Dick's Sporting Goods 2011 Annual Report Download - page 106

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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, analysts 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 to exclude a gain on sale of investment, the impact of a litigation settlement, Golf Galaxy store closing costs and merger
and integration costs.
EBITDA
EBITDA should not be considered as an alternative to net income or any other GAAP measure of performance or liquidity and 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.
2011 2010 2009
2011 Adjusted 2010 Adjusted 2009 Adjusted
(dollars in thousands)
Net income $ 263,906 $ 253,879 $ 182,077 $ 198,396 $ 135,359 $ 141,427
Provision for income taxes 168,120 162,099 115,434 126,312 87,817 91,862
Interest expense 13,868 13,868 14,016 14,016 4,543 4,543
Depreciation and amortization 116,581 116,581 110,394 110,394 100,948 98,470
EBITDA $ 562,475 $ 546,427 $ 421,921 $ 449,118 $ 328,667 $ 336,302
GAAP EBITDA % increase over prior year 33% 28%
Adjusted EBITDA % increase over prior year 22% 34%
Results adjusted for
Less: gain on sale of
Gain on sale Less: investment and
EBITDA Fiscal 2011 (Adjusted) 1 Fiscal 2011 of investment Litigation settlement litigation settlement
Net income $ 263,906 $ (8,738) $ (1,289) $ 253,879
Provision for income taxes 168,120 (5,162) (859) 162,099
Interest expense 13,868 - - 13,868
Depreciation and amortization 116,581 - - 116,581
EBITDA $ 562,475 $ (13,900) $ (2,148) $ 546,427
1 Presents EBITDA adjusted for a gain on sale of investment and a partial reversal of litigation settlement costs previously accrued during fiscal 2010.
Results adjusted for
Add: Add: Golf Galaxy store closing
Golf Galaxy Litigation costs and litigation
EBITDA Fiscal 2010 (Adjusted) 2 Fiscal 2010 store closing costs settlement charge settlement charge
Net income $ 182,077 $ 9,826 $ 6,493 $ 198,396
Provision for income taxes 115,434 6,550 4,328 126,312
Interest expense 14,016 – – 14,016
Depreciation and amortization 110,394 – – 110,394
EBITDA $ 421,921 $ 16,376 $ 10,821 $ 449,118
2 Presents EBITDA adjusted for Golf Galaxy store closing costs and a litigation settlement charge.
Add: Results adjusted
Merger and for merger and
EBITDA Fiscal 2009 (Adjusted) 3 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 4,543 - 4,543
Depreciation and amortization 100,948 (2,478) 98,470
EBITDA $ 328,667 $ 7,635 $ 336,302
3 Presents EBITDA adjusted for merger and integration costs.
84 Dick’s Sporting Goods, Inc. | 2011 Annual Report