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| Additional Non GAAP Reconciliations EARTHLINK, INC. Reconciliation of Net Income (Loss) to Unlevered Free Cash Flow (4) (in thousands) Three Months Ended September 30, June 30, September 30, 2012 2013 2013 Net income (loss) $ 1,372 $ (11,201) $ (11,338) Interest expense and other, net 16,792 18,173 13,985 Income tax benefit (2,793) (3,329) (4,582) Depreciation and amortization 45,630 44,270 46,689 Stock-based compensation expense 2,663 4,010 1,238 Restructuring, acquisition and integration-related costs (2) 6,379 7,278 9,928 Loss from discontinued operations, net of tax (3) 491 292 225 Purchases of property and equipment (24,504) (34,401) (32,792) Unlevered Free Cash Flow (4) $ 46,030 $ 25,092 $ 23,353 Three Months Three Months Three Months Ended Ended Ended September 30, June 30, September 30, 2012 2013 2013 Net cash provided by operating activities 90,066 $ 11,696 $ 39,890 $ Income tax provision benefit (2,793) (3,329) (4,582) Non-cash income taxes 881 3,356 4,603 Interest expense and other, net 16,792 18,173 13,985 Amortization of debt discount, premium and issuance costs 497 (462) (996) Restructuring, acquisition and integration-related costs 6,379 7,278 9,928 Changes in operating assets and liabilities (41,527) 23,420 (6,910) Purchases of property and equipment (24,504) (34,401) (32,792) Other, net 239 (639) 227 Unlevered Free Cash Flow 46,030 $ 25,092 $ 23,353 $ Net cash used in investing activities (24,363) (15,471) (20,311) Net cash used in financing activities (13,362) (28,473) (17,576) EARTHLINK, INC. Reconciliation of Net Cash Flows from Operating Activities to Unlevered Free Cash Flow (in thousands) |