Sleep Number (SNBR) 8-K Results of Operations and Financial Condition

FOR IMMEDIATE RELEASE

Media Contact: Gabby Nelson (763) 551-7460 gabby.nelson@selectcomfort.com Investor Contact: Jim Raabe (763) 551-7498 investorrelations@selectcomfort.com  

select comfort ANNOUNCES FOURTH quarter

and full-year 2009 results

Reports Fourth Quarter Net Income of $0.69 Per Share, $0.08 Per Share on an Adjusted Basis;

23 Percent Increase in Same-store Sales; Elimination of Debt

MINNEAPOLIS – (Feb. 10, 2010) – Select Comfort Corporation (NASDAQ: SCSS) today reported fourth quarter and fiscal 2009 results for the period ended Jan. 2, 2010. Net sales for the quarter totaled $136.5 million, an increase of 4 percent on same-store growth of 23 percent, compared to $131.1 million in the fourth quarter of 2008, which included a 14-week selling period as compared to 13 weeks in 2009. The company reported fourth quarter net income of $35.3 million, or $0.69 per diluted share, compared to a net loss of $57.4 million, or $1.30 per diluted share, in the fourth quarter of 2008. 

Both 2008 and 2009 periods included valuation allowance adjustments for income taxes and asset impairment charges. Adjusting for these items, net income would have been $0.08 per share in the fourth quarter of 2009 as compared to a net loss of $0.26 per share in the same period a year ago. A reconciliation is provided at the end of this news release.

“Our fourth quarter and full-year performance reflects strong execution against a set of initiatives that focused on controlling costs, building our brand for improved sales and preserving cash. The result is significantly improved profitability, with the company experiencing two consecutive quarters of same-store sales growth,” said Bill McLaughlin, president and CEO, Select Comfort Corporation. “The strategic focus and our improved business performance positions us well for continued same-store sales growth and improved profitability throughout 2010.”

-more-

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page2of 13

“The company’s consistent cash generation in 2009, along with efforts to restructure our balance sheet, has allowed us to eliminate our debt,” said Jim Raabe, chief financial officer, Select Comfort Corporation. “This return to a positive cash position provides the flexibility to balance cash preservation with prospects for investments in growth.”

Fourth Quarter and Full-Year Summary

During the fourth quarter, net sales increased by 4 percent as compared to the year-ago period, and were up 9 percent after adjusting for the additional week in 2008. The increase in sales was driven by a 23 percent increase in same-store sales, offset by the impact of the closure of 72 stores since the beginning of 2009 and the termination of retail partner relationships totaling approximately 700 doors at the end of the third quarter 2009. These closed stores and retail partner terminations contributed $12.0 million in sales in the fourth quarter of 2008.

Gross profit margins increased 700 basis points from 55.9 percent of net sales in the prior-year period to 62.9 percent in fourth quarter 2009. The increase reflects improved product mix and cost restructuring initiatives completed during 2009.

Sales and marketing costs in the fourth quarter of 2009 decreased by 12 percent to $64.8 million, representing 47.5 percent of net sales, an improvement of 900 basis points versus the prior year. This compares to $74.0 million, or 56.5 percent of net sales in the prior-year period. Media investments in the fourth quarter totaled $16.1 million, 17 percent lower and more effective than the year-ago period. General and administrative expenses equaled $12.7 million in the fourth quarter, or 9.3 percent of net sales. This compares to $16.1 million, or 12.3 percent of net sales, in the fourth quarter of 2008.

Cash flows from operating activities were $66.6 million for full-year 2009, which includes $26.1 million in tax refunds associated with prior-year losses. This compares to $3.0 million of cash flows from operating activities for full-year 2008. The company reduced 2009 capital expenditures to $2.5 million, compared to $32.2 million in the prior year. As of year-end 2009, cash and cash

-more-

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 3 of 13

equivalents totaled $17.7 million and the company had no borrowings under its revolving credit agreement as compared to outstanding debt of $79.2 million at 2008 year-end. The company is in compliance with all bank covenants.

Net sales for 2009 totaled $544.2 million, a decrease of 11 percent as compared to $608.5 million in 2008. The company reported a net profit of $35.6 million, or $0.77 per diluted share in 2009, compared to a net loss of $70.2 million, or $1.59 per diluted share in 2008. 

Both 2008 and 2009 periods included valuation allowance adjustments for income taxes and asset impairment charges while 2009 also included costs associated with a terminated financing transaction. Adjusting for these items, net income would have been $0.25 per share in fiscal 2009 as compared to a net loss of $0.51 per share in the same period a year ago. A reconciliation is provided at the end of this news release.

Fiscal 2010 Outlook

The company expects to increase earnings per share in 2010 by 30 percent to 50 percent to between $0.32 and $0.38 per share, as compared to adjusted earnings of $0.25 per share in 2009.  This outlook reflects the improved cost structure of the business and a cautious outlook about economic trends for 2010. The company is pleased with early 2010 sales trends and expects to generate positive same-store growth throughout the year. The comparison of 2010 and 2009 sales levels will be impacted by store closures and retail partner terminations in 2009, which together generated approximately $35.0 million in sales in 2009.

The company ended 2009 with 403 stores and expects to end 2010 with between 380 and 390 stores after the consolidation of planned store openings and closings. The company expects that 2010 capital expenditures will be approximately $10.0 million.

Conference Call

Management will host its regularly scheduled conference call to discuss the company’s results at 5 p.m. Eastern Time (4 p.m. Central; 2 p.m. Pacific) today. To listen to the call, please dial (800) 593-9959 (international participants dial (517) 308-9340) and reference the passcode “Sleep.”

-more-

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 4 of 13

To access the webcast, please visit the investor relations area of the Select Comfort Web site.

A webcast replay will remain available until midnight Central Time, Feb. 19, 2010, by dialing (203) 369-3972. The webcast replay will remain available in the investor relations area of the company’s Web site for approximately 60 days.

About Select Comfort Corporation

Founded more than 20 years ago and based in Minneapolis, Select Comfort Corporation designs, manufactures, markets and supports a line of adjustable-firmness mattresses featuring air-chamber technology, branded the Sleep Number^® bed, as well as foundations and bedding accessories. SELECT COMFORT^® products are sold through its approximately 400 company-owned stores located across the United States; select bedding retailers; direct marketing operations; and online at www.sleepnumber.com. 

Forward-Looking Statements

Statements used in this news release relating to future plans, events, financial results or performance are forward-looking statements subject to certain risks and uncertainties including, among others, such factors as current general and industry economic trends; consumer confidence; the effectiveness of our marketing messages; the efficiency of our advertising and promotional efforts; consumer acceptance of our products, product quality, innovation and brand image; availability of attractive and cost-effective consumer credit options; execution of our retail store distribution strategy, including our ability to cost-effectively close under-performing store locations; our dependence on significant suppliers, and our ability to maintain relationships with key suppliers, including several sole-source suppliers; the vulnerability of key supp liers to recessionary pressures, labor negotiations, liquidity concerns or other factors; rising commodity costs and other inflationary pressures; industry competition; our ability to continue to improve our product line; warranty expenses; risks of pending and potentially unforeseen litigation; our ability to fund our operations through cash flow from operations or availability under our bank line of credit or other sources, increasing government regulations, including new flammability

-more-

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 5 of 13

standards for the bedding industry and new safety standards for consumer products, which have or will add product cost pressures and have or will require implementation of systems and manufacturing process changes to ensure compliance; the adequacy of our management information systems to meet the evolving needs of our business and evolving regulatory standards applicable to data privacy and security; our ability to attract and retain senior leadership and other key employees, including qualified sales professionals; and uncertainties arising from global events, such as terrorist attacks or a pandemic outbreak, or the threat of such events. Additional information concerning these and other risks and uncertainties is contained in our filings with the SEC, including our Annual Report on Form 10-K, and other periodic reports filed with the SEC. The company has n o obligation to publicly update or revise any of the forward-looking statements in this news release.

# # #

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 6 of 13

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Statements of Operations

(unaudited – in thousands, except per share amounts)

	Three Months Ended
	January 2, 2010			% of Net Sales		January 3, 2009			% of Net Sales
Net sales	$	136,471		100.0%		$	131,073		100.0%
Cost of sales		50,690		37.1%			57,827		44.1%
Gross profit		85,781		62.9%			73,246		55.9%
Operating expenses:
Sales and marketing		64,827		47.5%			73,994		56.5%
General and administrative		12,704		9.3%			16,114		12.3%
Research and development		573		0.4%			1,295		1.0%
Asset impairment charges		198		0.1%			32,060		24.5%
Total operating expenses		78,302		57.4%			123,463		94.2%
Operating income (loss)		7,479		5.5%			(50,217	)	(38.3%	)
Interest expense / other		(1,032	)	(0.8%	)		(1,289	)	(1.0%	)
Income (loss) before income taxes		6,447		4.7%			(51,506	)	(39.3%	)
Income tax (benefit) expense		(28,862	)	(21.1%	)		5,930		4.5%
Net income (loss)	$	35,309		25.9%		$	(57,436	)	(43.8%	)
Net income (loss) per share – basic	$	0.73				$	(1.30	)
Net income (loss) per share – diluted	$	0.69				$	(1.30	)
Reconciliation of weighted-average shares outstanding:
Basic weighted-average shares outstanding		48,375					44,305
Effect of dilutive securities:
Options		1,502					—
Restricted shares		468					—
Warrants		692					—
Diluted weighted-average shares outstanding1		51,037					44,305

¹For the three months ended January 3, 2009, potentially dilutive securities have been excluded from the calculation of diluted weighted average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share.

Note: The fourth quarter of fiscal 2009 included one less week as compared to fiscal 2008.

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 7 of 13

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share amounts)

	Twelve Months Ended
	January 2, 2010			% of Net Sales		January 3, 2009			% of Net Sales
Net sales	$	544,202		100.0%		$	608,524		100.0%
Cost of sales		208,742		38.4%			249,952		41.1%
Gross profit		335,460		61.6%			358,572		58.9%
Operating expenses:
Sales and marketing		259,244		47.6%			332,068		54.6%
General and administrative		49,560		9.1%			57,994		9.5%
Research and development		1,973		0.4%			3,374		0.6%
Terminated equity financing costs		3,324		0.6%			—		0.0%
Asset impairment charges		686		0.1%			34,594		5.7%
Total operating expenses		314,787		57.8%			428,030		70.3%
Operating income (loss)		20,673		3.8%			(69,458	)	(11.4%	)
Interest expense / other		(5,983	)	(1.1%	)		(3,285	)	(0.5%	)
Income (loss) before income taxes		14,690		2.7%			(72,743	)	(12.0%	)
Income tax benefit		(20,862	)	(3.8%	)		(2,566	)	(0.4%	)
Net income (loss)	$	35,552		6.5%		$	(70,177	)	(11.5%	)
Net income (loss) per share – basic	$	0.78				$	(1.59	)
Net income (loss) per share – diluted	$	0.77				$	(1.59	)
Reconciliation of weighted-averageshares outstanding:
Basic weighted-average shares outstanding		45,682					44,186
Effect of dilutive securities:
Options		219					—
Restricted shares		269					—
Warrants		28					—
Diluted weighted-average shares outstanding1		46,198					44,186

¹For the twelve months ended January 3, 2009, potentially dilutive securities have been excluded from the calculation of diluted weighted average shares outstanding, as their inclusion would have had an anti-dilutive effect on our net loss per diluted share.

Note: Fiscal 2009 included 52 weeks, as compared to 53 weeks in fiscal 2008.

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 8 of 13

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except per share amounts)

subject to reclassification

	January 2, 2010			January 3, 2009
Assets
Current assets:
Cash and cash equivalents	$	17,717		$	13,057
Accounts receivable, net of allowance for doubtful accounts of $379 and $713, respectively		5,094			4,939
Inventories		15,646			18,675
Income taxes receivable		3,893			25,900
Prepaid expenses		5,879			4,109
Deferred income taxes		5,153			1,323
Other current assets		720			1,150
Total current assets		54,102			69,153
Property and equipment, net		37,682			53,274
Deferred income taxes		19,071			5,941
Other assets		7,385			7,045
Total assets	$	118,240		$	135,413
Liabilities and Shareholders’ Equity (Deficit)
Current liabilities:
Borrowings under revolving credit facility	$	—		$	79,150
Accounts payable		37,538			40,274
Customer prepayments		11,237			11,480
Accruals:
Sales returns		2,885			2,744
Compensation and benefits		15,518			14,575
Taxes and withholding		4,528			2,938
Other current liabilities		7,831			8,526
Total current liabilities		79,537			159,687
Non-current liabilities:
Warranty liabilities		5,286			5,956
Capital lease obligations		262			621
Other long-term liabilities		10,697			10,779
Total non-current liabilities		16,245			17,356
Total liabilities		95,782			177,043
Shareholders’ equity (deficit):
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $0.01par value; 142,500 shares authorized, 54,310 and 44,962 shares issued and outstanding, respectively		543			450
Additional paid-in capital		32,860			4,417
Accumulated deficit		(10,945	)		(46,497	)
Total shareholders’ equity (deficit)		22,458			(41,630	)
Total liabilities and shareholders’ equity (deficit)	$	118,240		$	135,413

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 9 of 13

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

subject to reclassification

	Twelve Months Ended
	January 2, 2010			January 3, 2009
Cash flows from operating activities:
Net income (loss)	$	35,552		$	(70,177	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		19,054			22,186
Stock-based compensation		3,236			3,702
Disposals and impairments of assets		683			34,577
Excess tax benefits from stock-based compensation		—			(19	)
Changes in deferred income taxes		(18,209	)		25,075
Change in operating assets and liabilities:
Accounts receivable		(155	)		13,963
Inventories		3,029			13,842
Income taxes receivable		22,007			(25,900	)
Prepaid expenses and other assets		(1,776	)		7,627
Accounts payable		2,545			(20,047	)
Customer prepayments		(243	)		3,153
Accrued sales returns		141			(1,007	)
Accrued compensation and benefits		943			(250	)
Accrued taxes and withholding		1,604			(1,846	)
Warranty liabilities		(906	)		(1,454	)
Other accruals and liabilities		(866	)		(452	)
Net cash provided by operating activities		66,639			2,973
Cash flows from investing activities:
Purchases of property and equipment		(2,459	)		(32,202	)
Proceeds from sales of property and equipment		15			—
Net cash used in investing activities		(2,444	)		(32,202	)
Cash flows from financing activities:
Net (decrease) increase in short-term borrowings		(84,756	)		35,809
Proceeds from issuance of common stock		26,534			651
Excess tax benefits from stock-based compensation		—			19
Debt issuance costs		(1,313	)		(1,472	)
Net cash (used in) provided by financing activities		(59,535	)		35,007
Increase in cash and cash equivalents		4,660			5,778
Cash and cash equivalents, at beginning of period		13,057			7,279
Cash and cash equivalents, at end of period	$	17,717		$	13,057

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 10 of 13

SELECT COMFORT CORPORATION

AND SUBSIDIARIES

Supplemental Financial Information

(unaudited)

	Three Months Ended						Twelve Months Ended
	January 2, 2010			January 3, 2009			January 2, 2010			January 3, 2009
Percent of sales:
Retail		83.1%			80.9%			81.2%			78.2%
Direct		6.2%			6.9%			6.2%			7.7%
E-Commerce		5.7%			6.0%			5.3%			6.1%
Wholesale		5.0%			6.2%			7.3%			8.0%
Total		100.0%			100.0%			100.0%			100.0%
Sales growth rates:
Comparable-store sales1		23%			(29%	)		0%			(25%	)
Net closed stores/other		(16%	)		4%			(7%	)		4%
Retail total		7%			(25%	)		(7%	)		(21%	)
Direct		(7%	)		(37%	)		(29%	)		(26%	)
E-Commerce		1%			(41%	)		(22%	)		(32%	)
Total Company-Controlled Channels		6%			(28%	)		(10%	)		(22%	)
Wholesale		(18%	)		(61%	)		(19%	)		(38%	)
Total		4%			(31%	)		(11%	)		(24%	)
Stores open:
Beginning of period		408			475			471			478
Opened		2			1			4			19
Closed		(7)			(5	)		(72	)		(26	)
End of period		403			471			403			471
Retail partner doors2		146			801			146			801
Other metrics:
Average sales per store ($ in 000’s)3	$	1,046		$	984
Average sales per square foot ($s)3	$	710		$	703
Stores > $1 million net sales3		48%			45%
Average mattress sales per mattress unit (Company-controlled channels; $s)	$	1,755		$	1,712		$	1,743		$	1,764

¹Fiscal 2009 included 52 weeks, as compared to 53 weeks in fiscal 2008.  The additional week in 2008 was in the fiscal fourth quarter.  Comparable-store sales have been adjusted and reported as if both years had the same number of weeks.

²On August 11, 2009 we announced our decision to discontinue distribution through non-company owned mattress retailers in the contiguous United States. This change is part of the company’s effort to reignite the Sleep Number brand and continue to advance its distribution strategy. The decision was mutually agreed upon with the company’s retail partners and did not have a significant impact on sales or profit in 2009.

³Trailing twelve months for stores open at least one year.

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 11 of 13

SELECT COMFORT CORPORATION AND SUBSIDIARIES

Reported to Adjusted Statements of Operations Data Reconciliation

(in thousands, except per share amounts)

	Three Months Ended
	January 2, 2010										January 3, 2009
	As Reported			Impairments(1)		Tax Valuation(2)			As Adjusted		As Reported			Impairments(1)		Tax Valuation(2)			As Adjusted
Operating income (loss)	$	7,479		$	198	$	—		$	7,677	$	(50,217	)	$	32,060	$	—		$	(18,157	)
Income (loss) before income taxes		6,447			198		—			6,645		(51,506	)		32,060		—			(19,446	)
Income tax (benefit) expense(3)		(28,862	)		75		31,312			2,525		5,930			12,818		(26,840	)		(8,092	)
Net income (loss)	$	35,309		$	123	$	(31,312	)	$	4,120	$	(57,436	)	$	19,242	$	26,840		$	(11,354	)
Net income (loss) per share –
Basic	$	0.73		$	0.00	$	(0.65	)	$	0.09	$	(1.30	)	$	0.43	$	0.61		$	(0.26	)
Diluted	$	0.69		$	0.00	$	(0.61	)	$	0.08	$	(1.30	)	$	0.43	$	0.61		$	(0.26	)
Basic Shares		48,375			48,375		48,375			48,375		44,305			44,305		44,305			44,305
Diluted Shares		51,037			51,037		51,037			51,037		44,305			44,305		44,305			44,305

(1)	Period ended January 2, 2010 includes impairment charges for underperforming stores
	Period ended January 3, 2009 includes impairment charges for the abandonment of our plan to implement SAP-based applications and underperforming stores
(2)	In the fourth quarter of fiscal 2008, we established a $26.8 million valuation allowance against deferred taxes based on uncertainty regarding future taxable income.
	In the fourth quarter of 2009, we reversed the valuation allowance against deferred taxes based on all available positive and negative evidence.  As adjusted income tax expense, for the period ended January 2, 2010, is presented on a normalized basis using an effective tax rate of 38.0%
(3)	Reflects annual effective tax rate, before discrete adjustments, of 38.0% and 40.0%, respectively, for the periods ended January 2, 2010 and January 3, 2009
	Note -	Our “as adjusted” data is considered a non-GAAP financial measure and is not in accordance with, or preferable to, “as reported,” or GAAP financial data.  However, we are providing this information as we believe it facilitates year-over-year comparisons for investors and financial analysts
	GAAP - generally accepted accounting principles

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 12 of 13

SELECT COMFORT CORPORATION AND SUBSIDIARIES

Reported to Adjusted Statements of Operations Data Reconciliation

(in thousands, except per share amounts)

	Fiscal Years Ended
	January 2, 2010												January 3, 2009
	As Reported			Terminated Equity Financing(1)		Impairments(2)		Tax Valuation(3)			As Adjusted		As Reported			Impairments(2)		Tax Valuation(3)			As Adjusted
Operating income (loss)	$	20,673		$	3,324	$	686	$	—		$	24,683	$	(69,458	)	$	34,594	$	—		$	(34,864	)
Income (loss) before income taxes		14,690			3,324		686		—			18,700		(72,743	)		34,594		—			(38,149	)
Income tax (benefit) expense(4)		(20,862	)		1,263		261		26,444			7,106		(2,566	)		13,831		(26,840	)		(15,575	)
Net income (loss)	$	35,552		$	2,061	$	425	$	(26,444	)	$	11,594	$	(70,177	)	$	20,763	$	26,840		$	(22,574	)
Net income (loss) per share –
Basic	$	0.78		$	0.05	$	0.01	$	(0.58	)	$	0.25	$	(1.59	)	$	0.47	$	0.61		$	(0.51	)
Diluted	$	0.77		$	0.04	$	0.01	$	(0.57	)	$	0.25	$	(1.59	)	$	0.47	$	0.61		$	(0.51	)
Basic Shares		45,682			45,682		45,682		45,682			45,682		44,186			44,186		44,186			44,186
Diluted Shares		46,198			46,198		46,198		46,198			46,198		44,186			44,186		44,186			44,186

(1)	Period ended January 2, 2010 includes $3.3 million in terminated equity financing expenses
(2)	Period ended January 2, 2010 includes impairment charges for underperforming stores
	Period ended January 3, 2009 includes impairment charges for the abandonment of our plan to implement SAP-based applications and underperforming stores
(3)	In the fourth quarter of fiscal 2008, we established a $26.8 million valuation allowance against deferred taxes based on uncertainty regarding future taxable income.
	In the fourth quarter of 2009, we reversed the valuation allowance against deferred taxes based on all available positive and negative evidence.  As adjusted income tax expense, for the period ended January 2, 2010, is presented on a normalized basis using an effective tax rate of 38.0%
(4)	Reflects annual effective tax rate, before discrete adjustments, of 38.0% and 40.0%, respectively, for the periods ended January 2, 2010 and January 3, 2009
	Note -	Our “as adjusted” data is considered a non-GAAP financial measure and is not in accordance with, or preferable to, “as reported,” or GAAP financial data.  However, we are providing this information as we believe it facilitates year-over-year comparisons for investors and financial analysts
	GAAP - generally accepted accounting principles

SelectComfort Announces Fourth Quarter and Full-Year 2009 Results – Page 13of 13

SELECT COMFORT CORPORATION AND SUBSIDIARIES

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)

(in thousands)

We define earnings before interest, taxes, depreciation and amortization (EBITDA) as operating income before non-cash expenses including depreciation, amortization, stock-based compensation and asset impairments. Management believes EBITDA is a useful indicator of the Company's financial performance. EBITDA is also a measure of current financial performance used in our debt covenant calculations. Our definition of EBITDA may not be comparable to similarly titled definitions used by other companies. The tables below reconcile EBITDA, which is a non-GAAP financial measure, to comparable GAAP financial measures:

	Three Months Ended					Fiscal Years
	January 2, 2010		January 3, 2009			2009		2008
Operating income (loss)	$	7,479	$	(50,217	)	$	20,673	$	(69,458	)
Depreciation and amortization		3,441		4,760			17,681		21,635
Stock-based compensation		696		365			3,236		3,702
Asset impairments		198		32,060			686		34,594
EBITDA	$	11,814	$	(13,032	)	$	42,276	$	(9,527	)

Note -	Our EBITDA calculation is considered a non-GAAP financial measure and is not in accordance with, or preferable to, "as reported," or GAAP financial data. However, we are providing this information as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.
GAAP - generally accepted accounting principles