46 46 Non-GAAP Disclosure Continued – We routinely dispose of certain classes of fixed assets in the normal course of business, such as equipment and vehicles used in the production and delivery of our products. Less frequent are sales of facilities operated by the company. However, in fiscal 2005, we recognized gains on such sales of $2.1 million. These sales were executed in fiscal 2005 pursuant to a specific review of our leased and owned facilities. While the evaluation of our resources is an on-going process, the company does not currently have plans involving similar facility sales and, therefore, believes it is useful to adjust EBITDA to present a financial measure that excludes gains from these sales. – We believe these measures are an important indicator of our operating strength and the performance of our business because they provide a link between profitability and operating cash flow. – We believe these measures adjust for items which are generally not indicative of our core operating performance. – We also believe that analysts and investors use EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, adjusted operating profit, and adjusted net income as supplemental measures to evaluate the overall operating performance of companies in our industry. • We believe ROIC is a useful measure in providing investors with information regarding our performance. ROIC is a widely accepted measure of earnings efficiency in relation to total capital. We believe that the expenses associated with the environmental fine and remediation are non-recurring in nature and that such expenses are not reflective of our core operating performance. Accordingly, we believe it useful to exclude these expenses from adjusted ROIC. • Our management uses EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, adjusted operating profit, and adjusted net income: – as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis as they remove the impact of items not directly resulting from our core operations; – to evaluate the effectiveness of our operational strategies; and – to evaluate our capacity to fund capital expenditures and expand our business. • Our management uses ROIC and adjusted ROIC as a measure of how effectively we allocate our capital in our core operations and to measure progress against our longer-term value creation goals. • EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, adjusted operating profit, adjusted net income, ROIC and adjusted ROIC and the ratios derived from these measures as calculated by us are not necessarily comparable to similarly titled measures used by other companies. In addition, these measures: (a) do not represent net income or cash flows from operating activities as defined by GAAP; (b) are not necessarily indicative of cash available to fund our cash flow needs; and (c) should not be considered as alternatives to operating profit, net income, cash provided by operating activities, or our other financial information as determined under GAAP. | 
