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Whole Foods Market, Inc.
Consolidated Statements of Operations - Non-GAAP basis
(In thousands, except per share amounts)


                                                                                                    Fifty-two weeks ended
                                                                          September 24, 2006                                       September 25, 2005
                                                                          Stock        Natural                                   Stock        Natural
                                                            GAAP        Acceleration Disaster     Non-GAAP            GAAP     Acceleration Disaster     Non-GAAP
Sales                                                    $ 5,607,376    $      -     $     -     $ 5,607,376       $ 4,701,289 $      -     $     -     $ 4,701,289
Cost of goods sold and occupancy costs                     3,647,734           (206)        879    3,648,407         3,052,184      (1,192)     (2,122) 3,048,870
  Gross profit                                             1,959,642            206        (879) 1,958,969           1,649,105       1,192       2,122    1,652,419
Direct store expenses                                      1,421,968         (1,740)      4,232    1,424,460         1,223,473    (10,092)     (13,399) 1,199,982
General and administrative expenses                          181,244         (1,054)       -         180,190           158,864      (6,109)     (1,000)     151,755
  Operating income before pre-opening                        356,430          3,000      (5,111)     354,319           266,768     17,393       16,521      300,682
Pre-opening and relocation costs                              37,421           -           -          37,421            37,035        -           -          37,035
  Operating income                                           319,009          3,000      (5,111)     316,898           229,733     17,393       16,521      263,647
Other income (expense):
Interest expense                                                  (32)         -             -              (32)        (2,223)        -           -           (2,223)
Investment and other income                                    20,736          -           (2,121)       18,615          9,623         -           -            9,623
  Income before income taxes                                  339,713         3,000        (7,232)      335,481        237,133       17,393      16,521       271,047
Provision for income taxes                                    135,885           640        (2,893)      133,632        100,782        2,976       6,608       110,366
  Net income                                             $    203,828 $       2,360 $      (4,339) $    201,849    $   136,351 $     14,417 $     9,913 $     160,681

Basic earnings per share                                  $      1.46 $    0.02 $   (0.03) $    1.45               $      1.05 $    0.11 $    0.08 $    1.24
Weighted average shares outstanding                           139,328   139,328   139,328    139,328                   130,090   130,090   130,090   130,090

Diluted earnings per share                                $      1.41 $    0.02 $   (0.03) $    1.39               $      0.99 $    0.10 $    0.07 $    1.17
Weighted average shares outstanding, diluted basis            145,082   145,082   145,082    145,082                   139,950   139,950   139,950   139,950

Dividends per share                                       $      2.45                               $      2.45    $      0.47                            $      0.47

A reconciliation of the numerators and denominators of the basic and diluted earnings per share
  calculations follows (in thousands):


                                                                     Stock       Natural                                       Stock      Natural
                                                           GAAP    Acceleration Disaster    Non-GAAP                 GAAP    Acceleration Disaster   Non-GAAP
Net income (numerator for basic earnings per share)      $ 203,828 $     2,360 $   (4,339) $ 201,849               $ 136,351 $   14,417 $     9,913 $ 160,681
Interest on 5% zero coupon convertible subordinated
  debentures, net of income taxes                                 283          -             -             283           2,539         -           -            2,539
Adjusted net income (numerator for diluted earnings
  per share)                                             $    204,111 $       2,360 $      (4,339) $    202,132    $   138,890 $     14,417 $     9,913 $     163,220
Weighted average common shares outstanding
  (denominator for basic earnings per share)                  139,328       139,328       139,328       139,328        130,090      130,090     130,090       130,090
Potential common shares outstanding:
  Assumed conversion of 5% zero coupon
  convertible subordinated debentures                             363           363           363           363          3,414        3,414       3,414         3,414
  Assumed exercise of stock options                             5,391         5,391         5,391         5,391          6,446        6,446       6,446         6,446
Weighted average common shares outstanding and
  potential additional common shares outstanding
  (denominator for diluted earnings per share)                145,082       145,082       145,082       145,082        139,950      139,950     139,950       139,950

Basic earnings per share                                  $      1.46 $        0.02   $      (0.03) $      1.45    $      1.05 $       0.11 $      0.08 $        1.24
Diluted earnings per share                                $      1.41 $        0.02   $      (0.03) $      1.39    $      0.99 $       0.10 $      0.07 $        1.17

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fr06_is-nongaap

  • 1. Whole Foods Market, Inc. Consolidated Statements of Operations - Non-GAAP basis (In thousands, except per share amounts) Fifty-two weeks ended September 24, 2006 September 25, 2005 Stock Natural Stock Natural GAAP Acceleration Disaster Non-GAAP GAAP Acceleration Disaster Non-GAAP Sales $ 5,607,376 $ - $ - $ 5,607,376 $ 4,701,289 $ - $ - $ 4,701,289 Cost of goods sold and occupancy costs 3,647,734 (206) 879 3,648,407 3,052,184 (1,192) (2,122) 3,048,870 Gross profit 1,959,642 206 (879) 1,958,969 1,649,105 1,192 2,122 1,652,419 Direct store expenses 1,421,968 (1,740) 4,232 1,424,460 1,223,473 (10,092) (13,399) 1,199,982 General and administrative expenses 181,244 (1,054) - 180,190 158,864 (6,109) (1,000) 151,755 Operating income before pre-opening 356,430 3,000 (5,111) 354,319 266,768 17,393 16,521 300,682 Pre-opening and relocation costs 37,421 - - 37,421 37,035 - - 37,035 Operating income 319,009 3,000 (5,111) 316,898 229,733 17,393 16,521 263,647 Other income (expense): Interest expense (32) - - (32) (2,223) - - (2,223) Investment and other income 20,736 - (2,121) 18,615 9,623 - - 9,623 Income before income taxes 339,713 3,000 (7,232) 335,481 237,133 17,393 16,521 271,047 Provision for income taxes 135,885 640 (2,893) 133,632 100,782 2,976 6,608 110,366 Net income $ 203,828 $ 2,360 $ (4,339) $ 201,849 $ 136,351 $ 14,417 $ 9,913 $ 160,681 Basic earnings per share $ 1.46 $ 0.02 $ (0.03) $ 1.45 $ 1.05 $ 0.11 $ 0.08 $ 1.24 Weighted average shares outstanding 139,328 139,328 139,328 139,328 130,090 130,090 130,090 130,090 Diluted earnings per share $ 1.41 $ 0.02 $ (0.03) $ 1.39 $ 0.99 $ 0.10 $ 0.07 $ 1.17 Weighted average shares outstanding, diluted basis 145,082 145,082 145,082 145,082 139,950 139,950 139,950 139,950 Dividends per share $ 2.45 $ 2.45 $ 0.47 $ 0.47 A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations follows (in thousands): Stock Natural Stock Natural GAAP Acceleration Disaster Non-GAAP GAAP Acceleration Disaster Non-GAAP Net income (numerator for basic earnings per share) $ 203,828 $ 2,360 $ (4,339) $ 201,849 $ 136,351 $ 14,417 $ 9,913 $ 160,681 Interest on 5% zero coupon convertible subordinated debentures, net of income taxes 283 - - 283 2,539 - - 2,539 Adjusted net income (numerator for diluted earnings per share) $ 204,111 $ 2,360 $ (4,339) $ 202,132 $ 138,890 $ 14,417 $ 9,913 $ 163,220 Weighted average common shares outstanding (denominator for basic earnings per share) 139,328 139,328 139,328 139,328 130,090 130,090 130,090 130,090 Potential common shares outstanding: Assumed conversion of 5% zero coupon convertible subordinated debentures 363 363 363 363 3,414 3,414 3,414 3,414 Assumed exercise of stock options 5,391 5,391 5,391 5,391 6,446 6,446 6,446 6,446 Weighted average common shares outstanding and potential additional common shares outstanding (denominator for diluted earnings per share) 145,082 145,082 145,082 145,082 139,950 139,950 139,950 139,950 Basic earnings per share $ 1.46 $ 0.02 $ (0.03) $ 1.45 $ 1.05 $ 0.11 $ 0.08 $ 1.24 Diluted earnings per share $ 1.41 $ 0.02 $ (0.03) $ 1.39 $ 0.99 $ 0.10 $ 0.07 $ 1.17