Destination Maternity Corporation announced unaudited consolidated earnings results for the second quarter and six months ended March 31, 2013. The company's net income for the second quarter of fiscal 2013 was $5.9 million, an increase of 18% compared to net income of $5.0 million for the second quarter of fiscal 2013. Diluted earnings per share for the second quarter of fiscal 2013 were $0.44, an increase of 16% compared to $0.38 for the second quarter of fiscal 2012. Adjusted EBITDA was $13.7 million for the second quarter of fiscal 2013, a 6.6% increase compared to the $12.9 million of Adjusted EBITDA for the second quarter of fiscal 2012. Net sales for the second quarter of fiscal 2013 decreased 2.1% to $134.9 million from $137.8 million for the second quarter of fiscal 2012. The decrease in sales for the second quarter of fiscal 2013 compared to fiscal 2012 resulted primarily from decreased sales due to the closure of all of the Company's remaining leased departments within Babies R Us stores during the month of October 2012, and decreased sales related to the Company's continued efforts to close underperforming stores, partially offset by an increase in comparable sales. The net sales of $134.9 million for the second quarter were within the Company's guidance range of $134 to $138 million provided in January 2013. The comparable sales increase of 1.6% during the second quarter of fiscal 2013. Operating income was $9,682,000 against $8,565,000 a year ago. Income before income taxes was $9,555,000 against $8,221,000 a year ago. Adjusted net income, before stock-based compensation expense and loss on extinguishment of debt was $6,378,000 or $0.48 per diluted share against $5,361,000 or $0.40 per diluted share a year ago. Net income for the first six months of fiscal 2013 was $9.7 million, a 34% increase compared to net income of $7.2 million for the first six months of fiscal 2012. Diluted earnings per share for the first six months of fiscal 2013 were $0.73, a 33% increase compared to $0.55 for the first six months of fiscal 2012. Adjusted EBITDA was $24.5 million for the first six months of fiscal 2013, a 15% increase compared to the $21.2 million of Adjusted EBITDA for the first six months of fiscal 2012. Net sales for the first six months of fiscal 2013 decreased 1.5% to $270.1 million from $274.1 million for the first six months of fiscal 2012. The decrease in sales for the first six months of fiscal 2013 compared to fiscal 2012 resulted primarily from decreased sales due to the closure of all of the Company's remaining leased departments within Babies R Us stores during the month of October 2012, and decreased sales related to the Company's continued efforts to close underperforming stores, partially offset by an increase in comparable sales. Comparable sales (which include Internet sales) for the first six months of fiscal 2013 increased 1.9% compared to a comparable sales decrease of 0.6% for the first six months of fiscal 2012. Adjusting for the calendar timing shift, the Company's adjusted comparable sales increased 3.1% for the first six months of fiscal 2013 and decreased 1.6% for the first six months of fiscal 2012. Income before income taxes was $15,803,000 against $11,901,000 a year ago. Adjusted net income, before stock-based compensation expense and loss on extinguishment of debt was $10,659,000 or $0.80 per diluted share against $7,987,000 or $0.60 per diluted share a year ago. Net cash provided by operating activities was $18,028,000 against $26,119,000 a year ago. Capital expenditures were $5,951,000 against $3,894,000 a year ago. Additions to intangible assets were $188,000 against $105,000 a year ago. For the third quarter of fiscal 2013, the company expects net sales in the $138 to $142 million range; a projected comparable sales increase of 2% to 5% on a reported basis; diluted earnings per share of between $0.56 and $0.64 per share, a projected increase of between 8% and 23% compared to diluted earnings per share of $0.52 for the third quarter of fiscal 2012. Adjusted net income per share – diluted, before stock-based compensation expense to be in the range of $0.58 to $0.66. The company projected full year Fiscal 2013 diluted EPS of $1.61 to $1.74, a projected increase of between 10% and 19% over Fiscal 2012 full year diluted EPS of $1.46, and compared to prior EPS guidance of $1.58 to $1.74. The company projected full year Fiscal 2013 of free cash flow of between $25 and $33 million, compared to prior guidance of between $24 and $33 million. The company expects net sales in the $535 to $542 million range, representing a projected sales change of between a decrease of 1.2% and an increase of 0.1% compared to fiscal 2012 net sales of $541.5 million. This sales guidance range is based on a projected comparable sales increase of between 1.5% and 3.0%. Operating income in the $35.7 to $38.6 million range, a projected increase of between 8% and 17% compared to fiscal 2012 operating income of $33.1 million. Adjusted net income per share – diluted, before stock-based compensation expense and loss on extinguishment of debt to be in the range of $1.74 to $1.87. Depreciation and amortization expense of $12.6 million. The company expects adjusted EBITDA to be in the range of $52.6 million to 55.5 million. The company expects net income to be in the range of $21.6 million to $23.4 million. The company is assuming an effective tax rate of approximately 38.5%. The company expects capital expenditures to be between $16 million and $20 million. The company reported loss on impairment of long-lived assets was $0.195 million against $0.517 million for the same period a year ago.

Destination Maternity Corporation announced that its Board of Directors declared a regular quarterly cash dividend of $0.1875 per share payable June 28, 2013, to stockholders of record at the close of business on June 7, 2013 representing an increase of 7.1% compared to the company's previous quarterly dividend amount.

Destination Maternity Corporation, Q2 2013 Earnings Call, Apr 25, 2013