By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements and readers are cautioned that the foregoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and are expressly qualified by this cautionary statement. Unless otherwise required by law, we do not intend, or assume any obligation, to update these forward-looking statements.
RECONCILIATION OF NON-GAAP MEASURES
This Management's Discussion and Analysis ("MD&A") contains references to certain financial measures, including some that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or "GAAP") and may not be comparable to similar measures presented by other corporations or entities. These financial measures are identified and defined below:
"EBITDA", "EBITDA per share", "Adjusted EBITDA", and "Adjusted EBITDA per share" are measures of our operating profitability. EBITDA provides an indication of the results generated by our principal business activities prior to how these activities are financed, assets are amortized or how the results are taxed in various jurisdictions. In addition, Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation. Stock-based compensation, a component of employee remuneration, can vary significantly with changes in the price of our common shares. As such, Adjusted EBITDA provides improved continuity with respect to the comparison of our operating results over a period of time. EBITDA and Adjusted EBITDA are derived from the consolidated statements of operations, comprehensive income and retained earnings. EBITDA per share and Adjusted EBITDA per share are derived by dividing EBITDA and Adjusted EBITDA by the basic weighted average number of shares.
They are calculated as follows:
Three months ended Year ended December 31, December 31,($000s) 2012 2011 2012 2011----------------------------------------------------------------------------Net earnings 4,124 6,031 42,804 33,562Add back: Income taxes 706 2,578 11,208 14,187 Net Finance charges 5,238 8,505 13,357 28,191 Amortization 17,797 16,401 62,509 62,856----------------------------------------------------------------------------EBITDA 27,865 33,515 129,878 138,796----------------------------------------------------------------------------Add back: Stock-based compensation expense 5,425 3,162 12,258 7,679----------------------------------------------------------------------------Adjusted EBITDA 33,290 36,677 142,136 146,475----------------------------------------------------------------------------Weighted average number of shares 52,741 48,569 49,690 48,569----------------------------------------------------------------------------EBITDA per share 0.53 0.69 2.61 2.86----------------------------------------------------------------------------Adjusted EBITDA per share 0.63 0.76 2.86 3.02----------------------------------------------------------------------------
