Outstanding

Selected Financial Information
(In thousands of Canadian dollars except per share amounts)
The following table includes selected consolidated financial data, prepared in accordance with Canadian Generally Accepted Accounting
Principles (“GAAP”), for each year from 2007 to 2009. All amounts in this Management Discussion and Analysis (“MD&A”) are in
thousands of Canadian dollars, except where otherwise noted. We discuss the factors that caused our results to vary over the past
two years throughout this MD&A.
Income Statement Data
For the years ended December 31
2009 2008 2007
$ % $ % $ %
Revenues 109,693 100 82,744 100 62,941 100
Gross profit 80,000 73 62,594 76 48,652 77
EBITDA 1 39,183 36 29,021 35 19,913 32
Income before income taxes and extraordinary gain 14,608 13 16,037 19 7,958 13
Net income before extraordinary gain 8,321 8 9,726 12 4,159 7
Net income 37,738 34 13,798 17 9,033 14
Earnings per common share before extraordinary gain
Basic 0.49 0.66 0.28
Diluted 0.48 0.65 0.27
Earnings per common share
Basic 2.23 0.93 0.60
Diluted 2.16 0.92 0.59
Balance Sheet Data
As at December 31
2009 2008 2007
$ $ $
Cash, short and long-term marketable securities 105,369 21,342 36,216
Current assets 145,299 61,870 56,995
Total assets 235,395 132,140 98,905
Long-term liabilities 5,750 341 1,875
Shareholders’ equity 194,802 95,348 82,000
The Company has not paid dividends on its Common Shares and does not anticipate declaring any dividends in the near future.
1 EBITDA — Non-GAAP Financial Measures
The term EBITDA (earnings before interest, taxes, depreciation and amortization) does not have any standardized meaning under Canadian GAAP and therefore may
not be comparable to similar measures presented by other companies. The Company defines EBITDA as earnings before interest expense, taxes, amortization, foreign
exchange gains (losses) and unusual items; such as write-downs and gains (losses) on intellectual property and investments. EBITDA is calculated and presented
consistently from period to period and agrees, on a consolidated basis, with the amount disclosed as “Earnings before under-noted items” on the consolidated
statements of income. The Company believes EBITDA to be an important measurement that allows it to assess the operating performance of its ongoing business
on a consistent basis without the impact of amortization expenses. The Company excludes amortization expenses because their level depends substantially on
non‐operating factors such as the historical cost of intangible and capital assets. The Company’s method for calculating EBITDA may differ from that used by other
issuers and, accordingly, this measure may not be comparable to EBITDA used by other issuers.
14 — Paladin Annual Report 2009