The Bon-Ton Stores, Inc. (NASDAQ:BONT) today reported operating results for the second quarter of fiscal 2013 ended August 3, 2013.
Second Quarter Highlights
- Comparable store sales decreased 6.4%.
- Gross margin rate increased 100 basis points to 37.0%, compared with 36.0% in the second quarter of fiscal 2012.
- Operating loss improved by $2.2 million to $15.5 million, compared with an operating loss of $17.6 million in the second quarter of fiscal 2012.
- Adjusted EBITDA increased $1.6 million to $8.7 million, compared with $7.1 million in the second quarter of fiscal 2012. Adjusted EBITDA is not a measure recognized under generally accepted accounting principles (see Note 1).
- Net loss improved by $7.7 million to $37.3 million, or $1.95 per diluted share, compared with a net loss of $45.0 million, or $2.43 per diluted share, for the second quarter of fiscal 2012. The results for the second quarter of fiscal 2013 include a charge of $3.9 million, or $0.20 per diluted share, for fees and accelerated amortization of deferred fees related to the tender and redemption of the Company’s Senior Notes due 2014 and Second Lien Senior Secured Notes due 2017. The results for the second quarter of fiscal 2012 included a charge of $6.3 million, or $0.34 per diluted share, for fees associated with the exchange of certain of the Company’s Senior Notes due 2014 for Second Lien Senior Secured Notes due 2017.
Brendan Hoffman, President and Chief Executive Officer, commented, “We were disappointed in our second quarter sales performance, but we were pleased we were able to deliver on several of our goals, including a 100 basis point increase in the gross margin rate and reduced expenses, which led to 23% growth in Adjusted EBITDA. We believe overall sales weakness was in part attributable to the adverse impact of inclement weather in our markets and higher gas prices, especially in the Northeast and Midwest, which contributed to an unfavorable shift in consumer spending patterns. Looking ahead, we remain focused on the continued execution of our key merchandising, marketing and eCommerce strategies, including the localization of our merchandise assortments and marketing programs to drive top-line growth, while maintaining disciplined inventory management and careful cost controls.”