Cash America 2013 Annual Report Download - page 88

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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, loss on extinguishment of
debt, 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 estimated enterprise value. In addition, management
believes that the adjustments shown below, especially the adjustments for the Texas Consumer Loan Store Closures, the
Regulatory Penalty, the 2013 Litigation Settlement, the withdrawn proposed Enova IPO, the Mexico Reorganization and
the Ohio Adjustment and Ohio Reimbursement Program, are useful to investors in order to allow them to compare the
Company’s financial results during the periods shown without the effect of each of these income and expense items. 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,
2013 2012 2011
N
et income attributable to Cash America International, Inc. $ 142,528 $ 107,470 $ 135,963
Adjustments:
Texas Consumer Loan Store Closures(a) 1,373
Regulatory Penalty(b) 5,000
2013 Litigation Settlement(c) 18,000
Charges related to withdrawn proposed Enova IPO(d) - 3,879 -
Charges related to Mexico Reorganization(e) - 28,873 -
Charges related to Ohio Adjustment and
Ohio Reimbursement Program(f) (5,000) 13,400 -
Depreciation and amortization expenses(g) 73,092 62,864 54,149
Interest expense, net 36,245 28,987 25,447
Foreign currency transaction loss 1,205 313 1,265
Loss on Debt Extinguishment 607 - -
Equity in loss of unconsolidated subsidiary 136 295 104
Provision for income taxes(h) 30,754 77,495 82,360
Net income (loss) attributable to the noncontrolling interest(i) 308 (5,806) (797)
Adjusted EBITDA $ 304,248 $ 317,770 $ 298,491
Adjusted EBITDA margin calculated as follows:
Total revenue $ 1,797,226 $ 1,800,430 $ 1,583,064
Adjusted EBITDA 304,248 317,770 298,491
Adjusted EBITDA as a percentage of total revenue 16.9% 17.6% 18.9%
(a) Represents charges related to the Texas Consumer Loan Store Closures of $1.4 million, before tax benefit of $0.5 million.
(b) Represents charges for the Regulatory Penalty, which is nondeductible for tax purposes.
(c) Represents charges related to the 2013 Litigation Settlement of $18.0 million, before tax benefit of $6.7 million.
(d) Represents charges directly related to the withdrawn Enova IPO, before tax benefit of $1.5 million.
(e) Represents charges related to the Mexico Reorganization, before a 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 (g) and (h) below.
(f) For the year ended December 31, 2013, represents the Ohio Adjustment of $5.0 million, before tax provision of $1.8 million. For the year ended
December 31, 2012, represents charges related to the Ohio Reimbursement Program, before tax benefit of $5.0 million.
(g) Excludes $0.2 million and $12.6 million of depreciation and amortization expenses for the years ended December 31, 2013 and 2012,
respectively, which are included in “Texas Consumer Loan Store Closures” and “Charges related to the Mexico Reorganization” for the
respective periods.
(h) For the year ended December 31, 2013, includes an income tax benefit of $33.2 million related to the Creazione Deduction and tax effects for
adjustments noted in (a), (c) and (f) above. For the year ended December 31, 2012, 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 and includes an
income tax benefit related to the Mexico Reorganization of $1.2 million.
(i) For the year ended December 31, 2012, includes $2.3 million of noncontrolling interests related to the Mexico Reorganization.