Cincinnati Bell 2011 Annual Report Download - page 7

Use of Non-GAAP Financial Measures
This report contains information about adjusted earnings
before interest, taxes, depreciation and amortization
(Adjusted EBITDA) and Adjusted EBITDA margin.
These are non-GAAP financial measures used by
Cincinnati Bell management when evaluating results of
operations. Management believes these measures also
provide users of the financial statements with additional
and useful comparisons of current results of operations
with past and future periods. Non-GAAP financial
measures should not be construed as being more
important than comparable GAAP measures. Detailed
reconciliations of Adjusted EBITDA to comparable
GAAP financial measures are available at http://
investor.cincinnatibell.com (see Fourth Quarter 2011
Earnings Release Tables).
1Adjusted EBITDA provides a useful measure of operational
performance. The Company defines Adjusted EBITDA as
GAAP operating income plus depreciation, amortization,
restructuring charges, asset impairments, components of
pension and other retirement plan costs related to interest
costs, asset returns, and amortization of actuarial gains and
losses, and other special items. Adjusted EBITDA should
not be considered as an alternative to comparable GAAP
measures of profitability and may not be comparable with
the measure as defined by other companies.
2Adjusted EBITDA margin provides a useful measure of
operational performance. The Company defines Adjusted
EBITDA margin as Adjusted EBITDA divided by revenue.
Adjusted EBITDA margin should not be considered as an
alternative to comparable GAAP measures of profitability
and may not be comparable with the measure as defined by
other companies.
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