2
11New
York Lunch1
New
York - May 14, 210108
ULTRAPETROL
(BAHAMAS) LIMITED
INVESTOR AND ANALYST
MEETING
WEDNESDAY, MAY 14,
2008
*
Forward
- looking statements & EBITDA
Our disclosure and
analysis in this presentation concerning our operations, cash flows and
financial position, including, in particular, the likelihood of
our success in developing and expanding our business, include forward-looking statements. Statements that are predictive in nature, that depend
upon or refer to future events or conditions, or that include words such as ‘‘expects,’’ ‘‘anticipates,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘estimates,’’
‘‘projects,’’ ‘‘forecasts,’’ ‘‘will,’’ ‘‘may,’’ ‘‘should,’’ and similar expressions are forward-looking statements. Although these statements are based upon
assumptions we believe to be reasonable based upon available information, including projections of revenues, operating margins, earnings, cash flow,
working capital, and capital expenditures, they are subject to risks and uncertainties. These forward-looking statements represent our estimates and
assumptions only as of the date of this presentation and are not intended to give any assurance as to future results. As a result, you should not place
undue reliance on any forward-looking statements. We assume no obligation to update any forward-looking statements to reflect actual results,
changes in assumptions or changes in other factors, except as required by applicable securities laws.
our success in developing and expanding our business, include forward-looking statements. Statements that are predictive in nature, that depend
upon or refer to future events or conditions, or that include words such as ‘‘expects,’’ ‘‘anticipates,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘estimates,’’
‘‘projects,’’ ‘‘forecasts,’’ ‘‘will,’’ ‘‘may,’’ ‘‘should,’’ and similar expressions are forward-looking statements. Although these statements are based upon
assumptions we believe to be reasonable based upon available information, including projections of revenues, operating margins, earnings, cash flow,
working capital, and capital expenditures, they are subject to risks and uncertainties. These forward-looking statements represent our estimates and
assumptions only as of the date of this presentation and are not intended to give any assurance as to future results. As a result, you should not place
undue reliance on any forward-looking statements. We assume no obligation to update any forward-looking statements to reflect actual results,
changes in assumptions or changes in other factors, except as required by applicable securities laws.
Factors
that might cause future results to differ include, but are not limited to, the
following:
– unexpected future
operating or financial results
– delays or increased
costs in pending or recent acquisitions, deviations from our business strategy
or unexpected increases in capital spending or
operating expenses, including drydocking and insurance costs
operating expenses, including drydocking and insurance costs
– changes in general
market conditions and trends, including charter rates, vessel values, and
factors affecting vessel supply and demand
– our ability to
obtain additional financing
– changes in our
financial condition and liquidity, including our ability to obtain financing in
the future to fund capital expenditures, acquisitions and
other general corporate activities
other general corporate activities
– deviations from our
expectations about the availability of vessels to purchase, the time that it may
take to construct new vessels, or vessels’
useful lives
useful lives
– delays or defaults
by our contract counter-parties in performing their obligations to
us
– loss of one or more
key members of our management team
– changes in
governmental rules and regulations or actions taken by regulatory
authorities
– adverse weather
conditions that can affect production of the goods we transport and navigability
of the river system
– the highly
competitive nature of the oceangoing transportation industry
– the loss of one or
more key customers
– unexpected
fluctuations in foreign exchange rates and devaluations
– liabilities from
future litigation
– other factors
discussed in the section titled ‘‘Risk factors” in our annual report on form
20-F for the year ended December 31, 2007
Management
considers EBITDA to be a meaningful indicator of operating performance and uses
it as a measure to assess the operating
performance of the Company’s business. EBITDA provides us with an understanding of one aspect of earnings before the impact of investing and
financing transactions and income taxes. EBITDA should not be construed as a substitute for net income or as a better measure of liquidity than cash
flow from operating activities, which is determined in accordance with generally accepted accounting principles (“GAAP”). EBITDA excludes
components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDA is not a term defined by
GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies. The Company believes
that EBITDA is relevant and useful information, which is often reported and widely used by analysts, investors and other interested parties in our
industry. Accordingly, the Company has included references to EBITDA in this presentation.
performance of the Company’s business. EBITDA provides us with an understanding of one aspect of earnings before the impact of investing and
financing transactions and income taxes. EBITDA should not be construed as a substitute for net income or as a better measure of liquidity than cash
flow from operating activities, which is determined in accordance with generally accepted accounting principles (“GAAP”). EBITDA excludes
components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDA is not a term defined by
GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies. The Company believes
that EBITDA is relevant and useful information, which is often reported and widely used by analysts, investors and other interested parties in our
industry. Accordingly, the Company has included references to EBITDA in this presentation.
3
> Biggest
player in the Hidrovia Region with 591
barges and 28 pushboats -> over 40% of market
share
barges and 28 pushboats -> over 40% of market
share
> Significant
volume growth -> need for
additional capacity:
additional capacity:
§
Barge enlargement program ->
expansion
of existing capacity
of existing capacity
§
Barge building yard -> construction
of
new capacity
new capacity
§
Re-engining project -> higher fuel savings
and shorter voyage times
and shorter voyage times
> Five
very modern PSVs in operation: two in
Brazil & three in the North Sea
Brazil & three in the North Sea
> Continue
growing through construction
program:
program:
§
Brazil: One vessel under construction
to be delivered by the end of 2008
to be delivered by the end of 2008
§
India: Four vessels under construction
to be delivered starting 2009
to be delivered starting 2009
§
China: Two vessels under construction
to be delivered starting 2009 with an
option for further two
to be delivered starting 2009 with an
option for further two
River
Business
Offshore
Supply Business
Ocean
Business
Passenger
Business
> Nine
vessels in operation
§
Three OBO vessels chartered linked to the
4TC Capesize Routes Index and covered
through FFAs -> attractive and stable
revenues secured through 2008 / 2009
4TC Capesize Routes Index and covered
through FFAs -> attractive and stable
revenues secured through 2008 / 2009
§
Capesize vessel Princess
Marisol
employed on a strong spot market
employed on a strong spot market
§
Four Handysize / product tankers
operating under fixed time charters in South
America
operating under fixed time charters in South
America
> One
vessel, Blue
Monarch,
in operation
> Employed
on 7-day and 14-day cruises in the
Aegean Sea
Aegean Sea
> Overall
2008 performance expected to
improve with respect to last year
improve with respect to last year
4
RIVER
BUSINESS
5
Corumba
UABL
Brazil
Buenos
Aires
UABL
Argentina
Tres
Fronteras
Wanda
Dos
Fronteras
San
Gotardo
Asunción
UABL
Paraguay
Hub
Km 1,200
Km 1,200
Mississippi
Region
Hidrovia
Region
Number
of Barges: ~26,500
Number
of Barges: ~1,400
Hub
Hub
Hub
Through
a system of hubs
we can operate more
efficiently than the smaller
companies
we can operate more
efficiently than the smaller
companies
Hidrovia
System
> Runs
over 2,200 miles across the agricultural heartland of South America
> Comparable
in length to the Mississippi system
6
(1) Source:
FAS - USDA;
(2) Hidrovia
Region includes
Argentina, Bolivia, Brazil,
Paraguay and Uruguay.
Argentina, Bolivia, Brazil,
Paraguay and Uruguay.
Source:
FAS - USDA.
Hidrovia
Region’s share of world’s soy production has
been progressively increasing…
been progressively increasing…
7
2.5
8.7
1Q
08 vs. 1Q 07 Corumbá Mines
Iron Ore Exports(3)
Iron Ore Exports(3)
614
895
(1) Sources:
Rio Tinto PLC (RTZ), Vale (CVRD) and Mineração e Metálicos S.A. (MMX) public
filings, presentations and
web pages;
web pages;
(2) RTZ
and CVRD volumes are assumed flat due to lack of publicly available information
from each company in this
respect; MMX volumes taken from company presentation of March 2008;
respect; MMX volumes taken from company presentation of March 2008;
(3)
Industry
sources.
Corumbá
Mines Iron Ore
Estimated Production(1), (2)
Estimated Production(1), (2)
UABL
signed a long term contract to carry between 2009 and 2014 between 1.3 MM
and 2.0 MM tons of iron ore per year
and 2.0 MM tons of iron ore per year
4.1
7.3
6.7
5.0
…while
Corumbá iron ore production is expected to grow
by 3.5x from its 2005 level
by 3.5x from its 2005 level
8
806,900
1,331,900
2006
- 2010 = 65.1% expected increase
Source:
Company estimates
River
Business potential incremental dwt capacity if
all programs are executed at maximum
all programs are executed at maximum
1) Barge
enlargement
-
USD 36.0 million
CAPEX through 2010
CAPEX through 2010
-
67% increase per
barge enlarged
130,000 additional dwt
capacity
barge enlarged
130,000 additional dwt
capacity
-
Bottom Replacement
sub-program
sub-program
2) Barge
building yard
-
USD
24.0 million
initial budget
initial budget
-
USD 28.8 million
annual investments
annual investments
-
Expected
construction of 52
barges per year
starting end 2008
construction of 52
barges per year
starting end 2008
-
potential 40%
savings on equipment
compared with
originating in the US at
current newbuild and
transportation prices
savings on equipment
compared with
originating in the US at
current newbuild and
transportation prices
In
the River Business we have 3 ambitious growth programs
underway to secure our market leadership…
underway to secure our market leadership…
9
Estimated
Pro Forma EBITDA & EBITDA margin at
different levels of fuel substitution
different levels of fuel substitution
(1) BunkerWorld
- 2007 monthly
average price gap
between Diesel and IFO180 at Rotterdam port
between Diesel and IFO180 at Rotterdam port
(2) BunkerWorld
- 2008 YTD monthly
average price gap
between Diesel and IFO180 at Rotterdam port
between Diesel and IFO180 at Rotterdam port
Estimated
differential EBITDA at current Price Gap Diesel / Fuel
…through
capacity increases and improved fuel efficiencies
3) Re-engining
project
-
USD 52.0 million CAPEX
through 2010
through 2010
-
2007 fuel consumption was
49,800 mt
49,800 mt
-
2007 average price gap(1)
was
USD 264 / mt
USD 264 / mt
-
80% fuel substitution at 2007
average price gap USD 10.5
million savings
average price gap USD 10.5
million savings
-
2008 YTD average price gap(1)
is USD 453 / mt
is USD 453 / mt
-
80% fuel substitution at 2008
YTD average price gap USD
18.0 annual million savings
YTD average price gap USD
18.0 annual million savings
10
>
14% increase in volumes loaded as compared to 1Q 2007
>
Thirty barges and one pushboat purchased in the US already arrived in the
Hidrovia,
and are fully operational as from 2Q 2008
and are fully operational as from 2Q 2008
>
Further load-out of 27 barges and two pushboats currently taking
place
>
Received first six heavy fuel engines out of the 24 included in our
re-engining
project
project
>
Contracted with a shipyard in Argentina to construct the hull of an 8,325
HP
pushboat
pushboat
>
Barge enlargement program continues -> 44 barges
processed out of a total of 130
targeted by the end of 2010
targeted by the end of 2010
>
Ongoing construction of new barge building yard ->
currently receiving equipment
for installation and construction progressing as planned
for installation and construction progressing as planned
>
The Upper Paraguay River recovered normal water levels early in 1Q
2008
>
Unaffected by conflict in Argentina between Government and farmers
1Q
2008 & Year to Date
River Business Developments
River Business Developments
11
OFFSHORE
SUPPLY BUSINESS
12
Brazil
Deeper
water wells in Brazil and harsh conditions in the North Sea require larger, more
advanced PSVs
> Harsh
operating conditions demand
high quality vessels
high quality vessels
> Very
active spot market, with robust
pricing
pricing
North
Sea
We
are well established in the two most
attractive PSV markets…
attractive PSV markets…
> Market
moving to deeper water wells
> Fastest
growing Offshore market in the
world
world
> New
discoveries, Tupi and Carioca,
potentially two of the largest fields in
the world.
potentially two of the largest fields in
the world.
> Domestic
trade preferences similar to
US’ Jones Act
US’ Jones Act
> Mainly
a term market; not a spot market
13
Fleet
in Operation
Fleet
under Construction
…with
one of the most modern and
homogeneous fleets in the world…
homogeneous fleets in the world…
14
Annualized
number of PSVs in operation at same average gross
profit contribution per vessel obtained by existing fleet in 2007
profit contribution per vessel obtained by existing fleet in 2007
2007
/ 4.63
PSVs
PSVs
(1)
Pro Forma Gross Profit
Contribution = Revenues minus
Voyage Expenses minus
Running Costs
Contribution = Revenues minus
Voyage Expenses minus
Running Costs
Indian
PSVs
Chinese
PSVs
…gross
profit from our Offshore Supply Business expected
to grow consistently with fleet size over the next 3 years
to grow consistently with fleet size over the next 3 years
> Current
fleet of 5 PSVs
> Newbuildings
under construction are expected to take fleet up to 12 PSVs by 2010
> Option
for 2 further PSVs in China could take total fleet to 14
vessels
15
UP
North Sea Fleet Daily Average Time Charter(2)
2006
- To date North Sea Spot Rates(1)
Committed
Brazil
Committed
North
Sea
Spot
North
Sea
1Q
08 Fleet Employment Distribution(2)
UP
Brazil Fleet Daily Average Time Charter(2)
Current
Spot Rate(1)
(1)
Source: Seabrokers; Current Spot Rate: company estimates on brokers’
figures
(2)
Source: Company calculations / data
Offshore
Supply Market Overview
16
Source:
Company estimates based on industry sources
Assumption:
1.7 PSVs required per ordered rig
Source:
Stewarts Offshore / ODS
- Petrodata
PSV
shortfall over next 4 years = 156
Aligned
with Offshore Supply market fundamentals…
17
OCEAN
BUSINESS
18
Handysize
/ Product Tankers Fleet
OBO
/ Capesize Fleet
> Three
OBO vessels chartered tied to
the 4TC Capesize Routes Index and
covered through FFAs
the 4TC Capesize Routes Index and
covered through FFAs
> Stable
and attractive rates secured
through FFAs for 2008 and 2009
through FFAs for 2008 and 2009
> Capesize
vessel Princess Marisol
employed on a strong spot market
employed on a strong spot market
Ocean
Business: two different fleets…
> Consolidating
our leading presence in
the South American coastal market
the South American coastal market
> Two
new vessels in 2007 -> Alejandrina
in March & Amadeo end August
in March & Amadeo end August
> One
new vessel in 2008 -> MT
Austral in
April 2008, added under a three-year
bareboat charter
April 2008, added under a three-year
bareboat charter
> Demand
is led by major oil companies
> Distribution
of products normally done
by smaller chemical / product crude
coastal vessels
by smaller chemical / product crude
coastal vessels
> Expected
further acquisition of two
Product Tankers; one in 2008, and other
in 2009
Product Tankers; one in 2008, and other
in 2009
19
Ocean
Business: two different fleets (cont’d)
20
Avg.
‘07
TC(2)
TC(2)
Avg.
1Q
08 TC(3)
08 TC(3)
Avg.
FY
‘08 TC(4)
‘08 TC(4)
OBO
Fleet Average Daily Time Charter Rates(1)
OBO
Fleet Gross Profit Contribution(1), (3), (5),
(6),
(7)
(7)
(1) The
values in these graphs are based on estimates and assumptions and consequently
may change
(2) Excludes
Non Cash Losses on FFAs
(3) Excludes
Non Cash Gains on FFAs
(4) Gross
Profit Contribution = Revenues - Voyage Expenses - Running Costs
(5) Assumes
a 25% discount for our vessels from the futures market index’s typical vessel
and uses the future
settlement values as of May 8, 2008 to value all “Non-Covered” (days on calendar year multiplied by three OBO
vessels less number of FFAs contracted days discounted by 25%) available days in 2008
settlement values as of May 8, 2008 to value all “Non-Covered” (days on calendar year multiplied by three OBO
vessels less number of FFAs contracted days discounted by 25%) available days in 2008
(6) Assumes
no off hire or time loss under repairs
(7) Assumes
Running Costs of 1Q 08 remain constant for the balance of the year
2007
2008 Est.(6)
Source:
Company
calculations and estimates
calculations and estimates
25.7
M
OBO
Fleet Average TC and Gross Profit Contribution
21
Avg.
1Q
08 TC
08 TC
Avg.
FY ‘08
TC(2), (3)
TC(2), (3)
1Q
08
FY
08(3), (5), (6)
Princess
Marisol
Average Time
Charter Rates(1)
Charter Rates(1)
Princess
Marisol
Gross
Profit Contribution(1), (4)
Profit Contribution(1), (4)
(1) The
values in these graphs are based on estimates and assumptions and consequently
may change
(2) Uses
known COAs and charters until April 08 inclusive and future settlement values as
of May 8, 2008 to value
all “non-chartered” available days between May and December 2008
all “non-chartered” available days between May and December 2008
(3) Includes
15 days off hire of scheduled repairs in May 2008, and 45 days of special survey
during 4Q 08
(4) Gross
Profit Contribution = Revenues - Voyage Expenses - Running Costs
(5) Assumes
Running Costs of 1Q 08 remain constant for the balance of the year
(6) Running
Costs include expenses of the May and the 4Q 08 scheduled repairs
Princess
Marisol
TC and Gross Profit Contribution
22
>
We sold 547.5 days of the 4TC Capesize Routes Index at USD 91,833 per
day.
>
When added to the 180 days previously sold at USD 51,000, we have covered a
total of 727.5 days
in 2009 at an average of USD 81,730 of the index vessel.
in 2009 at an average of USD 81,730 of the index vessel.
>
Assuming a 25% discount, the FFAs sold for 2009 provide cover for 933 days of
our fleet at an
average time charter rate of USD 61,297 per day.
average time charter rate of USD 61,297 per day.
>
Assuming each of our OBO vessels will have to undergo drydocks / special surveys
in 2009, the
total number of available OBO vessels days in 2009 is estimated at 1,005.
total number of available OBO vessels days in 2009 is estimated at 1,005.
>
The FFAs we have sold for 2009 represent 93% of the available capacity of the
OBO fleet under the
assumptions described above.
assumptions described above.
OBO
Fleet Gross Profit Contribution(1), (2), (3), (4),
(5)
(1) The
values in this graph is based on estimates
and assumptions and consequently may change
and assumptions and consequently may change
(2) Gross
Profit Contribution = Revenues - Voyage
Expenses - Running Costs
Expenses - Running Costs
(3) Assumes
a 25% discount for our vessels from the
futures market index’s typical vessel and uses the
future settlement values as of May 8, 2008 to
value all “non-covered” available days in 2008
and 2009
futures market index’s typical vessel and uses the
future settlement values as of May 8, 2008 to
value all “non-covered” available days in 2008
and 2009
(4) Assumes
Running Costs of 1Q 08 remain
constant for the balance of the year
constant for the balance of the year
(5) Includes
corresponding off hire days due to
scheduled dry docks for all our three OBO
vessels
scheduled dry docks for all our three OBO
vessels
Source:
Company calculations and estimates
FFAs
in 2009 contracted to maintain 2008 results
*
Capesize
Orderbook - Dec 2007
Baltic
Forward Assessment - May 8, 2008
|
Period
|
Route
Average
|
|
May/June
2008
|
165,000
|
|
3Q
2008
|
144,813
|
|
4Q
2008
|
141,500
|
|
1Q
2009
|
122,000
|
|
2Q
2009
|
113,313
|
|
Cal
2009
|
101,922
|
|
Cal
2010
|
69,375
|
Source:
Baltic Exchange
4TC
Capesize Routes
Source:
Baltic
Exchange
Exchange
Source:
Howe Robinson dry cargo market annual review 2007
Drybulk
Industry Overview
23
24
>
One vessel, Blue
Monarch,
in operation
>
Remained in lay up during 1Q 2008; dry docked and repaired for European
season
>
Started cruising on 7-day and 14-day cruises in the Aegean Sea on April 23,
2008
>
Second quarter seasonally slower in the Aegean; expected to improve in
peak
months of European summer (July - September, 2008)
months of European summer (July - September, 2008)
>
Overall 2008 performance expected to improve with respect to last
year
Passenger
Business Highlights
25
This
table is provided as a general guide of expected Capital Expenditure under the
assumption that certain long
term strategies are implemented and all assets / ships can be purchased / built at desired prices and delivered
within expected timeframes. This program may change in the future according to the view the Company may
have of any particular part of our business at a given point in time.
term strategies are implemented and all assets / ships can be purchased / built at desired prices and delivered
within expected timeframes. This program may change in the future according to the view the Company may
have of any particular part of our business at a given point in time.
Expected
Expansion CAPEX Program
26
> Offshore
Supply
§ We
expect Offshore Supply
Business revenues to grow
substantially as from 2009
consistent with scheduled
deliveries of new PSVs
Business revenues to grow
substantially as from 2009
consistent with scheduled
deliveries of new PSVs
§ Current
market rate scenario
strong with one vessel on the spot
market and other becoming
available for re-chartering in 3Q 08
strong with one vessel on the spot
market and other becoming
available for re-chartering in 3Q 08
> Ocean
§ Vessels
fixed physically / through
FFAs for the rest of 2008 at time
charter revenues level which we
expect to be substantially higher
than year ended December 31, 2007
FFAs for the rest of 2008 at time
charter revenues level which we
expect to be substantially higher
than year ended December 31, 2007
§ Added
to our fleet a 166,013 dwt
Capesize vessel, Princess Marisol
Capesize vessel, Princess Marisol
> Passenger
§ Currently
employed on 7-day and
14-day cruises in the Aegean Sea;
non core business, now only
reduced to one smaller vessel
14-day cruises in the Aegean Sea;
non core business, now only
reduced to one smaller vessel
Business
Outlook
> River
§ Volumes
on the River Business are
currently growing; freight rate
scenario has been stable / strong
currently growing; freight rate
scenario has been stable / strong
§ Our
total transported cargo is
expected to grow as we expand
capacity
expected to grow as we expand
capacity
§ Significant
growth in fleet expected
as from second half 2009 onwards
as from second half 2009 onwards
27
FINANCIAL
HIGHLIGHTS
28
(1) A
reconciliation of EBITDA and Adjusted EBITDA to US GAAP measures is available on
the Appendix in this presentation
Year-on-Year
Income Statement
29
Year-on-Year
Income Statement (on a per segment basis)
Income Statement (on a per segment basis)
30
(1) A
reconciliation of EBITDA and Adjusted EBITDA to US GAAP measures is available on
the Appendix in this presentation
Year-on-Year
Income Statement (on a per segment basis) (cont’d)
Income Statement (on a per segment basis) (cont’d)
31
Summary
Balance Sheet
32
INVESTMENT
HIGHLIGHTS
High
Growth
Markets
Markets
> Growing River
business with #1 market position
> Rapidly expanding
Offshore Supply business
> Established Ocean
business; additional product carriers
Rapid
Earnings
Growth
Experienced
Management
> Coastal Tankers:
Vessel acquisitions
> Proven management
team with extensive transportation experienceFinancial
Flexibility
> River: Expansion
and fuel efficiency initiatives
> Offshore:
Equivalent of one vessel in 2005 to eight planned vessels for
2009
2009
> Coastal Tankers:
Vessel acquisitions
Unique
Business
Model
Business
Model
> Industrial view of
transportation
> Proven track
record in identifying and developing high growth investment
opportunities in the transportation sector
opportunities in the transportation sector
33
Thank
You
Q
& A
34
(1)
EBITDA consists of net income (loss) prior to deductions for interest expense
and other financial gains
and losses, income taxes, depreciation and amortization of dry dock expense and financial gain (loss) on
extinguishment of debt. We believe that EBITDA is intended to exclude all items that affect results relating to
financing activities. The gains and losses associated with extinguishment of debt are a direct financing item
that affects our results, and therefore should not be included in EBITDA. We do not intend for EBITDA to
represent cash flows from operations, as defined by GAAP (on the date of calculation), and should not be
considered as an alternative to net income (loss) as an indicator of our operating performance or to cash
flows from operations as a measure of liquidity. This definition of EBITDA may not be comparable to similarly
titled measures disclosed by other companies. We have provided EBITDA in this filing because we believe it
provides useful information to investors to measure our performance and evaluate our ability to incur and
service indebtedness.
and losses, income taxes, depreciation and amortization of dry dock expense and financial gain (loss) on
extinguishment of debt. We believe that EBITDA is intended to exclude all items that affect results relating to
financing activities. The gains and losses associated with extinguishment of debt are a direct financing item
that affects our results, and therefore should not be included in EBITDA. We do not intend for EBITDA to
represent cash flows from operations, as defined by GAAP (on the date of calculation), and should not be
considered as an alternative to net income (loss) as an indicator of our operating performance or to cash
flows from operations as a measure of liquidity. This definition of EBITDA may not be comparable to similarly
titled measures disclosed by other companies. We have provided EBITDA in this filing because we believe it
provides useful information to investors to measure our performance and evaluate our ability to incur and
service indebtedness.
Appendix
35
Appendix
(cont’d)
36
Appendix
(cont’d)
37
Appendix
(cont’d)