About Non-GAAP Financial Measures

In its communications with investors, the Company references certain non-GAAP financial measures, which differ from GAAP measurements. The Company uses the term EBITDA which is calculated as GAAP net income plus net interest income/expense, income tax expense/benefit, and depreciation and amortization. The Company also uses the term Non-GAAP Adjusted EBITDA which is calculated as EBITDA plus non-cash equity compensation expense, non-cash asset impairment charges, adjustments to estimated contingent purchase consideration, and discontinued operations. The Company believes that providing these non-GAAP measures in its communications with investors is useful to investors for a number of reasons. These non-GAAP measures provide a consistent basis of presentation for investors to understand the Company’s financial performance in comparison to historical periods using the same methodology and information that the Company’s management uses to evaluate the Company’s performance. A reconciliation of non-GAAP financial measures to GAAP basis can be found below (amounts in thousands except share and per share amounts).

	Quarterly 2011				Year-To-Date 2011
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
GAAP Net Income	(1,543)	585			(1,543)	(958)
Interest expense/(benefit)	(7)	(24)			(7)	(31)
Income tax expense/(benefit)	(2,058)	864			(2,058)	(1,194)
Depreciation/Amortization	739	780			739	1,519
EBITDA	(2,869)	2,205			(2,869)	(664)
Equity based expense	312	412			312	724
Asset impairment charges	-	1,188			-	1,188
Contingent earnout adjustments	(11)	26			(11)	15
Discontinued operations	-	-			-	-
Adjusted EBITDA	(2,568)	3,831			(2,568)	1,263
	Quarterly 2010				Year-To-Date 2010
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
GAAP Net Income	(574)	6,373	927	(1,400)	(547)	5,826	6,753	5,353
Interest expense/(benefit)	(91)	11	12	(10)	7	(80)	(68)	(78)
Income tax expense/(benefit)	-	(5,263)	820	530	-	(5,263)	(4,443)	(3,913)
Depreciation/Amortization	713	726	696	712	713	1,439	2,135	2,847
EBITDA	75	1,847	2,455	(168)	173	1,922	4,377	4,209
Equity based expense	568	424	653	579	568	992	1,645	2,224
Asset impairment charges	-	594	-	1,966	-	594	594	2,560
Contingent earnout adjustments	(254)	-	-	(1,024)	(254)	(254)	(254)	(1,278)
Discontinued operations	-	-	-	-	-	-	-	-
Adjusted EBITDA	389	2,865	3,108	1,353	487	3,254	6,362	7,715
	Quarterly 2009				Year-To-Date 2009
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
GAAP Net Income	(802)	193	(249)	(3,527)	(802)	(609)	(858)	(4,385)
Interest expense/(benefit)	(19)	6	5	32	(19)	(13)	(8)	24
Income tax expense/(benefit)	-	-	66	279	-	-	66	345
Depreciation/Amortization	727	748	835	809	727	1,475	2,310	3,119
EBITDA	(94)	947	657	(2,407)	(94)	853	1,510	(897)
Equity based expense	593	550	471	479	593	1,143	1,614	2,093
Asset impairment charges	-	-	-	2,380	-	-	-	2,380
Contingent earnout adjustments	-	-	-	109	-	-	-	109
Discontinued operations	39	17	48	(14)	39	56	104	90
Adjusted EBITDA	538	1,514	1,176	547	538	2,052	3,228	3,775
	Quarterly 2008				Year-To-Date 2008
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
GAAP Net Income	963	1,113	565	(15,389)	963	2,076	2,641	(12,748)
Interest expense/(benefit)	58	90	(112)	(63)	58	148	36	(27)
Income tax expense/(benefit)	653	688	527	93	653	1,341	1,868	1,961
Depreciation/Amortization	520	582	664	901	520	1,102	1,766	2,667
EBITDA	2,194	2,473	1,644	(14,458)	2,194	4,667	6,311	(8,147)
Equity based expense	312	413	479	527	312	725	1,204	1,731
Asset impairment charges	-	-	-	13,071	-	-	-	13,071
Contingent earnout adjustments	-	-	-	-	-	-	-	-
Discontinued operations	(4)	(10)	(9)	(14)	(4)	(14)	(23)	(37)
Adjusted EBITDA	2,502	2,867	2,114	(874)	2,502	5,378	7,492	6,618

      

To view a sequential quarterly presentation of Non-GAAP financial measures covering the period from the first quarter of 2008 to the present, click here