Non-GAAP Financial Measures

In our analysis of our results of operations, we use certain non-GAAP financial measures. Adjusted EBITDA consists of net income before interest expense, income taxes, depreciation and amortization and transformational and restructuring related expenses. Adjusted EPS consists of diluted net income per common and common equivalent share adjusted for amortization expense, stock-based compensation expense and transformation and restructuring related expenses. Certain periods may also include additional adjustments that are only relevant to those periods.

We believe these measures, in addition to income from operations, net income and diluted net income per common and common equivalent share, provide investors with useful supplemental information to compare and understand our underlying business trends and performance across reporting periods on a consistent basis. These measures should be considered a supplement to, and not a substitute for, financial performance measures determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In addition, since these non-GAAP measures are not determined in accordance with GAAP, they are susceptible to varying calculations and may not be comparable as presented to other similarly titled measures of other companies.