American Home Shield 2009 Annual Report Download - page 44

Table of Contents
December 31, 2007 and the Predecessor period from January 1, 2007 to July 24, 2007 are as follows:
Successor Predecessor
Year Ended Dec. 31,
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
Jul. 24, 2007
(In thousands) 2009 2008
Operating loss $ (1,811) $ (215) $ (8,833) $ (7,617)
Interest expense — (73) (34) (38)
Impairment charge — (6,317) (31,006) —
Loss from discontinued operations, before incomes taxes (1,811) (6,605) (39,873) (7,655)
Benefit from income taxes (699) (2,618) (12,665) (3,067)
Loss on sale, net of tax — (539) — —
Loss from discontinued operations, net of income taxes $ (1,112) $ (4,526) $ (27,208) $ (4,588)
Operating loss $ (1,811) $ (215) $ (8,833) $ (7,617)
Depreciation and amortization expense — — 2,286 2,204
EBITDA (1,811) (215) (6,547) (5,413)
Interest and net investment income — — — —
Adjusted EBITDA (1,811) (215) (6,547) (5,413)
Non-cash option and restricted stock expense — — — —
Non-cash charges attributable to purchase accounting — — — —
Comparable Operating Performance $ (1,811) $ (215) $ (6,547) $ (5,413)
In the fourth quarter of 2007, management of the Company concluded that InStar did not fit within the long-term strategic plans of the Company and
committed to a plan to sell the business. InStar provided disaster response and reconstruction services to primarily commercial customers and was previously
reported as part of the Company's Other Operations and Headquarters segment. As a result of the decision to sell this business, an $18.1 million impairment
charge ($12.3 million, net of tax) was recorded in "loss from discontinued operations, net of income taxes" in the fourth quarter of 2007 to reduce the carrying
value of InStar's long-lived assets to their fair value less cost to sell. This charge was in addition to a $12.9 million ($8.8 million, net of tax) goodwill
impairment charge.
During the third quarter of 2008, the Company completed the sale of InStar for $22.0 million, with the payment of $3.0 million of that amount deferred
until November 2011. During the second quarter of 2008, the Company recorded a pre-tax impairment charge of $6.3 million as a result of a change in our
fair value estimate of InStar's net assets based on changing market conditions and the ongoing sales process. Upon the sale of InStar the Company recorded a
loss on sale, net of tax, of $0.5 million.
Year ended December 31, 2008 compared with the Successor period from July 25, 2007 to December 31, 2007 and the Predecessor period from
January 1, 2007 to July 24, 2007
The Company reported revenue of $3,311.4 million for the year ended December 31, 2008, a $45.3 million or 1.3 percent decrease compared to the
combined Successor period from July 25, 2007 to December 31, 2007 and Predecessor period from January 1, 2007 to July 24, 2007. Revenue for the year
ended December 31, 2008 and the Successor period from July 25, 2007 to December 31, 2007 was reduced by $34.1 million (non-cash) and $60.6 million
(non-cash), respectively, resulting from recording deferred revenue at its fair value in connection with purchase
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