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Sensata Technologies Holding N.V.'s SEC Filings

S-1/A
SENSATA TECHNOLOGIES HOLDING PLC filed this Form S-1/A on 03/09/2010
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63.1% during the three months ended September 30, 2009 due to several factors including the leverage effect associated with higher sales and fixed manufacturing expenses, a reduction in certain costs associated with moving manufacturing lines between manufacturing sites as part of our integration activities and a favorable change in the mix of products sold.

 

Net income/(loss) during the three months ended December 31, 2009, September 30, 2009 and June 30, 2009 was $13.9 million, $(54.0) million and $22.6 million, respectively. Net income/(loss) during the three months ended December 31, 2009, September 30, 2009 and June 30, 2009 included a net gain/(loss) of $14.9 million, $(35.0) million and $(62.5) million, respectively, associated with the translation of our Euro-denominated debt. Additionally, net loss during the three months ended June 30, 2009 included a net gain of $120.1 million related to the repurchases of outstanding Senior Notes and Senior Subordinated Notes. These items were recorded in Currency translation gain/(loss) and other, net in the consolidated statement of operations.

 

Reconciliation of Quarterly Non-GAAP Financial Measures

 

We define EBITDA as net income/(loss) before interest, taxes, depreciation and amortization. We believe that EBITDA is useful to investors in evaluating our operating performance because it is widely used by investors to measure a company’s operating performance without regard to certain items, such as interest expense, income tax expense and depreciation and amortization.

 

Our management uses EBITDA:

 

   

as a measure of operating performance;

 

   

for planning purposes, including the preparation of our annual operating budget;

 

   

to allocate resources to enhance the financial performance of our business;

 

   

to evaluate the effectiveness of our business strategies; and

 

   

in communications with our board of directors concerning our financial performance.

 

We understand that, although EBITDA is used by investors and securities analysts in their evaluation of companies, EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results of operations as reported under U.S. GAAP.

 

EBITDA should not be considered as an alternative to net income, profit from operations or any other measure of financial performance calculated and presented in accordance with U.S. GAAP. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate.

 

The following unaudited table summarizes the calculations of EBITDA and provides a reconciliation from net income/(loss), the most directly comparable financial measure presented in accordance with U.S. GAAP, for the quarterly periods presented:

 

    (unaudited)
    For the three months ended
    March 31,
2008
    June 30,
2008
    September 30,
2008
  December 31,
2008
    March 31,
2009
    June 30,
2009
  September 30,
        2009        
    December 31,
2009
(Amounts in thousands)          

Net income/(loss)

  $ (126,894   $ (27,948   $ 72,523   $ (52,212   $ (10,199   $ 22,621   $ (54,035   $ 13,932

Provision for income taxes

    15,890        19,722        16,613     1,306        7,641        10,876     16,648        7,882

Interest expense, net

    50,803        50,315        48,995     46,224        42,160        36,270     36,472        35,114

Depreciation and amortization

    52,304        49,790        48,852     49,177        49,876        49,051     50,138        52,443
                                                         

EBITDA (unaudited)

  $ (7,897   $ 91,879      $ 186,983   $ 44,495      $ 89,478      $ 118,818   $ 49,223      $ 109,371
                                                         

 

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