| EarthLink - Non GAAP Reconciliations ITC^Deltacom Acquisition Page 17 Twelve Months Ended Dec. 31 Mar. 31 June 30 Sept. 30, Dec. 31 Mar. 31 June 30 Sept. 30, Sept. 30, 2008 2009 2009 2009 2009 2010 2010 2010 2010 Income from continuing operations 24,446 $ 32,497 $ 31,485 $ 29,867 $ 193,269 $ 26,747 $ 28,040 $ 21,385 $ 269,441 $ Income tax (benefit) provision (56,107) 20,944 17,896 16,914 (181,839) 16,792 17,182 15,139 (132,726) Depreciation and amortization 6,982 6,509 6,069 6,032 5,352 4,748 4,577 4,327 19,004 Stock-based compensation expense 5,814 4,390 3,026 3,136 2,679 2,667 1,707 2,704 9,757 Gain (loss) on investments, net 2,969 (259) (11) (35) 1,626 (418) (154) - 1,054 Interest expense and other, net 4,605 4,291 5,100 5,067 5,346 5,292 5,483 5,466 21,587 Impairment of goodwill and intangible assets 78,672 - - - 24,145 - - - 24,145 Restructuring and acquisition-related costs 4,973 488 4,927 (97) 297 1,435 (89) 1,921 3,564 Adjusted EBITDA 72,354 68,860 68,492 60,884 50,875 57,263 56,746 50,942 215,826 Purchases of property and equipment (1,877) (3,133) (1,927) (5,588) (2,471) (3,072) (2,711) (2,965) (11,219) Purchases of subscriber bases (352) - - - - - - - - Free cash flow 70,125 $ 65,727 $ 66,565 $ 55,296 $ 48,404 $ 54,191 $ 54,035 $ 47,977 $ 204,607 $ Revenue 216,069 $ 199,063 $ 185,597 $ 174,521 $ 164,548 $ 157,258 $ 153,007 $ 145,158 $ Free cash flow % of revenue 32% 33% 36% 32% 29% 34% 35% 33% Three Months Ended EARTHLINK, INC. Reconciliation of Net Income to Adjusted EBITDA and Free Cash Flow (in thousands) |