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43
Core Diluted EPS from continuing operations
Our non-GAAP financial measure core diluted EPS from continuing operations is defined as diluted earnings per share from
continuing operations excluding Non-Core Adjustments, net of applicable taxes.
A reconciliation of core diluted EPS from continuing operations to diluted EPS 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
2014 2013 2012 $%$%
Diluted EPS from continuing operations . . . . . . . $ 5.19 $ 7.33 $ 4.99 $ (2.14) (29.2)% $ 2.34 46.9 %
Non-Core Adjustments, net of tax:(1)
Restructuring costs . . . . . . . . . . . . . . . . . . . 0.01 0.10 — (0.09) (90.0)% 0.10 NM*
Acquisition costs . . . . . . . . . . . . . . . . . . . . . — 0.17 0.06 (0.17) (100.0)% 0.11 183.3 %
Rights to receive cash issued in connection
with the acquisition of ecoATM . . . . . . . . . 0.53 0.25 — 0.28 112.0 % 0.25 NM*
Loss from equity method investments. . . . . 0.85 1.04 0.47 (0.19) (18.3)% 0.57 121.3 %
Sigue indemnification reserve releases . . . . — (0.05) — 0.05 (100.0)% (0.05) NM*
Gain on previously held equity interest on
ecoATM. . . . . . . . . . . . . . . . . . . . . . . . . . . . — (2.33) — 2.33 (100.0)% (2.33) NM*
Gain on formation of Redbox Instant by
Verizon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (0.37) — NM* 0.37 (100.0)%
Tax benefit from net operating loss
adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . (0.05) — — (0.05) NM* — NM*
Tax benefit of worthless stock deduction . . (0.10) (0.59) — 0.49 (83.1)% (0.59) NM*
Core diluted EPS from continuing operations . . . $ 6.43 $ 5.92 $ 5.15 $ 0.51 8.6 % $ 0.77 15.0 %
* Not Meaningful
(1) Non-Core Adjustments are presented after-tax using the applicable effective tax rate for the respective periods.
Free Cash Flow
Our non-GAAP financial measure free cash flow is defined as net cash provided by operating activities after capital
expenditures. We believe free cash flow is an important non-GAAP measure as it provides additional information to users of the
financial statements regarding our ability to service, incur or pay down indebtedness and repurchase our securities. A
reconciliation of free cash flow to net cash provided by operating activities, the most comparable GAAP financial measure, is
presented in the following table:
Years ended December 31, 2014 vs. 2013 2013 vs. 2012
Dollars in thousands 2014 2013 2012 $%$%
Net cash provided by operating activities . . . . . . $ 338,351 $ 327,834 $ 465,762 $ 10,517 3.2 % $ (137,928) (29.6)%
Purchase of property and equipment . . . . . . . . . . (97,924) (161,412) (209,910) 63,488 (39.3)% 48,498 (23.1)%
Free cash flow . . . . . . . . . . . . . . . . . . . . . . . $ 240,427 $ 166,422 $ 255,852 $ 74,005 44.5 % $ (89,430) (35.0)%
An analysis of our net cash from operating activities and used in investing and financing activities is provided below in the
Liquidity and Capital Resources section.