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42
Core Adjusted EBITDA from continuing operations
Our non-GAAP financial measure core adjusted EBITDA from continuing operations is defined as earnings from continuing
operations before depreciation, amortization and other; interest expense, net; income taxes; share-based payments expense; and
Non-Core Adjustments.
A reconciliation of core adjusted EBITDA from continuing operations to net income from continuing operations, the most
comparable GAAP financial measure, is presented in the following table:
Year Ended December 31, 2014 vs. 2013 2013 vs. 2012
Dollars in thousands 2014 2013 2012 $%$%
Net income from continuing operations. . . . . . . . $ 107,386 $ 208,091 $ 160,452 $ (100,705) (48.4)% $ 47,639 29.7 %
Depreciation, amortization and other . . . . . 209,870 203,094 184,405 6,776 3.3 % 18,689 10.1 %
Interest expense, net . . . . . . . . . . . . . . . . . . 47,636 32,801 15,648 14,835 45.2 % 17,153 109.6 %
Income taxes expense . . . . . . . . . . . . . . . . . 59,748 34,477 97,941 25,271 73.3 % (63,464) (64.8)%
Share-based payments expense(1) . . . . . . . . 13,384 16,831 19,362 (3,447) (20.5)% (2,531) (13.1)%
Adjusted EBITDA from continuing
operations . . . . . . . . . . . . . . . . . . . . . . 438,024 495,294 477,808 (57,270) (11.6)% 17,486 3.7 %
Non-Core Adjustments:
Restructuring costs . . . . . . . . . . . . . . . . . . . 469 4,495 — (4,026) (89.6)% 4,495 NM*
Acquisition costs . . . . . . . . . . . . . . . . . . . . . — 5,669 3,235 (5,669) (100.0)% 2,434 75.2 %
Rights to receive cash issued in connection
with the acquisition of ecoATM . . . . . . . . . 13,270 8,664 — 4,606 15.8 % 8,664 NM*
Loss from equity method investments, net .28,734 48,448 24,684 (19,714) (14.0)% 23,764 96.3 %
Sigue indemnification reserve releases . . . . — (2,542) — 2,542 (100.0)% (2,542) NM*
Gain on previously held equity interest in
ecoATM. . . . . . . . . . . . . . . . . . . . . . . . . . . . — (68,376) — 68,376 (100.0)% (68,376) NM*
Gain on formation of Redbox Instant by
Verizon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (19,500) — NM* 19,500 (100.0)%
Core adjusted EBITDA from
continuing operations . . . . . . . . . . . . . $ 480,497 $ 491,652 $ 486,227 $ (11,155) (2.3)% $ 5,425 1.1 %
* Not Meaningful
(1) Includes both non-cash share-based compensation for executives, non-employee directors and employees as well as
share-based payments for content arrangements.
Comparing 2014 to 2013
The decrease in our core adjusted EBITDA from continuing operations was primarily due to:
• Lower segment operating income in our Redbox segment, and
• Higher segment operating loss in our New Ventures segment, partially offset by
• Higher segment operating income in our Coinstar segment.
The other significant components of core adjusted EBITDA from continuing operations have been discussed previously in the
Results of Operations section above.
Comparing 2013 to 2012
The increase in our core adjusted EBITDA from continuing operations was primarily due to:
• Higher operating income in our Redbox and Coinstar segments, partially offset by
• Higher operating loss in our New Ventures segment.
The other components of core adjusted EBITDA from continuing operations have been discussed previously in the Results of
Operations section above.