Redbox 2012 Annual Report Download - page 42

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Non-GAAP Financial Measures
Non-GAAP measures may be provided as a complement to results provided in accordance with United States
generally accepted accounting principles (“GAAP”).
We use the following non-GAAP financial measures to evaluate our financial results:
• Core adjusted EBITDA from continuing operations;
• Core diluted earnings per share (“EPS”) from continuing operations; and
• Free cash flow from continuing operations.
These measures, the definitions of which are presented below, are non-GAAP because they exclude certain
amounts which are included in the most directly comparable measure calculated and presented in accordance
with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for
our GAAP financial measures and may not be comparable with similarly titled measures of other companies.
Core and Non-Core Results
We distinguish our core activities, those associated with our primary operations, from non-core activities. Non-
core activities are primarily nonrecurring events or events we do not control. Our non-core adjustments include i)
deal fees primarily related to the NCR Asset Acquisition, ii) income or loss from equity method investments,
which represents our share of income or loss from entities we do not consolidate or control, and iii) a gain on the
grant of a license to use certain Redbox trademarks to Redbox Instant by Verizon (“Non-Core Adjustments”).
We believe investors should consider our core results because they are more indicative of our ongoing
performance and trends and are more consistent with how management evaluates our operational results and
trends.
Core Adjusted EBITDA from Continuing Operations
Our non-GAAP financial measure core adjusted EBITDA from continuing operations is defined as earnings
before depreciation, amortization and other; interest expense, net; income taxes; share-based payments expense;
and Non-Core Adjustments.
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