dELIA*s Inc. (DLIA, Financial) filed Quarterly Report for the period ended 2009-05-02.
dELIA*s Inc. has a market cap of $86.7 million; its shares were traded at around $2.78 with and P/S ratio of 0.4.
Net cash used in operating activities was $38.7 million in the thirteen weeks ended May 2, 2009, compared with $5.6 million in the thirteen weeks ended May 3, 2008. The cash used in operating activities in the thirteen weeks ended May 2, 2009 was due primarily to the payment of income taxes mostly related to the sale of CCS and the funding of a restricted cash account to support outstanding letters of credit that extend beyond the expiration date of the Restated Credit Facility. The cash used in operating activities in the thirteen weeks ended May 3, 2008 was due primarily to funding the net operating losses in both segments.
Cash used in financing activities was $0.1 million in the thirteen weeks ended May 2, 2009, related repayment on our mortgage note payable. Cash provided by financing activities in the thirteen weeks ended May 3, 2008 was $1.8 million, primarily related to borrowings on our Restated Credit Facility.
The Company is allowed under the Restated Credit Facility, under certain circumstances and if certain conditions are met, to permanently increase the credit limit in $5 million increments, up to a maximum credit limit of $40 million. Each permanent increase in the credit limit requires the Company to pay an origination fee of 0.20% of the amount of the increase. During March 2008, we permanently increased the credit limit under the Restated Credit Facility by $5 million, from $25 million to $30 million. The Company may also obtain temporary credit limit increases for up to 90 consecutive days during the period beginning July 15th and ending on December 15th each year. Temporary credit limit increases do not require the payment of an origination fee. In the third quarter of fiscal 2008, the Company obtained a temporary credit increase of $5 million. During June 2008, the Restated Credit Facility was amended to allow for letters of credit up to an aggregate amount of $15 million. The Restated Credit Facility previously allowed for letters of credit up to an aggregate amount of $10 million. The Restated Credit Facility had an original maturity date of May 17, 2009, however, the Company extended the date to June 26, 2009 in order to finalize a new financing arrangement with Wells Fargo Retail Finance II, LLC.
At May 2, 2009, the unused available amount under the Restated Credit Facility was $17.4 million after reflecting approximately $9.2 million of outstanding letters of credit.
As of May 2, 2009, January 31, 2009 and May 3, 2008, there were $-0-, $-0- and $1.9 million outstanding, respectively, under the Restated Credit Facility. Upon the closing of the sale of CCS on November 5, 2008, all then outstanding borrowings were repaid.
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dELIA*s Inc. has a market cap of $86.7 million; its shares were traded at around $2.78 with and P/S ratio of 0.4.
Highlight of Business Operations:
Total Selling, General and Administrative. As a percentage of revenues, total selling, general and administrative expenses (SG&A) decreased to 42.5% for the quarter ended May 2, 2009 from 48.5% for the quarter ended May 3, 2008. In total dollars, selling, general and administrative expenses decreased $0.5 million, from $22.7 million in the quarter ended May 3, 2008 to $22.2 million in the quarter ended May 2, 2009. The improvement in SG&A expenses as a percentage of sales reflects the leveraging of selling expenses on higher sales in both the retail and direct segments, as well as reduced overhead costs as a result of our recent restructuring. Results for the first quarter of 2009 reflect approximately $1.7 million in cost reductions related to the restructuring.Net cash used in operating activities was $38.7 million in the thirteen weeks ended May 2, 2009, compared with $5.6 million in the thirteen weeks ended May 3, 2008. The cash used in operating activities in the thirteen weeks ended May 2, 2009 was due primarily to the payment of income taxes mostly related to the sale of CCS and the funding of a restricted cash account to support outstanding letters of credit that extend beyond the expiration date of the Restated Credit Facility. The cash used in operating activities in the thirteen weeks ended May 3, 2008 was due primarily to funding the net operating losses in both segments.
Cash used in financing activities was $0.1 million in the thirteen weeks ended May 2, 2009, related repayment on our mortgage note payable. Cash provided by financing activities in the thirteen weeks ended May 3, 2008 was $1.8 million, primarily related to borrowings on our Restated Credit Facility.
The Company is allowed under the Restated Credit Facility, under certain circumstances and if certain conditions are met, to permanently increase the credit limit in $5 million increments, up to a maximum credit limit of $40 million. Each permanent increase in the credit limit requires the Company to pay an origination fee of 0.20% of the amount of the increase. During March 2008, we permanently increased the credit limit under the Restated Credit Facility by $5 million, from $25 million to $30 million. The Company may also obtain temporary credit limit increases for up to 90 consecutive days during the period beginning July 15th and ending on December 15th each year. Temporary credit limit increases do not require the payment of an origination fee. In the third quarter of fiscal 2008, the Company obtained a temporary credit increase of $5 million. During June 2008, the Restated Credit Facility was amended to allow for letters of credit up to an aggregate amount of $15 million. The Restated Credit Facility previously allowed for letters of credit up to an aggregate amount of $10 million. The Restated Credit Facility had an original maturity date of May 17, 2009, however, the Company extended the date to June 26, 2009 in order to finalize a new financing arrangement with Wells Fargo Retail Finance II, LLC.
At May 2, 2009, the unused available amount under the Restated Credit Facility was $17.4 million after reflecting approximately $9.2 million of outstanding letters of credit.
As of May 2, 2009, January 31, 2009 and May 3, 2008, there were $-0-, $-0- and $1.9 million outstanding, respectively, under the Restated Credit Facility. Upon the closing of the sale of CCS on November 5, 2008, all then outstanding borrowings were repaid.
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