|
20
Adjusted EBITDA
Adjusted EBITDA, as defined by us, consists of net income (loss)
before
reorganization items, net, share-based compensation
expense, depreciation and
amortization, asset impairment
expense, gain (loss) on sale or disposal of assets,
interest
expense, amortization or accretion on debt discount or premium, gain (loss) on
early extinguishment or restructuring of debt, interest income and
other income
(expense), gain (loss) from contingent value
rights valuation, foreign currency
transaction gain (loss),
income tax benefit (expense), income (expense) attributable to
the non-controlling interest, income (loss) from discontinued
operations, net of tax, and
income (loss) from sale of
discontinued operations, net of tax. Our definition of
Adjusted EBITDA may not be similar to Adjusted EBITDA measures
presented by
other companies, is not a measurement under
generally accepted accounting principles
in the United States,
and should be considered in addition to, but not as a substitute for,
the information contained in our statements of operations.
We believe Adjusted EBITDA is an important performance measurement for
our
investors because it gives them a metric to analyze our
results exclusive of certain non-
cash items and items which
do not directly correlate to our business of selling and
provisioning telecommunications services. We believe Adjusted
EBITDA provides
further insight into our current performance
and period to period performance on a
qualitative basis and is
a measure that we use to evaluate our results and performance
of our management team.
Free Cash Flow
Free Cash Flow, as defined by us, consists of net cash provided by
(used in) operating
activities before reorganization items less
net cash used in the purchase of property and
equipment.
Free Cash Flow, as defined above, may not be similar to Free Cash Flow
measures presented by other companies, is not a measurement under
generally
accepted accounting principles in the United States,
and should be considered in
addition to, but not as a
substitute for, the information contained in our consolidated
statements of cash flows.
We believe Free Cash Flow provides a measure of our ability, after
purchases of
capital and other investments in our
infrastructure, to meet scheduled debt principal
payments. We use Free Cash Flow to monitor the impact of our
operations on our cash
reserves and our ability to generate
sufficient cash flow to fund our scheduled debt
maturities and
other financing activities, including discretionary refinancings and
retirements of debt. Because Free Cash Flow represents the
amount of cash generated
or used in operating activities less
amounts used in the purchase of property and
equipment before
deductions for scheduled debt maturities and other fixed obligations
(such as capital leases, vendor financing and other long-term
obligations), you should
not use it as a measure of the amount
of cash available for discretionary expenditures.
Non-GAAP Measures
Note:
All results of operations excluded Discontinued Operations unless otherwise
specified.
Three Months
Three Months
Three Months
Ended
Ended
Ended
September 30,
June 30,
September 30,
2010
2010
2009
NET INCOME (LOSS) ATTRIBUTABLE TO
PRIMUS TELECOMMUNICATIONS GROUP, INCORPORATED
5,080
$
(13,038)
$
2,165
$
Reorganization items, net
-
-
307
Share-based compensation expense
(12)
117
307
Depreciation and amortization
13,641
18,194
18,740
(Gain) loss on sale or disposal of assets
-
(189)
36
Interest expense
8,602
8,733
8,747
Accretion (amortization) on debt premium/discount, net
46
45
-
(Gain) loss on early extinguishment of debt
-
(164)
-
Interest and other (income) expense
(254)
(153)
(160)
(Gain) loss from Contingent Value Rights valuation
(33)
382
4,229
Foreign currency transaction (gain) loss
(14,006)
9,623
(13,448)
Income tax (benefit) expense
(3,238)
(1,883)
(2,121)
Income (expense) attributable to the non-controlling interest
74
(106)
210
(Income) loss from discontinued operations,
net of tax
5,464
1,528
2,110
(Gain) loss from sale of discontinued operations,
net of tax
389
(193)
110
ADJUSTED EBITDA
15,753
$
22,896
$
21,232
$
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES BEFORE REORGANIZATION ITEMS
20,865
$
(1,140)
$
12,992
$
Net cash used in purchase of property
and equipment
(6,410)
(5,824)
(3,886)
FREE CASH FLOW
14,455
$
(6,964)
$
9,106
$
|