For the first nine months of 2009, the Company reported EBITDA of $178.0 million compared to $166.4 million for the same period in 2008, an increase of $11.6 million. Included as part of compensation expense in the first nine months of 2009 and 2008 was $2.1 million and $2.2 million, respectively, of non-cash stock-based compensation expense. Excluding this non-cash expense, Adjusted EBITDA was $180.1 million for the first nine months of 2009, an $11.5 million, or 6.8%, increase over the Adjusted EBITDA of $168.6 million for the first nine months of 2008. Adjusted EBITDA improved to 13.8% as a percentage of revenue in the first nine months of 2009 compared to 13.3% in the first nine months of 2008.

For the first nine months of 2009, the Company reported net income of $56.9 million; a $10.2 million, or 22.0%, increase over the net income of $46.7 million for the same period in 2008. Net income, as a percentage of revenue, was 4.4% in the first nine months of 2009 compared to 3.7% in the same period in 2008.

For the first nine months of 2009, the Company generated net cash from operations of $77.8 million, incurred capital expenditures of $20.4 million, and paid approximately $20.0 million in principal on outstanding debt.

For the first nine months of 2009, the Company opened 18 new domestic Company-owned stores, 9 new Company-owned stores in Canada, 67 net new international franchise locations and 122 new franchise store-within-a-store Rite Aid locations.

EBITDA and adjusted EBITDA are non-GAAP financial measures within the meaning of the Securities and Exchange Commission's Regulation G. Management has included this information because it believes it represents a more effective means by which to measure the Company's operating performance. This press release contains a reconciliation of the non-GAAP measure to the financial measure calculated and presented in accordance with GAAP which is most directly comparable to the applicable non-GAAP financial measure.

SOURCE General Nutrition Centers, Inc.