EX-99.2 3 dex992.htm CERTAIN PRO FORMA FINANCIAL INFORMATION Certain Pro Forma Financial Information

Exhibit 99.2

Pro Forma Revenue, Net Income and Adjusted EBITDA

 

     Twelve Months Ended September 30, 2006  
     Historical     Adjustments        
(Dollars in Thousands)    CRC     Aspen     CRC     Aspen     Pro Forma
Adjusted
Total
 
     (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Net revenue.......................................................

   $ 244,029 (1)   $ 143,175 (1)   $ 23,878 (2)   $ 907 (2)   $ 411,989  

Net income (loss) from continuing operations..

   $ (30,949 )(1)   $ 7,870 (1)     —         —       $ (23,079 )

Adjusted EBITDA (3).......................................

           $ 101,079  

(1) In order to facilitate comparisons with twelve-month operating results, the Company has presented certain “twelve months ended September 30, 2006” operating results, a presentation not made in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. For the Company and Aspen, operating results for the twelve months ended September 30, 2006 are presented as the mathematical addition of operating results for the three months ended December 31, 2005 and the nine months ended September 30, 2006. For the Company, its operating results for the nine months ended September 30, 2006 are presented as the mathematical addition of its operating results for the one month ended January 31, 2006 and its operating results for the eight months ended September 30, 2006. This approach is not consistent with U.S. GAAP and may yield results that are not strictly comparable on a period-to-period basis primarily due to the impact of purchase accounting entries recorded as a result of the acquisition of the Company by investment funds managed by Bain Capital Partners, LLC in the first quarter of 2006. However, the Company’s management believes that it is the most meaningful way to present the Company’s results of operations for the nine months ended September 30, 2006. Operating results for the twelve months ended September 30, 2006 are derived from the following, presented in accordance with U.S. GAAP:

 

(Dollars in Thousands)    Three Months
Ended
December 31,
2005
    One Month
Ended
January 31,
2006
    Eight Months
Ended
September 30,
2006
   Nine Months
Ended
September 30,
2006
    Twelve Months
Ended
September 30,
2006
 
     (unaudited)     (unaudited)     (unaudited)    (unaudited)     (unaudited)  

CRC:

           

Net revenue...............................................

   $ 57,945     $ 19,850     $ 166,234    $ 186,084     $ 244,029  

Net income (loss) from continuing operations..............................................

   $ 4,853     $ (38,993 )   $ 3,191    $ (35,802 )   $ (30,949 )

Aspen:

           

Net revenue...............................................

   $ 31,174          $ 112,001     $ 143,175  

Net income (loss) from continuing operations.............................................

   $ (370 )        $ 8,240     $ 7,870  


(2) Reflects pro forma revenue for acquisitions during the twelve months ended September 30, 2006, as if such acquisitions had occurred on October 1, 2005, and unrecognized profit on deferred revenue.

(3) Adjusted EBITDA is not a presentation made in accordance with U.S. GAAP. The Company’s use of the term Adjusted EBITDA may differ from other companies in its industry and these measures should not be considered in isolation of, or as a substitute for, results prepared in accordance with U.S. GAAP. Adjusted EBITDA is being provided to the potential additional lenders under the Company’s senior secured term loan, as proposed to be amended and restated in connection with its acquisition of Aspen. Adjusted EBITDA as presented herein contains similar adjustments that are taken into account in the calculation of “EBITDA,” used in connection with various covenants in the indenture governing the Company’s senior subordinated notes, and “Consolidated EBITDA,” used in components of various covenants in the Company’s senior secured credit facility, as well as certain other adjustments included in the lender presentation regarding the senior secured term loan, as proposed to be amended.

EBITDA from continuing operations and Adjusted EBITDA are reconciled from net income from continuing operations determined under U.S. GAAP as follows:

Unaudited Pro Forma Adjusted EBITDA for the Twelve Months Ended September 30, 2006

(Dollars in Thousands)

 

     CRC Twelve Months
Ended September 30,
2006
    Aspen Twelve
Months Ended
September 30, 2006
    Pro Forma Twelve
Months Ended
September 30, 2006
 
     (unaudited)     (unaudited)     (unaudited)  

Statement of operations data:

      

Net income (loss) from continuing operations

   $ (30,949 )   $ 7,870     $ (23,079 )

Interest expense—net

     36,657       3,276       39,933  

Other financing costs

     10,655       —         10,655  

Income tax expense (benefits)

     (6,293 )     4,964       (1,329 )

Depreciation and amortization

     7,769       4,860       12,629  

Pro forma sale leaseback rent expense

     —         (397 )     (397 )

Pro forma management fee to our Sponsor

     (394 )     —         (394 )
                        

EBITDA

   $ 17,445     $ 20,573     $ 38,018  
                        

Adjustments to EBITDA:

      

CRC adjustments

      

Expenses incurred related to the Bain Transaction

     45,375       —         45,375  

Expense related to forgiveness of loan to Chief Executive Officer

     205       —         205  

Unrecognized profit on deferred revenue

     1,474       —         1,474  

Stock-based compensation

     2,586       —         2,586  

Gain on interest rate swap

     (493 )     —         (493 )

Loss (gain) on fixed asset disposals

     (18 )     —         (18 )

Management fee to our Sponsor

     1,883       —         1,883  

Write-off of cancelled acquisitions expenses

     15       —         15  

Cash rent adjustment (a)

     377       —         377  

Pre-acquisition Adjusted EBITDA from 2006 acquisitions

     5,070       —         5,070  

Aspen adjustments

      

Profit in minority interests (no dividends paid)

     —         705       705  

Pre-acquisition Adjusted EBITDA from 2005 acquisitions

     —         200       200  

Stock-based compensation

     —         215       215  

IPO consulting costs

     —         436       436  

Acquisition related costs

     —         297       297  

Cash rent adjustment (a)

     —         260       260  

Loss (gain) on fixed asset disposals

     —         419       419  

Loss on extinguishment of debt

     —         128       128  

Other (income)/expense

     —         9       9  

Synergies

     —         2,000       2,000  
                        

Adjusted EBITDA per CRC’s Proposed Amended and Restated Credit Agreement

   $ 73,919     $ 25,242     $ 99,161  
                        

Additional adjustments for lender presentation

      

Aspen start-up losses

     —         1,644       1,644  

Aspen bonus expense

     —         274       274  
                        

Adjusted EBITDA Presented Herein

   $ 73,919     $ 27,160     $ 101,079  
                        

 

(a) Adjustment proposed to be included in amended and restated senior secured credit facility.