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76 Dick’s Sporting Goods, Inc. | 2010 Annual Report
Reconciliation of Non-GAAP Financial Measures
This Annual Report to Stockholders contains certain non-GAAP financial information. The adjusted financial information is considered
non-GAAP and is not preferable to GAAP financial information; however, the Company believes this information provides additional
measures of performance that the Company’s management and investors can use to compare core operating results between reporting
periods. The Company has provided reconciliations below for EBITDA, ROIC, net income and earnings per share adjusted to exclude a
litigation settlement charge, Golf Galaxy store closing costs, merger and integration costs, non-cash impairment charges and a gain on
sale of asset.
EBITDA
EBITDA should not be considered as an alternative to net income or any other GAAP measure of performance or liquidity and may not
be comparable to similarly titled measures reported by other companies. EBITDA is a key metric used by the Company that provides a
measurement of profitability that eliminates the effect of changes resulting from financial decisions, tax regulations and capital
investments.
2010 2009 2008
2010 Adjusted 2009 Adjusted 2008 Adjusted
(dollars in thousands)
Net income (loss) $ 182,077 $ 198,396 $ 135,359 $ 141,427 $ (39,865) $ 132,724
Provision for income taxes 115,434 126,312 87,817 91,862 53,686 87,968
Interest expense 14,016 14,016 4,543 4,543 17,430 17,430
Depreciation and amortization 110,394 110,394 100,948 98,470 90,732 88,340
EBITDA $ 421,921 $ 449,118 $ 328,667 $ 336,302 $ 121,983 $ 326,462
GAAP EBITDA % increase over prior year 28% 169%
Adjusted EBITDA % increase over prior year 34% 3%
Results adjusted for
Add: Add: Golf Galaxy store closing
Golf Galaxy Litigation costs and litigation
EBITDA Fiscal 2010 (Adjusted) 1 Fiscal 2010 store closing costs settlement charge settlement charge
Net income $ 182,077 $ 9,826 $ 6,493 $ 198,396
Provision for income taxes 115,434 6,550 4,328 126,312
Interest expense 14,016 – – 14,016
Depreciation and amortization 110,394 – – 110,394
EBITDA $ 421,921 $ 16,376 $ 10,821 $ 449,118
1 Presents EBITDA adjusted for Golf Galaxy store closing costs and litigation settlement charge.
Add: Results adjusted
Merger and for merger and
EBITDA Fiscal 2009 (Adjusted) 2 Fiscal 2009 integration costs integration costs
Net income $ 135,359 $ 6,068 $ 141,427
Provision for income taxes 87,817 4,045 91,862
Interest expense 4,543 - 4,543
Depreciation and amortization 100,948 (2,478) 98,470
EBITDA $ 328,667 $ 7,635 $ 336,302
2 Presents EBITDA adjusted for merger and integration costs.
Results adjusted
for merger and
integration costs,
non-cash
Add: Add: Non- Less: impairment
Merger and cash impairment Gain on charges and gain
EBITDA Fiscal 2008 (Adjusted) 2 Fiscal 2008 integration costs charges sale of asset on sale of asset
Net (loss) income $ (39,865) $ 12,341 $ 161,662 $ 1,414 $ 132,724
Provision for income taxes 53,686 3,536 31,688 942 87,968
Interest expense 17,430 - - - 17,430
Depreciation and amortization 90,732 (2,392) - - 88,340
EBITDA $ 121,983 $ 13,485 $ 193,350 $ 2,356 $ 326,462
3 Presents EBITDA adjusted for merger and integration costs, non-cash impairment charges and gain on sale of asset.