MoneyGram 2015 Annual Report Download - page 41

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Table of Contents
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA and Adjusted Free Cash Flow
We believe that EBITDA (earnings before interest, taxes, depreciation and amortization, including agent signing bonus amortization), Adjusted EBITDA
(EBITDA adjusted for certain significant items), Adjusted Free Cash Flow (Adjusted EBITDA less cash interest, cash taxes, cash payments for capital
expenditures and cash payments for agent signing bonuses) and constant currency measures (which assume that amounts denominated in foreign currencies are
translated to the U.S. dollar at rates consistent with those in the prior year) provide useful information to investors because they are indicators of the strength and
performance of our ongoing business operations. These calculations are commonly used as a basis for investors, analysts and other interested parties to evaluate
and compare the operating performance and value of companies within our industry. In addition, our debt agreements require compliance with financial measures
similar to Adjusted EBITDA. EBITDA, Adjusted EBITDA, Adjusted Free Cash Flow and constant currency are financial and performance measures used by
management in reviewing results of operations, forecasting, allocating resources and establishing employee incentive programs. We also present Adjusted
EBITDA, constant currency adjusted, which provides information to investors regarding MoneyGram's performance without the effect of foreign currency
exchange rate fluctuations year over year.
Although we believe that EBITDA, Adjusted EBITDA and Adjusted Free Cash Flow enhance investors' understanding of our business and performance, these
non-GAAP financial measures should not be considered in isolation or as substitutes for the accompanying GAAP financial measures. These metrics are not
necessarily comparable with similarly named metrics of other companies.
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