Burlington Stores, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended August 2, 2014; Provides Earnings Guidance for the Third Quarter Ending November 1, 2014 and Second Half of Fiscal 2015; Revises Earnings Guidance for the Full Year Ending January 2015; Reports Impairment Charges for the Second Quarter of 2014; to Open New Stores and Close Existing Stores
Sep 9 14
Burlington Stores, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended August 2, 2014. For the quarter, the company reported net sales of USD 1,043,581,000 compared to USD 963,711,000 a year ago. Total revenue was USD 1,051,126,000 compared to USD 971,480,000 a year ago. Loss before income tax benefit was USD 10,763,000 compared to USD 39,237,000 a year ago. Net loss was USD 6,470,000 compared to USD 25,014,000 a year ago. Adjusted net loss was USD 877,000 compared to USD 13,576,000 a year ago. Adjusted EBITDA was USD 58,089,000 compared to USD 46,921,000 a year ago.
For the six months, the company reported net sales of USD 2,171,850,000 compared to USD 2,028,724,000 a year ago. Total revenue was USD 2,186,984,000 compared to USD 2,044,469,000 a year ago. Income before income tax benefit was USD 8,797,000 compared to loss of USD 47,884,000 a year ago. Net income was USD 5,304,000 compared to net loss of USD 30,577,000 a year ago. Net cash provided by operating activities were USD 51,579,000 compared to USD 57,862,000 a year ago. Cash paid for property and equipment was USD 94,569,000 against USD 67,999,000 for the same period a year ago. Adjusted net income was USD 17,735,000 compared to adjusted net loss of USD 7,441,000 a year ago. Adjusted EBITDA was USD 150,415,000 compared to USD 126,471,000 a year ago.
For the third quarter ending November 1, 2014, the company expects net sales to increase in the range of 6.4% to 7.4%; comparable store sales to increase in the range of 3.0% to 4.0%; interest expense to approximate USD 17 million reflecting the debt refinancing completed on August 13, 2014; adjusted net income per diluted share in the range of USD 0.09 to USD 0.12 on 75.8 million diluted shares outstanding.
The new capital structure is expected to reduce interest expense for the second half of 2014 by USD 18 million, benefiting EPS by approximately USD 0.15.
For the full year ending January 2015, the company expects total sales to increase in the range of 6.5% to 7.2% versus its previous expectation of an increase in the range of 5.8% to 6.8% and comparable store sales for the full year to be approximately 3%, at the high end of its previous guidance; adjusted EBITDA margin expansion in the range of 20 to 30 basis points, as compared to previous guidance of 10 to 20 basis points; interest expense of approximately USD 85 million; a tax rate of approximately 40%; fully diluted adjusted net income in the range of USD 1.52 to USD 1.58 per share, utilizing a fully diluted share count of 75.7 million shares. This compares to the company's previous expectation for fully diluted adjusted net income in the range of USD 1.25 to USD 1.35. The company expects 2014 net capital expenditures of approximately USD 180 million, net of USD 40 million of landlord allowances. This includes approximately USD 70 million for store expenditures and approximately USD 30 million to support continued distribution facility enhancements. The company continues to expect use remaining capital to support information technology and other initiatives, including approximately USD 40 million related to the construction of new corporate headquarters. The new capital structure is expected to reduce interest expense for the fiscal year 2015 by an estimated USD 40 million, benefiting EPS by approximately USD 0.31.
The company announced that impairment charges – long lived assets for the second quarter of 2014 was USD 829,000 against USD 88,000 for the same period a year ago.
The company also expects to open 17 new stores and close 1 existing store, resulting in a total store count of 539 at the end of the third quarter. It also expects to have opened 24 new stores and closed 2 existing stores, resulting in a total store count of 543 at the end of the year.