Net cash provided by operating activities was $64.1 million in 2012 compared to $71.8 million in 2011. This decrease in net cash provided by operating activities is primarily due to the increase in U.S. Wholesale sales in the fourth quarter of 2012 as compared to in the four quarter of 2011, which caused receivables to grow and cash receipts to be delayed in 2012 compared to 2011. The timing of payments from International wholesale customers also impacted the growth in receivables.
During the 2012 fourth quarter, True Religion Apparel opened three stores in the U.S. and two stores in Canada. As of December 31, 2012, the Company operated 122 stores in the U.S. and 30 international stores.
Review of Strategic AlternativesIn October, 2012, the Company announced that the Board of Directors has formed a Special Committee comprised of its non-management directors to explore and evaluate potential strategic alternatives available to the Company. The review by the Special Committee is continuing. No decision has been made to engage in a transaction or transactions, and there can be no assurance that any transaction or any other strategic alternative will occur or, if undertaken, the terms or timing thereof. First Quarter and Full-Year 2013 Guidance For the full year ended December 31, 2013 the Company expects:
- Net sales to be between $509 million and $513 million
- Diluted EPS to be between $1.89 and $1.95
- Net sales within the Company's U.S. Consumer Direct segment are forecasted to grow approximately 8% to 9% compared to 2012. This growth assumes 14 new retail stores in 2013 and the full year impact of the 14 stores opened in 2012. Same store sales are expected to be in the range of flat to up in the low single digits.
- Net sales in the Company's U.S. Wholesale segment are expected to increase slightly compared to 2012. Off-Price channel sales are expected to be flat compared to 2012.
- The International segment's net sales are forecasted to grow approximately 20% as compared to 2012 primarily due to the full year impact of 14 stores opened in 2012 and five to eight new stores in 2013.