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Dick’s Sporting Goods, Inc. | 2009 Annual Report 97
Reconciliation of Non-GAAP Financial Measures
This Annual Report to Stockholders contains certain non-GAAP financial information. The adjusted financial information is considered
non-GAAP and is not preferable to GAAP financial 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 principles 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 profitability that eliminates the
effect of changes resulting from financial decisions, tax regulations, and capital investments.
2009 2008
EBITDA 2009 Adjusted 2008 Adjusted 2007
(Dollars in thousands)
Net income (loss) $ 135,359 $ 141,427 $ (39,865) $ 132,724 $ 150,566
Provision for income taxes 87,817 91,862 53,686 87,968 99,511
Interest expense, net 2,395 2,395 18,915 18,915 18,740
Depreciation and amortization 100,948 98,470 90,732 88,340 75,052
EBITDA $ 326,519 $ 334,154 $ 123,468 $ 327,947 $ 343,869
GAAP EBITDA % increase (decrease) over Prior Year 164% (64%)
Adjusted EBITDA % increase (decrease) over Prior Year 2% (5%)
Add: Results adjusted
Merger and for merger and
EBITDA Fiscal 2009 (Adjusted) 1 Fiscal 2009 integration costs integration costs
Net income $ 135,359 $ 6,068 $ 141,427
Provision for income taxes 87,817 4,045 91,862
Interest expense, net 2,395 — 2,395
Depreciation and amortization 100,948 (2,478) 98,470
EBITDA $ 326,519 $ 7,635 $ 334,154
1 Presents EBITDA adjusted for merger and integration costs.
Results adjusted
for merger and
integration costs,
non-cash
Add: Add: Non- Less: impairment
Merger and cash impairment Gain on charges and gain
EBITDA Fiscal 2008 (Adjusted) 2 Fiscal 2008 integration costs charges sale of asset on sale of asset
Net (loss) income $ (39,865) $ 12,341 $ 161,662 $ 1,414 $ 132,724
Provision for income taxes 53,686 3,536 31,688 942 87,968
Interest expense, net 18,915 — — — 18,915
Depreciation and amortization 90,732 (2,392) — — 88,340
EBITDA $ 123,468 $ 13,485 $ 193,350 $ 2,356 $ 327,947
2 Presents EBITDA adjusted for merger and integration costs, non-cash impairment charges and gain on sale of asset.