5. SUMMARY FINANCIAL DATA The following summary historical pro forma and projected financial data should be read in conjunction with the financial statements and “Management's Discussion and Analysis of KLC’s Pro Forma Results of Operations” presented elsewhere in this Memorandum. See also “Non-GAAP Financial Measures” elsewhere in this Memorandum for a discussion of the derivation and limitations of EBITDA, Adjusted EBITDA and Adjusted EBITDAR. The historical information is pro forma for the effects of our acquisition of KinderCare in January 2005 and for the separation of our business into operating (KLC OpCo) and property (KLC PropCo) in November 2005, as if those transactions and related financing had occurred on January 1, 2004. The rental income received by KLC PropCo in all periods presented is primarily comprised of lease payments from KLC OpCo. Our pro forma results for KLC were not prepared in conformity with Article 11 of Regulation S-X of the SEC (which would not, among other limitations, permit a 2004 pro forma presentation after completion of our 2005 financial statements). In addition, by presenting a pro forma comparison, this section does not include a comparison of KLC’s historical GAAP consolidated operating results or segment information that would be required by Item 3-03 of Regulation S-X of the SEC. In addition, the non-GAAP financial information presented below does not comply with Item 10(e) of Regulation S-K or Regulation G of the SEC. For further information, please see KLC's GAAP financial statements and those of KinderCare included in this Memorandum. The pro forma presentation below is not shown with adjustments to historical financial statements. Instead, it is based on a “ground up” combination of corporate level expenditures (overhead and capital expenditures) and internal financial statements derived from a center-by-center build up of KLC’s results. The primary reasons for the presentation based on internal reports are different fi