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General Nutrition Centers, Inc. Reports Fourth Quarter and Full Year 2007 Results
Date:3/6/2008

- 0.0%

Other expense - 0.0% (1.2) 0.0%

Subtotal unallocated corporate and

other costs net (165.3) -10.6% (143.3) -9.6%

Total operating income 88.1 5.7% 99.2 6.7%

Interest expense, net 118.5 39.6

Income (loss) before income taxes (30.4) 59.6

Income tax expense (benefit) 1.9 22.2

Net income (loss) $(32.3) $37.4

Note: The numbers in the above table have been rounded to millions. All calculations related to the Results of Operations for the year-over-year comparisons were derived from the table above and could occasionally differ immaterially if you were to use the unrounded data for these calculations.

We define EBITDA as net income (loss) before interest expense (net), income tax expense, depreciation, and amortization. Management uses EBITDA as a tool to measure operating performance of the business. We use EBITDA as one criterion for evaluating our performance relative to our competitors and also as a measurement for the calculation of management incentive compensation. Although we primarily view EBITDA as an operating performance measure, we also consider it to be a useful analytical tool for measuring our liquidity, our leverage capacity, and our ability to service our debt and generate cash for other purposes.

We also use EBITDA as defined in our Senior Credit Facility, and the indentures governing our Senior Floating Rate Toggle Notes and Senior Subordinated Notes to determine compliance with the terms of these facilities and Notes. The reconciliation of EBITDA as presented below is different than that used in our Senior Credit Facility and the indentures governing the Senior Floating Rate Toggle Notes and Senior Subordinated Notes. Historically, we have highlight
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SOURCE General Nutrition Centers, Inc.
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