PHOTRONICS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measure
Reconciliation of GAAP Net Income to Non-GAAP EBITDA
(in thousands)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||
May 3, | May 4, | May 3, | May 4, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
GAAP Net Income (a) | $ | 12,156 | $ | 15,950 | $ | 19,298 | $ | 17,992 | ||||||
Add: interest expense | 1,233 | 1,816 | 2,603 | 3,800 | ||||||||||
Add: income tax expense | 1,252 | 2,032 | 4,386 | 4,747 | ||||||||||
Add: depreciation and amortization | 19,293 | 18,550 | 39,900 | 35,972 | ||||||||||
Add (less): special items (b) | 912 | (13,310 | ) | 2,738 | (11,768 | ) | ||||||||
Non-GAAP EBITDA | $ | 34,846 | $ | 25,038 | $ | 68,925 | $ | 50,743 |
(a) | Includes net income attributable to noncontrolling interests. |
(b) | Special items consist of stock compensation expense, and in 2015 financing expenses in connection with the exchange of $57.5 million of 3.25% convertible senior notes, and in 2014 noncash gain on acquisition of DNP Photomask Technology Taiwan, Co., Ltd., a wholly-owned subsidiary of Dai Nippon Printing Co., Ltd., and related acquisition transaction expenses. |