American Home Shield 2008 Annual Report Download - page 37

Table of Contents
The following table presents reconciliations of operating income (loss), the most directly comparable financial measure under GAAP, to Adjusted
EBITDA and Comparable Operating Performance for the periods presented.
(in thousands)
TruGreen
LawnCare
TruGreen
LandCare Terminix
American
Home Shield
Other
Operations
and
Headquarters Total
Successor Year Ended Dec. 31, 2008
Operating income (loss)(1) $ 96,475 $ 1,385 $146,185 $ 23,806 $ (70,089)$197,762
Depreciation and amortization expense 87,957 11,165 60,199 46,922 22,961 229,204
EBITDA before adding back interest and net investment income 184,432 12,550 206,384 70,728 (47,128) 426,966
Interest and net investment income (loss)(2) — — — (8,201) (1,851) (10,052)
Non-cash trade name impairment — 1,400 16,500 — 42,200 60,100
Adjusted EBITDA 184,432 13,950 222,884 62,527 (6,779) 477,014
Non-cash option and restricted stock expense — — — — 7,032 7,032
Non-cash charges attributable to purchase accounting(3) 72 (650) (3,887) 25,940 378 21,853
Comparable Operating Performance $ 184,504 $ 13,300 $ 218,997 $ 88,467 $ 631 $505,899
Memo: Items included in Comparable Operating Performance
Restructuring charges and merger related expenses(4) $ 315 $ 337 $ 57 $ 729 $ 11,057 $ 12,495
Management fee(5) $ — $ — $ — $ — $ 2,000 $ 2,000
Memo: Items excluded from Comparable Operating Performance
Comparable Operating Performance of InStar $ — $ — $ — $ — $ (2,195)$ (2,195)
Comparable Operating Performance of all other discontinued operations — — — — 1,980 1,980
Comparable Operating Performance of discontinued operations $ — $ — $ — $ — $ (215)$ (215)
Successor Jul. 25, 2007 to Dec. 31, 2007
Operating income (loss)(1) $ 42,156 $ (6,351)$ 49,216 $ (20,764) $ (31,017)$ 33,240
Depreciation and amortization expense 88,628 5,928 28,543 22,038 10,504 155,641
EBITDA before adding back interest and net investment income 130,784 (423) 77,759 1,274 (20,513) 188,881
Interest and net investment income (loss) (2) — — — (6,749) 3,186 (3,563)
Adjusted EBITDA 130,784 (423) 77,759 (5,475) (17,327) 185,318
Non-cash option and restricted stock expense — — — — 300 300
Non-cash charges attributable to purchase accounting(3) (28,488) 1,906 (3,712) 47,003 2 16,711
Comparable Operating Performance $ 102,296 $ 1,483 $ 74,047 $ 41,528 $ (17,025)$202,329
Memo: Items included in Comparable Operating Performance
Restructuring charges and merger related expenses(4) $ 405 $ 7,920 $ 76 $ 5,874 $ 12,540 $ 26,815
Management fee(5) $ — $ — $ — $ — $ 875 $ 875
Memo: Items excluded from Comparable Operating Performance
Comparable Operating Performance of InStar $ — $ — $ — $ — $ (6,382)$ (6,382)
Comparable Operating Performance of all other discontinued operations — — — — (165) (165)
Comparable Operating Performance of discontinued operations $ — $ — $ — $ — $ (6,547)$ (6,547)
Predecessor Jan. 1, 2007 to Jul. 24, 2007
Operating income (loss)(1) $ 75,656 $ (2,206)$109,461 $ 35,582 $ (74,561)$143,932
Depreciation and amortization expense 8,552 3,171 10,596 3,687 6,408 32,414
EBITDA before adding back interest and net investment income 84,208 965 120,057 39,269 (68,153) 176,346
Interest and net investment income (2) — — — 24,163 4,461 28,624
Adjusted EBITDA 84,208 965 120,057 63,432 (63,692) 204,970
Non-cash option and restricted stock expense — — — — 3,415 3,415
Non-cash charges attributable to purchase accounting(3) — — — — — —
Comparable Operating Performance $ 84,208 $ 965 $ 120,057 $ 63,432 $ (60,277)$208,385
Memo: Items included in Comparable Operating Performance
Restructuring charges and merger related expenses(4) $ — $ — $ — $ — $ 58,350 $ 58,350
Management fee(5) $ — $ — $ — $ — $ — $ —
Memo: Items excluded from Comparable Operating Performance
Comparable Operating Performance of InStar $ — $ — $ — $ — $ (5,739)$ (5,739)