Liz Claiborne Inc. (LIZ, Financial) filed Quarterly Report for the period ended 2012-06-30.
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We ended the first six months of 2012 with a net debt position (total debt less cash and marketable securities) of $328.6 million as compared to $741.6 million at the end of the first six months of 2011. The $413.0 million decrease in our net debt primarily reflected: (i) the receipt of $470.7 million primarily from sales transactions (including $20.0 million received from JCPenney, which is refundable under certain circumstances, with the earliest possible repayment in the fourth quarter of 2012); (ii) net proceeds of $160.6 million from the issuance of the Additional Notes; (iii) the repurchase of 168.6 million euro aggregate principal amount of our Euro Notes; (iv) the conversion of $58.4 million aggregate principal amount of our Convertible Notes into 17.0 million shares of our common stock; and (v) the funding of $62.3 million of capital and in-store shop expenditures over the last 12 months. We also generated $80.9 million in cash from continuing operations over the past 12 months.
Net sales for the first half of 2012 were $654.0 million, a decrease of $37.0 million, or 5.3%, compared to the first half of 2011. Excluding the impact of a $111.8 million decline in net sales related to brands that have been exited, net sales increased $74.8 million, or 10.8%. The decrease in net sales due to brands that have been exited related principally to the conclusion of: (i) wholesale sales in early 2012 for the former licensed DKNY® Jeans family of brands; (ii) AXCESS wholesale sales in Fall 2011; and (iii) licensing revenues related to the LIZ CLAIBORNE family of brands and the DANA BUCHMAN brand due to the sales of the trademark rights for such brands in the fourth quarter of 2011. Net sales increased in our KATE SPADE and LUCKY BRAND segments, partially offset by a decline in net sales within our JUICY COUTURE segment.
Net sales for the second quarter of 2012 were $336.9 million, a decrease of $23.4 million, or 6.5%, compared to the second quarter of 2011. Excluding the impact of a $62.1 million decline in net sales related to brands that have been exited, net sales increased $38.7 million, or 10.7%. The decrease in net sales due to brands that have been exited related principally to the conclusion of: (i) wholesale sales in early 2012 for the former licensed DKNY® Jeans family of brands; (ii) AXCESS wholesale sales in Fall 2011; and (iii) licensing revenues related to the LIZ CLAIBORNE family of brands and the DANA BUCHMAN brand, due to the sales of the trademark rights for such brands in the fourth quarter of 2011. Net sales increased in our KATE SPADE and LUCKY BRAND segments, partially offset by a decline in net sales within our JUICY COUTURE segment.
Cash and Debt Balances. We ended the first half of 2012 with $173.9 million in cash and marketable securities, compared to $27.2 million at the end of the first half of 2011 and with $502.5 million of debt outstanding at the end of the first half of 2012, compared to $768.8 million at the end of the first half of 2011. The $413.0 million decrease in our net debt position over the last twelve months primarily reflected: (i) the receipt of $470.7 million primarily from sales transactions (including $20.0 million received from JCPenney, which is refundable under certain circumstances, with the earliest possible repayment in the fourth quarter of 2012); (ii) net proceeds of $160.6 million from the issuance of the Additional Notes; (iii) the repurchase of 168.6 million euro aggregate principal amount of our Euro Notes; (iv) the conversion of $58.4 million of our Convertible Notes into 17.0 million shares of our common stock; and (v) the funding of $62.3 million of capital and in-store shop expenditures over the last 12 months. We also generated $80.9 million in cash from continuing operations over the past 12 months.
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Highlight of Business Operations:
The Companys equity in earnings of its equity investees was $1.0 million and $1.1 million in the six months ended June 30, 2012 and July 2, 2011, respectively, and $0.9 million and $0.8 million for the three months ended June 30, 2012 and July 2, 2011, respectively, which was included in Other income (expense), net on the accompanying Condensed Consolidated Statements of Operations. As of June 30, 2012, December 31, 2011 and July 2, 2011, the Company recorded $22.5 million, $19.1 million and $15.2 million, respectively, related to its investments in and advances to equity investees, which was included in Other assets on the accompanying Condensed Consolidated Balance Sheets.We ended the first six months of 2012 with a net debt position (total debt less cash and marketable securities) of $328.6 million as compared to $741.6 million at the end of the first six months of 2011. The $413.0 million decrease in our net debt primarily reflected: (i) the receipt of $470.7 million primarily from sales transactions (including $20.0 million received from JCPenney, which is refundable under certain circumstances, with the earliest possible repayment in the fourth quarter of 2012); (ii) net proceeds of $160.6 million from the issuance of the Additional Notes; (iii) the repurchase of 168.6 million euro aggregate principal amount of our Euro Notes; (iv) the conversion of $58.4 million aggregate principal amount of our Convertible Notes into 17.0 million shares of our common stock; and (v) the funding of $62.3 million of capital and in-store shop expenditures over the last 12 months. We also generated $80.9 million in cash from continuing operations over the past 12 months.
Net sales for the first half of 2012 were $654.0 million, a decrease of $37.0 million, or 5.3%, compared to the first half of 2011. Excluding the impact of a $111.8 million decline in net sales related to brands that have been exited, net sales increased $74.8 million, or 10.8%. The decrease in net sales due to brands that have been exited related principally to the conclusion of: (i) wholesale sales in early 2012 for the former licensed DKNY® Jeans family of brands; (ii) AXCESS wholesale sales in Fall 2011; and (iii) licensing revenues related to the LIZ CLAIBORNE family of brands and the DANA BUCHMAN brand due to the sales of the trademark rights for such brands in the fourth quarter of 2011. Net sales increased in our KATE SPADE and LUCKY BRAND segments, partially offset by a decline in net sales within our JUICY COUTURE segment.
Net sales for the second quarter of 2012 were $336.9 million, a decrease of $23.4 million, or 6.5%, compared to the second quarter of 2011. Excluding the impact of a $62.1 million decline in net sales related to brands that have been exited, net sales increased $38.7 million, or 10.7%. The decrease in net sales due to brands that have been exited related principally to the conclusion of: (i) wholesale sales in early 2012 for the former licensed DKNY® Jeans family of brands; (ii) AXCESS wholesale sales in Fall 2011; and (iii) licensing revenues related to the LIZ CLAIBORNE family of brands and the DANA BUCHMAN brand, due to the sales of the trademark rights for such brands in the fourth quarter of 2011. Net sales increased in our KATE SPADE and LUCKY BRAND segments, partially offset by a decline in net sales within our JUICY COUTURE segment.
Cash and Debt Balances. We ended the first half of 2012 with $173.9 million in cash and marketable securities, compared to $27.2 million at the end of the first half of 2011 and with $502.5 million of debt outstanding at the end of the first half of 2012, compared to $768.8 million at the end of the first half of 2011. The $413.0 million decrease in our net debt position over the last twelve months primarily reflected: (i) the receipt of $470.7 million primarily from sales transactions (including $20.0 million received from JCPenney, which is refundable under certain circumstances, with the earliest possible repayment in the fourth quarter of 2012); (ii) net proceeds of $160.6 million from the issuance of the Additional Notes; (iii) the repurchase of 168.6 million euro aggregate principal amount of our Euro Notes; (iv) the conversion of $58.4 million of our Convertible Notes into 17.0 million shares of our common stock; and (v) the funding of $62.3 million of capital and in-store shop expenditures over the last 12 months. We also generated $80.9 million in cash from continuing operations over the past 12 months.
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