DICK'S Sporting Goods (DKS) 8-K Dick’s Sporting Goods Reports Third Quarter 2009 Results; EPS Increases From Third Quarter 2008

Exhibit 99.1

PRESS RELEASE

Dick’s Sporting Goods Reports Third Quarter 2009 Results; EPS Increases From Third Quarter 2008

• Company generated earnings per diluted share of $0.16 reflecting an increase of 129% compared to non-GAAP earnings per diluted share of $0.07 in the third quarter of 2008, or $0.05 earnings per diluted share on a GAAP basis.

• Consolidated same store sales increased 1.9%, better than previous estimate of a 6 to 4% decline.

• Inventory per square foot declined 8.6% at the end of the third quarter of 2009 compared to the end of the third quarter of 2008.

• Company raises full year estimated non-GAAP earnings range from $1.02 to $1.07 per diluted share to $1.04 to $1.09 per diluted share.

PITTSBURGH, Pa., November 19, 2009 — Dick’s Sporting Goods, Inc. (NYSE: DKS) today reported sales and earnings results for the third quarter ended October 31, 2009.

Third Quarter Results

The Company reported consolidated net income for the third quarter ended October 31, 2009 of $18.9 million, or $0.16 per diluted share. The third quarter earnings per diluted share exceeded estimated earnings expectations provided on August 20, 2009 of $0.04 — 0.07 per diluted share. For the third quarter ended November 1, 2008, the Company reported consolidated non-GAAP net income of $8.0 million, or $0.07 per diluted share. Non-GAAP earnings exclude merger and integration costs. On a GAAP basis, the Company reported consolidated net income for the third quarter ended November 1, 2008 of $6.2 million, or $0.05 per diluted share.

Net sales for the third quarter of 2009 increased by 7.1% to $989.8 million due primarily to a 1.9% increase in consolidated comparable store sales, the opening of new stores and the addition of e-commerce sales. The 1.9% consolidated same store sales increase consisted of a 2.2% increase in Dick’s Sporting Goods stores and a 1.5% decline in Golf Galaxy stores.

“While we are pleased with the year-over-year growth in sales and operating margin generated in the third quarter, we believe we benefited from a shift of cold weather product sales from the fourth quarter to the third quarter as a result of colder weather conditions relative to last year.” said Edward W. Stack, Chairman and CEO. “This was an outstanding quarter for us in a difficult economic climate. Our associates successfully managed inventory and controlled expenses while executing effective merchandising and marketing strategies.”

New Stores

In the third quarter, the Company opened 11 Dick’s Sporting Goods stores and relocated one Dick’s Sporting Goods store. The new stores are listed in a table later in the release under the heading “Store Count and Square Footage.”

In the first three quarters of 2009, the Company has opened 24 new Dick’s Sporting Goods stores, relocated one Dick’s Sporting Goods store, opened one new Golf Galaxy store, converted the Golf Shop to a Golf Galaxy store, closed two Chick’s Sporting Goods stores and converted the remaining Chick’s Sporting Goods stores to Dick’s Sporting Goods stores.

As of October 31, 2009, the Company operated 420 Dick’s Sporting Goods stores in 40 states, with approximately 23.4 million square feet and 91 Golf Galaxy stores in 31 states, with approximately 1.5 million square feet.

Balance Sheet

Long term debt declined by $291.5 million from the end of the third quarter of 2008 to the end of the third quarter of 2009 due to the repayment of $172.5 million for the Company’s senior convertible notes in the first quarter of this year and a $122.2 million decrease in revolving credit borrowings. The inventory per square foot was 8.6% less at the end of the third quarter 2009 compared to the end of the third quarter 2008.

Year-to-Date Results

The Company reported consolidated non-GAAP net income for the 39 weeks ended October 31, 2009 of $74.1 million, or $0.63 per diluted share. For the 39 weeks ended November 1, 2008, the Company reported consolidated non-GAAP net income of $72.0 million, or $0.62 per diluted share. Non-GAAP earnings exclude merger and integration costs.

On a GAAP basis, the Company reported consolidated net income for the 39 weeks ended October 31, 2009 of $68.0 million, or $0.58 per diluted share, compared to $65.7 million, or $0.56 per diluted share for the same period last year. The GAAP to non-GAAP reconciliation is included in a table later in the release under the heading “Non-GAAP Net Income and Earnings Per Share Reconciliation.”

Net sales increased 5.3% to $3,076.2 million primarily due to the opening of new stores and the addition of e-commerce sales, partially offset by a consolidated comparable store sales decrease of 3.0%.

Current 2009 Outlook

The Company’s current outlook for 2009 is based on current expectations and includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act as described later in this release. Although the Company believes that comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

“Looking to the fourth quarter, our estimates take into consideration the shift of cold weather product sales from the fourth quarter into the third quarter, planned increased advertising spend and the anniversary of higher levels of guns and ammo sales. Our estimates also recognize the continued uncertain consumer environment, particularly as we head into our largest quarter of the year,” said Mr. Stack.

• Full Year 2009

•	Based on an estimated 118 million diluted shares outstanding, the Company currently anticipates reporting consolidated earnings per diluted share of approximately $1.04 — 1.09, excluding merger and integration costs. For the full year 2008, the Company reported consolidated earnings per diluted share of $1.15, excluding a non-cash impairment charge and merger and integration costs.
	On a GAAP basis, the Company is anticipating reporting consolidated earnings per diluted share of approximately $0.99 — 1.04 in 2009 compared to a net loss of $0.36 per diluted share in 2008.

• Comparable store sales are currently expected to decrease approximately 4 to 3% compared to a 4.8% decrease in 2008. The comparable store sales calculation for the full year 2009 includes Dick’s Sporting Goods stores and Golf Galaxy stores. The comparable store sales calculation for the full year 2008 includes Dick’s Sporting Goods stores only.

• The Company has completed its new store program, which included opening 24 new Dick’s Sporting Goods stores, relocating one Dick’s Sporting Goods store, opening one new Golf Galaxy store, converting the Golf Shop to a Golf Galaxy store, closing two Chick’s Sporting Goods stores and converting the remaining Chick’s Sporting Goods stores to Dick’s Sporting Goods stores.

• Fourth Quarter 2009

• Based on an estimated 120 million diluted shares outstanding, the Company anticipates reporting consolidated earnings per diluted share of approximately $0.41 — 0.46 in the fourth quarter of 2009. In the fourth quarter of 2008, the Company reported non-GAAP earnings per diluted share of $0.54. On a GAAP basis for the fourth quarter of 2008, the Company reported a loss of $0.94 per diluted share, which included a non-cash impairment charge and merger and integration costs.

• Comparable store sales are expected to decrease approximately 6 to 4% compared to an 8.6% decrease in the fourth quarter last year. The comparable store sales calculation for the fourth quarter in 2008 and 2009 includes Dick’s Sporting Goods stores and Golf Galaxy stores. It excludes Chick’s Sporting Goods stores converted to Dick’s Sporting Goods stores.

• Cash Flow

• In 2009, the Company anticipates producing positive operating cash flow, net of capital expenditures, in excess of that generated in 2008. This is expected to be accomplished through continued effective inventory management and the anticipated reduction of net capital expenditures to $100 million in 2009 as compared to $115 million in 2008.

New Accounting Pronouncement

In May 2008, the FASB issued new accounting guidance, which impacts the accounting treatment for convertible debt instruments that allow for either mandatory or optional cash settlements. This accounting standard impacted the Company’s senior convertible notes and required the Company to recognize additional non-cash interest expense based on the market rate for similar debt instruments without the conversion feature. This guidance was effective for fiscal periods beginning in 2009 and required retrospective application. The Company adopted this accounting standard in the first quarter of 2009, and accordingly, the prior periods’ financial statements included herein have been adjusted. Adoption of this standard reduced previously reported earnings per diluted share for the third quarter and full year fiscal 2008 by $0.01 and $0.04, respectively.

Conference Call Info

The Company will be hosting a conference call today at 10:00 a.m. eastern time to discuss the third quarter results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company’s web site located at http://www.dickssportinggoods.com/investors. To listen to the live call, please go to the web site at least fifteen minutes early to register, download and install any necessary audio software.

For those who cannot listen to the live broadcast, the web cast will be archived on the Company’s web site for 30 days. In addition, a dial-in replay will be available shortly after the call. To listen to the replay, investors should dial 888-286-8010 (domestic callers) or 617-801-6888 (international callers) and enter confirmation code 40568597. The dial-in replay will be available for 30 days following the live call.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “may,” “will,” “expect,” “anticipate,” “believe,” “guidance,” “estimate,” “intend,” “predict,” and “continue” or similar words. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks and uncertainties include, without limitation, the current economic and financial downturn and its effect on consumer spending, changes in macro economic factors and market conditions, including the housing market and fuel costs, that impact the level of consumer spending for the types of merchandise sold by the Company, potential volatility in our stock price and the tightening of availability and higher costs associated with current and new sources of credit resulting from uncertainty in financial markets, changes in consumer demand, the retailing environment and customer preferences and spending habits, competitive pressures, pricing and promotional activities of competitors, changes in law and regulation including consumer protection and labor, currency exchange rate fluctuations, weather conditions, litigation, risks and costs associated with combining businesses and/or assimilating acquired companies and our ability to manage our operations and growth. Known and unknown risks and uncertainties are more fully described in the Company’s Annual Report on Form 10-K for the year ended January 31, 2009 as filed with the Securities and Exchange Commission on March 20, 2009, and other reports filed with the Securities and Exchange Commission. The Company disclaims any obligation and does not intend to update any forward-looking statements except as may be required by the securities laws.

About Dick’s Sporting Goods, Inc.

Dick’s Sporting Goods, Inc. is an authentic full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. As of October 31, 2009, the Company operated 420 Dick’s Sporting Goods stores in 40 states primarily throughout the eastern half of the U.S. The Company also owns Golf Galaxy, Inc., a multi-channel golf specialty retailer, with 91 stores in 31 states, e-commerce websites and catalog operations.

Dick’s Sporting Goods, Inc. news releases are available at http://www.dickssportinggoods.com/ (click on the Investor Relations link at the top of the home page).

Contact:
Timothy E. Kullman, EVP — Finance, Administration, Chief Financial Officer and Treasurer or
Anne-Marie Megela, Director, Investor Relations
724-273-3400
investors@dcsg.com

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
(In thousands, except per share data)

	13 Weeks Ended
	October 31,		% of			November 1,		% of
	2009		Sales			2008		Sales (1)
						Adjusted
Net sales	$	989,816		100.00	%	$	924,191		100.00	%
Cost of goods sold, including occupancy and distribution costs		722,985		73.04			671,091		72.61
GROSS PROFIT		266,831		26.96			253,100		27.39
Selling, general and administrative expenses		230,430		23.28			228,861		24.76
Merger and integration costs		—		—			3,096		0.33
Pre-opening expenses		4,645		0.47			7,541		0.82
INCOME FROM OPERATIONS		31,756		3.21			13,602		1.47
Interest expense, net		173		0.02			4,917		0.53
INCOME BEFORE INCOME TAXES		31,583		3.19			8,685		0.94
Provision for income taxes		12,729		1.29			2,501		0.27
NET INCOME	$	18,854		1.90	%	$	6,184		0.67	%
EARNINGS PER COMMON SHARE:
Basic	$	0.17				$	0.06
Diluted	$	0.16				$	0.05
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		113,266					111,906
Diluted		118,704					116,774

(1) Column does not add due to rounding

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
(In thousands, except per share data)

	39 Weeks Ended
	October 31,		% of			November 1,			% of
	2009		Sales			2008			Sales
						Adjusted
Net sales	$	3,076,245		100.00	%	$	2,922,596			100.00	%
Cost of goods sold, including occupancy and distribution costs		2,249,091		73.11			2,090,731			71.54
GROSS PROFIT		827,154		26.89			831,865			28.46
Selling, general and administrative expenses		695,298		22.60			686,495			23.49
Merger and integration costs		10,113		0.33			5,975			0.20
Pre-opening expenses		9,243		0.30			16,146			0.55
INCOME FROM OPERATIONS		112,500		3.66			123,249			4.22
Gain on sale of asset		—		—			(2,356	)		(0.08	)
Interest expense, net		1,854		0.06	��		12,915			0.44
INCOME BEFORE INCOME TAXES		110,646		3.60			112,690			3.86
Provision for income taxes		42,646		1.39			46,964			1.61
NET INCOME	$	68,000		2.21	%	$	65,726			2.25	%
EARNINGS PER COMMON SHARE:
Basic	$	0.60				$	0.59
Diluted	$	0.58				$	0.56
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		112,699					111,556
Diluted		117,385					116,979

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(Dollars in thousands)

	October 31,		November 1,		January 31,
	2009		2008		2009
			Adjusted		Adjusted
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	39,694	$	41,646	$	74,837
Accounts receivable, net		38,302		85,872		57,803
Income taxes receivable		23,193		32,253		5,638
Inventories, net		1,103,318		1,142,233		854,771
Prepaid expenses and other current assets		53,192		45,579		46,194
Deferred income taxes		11,091		18,360		10,621
Total current assets		1,268,790		1,365,943		1,049,864
Property and equipment, net		496,125		550,070		515,982
Construction in progress — leased facilities		139,696		1,627		52,054
Intangible assets, net		47,788		99,000		46,846
Goodwill		200,594		303,736		200,594
Other assets:
Deferred income taxes		76,899		25,908		67,709
Investments		9,068		1,905		2,629
Other		34,655		18,227		26,168
Total other assets		120,622		46,040		96,506
TOTAL ASSETS	$	2,273,615	$	2,366,416	$	1,961,846
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	545,394	$	509,214	$	299,113
Accrued expenses		219,278		209,277		208,286
Deferred revenue and other liabilities		75,327		77,719		102,866
Income taxes payable		—		—		2,252
Current portion of other long-term debt and capital leases		995		219		606
Total current liabilities		840,994		796,429		613,123
LONG-TERM LIABILITIES:
Senior convertible notes		—		170,251		172,179
Revolving credit borrowings		62,647		184,827		—
Other long-term debt and capital leases		9,411		8,441		8,758
Non-cash obligations for construction in progress — leased facilities		139,696		1,627		52,054
Deferred revenue and other liabilities		214,093		213,937		222,155
Total long-term liabilities		425,847		579,083		455,146
COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY:
Common stock		893		857		871
Class B common stock		252		262		253
Additional paid-in capital		518,799		470,123		477,919
Retained earnings		481,032		518,628		413,032
Accumulated other comprehensive income		5,798		1,034		1,502
Total stockholders’ equity		1,006,774		990,904		893,577
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,273,615	$	2,366,416	$	1,961,846

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(Dollars in thousands)

	39 Weeks Ended
	October 31,			November 1,
	2009			2008
				Adjusted
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	68,000		$	65,726
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		75,959			65,826
Amortization of discount on convertible notes		321			5,630
Deferred income taxes		(12,078	)		(17,901	)
Stock-based compensation		16,168			20,199
Excess tax benefit from stock-based compensation		(14,333	)		(1,537	)
Tax benefit from exercise of stock options		1,241			333
Other non-cash items		1,202			762
Gain on sale of asset		—			(2,356	)
Changes in assets and liabilities:
Accounts receivable		7,021			(1,685	)
Inventories		(248,547	)		(254,869	)
Prepaid expenses and other assets		(15,616	)		(9,371	)
Accounts payable		231,704			137,360
Accrued expenses		8,461			(16,274	)
Income taxes receivable/payable		(5,543	)		(91,818	)
Deferred construction allowances		8,846			17,452
Deferred revenue and other liabilities		(26,938	)		(5,303	)
Net cash provided by (used in) operating activities		95,868			(87,826	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(87,814	)		(159,928	)
Purchase of corporate aircraft		—			(25,107	)
Proceeds from sale of corporate aircraft		—			27,463
Proceeds from sale-leaseback transactions		23,538			24,278
Net cash used in investing activities		(64,276	)		(133,294	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings, net		62,647			184,827
Purchase of convertible notes		(172,500	)		—
Payments on other long-term debt and capital leases		(2,322	)		(273	)
Construction allowance receipts		7,022			10,424
Proceeds from sale of common stock under employee stock purchase plan		1,199			2,986
Proceeds from exercise of stock options		8,198			6,976
Excess tax benefit from stock-based compensation		14,333			1,537
Increase in bank overdraft		14,577			6,104
Net cash (used in) provided by financing activities		(66,846	)		212,581
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		111			(122	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(35,143	)		(8,661	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		74,837			50,307
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	39,694		$	41,646
Supplemental disclosure of cash flow information:
Construction in progress — leased facilities	$	87,642		$	(22,117	)
Accrued property and equipment	$	(3,469	)	$	(7,966	)
Cash paid for interest	$	3,928		$	6,511
Cash paid for income taxes	$	60,768		$	160,850

Store Count and Square Footage

The stores that opened during the third quarter of 2009 are as follows:

DICK’S SPORTING GOODS
Store	Market	Store	Market
Martinsburg, WV	Hagerstown	Hillsboro, OR	Portland
North Macon, GA	Macon	Eugene, OR	Eugene
Albany, NY (relo)	Albany	Salem, OR	Portland
D’lberville, MS	Biloxi	Lake Oswego, OR	Portland
Collegeville, PA	Philadelphia	Bend, OR	Bend
Austin, TX	Austin	Gresham, OR	Portland

The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated:

	Fiscal 2009										Fiscal 2008
	Dick’s				Chick’s						Dick’s				Chick’s
	Sporting		Golf		Sporting						Sporting		Golf		Sporting
	Goods		Galaxy		Goods			Total			Goods		Galaxy		Goods			Total
Beginning stores		384		89		14			487			340		79		15			434
Q1 New		9		1		—			10			8		4		—			12
Q2 New		4		—		—			4			9		1		—			10
Q3 New		11		—		—			11			26		1		—			27
		408		90		14			512			383		85		15			483
Closed		—		—		(2	)		(2	)		—		—		—			—
Converted		12		1		(12	)		1			1		—		(1	)		—
Ending stores		420		91		—			511			384		85		14			483
Relocated stores		1		—		—			—			1		—		—			1

Square Footage:
(in millions)

	Dick’s				Chick’s
	Sporting		Golf		Sporting
	Goods		Galaxy		Goods		Total
Q1 2008		19.5		1.3		0.8		21.6
Q2 2008		20.0		1.3		0.8		22.1
Q3 2008		21.4		1.4		0.7		23.5
Q4 2008		21.4		1.5		0.7		23.6
Q1 2009		22.0		1.5		0.6		24.1
Q2 2009		22.7		1.5		—		24.2
Q3 2009		23.4		1.5		—		24.9

Non-GAAP Financial Measures

In addition to reporting the Company’s financial results in accordance with generally accepted accounting principles (“GAAP”), the Company provides information regarding net income and earnings per diluted share adjusted for merger and integration costs, pro-forma comparable store sales, earnings before interest, taxes and depreciation (“EBITDA”) as well as a reconciliation from the Company’s gross capital expenditures, net of tenant allowances. The following measures are considered non-GAAP and are not preferable to GAAP financial information; however, the Company believes this information provides additional measures of performance that the Company’s management, analysts and investors can use to compare core, operating results between reporting periods. These non-GAAP measures are provided below and on the Company’s website at http://www.dickssportinggoods.com/ (click on the Investor Relations link at the top of the home page). The Company’s website is not part of this press release.

Non-GAAP Net Income and Earnings Per Share Reconciliation
(in thousands, except per share data):

	Fiscal 2009
	39 Weeks Ended October 31, 2009
			Merger and
	As		Integration			Non-GAAP
	Reported		Costs			Total
Net sales	$	3,076,245	$	—		$	3,076,245
Cost of goods sold, including occupancy and distribution costs		2,249,091		—			2,249,091
GROSS PROFIT		827,154		—			827,154
Selling, general and administrative expenses		695,298		—			695,298
Merger and integration costs		10,113		(10,113	)		—
Pre-opening expenses		9,243		—			9,243
INCOME FROM OPERATIONS		112,500		10,113			122,613
Interest expense, net		1,854		—			1,854
INCOME BEFORE INCOME TAXES		110,646		10,113			120,759
Provision for income taxes		42,646		4,045			46,691
NET INCOME	$	68,000	$	6,068		$	74,068
EARNINGS PER COMMON SHARE:
Basic	$	0.60				$	0.66
Diluted	$	0.58				$	0.63
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		112,699					112,699
Diluted		117,385					117,385

Refer to the Company’s press release dated March 10, 2009 announcing its results for the fourth quarter and year ended January 31, 2009 for a reconciliation of non-GAAP net income and earnings per share for fiscal 2008 and to the Company’s press release dated November 20, 2008 announcing its results for the third fiscal quarter ended November 1, 2008 for a reconciliation of non-GAAP net income and earnings per share for the 13 and 39 weeks ended November 1, 2008.

Pro-forma Comparable Store Sales

The following pro-forma comparable store sales present information as if Golf Galaxy had been acquired at the beginning of the periods presented. The sales have been adjusted to conform to the Company’s reporting calendar and method of reporting comparable sales. Golf Galaxy is included in the quarterly comparable store base beginning in Q2 2008, which is the first full quarter following the anniversary of the date of acquisition.

	Dick’s
	Sporting			Golf
	Goods			Galaxy			Consolidated
39 weeks ended November 1, 2008		-3.4	%		-6.7	%		-3.7	%

EBITDA

EBITDA should not be considered as an alternative to net income or any other generally accepted accounting principles measure of performance or liquidity. EBITDA, as the Company has calculated it, may not be comparable to similarly titled measures reported by other companies. EBITDA is a key metric used by the Company that provides a measurement of profitability that eliminates the effect of changes resulting from financing decisions, tax regulations, and capital investments.

	13 Weeks Ended
	October 31,			November 1,
EBITDA	2009			2008
	(dollars in thousands)
Net income	$	18,854		$	6,184
Provision for income taxes		12,729			2,501
Interest expense, net		173			4,917
Depreciation and amortization		24,765			23,614
Less: Depreciation and amortization (merger integration)		—			(351	)
Add: Merger and integration costs		—			3,096
EBITDA	$	56,521		$	39,961
% increase in EBITDA		41	%

	39 Weeks Ended
	October 31,			November 1,
EBITDA	2009			2008
	(dollars in thousands)
Net income	$	68,000		$	65,726
Provision for income taxes		42,646			46,964
Interest expense, net		1,854			12,915
Depreciation and amortization		75,959			65,826
Less: Depreciation and amortization (merger integration)		(2,478	)		(451	)
Add: Merger and integration costs		10,113			5,975
Less: Gain on sale of asset		—			(2,356	)
EBITDA	$	196,094		$	194,599
% increase in EBITDA		1	%

Reconciliation of Gross Capital Expenditures to Capital Expenditures

The following table represents a reconciliation of the Company’s gross capital expenditures to its capital expenditures, net of tenant allowances.

	39 Weeks Ended
	October 31,			November 1,
	2009			2008
	(dollars in thousands)
Gross capital expenditures	$	(87,814	)	$	(159,928	)
Proceeds from sale-leaseback transactions		23,538			24,278
Changes in deferred construction allowances		8,846			17,452
Construction allowance receipts		7,022			10,424
Net capital expenditures	$	(48,408	)	$	(107,774	)