii) transaction and integration costs related to acquisitions, (iii) interest expense (income), (iv) restructuring charges, (v) loss (gain) on the sale of subsidiaries, (vi) loss (gain) on extinguishment of debt, and (vii) the provision (benefit) for deferred income taxes. We define total capital as book value of equity plus the book value of debt less balance sheet cash and cash equivalents. We compute the average of the current and prior period-end total capital for use in this analysis. Management believes ROIC provides useful information because it quantifies how well we generate operating income relative to the capital we have invested in our business and illustrates the profitability of a business or project taking into account the capital invested. Management uses ROIC to assist them in making capital resource allocation decisions and in evaluating business performance.