| Supplemental Information 22 The Company calculates Earnings before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") as net earnings (loss) before interest expense, income tax expense (benefit) and depreciation, and amortization expense. EBITDA is also before the cumulative effect of a change in accounting principle, if applicable. EBITDA is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net earnings (loss), operating earnings (loss), cash flow provided by operating activities or other income or cash flow data prepared in accordance with GAAP. However, the Company's management believes that EBITDA may provide additional information with respect to the Company's performance or ability to meet its future debt service, capital expenditures and working capital requirements. Because EBITDA excludes some, but not all, items that affect net earnings and may vary among companies, the EBITDA presented LaBarge, Inc may not be comparable to similarly titled measures of other companies. The Company calculates Earnings before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") as net earnings (loss) before interest expense, income tax expense (benefit) and depreciation, and amortization expense. EBITDA is also before the cumulative effect of a change in accounting principle, if applicable. The Company calculates EBITDA coverage of interest expense as interest expense divided by EBITDA. This ratio is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net earnings (loss), operating earnings (loss), cash flow provided by operating activities or other income or cash flow data prepared in accordance with GAAP. However, the Company's management believes that EBITDA coverage of interest expense may provide additional information with respect to the Company's performance or ability to meet its future interest rate payment requirements. Because EBITDA coverage of interest expense excludes some, but not all, items that affect net earnings and may vary among companies, the ratio presented LaBarge, Inc may not be comparable to similarly titled measures of other companies. Reconciliation of EBITDA to Net Earnings Reconciliation of EBITDA to Net Earnings FY05 FY06 FY07 FY08 FY09 FY09 Q3 FY09 Q4 FY10 Q1 FY10 Q2 FY10 Q3 TTM at 3/28/10 Net sales $ 182,294 $ 190,089 $ 235,203 $ 279,485 $ 273,368 $ 72,216 $ 64,753 $ 63,115 $ 69,000 $ 74,735 $ 271,603 Net earnings $ 10,870 $ 9,708 $ 11,343 $ 14,827 $ 10,338 $ 3,812 $ 2,608 $ 3,103 $ 2,837 $ 4,128 $ 12,676 PLUS: Interest expense $ 1,747 $ 2,083 $ 2,241 $ 1,459 $ 1,294 $ 508 $ 483 $ 508 $ 421 $ 400 $ 1,812 Income tax expense $ 5,995 $ 6,256 $ 6,656 $ 9,011 $ 6,329 $ 2,506 $ 1,457 $ 505 $ 1,569 $ 2,516 $ 6,047 Depreciation and amortization $ 4,302 $ 4,588 $ 5,030 $ 5,290 $ 6,930 $ 2,086 $ 2,079 $ 2,238 $ 2,278 $ 2,223 $ 8,818 EBITDA $ 22,914 $ 22,635 $ 25,270 $ 30,587 $ 24,891 $ 8,912 $ 6,627 $ 6,354 $ 7,105 $ 9,267 $ 29,353 EBITDA $ 22,914 $ 22,635 $ 25,270 $ 30,587 $ 24,891 $ 8,912 $ 6,627 $ 6,354 $ 7,105 $ 9,267 $ 29,353 Interest expense $ 1,747 $ 2,083 $ 2,241 $ 1,459 $ 1,294 $ 508 $ 483 $ 508 $ 421 $ 400 $ 1,812 EBITDA Coverage of Interest Expense 13.12 10.87 11.28 20.96 19.24 17.54 13.72 12.51 16.88 23.17 16.20 (EBITDA divided by interest expense) |
