EX-99.2 2 non-gaapdisclosures.htm EXHIBIT 99.2 NON-GAAP DISCLOSURES Exhibit 99.2 Non-GAAP Disclosures
Exhibit 99.2
 
 
Non-GAAP Disclosures

Dollar General Corporation (the “Company”) is publicly disclosing the information below for the reasons set forth in the Company’s April 12, 2007 press release.

The Company has included below certain “non-GAAP financial measures,” as that term is defined by the SEC in Regulation G, as well as the reconciliations of those measures to the most comparable measures derived in accordance with generally accepted accounting principles (“GAAP”). Non-GAAP financial measures should not be considered a substitute for any measures derived in accordance with GAAP.

Certain numbers in this disclosure are taken from the Company’s audited financial statements, but readers should refer only to the audited financial statements themselves to rely on audited results. Financial information and data reported herein may include audited data or data extracted from audited financial statements, but readers should not rely on such data as being audited unless specifically so designated. For audited financial information (including footnote disclosure), the reader is encouraged to refer to the Company’s periodic reports, which can be found on the SEC’s website located at www.sec.gov or on the “Investing—SEC Filings” portion of the Company’s website located at www.dollargeneral.com.


DOLLAR GENERAL CORPORATION
Reconciliation of Non-GAAP Financial Measures
Fiscal Year Ended February 2, 2007
  
($ in millions)
                       
   
As
Reported
 
Adjusted
             
                       
Net income
  
$
137.9
  
$
137.9
                    
Interest expense, net
    
27.9
   
27.9
                   
Income taxes
    
82.4
   
82.4
                   
Operating Profit (EBIT)
    
248.3
   
248.3
                   
                                 
Non-GAAP Adjustments
                                
Impact of markdowns related to inventory clearance
  activities
          
160.0
                   
Selling, general and administrative costs related to store 
  closing and inventory clearance activities
          
33.1
                    
Operating results of stores to be closed
          
14.9
                   
Hurricane Katrina insurance proceeds
          
(13.0
)
                  
Hurricane Katrina expenses and write-offs
          
0.5
                   
Asset impairments
          
0.8
                   
Investment banking fees
          
1.0
                   
Adjusted EBIT
         
445.6
   
 
              
Add: Depreciation and amortization
    
200.6
   
200.6
                   
EBITDA
    
448.9
   
646.2
   
 
              
Add: Rent expense
    
343.9
   
319.5
 
  
 
              
EBITDAR
  
$
792.8
  
$
965.7
 
  
 
              
                                 
 
                                
                                 
   
  Net
Sales 
    
Gross
Profit
          
SG&A
Expenses
    
Operating
Profit
  
                                 
As Reported
  
$
9,169.8
  
$
2,368.2
        
$
2,119.9
  
$
248.3
  
                                 
Impact of Adjustments
                                
Impact of markdowns related to inventory clearance
  activities
    
-
   
160.0
         
-
   
160.0
 
Selling, general and administrative costs related to store
  closing and inventory clearance activities
    
-
    
-
          
(33.1
)
   33.1  
Operating results of stores to be closed
    
(274.2
)
  
(60.5
)
        
(75.4
)
  
14.9
 
Hurricane Katrina insurance proceeds
    
-
   
-
         
13.0
   
(13.0
)
Hurricane Katrina expenses and write-offs
    
-
   
-
         
(0.5
)
  
0.5
 
Asset impairments
    
-
   
-
         
(0.8
)
  
0.8
 
Investment banking fees
    
-
   
-
         
(1.0
)
  
1.0
 
Adjusted
 
$
8,895.6
  
$
2,467.7
        
$
2,022.1
  
$
445.6
  
% Sales (adjusted)
          
27.7
%
        
22.7
%
  
5.0
%