The following table reconciles reported net income to adjusted net income.

      Three months ended       Nine months ended

(Unaudited, amounts in millions, except per share data)
September 30, September 30,
2012     2011 2012     2011
Net income $ 20.0 $ 17.2 $ 51.1 $ 43.6
Adjusted to add (deduct):
Amortization and acquisition-related costs (a) 22.1 - 36.4 -
Generic product withdrawal costs (b) 2.0 - 2.0 -
Patent litigation settlement reimbursement (c) (5.0 ) - (5.0 ) -
Gross profit earned on Zomig® Agreement - - 46.2 -
Acquisition related in process R&D - - 1.6 -
Employee severance - - 1.9 0.8
Inventory adjustment - - 3.5 -
Lower of cost or market charge - - 1.7 -
Income tax effect   (6.6 )   -   (30.4 )   (0.3 )
Adjusted net income $ 32.5   $ 17.2 $ 109.0   $ 44.1  
 
Net income adjusted per diluted share $ 0.48 $ 0.26 $ 1.60 $ 0.66
Net income per diluted share $ 0.29 $ 0.26 $ 0.75 $ 0.65
 
 

Impax Laboratories, Inc.
Non-GAAP Financial Measures
 

The following table reconciles reported net income to adjusted EBITDA.
      Three months ended       Nine months ended

(Unaudited, amounts in millions)
September 30, September 30,
2012     2011 2012     2011
Net income $ 20.0 $ 17.2 $ 51.1 $ 43.6
Adjusted to add (deduct):
Interest income (0.3 ) (0.3 ) (0.8 ) (0.9 )
Interest expense 0.1 0.1 0.6 0.1
Depreciation and other 4.3 3.5 11.9 11.9
Income taxes   9.6     8.5     27.2     20.8  
EBITDA   33.7     29.0     90.0     75.5  
 
Adjusted to add:
Amortization and acquisition-related costs (a) 22.1 - 36.4 -
Generic product withdrawal costs (b) 2.0 - 2.0 -
Patent litigation settlement reimbursement (c) (5.0 ) - (5.0 ) -
Gross profit earned on Zomig® Agreement - - 46.2 -
Acquisition related in process R&D - - 1.6 -
Employee severance - - 1.9 0.8
Inventory adjustment - - 3.5 -
Lower of cost or market charge - - 1.7 -
Share-based compensation   3.8     3.5     12.1     9.6  
Adjusted EBITDA $ 56.6   $ 32.5   $ 190.4   $ 85.9  
 
(a)     Amortization and acquisition-related costs from the January 2012 Distribution, License, Development and Supply Agreement with AstraZeneca UK Limited and the June 2012 Development, Distribution and Supply Agreement with TOLMAR, Inc.
 
(b) The Company recorded a charge of $2.0 million related to the voluntary withdrawal from the market of bupropion XL 300 mg, manufactured by Impax and marketed through our Strategic Alliance Agreement with Teva.
 
(c) The Company received $5.0 million for reimbursement of legal fees pursuant to the settlement of litigation.
 

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