Reorganization Items

Separate classification of reorganization items began in first quarter 2013 when we filed the Reorganization Cases. All reorganization expenses prior to that period are reflected in selling, general and administrative expenses. We expensed approximately $2.5 million during the second quarter of 2013 associated with our balance sheet restructuring process with no comparable expense in 2012 reflected as reorganization items. In addition, we recognized $114.2 million in cancellation of debt income associated with the exchange of our senior subordinated notes and the accrued interest on those notes for new Class A common stock during second quarter 2013.

Adjusted EBITDA

Adjusted EBITDA for the three months ended June 30, 2013 was $8.4 million compared to $10.8 million for the same period in 2012 and $8.8 million in the first quarter of 2013. See financial tables for a reconciliation of Adjusted EBITDA to net income.

Balance Sheet

As of June 30, 2013, the Company had cash and cash equivalents of $11.1 million compared to $32.5 million at the end of 2012, reflecting the Company’s payment of $28.7 million on its long-term notes payable. The payment reduces the outstanding notes payable balance to $133.3 million, including the current portion of $6.7 million. The Company’s senior credit facility was extended through April 2016 and includes a $5.0 million undrawn revolver. The Company’s senior subordinated notes were exchanged for new Class A common stock upon consummation of our approved restructuring plan on May 24, 2013. The Company does not meet the technical requirements to utilize fresh-start accounting to reflect the impacts of implementing its restructuring plan.

Capital Expenditures

Capital expenditures were $0.8 million for the quarter as the Company continues to invest in its infrastructure. The level of capital expenditure reflects a planned slower start than in previous years but is expected to lead to a similar level of investment in infrastructure for 2013 as was experienced in 2012.