| 2004 2005 2006 2007 2008 1Q08 1Q09 Net income (loss) $ 17,838 $ 31,507 $ 33,300 $ 40,942 $ 4,811 $ 6,601 $ (9,339) (Income) loss from discontinued operations - - (1,349) (16,319) (18,925) (1,885) 8,612 Interest expense 9,137 11,552 11,410 20,995 18,143 5,387 3,246 Income taxes 10,934 17,659 19,939 25,806 5,456 2,890 (427) Depreciation & amortization of operating assets 14,062 12,818 14,020 21,502 24,389 5,208 4,759 Amortization of intangible assets 15,875 18,098 14,909 17,495 17,524 3,204 2,934 EBITDA $ 67,846 $ 91,634 $ 92,229 110,421 51,398 21,405 9,785 Restructuring, non-recurring and non-cash charges Adjusted EBITDA 4,646 9,338 Adjusted EBITDA $ 26,051 $19,123 Non-GAAP Information In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP, infoGROUP also discloses the following non- GAAP measures: (1) earnings before interest expense, income taxes and depreciation and amortization, or EBITDA, (2) adjusted EBITDA excluding the effects of the non-recurring charges related to the Derivative Litigation, the Stipulation of Settlement, and the SEC investigation, restructuring costs, impairments and write-down of assets, litigation settlement charges, and non-cash stock compensation expense and (3) adjusted earnings (loss) per share excluding the effects of the non-recurring charges related to the Derivative Litigation, the Stipulation of Settlement and the SEC investigation, restructuring costs, impairments and write-down of assets, litigation settlement charges, and non-cash stock compensation expense. Management believes EBITDA provides useful supplemental information to management and investors because management uses this information internally for evaluating the aggregate performance of the Company's operating businesses. In addition, EBITDA is commonly used as an analytical indicator within infoGROUP's industry and is a component of the Company's financial covenant calculations under its credit facilities, subject to certain adjustments. Additionally, management excludes the effects of the non-recurring charges related to the Derivative Litigation, the Stipulation of Settlement and the SEC investigation and the restructuring costs, impairments and write-down of assets, litigation settlement charges, and non-cash stock compensation expense because such items resulted from events that are non-recurring and are not part of on-going operations. Management believes that adjusted earnings per share and adjusted EBITDA provide useful supplemental information to management and investors because they better reflect the Company's on-going performance and business operations during the periods presented and is more useful to investors for comparative purposes. All companies do not calculate non-GAAP measures in the same manner and the non-GAAP financial measures presented in this press release may not be comparable to similar measures used by other companies. Non-GAAP measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of the Company's business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of the Company's results as reported under GAAP as measures of the Company's profitability or liquidity. The following provides a reconciliation from net income (loss) to EBITDA and adjusted EBITDA 4,646 9,338 $ 26,051 $19,123 (6,207) 49,493 $ 104,214 $100,891 |
