Neiman Marcus 2009 Annual Report Download - page 26

Table of Contents
(Successor) (Predecessor)
(in millions, except sales per
square foot)
Fiscal
year
ended
July 31,
2010
Fiscal
year
ended
August 1,
2009
Fiscal
year
ended
August 2,
2008 (1)
Fiscal
year
ended
July 28,
2007
Forty-three
weeks
ended
July 29,
2006
Nine
Weeks
ended
October 1,
2005
OTHER OPERATING DATA
Capital expenditures $ 58.7 $ 101.5 $ 183.5 $ 147.9 $ 138.2 $ 25.6
Depreciation expense $ 141.8 $ 150.8 $ 148.4 $ 136.5 $ 107.0 $ 19.2
Rent expense and related occupancy
costs $ 85.0 $ 85.4 $ 92.6 $ 87.5 $ 69.3 $ 12.5
Change in comparable revenues (7) (0.1)% (21.4)% 1.7% 6.7% 6.8% 9.8%
Number of full-line stores open at
period end 43 42 41 40 38 37
Sales per square foot $ 466 $ 475 $ 634(8) $ 638 $ 508 $ 103
NON-GAAP FINANCIAL
MEASURE
EBITDA (9) $ 446.9 $ (429.4)(2) $ 687.0(3) $ 685.6(4) $ 425.3 $ 89.5(5)
Adjusted EBITDA (9) $ 446.9 $ 273.8 $ 685.8 $ 686.9 $ 425.3 $ 113.0
(1) Fiscal year 2008 consists of the fifty-three weeks ended August 2, 2008. All other fiscal years consist of fifty-two weeks.
(2) For fiscal year 2009, operating loss 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) Loss 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).
(7) 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 and 2) revenues from our discontinued operations (Gurwitch Products, L.L.C. and Kate Spade
LLC). 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.
(8) Sales per square foot for fiscal year 2008 are based on revenues for the fifty-two weeks ended July 26, 2008.
(9) For an explanation and reconciliation of EBITDA and Adjusted EBITDA, see Item 7, "Management's Discussion and
Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measure-EBITDA and Adjusted
EBITDA."
23