Swisher Hygiene presents Adjusted EBITDA because the company considers it an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of its results. Management uses this non-GAAP financial measure frequently in its 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 Swisher Hygiene's core operating performance. Swisher Hygiene includes this non-GAAP financial measure in its earnings announcement in order to provide transparency to its investors and enable investors to better compare its operating performance with the operating performance of its 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, Swisher Hygiene's definition of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Under SEC rules, Swisher Hygiene is 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 Swisher Hygiene's net losses for the three months ended March 31, 2013 and 2012:
|Three months ended March 31,|
|Net loss from continuing operations||$ (17,240)||$ (13,260)|
|Income tax expense||427||80|
|Depreciation and amortization expense||5,649||4,976|
|Interest expense, net||87||581|
|Foreign currency loss(gain)||1||(3)|
|Realized and unrealized gain on fair value of convertible debt and earnouts||--||(29)|
|Stock based compensation||754||949|
|Investigation and review-related expenses||3,923||1,874|
|Acquisition and merger expenses||--||120|
|Adjusted EBITDA for continuing operations||$ (6,253)||$ (4,287)|
Cautionary Statement on Forward-Looking Information
All statements other than statements of historical fact contained in this press release, on the conference call and in the webcast constitute "forward-looking information" or "forward-looking statements" within the meaning of the U.S. federal securities laws and the Securities Act (Ontario) and are based on the expectations, estimates and projections of management as of the date of this press release, on the conference call and in the webcast unless otherwise stated. All statements other than historical facts are, or may be, deemed to be forward looking statements. The words "plans," "expects," "is expected," "scheduled," "estimates," or "believes," or similar words or variations of such words and phrases or statements that certain actions, events or results "may," "could," "would," "might," or "will be taken," "occur," and similar expressions identify forward-looking statements.