EXHIBIT 99.2
ICT Group, Inc.
Reconciliation Tables for Investor Presentation on November 27, 2007
About Non-GAAP Financial Measures
Management uses certain non-GAAP measures of financial performance. These non-GAAP measures include EBITDA and adjusted EBITDA and are shown in the reconciliation table below.
EBITDA and Adjusted EBITDA
EBITDA is commonly defined as Earnings before Interest, Taxes, Depreciation and Amortization. Management believes that Adjusted EBITDA is a meaningful indicator of profitability for the business. Adjusted EBITDA excludes from EBITDA the effects of special charges (reversals).
Adjusted EBITDA, as presented, is supplemental information and is not presented and should not be considered in isolation, or as a substitute for ICT’s consolidated financial information presented under GAAP. There are potentially different definitions of EBITDA and ICT’s definition may differ from other definitions.
The reconciliation of net income to EBITDA and Adjusted EBITDA is as follows:
(in thousands) | ||||||||||||||||||||||||||||||||||||||
For fiscal years ended December 31: | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |||||||||||||||||||||||||||
Net income (loss), as reported | $ | (7,517 | ) | $ | 2,672 | $ | 2,427 | $ | 4,745 | $ | 6,729 | $ | 7,978 | $ | 2,968 | $ | (1,144 | ) | $ | (2,693 | ) | $ | 12,175 | $ | 16,811 | |||||||||||||
Addback: | ||||||||||||||||||||||||||||||||||||||
Interest expense, net | 180 | (398 | ) | 406 | 801 | 1,207 | 1,079 | 828 | 1,183 | 1,594 | 2,464 | 160 | ||||||||||||||||||||||||||
Income tax provision or benefit | (2,998 | ) | 1,708 | 1,549 | 3,033 | 4,302 | 4,506 | 1,398 | (856 | ) | (1,634 | ) | 4,133 | 1,888 | ||||||||||||||||||||||||
Depreciation and Amortization | 2,792 | 3,560 | 5,667 | 8,004 | 9,621 | 11,279 | 15,443 | 17,855 | 17,822 | 20,790 | 23,662 | |||||||||||||||||||||||||||
EBITDA | $ | (7,543 | ) | $ | 7,542 | $ | 10,049 | $ | 16,583 | $ | 21,859 | $ | 24,842 | $ | 20,637 | $ | 17,038 | $ | 15,089 | $ | 39,562 | $ | 42,521 | |||||||||||||||
Addback: | ||||||||||||||||||||||||||||||||||||||
Charge related to stock compensation at time of IPO | 12,690 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Restructuring charge (reversals) | — | — | — | — | — | — | 8,894 | (686 | ) | — | — | — | ||||||||||||||||||||||||||
Client claim | — | — | — | — | — | — | 1,409 | — | — | — | — | |||||||||||||||||||||||||||
Litigation costs | — | — | — | — | — | — | 1,673 | 4,693 | 10,338 | (3,611 | ) | |||||||||||||||||||||||||||
Writeoff of deferred offering costs | — | — | — | — | — | — | 581 | — | — | — | — | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 5,147 | $ | 7,542 | $ | 10,049 | $ | 16,583 | $ | 21,859 | $ | 24,842 | $ | 33,194 | $ | 21,045 | $ | 25,427 | $ | 35,951 | $ | 42,521 | ||||||||||||||||