Interviews
News Flash
American Apparel reports fiscal 2007 Q1 same-store sales up
07 Apr '07
3 min read
Endeavor has also waived the original pro forma adjusted EBITDA projection requirements for 2007 and 2008 contained in the merger agreement. This is due to changes in the original timing assumptions used by American Apparel in its projections for receipt of both additional interim bank debt financing and the equity financing that the parties believe will be available to American Apparel as a result of the merger closing.
The existing projections were also impacted by various covenants currently in place on American Apparel's existing debt financing that will serve to limit the number of store openings for 2007 to a number lower than that contained in American Apparel's original projections. It is anticipated that these restrictions will be lifted upon the closing of the merger with Endeavor as a result of the capital infusion of up to $120 million from the merger and improved bank financing terms resulting from such capital infusion.
American Apparel believes at the present time that pro forma adjusted EBITDA will be in the range of $40 million for the fiscal year ending December 31, 2007. The combined companies will provide normal and customary public-company forward-looking guidance for the fiscal years ending in December 2007 and December 2008 once the merger between Endeavor and American Apparel is completed.
“I am pleased that American Apparel continues to flourish with strong same store sales this quarter. The merger with Endeavor will provide the equity capital necessary to fuel our continued growth and expansion of our operations in several of the most influential metropolitan centers around the world,” said American Apparel founder and CEO Dov Charney. “Until the merger is completed, we continue to prepare the company for this influx of capital,” said Charney.
The existing projections were also impacted by various covenants currently in place on American Apparel's existing debt financing that will serve to limit the number of store openings for 2007 to a number lower than that contained in American Apparel's original projections. It is anticipated that these restrictions will be lifted upon the closing of the merger with Endeavor as a result of the capital infusion of up to $120 million from the merger and improved bank financing terms resulting from such capital infusion.
American Apparel believes at the present time that pro forma adjusted EBITDA will be in the range of $40 million for the fiscal year ending December 31, 2007. The combined companies will provide normal and customary public-company forward-looking guidance for the fiscal years ending in December 2007 and December 2008 once the merger between Endeavor and American Apparel is completed.
“I am pleased that American Apparel continues to flourish with strong same store sales this quarter. The merger with Endeavor will provide the equity capital necessary to fuel our continued growth and expansion of our operations in several of the most influential metropolitan centers around the world,” said American Apparel founder and CEO Dov Charney. “Until the merger is completed, we continue to prepare the company for this influx of capital,” said Charney.
American Apparel Inc
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
