EX-99.3 4 b761673cexv99w3.htm EX-99.3 H3C - SUMMARY FINANCIAL INFORMATION PROVIDED TO BANK LENDERS exv99w3
EXHIBIT 99.3
H3C Summary Financial Information Provided to Bank Lenders
H3C Holdings Limited
For the Fiscal Quarters Ended March 31, 2009 and 2008
(Unaudited; amounts in thousands except percentages)
Unit: US$K for Amounts
                     
Items   FY 2009   FY 2008
(1)  
Sales
   $ 208,426     $ 187,101  
(2)  
Gross profit
   $ 125,660     $ 108,658  
(3)  
Gross profit as a percent of sales
     60.3 %     58.1 %
(4)  
Consolidated Adjusted EBITDA (a)
   $ 75,490     $ 60,209  
(5)  
Consolidated Adjusted EBITDA as a percent of sales
     36.2 %     32.2 %
(6)  
Taxes
   $ 8,296     $ (4,398 )
(7)  
Deferred income tax
   $ 179     $ (6,416 )
(8)  
Consolidated Net Income (a)
   $ 45,274     $ 30,444  
(9)  
Net Income based on GAAP
   $ 45,274     $ 30,444  
(10)  
Cash, Cash equivalents and short term investments
   $ 568,315     $ 404,049  
(11)  
Net property plant and equipment
   $ 12,640     $ 20,761  
(12)  
Consolidated Working Capital (a)
   $ 20,201     $ (50,136 )
(13)  
Consolidated Capital Expenditures (a)
   $ 1,210     $ 1,843  
(14)  
Consolidated Capital Expenditures as a percent of sales
     0.6 %     1.0 %
(15)  
Increase in Consolidated Working Capital
   $ 56,109     $ (44,981 )
(16)  
The result of Consolidated Adjusted EBITDA less Consolidated Working Capital
   $ 55,289     $ 110,345  
 
(a)   These are Non-GAAP financial measures. Where the measure differs from its most comparable GAAP measure, a reconciliation to the most comparable GAAP measure has been provided on next page.

 

 

Reconciliation of Consolidated Adjusted EBITDA to Net Income based on GAAP:
                 
    FY 2009     FY 2008  
Net Income based on GAAP
   $ 45,274     $ 30,444  
 
                
Add:
                
Minority Interest
   $ 0     $ 0  
Purchase accounting adjustment
   $ 0     $ 0  
Consolidated Net Interest Expense
   $ 3,234     $ 6,479  
Provisions for taxes based on income
   $ 8,296     $ (4,398 )
Total depreciation expense
   $ 2,818     $ 4,264  
Total amortization expense
   $ 15,813     $ 23,413  
EARP expense due to the change of control
   $ 0     $ 0  
Other non-cash items reducing Consolidated Net Income
   $ 55     $ 7  
 
                
Less:
                
Other non-cash items increasing Consolidated Net Income
   $ 0       0  
 
            
 
                
Consolidated Adjusted EBITDA
   $ 75,490     $ 60,209  
 
            
Reconciliation of Consolidated Working Capital to Working Capital based on GAAP:
                 
    FY 2009     FY 2008  
Working Capital based on GAAP
   $ 401,569     $ 240,797  
Less:
                
Cash & Cash equivalents
   $ 429,368     $ 338,933  
Current portion of Long Term Debt
   $ (48,000 )   $ (48,000 )
 
            
 
                
Consolidated Working Capital
   $ 20,201     $ (50,136 )
 
            
Defined terms have the definitions ascribed to such terms in the Company’s senior secured credit agreement.