Neiman Marcus 2006 Annual Report Download - page 25

(Successor) (Predecessor)
Fiscal
year
ended
July 28,
2007
Forty-three
weeks
ended
July 29,
2006
Nine
weeks
ended
October 1,
2005
Fiscal
year
ended
July 30,
2005
Fiscal
year
ended
July 31,
2004
Fiscal
year
ended
August 2,
2003
OTHER OPERATING DATA
Capital expenditures $ 147.9 $ 138.2 $ 25.6 $ 190.3 $ 114.4 $ 127.6
Depreciation expense $ 136.5 $ 107.0 $ 19.2 $ 103.6 $ 96.3 $ 80.7
Rent expense and related occupancy costs $ 87.5 $ 69.3 $ 12.5 $ 72.3 $ 65.3 $ 62.5
Change in comparable revenues (8) 6.7% 6.8% 9.8% 9.8% 14.0% 3.8%
Number of stores open at period end 40 38 37 36 37 37
NON-GAAP FINANCIAL MEASURE
EBITDA (9) $ 685.6(1) $ 425.3 $ 89.5(2) $ 501.1(3) $ 428.6(5) $ 279.8(7)
(1) For fiscal year 2007, operating earnings and EBITDA include 1) $11.5 million pretax impairment charge related to the
writedown to fair value in the net carrying value of the Horchow tradename, offset by 2) $4.2 million of other income we
received in connection with the merger of Wedding Channel.com, in which we held a minority interest, and The Knot and 3)
$6.0M of other income related to aged, non-escheatable gift cards.
(2) For the nine weeks ended October 1, 2005, operating earnings and EBITDA include $23.5 million of transaction and other costs
incurred in connection with the Transactions. These costs consist primarily of $4.5 million of accounting, investment banking,
legal and other costs associated with the Transactions and a $19.0 million non-cash charge for stock compensation resulting from
the accelerated vesting of Predecessor stock options and restricted stock in connection with the Acquisition.
(3) For fiscal year 2005, operating earnings and EBITDA include a $15.3 million pretax loss related to the disposition of Chef's
Catalog in November 2004 and a $6.2 million pretax gain related to the sale of our credit card portfolio.
(4) For fiscal year 2005, net earnings reflect tax benefits aggregating $7.6 million resulting from favorable settlements associated
with previous state tax filings and reductions in previously recorded deferred tax liabilities.
(5) For fiscal year 2004, operating earnings and EBITDA include a $3.9 million pretax impairment charge related to the writedown
to fair value in the net carrying value of the Chef's Catalog tradename intangible asset.
(6) For fiscal year 2004, net income reflects a $7.5 million tax benefit related to favorable settlements associated with previous state
tax filings.
(7) For fiscal year 2003, net earnings and EBITDA reflect an after-tax charge of $14.8 million for the writedown of certain
intangible assets related to prior purchase business combinations as a result of the implementation of a new accounting principle.
(8) Comparable revenues include 1) revenues derived from our retail stores open for more than 52 weeks, including stores that have
been relocated or expanded and 2) revenues from our Direct Marketing operation. Comparable revenues exclude 1) revenues of
closed stores, 2) revenues from our discontinued operations (Gurwitch Products, L.L.C. and Kate Spade LLC) and 3) revenues of
our previous Chef's Catalog operations (sold in November 2004). The calculation of the change in comparable revenues for 2003
is based on revenues for the 52 weeks ended August 2, 2003 compared to revenues for the 52 weeks ended July 27, 2002.
(9) For an explanation of EBITDA, see Item 7, "Management's Discussion and Analysis of Financial Condition and Results of
Operations — Non-GAAP Financial Measure-EBITDA."
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