SAN ANTONIO, Aug. 4, 2011 /PRNewswire/ -- Harland Clarke
Holdings Corp. ("Harland Clarke Holdings" or the "Company") today
reported results for the second quarter and six months ended
June 30, 2011. In addition to
the Harland Clarke Holdings Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission today, Harland Clarke
Holdings' financial results are also consolidated in the Quarterly
Report on Form 10-Q filed today by M & F Worldwide Corp. ("M
& F Worldwide") (NYSE: MFW), which is the indirect parent
company of Harland Clarke Holdings.
M & F Worldwide will host a conference call to discuss its
second quarter 2011 results on August 11,
2011, at 9:00 a.m. (EDT).
The conference call will be accessible by dialing (800)
230-1059 in the United States and
(612) 234-9960 internationally. For those unable to listen
live, a replay of the call will be available by dialing (800)
475-6701 in the United States and
(320) 365-3844 internationally; Access Code: 210443. The
replay will be available from 11:00 a.m.
(EDT) Thursday, August 11, 2011, through 11:59 p.m. (EDT) Thursday, August 25, 2011.
Second Quarter 2011 Highlights
- Net revenues of $405.7 million,
down $17.6 million, or 4.2%, as
compared to the second quarter of 2010.
- Operating income of $65.0
million, down $11.1 million,
or 14.6%, as compared to the second quarter of 2010, in part due to
costs associated with Scantron's recent acquisitions of
GlobalScholar and Spectrum K12 including investments in growth
initiatives and product development.
- Net income of $33.1 million, up
$5.1 million, or 18.2%, as compared
to the second quarter of 2010. Net income for the second
quarter of 2011 includes the impact of a $13.2 million ($9.5
million after tax) one-time gain on the sale of marketable
securities.
Second Quarter 2011 Performance
Consolidated Results
Consolidated net revenues decreased by $17.6 million, or 4.2%, to $405.7 million for the second quarter of 2011
from $423.3 million for the second
quarter of 2010. The decrease was primarily due to volume
declines in checks and related products and decreased revenues per
unit at the Harland Clarke segment, partially offset by an increase
in revenues at the Harland Financial Solutions segment.
Operating income decreased by $11.1
million, or 14.6%, to $65.0
million for the second quarter of 2011 from $76.1 million for the second quarter of 2010.
The decrease was primarily due to costs incurred at the
Scantron segment related to the acquisitions of KUE Digital Inc.,
KUED Sub I LLC and KUED Sub II LLC (collectively referred to as
"GlobalScholar") in January 2011 and
Spectrum K12 School Solutions, Inc. ("Spectrum K12") in
July 2010 and deferral of revenue, as
further described in Segment Results below. Volume declines
in check and related products and decreased revenues per unit at
the Harland Clarke segment also contributed to the decrease in
operating income. The decrease in operating income at the
Scantron and Harland Clarke segments was partially offset by an
increase in operating income at the Harland Financial Solutions
segment.
Net income increased by $5.1
million, or 18.2%, to $33.1
million for the second quarter of 2011 from $28.0 million for the second quarter of 2010.
The increase was primarily due to the $13.2 million ($9.5
million after tax) one-time gain on the sale of marketable
securities, a lower effective tax rate and decline in interest
expense, partially offset by the decrease in operating income of
$11.1 million ($6.8 million after tax).
Adjusted EBITDA decreased by $13.2
million, or 10.7%, to $110.7
million for the second quarter of 2011 from $123.9 million for the second quarter of 2010.
Adjusted EBITDA is a non-GAAP measure that is defined in the
footnotes to this release and reconciled to net income, the most
directly comparable GAAP measure, in the accompanying financial
tables.
Segment Results
Net revenues for the Harland Clarke segment decreased by
$24.6 million, or 8.0%, to
$282.7 million for the second quarter
of 2011 from $307.3 million for the
second quarter of 2010. The decrease was primarily due to
volume declines in check and related products and decreased
revenues per unit, partially offset by revenues from the addition
of new clients. Additionally, the second quarter of 2010
included a one-time payment resulting from the loss of a client.
Operating income for the Harland Clarke segment decreased by
$2.5 million, or 3.8%, to
$63.8 million for the second quarter
of 2011 from $66.3 million for the
second quarter of 2010. The decrease in operating income was
primarily due to volume declines and decreased revenues per unit,
partially offset by labor cost reductions resulting from
restructuring activities and lower depreciation and travel
expenses. Operating income for the second quarters of 2011
and 2010 includes restructuring costs of $0.7 million and $1.6
million, respectively.
Net revenues for the Harland Financial Solutions segment
increased by $5.2 million, or 7.4%,
to $75.3 million for the second
quarter of 2011 from $70.1 million
for the second quarter of 2010. The increase was primarily
due to increases in software revenues and early termination fees
and revenues from the Parsam Technologies, LLC ("Parsam")
acquisition completed in December
2010, partially offset by decreases in maintenance revenues
and service bureau fees. Operating income for the Harland
Financial Solutions segment increased by $6.8 million, or 59.6%, to $18.2 million for the second quarter of 2011 from
$11.4 million for the second quarter
of 2010. The increase in operating income was due to
increased revenues, a decrease in accrued contingent consideration
related to the Parsam acquisition, a decrease in compensation
expense related to an incentive agreement from a prior acquisition
and a decrease in professional fees, partially offset by costs
associated with the business acquired in the Parsam acquisition.
Operating income for the second quarter of 2011 includes
$0.3 million for restructuring costs.
Operating income for the second quarter of 2010 includes
charges of $0.4 million for
compensation expense related to an incentive agreement from an
acquisition and $0.2 million for
restructuring costs.
Net revenues for the Scantron segment decreased by $1.2 million, or 2.4%, to $47.9 million for the second quarter of 2011 from
$49.1 million for the second quarter
of 2010. The decrease was primarily due to a decline in sales
of a survey solution to assist financial institutions with the
implementation of new federal regulations in 2010 regarding
overdraft services to customers, partially offset by an increase in
field services installations and revenues from the acquisitions of
GlobalScholar and Spectrum K12. Net revenues for the second
quarter of 2011 included charges of $2.4
million for non-cash fair value acquisition accounting
adjustments to deferred revenue related to the GlobalScholar and
Spectrum K12 acquisitions. In addition, the current
accounting for revenue recognition for the recent acquisitions
results in a substantial deferral of revenue into future periods
for amounts that are billed and collected, while costs related to
these sales, with the exception of direct implementation costs, are
recognized in the current period. Deferred revenue related to
GlobalScholar and Spectrum K12 increased by $7.7 million during the second quarter of 2011.
Operating income for the Scantron segment decreased by $14.1 million to an operating loss of
$12.3 million for the second quarter
of 2011 from operating income of $1.8
million for the second quarter of 2010. The decrease
in operating income was primarily due to costs associated with
Spectrum K12 and GlobalScholar, including $4.4 million of intangible asset amortization
expense related to these acquisitions in the second quarter of
2011, the impact of the revenue acquisition accounting adjustments,
as well as investments in growth initiatives and product
development costs. Operating income for the second quarters
of 2011 and 2010 includes restructuring costs of $2.7 million and $5.2
million, respectively.
First Half 2011 Performance
Consolidated Results
Consolidated net revenues decreased by $43.7 million, or 5.1%, to $809.6 million for the first half of 2011 from
$853.3 million for the first half of
2010. The decrease was primarily due to volume declines in
checks and related products and decreased revenues per unit at the
Harland Clarke segment, partially offset by an increase in revenues
at the Harland Financial Solutions segment.
Operating income decreased by $32.5
million, or 20.4%, to $126.8
million for the first half of 2011 from $159.3 million for the first half of 2010.
The decrease was primarily due to costs incurred at the
Scantron segment related to the acquisitions of GlobalScholar in
January 2011 and Spectrum K12 in
July 2010 and deferral of revenue, as
further described in Segment Results below. Volume declines in
check and related products and decreased revenues per unit at the
Harland Clarke segment also contributed to the decrease in
operating income. The decrease in operating income at the
Scantron and Harland Clarke segments was partially offset by an
increase in operating income at the Harland Financial Solutions
segment.
Net income decreased by $3.7
million, or 6.1%, to $56.5
million for the first half of 2011 from $60.2 million for the first half of 2010.
The decrease was primarily due to the $32.5 million ($19.8
million after tax) decrease in operating income, partially
offset by a gain of $13.2 million
($9.5 million after tax) relating to
the sale of marketable securities, a lower effective tax rate and a
decline in interest expense.
Adjusted EBITDA decreased by $34.4
million, or 13.7%, to $217.0
million for the first half of 2011 from $251.4 million for the first half of 2010.
Adjusted EBITDA is a non-GAAP measure that is defined in the
footnotes to this release and reconciled to net income, the most
directly comparable GAAP measure, in the accompanying financial
tables.
Segment Results
Net revenues for the Harland Clarke segment decreased by
$54.9 million, or 8.9%, to
$562.1 million for the first half of
2011 from $617.0 million for the
first half of 2010. The decrease was primarily due to volume
declines in check and related products and decreased revenues per
unit, partially offset by revenues from the addition of new
clients. Additionally, the first half of 2010 included a
one-time payment resulting from the loss of a client.
Operating income for the Harland Clarke segment decreased by
$12.3 million, or 9.3%, to
$119.6 million for the first half of
2011 from $131.9 million for the
first half of 2010. The decrease in operating income
was primarily due to volume declines and decreased revenues per
unit, partially offset by labor cost reductions resulting from
restructuring activities and lower depreciation and travel
expenses. Operating income for the first half of both 2011
and 2010 includes restructuring costs of $3.3 million.
Net revenues for the Harland Financial Solutions segment
increased by $7.9 million, or 5.7%,
to $147.3 million for the first half
of 2011 from $139.4 million for the
first half of 2010. The increase was primarily due to
increases in software revenues, revenues from the Parsam
acquisition completed in December
2010 and increases in early termination fees, partially
offset by decreases in maintenance revenues and service bureau
fees. Operating income for the Harland Financial Solutions
segment increased by $9.4 million, or
41.2%, to $32.2 million for the first
half of 2011 from $22.8 million for
the first half of 2010. The increase in operating income was
primarily due to increased revenues, a decrease in accrued
contingent consideration related to the Parsam acquisition, a
decrease in compensation expense related to an incentive agreement
from a prior acquisition and a decrease in professional fees,
partially offset by costs associated with the business acquired in
the Parsam acquisition. Operating income for the first half
of 2011 includes $0.3 million for
restructuring costs. Operating income for the first half of
2010 includes charges of $0.8 million
for compensation expense related to an incentive agreement from an
acquisition and $0.4 million for
restructuring costs.
Net revenues for the Scantron segment increased by $0.3 million, or 0.3%, to $100.5 million for the first half of 2011 from
$100.2 million for the first half of
2010. The increase was primarily due to the acquisitions of
GlobalScholar and Spectrum K12 and an increase in field services
installations, substantially offset by a decline in sales of a
survey solution to assist financial institutions with the
implementation of new federal regulations in 2010 regarding
overdraft services to customers and declines in forms and systems
hardware sales. Net revenues for the first half of 2011
included charges of $5.3 million for
non-cash fair value acquisition accounting adjustments to deferred
revenue related to the GlobalScholar and Spectrum K12 acquisitions.
In addition, the current accounting for revenue recognition
for the recent acquisitions results in a substantial deferral of
revenue into future periods for amounts that are billed and
collected, while costs related to these sales, with the exception
of direct implementation costs, are recognized in the current
period. Deferred revenue related to GlobalScholar and
Spectrum K12 increased by $10.8
million during the first half of 2011. Operating
income for the Scantron segment decreased by $27.8 million to an operating loss of
$16.7 million for the first half of
2011 from operating income of $11.1
million for the first half of 2010. The decrease in
operating income was primarily due to costs associated with
Spectrum K12 and GlobalScholar, including $8.8 million of intangible asset amortization
expense related to these acquisitions in the first half of 2011,
the impact of the revenue acquisition accounting adjustments, as
well as investments in growth initiatives and product development
costs. Operating income for the first half of 2011 and 2010
also includes restructuring costs of $2.4
million and $6.5 million,
respectively.
About Harland Clarke Holdings
Harland Clarke Holdings has three business segments, which are
operated by Harland Clarke, Harland Financial Solutions and
Scantron. Harland Clarke is a provider of checks and related
products, direct marketing services and customized business and
home office products. Harland Financial Solutions provides
technology products and related services to financial institutions.
Scantron is a leading provider of data management solutions and
related services to educational, healthcare, commercial and
governmental entities worldwide including testing and assessment
solutions, patient information collection and tracking, and survey
services.
Forward-Looking Statements
This press release contains forward-looking statements that
reflect management's current assumptions and estimates of future
performance and economic conditions, which are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are subject to a number of
risks and uncertainties, many of which are beyond Harland Clarke
Holdings' control. All statements other than statements of
historical facts included in this press release, including those
regarding Harland Clarke Holdings' strategy, future operations,
financial position, estimated revenues, projected costs,
projections, prospects, plans and objectives of management, are
forward-looking statements. When used in this press release, the
words "believes," "anticipates," "plans," "expects," "intends,"
"estimates" or similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. All forward-looking
statements speak only as of the date of this press release.
Although Harland Clarke Holdings believes that its plans,
intentions and expectations reflected in or suggested by the
forward-looking statements made in this press release are
reasonable, such plans, intentions or expectations may not be
achieved. In addition to factors described in Harland Clarke
Holdings' Securities and Exchange Commission filings and others,
the following factors may cause Harland Clarke Holdings' actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements contained in this press
release include: (1) Harland Clarke Holdings' substantial
indebtedness; (2) difficult conditions in financial markets,
the downturn in and potential worsening of general economic and
market conditions and the impact of the credit crisis;
(3) covenant restrictions under Harland Clarke Holdings'
indebtedness that may limit its ability to operate its business and
react to market changes; (4) the maturity of the principal
industry in which the Harland Clarke segment operates and trends in
the paper check industry, including a faster than anticipated
decline in check usage due to increasing use of alternative payment
methods, a decline in consumer confidence and/or checking account
openings and other factors, and our ability to grow
non-check-related product lines; (5) consolidation among or
failure of financial institutions, decreased spending by financial
institutions on our products and services and other adverse changes
among the large clients on which Harland Clarke Holdings depends,
resulting in decreased revenues and/or pricing pressure;
(6) the ability to retain Harland Clarke Holdings' clients;
(7) the ability to retain Harland Clarke Holdings' key
employees and management; (8) lower than expected cash flow
from operations; (9) significant increases in interest rates;
(10) intense competition in all areas of Harland Clarke
Holdings' business; (11) interruptions or adverse changes in
Harland Clarke Holdings' supplier relationships, technological
capacity, intellectual property matters, and applicable laws;
(12) decreases to educational budgets as a result of the
continued general economic downturn and the resulting impact on
Scantron's customers; (13) variations in contemplated brand
strategies, business locations, management positions and other
business decisions in connection with integrating acquisitions;
(14) Harland Clarke Holdings' ability to successfully
integrate and manage recent acquisitions as well as future
acquisitions; (15) Harland Clarke Holdings' ability to achieve
vendor-specific objective evidence for software businesses we have
acquired or will acquire, which could affect the timing of
recognition of revenue; (16) Harland Clarke Holdings' ability
to implement any or all components of its business strategy or
realize all of its expected cost savings or synergies from
acquisitions; (17) acquisitions otherwise not being successful
from a financial point of view, including, without limitation, due
to any difficulties with Harland Clarke Holdings servicing its debt
obligations; and (18) weak economic conditions and declines in
the financial performance of our businesses that may result in
material impairment charges.
You should read carefully the factors described in Harland
Clarke Holdings' Annual Report on Form 10-K for the year ended
December 31, 2010 for a description
of risks that could, among other things, cause actual results to
differ from these forward looking statements.
Non-GAAP Financial Measures
In this release, Harland Clarke Holdings presents certain
adjusted financial measures that are not calculated according to
generally accepted accounting principles in the United States ("GAAP"). These non-GAAP
financial measures are designed to complement the GAAP financial
information presented in this release because management believes
they present information regarding Harland Clarke Holdings that
management believes is useful to investors. The non-GAAP financial
measures presented should not be considered in isolation from or as
a substitute for the comparable GAAP financial measure.
EBITDA represents net income before interest income and expense,
income taxes, depreciation and amortization (other than
amortization related to contract acquisition payments). Harland
Clarke Holdings presents EBITDA because it believes it is
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in Harland Clarke
Holdings' industries.
Harland Clarke Holdings believes EBITDA provides useful
information with respect to its ability to meet its future debt
service, capital expenditures, working capital requirements and
overall operating performance, although EBITDA should not be
considered as a measure of liquidity. In addition, Harland Clarke
Holdings utilizes EBITDA when interpreting operating trends and
results of operations of its business.
Harland Clarke Holdings also uses EBITDA for the following
purposes: Harland Clarke Holdings' senior credit facilities use
EBITDA (with additional adjustments) to measure compliance with
financial covenants such as debt incurrence. Harland Clarke
Holdings' executive compensation is based on EBITDA (with
additional adjustments) performance measured against targets.
EBITDA is also widely used by Harland Clarke Holdings and others in
its industry to evaluate and value potential acquisition
candidates. EBITDA has limitations as an analytical tool, and you
should not consider it in isolation or as a substitute for analysis
of our results as reported under GAAP. See below for a description
of these limitations. Because of these limitations, EBITDA should
not be considered as a measure of discretionary cash available to
Harland Clarke Holdings to invest in the growth of its
business.
In addition, in evaluating EBITDA, you should be aware that in
the future Harland Clarke Holdings may incur expenses such as those
excluded in calculating it. Harland Clarke Holdings' presentation
of this measure should not be construed as an inference that its
future results will be unaffected by unusual or non-recurring
items.
EBITDA has limitations as an analytical tool, and you should not
consider it in isolation or as a substitute for analysis of our
results as reported under GAAP. Some of these limitations are:
- it does not reflect Harland Clarke Holdings' cash expenditures
and future requirements for capital expenditures or contractual
commitments;
- it does not reflect changes in, or cash requirements for,
Harland Clarke Holdings' working capital needs;
- it does not reflect the significant interest expense or the
cash requirements necessary to service interest or principal
payments on Harland Clarke Holdings' debt;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA does not reflect any cash
requirements for such replacements;
- it is not adjusted for all non-cash income or expense items
that are reflected in Harland Clarke Holdings' statements of cash
flows; and
- other companies in Harland Clarke Holdings' industries may
calculate EBITDA differently from Harland Clarke Holdings, limiting
its usefulness as a comparative measure.
Because of these limitations, EBITDA should not be considered as
a measure of discretionary cash available to invest in the growth
of Harland Clarke Holdings' business or as a measure of cash that
will be available to Harland Clarke Holdings to meet its
obligations. You should compensate for these limitations by relying
primarily on Harland Clarke Holdings' GAAP results and using EBITDA
only supplementally.
Harland Clarke Holdings presents Adjusted EBITDA as a
supplemental measure of its performance. Harland Clarke Holdings
prepares Adjusted EBITDA by adjusting EBITDA to reflect the impact
of a number of items it does not consider indicative of Harland
Clarke Holdings' ongoing operating performance. Such items include,
but are not limited to, restructuring costs, asset impairment
charges, deferred purchase price compensation related to an
acquisition and certain acquisition accounting adjustments. You are
encouraged to evaluate each adjustment and the reasons Harland
Clarke Holdings considers them appropriate for supplemental
analysis. As an analytical tool, Adjusted EBITDA is subject to all
of the limitations applicable to EBITDA. In addition, in evaluating
Adjusted EBITDA, you should be aware that in the future, Harland
Clarke Holdings may incur expenses, including cash expenses,
similar to the adjustments in this presentation. Harland Clarke
Holdings' presentation of Adjusted EBITDA should not be construed
as an inference that its future results will be unaffected by
unusual or non-recurring items.
- tables to follow -
Harland
Clarke Holdings Corp. and Subsidiaries
Consolidated
Statements of Income
(in
millions)
|
|
|
(unaudited)
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Product revenues, net
|
$ 325.1
|
$ 340.1
|
$ 649.1
|
$ 690.3
|
|
Service revenues, net
|
80.6
|
83.2
|
160.5
|
163.0
|
|
Total net revenues
|
405.7
|
423.3
|
809.6
|
853.3
|
|
Cost of products sold
|
197.6
|
197.1
|
394.7
|
403.7
|
|
Cost of services
provided
|
39.2
|
44.1
|
78.9
|
85.0
|
|
Total cost of
revenues
|
236.8
|
241.2
|
473.6
|
488.7
|
|
Gross profit
|
168.9
|
182.1
|
336.0
|
364.6
|
|
Selling, general and
administrative expenses
|
99.2
|
98.4
|
200.9
|
194.5
|
|
Asset impairment
charges
|
1.0
|
0.6
|
2.3
|
0.6
|
|
Restructuring costs
|
3.7
|
7.0
|
6.0
|
10.2
|
|
Operating income
|
65.0
|
76.1
|
126.8
|
159.3
|
|
Interest income
|
0.1
|
0.2
|
0.2
|
0.4
|
|
Interest expense
|
(27.4)
|
(30.3)
|
(54.6)
|
(60.2)
|
|
Other income, net
|
13.2
|
0.1
|
13.2
|
0.1
|
|
Income before income
taxes
|
50.9
|
46.1
|
85.6
|
99.6
|
|
Provision for income
taxes
|
17.8
|
18.1
|
29.1
|
39.4
|
|
Net income
|
$
33.1
|
$
28.0
|
$
56.5
|
$
60.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Harland
Clarke Holdings Corp. and Subsidiaries
Business
Segment Information
(in
millions)
|
|
|
(unaudited)
|
|
|
Three Months
Ended
June 30,
|
Six Months
Ended
June 30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Net revenues
|
|
|
|
|
|
Harland Clarke
segment
|
$ 282.7
|
$ 307.3
|
$ 562.1
|
$ 617.0
|
|
Harland Financial Solutions
segment
|
75.3
|
70.1
|
147.3
|
139.4
|
|
Scantron segment
|
47.9
|
49.1
|
100.5
|
100.2
|
|
Eliminations
|
(0.2)
|
(3.2)
|
(0.3)
|
(3.3)
|
|
Total net revenues
|
$
405.7
|
$
423.3
|
$
809.6
|
$
853.3
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Harland Clarke
segment
|
$ 63.8
|
$ 66.3
|
$ 119.6
|
$ 131.9
|
|
Harland Financial Solutions
segment
|
18.2
|
11.4
|
32.2
|
22.8
|
|
Scantron segment
|
(12.3)
|
1.8
|
(16.7)
|
11.1
|
|
Corporate
|
(4.7)
|
(3.4)
|
(8.3)
|
(6.5)
|
|
Total operating
income
|
$
65.0
|
$
76.1
|
$
126.8
|
$
159.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to
EBITDA and EBITDA to Adjusted EBITDA (in millions):
|
|
|
(unaudited)
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Net income
|
$ 33.1
|
$ 28.0
|
$ 56.5
|
$ 60.2
|
|
Interest expense, net
|
27.3
|
30.1
|
54.4
|
59.8
|
|
Provision for income
taxes
|
17.8
|
18.1
|
29.1
|
39.4
|
|
Depreciation and
amortization
|
40.6
|
39.5
|
81.0
|
79.8
|
|
EBITDA
|
118.8
|
115.7
|
221.0
|
239.2
|
|
Adjustments:
|
|
|
|
|
|
Restructuring costs
(a)
|
3.7
|
7.0
|
6.0
|
10.2
|
|
Acquisition-related deferred
compensation and changes in contingent consideration (b)
|
(2.4)
|
0.4
|
(5.1)
|
0.8
|
|
Asset impairment charges
(c)
|
1.0
|
0.6
|
2.3
|
0.6
|
|
Impact of purchase accounting
adjustments (d)
|
2.8
|
0.2
|
6.0
|
0.6
|
|
Gain on sale of marketable
securities (e)
|
(13.2)
|
--
|
(13.2)
|
--
|
|
Adjusted EBITDA
|
$
110.7
|
$
123.9
|
$
217.0
|
$
251.4
|
|
|
|
|
|
|
|
|
|
____________
(a) Reflects restructuring costs, including adjustments,
recorded in accordance with GAAP, consisting primarily of
severance, post-closure facility expenses and other related
expenses.
(b) Reflects charges accrued under deferred purchase price
agreements and changes in estimates of contingent consideration
related to acquisitions.
(c) Reflects non-cash impairment charges from the write-down of
assets.
(d) Reflects the non-cash fair value deferred revenue
adjustments related to acquisition accounting.
(e) Reflects a one-time gain on the sale of marketable
securities.
SOURCE Harland Clarke Holdings Corp.