Shutterfly 2010 Annual Report Download - page 48

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The following is a reconciliation of adjusted EBITDA and free cash flow to the most comparable GAAP measure, Net Income for the years
ended December 31, 2009, 2008 and 2007 (in thousands):
Reconciliation of Non
-
GAAP Adjusted EBITDA
Year Ended December 31,
2009
2008
2007
Net Income
$
5,853
$
3,660
$
9,578
Add back:
Interest expense
157
273
179
Interest and other income, net
(814
)
(2,898
)
(5,515
)
Tax provision
3,514
1,571
6,134
Depreciation and amortization
27,194
26,038
17,796
Stock
-
based compensation expense
14,273
9,750
4,686
Non
-
GAAP Adjusted EBITDA
$
50,177
$
38,394
$
32,858
Reconciliation of Non
-
GAAP Adjusted EBITDA to Free Cash Flow
Year Ended December 31,
2009
2008
2007
Non
-
GAAP Adjusted EBITDA
$
50,177
$
38,394
$
32,858
Less: Purchases of property and equipment, including accrual amounts
(13,764
)
(18,220
)
(31,881
)
Less: Capitalized technology & development costs
(3,891
)
(4,527
)
(3,112
)
Free cash flow
$
32,522
$
15,647
$
(2,135
)
46