ALIGHT, INC. Item 8.01 Other Events.
For informational purposes only, to assist in the evaluation of the operational performance ofAlight, Inc. , this Current Report presents selected data for total and segment level results for the quarters endedMarch 31, 2021 andJune 30, 2021 and the year endedDecember 31, 2020 and each quarter therein. The following table sets forth certain selected data forTempo Holding Company, LLC and its consolidated subsidiaries prior to the consummation of the business combination onJuly 2, 2021 withFoley Trasimene Acquisition Corp. (the "Company" and such combination, the "Business Combination"). A reconciliation of Net Loss to Adjusted EBITDA is also included below. 2020 2021 ($ in millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Revenue$ 693 $ 647 $ 668 $ 720 $ 2,728 $ 689 $ 672 Gross Profit$ 218 $ 187 $ 227 $ 202 $ 834 $ 218 $ 217 Gross Margin 31.5 % 28.9 % 34.0 % 28.1 % 30.6 % 31.7 % 32.3 % Operating Income$ 38 $ 18 $ 42 $ 49 $ 147 $ 46 $ 56 Loss Before Income Tax (Benefit) Expense$ (21 ) $ (30 ) $ (22 ) $ (21 ) $ (94 ) $ (24 ) $ (6 ) Net Loss$ (21 ) $ (25 ) $ (39 ) $ (18 ) $ (103 ) $ (21 ) $ (4 ) Adjusted EBITDA$ 148 $ 136 $ 132 $ 148 $ 564 $ 133 $ 145 Adjusted EBITDA margin 21.4 % 21.0 % 19.8 % 20.6 % 20.7 % 19.3 % 21.6 % The following table sets out certain selected data for the quarters endedMarch 31, 2021 andJune 30, 2021 and the year endedDecember 31, 2020 and each quarter therein. For further description of operational performance and reportable segments, refer toAlight, Inc.'s Current Reports on Form 8-K and 8-K/A filed with theSecurities and Exchange Commission onJuly 12, 2021 andAugust 12, 2021 , respectively. A reconciliation of Segment Adjusted EBITDA to Loss Before Income Tax is also included below. 2020 2021 ($ in millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Employer Solutions Recurring revenue$ 529 $ 489 $ 498 $ 535 $ 2,051 $ 533 $ 516 Project revenue 50 51 61 75 237 54 53 Total revenue$ 579 $ 540 $ 559 $ 610 $ 2,288 $ 587 $ 569 Gross Profit$ 193 $ 160 $ 197 $ 175 $ 725 $ 201 $ 191 Gross Margin 33.3 % 29.6 % 35.2 % 28.7 % 31.7 % 34.2 % 33.6 % Adjusted EBITDA$ 142 $ 127 $ 120 $ 144 $ 533 $ 136 $ 138 Adjusted EBITDA margin 24.5 % 23.5 % 21.5 % 23.6 % 23.3 % 23.2 % 24.3 % Professional Services Recurring revenue$ 24 $ 26 $ 28 $ 30 $ 108 $ 29 $ 31 Project revenue 66 63 65 66 260 63 61 Total revenue$ 90 $ 89 $ 93 $ 96 $ 368 $ 92 $ 92 Gross Profit$ 21 $ 26 $ 30 $ 29 $ 106 $ 20 $ 26 Gross Margin 23.3 % 29.2 % 32.3 % 30.2 % 28.8 % 21.8 % 28.3 % Adjusted EBITDA$ 2 $ 9 $ 12 $ 8 $ 31 $ -$ 7 Adjusted EBITDA margin 2.2 % 10.1 % 12.9 % 8.3 % 8.4 % 0.0 % 7.6 % Hosted Recurring revenue$ 24 $ 18 $ 16 $ 14 $ 72 $ 10 $ 11 Gross Profit$ 4 $ 1 $ -$ (2 ) $ 3 $ (3 ) $ - Gross Margin 16.7 % 5.6 % 0.0 % -14.3 % 4.2 % -30.0 % 0.0 % Adjusted EBITDA$ 4 $ - $ -$ (4 ) $ -$ (3 ) $ - Adjusted EBITDA margin 16.7 % 0.0 % 0.0 % -28.6 % 0.0 % -30.0 % 0.0 %
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Reconciliation of Net Loss to Adjusted EBITDA
2020 2021
($ in millions) Q1 Q2 Q3 Q4 FY Q1 Q2
Net Loss $ (21 ) $ (25 ) $ (39 ) $ (18 ) $ (103 ) $ (21 ) $ (4 )
Interest expense 58 53 61 62 234 62 61
Income tax (benefit) expense - (5 ) 17 (3 ) 9 (3 ) (2 )
Depreciation 19 23 24 25 91 24 25
Intangible amortization 50 50 51 49 200 50 50
EBITDA 106 96 114 115 431 112 130
Share-based compensation 2 2 1 - 5 2 3Non-recurring professional expenses(1) - - -
- - 9 9
Transformation initiatives(2) 3 8 - (3 ) 8 - -
Restructuring 25 22 10 20 77 7 2
Other(3) 12 8 7 16 43 3 1
Adjusted EBITDA $ 148 $ 136 $ 132 $ 148 $ 564 $ 133 $ 145 (1) Non-recurring professional expenses primarily includes external advisor costs
related to the Company's Business Combination completed on
(2) Transformation initiatives in fiscal year 2020 includes expenses related to
enhancing our data center.
(3) Other primarily includes long-term incentive expenses and expenses related
to acquisitions in fiscal year 2020.
Reconciliation of Segment Adjusted EBITDA to Loss Before Income Tax Benefit
2020 2021
($ in millions) Q1 Q2 Q3 Q4 FY Q1 Q2
Employer Solutions $ 142 $ 127 $ 120 $ 144 $ 533 $ 136 $ 138
Professional Services 2 9 12 8 31 - 7
Hosted Business 4 - - (4 ) - (3 ) -
Total of all reportable segments 148 136 132 148 564 133 145
Share-based compensation 2 2 1 - 5 2 3
Non-recurring professional expenses(1) - - - - - 9 9
Transformation initiatives(2) 3 8 - (3 ) 8 - -
Restructuring 25 22 10 20 77 7 2
Other(3) 11 13 4 8 36 (5 ) -
Depreciation 19 23 24 25 91 24 25
Intangible amortization 50 50 51 49 200 50 50
Operating Income 38 18 42 49 147 46 56
Interest expense 58 53 61 62 234 62 61
Other expense (income), net 1 (5 ) 3 8 7 8 1
Loss Before Income Tax (Benefit) Expense
$ (21 ) $ (94 ) $ (24 ) $ (6 )
(1) Non-recurring professional expenses primarily includes external advisor costs
related to the Company's Business Combination completed on
(2) Transformation initiatives in fiscal year 2020 includes expenses related to
enhancing our data center.
(3) Other primarily includes long-term incentive expenses and expenses related
to acquisitions in fiscal year 2020, offset by Other expense, net.
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