The Company reported adjusted earnings per share ("EPS") of $0.14 for the fourth quarter of 2012, as compared with adjusted EPS of $0.10 for the same period last year. The 2011 fourth quarter results include certain tax benefits of $0.07 per share. Adjusted EPS from continuing operations on a full year basis were $1.24 in 2012, as compared with $1.30 per share in the prior year.
The adjusted results exclude charges related to the impairments of certain intangible assets, the impact of severance and other costs related to restructuring activities, certain acquisition-related costs and other costs not considered relevant for period-over-period comparisons (see reconciliation of adjusted earnings to reported earnings in the accompanying schedule).
As reported under generally accepted accounting principles ("GAAP"), the Company reported a fourth quarter loss per share of ($1.06) and ($0.27) for 2012 and 2011, respectively. On a full year basis, the Company reported a GAAP loss of ($0.72) per share for 2012, as compared with earnings of $0.61 per share for 2011.
The results for both periods include non-cash impairment charges relating to certain goodwill, trademarks and other intangible assets. The non-cash impairment charges of $75 million ($66 million after tax) and $32 million ($20 million after tax) for 2012 and 2011, respectively, were primarily related to goodwill in our International Retail business and trade names utilized in our Wholesale Jeanswear business. Such charges in both periods were a result of the Company's required annual testing under GAAP.
Wesley R. Card, The Jones Group Chief Executive Officer, stated: "We are pleased with the results we achieved in the fourth quarter and particularly, the improvement in our operating performance. This resulted in adjusted earnings per share of $0.14 versus $0.03 last year, exclusive of tax benefits of $0.07. Our domestic wholesale footwear and accessories and jeanswear businesses were our best performers, while our structured sportswear business and retail channels remained more challenging and promotional, although we are encouraged with our overall turnaround efforts in these segments. Our international segments continued to perform quite well, especially in the face of a difficult economic climate, particularly in Western Europe."
Adjusted operating cash flow during 2012 was $207 million, as compared with $277 million in 2011. The current year results reflect a higher level of required investment in working capital, higher tax and interest payments, and slightly lower earnings.
Under GAAP, 2012 cash flows from operations were $113 million, as compared with $272 million in the prior year. In addition to the aforementioned higher levels of working capital investment, the 2012 GAAP results include significant acquisition payments related to the Stuart Weitzman business. At year-end, the Company had $150 million in cash and no amounts drawn under its $650 million of committed revolving credit facilities.
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