Neiman Marcus 2008 Annual Report Download - page 26

Table of Contents
(Successor) (Predecessor)
(in millions, except sales
per square foot)
Fiscal
year
ended
August 1,
2009
Fiscal
year
ended
August 2,
2008
Fiscal
year
ended
July 28,
2007
Forty-three
weeks
ended
July 29,
2006
Nine
weeks
ended
October 1,
2005
Fiscal
year
ended
July 30,
2005
OTHER OPERATING DATA
Capital expenditures $ 101.5 $ 183.5 $ 147.9 $ 138.2 $ 25.6 $ 190.3
Depreciation expense $ 150.8 $ 148.4 $ 136.5 $ 107.0 $ 19.2 $ 103.6
Rent expense and related occupancy
costs $ 85.4 $ 92.6 $ 87.5 $ 69.3 $ 12.5 $ 72.3
Change in comparable revenues (8) (21.4)% 1.7% 6.7% 6.8%
9.8% 9.8%
Number of stores open at period end 42 41 40 38 37 36
Sales per square foot $ 475 $ 634(9) $ 638 $ 508 $ 103 $ 577
NON-GAAP FINANCIAL
MEASURE
EBITDA (10) $ (429.4)(2)$ 687.0(3) $ 685.6(4) $ 425.3 $ 89.5(5) $ 501.1(6)
Adjusted EBITDA (10) $ 273.8 $ 685.8 $ 686.9 $ 425.3 $ 113.0 $ 510.2
(1) The selected financial data as of July 30, 2005 reflect adjustments to the Predecessor's audited consolidated financial
statements to reclassify the operations of Gurwitch Products, L.L.C. and Kate Spade LLC as discontinued operations.
(2) For fiscal year 2009, operating earnings and EBITDA include pretax impairment charges related to 1) $329.7 million for the
writedown to fair value of goodwill, 2) $343.2 million for the writedown to fair value of the net carrying value of tradenames
and 3) $30.3 million for the writedown to fair value of the net carrying value of certain long-lived assets.
(3) For fiscal year 2008, operating earnings and EBITDA include 1) $32.5 million of other income related to a pension
curtailment gain as a result of our decision to freeze certain Pension and SERP benefits as of December 31, 2007, offset by 2)
$31.3 million pretax impairment charge related to the writedown to fair value of the Horchow tradename.
(4) For fiscal year 2007, operating earnings and EBITDA include 1) $11.5 million pretax impairment charge related to the
writedown to fair value of the Horchow tradename, offset by 2) $4.2 million of other income we received in connection with
the merger of Wedding Channel.com, in which we held a minority interest, and The Knot and 3) $6.0M of other income
related to aged, non-escheatable gift cards.
(5) For the nine weeks ended October 1, 2005, operating earnings and EBITDA include $23.5 million of transaction and other
costs incurred in connection with the Acquisition. These costs consist primarily of $4.5 million of accounting, investment
banking, legal and other costs associated with the Acquisition and a $19.0 million non-cash charge for stock compensation
resulting from the accelerated vesting of Predecessor stock options and restricted stock in connection with the Acquisition.
(6) For fiscal year 2005, operating earnings and EBITDA include a $15.3 million pretax loss related to the disposition of Chef's
Catalog in November 2004 and a $6.2 million pretax gain related to the sale of our credit card portfolio.
(7) (Loss) earnings from discontinued operations, reflects the operations of Kate Spade LLC (prior to its sale in December 2006)
and Gurwitch Products, L.L.C. (prior to its sale in July 2006).
(8) Comparable revenues include 1) revenues derived from our retail stores open for more than fifty two weeks, including stores
that have been relocated or expanded and 2) revenues from our Direct Marketing operation. Comparable revenues exclude 1)
revenues of closed stores, 2) revenues from our discontinued operations (Gurwitch Products, L.L.C. and Kate Spade LLC)
and 3) revenues of our previous Chef's Catalog operations (sold in November 2004). The calculation of the change in
comparable revenues for fiscal year 2008 is based on revenues for the fifty two weeks ended July 26, 2008 compared to
revenues for the fifty two weeks ended July 28, 2007.
(9) Sales per square foot for fiscal year 2008 is based on revenues for the fifty two weeks ended July 26, 2008.
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