Bon-Ton Stores Inc. (BONT)
- Creatore Discussione Clau
- Data di inizio
satrimot
Nuovo Utente
- Registrato
- 9/8/03
- Messaggi
- 2.224
- Punti reazioni
- 78
satrimot
Nuovo Utente
- Registrato
- 9/8/03
- Messaggi
- 2.224
- Punti reazioni
- 78
The Bon-Ton Stores, Inc. (BONT) today reported operating results for the first quarter of fiscal 2014 ended May 3, 2014 and reaffirmed its earnings guidance for fiscal 2014. Total sales and comparable store sales decreased 6.1% and 5.8%, respectively, in the quarter. Adjusted EBITDA (not a measure recognized under generally accepted accounting principles (see Note 1)) was $7.1 million, compared with $15.2 million in the first quarter of fiscal 2013. Net loss in the first quarter was $31.5 million, or $1.63 per diluted share, compared with a net loss of $26.6 million, or $1.41 per diluted share, for the first quarter of fiscal 2013.
Comments
Brendan Hoffman, President and Chief Executive Officer, commented, “We forecasted our first quarter sales to reflect weather challenges, but the prolonged adverse conditions resulted in a financial performance below our expectations. We saw an improvement in sales performance mid-April as the weather became more seasonal and traffic trends improved dramatically. Despite our shortfall in sales, we were able to achieve a higher gross margin rate, control expenses and effectively manage our inventory such that we ended the quarter with retail inventory levels 1.7% below that of the prior year on a comparable store basis.”
Mr. Hoffman continued, “We have seen recent improvement in sales performance and favorable response to our merchandise offerings and marketing programs. In addition, the roll-out of our localization strategies designed to drive store productivity remains on track. Overall, we believe that the strategies we have in place will yield improved results as we move through the year and, with that, we are maintaining our full year guidance.”
Net Sales
Total sales in the first quarter of fiscal 2014 decreased 6.1% to $607.5 million, compared with $646.9 million in the prior year period. Comparable store sales in the first quarter of fiscal 2014 decreased 5.8% compared with the prior year period.
Other Income
Other income in the first quarter of fiscal 2014 was $15.1 million, compared with $15.0 million in the first quarter of fiscal 2013.
Gross Margin
In the first quarter of fiscal 2014, gross margin decreased $11.0 million to $214.4 million, compared with $225.3 million in the first quarter of fiscal 2013. The gross margin rate for the first quarter of fiscal 2014 increased to 35.3% of net sales from 34.8% of net sales in the prior year, primarily the result of increased cumulative markup.
Selling, General and Administrative (“SG&A”) Expense
SG&A expense decreased $2.8 million to $222.3 million in the first quarter of fiscal 2014, compared with $225.1 million in the first quarter of fiscal 2013. The expense reduction is primarily due to decreased performance incentives and a gain on the sale of the Company’s remaining Rochester, New York store, partially offset by expenditures incurred to support the Company’s expense efficiency initiative and increased advertising expense. As a result of the reduced sales in the period, the SG&A expense rate for the first quarter of fiscal 2014 increased to 36.6% of net sales, compared with 34.8% of net sales in the first quarter of fiscal 2013.
Depreciation and Amortization / Amortization of Lease-related Interests
Depreciation and amortization expense, including amortization of lease-related interests, was $22.7 million in the first quarter of fiscal 2014, compared with $22.3 million in the first quarter of fiscal 2013.
Interest Expense, Net
In the first quarter of fiscal 2014, interest expense, net, decreased $3.4 million to $15.3 million, compared with $18.7 million in the prior year period, due to reduced interest rates, debt levels and amortization of deferred fees.
Loss on Extinguishment of Debt
In the first quarter of fiscal 2014, the Company recorded a $0.2 million loss on extinguishment of debt related to the prepayment of mortgage debt associated with the sale of the Company’s remaining Rochester, New York store. In the first quarter of fiscal 2013, the Company recorded a $0.4 million loss on extinguishment of debt due to accelerated amortization of deferred fees in conjunction with the $65.0 million redemption of the Company’s 2014 Senior Notes.
Income Tax Provision
An income tax provision of $0.4 million was recorded in the first quarter of fiscal 2014, compared with $0.5 million recorded in the first quarter of fiscal 2013.
Guidance
Keith Plowman, Executive Vice President and Chief Financial Officer, stated, “We are reaffirming our fiscal 2014 guidance for Adjusted EBITDA in a range of $170 million to $180 million, for income per diluted share in a range of $0.40 to $0.70 and for cash flow (see Note 2) in a range of $20 million to $30 million. Additionally, our excess borrowing capacity under our revolving credit facility was $439.0 million at the end of the first quarter of fiscal 2014.”
http://finance.yahoo.com/news/bon-ton-stores-inc-announces-105900210.html
Comments
Brendan Hoffman, President and Chief Executive Officer, commented, “We forecasted our first quarter sales to reflect weather challenges, but the prolonged adverse conditions resulted in a financial performance below our expectations. We saw an improvement in sales performance mid-April as the weather became more seasonal and traffic trends improved dramatically. Despite our shortfall in sales, we were able to achieve a higher gross margin rate, control expenses and effectively manage our inventory such that we ended the quarter with retail inventory levels 1.7% below that of the prior year on a comparable store basis.”
Mr. Hoffman continued, “We have seen recent improvement in sales performance and favorable response to our merchandise offerings and marketing programs. In addition, the roll-out of our localization strategies designed to drive store productivity remains on track. Overall, we believe that the strategies we have in place will yield improved results as we move through the year and, with that, we are maintaining our full year guidance.”
Net Sales
Total sales in the first quarter of fiscal 2014 decreased 6.1% to $607.5 million, compared with $646.9 million in the prior year period. Comparable store sales in the first quarter of fiscal 2014 decreased 5.8% compared with the prior year period.
Other Income
Other income in the first quarter of fiscal 2014 was $15.1 million, compared with $15.0 million in the first quarter of fiscal 2013.
Gross Margin
In the first quarter of fiscal 2014, gross margin decreased $11.0 million to $214.4 million, compared with $225.3 million in the first quarter of fiscal 2013. The gross margin rate for the first quarter of fiscal 2014 increased to 35.3% of net sales from 34.8% of net sales in the prior year, primarily the result of increased cumulative markup.
Selling, General and Administrative (“SG&A”) Expense
SG&A expense decreased $2.8 million to $222.3 million in the first quarter of fiscal 2014, compared with $225.1 million in the first quarter of fiscal 2013. The expense reduction is primarily due to decreased performance incentives and a gain on the sale of the Company’s remaining Rochester, New York store, partially offset by expenditures incurred to support the Company’s expense efficiency initiative and increased advertising expense. As a result of the reduced sales in the period, the SG&A expense rate for the first quarter of fiscal 2014 increased to 36.6% of net sales, compared with 34.8% of net sales in the first quarter of fiscal 2013.
Depreciation and Amortization / Amortization of Lease-related Interests
Depreciation and amortization expense, including amortization of lease-related interests, was $22.7 million in the first quarter of fiscal 2014, compared with $22.3 million in the first quarter of fiscal 2013.
Interest Expense, Net
In the first quarter of fiscal 2014, interest expense, net, decreased $3.4 million to $15.3 million, compared with $18.7 million in the prior year period, due to reduced interest rates, debt levels and amortization of deferred fees.
Loss on Extinguishment of Debt
In the first quarter of fiscal 2014, the Company recorded a $0.2 million loss on extinguishment of debt related to the prepayment of mortgage debt associated with the sale of the Company’s remaining Rochester, New York store. In the first quarter of fiscal 2013, the Company recorded a $0.4 million loss on extinguishment of debt due to accelerated amortization of deferred fees in conjunction with the $65.0 million redemption of the Company’s 2014 Senior Notes.
Income Tax Provision
An income tax provision of $0.4 million was recorded in the first quarter of fiscal 2014, compared with $0.5 million recorded in the first quarter of fiscal 2013.
Guidance
Keith Plowman, Executive Vice President and Chief Financial Officer, stated, “We are reaffirming our fiscal 2014 guidance for Adjusted EBITDA in a range of $170 million to $180 million, for income per diluted share in a range of $0.40 to $0.70 and for cash flow (see Note 2) in a range of $20 million to $30 million. Additionally, our excess borrowing capacity under our revolving credit facility was $439.0 million at the end of the first quarter of fiscal 2014.”
http://finance.yahoo.com/news/bon-ton-stores-inc-announces-105900210.html
