Neiman Marcus 2007 Annual Report Download - page 25

Table of Contents
(Successor) (Predecessor)
(in millions, except sales
per square foot)
Fiscal
year
ended
August 2,
2008
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
OTHER OPERATING DATA
Capital expenditures $ 183.5 $ 147.9 $ 138.2
$ 25.6 $ 190.3 $ 114.4
Depreciation expense $ 148.4 $ 136.5 $ 107.0
$ 19.2 $ 103.6 $ 96.3
Rent expense and related occupancy
costs $ 92.6 $ 87.5 $ 69.3
$ 12.5 $ 72.3 $ 65.3
Change in comparable revenues (6) 1.7% 6.7% 6.8% 9.8% 9.8% 14.0%
Number of stores open at period end 41 40 38
37 36 37
Sales per square foot $ 634(7) $ 638 $ 508
$ 103 $ 577 $ 528
NON-GAAP FINANCIAL
MEASURE
EBITDA (8) $ 687.0(1) $ 685.6(2) $ 425.3
$ 89.5(3) $ 501.1(4) $ 428.6(5)
(1) For fiscal year 2008, operating earnings and EBITDA include 1) $32.5 million of other income related to a one-time pension
curtailment gain as a result of our decision to freeze certain Pension and SERP benefits as of December 31, 2007, offset by 2)
$31.3 million pretax impairment charge related to the writedown to fair value of the net carrying value of the Horchow
tradename.
(2) For fiscal year 2007, operating earnings and EBITDA include 1) $11.5 million pretax impairment charge related to the
writedown to fair value of 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.
(3) 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 Acquisition. These costs consist primarily of $4.5 million of accounting, investment banking,
legal and other costs associated with the Acquisition 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.
(4) 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.
(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) 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 operations. 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
fiscal year 2008 is based on revenues for the 52 weeks ended July 26, 2008 compared to revenues for the 52 weeks ended
July 28, 2007.
(7) Sales per square foot for fiscal year 2008 is based on revenues for the 52 weeks ended July 26, 2008.
(8) 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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