Exhibit 99.5
SELECTED HISTORICAL CONSOLIDATED FINANCIAL INFORMATION
The following selected consolidated financial information set forth below is qualified by reference to, and should be read in conjunction with, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and notes thereto included in our Current Report on Form 8-K filed on June 4, 2009 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009, both of which are incorporated by reference herein. The selected historical consolidated financial and other data presented below for, and as of the end of, the fiscal years ended December 31, 2004, 2005, 2006, 2007 and 2008 have been derived from our audited consolidated financial statements. The selected historical consolidated financial and other data presented below for, and as of the end of, the three month periods ended March 31, 2008 and March 31, 2009 have been derived from our unaudited condensed consolidated financial statements and have been prepared on the same basis as the audited consolidated financial statements. Operating results for the three month period ended March 31, 2009 are not necessarily indicative of the results that may be expected for the year ending December 31, 2009.
The selected historical consolidated financial and other data provided below for the period from January 1, 2004 through August 20, 2004, or predecessor, and the period from August 21, 2004 through December 31, 2004, or successor, have been derived from our audited consolidated financial statements.
(Predecessor) Period from January 1, 2004 through August 20, 2004 | (Successor) Period from August 21, 2004 through December 31, 2004 | Year Ended December 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2008 | 2009 | |||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Statement of Operations Data | ||||||||||||||||||||||||||||||||
Product revenues | $ | 901,616 | $ | 490,222 | $ | 1,615,943 | $ | 1,822,141 | $ | 1,970,106 | $ | 2,224,704 | $ | 543,261 | $ | 563,080 | ||||||||||||||||
Services revenues | 524,238 | 343,771 | 902,617 | 989,242 | 1,030,672 | 1,079,473 | 267,346 | 279,481 | ||||||||||||||||||||||||
Total revenues | 1,425,854 | 833,993 | 2,518,560 | 2,811,383 | 3,000,778 | 3,304,177 | 810,607 | 842,561 | ||||||||||||||||||||||||
Cost of products | 839,774 | 460,946 | 1,545,588 | 1,753,638 | 1,925,547 | 2,163,943 | 532,027 | 551,585 | ||||||||||||||||||||||||
Cost of services: | ||||||||||||||||||||||||||||||||
Operating compensation and benefits | 244,168 | 143,142 | 418,102 | 458,006 | 479,177 | 523,939 | 130,188 | 137,640 | ||||||||||||||||||||||||
Other operating costs | 144,220 | 100,987 | 245,630 | 274,665 | 293,677 | 321,947 | 76,796 | 80,696 | ||||||||||||||||||||||||
Depreciation and amortization | 37,375 | 21,096 | 67,414 | 69,351 | 73,159 | 72,790 | 18,601 | 17,565 | ||||||||||||||||||||||||
Total cost of services | 425,763 | 265,225 | 731,146 | 802,022 | 846,013 | 918,676 | 225,585 | 235,901 | ||||||||||||||||||||||||
Total cost of products and services | 1,265,537 | 726,171 | 2,276,734 | 2,555,660 | 2,771,560 | 3,082,619 | 757,612 | 787,486 | ||||||||||||||||||||||||
General and administrative expense | 40,676 | 30,159 | 72,008 | 76,948 | 84,326 | 76,883 | 19,988 | 18,131 | ||||||||||||||||||||||||
Impairment and restructuring charges, net | — | — | — | — | 15,126 | 384,929 | 381,306 | 1,409 | ||||||||||||||||||||||||
Merger-related charges | 9,625 | 8,330 | — | — | — | — | — | — | ||||||||||||||||||||||||
Compensation under long-term incentive plan | — | — | 14,507 | — | — | — | — | — | ||||||||||||||||||||||||
Depreciation and amortization | 13,198 | 6,254 | 17,504 | 13,983 | 16,172 | 30,017 | 7,153 | 7,533 | ||||||||||||||||||||||||
1,329,036 | 770,914 | 2,380,753 | 2,646,591 | 2,887,184 | 3,574,448 | 1,166,059 | 814,559 | |||||||||||||||||||||||||
Income (loss) from operations | 96,818 | 63,079 | 137,807 | 164,792 | 113,594 | (270,271 | ) | (355,452 | ) | 28,002 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Interest expense, net | (10,931 | ) | (27,842 | ) | (84,174 | ) | (92,870 | ) | (95,342 | ) | (92,757 | ) | (24,200 | ) | (22,622 | ) | ||||||||||||||||
Loss on early extinguishment of debt | (38,272 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||
Other income (expense), net | 622 | 1,976 | — | — | — | 2,213 | 1,371 | — | ||||||||||||||||||||||||
Income (loss) before income taxes | 48,237 | 37,213 | 53,633 | 71,922 | 18,252 | (360,815 | ) | (378,281 | ) | 5,380 | ||||||||||||||||||||||
Income tax (provision) benefit | (21,939 | ) | (15,355 | ) | (20,652 | ) | (27,509 | ) | (7,447 | ) | (6,351 | ) | 922 | (3,604 | ) | |||||||||||||||||
Net income (loss) | 26,298 | 21,858 | 32,981 | 44,413 | 10,805 | (367,166 | ) | (377,359 | ) | 1,776 | ||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 20 | (106 | ) | (2,003 | ) | (2,388 | ) | (3,619 | ) | (3,324 | ) | (715 | ) | (759 | ) | |||||||||||||||||
Net income (loss) attributable to the Company | $ | 26,318 | $ | 21,752 | $ | 30,978 | $ | 42,025 | $ | 7,186 | $ | (370,490 | ) | $ | (378,074 | ) | $ | 1,017 | ||||||||||||||
Other Financial Data | ||||||||||||||||||||||||||||||||
EBITDA(1) | $ | 109,139 | $ | 94,379 | $ | 224,605 | $ | 250,275 | $ | 203,678 | $ | (165,361 | ) | $ | (329,143 | ) | $ | 53,669 | ||||||||||||||
Ratio of earnings to fixed charges(2) | 2.6x | 2.0x | 1.5x | 1.6x | 1.1x | N/A | N/A | 1.1x | ||||||||||||||||||||||||
Statement of Cash Flows Data: | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) Operating activities | $ | 131,649 | $ | 91,744 | $ | 124,555 | $ | 43,639 | $ | 198,030 | $ | 141,487 | $ | 50,864 | $ | 31,027 | ||||||||||||||||
Investing activities | (50,339 | ) | (22,884 | ) | (90,234 | ) | (110,768 | ) | (93,170 | ) | (137,004 | ) | (57,416 | ) | (15,342 | ) | ||||||||||||||||
Financing activities | 4,143 | (158,428 | ) | (28,883 | ) | 223,058 | (237,370 | ) | (49,263 | ) | (2,316 | ) | (11,318 | ) |
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As of December 31, | As of March 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | 2008 | 2009 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Balance Sheet Data (at end of period): | |||||||||||||||||||||
Working capital | $ | 186,577 | $ | 215,421 | $ | 254,022 | $ | 202,232 | $ | 198,616 | $ | 165,279 | $ | 205,005 | |||||||
Total assets | 2,031,798 | 2,111,047 | 2,359,982 | 2,208,650 | 1,842,853 | 1,887,973 | 1,809,697 | ||||||||||||||
Long term debt, excluding current maturities | 978,937 | 980,871 | 1,069,664 | 1,031,569 | 1,061,133 | 1,056,498 | 1,053,867 | ||||||||||||||
Total Company Stockholder’s equity | 582,323 | 600,249 | 580,741 | 554,323 | 195,415 | 176,829 | 192,937 |
(1) | EBITDA is net income before interest, taxes, depreciation, amortization (including amortization of stock-based compensation), and other (income) expense. We believe EBITDA is a commonly applied measurement of financial performance. EBITDA does not represent income or cash flows from operations, as these terms are defined under generally accepted accounting principles, and should not be considered as an alternative to net income as an indicator of our operating performance or to cash flows as a measure of liquidity. We believe that EBITDA is useful to investors, since it can provide investors with additional information that is not directly available in a GAAP presentation. Each gives investors an indication of our liquidity and financial condition and each is used in evaluating the value of companies in general and in evaluating the liquidity of companies, their debt service obligations and their ability to service their indebtedness. EBITDA is a key tool used by management in assessing business performance and financial condition both with respect to our business as a whole and with respect to individual sites or product lines. EBITDA as presented herein is not necessarily comparable to similarly titled measures reported by other companies. See our Current Report on Form 8-K filed on June 4, 2009 (which retrospectively adjusted portions of our Annual Report on Form 10-K for the year ended December 31, 2008) and the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009, both of which have been incorporated by reference herein. The following sets forth a reconciliation of EBITDA to net income. |
Period from January 1, 2004 through August 20, 2004 | Period from August 21, 2004 through December 31, 2004 | Year Ended December 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2008 | 2009 | |||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||
Net Income (loss) | $ | 26,298 | $ | 21,858 | $ | 32,981 | $ | 44,413 | $ | 10,805 | $ | (367,166 | ) | $ | (377,359 | ) | $ | 1,776 | ||||||||||||
Interest expense, net and other income | 10,309 | 25,866 | 84,174 | 92,870 | 95,342 | 92,757 | 24,200 | 22,622 | ||||||||||||||||||||||
Income tax provision (benefit) | 21,939 | 15,355 | 20,625 | 27,509 | 7,447 | 6,351 | (922 | ) | 3,604 | |||||||||||||||||||||
Depreciation and amortization | 50,573 | 27,350 | 84,918 | 83,334 | 89,331 | 102,807 | 25,754 | 25,098 | ||||||||||||||||||||||
Amortization of stock expense | — | 4,056 | 3,883 | 2,149 | 753 | 2,103 | 555 | 569 | ||||||||||||||||||||||
Noncontrolling interest | 20 | (106 | ) | (2,003 | ) | — | — | — | — | — | ||||||||||||||||||||
Other (income) expense | — | — | — | — | — | (2,213 | ) | (1,371 | ) | — | ||||||||||||||||||||
EBITDA | $ | 109,139 | $ | 94,379 | $ | 224,605 | $ | 250,275 | $ | 203,678 | $ | (165,361 | ) | $ | (329,143 | ) | $ | 53,669 | ||||||||||||
(2) | The ratio of earnings to fixed charges was calculated by dividing (i) net income (loss) before income taxes and fixed charges attributable to us by (ii) fixed charges which consist of interest expense incurred, including amortization of debt expense and discount, and one-third of rental expense, which approximates the interest portion of our rental expense. For the year ended December 31, 2008 and the three months ended March 31, 2008, earnings before fixed charges were insufficient to cover fixed charges by $365.2 million and $379.3 million, respectively. |
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