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Burlington Coat to reduce cost structure in excess of $60 mn
15
Apr '09
Burlington Coat Factory Investments Holdings, Inc. and its operating subsidiaries, a nationwide retailer based in Burlington, New Jersey, announced its results for the third quarter ended February 28, 2009.

Third Quarter Fiscal 2009 Operating Results
Net sales were $1,021.1 million for the three month period ended February 28, 2009 compared with $987.1 million for the three month period ended March 1, 2008, a 3.4% increase. The increase in net sales primarily resulted from the opening of 31 net new stores from March 2, 2008 through February 28, 2009. Comparative stores sales decreased by 4.3% versus the same period last year.

Adjusted EBITDA was $136.5 million for the three month period ended February 28, 2009 compared with $120.9 million for the three month period ended March 1, 2008. The increase in adjusted EBITDA of $15.6 million is the result of cost reductions realized during the quarter and sales growth from new stores. During this and the final quarter of Fiscal 2009, the Company expects to reduce its cost structure in excess of $60 million.

During the three months ended February 28, 2009, the Company recorded impairment charges related to its tradename and store level long-lived assets of $279.3 million and $28.1 million, respectively.

Year to Date Fiscal 2009 Operating Results
Net sales were $2,730.5 million for the nine month period ended February 28, 2009 compared with $2,612.4 million for the nine month period ended March 1, 2008, a 4.5% increase. Comparative stores sales decreased by 2.3% versus the same period last year.

Adjusted EBITDA was $262.6 million for the nine month period ended February 28, 2009 compared with $243.0 million for the nine month period ended March 1, 2008, an 8.1% increase. The $19.6 million increase in adjusted EBITDA is primarily the result of sales growth from the new stores and cost reductions realized in the third quarter.

Also during the nine months ended February 28, 2009, the Company recorded $279.3 million and $28.1 million of impairment as previously described in the results for the three months ended February 28, 2009.

Tom Kingsbury, Chief Executive Officer, stated, “We are very pleased with the results from our expense reduction and inventory management initiatives. The 12.9% increase in adjusted EBITDA for the third quarter is quite an accomplishment. Our strong inventory management has provided us the liquidity to take advantage of the many opportunistic buys available in the marketplace. I would like to thank the entire store and corporate team for contributing to this result.”

Burlington Coat Factory


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Courtesy: Business wire

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