Non-GAAP Measures
Accelleron uses certain non-GAAP financial measures and alternative performance measures that are not required by, or presented in accordance with, US GAAP. Accelleron presents non-GAAP financial measures and alternative performance measures because they are used by management in monitoring the business and because Accelleron believes that these non-GAAP financial measures and similar measures are frequently used by securities analysts, investors and other interested parties in evaluating companies in its industry.
The definitions of the non-GAAP financial measures and alternative performance measures are as follows:
| Performance measure | Definition |
|---|---|
Organic revenue growth (on a constant currency basis) | Revenue growth at constant currency and adjusted for M&A-related effects. The organic growth rate measures growth on a constant currency basis |
Operational EBIT | Operational EBIT represents income from operations excluding costs related to acquisition and divestment, one-time items in income statements, non-operational integration costs, special non-operational projects, restructuring costs and temporary unrealized timing differences in the context of foreign exchange transactions (FX) |
Operational EBITDA | Operational EBITDA represents Operational EBIT excluding depreciation and amortization |
Operational EBITA | Operational EBITA represents Operational EBIT excluding acquisition-related amortization |
Operational EBITA margin | Operational EBITA as a percentage of revenues |
Free cash flow | Net cash provided by operating activities adjusted for net investments in property, plant and equipment and intangible assets |
Free cash flow conversion | Free cash flow divided by reported net income, expressed as a percentage |
Net leverage | Interest-bearing liabilities (including finance leases) net of cash and cash equivalents, divided by last twelve months operational EBITDA |