(i)

the accompanying notes to the unaudited pro forma condensed combined financial information;

(ii)

the audited combined financial statements of the Business as of December 31, 2017 and October 28, 2018 and the notes relating thereto, included as Exhibit 99.1 to the Amendment No. 1 to the Company’s Current Report on Form 8‑K filed herewith;

(iii)

the audited consolidated financial statements, the accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2018 to be filed concurrent with this form 8-K/A

(iv)

the unaudited condensed consolidated financial statements, the accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Quarterly Report on Form 10‑Q for the interim period ended September 30, 2018; and

(v)

Item 1.01 of the Company’s Current Report on Form 8‑K filed with the Securities and Exchange Commission (the “SEC”) on November 2, 2018, including the exhibits thereto, which describes the Acquisition and the Financing Transactions (as described in Note 2).

Centric

Acquired
Business
(Note 3)

Financing
Transactions

Acquisition

Pro Forma
Combined

ASSETS

Current assets

Cash and cash equivalents

$

3,514 

$

— 

$

1,310,918 

4(a) 

$

4(b) 

$

57,681 

Accounts receivable, net

21,490 

77,397 

— 

4(c)

86,596 

Inventories

33,567 

335,786 

— 

35,819 

4(c)

405,172 

Prepaid expenses and other current assets

5,157 

71,654 

3,580 

4(a)

4(b), 4(c) 

68,135 

Total current assets

63,728 

484,837 

1,314,498 

617,584 

Property and equipment, net

7,281 

24,551 

— 

62,420 

4(c)

94,252 

Goodwill

8,406 

714,431 

— 

4(c)

376,131 

Intangible assets, net

87,195 

50,768 

— 

773,232 

4(c)

911,195 

Other assets

2,255 

41 

6,808 

4(a)

2,395 

4(b)

11,499 

Total assets

$

168,865 

$

1,274,628 

$

1,321,306 

$

$

2,010,661 

LIABILITIES AND EQUITY

Current liabilities

Accounts payable and accrued expenses

$

35,251 

$

322,419 

$

— 

$

45,027 

4(c)

$

402,697 

Due to related companies

— 

439,411 

— 

4(b), 4(c) 

192,331 

Current portion of long-term debt

3,438 

— 

28,818 

4(a)

— 

Total current liabilities

38,689 

761,830 

28,818 

627,284 

Line of credit

24,414 

— 

4(a)

— 

1,647 

Convertible notes

14,866 

— 

20,478 

4(a)

— 

35,344 

Long-term debt, net of current portion

42,309 

— 

1,151,126 

4(a)

— 

1,193,435 

Deferred income taxes, net

4,093 

— 

— 

— 

4,093 

Other liabilities

3,732 

6,053 

— 

4(c)

6,042 

Total liabilities

128,103 

767,883 

1,177,655 

1,867,845 

Commitments and contingencies

Equity:

Series A convertible preferred stock, $0.10 par value: 50,000 shares authorized, issued and outstanding

5 

— 

4(e)

— 

— 

Series A‑1 convertible preferred stock, $0.10 par value: 4,587,964 shares authorized, issued and outstanding

459 

— 

4(e)

— 

— 

Common stock, $0.10 par value: 100,000,000 shares authorized, 14,132,311 shares issued and outstanding

1,413 

— 

4,390 

4(e), 4(f) 

— 

5,803 

Additional paid-in capital

76,248 

— 

139,725 

4(e), 4(f) 

— 

215,973 

Accumulated other comprehensive income (loss)

408 

— 

552 

4(c)

408 

Accumulated deficit

— 

— 

4(d)

Net Parent Investment

— 

507,297 

— 

4(c)

— 

Total equity

40,762 

506,745 

143,651 

142,816 

Total liabilities and equity

$

168,865 

$

1,274,628 

$

1,321,306 

$

$

2,010,661 

Centric

Acquired
Business

Removal of 28
days

Pro Forma
Adjustments

Pro Forma
Combined

Net sales

$

114,614 

$

1,705,593 

$

4(n) 

$

— 

$

1,586,177 

Cost of goods sold

66,774 

1,311,536 

4(n)

55,855 

4(g)

1,250,806 

Gross profit

47,840 

394,057 

335,371 

Operating expenses

Selling, general and administrative

58,992 

481,070 

4(n)

4(g),4(j) 

431,491 

Depreciation and amortization

4,252 

19,552 

4(n)

46,270 

4(h),4(i) 

68,526 

Total operating expenses

63,244 

500,622 

500,017 

Operating loss

Interest expense

7,097 

9,677 

4(n)

98,464 

4(k)

114,131 

Other expense

124 

— 

— 

— 

124 

Gain on contingent consideration

— 

Loss before income taxes

Income tax benefit

— 

— 

— 

4(l)

Net loss

$

$

$

$

$

Loss per common share - basic

$

$

4(m)

Loss per common share - diluted

$

$

4(m)

Weighted average shares outstanding

Basic and diluted

13,873 

58,336 

4(m)

Centric

Acquired
Business

Pro Forma
Adjustments

Pro Forma
Combined

Net sales

$

164,053 

$

2,080,551 

$

— 

$

2,244,604 

Cost of goods sold

92,303 

1,530,578 

68,318 

4(g)

1,691,199 

Gross profit

71,750 

549,973 

553,405 

Operating expenses

Selling, general and administrative

64,370 

424,436 

4(g)

423,392 

Depreciation and amortization

6,304 

26,608 

59,642 

4(h), 4(i)  

92,554 

Total operating expenses

70,674 

451,044 

515,946 

Operating (loss) income

1,076 

98,929 

37,459 

Interest expense

8,844 

10,390 

132,848 

4(k)

152,082 

Other expense (income), net

21 

— 

Gain on contingent consideration

— 

— 

(Loss) income before income taxes

107,247 

Income tax benefit

—  

—  

4(l)

Net (loss) income

$

$

107,247 

$

$

Loss per common share - basic

$

$

4(m)

Loss per common share - diluted

$

$

4(m)

Weighted average shares outstanding

Basic and diluted

13,313 

57,517 

4(m)

Accounts receivable

$

65,106 

Inventories

371,605 

Prepaid expenses and other current assets

56,380 

Property and equipment

86,971 

Goodwill

367,725 

Intangible assets

824,000 

Other assets

41 

Accounts payable and accrued expenses

Due to related companies

Other Liabilities

Total consideration transferred

$

1,179,669 

Acquired Business

Reclassifications

Acquired Business
(As Adjusted)

ASSETS

Current assets

Trade receivables, net

77,397 

77,397 

Inventories

335,786 

335,786 

Other receivables, prepayments and deposits

71,654 

71,654 

Total current assets

484,837 

— 

484,837 

Property and equipment, net

24,551 

24,551 

Goodwill

714,431 

714,431 

Intangible assets, net

50,768 

50,768 

Other receivables and deposits

41 

41 

Total assets

1,274,628 

— 

1,274,628 

LIABILITIES AND EQUITY

Current liabilities

Due to related companies

439,411 

439,411 

Accounts Payable and accrued expenses

— 

322,419 

(a)  

322,419 

Trade payables

192,421 

(a)  

— 

Accrued liabilities

126,431 

(a)  

— 

Contingent consideration

3,567 

(a)  

— 

Total current liabilities

761,830 

— 

761,830 

Contingent consideration

3,900 

(b)  

— 

Other liabilities

2,153 

3,900 

(b)  

6,053 

Total liabilities

767,883 

— 

767,883 

Commitments and contingencies

Parent Company equity

Net parent investment

507,297 

507,297 

Accumulated other comprehensive income (loss)

Total combined equity

506,745 

— 

506,745 

Total liabilities and equity

1,274,628 

— 

1,274,628 

(a)

The Business classified certain current liabilities as trade payables, accrued liabilities, and current contingent consideration. The Company reclassified these amounts to accounts payable and accrued expenses to conform to its presentation.

(b)

The Business classified certain long term liabilities as contingent consideration. The Company reclassified these amounts to other liabilities to conform to its presentation.

(a)

Adjustment represents the net proceeds from the Financing Transactions:

(1)

an increase of $80.0 million to reflect the gross proceeds raised in the Private Placement;

(2)

an increase of $1,363.0 million to reflect the gross borrowings under the Credit Agreements and the Convertible Notes (together, the “Debt Offering”);

(3)

a decrease of $60.0 million to reflect estimated debt issuance costs related to the Debt Offering; and

(4)

a decrease of $72.1 million to reflect the repayment on the Closing Date of principal and accrued interest of $3.6 million for existing debt which has been recorded in prepaid expenses and other current assets as the corresponding interest expense had not been incurred as of September 30, 2018.

(b)

Represents a decrease in cash and cash equivalents in the amount of $1,256.8 million, which relates to the Acquisition, calculated as:

(1)

a decrease of $1,179.7 million paid by the Company at the Closing Date as Acquisition consideration; and

(2)

a decrease of $30.1 million paid by the Company at the Closing Date to GBG that was subsequently refunded and excluded from the calculation of Acquisition consideration, which have been included as a reduction to Due to Related Companies.

(3)

a decrease of $47.0 million to reflect amounts paid for transaction fees, licensor consents and other payments. Other payments include $3.0 million of insurance premiums and $2.4 million of deferred fees related to the Receivables Facility which have been included within other receivables, prepayments, and deposits and other assets, respectively.

(c)

Represents the Business’s estimated purchase price allocation as of October 29, 2018 as discussed in Note 2 – Preliminary Purchase Price Allocations

Acquired Business

Fair Value (Note 2)

PPA Adjustment

ASSETS

Accounts receivable, net (1)

$

77,397 

$

65,106 

$

Inventories

335,786 

371,605 

35,819 

Prepaid expenses and other current assets (1)

71,654 

56,380 

Property and equipment, net

24,551 

86,971 

62,420 

Goodwill

714,431 

367,725 

Intangible assets, net

50,768 

824,000 

773,232 

Other assets

41 

41 

— 

Total assets

$

1,274,628 

$

1,771,828 

$

497,200 

LIABILITIES AND EQUITY

Accounts payable and accrued expenses (1)

322,419 

367,446 

45,027 

Due to related companies (1)

439,411 

222,403 

Other liabilities (1)

6,053 

2,310 

Total liabilities

$

767,883 

$

592,159 

$

Accumulated other comprehensive loss

— 

552 

Net Parent Investment

507,297 

— 

Total equity

506,745 

— 

Total liabilities and equity

$

1,274,628 

$

592,159 

$

(1)

Fair value difference related to accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses, other liabilities, and due to related companies relate to assets or liabilities not acquired in the Acquisition.

(d)

Represents an increase in accumulated deficit of $41.6 million to reflect one time transaction fees, consent fees and other non-recurring transaction expenses incurred through the Closing Date.

(e)

Represents an increase in Common Stock, $0.10 par value, and Additional paid-in capital of $0.4 million relating to the conversion of 50,000 shares of Series A Preferred Stock and 4.59 million shares of Series A‑1 Preferred Stock into Common Stock.

(f)

Represents an increase in Common Stock, $0.10 par value, and Additional paid-in capital of $143.7 million as a result of the Private Placement, which consisted of the issuance of 33,094,501 shares of the Company’s Common Stock.

(g)

Represents an increase to cost of goods sold of $55.9 and $68.3 million for the nine months ended September 30, 2018 and the twelve months ended December 31, 2017, respectively, and a decrease to selling, general and administrative expenses of $55.4 and $65.4 million for the nine months ended September 30, 2018 and the twelve months ended December 31, 2017, respectively, related to the capitalization and reclassification of certain production related overhead costs to conform with the accounting policies of the Company.

(h)

Represents additional depreciation expense of $7.5 and $11.1 million for the nine months ended September 30, 2018 and the twelve months ended December 31, 2017, respectively, related to the fair value of the property, plant, and equipment acquired in the Acquisition. The adjustment in depreciation is based on the estimated fair value and useful lives of 3 to 8 years, and is calculated using the straight-line method.

(i)

Represents additional amortization expense of $38.8 and $48.5 million for the nine months ended September 30, 2018 and the twelve months ended December 31, 2017, respectively, related to the fair value of intangible assets resulting from the Acquisition. The intangible assets represent customer relationships and certain above or below market leases with an estimated useful life of 11 years and 6 years, respectively, which the Company will amortize on a straight-line basis.

(j)

Represents the elimination of $14.1 million in Acquisition-related costs paid by the Company during the nine months ended September 30, 2018 that are non-recurring and will not have a continuing impact.

(k)

Represents the net increase in interest expense of $98.5 million and $132.8 million for the nine months ended September 30, 2018 and the twelve months ended December 31 2017, respectively, in connection with the Debt Offering and amortization of the related deferred fees and discount.

(l)

Reflects the income tax effect of pro forma adjustments based on the Company’s estimated applicable blended federal and state statutory tax rate of 28.0% for the nine months ended September 30, 2018 and 42% for the year ended December 31, 2017. As a result of the net operating loss carryforward, the income tax benefit has been fully reserved in the pro forma condensed combined statement of operations.

(m)

Basic and diluted net earnings per share are each calculated by dividing pro forma net earnings attributable to the Company by the pro forma weighted average shares outstanding and pro forma diluted weighted average shares outstanding, respectively.

Basic Shares:

9 Months ended September 30, 2018

Year ended December 31, 2017

Weighted average shares - basic, reported

14,132 

13,313 

Add: Private Placement

33,095 

33,095 

Conversion of Series A Preferred Stock

5,852 

5,852 

Conversion of Series A‑1 Preferred Stock

4,951 

4,951 

PSU and RSU Vesting

306 

306 

Weighted average shares pro forma

58,336 

56,517 

(n)

Represents the removal of 28 days of operations to conform the period presented for the carve-out statement of operations of the Business for the period ended October 28, 2018 to the nine months ended September 30, 2018 presented for the Company.