Enom 2014 Annual Report Download - page 36

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(7) Basic income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of common
shares outstanding during the period. For the years ended December 31, 2011 and 2010, net loss attributable to common stockholders is increased for cumulative
preferred stock dividends earned during these periods. For the periods where we presented losses, all potentially dilutive common shares comprised of stock
options, restricted stock units, warrants and convertible preferred stock are antidilutive. Restricted stock units are considered outstanding common shares and
included in the computation of basic earnings per share as of the date that all necessary conditions of vesting are satisfied. Restricted stock units are excluded from
the diluted earnings per share calculation when their impact is antidilutive. Prior to satisfaction of all conditions of vesting, unvested restricted stock units are
considered contingently issuable shares and are excluded from weighted average common shares outstanding.
December 31,
2014
2013 2012 2011 2010
(In thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents and marketable
securities .............................................................. $ 47,820 $ 153,511 $ 102,933 $ 86,035 $ 32,338
Working capital .................................................... $ 37,215 $ 91,048 $ 67,215 $ 44,617 $ (4,226)
Total assets ........................................................... $ 149,555 $ 777,088 $ 637,997 $ 590,103 $ 488,467
Long-term debt ..................................................... $ - $ 96,250 $ - $ - $ -
Capital lease obligations, long term ..................... $ - $ 61 $ 793 $ - $ -
Convertible preferred stock .................................. $ - $ - $ - $ - $ 373,754
Total stockholders' equity (deficit) ....................... $ 114,842 $ 496,005 $ 472,191 $ 440,266 $ (15,416)
Non-GAAP Financial Measures
To provide investors and others with additional information regarding our financial results, we have disclosed in the table below
adjusted earnings before interest, taxes, depreciation and amortization expense, or Adjusted EBITDA. We have provided a
reconciliation of this non-GAAP financial measure to net income, the most directly comparable GAAP financial measure. Our
Adjusted EBITDA financial measure differs from GAAP net income in that it excludes net income (loss) from discontinued
operations, as well as certain expenses such as income tax expense (benefit), interest and other income (expense), net, depreciation
and amortization, stock-based compensation, goodwill impairment charges, and any acquisition and realignment costs. Acquisition
and realignment costs include such items, when applicable, as (1) non-cash GAAP purchase accounting adjustments for certain
deferred revenue costs, (2) legal, accounting and other professional fees directly attributable to acquisition or corporate realignment
activities, and (3) employee severance and other payments attributable to acquisition or corporate realignment activities. Adjusted
EBITDA is frequently used by securities analysts, investors and others as a common financial measure of our operating performance.
Adjusted EBITDA is one of the primary measures used by our management and board of directors to understand and evaluate
our financial performance and operating trends, including period-to-period comparisons, to prepare and approve our annual budget
and to develop short and long term operational plans. We also frequently use Adjusted EBITDA in our discussions with investors,
commercial bankers and other users of our financial statements.
Management believes that Adjusted EBITDA reflects our ongoing business in a manner that allows for meaningful period-to-
period comparisons and analysis of trends. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA can
provide a useful measure for period-to-period comparisons of our business’ underlying recurring revenue and operating costs which is
focused more closely on the current costs necessary to utilize previously acquired long-lived assets. In addition, we believe that it can
be useful to exclude certain non-cash charges because the amount of such expenses is the result of long-term investment decisions in
previous periods rather than day-to-day operating decisions. For example, due to the long-lived nature of our media content, revenue
generated from our content assets in a given period bears little relationship to the amount of our investment in media content in that
same period. Accordingly, we believe that content acquisition costs represent a discretionary long-term capital investment decision
undertaken by management at a point in time. This investment decision is clearly distinguishable from other ongoing business
activities, and its discretionary nature and long-term impact differentiate it from specific period transactions, decisions regarding day-
to-day operations, and activities that would have an immediate impact on operating or financial performance if materially changed,
deferred or terminated.
Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and
evaluating our consolidated revenue and operating results in the same manner as our management and in comparing financial results
across accounting periods and to those of our peer companies. However, the use of non-GAAP financial measures has certain
limitations because they do not reflect all items of income and expense that affect our operations. We compensate for these limitations
by reconciling non-GAAP financial measures to the most comparable GAAP financial measures. Non-GAAP financial measures
should be considered in addition to, not as a substitute for, measures prepared in accordance with GAAP. Further, our non-GAAP
measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore