SAN ANTONIO, Nov. 4, 2010 /PRNewswire/ -- Harland Clarke
Holdings Corp. ("Harland Clarke Holdings" or the "Company") today
reported results for the third quarter and nine months ended
September 30, 2010. 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
third quarter 2010 results on November 11,
2010, at 9:00 a.m. (EST).
The conference call will be accessible by dialing (800)
230-1096 in the United States and
(612) 332-0226 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: 174921. The
replay will be available from 11:00 a.m.
(EST) Thursday, November 11, 2010, through 11:59 p.m. (EST) Thursday, November 25, 2010.
Third Quarter 2010 Highlights
- Net revenues of $411.5 million,
down $14.2 million, or 3.3%, as
compared to the third quarter of 2009.
- Operating income of $69.2
million, down $17.3 million,
or 20.0%, as compared to the third quarter of 2009.
- Net income of $27.6 million, down
$6.1 million, or 18.1%, as compared
to the third quarter of 2009.
Third Quarter 2010 Performance
Consolidated Results
Consolidated net revenues decreased by $14.2 million, or 3.3%, to $411.5 million for the third quarter of 2010 from
$425.7 million for the third quarter
of 2009. The decrease was primarily due to volume declines
and decreased revenues per unit at the Harland Clarke segment,
partially offset by revenues from Harland Clarke's 2009
acquisitions of Protocol IMS and SubscriberMail, as well as
increased revenues at the Harland Financial Solutions and Scantron
segments.
Operating income decreased by $17.3
million, or 20.0%, to $69.2
million for the third quarter of 2010 from $86.5 million for the third quarter of 2009.
The decrease was primarily due to volume declines and
decreased revenues per unit at the Harland Clarke segment, a
$5.9 million increase in selling,
general and administrative expenses due in part to acquisitions and
investments in growth initiatives at the Harland Clarke and
Scantron segments, as well as a $1.7
million increase in non-cash asset impairment charges. These
changes were partially offset by labor cost reductions resulting
from restructuring activities and increased revenues at the Harland
Financial Solutions segment.
Net income decreased by $6.1
million, or 18.1%, to $27.6
million for the third quarter of 2010 from $33.7 million for the third quarter of 2009.
The decrease in net income was primarily due to the
$17.3 million ($10.6 million after tax) decline in operating
income, partially offset by a $4.8
million ($2.9 million after
tax) decrease in net interest expense as compared to the third
quarter of 2009.
Adjusted EBITDA decreased by $15.1
million, or 11.5%, to $116.3
million for the third quarter of 2010 from $131.4 million for the third quarter of 2009.
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
$15.1 million, or 5.0%, to
$289.9 million for the third quarter
of 2010 from $305.0 million for the
third quarter of 2009. The decrease was primarily due to
volume declines in check and related products, the loss of a client
and a decrease in revenues per unit, partially offset by revenues
from the Protocol IMS and SubscriberMail acquisitions and the
addition of new clients. Revenues from new client additions more
than offset lost revenues from client losses. Operating income for
the Harland Clarke segment decreased by $18.4 million, or 26.5%, to $51.0 million for the third quarter of 2010 from
$69.4 million for the third quarter
of 2009. The decrease in operating income was primarily due
to volume declines, decreased revenues per unit, costs in
connection with investments in growth initiatives, a $1.7 million increase in non-cash asset
impairment charges primarily related to the abandonment of a
development project, and an increase in amortization expense
resulting from the reclassification of the Harland Clarke tradename
from an indefinite-lived to a definite-lived intangible asset in
the fourth quarter of 2009. These changes were partially offset by
labor cost reductions and decreases in depreciation and occupancy
expenses, primarily resulting from restructuring activities.
Operating income for the third quarters of 2010 and 2009 includes
restructuring costs of $4.2 million
and $3.4 million, respectively.
Net revenues for the Harland Financial Solutions segment
increased by $3.0 million, or 4.4%,
to $70.9 million for the third
quarter of 2010 from $67.9 million
for the third quarter of 2009. Increases in maintenance, outsourced
host processing, term license and other license revenues were
partially offset by a decrease in hardware sales. Operating
income for the Harland Financial Solutions segment increased by
$4.3 million, or 45.3%, to
$13.8 million for the third quarter
of 2010 from $9.5 million for the
third quarter of 2009. The increase in operating income was
primarily due to the increased revenues, labor cost reductions
resulting from restructuring activities, declines in general
overhead expenses and a reduction in compensation expense related
to an incentive agreement, partially offset by an increase in
selling expenses and amortization expense resulting from the
reclassification of the Harland Clarke tradename from an
indefinite-lived to a definite-lived intangible asset in the fourth
quarter of 2009. Operating income for the third quarter of
2010 includes charges of $0.3 million
for compensation expense related to an incentive agreement from an
acquisition and $0.2 million for
restructuring costs. Operating income for the third quarter
of 2009 includes charges of $0.8
million for compensation expense related to an incentive
agreement from an acquisition and $0.9
million for restructuring costs.
Net revenues for the Scantron segment increased by $0.4 million, or 0.8%, to $53.3 million for the third quarter of 2010 from
$52.9 million for the third quarter
of 2009. The increase was primarily due to increased revenues from
services for the education market, sales of a newly introduced
solution that assists financial institutions with the
implementation of recent changes to federal regulations regarding
overdraft services provided to financial institution customers, and
the acquisition of Spectrum K12 School Solutions in July 2010. These increases were partially offset
by declines in hardware, service maintenance and forms revenues.
Operating income for the Scantron segment decreased by
$3.2 million, or 28.8%, to
$7.9 million for the third quarter of
2010 from $11.1 million for the third
quarter of 2009. The decrease in operating income was
primarily due to volume declines, costs in connection with
investments in growth initiatives in 2010 and a $0.6 million increase in restructuring costs,
partially offset by labor cost reductions resulting from
restructuring activities. Operating income for the third
quarter of 2010 includes restructuring costs of $0.6 million.
Year-to-date 2010 Performance
Consolidated Results
Consolidated net revenues decreased by $25.9 million, or 2.0%, to $1,264.8 million for the nine months ended
September 30, 2010 from $1,290.7 million for the nine months ended
September 30, 2009. The decrease was
primarily due to volume declines at the Harland Clarke and Scantron
segments, partially offset by revenues from Harland Clarke's 2009
acquisitions of Protocol IMS and SubscriberMail, as well as
increased revenues at the Harland Financial Solutions segment.
Operating income increased by $12.7
million, or 5.9%, to $228.5
million for the nine months ended September 30, 2010 from $215.8 million for the nine months ended
September 30, 2009. The
increase was primarily due to a $13.8
million decrease in restructuring costs and labor cost
reductions resulting from restructuring activities, partially
offset by volume declines at the Harland Clarke and Scantron
segments and a $2.3 million increase
in non-cash asset impairment charges.
Net income decreased by $20.8
million, or 19.2%, to $87.8
million for the nine months ended September 30, 2010 from $108.6 million for the nine months ended
September 30, 2009. The
decrease in net income was primarily due to a $62.0 million ($38.3
million after tax) gain on early extinguishment of debt
related to the purchase of $116.2
million principal amount of the Company's Senior Notes in
the nine months ended September 30,
2009. The decrease in net income due to this
non-recurring gain was partially offset by improvements in net
interest expense, which declined $18.1
million ($11.0 million after
tax), and operating income, which increased $12.7 million ($7.7
million after tax), as compared to the nine months ended
September 30, 2009.
Adjusted EBITDA decreased by $1.2
million, or 0.3%, to $367.7
million for the nine months ended September 30, 2010 from $368.9 million for the nine months ended
September 30, 2009. 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
$19.5 million, or 2.1%, to
$906.9 million for the nine months
ended September 30, 2010 from
$926.4 million for the nine
months ended September 30, 2009. The
decrease was primarily due to volume declines in check and related
products and the loss of a client, partially offset by revenues
from the Protocol IMS and SubscriberMail acquisitions, the addition
of new clients, a one-time payment resulting from the loss of a
client, and increased revenues per unit. Revenues from new client
additions more than offset lost revenues from client losses.
Operating income for the Harland Clarke segment increased by
$10.3 million, or 6.0%, to
$182.9 million in the 2010 period
from $172.6 million in the 2009
period. The increase in operating income was primarily due to
a $14.3 million decrease in
restructuring costs, labor cost reductions and decreases in
depreciation and occupancy expenses, primarily resulting from
restructuring activities, a one-time payment resulting from the
loss of a client, and increased revenues per unit. These changes
were partially offset by volume declines, an increase in
amortization expense of $4.2 million
resulting from the reclassification of the Harland Clarke tradename
from an indefinite-lived to a definite-lived intangible asset in
the fourth quarter of 2009 and a $2.3
million increase in non-cash asset impairment charges.
Operating income for the nine months ended September 30, 2010 and 2009 includes
restructuring costs of $7.5 million
and $21.8 million, respectively.
Net revenues for the Harland Financial Solutions segment
increased by $3.5 million, or
1.7%, to $210.3 million for the
nine months ended September 30, 2010
from $206.8 million for the nine
months ended September 30, 2009.
Increases in term license, maintenance, and outsourced host
processing revenues and early termination fees were partially
offset by decreases in other license revenues and hardware sales.
Operating income for the Harland Financial Solutions segment
increased by $8.5 million, or 30.2%,
to $36.6 million in the 2010 period
from $28.1 million in the 2009
period. The increase in operating income was primarily due to
a $3.5 million decrease in
restructuring costs, a decrease in compensation expense related to
an incentive agreement from an acquisition, labor costs reductions
resulting from restructuring activities, and increased revenues,
partially offset by increases in amortization expense resulting
from the reclassification of the Harland Clarke tradename from an
indefinite-lived to a definite-lived intangible asset in the fourth
quarter of 2009, selling expenses, and foreign currency transaction
losses. Operating income for the nine months ended
September 30, 2010 includes charges
of $1.1 million for compensation
expense related to an incentive agreement from an acquisition and
$0.6 million for restructuring costs.
Operating income for the nine months ended September 30, 2009 includes charges of
$2.9 million for compensation expense
related to an incentive agreement from an acquisition and
$4.1 million for restructuring
costs.
Net revenues for the Scantron segment decreased by $4.5 million, or 2.8%, to $153.5 million for the nine months ended
September 30, 2010 from $158.0 million for the nine months ended
September 30, 2009. The decrease was
primarily due to declines in forms, hardware and service
maintenance revenues, partially offset by increases in revenues
from services for the education market, sales of a newly introduced
solution that assists financial institutions with the
implementation of recent changes to federal regulations regarding
overdraft services provided to financial institution customers, and
the acquisition of Spectrum K12 School Solutions in July 2010. Operating income for the
Scantron segment decreased by $5.6
million, or 22.8%, to $19.0
million in the 2010 period from $24.6
million in the 2009 period. The decrease in operating
income was primarily due to a $4.0
million increase in restructuring costs, volume declines,
and costs in connection with investments in growth initiatives in
2010, partially offset by labor cost reductions resulting from
restructuring activities and decreases in integration expenses.
Operating income for the nine months ended September 30, 2010 and 2009 includes
restructuring costs of $7.1 million
and $3.1 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.
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
future acquisitions; (15) 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;
(16) 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 (17) 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, 2009 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 an important measure of its performance and 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, gain on early extinguishment
of debt, restructuring costs, intangible 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
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
Product revenues, net
|
$ 325.4
|
$ 353.7
|
$ 1,015.8
|
$1,067.2
|
|
Service revenues, net
|
86.1
|
72.0
|
249.0
|
223.5
|
|
Total net revenues
|
411.5
|
425.7
|
1,264.8
|
1,290.7
|
|
Cost of products sold
|
193.0
|
208.1
|
596.9
|
640.0
|
|
Cost of services
provided
|
46.2
|
36.3
|
131.0
|
114.3
|
|
Total cost of
revenues
|
239.2
|
244.4
|
727.9
|
754.3
|
|
Gross profit
|
172.3
|
181.3
|
536.9
|
536.4
|
|
Selling, general and
administrative expenses
|
96.2
|
90.3
|
290.7
|
291.4
|
|
Asset impairment
charges
|
1.9
|
0.2
|
2.5
|
0.2
|
|
Restructuring costs
|
5.0
|
4.3
|
15.2
|
29.0
|
|
Operating income
|
69.2
|
86.5
|
228.5
|
215.8
|
|
Interest income
|
0.1
|
0.2
|
0.5
|
0.8
|
|
Interest expense
|
(27.7)
|
(32.6)
|
(87.9)
|
(106.3)
|
|
Gain on early extinguishment of
debt
|
—
|
0.2
|
—
|
62.0
|
|
Other income, net
|
—
|
—
|
0.1
|
—
|
|
Income before income
taxes
|
41.6
|
54.6
|
141.2
|
172.3
|
|
Provision for income
taxes
|
14.0
|
20.9
|
53.4
|
63.7
|
|
Net income
|
$
27.6
|
$
33.7
|
$
87.8
|
$
108.6
|
|
|
|
|
|
|
Harland
Clarke Holdings Corp. and Subsidiaries
Business
Segment Information
(in
millions)
|
|
|
(unaudited)
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
Net revenues
|
|
|
|
|
|
Harland Clarke
segment
|
$ 289.9
|
$ 305.0
|
$ 906.9
|
$ 926.4
|
|
Harland Financial Solutions
segment
|
70.9
|
67.9
|
210.3
|
206.8
|
|
Scantron segment
|
53.3
|
52.9
|
153.5
|
158.0
|
|
Eliminations
|
(2.6)
|
(0.1)
|
(5.9)
|
(0.5)
|
|
Total net revenues
|
$
411.5
|
$
425.7
|
$
1,264.8
|
$
1,290.7
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
Harland Clarke
segment
|
$ 51.0
|
$ 69.4
|
$ 182.9
|
$ 172.6
|
|
Harland Financial Solutions
segment
|
13.8
|
9.5
|
36.6
|
28.1
|
|
Scantron segment
|
7.9
|
11.1
|
19.0
|
24.6
|
|
Corporate
|
(3.5)
|
(3.5)
|
(10.0)
|
(9.5)
|
|
Total operating
income
|
$
69.2
|
$
86.5
|
$
228.5
|
$
215.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to
EBITDA and EBITDA to Adjusted EBITDA (in
millions):
|
|
|
(unaudited)
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
Net income
|
$ 27.6
|
$ 33.7
|
$ 87.8
|
$ 108.6
|
|
Interest expense, net
|
27.6
|
32.4
|
87.4
|
105.5
|
|
Provision for income
taxes
|
14.0
|
20.9
|
53.4
|
63.7
|
|
Depreciation and
amortization
|
38.7
|
39.7
|
118.5
|
120.8
|
|
EBITDA
|
107.9
|
126.7
|
347.1
|
398.6
|
|
Adjustments:
|
|
|
|
|
|
Restructuring costs
(a)
|
5.0
|
4.3
|
15.2
|
29.0
|
|
Deferred purchase price
compensation (b)
|
0.5
|
0.8
|
1.3
|
2.9
|
|
Asset impairment charges
(c)
|
1.9
|
–
|
2.5
|
–
|
|
Gain on early extinguishment of
debt (d)
|
–
|
(0.5)
|
–
|
(62.0)
|
|
Impact of acquisition accounting
adjustments (e)
|
1.0
|
0.1
|
1.6
|
0.4
|
|
Adjusted EBITDA
|
$
116.3
|
$
131.4
|
$
367.7
|
$
368.9
|
|
|
|
|
(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 required to be
recorded as compensation expense resulting from
acquisitions.
(c) Reflects non-cash
impairment charges from the write-down of assets.
(d) Reflects gains from
the purchase of Harland Clarke Holdings bonds at less than their
principal amount.
(e) Reflects the non-cash
fair value deferred revenue adjustments related to acquisition
accounting.
|
|
|
|
|
|
|
|
|
SOURCE Harland Clarke Holdings Corp.