FOR
IMMEDIATE
RELEASE
COMPANY CONTACT:
Robert L.
LaPenta, Jr.
Vice President
–Treasurer
(609) 387-7800
ext. 1216
· Adjusted
EBITDA of $17.3 million versus ($4.6) million in Fiscal 2008.
· Gross
Margin Improves 330 basis points versus last year.
· Comparative
Store Sales increase of 0.2%.
· Total
sales increased $28.2 million, or 4.2%.
The
Company experienced an increase in net sales in the first quarter of Fiscal
2009. Net sales for the first quarter ended August 30, 2008 were
$707.0 million, compared with $678.8 million for the comparative period ended
September 1, 2007, a 4.2 % increase. This increase is primarily the
result of the Company opening 33 new stores during the past twelve months and
an increase in comparative store sales. Comparative store sales
increased 0.2% for the three months ended August 30, 2008 compared with the
three months ended September 1, 2007.
The
Company recorded a net loss of $32.5 million for the three months ended August
30, 2008 compared with a net loss of $50.4 million for the three months ended
September 1, 2007. The improvement in the Company’s net loss
position during the three months ended August 30, 2008 compared with the three
months ended September 1, 2007 is primarily attributable to increased net sales
and reduced cost of sales. Please refer to the Company’s
quarterly report on Form 10-Q for the quarter ended August 30, 2008 for further
discussion of the Company’s results.
Mark A.
Nesci, Chief Executive Officer, stated, “We are pleased that the hard
work and dedication of our employees has led to positive comparative store
sales as well as a significant improvement in Adjusted EBITDA. This
is a positive start to our fiscal year. We remain cautiously
optimistic during these uncertain macro-economic times and realize that
any progress will require the continued hard work and dedication from all
areas of the business.”
First
Quarter Fiscal 2009 Conference Call
The
Company will hold a conference call for investors on Friday, October 17, 2008
at 10:00 a.m. eastern time to discuss the Company’s first quarter Fiscal
2009 operating results. To participate in the call, please dial 1-800-952-1438.
This conference call will be recorded and available for replay beginning one
hour after the end of the call and will be available through October 18, 2008
at 12:00 p.m. eastern time. To access the replay, please dial 1-800-633-8284,
then the access number, 21396502.
About
Burlington
Coat Factory is a nationally recognized retailer of high-quality, branded
apparel at every day low prices. We currently serve our customers through our
423 stores in 44 states and
This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. As such, final results
could differ from estimates or expectations due to risks and uncertainties,
including among others, competition in the retail industry, seasonality of
our business, adverse weather conditions, changes in consumer preferences and
consumer spending patterns, import risks, inflation, general economic
conditions, our ability to implement our strategy, our substantial level of
indebtedness and related debt-service obligations, restrictions imposed by
covenants in our debt agreements, availability of adequate financing, our
dependence on vendors for our merchandise, events affecting the delivery of
merchandise to our stores, existence of adverse litigation, availability of
desirable locations on suitable terms, and other risks. For any of these
factors, the Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995, as amended.
Burlington Coat Factory Investments Holdings, Inc. and
Subsidiaries
Consolidated
Statements of Operations
(unaudited)
(All amounts in thousands)
|
|
|
Three Months Ended August 30, 2008 |
|
|
Three Months Ended September 1, 2007 |
|
||
|
REVENUES: |
|
|
|
|
|
|
||
|
Net Sales |
|
$ |
707,036 |
|
|
$ |
678,769 |
|
|
Other Revenue |
|
|
6,389 |
|
|
|
6,778 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue |
|
|
713,425 |
|
|
|
685,547 |
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
439,227 |
|
|
|
443,775 |
|
|
Selling and Administrative Expenses |
|
|
265,712 |
|
|
|
250,887 |
|
|
Depreciation |
|
|
30,379 |
|
|
|
30,757 |
|
|
Amortization |
|
|
10,682 |
|
|
|
10,751 |
|
|
Interest Expense |
|
|
26,374 |
|
|
|
33,225 |
|
|
Impairment Charges |
|
|
- |
|
|
|
553 |
|
|
Other Income, Net |
|
|
(2,542 |
) |
|
|
(652 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
769,832 |
|
|
|
769,296 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Income Tax Benefit |
|
|
(56,407 |
) |
|
|
(83,749 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
|
(23,939 |
) |
|
|
(33,354 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(32,468 |
) |
|
$ |
(50,395 |
) |
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA
The following table calculates the Company’s EBITDA
(earnings from continuing operations before interest, taxes, depreciation,
amortization and impairment) and Adjusted EBITDA, both of which are considered
Non-GAAP financial measures. Generally, a Non-GAAP financial measure is a
numerical measure of a company’s performance, financial position or cash
flows that either excludes or includes amounts that are not normally excluded
or included in the most directly comparable measure calculated and presented in
accordance with GAAP. The Company believes that EBITDA and Adjusted EBITDA
provide investors helpful information with respect to our operations. The
Company has provided this additional information to assist the reader in
understanding our ability to meet our future debt service, fund our capital expenditures
and working capital requirements and to comply with various covenants in each
indenture governing the notes offered hereby, as well as various covenants
related to our senior secured credit facilities. The adjustments to EBITDA are
not in accordance with regulations adopted by the SEC that apply to periodic
reports presented under the Exchange Act. Accordingly, EBITDA and Adjusted
EBITDA may be presented differently in filings made with the SEC than as
presented in this report or not presented at all.
EBITDA
and Adjusted EBITDA are calculated as follows (amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
|
|
Three Months Ended August 30, 2008 |
|
|
Three Months Ended September 1, 2007 |
|
||
|
Net Loss |
|
$ |
(32,468 |
) |
|
$ |
(50,395 |
) |
|
Interest
Expense |
|
|
26,374 |
|
|
|
33,225 |
|
|
Income
Tax Benefit |
|
|
(23,939 |
) |
|
|
(33,354 |
) |
|
Depreciation |
|
|
30,379 |
|
|
|
30,757 |
|
|
Amortization |
|
|
10,682 |
|
|
|
10,751 |
|
|
Impairment |
|
|
-- |
|
|
|
553 |
|
|
EBITDA |
|
$ |
11,028 |
|
|
$ |
(8,463 |
) |
|
Interest
Income |
|
|
(246 |
) |
|
|
(373 |
) |
|
Non-Cash
Straight-line Rent Expense
(a) |
|
|
3,546 |
|
|
|
2,974 |
|