EX-99.2 3 dex992.htm ADJUSTED EARNINGS BEFORE INCOME TAXES, INTEREST, DEPRECIATION AND AMORTIZATION Adjusted earnings before income taxes, interest, depreciation and amortization

Exhibit 99.2

Adjusted earnings before income taxes, interest, depreciation and amortization

Earnings before income taxes, interest, depreciation and amortization

Earnings before income taxes, interest, depreciation and amortization (“EBITDA”) represent the sum of income before income taxes, interest, depreciation and amortization. We understand that certain industry analysts and investors generally consider EBITDA to be one measure of the liquidity of a company, and it is presented to assist analysts and investors in analyzing the ability of a company to generate cash, service debt and meet capital requirements. We believe increased EBITDA, and more particularly in the case of the Company, Adjusted EBITDA, is an indicator of improved ability to service existing debt and to satisfy capital requirements. Neither EBITDA nor Adjusted EBITDA, is a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income as a measure of operating performance or to cash liquidity. Because EBITDA is not a measure determined in accordance with accounting principles generally accepted in the United States of America and is thus susceptible to varying calculations, EBITDA, as presented, may not be comparable to other similarly titled measures of other corporations. Similarly, other presentations of adjusted EBITDA may not adjusted for similar items or compute corporate overhead in the same manner. Net cash provided by (used in) operations for the quarters ended September 30, 2006 and 2005, respectively, is shown below. SHL and HealthMont Facilities Adjusted EBITDA is the EBITDA for those facilities without any allocation of corporate overhead.

 

    

Three Months ended

September 30,

 
     2006     2005  

SHL Facilities Adjusted EBITDA

   $ 2,274     $ 3,505  

HealthMont Facilities Adjusted EBITDA

     840       283  

Corporate overhead costs

     (1,026 )     (1,075 )

Depreciation and amortization

     1,026       768  

Taxes and interest expense

     (594 )     (861 )

Other non-cash expenses and net changes in operating assets and liabilities

     (3,698 )     463  
                

Net cash provided by (used in) operations

   $ (1,178 )   $ 3,083