XM Radio 2012 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2012 XM Radio annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Adjusted EBITDA has certain limitations in that it does not take into account the impact to our statements of
comprehensive income of certain expenses, including share-based payment expense and certain purchase price
accounting for the Merger. We endeavor to compensate for the limitations of the Non-GAAP measure presented
by also providing the comparable GAAP measure with equal or greater prominence and descriptions of the
reconciling items, including quantifying such items, to derive the Non-GAAP measure. Investors that wish to
compare and evaluate our operating results after giving effect for these costs, should refer to net income as
disclosed in our consolidated statements of comprehensive income. Since adjusted EBITDA is a Non-GAAP
financial performance measure, our calculation of adjusted EBITDA may be susceptible to varying calculations;
may not be comparable to other similarly titled measures of other companies; and should not be considered in
isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with
GAAP. The reconciliation of net income to the adjusted EBITDA is calculated as follows (in thousands):
Unaudited
For the Years Ended December 31,
2012 2011 2010
Net income (GAAP): .......................................... $3,472,702 $ 426,961 $ 43,055
Add back items excluded from Adjusted EBITDA:
Purchase price accounting adjustments:
Revenues (see pages 22-24) ................................ 7,479 10,910 21,906
Operating expenses (see pages 22-24) ........................ (289,278) (277,258) (261,832)
Share-based payment expense, net of purchase price accounting
adjustments ............................................. 63,822 53,369 63,309
Depreciation and amortization (GAAP) ......................... 266,295 267,880 273,691
Restructuring, impairments and related costs (GAAP) .............. — — 63,800
Interest expense, net of amounts capitalized (GAAP) .............. 265,321 304,938 295,643
Loss on extinguishment of debt and credit facilities, net (GAAP) ..... 132,726 7,206 120,120
Interest and investment (income) loss (GAAP) ................... (716) (73,970) 5,375
Other loss (income) (GAAP) .................................. 226 (3,252) (3,399)
Income tax (benefit) expense (GAAP) .......................... (2,998,234) 14,234 4,620
Adjusted EBITDA ............................................ $ 920,343 $ 731,018 $ 626,288
21