EX-99.2 3 exhibit99_2.htm EXHIBIT 99.2 Exhibit 99.2
EXHIBIT 99.2
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 
 
 
     
 



Talk America Holdings, Inc.

2nd Quarter 2004
Non-GAAP Reconciliations

 
     
 
Talk America Holdings, Inc.
Second Quarter 2004
Non-GAAP Reconciliations

Non-GAAP Financial Measures:

The Non-GAAP financial measures that we use in this presentation are listed below. We have included, in the schedules accompanying this presentation, reconciliations of all Non-GAAP financial measures in the presentation to the most directly comparable GAAP measures in our financial statements.

Adjusted Gross Margin is defined as revenues less network and line costs.

Free Cash Flow is defined as cash from operating activities, less capital expenditures and capitalized software development costs.

Net Debt (Cash) is defined as total long-term debt and short-term debt, less cash and cash equivalents.

 
     
 
 
Talk America Holdings, Inc.
Second Quarter 2004
Non-GAAP Reconciliations

____________________________________________________________________________________

Adjusted Gross Margin
($ in thousands)

 
  
2Q04
   
 
  
Bundled
LD Only
Total
   
Revenues - Reported
  
$
99,071
 
$
15,810
 
$
114,881
 
Network & Line Cost - Reported
    
49,761
   
5,825
   
55,586
 
   
 
 
 
Gross Margin - Adjusted
  
$
49,310
 
$
9,985
 
$
59,295
 
   
 
 
 
Gross Margin - Adjusted (%)
    
49.8
%
  
63.2
%
  
51.6
%
 
    
 
    
 
    
 
  
     
 
  
2Q03 
   
 
    
Bundled 

 

 
LD Only

 

 
Total
  
   
 
 
 
Revenues - Reported
  
$
67,675
 
$
26,073
 
$
93,748
 
Network & Line Cost - Reported
    
32,041
   
11,227
   
43,268
 
   
 
 
 
Gross Margin - Adjusted
  
$
35,634
 
$
14,846
 
$
50,480
 
   
 
 
 
Gross Margin - Adjusted (%)
    
52.7
%
  
56.9
%
  
53.8
%

 
     
 
 
Talk America Holdings, Inc.
Second Quarter 2004
Non-GAAP Reconciliations

____________________________________________________________________________________

Net Debt
($ in thousands)

 
  
2Q04
4Q03
2Q03
   
Total Debt
  
$
20,539
 
$
48,597
 
$
65,608
 
Cash
    
(30,427
)
  
(35,242
)
  
(25,858
)
   
 
 
 
Net Debt (Cash)
  
$
(9,888
)
$
13,355
 
$
39,750
 
   
 
 
 

 
     
 
 
Talk America Holdings, Inc.
Second Quarter 2004
Non-GAAP Reconciliations

____________________________________________________________________________________

Free Cash Flow
($ in thousands)

 
  
2Q04
2Q03
   
Cash from Operations
  
$
18,923
 
$
20,475
 
Less: Capital Expenditures
    
(2,119
)
  
(1,526
)
Less: Capitalized Software
    
(976
)
  
(725
)
   
 
 
Free Cash Flow
  
$
15,828
 
$
18,224