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8-K - FORM 8-K - Change Healthcare Holdings, Inc. | g27125e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Emdeon Reports First Quarter 2011 Results
| Revenue of $271.5 million, increased 14.4% over first quarter 2010 |
| Non-GAAP Adjusted EBITDA of $68.8 million, increased 10.4% over first quarter 2010 |
| Recent EquiClaim acquisition expands payment integrity solutions with leading healthcare audit and recovery services for commercial and government payers |
NASHVILLE, Tenn. (May 5, 2011) Emdeon Inc. (NYSE: EM), a leading provider of healthcare revenue
and payment cycle management and clinical information exchange solutions, today announced financial
results for the first quarter ended March 31, 2011, as summarized below:
% | ||||||||||||
(In millions, except per share amts) | 1Q 11 | 1Q 10 | Change | |||||||||
Revenue |
$ | 271.5 | $ | 237.3 | 14.4 | % | ||||||
Net Income |
$ | 7.3 | $ | 4.3 | 70.7 | % | ||||||
Earnings per share (diluted) |
$ | 0.05 | $ | 0.02 | 150.0 | % | ||||||
Non-GAAP Adjusted EBITDA |
$ | 68.8 | $ | 62.4 | 10.4 | % | ||||||
Non-GAAP Adjusted EPS |
$ | 0.23 | $ | 0.21 | 9.5 | % | ||||||
Non-GAAP fully diluted shares |
123.2 | 121.3 | 1.5 | % |
We are pleased with our financial results for the first quarter. Across the board, our
businesses performed according to plan and we continued to see solid growth in our revenue cycle
management and payment services solutions, said George Lazenby, Emdeons chief executive officer.
In addition, the market reception of our recently acquired revenue cycle management services,
including Chamberlin Edmonds eligibility and enrollment solutions, has been positive and we are
beginning to see success in cross-selling these services.
Lazenby continued, In addition, we recently announced the acquisition of EquiClaim, whose payment
integrity solutions and strong management team are a welcome addition to Emdeon. This acquisition
represents another important step in our strategic efforts to provide a comprehensive suite of
payment integrity solutions to our customers.
First quarter revenue was $271.5 million, an increase of 14.4%, compared to $237.3 million for the
same period in 2010, as a result of recent acquisitions and organic growth. GAAP operating income
for the first quarter of 2011 was $23.7 million compared to $30.8 million for the same period in
2010, a decrease of 23.3%, primarily due to higher depreciation and amortization expense related to
2010 acquisitions and capital expenditures. First quarter Non-GAAP Adjusted EBITDA grew 10.4% to
$68.8 million, or 25.4% of revenue, from Non-GAAP Adjusted EBITDA of $62.4 million, or 26.3% of
revenue, in the comparable period in 2010. The decrease in Non-GAAP Adjusted EBITDA as a
percentage of revenue was primarily due to increased investment in new product and service
initiatives combined with revenue mix changes, including the impact of recent acquisitions.
1
GAAP net income (before noncontrolling interest) for the first quarter of 2011 was $7.3 million
compared to GAAP net income of $4.3 million for the same period in 2010. GAAP net income per
diluted share for the first quarter of 2011 was $0.05 compared to $0.02 for the same period in
2010. Non-GAAP Adjusted Net Income per fully diluted share for the first quarter of 2011 was
$0.23, using a weighted average fully diluted share count of 123.2 million, compared to $0.21,
using a weighted average fully diluted share count of 121.3 million, for the same period in 2010.
A reconciliation of Emdeons financial results determined in accordance with U.S. Generally
Accepted Accounting Principles (GAAP) to certain non-GAAP financial measures has been provided in
the financial statement tables included in this release to supplement its unaudited condensed
consolidated financial statements presented on a GAAP basis. An explanation of these non-GAAP
measures is also included below under the heading Explanation of Non-GAAP Financial Measures.
Financial Outlook
Emdeon maintained its previously announced 2011 annual financial outlook ranges of $1.105 to $1.135
billion for revenue, $300 to $310 million for Non-GAAP Adjusted EBITDA and $1.00 to $1.06 for
Non-GAAP Adjusted Net Income per fully diluted share (using a weighted average share count of 124.0
million).
Notice of Conference Call and Webcast
Emdeon will conduct a conference call/webcast for investors and institutional analysts on Thursday,
May 5, 2011 at 5:00 pm Eastern Time/4:00 pm Central Time to discuss Emdeons financial results.
To access Emdeons live conference call and webcast, dial 866-831-6224 (617-213-8853 for
international calls) using conference code 66554525 or visit the Investors section of Emdeons
website: www.emdeon.com. Please go to the website at least 15 minutes prior to the event
to register, download and install any necessary audio/video software to access the webcast. For
those unable to listen to the live broadcast, a conference call replay will be available for one
week following the conference call by calling 888-286-8010 (617-801-6888 for international calls)
using conference code 67368789. A webcast replay will also be archived on Emdeons website for at
least 30 days following the conference call.
About Emdeon
Emdeon is a leading provider of revenue and payment cycle management and clinical information
exchange solutions, connecting payers, providers and patients in the U.S. healthcare system.
Emdeons product and service offerings integrate and automate key business and administrative
functions of its payer and provider customers throughout the patient encounter. Through the use of
Emdeons comprehensive suite of products and services, which are designed to easily integrate with
existing technology infrastructures, customers are able to improve efficiency, reduce costs,
increase cash flow and more efficiently manage the complex revenue and payment cycle and clinical
information exchange processes. For more information, visit www.emdeon.com.
2
Forward-Looking Statements
Statements made in this press release that express Emdeons or managements intentions, plans,
beliefs, expectations or predictions of future events are forward-looking statements, which Emdeon
intends to be covered by the safe harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995. These statements often include words such as
may, will, should, believe, expect, anticipate, intend, plan, estimate or similar
expressions. Forward-looking statements may include information concerning Emdeons possible or
assumed future results of operations, including descriptions of Emdeons revenues, profitability,
outlook and overall business strategy. You should not place undue reliance on these statements
because they are subject to numerous uncertainties and factors relating to Emdeons operations and
business environment, all of which are difficult to predict and many of which are beyond Emdeons
control. Although Emdeon believes that these forward-looking statements are based on reasonable
assumptions, you should be aware that many factors could affect Emdeons actual financial results
or results of operations and could cause actual results to differ materially from those in the
forward-looking statements, including but not limited to: effects of competition, including
competition from entities that are customers for certain of Emdeons products and services;
Emdeons ability to maintain relationships with its customers and channel partners; Emdeons
ability to effectively cross-sell its products and services to existing customers and to continue
to generate revenue and maintain profitability by developing or acquiring and successfully
deploying new or updated products and services; pricing pressures on Emdeons products and
services; the anticipated benefits from acquisitions not being fully realized or not being realized
within the expected time frames; and general economic, business or regulatory conditions affecting
the healthcare information technology and services industries; as well as the other risks
discussed in the Risk Factors and Managements Discussion and Analysis of Financial Condition
and Results of Operations sections and elsewhere in Emdeons Annual Report on Form 10-K for the
year ended December 31, 2010, as well as Emdeons periodic and other reports, filed with the
Securities and Exchange Commission.
You should keep in mind that any forward-looking statement made by Emdeon herein, or elsewhere,
speaks only as of the date on which made. Emdeon expressly disclaims any intent, obligation or
undertaking to update or revise any forward-looking statements made herein to reflect any change in
Emdeons expectations with regard thereto or any change in events, conditions or circumstances on
which any such statements are based.
# # #
Contacts:
Investor Relations
Tommy Lewis
615.932.3235
tlewis@emdeon.com
615.932.3235
tlewis@emdeon.com
3
Emdeon Inc.
Condensed Consolidated Statements of Operations
(unaudited and amounts in thousands, except share and per share amounts)
Condensed Consolidated Statements of Operations
(unaudited and amounts in thousands, except share and per share amounts)
For the Three Months | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenue |
$ | 271,499 | $ | 237,279 | ||||
Costs and expenses: |
||||||||
Cost of operations (exclusive of depreciation and amortization below) |
169,254 | 143,986 | ||||||
Development and engineering |
8,904 | 8,554 | ||||||
Sales, marketing, general and administrative |
31,647 | 26,119 | ||||||
Depreciation and amortization |
38,022 | 27,775 | ||||||
Operating income |
23,672 | 30,845 | ||||||
Interest income |
(3 | ) | (3 | ) | ||||
Interest expense |
12,629 | 15,665 | ||||||
Other |
(1,403 | ) | 290 | |||||
Income before income tax provision |
12,449 | 14,893 | ||||||
Income tax provision |
5,174 | 10,630 | ||||||
Net income |
7,275 | 4,263 | ||||||
Net income attributable to noncontrolling interest |
2,881 | 2,374 | ||||||
Net income attributable to Emdeon Inc. |
$ | 4,394 | $ | 1,889 | ||||
Net income per share Class A common stock: |
||||||||
Basic |
$ | 0.05 | $ | 0.02 | ||||
Diluted |
$ | 0.05 | $ | 0.02 | ||||
Weighted average common shares outstanding: |
||||||||
Basic |
90,987,352 | 90,461,968 | ||||||
Diluted |
91,246,531 | 90,468,057 | ||||||
4
Emdeon Inc.
Condensed Consolidated Balance Sheets
(unaudited and amounts in thousands, except share amounts)
Condensed Consolidated Balance Sheets
(unaudited and amounts in thousands, except share amounts)
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 135,084 | $ | 99,188 | ||||
Accounts receivable, net of
allowance for
doubtful
accounts of $
5,756 and $5,394
at March 31, 2011 and
December
31, 2010, respectively |
175,709 | 174,191 | ||||||
Deferred income tax assets |
7,171 | 7,913 | ||||||
Prepaid expenses and other current assets |
25,895 | 25,020 | ||||||
Total current assets |
343,859 | 306,312 | ||||||
Property and equipment, net |
229,879 | 231,307 | ||||||
Goodwill |
908,008 | 908,310 | ||||||
Intangible assets, net |
1,013,053 | 1,035,886 | ||||||
Other assets, net |
9,298 | 9,750 | ||||||
Total assets |
$ | 2,504,097 | $ | 2,491,565 | ||||
Liabilities and equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 8,232 | $ | 4,732 | ||||
Accrued expenses |
111,239 | 112,245 | ||||||
Deferred revenues |
13,161 | 12,130 | ||||||
Current portion of long-term debt |
12,493 | 12,494 | ||||||
Total current liabilities |
145,125 | 141,601 | ||||||
Long-term debt, excluding
current
portion |
934,969 | 933,749 | ||||||
Deferred income tax
liabilities |
199,595 | 200,357 | ||||||
Tax receivable agreement
obligations
to related
parties |
137,964 | 138,533 | ||||||
Other long-term liabilities |
17,514 | 22,037 | ||||||
Commitments and
contingencies |
||||||||
Equity: |
||||||||
Preferred stock (par value, $0.00001), 25,000,000
shares authorized and 0
shares
issued and outstanding |
| | ||||||
Class A common stock (par
value, $0.00001),
400,000,000
shares authorized
and 91,127,779 and 91,064,486
shares
outstanding at
March
31, 2011 and
December
31, 2010, respectively |
1 | 1 | ||||||
Class B common
stock, exchangeable (par
value, $0.00001), 52,000,000
shares
authorized and 24,689,142 shares
outstanding at
March
31, 2011 and
December
31, 2010 |
| | ||||||
Additional paid-in capital |
743,458 | 738,888 | ||||||
Contingent consideration |
1,955 | 1,955 | ||||||
Accumulated other
comprehensive loss |
(1,937 | ) | (2,569 | ) | ||||
Retained earnings |
57,644 | 53,250 | ||||||
Emdeon Inc. equity |
801,121 | 791,525 | ||||||
Noncontrolling interest |
267,809 | 263,763 | ||||||
Total equity |
1,068,930 | 1,055,288 | ||||||
Total liabilities and equity |
$ | 2,504,097 | $ | 2,491,565 | ||||
5
Emdeon Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited and amounts in thousands)
Condensed Consolidated Statements of Cash Flows
(unaudited and amounts in thousands)
For the Three Months | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Operating activities |
||||||||
Net income |
$ | 7,275 | $ | 4,263 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
38,022 | 27,775 | ||||||
Equity compensation expense |
5,573 | 3,675 | ||||||
Deferred income tax expense |
| 4,666 | ||||||
Amortization of debt discount and issuance costs |
3,455 | 3,135 | ||||||
Amortization of discontinued cash flow hedge from other comprehensive loss |
922 | 1,453 | ||||||
Change in contingent consideration |
(1,403 | ) | 290 | |||||
Change in fair value of interest rate swap (not subject to hedge accounting) |
(2,556 | ) | | |||||
Other |
5 | 281 | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(1,519 | ) | 3,347 | |||||
Prepaid expenses and other |
1,209 | 1,646 | ||||||
Accounts payable |
4,766 | (2,434 | ) | |||||
Accrued expenses and other liabilities |
5,104 | 3,173 | ||||||
Deferred revenues |
1,031 | 14 | ||||||
Tax receivable agreement obligations to related parties |
(2,913 | ) | (1,480 | ) | ||||
Net cash provided by operating activities |
58,971 | 49,804 | ||||||
Investing activities |
||||||||
Purchases of property and equipment |
(19,654 | ) | (12,949 | ) | ||||
Payments for acquisitions, net of cash acquired |
| (26,444 | ) | |||||
Net cash used in investing activities |
(19,654 | ) | (39,393 | ) | ||||
Financing activities |
||||||||
Debt principal payments |
(2,138 | ) | (1,888 | ) | ||||
Other |
(1,283 | ) | (104 | ) | ||||
Net cash used in financing activities |
(3,421 | ) | (1,992 | ) | ||||
Net increase in cash and cash equivalents |
35,896 | 8,419 | ||||||
Cash and cash equivalents at beginning of period |
99,188 | 211,999 | ||||||
Cash and cash equivalents at end of period |
$ | 135,084 | $ | 220,418 | ||||
6
Segment Information
(unaudited and amounts in thousands)
(unaudited and amounts in thousands)
For the Three Months Ended March 31, 2011 | ||||||||||||||||||||
Corporate & | ||||||||||||||||||||
Payer | Provider | Pharmacy | Eliminations | Consolidated | ||||||||||||||||
Revenue from external customers |
||||||||||||||||||||
Claims management |
$ | 47,554 | $ | | $ | | $ | | $ | 47,554 | ||||||||||
Payment services |
62,236 | | | | 62,236 | |||||||||||||||
Patient statements |
| 63,517 | | | 63,517 | |||||||||||||||
Revenue cycle management |
| 69,854 | | | 69,854 | |||||||||||||||
Dental |
| 7,733 | | | 7,733 | |||||||||||||||
Pharmacy services |
| | 20,605 | | 20,605 | |||||||||||||||
Inter-segment revenue |
856 | 116 | (972 | ) | | |||||||||||||||
Net revenue |
110,646 | 141,220 | 20,605 | (972 | ) | 271,499 | ||||||||||||||
Costs and expenses: |
||||||||||||||||||||
Cost of operations |
75,328 | 86,170 | 8,663 | (907 | ) | 169,254 | ||||||||||||||
Development and engineering |
2,858 | 4,320 | 1,726 | | 8,904 | |||||||||||||||
Sales, marketing, general and administrative |
6,813 | 10,516 | 1,301 | 13,017 | 31,647 | |||||||||||||||
Segment contribution (1) |
$ | 25,647 | $ | 40,214 | $ | 8,915 | $ | (13,082 | ) | 61,694 | ||||||||||
Depreciation and amortization |
38,022 | |||||||||||||||||||
Interest income |
(3 | ) | ||||||||||||||||||
Interest expense |
12,629 | |||||||||||||||||||
Other |
(1,403 | ) | ||||||||||||||||||
Income before income tax provision |
$ | 12,449 | ||||||||||||||||||
For the Three Months Ended March 31, 2010 | ||||||||||||||||||||
Corporate & | ||||||||||||||||||||
Payer | Provider | Pharmacy | Eliminations | Consolidated | ||||||||||||||||
Revenue from external customers |
||||||||||||||||||||
Claims management |
$ | 45,148 | $ | | $ | | $ | | $ | 45,148 | ||||||||||
Payment services |
56,820 | | | | 56,820 | |||||||||||||||
Patient statements |
| 66,589 | | | 66,589 | |||||||||||||||
Revenue cycle management |
| 41,089 | | | 41,089 | |||||||||||||||
Dental |
| 7,937 | | | 7,937 | |||||||||||||||
Pharmacy services |
| | 19,696 | | 19,696 | |||||||||||||||
Inter-segment revenue |
873 | 87 | | (960 | ) | | ||||||||||||||
Net revenue |
102,841 | 115,702 | 19,696 | (960 | ) | 237,279 | ||||||||||||||
Costs and expenses: |
||||||||||||||||||||
Cost of operations |
66,631 | 71,558 | 6,725 | (928 | ) | 143,986 | ||||||||||||||
Development and engineering |
2,975 | 3,864 | 1,715 | | 8,554 | |||||||||||||||
Sales, marketing, general and administrative |
6,959 | 6,890 | 1,558 | 10,712 | 26,119 | |||||||||||||||
Segment contribution (1) |
$ | 26,276 | $ | 33,390 | $ | 9,698 | $ | (10,744 | ) | 58,620 | ||||||||||
Depreciation and amortization |
27,775 | |||||||||||||||||||
Interest income |
(3 | ) | ||||||||||||||||||
Interest expense |
15,665 | |||||||||||||||||||
Other |
290 | |||||||||||||||||||
Income before income tax provision |
$ | 14,893 | ||||||||||||||||||
(1) | Segment contribution has been reduced by equity-based compensation expense of $5,573 and $3,675 for the three months ended March 31, 2011 and 2010, respectively. Segment contribution without such equity-based compensation expense would have been $67,267 and $62,295 for the three months ended March 31, 2011 and 2010, respectively. |
7
Explanation of Non-GAAP Financial Measures
Emdeons management believes that, in order to properly understand Emdeons short-term and
long-term financial trends, investors may wish to consider the impact of certain non-cash or
non-operating items, when used as a supplement to financial performance measures prepared in
accordance with U.S. Generally Accepted Accounting Principles (GAAP). These items result from
facts and circumstances that vary in frequency and/or impact continuing operations. In addition,
management uses results of operations before such excluded items to evaluate the operational
performance of Emdeon as a basis for strategic planning and, in the case of Adjusted EBITDA, as a
performance evaluation metric in determining achievement of certain executive and management
incentive compensation programs. Investors should consider these non-GAAP measures in addition to,
and not as a substitute for, financial performance measures prepared in accordance with GAAP. In
addition to the description provided below, reconciliations of GAAP to non-GAAP results are
provided in the financial statement tables included in this release.
In this release, Emdeon defines Adjusted EBITDA as EBITDA (which is defined as net income before
income tax provision (benefit), net interest expense and depreciation and amortization), plus
certain other non-cash or non-operating items (collectively, EBITDA Adjustments).
In this release, Emdeon defines Adjusted Net Income as the sum of (i) GAAP net income, (ii) EBITDA
Adjustments, (iii) non-cash interest expense and (iv) depreciation and amortization expense
resulting from adjustments of assets to fair value in connection with acquisition accounting, less
income taxes computed based on a normalized income tax rate. Emdeon defines Adjusted Net Income
per fully diluted share as the quotient of Adjusted Net Income and weighted average shares
outstanding, assuming all potentially dilutive securities (except for contingently issuable shares
subject to performance conditions and shares or other potentially dilutive securities not otherwise
contemplated in the share denominator utilized in the applicable years financial outlook range)
are fully dilutive and outstanding shares from their date of grant or issuance.
To properly evaluate Emdeons business, Emdeon encourages investors to review the GAAP financial
information included in this release, and not rely on any single financial measure to evaluate
Emdeons business. Emdeon also strongly encourages investors to review the reconciliation of GAAP
net income and GAAP net income per diluted share to the applicable non-GAAP measures of Adjusted
EBITDA, Adjusted Net Income and Adjusted Net Income per fully diluted share. These non-GAAP
measures, as Emdeon defines them, may not be similar to non-GAAP measures used by other companies.
Management uses Adjusted EBITDA and Adjusted Net Income per fully diluted share to facilitate a
comparison of Emdeons operating performance on a consistent basis from period to period that, when
viewed in combination with Emdeons GAAP results, management believes provides a more complete
understanding of factors and trends affecting Emdeons business than GAAP measures alone.
Management believes these non-GAAP measures assist Emdeons board of directors, management, lenders
and investors in comparing Emdeons operating performance on a consistent basis because they remove
where applicable, the impact of Emdeons capital structure, asset base, acquisition accounting,
non-cash charges and non-operating items from Emdeons operations.
Emdeon also presents Adjusted EBITDA and Adjusted Net Income per fully diluted share on a
forward-looking basis as part of its Financial Outlook for 2011. Emdeon is unable to present a
quantitative
8
reconciliation of these forward-looking non-GAAP financial measures to the most
directly comparable forward-looking GAAP financial measures because management cannot predict, with
sufficient reliability, contingent payments relating to past and possible future acquisitions,
changes in the fair value of Emdeons interest rate swap agreement and the effect on income taxes
of these and other items attributable to Emdeons capital structure, all of which are difficult to
estimate and primarily dependent on future events.
9
Emdeon Inc.
Reconciliation of GAAP Net Income to Adjusted EBITDA
(unaudited and amounts in thousands)
Reconciliation of GAAP Net Income to Adjusted EBITDA
(unaudited and amounts in thousands)
For the Three Months | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Net income |
$ | 7,275 | $ | 4,263 | ||||
Interest expense, net |
12,626 | 15,662 | ||||||
Income tax provision |
5,174 | 10,630 | ||||||
Depreciation and amortization |
38,022 | 27,775 | ||||||
EBITDA |
63,097 | 58,330 | ||||||
Equity-based compensation |
5,573 | 3,675 | ||||||
Acquisition method adjustments |
| 176 | ||||||
Facilities consolidation costs |
96 | 430 | ||||||
Acquisition-related costs |
1,237 | 939 | ||||||
Tax receivable agreements change in estimate |
226 | (1,480 | ) | |||||
Contingent consideration adjustments |
(1,403 | ) | 290 | |||||
EBITDA Adjustments |
5,729 | 4,030 | ||||||
Adjusted EBITDA |
$ | 68,826 | $ | 62,360 | ||||
Emdeon Inc.
Reconciliation of GAAP Net Income to Adjusted Net Income
(unaudited and amounts in thousands)
Reconciliation of GAAP Net Income to Adjusted Net Income
(unaudited and amounts in thousands)
For the Three Months | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Net income |
$ | 7,275 | $ | 4,263 | ||||
Income tax provision |
5,174 | 10,630 | ||||||
EBITDA Adjustments |
5,729 | 4,030 | ||||||
Non-cash interest expense |
2,569 | 4,588 | ||||||
Depreciation and amortization resulting from acquisition method adjustments |
26,086 | 19,176 | ||||||
Adjusted net income before income taxes |
46,833 | 42,687 | ||||||
Normalized income tax provision |
18,499 | 16,861 | ||||||
Adjusted Net Income |
$ | 28,334 | $ | 25,826 | ||||
10
Emdeon Inc.
Reconciliation of GAAP Net Income Per Diluted Share of Class A Common Stock to
Adjusted Net Income Per Fully Diluted Share(1)
(unaudited)
Reconciliation of GAAP Net Income Per Diluted Share of Class A Common Stock to
Adjusted Net Income Per Fully Diluted Share(1)
(unaudited)
For the Three Months | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Net income per diluted share of Class A common stock |
$ | 0.05 | $ | 0.02 | ||||
Impact of assuming full dilution of all outstanding equity instruments for the
period |
0.01 | 0.01 | ||||||
Adjustments on a per share basis: |
||||||||
Income tax provision |
0.04 | 0.09 | ||||||
EBITDA Adjustments |
0.05 | 0.03 | ||||||
Non-cash interest expense |
0.02 | 0.04 | ||||||
Depreciation and amortization resulting from acquisition method adjustments |
0.21 | 0.16 | ||||||
Adjusted net income before income taxes |
0.38 | 0.35 | ||||||
Normalized income tax provision |
0.15 | 0.14 | ||||||
Adjusted Net Income per fully diluted share |
0.23 | $ | 0.21 | |||||
(1) | The calculation of Adjusted Net Income per fully diluted share assumes the following equity- based instruments were fully converted into Class A common stock on their date of issuance: |
(shares in thousands) | ||||||||
For the Three Months | ||||||||
Ended March 31, | ||||||||
Weighted average of: | 2011 | 2010 | ||||||
Class A shares outstanding |
90,987 | 90,462 | ||||||
Class B shares outstanding |
24,482 | 24,725 | ||||||
Restricted stock units outstanding |
792 | 572 | ||||||
Options to purchase Class A shares outstanding |
6,907 | 5,536 | ||||||
Shares assumed in Adjusted Net Income per fully diluted share calculation |
123,168 | 121,295 | ||||||
11