As previously announced, the Company continues to provide for adjustments to the deferred tax valuation allowance initially recorded in the second quarter of fiscal year 2010 substantially offsetting any future tax provisions or benefits resulting in an approximately 0% effective tax rate for GAAP purposes.
The Company anticipates total inventory levels at the end of the fourth quarter of fiscal year 2012 to be up in the low single-digit percentage as compared to last year-end. The retail value of in-store inventory per average store is expected to be up by a double-digit percentage to support the Company’s early spring floorset.
The Company expects to end the year with no borrowings under its credit facility and no long-term debt.
Capital expenditures are expected to be approximately $6 million for the fourth quarter of fiscal year 2012, as compared to $2.8 million in the prior year fourth quarter. Depreciation expense for the period is estimated at $9 million.The Company expects to remodel one existing location and close between 16 and 20 stores, ending the fourth quarter of fiscal year 2012 with between 516 and 520 stores, including 44 Outlet stores. The Company plans to end fiscal year 2012 having opened 18 new stores, including 17 Outlet stores, remodeled 13 existing stores and closed between 30 and 34 stores, ending the fiscal year with between 516 and 520 stores and approximately 2.7 million selling square feet. Conference Call Information A conference call to discuss the third quarter of fiscal year 2012 results is scheduled for Wednesday, November 28, 2012 at 4:30pm Eastern Time. Investors and analysts interested in participating in the call are invited to dial 888-481-2844, referencing conference ID number 4145498, approximately ten minutes prior to the start of the call. The conference call will also be web-cast live at www.nyandcompany.com. A replay of this call will be available until 11:59pm Eastern Time on December 5, 2012 and can be accessed by dialing 877-870-5176 and entering conference ID number 4145498. About New York & Company, Inc. New York & Company, Inc. is a leading specialty retailer of women's fashion apparel and accessories, and the modern wear-to-work destination for women, providing perfectly fitting pants and NY Style that is feminine, polished, on-trend and versatile. The Company's proprietary branded New York & Company® merchandise is sold exclusively through its national network of retail stores and eCommerce store at www.nyandcompany.com. The Company currently operates 536 retail stores in 43 states. Additionally, certain product, press release and SEC filing information concerning the Company are available at the Company's website: www.nyandcompany.com. Forward-looking Statements This press release contains certain forward looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Some of these statements can be identified by terms and phrases such as “expect,” “anticipate,” “believe,” “intend,” “estimate,” “continue,” “could,” “may,” “plan,” “project,” “predict,” and similar expressions and references to assumptions that the Company believes are reasonable and relate to its future prospects, developments and business strategies. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These include, but are not limited to: (i) the impact of general economic conditions and their effect on consumer confidence and spending patterns; (ii) changes in the cost of raw materials, distribution services or labor; (iii) the potential for current economic conditions to negatively impact the Company's merchandise vendors and their ability to deliver products; (iv) the Company’s ability to open and operate stores successfully; (v) seasonal fluctuations in the Company’s business; (vi) the Company’s ability to anticipate and respond to fashion trends; (vii) the Company’s dependence on mall traffic for its sales; (viii) competition in the Company’s market, including promotional and pricing competition; (ix) the Company’s ability to retain, recruit and train key personnel; (x) the Company’s reliance on third parties to manage some aspects of its business; (xi) the Company’s reliance on foreign sources of production; (xii) the Company’s ability to protect its trademarks and other intellectual property rights; (xiii) the Company’s ability to maintain, and its reliance on, its information technology infrastructure; (xiv) the effects of government regulation; (xv) the control of the Company by its sponsors and any potential change of ownership of those sponsors; and (xvi) other risks and uncertainties as described in the Company’s documents filed with the SEC, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company undertakes no obligation to revise the forward looking statements included in this press release to reflect any future events or circumstances.