Supplemental Information 26 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 by 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 by LaBarge, Inc., may not be comparable to similarly titled measures of other companies. Reconciliation of EBITDA to Net Earnings (dollars in thousands, except per-share amounts) FY06 FY07 FY08 FY09 FY10 FY10 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY11 Q1 Net sales $ 190,089 $ 235,203 $ 279,485 $ 273,368 $ 289,303 $ 63,115 $ 69,000 $ 74,735 $ 82,413 $ 85,448 Net earnings $ 9,708 $ 11,343 $ 14,827 $ 10,338 $ 14,888 $ 3,103 $ 2,837 $ 4,128 $ 4,820 $ 4,928 PLUS: Interest expense $ 2,083 $ 2,241 $ 1,459 $ 1,294 $ 1,711 $ 508 $ 421 $ 400 $ 382 $ 398 Income tax expense $ 6,256 $ 6,656 $ 9,011 $ 6,329 $ 7,147 $ 505 $ 1,569 $ 2,516 $ 2,557 $ 2,710 Depreciation and amortization $ 4,588 $ 5,030 $ 5,290 $ 6,930 $ 9,289 $ 2,238 $ 2,278 $ 2,223 $ 2,559 $ 2,168 EBITDA $ 22,635 $ 25,270 $ 30,587 $ 24,891 $ 33,035 $ 6,354 $ 7,105 $ 9,267 $ 10,318 $ 10,204 EBITDA $ 22,635 $ 25,270 $ 30,587 $ 24,891 $ 33,035 $ 6,354 $ 7,105 $ 9,267 $ 10,318 $ 10,204 Interest expense $ 2,083 $ 2,241 $ 1,459 $ 1,294 $ 1,711 $ 508 $ 421 $ 400 $ 382 $ 398 EBITDA Coverage of Interest Expense 10.87 11.28 20.96 19.24 19.31 12.51 16.88 23.17 27.01 25.64 (EBITDA divided by interest expense) |