Express 2012 Annual Report Download - page 41

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Adjusted Net Income
The following table presents Adjusted Net Income and Adjusted Earnings Per Diluted Share for the stated
periods:
Year Ended
2012 2011 2010
(in thousands)
Adjusted Net Income .......................... $139,267* $147,126 $121,790
Adjusted Earnings Per Diluted Share .............. $ 1.60* $ 1.66 $ 1.42
* These are GAAP numbers because no adjustments were made to net income or earnings per diluted shares
for the fifty-three weeks ended February 2, 2013.
We supplement the reporting of our financial information determined under United States Generally Accepted
Accounting Principles (“GAAP”) with certain non-GAAP financial measures: adjusted net income and adjusted
earnings per diluted share. We believe that these non-GAAP measures provide meaningful information to assist
the readers of our financial information in understanding our financial results and assessing our prospects for
future performance. Management believes adjusted net income and adjusted earnings per diluted share are
important indicators of our operations because they exclude items that may not be indicative of, or are unrelated
to, our core operating results, and provide a better baseline for analyzing trends in our underlying business.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial
measures with other companies’ non-GAAP financial measures having the same or similar names. These
adjusted financial measures should not be considered in isolation or as a substitute for reported net income and
reported earnings per diluted share. These non-GAAP financial measures reflect an additional way of viewing
our operations that, when viewed with our GAAP results and the following reconciliations to the most directly
comparable GAAP financial measures, provide a more complete understanding of our business. We strongly
encourage investors and stockholders to review our financial statements and publicly-filed reports in their
entirety and not rely on any single financial measure.
The following table reconciles the non-GAAP financial measures, adjusted net income and adjusted earnings per
diluted share, with the most directly comparable GAAP financial measures, net income and earnings per diluted
share. No adjustments were made to net income or earnings per diluted share for the fifty-three weeks ended
February 2, 2013, and, therefore, no tabular reconciliation has been included for the respective period.
2011
(in thousands, except per share amounts) Net Income
Earnings per
Diluted Share
Weighted Average
Diluted Shares
Outstanding
Reported GAAP Measure ............... $140,697 $1.58 88,896
Transaction Costs (a) * ................. 614 0.01
Interest Expense (b) * .................. 5,815 0.07
Adjusted Non-GAAP Measure ........... $147,126 $1.66
(a) Includes transaction costs related to the secondary offerings completed in April 2011 and December 2011.
(b) Includes premium paid and accelerated amortization of debt issuance costs and debt discount related to the
repurchases of $49.2 million of Senior Notes and the amendment of the $200 million Revolving Credit
Facility, and the full prepayment of the $125.0 million Term Loan.
* Items were tax affected at our statutory rate of approximately 39% for 2011.
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