37 Appendix I Reconciliation of Quarterly Adjusted EBITDA To Net Income (Loss) Note: Adjusted EBITDA is defined in the Company's credit facilities, as amended from time to time. ($ in thousands) Trailing 12 mo. Q1 2006 12,893 8,252 1,991 6,267 1,895 - - - - - - - - - - - - - - - - - - - - - - - - 31,298 Q2 2006 11,179 7,186 3,603 6,776 2,138 - - - - - - - - - - - - - - - - - - - - - - - - 30,882 Q3 2006 21,675 12,655 7,227 8,554 2,111 - - - - - - - - - - - - - - - - - - - - - - - - 52,222 Q4 2006 28,049 17,143 6,662 8,692 1,017 - - - - - - - - - - - - - - - - - - - - - - - - 61,563 Q1 2007 Q2 2007 Q3 2007 Q4 2007 10,453 6,628 7,168 8,156 1,860 - - - - - - - - - - - - - - - - - - - - - - - - 34,265 6,511 4,309 7,305 7,918 2,288 - - - - - - - - - - - - - - - - - - - - - - - - 28,331 21,328 13,846 7,199 9,308 2,262 - - - - - - - - - - - - - - - - - - - - - - - - 53,943 25,437 16,313 6,419 9,301 2,200 - - - - - - - - - - - - - - - - - - - - - - - - 59,670 Net Income (Loss) Income Taxes Interest Expense Depreciation & Amortization Stock-Based Compensation Goodwill & Other Intangible Asset Impairment Cash Restructuring Charges Transaction Costs Lower of Cost or Market Adjustment, Net Asset Impairments (recovery) Gain on Embedded Derivative ADJUSTED EBITDA Q1 2008 6,100 3,823 8,522 9,144 2,871 - - - - 226 - - - - - - - - - - - - - - - - 30,686 Q2 2008 13,466 8,537 7,748 8,645 3,442 - - - - 640 - - - - - - - - - - - - - - - - 42,478 Q3 2008 30,494 18,554 7,463 8,665 1,563 - - - - 43 - - - - - - - - - - - - - - - - 66,782 Q4 2008 23,218 17,092 7,761 8,334 1,628 - - - - 150 - - - - 2,739 157 - - - - 61,079 Q1 2009 (529,981) (34,861) 6,623 8,324 1,372 517,628 2,479 - - - - 29,378 623 - - - - 1,585 Q2 2009 Q3 2009 Q4 2009 2,607 1,825 6,487 7,586 1,241 - - - - 1,213 401 - - - - 26 - - - - 21,386 (101,851) (7,495) 9,578 7,640 1,045 - - - - 1,564 107,718 - - - - 347 - - - - 18,546 (121,571) (16,382) 6,168 8,436 1,177 104,936 3,796 629 10,608 5,295 - - - - 3,092 a On October 20, 2009, the Company amended and restated its Term Note facility which defines adjusted EBITDA. Adjusted EBITDA excludes non-cash charges for goodwill and other asset impairments, lower of cost or market charges and stock compensation as well as certain non-recurring charges. As such, the historical information is presented in accordance with the definition above. Concurrent with the amendment and restatement of the term note facility, the Company entered into an Asset-Backed Lending facility which has substantially the same definition of adjusted EBITDA except that the ABL facility caps certain non-recurring charges. The Company is disclosing adjusted EBITDA, which is a non-GAAP measure, because it is used by management and provided to investors to provide comparability of underlying operational results. a, b Q1 2010 (10,486) (5,779) 4,507 7,522 801 - - - - 524 174 - - - - 1,029 (919) (2,627) a (117,386) (16,985) 25,242 30,227 4,490 - - - - 4,130 108,293 - - - - 1,286 (923) 38,374 a, b a, b a, b a, b a, b a, b b Amounts have been retrospectively adjusted as a result of the adoption, effective November 2, 2009, of ASC Subtopic 470-20, "Debt with Conversion and Other Options." Q2 2010 (7,656) (5,536) 4,670 7,479 1,403 - - - - 829 - - - - - - - - (116) (4) 1,069 a, b |