For the 13 weeks ending July 30, 2016 compared with the 13 weeks
ended August 1, 2015, the Company expects:
Comparable store sales to increase between 4.2% and 4.5% and
Adjusted EBITDA in the range of $88 to $90 million and
Adjusted Net Income per Share of $0.28 to $0.30.
BURLINGTON, N.J.--(BUSINESS WIRE)--
Burlington Stores, Inc. (NYSE:BURL), a nationally recognized off-price
retailer of high-quality, branded apparel at everyday low prices, today
announced the launch of a debt repricing transaction and provided
updated operating results guidance for the second quarter ending July
The Company is seeking commitments from lenders under a new senior
secured credit facility for an aggregate principal amount of $1,117
million and expects the new senior secured credit facility to comprise a
single tranche of term loans maturing in 2021. The net proceeds of the
new senior secured credit facility will be used to repay all
indebtedness outstanding under the existing term loan B facility
(4.25%), and to pay related fees and expenses. The Company is seeking
pricing of 2.75% to 3.0% plus a 0.75% LIBOR floor versus the current
3.25% plus a 1% LIBOR floor.
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 2016 are expected to increase between 4.2% and 4.5%, which follows
last year’s second quarter comparable stores sales increase of 5.6%. For
the second quarter, the Company currently expects Adjusted EBITDA in the
range of $88 to $90 million compared to an Adjusted EBITDA of $75.4
million last year, and Adjusted Net Income per Share of $0.28 to $0.30
compared to $0.19 last year. This compares to the Company’s previous
guidance for the second quarter, which included a comparable store sales
increase of 2.5% to 3.5% and Adjusted Net Income per Share of $0.20 to
$0.23. The Company will update its full year guidance when it announces
second quarter results.
The Company has not presented a quantitative reconciliation of the
forward-looking non-GAAP measures set out above to comparable GAAP
measures, because it would require the Company to create comparable GAAP
estimated ranges, which would entail unreasonable effort. The Company
does not believe the absence of the reconciliation is significant.
The Company’s comparable store sales and profit expectations are
estimated and subject to completion of the quarter and quarter-end
closing adjustments. As the Company has not completed its quarter and
quarter close, the comparable store sales, and profit expectations
presented in this press release may change. This data has been prepared
There can be no assurances that the Company will be able to consummate
the repricing transaction on the terms described or at all. The Company
is providing this information given the launch of this debt repricing
transaction and the improvement in its expected performance to its
original second quarter guidance previously provided in conjunction with
its first quarter results on May 26, 2016. Investors should not expect
the Company to provide interim quarterly updates of guidance or outlook
information in advance of scheduled quarterly earnings announcement
Adjusted Net Income per Share and Adjusted EBITDA
This press release presents information with respect to the Company’s
estimated Adjusted Net Income per Share and Adjusted EBITDA (earnings
before (i) net interest expense, (ii) loss on extinguishment of debt,
(iii) costs related to secondary offerings, (iv) stock option
modification expense, (v) advisory fees, (vi) depreciation and
amortization (vii) impairment charges and (viii) taxes), each of which
is considered a Non-GAAP financial measure. Generally, a Non-GAAP
financial measure is a numerical measure of a company’s performance,
financial position or cash flows that either excludes or includes
amounts that are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with GAAP.
Adjusted Net Income per Share is defined as Adjusted Net Income divided
by the weighted average shares outstanding. Adjusted Net Income is
defined as net income for the period plus (i) net favorable lease
amortization, (ii) costs related to secondary offerings, (iii) stock
option modification expense, (iv) loss on the extinguishment of debt,
(v) impairment charges and (vi) advisory fees, all of which are tax
effected to arrive at Adjusted Net Income.
About Burlington Stores, Inc.
The Company, through its wholly-owned subsidiaries, operates a national
chain of off-price retail stores offering ladies’, men’s and children’s
apparel and accessories, home goods, baby products and coats,
principally under the name Burlington Stores.
For more information about Burlington Stores, Inc., visit the Company's
website at www.burlingtonstores.com.
Safe Harbor for Forward-Looking and Cautionary Statements
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Exchange Act. All statements other than statements of historical
fact included in this release are forward-looking statements.
Forward-looking statements discuss our current expectations and
projections relating to our financial condition, results of operations,
plans, objectives, future performance and business. You can identify
forward-looking statements by the fact that they do not relate strictly
to historical or current facts. We do not undertake to publicly update
or revise our forward-looking statements even if experience or future
changes make it clear that any projected results expressed or implied in
such statements will not be realized. If we do update one or more
forward-looking statements, no inference should be made that we will
make additional updates with respect to those or other forward-looking
statements. All forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from
those we expected, including competition in the retail industry,
seasonality of our business, adverse weather conditions, changes in
consumer preferences and consumer spending patterns, import risks,
inflation, general economic conditions, our ability to implement our
strategy, our substantial level of indebtedness and related debt-service
obligations, restrictions imposed by covenants in our debt agreements,
availability of adequate financing, our dependence on vendors for our
merchandise, events affecting the delivery of merchandise to our stores,
existence of adverse litigation and risks, availability of desirable
locations on suitable terms and other factors that may be described from
time to time in our filings with the Securities and Exchange Commission.
For each of these factors, the Company claims the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995, as amended.
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Source: Burlington Stores, Inc.