American Home Shield 2010 Annual Report Download - page 35

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
ServiceMaster
Clean
Other
Operations
and
Headquarters Total
Year Ended
Dec. 31, 2010
Operating income
(loss)(1) $ 112,312 $ (50,103) $ 199,750 $ 68,380 $ 55,450 $ (127,899)$257,890
Depreciation and
amortization
expense 66,069 11,524 67,761 42,259 7,106 13,430 208,149
EBITDA 178,381 (38,579) 267,511 110,639 62,556 (114,469) 466,039
Interest and net
investment
income(2) — — — 6,243 153 2,962 9,358
Residual value
guarantee
charge(3) 9,222 — — — 982 245 10,449
Non-cash goodwill
and trade name
impairment(4) — 46,884 — — — — 46,884
Adjusted EBITDA 187,603 8,305 267,511 116,882 63,691 (111,262) 532,730
Non-cash stock-
based
compensation
expense — — — — — 9,352 9,352
Non-cash credits
attributable to
purchase
accounting(5) (53) (621) (173) (146) — — (993)
Comparable
Operating
Performance $ 187,550 $ 7,684 $267,338 $ 116,736 $ 63,691 $ (101,910)$541,089
Memo: Items
included in
Comparable
Operating
Performance
Restructuring and
Merger related
charges (credits)
(6) $ 6,922 $ 778 $ 3,491 $ (127) $ 71 $ 1,091 $ 12,226
Management and
consulting fees(7) $ — $ — $ — $ — $ — $ 7,500 $ 7,500
Memo: Items
excluded from
Comparable
Operating
Performance
Comparable
Operating
Performance of
discontinued
operations(8) $ — $ — $ — $ — $ — $ (1,123)$ (1,123)
Year Ended
Dec. 31, 2009
Operating income
(loss)(1) $ 64,897 $ 11,906 $184,131 $ 70,253 $ 50,456 $ (124,486)$257,157