Blockbuster Video Investor Presentation Deck
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure within the meaning of Regulation G of the Securities and Exchange Commission and is not a
measure of operating performance calculated in accordance with GAAP. As a result, adjusted EBITDA should not be considered in isolation of, or as a
substitute for, net income (loss) as an indicator of operating performance. Adjusted EBITDA, as the Company calculates it, may not be comparable to
similarly titled measures employed by other companies.
Management believes that, because the items listed under EBITDA below are non-recurring in nature, adjusting the Company's financial results to
exclude these amounts provides investors with a clearer perspective of the current underlying operating performance of the Company, a clearer
comparison to current period results and greater transparency regarding supplemental information used by management in its financial and operational
decision-making.
In addition, management believes that adjusting the Company's financial results to exclude income (loss) from discontinued operations, net of tax, taxes,
interest and other income, impairment of long-lived assets and depreciation and amortization of intangibles also provides investors with a clearer
perspective of the current underlying operating performance of the Company and a clearer comparison to current period results.
Management uses adjusted EBITDA as an internal measure of business operating performance, to establish operational goals, to allocate resources
and to analyze trends. Net income (loss) is the financial measure calculated and presented in accordance with GAAP that is most comparable to
adjusted EBITDA.
BLOCKBUSTER
city
Reconciliation of adjusted EBITDA:
Net Income (loss)
Adjustments to reconcile net income (loss) to adjusted EBITDA:
Discontinued operations, net of tax
Taxes
Interest and other income, net
Impairment of long-lived assets
Depreciation and Amortization of intangibles
EBITDA
Termination of Brazilian franchise agreement
Lease termination costs incurred for store closures
Severance costs
Stock compensation
Adjusted EBITDA
Thirteen Weeks
Ended April 6, 2008
(Estimated)
30.0
8.0
25.0
41.0
104.0
1.0
1.0
4.0
110.0
Thirteen Weeks Ended
April 1, 2007
(As Restated)
(49.0)
(2.6)
8.5
23.7
49.8
30.4
(20.0)
3.0
1.8
8.1
23.3
BLOCKBUSTER
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