Consolidated net income is defined as net income (loss) determined on a consolidated basis in accordance with GAAP; provided, however, that the following, without duplication, shall be excluded in determining consolidated net income: (i) any net after-tax extraordinary or non-recurring gains, losses or expenses (less all fees and expenses relating thereto), (ii) the cumulative effect of changes in accounting principles, (iii) any fees and expenses incurred during such period in connection with the issuance or repayment of indebtedness, any refinancing transaction or amendment or modification of any debt instrument, in each case, as permitted under the new credit facility and (iv) any gains resulting from the returned surplus assets of any pension plan.
The following table provides reconciliation from net income (loss) and operating cash flows, which are the most directly comparable GAAP financial measures, to EBITDA and Adjusted EBITDA.
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|Net income (loss)||$||3,488||$||(3,656||)||$||5,758||$||(73,824||)|
|Amortization of intangibles||577||578||1,729||1,737|
|Deferred financing cost amortization||1,011||238||1,613||5,721|
Unrealized foreign exchange loss (gain) on revaluation of debt
|(Gain) loss on disposition of property and equipment||(40||)||(171||)||(604||)||(62||)|
|Non-cash interest expense related to interest rate swaps||-||2,160||-||7,518|
|Loss on extinguishment of debt||-||-||2,926||-|
|Non-cash reorganization expenses||-||-||-||28,683|
|Reorganization expenses accrued||-||(3,231||)||-||1,315|
|Net change in operating assets and liabilities||4,289||(3,821||)||(18,130||)||(8,312||)|
|Net cash provided by operating activities||24,075||5,626||30,836||3,465|
|Interest expense, excluding amortization||8,862||9,622||28,096||31,290|
|Net change in operating assets and liabilities||(4,289||)||3,821||18,130||8,312|
|Current portion of income tax expense||2,227||2,745||7,465||7,199|
|Unrealized foreign exchange gain (loss) on revaluation of debt||(2,484||)||1,567||(1,070||)||725|
Gain (loss) on disposition of property and equipment
|Non-cash reorganization items||-||3,231||-||(29,998||)|
|Loss on extinguishment of debt||-||-||(2,926||)||-|
|Financial restructuring costs (1)||-||799||-||25,613|
|Write-off of deferred financing costs (2)||-||-||2,926||14,283|
Expenses incurred in connection with indebtedness or refinancing transaction
|Non-cash compensation and related expenses||172||2,068||2,253||5,498|
|Operational restructuring expenses||577||3,322||1,287||7,433|
|Non cash change in accounting estimates||-||-||-||(1,400||)|
(1) Financial restructuring costs are not adjustments added back to net income to arrive at Adjusted EBITDA under the new credit facility for periods beginning after the quarter ended June 30, 2011. For the three months and nine months ended September 30, 2010, as applicable, such items were added back to net income to arrive at Adjusted EBITDA based upon the terms of the Company’s prior credit facility. Had these adjustments not been in place in 2010, Adjusted EBITDA would have decreased by $0.8 million and $25.6 million for the three and nine months ended September 30, 2010, respectively.
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