Dick’s Sporting Goods said on a regulatory filing that a “computation error” caused it to overstate its adjusted operating earnings in the fourth quarter by $23.4 million.
Dick’s said it should have recorded non-cash impairment and store closing charges of $32.8 million in the fourth quarter. Instead, charges of only $9.4 million were recorded on the line item in its initial report.
As a result of the correction, adjusted EBITDA (earnings before interest, tax, depreciation and amortization) in the fourth quarter increased 10.5 percent to $291.4 million from $263.6 million under the adjustment. In its report filed on March 7, Dick’s reported adjusted EBITDA rose 19.4 percent to $314.8 million from $263.6 million.
For the year as corrected, adjusted EBITDA grew 4.2 percent to $767.6 million from $736.4 million. Previously, Dick’s reported adjusted EBITDA advanced 7.4 percent to $791 million in 2016.
On Friday after the news, shares of Dick’s fell $2.13, or 4.2 percent, to $48.1.
Photo courtesy Dick’s Sporting Goods
