Appendix AReconciliation of Net Income to Adjusted EBITDA
1999 2000 2001 2002 2003 2004
Net income (loss) $4.6 $7.8 ($44.8) $11.9 $11.9 $9.0
Depreciation and taxes included in income
(loss) from discontinued operations 2.7 4.7 0.5 0.1 --- 0.2
Increase in loss contract reserve included in
income (loss) from discontinued operations --- --- --- --- 4.5 ---
Reduction in loss contract reserve included in
income (loss) from discontinued operations --- --- --- --- (1.7) ---
Impairment of long-lived assets included in
income (loss) from discontinued operations --- --- 13.2 --- --- ---
Charge for loss contracts included in income
(loss) from discontinued operations --- --- 8.8 --- --- ---
Income tax provision (benefit) 0.5 0.9 (1.9) 0.4 0.9 (3.5)
Interest, net 3.8 4.1 5.7 5.8 3.6 1.7
Depreciation and amortization 3.5 5.8 7.1 4.7 4.1 3.9
Strategic initiative and severance expense --- --- 2.6 --- --- ---
Charge for early retirement of debt --- --- --- 0.7 --- ---
Increase in legal and malpractice reserves --- --- 1.9 --- --- ---
Reduction in loss contract reserve --- --- --- (3.3) --- ---
Charge for settlement of Florida legal matter --- --- --- --- --- 5.2
Increase in reserve for loss contracts --- --- 9.5 --- --- 12.8
Adjusted EBITDA $15.1 $23.3 $2.6 $20.3 $23.3 $29.3