| In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP, infoGROUP also discloses earnings before interest expense, income taxes and depreciation and amortization, or EBITDA, which is a non-GAAP measure. 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. All companies do not calculate EBITDA in the same manner and infoGROUP’s presentation may not be comparable to those presented by other companies. EBITDA should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures of infoGROUP’s profitability or liquidity. The following provides a reconciliation from net income to EBITDA: I 2004 2005 2006 2007 2008 Net income $17,838 $31,507 $33,300 $40,942 $4,811 Interest expense 9,137 11,552 11,410 20,995 18,143 Income taxes 10,934 17,659 19,939 25,806 5,456 Depreciation & amortization of operating assets 14,062 12,818 14,020 21,502 24,389 Amortization of intangible assets 15,875 18,098 14,909 17,495 17,524 EBITDA 567,846 $91,634 $93,578 $127,740 $70,323 |
