Adjusted EBITDA

The following is a summary of the calculation of Adjusted EBITDA for the thirteen and twenty-six weeks ending July 2, 2011 and June 30, 2012, respectively (in thousands):
       
Thirteen Weeks Ended Twenty-six Weeks Ended
July 2, 2011 June 30, 2012 July 2, 2011 June 30, 2012
Net Income $ 17,747 $ 18,911 $ 26,518 $ 21,182
Interest expense 17,338 11,594 34,659 25,660
Provision for income taxes 11,825 12,607 17,679 12,927
Depreciation and amortization expense 16,940 15,676 34,425 32,211
LIFO charges 550 500 1,000 1,250
Amortization of deferred financing costs 847 574 1,786 1,266
Non-cash stock compensation expense - 419 - 657
One-time IPO expenses - - - 519
Loss on debt extinguishment   -   -   -   13,304
 
Adjusted EBITDA $ 65,247 $ 60,281 $ 116,067 $ 108,976
 

The Company presents Adjusted EBITDA, a non-GAAP measure, to provide investors with a supplemental measure of its operating performance. The Company believes that Adjusted EBITDA is a useful performance measure and is used by the Company to facilitate a comparison of its operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting the Company’s business than measures under U.S. generally accepted accounting principles (‘‘GAAP’’) can provide alone. The Company’s board of directors and management also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance and for evaluating on a quarterly and annual basis actual results against such expectations, and as a performance evaluation metric in determining achievement of certain compensation programs and plans for employees, including its senior executives.

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