EX-99.3 4 b80245exv99w3.htm EX-99.3 exv99w3
EXHIBIT 99.3
H3C Summary Financial Information Provided to Bank Lenders
H3C Holdings Limited
For the Fiscal Years Ended December 31, 2008 and 2009
(Audited; amounts in thousands except percentages)
     Unit: US$K for Amounts
                     
    Items   2008 Actual     2009 Actual  
(1)  
Sales
   $ 884,959     $ 840,714  
(2)  
Gross profit
   $ 524,150     $ 518,224  
(3)  
Gross profit as a percent of sales
     59.2 %     61.6 %
(4)  
Consolidated Adjusted EBITDA (a)
   $ 311,372     $ 287,436  
(5)  
Consolidated Adjusted EBITDA as a percent of sales
     35.2 %     34.2 %
(6)  
Taxes
   $ 17,419     $ 14,311  
(7)  
Deferred income tax
   $  (14,289 )   $ 3,656  
(8)  
Consolidated Net Income (a)
   $ 164,035     $ 191,873  
(9)  
Net income based on GAAP
   $ 164,035     $ 191,873  
(10)  
Cash and cash equivalents
   $ 528,677     $ 576,187  
(11)  
Net property plant and equipment
   $ 14,264     $ 10,092  
(12)  
Consolidated Working Capital (a)
   $  (35,907 )   $  (144,626 )
(13)  
Consolidated Capital Expenditures (a)
   $ 6,779     $ 4,511  
(14)  
Consolidated Capital Expenditures as a percent of sales
     0.8 %     0.5 %
(15)  
Increase in Consolidated Working Capital
   $  (30,753 )   $  (108,719 )
   
 
                
(16)  
The result of Consolidated Adjusted EBITDA less Consolidated Working Capital
   $ 347,279     $ 432,063  
   
 
                
 
(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 next page.

 

 

Reconciliation of Consolidated Adjusted EBITDA to Net Income based on GAAP:
                 
    FY 2008     FY 2009  
Net income based on GAAP
   $ 164,035     $ 191,873  
 
                
Add:
                
Minority interest
   $ 0     $ 0  
Purchase accounting adjustment
   $ 0     $ 0  
Consolidated Net Interest Expense
   $ 17,534     $ 8,232  
Provisions for taxes based on income
   $ 17,419     $ 14,311  
Total depreciation expense
   $ 15,640     $ 9,096  
Total amortization expense
   $ 97,412     $ 61,055  
EARP expense due to the change of control
   $ 0     $ 0  
Other non-cash items reducing Consolidated Net Income
   $ 227     $ 2,869  
 
                
Less:
                
Other non-cash items increasing Consolidated Net Income
   $ 895     $ 0  
 
            
 
                
Consolidated Adjusted EBITDA
   $ 311,372     $ 287,436  
 
            
Reconciliation of Consolidated Working Capital to Working Capital based on GAAP:
                 
    FY 2008     FY 2009  
Working Capital based on GAAP
   $ 358,975     $ 356,873  
Less:
                
Cash and cash equivalents
   $ 442,882     $ 549,499  
Add:
                
Current portion of long term debt
   $ 48,000     $ 48,000  
 
            
 
                
Consolidated Working Capital
   $  (35,907 )   $  (144,626 )
 
            
Defined terms have the definitions ascribed to such terms in the Company’s senior secured credit agreement.