<PAGE> 1
EXHIBIT 99.1
RACI HOLDING, INC. AND SUBSIDIARIES
RECONCILIATION OF INCOME FROM OPERATIONS TO EBITDA (A)
(Dollars in Millions)
<TABLE>
<CAPTION>
---------------------------------------------------------
Unaudited
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Quarter Ended Year-To-Date Ended
September 30, September 30,
--------------------------- ---------------------------
2000 1999 2000 1999
----------- ------------ ------------ -----------
<S> <C>
Net Income from Operations (A) $ 9.3 $ 10.8 $ 16.1 $ 18.0
Interest Expense 4.5 3.6 11.8 11.4
Provision for Income Taxes 5.4 6.0 10.1 11.5
Depreciation and Amortization (B) 4.2 4.1 12.2 11.9
Other Noncash Charges (C) 0.2 0.5 0.6 4.8
Nonrecurring and Restructuring Expense (D) 0.2 -- 0.2 --
Special Payment -- -- 6.1 --
----------- ----------- ------------ ------------
Total 14.5 14.2 41.0 39.6
----------- ----------- ------------ ------------
EBITDA $ 23.8 $ 25.0 $ 57.1 $ 57.6
=========== =========== ============ ============
</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 $1.2 and loss on early
extinguishment of debt of $0.3 for the year-to-date period ended September
30, 2000 and $1.3 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 $0.3 for loss on disposal of assets and a $0.3
for executive pension accrual for the nine months ended September 30, 2000
and a $3.1 stock subscription accrual, $1.3 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 September 30, 2000 consisted of $0.2 non-recurring
professional fees, related to the establishment of the subsidiaries and
year-to-date September 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.
