American Tower Corporation Reports Third Quarter 2008 Financial Results.THIRD QUARTER 2008 HIGHLIGHTS * Rental and management revenue increased 10.0% to $394.4 million * Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased 11.6% to $277.5 million * Cash provided by operating activities was $227.2 million BOSTON Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. -- American Tower Corporation Formed in 1995, American Tower Corporation is a publicly held company (NYSE: AMT) that is a leading owner and operator of wireless and broadcast communications sites in North America. Today American Tower owns and operates over 30,000 sites in the United States, Mexico and Brazil. (NYSE NYSE See: New York Stock Exchange : AMT See vPro. ) today reported financial results for the third quarter ended September September: see month. 30, 2008. Jim Taiclet, American Tower's Chief Executive Officer stated, "Our company's strong growth in tower revenue and Adjusted EBITDA, as demonstrated by our third quarter results, expectations for the remainder of 2008 and outlook for 2009, reflects our continued confidence in the stability and growth prospects of our business." "For the full year 2008, we anticipate tower revenue and Adjusted EBITDA to increase approximately 10% and 14%, respectively, excluding the impacts of foreign currency fluctuations and straight-line revenue and expense recognition. We also expect strong core growth from our operations in 2009, based on our customers' continued investment in their wireless networks. Accordingly, our outlook for 2009 represents an increase in tower revenue and Adjusted EBITDA of approximately 10% and 11%, respectively, excluding the impacts of foreign currency fluctuations, straight-line revenue and expense recognition and any potential benefits from a widespread WiMAX network build out." "Moreover, even in the face of uncertain credit markets, we have maintained our solid financial position, one which differentiates our company from industry peers. Our significant free cash flow generation, relatively low financial leverage and absence of near term refinancing Refinancing An extension and/or increase in amount of existing debt. requirements make American Tower the most resilient See resiliency. and financially flexible company in the tower industry. Our solid financial position, which includes over $600 million of liquidity, and very stable contractual revenue base provide a foundation for us to pursue exciting growth opportunities." Third Quarter 2008 Operating Highlights American Tower generated the following operating results for the quarter ended September 30, 2008 (unless otherwise indicated, all comparative information is presented against the quarter ended September 30, 2007): Total revenue increased 11.3% to $409.3 million and rental and management segment revenue increased 10.0% to $394.4 million. Rental and management segment revenue growth of 10.0% includes approximately 1.1% growth from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. foreign currency fluctuations and a negative impact to growth of approximately 1.5% from straight-line revenue recognition. Rental and Management Segment Gross Margin increased 9.3% to $304.3 million, and network development services segment revenue and Gross Margin increased to $14.9 million and $4.7 million, respectively. For the quarter ended September 30, 2007, rental and management segment revenue and Gross Margin included previously disclosed positive one-time items of approximately $4.3 million and $7.2 million, respectively. Total selling, general, administrative and development expense was $44.7 million. The Company's selling, general, administrative and development expense for the quarter includes $13.2 million of stock-based compensation expense and $2.1 million of international business development expense. Adjusted EBITDA increased 11.6% to $277.5 million and Adjusted EBITDA Margin was 68%. Adjusted EBITDA growth of 11.6% includes approximately 0.9% growth from favorable foreign currency fluctuations and a negative impact to growth of approximately 2.5% from straight-line revenue and expense recognition. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $154.4 million and net income was $60.5 million, which includes approximately $30.4 million pre-tax and $19.1 million, net of tax, respectively, related to the Company's previously disclosed change in useful life estimates for its towers and certain related intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . Net income per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share was $0.15. Free Cash Flow was $159.3 million, consisting of $227.2 million of cash provided by operating activities, less $67.9 million of payments for purchase of property and equipment and construction activities, including $57.4 million of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. on the construction of new towers, the installation of in-building systems and ground lease purchases, as well as capital for the redevelopment of existing sites to meet additional tenant demand. During the quarter ended September 30, 2008, the Company completed the construction of 223 sites, which includes the completion of the Company's first 52 towers in India. In addition, the Company spent approximately $11.4 million on ground lease purchases, which is included in payments for purchase of property and equipment and construction activities. Please refer to Non-GAAP and Defined Financial Measures on page 4 for definitions of Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow. For additional financial information, including reconciliations to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures, please refer to the supplemental schedules of selected financial information on pages 9 through 13. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program During the quarter ended September 30, 2008, the Company repurchased a total of approximately 8.3 million shares of its Class A common stock for approximately $331.8 million. As of October 24, 2008 the Company had repurchased approximately $484.0 million under its $1.5 billion share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program announced in March 2008, which includes the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of approximately 1.0 million shares of its Class A common stock for approximately $30.1 million, during the period October 1, 2008 to October 24, 2008. Pursuant to its publicly announced stock repurchase programs, the Company has repurchased an aggregate of 69.3 million shares of its Class A common stock for approximately $2.7 billion since November 2005. The Company remains committed to its stock repurchase program, but expects that it may adjust the pacing of the program in response to general market conditions and other relevant factors. Full Year 2008 and 2009 Outlook The following estimates are based on a number of assumptions that management believes to be reasonable, and reflect the Company's expectations as of November 3, 2008. Actual results may differ materially from these estimates as a result of various factors, and we refer you to the cautionary language regarding "forward-looking" statements included in this press release when considering this information. In particular, we note that if the recent volatility in foreign currency markets continues, specifically with respect to the Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum Peso and Brazilian Real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. , actual results for 2009 could differ materially from the estimates set forth below. Our operations in Mexico and Brazil comprised approximately 10% and 5%, respectively, of our rental and management segment revenues for the three months ended September 30, 2008. The Company's estimates, for the full year 2009 assume that the Mexican Peso and Brazilian Real will strengthen against the US Dollar over the course of 2009 (specific assumptions are set forth in footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." 7 to the outlook table below). If the average exchange rates for the full year 2009 varied by 10% from these assumptions, then the Company estimates that actual rental and management segment revenue and Adjusted EBITDA for the full year 2009 would vary either positively or negatively by approximately $17 million and $9 million, respectively, from what is included in the Company's full year 2009 outlook. [TABLE OMITTED] The following table reflects the estimated impact of foreign currency fluctuations and straight-line revenue and expense recognition on rental and management segment revenue and Adjusted EBITDA outlook: [TABLE OMITTED] (1) Outlook for rental and management segment revenue includes an estimated decrease in non-cash straight-line revenues of approximately $20 million in 2008 from the full year 2007 and $22 million in 2009 from the full year 2008. (For additional information on straight-line revenues, we refer you to the information contained in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Revenue Recognition" of note 1 "Business and Summary of Significant Accounting Policies" within the notes to the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge of our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2007.) (2) See Non-GAAP and Defined Financial Measures below. (3) Outlook for Adjusted EBITDA for 2008 and 2009 does not include (a) any estimate of future costs associated with the legal and governmental proceedings related to the review of the Company's historical stock option granting practices; (b) $56 million to $58 million of stock-based compensation expense; and includes (c) $10 million of international business development expense. (4) Outlook for interest expense does not reflect any future borrowings or repayments under the Company's existing senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility or convertible note conversions subsequent to November 3, 2008. (5) Outlook for cash provided by operating activities reflects the payment of approximately $12 million and $10 million to prepay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. long-term Long-termThree or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ground leases, as part of the Company's land management program, for the full year 2008 and 2009, respectively. (6) 2008 outlook for capital expenditures includes costs for the construction of approximately 650 new sites, and approximately $40 million to $44 million of ground lease purchases. 2009 outlook for capital expenditures includes costs for the construction of approximately 700 to 900 new sites and approximately $25 million to $30 million of ground lease purchases. (7) 2008 outlook assumes the following average foreign exchange rates for the remainder of 2008: (a) 12.85 Mexican Pesos to 1.00 US Dollar; (b) 2.11 Brazilian Reals to 1.00 US Dollar. 2009 outlook assumes the following average foreign exchange rates for the full year 2009: (a) 12.00 Mexican Pesos to 1.00 US Dollar and (b) 2.00 Brazilian Reals to 1.00 US Dollar. The foreign currency rate forecasts for 2009 assume that the Mexican Peso and the Brazilian Real will strengthen against the US Dollar. The actual impact of foreign currency fluctuations may differ materially from these estimates. Conference Call Information American Tower will host a conference call today at 8:30 a.m. ET to discuss its third quarter 2008 financial results and the Company's outlook for the full year 2008 and 2009. The conference call dial-in numbers are as follows: US/Canada dial-in: (877) 235-9047 International dial-in: (706) 645-9644 Passcode: 69778631 A replay of the call will be available from 11:30 a.m. ET November 3, 2008 until 11:59 p.m. ET November 17, 2008. The replay dial-in numbers are as follows: US/Canada dial-in: (800) 642-1687 International dial-in: (706) 645-9291 Passcode: 69778631 American Tower will also sponsor a live simulcast of the call on its website, www.americantower.com. When available, a replay of the call will be available on the Company's website. About American Tower American Tower is a leading independent owner, operator and developer of broadcast and wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. sites. American Tower owns and operates over 23,000 sites in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Mexico, Brazil and India. For more information about American Tower, please visit www.americantower.com. Non-GAAP and Defined Financial Measures In addition to the results prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP) provided throughout this press release, the Company has presented the following non-GAAP and defined financial measures: Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow. American Tower defines Rental and Management Segment Gross Margin as operating income before depreciation, amortization and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the , impairments and net loss (gain) on sale of long-lived assets, stock-based compensation expense, corporate expenses, rental and management segment overhead, network development services segment overhead, network development services segment operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , network development services segment revenue, plus interest income, TV Azteca TV Azteca is the second largest Mexican television network. It was established in 1968 as the state-owned Instituto Mexicano de la Televisión ("Imevisión"), and was privatized under its current name in 1993. Its flagship program is the newscast Hechos. , net. American Tower defines Network Development Services Segment Gross Margin as operating income before depreciation, amortization and accretion, impairments and net loss (gain) on sale of long-lived assets, stock-based compensation expense, corporate expenses, network development services segment overhead, rental and management segment overhead, rental and management segment operating expenses, and rental and management segment revenue. American Tower defines Adjusted EBITDA as operating income before depreciation, amortization and accretion, impairments and net loss (gain) on sale of long-lived assets, and stock-based compensation expense, plus interest income, TV Azteca, net. American Tower defines Adjusted EBITDA Margin as a percentage of Adjusted EBITDA over total revenue. American Tower defines Free Cash Flow as cash provided by operating activities less payments for purchase of property and equipment and construction activities. These measures are not intended as substitutes for other measures of financial performance determined in accordance with GAAP. They are presented as additional information because management believes they are useful indicators of the current financial performance of our core businesses. We believe that these measures can assist in comparing company performances on a consistent basis irrespective of irrespective of prep. Without consideration of; regardless of. irrespective of preposition despite depreciation and amortization or capital structure. Depreciation and amortization can vary significantly among companies depending on accounting methods, particularly where acquisitions or non-operating factors including historical cost bases are involved. Notwithstanding the foregoing, the Company's measures of Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow may not be comparable to similarly titled measures used by other companies. Cautionary Language Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains "forward-looking statements" concerning the Company's goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions, and other statements that are not necessarily based on historical facts. Examples of these statements include, but are not limited to, statements regarding our full year 2008 and 2009 outlook, our stock repurchase programs and our international business development initiatives. Actual results may differ materially from those indicated in our forward-looking statements as a result of various important factors, including: (1) decrease in demand for tower space would materially and adversely affect our operating results and we cannot control that demand; (2) if our wireless service provider customers consolidate or merge with each other to a significant degree, our growth, revenue and ability to generate positive cash flows could be adversely affected; (3) substantial leverage and debt service obligations may adversely affect us; (4) restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. in the loan agreement for our Revolving Credit Facility and Term Loan, the indentures governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. our debt securities, and the loan agreement related to our securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. transaction could adversely affect our business by limiting flexibility; (5) we have identified a material weakness in our internal control over financial reporting related to accounting for income taxes that, until remediated, could result in a material misstatement mis·state tr.v. mis·stat·ed, mis·stat·ing, mis·states To state wrongly or falsely. mis·state ment n. in our financial
statements; (6) we could suffer adverse tax and other financial
consequences if taxing authorities do not agree with our tax positions,
or we are unable to utilize our net operating losses Net operating lossesLosses that a firm can take advantage of to reduce taxes. ; (7) due to the long-term expectations of revenue from tenant leases, the tower industry is sensitive to the credit worthiness of its tenants; (8) our foreign operations are subject to economic, political, and other risks that could adversely affect our revenues or financial position, including risks associated with fluctuations in foreign currency exchange rates; (9) a substantial portion of our revenue is derived from a small number of customers; (10) we anticipate that we may need additional financing to fund our stock repurchase programs, to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. our existing indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and to fund future growth and expansion initiatives; (11) new technologies could make our tower leasing business less desirable to potential tenants and result in decreasing revenues; (12) we could have liability under environmental laws; (13) our business is subject to governmental regulations and changes in current or future laws or regulations could restrict our ability to operate our business as we currently do; (14) increasing competition in the tower industry may create pricing pressures that may adversely affect us; (15) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results; (16) if we are unable or choose not to exercise our rights to purchase towers that are subject to lease and sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. agreements at the end of the applicable period, our cash flows derived from such towers would be eliminated; (17) our towers may be affected by natural disasters and other unforeseen damage for which our insurance may not provide adequate coverage; (18) our costs could increase and our revenues could decrease due to perceived health risks from radio emissions, especially if these risks are substantiated; (19) our historical stock option granting practices are subject to ongoing governmental proceedings, which could result in fines, penalties or other liability; and (20) pending civil litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our historical stock option granting practices exposes us to risks and uncertainties. For other important factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information contained in Item 1A of our Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2008 under the caption "Risk Factors." We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . [TABLE OMITTED] [TABLE OMITTED] (1) Selling, general, administrative and development expense includes $13,249 and $15,266 of stock-based compensation expense for the three months ended September 30, 2008 and September 30, 2007, respectively, and $43,111 and $43,480 of stock-based compensation expense for the nine months ended September 30, 2008 and September 30, 2007, respectively. [TABLE OMITTED] UNAUDITED SELECTED FINANCIAL INFORMATION (In thousands, except where noted) [TABLE OMITTED] (1) Long-term obligations as adjusted reflects the following transactions that occurred in October 2008: (a) the Company drew down approximately $50.0 million under its Unsecured Revolving Credit Facility; and (b) holders of approximately $124.6 million principal amount of the Company's 3.000% Convertible Notes due 2012 converted their notes into 6.1 million shares of the Company's Class A common stock. In connection with the conversions, the Company paid the noteholders approximately $3.1 million calculated based on the discounted value of future interest payments on the notes. [TABLE OMITTED] (1) Includes (a) 15.1 million shares related to the Company's 3.0% Convertible Notes due 2012 which are convertible at $20.50 per share, of which 6.1 million shares were issued subsequent to the end of the third quarter in connection with the convertible note conversions described above; and excludes (b) 1.2 million shares related to the Company's 5.0% Convertible Notes due 2010 which are convertible at $51.50 per share. (2) Excludes (a) 7.9 million of unvested options; and (b) 1.1 million of unvested restricted stock units Restricted stock units Similar to restricted stock. However, the unit represents a promise that employees will receive stock in the future. The units do not pay dividends until the stock is vested. outstanding as of September 30, 2008. (3) Reflects shares issuable on exercise of warrants with an effective exercise price of $4.48 per share. UNAUDITED SELECTED FINANCIAL INFORMATION, CONTINUED (In thousands, except where noted) SELECTED INCOME STATEMENT DETAIL: The following table reflects the estimated impact of foreign currency fluctuations and straight-line revenue and expense recognition on rental and management segment revenue and Adjusted EBITDA: [TABLE OMITTED] Rental and management segment straight-line revenue and expense: In accordance with GAAP, the Company recognizes rental and management segment revenue and expense related to non-cancelable customer and ground lease agreements with fixed escalations on a straight-line basis, over the applicable lease term. As a result, the Company's revenue recognized and cash collected per customer lease, and expense incurred and cash paid per ground lease may differ materially. Additional information regarding straight-line accounting can be found in our Form 10-K for the year ended December 31, 2007. A summary of rental and management segment straight-line revenue and expense, which represents the non-cash revenue and expense recorded due to straight-line recognition, is as follows: [TABLE OMITTED] (1) Includes costs related to the review of the Company's historical stock option granting practices, related legal and governmental proceedings and other related costs for the three months ended September 30, 2008 and September 30, 2007 of $(108) and $6,052, respectively, and for the nine months ended September 30, 2008 and September 30, 2007 of $1,051 and $10,599, respectively. (2) Includes a one-time reduction of approximately $3,062 for the nine months ended September 30, 2008. UNAUDITED SELECTED FINANCIAL INFORMATION, CONTINUED (In thousands, except where noted) [TABLE OMITTED] SELECTED CASH FLOW DETAIL: [TABLE OMITTED] SELECTED PORTFOLIO DETAIL - OWNED SITES: [TABLE OMITTED] UNAUDITED RECONCILIATIONS TO GAAP MEASURES AND THE CALCULATION OF DEFINED FINANCIAL MEASURES (In thousands, except where noted) The reconciliation of net income to Adjusted EBITDA and the calculation of Rental and Management Segment Operating Profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. , Rental and Management Gross Margin, Network Development Services Segment Operating Profit, Network Development Services Segment Gross Margin and Adjusted EBITDA Margin are as follows: [TABLE OMITTED] UNAUDITED CALCULATION OF DEFINED FINANCIAL MEASURES, CONTINUED (In thousands) The calculation of Free Cash Flow is as follows: [TABLE OMITTED] (1) Cash provided by operating activities for the three and nine months ended September 30, 2008 includes $0.6 million and $9.7 million of long-term ground lease prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. , respectively. (2) Cash provided by operating activities for the three months ended September 30, 2007 excludes a $13 million net increase in cash held in reserve accounts related to the Company's securitization transaction, as these accounts were classified as restricted cash. For the nine months ended September 30, 2007, cash provided by operating activities includes approximately $80 million in proceeds received by the Company from its previously announced federal income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. related to the carry back of certain federal net operating losses and excludes a $35 million net increase in cash held in reserve accounts related to the Company's securitization transaction, as these accounts were classified as restricted cash. UNAUDITED RECONCILIATIONS OF OUTLOOK TO GAAP MEASURES (In millions) The reconciliation of Income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the to Adjusted EBITDA outlook is as follows: [TABLE OMITTED] (1) The company has not reconciled Adjusted EBITDA Outlook to net income because it does not provide guidance for net income (loss) from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , net, which is the reconciling item between income from continuing operations and net income. As items that impact income (loss) from discontinued operations are out of the Company's control and/or cannot be reasonably predicted, the Company is unable to provide such guidance. Accordingly, a reconciliation to net income is not available without unreasonable effort. |
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