Exhibit 99.2
ADJUSTED EBITDA RECONCILIATION
NDCHealth Corporation and Subsidiaries
Adjusted EBITDA is defined as Operating Income before Depreciation and Amortization, and Restructuring and Other Charges. Adjusted EBITDA is not a Generally Accepted Accounting Principles (GAAP) measurement and may not be comparable to EBITDA reported by other companies. Management believes Adjusted EBITDA is useful to investors, analysts and others because it provides a more meaningful representation of the company’s performance as it excludes certain items that either do not impact the company’s cash flows or which management believes are not reflective of the company’s core operating results over time.
Reconciliation of Adjusted EBITDA to Operating Income, the most directly comparable GAAP financial measure, for the three-month and nine-month periods ended February 25, 2005 and February 27, 2004 is provided below. Non-GAAP measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures.
(In Thousands)
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| | | Three Months Ended
| | Nine Months Ended
|
| | | February 25,
2005
| | February 27,
2004
| | February 25,
2005
| | February 27,
2004
|
| | | | | (As Restated) | | | | (As Restated) |
Operating Income | | $ | 14,225 | | $ | 22,936 | | $ | 30,213 | | $ | 63,136 |
Depreciation and Amortization | | | 9,751 | | | 9,000 | | | 30,587 | | | 26,397 |
Restructuring and Other Charges | | | 2,026 | | | — | | | 4,242 | | | 3,297 |
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Adjusted EBITDA | | $ | 26,002 | | $ | 31,936 | | $ | 65,042 | | $ | 92,830 |
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