American Apparel comparable store Q1 sales rise 8%

The 2013 first quarter includes a non-cash/non-operating income statement charge of $23.6 million ($0.22 per common share) associated with an increase in the fair value of outstanding warrants.

The 2012 first quarter includes a similar non-cash/non-operating charge of $0.7 million ($0.01 per common share) for the increase in the fair value of such warrants and a non-cash/non-operating gain of $11.6 million on the extinguishment of debt.

Excluding these non-cash/non-operating charges from both periods, net loss for the first quarter 2013 would have been $22.9 million, or $0.21 per share, compared to $18.8 million, or $0.18 per share, in the first quarter 2012.

Fully-diluted weighted average shares outstanding were 109.9 million in the first quarter of 2013 versus 105.7 million for the first quarter of 2012. As of May 1, 2013 there were approximately 107.8 million shares outstanding.

Cash used in operating activities was $6.0 million in the first quarter of 2013 as compared with cash used in operating activities of $8.6 million in the 2012 quarter primarily as a result of improvements in sales.

Capital expenditures during the first quarter of 2013 increased by $3.7 million to $7.4 million as compared with $3.7 million in the 2012 quarter as we neared completion of our RFID implementation activities. In addition, we continued to make other improvements to our stores and make additional investments in manufacturing equipment.

American Apparel