Non-GAAP Financial Measures
This press release and the attached financial tables contain certain non-GAAP financial measures. In addition to net income determined in accordance with GAAP, we use certain non-GAAP measures such as "Adjusted EBITDA" in assessing our operating performance. We believe this non-GAAP measure serves as an appropriate measure to be used in evaluating the performance of our business.
We define Adjusted EBITDA as net loss excluding the impact of income taxes, depreciation and amortization expense, investigation and review-related expenses, interest expense and income, gains and losses on foreign currency, net loss on debt related fair value measurements, stock-based compensation and costs directly related to mergers and acquisitions.
We present Adjusted EBITDA because we consider it an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of our results. Management uses this non-GAAP financial measure frequently in our decision-making because it provides supplemental information that facilitates internal comparisons to the historical operating performance of prior periods and gives an additional indication of our core operating performance. We include this non-GAAP financial measure in our earnings announcement in order to provide transparency to our investors and enable investors to better compare our operating performance with the operating performance of our competitors. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative measure of, revenue, operating results or cash flows from operating activities as determined in accordance with GAAP. Additionally, our definition of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.Under SEC rules, we are required to provide a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Accordingly, the following is a reconciliation of Adjusted EBITDA to our net losses for the three months ended March 31, 2012 and 2011:
|Three Months Ended March 31,|
|Net loss from continuing operations||$(13,260)||$(4,707)|
|Income tax expense (benefit)||80||(5,730)|
|Depreciation and amortization expense||4,976||2,122|
|Interest expense, net||581||334|
|(Gain) loss on foreign currency||(3)||35|
|Realized and unrealized (gain) loss on convertible debt||(29)||1,961|
|Investigation and review-related professional fees||1,874||—|
|Acquisition and merger expenses||120||1,264|