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Maidenform Brands, Inc. Reports 2012 Results and Provides Guidance for 2013



 Maidenform Brands, Inc. Reports 2012 Results and Provides Guidance for 2013

PR Newswire

ISELIN, N.J., March 6, 2013

ISELIN, N.J., March 6, 2013 /PRNewswire/ -- Maidenform Brands, Inc. (NYSE:
MFB), a global branded marketer of intimate apparel, today reported fourth
quarter 2012 net sales of $135.1 million, an increase of 8.5% over the fourth
quarter of 2011.  Full year 2012 sales totaled $600.3 million, a decrease of
1.0% when compared to fiscal 2011.   Reported EPS was $0.24 for the fourth
quarter of 2012 compared to a reported loss per share of $(0.13) for the
fourth quarter of 2011.  For the full year, reported EPS was $1.43 for 2012
compared to $1.42 for 2011.

Reported 2012 results included $0.08 of EPS from a non-recurring state income
tax benefit and a charge of $(0.06) relating to exiting the Maidenform's
Charmed brand and a workforce reduction (see Exhibit 2 to this press release
for further details).  2012 EPS excluding these items was $0.22 for the fourth
quarter and $1.41 for the full year.

Reported 2011 EPS includes charges in the fourth quarter and full year of
$0.13 per share and $0.31 per share, respectively, relating to a litigation
settlement, discontinuation of a product line and a workforce reduction (see
Exhibit 2 to this press release for further details).  2011 EPS excluding
these items was $0.00 for the fourth quarter and $1.73 for the full year.

"We met our fourth quarter expectations in sales and earnings, but 2012 was a
disappointing year overall, with weak category, customer and consumer trends
in our key markets, and increased shapewear competition in department and
chain stores," stated Maurice Reznik, Chief Executive Officer.  

"2013 will be a transition year for us as we take additional and more
substantial steps to invest in our iconic brand, processes and infrastructure.
Additionally, we will be pruning underperforming businesses and slow moving
products, while improving gross margins and carefully investing in
infrastructure.  

The goal of these actions is to return Maidenform to sustained long-term
growth with top line increases in the mid-single digits and EPS growth of 10%
or better starting in 2014.

While we focus on these actions, we will continue to introduce new and
innovative products.  In 2013, we are excited to expand upon our Comfort
Devotion collection and, in the fourth quarter, launch a new full figure
collection at department and chain stores," concluded Mr. Reznik.

Financial Results for Fourth Quarter 2012 versus Fourth Quarter 2011

Net sales for the fourth quarter of 2012 increased $10.6 million, or 8.5%, to
$135.1 million.  Wholesale segment net sales for the fourth quarter of 2012
increased $11.0 million, or 10.0%, to $120.8 million. Retail segment net sales
decreased $0.4 million, or 2.7%, to $14.3 million.  

The Company's net sales performance by channel of distribution is highlighted
in Exhibit 1 to this press release.

Wholesale Segment

Department Stores and National Chain Stores

Net sales for the department stores and national chain stores channel
increased $2.0 million, or 3.9%, to $53.9 million for the fourth quarter of
2012.  This increase was led by growth in the bra and pants categories, which
included the introduction of the Company's Comfort Devotion collection that
shipped for the first time in the fourth quarter of 2012.  Partially
offsetting these increases were sales declines in the shapewear category from
increased competition along with a sales decline at a mid-tier department
store as it transitions to a new pricing and merchandising strategy.    

Mass Merchants

Mass merchant channel net sales increased $2.4 million, or 6.6%, to $38.7
million for the fourth quarter of 2012, resulting from increased shipments to
most customers that were partially offset by lower sales to a warehouse
club.   

Other

Net sales in the other channel increased $6.6 million, or 30.6%, to $28.2
million for the fourth quarter of 2012 from increased program sales to
off-price retailers that more than offset sales declines to a private label
customer.      

Total international net sales, which are included in the wholesale segment,
decreased $1.3 million, or 9.1%, to $13.0 million.  This sales decline was
driven by Canada, Germany, and the Benelux countries, which more than offset
sales increases in smaller markets such as Brazil.

Retail Segment

Total retail segment net sales decreased $0.4 million, or 2.7%, to $14.3
million.  Same store sales, defined as outlet stores that have been open for
more than one year, decreased 5.9% due to reduced customer traffic. 
  Internet sales increased $0.4 million, or 23.5%, to $2.1 million for the
fourth quarter of 2012.  The retail segment operated 77 outlet stores as of
the end of fiscal 2012 and 74 outlet stores as of the end of fiscal 2011.   

Consolidated gross profit increased $11.1 million, or 38.0%, to $40.3 million
for the fourth quarter of 2012.  As a percentage of net sales, consolidated
gross margins were 29.8% for the fourth quarter of 2012 versus 23.5% for the
fourth quarter of 2011.  The improvement in gross margin over the prior year
was a result of the discontinuation of a product line that did not repeat in
the current year.  Additionally, the Company had lower inventory related
clearing costs and lower liquidation sales to off-price retailers.  Included
in the fourth quarter 2012 results are markdowns associated with exiting the
Maidenform's Charmed brand.          

Consolidated selling, general and administrative expenses (SG&A) increased
$0.5 million, or 1.5%, to $34.6 million for the fourth quarter of 2012.  As a
percentage of net sales, SG&A decreased to 25.6% for the fourth quarter of
2012 compared to 27.4% for the fourth quarter of 2011. The results in the
fourth quarter of 2012 and 2011 include severance expense of $1.5 million and
$1.2 million, respectively, related to corporate workforce reductions and, in
2012, store personnel reductions due to planned store closings of 10 stores in
the first quarter of 2013.  

Net interest expense for the fourth quarter of 2012 was unchanged at $0.3
million compared to the fourth quarter of 2011.         

The Company's effective income tax rate for the fourth quarter of 2012 was
(0.3)% compared to 40.5% for the fourth quarter of 2011.  The lower effective
income tax rate in the fourth quarter of 2012 was primarily due to a
non-recurring state income tax benefit.      

Net income (loss) for the fourth quarter of 2012 and 2011 was $5.5 million and
$(3.1) million, respectively, and EPS was $0.24 and loss per share of $(0.13),
respectively.  Excluding the items mentioned in paragraphs 2 and 3 above and
detailed in Exhibit 2 to this press release, adjusted fourth quarter EPS was
$0.22 in 2012 and $0.00 in 2011.         

Financial Results for Fiscal 2012 versus Fiscal 2011  

Net sales for 2012 decreased $6.0 million, or 1.0%, to $600.3 million. 
Wholesale segment net sales for 2012 decreased $7.3 million, or 1.3%, to
$538.5 million. 

Department stores and national chain stores net sales increased $1.9 million,
or 0.8%, to $247.1 million for 2012.  This increase was led by growth in the
bra and pant categories, which included the introduction of the Comfort
Devotion collection and a private label brand that shipped for the first time
during 2012.   Partially offsetting this increase was an assortment expansion
in 2011 at one of the Company's chain store customers that did not repeat in
2012, a sales decline at a mid-tier department store customer as it
transitions to a new pricing and merchandising strategy and sales declines in
the shapewear category from increased competition.

The Company's mass merchant channel net sales decreased $5.5 million, or 2.8%,
to $190.7 million from varying results with our mass merchant customers.  Some
of the factors that drove this decrease were decreased doors at retail and
program sales that did not repeat in 2012.  Partially offsetting this decrease
was a strong performance in full figure and shapewear sales at one of our mass
customers.

The other channel decreased $3.7 million, or 3.5%, to $100.7 million due to
lower sales to a specialty retailer that was partially offset by increased
program sales to off-price retailers. 

Total international net sales increased $2.5 million, or 4.3%, to $60.9
million, driven by growth in major markets, such as Canada, the United Kingdom
and Mexico.  Partially offsetting these increases were sales decreases in
other major markets, such as the Benelux countries, Sweden and Germany,
including the impact of unfavorable currency exchange rates on sales. 

Retail segment net sales for 2012 increased $1.3 million, or 2.1%, to $61.8
million.  Same store sales for Maidenform's retail outlet stores decreased
1.2%.  Internet sales increased $2.3 million, or 34.3%, to $9.0 million,
resulting primarily from promotional events that more than offset the sales
declines at our stores.  The Company's net sales performance by channel of
distribution is highlighted in Exhibit 1 to this press release.

Consolidated gross margins for 2012 were 30.9% versus 31.6% for the same
period in 2011.  Changes in channel and product mix favorably impacted gross
margin but were more than offset by unfavorable off-price retailer activity to
drive inventory productivity, additional promotional activities and inventory
related clearing costs.  Included in 2012 results are markdowns associated
with exiting the Maidenform's Charmed brand.  Included in the 2011 results was
the discontinuation of a product line that did not repeat in the current
year.   

Consolidated SG&A increased $1.1 million, or 0.8%, to $133.2 million for
2012.  As a percentage of net sales, SG&A increased to 22.2% for 2012 compared
to 21.8% for the same period of 2011.   In fiscal 2012 and 2011, the Company
recorded severance expense of $1.5 million and $1.2 million, respectively,
related to workforce reductions mentioned above.  The remaining increase was
due to increased payroll and related benefits, including medical benefits, and
retail operating expenses. Partially offsetting these increases was a
reduction in incentive compensation, professional fees and the benefit of
favorable currency exchange rates.          

The Company's effective income tax rate for fiscal 2012 was 34.7% compared to
35.6% for the same period of 2011. The lower effective rate for 2012 is
primarily from a non-recurring state income tax benefit recorded in the fourth
quarter of 2012. The effective rate for 2011 included discrete items recorded
during the year such as the utilization of research and development credits
and non-recurring state income tax benefits, including the impact of the New
Jersey tax law change enacted in the second quarter of 2011.

Net income for fiscal 2012 and 2011 was $33.5 million and $33.2 million,
respectively, and EPS was $1.43 and $1.42, respectively.  Excluding the items
mentioned in paragraphs 2 and 3 above and detailed in Exhibit 2 to this press
release, EPS for fiscal 2012 was $1.41 and for fiscal 2011 EPS was $1.73.

Total cash and cash equivalents as of December 29, 2012 were $83.7 million
compared to $68.0 million as of December 31, 2011.  The Company's outstanding
debt was $68.2 million as of December 29, 2012 versus $69.1 million as of
December 31, 2011.  During fiscal 2012, we returned approximately $6.5 million
to shareholders through share repurchases.        

Financial Performance Guidance for 2013: 

2013 First Quarter:

  o The Company's first quarter outlook includes a sales decline of
    approximately $20 million compared to 2012, as a result of non-recurring
    warehouse club and private label business.  During the quarter, the
    Company also expects to increase promotional spending to clear
    unproductive inventory.
  o Accordingly, total Company net sales are estimated to decline in the teens
    percentage range versus the first quarter of 2012.
  o The Company projects a first quarter loss per share in a range of $0.05 to
    $0.10.

2013 Full Year Outlook:

  o Total Company net sales in a range of $575 million to $595 million.
  o Full year EPS in a range of $1.20 to $1.30 per share.

Conference Call Information

Maidenform will host a conference call and webcast on Wednesday, March 6, 2013
at 8:30 am ET to discuss its fourth quarter and full year 2012 results, in
addition to providing an update on its business.  The conference call
telephone number is (866) 578-5784 and the passcode is "Maidenform."  The
conference call will be simultaneously webcasted and can be accessed via the
investor relations page of Maidenform's website at www.maidenformbrands.com. 
A dial-in replay of this event will be available through March 20, 2013 and
will be hosted on the Company's website for a limited time.  The replay
telephone numbers are (888) 286-8010 or (617) 801-6888.  The replay passcode
is 20624257.

About Maidenform Brands, Inc.

Maidenform Brands, Inc. is a global intimate apparel company with a portfolio
of established, well-known brands, top-selling products and an iconic
heritage. Maidenform designs, sources and markets an extensive range of
intimate apparel products, including bras, panties and shapewear.  During its
91-year history, Maidenform has built strong equity for its brands and
established a platform for growth through a combination of innovative,
first-to-market designs and creative advertising campaigns focused on
increasing brand awareness with generations of women.  Maidenform sells its
products under some of the most recognized brands in the intimate apparel
industry, including Maidenform^®, Control It!^®, Fat Free Dressing^®,
Flexees^®, Lilyette^®, Bodymates^®, Inspirations^®, Self Expressions^® and
Sweet Nothings^®. Maidenform products are currently distributed in
approximately 63 countries and territories outside the United States.

Forward Looking Statement: This press release contains forward-looking
statements relating to future events and the Company's future performance
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, including,
without limitation, statements regarding our expectations, beliefs, intentions
or future strategies that are signified by the words "anticipates,"
"believes," "estimates," "expects," "intends," "plans," "potential,"
"predicts," "projects" or similar words or phrases, although not all
forward-looking statements contain such identifying words.  All
forward-looking statements included in this press release are based on
information available to the Company on the date hereof.  It is routine for
the Company's internal projections and expectations to change as the year or
each quarter in the year progress, and therefore it should be clearly
understood that the internal projections and beliefs upon which the Company
bases its expectations may change prior to the end of each quarter or the
year.  Although these expectations may change, we assume no obligation to
update or revise publicly any forward-looking statements whether as a result
of new information, future events or otherwise. Actual events or results may
differ materially from those contained in the projections or forward-looking
statements. 

The following factors, among others, could cause the Company's actual results
to differ materially from those expressed in any forward-looking statements:
the worldwide apparel industry may continue to be harmed by the current global
economic downturn, the conditions in the financial and credit markets may
affect the availability and cost of our funding, the Company's growth cannot
be assured and any growth may be unprofitable; potential fluctuations in our
results of operations or rate of growth; our dependence on a limited number of
customers; the Company has larger competitors with greater resources; retail
trends in the intimate apparel industry, including consolidation and continued
growth in the development of private brands, resulting in downward pressure on
prices, reduced floor space and other harmful changes; failure to anticipate,
identify or promptly react to changing trends, styles, or consumer
preferences; the Company's credit agreement could limit growth opportunities;
external events that disrupt the Company's supply chain, result in increased
cost of goods or an inability to deliver its products; events which result in
difficulty in procuring or producing products on a cost-effective basis;
disputes with third parties for infringement or misappropriation of their
proprietary rights; increases in the prices of raw materials; changing
international trade regulation, including as it relates to the imposition or
elimination of quotas on imports of textiles and apparel; foreign currency
exposure; and the sufficiency of cash to fund operations and capital
expenditures.

This list is intended to identify only certain of the principal factors that
could cause actual results to differ from those discussed in the
forward-looking statements.  Readers are referred to the reports and documents
filed from time to time by the Company with the Securities and Exchange
Commission for a discussion of these and other important risk factors that
could cause actual results to differ from those discussed in forward-looking
statements.

 

MAIDENFORM BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
                                                    December 29,  December 31,
                                                    2012          2011
Assets
Current assets
      Cash and cash equivalents                     $             $          
                                                    83,747        68,041
      Accounts receivable, net                      72,538        54,517
      Inventories                                   119,015       113,200
      Deferred income taxes                         15,081        15,357
      Prepaid expenses and other current assets     15,089        14,310
Total current assets                                305,470       265,425
Property and equipment, net                         31,347        29,497
Goodwill                                            7,162         7,162
Intangible assets, net                              91,789        92,765
Other non-current assets                            183           386
Total assets                                        $             $        
                                                    435,951       395,235
Liabilities and stockholders' equity
Current liabilities
      Current portion of long-term debt             $             $          
                                                      1,100         1,100
      Accounts payable                              53,050        38,425
      Accrued expenses and other current            21,882        24,967
liabilities
Total current liabilities                           76,032        64,492
Long-term debt                                      67,125        67,950
Deferred income taxes                               26,927        25,108
Other non-current liabilities                       11,583        14,497
Total liabilities                                   181,667       172,047
Stockholders' equity
      Preferred stock -  $0.01 par value;
10,000,000 shares authorized
        and none issued and outstanding             -             -
     Common stock - $0.01 par value; 100,000,000
shares authorized;
   24,399,732 shares issued and 22,754,212
outstanding at December 29, 2012
   and 24,399,732 shares issued and 22,922,969      244           244
outstanding at December 31, 2011
      Additional paid-in                            80,628        78,362
capital                         
      Retained earnings                             213,423       181,227
      Accumulated other comprehensive loss          (8,647)       (8,301)
      Treasury stock, at cost (1,645,520 shares at
December 29, 2012 and
        1,476,763 shares at December 31, 2011)      (31,364)      (28,344)
Total stockholders' equity                          254,284       223,188
Total liabilities and stockholders' equity          $             $        
                                                    435,951       395,235

 

MAIDENFORM BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
(unaudited)
                      Three Months Ended            For the Years Ended
                      December 29,   December 31,   December 29,  December 31,
                      2012           2011           2012          2011
Net sales             $              $              $             $        
                      135,124        124,516        600,277       606,327
Cost of sales         94,829         95,313         414,796       414,900
          Gross       40,295         29,203         185,481       191,427
profit
Selling, general and
administrative        34,576         34,091         133,193       132,202
expenses
Litigation settlement -              -              -             6,750
          Operating   5,719          (4,888)        52,288        52,475
income (loss)
Interest expense, net 246            280            1,086         969
          Income
(loss) before
provision 
for income taxes      5,473          (5,168)        51,202        51,506
Income tax (benefit)  (18)           (2,093)        17,743        18,314
expense
         Net income   $              $              $             $        
(loss)                 5,491         (3,075)         33,459        33,192
Basic earnings (loss) $              $              $             $          
per common share       0.24          (0.13)            1.45          1.45
Diluted earnings      $              $              $             $          
(loss) per common      0.24          (0.13)            1.43          1.42
share 
Basic weighted
average number of
      shares          22,965,262     22,918,027     23,012,012    22,855,196
outstanding
Diluted weighted
average number of 
      shares          23,306,812     22,918,027     23,388,482    23,332,405
outstanding

 

 

MAIDENFORM BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
                        Three Months Ended          For the Years Ended
                        December 29,  December 31,  December 29,  December 31,
                        2012          2011          2012          2011
Net income (loss)       $             $             $             $          
                          5,491        (3,075)      33,459        33,192
Other comprehensive
loss, before tax:
Foreign currency        292           (441)         430           (641)
translation adjustments
Adjustments to benefit  (1,494)       (5,787)       (1,083)       (5,618)
plans
Other comprehensive     (1,202)       (6,228)       (653)         (6,259)
loss, before tax
Income tax benefit
related to items of 
other comprehensive     (471)         (2,244)       (307)         (2,176)
loss (1)
Other comprehensive     (731)         (3,984)       (346)         (4,083)
loss, net of tax
Comprehensive income    $             $             $             $          
(loss)                    4,760        (7,059)      33,113        29,109
(1) Tax benefit provided relates to benefit plan deferrals. 

 

 

MAIDENFORM BRANDS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                              For the Years Ended
                                              December 29,     December 31,
                                              2012             2011
Cash flows from operating activities
Net income                                    $                $          
                                              33,459           33,192
Adjustments to reconcile net income to net
cash  
  provided by operating activities
      Depreciation and amortization           5,351            4,706
      Amortization of intangible assets       1,101            1,090
      Amortization of deferred financing      181              178
costs
      Stock-based compensation                4,876            4,048
      Deferred income taxes                   1,702            1,317
      Excess tax benefits related to          (896)            (1,075)
stock-based compensation
      Bad debt expense                        (56)             47
      Other non-cash items                    245              43
      Net changes in operating assets and
        liabilities
         Accounts receivable                  (17,633)         (13,754)
         Inventories                          (5,210)          (24,753)
         Prepaid expenses and other current
and
           non-current assets                 2,053            (3,525)
         Accounts payable                     14,595           7,779
         Accrued expenses and other current
and
           non-current liabilities            (3,852)          (2,004)
         Income taxes payable                 (4,198)          (2,927)
               Net cash provided by operating 31,718           4,362
activities
Cash flows from investing activities
Capital expenditures                          (7,307)          (8,585)
               Net cash used in investing     (7,307)          (8,585)
activities
Cash flows from financing activities
Term loan repayments                          (825)            (1,100)
Payments of capital lease obligations         (306)            (283)
Purchase of common stock for treasury         (6,534)          (1,961)
Financing fees paid                           (250)            -
Proceeds from stock options exercised         672              1,545
Excess tax benefits related to stock-based    896              1,075
compensation
Payments of employee withholding taxes
related to 
  equity awards                               (1,755)          (1,288)
               Net cash used in financing     (8,102)          (2,012)
activities
Effects of exchange rate changes on cash and  (603)            1,055
cash equivalents
               Net increase (decrease) in     15,706           (5,180)
cash and cash equivalents
Cash and cash equivalents
Beginning of the year                         68,041           73,221
End of the year                               $                $          
                                              83,747           68,041
Supplementary disclosure of cash flow
information
Cash paid during the year
Interest                                      $                $              
                                              914              973
Income taxes                                  $                $        
                                               19,828           19,331
Supplemental schedule of non-cash financing
activities
Treasury stock issued related to equity award $                $          
activity                                       5,269            5,001

 

 

                                                                  Exhibit 1
MAIDENFORM BRANDS, INC. AND SUBSIDIARIES
SALES BY CHANNEL OF DISTRIBUTION AND PRODUCT MIX
(in millions)
(unaudited)
                     Three Months Ended 
                     December 29,   December 31,   $              %
                     2012           2011           change         change
Department stores
and
national chain       $              $              $              3.9%
stores                53.9           51.9             2.0
Mass merchants       38.7           36.3           2.4            6.6
Other                28.2           21.6           6.6            30.6
Total wholesale      120.8          109.8          11.0           10.0
Retail               14.3           14.7           (0.4)          (2.7)
Total consolidated   $              $              $              8.5%
net sales             135.1          124.5          10.6
                     For the Years Ended
                     December 29,   December 31,   $              %
                     2012           2011           change         change
Department stores
and
national chain       $              $              $              0.8%
stores                247.1          245.2            1.9
Mass merchants       190.7          196.2          (5.5)          (2.8)
Other                100.7          104.4          (3.7)          (3.5)
Total wholesale      538.5          545.8          (7.3)          (1.3)
Retail               61.8           60.5           1.3            2.1
Total consolidated   $              $              $              -1.0%
net sales             600.3          606.3           (6.0)
                     Three Months Ended            For the Years Ended
                     December 29,   December 31,   December 29,   December 31,
                     2012           2011           2012           2011
Bras                 58%            49%            57%            55%
Shapewear            33             44             35             38
Panties              9              7              8              7
                     100%           100%           100%           100%

 

                                                                    Exhibit 2
MAIDENFORM BRANDS, INC. AND SUBSIDIARIES
DILUTED EARNINGS PER SHARE GAAP TO NON-GAAP RECONCILIATION SCHEDULE
(unaudited)
The Company's non-GAAP financial measures are adjusted to exclude certain
costs, expenses, gains and losses and other specified items that due to their
significant and/or unusual nature are evaluated on an individual basis.
Similar charges or gains for some of these items have been recognized in prior
periods and it is reasonably possible that they could reoccur in future
periods. Non-GAAP information is intended to portray the results of the
Company's baseline performance and to enhance an investor's overall
understanding of the Company's past financial performance and prospects for
the future. For example, non-GAAP earnings and EPS information is an
indication of our baseline performance before items that are considered by us
to not be reflective of our ongoing results. In addition, this information is
among the primary indicators we use as a basis for evaluating performance,
allocating resources, setting incentive compensation targets, and planning and
forecasting for future periods. This information is not intended to be
considered in isolation or as a substitute for net earnings or diluted EPS
prepared in accordance with GAAP.
Specific items were as follows:
                           Three Months Ended          For the Years Ended
                           December      December      December     December
                           29,           31,           29,          31,
                           2012          2011          2012         2011
                           (in millions)
    Markdowns associated                                            $        
    with exiting the       $             $             $                     
    Maidenform's Charmed        0.9             -           0.9             -
    brand
    Discontinuation of a   -             3.8           -            3.8
    product line
Gross profit               0.9           3.8           0.9          3.8
    Workforce reduction    1.5           1.2           1.5          1.2
Selling, general and       1.5           1.2           1.5          1.2
administrative expenses
    Litigation settlement  -             -             -            6.8
Litigation settlement      -             -             -            6.8
Increase to income before  2.4           5.0           2.4          11.8
provision for income taxes
    Income tax on items    (0.9)         (1.9)         (0.9)        (4.6)
    above
    Non-recurring state    (1.9)         -             (1.9)        -
    income tax benefit
(Decrease)/increase to net $             $             $            $        
income                         (0.4)          3.1          (0.4)             
                                                                          7.2
The reconciliations from
GAAP to Non-GAAP were as
follows:
                           Three Months Ended          For the Years Ended
                           December      December      December     December
                           29,           31,           29,          31,
                           2012          2011          2012         2011
                           (in millions)
                           $             $             $            $        
Net income (loss) - GAAP        5.5          (3.1)        33.5               
                                                                        33.2
Specific items above       (0.4)         3.1           (0.4)        7.2
                           $             $             $            $        
Net income - Non-GAAP           5.1             -         33.1               
                                                                        40.4
                           Three Months Ended          For the Years Ended
                           December      December      December     December
                           29,           31,           29,          31,
                           2012          2011          2012         2011
Reported diluted earnings  $             $             $            $        
(loss) per share              0.24         (0.13)         1.43               
                                                                        1.42
Adjustments:
    Non-recurring state    (0.08)        -             (0.08)       -
    income tax benefit
    Workforce reduction    0.04          0.03          0.04         0.03
    Markdowns associated
    with exiting the       0.02          -             0.02         -
    Maidenform's Charmed
    brand
    Discontinuation of a   -             0.10          -            0.10
    product line
    Litigation settlement  -             -             -            0.18
Non-GAAP diluted earnings  $             $             $            $        
per share                     0.22              -         1.41               
                                                                        1.73

 

 

SOURCE Maidenform Brands, Inc.

Website: http://www.maidenformbrands.com
Contact: Chris Vieth, Chief Operating Officer & Chief Financial Officer,
+1-732-621-2101, cvieth@maidenform.com
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