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Providence Service Corporation Releases Fourth Quarter and Audited Year End 2008 Results
Date:3/27/2009

Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA (in thousands) 2008 2007 Adjusted EBITDA $39,088 $30,701 Subtract: Interest expense (income), net 18,599 1,601 Income taxes (12,311) 9,722 Depreciation and amortization 12,722 4,989 Impairment charge (A) 169,930 - Acceleration of stock based compensation (B) 5,753 - Net income (loss) $(155,605) $14,389 (A) Due to the significant and sustained decline in the Company's market capitalization and the uncertainty in the state payer environment as well as the impact of related budgetary decisions on the Company's earnings during the six months ended December 31, 2008, the Company recorded asset impairment charges totaling approximately $169.9 million related to its goodwill and other intangible assets for the year ended December 31, 2008. (B) On December 30, 2008, the Compensation Committee of the Company's Board of Directors approved the acceleration of the vesting dates of all unvested stock options and restricted stock previously awarded to eligible employees, directors and consultants, including stock options and restricted stock granted to executive officers and non-employee directors, under the Company's 2006 Long-Term Incentive Plan, effective on that day. In approving this vesting acceleration, the Compensation Committee considered, among other things, the anticipated boost to employee moral expected to result from such
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