fiscal 2005 outlook
the company is currently not providing any go forward estimates for operating results, however the following should be noted:
- subsequent to april 30, 2005 the company's cash position improved as a result of its closing of a previously announced $31.0 million preferred stock financing. the company received, after retiring its $10.0 million bridge loan facility and accrued interest, approximately $18.9 million in proceeds before transaction expenses. the additional funds and the current trend of the company's business have significantly improved its liquidity position.
- the company anticipates it will continue to have significant non-cash stock compensation charges associated with stock grants to its board of directors, employees and consultants.
- the company previously reported it anticipated incurring interest expense of approximately $12.1 million for the company's fiscal year ending january 31, 2006, a result of the series of debt financings and related transaction costs during fiscal 2004. as a result of the retirement of its bridge loan facility, the company now anticipates it will incur net interest charges for its fiscal year ending january 31, 2006 of approximately $6.0 million. approximately $4.3 million of projected interest expense will have no cash effect for the 52-week period ending january 31, 2006.
headquartered in foothill ranch, the wet seal inc is a leading specialty retailer of fashitaitailer of fashionable and contemporary apparel and accessory items. the company currently operates a total of 398 stores in 46 states, the district of columbia and puerto rico, including 307 wet seal stores and 91 arden b. stores.