- Third quarter net sales were $155.2 million compared to $158.7 million in the prior year period. Comparable store sales (1) for the quarter were essentially flat, decreasing 0.1%.
- Net loss in the third quarter of fiscal 2012 was $53.6 million compared to net loss of $10.1 million in the third quarter of fiscal 2011. Net loss in the 2012 quarterly period includes $65.1 million of non-cash charges comprised of $60.3 million for impairment of trade names and $4.8 million for impairment of store assets, as well as $1.1 million of charges related to litigation and financial advisory fees related to the Company’s financing efforts.
- Non-GAAP Adjusted EBITDA for the quarter was $1.7 million compared to $9.3 million in the third quarter of fiscal 2011. Gross margin in the third quarter was impacted largely by increased promotional activity versus a year ago to help drive sales and clear inventory. Adjusted EBITDA for the quarterly period also includes approximately $0.9 million of incremental costs associated with the effect of having transitioned to a publicly traded company independent from Sears Holdings Corporation and approximately $0.7 million of rent associated with sale-leaseback properties owned by the Company in the prior year period and for which the Company did not pay rent (see “Non-GAAP Financial Measures” below for a discussion of this non-GAAP measure and reconciliation to its most directly comparable GAAP financial measure and further information on its uses and limitations).
- As of October 27, 2012, total long-term debt was $173.7 million, all of which was classified as current. Total long-term debt plus capital leases was $228.4 million compared to $320.0 million at October 29, 2011. During the period, Orchard successfully refinanced its Senior Secured Credit Facility, providing the Company with increased borrowing capacity at a lower cost. At the close of the third quarter, the Company had approximately $66.5 million of available cash and credit.
Orchard Supply Hardware Stores Corporation (Nasdaq:OSH), which operates neighborhood hardware and garden stores focused on paint, repair and the backyard, today announced financial results for the third quarter of fiscal 2012 ended October 27, 2012. Third Quarter Fiscal 2012 Financial Results