requirements for working capital needs;
-- EBITDA and Adjusted EBITDA does not reflect interest expense or the
cash requirement necessary to service interest or principal payments on
our debt; although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA and Adjusted EBITDA do not reflect
any cash requirements for such replacements; and
-- EBITDA and Adjusted EBITDA reflect the impact of earnings on income
resulting from matters we consider not to be indicative of our ongoing
operations, certain of which income we eliminated in our computation of
EBITDA and Adjusted EBITDA.
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in our business. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA only for supplemental purposes.
For the combined predecessor and successor periods ended March 31, 2007
and the three months ended March 31, 2008 the following table presents
EBITDA reconciled to our net income for such periods and Adjusted EBITDA
reconciled to EBITDA for such periods.
NET INCOME (LOSS) RECONCILIATION TO EBITDA AND ADJUSTED EBITDA
(unaudited) Successor Combined
Three Months Ended
Net income (loss) $13.3 $(50.5)
Interest expense, net 23.1 47.3
Income tax expense (benefit)
|SOURCE General Nutrition Centers, Inc.|
Copyright©2008 PR Newswire.
All rights reserved