Dick's Sporting Goods 2014 Annual Report Download - page 106

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80 // DICK’S SPORTING GOODS // 2014 ANNUAL REPORT
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In addition to reporting the Company’s financial results in accordance with generally accepted accounting principles (“GAAP”),
the Company believes that certain non-GAAP financial information provides users of the Company’s financial information with
additional useful information in evaluating operating performance between reporting periods. These measures should be viewed
as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP.
The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by
other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be
comparable to similar measures provided by other companies. The Company has provided reconciliations below for EBITDA
(Adjusted), ROIC (Adjusted), net income and earnings per share adjusted to exclude certain events and fiscal 2012 net sales
adjusted for the 53rd week. All fiscal years presented include 52 weeks of operations except fiscal 2012, which includes 53 weeks.
ADJUSTED EBITDA
Adjusted EBITDA should not be considered as an alternative to net income or any other generally accepted accounting principles
measure of performance or liquidity. Adjusted EBITDA, as the Company has calculated it, may not be comparable to similarly titled
measures reported by other companies. Adjusted EBITDA is a key metric used by the Company that provides a measurement
of profitability that eliminates the effect of changes resulting from financing decisions, tax regulations, capital investments,
and certain non-recurring, infrequent or unusual items.
2014 2013 2012
2014 Adjusted 2013 Adjusted 2012 Adjusted
(Dollars in thousands)
Net income $ 344,198 $ 347,760 $ 337,598 $ 337,985 $ 290,709 $ 318,345
Provision for income taxes 211,816 214,191 208,509 211,661 199,116 203,850
Interest expense 3,215 3,215 2,929 2,929 6,034 6,034
Depreciation and amortization 179,431 165,109 154,928 147,047 125,096 125,096
EBITDA $ 738,660 $ 730,275 $ 703,964 $ 699,622 $ 620,955 $ 653,325
GAAP EBITDA % increase over prior year 5% 13%
Adjusted EBITDA % increase over prior year 4% 7%
Results adjusted for
Less: Add: Golf gain on sale of
Gain on sale restructuring asset and golf
EBITDA Fiscal 2014 (Adjusted) 1 Fiscal 2014 of asset charges restructuring charges
Net income $ 344,198 $ (8,657) $ 12,219 $ 347,760
Provision for income taxes 211,816 (5,771) 8,146 214,191
Interest expense 3,215 - - 3,215
Depreciation and amortization 179,431 - (14,322) 165,109
EBITDA $ 738,660 $ (14,428) $ 6,043 $ 730,275
1 Presents EBITDA adjusted for a gain on sale of asset and golf restructuring charges.
Results adjusted for
Less: recovery of previously
Recovery of previously Add: Asset impaired asset and asset
EBITDA Fiscal 2013 (Adjusted) 2 Fiscal 2013 impaired asset impairment charge impairment charge
Net income $ 337,598 $ (4,342) $ 4,729 $ 337,985
Provision for income taxes 208,509 - 3,152 211,661
Interest expense 2,929 - - 2,929
Depreciation and amortization 154,928 - (7,881) 147,047
EBITDA $ 703,964 $ (4,342) $ - $ 699,622
2 Presents EBITDA adjusted for the recovery of a previously impaired asset and an asset impairment charge.
Add: Results adjusted for
Impairment of available- impairment of available-
EBITDA Fiscal 2012 (Adjusted) 3 Fiscal 2012 for-sale investments for-sale investments
Net income $ 290,709 $ 27,636 $ 318,345
Provision for income taxes 199,116 4,734 203,850
Interest expense 6,034 - 6,034
Depreciation and amortization 125,096 - 125,096
EBITDA $ 620,955 $ 32,370 $ 653,325
3 Presents EBITDA adjusted for an impairment of available-for-sale investments.