Exhibit 99.1
EBITDA Reconciliation Information
Segment EBITDA and free cash flow could be considered non-GAAP financial measures in certain circumstances. A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes (includes) amounts that are not normally excluded (included) in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States. In order to fully assess our financial operating results, management believes that segment EBITDA and free cash flow are appropriate measures of evaluating our operating performance. However, these measures should be considered in addition to, not as a substitute for or superior to, operating income, cash flows or other measures of financial performance prepared in accordance with generally accepted accounting principles. These measures were included in our Form 8-K dated January 16, 2003 but not reconciled to the nearest corresponding GAAP measure as is now required under Regulation G. The following table reconciles these measures to the appropriate GAAP measures:
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| Three Months Ended |
| Year Ended |
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| 2002 |
| 2001 |
| 2002 |
| 2001 |
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| (in thousands) |
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EBITDA by segment: |
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United States |
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Reported income (loss) from operations |
| $ | 55,021 |
| $ | (15,814 | ) | $ | 106,375 |
| $ | (107,773 | ) |
Depreciation and amortization |
| 26,293 |
| 32,846 |
| 97,944 |
| 117,137 |
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Stock compensation expense |
| 710 |
| 989 |
| 8,402 |
| 7,247 |
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EBITDA—United States |
| $ | 82,024 |
| $ | 18,021 |
| $ | 212,721 |
| $ | 16,611 |
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International |
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Reported income (loss) from operations |
| $ | 346 |
| $ | (9,492 | ) | $ | (18,187 | ) | $ | (50,497 | ) |
Depreciation and amortization |
| 2,914 |
| 3,195 |
| 11,445 |
| 13,438 |
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Stock compensation expense |
| — |
| — |
| — |
| 1,849 |
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EBITDA—International |
| $ | 3,260 |
| $ | (6,297 | ) | $ | (6,742 | ) | $ | (35,210 | ) |
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Free Cash Flow: |
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Cash flow from operating activities |
| $ | 79,358 |
| $ | 12,983 |
| $ | 302,448 |
| $ | 106,850 |
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Acquisition of property and equipment |
| (16,672 | ) | (14,342 | ) | (51,553 | ) | (86,211 | ) | ||||
Change in long-term deferred revenue |
| — |
| — |
| (30,000 | ) | — |
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Non-cash restructuring costs |
| — |
| (3,132 | ) | — |
| (14,790 | ) | ||||
Non-cash investment gains (losses) and other |
| (1,285 | ) | (1,940 | ) | 110 |
| (32,423 | ) | ||||
Free cash flow |
| $ | 61,401 |
| $ | (6,431 | ) | $ | 221,005 |
| $ | (26,574 | ) |