Regulation G Disclosures
During our third quarter 2008 Earnings Conference Call, we use the operating measure Adjusted EBITDA. Adjusted EBITDA is a non-GAAP (generally accepted accounting principles) operating measure under Regulation G of the Securities and Exchange Commission. We compute Adjusted EBITDA by adding depreciation, amortization and goodwill and intangible asset impairments to operating income. Each of these GAAP financial measures are line items in our income statement and thus Adjusted EBITDA can be reconciled to net income, the most comparable GAAP financial measure to it. Net income is reconciled to Adjusted EBITDA for the three and nine month periods ended September 30, 2008 and September 30, 2007 respectively, on the slide entitled "Reconciliation of Adjusted EBITDA (non-GAAP measure) to Net Income (Loss)" which has also been posted on our web site at www.decommunications.com/about/investors/regulation-g/. Presentation of Adjusted EBITDA is consistent with how we evaluate performance of our business units and Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. However, other companies in our industry may calculate Adjusted EBITDA differently than we do. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as a substitute for cash flow from operating activities as a measure of liquidity or a substitute for net income as an indicator of operating performance or any other measure of performance derived in accordance with GAAP.
To view the Company fact sheet dated September 10, 2008 reconciliation slide, click here.
To view the second quarter 2008 Earnings Conference Call Reconciliation Slide, click here.
To view the third quarter 2008 Earnings Conference Call Reconciliation Slide, click here.