Non-GAAP Financial Information
This press release includes Adjusted EBITDA, a non-GAAP measure that the Company's management uses to assess operating performance. The Company uses Adjusted EBITDA as a key performance measure because it believes that it facilitates operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures (affecting net interest expense), tax positions (such as the impact on periods of changes in effective tax rates or fluctuations in permanent differences or discrete quarterly items), the impact of depreciation and amortization, amortization of intangible assets, acquisition-related costs, stock-based compensation and impairment charges. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, the Company also uses Adjusted EBITDA for business planning purposes and to incentivize and compensate its management personnel.
The Company's use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP as the excluded items may have significant effects on our operating results and financial condition. When evaluating our performance, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income and our other GAAP results.
A reconciliation for the third quarter of 2012 of expected Adjusted EBITDA to the most directly comparable GAAP measure is provided below in this press release.
|Reconciliation of Net Income (Loss) to Adjusted EBITDA Estimated Range|
|Net income (loss)||$ (2.5)||$ (2.1)|
|Provision for (benefit from) income taxes||$ (0.8)||$ (1.0)|
|Depreciation and amortization||$ 1.5||$ 1.5|
|Amortization of intangible assets||$ 0.8||$ 0.8|
|Acquisition-related costs||$ 1.1||$ 1.1|
|Stock based compensation||$ 1.0||$ 1.0|
|Adjusted EBITDA||$ 1.1||$ 1.3|
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