Wet Seal reports same-store sales up 29.8% for Q1

28 May '05

7 min read

interest expense, other than interest expense for the company's bridge loan of approximately $1.0 million and term loan and commitment fees on its senior revolver credit facility of approximately $0.3 million, was non-cash related either in the form of capitalized interest or amortization of debt discount and deferred financing charges. the company's bridge loan facility and accrued interest were paid off may 3, 2005 in conjunction with the company's previous announcement of its sale of convertible preferred stock.

the company's cash position at april 30, 2005 was $46.4 million, a decline of $25.3 million from the cash position at january 31, 2005.

the decline in the cash position was principally due to lease termination payments of $8.0 million, inventory buildup net of trade credit of $14.3 million and capital expenditures primarily for new store development and relocations of $2.4 million. merchandise payables, as a percent of inventory, was 30.3% versus 56.8% at january 31, 2005. the decrease in the merchandise payable to inventory ratio was due to shorter credit terms with the majority of the company's merchandise suppliers.

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 finandise suppliers.

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