Item 2.02 Results of Operations and Financial Condition.
On November 6, 2008, we issued a press release for the third quarter ended
September 30, 2008. A copy of the press release is attached as Exhibit 99.1.
The information in this Form 8-K and the attached exhibit shall not be deemed
"filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or
otherwise subject to the liability of that seciton nor shall it be deemed
incorporated by reference to any filing under the Securities Act of 1933, except
as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events.
We define EBITDA as net income (loss) before interest expense, income taxes,
depreciation and amortization. We use EBITDA in our business operations to,
among other things, evaluate the performance of our business, develop budgets
and measure our performance against those budgets. We also believe that analysts
and investors use EBITDA as a supplemental measure to evaluate a company's
overall operating performance. However, EBITDA has material limitations as an
analytical tool and you should not consider it in isolation, or as a substitute
for analysis of our results as reported under GAAP. We find EBITDA a useful tool
to assist us in evaluating performance because it eliminates items related to
capital structure, taxes and non-cash charges. The items that we have eliminated
in determining EBITDA are interest expense, income taxes, depreciation of fixed
assets (which includes rental equipment and property and equipment) and
amortization of intangible assets. However, some of these eliminated items are
significant to our business. For example, (i) interest expense is a necessary
element of our costs and ability to generate revenue because we incur a
significant amount of interest expense related to our outstanding indebtedness;
(ii) payment of income taxes is a necessary element of our costs; and
(iii) depreciation is a necessary element of our costs and ability to generate
revenue because rental equipment is the single largest component of our total
assets and we recognize a significant amount of depreciation expense over the
estimated useful life of this equipment. Any measure that eliminates components
of our capital structure and costs associated with carrying significant amounts
of fixed assets on our balance sheet has material limitations as a performance
measure. In light of the foregoing limitations, we do not rely solely on EBITDA
as a performance measure and also consider our GAAP results. EBITDA is not a
measurement of our financial performance under GAAP and should not be considered
as an alternative to net income, operating income or any other measures derived
in accordance with GAAP. Because EBITDA is not calculated in the same manner by
all companies, it may not be comparable to other similarly titled measures used
by other companies.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release, dated November 6, 2008, announcing earnings for the third
quarter ended September 30, 2008.