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Comparable store sales flat for this quarter, Gymboree
14 Jun '11
5 min read
Cash at the end of the first fiscal quarter decreased to $48.2 million from $270.7 million at the end of the first quarter of fiscal 2010. The decrease reflects the impact of the Company's utilization of cash to fund the transaction.
Capital expenditures for the first fiscal quarter were $7.9 million with the vast majority of the cash used to fund the opening of 25 new stores during the quarter. Smaller amounts of cash were utilized to support infrastructure investments at the corporate office and the Company's distribution center.
Inventory balances at the end of the first quarter were $163.7 million compared to $110.0 million at the end of same period of the prior year. On a per square foot basis inventory values are up 33%. The increase in inventory values reflects higher inventory unit buys versus the prior year in part to bring Crazy 8 inventory to more appropriate levels, higher average unit costs, and lower consumer acceptance of more recent deliveries.
Excluding in-transit inventory, unit growth on a per square foot basis is up approximately 23%. Based on current trends, the Company anticipates unit growth to be up in the more modest high single digit range as it moves through the inventory in the second quarter.
Non-GAAP Financial Measures
Adjusted EBITDA is calculated in substantially the same manner as "EBITDA" under the indenture governing the notes and "Consolidated EBITDA" under the agreement governing the Company's senior secured indebtedness. The Company defines "Adjusted EBITDA" as net income (loss) before interest income, interest expense, income tax expense, and depreciation and amortization ("EBITDA") adjusted for other items, including non-cash share-based compensation, loss on disposal/impairment of assets, sponsor management fees and expenses, and loss on extinguishment of debt, as well as the impact of purchase accounting adjustments resulting from the Acquisition.
Adjusted EBITDA is a non-GAAP measure but is considered an important supplemental measure of the Company's performance and is believed to be used frequently by securities analysts, investors and other interested parties in the evaluation of similar retail companies. Adjusted EBITDA is not a presentation made in accordance with GAAP and the Company's computation of Adjusted EBITDA may vary from others in the industry. Adjusted EBITDA should not be considered an alternative to operating income or net income (loss), as a measure of operating performance or cash flow, or as a measure of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
Capital expenditures for the first fiscal quarter were $7.9 million with the vast majority of the cash used to fund the opening of 25 new stores during the quarter. Smaller amounts of cash were utilized to support infrastructure investments at the corporate office and the Company's distribution center.
Inventory balances at the end of the first quarter were $163.7 million compared to $110.0 million at the end of same period of the prior year. On a per square foot basis inventory values are up 33%. The increase in inventory values reflects higher inventory unit buys versus the prior year in part to bring Crazy 8 inventory to more appropriate levels, higher average unit costs, and lower consumer acceptance of more recent deliveries.
Excluding in-transit inventory, unit growth on a per square foot basis is up approximately 23%. Based on current trends, the Company anticipates unit growth to be up in the more modest high single digit range as it moves through the inventory in the second quarter.
Non-GAAP Financial Measures
Adjusted EBITDA is calculated in substantially the same manner as "EBITDA" under the indenture governing the notes and "Consolidated EBITDA" under the agreement governing the Company's senior secured indebtedness. The Company defines "Adjusted EBITDA" as net income (loss) before interest income, interest expense, income tax expense, and depreciation and amortization ("EBITDA") adjusted for other items, including non-cash share-based compensation, loss on disposal/impairment of assets, sponsor management fees and expenses, and loss on extinguishment of debt, as well as the impact of purchase accounting adjustments resulting from the Acquisition.
Adjusted EBITDA is a non-GAAP measure but is considered an important supplemental measure of the Company's performance and is believed to be used frequently by securities analysts, investors and other interested parties in the evaluation of similar retail companies. Adjusted EBITDA is not a presentation made in accordance with GAAP and the Company's computation of Adjusted EBITDA may vary from others in the industry. Adjusted EBITDA should not be considered an alternative to operating income or net income (loss), as a measure of operating performance or cash flow, or as a measure of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
Gymboree Corporation
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