EarthLink Holdings (EarthLink Holdings) EBIT : $49.3 Mil (TTM As of Dec. 2016)

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What is EarthLink Holdings EBIT?

EarthLink Holdings's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2016 was $8.1 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $49.3 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. EarthLink Holdings's annualized ROC % for the quarter that ended in Dec. 2016 was 2.48%. EarthLink Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 was 9.80%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. EarthLink Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2016 was 7.69%.

EarthLink Holdings EBIT Historical Data

The historical data trend for EarthLink Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

EarthLink Holdings EBIT Chart

EarthLink Holdings Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

EBIT

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72.94

-267.22

-20.73

9.50

49.34

EarthLink Holdings Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
EBIT	Get a 7-Day Free Trial															-11.91	14.43	15.65	11.12	8.14

Competitive Comparison of EarthLink Holdings's EBIT

For the Telecom Services subindustry, EarthLink Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

EarthLink Holdings's EV-to-EBIT Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, EarthLink Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where EarthLink Holdings's EV-to-EBIT falls into.

EarthLink Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $49.3 Mil.

EarthLink Holdings (NAS:ELNK) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

EarthLink Holdings's annualized ROC % for the quarter that ended in Dec. 2016 is calculated as:

	ROC % (Q: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2016 )	+	Invested Capital (Q: Dec. 2016 ))	/ count )
=	15.136 * ( 1 - 10.54% )	/	( (547.61	+	544.309)	/ 2 )
=	13.5406656	/	545.9595
=	2.48 %

where

	Invested Capital		(Q: Sep. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	643.64	-	91.518	-	( 58.977	-	max(0, 148.937	-	153.449	+	58.977	))
=	547.61

	Invested Capital		(Q: Dec. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	635.646	-	88.977	-	( 51.529	-	max(0, 148.633	-	150.993	+	51.529	))
=	544.309

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) data.

2. Joel Greenblatt's definition of Return on Capital:

EarthLink Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2016		Q: Dec. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	32.56	/	( ( (333.507 + max(-50.064, 0))	+	(331.119 + max(-44.725, 0)) )	/	2 )
=	32.56	/	( ( 333.507	+	331.119 )	/	2 )
=	32.56	/	332.313
=	9.80 %

where Working Capital is:

	Working Capital		(Q: Sep. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(70.92	+	0	+	23.552)	-	(91.518	+	37.122	+	15.896)
=	-50.064

	Working Capital		(Q: Dec. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(76.765	+	0	+	22.699)	-	(88.977	+	37.051	+	18.161)
=	-44.725

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2016) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

EarthLink Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2016 )
	=	49.336	/	641.820
	=	7.69 %

EarthLink Holdings EBIT Related Terms

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EarthLink Holdings (EarthLink Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » EarthLink Holdings Corp (NAS:ELNK) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.earthlink.net

EarthLink Holdings Corp was incorporated on December 3, 2013 as a Delaware corporation in connection with the Holding Company Reorganization. On December 31, 2013, through the creation of a new holding company structure, EarthLink, Inc. merged with EarthLink, LLC, which became a wholly-owned subsidiary of a new publicly traded parent company, EarthLink Holdings Corp. The Company together with its subsidiaries provides managed network, security and cloud services to business and residential customers in the United States. It also offers data, voice and managed network services to retail and wholesale business customers; and provides Internet access and related value-added services to residential customers. The Company operates a network including more than 29,000 route miles of fiber and 90 metro fiber rings that provide data and voice IP service coverage across more than 90 percent of the United States. The Company operates four segments aligned around distinct customer categories including Enterprise/Mid-Market, Small Business, Carrier/Transport and Consumer. The Company's Enterprise/Mid-Market segment provides data, voice and managed network services to distributed multi-site business customers; Small Business segment provides data, voice and managed network services to small, often single-site business customers; Carrier/Transport segment provides transmission capacity and other data, voice and managed network services to telecommunications carriers and large enterprises; and Consumer Services segment provides nationwide Internet access and related value-added services to residential customers. The Company faces competition from competitors including AT&T, CenturyLink, Verizon, XO and Zayo. It also faces competition from ILECs, CLECs, cable service providers and wireless and satellite service providers. The Company's communications services are subject to varying degrees of federal, state and local regulation.

Executives

Walter Turek	director	911 PANORAMA TRAIL S, ROCHESTER NY 14625
R. Gerard Salemme	director	815 CONNECTICUT AVE., SUITE 610, WASHINGTON DC 20036
Kathy S Lane	director	C/O GILLETTE COMPANY, PRUDENTIAL TOWER BUILDING, BOSTON MA 02199
Julie Ann Shimer	director	18453 LAS CUMBRES ROAD, LOS GATOS CA 95033
Gerard Brossard	officer: EVP, Enterprise & Mid-Market	1170 PEACHTREE STREET, ATLANTA GA 30309
Valerie C Benjamin	officer: SVP, Human Resources	1375 PEACHTREE STREET, ATLANTA GA 30309
Susan D Bowick	director	C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304
Joseph F Eazor	director, officer: Chief Executive Officer	1170 PEACHTREE STREET, SUITE 900, ATLANTA GA 30309
Marc F Stoll	director	C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Manuel W Wisehart	director	909 5TH AVE., UNIT 2101, SEATTLE WA 98164
S Marce Fuller	director	MIRANT CORPORATION, 1155 PERIMETER CENTER WEST, ATLANTA GA 30338
Thomas E Wheeler	director	1250 CONNECTICUT AVE NW, CELLULAR TELECOMMUNICATIONS& INTERNET, WASHINGTON DC 20036
Barbara Dondiego	officer: SVP Chief Marketing Officer	1375 PEACHTREE STREET ATLANTA GA 30309
Nathaniel A Davis	director	1500 ECKINGTON PLACE NE, WASHINGTON DC 20002
Terrell B Jones	director