EX-99 2 gci8k050906exhibit.txt EXHIBIT 99.1 Exhibit 99.1 May 9, 2006 John Lowber, (907) 868-5628; jlowber@gci.com Bruce Broquet, (907) 868-6660; bbroquet@gci.com David Morris, (907) 265-5396; dmorris@gci.com FOR IMMEDIATE RELEASE GCI REPORTS FIRST QUARTER 2006 FINANCIAL RESULTS o Consolidated revenue of $112.8 million o Net income of $3.3 million or $0.06 per diluted share o EBITDA of $37.1 million ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported net income of $3.3 million, or earnings per diluted share of $0.06, for the first quarter of 2006. The company's first quarter net income compares to income of $4.7 million, or earnings per diluted share of $0.08 in the same period of 2005. GCI's first quarter 2006 revenues totaled $112.8 million, an increase of 5.9 percent over the first quarter of 2005. Revenue increases in GCI's Consumer, Network Access and Commercial segments were partially offset by decreased revenue in the Managed Broadband segment. First quarter 2006 earnings before interest, taxes, depreciation, amortization and non-cash share based compensation expense (EBITDA) totaled $37.1 million. EBITDA increased $2.6 million or 7.5 percent from the first quarter of 2005. First quarter 2005 EBITDA totaled $34.5 million including the MCI credit utilized of $0.9 million. Sequentially, revenues for the company increased slightly over fourth quarter 2005 revenues of $112.1 million. As expected, first quarter EBITDA of $37.1 million decreased from EBITDA of $42.9 million in the fourth quarter of 2005. EBITDA for the fourth quarter of 2005 included a $7.5 million net benefit from a claims settlement. For the first quarter of 2006, GCI met its revenue and EBITDA guidance. The company expected revenues of approximately $112 million to $114 million, and EBITDA of approximately $37 million, excluding non-cash stock based compensation expense. GCI reaffirms its guidance for revenues of $450 to $460 million and EBITDA of $150 million to $154 million for the year 2006. Second quarter revenues are expected to range between $112 million to $114 million and EBITDA is expected to increase from the first quarter. "First quarter results are in line with expectations and we expect that the next three quarters will each be stronger than the first as we continue to successfully grow our business", said Ron Duncan, GCI President. "This is the first report in our new format which reflects our new organizational focus on customers rather than products. We believe this change will enhance the quality of our customer's experience and allow us to more efficiently manage technological and product convergence." Highlights o Consumer revenues increased to $42.7 million, an increase of 6.2 percent over the prior year and increased 1.9 percent from the fourth quarter of 2005. The increases were due primarily to an increase in video and wireless sales. o Network Access revenues increased to $37.8 million, an increase of 10.9 percent over the prior year and increased 1.3 percent over the fourth quarter of 2005. The increase in revenues is due primarily to a 27.1 percent increase in long distance minutes carried on GCI's network for other common carriers for the first quarter of 2006 as compared to the first quarter of 2005. Minutes for the first quarter of 2006 increased 5.3 percent from the fourth quarter of 2005. The effect on revenues of increases in minutes for the first quarter of 2006 were partially offset by rate decreases. o Commercial revenues increased 2.8 percent over the prior year and decreased 2.6 percent from the fourth quarter of 2005. Commercial data subscriber increases primarily contributed to the revenue increase over the prior year. o GCI has provisioned 25,100 consumer and commercial lines on its Digital Local Phone Service (DLPS) facilities at the end of the first quarter of 2006, an increase of 3,200 lines over the fourth quarter of 2005. GCI's goal is to increase the total lines provided on its own facilities by 20,000 during 2006. o GCI local access lines remained relatively unchanged for the quarter after excluding approximately 500 Internet Service Provider dial-up lines that were turned down during the first quarter of 2006. Consumer, Network Access and Commercial local access lines totaled 112,500 at the end of the first quarter of 2006 representing an estimated 26 percent share of the total access lines market in Alaska. o GCI has 80,900 consumer and commercial cable modem access customers at the end of the first quarter of 2006, an increase of 3,500 over the 77,400 cable modem customers at year-end 2005. GCI customers continue to migrate from dial up access service to cable modem. Average monthly revenue per cable modem totaled $31.22 for the first quarter of 2006. o Through April 30, 2006 GCI repurchased 893,142 shares of its Class A Common shares at a cost of approximately $10.1 million or $11.36 per share. Depending on market conditions and the availability of free cash flows, the company is authorized to purchase an additional $12.9 million of Class A shares by the end of the second quarter of 2006. Consumer Total consumer revenues increased 6.2 percent to $42.7 million as compared to $40.2 million in the first quarter of 2005 and increased 1.9 percent from the fourth quarter of 2005. The increase in revenue over the prior year is due primarily to an increase in video and wireless sales resulting from an increase in subscribers and an increase in subscribers purchasing digital services. Consumer voice revenues decreased 5.7 percent from the prior year primarily due to a decrease in volume of long distance usage. Consumer local access lines in service are relatively unchanged from the prior year and from the fourth quarter of 2005. GCI converted 2,800 consumer access lines to its own facilities during the first quarter. Consumer video revenue increased 4.8 percent over the prior year and increased 1.9 percent over the fourth quarter of 2005. The increase in revenue is due to improving rates in certain markets and increases in video subscribers purchasing digital service and renting high definition / digital video recorder converters. Consumer data revenues increased 12.9 percent over the prior year and 9.4 percent over the fourth quarter of 2005. The increase in consumer data revenues is due to an increase in cable modem customers. GCI added 10,700 consumer cable modem customers over the prior year and 3,200 customers during the first quarter of 2006. Consumer wireless revenues increased substantially during the first quarter of 2006. The increase in revenue is due in part to a new GCI packaged offering that features Motorola's new Razr phone at a significant value to the consumer. Network Access Network access revenues increased 10.9 percent to $37.8 million as compared to 34.1 million in the first quarter of 2005 and increased 1.3 percent from the fourth quarter of 2005. Voice revenues increased 16.7 percent over the prior year and increased 2.1 percent from the fourth quarter of 2005. Network access minutes increased 27.1 percent to 288.0 million minutes for the first quarter of 2006 as compared to the first quarter of 2005. Minutes for the first quarter of 2006 increased 5.3 percent from the fourth quarter of 2005. The effect on revenues of increases in minutes for the first quarter of 2006 were partially offset by rate decreases. Data revenues were relatively unchanged from the prior year and from the fourth quarter of 2005. Commercial Commercial revenues increased 2.8 percent to $26.1 million as compared to $25.4 million in the first quarter of 2005 and decreased 2.6 percent from the fourth quarter of 2005. Increases in video, data and wireless revenues were partially offset by a decrease in voice revenues due primarily to declining rates per minute when compared to the first quarter of 2005. Commercial revenues decreased from the fourth quarter of 2005 due to a decrease in managed services revenues. GCI converted 400 commercial local access lines to its own facilities during the first quarter. Basic commercial video customers increased by 1,300 subscribers from the prior year and increased by 1,000 subscribers from the fourth quarter of 2005. Commercial video customers are primarily hotel video customers. Managed Broadband Managed broadband revenues totaled $6.2 million in the first quarter of 2006, a decrease of 8.8 percent from the first quarter of 2005 and an increase of 3.3 percent over the fourth quarter of 2005. The decrease from the prior year quarter is due to fewer multi-site SchoolAccess customers and a decrease in rates charged for certain services provided to rural health customers. The decrease in multi-site customers was off-set by an increase in single-site SchoolAccess customers which generate less revenue. Other Items Total selling, general and administrative expenses (SG&A) increased 6.7 percent to $39.7 million as compared to $37.2 million in the first quarter of 2005 and decreased 2.2 percent from the fourth quarter of 2005. The increase was due primarily to an increase in medical claims, information technology costs and share-based compensation expense due to the adoption of a new accounting rule on January 1, 2006. SG&A expenses are recorded by segment using a combination of direct charges and an allocation based on prior year gross margins by segment. During the first quarter of 2006 GCI's capital expenditures totaled $14.9 million as compared to $15.2 million in the fourth quarter of 2005. GCI will hold a conference call to discuss the quarter's results on Wednesday, May 10, 2006 beginning at 2 p.m. (Eastern). To access the briefing on May 10, dial 888-603-9217 (International callers should dial 415-228-4584.) and identify your call as "GCI." In addition to the conference call, GCI will make available net conferencing. To access the call via net conference, log on to www.gci.com and follow the instructions. A replay of the call will be available for 72-hours by dialing 866-454-2100, access code 7461 (International callers should dial 203-369-1240.) GCI is the largest telecommunications company in Alaska. A pioneer in bundled services, GCI provides local, wireless, and long distance telephone, cable television, Internet and data communication services throughout Alaska. More information about the company can be found at www.gci.com. The foregoing contains forward-looking statements regarding the company's expected results that are based on management's expectations as well as on a number of assumptions concerning future events. Actual results might differ materially from those projected in the forward looking statements due to uncertainties and other factors, many of which are outside GCI's control. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained in GCI's cautionary statement sections of Form 10-K and 10-Q filed with the Securities and Exchange Commission. # # # GENERAL COMMUNICATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) (Amounts in thousands) March 31, December 31, Assets 2006 2005 --------------------------------------------------------------------------------------- --------------- --------------- Current assets: Cash and cash equivalents $ 43,031 44,362 --------------- --------------- Receivables 82,598 78,279 Less allowance for doubtful receivables 5,891 5,317 --------------- --------------- Net receivables 76,707 72,962 Deferred income taxes, net 17,485 19,596 Prepaid expenses 6,933 8,347 Notes receivable from related parties 3,484 922 Inventories 3,135 1,556 Property held for sale 2,314 2,312 Other current assets 2,540 2,572 --------------- --------------- Total current assets 155,629 152,629 --------------- --------------- Property and equipment in service, net of depreciation 440,814 453,008 Construction in progress 15,690 8,337 --------------- --------------- Net property and equipment 456,504 461,345 --------------- --------------- Cable certificates 191,565 191,565 Goodwill 42,181 42,181 Other intangible assets 6,274 6,201 Deferred loan and senior notes costs, net of amortization of $1,702 and $1,451 at March 31, 2006 and December 31, 2005, respectively 7,760 8,011 Notes receivable from related parties 90 2,544 Other assets 11,427 9,299 --------------- --------------- Total other assets 259,297 259,801 --------------- --------------- Total assets $ 871,430 873,775 =============== =============== (Continued)
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued)
(Unaudited) (Amounts in thousands) March 31, December 31, Liabilities and Stockholders' Equity 2006 2005 --------------------------------------------------------------------------------------- --------------- --------------- Current liabilities: Current maturities of obligations under long-term debt and capital leases $ 1,774 1,769 Accounts payable 22,401 23,217 Deferred revenue 16,104 16,439 Accrued payroll and payroll related obligations 14,757 17,925 Accrued liabilities 7,073 6,814 Accrued interest 2,919 9,588 Subscriber deposits 373 361 --------------- --------------- Total current liabilities 65,401 76,113 Long-term debt 473,800 474,115 Obligation under capital leases, excluding current maturity 1,160 - Obligation under capital lease due to related party, excluding current maturity 613 628 Deferred income taxes, net of deferred income tax benefit 70,925 69,753 Other liabilities 10,876 9,546 --------------- --------------- Total liabilities 622,775 630,155 --------------- --------------- Stockholders' equity : Common stock (no par): Class A. Authorized 100,000 shares; issued 51,360 and 51,200 shares at March 31, 2006 and December 31, 2005, respectively 177,214 178,351 Class B. Authorized 10,000 shares; issued 3,839 and 3,843 shares at March 31, 2006 and December 31, 2005, respectively; con- vertible on a share-per-share basis into Class A common stock 3,244 3,247 Less cost of 291 Class A and Class B common shares held in treasury at March 31, 2006 and December 31, 2005 (1,730) (1,730) Paid-in capital 16,912 16,425 Notes receivable with related parties issued upon stock option exercise (1,722) (1,722) Retained earnings 54,737 49,049 --------------- --------------- Total stockholders' equity 248,655 243,620 --------------- --------------- Commitments and contingencies Total liabilities and stockholders' equity $ 871,430 873,775 =============== ===============
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2006 AND 2005
(Unaudited) March 31, (Amounts in thousands, except per share amounts) 2006 2005 ------------ ------------ Revenues $ 112,822 106,510 Cost of goods sold (exclusive of depreciation and amortization shown separately below) 36,184 35,200 Selling, general and administrative expenses 39,614 37,180 Bad debt expense (recovery) 501 (353) Depreciation and amortization expense 20,161 17,705 ------------ ------------ Operating income 16,362 16,778 ------------ ------------ Other income (expense): Interest expense (8,554) (8,331) Amortization of loan and senior notes fees (251) (483) Interest income 157 179 Other (113) - ------------ ------------ Other expense, net (8,761) (8,635) ------------ ------------ Net income before income taxes and cumulative effect of a change in accounting principle 7,601 8,143 Income tax expense 3,679 3,480 ------------ ------------ Net income before cumulative effect of a change in accounting principle 3,922 4,663 Cumulative effect of a change in accounting principle, net of income tax benefit of $425 (608) - ------------ ------------ Net income 3,314 4,663 Preferred stock dividends - 93 ------------ ------------ Net income available to common shareholders $ 3,314 4,570 ============ ============ Basic net income per common share: Net income before cumulative effect of a change in accounting principle $ 0.07 0.08 Cumulative effect of a change in accounting principle (0.01) - ------------ ------------ Net income $ 0.06 0.08 ============ ============ Diluted net income per common share: Net income before cumulative effect of a change in accounting principle $ 0.07 0.08 Cumulative effect of a change in accounting principle (0.01) - ------------ ------------ Net income $ 0.06 0.08 ============ ============ Common shares used to calculate basic EPS 54,561 55,108 ============ ============ Common shares used to calculate diluted EPS 56,217 56,341 ============ ============
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES (Unaudited) (Amounts in thousands)
First Quarter 2006 ------------------------------------------------------------------ Network Access Managed Consumer Services Commercial Broadband Totals -------- -------- ---------- --------- ------ Revenues Voice $ 11,311 24,485 8,023 - 43,819 Video 22,003 - 1,726 - 23,729 Data 6,961 13,338 15,910 6,208 42,417 Wireless 2,388 - 469 - 2,857 ------------------------------------------------------------------ Total 42,663 37,823 26,128 6,208 112,822 Cost of goods sold 15,923 8,776 10,424 1,061 36,184 ------------------------------------------------------------------ Contribution 26,740 29,047 15,704 5,147 76,638 SG&A 18,406 9,178 8,909 3,234 39,727 Bad debt expense 257 - 139 105 501 ------------------------------------------------------------------ EBITDA 8,077 19,869 6,656 1,808 36,410 Add share-based compensation 262 206 161 49 678 ------------------------------------------------------------------ EBITDA, as adjusted $ 8,339 20,075 6,817 1,857 37,088 ==================================================================
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES (Unaudited) (Amounts in thousands)
First Quarter 2005 ------------------------------------------------------------------ Network Access Managed Consumer Services Commercial Broadband Totals -------- -------- ---------- --------- ------ Revenues Voice $ 11,996 20,969 8,781 - 41,746 Video 20,994 - 1,644 - 22,638 Data 6,245 13,175 14,746 6,815 40,981 Wireless 957 - 188 - 1,145 ------------------------------------------------------------------ Total 40,192 34,144 25,359 6,815 106,510 Cost of goods sold 14,951 7,787 11,385 1,077 35,200 ------------------------------------------------------------------ Contribution 25,241 26,357 13,974 5,738 71,310 SG&A 17,533 8,077 8,403 3,167 37,180 Bad debt expense (245) - (93) (15) (353) ------------------------------------------------------------------ EBITDA $ 7,953 18,280 5,664 2,586 34,483 ==================================================================
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES (Unaudited) (Amounts in thousands)
Fourth Quarter 2005 (1) ------------------------------------------------------------------ Network Access Managed Consumer Services Commercial Broadband Totals -------- -------- ---------- --------- ------ Revenues Voice $ 11,720 23,995 7,867 - 43,582 Video 21,612 - 1,773 - 23,385 Data 6,419 13,264 16,778 6,038 42,499 Wireless 2,194 - 430 - 2,624 ------------------------------------------------------------------ Total 41,945 37,259 26,848 6,038 112,090 Cost of goods sold 14,645 2,109 9,419 1,098 27,271 ------------------------------------------------------------------ Contribution 27,300 35,150 17,429 4,940 84,819 SG&A 18,672 9,425 9,100 3,446 40,643 Bad debt expense 501 - 324 383 1,208 Restructuring expense 37 - 36 - 73 ------------------------------------------------------------------ EBITDA $ 8,090 25,725 7,969 1,111 42,895 ==================================================================
(1) The fourth quarter of 2005 segment results are estimates that will be finalized when we report our results for the applicable quarter for the year 2006. GENERAL COMMUNICATION, INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES (Unaudited) (Amounts in thousands)
Second Quarter 2005 (1) ------------------------------------------------------------------ Network Access Managed Consumer Services Commercial Broadband Totals -------- -------- ---------- --------- ------ Revenues Voice $ 11,592 23,939 8,796 - 44,327 Video 21,142 - 1,889 - 23,031 Data 6,321 12,968 15,469 7,002 41,760 Wireless 1,293 - 254 - 1,547 ------------------------------------------------------------------ Total 40,348 36,907 26,408 7,002 110,665 Cost of goods sold 15,712 7,791 11,151 1,391 36,045 ------------------------------------------------------------------ Contribution 24,636 29,116 15,257 5,611 74,620 SG&A 17,807 8,403 8,574 3,235 38,019 Bad debt expense (recovery) (220) - (114) 528 194 ------------------------------------------------------------------ EBITDA $ 7,049 20,713 6,797 1,848 36,407 ==================================================================
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES SUPPLEMENTAL SCHEDULES (Unaudited) (Amounts in thousands)
Third Quarter 2005 (1) ------------------------------------------------------------------ Network Access Managed Consumer Services Commercial Broadband Totals -------- -------- ---------- --------- ------ Revenues Voice $ 11,512 26,652 8,273 - 46,437 Video 20,983 - 1,857 - 22,840 Data 6,328 13,372 16,599 6,248 42,547 Wireless 1,619 - 318 - 1,937 ------------------------------------------------------------------ Total 40,442 40,024 27,047 6,248 113,761 Cost of goods sold 15,452 7,853 11,963 1,077 36,345 ------------------------------------------------------------------ Contribution 24,990 32,171 15,084 5,171 77,416 SG&A 18,007 8,636 8,693 3,284 38,620 Bad debt expense (429) - (451) 911 31 Restructuring expense 624 737 380 153 1,894 Loss on termination of capital lease 921 1,089 562 225 2,797 ------------------------------------------------------------------ EBITDA 5,867 21,709 5,900 598 34,074 Add restructuring charge to be paid in future periods 424 502 259 104 1,289 ------------------------------------------------------------------ EBITDA, as adjusted $ 6,291 22,211 6,159 702 35,363 ==================================================================
(1) The second, third and fourth quarter of 2005 segment results are estimates that will be finalized when we report our results for the applicable quarter for the year 2006. GENERAL COMMUNICATION, INC. AND SUBSIDIARIES KEY PERFORMANCE INDICATORS (Unaudited)
Mar 31, 2006 Mar 31, 2006 as compared to as compared to Mar 31, Mar 31, Dec 31, Mar 31, Dec 31, Mar 31, Dec 31, 2006 2005 2005 2005 2005 2005 2005 ---- ---- ---- ---- ---- ---- ---- Consumer Voice Total local access lines in service 68,600 69,000 68,400 (400) 200 -0.6% 0.3% DLPS access lines in service 24,100 10,400 21,300 13,700 2,800 131.7% 13.1% Video Basic subscribers 122,100 122,000 122,600 100 (500) 0.1% -0.4% Digital programming tier subscribers 54,900 48,000 53,700 6,900 1,200 14.4% 2.2% HD/DVR converter boxes 16,200 6,700 12,500 9,500 3,700 141.8% 29.6% Homes passed 216,000 209,600 215,000 6,400 1,000 3.1% 0.5% Data Cable modem subscribers 74,000 63,300 70,900 10,700 3,100 16.9% 4.4% Commercial Voice: Total local access lines in service 40,600 39,900 40,700 700 (100) 1.8% -0.2% DLPS access lines in service 1,000 400 600 600 400 150.0% 66.7% Video Hotels and mini-headend 13,900 12,700 12,900 1,200 1,000 9.4% 7.8% subscribers Basic subscribers 1,500 1,400 1,500 100 - 7.1% 0.0% ----------------------------------- ---------------------- ---------------------- Total basic subscribers 15,400 14,100 14,400 1,300 1,000 9.2% 6.9% =================================== ====================== ====================== Data Cable modem subscribers 6,900 6,000 6,500 900 400 15.0% 6.2% Broadband SchoolAccess(R) customers 47 43 (47) 4 - 9.3% 0.0% Rural health customers 21 21 21 - - 0.0% 0.0% Combined Consumer & Commercial Wireless Total lines in service 20,100 9,500 16,100 10,600 4,000 111.6% 24.8%
Mar 31, 2006 Mar 31, 2006 Three Months Ended as Compared to as Compared to Mar 31, Mar 31, Dec 31, Mar 31, Dec 31, Mar 31, Dec 31, 2006 2005 2005 2005 2005 2005 2005 ---- ---- ---- ---- ---- ---- ---- Consumer Voice Long-distance minutes carried (in millions) 36.9 40.8 40.2 (3.9) (3.3) -9.6% -8.2% Video Avgerage gross revenue per subscriber $ 63.87 $ 59.25 $ 60.00 $ 4.62 $ 3.87 7.8% 6.5% NAS Voice Long-distance minutes carried (in millions) 288.0 226.6 273.5 61.4 14.6 27.1% 5.3% Commercial Voice: Long-distance minutes carried (in millions) 35.1 35.1 33.2 0.0 1.9 0.1% 5.8%
General Communication, Inc. Non-GAAP Financial Reconciliation Schedule (Unaudited, Amounts in Millions)
Three Months Ended March 31, March 31, December 31, 2006 2005 2005 ------------ ------------ -------------- EBITDA, as adjusted (Note 1) $ 37.2 34.5 43.0 Share-based compensation expense (0.7) --- (0.1) ------------ ------------ -------------- EBITDA (Note 2) 36.5 34.5 42.9 Depreciation and amortization expense (20.1) (17.8) (19.6) ------------ ------------ -------------- Operating income 16.4 16.7 23.3 ------------ ------------ -------------- Other income (expense): Interest expense (8.6) (8.3) (8.4) Amortization of loan and senior notes fee expense (0.3) (0.5) (0.2) Interest income 0.1 0.2 0.1 ------------ ------------ -------------- Other expense, net (8.8) (8.6) (8.5) ------------ ------------ -------------- Net income before income taxes and cumulative effect of a change in accounting principle 7.6 8.1 14.8 Income tax expense (3.7) (3.5) (6.2) ------------ ------------ -------------- Net income before cumulative effect of a change in accounting principle 3.9 4.6 8.6 Cumulative effect of change in accounting principle, net of income tax benefit of $0.4 (0.6) --- --- ------------ ------------ -------------- Net income $ 3.3 4.6 8.6 ============ ============ ==============
Notes: (1) EBITDA (as defined in Note 2 below) before deducting share-based compensation expense. (2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of Net Income, Interest Expense, Amortization of Loan and Senior Notes Fees, Interest Income, Income Tax Expense, and Depreciation and Amortization Expense. EBITDA is not presented as an alternative measure of net income, operating income or cash flow from operations, as determined in accordance with accounting principles generally accepted in the United States of America. GCI's management uses EBITDA to evaluate the operating performance of its business, and as a measure of performance for incentive compensation purposes. GCI believes EBITDA is a measure used as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected EBITDA are used to estimate current or prospective enterprise value. EBITDA does not give effect to cash used for debt service requirements, and thus does not reflect funds available for investment or other discretionary uses. EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies.