EX-99.1 2 prg8k90606ex99.htm RECONCILIATION OF NON-GAAP PROJECTIONS Reconciliation of Non-GAAP Projections
EXHIBIT 99.1

PRG-SCHULTZ INTERNATIONAL, INC.
Reconciliation of Projected Net Earnings (Loss) to Projected EBITDA and Adjusted EBITDA*
 
               
Years Ended: 2006 - 2008
             
               
   
Per the Offering Circular
Dated February 1, 2006**
 
       
Description
 
2006
 
2007
 
2008
 
Net Earnings/(Loss)
   
(12,732
)
 
4,635
   
9,442
 
                     
Add Back:
                   
Depreciation & Amortization
   
8,731
   
6,906
   
5,380
 
Interest Expense
   
13,879
   
15,318
   
14,846
 
Income Taxes
   
1,830
   
3,983
   
6,762
 
                     
EBITDA
   
11,708
   
30,842
   
36,430
 
                     
Financial Restructuring Expense
   
6,315
   
-
   
-
 
                     
Adjusted EBITDA*
   
18,023
   
30,842
   
36,430
 

* Adjusted to exclude financial restructuring expenses

** Distributed in connection with the Company’s exchange offer, which closed on March 17, 2006. These projections are also contained in the Company’s registration statement as it was amended and filed on August 15, 2006.
 
EBITDA and adjusted EBITDA are both non-GAAP financial measures presented as supplemental measures of our performance. They are not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. The company believes these measures provide additional meaningful information in evaluating the company's performance over time, and that the rating agencies and a number of lenders use EBITDA and similar measures for similar purposes. In addition, a number of restrictive covenants related to the company's credit facilities use measures similar to EBITDA. However, EBITDA and adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. In addition, in evaluating EBITDA and adjusted EBITDA, you should be aware that in the future we will incur expenses such as those used in calculating these measures. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.