RAYMOND JAMES & ASSOCIATES 40 TH ANNUAL INSTITUTIONAL INVESTORS CONFERENCE

Similar documents
Waste Management, Inc.

Waste Management, Inc. Raymond James Industrial & Environmental Services Conference. March 4, 2014

Waste Management Announces First Quarter Earnings

Republic Services Investor Presentation. February 2019

Waste Management Announces First Quarter Earnings

Waste Management, Inc. BofA Merrill Lynch Global Industries Conference December 16, 2010

Waste Management Announces Fourth Quarter and Full-Year 2012 Earnings

Waste Management Announces Fourth Quarter and Full-Year 2013 Earnings

Waste Management, Inc. Morgan Stanley Business and Education Services Conference September 23, 2010

Waste Management Announces Third Quarter Earnings

Investor Presentation June 2017

First Quarter Financial Highlights:

Quarterly Investor Presentation. First Quarter 2017

Waste Management, Inc. Condensed Consolidated Statements of Operations (In Millions, Except Per Share Amounts) (Unaudited)

Waste Management, Inc. Condensed Consolidated Statements of Operations (In Millions, Except Per Share Amounts) (Unaudited)

Investor Presentation January 2018

2017 Robert W. Baird Global Industrial Conference

Company to Resume Share Repurchases Given Improved Visibility to Full Year Results

Earnings Presentation October 25, 2018

Investor Overview Presentation. August 2018

Forward-looking Statement Disclosure

Waste Management Announces Second Quarter 2010 Earnings Second Quarter Revenue Increases Seven Percent Yield and Volume Show Improving Trends

Stifel 2017 Industrials Conference

4Q18 EARNINGS. February NASDAQ: GRPN /

Bank of America Merrill Lynch Global Industrials Conference 2018 March 2018

ADVANCED DISPOSAL ANNOUNCES FOURTH QUARTER RESULTS. Strong cash flow generation and disciplined pricing continues

4Q2018 Earnings Presentation

Exhibit 99.1 FOR IMMEDIATE RELEASE

First Quarter 2017 Results & Outlook for May 2, 2017

Valmont Industries, Inc. Investor Presentation January 2019

Our Transformation Continues. March 21, 2018

ADVANCED DISPOSAL ANNOUNCES FIRST QUARTER RESULTS Operating income increases $8.7 million and net income improves $9.1 million versus prior year

1Q18 EARNINGS MAY 2018

2017 First Quarter May 3, 2017

Service First. Safety Always. Gabelli & Company Waste Symposium March 2018

Our Transformation Continues Sidoti NDR May 29-30, 2018

Waste Management Announces Third Quarter 2010 Earnings. Third Quarter Revenue Increases Seven Percent. Company Reaffirms 2010 Free Cash Flow Guidance

1Q 2016 Earnings Call Presentation

Waste Management Announces Second Quarter 2008 Earnings. July 29, :31 AM ET

2018 EPG Conference. May 22, 2018

Waste Management Announces Second Quarter 2006 Earnings. Income from Operations as a Percent of Revenue Continues Expansion Trend

Waste Management Announces First Quarter 2007 Earnings. Earnings Per Diluted Share Increase 24% Company Raises Full-Year 2007 Earnings Guidance

Waste Management Announces First Quarter 2010 Earnings. First Quarter Revenue Increases 4.4% Company Notes Volume Trends are Improving

Raymond James 37 th Annual Institutional Investors Conference. March 8, 2016

2015 Fourth-Quarter and Fiscal Year Performance

Fourth Quarter 2018 Earnings Conference Call

Investor Presentation

Second Quarter 2017 Earnings Call Presentation August 3, 2017

COVANTA HOLDING CORPORATION REPORTS 2018 FOURTH QUARTER AND FULL YEAR RESULTS AND PROVIDES 2019 GUIDANCE

2016 Fourth Quarter February 22, 2017

Advanced Disposal Services, Inc. (Exact name of registrant as specified in its charter)

XYLEM INC. Q EARNINGS RELEASE FEBRUARY 1, 2018

Where Intelligence Meets Infrastructure

Forward-looking Statement Disclosure

2017 Second Quarter August 3, 2017

Q Conference Call. August 2, 2017

COVANTA HOLDING CORPORATION REPORTS 2018 THIRD QUARTER RESULTS AND REAFFIRMS 2018 GUIDANCE

Credit Suisse 6 th Annual Industrials Conference November 2018

Investor Deck December 2018

2018 Revenues Decreased 0.9%, or 0.7% on a Constant Currency Basis, in Line with Guidance

CC Media Holdings, Inc. Reports Second Quarter 2009 Results

Rogers Corporation Q Earnings Call August 9, 2016

FOR IMMEDIATE RELEASE. Waste Management Announces Second Quarter 2005 Earnings

Fourth-Quarter 2017 Results. January 31, 2018

Third Quarter 2018 Earnings Conference Call

Rogers Corporation Q Earnings Call Nov. 3, 2016

BMC STOCK HOLDINGS, INC. Second Quarter 2018 Earnings Presentation July 30, BMC. All Rights Reserved.

2018 Second Quarter August 8, 2018

2Q2018 Earnings Presentation

Sysco 4Q & FY14 Earnings Results. August 11, 2014

3Q2018 Earnings Presentation

Xylem Agrees to Acquire Sensus to Broaden Portfolio and Enhance Growth Platform AUGUST 15, 2016

DANA HOLDING CORPORATION Quarterly Financial Information and Reconciliations of Non-GAAP Financial Measures

Driving Profitable Growth

WestRock Reports Strong Fiscal 2018 Second Quarter Results

FINANCIAL OVERVIEW AL M I S T Y S Y N

Fourth Quarter and Full Year Earnings Call March 1, 2019

Fourth-Quarter and Full-Year 2016 Financial Results. Mark Costa, Board Chair & CEO Curt Espeland, EVP & CFO January 27, 2017

CJS Investor Conference 19 th Annual New Ideas For The New Year January 9, 2019 STEPHEN G. KANIEWSKI PRESIDENT & CHIEF EXECUTIVE OFFICER

Presented by: David Little Chairman, President & CEO. Kent Yee Senior Vice President & CFO NASDAQ: DXPE AUGUST 2017

Earnings Presentation 4th Quarter, 2017

Q Investor Highlights. August 8, 2018

Investors: Michael D. Neese VP, Investor Relations (804)

Sysco Fiscal 4Q15 and Fiscal 2015 Financial Results. August 10, 2015

Q Supplemental Financial Information. August 2, 2018

Science Applications International Corporation (SAIC) Third Quarter Fiscal Year 2018 Earnings Call. December 7, 2017

Copyright 2018 CPI Card Group. Fourth Quarter & FY 2017 Earnings Conference Call March 12, 2018

Waste Management Announces Fourth Quarter and Full Year 2009 Earnings Capital Allocation Plan to Return up to $1.3 Billion to Shareholders

Waste Management Announces First Quarter 2005 Earnings and Reaffirms Guidance on Full Year Financial Projections

Waste Management Announces Second Quarter 2007 Earnings. Income from Operations as a Percent of Revenue Expands by over 200 Basis Points

Q3 FY17 Results August 3, 2017

Q Conference Call. November 2, 2018

4 th Quarter & Year End 2007 Results February 14, 2008

Where. ADS Waste Holdings, Inc. WasteExpo Investor Summit June 1, 2015

September 11, Corporate Update. Rich Tobin, President & Chief Executive Officer

Third Quarter 2018 Earnings Call

1Q2018 Earnings Presentation

LSC COMMUNICATIONS Fourth Quarter Results. February 23, 2017

The Manitowoc Company

Non-GAAP Definitions Masimo

Transcription:

March 5, 2019 Waste Management, Inc. RAYMOND JAMES & ASSOCIATES 40 TH ANNUAL INSTITUTIONAL INVESTORS CONFERENCE

Cautionary Statement Certain statements provided in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forwardlooking statements are often identified by the words, will, may, should, continue, anticipate, believe, expect, plan, forecast, project, estimate, intend and words of similar nature, and such statements generally contain projections about accounting and finances; strategy, plans and objectives for the future and outcomes from such strategic plans and objectives; projections, estimates, or assumptions relating to our performance; results of investments in new technologies; implementation of innovation and efficiency projects; predictions or assumptions about future trends or conditions in our industry; or our opinions, views or beliefs about the effects of current or future events, circumstances or performance. You should view these statements with caution. These statements are not guarantees of future performance, circumstances or events. They are based on the facts and circumstances known to us as of the date the statements are made. All phases of our business are subject to uncertainties, risks and other influences, many of which we do not control. Any of these factors, either alone or taken together, could have a material adverse effect on us and could cause actual results to be materially different from those set forth in such forward-looking statement. We assume no obligation to update any forward-looking statement, including financial estimates, whether as a result of future events, circumstances or developments or otherwise. Some of these risks and uncertainties are described in greater detail in Waste Management s Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission. 2

Non-GAAP Financial Measures This presentation contains non-gaap financial measures under Regulation G of the Securities Exchange Act of 1934, as amended. The Company believes that these non-gaap financial measures are useful to investors to assess the Company s performance, results of operations and cash available for the Company s capital allocation program. These non-gaap measures are meant to supplement, not replace, comparable GAAP measures, and such non-gaap measures may be different from similarly titled measures used by other companies. A reconciliation of these non-gaap financial measures to their most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles can be found in the Appendix at the end of this presentation and under the Investor Relations tab on our website: www.wm.com. 3

Waste Management Investment Thesis INDUSTRY LEADERSHIP STRATEGIC FOCUS TO DRIVE FINANCIAL AND BUSINESS PROFILE PROVIDES Largest and most diverse asset and customer base Unmatched return on invested capital Experienced and committed management team and employees A customer-centric culture Pricing discipline Volume growth in our highest return businesses Continuous improvement to reduce costs and expand margins Earnings and free cash flow growth Recession-resilient revenues Strong and consistent free cash flow to fund balanced return of cash to shareholders Strong balance sheet that provides strategic flexibility 4

Waste Management At-A-Glance 1 43.7K employees OPERATIONS 314 transfer stations 20M customers served 7,621 123 alternative fuel vehicles natural gas fueling stations ENERGY 130 landfill gas-to-energy facilities 44 construction and demolition recycling facilities 14 other facilities 28 commercial/ paper only recycling facilities 4 CORe facilities RECYCLING 2 dual stream recycling facilities 44 single stream recycling facilities 40 composting/chipping/ grinding facilities 5 $1.8B returned to shareholders 2018 FINANCIALS $3.6B cash from operations $14.9B total revenue $1.7B capital expenditures 1 As of and for the year ended December 31, 2018. Waste Management, Inc. is a holding company, and all operations are conducted by its subsidiaries. 247 active solid waste landfills LANDFILLS 5 active hazardous waste landfills

Geographic & Operational Diversification Largest and most diverse asset and customer base Unmatched return on invested capital Experienced and committed management team and employees A customer-centric culture Pricing discipline Volume growth in our highest return businesses Continuous improvement to reduce costs and expand margins Earnings and free cash flow growth Recession-resilient revenues Strong and consistent free cash flow to fund balanced return of cash to shareholders Strong balance sheet that provides strategic flexibility 6

Broad and Diverse Customer Base customers across the U.S. 2018 REVENUE MIX 7% 9% 2018 COLLECTION REVENUE MIX 4% 10% 29% 41% Waste Management s largest customer accounts for about 1% of revenue 20% 54% 26% Collection Commercial Long-standing customer relationships with significant contracted business Landfill Transfer Recycling Other Residential Industrial Other 7

Asset and Customer Base Produce Strong Earnings and Cash Flow customers across the US 16,000 2018 REVENUE ($=millions) 3,000 2018 ADJUSTED INCOME FROM OPS 1 ($=millions) 2018 NET CASH PROVIDED BY OPERATING ACTIVITIES ($=millions) 4,000 14,000 12,000 2,500 3,500 3,000 Waste 10,000 Management s largest customer 8,000 accounts for less than 2% of revenue 6,000 2,000 1,500 1,000 2,500 2,000 1,500 4,000 2,000 Long-standing customer - relationships with significant contracted business WM RSG WCN 500 - WM RSG WCN 1,000 500 - WM RSG WCN 1 In the case of WM, see the appendix at the end of this presentation for the reconciliation of this non-gaap financial measure to the most comparable GAAP measure. 8 Source: Company filings

WM Generates Industry s Best Return on Invested Capital 1 Returns Driven by Earnings Quality and Disciplined Investment customers across the US 16.0% 14.0% Waste Management s largest customer 12.0% accounts for less 11.8% than 2% of revenue 10.0% 12.3% 13.9% 8.0% 8.0% 7.7% Long-standing 6.0% customer relationships with significant 4.0% contracted business 6.2% 8.7% 6.9% 7.1% 2016 2017 2018 WM RSG WCN 1 In the case of WM, see the appendix at the end of this presentation for the reconciliation of this non-gaap financial measure to the most comparable GAAP measure. 9 Source: Company filings

Strategic Execution Our strategy, or how we compete, leverages our unique resources and assets. Successful execution of our strategic priorities will help us achieve our financial and non-financial goals. What we will deliver Waste Management s largest customer accounts for less than 2% of revenue Our unique resources Long-standing customer relationships with significant contracted business How we will compete People Operating: Customer Service, Culture, Diversity Financial: EPS, Operating EBITDA, and FCF Growth Asset Network Technology Growth Engine Focused Differentiation & Continuous Improvement 10

Disciplined Revenue Growth Serve Drive over sustainable, 20 million profitable customers revenue growth across the through US pricing competing for and securing attractive volumes We continue to focus on our disciplined pricing programs; however, we also focus on improving volumes through: 11 Waste Management s largest customer accounts for less Attractive volumes: than 2% of revenue Foster favorable competitive dynamics and positive market Long-standing conduct customer relationships Support our with pricing significant strategy contracted business Have accretive margins Improving our sales processes, especially for our SMB customers, to attract the right quality and quantity of new customers Expanding core customer reach, stickiness and differentiation through technology and e-commerce solutions Reducing current customer losses through improved processes, service quality and customer experience

Core Optimization and Cost Controls customers across the US Improve core operations, customer satisfaction and service reliability thereby minimizing customer defections Long-standing Achieve operating customer and SG&A cost reduction relationships goals from continued with significant efficiency focus contracted business We have maintained strong focus on costs over the last three years, and we intend We continue to continue to focus that focus on our and expand industry-leading it into other yield areas programs; of the business however, through: we also focus on improving volumes through: Continued reduction in collection operating costs from ongoing Service Delivery Optimization (SDO) Application of learnings from SDO deployment to fleet maintenance practices to enhance standardization (MSDO) Improved alignment between field operations and call centers Continuously raising our standard for customer service excellence 12

Using Technology to Improve Customer Service and to Reduce Costs customers CUSTOMER across the US SOLUTIONS Enhanced WM.com and mobile applications improve customer interactions and increase ease of doing business with WM Complete customer service channel of choice (self-service, chat, phone, etc.) DATA & ANALYTICS Customer interaction analytics to enable predictive customer solutions Enhanced pricing tools reduce churn resulting from pricing program Long-standing customer OPERATIONAL relationships with significant TECHNOLOGIES contracted business Integration of map, traffic and vehicle data to optimize routes Predictive maintenance and parts purchasing Piloting smart bins and containers 13

(US$ in millions) Financial Results Indicative of Strategic Execution Revenue ($ Billion) customers across the US $13.6 $14.5 $14.9 2016 2017 2018 IRG Yield Volume 3.3% 2.4% 2.1% 2.3% 1.4% 2.0% 2016 2017 2018 Defection Rate 11.1% 10.1% 9.1% 9.3% * 9.0% 2014 2015 2016 2017 2018 *Adjusted for transitioning of accounts related to the City of L.A. franchise contract 27.2% 27.7% 28.3% $3,707 $4,006 $4,216 2016 2017 2018 1 Operating EBITDA % Margin Execution of pricing, disciplined revenue growth, Long-standing efficiency and customer continuous relationships improvement with strategies significant contracted drove financial business results that exceeded expectations Operating EBITDA reaches an all-time high Operating EBITDA Margin highest we have seen since the merger in 1998 14 1 The company defines Operating EBITDA as income from operations before depreciation and amortization, and this measure has been adjusted to exclude certain items. See the appendix at the end of this presentation for reconciliation of this non-gaap financial measure.

(US$ in millions) Significant Cash Generated by Operations Supports Investment in the Business and Return of Cash to Shareholders $4,000 customers $3,500 across the US $3,000 $3,003 $3,180 $3,570 $2,500 $2,000 $1,500 $1,339 $1,509 $1,694 $1,000 $500 $0 $726 $750 $802 2016 2017 2018 Dividends Capex Operating Cash Flow 15

Committed to Growing Shareholder Returns Board of Directors Approves Increase in 2019 Planned Quarterly Dividends for 16th Consecutive Year, up 10.2%* customers across the US $2.50 $2.00 $1.50 $1.00 $0.75 $0.80 $0.88 $0.96 $1.08 $1.16 $1.26 $1.36 $1.42 $1.46 $1.50 $1.54 $1.64 $1.70 $1.86 $2.05 * $0.50 $- $0.01 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 16 * The Board of Directors approved a 10.2% increase in the future quarterly dividend rate to $0.5125 per share. Each future dividend must be separately declared by the Board of Directors.

Solid Financial Position Provides Strategic Flexibility Best-in-Class Credit Ratings S&P A- (stable) Moody s Baa1 (stable) Fitch BBB+ (stable) 2.8x 2.7x Net Debt / EBITDA 1 Committed to maintenance of strong investment grade credit ratings Access to capital markets Competitive advantage, particularly with municipal and large M&I customers Strategic flexibility 2.6x 2.5x 2.4x 2.3x 2.5x 2.4x 2.3x Cornerstones of WM credit rating include strong liquidity, modest leverage, a balanced debt maturity profile, and industry leadership 2.2x 2.1x 2.0x 2016 2017 2018 17 1 Measured based on the covenant as defined in the Company s revolving credit facility filed with the SEC. See appendix for reconciliation of this non-gaap financial measure.

SUMMARY 2018 was a record year Highest operating EBITDA Returned $1.8 billion to shareholders ROIC expanded 160 basis points 2019 expected to continue that success Expected 10.2% increase in dividends $1.5 billion share repurchase authorization

GET IN TOUCH WITH US Ed Egl eegl@wm.com 713.265.1656 (o) 713.725.7222 (c) Heather Miller hmiller3@wm.com 713.265.1507 (o) Twitter: @WM_Investor 19

Appendix Financial Information and Reconciliation of Non-GAAP Measures

Financial Highlights Amounts in millions, except margins Returns Driven by Earnings Quality 2018 and Disciplined 2017 2016 Investment customers across the US Revenue 1 $14,914 $14,485 $13,609 Operating costs $9,249 $9,021 $8,486 Waste Management s largest customer accounts for less than 2% of revenue Operating cost margin 62.0% 62.3% 62.4% SG&A $1,453 $1,468 $1,410 SG&A margin 9.7% 10.1% 10.4% Adjusted income from operations 2 $2,739 $2,630 $2,406 21 1 2018 revenue was impacted by the adoption of ASU 2014-09 associated with revenue recognition 2 The reconciliation of this non-gaap financial measure is provided on slide 23

Financial Highlights (Continued) Amounts in millions Returns Driven by Earnings Quality 2018 and Disciplined 2017 2016 Investment customers across the US Net cash provided by operations $3,570 $3,180 $3,003 Capital expenditures $1,694 $1,509 $1,339 Waste Management s largest customer accounts for less than 2% of revenue Free cash flow 1 $2,084 $1,770 $1,710 Acquisitions and investments $466 $200 $611 Long-standing customer relationships with significant contracted business Cash dividends $802 $750 $726 Common stock repurchases $1,004 $750 $725 22 1 The reconciliation of this non-gaap financial measure is provided on slide 24

Reconciliation of Non-GAAP Measures Adjusted Income from Operations Amounts in millions Returns Driven by Earnings Quality and Disciplined Investment customers across the US 2018 2017 2016 Income from operations (as reported) $2,789 $2,636 $2,296 Adjustments Waste Management s largest customer accounts for less than 2% of revenue (Income)/expense from divestitures, asset impairments and unusual items, net $(55) $(17) $108 Restructuring $2 - $2 Multiemployer pension withdrawal costs $3 $11 - Long-standing customer relationships with significant contracted business Adjusted income from operations 1 $2,739 $2,630 $2,406 1 Refer to the tables to the press release filed with our Form 8-K filed on February 14, 2019 for additional information. 23

Reconciliation of Non-GAAP Measures Operating EBITDA Amounts in millions, except margins customers across the US 2018 2017 2016 Returns Driven by Earnings Quality and Disciplined Investment Income from operations $2,789 $2,636 $2,296 Depreciation and amortization $1,477 $1,376 $1,301 Multiemployer pension withdrawal costs $3 $11 - Waste Management s largest customer accounts for less than 2% of revenue Restructuring $2 - - (Income) expense from divestitures, asset impairments and unusual items, net Long-standing customer relationships with significant contracted business $(55) $(17) $110 Adjusted Operating EBITDA $4,216 $4,006 $3,707 Revenue $14,914 $14,485 $13,609 Adjusted Operating EBITDA Margin 28.3% 27.7% 27.2% 24

Reconciliation of Non-GAAP Measures Adjusted Tax Expense Amounts in millions customers across the US 2018 2017 2016 Returns Driven by Earnings Quality and Disciplined Investment Provision for income taxes, as reported $453 $242 $642 Adjustments Tax benefits related to income tax audit settlements $33 - - Impact of Tax Cuts and Jobs Act $27 $529 - Waste Management s largest customer taxes accounts for less than 2% of revenue Tax benefits related to adjustment to deferred Expense from divestitures, asset impairments and unusual items, net Long-standing customer relationships with significant compensation contracted business $17 - - $(17) $(6) $37 Loss on early extinguishment of debt - $2 - Restructuring $1 - - Tax benefits related to equity-based - $32 - Multiemployer pension withdrawal costs $1 $4 - Adjusted provision for income taxes $515 $803 $679 25

Reconciliation of Non-GAAP Measures Free Cash Flow Amounts in millions Returns Driven by Earnings Quality 2018 and Disciplined 2017 Investment 2016 customers across the US Net cash provided by operations $3,570 $3,180 $3,003 Waste Management s largest customer accounts for less than 2% of revenue Capital expenditures $(1,694) $(1,509) $(1,339) Proceeds from divestitures of businesses (net of cash divested) and other sale of assets Long-standing customer relationships with significant contracted business $208 $99 $43 Free cash flow $2,084 $1,770 $1,710 26

Reconciliation of Non-GAAP Measures Return on Invested Capital Amounts in millions, except margins Returns Driven by Earnings Quality and Disciplined Investment customers across the US Long-standing customer relationships with significant contracted business 2018 2017 2016 Adjusted income from operations 1 $2,739 $2,630 $2,406 Less: Adjusted provision for income tax 1 $(515) $(803) $(679) After-tax adjusted income from operations $2,224 $1,827 $1,727 Current portion of long-term debt 2 $691 $594 $497 Long-term debt (less current portion) 2 $9,258 $8,640 $8,927 Noncontrolling interests 2 $7 $22 $22 Stockholders equity 2 $6,153 $5,575 $5,289 Less: Cash 2 $(61) $(30) $(51) Total Invested Capital 2 $16,048 $14,801 $14,684 Return on Invested Capital 13.9% 12.3% 11.8% 27 1 See remainder of this Appendix for the reconciliation of these non-gaap financial measures to the most comparable GAAP measures. 2 Average of previous four quarters.

Reconciliation of Non-GAAP Measures Net Debt / EBITDA Amounts in millions customers across the US Waste Management s largest customer accounts for less than 2% of revenue 2018 2017 2016 Returns Driven by Earnings Quality and Disciplined Investment Balance sheet debt $10.026 $9,491 $9,310 Adjustments for accounting for fair value hedges and discounts $52 $56 $47 Guarantees of indebtedness of others $4 $5 $6 Numerator 1 $10,082 $9,552 $9,363 Operating EBITDA 2 $4,216 $4,006 $3,707 Less: Restructuring cost - - $4 Less: Net income attributable to noncontrolling interests - - $(2) Long-standing customer relationships with significant contracted business Other $92 $50 $(10) Denominator - EBITDA 1 $4,308 $4,056 $3,699 Net Debt / EBITDA 1 2.3x 2.4x 2.5x 28 1 The Numerator and Denominator used for this calculation are based on defined terms for this covenant within the Company's revolving credit facility. 2 See Slide 24 for a reconciliation of this non-gaap financial measure.