MoneyGram 2015 Annual Report Download - page 42

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Table of Contents
The following table is a reconciliation of our non-GAAP financial measures to the related GAAP financial measures for the years ended December 31:
(Amounts in millions)
2015
2014
2013
(Loss) income before income taxes
$ (29.1)
$ 72.6
$ 85.3
Interest expense
45.3
44.2
47.3
Depreciation and amortization
66.1
55.5
50.7
Amortization of agent signing bonuses
60.4
53.8
42.8
EBITDA
142.7
226.1
226.1
Significant items impacting EBITDA:
Stock-based and contingent performance compensation (1)
26.9
6.9
14.1
Compliance enhancement program
26.5
26.7
2.8
Reorganization and restructuring costs
20.0
30.5
3.2
Pension settlement charge (2)
13.8
—
—
Direct monitor costs
11.5
6.5
—
Legal and contingent matters (3)
1.7
16.4
2.5
Net securities gains
—
(45.4)
—
Losses related to agent closures
—
7.4
—
Capital transaction costs (4)
—
2.1
—
Debt extinguishment (5)
—
—
45.3
Severance and related costs
—
—
1.5
Adjusted EBITDA
$ 243.1
$ 277.2
$ 295.5
Adjusted EBITDA growth, as reported (12)%
Adjusted EBITDA growth, constant currency adjusted (10)%
Adjusted EBITDA
$ 243.1
$ 277.2
$ 295.5
Cash payments for interest
(42.1)
(41.1)
(43.9)
Cash taxes, net
(64.4)
(6.4)
(8.0)
Payments related to IRS tax matter
61.0
—
—
Cash payments for capital expenditures
(109.9)
(85.8)
(48.8)
Cash payments for agent signing bonuses
(87.3)
(93.9)
(45.0)
Adjusted Free Cash Flow
$ 0.4
$ 50.0
$ 149.8
(1) Stock-based compensation, contingent performance awards payable after three years and certain incentive compensation.
(2) Non-cash charge resulting from the partial buyout of the defined benefit pension plan.
(3) Fees and expenses related to certain legal and contingent matters.
(4) Professional and legal fees incurred for the April 2, 2014 equity transactions.
(5) Debt extinguishment costs in connection with the 2013 Credit Agreement and Note Repurchase.
2015 Compared to 2014
The Company generated EBITDA of $142.7 million and $226.1 million for the years ended December 31, 2015 and 2014 , respectively. The decrease of $83.4
million was primarily due to the decrease in revenue mostly as a result of the strengthening of the U.S. dollar and an increase in compensation and benefits expense
of $34.1 million as a result of an increase in stock-based and contingent performance compensation and a $13.8 million pension settlement charge, which are listed
as EBITDA adjustments in the table above. In addition, we did not have net securities gains in 2015 as compared to $45.4 million in 2014.
In 2015 , Adjusted EBITDA decreased $34.1 million , or 12 percent , primarily due to the same factors impacting EBITDA offset by changes in the EBITDA
adjustments previously discussed.
For 2015 , Adjusted Free Cash Flow decreased $49.6 million or 99 percent . The decrease was a result of decline in Adjusted EBITDA and increased capital
expenditures, partially offset by decreased cash payments for agent signing bonuses.
41