EX-99.3 4 b78537exv99w3.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 September 30, 2009 and 2008
(Unaudited; amounts in thousands except percentages)
                     
    Unit: US$K for Amounts        
    Items   9/30/2009   9/30/2008
 
                    
(1)
   Sales   $ 211,901     $ 245,659  
(2)
   Gross profit   $ 130,209     $ 145,003  
(3)
   Gross profit as a percent of sales     61.4%       59.0%  
(4)
   Consolidated Adjusted EBITDA (a)   $ 66,903     $ 95,435  
(5)
   Consolidated Adjusted EBITDA as a percent of sales     31.6%       38.8%  
(6)
   Taxes     ($2,155 )   $ 5,135  
(7)
   Deferred income tax   $ 1,218     $ 1,506  
(8)
   Consolidated Net Income (a)   $ 47,148     $ 59,724  
(9)
   Net income based on GAAP   $ 47,148     $ 59,724  
(10)
   Cash, cash equivalents and short term investments   $ 477,406     $ 427,086  
(11)
   Net property plant and equipment   $ 10,315     $ 17,019  
(12)
   Consolidated Working Capital (a)     ($116,689 )   $ 42,628  
(13)
   Consolidated Capital Expenditures (a)   $ 1,187     $ 1,447  
(14)
   Consolidated Capital Expenditures as a percent of sales     0.6%       0.6%  
(15)
   (Decrease)Increase in Consolidated Working Capital     ($115,274 )   $ 10,247  
(16)
   The result of Consolidated Adjusted EBITDA less Consolidated Working Capital   $ 183,592     $ 52,807  
 
(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 the (or below) next page.

 

 

Reconciliation of Consolidated Adjusted EBITDA to net income based on GAAP:
                 
    9/30/2009     9/30/2008  
Net Income based on GAAP
   $ 47,148     $ 59,724  
 
                
Add:
                
Consolidated Interest Expense
   $ 2,058     $ 3,868  
Provisions for taxes based on income
     ($2,155 )   $ 5,135  
Total depreciation expense
   $ 2,025     $ 3,808  
Total amortization expense
   $ 15,716     $ 22,843  
Other non-cash items reducing net income
   $ 2,111     $ 57  
 
            
 
                
Consolidated Adjusted EBITDA
   $ 66,903     $ 95,435  
 
            
Reconciliation of Consolidated Working Capital to working capital based on GAAP:
                 
    9/30/2009     9/30/2008  
Working capital based on GAAP
   $ 277,020     $ 308,376  
 
                
Less: Cash and cash equivalents
     ($441,709 )     ($313,748 )
Add: Current portion of long term debt
   $ 48,000     $ 48,000  
 
            
 
                
Consolidated Working Capital
     ($116,689 )   $ 42,628  
 
            
Defined terms have the definitions ascribed to such terms in the Company’s senior secured credit agreement.