© 2011 Kadant Inc. KAI 4Q10 Business Review - February 24, 2011 *
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted
accounting principles (GAAP), we use certain non-GAAP financial measures, including
increases or decreases in revenues excluding the effect of foreign currency translation,
adjusted operating income, earnings before interest, taxes, depreciation, and amortization
(EBITDA), and adjusted EBITDA.
A reconciliation of those numbers to the most directly comparable U.S. GAAP financial
measures is shown in our 2010 fourth quarter earnings press release issued February 23,
2011, which is available in the Investors section of the company’s website at
www.kadant.com under the heading Investors News.
All geographic revenues and bookings data are attributed to regions based on selling
locations. For North America and China, this also approximates revenues and bookings
based on where the equipment is shipped to and installed. Our European geographic data,
however, includes revenues and bookings that may be shipped to and installed outside
Europe, including South America, Africa, the Middle East, and certain countries in
Southeast Asia (excluding China).