Endeavor Acquisition reports American Apparel's Q1 2007 results
12 Jun '07
4 min read
The non-cash and other adjustment items in the quarterly comparisons per the acquisition agreement include deferred rent, litigation/legal expenses and business combination expenses not capitalized.
These adjustments totaled approximately $0.4 million for the three months ended March 31, 2007 as compared to approximately $1.1 million for the three months ended March 31, 2006.
“I am excited with our first quarter results and proud of our team,” said Dov Charney, American Apparel's founder and CEO. “We have experienced significant growth in the past year and we are continuing to build on the positive momentum associated with the expansion of our brand within the US and throughout the world."
"We have begun work on some important new stores, such as in Italy, the British Isles and Hawaii, and our current sales trends are continuing at the strong pace of the first quarter.”
“I look forward to the closing of the merger with Endeavor. In the meantime, we are focused on enhancing the foundation of our business systems to improve scalability for the years to come," said Mr. Charney.
For the year ended December 31, 2006, American Apparel reported combined sales of $284.3 million. This was a 38% increase over sales of $205.5 million for the year ended December 31, 2005. American Apparel finished 2006 with 147 stores as compared to 104 stores at the end of 2005.
American Apparel's retail sales for the year ended December 31,2006 were $134.4 million, a 98% increase over retail sales of $67.9 million for the year ended December 31, 2005.
Wholesale sales for the year ended December 31, 2006 were $150.5 million, a 9.4% increase over wholesale sales of $137.6 million for the year ended December 31, 2005.
Pro forma adjusted EBITDA equaled $32.4 million for the year ended December 31, 2006. This represents a 33.3% increase over pro forma adjusted EBITDA of $24.3 million for the year ended December 31, 2005.
The non-cash and other adjustment items in the year-over-year comparisons per the acquisition agreement include deferred rent, litigation/legal expenses and business combination expenses not capitalized. These adjustments totaled approximately $7.9 million for the year ended December 31, 2006 as compared to approximately $5.8 million for the year ended December 31, 2005.
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