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Certain matters being discussed by Local Corporation’s management today include
forward looking statements which are made pursuant to the Safe Harbor provisions of
section 21-E of the Securities Exchange Act of 1934. Investors are cautioned that
statements which are not strictly historical statements, including statements
concerning future expected financial performance, management objectives and plans
for future operations, our relationships with strategic or other partners, the release of
new products or services or enhancements to existing products or services, our
expectations regarding potential acquisitions and the future performance of past
acquisitions including our ability to realize expected synergies, trends in the market for
our current or planned products or services, and market acceptance of our products or
services, constitute forward looking statements. The forward
looking statements include, but are not limited to, any statements containing the words
“expect”, “anticipate”, “estimates”, “believes”, “should”, “could”,
“may”, “possibly”, and similar expressions and the negatives thereof. These
forward looking statements involve a number of risks and uncertainties that could cause actual
results to differ materially from the forward looking statements. Those risks and
uncertainties are detailed in the company’s filings from time to time with the Securities
and Exchange Commission. The information contained in the forward looking
statements is provided as of the date of such oral statements and the company
disclaims any obligation to update such statements. Adjusted EBITDA
is defined as net income (loss) excluding: provision for income taxes; interest and other
income (expense), net; depreciation; amortization; stock-based compensation charges; gain
or loss on derivatives’ revaluation; net income (loss) from discontinued operations; LEC
receivables reserve; finance-related charges; accrued lease liability/asset; severance
charges; and an expense related to a settlement accrual.
Adjusted EBITDA, as defined above, is not a measurement under GAAP. Adjusted
EBITDA is reconciled to net loss and loss per share, which we believe are the most
comparable GAAP measures, at the end of this presentation. Management believes
that Adjusted EBITDA provides useful information to investors about the company’s
performance because it eliminates the effects of period-to-period changes in income
from interest on the company’s cash and marketable securities, expense from the
company’s financing transactions and the costs associated with income tax expense,
capital investments, stock-based compensation expense, warrant revaluation charges,
and non-recurring charges which are not directly attributable to the underlying
performance of the company’s business operations. Management uses Adjusted
EBITDA in evaluating the overall performance of the company’s business operations. A limitation of
non-GAAP Adjusted EBITDA is that it excludes items that often have a material effect on
the company’s net income and earnings per common share calculated in accordance with
GAAP. Therefore, management compensates for this limitation by using Adjusted EBITDA in
conjunction with GAAP net loss and loss per share measures. The company believes that Adjusted
EBITDA provides investors with an additional tool for evaluating the company’s core
performance, which management uses in its own evaluation of overall performance, and as a
base-line for assessing the future earnings potential of the company. While the GAAP
results are more complete, the company prefers to allow investors to have this supplemental
metric since, with reconciliation to GAAP (as noted above), it may provide greater insight
into the company’s financial results. The non-GAAP measures should be viewed as a
supplement to, and not as a substitute for, or superior to, GAAP net income or
earnings per share.
Corporate Overview – Q3 2014 |