CSK Auto Corp. Reports Fourth Quarter and Fiscal 2003 Results; Record Annual Sales of $1,578 Million and Fourth Quarter Same Store Sales Increases of 8%.Business Editors/Automotive Writers PHOENIX--(BUSINESS WIRE)--March 18, 2004 CSK Auto CSK Auto Inc. is the largest specialty retailer of automotive parts and accessories in the western United States and one of the largest retailers of such products in the entire country. Corp. (NYSE NYSE See: New York Stock Exchange : CAO), the parent company of CSK Auto Inc., a specialty retailer in the automotive aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. , today reported its financial results for the fourth quarter and fiscal year ended Feb. 1, 2004. The financial information described as being on a "comparable basis" is adjusted for certain items described below and in the footnotes of the accompanying chart titled "Comparable Basis Financial Data." The company noted the following highlights for the fourth quarter and fiscal year: -- Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $372.3 million for the quarter and a record $1,578.1 million for the full year; -- Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of increased by 8.0% for the fourth quarter and 6.0% for the full year; -- During the fourth quarter of fiscal 2003, we refinanced our debt, which is expected to provide us with pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta annual interest savings of between $11.0 million and $13.0 million or $0.14 to $0.17 per share; and -- Adjusted free cash flow (a non-GAAP measure described below) for fiscal 2003 was $73.7 million. Financial Results Net sales for the 13 weeks ended Feb. 1, 2004 (the "fourth quarter of fiscal 2003") increased $22.6 million to $372.3 million from $349.7 million for the 13 weeks ended Feb. 2, 2003 (the "fourth quarter of fiscal 2002"). Sales for the fiscal year ended Feb. 1, 2004 ("fiscal 2003") increased $71.5 million to $1,578.1 million from $1,506.6 million for the fiscal year ended Feb. 2, 2003 ("fiscal 2002"). Same store sales increased 8.0% and 6.0% for the fourth quarter and fiscal year, respectively. The higher sales are a result of our continued efforts to increase our average sale per customer and to attract new customers to our stores through our new and innovative product offerings. Gross profit increased $15.0 million to $187.2 million, or 50.3% of net sales for the fourth quarter of fiscal 2003 from $172.2 million or 49.2% of net sales for the fourth quarter of fiscal 2002. Gross profit increased $48.0 million to $748.2 million, or 47.4% of net sales, for fiscal 2003 from $700.2 million, or 46.5% of net sales, for fiscal 2002. As discussed previously during the year, we adopted Emerging Issues Task Force No. 02-16 ("EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation 02-16") during the first quarter of fiscal 2003. EITF 02-16 required that certain vendor allowances previously recognized in operating and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. be reflected in cost of sales. Adjusted gross profit percentages for the fourth quarter and full year of fiscal 2002 for the effect of EITF 02-16 would have been 51.8% and 47.8% of net sales, respectively. As previously stated, we have continued to offer new product offerings that carry higher dollar averages but lower gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. rates. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the fourth quarter of fiscal 2003 totaled $18.3 million (4.9% of net sales) compared to $19.8 million (5.7% of net sales) for the fourth quarter of fiscal 2002. Operating profit for fiscal 2003 totaled $116.6 million (7.4% of net sales) compared to $102.5 million (6.8% of net sales) for fiscal 2002. Operating profit was negatively impacted during fiscal 2003 as a result of charges related to our recent refinancing Refinancing An extension and/or increase in amount of existing debt. and a closed store reserve adjustment (see discussion below). Operating profit was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted during fiscal 2003 as a result of higher gross margin dollars and the leveraging of fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). over the rising net sales. On a comparable basis, operating profit for the fourth quarter of fiscal 2003 increased to $32.4 million from $30.8 million in the fourth quarter of fiscal 2002. On a comparable basis, operating profit for fiscal 2003 increased to $130.9 million from $114.6 million in fiscal 2002. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss for the fourth quarter of fiscal 2003 was $22.6 million, or $(0.49) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share, compared to net income of $3.7 million, or $0.08 per diluted common share, for the fourth quarter of fiscal 2002. On a comparable basis, net income increased to $13.4 million, or $0.29 per diluted common share, in the fourth quarter of fiscal 2003 from $10.8 million, or $0.24 per diluted common share, in the fourth quarter of fiscal 2002. GAAP net income for fiscal 2003 was $10.8 million, or $0.23 per diluted common share, compared to GAAP net income of $21.8 million, or $0.54 per diluted common share, in fiscal 2002. On a comparable basis, net income for fiscal 2003 was $49.5 million, or $1.08 per diluted common share, compared to net income of $34.2, or $0.81 per diluted common share for fiscal 2002. Other key financial performance indicators which have shown improvement year-over-year include: (1) net cash provided by operating activities which increased by $14.7 million to $50.6 million in fiscal 2003 from $35.9 million in fiscal 2002; (2) capital expenditures increased to $16.1 million in fiscal 2003 from $9.6 million in fiscal 2002; (3) adjusted free cash flow (a non-GAAP measure defined below) increased $43.0 million to $73.7 million in fiscal 2003 from $30.7 million in fiscal 2002; and (4) net debt (a non-GAAP measure defined below) was reduced by $26.4 million in fiscal 2003 to $483.0 million from $509.4 million in fiscal 2002. Additional information on these items is presented in the attached tables. In January January: see month. 2004, we completed a refinancing of our debt that included the redemption of approximately 94% of our outstanding $280.0 million 12% senior notes and the issuance of $225.0 million 7% senior subordinated notes. In addition, we amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. our bank credit facility, increasing our credit line by $75.0 million and reducing our interest rate spread by 50 basis points. As a result of the refinancing, we expect pre-tax annual savings of approximately $11.0 million to $13.0 million in interest expense, or $0.14 to $0.17 per share (assuming 47 million shares outstanding). In conjunction with these transactions, we incurred a loss on debt retirement during the fourth quarter of fiscal 2003 of approximately $45.2 million that included early redemption premiums redemption premium See call premium. , underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and bank fees and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of certain financing fees and other costs. In addition, approximately $1.8 million of indirect costs Indirect costs are costs that are not directly accountable to a particular function or product; these are fixed costs. Indirect costs include taxes, administration, personnel and security costs. See also
The refinancing completed in the fourth quarter and the ongoing improvement in our operating results have increased our cash flow and financial flexibility, enabling us to pursue an alternate alternate /al·ter·nate/ (awl´ter-nit) 1. following in turns. 2. pertaining to every other one in a series. 3. occurring in place of another; acting as a substitute. strategy to reduce our current portfolio of closed stores, which includes lease buyouts and foregoing lease extensions on locations that we currently sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. at a marginal profit. This change in strategy requires us to establish a new closed store reserve based upon the guidance in Statement of Financial Accounting Standards No. 146, "Accounting for Costs Associated with Exit or Disposal Activities" (FAS 146) which became effective Jan. 1, 2003, and reverse the existing closed store reserve which was previously established under EITF 94-3, "Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). )." FAS 146 requires that costs under a lease contract for a closed store be recognized at fair value and that the amount of remaining lease payments owed be reduced by estimated sublease income (but not to an amount less than zero). This change in methodology has resulted in a fourth quarter non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of approximately $12.2 million. The charge reflects the elimination of net sublease income (leases with incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. estimated sublease income in excess of the costs of the original lease) from the reserve, partially offset by the discounting of net cash outflow. Sublease income in excess of costs associated with the lease will be recognized in future periods as it is earned. Outlook For fiscal year 2004, we are forecasting same store sales increases in the low-to-mid single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. range and we are expecting to open or relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. 45 stores. As a result of our projected sales increase and the impact of reduced interest expense resulting from our refinancing, we have revised our previous guidance of net income between $65.0 million and $69.0 to net income between $66.0 million and $69.0 million. This will result in diluted earnings per common share of between $1.42 and $1.47, assuming approximately 47.0 million diluted shares outstanding. This assumes that diluted earnings per common share for the first quarter of fiscal 2004 will be between $0.26 and $0.28. Free cash flow (as defined below) in fiscal year 2004 is expected to be between $75.0 and $85.0 million. We expect to use this excess cash primarily to reduce outstanding debt. Conference Call In conjunction with this release, the company will hold a conference call on Thursday Thursday: see week. , March 18, 2004, at 5 p.m. (ET) for the investing public. Investors may listen to a simultaneous webcast at www.cskauto.com. Click on "Company," "Investor Relations Investor relations The process by which the corporation communicates with its investors. ," then click "Conference Call." This webcast will be archived for five days. Interested parties may hear a replay of the conference call from 6 p.m. (ET) Thursday, March 18, 2004, through 8 p.m. (ET) Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , March 19, 2004, by dialing 877-519-4471, passcode 4536362. (If retrieving digital replay outside of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , please dial 973-341-3080, passcode 4536362.) CSK Auto Corp. is the parent company of CSK Auto Inc., a specialty retailer in the automotive aftermarket. As of Feb. 1, 2004, the company operated 1,114 stores in 19 states under the brand names Checker check·er n. 1. a. One, such as an inspector or examiner, that checks. b. One that receives items for temporary safekeeping or for shipment: a baggage checker. 2. Auto Parts Auto parts are components of automobiles. They mainly are, in alphabetic order (only car specific articles or articles with car section):
Certain statements contained in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . They discuss, among other things, expected growth, future store development and relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. strategy, business strategies, future revenues and future performance. The forward-looking statements are subject to risks, uncertainties and assumptions, including, but not limited to, competitive pressures, demand for the company's products, the state of the economy, inflation, consumer debt levels and the weather. Actual results may differ materially from anticipated results described in these forward-looking statements. -- Tables Follow --
CSK AUTO CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands except per share amounts)
13 Weeks Ended Fiscal Year Ended
------------------ ----------------------
Feb. 1, Feb. 2 Feb. 1, Feb. 2,
2004 2003 2004 2003
------------------ ----------------------
Net sales $372,343 $349,745 $1,578,056 $1,506,646
Cost of sales 185,098 177,537 829,900 806,461
------------------ ----------------------
Gross profit 187,245 172,208 748,156 700,185
Other costs and expenses:
Operating and
administrative 156,613 147,948 618,879 592,630
Store closing and other
restructuring costs 12,330 4,475 12,669 5,026
------------------ ----------------------
Operating profit 18,302 19,785 116,608 102,529
Interest expense, net 11,408 14,060 50,991 62,261
Loss on debt retirement 45,179 -- 49,494 6,008
------------------ ----------------------
Income (loss) before income
taxes (38,285) 5,725 16,123 34,260
Income tax benefit (expense) 15,703 (2,066) (5,326) (12,448)
------------------ ----------------------
Net income (loss) $(22,582) $3,659 $10,797 $21,812
================== ======================
Basic earnings per share:
Net income (loss) $(0.49) $0.08 $0.24 $0.54
================== ======================
Shares used in computing
per share amounts 46,440 45,147 45,658 40,635
================== ======================
Diluted earnings per share:
Net income (loss) $(0.49) $0.08 $0.23 $0.54
================== ======================
Shares used in computing
per share amounts 46,440 45,238 45,964 40,752
================== ======================
During the periods presented, we incurred certain costs which we have excluded below for comparability. In order to evaluate our operating performance, we have adjusted net income (loss) to remove the effect of these non-comparable items to more accurately compare our operating performance from period to period.
Comparable Basis Financial Data
------------------------------------
13 Weeks Ended Fiscal Year Ended
----------------- ------------------
Feb. 1, Feb. 2, Feb. 1, Feb. 2,
2004 2003 2004 2003
----------------- ------------------
GAAP operating profit $18,302 $19,785 $116,608 $102,529
Non-comparable items:
Retirement agreement (1) -- 1,500 -- 1,500
Workers compensation (2) -- 4,900 -- 4,900
Loss on sale or closing of
stores (3) 12,203 4,376 12,203 5,223
Secondary offering costs (4) 58 214 240 479
Indirect refinancing costs (5) 1,827 -- 1,827 --
----------------- ------------------
Comparable operating profit $32,390 $30,775 $130,878 $114,631
================= ==================
GAAP income (loss) before income
taxes $(38,285) $5,725 $16,123 $34,260
Items 1-5 above 14,088 10,990 14,270 12,102
Loss on debt retirement (6) 45,179 -- 49,494 6,008
Interest expense (7) -- 170 -- 1,701
----------------- ------------------
Comparable income before income
taxes 20,982 16,885 79,887 54,071
Income tax expense, adjusted (7,622) (6,093) (30,388) (19,828)
----------------- ------------------
Net income - comparable basis $13,360 $10,792 $49,499 $34,243
================= ==================
Diluted earnings per share -
comparable basis:
Net income - comparable basis $0.29 $0.24 $1.08 $0.81
================= ==================
Shares used in computing per
share amounts (8) 46,815 45,238 45,964 42,321
================= ==================
Non-comparable items consist of the following: (1) $1.5 million non-cash charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of a supplemental executive retirement agreement for the company's chairman; (2) $4.9 million of worker's compensation expense reflecting increased loss reserves for claims incurred during plan years 1999 through 2001 and claims relating to the acquired PACCAR PACCAR Pacific Car and Foundry Company (former railroad car manufacturer now parent corp of Peterbilt & Kenworth Truck) stores, in response to increasing medical and claims costs, primarily in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ; (3) $12.2 million of closed store charges in fiscal 2003 due to our change in strategy and $4.4 of closed store charges in fiscal 2002 due to revisions in reserves primarily relating to longer than anticipated vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. periods for our closed stores as a result of the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. and in fiscal 2002 and $0.8 million for a loss related to the sale of certain Texas stores; (4) costs related to secondary stock offerings in January 2004, September September: see month. 2003 and July July: see month. 2002; (5) $1.8 million of indirect costs associated with our January 2004 refinancing; (6) $45.2 million of charges relating to redemption premiums, the write-off of certain financing fees and other costs related to our January 2004 refinancing, $4.3 million of charges for the write-off of certain financing fees and other costs related to our redemption of the balance of our 11% senior subordinated notes and establishment of our new credit facility in June June: see month. 2003, and $6.0 million of charges relating to redemption premiums, the write-off of certain financing fees and other costs related to the redemption of our 11% senior subordinated notes in July 2002; (7) $0.2 million of interest relating to the vesting of a supplemental executive retirement agreement for the company's chairman, $1.2 million of interest related to the $50.0 million convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before which were converted in May 2002 and $0.3 million of additional interest paid due to a required notice period prior to retiring the $71.7 million of 11% senior subordinated notes; and (8) share count used in computing computing - computer per share amounts for the fiscal period ending Feb. 2, 2003, assumes that the conversion of our $50.0 million subordinated debentures in May 2002 occurred at the beginning of the fiscal year.
Selected Financial Data:
($ in thousands)
13 Weeks Ended Fiscal Year Ended
------------------------------------
Feb. 1, Feb. 2, Feb. 1, Feb. 2,
2004 2003 2004 2003
------------------------------------
Cash $37,221 $15,519 $37,221 $15,519
FIFO inventory $551,951 $560,000 $551,951 $560,000
Accounts payable $176,445 $164,430 $176,445 $164,430
Interest expense, net $11,408 $14,060 $50,991 $62,261
Capital expenditures $5,488 $3,892 $16,056 $9,573
Availability under revolving
credit facility $120,068 $54,698 $120,068 $54,698
Total debt (including current
maturities) $520,270 $524,967 $520,270 $524,967
Net debt (total debt less cash) $483,049 $509,448 $483,049 $509,448
EBITDA (as adjusted) $40,727 $39,580 $165,111 $150,197
EDITDAR (as adjusted) $69,128 $68,211 $279,493 $265,197
We regularly utilize non-GAAP financial measures ("these measures") such as EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (including EBITDA, as adjusted), EBITDAR Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring Costs - EBITDAR An indicator of a company's financial performance calculated as: = Revenue - Expenses (excluding tax, interest, depreciation, amortization, and restructuring costs) (including EBITDAR, as adjusted), free cash flow (including free cash flow, as adjusted) and net debt. We believe these measures are recognized supplemental measurement tools widely used by analysts and investors to help evaluate a company's overall operating performance, its ability to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. and service debt, and its capacity for making capital expenditures. We use these measures, in addition to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and cash flows from operating activities, to assess our performance relative to our competitors and relative to our own performance in prior periods. In addition, EBITDA, as adjusted, and EBITDAR, as adjusted, are used to monitor compliance with certain of our financial covenants under our senior credit facility. These measures do not represent funds available for our discretionary use and are not intended to represent or to be used as a substitute for net income or cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses data as measured under GAAP. These measures and the associated year-to-year trends should not be considered in isolation. These measures may differ in method of calculation from similarly titled measures used by other companies. We believe that it is important for investors to have the opportunity to evaluate us using these measures. EBITDA, as adjusted, and EBITDAR, as adjusted, are calculated as follows ($ in thousands):
13 Weeks Ended Fiscal Year Ended
--------------------- -----------------------
Feb. 1, Feb. 2, Feb. 1, Feb. 2,
2004 2003 2004 2003
---------- ---------- ----------- -----------
Calculation of EBITDA,
as adjusted and EBITDAR,
as adjusted:
Income (loss) before
income taxes $(38,285) $5,725 $16,123 $34,260
Interest expense, net 11,408 14,060 50,991 62,261
Depreciation 7,291 7,802 30,290 31,746
Amortization (net of
deferred financing
costs) 1,046 1,003 3,943 3,820
---------- ---------- ----------- -----------
EBITDA (18,540) 28,590 101,347 132,087
========== ========== =========== ===========
Non-comparable items (1) 59,267 10,990 63,764 18,110
---------- ---------- ----------- -----------
EBITDA (as adjusted) 40,727 39,580 165,111 150,197
========== ========== =========== ===========
Rent expense 28,401 28,631 114,382 115,000
---------- ---------- ----------- -----------
EBITDAR (as adjusted) $ 69,128 $ 68,211 $ 279,493 $ 265,197
========== ========== =========== ===========
(1) Excludes interest of $170 in the 13 weeks ended Feb. 2, 2003, and $1,701 in the fiscal year ended Feb. 2, 2003, which are included in the interest expense, net of $14,060 and $62,261, respectively. The items excluded from EBITDA, as adjusted, and EBITDAR, as adjusted, are significant components of our statement of operations See Income statement. and must be considered in performing a comprehensive assessment of our overall financial performance. EBITDA, as adjusted, and EBITDAR, as adjusted, have been calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the terms of our senior credit facility. The presentation is not intended to be a measure of GAAP performance. EBITDA can be reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to net cash provided by operating activities, which we believe to be the most directly comparable financial measure calculated and presented in accordance with GAAP, as follows ($ in thousands):
Reconciliation of
EBITDA:
13 Weeks Ended Fiscal Year Ended
---------------------- -----------------------
Feb. 1, Feb. 2, Feb. 1, Feb. 2,
2004 2003 2004 2003
----------- ---------- ----------- -----------
EBITDA $(18,540) $28,590 $101,347 $132,087
Cash interest payments (23,047) (17,678) (51,581) (57,315)
Cash tax payments (757) (383) (2,166) (383)
Other non-cash expenses 514 979 3,055 1,748
Other changes in
operating assets and
liabilities 33,381 3,524 (41) (40,218)
----------- ---------- ----------- -----------
Net cash flow provided
by (used in) operating
activities $ (8,449) $ 15,032 $ 50,614 $ 35,919
=========== ========== =========== ===========
We define free cash flow as net cash provided by operating activities less cash paid for capital expenditures. We adjusted free cash flow for premiums paid on the early retirement of debt to compare free cash flow as generated by our normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of . Free cash flow can be reconciled to net cash provided by operating activities as follows ($ in thousands):
Reconciliation of Free Cash Flow:
Fiscal Year Ended
---------------------
Feb. 1, Feb. 2,
2004 2003
---------- ----------
Net cash provided by operating activities
$50,614 $35,919
Cash paid for capital expenditures (16,056) (9,573)
---------- ----------
Free cash flow 34,558 26,346
========== ==========
Cash paid on early retirement of debt 39,176 4,368
---------- ----------
Adjusted free cash flow $ 73,734 $ 30,714
========== ==========
We define net debt as total debt (including current maturities) less cash and cash equivalents. Net debt can be reconciled as follows ($ in thousands):
Reconciliation of Net Debt:
Fiscal Year Ended
-----------------------
Feb. 1, Feb. 2,
2004 2003
----------- -----------
Total debt (including current maturities) $520,270 $524,967
Cash and cash equivalents (37,221) (15,519)
----------- -----------
Net debt $ 483,049 $ 509,448
=========== ===========
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