Cash America 2012 Annual Report Download - page 86

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Adjusted EBITDA
The table below shows adjusted EBITDA, a non-GAAP measure that the Company defines as earnings
excluding depreciation, amortization, interest, foreign currency transaction gains or losses, equity in earnings or loss of
unconsolidated subsidiary, taxes and including the net income or loss attributable to noncontrolling interests.
Management believes adjusted EBITDA is used by investors to analyze operating performance and evaluate the
Company’s ability to incur and service debt and its capacity for making capital expenditures. Adjusted EBITDA is also
useful to investors to help assess the Company’s liquidity and estimated enterprise value. In addition, management
believes that the adjustments shown below, especially the adjustments for charges related to events that occurred during
2012, such as the Mexico Reorganization, the withdrawal of the proposed Enova IPO, and the charges related to the
Ohio Reimbursements, are useful to investors in order to allow them to compare the Company’s financial results for the
current year with the previous years shown. The computation of adjusted EBITDA as presented below may differ from
the computation of similarly-titled measures provided by other companies (dollars in thousands):
Year Ended December 31,
2012 2011 2010
N
et income attributable to Cash America International, Inc. $ 107,470 $ 135,963 $ 115,538
Adjustments:
Charges related to withdrawn proposed Enova IPO(a) 3,879 - -
Charges related to Mexico Reorganization(b) 28,873 - -
Charges related to Ohio Reimbursements(c) 13,400 - -
Depreciation and amortization expenses 62,864 (d) 54,149 43,923
Interest expense, net 28,987 25,447 22,020
Foreign currency transaction loss 313 1,265 463
Equity in loss of unconsolidated subsidiary 295 104 136
Provision for income taxes 77,495 (e) 82,360 69,269
Net loss attributable to the noncontrolling interest (5,806)(f) (797) (294)
Adjusted EBITDA $ 317,770 $ 298,491 $ 251,055
Adjusted EBITDA margin calculated as follows:
Total revenue $ 1,800,430 $ 1,583,064 $ 1,337,050
Adjusted EBITDA 317,770 298,491 251,055
Adjusted EBITDA as a percentage of total revenue 17.6% 18.9% 18.8%
(a) Represents charges directly related to the proposed Enova IPO that was withdrawn in July 2012, before tax benefit of $1.5 million.
(b) Represents charges related to the Mexico Reorganization, before tax benefit of $1.2 million and noncontrolling interest of $2.3 million. Includes
$12.6 million and $7.2 million of depreciation and amortization expenses and charges for the recognition of a deferred tax asset valuation
allowance, respectively, as noted in (d) and (e) below.
(c) Represents charges related to the Ohio Reimbursements, before tax benefit of $5.0 million.
(d) Excludes $12.6 million of depreciation and amortization expenses, which are included in “Charges related to the Mexico Reorganization” in the
table above.
(e) Excludes a $7.2 million charge for the recognition of a deferred tax asset valuation allowance, which is included in “Charges related to the
Mexico Reorganization” in the table above. Includes an income tax benefit related to the Mexico Reorganization of $1.2 million.
(f) Includes $2.3 million of noncontrolling interests related to the Mexico Reorganization.