MOORESTOWN, N.J., Dec. 7, 2017 /PRNewswire/ -- Destination
Maternity Corporation (NASDAQ: DEST), the world's leading maternity
apparel retailer, today announced financial results for the third
quarter and first nine months of fiscal 2017 ended October 28, 2017 compared to the third quarter
and first nine months of fiscal 2016 ended October 29, 2016.
Third Quarter Fiscal 2017 Financial Results
- Net sales were $96.4 million
compared with $102.6 million for the
comparable prior year quarter. The decrease was driven by the
closure of underperforming stores and exit of the Kohl's®
relationship, which was included in prior year results, partially
offset by an increase in comparable sales.
- Comparable sales increased 1.1%, compared to a 5.2% decline for
the third quarter of fiscal 2016.
- Gross margin for the third quarter of fiscal 2017 was 52.8%,
down 10 basis points over the comparable prior year quarter gross
margin of 52.9%.
- Selling, general and administrative expenses ("SG&A") for
the third quarter of fiscal 2017 decreased 2.5% to $53.2 million, compared to $54.6 million for the third quarter of fiscal
2016. As a percentage of net sales, SG&A increased to 55.2% for
the third quarter of fiscal 2017 compared to 53.2% for the third
quarter of fiscal 2016.
- The Company incurred store closing, asset impairment and asset
disposal expense of $1.0 million for
the third quarter of fiscal 2017, compared to $0.7 million for the third quarter of fiscal
2016.
- Other charges during the third quarter of fiscal 2017 were
$3.1 million for management and
organizational changes and the now terminated merger, compared to
$0.5 million in the third quarter of
fiscal 2016, related to the now terminated merger.
- Adjusted EBITDA before other charges was $2.0 million for the third quarter of fiscal
2017, compared to $4.7 million for
the third quarter of fiscal 2016. Adjusted EBITDA before other
charges is defined in the financial tables at the end of this press
release.
- GAAP net loss was $7.5 million,
or $0.55 per diluted share, compared
to net loss of $1.5 million, or
$0.11 per diluted share, for the
third quarter of fiscal 2016.
- Adjusted net loss was $2.7
million, or $0.20 per diluted
share, compared to adjusted net loss of $1.2
million, or $0.09 per diluted
share, for the third quarter of fiscal 2016. For a reconciliation
of GAAP to non-GAAP financial information refer to the financial
tables at the end of this press release.
First Nine Months of Fiscal 2017 Financial Results (39
weeks ended October 28, 2017)
- Net sales were $301.1 million
compared with $333.5 million for the
nine months ended October 29, 2016.
The decrease in sales was primarily driven by a decline in
comparable sales, the closure of underperforming stores, and the
wind down of the Kohl's, Sears and Gordmans relationships.
- Comparable sales decreased 3.5%, compared to a decrease of 4.5%
for the nine months ended October 29,
2016.
- Gross margin increased 50 basis points to 53.4% compared to
52.9% for the nine months ended October 29,
2016. The year-over-year increase in gross margin is driven
by reduced product costs and the exit from the leased department
and licensed relationships, which generated lower than average
gross margins.
- SG&A for the first nine months of fiscal 2017 declined
$8.3 million to $161.7 million, or 53.7% of net sales, compared
to $170.0 million, or 51.0% of net
sales.
- Store closing, asset impairment and asset disposal expense was
$3.6 million, compared to
$1.8 million for the nine months
ended October 29, 2016.
- Other charges during the first nine months of fiscal 2017 were
$3.7 million, primarily for
management and organizational changes and the now terminated
merger, compared to $2.0 million in
the first nine months of fiscal 2016 for management and
organizational changes and the now terminated merger.
- Adjusted EBITDA before other charges and effect of change in
accounting principle was $12.5
million for the first nine months of fiscal 2017 compared to
$21.2 million for the first nine
months of fiscal 2016.
- GAAP net loss was $11.4 million,
or $0.83 per diluted share, compared
to net income of $26,000, or
$0.00 per diluted share, for the nine
months ended October 29, 2016.
- Adjusted net loss was $5.2
million, or $0.38 per diluted
share, compared to adjusted net income of $1.3 million, or $0.09 per diluted share, for the nine months
ended October 29, 2016.
Other Financial Information
- At October 28, 2017, inventory
was $73.9 million, an increase of
$0.4 million compared to $73.5 million at October
29, 2016. Overall finished unit inventory at the end of the
third quarter was down 3.2% on a year-over-year basis.
- Capital expenditures totaled $5.5
million and $9.6 million for
the nine months ended October 28,
2017 and October 29, 2016,
respectively, primarily driven by investments in stores and, to a
lesser extent, investments to support key systems projects.
- Debt, net of cash, was $39.3
million at October 28, 2017, a
decrease of approximately $4.6
million compared to $43.9
million at October 29,
2016.
Commentary
Allen Weinstein, interim Chief
Executive Officer stated, "Although we are not fully satisfied with
our financial results, the third quarter was a productive period
for our Company. After my initial few months of observations,
I feel confident that we have many opportunities to improve our
operations and performance, with the benefit of a strong and
talented team and a solid infrastructure on which to grow. We
also have a strong foundation to build on in our e-commerce
business, with e-commerce sales rising over 54% in the quarter and
nearly 34% year to date, and with increased momentum in the fourth
quarter to date bolstered by record online sales during the
Thanksgiving through Cyber Monday period. As to stores,
although not yet positive, in the fourth quarter to date we have
seen our comparable store sales improve 190 basis points to down
6.4%, with improving traffic. We also remain on track to achieve
the approximately $10 million in
annualized cost savings commencing in fiscal 2018 as we announced
earlier in the quarter. In short, although we have much to
do, we are moving in the right direction."
Barry Erdos, Chairman of the
Board, commented, "As a Board, we are encouraged by the progress
Allen and the team have made in the past several months, in
particular the great progress on e-commerce. In
addition to supporting management over the last few months, the
Board has been working diligently on key governance matters.
First, as to our ongoing search for a new Chief Executive Officer,
we are working hard to find the right leader who will build on our
current momentum and we expect to continue the search process into
the new year. Second, as discussed previously, our
Board has been actively evaluating its composition and size.
After significant study and engagement with stockholders, the Board
has decided to add multiple additional Board members, with a focus
on adding diverse individuals who possess additional skills and
experience that will help further our turnaround and growth.
Our Board is in the process of vetting many qualified individuals
and we expect to announce new appointments shortly."
Conference Call Information
As announced previously, the Company will hold a conference call
today at 9:00 a.m. Eastern Time,
regarding the Company's third quarter fiscal 2017 financial
results. Interested parties can participate in this conference call
by dialing (800) 219-6970 in the United
States and Canada or (574)
990-1028 outside of the United
States and Canada. Please
call ten minutes prior to 9:00 a.m. Eastern
Time. The conference call (listen only) will also be
available on the investor section of the Company's website at
http://investor.destinationmaternity.com. The passcode for the
conference call is 7488866. In the event that you are unable to
participate in the call, a replay will be available at 12:00 p.m. Eastern Time on Thursday, December 7,
2017 through 12:00 p.m. Eastern Time
Thursday, December 14, 2017 by calling (855) 859-2056 in
the United States and Canada or (404) 537-3406 outside of
the United States and Canada. The passcode for the replay is
7488866.
About Destination Maternity
Destination Maternity Corporation is the world's largest
designer and retailer of maternity apparel. As of October 28, 2017 Destination Maternity operates
1,147 retail locations in the United
States, Canada and
Puerto Rico, including 501 stores,
predominantly under the trade names Motherhood Maternity®, A Pea in
the Pod® and Destination Maternity®, and 646 leased department
locations. The Company also sells merchandise on the web primarily
through its brand-specific websites, motherhood.com and
apeainthepod.com, as well as through its destinationmaternity.com
website. Destination Maternity has international store franchise
and product supply relationships in the Middle East, South
Korea, Mexico, Israel and India. As of October
28, 2017 Destination Maternity has 208 international
franchised locations, including 16 standalone stores operated under
one of the Company's nameplates and 192 shop-in-shop locations.
Reconciliation of Non-GAAP Financial Measures
This press release and the accompanying financial tables contain
non-GAAP financial measures within the meaning of the SEC's
Regulation G, including 1) Adjusted net income (loss), 2) Adjusted
net income (loss) per share - diluted, 3) Adjusted EBITDA, 4)
Adjusted EBITDA before other charges and effect of change in
accounting principle, 5) Adjusted EBITDA margin, and 6) Adjusted
EBITDA margin before other charges and effect of change in
accounting principle. In the accompanying financial tables, the
Company has provided reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures.
The Company's management believes that each of these non-GAAP
financial measures provides useful information about the Company's
results of operations and/or financial position to both investors
and management. Each non-GAAP financial measure is provided because
management believes it is an important measure of financial
performance used in the retail industry to measure operating
results, to determine the value of companies within the industry
and to define standards for borrowing from institutional lenders.
The Company uses each of these non-GAAP financial measures as a
measure of the performance of the Company. In addition, certain of
the Company's cash and equity incentive compensation plans are
based on our level of achievement of Adjusted EBITDA before other
charges and effect of change in accounting principle. The Company
provides these various non-GAAP financial measures to investors to
assist them in performing their analysis of its historical
operating results. Each of these non-GAAP financial measures
reflects a measure of the Company's operating results before
consideration of certain charges and consequently, none of these
measures should be construed as an alternative to net income (loss)
or operating income (loss) as an indicator of the Company's
operating performance, as determined in accordance with generally
accepted accounting principles. The Company may calculate each of
these non-GAAP financial measures differently than other
companies.
Forward-Looking Statements
The Company cautions that any forward-looking statements (as
such term is defined in the Private Securities Litigation Reform
Act of 1995) contained in this press release or made from time to
time by management of the Company, including those regarding
earnings, net sales, comparable sales, other results of operations,
liquidity and financial condition, and various business
initiatives, involve risks and uncertainties, and are subject to
change based on various important factors. The following factors,
among others, in some cases have affected and in the future could
affect the Company's financial performance and actual results and
could cause actual results to differ materially from those
expressed or implied in any such forward-looking statements: the
strength or weakness of the retail industry in general and of
apparel purchases in particular, our ability to successfully manage
our various business initiatives, the success of our international
business and its expansion, our ability to successfully manage and
retain our leased department and international franchise
relationships and marketing partnerships, future sales trends in
our various sales channels, unusual weather patterns, changes in
consumer spending patterns, raw material price increases, overall
economic conditions and other factors affecting consumer
confidence, demographics and other macroeconomic factors that may
impact the level of spending for apparel (such as fluctuations in
pregnancy rates and birth rates), expense savings initiatives, our
ability to anticipate and respond to fashion trends and consumer
preferences, unanticipated fluctuations in our operating results,
the impact of competition and fluctuations in the price,
availability and quality of raw materials and contracted products,
availability of suitable store locations, continued availability of
capital and financing, our ability to hire, develop and retain
senior management and sales associates, our ability to develop and
source merchandise, our ability to receive production from foreign
sources on a timely basis, our compliance with applicable financial
and other covenants under our financing arrangements, potential
debt prepayments, the trading liquidity of our common stock,
changes in market interest rates, our compliance with certain tax
incentive and abatement programs, war or acts of terrorism and
other factors set forth in the Company's periodic filings with the
U.S. Securities and Exchange Commission (the "SEC"), or in
materials incorporated therein by reference. Although it is
believed that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such
expectations will prove to have been correct and persons reading
this announcement are therefore cautioned not to place undue
reliance on these forward-looking statements which speak only as at
the date of this announcement. The Company assumes no obligation to
update or revise the information contained in this announcement
(whether as a result of new information, future events or
otherwise), except as required by applicable law.
– Financial Tables to Follow –
DESTINATION
MATERNITY CORPORATION AND SUBSIDIARIES
|
Consolidated
Statements of Operations
|
(in thousands, except
percentages and per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
October
28,
|
|
October
29,
|
|
October
28,
|
|
October
29,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
96,354
|
|
$
|
102,582
|
|
$
|
301,060
|
|
$
|
333,541
|
|
Cost of goods
sold
|
|
45,453
|
|
|
48,294
|
|
|
140,167
|
|
|
157,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
50,901
|
|
|
54,288
|
|
|
160,893
|
|
|
176,390
|
|
Gross margin
|
|
52.8
|
%
|
|
52.9
|
%
|
|
53.4
|
%
|
|
52.9
|
%
|
Selling, general and
administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses
(SG&A)
|
|
53,234
|
|
|
54,573
|
|
|
161,689
|
|
|
169,967
|
|
SG&A as a percentage of
net sales
|
|
55.2
|
%
|
|
53.2
|
%
|
|
53.7
|
%
|
|
51.0
|
%
|
Store closing, asset
impairment and asset disposal expenses
|
|
1,011
|
|
|
724
|
|
|
3,649
|
|
|
1,772
|
|
Other
charges
|
|
3,100
|
|
|
459
|
|
|
3,746
|
|
|
2,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(6,444)
|
|
|
(1,468)
|
|
|
(8,191)
|
|
|
2,648
|
|
Interest expense,
net
|
|
1,006
|
|
|
981
|
|
|
2,989
|
|
|
2,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
(7,450)
|
|
|
(2,449)
|
|
|
(11,180)
|
|
|
42
|
|
Income tax provision
(benefit)
|
|
73
|
|
|
(943)
|
|
|
259
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
(7,523)
|
|
$
|
(1,506)
|
|
$
|
(11,439)
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share – Basic
|
$
|
(0.55)
|
|
$
|
(0.11)
|
|
$
|
(0.83)
|
|
$
|
0.00
|
|
Average shares
outstanding – Basic
|
|
13,800
|
|
|
13,702
|
|
|
13,777
|
|
|
13,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share – Diluted
|
$
|
(0.55)
|
|
$
|
(0.11)
|
|
$
|
(0.83)
|
|
$
|
0.00
|
|
Average shares
outstanding – Diluted
|
|
13,800
|
|
|
13,702
|
|
|
13,777
|
|
|
13,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), as
reported
|
$
|
(7,523)
|
|
$
|
(1,506)
|
|
$
|
(11,439)
|
|
$
|
26
|
|
Add: other charges
for management and organizational changes
|
|
2,636
|
|
|
36
|
|
|
2,633
|
|
|
707
|
|
Add: other charges
for proposed business combination
|
|
464
|
|
|
423
|
|
|
1,113
|
|
|
1,296
|
|
Less: income tax
effect of other charges
|
|
(1,163)
|
|
|
(176)
|
|
|
(1,405)
|
|
|
(766)
|
|
Less: effect of
change in accounting principle
|
|
—
|
|
|
—
|
|
|
(764)
|
|
|
—
|
|
Add: income tax
effect of change in accounting principle
|
|
—
|
|
|
—
|
|
|
284
|
|
|
—
|
|
Add: deferred tax
valuation allowance related to cumulative losses
|
|
2,855
|
|
|
—
|
|
|
4,352
|
|
|
—
|
|
Adjusted net income
(loss)
|
$
|
(2,731)
|
|
$
|
(1,223)
|
|
$
|
(5,226)
|
|
$
|
1,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per share – diluted
|
$
|
(0.20)
|
|
$
|
(0.09)
|
|
$
|
(0.38)
|
|
$
|
0.09
|
|
DESTINATION
MATERNITY CORPORATION AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
October
28,
2017
|
|
January
28,
2017
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,217
|
|
$
|
2,859
|
Trade receivables,
net
|
|
6,901
|
|
|
5,683
|
Inventories
|
|
73,936
|
|
|
69,040
|
Prepaid expenses and
other current assets
|
|
6,420
|
|
|
9,464
|
Total current
assets
|
|
89,474
|
|
|
87,046
|
Property and
equipment, net
|
|
72,232
|
|
|
83,029
|
Other
assets
|
|
4,718
|
|
|
5,912
|
Total assets
|
$
|
166,424
|
|
$
|
175,987
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Line of credit
borrowings
|
$
|
8,200
|
|
$
|
4,600
|
Current portion of
long-term debt
|
|
8,173
|
|
|
6,948
|
Accounts
payable
|
|
18,121
|
|
|
17,656
|
Accrued expenses and
other current liabilities
|
|
33,242
|
|
|
31,359
|
Total current
liabilities
|
|
67,736
|
|
|
60,563
|
Long-term
debt
|
|
25,190
|
|
|
31,485
|
Deferred rent and
other non-current liabilities
|
|
22,957
|
|
|
22,789
|
Total
liabilities
|
|
115,883
|
|
|
114,837
|
Stockholders'
equity
|
|
50,541
|
|
|
61,150
|
Total liabilities and
stockholders' equity
|
$
|
166,424
|
|
$
|
175,987
|
|
|
Selected
Consolidated Balance Sheet Data
|
(in
thousands)
|
(unaudited)
|
|
|
October
28,
|
|
January
28,
|
|
October
29,
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
2,217
|
|
$
2,859
|
|
$
2,756
|
Inventories
|
73,936
|
|
69,040
|
|
73,532
|
Property and
equipment, net
|
72,232
|
|
83,029
|
|
86,236
|
Line of credit
borrowings
|
8,200
|
|
4,600
|
|
6,500
|
Total debt
|
41,563
|
|
43,033
|
|
46,612
|
Stockholders'
equity
|
50,541
|
|
61,150
|
|
93,593
|
DESTINATION
MATERNITY CORPORATION AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
|
October
28,
|
|
October
29,
|
|
|
|
2017
|
|
2016
|
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(11,439)
|
|
$
|
26
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
13,259
|
|
|
13,583
|
|
Stock-based
compensation expense
|
|
|
858
|
|
|
1,273
|
|
Loss on impairment of
long-lived assets
|
|
|
3,267
|
|
|
1,406
|
|
Loss on disposal of
assets
|
|
|
283
|
|
|
289
|
|
Grow NJ award
benefit
|
|
|
1,096
|
|
|
1,138
|
|
Deferred income tax
benefit
|
|
|
—
|
|
|
(463)
|
|
Amortization of
deferred financing costs
|
|
|
375
|
|
|
231
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Decrease (increase)
in:
|
|
|
|
|
|
|
|
Trade
receivables
|
|
|
(1,218)
|
|
|
1,713
|
|
Inventories
|
|
|
(4,896)
|
|
|
(1,023)
|
|
Prepaid expenses and
other current assets
|
|
|
3,110
|
|
|
(394)
|
|
Other non-current
assets
|
|
|
(59)
|
|
|
1
|
|
Increase (decrease)
in:
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
2,474
|
|
|
(12,185)
|
|
Deferred rent and
other non-current liabilities
|
|
|
23
|
|
|
(569)
|
|
Net cash provided by
operating activities
|
|
|
7,133
|
|
|
5,026
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(5,484)
|
|
|
(9,616)
|
|
Proceeds from sale of
property and equipment
|
|
|
—
|
|
|
2
|
|
Additions to
intangible assets
|
|
|
(18)
|
|
|
(72)
|
|
Net cash used in
investing activities
|
|
|
(5,502)
|
|
|
(9,686)
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Decrease in cash
overdraft
|
|
|
(461)
|
|
|
(544)
|
|
Increase (decrease)
in line of credit borrowings
|
|
|
3,600
|
|
|
(21,900)
|
|
Proceeds from
long-term debt
|
|
|
3,401
|
|
|
32,000
|
|
Repayment of
long-term debt
|
|
|
(8,493)
|
|
|
(2,964)
|
|
Deferred financing
costs paid
|
|
|
(277)
|
|
|
(1,275)
|
|
Withholding taxes on
stock-based compensation paid in connection with repurchase of
common stock
|
|
(45)
|
|
|
(21)
|
|
Proceeds from
exercise of stock options
|
|
|
—
|
|
|
3
|
|
Net cash (used in)
provided by financing activities
|
|
|
(2,275)
|
|
|
5,299
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
2
|
|
|
1
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
|
|
(642)
|
|
|
640
|
|
Cash and Cash
Equivalents, Beginning of Period
|
|
|
2,859
|
|
|
2,116
|
|
Cash and Cash
Equivalents, End of Period
|
|
$
|
2,217
|
|
$
|
2,756
|
|
|
|
|
|
|
|
|
|
DESTINATION
MATERNITY CORPORATION AND SUBSIDIARIES
|
Supplemental
Financial Information
|
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA(1)
|
and Adjusted
EBITDA Before Other Charges and Effect of Change in Accounting
Principle,
|
and Operating
Income (Loss) Margin to Adjusted EBITDA Margin
|
and Adjusted
EBITDA Margin Before Other Charges and Effect of Change in
Accounting Principle
|
(in thousands, except
percentages)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
October
28,
|
|
October
29,
|
|
October
28,
|
|
October
29,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(7,523)
|
|
$
|
(1,506)
|
|
$
|
(11,439)
|
|
$
|
26
|
|
Add: income tax
provision (benefit)
|
|
73
|
|
|
(943)
|
|
|
259
|
|
|
16
|
|
Add: interest
expense, net
|
|
1,006
|
|
|
981
|
|
|
2,989
|
|
|
2,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(6,444)
|
|
|
(1,468)
|
|
|
(8,191)
|
|
|
2,648
|
|
Add: depreciation and
amortization expense
|
|
4,371
|
|
|
4,656
|
|
|
13,259
|
|
|
13,583
|
|
Add: loss on
impairment of long-lived assets
|
|
821
|
|
|
673
|
|
|
3,267
|
|
|
1,406
|
|
Add: loss on disposal
of assets
|
|
167
|
|
|
74
|
|
|
283
|
|
|
289
|
|
Add: stock-based
compensation expense
|
|
28
|
|
|
305
|
|
|
858
|
|
|
1,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
(1,057)
|
|
|
4,240
|
|
|
9,476
|
|
|
19,199
|
|
Add: other charges
for management and organizational changes
|
|
2,636
|
|
|
36
|
|
|
2,633
|
|
|
707
|
|
Add: other charges
for proposed business combination
|
|
464
|
|
|
423
|
|
|
1,113
|
|
|
1,296
|
|
Add: effect of change
in accounting principle
|
|
—
|
|
|
—
|
|
|
(764)
|
|
|
—
|
|
Adjusted EBITDA
before other charges and effect of change in accounting
principle
|
$
|
2,043
|
|
$
|
4,699
|
|
$
|
12,458
|
|
$
|
21,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
96,354
|
|
$
|
102,582
|
|
$
|
301,060
|
|
$
|
333,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) margin (operating income (loss) as a percentage of net
sales)
|
|
(6.7)%
|
|
|
(1.4)%
|
|
|
(2.7)%
|
|
|
0.8%
|
|
Adjusted EBITDA
margin (adjusted EBITDA as a percentage of net sales)
|
|
(1.1)%
|
|
|
4.1%
|
|
|
3.1%
|
|
|
5.8%
|
|
Adjusted EBITDA
margin before other charges and effect of change in accounting
principle (adjusted EBITDA before other charges and effect of
change in accounting principle as a percentage of net
sales)
|
|
2.1%
|
|
|
4.6%
|
|
|
4.1%
|
|
|
6.4%
|
|
|
(1) Adjusted
EBITDA represents operating income (loss) before deduction for the
following non-cash charges: (i) depreciation and amortization
expense; (ii) loss on impairment of tangible and intangible assets;
(iii) loss on disposal of assets; and (iv) stock-based compensation
expense.
|
View original
content:http://www.prnewswire.com/news-releases/destination-maternity-reports-third-quarter-and-first-nine-months-fiscal-2017-results-300568085.html
SOURCE Destination Maternity Corporation