Dick's Sporting Goods 2004 Annual Report Download - page 60

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notes to consolidated financial statements continued
58
Regulation G Reconciliations
This Annual Report to Stockholders contains certain non-GAAP financial information. The following tables set forth reconciliations of that
non-GAAP financial information to the most directly comparable GAAP information for the stated periods. This non-GAAP financial
information includes EBITDA and ROIC.
EBITDA means earnings before interest, taxes, depreciation and amortization, and should not be considered as an alternative to net
income or any other generally accepted accounting principles measure of performance or liquidity. EBITDA, as we have defined it, 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 financing decisions, tax regulations, and capital investments.
ROIC means return on invested capital. ROIC is expressed as a percentage which is calculated as follows: net income plus adjustments
divided by average total capital for the stated periods. Average total capital includes stockholders’ equity, plus debt and capital leases
plus capitalized operating leases (operating lease rent expense multiplied by a factor of 8). ROIC, as we have defined it, may not be
comparable to similarly titled measures reported by other companies. ROIC is a key metric used by the Company in evaluating the
efficiency of its use of capital including debt and lease commitments.
EBITDA
EBITDA 2004 2003 2002 2001 2000 1999
Net income $ 68,905 $ 52,408 $ 38,137 $ 23,241 $ 8,411 $ 10,962
Discontinued operations –– – – 7,304 3,514
Provision for income taxes 45,936 34,938 25,425 15,494 10,476 9,650
Interest expense, net 8,009 1,831 2,864 6,241 6,963 3,520
Depreciation and amortization 37,621 17,554 14,420 12,082 9,425 8,662
EBITDA $ 160,471 $ 106,731 $ 80,846 $ 57,058 $ 42,579 $ 36,308
Add: Results Excluding
Merger Integration Less: Merger Integration
Year Ended and Store Gain on Sale and Gain on Sale
EBITDA (Proforma) Fiscal 20041January 29, 2005 Closing Costs of Investment of Investment
Net income $ 68,905 $ 12,202 $ 6,589 $ 74,518
Provision for income taxes 45,936 8,134 4,392 49,678
Interest expense, net 8,009 – – 8,009
Depreciation and amortization 37,621 (2,844) – 34,777
EBITDA $ 160,471 $ 17,492 $ 10,981 $ 166,982
1Presents proforma EBITDA adjusted for merger integration and store closing costs and gain on sale of investment.