CVNA 2019 Proxy Statement

61 settle the 100k Milestone Gift are offset by share contributions from Mr. Garcia to Carvana, therefore we expect the impact on shares outstanding to be nearly zero. We believe that excluding it enables us to more effectively evaluate our performance period-over-period and relative to our competitors. A reconciliation of the gross profit ex-Gift amounts to each corresponding gross profit amount, which are the most directly comparable GAAP measures and include expenses attributable to the 100k Milestone Gift, and calculations of each gross profit per unit ex-Gift amount are as follows (dollars in thousands, except per unit amounts): YEARS ENDED DECEMBER 31, 2018 2017 2016 Used vehicle gross profit $ 94,319 $ 32,806 $ 5,944 100k Milestone Gift in used vehicle cost of sales 3,870 — — Used vehicle gross profit ex-Gift $ 98,189 $ 32,806 $ 5,944 Used vehicle unit sales 94,108 44,252 18,761 Used vehicle gross profit per unit ex-Gift $ 1,043 $ 741 $ 317 Wholesale vehicle gross profit $ 5,552 $ 1,845 $ 257 100k Milestone Gift in wholesale vehicle cost of sales 133 — — Wholesale vehicle gross profit ex-Gift $ 5,685 $ 1,845 $ 257 Wholesale vehicle unit sales 15,125 6,509 2,651 Wholesale vehicle gross profit per unit ex-Gift $ 376 $ 283 $ 97 Total gross profit $ 196,709 $ 68,091 $ 19,197 100k Milestone Gift in total cost of sales 4,003 — — Total gross profit ex-Gift $ 200,712 $ 68,091 $ 19,197 Used vehicle unit sales 94,108 44,252 18,761 Total gross profit per unit ex-Gift $ 2,133 $ 1,539 $ 1,023 EBITDA EX-GIFT AND EBITDA MARGIN EX-GIFT EBITDA ex-Gift and EBITDA margin ex-Gift are non-GAAP supplemental measures of operating performance that do not represent and should not be considered an alternative to net loss or cash flow from operations, as determined by GAAP. EBITDA ex-Gift is defined as net loss before interest expense, - -