16 Reconciliation of Net Income and Operating Income to Adjusted EBITDA ($ in thousands) Year Ended December 31, 2012 Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Corporate/ Regions Total Net Income (loss) ($36,986) Interest Income and other Interest expense Income tax provision Loss on early extinguishment of debt (5,659) 56,731 40,100 4,850 Operating Income (loss) $87,367 $39,412 $71,992 $33,642 ($97,298) ($76,079) $59,036 Depreciation and amortization Amortization of other intangible assets Special charges Goodwill impairment charge 3,424 6,239 11,936 – 3,715 1,944 7,672 – 2,863 1,615 991 – 12,501 7,946 3,114 – 2,555 4,663 4,712 110,387 4,546 – 1,132 – 29,604 22,407 29,557 110,387 Adjusted EBITDA (1) $108,966 $52,743 $77,461 $57,203 $25,019 ($70,401) $250,991 Year Ended December 31, 2011 Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Corporate/ Regions Total Net Income $103,903 Interest Income and other Interest expense Income tax provision Loss on early extinguishment of debt (6,304) 58,624 49,224 – Operating Income (loss) $78,923 $62,499 $60,890 $57,917 $19,066 ($73,848) $205,447 Depreciation and amortization Amortization of other intangible assets Special charges Goodwill impairment charge 3,480 5,795 9,440 – 3,423 2,419 839 – 2,552 1,493 2,093 – 11,168 7,926 – – 2,997 4,738 – – 4,962 – 2,840 – 28,582 22,371 15,212 – Adjusted EBITDA (1) $97,638 $69,180 $67,028 $77,011 $26,801 ($66,046) $271,612 (1) We define Adjusted EBITDA as net income before income tax provision, other income (expense), depreciation, amortization of intangible assets, special charges and goodwill impairment charges. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, special charges and goodwill impairment charges. We define Total Adjusted Segment EBITDA as the total of Adjusted Segment EBITDA for all segments. We define Adjusted Net Income and Adjusted Earnings Per Diluted Share as net income and earnings per diluted share, respectively, excluding the impact of the special charges, goodwill impairment and loss on early extinguishment of debt that were incurred in that period. Adjusted EBITDA, Adjusted Segment EBITDA, Total Adjusted Segment EBITDA, Adjusted Earnings Per Share and Adjusted Net Income are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same. These non-GAAP measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Comprehensive Income (Loss). Corporate Finance / Restructuring Corporate Finance / Restructuring |