In this press release the Company has provided information regarding certain non-GAAP financial measures including "free cash flow" and "EBIT-R." Such non-GAAP financial measures are reconciled to their closest US GAAP financial measure in the schedules below.
EBIT-R: EBIT-R represents net income (loss) before net interest expense and provision for income taxes and excludes impairment and net unreimbursed restructuring charges as well as the gain on the ACH transactions. Management believes EBIT-R is useful to investors because it provides meaningful supplemental information regarding the Company's operating results because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company's continuing operating activities.
Three Months Ended Year Ended 2006 December 31, December 31, Estimate 2005 2004 2005 2004 Net Income (Loss) $1,338 $(138) $(270) $(1,536) $(250) - $(220) Interest expense, net 34 24 132 96 160 Provision (benefit) for income taxes 23 (21) 64 962 105 Impairment of long-lived assets 335 - 1,511 314 30 Net unreimbursed restructuring expense - 41 7 82 - Gain on ACH transactions (1,832) - (1,832) - - EBIT-R $(102) $(94) $(388) $(82) $45 - $75
EBIT-R is not a recognized term under GAAP and does not purport to be an alternative to net income (loss) as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation of EBIT-R may not be comparable to other similarly titled measures of other companies. Additionally, EBIT-R is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements.
Free Cash Flow: Free cash flow represents cash flow from operating activities less capital expenditures. Management believes that free cash flow is useful in analyzing the Company's ability to service and repay its debt and it uses the measure for planning and forecasting in future periods, as well as in management compensation decisions.
Three Months Ended Year Ended 2006 December 31, December 31, Estimate 2005 2004 2005 2004 Cash provided from operating activities $42 $195 $417 $418 $500 Capital expenditures (185) (258) (585) (827) (450) Free cash flow $(143) $(63) $(168) $(409) $50
Free cash flow is not a recognized term under GAAP and does not reflect cash used to service debt and does not reflect funds available for investment or other discretionary uses.
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