EBITDA, as adjusted represents EBITDA as defined above adjusted for a goodwill impairment charge recognized during the three months ended December 31, 2012, professional fees related to our renegotiated credit agreement recognized during the three and nine months ended December 31, 2012, a bonus accrual reversal and extraordinary gain recognized during the three and nine months ended December 31, 2011 and stock-based compensation. Stock-based compensation represents compensation expenses associated with stock options and restricted stock.
Management believes EBITDA and EBITDA, as adjusted, to be meaningful indicators of our performance that provides useful information to investors regarding our financial condition and results of operations. Presentations of EBITDA and EBITDA, as adjusted, are non-GAAP financial measures commonly used by financial analysts and our lenders to measure operating performance. While management considers EBITDA and EBITDA, as adjusted, to be important measures of comparative operating performance, they should be considered in addition to, but not as a substitute for, net income and other measures of financial performance reported in accordance with GAAP. EBITDA and EBITDA, as adjusted do not reflect cash available to fund cash requirements. Not all companies calculate EBITDA or EBITDA, as adjusted in the same manner and the measure as presented may not be comparable to similarly-titled measures presented by other companies.
CONTACT: John Sheffield Executive Vice President and Chief Financial Officer MEDICAL ACTION INDUSTRIES INC. (631) 231-4600