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Claire's CEO pleased with Q1 performance
12 Jun '09
5 min read
Excluding $1.2 million of non-recurring expenses relating to our Pan European Transformation project that were included in buying costs in the fiscal 2008 first quarter, the increase in gross profit percentage would have been approximately 70 basis points.
Selling, general and administrative expenses decreased $22.9 million, or 17.4%, compared to the fiscal 2008 first quarter. However, excluding a $10.5 million foreign currency translation effect and a decrease of $1.8 million of non-recurring costs related to our Cost Savings Initiative and Pan European Transformation projects, the net decrease in selling, general and administrative expenses would have been $10.6 million or 8.1%.
Adjusted EBITDA in the fiscal 2009 first quarter was $36.3 million compared to $34.3 million in the fiscal 2008 first quarter. The Company defines Adjusted EBITDA as earnings before interest, income taxes, depreciation and amortization, excluding the impact of transaction related costs incurred in connection with its May 2007 acquisition and other non-recurring or non-cash expenses, and normalizing occupancy costs for certain rent-related adjustments.
At May 2, 2009, cash and cash equivalents were $206.7 million and $194.0 million continued to be drawn on the Company's Revolving Credit Facility. As previously disclosed, the Company drew the full available amount under the facility during the 2008 third quarter in order to preserve the availability of the commitment because a member of the facility syndicate, Lehman Brothers, filed for bankruptcy.
The agent bank has not yet found a replacement for Lehman Brothers in the facility syndicate, or arranged for the assumption of Lehman Brothers' commitment by a creditworthy entity. The Company will continue to assess whether to pay down all or a portion of this outstanding balance based on various factors, including the creditworthiness of other syndicate members and general economic conditions.
We generated cash from operating activities of $10.6 million in the fiscal 2009 first quarter. This was net of $18.4 million of interest payments. Capital expenditures during first quarter 2009 were $5.2 million, of which $2.9 million related to new store openings and remodeling projects, compared with $15.6 million of capital expenditures during the first quarter 2008.
Selling, general and administrative expenses decreased $22.9 million, or 17.4%, compared to the fiscal 2008 first quarter. However, excluding a $10.5 million foreign currency translation effect and a decrease of $1.8 million of non-recurring costs related to our Cost Savings Initiative and Pan European Transformation projects, the net decrease in selling, general and administrative expenses would have been $10.6 million or 8.1%.
Adjusted EBITDA in the fiscal 2009 first quarter was $36.3 million compared to $34.3 million in the fiscal 2008 first quarter. The Company defines Adjusted EBITDA as earnings before interest, income taxes, depreciation and amortization, excluding the impact of transaction related costs incurred in connection with its May 2007 acquisition and other non-recurring or non-cash expenses, and normalizing occupancy costs for certain rent-related adjustments.
At May 2, 2009, cash and cash equivalents were $206.7 million and $194.0 million continued to be drawn on the Company's Revolving Credit Facility. As previously disclosed, the Company drew the full available amount under the facility during the 2008 third quarter in order to preserve the availability of the commitment because a member of the facility syndicate, Lehman Brothers, filed for bankruptcy.
The agent bank has not yet found a replacement for Lehman Brothers in the facility syndicate, or arranged for the assumption of Lehman Brothers' commitment by a creditworthy entity. The Company will continue to assess whether to pay down all or a portion of this outstanding balance based on various factors, including the creditworthiness of other syndicate members and general economic conditions.
We generated cash from operating activities of $10.6 million in the fiscal 2009 first quarter. This was net of $18.4 million of interest payments. Capital expenditures during first quarter 2009 were $5.2 million, of which $2.9 million related to new store openings and remodeling projects, compared with $15.6 million of capital expenditures during the first quarter 2008.
Claire's Stores Inc
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