Exhibit 99.1
[CENVEO logo]
For Immediate Release February 14, 2005
CENVEO ANNOUNCES FOURTH QUARTER RESULTS WHICH MEET REVISED
GUIDANCE
ENGLEWOOD, COLO. (FEBRUARY 14, 2005) -- Cenveo, Inc., (NYSE: CVO)
announced its results for the quarter and the year ended December
31, 2004. Net loss in the quarter was $3.6 million, or $0.08 per
share, and for the year the net loss was $19.7 million, or $0.41
per share. Sales were $482 million in the quarter and $1,743
million for the year ended December 31, 2004. Last year in the
fourth quarter, the net income was $2.5 million or $0.05 per share,
on $424 million of sales and for the twelve months ended December
31, 2003, net income was $5.2 million, or $0.11 per share, on
$1,672 million of sales. Sales in the quarter increased 13.5% as
compared to the same period last year and on a full year basis, the
company had growth of 4.3% in sales. Cenveo's net loss for the year
ended December 31, 2004, included a first quarter charge for early
extinguishment of debt of $17.7 million.
EBITDA for the fourth quarter of 2004 was $34.3 million compared to
EBITDA of $34.2 million achieved for the same period last year. For
the year ended December 31, 2004, EBITDA was $128.6 million
compared to $126.2 million for the same period last year, a 1.9%
improvement. The revised guidance provided in December 2004 was a
range of $126 million to $129 million of EBITDA. An explanation of
the Company's use of EBITDA for comparative purposes is provided
below.
Net cash provided by operating activities in the quarter ended
December 31, 2004 was $10 million compared to $26 million provided
during the comparable period of 2003. Net cash provided by
operating activities in 2004 was $24 million compared to $59
million provided during 2003.
Paul Reilly, President and CEO, stated, "In the fourth quarter we
continued to see increases in volumes of work. However, margins
continued to be tight. We are taking measures to mitigate this
situation. We will discuss guidance for 2005 during the conference
call to be held later today."
Cenveo will hold a conference call today, Monday February 14, 2005
at 1:00 p.m. Eastern Time (12 noon Central, 11:00 a.m. Mountain,
10:00 a.m. Pacific Time). To participate in the Cenveo conference
call, please dial in to 1-888-639-6218 and provide conference ID
640016. Please call 5-7 minutes before the call is to begin. The
conference call will also be available via webcast. To listen to
the webcast, go to www.cenveo.com, www.streetevents.com, or
www.fulldisclosure.com.
INTERNATIONAL DIAL-IN: An operator will dial out to you. Contact
Cenveo Investor Relations at 303-730-8023 or email:
bea.rodriguez@cenveo.com no later than 1 hour prior to the call
with your telephone information.
- more -
If you are unable to join the Cenveo conference call, you may
access a replay of the call starting Monday, February 14, 2005 at
3:00 pm Eastern Time until Midnight Eastern Time, February 21,
2005. To access the replay, please dial 888-211-2648 and reference
the conference ID 640016.
EBITDA (earnings before interest, taxes, depreciation and
amortization) should not be considered as an alternative to any
measure of operating results as promulgated under accounting
principles generally accepted (GAAP) in the United States (such as
operating income or net income), nor should it be considered as an
indicator of our overall financial performance. EBITDA does not
fully consider the impact of investing or financing transactions as
it specifically excludes depreciation and interest charges, which
should also be considered in the overall evaluation of results.
Additionally, our method of calculating EBITDA may be different
from the method used by other companies and therefore comparability
may be limited. EBITDA has not been provided as a measure of
liquidity. The Supplemental Information to the press release
includes the Company's Statement of Cash Flows.
We use EBITDA as a supplemental measure of performance because we
believe it gives the reader a more complete understanding of our
operating results before the impact of investing and financing
transactions. A reconciliation of net income (loss) under U.S. GAAP
to EBITDA is presented in the Supplemental Information to this
press release.
ABOUT CENVEO
Cenveo, Inc. (NYSE: CVO), www.cenveo.com, is one of North America's
leading providers of visual communications with one-stop services
from design through fulfillment. The company is uniquely positioned
to serve both direct customers through its commercial segment, and
distributors and resellers of printed office products through its
Quality Park resale segment. The company's broad portfolio of
services and products include e-services, envelopes, offset and
digital printing, labels and business documents. Cenveo currently
has approximately 10,000 employees and more than 80 production
locations plus five advanced fulfillment and distribution centers
throughout North America. In early 2004, Cenveo was voted second
place in the printing and publishing category as Fortune Magazine's
Most Admired Companies and ranked number five of the Russell 3000
companies on Corporate Governance Quotients by Institutional
Shareholder Services. The company is headquartered in Englewood,
Colorado.
This press release may contain certain forward-looking statements
of management. It should be understood that all such statements are
subject to various uncertainties and risks that could affect their
outcome. Factors which could cause or contribute to such
differences include, but are not limited to, the ability to execute
strategic initiatives, economic conditions, product demand and
sales, ability to obtain assumed productivity and cost savings,
interest rates, foreign currency exchange rates, paper and raw
material costs and the ability to pass them through to customers,
waste paper prices, postage rates, union relations, competition and
competitors' actions, availability of financing, and changes in the
direct mail industry. Please refer to the company's 10-K, 10-Q and
other SEC filings for a more detailed discussion of the risks. None
of management's statements in this release should be considered an
offer to sell or a solicitation of an offer to buy Cenveo
securities.
CONTACT: Mr. Michel P. Salbaing
Senior Vice President and Chief Financial Officer
Cenveo, Inc.
(303) 790-8023
# # #
[CENVEO logo]
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
(unaudited)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
----------- -----------
2004 2003 2004 2003
CONSOLIDATED RESULTS
- --------------------
Net sales $ 481,677 $ 424,300 $ 1,742,914 $ 1,671,664
Gross profit 92,838 89,624 349,393 334,546
Operating income 17,872 23,288 72,735 80,215
Income (loss) from continuing operations (3,598) 2,903 (20,938) 3,924
Loss (gain) on disposal of discontinued operations - 372 (1,230) (1,548)
Cumulative effect of change in accounting principle - - - 322
- ---------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ (3,598) $ 2,531 $ (19,708) $ 5,150
Net income (loss) per share - assuming dilution $ (0.08) $ 0.05 $ (0.41) $ 0.11
- ---------------------------------------------------------------------------------------------------------------------------
SEGMENT INFORMATION
NET SALES:
Commercial $ 370,982 $ 326,826 $ 1,329,778 $ 1,272,525
Resale 110,695 97,474 413,136 399,139
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 481,677 $ 424,300 $ 1,742,914 $ 1,671,664
OPERATING INCOME (EXPENSE):
Commercial $ 12,257 $ 19,063 $ 50,538 $ 58,704
Resale 9,811 12,445 43,102 44,703
Corporate services and other charges (4,196) (8,220) (20,905) (23,192)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 17,872 $ 23,288 $ 72,735 $ 80,215
OPERATING INCOME MARGINS:
Commercial 3.3% 5.8% 3.8% 4.6%
Resale 8.9% 12.8% 10.4% 11.2%
EBITDA (1):
Commercial $ 26,209 $ 27,844 $ 95,844 $ 94,921
Resale 12,327 14,822 52,604 54,498
Corporate (4,257) (8,498) (19,801) (23,173)
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 34,279 $ 34,168 $ 128,647 $ 126,246
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL POSITION DECEMBER 31, 2004 DECEMBER 31, 2003
Working capital $ 113,391 $ 102,773
Total assets 1,163,776 1,107,393
Total debt 769,769 748,961
Shareholders' equity 57,354 68,019
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) See Appendix 1 in the Supplemental Information to the Press Release for
the definition of EBITDA, the reconciliation of net income to EBITDA and the
reason why EBITDA is a relevant non-GAAP financial measure for Cenveo.
[CENVEO logo]
Supplemental Information to the Press Release
For the Quarter Ended
December 31, 2004
Released February 14, 2005
[CENVEO logo]
- ------------------------------------------------------------------------------------
Fourth Quarter Ended December 31, 2004
Page
Financial and Operational Summary and Recent Developments 1, 2
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Consolidated Balance Sheets 3
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Consolidated Statements of Operations 4
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Consolidated Cash Flow Statements 5
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Segment Results 6
- ------------------------------------------------------------------------------------
Appendix 1 - Reconciliation of Net Income to EBITDA 7, 8
- ------------------------------------------------------------------------------------
Financial and Operational Summary and Recent Developments
- ----------------------------------------------------------------------------
Three months ended December 31, 2004
Financial and Operational Summary
- ---------------------------------
CONSOLIDATED RESULTS: Net sales increased $57.4 million in the fourth
quarter 2004 compared to net sales for the same period in 2003. Sales from
acquisitions contributed $11.4 million in the period. Operating income
decreased by $5.4 million in the fourth quarter as compared to operating
income in fourth quarter of 2003.
COMMERCIAL: Net sales in the fourth quarter of 2004 increased $44.2 million
to $371.0 million compared to net sales of $326.8 million in the fourth
quarter of 2003.
RESALE: Net sales in the fourth quarter of 2004 increased by $13.2 million
to $110.7 million compared to net sales of $97.5 million in the fourth
quarter of 2003.
DEBT: Net cash provided by operating activities was $10.5 million for the
quarter and total debt increased by $0.2 million in the quarter.
CAPITAL EXPENDITURES: During the quarter ended December 31, 2004, capital
expenditures were $7.2 million compared to $11.9 million in the same period
last year.
AVAILABILITY: Credit available under our credit facility was $110.8 million
based on the certificate filed on January 21,2005.
Financial and Operational Summary and Recent Developments
- ----------------------------------------------------------------------------
Three months ended December 31, 2004
Recent Developments
- -------------------
o The Company announced on January 7, 2005 that Paul Reilly intends to
resign as the Chairman, President and Chief Executive Officer of Cenveo. Mr.
Reilly has agreed to remain as President and Chief Executive Officer to
assist in the transition to his successor.
o The Company announced on December 20, 2004 the launch of eCENergy, a web
portal providing access to a suite of eSolutions designed to automate and
streamline transactions with customers. Cenveo customers can securely login
to their custom branded web portal, then choose from a menu of time-and
cost-saving applications that currently includes an online print ordering
and fulfillment system called eCatalog; soft and remote proofing; and
digital asset management.
o The Company announced on December 3, 2004 that its Los Angeles facility,
Cenveo Anderson Lithograph, was awarded the Sappi 2004 International Printer
of the Year Award. The winning entry was the Cadillac XLR 2004 brochure for
General Motors. The Sappi International Printer award is one of the printing
industry's most prestigious honors, and in April, Cenveo Anderson Lithograph
was also named the North American Printer of the Year.
CENVEO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
DECEMBER 31 DECEMBER 31
(IN THOUSANDS) 2004 2003
ASSETS
Current assets:
Cash and cash equivalents $ 796 $ 307
Accounts receivable, net 252,711 223,541
Inventories, net 112,219 91,402
Other current assets 46,019 48,135
- ----------------------------------------------------------------------------------------------------------------------------
Total current assets 411,745 363,385
- ----------------------------------------------------------------------------------------------------------------------------
Property, plant and equipment, net 367,260 388,240
Goodwill 308,938 299,392
Other intangible assets, net 28,788 19,687
Other assets, net 47,045 36,689
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 1,163,776 $ 1,107,393
- ----------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 172,731 $ 140,468
Accrued compensation and related liabilities 58,639 53,209
Other current liabilities 64,714 64,360
Current maturities of long-term debt 2,270 2,575
- ----------------------------------------------------------------------------------------------------------------------------
Total current liabilities 298,354 260,612
- ----------------------------------------------------------------------------------------------------------------------------
Long-term debt, less current maturities 767,499 746,386
Deferred income taxes - 6,717
Other liabilities 40,569 25,659
- ----------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,106,422 1,039,374
- ----------------------------------------------------------------------------------------------------------------------------
Shareholders' equity:
Common stock 487 484
Paid-in capital 214,902 213,850
Retained deficit (170,039) (150,331)
Deferred compensation (2,003) (1,714)
Accumulated other comprehensive income 14,007 5,730
- ----------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 57,354 68,019
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,163,776 $ 1,107,393
- ----------------------------------------------------------------------------------------------------------------------------
CENVEO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
(in thousands, except per share data) 2004 2003 2004 2003
Net sales $ 481,677 $ 424,300 $ 1,742,914 $ 1,671,664
Cost of sales 388,839 334,676 1,393,521 1,337,118
- ------------------------------------------------------------------------------------------------------------------------------
Gross profit 92,838 89,624 349,393 334,546
- ------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Selling, general and administrative expenses 69,143 60,258 265,870 245,689
Amortization of intangibles 1,267 536 5,381 1,899
Settlement of litigation - 5,330 - 5,330
Restructuring, impairment charges and other 4,556 212 5,407 1,413
- ------------------------------------------------------------------------------------------------------------------------------
Operating income 17,872 23,288 72,735 80,215
- ------------------------------------------------------------------------------------------------------------------------------
Other expense:
Interest expense 19,353 17,728 73,125 71,891
Loss on early extinguishment of debt - - 17,748 -
Other 706 755 2,459 1,819
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations before
income taxes and cumulative effect of a change in
accounting principle (2,187) 4,805 (20,597) 6,505
Income tax expense 1,411 1,902 341 2,581
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations before
cumulative effect of a change in accounting principle (3,598) 2,903 (20,938) 3,924
Loss (gain) on disposal of discontinued operations,
net of taxes of $770 in 2004 - 372 (1,230) (1,548)
Cumulative effect of a change in accounting principle - - - 322
- ------------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ (3,598) $ 2,531 $ (19,708) $ 5,150
- ------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) per share - basic and diluted:
Continuing operations $ (0.08) $ 0.06 $ (0.44) $ 0.08
Discontinued operations - (0.01) 0.03 0.04
Cumulative effect of a change in accounting principle - - - (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Earnings (loss) per share - diluted $ (0.08) $ 0.05 $ (0.41) $ 0.11
- ------------------------------------------------------------------------------------------------------------------------------
Weighted averages shares - basic 47,764 47,719 47,750 47,687
Weighted averages shares - diluted 47,764 48,540 47,750 48,315
CENVEO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
YEAR ENDED
DECEMBER 31
(in thousands) 2004 2003
Cash flows from operating activities:
Income (loss) from continuing operations $ (20,938) $ 3,924
Adjustments to reconcile income (loss) from continuing operations to net cash
provided by (used in) operating activities:
Depreciation 47,602 46,069
Amortization 9,959 5,883
Asset impairments 3,228 -
Write-off of deferred financing fees 4,220 -
Deferred income tax benefit (12,536) (10,854)
Loss on disposal of assets 686 1,221
Other noncash charges, net 198 435
Changes in operating assets and liabilities, excluding effects of acquired businesses:
Accounts receivable (23,283) 3,414
Inventories (18,122) 14,647
Accounts payable and accrued compensation 32,784 (15,417)
Income taxes payable (1,663) 12,212
Other working capital changes (711) (1,952)
Other, net 3,039 (123)
- -------------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 24,463 59,459
Cash flows from investing activities:
Acquisitions, less cash acquired (13,174) (2,800)
Capital expenditures (27,435) (31,602)
Proceeds from divestitures, net 2,000 3,864
Proceeds from sales of property, plant and equipment 3,012 682
- -------------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (35,597) (29,856)
Cash flows from financing activities:
Proceeds from long-term debt 2,724,655 1,915,452
Repayment of long-term debt (2,703,847) (1,948,299)
Proceeds from the issuance of common stock 48 75
Capitalized loan fees (9,077) (484)
- -------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 11,779 (33,256)
Effect of exchange rate changes on cash and cash equivalents (156) 1,310
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 489 (2,343)
Cash and cash equivalents at beginning of year 307 2,650
- -------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of year $ 796 $ 307
- -------------------------------------------------------------------------------------------------------------------------------
CENVEO, INC. AND SUBSIDIARIES
SEGMENT RESULTS
(unaudited)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
(in thousands) 2004 2003 2004 2003
Net sales:
Commercial $ 370,982 $ 326,826 $ 1,329,778 $ 1,272,525
Resale 110,695 97,474 413,136 399,139
- ----------------------------------------------------------------------------------------------------------------------------
Total net sales $ 481,677 $ 424,300 $ 1,742,914 $ 1,671,664
- ----------------------------------------------------------------------------------------------------------------------------
Operating income (expense):
Commercial $ 12,257 $ 19,063 $ 50,538 $ 58,704
Resale 9,811 12,445 43,102 44,703
Corporate services (4,196) (8,220) (20,905) (23,192)
- ----------------------------------------------------------------------------------------------------------------------------
Total operating income $ 17,872 $ 23,288 $ 72,735 $ 80,215
- ----------------------------------------------------------------------------------------------------------------------------
EBITDA (1):
Commercial $ 26,209 $ 27,844 $ 95,844 $ 94,921
Resale 12,327 14,822 52,604 54,498
Corporate services (4,257) (8,498) (19,801) (23,173)
- ----------------------------------------------------------------------------------------------------------------------------
Total EBITDA $ 34,279 $ 34,168 $ 128,647 $ 126,246
- ----------------------------------------------------------------------------------------------------------------------------
Net sales by product line:
Commercial printing $ 227,031 $ 197,219 $ 821,332 $ 777,638
Envelopes 203,523 178,189 719,465 693,929
Business forms and labels 51,123 48,892 202,117 200,096
- ----------------------------------------------------------------------------------------------------------------------------
Total net sales $ 481,677 $ 424,300 $ 1,742,914 $ 1,671,663
- ----------------------------------------------------------------------------------------------------------------------------
<FN>
(1) See Appendix 1 in the Supplemental Information to the Press
Release for the definition of EBITDA, the reconciliation of net
income to EBITDA and the reason why EBITDA is a relevant non-GAAP
financial measure for Cenveo.
APPENDIX 1 - RECONCILIATION OF NET INCOME TO EBITDA
FOR THE THREE MONTHS ENDED DECEMBER 31, 2004 AND 2003
Cenveo, Inc. and Subsidiaries
(in thousands)
(unaudited)
FOR THE THREE MONTHS ENDED DECEMBER 31, 2004
COMMERCIAL RESALE CORPORATE TOTAL
Net income (loss) $ 12,131 $ 9,836 $ (25,565) $ (3,598)
Interest - - 19,353 19,353
Taxes - - 1,411 1,411
Depreciation 9,992 2,349 247 12,588
Amortization (excluding amortization included in interest) 1,155 142 - 1,297
Asset impairments recorded in the fourth quarter 2,931 - 297 3,228
- -----------------------------------------------------------------------------------------------------------------------------------
EBITDA $ 26,209 $ 12,327 $ (4,257) $ 34,279
FOR THE THREE MONTHS ENDED DECEMBER 31, 2003
COMMERCIAL RESALE CORPORATE TOTAL
Net income (loss) $ 18,676 $ 12,365 $ (28,510) $ 2,531
Interest - - 17,728 17,728
Taxes - - 1,902 1,902
Depreciation 8,866 2,224 127 11,217
Amortization (excluding amortization included in interest) 302 233 - 535
Tax adjustment included in discontinued operations - - 372 372
Gain on asset held for sale - - (117) (117)
- -----------------------------------------------------------------------------------------------------------------------------------
EBITDA $ 27,844 $ 14,822 $ (8,498) $ 34,168
Note: This schedule is a reconciliation of net income to EBITDA which we
define as earnings before interest, taxes, depreciation and amortization and
excluding asset impairments in 2004 and the tax adjustment included in
discontinued operations and gain on assets held for sale in 2003. EBITDA
should not be considered as an alternative to any measure of operating
results as promulgated under accounting principles generally accepted in the
United States (such as operating income or net income), nor should it be
considered as an indicator of our overall financial performance. EBITDA does
not fully consider the impact of investing or financing transactions as it
specifically excludes depreciation and interest charges, which should also
be considered in the overall evaluation of results. Additionally, our method
of calculating EBITDA may be different from the method used by other
companies, and therefore, comparability may be limited. EBITDA has not been
provided as a measure of liquidity. EBITDA provides useful supplemental
information to investors since it excludes the impact of investing or
financing transactions on our operating results.
APPENDIX 1 - RECONCILIATION OF NET INCOME TO EBITDA
FOR THE YEAR ENDED DECEMBER 31, 2004 AND 2003
CENVEO, INC. AND SUBSIDIARIES
(in thousands)
(unaudited)
FOR THE YEAR ENDED DECEMBER 31, 2004
COMMERCIAL RESALE CORPORATE TOTAL
Net income (loss) $ 50,397 $ 43,030 $ (113,135) $ (19,708)
Interest - - 73,125 73,125
Taxes, including taxes included in discontinued operations - - 1,111 1,111
Depreciation 37,753 9,027 822 47,602
Amortization (excluding amortization included in interest) 4,762 547 232 5,541
Loss on early extinguishment of debt - - 17,748 17,748
Asset impairments recorded in the fourth quarter 2,932 - 296 3,228
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA $ 95,844 $ 52,604 $ (19,801) $ 128,647
FOR THE YEAR ENDED DECEMBER 31,2003
COMMERCIAL RESALE CORPORATE TOTAL
Net income (loss) $ 57,528 $ 44,456 $ (96,834) $ 5,150
Interest - - 71,891 71,891
Taxes - - 2,581 2,581
Depreciation 36,430 9,106 532 46,068
Amortization (excluding amortization included in interest) 963 936 - 1,899
Gain on asset held for sale - - (117) (117)
Tax adjustment included in discontinued operations - - (1,548) (1,548)
Cumulative effect of a change in accounting principle - - 322 322
- ------------------------------------------------------------------------------------------------------------------------------------
EBITDA $ 94,921 $ 54,498 $ (23,173) $ 126,246
Note: This schedule is a reconciliation of net income to EBITDA which we
define as earnings before interest, taxes, depreciation and amortization and
excluding asset impairments, the loss from the early extinguishment of debt
and the income tax impact included in the gain on the disposal of
discontinued operations recorded in 2004, and the tax adjustment reported as
a gain on disposal of discontinued operations, gain on assets held for sale
and the cumulative effect of a change in accounting principle in 2003.
EBITDA should not be considered as an alternative to any measure of
operating results as promulgated under accounting principles generally
accepted in the United States (such as operating income or net income), nor
should it be considered as an indicator of our overall financial
performance. EBITDA does not fully consider the impact of investing or
financing transactions as it specifically excludes depreciation and interest
charges, which should also be considered in the overall evaluation of
results. Additionally, our method of calculating EBITDA may be different
from the method used by other companies, and therefore, comparability may be
limited. EBITDA has not been provided as a measure of liquidity. We believe
EBITDA provides useful supplemental information to investors since it
excludes the impact of investing or financing transactions on our operating
results.