Why does Contax calculate EBITDA?
EBITDA represents net income (loss) plus financial expense, net, social contribution and income taxes and depreciation and amortization. EBITDA should not be considered as an alternative to net income (loss), as an indicator of Contax operating performance, or as an alternative to cash flow as an indicator of liquidity. The Companys management believes that EBITDA provides a useful measure of its performance that is widely used by investors and analysts to evaluate Contax performance and compare it with other companies in same industry. In making such comparisons, however, you should bear in mind that EBITDA is not a recognized measure under U.S. Accounting Principles (US GAAP) or Brazilian Accounting Principles (BR GAAP) and that it may be defined and calculated differently by different companies.
