Convergys : Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA - Q2 2018

CONVERGYS CORPORATION Reconciliation of Net Income to Adjusted EBITDA

Three Months Ended

Six Months Ended

Net Income

$13.9

$39.8

(65)%

$43.7

$77.7

(44)%

(In millions)
Depreciation and Amortization	28.1	34.4
Interest expense	4.1	4.3
Income tax expense	8.1	6.3
EBITDA (a non-GAAP measure)	$54.2	$84.8
Company-wide restructuring	7.4	-
CEO transition costs	1.7	-
Transaction related expenses	10.2	-
Integration related expenses	-	1.1
Adjusted EBITDA (a non-GAAP measure)	$73.5	$85.9
EBITDA Margin	8.3%
Adjusted EBITDA Margin	11.3%

June 30,	%
2018 2017	Change
(18)%
(5)%
29 %
(36)%
100 %
100 %
100 %
(100)%
(14)%

%
2018	2017	Change
58.9	69.0	(15)%
8.6	9.6	(10)%
7.7	13.2	(42)%
$118.9	$169.5	(30)%
18.1	12.8	41 %
9.0	-	100 %
10.2	-	100 %
-	2.6	(100)%
$156.2	$184.9	(16)%
12.3%	9.0%
12.5%	11.8%

June 30,

12.0%13.1%

The Company presents the non-GAAP financial measures EBITDA and Adjusted EBITDA because management uses these measures to monitor and evaluate the performance of the business and believes the presentation of these measures enhances the investors' ability to analyze trends in the business and evaluate the Company's underlying performance relative to other companies in the industry.

These non-GAAP measures should not be considered in isolation or as a substitute for income from continuing operations, net of tax or other income statement data prepared in accordance with GAAP and our presentation of these measures may not be comparable to similarly-titled measures used by other companies. Management uses both these non-GAAP measures and the GAAP measure, income from continuing operations, net of tax, in evaluation of its underlying performance. These non-GAAP measures should be considered supplemental in nature and should not be considered in isolation or be construed as being more important than comparable GAAP measures.