EBITDA and Clause Samples

EBITDA and adjusted EBITDA are non-GAAP financial measures. EBITDA is defined as income from continuing operations before interest expense (net of interest income), income taxes, depreciation and amortization. Adjusted EBITDA is defined as income from continuing operations before interest expense (net of interest income), income taxes, depreciation, amortization and other items included in the caption above labeled “Non-recurring expenses.” These non-recurring expenses may occur in future periods but the amounts recognized can very significantly from period to period and do not directly relate to ongoing operations. Management and investors review EBITDA and adjusted EBITDA to evaluate overall performance and compare current operating results with other companies in the health care industry. EBITDA and adjusted EBITDA should not be considered in isolation or as a substitute for net income, operating cash flows or other cash flow statement data determined in accordance with accounting principles generally accepted in the United States. Because EBITDA and adjusted EBITDA are not measures of financial performance under accounting principles generally accepted in the United States and are susceptible to varying calculations, they may not be comparable to similarly titled measures of other companies.