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These excerpts taken from the AYR 10-K filed Mar 2, 2009. Limitations
of EBITDA
EBITDA has limitations as an analytical tool. It should not be
viewed in isolation or as a substitute for GAAP measures of
earnings. Material limitations in making the adjustments to our
earnings to calculate EBITDA, and using this non-GAAP financial
measure as compared to GAAP net income, include:
An investor or potential investor may find this item important
in evaluating our performance, results of operations and
financial position. We use non-GAAP financial measures to
supplement our GAAP results in order to provide a more complete
understanding of the factors and trends affecting our business.
EBITDA is not an alternative to net income, income from
operations or cash flows provided by or used in operations as
calculated and presented in accordance with GAAP. You should not
rely on EBITDA as a substitute for any such GAAP financial
measure. We strongly urge you to review the reconciliation of
EBITDA to GAAP net income, along with our consolidated financial
statements included elsewhere in this Annual Report. We also
strongly urge you to not rely on any single financial measure to
evaluate our business. In addition, because EBITDA is not a
measure of financial performance under GAAP and is susceptible
to varying calculations, the EBITDA measure, as presented in
this Annual Report, may differ from and may not be comparable to
similarly titled measures used by other companies. The table
below shows the reconciliation of net income to EBITDA for the
years ended December 31, 2006, 2007 and 2008.
Table of Contents
Limitations of EBITDA EBITDA has limitations as an analytical tool. It should not be viewed in isolation or as a substitute for GAAP measures of earnings. Material limitations in making the adjustments to our earnings to calculate EBITDA, and using this non-GAAP financial measure as compared to GAAP net income, include:
An investor or potential investor may find this item important in evaluating our performance, results of operations and financial position. We use non-GAAP financial measures to supplement our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. EBITDA is not an alternative to net income, income from operations or cash flows provided by or used in operations as calculated and presented in accordance with GAAP. You should not rely on EBITDA as a substitute for any such GAAP financial measure. We strongly urge you to review the reconciliation of EBITDA to GAAP net income, along with our consolidated financial statements included elsewhere in this Annual Report. We also strongly urge you to not rely on any single financial measure to evaluate our business. In addition, because EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations, the EBITDA measure, as presented in this Annual Report, may differ from and may not be comparable to similarly titled measures used by other companies. The table below shows the reconciliation of net income to EBITDA for the years ended December 31, 2006, 2007 and 2008.
Table of Contents
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