DESTINATION MATERNITY CORPORATION (DEST, Financial) filed Quarterly Report for the period ended 2009-06-30.
Destination Maternity Corporation engages in the design and retail of maternity apparel. It offers casual and career wear formal attire lingerie sportswear and outerwear. It is the provider of maternity apparel to Kohl\'s which operates approximately 834 stores throughout the United States. The Company operates its stores under four retail nameplates: Motherhood Maternity Mimi Maternity A Pea in the Pod and Destination Maternity.Destination Maternity Corporation formerly known as Mothers Work Inc. was founded in 1980 and is headquartered in Philadelphia Pennsylvania. DESTINATION MATERNITY CORPORATION has a market cap of $132.4 million; its shares were traded at around $21.69 with a P/E ratio of 21.69 and P/S ratio of 0.23.
Store Closing, Asset Impairment and Asset Disposal Expenses. Our store closing, asset impairment, and asset disposal expenses for the third quarter of fiscal 2009 decreased significantly to $0.2 million from $1.0 million for the third quarter of fiscal 2008. We incurred charges relating to store closings and other asset disposals of $0.1 million for the third quarter of fiscal 2009, as compared to charges of $0.6 million for the third quarter of fiscal 2008. We incurred lower impairment charges for write-downs of long-lived assets of $0.2 million for the third quarter of fiscal 2009, as compared to $0.4 million for the third quarter of fiscal 2008.
Loss on Extinguishment of Debt. In June 2009, we prepaid $5.0 million principal amount of our outstanding Term Loan. The $5.0 million Term Loan prepayment resulted in a third quarter fiscal 2009 pretax charge of $29,000, representing the write-off of unamortized deferred financing costs. In June 2008, we prepaid $8.0 million in principal amount of our Term Loan resulting in a pretax charge of $59,000 in the third quarter of fiscal 2008.
Store Closing, Asset Impairment and Asset Disposal Expenses. Our store closing, asset impairment, and asset disposal expenses for the first nine months of fiscal 2009 decreased significantly to $0.4 million from $2.7 million for the first nine months of fiscal 2008. We incurred charges relating to store closings and other asset disposals of $0.2 million for the first nine months of fiscal 2009, as compared to charges of $1.4 million for the first nine months of fiscal 2008. We incurred lower impairment charges for write-downs of long-lived assets of $0.5 million for the first nine months of fiscal 2009, as compared to $1.3 million for the first nine months of fiscal 2008. We recognized a gain of $0.3 million from the sale of the remaining Costa Rica facility acquired in a fiscal 2002 business purchase.
Interest Expense, Net. Our net interest expense for the first nine months of fiscal 2009 decreased by 32.7%, or approximately $1.7 million, to $3.7 million from $5.4 million for the first nine months of fiscal 2008. This decrease was due to our lower debt level, primarily as a result of the $15.0 million of Term Loan prepayments we made in the previous 12 months, and to a lesser extent, lower interest rates and lower credit line borrowings. During the first nine months of fiscal 2009, our average daily level of direct borrowings under our Credit Facility was $0.3 million compared to $5.3 million for the first nine months of fiscal 2008. We did not have any direct borrowings outstanding under our Credit Facility as of June 30, 2009.
Net Income (Loss). Net loss for the first nine months of fiscal 2009 was $(42.0) million, or $(7.02) per share (diluted). Net loss for the first nine months of fiscal 2009 includes the goodwill impairment charges of $50.4 million, or $(8.41) per diluted share. Excluding the goodwill impairment charges, our net income was $8.3 million or $1.39 per share (diluted), compared to $3.4 million or $0.56 per share (diluted) for the first nine months of fiscal 2008, which had no goodwill impairment charges.
Read the The complete ReportDEST is in the portfolios of Michael Price of MFP Investors LLC.
Destination Maternity Corporation engages in the design and retail of maternity apparel. It offers casual and career wear formal attire lingerie sportswear and outerwear. It is the provider of maternity apparel to Kohl\'s which operates approximately 834 stores throughout the United States. The Company operates its stores under four retail nameplates: Motherhood Maternity Mimi Maternity A Pea in the Pod and Destination Maternity.Destination Maternity Corporation formerly known as Mothers Work Inc. was founded in 1980 and is headquartered in Philadelphia Pennsylvania. DESTINATION MATERNITY CORPORATION has a market cap of $132.4 million; its shares were traded at around $21.69 with a P/E ratio of 21.69 and P/S ratio of 0.23.
Highlight of Business Operations:
On July 1, 2008, we announced that we were streamlining our merchandise brands and store nameplates and implementing cost reductions in order to simplify our business model, reduce overhead costs and improve and tighten our merchandise assortments. Pursuant to the strategic restructuring, we rebranded our Mimi Maternity® merchandise brand under our A Pea in the Pod® brand beginning with the Spring 2009 collection, which initially debuted in November 2008. We also streamlined our store nameplates, which began in November 2008, by renaming our single-brand Mimi Maternity stores as A Pea in the Pod, and by renaming our multi-brand Mimi Maternity stores as Destination Maternity®. In connection with the strategic restructuring we also reduced our corporate and field management headcount. During the first nine months of fiscal 2009 we began to implement actions to achieve further cost reductions. We incurred pretax expense of approximately $0.9 million from our restructuring and cost reduction actions in the fourth quarter of fiscal 2008, consisting of approximately $0.7 million for cash severance expense and severance-related benefits, and approximately $0.2 million of non-cash expense for accelerated depreciation of existing store signs resulting from planned store signage changes. We incurred pretax expense of approximately $0.6 million in the first nine months of fiscal 2009, consisting of approximately $0.3 million for cash severance expense, $0.2 million for other cost reduction initiatives and $0.1 million of non-cash expense for accelerated depreciation. We expect to incur additional pretax expense of approximately $0.3 million in the fourth quarter of fiscal 2009.Store Closing, Asset Impairment and Asset Disposal Expenses. Our store closing, asset impairment, and asset disposal expenses for the third quarter of fiscal 2009 decreased significantly to $0.2 million from $1.0 million for the third quarter of fiscal 2008. We incurred charges relating to store closings and other asset disposals of $0.1 million for the third quarter of fiscal 2009, as compared to charges of $0.6 million for the third quarter of fiscal 2008. We incurred lower impairment charges for write-downs of long-lived assets of $0.2 million for the third quarter of fiscal 2009, as compared to $0.4 million for the third quarter of fiscal 2008.
Loss on Extinguishment of Debt. In June 2009, we prepaid $5.0 million principal amount of our outstanding Term Loan. The $5.0 million Term Loan prepayment resulted in a third quarter fiscal 2009 pretax charge of $29,000, representing the write-off of unamortized deferred financing costs. In June 2008, we prepaid $8.0 million in principal amount of our Term Loan resulting in a pretax charge of $59,000 in the third quarter of fiscal 2008.
Store Closing, Asset Impairment and Asset Disposal Expenses. Our store closing, asset impairment, and asset disposal expenses for the first nine months of fiscal 2009 decreased significantly to $0.4 million from $2.7 million for the first nine months of fiscal 2008. We incurred charges relating to store closings and other asset disposals of $0.2 million for the first nine months of fiscal 2009, as compared to charges of $1.4 million for the first nine months of fiscal 2008. We incurred lower impairment charges for write-downs of long-lived assets of $0.5 million for the first nine months of fiscal 2009, as compared to $1.3 million for the first nine months of fiscal 2008. We recognized a gain of $0.3 million from the sale of the remaining Costa Rica facility acquired in a fiscal 2002 business purchase.
Interest Expense, Net. Our net interest expense for the first nine months of fiscal 2009 decreased by 32.7%, or approximately $1.7 million, to $3.7 million from $5.4 million for the first nine months of fiscal 2008. This decrease was due to our lower debt level, primarily as a result of the $15.0 million of Term Loan prepayments we made in the previous 12 months, and to a lesser extent, lower interest rates and lower credit line borrowings. During the first nine months of fiscal 2009, our average daily level of direct borrowings under our Credit Facility was $0.3 million compared to $5.3 million for the first nine months of fiscal 2008. We did not have any direct borrowings outstanding under our Credit Facility as of June 30, 2009.
Net Income (Loss). Net loss for the first nine months of fiscal 2009 was $(42.0) million, or $(7.02) per share (diluted). Net loss for the first nine months of fiscal 2009 includes the goodwill impairment charges of $50.4 million, or $(8.41) per diluted share. Excluding the goodwill impairment charges, our net income was $8.3 million or $1.39 per share (diluted), compared to $3.4 million or $0.56 per share (diluted) for the first nine months of fiscal 2008, which had no goodwill impairment charges.
Read the The complete ReportDEST is in the portfolios of Michael Price of MFP Investors LLC.
