Burlington Stores, Inc. Updates Comparable Store Sales Guidance for the Second Quarter Ending August 2, 2014; Announces Launch of Debt Refinancing Transaction
Jul 17 14
Burlington Stores, Inc. provided updated comparable store sales guidance for the second quarter ending August 2, 2014. Based on the company's results quarter to date and its estimates for the remainder of July, comparable store sales for the second fiscal quarter of 2014 are expected to increase between 3% and 4%, which follows last year's second quarter comparable stores sales increase of 7.8%. This compares to the company's previous comparable store sales guidance for the second quarter of 2% to 3%.
The company announced the launch of a debt refinancing transaction and provided updated comparable store sales guidance for the second quarter ending August 2, 2014. The company is seeking commitments from lenders under a new senior secured credit facility for an aggregate principal amount of $1,200 million and currently expects the new senior secured credit facility to comprise a single tranche of term loans maturing in 2021. In addition, the company is renewing its current ABL facility for an additional five years and expects to benefit from current market pricing. The net proceeds of the new senior secured credit facility, together with borrowings of approximately $217 million under the company's ABL Facility, will be used to repay all indebtedness outstanding under the existing term loan B facility (4.25%), to redeem the 9.00%/9.75% Senior Notes due 2018 and 10% Senior Notes due 2019 and to pay related fees and expenses. The company estimates that if the refinancing transaction had been consummated February 2, 2014, the first day of the fiscal year, at the indicative pricing of 3.0% to 3.25% plus a 1% LIBOR floor, it would have realized annual interest expense savings of $34 million to $38 million, depending on the final pricing. This would have resulted in an increase to fully diluted adjusted earnings per share of 27 cents to 30 cents for the full year. These interest expense savings estimates are net of the potential impact of the costs of hedges, which may be entered into to limit interest rate risk. The company has called for redemption of all of its 2018 Notes and 2019 Notes conditioned on raising sufficient funds under the proposed new credit facility and expects to retire the existing term loan and senior notes on August 13, 2014.
Burlington Stores, Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended May 3, 2014; Reports Unaudited Consolidated Impairment Charges for the First Quarter Ended May 3, 2014; Provides Earnings Guidance for the Second Quarter, First Half and Full Year 2014; Plans to Open a New Store During the Second Quarter 2014 and 25 Net New Stores in 2014; Plans to Close One Store During the Second Quarter 2014
Jun 10 14
Burlington Stores, Inc. reported unaudited consolidated earnings results for the first quarter ended May 3, 2014. For the period, the company’s net sales were $1,128,269,000 against $1,065,013,000 a year ago. Total revenue was $1,135,858,000 against $1,072,989,000 a year ago. Income before income tax expense was $19,560,000 against loss of $8,647,000 a year ago. Net income was $11,774,000 against loss of $5,563,000 a year ago. Net cash provided by operating activities was $46,922,000 against $95,703,000 a year ago. Cash paid for property and equipment was $45,985,000 against $29,764,000 a year ago. Adjusted net income was $18,612,000 or $0.25 diluted per share against $6,135,000 or $0.08 diluted per share a year ago. Adjusted EBITDA was $92,326,000 against $79,550,000 a year ago.
For the quarter, the company’s impairment charges--long-lived assets was $19,000 against $51,000 a year ago.
For the second quarter ending August 2, 2014, The company comparable store sales are expected to increase 2% to 3% and net sales are expected to increase between 5% and 6%; Adjusted net loss per share is expected in the range of $0.12 to $0.09 vs. $0.18 per share last year. Gross margin rate is expected to expand by 20 to 40 basis points.
The company expects to open one new store during the second quarter resulting in a total store count of 523 at the end of the second quarter. The company also expects to open 25 net new stores to be opened during the year 2014.
The company plans close one store during the second quarter 2014.
For the year 2014, the company expects interest expense to be approximately $103 million, and anticipate a tax rate of approximately 40%. The company expects pro forma adjusted fully diluted EPS of between $1.25 and $1.35 per share. The company expects 2014 net capital expenditures of approximately $180 million, net of $40 million of landlord allowances. This includes approximately $75 million for store expenditures and approximately $35 million to support continued distribution facility enhancements. The company expects net sales to increase in the range of 5.8% to 6.8% and comparable store sales to increase between 2% to 3%.
The expectations are for a first half of 2014, comparable store sales increase of 2% to 3%; a gross margin rate improvement of 40 to 50 basis points; deleverage from product sourcing costs of 25 to 35 basis points; adjusted EBITDA margin expansion of 20 to 30 basis points; and an adjusted net income per fully diluted share of $0.13 to $0.16.