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The Advisory Board Company Reports Fiscal Year 2010 First Quarter Results
Date:8/4/2009

erating results on a basis that allows for comparability without regard to changes arising from applicable tax rates, variability in interest income and foreign currency exchange rates, and periodic costs of certain capitalized tangible and intangible assets.

There are limitations associated with EBITDA, including that EBITDA does not reflect all changes in applicable tax rates, foreign currency exchange rates, or the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in our business. Management compensates for these aspects and limitations of EBITDA by evaluating the costs of such tangible and intangible assets through other financial measure such as evaluating capital expenditures, and by also relying on the comparable GAAP financial measure of income from operations, which includes depreciation and amortization, and Net Income, which includes income taxes, interest income, foreign currency gains, and depreciation and amortization. A reconciliation of this non-GAAP measure to GAAP results is provided below.

                                                    Three Months Ended
                                                         June 30,
                                                  ----------------------
                                                   2009            2008
                                                   ----            ----
    Net income                                    $4,188          $6,330
    Provision for income taxes                    $2,186          $3,161
    Other income, net (1)                          $(962)        $(1,204)
    Depreciation and amortization                 $1,903          $1,083
                                                  ----------------------
    EBITDA                                        $7,315          $9,370

  1. Other income, net includes interest inc
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SOURCE The Advisory Board Company
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