Raymond James Associates’ 37th Annual Institutional Investors Conference

1. Diplomat.is/more
I’m Jay.
I have chronic lymphocytic leukemia.
I’m a retired submarine commander,
a father, a husband, an avid woodcarver.
I bike 20 miles a day.
I know the Diplomat Difference.
Copyright © 2015 by Diplomat Pharmacy Inc. Diplomat is a registered
trademark of Diplomat Pharmacy Inc. All rights reserved.
Raymond James Institutional Conference
March 2016

2. Confidential
1
This presentation may contain “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties
ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-
looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to,
any projections of financial information; any statements about historical results that may suggest trends for our business and results of
operations; any statements of the plans, strategies and objectives of management for future operations; any statements of expectation or
belief regarding future events, health care developments, or specialty pharmaceutical industry market sizes, shares, trends or growth; and
any statements of assumptions underlying any of the foregoing.
Any forward-looking statements contained in this presentation are based on management's good-faith belief and reasonable judgment
based on current information, and these statements are qualified by important factors, many of which are beyond our control, that could
cause our actual results to differ materially from those in the forward-looking statements, including changes in global, regional or local
economic, business, competitive, market, regulatory and other factors, many of which are beyond our control, including but not limited to
the following risks related to our business: our ability to adapt to changes or trends within the specialty pharmacy industry; significant and
increasing pricing pressure from third-party payors, our relationships with key pharmaceutical manufacturers; our limited history with
integrating acquisitions; and the effects of competition. These and other risks and uncertainties associated with our business are described
in the prospectus for our proposed follow-on offering, including under the heading “Risk Factors.” We assume no obligation and do not
intend to update these forward-looking statements.
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These historical and forward-looking
non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with
GAAP. A reconciliation between GAAP and non-GAAP measures is included in the appendix to this presentation.
Diplomat is a registered trademark of Diplomat Pharmacy, Inc. This presentation also contains additional trademarks and service marks of
ours and of other companies. We do not intend our use or display of other companies’ trademarks or service marks to imply a relationship
with, or endorsement or sponsorship of us by, these other companies.
Important note

3. Confidential
Investment Highlights
• Specialty Pharmacy industry is a high growth market
• Drug development pipeline remains robust
• Limited distribution growing in importance
• Diplomat is unique within the specialty pharmacy industry
• Taking market share as the largest independent specialty
pharmacy
• Access to broad range of limited distribution drugs
• Strong financial performance
• Five-year revenue CAGR of 42% & EBITDA CAGR of 65%
• Diversified revenue and profitability streams
• Modest balance sheet leverage – ample dry powder
• Experienced senior management team
• CEO founded Diplomat 40+ years ago
• Leadership team has broad ranging experience across the industry
2

4. Confidential
$27 $58
$167
$271 $377
$578
$772
$1,127
$1,515
$2,215
$3,367
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E
3
Diplomat at a glance
 Founded: 1975; Headquarters: Flint, MI
 Employees: ~1,700
 2016E revenue: ~$4.45 billion
 Diversified base of marquee partners
Corporate Overview
CVS Health/
Omnicare
33%
Express Scripts
25%
Walgreens
10%
3%
OptumRx/
Catamaran
8%
Avella 1%
Others
20%
2015 Market share ($98 billion total market size) (1)
Exceptional above market revenue growth
Scaled business: National footprint
($ in millions)
Source:
(1) 2015 – 2016 Economic Report on Retail, Mail and Specialty Pharmacies, Drug Channel
Institute
(2) Based on mid-point of management’s estimate range for FY 2016
(2)
Pharmacy Locations
Arizona
California
Connecticut
Florida
Illinois
Iowa
Maryland
Massachusetts
Michigan
Minnesota
North Carolina
Ohio
Pennsylvania
$4,450

5. Confidential
4
Diversified revenue and profit streams
Complementary Opportunities Minimize Payer/PBM Risk,
AND Mitigate risk of Inflation abatement
Other Services
 Retail Specialty Network
 Hospital Specialty Network
 HUB (Envoy Health)
 340(b)
 PAP
 All services enhance DPLO’s
relevance in healthcare
Specialty Infusion
 Subset of specialty pharmacy
 Many similar characteristics
(chronic, high cost, etc.)
 Few differentiators (nursing
component, more medical billing)
 Higher margin business
 Unique/separate payer networks
 Payer-driven site of care transition
opportunities
Core Specialty Pharmacy
(orals and self-injectables)
 Oncology dominance
 Limited distribution expertise
 Outpacing industry revenue growth
organically
 Mix shift driving revenue and profit growth
 Price inflation a very small component of
revenue
 Serving open, preferred, narrow, and
exclusive payer networks
Pharmaceutical Manufacturer Services
 Discounts, rebates, performance, services, data fees
 High margin
 Not dependent on payers or price inflation
 Making progress, but significant upside opportunity remains
Revenue Source:
Payers
Revenue Source:
Pharma & Others
Financial Impact:
Higher Revenue,
Lower Margin
Financial Impact:
Lower Revenue,
Higher Margin

6. Confidential
Diplomat controls the journey of a specialty patient
5
Patient
Physician
Payor
Patient
Patient visits
physician
Payor approves script
Diplomat monitors adherence and
collects data for manufacturers
Diplomat
dispenses drug
Diplomat provides:
Benefit verification
Prior authorization
Clinical intervention
Physician
writes script
Patient
receives
drugs

7. Confidential
6
Specialty spend under pharmacy benefit to grow ~5x(1)
Specialty pharmacy industry continues to show
exceptional growth
Specialty share of spend growing dramatically(1)
Specialty continues to dominate top 10 drug spend(1)
Source:
(1) The 2016 Economic Report on Retail, Mail, and Specialty Pharmacies – January 2016
 7 out of top 10  9 out of top 10
2014A 2020E
85%
15%
27%
73%
44%
56%
Diplomat 2%
$41 million $212 billion
2010A 2020E
Traditional
2010A 2015E 2020E
Specialty

8. Confidential
Limited distribution a central and growing theme in specialty
7
Benefits to DiplomatBenefits to biotech / pharma
 Completely eliminate or reduce
reliance on wholesaler
 Real-time clinical data
 Commercialization assistance
 Improves appropriate utilization
 Barrier to entry
 Deeper, and earlier, partnerships with
pharma / biotech
 Increased value proposition to payors
 Market share opportunity
Portfolio of ~100 limited distribution drugs, comprising approximately 45%
of revenue in 2015, and well positioned for disproportionate growth from
future drug approvals
Recent unique limited panels…Diplomat exclusive or semi-exclusive
What is limited distribution?
 Targeted channel strategy
 Provides certain specialty pharmacies
with exclusive or preferred
dispensing rights to certain drugs
 Fast-growing trend
(2013) (2015)(2012) (2014)
Traditional:
Limited:
Manufacturer Multiple Wholesalers 65,000 Pharmacies Patient
Manufacturer One/few pharmacies Patient
DPLO EXCLUSIVE DPLO LARGEST OF 4 DPLO LARGEST OF 4 DPLO EXCLUSIVEDPLO LARGEST OF 3
(2015)

9. Confidential
8
Unique competitive position
LARGE PBM / RETAIL
PHARMACY
SMALLER SPECIALTY
PHARMACIES
 Diversification
distracts from
specialty pharmacy
 Less flexible / less
nimble
 Limited scale
 Most focused on one
or a few disease
states
 Fragmented market
 Consolidation
opportunity for
Diplomat
 Singularly focused
on specialty
 High-touch model
 Flexible and nimble
 Entrepreneurial
culture
 National reach
 Scalable
infrastructure
Acquired
Feb 2016

10. Confidential
9
Base business continues to gain momentum
 Specialty pharmacy market grew ~25%
in 2015
 3,000+ oncology and immunology drugs
in global drug development
 Increased prevalence of limited
distribution panels
 Biosimilars launching in U.S.
 2015 record year for drug approvals
Improving trends across specialty
pharmacy…
…driving key milestones and
achievements at Diplomat
 Diplomat grew revenues by 52% from
2014 to 2015
 Recent new drug contracts
 The majority of which are
limited distribution drugs
Oncology
Hepatitis C
Cystic Fibrosis
Other
• 51 total approvals:
- 45 NMEs and 6 biologics
• 21 of 45 NMEs were Orphan designation
• 16 of 45 NMEs were “First in Class”
• 69% of all approvals were specialty

11. Confidential
Accomplishments since the IPO
10
o Announced
access to ~20 LD
drugs
o Continued
oncology
dominance
o Growing theme of
excluding large
PBM-owned SPs
o Added key
industry
veterans; direct,
and via acquired
entities’
management
teams
o Added four
independent
board members;
now majority
independent
board
o Accelerated
higher margin
business
o Grew revenue by
~122%1
o Increased
EBITDA by
nearly 400%2
o Created a
nationwide
specialty infusion
platform with 3
strategic
acquisitions
o Broadened Hep-C
and technology
offerings through
Burman’s
acquisition
Expanded
Access to
Limited
Distribution
Drugs
Strengthened
Leadership
Team
Delivered Strong
Financial
Performance
Completed
Strategic
Acquisitions
(1) 2015 $3,367 vs. 2013 $1,515
(2) 2015 $95 versus 2013 $19

12. Confidential
11
Acquisitions create incremental revenue opportunities
Recent acquisitions of Burman’s Specialty Pharmacy and BioRX have created
significant revenue synergies
BioRX
Acquired by Diplomat on April 1, 2015
Burman’s Specialty Pharmacy
Acquired by Diplomat on June 19, 2015
• Strengthens Diplomat’s relationships with
Neurologists
• Provides BioRX sales force a broader portfolio
of drugs including Multiple Sclerosis services
• Cross selling infusion services to existing
managed market clients
Synergies
• Roll out software technology across our national
platform to drive patient adherence and
physician transparency
• Increased access to Gastroenterology thought
leaders
• Provides Burman’s sales force Diplomat’s full
therapeutic mix (incl. Crohn’s disease)
Synergies

13. Confidential
12
Future M&A criteria
When considering acquisitions, we look for targets that will potentially benefit
Diplomat in one or more of the following ways:
 Expand into new therapeutic areas and/or geographic regions
 Enhance clinical capabilities to improve competitive advantage
 Access to Limited Distribution drugs
 Accelerate our higher margin business opportunities
 Bring new services and technologies under our umbrella
 Makes DPLO better, not just bigger

14. Confidential
13
Outstanding financial profile

15. Confidential
Traditional Drug Specialty Drug A Specialty Drug B Specialty Drug C Specialty Drug B
(10% price incr.)
Revenue $100 $3,700 $10,000 $27,000 $11,000
Gross Profit ($) $10 $185 $400 $810 $440
Gross Margin (%) 10% 5% 4% 3% 4%
14
Revenue
Payors
Distributors /
pharmaceutical
manufacturers
Patient
Diplomat
COGS
Physical drug movement
$ flows
How we make money and grow profitability(Illustrative example)
How we make money
Drug mix and positive pricing trends are tremendous profit tailwinds for Diplomat
Inflation
Impact
Diplomat mix shift movement over time
Our core
focus
$312
Diplomat’s 4Q’15 Average
(AWP – Y%)
(WAC – X%)
Note AWP = WAC x 1.20
(1)
(1)
Example:
AWP $11,905 - 16% = $10,000 Revenue
WAC $9,921 - 3% = $9,600 COGS
$400 Gross Profit
4% Gross Margin

16. Confidential
$187
$312
4Q14A 4Q15A
$10.5
$28.1
4Q14A 4Q15A
$612
$987
4Q14A 4Q15A
15
Recent quarterly highlights
(1) Based on dispensed scripts only.
(2) Gross profit / net sales (i.e., based on dispensed and serviced scripts).
Revenue
EBITDA
margin
1.7%
Adjusted EBITDAGross Profit /Script
($ in millions) ($ in millions)
2.8%7.8%6.7%
(1)
Gross
margin
(2)
110 bps expansion 110 bps expansion

17. Confidential
$8
$15
$11
$19
$35
96% (28%) 75% 85% 170%
1.3% 2.0% 1.0% 1.3% 2.8%
2010A 2011A 2012A 2013A 2014A 2015A
16
Strong long-term financial performance…
Adjusted EBITDA
2010 – 2015
Total Revenue
2010 – 2015
% margin
% growth
($ in millions)
$578
$772
$1,127
$1,515
$2,215
34% 46% 34% 46% 52%
2010A 2011A 2012A 2013A 2014A 2015A
% growth
($ in millions)
Pre-IPO infrastructure investments
 Volume, price and mix all driving superior revenue growth
 Natural operating leverage and acquisitions driving EBITDA growth and
margin expansion
53%
27%
Note: Historical financials are not pro forma for any acquisitions.
1.6%
$3,367
$95

18. Confidential
17
… with continued growth in profitability
Gross Profit / Script (1)
2010 – 2015
Note: Financials are not pro forma for BioRx acquisition.
(1) Based on dispensed scripts only.
(2) Gross profit / net sales (i.e., based on dispensed and serviced scripts).
$71
$93 $97
$116
$167
2010A 2011A 2012A 2013A 2014A 2015A
% growth 12% 20%31% 4%
% margin 7.1% 5.9%7.3% 6.2%
Several factors drive growth in our Gross Profit / Script(1):
 Continued mix shift towards higher price, higher profit drugs (including acquisitions)
 Favorable pricing trends
(2)
Gross margin expansion opportunities:
 Recent acquisitions with higher gross margins (%)
 Pharma $$ opportunities
 Specialty generics and biosimilars (longer term)
44%
6.3%
68%
7.8%
$280

19. Confidential
18
Components of Quarterly Revenue Growth
($ in millions)
$-
$200
$400
$600
$800
$1,000
$1,200
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
Prior Year Revenue YOY Growth from Existing Drugs (excluding price inflation) New Drugs (< 12 months) Misc (< 1%) Impact of Price Inflation Acquired Revenue
$808
$625$612
67%75%67%
1%
7%
16%
11%
9%
3%
7%
5%
8%
13%
4%5%
34% YOY
Growth
(29% organic)
49% YOY
Growth
(41% organic)
$947
63%
2%
13%
5%
17%
62%
10%
6%
6%
16%
$987
$808
$625$612
67%75%67%
1%
7%
16%
11%
9%
3%
7%
5%
8%
13%
4%5%
$947
63%
2%
13%
5%
17%
62%
10%
6%
6%
16%
$987
49% YOY
Growth
(29% organic)
59% YOY
Growth
(31% organic)
61% YOY
Growth
(35% organic)
QuarterlyRevenue
• Price inflation has comprised only 5-
8% of revenue over the last 5
quarters
 Political pressure on price
inflation, if successful, will
have limited impact on
Diplomat
 Value added services to
pharma manufacturers are an
opportunity to offset
• Chronic disease expertise provides
a stable and growing annuity-like
revenue base
 Limited distribution
leadership and rich drug
pipeline driving considerable
revenue growth from new
drugs
• Diplomat remains an organic growth
story
 Strategic M&A has
complemented growth

20. Confidential
19
Annual Revenue by Drug Year Launch
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2013 2014 2015
2015
2014
2013
2012
2011
2006 - 2010
2001 - 2005
1996 - 2000
1995 and Prior
$1.5B
$2.2B
$3.3B
5%
21%
2%
18%
3%
16%
95%
$1.4B
77%
$1.7B
63%
$2.1B
• Drugs across all launch years
continue to grow substantially
over time
 2012 and prior drugs have
grown ~50% from 2013
to 2015
• 2015 a record year for FDA
approval of specialty drugs, yet
2015 launch drugs contributed
less than 3% of 2015 revenue
 Will ramp up dramatically
in 2016 and beyond
• Pipeline remains an important
element of near-term and long-
term growth; existing drugs will
also contribute meaningfully

21. Confidential
20
Balance Sheet / Cash Flow snapshot
($ in millions)
(1) Includes $12mm in cash-based contingent consideration
(2) Includes $6mm in cash-based contingent consideration
December 31,
2014 2015
Cash $18 $28
Total Debt $12
(1)
$123
(2)
Shareholders’ equity $169 $516
Net Debt/ProForma EBITDA -- ~.8x
Cash Flow From Operations (year ended) ($10) $29

22. Confidential
2016 Guidance
21
2015 Results 2016 Guidance
Implied
Midpoint
Growth
Revenue $3,367m $4.3b - $4.6b +32%
Adjusted
EBITDA
$95.0m $116m - $123m +26%
Adjusted EPS $0.75 $0.84 - $0.89 +15%
• 2016 guidance does not assume any incremental acquisitions
• 2016 assumes 67,500,000 shares outstanding throughout the year

23. Confidential
2015 Normalized Income Statement
22
Reported Normalized (1)
Reported Normalized (1)
Reported Normalized(1)
Reported Normalized (1)
Reported Normalized(1)
Revenue 624,883$ 808,011$ 946,913$ 986,824$ 3,366,631$
624,883$ 808,011$ 946,913$ 986,824$ 3,366,631$
Gross Profit 41,142$ 69,669$ 75,763$ 76,665$ 263,239$
41,142$ 69,669$ 72,763$ 76,665$ 260,239$
Gross Margin 6.6% 8.6% 8.0% 7.8% 7.8%
6.6% 8.6% 7.7% 7.8% 7.7%
Adj EBITDA 11,157$ 22,738$ 33,018$ 28,098$ 95,010$
11,157$ 25,738$ 27,018$ 28,098$ 92,010$
Adj EBITDA Margin 1.8% 2.8% 3.5% 2.8% 2.8%
1.8% 3.2% 2.9% 2.8% 2.7%
Q1 2015 Q2 2015 Q3 2015 Q4 2015 FY 2015
Steady Incremental
Growth in Adjusted
EBITDA
(1)
Normalized
2015
Guidance
2016
Implied Mid-
Point Growth
Revenue 3,366,631$ $4.3b - $4.6b +32%
Adj EBITDA 92,010$ $116m - $123m +30%
Adj EBITDA Margin 2.7% 2.7% Flat %
Adjusted EPS 0.73$ $0.84 - $0.89
Adjusted EPS w/2015 Avg Shares $0.95 +30%
(2)
(2) At mid-point of Revenue and Adjusted EBITDA
(3) Using 63.5 2015 shares, instead of 67.5 2016 expected shares
(3)
(1)
"Normalized
Adjustments: Q2 2015 Q3 2015 FY 2015
Pharma Incentive (3,000)$ (3,000)$
Bad Debt 3,000$ (3,000)$ -$
Total EBITDA Impact 3,000$ (6,000)$ (3,000)$
Margins impacted slightly by the mix of higher priced
drugs and slowing growth of pharma dollars

24. Confidential
23
Appendix

25. Confidential
24
Revenue by Therapeutic Class
($ in millions)
2015
% of
Total 2014 2013
Oncology 1,432,091$ 43% 1,068,751$ 736,987$
Hepatitis 520,771 15% <10% <10%
Immunology 510,708 15% 438,145 378,685
Infusion 374,884 11% <10% <10%
Multiple Sclerosis <10% N/A 226,805 169,470
Other (none greater than 10% in the period) 528,177 16% 481,255 229,997
3,366,631$ 2,214,956$ 1,515,139$
Limited distribution drug % of total 45% 44% 40%

26. Confidential
Recent Acquisitions
25
Acquired Company Consideration Rationale Other
June 19, 2015
• $87M gross purchase price*
• $77M cash*, $10M stock
• ~4.2x CY 2014 EBITDA
• Hep C dominance in Mid Atlantic
• Hep C is a fast growing and highly profitable disease state
• Proprietary technology (HealthTrac) with applicability across Diplomat’s
Hep C platform
• Proven management team
• 50 year old company, run by 2nd generation pharmacist
• No marketed sales process – Diplomat had a one-off look
• Lack of
auction/marketed
process
• Founder/owner led
• Management all on
board at DPLO
April 1, 2015
• $272M adjusted purchase price*
(~$50M tax benefit)
• $217M cash*, $105M stock
• ~11.8x CY 2014 EBITDA
• One year earnout of 1.35M shares
(all stock)
• Adds significant scale to specialty infusion business
• Provides ability to compete for national contracts
• Increases exposure to higher margin businesses
• Addition of new disease states, therapeutic categories & 5 new LD’s
• Lack of
auction/marketed
process
• Founder/owner led
• Management all on
board at DPLO
June 27, 2014
• $68.5 million gross purchase price*
• $52M cash upfront, $12M stock
• ~8x CY 2013 EBITDA
• Two year earnout max. $11.5M (all
cash)
• Strong management team
• Strong therapy mix: IVIG and Hemophilia
• Favorable geographic footprint
• Lack of
auction/marketed
process
• Founder/owner led
• Management all on
board at DPLO
December 16, 2013
• $13.4 million gross purchase price*
• $12M cash upfront
• ~6x CY 2013 EBITDA
• Two year earnout max. $2M (all
cash)
• First DPLO acquisition
• More than doubled hemophilia/specialty infusion business
• High margins
• Lack of
auction/marketed
process
• Management all on
board at DPLO
* Value includes closing working capital adjustments

27. Confidential
Calendar year ending December 31,
($ in millions) 4Q'15A 4Q'14A 2015A 2014A 2013A 2012A 2011A 2010A
Net income (loss) attributable to Diplomat $3.6 ($3.1) $25.8 $4.8 ($26.1) ($2.6) $9.2 ($7.8)
Depreciation & Amortization $10.0 $2.8 $30.8 $8.1 $3.9 $3.8 $3.1 $2.2
Interest Expense $1.5 $0.9 $5.2 $2.5 $2.0 $1.1 $0.6 $0.5
Income tax expense $2.3 ($2.3) $16.2 $4.7 - - - -
EBITDA $17.3 ($1.8) $78.1 $20.1 ($20.2) $2.3 $12.8 ($5.2)
Share-based compensations expense $1.4 $1.0 $4.0 $2.9 $0.9 $0.9 $1.4 $0.8
Change in fair value of redeemable common shares ($1.2) ($9.1) $34.3 $6.6 $10.7
Termination of existing stock redemption agreement $4.8
Employer payroll taxes - option repurchases $0.1 - $1.6
Restructuring and impairment charges - - $0.2 - $1.0 $0.4 $0.4 $1.5
Equity loss of non-consolidated entity - $5.1 $6.2 $1.1 $0.3 $0.1 -
Severance and related fees $0.1 - $0.5 $0.4 $0.2 $0.4 $0.7 -
Merger and acquisition related expenses $8.8 $5.5 $9.2 $7.2 $0.7 - - -
Private company expenses - - $0.2 $0.2
Tax credits and other - $1.4 $1.0 - ($0.1) ($0.6) -
Other items $0.4 $0.4 $1.5 $1.4 $0.7 $0.1 $0.2 ($0.0)
Adjusted EBITDA $28.1 $10.5 $95.0 $35.2 $19.0 $10.9 $15.1 $7.7
Reconciliation of Net income (loss) and Adjusted EBITDA
26
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Note: Financials are not pro forma for acquisitions.
Detailed footnotes on the following page.

28. Confidential
Reconciliation of Net income (loss) and Adjusted EBITDA
27
1) Share-based compensation expense relates to director and employee share-based awards.
(2) Restructuring and impairment charges reflect decreases in the fair market value of non-core property and assets, or actual losses on disposal of
such assets. 2013 charges primarily relate to the $932 write-down of our former Swartz Creek, Michigan headquarters facility to its fair value, after
we vacated it in favor of our present Flint, Michigan facility. 2012 charges primarily relate to our write-down of an externally purchased software
package we no longer utilize, as well as sales of Company-owned vehicles. 2011 charges include expense associated with the closure of our former
Cleveland, Ohio facility, the move of our Chicago, Illinois area facility, and sales of Company-owned vehicles.
(3) During the fourth quarter of 2014, we reassessed the recoverability of our investment in our non-consolidated entity, Ageology. Based upon this
assessment, we determined that a full impairment of $4,869 was warranted, primarily due to updated projections of continuing losses into the
foreseeable future. The remaining amounts in 2014, 2013 and 2012 represents our share of losses recognized by Ageology, using the equity method
of accounting. We first invested in Ageology, an anti-aging physician network dedicated to nutrition, fitness and hormones, in October 2011, in
connection with its formation.
(4) Employee severance and related fees primarily relates to severance for former management.
(5) Fees and expenses directly related to merger and acquisition activities, and the impact of changes in the fair value of related contingent
consideration liabilities.
(6) Primarily includes philanthropic activities performed at the direction of our majority shareholder.
(7) Represents (a) various tax credits received from the state of Michigan for facility improvement and employee hiring initiatives, (b) the one-time
costs associated with converting from an S-Corporation to a C-Corporation, and (c) a 2014 charge of $1,825 related to non-income tax obligations.
(8) Includes other expenses, predominantly option redemption payroll taxes and IT operating leases. Operating leases were initiated, in lieu of
purchases or capital leases for a subset of our IT spend, for a short period of time in 2013 and 2014 for liquidity purposes. We have since
discontinued the practice of leasing IT equipment. The cost of purchased IT equipment is reflected in depreciation and amortization.