Adj. EBITDA Includes HR Expenses & Property, Marketing & Admin. Expenses

A casino operator that I am looking at includes Adj. EBITDA in their financial reports calculating in the following way: Adj. EBITDA = Revenues - Human Resource Expenses - Property, Marketing & Admin Expenses

Their P&L Looks like this: Revenue Total Expenses: Human Resources Property, Marketing, and Admin Share of Profit of Equity Investment Amortization SBC Impairment / Reversal of Long-Lived Assets Impairment of Goodwill Interest & Financing Costs, Net Litigation Settlement Restructuring and Other Gain On Land FX Loss / Gain EBIT ....

Can someone explain to me why these adjustments are being made to EBITDA? Shouldn't HR + Property, Marketing & Admin expenses be considered as normal operating expenses and therefore be included in EBITDA rather than Adj. EBITDA? Where Adj. EBITDA would include expenses like impairment, litigation settlement, restructuring...?

3 Comments
 

Thanks, for the suggestion - I found my answer and will be using this approach for now on.

The format or classification of operating expenses on the P&L threw me off... The expenses below Property, Marketing, and Admin are the one-time expenses and SG&A is really just Human Resources + Property, Marketing, and Admin.

 

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