Exhibit 99.3
ACCO Brands Corporation
Reconciliation of Net Loss to Adjusted Supplemental EBITDA from
Continuing Operations
(Unaudited)
(In millions of dollars)
| | Three Months | | Three Months | | Three Months | |
| | Ended | | Ended | | Ended | |
| | March 31, | | June 30, | | September 30, | |
| | 2008 | | 2008 | | 2008 | |
Net loss | | $ | (1.8 | ) | $ | (46.7 | ) | $ | (32.7 | ) |
Discontinued operations | | (0.3 | ) | 40.9 | | 17.7 | |
Restructuring charges | | 5.6 | | 1.6 | | 4.8 | |
Restructuring-related charges included in Cost of products sold | | 3.2 | | 1.9 | | 1.8 | |
Restructuring-related charges included in Advertising, selling, general and administrative | | 2.4 | | (2.5 | ) | (1.4 | ) |
Goodwill and asset impairment charges | | — | | 14.1 | | 11.3 | |
Income tax impact of adjustments | | (3.2 | ) | (1.9 | ) | 11.1 | |
Adjusted net income from continuing operations | | 5.9 | | 7.4 | | 12.6 | |
Interest expense, net | | 16.1 | | 15.8 | | 16.8 | |
Adjusted income tax expense | | 2.2 | | 2.9 | | 6.5 | |
Depreciation (A) | | 8.5 | | 8.0 | | 8.7 | |
Amortization of intangibles | | 1.9 | | 2.0 | | 1.8 | |
Minority interest expense, net of taxes | | — | | 0.4 | | 0.2 | |
Other (income) expense, net | | (0.9 | ) | 2.4 | | 0.5 | |
Stock-based compensation expense | | 0.9 | | 2.8 | | (0.3 | ) |
Adjusted supplemental EBITDA from continuing operations | | $ | 34.6 | | $ | 41.7 | | $ | 46.8 | |
| | | | | | | |
Adjusted supplemental EBITDA from continuing operations as a % of Net Sales | | 8.6 | % | 10.1 | % | 11.4 | % |
(A) Represents total depreciation less depreciation of $0.3 million, $0.4 million and $0.1 million for the three months ended March 31, 2008, June 30, 2008 and September 30, 2008, respectively, that have been included in restructuring-related costs, which are excluded from adjusted net income from continuing operations.
ACCO Brands Corporation
Reconciliation of Net Income (Loss) to Adjusted Supplemental EBITDA from Continuing Operations
(Unaudited)
(In millions of dollars)
| | Three Months | | Three Months | | Three Months | | Three Months | | Year | |
| | Ended | | Ended | | Ended | | Ended | | Ended | |
| | March 31, | | June 30, | | September 30, | | December 31, | | December 31, | |
| | 2007 | | 2007 | | 2007 | | 2007 | | 2007 | |
Net income (loss) | | $ | 0.2 | | $ | 4.5 | | $ | 8.7 | | $ | (14.3 | ) | $ | (0.9 | ) |
Discontinued operations | | (0.3 | ) | 0.2 | | 0.2 | | 34.8 | | 34.9 | |
Prior period sales adjustment | | 1.7 | | — | | (0.9 | ) | — | | 0.8 | |
Restructuring charges | | 0.7 | | 2.4 | | 11.3 | | 6.6 | | 21.0 | |
Restructuring-related charges included in Cost of products sold | | 3.0 | | 4.1 | | 3.0 | | 7.1 | | 17.2 | |
Restructuring-related charges included in Advertising, selling, general and administrative | | 3.8 | | 4.6 | | 4.6 | | 3.3 | | 16.3 | |
Goodwill and asset impairment charges | | — | | — | | — | | 2.3 | | 2.3 | |
Income tax impact of adjustments | | (2.9 | ) | (3.9 | ) | (5.7 | ) | (3.4 | ) | (15.9 | ) |
Adjusted net income from continuing operations | | 6.2 | | 11.9 | | 21.2 | | 36.4 | | 75.7 | |
Interest expense, net | | 14.9 | | 16.0 | | 16.5 | | 16.7 | | 64.1 | |
Adjusted income tax expense | | 1.5 | | 5.3 | | 10.4 | | 15.3 | | 32.5 | |
Depreciation (A) | | 7.4 | | 7.5 | | 8.1 | | 7.4 | | 30.4 | |
Amortization of intangibles | | 2.0 | | 2.0 | | 2.0 | | 1.9 | | 7.9 | |
Minority interest expense, net of taxes | | 0.1 | | 0.2 | | 0.2 | | 0.1 | | 0.6 | |
Other (income) expense, net | | 0.2 | | (0.3 | ) | (1.1 | ) | 0.5 | | (0.7 | ) |
Stock-based compensation expense | | 3.6 | | 4.0 | | 2.4 | | 1.1 | | 11.1 | |
Adjusted supplemental EBITDA from continuing operations | | $ | 35.9 | | $ | 46.6 | | $ | 59.7 | | $ | 79.4 | | $ | 221.6 | |
| | | | | | | | | | | |
Adjusted supplemental EBITDA from continuing operations as a % of Net Sales | | 8.5 | % | 10.6 | % | 12.8 | % | 15.7 | % | 12.1 | % |
(A) Represents total depreciation less depreciation of $0.2 million, $0.2 million, $0.2 million and $0.7 million for the three months ended March 31, 2007, June 30, 2007, September 30, 2007 and December 31, 2007, respectively, and $1.3 million for the twelve months ended December 31, 2007, that have been included in restructuring-related costs, which are excluded from adjusted net income from continuing operations.
