Burlington Coat Factory's total sales increase in Q1
Burlington Coat Factory Investments Holdings Inc. and its operating subsidiaries, a nationwide retailer based in Burlington, New Jersey, announced its results for the first quarter ended April 30, 2011.
The Company experienced a 0.5% increase in comparative store sales during the first quarter ended April 30, 2011, on top of a 3.3% comparative store sales increase in the prior year's quarter. Net sales for the first quarter ended April 30, 2011 were $929.1 million compared with $894.7 million for the comparative period ended May 1, 2010, a 3.8% increase.
Adjusted EBITDA for the three months ended April 30, 2011 increased 2.8% to $80.4 million from Adjusted EBITDA of $78.2 million for the three months ended May 1, 2010, on top of a 32.8% increase in the prior year's quarter. This increase was primarily driven by the 3.8% increase in net sales.
On February 24, 2011, the Company completed a series of refinancing transactions through which its Senior Notes and Senior Discount Notes, with an aggregate carrying value of $401.4 million, were repaid and replaced with $450.0 million of 10% Senior Notes due 2019. Additionally, the Company's Term Loan with a carrying value of $777.6 million was replaced with a new $1.0 billion Term Loan Facility through February 2017.
The Company used the net proceeds from the refinancing transactions to pay a special cash dividend of approximately $300.0 million in the aggregate to the equity holders of Burlington Coat Factory Holdings, Inc. and fees and expenses related to the transaction. During the quarter ended April 30, 2011, the Company paid off all of its borrowings under the ABL Senior Secured Revolving Facility through cash flows generated from operations.
Adjusted Pre-Tax Income, (pre-tax income (loss) exclusive of the impact of the Company's refinancing transactions), increased $3.7 million to $12.5 million primarily driven by increased margins, as a result of the increase in net sales, and lower interest expense, exclusive of the debt refinancing. These increases were partially offset by increased selling and administrative expenses related to new and non comparable store expenses. For the first quarter ended April 30, 2011, the Company had a pre-tax loss of $32.2 million that included a loss on the extinguishment of debt of $37.8 million, $16.4 million of which was a non-cash charge representing the write off of deferred financing fees and $6.9 million of incremental interest expense resulting from the debt refinancing.
Tom Kingsbury, the Company's Chief Executive Officer, stated, “We are pleased with our 2.8% increase in Adjusted EBITDA, which is incremental to the very strong 32.8% increase in the prior year. I would like to thank our store and corporate team for contributing to this result, as well as the vendor community which continues to provide us with outstanding support.”
Burlington Coat Factory is a nationally recognized retailer of high-quality, branded apparel at everyday low prices. We currently serve our customers through our 462 stores in 44 states and Puerto Rico.
Burlington Coat Factory Investments Holdings Inc