Dick's Sporting Goods 2008 Annual Report Download - page 74

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Reconciliation of Non-GAAP Financial Measures
This Annual Report to Stockholders contains certain non-GAAP fi nancial information. The adjusted fi nancial information is
considered non-GAAP and is not preferable to GAAP fi nancial 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 for merger and integration costs, non-cash impairment charges and the gain on sale of asset.
EBITDA
EBITDA should not be considered as an alternative to net income or any other generally accepted accounting prinviples measure of
performance or liquidity. EBITDA, as the Company has calculated 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 profi tability that eliminates the effect
of changes resulting from fi nancial decisions, tax regulations, and capital investments.
EBITDA 2008 2008 Adjusted 2007 2006
(Dollars in thousands)
Net (loss) income $ (35,094) $ 137,495 $ 155,036 $ 112,611
Provision for income taxes 56,867 91,149 102,491 75,074
Interest expense, net 10,963 10,963 11,290 10,025
Depreciation and amortization 90,732 88,340 75,052 54,929
EBITDA $ 123,468 $ 327,947 $ 343,869 $ 252,639
GAAP EBITDA % increase over Prior Year (64%) 36%
Adjusted EBITDA % increase over Prior Year (5%)
Results adjusted
for merger and
integration costs,
gain on sale of
Add: Add: Non- Less: asset and non-
Merger and cash impairment Gain on cash impairment
EBITDA Fiscal 2008 (Adjusted) 1 Fiscal 2008 integration costs charges sale of asset charges
Net (loss) income $ (35,094) $ 12,341 $ 161,662 $ 1,414 $ 137,495
Provision for income taxes 56,867 3,536 31,688 942 91,149
Interest expense, net 10,963 — — — 10,963
Depreciation and amortization 90,732 (2,392) — — 88,340
EBITDA $ 123,468 $ 13,485 $ 193,350 $ 2,356 $ 327,947
1 Presents EBITDA adjusted for merger and integration costs, non-cash impairment charges and gain on sale of asset.
DICK’S SPORTING GOODS, INC. 2008 ANNUAL REPORT
72