Investors, financial analysts, and other financial statement users typically consider
earnings before extraordinary items and discontinued items (above-the-line items) as more permanent and persistent, as compared to the bottom-line net income (below-the-line items).
(a)Operating Accruals is calculated as the difference between
earnings before extraordinary items (item 123) and cash flows from operations (item 308) as reported on the statement of cash flows.
We compare the information content of this earnings before goodwill measure with that of accounting
earnings before extraordinary items (denoted IB) and cash flow from operations (denoted CFO), by examining the relative explanatory power of each measure for market-adjusted stock returns.
During the half
earnings before extraordinary items climbed 29.4% to $200.4 million from $154.9 million.
For the fourth quarter the chain registered a 15.5% increase in
earnings before extraordinary items to $44.8 million, compared with adjusted figures from the prior year's final quarter of $38.8 million.
The combination store and supermarket operator reported an 88.8% rise in
earnings before extraordinary items to $55.7 million during the period ended March 26 from $29.5 million a year ago.
Fourth quarter
earnings before extraordinary items rose 14.4% to $108.3 million from $94.7 million in fiscal 1992, when no special items were recorded.
During the fourth quarter a lower effective tax rate helped push
earnings before extraordinary items up 25.7% to $86.5 million from $68.8 million in the final reporting period of 1992.
Had the debt refinancing and the stock offering occurred at the beginning of the company's fiscal year, Turley indicates that first-half
earnings before extraordinary items would have reached $26.2 million on a pro forma basis.
powered its way to a six-fold leap in
earnings before extraordinary items during the quarter that ended June 19.
The geometric rise in
earnings before extraordinary items was further stoked by a 12.4% decline in HSI's hefty interest costs to $46.7 million (or 2.2% of sales).
Factoring in a 35.8% decrease in its full-year LIFO charge to $26.2 million, a 4.8% drop in its interest expenses to $531.1 million from $558.1 million and a negligible decline in depreciation to $242 million, Kroger posted a 46% rise in pretax
earnings before extraordinary items to $168.6 million.