Non-GAAP Financial Measures This presentation includes ‘adjusted EBITDA,’ ‘adjusted Gross Profit,’ ‘adjusted Operating Income,’ ‘adjusted SG&A’ and other non-GAAP financial measures as defined in Regulation G of the Securities Exchange Act of 1934. Management believes that the disclosure of non-GAAP financial measures, when presented in conjunction with the corresponding GAAP measure, provides useful information to the Company, investors and other users of the financial statements and other financial information in identifying and understanding operating performance for a given level of net sales and business trends. Management believes that these non- GAAP financial measures are important to understanding the Company’s business because they reflect financial performance that is unencumbered by debt service, non-cash charges and non-recurring or unusual items. These adjusted financial measures are commonly used in the Company’s industry. However, these non-GAAP measures should not be considered as alternatives to cash flow from operating activities, as a measure of liquidity or as alternatives to net income as a measure of operating results in accordance with generally accepted accounting principles. The Company has provided a reconciliation of adjusted EBITDA and other non-GAAP measures to GAAP financial information in the Schedule of Non-GAAP reconciliations available by visiting DDI's web site at www.ddiglobal.com/investor. |