Cash America 2014 Annual Report Download - page 66

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51
Adjusted EBITDA
The table below shows adjusted EBITDA from continuing operations, a non-GAAP measure that the
Company defines as earnings from continuing operations excluding depreciation, amortization, interest, foreign
currency transaction gains or losses, loss on early 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 from continuing operations 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 from continuing operations is also useful to investors to help assess the Company’s
estimated enterprise value. In addition, management believes that the adjustments shown below 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 from continuing operations
as presented below may differ from the computation of similarly-titled measures provided by other companies. The
following table provides a reconciliation between net (loss) income from continuing operations, which is the nearest
GAAP measure presented in the Company’s financial statements, to Adjusted EBITDA from continuing operations
(dollars in thousands):
Year Ended December 31,
2014 2013 2012
Net (loss) income from continuing operations $
(10,387
)$59,182 $40,901
Net loss (income) attributable to the noncontrolling interest in continuing
operations
—
308
(5,806
)
Provision (benefit) for income taxes
(a)
2,041
(15,505
)
39,114
Equity in loss of unconsolidated subsidiary
—
136
295
Loss on early
extinguishment of debt
22,553
607
—
Foreign currency transaction gain
(113
)
(17
)
(29
)
Interest expense, net
18,873
16,457
7,991
Depreciation and amortization expenses 60,942 55,949 49,592
Adjustments
2014 Reorganization
7,538
—
—
Loss on Divestitures
5,176
—
—
Texas Consumer Loan Store Closures
—
1,373
—
Regulatory Penalty
—
2,500
—
2013 Litigation Settlement
635
18,000
—
Charges related to Mexico Reorganization
—
—
28,873
Charges related to Ohio Adjustment and Ohio Reimbursement
Program
—
(5,000)13,400
Adjusted EBITDA from continuing operations $
107,258
$133,990 $
174,331
Adjusted EBITDA margin from continuing operations calculated as
follows:
Total revenue
$
1,094,696
$
1,030,486
$
1,139,443
Adjusted EBITDA
107,258
133,990
174,331
Adjusted EBITDA as a percentage of total revenue
9.8
%
13.0
%
15.3
%
(a) 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.”