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EXHIBIT 99.1
RACI HOLDING, INC. AND SUBSIDIARIES
RECONCILIATION OF INCOME FROM OPERATIONS TO EBITDA (A)
(Dollars in Millions)
<TABLE>
<CAPTION>
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Unaudited
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Quarter Ended June 30, Year-To-Date Ended June 30,
----------------------- --------------------------
2000 1999 2000 1999
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Net Income from Operations (A) $ 1.0 $ 2.7 $ 6.8 $ 7.2
Interest Expense 4.4 3.8 7.3 7.8
Provision for Income Taxes 0.7 2.5 4.7 5.5
Depreciation and Amortization (B) 4.0 3.9 8.0 7.8
Other Noncash Charges (C) 0.3 3.9 0.4 4.3
Nonrecurring and Restructuring Expense (D) -- 0.2 -- --
Special Payment 6.1 -- 6.1 --
----------- ----------- ---------- ----------
Total 15.5 14.3 26.5 25.4
----------- ----------- ---------- ----------
EBITDA $ 16.5 $ 17.0 $ 33.3 $ 32.6
=========== =========== ========== ==========
</TABLE>
Notes:
(A) EBITDA as presented may not be comparable to similar measures reported
by other companies. Generally, EBITDA is defined to consist of net income
(loss), adjusted to exclude cash interest expense, income tax expense,
depreciation, amortization, noncash expenses and charges, gain or loss on
sale or write-off of assets and extraordinary, unusual or nonrecurring
gains, losses, charges or credits, and amounts paid as permitted dividends
that are treated as compensation expense ("special payment"). EBITDA is
presented to facilitate a more complete analysis of the Company's financial
performance, by adding back non-cash and non- recurring items to operating
income, as an indicator of the Company's ability to generate cash to
service debt and other fixed obligations. Investors should not rely on
EBITDA as an alternative to operating income or cash flows, as determined
in accordance with generally accepted accounting principles, as an
indicator of the Company's operating performance, liquidity or ability to
meet cash needs. See "Management's Discussion and Analysis of Financial
Condition and Results of Operations" for further discussion of the
Company's operating income and cash flows.
(B) Excludes amortization of deferred financing costs of $0.8 and loss on early
extinguishment of debt of $0.3 for the year-to-date period ended June 30,
2000 and $0.8 amortization of deferred financing costs and loss on early
extinquishment of debt of $0.2 for the comparable year-to-date period,
which is included in interest expense.
(C) Noncash charges consist of a $0.2 for loss on disposal of assets and a $0.2
for executive pension accrual for the six months ended June 30, 2000 and a
$3.1 stock subscription accrual, $0.8 pension accrual and $0.4 for loss on
disposal of assets for comparable 1999.
(D) Nonrecurring and restructuring expenses excluded in calculating EBITDA for
year-to-date June 30, 1999 consisted of a $0.2 nonrecurring professional
fee, related to a proposed transaction that was not consummated, offset by
$0.2 write-down of restructuring accrual.
