The Bon-Ton Stores, Inc. (NASDAQ: BONT) today reported results for the first quarter of fiscal 2012 ended April 28, 2012.
First Quarter Highlights
- Comparable store sales decreased 1.3%.
- Gross margin rate was 34.3% of net sales compared with 35.5% in the first quarter of fiscal 2011.
- Operating loss totaled $18.5 million, compared with an operating loss of $2.5 million in the first quarter of fiscal 2011.
- EBITDA was $4.8 million, compared with $23.2 million in the first quarter of fiscal 2011. EBITDA is not a measure recognized under generally accepted accounting principles (see Note 1).
- Net loss totaled $40.8 million, or $2.23 per diluted share, compared with a net loss of $36.0 million, or $2.01 per diluted share, for the first quarter of fiscal 2011. The first quarter of fiscal 2012 includes a net gain of $1.9 million, or $0.10 per diluted share, related to the Company’s sale of certain Rochester, NY locations and subsequent prepayment penalty on the extinguishment of its related mortgage debt. The first quarter of fiscal 2012 also reflects a charge of $2.8 million, or $0.15 per diluted share, for severance costs related to targeted reductions to the Company’s cost structure. The first quarter of fiscal 2011 includes a charge of $9.5 million, or $0.53 per diluted share, associated with the voluntary prepayment of the Company’s second lien term loan and the refinancing of its revolving credit facility.
Brendan Hoffman, President and Chief Executive Officer, commented, “Sales from the shift of our Community Day event from February to the end of April exceeded the prior year, but we believe it had an overall negative impact on April sales leading up to the event. We responded quickly with aggressive markdowns, and liquidated a higher level of transitional and carry-over inventory, resulting in gross margin erosion. As we look ahead, we are identifying and implementing initiatives which we believe will lead to improved performance. These initiatives include continued evaluation of and adjustment to our merchandise assortment, reallocation of floor space to higher growth categories, greater focus on smaller markets, enhancements to our marketing programs, growth of profitable sales in eCommerce and changes to our operating structure.”