Company: LGN
Filing Date: 2025-05-14
Form Type: DRS/A
Source: 0000950123-25-005247
Chunk: 133

Company: Legence Corp.
Filing Date: 2025-05-14
Form: DRS/A
Chunk 133
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 and administrative costs in the Consolidated Statements of 
 Operations.                                                                                                                                                                                                                                       |

| (4) | Represents consulting and initial upfront costs associated with implementing and optimizing certain enterprise 
 resource planning systems, including IFS, Onestream and Ceridian Dayforce.                                     |

| (5) | Represents (i) consulting costs associated with rebranding efforts in connection with our name change to                                                                                                                                         
 Legence that we do not expect to recur in the future, (ii) upfront consulting and out-of-pocket costs related to developing and launching the cross-selling                                                                                      
 framework amongst our brands, many of which were more recently acquired and integrated into the Legence brand, (iii) consulting and legal fees associated with education and marketing efforts for our clients with respect to utilizing certain 
 government incentive programs and (iv) consulting, legal, accounting expenses in connection with non-recurring extraordinary company transactions.                                                                                               |

90

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83

| (6) | Our Black Bear subsidiary helps businesses and real estate owners procure                                                                                                                                                                                 
 on-site generation and storage systems for their buildings. Black Bear receives compensation for its services from project developers who pay Black Bear a fee if they are selected to provide the system for the                                         
 client. The fee is typically earned and paid when the client enters into a binding contract with the project developer and permits to begin construction have been issued. If a contract is not signed or permits are not issued, Black Bear is typically 
 not owed a fee from the project developer. In the fourth quarter of 2023, a project developer who had been selected for a large number of projects by Black Bear’s clients offered to immediately pay Black Bear all of the fees that Black Bear          
 would earn in the future if all of the projects received permits, provided that Black Bear would agree to discount the fee amounts. Black Bear agreed to discount the fee amounts and recorded significantly higher revenues than would be typical in a   
 quarter. Given the unique nature of the transaction, we consider it to be non-recurring in nature. This adjustment is to eliminate the approximately $7.4 million profit we recorded from the transaction.                                                |

| (7) | Refer to “Note 18—Commitments and Contingencies” in the Notes to Consolidated Financial 
 Statements, for details on the nature of the settlement.                                |

The following table provides a reconciliation of our Gross Profit, the most directly comparable financial measure presented in accordance with GAAP