EBITDA is a non-GAAP measure used by the management of Restoque and reconciled with the financial statements based on the guidance set forth in CVM Official Letter No. 1/2007, consisting of the net income (loss) adjusted by the net financial result, income and social contribution taxes, depreciation and amortization. EBITDA is a Brazilian or U.S. GAAP measurement, does not represent cash flows for the periods presented and should not be considered alternatives to net income as an indicator of Restoque operating performance or as an alternative to cash flows as an indicator of liquidity. EBITDA does not have a standardized meaning and Restoque definition of EBITDA may not be comparable to EBITDA as used by other companies.
Although the EBITDA does not provide, according to the Brazilian Accounting Principles (BR GAAP) or the U.S. Accounting Principles (US GAAP), measures of the operational cash flows, Restoque management uses EBITDA to measure its operating performance. Additionally, the Company management believes that disclosure of EBITDA can provide useful information to investors, financial analysts and the public in their review of the Company’s operating performance and its comparison to the operating performance of other companies in the same industry and other industries.