Bon-Ton Stores Inc presents Q2 results

18 Aug '05

4 min read

Selling, General and Administrative Expenses
Selling, general and administrative (SG&A) expenses decreased $4.6 million in the second quarter of 2005. The SG&A expense rate decreased 0.4 percentage point to 34.1 percent of sales, reflecting reduced corporate, store and integration expenses, partially offset by a $1.0 million pre-tax charge associated with the sale of the Company's proprietary credit card, compared to 34.5 percent for the same period last year, which included a $1.7 million pre-tax charge associated with the closing of the Company's Pottstown, Pennsylvania store. Year-to-date SG&A expenses decreased $6.1 million. The year-to-date SG&A expense rate decreased 0.3 percentage point to 35.0 percent of sales compared to 35.3 percent in the prior year period.

Depreciation and Amortization
Depreciation and amortization expense in the second quarter was comparable with the prior year period. Year-to-date depreciation and amortization expense decreased $0.6 million, reflecting the impact of final purchase price allocation adjustments recorded in fiscal 2004.

Interest
Interest expense, net increased $0.2 million in the second quarter and $0.3 million in the first six months of fiscal 2005, reflecting the additional borrowings required funding increased inventory and higher average interest rates for the period. Interest expense was positively impacted by a pay down in long-term debt as a result of applying the proceeds from the credit card sale in early July 2005.

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