Company: LGN
Filing Date: 2025-05-14
Form Type: DRS/A
Source: 0000950123-25-005247
Chunk: 131

Company: Legence Corp.
Filing Date: 2025-05-14
Form: DRS/A
Chunk 131
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 supplemental information to investors and analysts as they evaluate our performance. Self-Perform Contribution is a financial measure that management historically has used and continues to use to evaluate our financial performance by analyzing the fees for services that are performed or managed by our workforce separately from the work that is performed by our subcontractors. Self-Perform Contribution is defined as revenue less Subcontractor Expense. Self-Perform Contribution includes revenue generated from jobs (A) where we rely on our own workforce to provide services, and (B) where we manage subcontractor arrangements (e.g., choosing, managing, coordinating, overseeing and paying such subcontractors), and excludes certain third-party expenses related to services performed by subcontractors and not directly by our workforce. Self-Perform Margin is defined as Adjusted EBITDA divided by Self-Perform Contribution. Management believes this is a meaningful measure to evaluate the utilization of the Company’s workforce and resources and the effectiveness of our financial management. EBITDA is defined as earnings before interest and other financing expenses, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude goodwill impairment, net loss on sale and disposition of property and equipment, changes in the fair value of contingent consideration liabilities, acquisition and integration costs, system deployment costs, strategic initiative costs, stock-based compensation expense, profits from an accelerated project sale, credit agreement amendment fees and litigation settlements. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Self-Perform Contribution should not be considered an alternative to gross profit that is derived in accordance with GAAP. Adjusted EBITDA should not be considered an alternative to net loss that is derived in accordance with GAAP. Management believes that the exclusion of the above-described items from gross profit and net loss in the presentation of the non-GAAP measures identified above enables us and our investors to more effectively evaluate our operations period over period and to identify operating trends that might not be apparent due to, among other reasons, the variable nature of these items, both in value and frequency, period over period. In addition, management believes these measures may be useful for investors in comparing our operating results with those of other companies. Our non-GAAPfinancial measures may not be comparable to similarly titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation, or substitutes for analysis of our operating results as reported under GAAP. Additionally, we do not consider our non-GAAPfinancial measures superior to, or a substitute for, the equivalent measures calculated