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American Apparel revenue up 35% in Q2

21 Aug '07

4 min read

Endeavor Acquisition Corp is pleased to report American Apparel's financial results for the second quarter of 2007 and to announce the filing with the Securities and Exchange Commission of an amendment to the preliminary proxy statement with respect to the proposed acquisition of American Apparel by Endeavor.

The amendment to the preliminary proxy statement, originally filed with the SEC on June 11, 2007, includes American Apparel's audited financial statements for fiscal year 2005 and unaudited financial statements for calendar year 2004, as well as unaudited financial information for each Endeavor and American Apparel for the six month periods ended June 30, 2007 and 2006.

The amended proxy statement also includes additional information with respect to nominees for the post-acquisition board of directors of the public company. The deal is subject to approval by Endeavor's stockholders and is expected to close in the second half of 2007.

The information below presents the combined results of American Apparel Inc (“AAI”) and The American Apparel Group of Canada (“CI”), collectively “American Apparel”, unless specifically noted otherwise.

American Apparel reported unaudited combined sales for the 2007 second quarter ended June 30, 2007 of $95.6 million, a 35% increase over sales of $71.0 million for the three month period ended June 30, 2006. Retail sales increased 51% to $52.6 million for the second quarter of 2007 as compared to $34.9 million for the same period in 2006, with same-store sales for stores open at least 12 months rising 24%.

At June 30, 2007, American Apparel had 156 stores as compared to 131 stores at June 30, 2006. Wholesale results were $43.0 million for the 2007 second quarter as compared to $36.3 million for the 2006 second quarter, an increase of 19%.

Pro Forma Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and certain adjustments and exclusions (“pro forma adjusted EBITDA”) equaled $18.0 million for the second quarter ended June 30, 2007.

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