American Apparel, Inc. Reports Third Quarter 2012 Financial Results Business Wire LOS ANGELES -- November 13, 2012 American Apparel, Inc. (NYSE MKT: APP), a vertically integrated manufacturer, distributor, and retailer of branded fashion-basic apparel, announced financial results for its third quarter ended September 30, 2012. Dov Charney, Chairman and CEO of American Apparel, Inc., stated, “We are pleased with our third quarter results that again show solid growth and continuing momentum in all business segments and major geographies. Significant sales growth allowed us to more than double our EBITDA performance to $13 million for the third quarter of 2012 from $6 million for the third quarter of 2011. Year-to-date our EBITDA performance has improved to $19 million from $5 million for the corresponding period last year (See Graph 1). EBITDA performance for the twelve months ended September 30, 2012 was $28 million or double that reported for the full year in 2011 (See Graph 2). As we improve store productivity and aggressively grow our online and wholesale businesses we expect operating expense leverage will allow us to continue to significantly grow EBITDA performance. "We continue to make meaningful progress in improving inventory efficiency with a 5% reduction in unit inventory in this quarter. This brings our total unit reduction to over 18% since we began this undertaking in 2011. Although our aggressive approach to reducing inventories has caused a modest amount of margin erosion, improving inventory turns by driving unit sales will improve inventory efficiency, lower carrying costs and reduce working capital requirements over the long-term. These efforts, together with other operating performance improvements will assist in our near-term refinancing efforts." So far, through November 12, 2012, comparable sales for the Company's retail stores have increased 13%. Operating Results Comparing the third quarter 2012 to the corresponding period last year, net sales increased 15% to $162.2 million on a 20% increase in comparable store sales in the retail business, a 6% increase in net sales in the wholesale business and a 1% increase in the average number of stores. The following delineates the components of the net sales increase for the quarterly period ended September 30, 2012 as compared to the corresponding quarter of the prior year: 2012 2011 Third Third Quarter Quarter Comparable Store Sales 20 % 2 % Comparable Online 21 % 11 % Sales Comparable Retail & 20 % 3 % Online Wholesale Net Sales 6 % 9 % Gross profit of $85.2 million for the third quarter of 2012 increased 14% from $75.0 million reported for the third quarter of 2011. Holding foreign currency rates constant to those last year, gross profit in the 2012 third quarter would have been $87.1 million or 16% higher than reported in the 2011 third quarter. Gross margin rate for the 2012 third quarter decreased to 52.5% from 53.2% for the 2011 third quarter. The gross margin reduction was due to planned promotional activities, the effect of “warehouse-type” clearance sales as a part of our overall inventory reduction strategy and the negative impact of the strengthening US dollar on margins from our international segment. Partially offsetting these impacts was a shift in mix to higher margin retail sales in the 2012 third quarter, lower inventory shrink reserves reflecting the benefits of our RFID implementation and lower costs of production in our manufacturing operations. As a percent of revenue, operating expenses for the quarter decreased 540 basis points to 49.7% from 55.1% for the third quarter 2011. Included in operating expense in the 2012 third quarter was $5.5 million in depreciation expense versus a combined $6.9 million in depreciation expense and store impairment charges in the third quarter of 2011. After excluding the effects of store impairment and depreciation charges between the quarterly periods, there was a 390 basis point decrease in operating expenses as a percent of net revenues. The decrease was primarily due to a reduction in corporate overhead expenses and the fixed cost leverage as a result of increased sales. Other expense for the third quarter of 2012 was $23.1 million versus $4.4 million in the comparable quarter last year. The $18.7 million increase was primarily due to the increase in the fair market value of our outstanding warrants at September 30, 2012 as compared with September 30, 2011, resulting in a net change in unrealized loss of $19.4 million. As our warrant liability is deemed to be a derivative financial instrument it is marked-to-market based primarily upon the change in our stock price between accounting periods. The warrant liability will not result in a future cash outflow by the Company and classified as equity when the warrants are exercised. Additionally, we incurred higher interest expense due to a higher average balance of debt outstanding and higher interest rates related to the Crystal Credit Agreement. The third quarter 2012 net loss included an income tax provision of $0.5 million versus $0.2 million in the 2011 third quarter. In accordance with U.S. GAAP, we discontinued recognizing potential tax benefits associated with current operating losses. As of September 30, 2012, we had available federal net operating carry forwards of approximately $73.3 million and unused federal and state tax credits of $16.2 million. Net loss for the third quarter of 2012 was $19.0 million, or $0.18 per common share, compared to net loss for the third quarter of 2011 of $7.2 million or $0.07 per common share. The 2012 third quarter net loss and net loss per common share includes $13.3 million of expense ($0.13 per common share) associated with a non-cash charge for an increase in the fair value of outstanding warrants. The 2011 third quarter includes an income statement credit of $6.1 million ($0.06 per common share) for a non-cash reduction in the fair value of the same warrant liability. Weighted average shares outstanding were 106.2 million in the third quarter of 2012 versus 102.3 million for the third quarter of 2011. As of November 1, 2012 there were approximately 106.4 million shares outstanding. For a reconciliation of consolidated net loss and consolidated adjusted EBITDA, a non-GAAP financial measure, please refer to the Table A attached to this press release. 2012 Outlook Update For 2012, the Company is updating its adjusted EBITDA outlook to $36 to $40 million from the prior estimate of $36 million to $44 million. The adjustment to our estimate reflects in part a reduction to the business lost as a result of Hurricane Sandy, and additional investments in advertising and store technologies. This outlook assumes net sales of $604 million to $610 million and a gross profit margin of 53% to 54%. Capital expenditures are estimated at approximately $17 million for 2012. About American Apparel American Apparel is a vertically integrated manufacturer, distributor and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of October 31, 2012 American Apparel had approximately 10,000 employees and operated 251 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Australia, Japan, South Korea and China. American Apparel also operates a global e-commerce site that serves over 60 countries worldwide at http://www.americanapparel.net. In addition, American Apparel also operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. Safe Harbor Statement This press release, and other statements that the Company may make, may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and include statements regarding, among other things, the Company's future financial condition, results of operations and plans and the Company's prospects and strategies for future growth and cost savings. Such forward-looking statements are based upon the current beliefs and expectations of American Apparel's management, but are subject to risks and uncertainties, which could cause actual results and/or the timing of events to differ materially from those set forth in the forward-looking statements, including, among others: the ability to generate sufficient liquidity for operations and debt service; changes in the level of consumer spending or preferences or demand for the Company's products; increasing competition, both in the U.S. and internationally; the evolving nature of the Company's business; the Company's ability to hire and retain key personnel and the Company's relationship with its employees; suitable store locations and the Company's ability to attract customers to its stores; the availability of store locations at appropriate terms and the Company's ability to identify and negotiate new store locations effectively and to open new stores and expand internationally; effectively carrying out and managing the Company's strategy, including growth and expansion both in the U.S. and internationally; disruptions in the global financial markets; failure to maintain the value and image of the Company's brand and protect its intellectual property rights; declines in comparable store sales and wholesale revenues; financial nonperformance by the Company's wholesale customers; the adoption of new accounting pronouncements or changes in interpretations of accounting principles; seasonality of the business; consequences of the Company's significant indebtedness, including the Company's relationships with its lenders and the Company's ability to comply with its debt agreements, including the risk of acceleration of borrowings thereunder as a result of noncompliance; the Company's ability to generate cash flow to service its debt; the Company's liquidity and losses from operations; the Company's ability to develop and implement plans to improve its operations and financial position; costs of materials and labor, including increases in the price of yarn and the cost of certain related fabrics; the Company's ability to pass on the added cost of raw materials to its wholesale and retail customers; the Company's ability to improve manufacturing efficiency at its production facilities; the Company's ability to effectively manage inventory and inventory reserves; location of the Company's facilities in the same geographic area; manufacturing, supply or distribution difficulties or disruptions; risks of financial nonperformance by customers; investigations, enforcement actions and litigation, including exposure from which could exceed expectations; compliance with or changes in U.S. and foreign government laws and regulations, legislation and regulatory environments, including environmental, immigration, labor and occupational health and safety laws and regulations; costs as a result of operating as a public company; material weaknesses in internal controls; interest rate and foreign currency risks; loss of U.S. import protections or changes in duties, tariffs and quotas and other risks associated with international business including disruption of markets and foreign supply sources and changes in import and export laws; technological changes in manufacturing, wholesaling, or retailing; the Company's ability to upgrade its information technology infrastructure and other risks associated with the systems that are used to operate the Company's online retail operations and manage the Company's other operations; adverse changes in its credit ratings and any related impact on financing costs and structure; general economic and industry conditions, including U.S. and worldwide economic conditions; disruptions due to severe weather or climate change; and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Reports on Form 10-K for the year ended December 31, 2011. The Company's filings with the SEC are available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. AMERICAN APPAREL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts and shares in thousands, except per share amounts) (unaudited) Three Months Ended September Nine Months Ended 30, September 30, 2012 2011 2012 2011 Net sales $ 162,160 $ 140,889 $ 444,282 $ 389,760 Cost of sales 76,960 65,898 209,990 178,705 Gross profit 85,200 74,991 234,292 211,055 Operating 80,583 77,619 240,179 231,997 expenses Income (loss) 4,617 (2,628 ) (5,887 ) (20,942 ) from operations Interest 10,454 8,832 30,274 23,715 expense Foreign currency (685 ) 1,855 141 780 transaction (gain) loss Unrealized loss (gain) on change in fair 13,312 (6,101 ) 15,340 (21,201 ) value of warrants and purchase rights (Gain) loss on extinguishment — — (11,588 ) 3,114 of debt Other expense 36 (186 ) 188 (240 ) (income) Loss before (18,500 ) (7,028 ) (40,242 ) (27,110 ) income taxes Income tax 512 166 1,933 1,042 provision Net loss $ (19,012 ) $ (7,194 ) $ (42,175 ) $ (28,152 ) Basic and diluted loss $ (0.18 ) $ (0.07 ) $ (0.40 ) $ (0.32 ) per share Weighted average basic and diluted 106,248 102,279 105,960 88,614 shares outstanding AMERICAN APPAREL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (unaudited) September 30, 2012 December 31, 2011 ASSETS CURRENT ASSETS Cash $ 7,186 $ 10,293 Trade accounts receivable, net of 25,951 20,939 allowances Prepaid expenses and other 10,800 7,631 current assets Inventories, net 180,879 185,764 Restricted cash 5,928 — Income taxes receivable and 1,475 5,955 prepaid income taxes Deferred income taxes, net of 639 148 valuation allowance Total current assets 232,858 230,730 PROPERTY AND EQUIPMENT, net 65,959 67,438 DEFERRED INCOME TAXES, net of 1,559 1,529 valuation allowance OTHER ASSETS, net 33,269 25,024 TOTAL ASSETS $ 333,645 $ 324,721 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Cash overdraft $ 2,625 $ 1,921 Revolving credit facilities and 71,586 50,375 current portion of long-term debt Accounts payable 37,247 33,920 Accrued expenses and other 38,750 43,725 current liabilities Fair value of warrant liability 28,455 9,633 Income taxes payable 389 2,445 Deferred income tax liability, 697 150 current Current portion of capital lease 1,017 1,181 obligations Total current liabilities 180,766 143,350 LONG-TERM DEBT, net of 103,964 97,142 unamortized discount CAPITAL LEASE OBLIGATIONS, net of 1,083 1,726 current portion DEFERRED TAX LIABILITY 108 96 DEFERRED RENT, net of current 21,597 22,231 portion OTHER LONG-TERM LIABILITIES 12,250 12,046 TOTAL LIABILITIES 319,768 276,591 STOCKHOLDERS' EQUITY Common stock 11 11 Additional paid-in capital 173,787 166,486 Accumulated other comprehensive (2,735 ) (3,356 ) loss Accumulated deficit (155,029 ) (112,854 ) Less: Treasury stock (2,157 ) (2,157 ) TOTAL STOCKHOLDERS' EQUITY 13,877 48,130 TOTAL LIABILITIES AND $ 333,645 $ 324,721 STOCKHOLDERS' EQUITY AMERICAN APPAREL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (unaudited) Nine Months Ended September 30, 2012 2011 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 439,634 $ 387,780 Cash paid to suppliers, employees and (431,915 ) (392,684 ) others Income taxes refunded (paid) 646 (1,413 ) Interest paid (6,635 ) (3,959 ) Other (160 ) 323 Net cash provided by (used in) operating 1,570 (9,953 ) activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (14,257 ) (7,284 ) Proceeds from sale of fixed assets 70 72 Restricted cash (5,926 ) — Net cash used in investing activities (20,113 ) (7,212 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash overdraft 704 (2,484 ) Repayments of expired revolving credit (48,324 ) (1,309 ) facilities, net Borrowings under current revolving credit 39,337 — facilities, net Borrowings (repayments) of term loans and 30,042 (10 ) notes payable Payment of debt issuance costs (4,965 ) (1,690 ) Net proceeds from issuance of common stock — 21,710 and purchase rights Proceeds from equipment lease financing — 3,100 Repayment of capital lease obligations (810 ) (996 ) Net cash provided by financing activities 15,984 18,321 EFFECT OF FOREIGN EXCHANGE RATE ON CASH (548 ) (844 ) NET (DECREASE) INCREASE IN CASH (3,107 ) 312 CASH, beginning of period 10,293 7,656 CASH, end of period $ 7,186 $ 7,968 AMERICAN APPAREL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Amounts in thousands) (unaudited) Nine Months Ended September 30, 2012 2011 RECONCILIATION OF NET LOSS TO NET CASH USED IN OPERATING ACTIVITIES Net loss $ (42,175 ) $ (28,152 ) Depreciation and amortization of property 17,040 19,109 and equipment, and other assets Retail store impairment 129 2,436 Loss on disposal of property and equipment 28 83 Share-based compensation expense 7,333 4,538 Unrealized loss (gain) on change in fair 15,340 (21,201 ) value of warrants and purchase rights Amortization of debt discount and deferred 7,655 6,120 financing costs (Gain) loss on extinguishment of debt (11,588 ) 3,114 Accrued interest paid-in-kind 15,984 13,636 Foreign currency transaction loss 141 780 Allowance for inventory shrinkage and (339 ) 783 obsolescence Bad debt expense 73 503 Deferred income taxes 32 793 Deferred rent (649 ) (1,862 ) Changes in cash due to changes in operating assets and liabilities: Trade accounts receivables (4,721 ) (2,483 ) Inventories 6,238 (8,651 ) Prepaid expenses and other current assets (3,343 ) (174 ) Other assets (5,756 ) (2,880 ) Accounts payable 2,471 1,492 Accrued expenses and other liabilities (4,750 ) 3,227 Income taxes receivable/payable 2,427 (1,164 ) Net cash used in operating activities $ 1,570 $ (9,953 ) NON-CASH INVESTING AND FINANCING ACTIVITIES Property and equipment acquired and $ 98 $ 1,488 included in accounts payable Reclassification of Lion warrants from — 11,339 equity to debt Conversion of debt to equity — 4,688 Issuance of warrants and purchase rights — 6,387 at fair value Exercise of purchase rights — 2,857 AMERICAN APPAREL, INC. AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (Amounts in thousands) (unaudited) The following table presents key financial information for American Apparel's business segments before unallocated corporate expenses: Three Months Ended September 30, 2012 U.S. U.S. Retail Canada International Consolidated Wholesale Net sales to external $ 46,847 $ 52,714 $ 16,717 $ 45,882 $ 162,160 customers Gross profit 12,873 34,361 10,166 27,800 85,200 Income from segment 5,811 3,116 721 4,192 13,840 operations Depreciation and 1,446 2,747 394 951 5,538 amortization Capital 3,300 2,136 328 894 6,658 expenditures Deferred rent expense 297 (349 ) (58 ) (122 ) (232 ) (benefit) Three Months Ended September 30, 2011 U.S. U.S. Retail Canada International Consolidated Wholesale Net sales to external $ 42,405 $ 43,104 $ 15,264 $ 40,116 $ 140,889 customers Gross profit 8,897 29,607 9,432 27,055 74,991 Income (loss) from 4,465 (622 ) (527 ) 5,339 8,655 segment operations Depreciation and 1,833 2,599 404 1,290 6,126 amortization Capital 838 1,169 77 473 2,557 expenditures Retail store — 119 640 25 784 impairment Deferred rent expense 59 (294 ) (30 ) (219 ) (484 ) (benefit) Nine Months Ended September 30, 2012 U.S. U.S. Retail Canada International Consolidated Wholesale Net sales to external $ 131,612 $ 143,444 $ 45,096 $ 124,130 $ 444,282 customers Gross profit 36,582 93,977 26,627 77,106 234,292 Income (loss) from 18,324 449 (1,888 ) 8,339 25,224 segment operations Depreciation and 4,795 8,074 1,107 3,064 17,040 amortization Capital 6,502 3,990 1,144 2,621 14,257 expenditures Retail store — — 129 — 129 impairment Deferred rent expense 393 (509 ) (156 ) (377 ) (649 ) (benefit) Nine Months Ended September 30, 2011 U.S. U.S. Retail Canada International Consolidated Wholesale Net sales to external $ 115,193 $ 120,483 $ 42,256 $ 111,828 $ 389,760 customers Gross profit 30,518 82,031 25,463 73,043 211,055 Income (loss) from 16,002 (7,126 ) (1,954 ) 7,618 14,540 segment operations Depreciation and 6,015 7,887 1,246 3,961 19,109 amortization Capital 2,179 3,848 209 1,048 7,284 expenditures Retail store — 296 642 1,498 2,436 impairment Deferred rent expense 211 (1,341 ) (78 ) (654 ) (1,862 ) (benefit) AMERICAN APPAREL, INC. AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (continued) (Amounts in thousands) (unaudited) Three Months Ended September Nine Months Ended 30, September 30, Reconciliation to Loss before 2012 2011 2012 2011 Income Taxes Income from segment $ 13,840 $ 8,655 $ 25,224 $ 14,540 operations Unallocated corporate (9,223 ) (11,283 ) (31,111 ) (35,482 ) expenses Interest (10,454 ) (8,832 ) (30,274 ) (23,715 ) expense Foreign currency 685 (1,855 ) (141 ) (780 ) transaction gain (loss) Unrealized (loss) gain on (13,312 ) 6,101 (15,340 ) 21,201 warrants and purchase rights Gain (loss) on extinguishment — — 11,588 (3,114 ) of debt Other (expense) (36 ) 186 (188 ) 240 income Consolidated loss before $ (18,500 ) $ (7,028 ) $ (40,242 ) $ (27,110 ) income taxes Three Months Ended September Nine Months Ended 30, September 30, Net sales to external 2012 2011 2012 2011 customers U.S. Wholesale Wholesale $ 39,862 $ 36,780 $ 110,380 $ 98,840 Online consumer 6,985 5,625 21,232 16,353 Total $ 46,847 $ 42,405 $ 131,612 $ 115,193 U.S. Retail $ 52,714 $ 43,104 $ 143,444 $ 120,483 Canada Wholesale $ 3,215 $ 2,958 $ 9,449 $ 8,711 Retail 13,086 11,944 34,181 32,246 Online consumer 416 362 1,466 1,299 Total $ 16,717 $ 15,264 $ 45,096 $ 42,256 International Wholesale $ 2,113 $ 2,825 $ 7,183 $ 7,479 Retail 39,256 33,244 102,859 92,059 Online consumer 4,513 4,047 14,088 12,290 Total $ 45,882 $ 40,116 $ 124,130 $ 111,828 Consolidated Wholesale $ 45,190 $ 42,563 $ 127,012 $ 115,030 Retail 105,056 88,292 280,484 244,788 Online consumer 11,914 10,034 36,786 29,942 Total $ 162,160 $ 140,889 $ 444,282 $ 389,760 Table A American Apparel, Inc. and Subsidiaries Calculation and Reconciliation of Consolidated Adjusted EBITDA (Amounts in thousands) (unaudited) In addition to its GAAP results, American Apparel considers non-GAAP measures of its performance. EBITDA, as defined below, is an important supplemental financial measure of American Apparel's performance that is not required by, or presented in accordance with, GAAP. EBITDA represents net income (loss) before income taxes, interest and other expense (income), and depreciation and amortization. American Apparel's management uses EBITDA as a financial measure to assess the ability of its assets to generate cash sufficient to pay interest on its indebtedness, meet capital expenditure and working capital requirements, pay taxes, and otherwise meet its obligations as they become due. American Apparel's management believes that the presentation of EBITDA provides useful information regarding American Apparel's results of operations because they assist in analyzing and benchmarking the performance and value of American Apparel's business. American Apparel believes that EBITDA is useful to stockholders as a measure of comparative operating performance, as it is less susceptible to variances in actual performance resulting from depreciation and amortization and more reflective of changes in pricing decisions, cost controls and other factors that affect operating performance. EBITDA also is used by American Apparel's management for multiple purposes, including: *to calculate and support various coverage ratios with American Apparel's lenders *to allow lenders to calculate total proceeds they are willing to loan to American Apparel based on its relative strength compared to its competitors *to more accurately compare American Apparel's operating performance from period to period and company to company by eliminating differences caused by variations in capital structures (which affect relative interest expense), tax positions and amortization of intangibles. In addition, EBITDA is an important valuation tool used by potential investors when assessing the relative performance of American Apparel in comparison to other companies in the same industry. Although American Apparel uses EBITDA as a financial measure to assess the performance of its business, there are material limitations to using a measure such as EBITDA, including the difficulty associated with using it as the sole measure to compare the results of one company to another and the inability to analyze significant items that directly affect a company's net income (loss) or operating income because it does not include certain material costs, such as interest and taxes, necessary to operate its business. In addition, American Apparel's calculation of EBITDA may not be consistent with similarly titled measures of other companies and should be viewed in conjunction with measures that are computed in accordance with GAAP. American Apparel's management compensates for these limitations in considering EBITDA in conjunction with its analysis of other GAAP financial measures, such as net income (loss). Table A (continued) American Apparel, Inc. and Subsidiaries Calculation and Reconciliation of Consolidated Adjusted EBITDA (Amounts in thousands) (unaudited) Three Months Ended September Nine Months Ended 30, September 30, 2012 2011 2012 2011 Net loss $ (19,012 ) $ (7,194 ) $ (42,175 ) $ (28,152 ) Income tax 512 166 1,933 1,042 provision Interest and other 23,802 2,545 34,214 5,388 expense, net Depreciation and 5,538 6,126 17,040 19,109 amortization Foreign currency (685 ) 1,855 141 780 (gain) loss Retail store — 784 129 2,436 impairment Share-based compensation 2,949 2,093 7,333 4,538 expense Other 210 206 — Consolidated Adjusted $ 13,314 $ 6,375 $ 18,821 $ 5,141 EBITDA Year Ended December 31, 2008 2009 2010 2011 TTM 2012 ^(1) Net Loss $ 14,112 $ 1,112 $ (86,315 ) $ (39,314 ) $ (53,337 ) Income tax 7,255 3,816 12,164 1,721 2,612 provision Interest and other 14,076 22,407 24,784 12,621 41,447 expense, net Depreciation and 20,844 28,151 28,130 24,980 22,911 amortization Foreign currency 621 (2,920 ) (686 ) 1,679 1,040 (gain) loss Retail store 644 3,343 8,597 4,267 1,960 impairment Share-based compensation 12,625 525 3,719 6,814 9,609 expense Other — — — 1,696 1,902 Consolidated Adjusted $ 70,177 $ 56,434 $ (9,607 ) $ 14,464 $ 28,144 EBITDA Trailing twelve months September 30, 2012 is calculated as (1) year-ended December 31, 2011 plus nine months ended September 30, 2012 minus nine months ended September 30, 2011. The following table reflects the forecasted guidance range for 2012 for adjusted EBITDA and reconciles such adjusted EBITDA guidance to Net Loss: Twelve Months Ended December 31, 2012 Low End Range High End Range Net Loss $ (43,900 ) $ (39,900 ) Income tax provision 2,300 2,300 Interest and other expense, net 44,700 44,700 Depreciation and amortization 22,600 22,600 Foreign currency (gain) loss 200 200 Retail store impairment 100 100 Share-based compensation expense 9,600 9,600 Other 400 400 Consolidated Adjusted EBITDA $ 36,000 $ 40,000 Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20121113007403/en/ Multimedia Available:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50477131&lang=en Contact: American Apparel, Inc. John J. Luttrell Chief Financial Officer (213) 488-0226 or ICR, Inc. John Rouleau Managing Director (203) 682-8342 John.Rouleau@icrinc.com
American Apparel, Inc. Reports Third Quarter 2012 Financial Results
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