Company: ARRY
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001140361-25-012865
Chunk: 36

Company: Array Technologies, Inc.
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 36
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 MBOs                     |     |        |     |           |     |        |     |         |
| TRIR (bps)                       |     |   3.34 |     |      2.73 |     |   2.05 |     |    1.64 |
| On-Time Delivery (avg % per qtr) |     |   3.33 |     |        86 |     |     92 |     |      96 |
| Strategic Cost Objectives ($)    |     |   3.33 |     |      4.0M |     |   6.0M |     |    8.0M |

Adjusted EBITDA . Earnings Before Interest, Taxes, Depreciation and Amortization, or EBITDA, is a core measure of our profitability that considers both top line revenue performance and cost management and represents a key performance metric that our stockholders utilize to measure our performance. We define Adjusted EBITDA as net income (loss) plus (i) other expense, net, (ii) foreign currency (gain) loss, net, (iii) preferred dividends and accretion, (iv) interest expense, (v) income tax (benefit) expense, (vi) depreciation expense, (vii) amortization of intangibles, (viii) amortization of developed technology, (ix) equity-based compensation, (x) change in fair value of contingent consideration, (xi) impairment of long-lived assets, (xii) goodwill impairment, (xiii) certain legal expenses, and (xiv) other costs. See Appendix A for reconciliation of net income to Adjusted EBITDA. Cash Conversion Cycle . Cash Conversion Cycle, or CCC, measures the efficiency of our capital allocation and represents the number of days it takes for us to convert sales into cash flow, and it also represents a key performance metric that our stockholders regularly analyze to assess our performance. Company MBOs. For the 2024 LIP plan design, the Human Capital Committee continued to utilize company MBOs to focus its executive officers on the Company’s strategic objectives for 2024. Three metrics were chosen to track these strategic objectives: (i) total reportable incident rate (“TRIR”), (ii) on-time delivery rate; and (iii) strategic cost objectives. At the time it established the above performance goals, the Human Capital Committee further determined that it would retain discretion to reduce the final payout