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Biotech / Medical : Inverness Medical Innovation - IMA -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (27)	5/14/2003 6:04:37 PM
From: Crossy	Respond to of 40

reconciliation of EBTIDA data with GAAP accounting invernessmedical.com Inverness Medical Innovations, Inc. Reconciliation of net income (loss) to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)* (in $000s) Quarter Ended March 31, 2003 2002 Net income (loss) under generally accepted accounting principles. $ 1,998 $ (31,457) Interest 1,950 4,967 Income taxes 856 506 Depreciation and amortization expense 3,397 1,839 Non-cash stock-based compensation charge 6 10,145 Non-cash charge to mark to market an interest rate swap agreement 130 Non-cash gain related to the repurchase of a beneficial conversion feature upon early extinguishment of debt (9,600) Non-cash impairment charges related to the goodwill and certain intangible assets of our nutritional business 24,830 Unrealized foreign exchange gain (216) (192) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) $ 8,121 $ 1,038 * Management believes that EBITDA is useful because it allows investors and management to evaluate and compare the Company's operating results from continuing operations from period to period in a meaningful and consistent manner in addition to standard financial measurements under generally accepted accounting principles (GAAP). Management internally evaluates the performance of its business using EBITDA measures. EBITDA (excluding IVC's EBITDA) is also a component of certain financial covenants in the Company's debt agreements and, accordingly, must be monitored by management for compliance. It should be noted that EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to cash flow from operating activities or net income, as a measure of liquidity or as an indicator of operating performance or any measure of performance derived in accordance with GAAP. The Company's calculation of EBITDA may be different from the calculation used by other companies and, accordingly, comparability may be limited.