EX-99.1 2 prg8k102104ex99.txt PRESS RELEASE EXHIBIT 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE PRG-SCHULTZ REPORTS THIRD QUARTER 2004 FINANCIAL RESULTS BOARD TO EVALUATE STRATEGIC ALTERNATIVES ATLANTA, OCTOBER 21, 2004 - PRG-Schultz International, Inc. (Nasdaq: PRGX) today announced financial results for the third quarter of 2004 and provided updated outlook for the fourth quarter 2004. THIRD QUARTER 2004 HIGHLIGHTS o Revenues totaled $85.1 million. o Revenues from Accounts Payable Services totaled $75.6 million. o Revenues from Meridian VAT Reclaim totaled $9.5 million. o $2.2 million of revenues deferred into future periods. o Net earnings from continuing operations were 0.2% of revenues for the quarter compared to a loss of (2.7%) a year ago. o EBITDA margin was 7.7% of revenues for the quarter, compared to 3.0% a year ago (see Schedule 6 for a reconciliation of net earnings (loss) to EBITDA, a non-GAAP financial measure). o Diluted earnings per share from continuing operations were break even for the quarter compared with diluted loss per share of ($0.04) during the third quarter of 2003. o 17 new international clients signed. o Strongest U.S. Commercial audit starts in one year, up 35% from second quarter o Continued benefits from strategic cost reduction initiatives achieved. o Opened new shared service center in Dublin, Ireland. o Generated initial revenues from launch of new freight rate auditing program. PRG-SCHULTZ TO EVALUATE STRATEGIC ALTERNATIVES The Board of Directors for PRG-Schultz, in response to several inquiries received by the company, has decided to explore the company's strategic alternatives, including a possible sale of the company. The Board, together with its financial advisor CIBC World Markets Corp., will evaluate the company's options and determine the course of action that is in the best interests of its shareholders. The company noted that it is not engaged in any negotiations at this time and that there can be no assurance that any transaction or other corporate action will result from this effort. PRG-Schultz assumes no obligation to make any further announcements regarding its exploration of strategic alternatives unless and until a final decision is made. John Cook, Chairman and Chief Executive Officer of PRG-Schultz stated, "We believe this interest in PRG-Schultz is a testament to our world class organization and the significant progress we have made during the past few years. We have refined our business strategy, evolved the service model, expanded our reach to new industries and geographies, and materially improved our cost structure. Our Board is fully committed to exploring strategic alternatives that will maximize value for all of our shareholders. "I am enthusiastic about the momentum in our business. During the last several months, we have signed up 17 new international clients, adding some of the largest companies across Europe, Asia, Australia and Latin America. We opened our new shared service center in Dublin, Ireland. We generated our first revenues under our exciting, new freight rate auditing program and expanded our auditing initiatives in the airline and healthcare industries. I am confident that as we grow our international operations, focus on our business development initiatives and continue to evolve our service model, we will see further improvements during the fourth quarter of 2004 and even stronger results in 2005." THIRD QUARTER 2004 FINANCIAL RESULTS Revenues for the third quarter of 2004 totaled $85.1 million, compared to $88.2 million in the third quarter of 2003. Revenues from Accounts Payable Services totaled $75.6 million for the quarter compared to $80.5 million a year ago. Revenues from the company's U.S. Accounts Payable Services operations were $50.9 million, reflecting strong performance in its Sales and Use Tax operations, as well as a $1.6 million settlement for past services rendered to an existing client. Revenues from the company's international Accounts Payable service operations were $24.8 million. These results reflect a lengthened approval process and client-specific issues in the company's operations in Canada and Europe. During the quarter, the company re-engaged with a large U.K. retailer and as part of that re-engagement, $2.2 million of revenues (or $0.02 earnings per share for third quarter), which the company expected to materialize during the third quarter, was deferred to future quarters. The company expects to achieve significant recoveries for this client over the next year. Revenues from Meridian VAT Reclaim for the third quarter of 2004 were $9.5 million, compared to $7.7 million a year ago, reflecting a 23% improvement year-over-year. Cost of revenue was $54.2 million, or approximately 64% of revenue, for the third quarter of 2004, compared to $57.2 million, or approximately 65% of revenue, in the same period last year. The margin improvement was driven largely by cost reductions in the company's U.S. Accounts Payable services operations, where model evolution has been implemented. Net earnings for the third quarter of 2004 were $0.5 million or $0.01 per diluted share, compared to a net loss of ($1.7) million or ($0.03) per diluted share during the third quarter of 2003. Results in the third quarter of 2004 included after-tax charges of ($1.4) million, or ($0.02) per diluted share relating to the company's previously disclosed strategic business initiatives. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2004 totaled $6.6 million, or 7.7% of revenues, compared to $2.6 million, or 3.0% of revenues in the third quarter of 2003. (See Schedule 6 for a reconciliation of net earnings (loss) to EBITDA, a non-GAAP financial measure). Schedule 4 provides summary financial results from continuing operations for the third quarters of 2004 and 2003 by operating segment. CASH FLOW, DSOS AND CAPITAL EXPENDITURES Net cash used in operating activities for the third quarter of 2004 was $1.1 million, compared to net cash provided by operating activities of $8.0 million in the third quarter of 2003. The company noted that increased working capital needs, which were partially offset by higher operating cash flows, accounted for the difference in net operating cash results. Company-wide, Days Sales Outstanding (DSOs) at the end of the third quarter of 2004 stood at 55 days, compared to 51 days a year ago. Capital expenditures totaled approximately $1.9 million for the third quarter of 2004, compared to $2.3 million in the same period a year ago. FIRST NINE MONTHS 2004 FINANCIAL RESULTS Revenues for the first nine months of 2004 totaled $263.2 million, compared to $279.8 million in the first nine months of 2003. Revenues from Accounts Payable Services and Meridian VAT totaled $231.5 million and $31.7 million, respectively, for the first nine months of 2004, compared to $248.2 million and $31.6 million, respectively, for the first nine months of 2003. Net earnings for the first nine months of 2004 were $3.4 million, or $0.05 per diluted share, compared to $7.3 million, or $0.12 per diluted share, in the first nine months of 2003. Net loss from continuing operations for the first nine months of 2004 was ($4.0) million, or a loss of ($0.07) per diluted share. This compares to net earnings from continuing operations of $5.7 million, or $0.09 per diluted share, in the first nine months of 2003. EBITDA for the first nine months of 2004 totaled $11.9 million, or 4.5% of revenues, compared to $28.1 million, or 10.0% of revenues, in the first nine months of 2003. (See Schedule 6 for a reconciliation of net earnings (loss) to EBITDA, a non-GAAP financial measure.) Schedule 5 provides summary financial results from continuing operations for the first nine months of 2004 and 2003 by operating segment. CASH FLOW AND CAPITAL EXPENDITURES Net cash provided by operating activities for the nine months ended September 30, 2004, was approximately $1.5 million, compared to $21.6 million in the same period of 2003. The company noted that higher operating cash flow from an exceptionally strong first half of 2003 and increased working capital needs account for the difference in net operating cash results. Capital expenditures totaled approximately $9.3 million for the first nine months of 2004, compared to $7.4 million in the same period a year ago. Amounts for both years exclude capital expenditures related to the company's Communications Services operations, which were declared discontinued operations during the fourth quarter of 2003 and subsequently sold on January 16, 2004. BANK CREDIT FACILITY The company is in the final stages of negotiating a new senior credit agreement that will replace the company's existing senior bank credit facility, which expires December 31, 2004. The company expects to finalize the new agreement within 30 days. The company noted that as of September 30, 2004, it had borrowings of $7.9 million under its existing senior bank credit facility and was not in compliance with one of its financial covenants. The company is working with its bank group and expects to receive a formal waiver of the non-compliance within the next few days. OUTLOOK FOR THE FOURTH QUARTER OF 2004 For the fourth quarter of 2004, consolidated revenues are expected to range from $94 to $97 million. Revenues from Accounts Payable Services are expected to range from $86 to $89 million, and revenues from Meridian VAT Reclaim are expected to approximate $8 million. Diluted earnings per share from continuing operations are expected to range from $0.05 - $0.06 in the fourth quarter of 2004. This outlook includes an earnings reduction of approximately $0.01 per diluted share to reflect already-identified severance and other costs related to the company's strategic business initiatives, as disclosed in the management discussion and analysis portion of the 10-Q filed with the SEC on August 3, 2004. CONFERENCE CALL AND WEBCAST INFORMATION PRG-Schultz will hold a conference call today, October 21, 2004, at 10:00 a.m. ET. Listeners in the U.S. and Canada should dial 888-396-0289 at least 5 minutes prior to the start of the conference. Listeners outside the U.S. or Canada should dial 773-799-3995. To be admitted to the call, provide the leader's name 'John Cook,' reference the company, and provide the passcode 'PRGX.' A playback of the call will be available two hours after the conclusion of the live call, extending until midnight on October 28, 2004. To directly access the replay, dial 866-367-6913 (US / Canadian participants) or 203-369-0240 (international participants). The live teleconference will also be audiocast on the Internet at www.prgx.com (go to the Investor Relations home page). Please note that the audiocast is 'listen-only.' Microsoft Windows Media Player is required to access the audiocast and can be downloaded from www.microsoft.com/windows/mediaplayer. A copy of this press release is also available at www.prgx.com under the heading "Investor Relations - News." ABOUT PRG-SCHULTZ INTERNATIONAL, INC. Headquartered in Atlanta, PRG-Schultz International, Inc. (PRG-Schultz) is the world's leading profit improvement firm. PRG-Schultz employs approximately 2,900 employees, providing clients in over 40 countries with insightful value to optimize and expertly manage their business transactions. Using proprietary software and expert audit methodologies, PRG-Schultz industry specialists review client invoices, purchase orders, receiving documents, databases, and correspondence files to recover lost profits due to overpayments or under-deductions. FORWARD LOOKING STATEMENTS Statements made in this news release which look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include the following: (i) we have violated our debt covenants several times in the past and are currently in violation and may inadvertently do so in the future, (ii) any such violations of our debt covenants, including the current violation, may not be waived and could result in an acceleration of our outstanding bank debt (totaling $7.9 million at September 30, 2004) as well as debt under our convertible notes (totaling $125.0 million in gross principal balance at September 30, 2004), and we may not be able to secure sufficient liquid resources to pay the accelerated debt, (iii) our bank credit facility, which we rely upon to provide a meaningful portion of our liquidity, is scheduled to expire on December 31, 2004, and there can be no assurance that we will be successful in extending or replacing it, (iv) we may continue to experience revenue losses or delays as a result of our U.S. retailing clients' actual and / or potential revision of claim approval and claim processing guidelines, (v) the bankruptcy of any of our larger clients, or of any such clients' larger customers or suppliers, could impair then-existing accounts receivable and reduce expected future revenues from such clients, (vi) an indeterminate portion of $5.5 million in payments on account from a bankrupt client of the company received during the quarter ended March 31, 2003 might be recoverable as "preference payments" under United States bankruptcy laws and, if so, would result in the recording of an unbudgeted expense in the company's consolidated financial statements and the creation of an unbudgeted liquidity demand, (vii) modifications to auditor compensation models may negatively impact employee productivity and retention, and therefore, our ability to generate revenues, (viii) the Meridian VAT Reclaim operating segment may require additional time and effort of company executives and may therefore distract management from its focus on the company's core Accounts Payable Services business, (ix) proposed legislative and regulatory initiatives concerning the mechanisms of European value added taxation, if finalized as currently drafted, would reduce material portions of the revenues of Meridian VAT Reclaim, (x) we may not achieve anticipated expense savings in connection with our strategic business initiatives and may incur costs in excess of those currently anticipated in order to implement these initiatives, (xi) our past and future investments in technology may not benefit our business, (xii) our Accounts Payable Services businesses may not grow as expected, and we may not be able to increase the number of clients, particularly commercial clients, utilizing broad-scope audits, (xiii) our international expansion may prove unprofitable or may take longer to accomplish than we anticipate, and (xiv) the reorganization of our U.S. Accounts Payable Services operations in connection with our current strategic business initiatives may adversely affect our ability to generate anticipated revenues and profits and may not be successful or may require more time, management attention or expense than we currently anticipate. Other risks and uncertainties that may affect our business include (i) the possibility of an adverse judgment in pending securities litigation, (ii) potential timing issues that could delay revenue recognition, (iii) future weakness in the currencies of countries in which we transact business, (iv) changes in economic cycles, (v) competition from other companies, (vi) changes in governmental regulations applicable to us, (vii) until the Board has completed the process of exploring strategic alternatives, the company may experience higher levels of customer and employee turnover, and management's time and attention could be diverted from the operation of the business, and other risk factors discussed in our Securities and Exchange Commission filings, including the company's Form 10-K as filed with the Securities and Exchange Commission on March 5, 2004, and Form 10-Q as filed with the Securities and Exchange Commission on August 3, 2004. The company disclaims any obligation or duty to update or modify these forward-looking statements. SCHEDULE 1 PRG-SCHULTZ INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
THREE MONTHS NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, ------------------------------- ------------------------------ 2004 2003 2004 2003 -------------- -------------- -------------- ------------- Revenues $ 85,137 $ 88,221 $ 263,192 $ 279,837 Cost of revenues 54,249 57,155 168,372 173,755 Selling, general and administrative expenses 28,425 32,649 94,875 90,382 -------------- -------------- -------------- ------------- Operating income (loss) 2,463 (1,583) (55) 15,700 Interest (expense), net (2,133) (2,234) (6,377) (6,664) -------------- -------------- -------------- ------------- Earnings (loss) from continuing operations before income taxes and discontinued operations 330 (3,817) (6,432) 9,036 Income tax expense (benefit) 125 (1,465) (2,445) 3,309 -------------- -------------- -------------- ------------- Earnings (loss) from continuing operations before discontinued operations 205 (2,352) (3,987) 5,727 Discontinued operations: Earnings from discontinued operations, net of income taxes - 438 - 1,027 Gain on disposal of discontinued operations including operating results for phase-out period, net of income taxes 260 206 7,349 530 -------------- -------------- -------------- ------------- Earnings from discontinued operations 260 644 7,349 1,557 -------------- -------------- -------------- ------------- Net earnings (loss) $ 465 $ (1,708) $ 3,362 $ 7,284 ============== ============== ============== ============= Basic earnings (loss) per share: Earnings (loss) from continuing operations before discontinued operations $ - $ (0.04) $ (0.07) $ 0.09 Discontinued operations 0.01 0.01 0.12 0.03 -------------- -------------- -------------- ------------- Net earnings (loss) $ 0.01 $ (0.03) $ 0.05 $ 0.12 ============== ============== ============== ============= Diluted earnings (loss) per share: Earnings (loss) from continuing operations before discontinued operations $ - $ (0.04) $ (0.07) $ 0.09 Discontinued operations 0.01 0.01 0.12 0.03 -------------- -------------- -------------- ------------- Net earnings (loss) $ 0.01 $ (0.03) $ 0.05 $ 0.12 ============== ============== ============== ============= Weighted average shares outstanding: Basic 61,808 61,450 61,734 61,830 ============== ============== ============== ============= Diluted 62,108 61,450 61,734 62,090 ============== ============== ============== =============
SCHEDULE 2 PRG-SCHULTZ INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS) (UNAUDITED)
SEPTEMBER 30, DECEMBER 31, 2004 2003 ------------------- ------------------ ASSETS Current assets: Cash and cash equivalents $ 13,735 $ 26,658 Restricted cash 6,018 5,758 Receivables: Contract receivables 51,562 53,185 Employee advances and miscellaneous receivables 2,670 3,573 ------------------- ------------------ Total receivables 54,232 56,758 ------------------- ------------------ Funds held for client obligations 15,184 18,690 Prepaid expenses and other current assets 4,218 3,779 Deferred income taxes 9,211 9,211 Current assets of discontinued operations - 3,179 ------------------- ------------------ Total current assets 102,598 124,033 Property and equipment 27,627 29,466 Goodwill 170,561 170,619 Intangible assets 30,578 31,617 Deferred income taxes 65,049 65,370 Other assets 3,213 3,152 Long-term assets of discontinued operations - 1,792 ------------------- ------------------ Total assets $ 399,626 $ 426,049 =================== ================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current installments of long-term debt $ 7,900 $ 31,600 Obligation for client payables 15,184 18,690 Accounts payable and accrued expenses 22,569 25,780 Accrued payroll and related expenses 41,127 40,256 Deferred revenue 4,794 4,601 Current liabilities of discontinued operations - 1,391 ------------------- ------------------ Total current liabilities 91,574 122,318 Convertible notes, net of unamortized discount of $1,943 in 2004 and $2,605 in 2003 123,057 122,395 Deferred compensation 3,137 3,695 Other long-term liabilities 4,908 4,511 ------------------- ------------------ Total liabilities 222,676 252,919 ------------------- ------------------ Shareholders' equity: Preferred stock - - Common stock 68 67 Additional paid-in capital 493,501 492,878 Accumulated deficit (268,134) (271,496) Accumulated other comprehensive income 319 616 Less treasury stock at cost (48,710) (48,710) Unearned portion of restricted stock (94) (225) ------------------- ------------------ Total shareholders' equity 176,950 173,130 ------------------- ------------------ Total liabilities and shareholders' equity $ 399,626 $ 426,049 =================== ==================
SCHEDULE 3 PRG-SCHULTZ INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (AMOUNTS IN THOUSANDS) (UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, ----------------------------------- 2004 2003 --------------- --------------- Cash flows from operating activities: Net earnings $ 3,362 $ 7,284 Gain on disposal of discontinued operations (7,349) (530) Earnings from discontinued operations - (1,027) --------------- --------------- Earnings (loss) from continuing operations (3,987) 5,727 Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities: Depreciation and amortization 13,374 13,465 Restricted stock compensation expense (23) 271 Loss on sale of property and equipment 161 115 Deferred compensation expense (558) (430) Deferred income taxes (5,542) (114) Income tax benefit relating to stock option exercises 11 88 Changes in operating assets and liabilities: Restricted cash securing letter of credit obligation (217) (5,756) Receivables 2,486 19,124 Prepaid expenses and other current assets (1,203) (406) Other assets (131) (345) Accounts payable and accrued expenses (4,550) (858) Accrued payroll and related expenses 916 (11,028) Deferred revenue 348 2,021 Other long-term liabilities 397 (315) --------------- --------------- Net cash provided by operating activities 1,482 21,559 --------------- --------------- Cash flows from investing activities: Purchase of property and equipment, net of sale proceeds (9,294) (7,385) Proceeds from sale of certain discontinued operations 19,116 - --------------- --------------- Net cash provided by (used in) investing activities 9,822 (7,385) --------------- --------------- Cash flows from financing activities: Net repayments of debt (23,700) (2,890) Payments for issuance costs on convertible notes (21) (12) Net proceeds from common stock issuances 767 443 Purchase of treasury shares - (7,528) --------------- --------------- Net cash used in financing activities (22,954) (9,987) --------------- --------------- Net cash (used in) provided by discontinued operations (1,146) 1,015 Effect of exchange rate changes on cash and cash equivalents (127) 1,198 --------------- --------------- Net change in cash and cash equivalents (12,923) 6,400 Cash and cash equivalents at beginning of period 26,658 14,860 --------------- --------------- Cash and cash equivalents at end of period $ 13,735 $ 21,260 =============== ===============
SCHEDULE 4 PRG-SCHULTZ INTERNATIONAL, INC. AND SUBSIDIARIES SUMMARY OPERATING SEGMENT RESULTS FROM CONTINUING OPERATIONS (UNAUDITED) THREE MONTHS ENDED SEPTEMBER 30, (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
2004 2003 ------------------------------------------------------------------ $ % REV. $ % REV. --------------------------------------------------------------------------------------------------------- ACCOUNTS PAYABLE SERVICES ------------------------- Revenues $75,625 $80,487 Operating income $11,493 15.2% $12,393 15.4% --------------------------------------------------------------------------------------------------------- MERIDIAN VAT RECLAIM -------------------- Revenues $9,512 $7,734 Operating income $1,979 20.8% $1,130 14.6% --------------------------------------------------------------------------------------------------------- CORPORATE SUPPORT ----------------- Operating loss ($11,009) -12.9% ($15,106) -17.1% --------------------------------------------------------------------------------------------------------- TOTAL ----- Revenues $85,137 $88,221 Operating income (loss) $2,463 2.9% ($1,583) -1.8% Earnings (loss) from continuing operations $205 0.2% ($2,352) -2.7% Diluted earnings (loss) per share from continuing operations $0.00 ($0.04) Diluted shares 62,108 61,450 ---------------------------------------------------------------------------------------------------------
Notes: Corporate Support Operating Loss % shown as a % of Total Revenues Earnings (Loss) from Continuing Operations and Diluted Earnings (Loss) Per Share from Continuing Operations are prior to Earnings (Loss) from Discontinued Operations. SCHEDULE 5 PRG-SCHULTZ INTERNATIONAL, INC. AND SUBSIDIARIES SUMMARY OPERATING SEGMENT RESULTS FROM CONTINUING OPERATIONS (UNAUDITED) NINE MONTHS ENDED SEPTEMBER 30, (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
2004 2003 ------------------------------------------------------------------ $ % REV. $ % REV. --------------------------------------------------------------------------------------------------------- ACCOUNTS PAYABLE SERVICES ------------------------- Revenues $231,460 $248,185 Operating income $29,853 12.9% $42,972 17.3% --------------------------------------------------------------------------------------------------------- MERIDIAN VAT RECLAIM -------------------- Revenues $31,732 $31,652 Operating income $8,026 25.3% $10,935 34.5% --------------------------------------------------------------------------------------------------------- CORPORATE SUPPORT ----------------- Operating loss ($37,934) -14.4% ($38,207) -13.7% --------------------------------------------------------------------------------------------------------- TOTAL ----- Revenues $263,192 $279,837 Operating income (loss) ($55) 0.0% $15,700 5.6% Earnings (loss) from continuing operations ($3,987) -1.5% $5,727 2.0% Diluted earnings (loss) per share from continuing operations ($0.07) $0.09 Diluted shares 61,734 62,090 ---------------------------------------------------------------------------------------------------------
Notes: Corporate Support Operating Loss % shown as a % of Total Revenues Earnings (Loss) from Continuing Operations and Diluted Earnings (Loss) Per Share from Continuing Operations are prior to Earnings from Discontinued Operations. SCHEDULE 6 PRG-SCHULTZ INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATION OF NET EARNINGS (LOSS) TO EBITDA (AMOUNTS IN THOUSANDS) (UNAUDITED)
THREE MONTHS NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, --------------------------------- ------------------------------- 2004 2003 2004 2003 ---------------- -------------- --------------- ------------- Reconciliation of net earnings (loss) to EBITDA: ----------------------------------------------- Net earnings (loss) $ 465 $ (1,708) $ 3,362 $ 7,284 Adjust for: Earnings from discontinued operations 260 644 7,349 1,557 ---------------- -------------- --------------- ------------- Earnings (loss) from continuing operations 205 (2,352) (3,987) 5,727 Adjust for: Income taxes 125 (1,465) (2,445) 3,309 Interest 2,133 2,234 6,377 6,664 Depreciation and amortization 4,093 4,226 11,934 12,384 ---------------- -------------- --------------- ------------- EBITDA $ 6,556 $ 2,643 $ 11,879 $ 28,084 ================ ============== =============== ============= Total revenues $ 85,137 $ 88,221 $ 263,192 $ 279,837 EBITDA as % of Revenues 7.7% 3.0% 4.5% 10.0%
In this press release, the Company has provided a financial measure, EBITDA, defined as earnings from continuing operations before taxes, interest, depreciation and amortization. EBITDA is considered a 'non-GAAP' financial measure within the meaning of Regulation G and may not be similar to EBITDA measures employed by other companies. EBITDA is presented solely as a supplemental disclosure because management believes it to be an effective measure of the operating performance of the Company's core business activities. EBITDA is not provided as a measure of liquidity and should not be viewed as such. EBITDA should not be considered in isolation of, or as a substitute for, other measures for determining operating performance that are calculated in accordance with GAAP. This schedule provides a reconciliation of net earnings (loss) to EBITDA in accordance with Securities and Exchange Commission guidance. # # # CONTACTS: James Moylan Linda Master-Parker Chief Financial Officer VP Corporate Communications (770) 779-6605 (770) 779-3295 Matthew Sherman Joele Frank, Wilkinson Brimmer Katcher (212) 355-4449