The Bon-Ton Stores, Inc. (NASDAQ: BONT) today reported results for the second quarter of fiscal 2012 ended July 28, 2012.
Second Quarter Highlights
- Comparable store sales increased 0.1%.
- Gross margin rate was 36.0% compared with 37.2% in the second quarter of fiscal 2011.
- Operating loss, which includes a $4.0 million charge for severance and other one-time costs related to targeted reductions to the Company’s cost structure, totaled $17.6 million, compared with an operating loss of $11.8 million in the second quarter of fiscal 2011.
- EBITDA, inclusive of the aforementioned $4.0 million of severance and other one-time costs, was $7.1 million, compared with $15.6 million in the second quarter of fiscal 2011. EBITDA is not a measure recognized under generally accepted accounting principles (see Note 1).
- Net loss totaled $45.0 million, or $2.43 per diluted share, compared with a net loss of $32.3 million, or $1.78 per diluted share, for the second quarter of fiscal 2011. The results for the second quarter of fiscal 2012 include a pre-tax charge of $6.3 million, or $0.34 per diluted share, for fees associated with the recently completed exchange of $330 million of the Company’s 10¼% Senior Notes due 2014 for new 10⅝% Second Lien Senior Secured Notes due 2017 and a pre-tax charge of $4.0 million, or $0.21 per diluted share, for the aforementioned severance and other one-time costs.
Brendan Hoffman, President and Chief Executive Officer, commented, “In the second quarter, we continued to identify and implement initiatives to improve our business. While the financial results were below last year, we are encouraged by the progress we have made in several areas, including merchandising, eCommerce and marketing. We saw significant improvement in the Ladies Ready-to-Wear businesses, particularly Moderate Traditional Sportswear, and strong results in Cosmetics, Shoes and Home, including Furniture. We were particularly pleased with favorable customer response to new offerings, reflecting recent adjustments in our merchandise assortments. In addition, customers are responding extremely well to new marketing messages that clearly communicate the value we offer. Our disciplined expense management efforts in the second quarter have us on track to achieve the expense reductions that were discussed in last quarter’s earnings release.”