The Children's Place Reports Fourth Quarter and Fiscal 2012 Results

The Children's Place Reports Fourth Quarter and Fiscal 2012 Results

Issues Guidance for First Quarter and Fiscal 2013

SECAUCUS, N.J., March 26, 2013 (GLOBE NEWSWIRE) -- The Children's Place Retail
Stores, Inc. (Nasdaq:PLCE), the largest pure-play children's specialty apparel
retailer in North America, today announced financial results for the fourth
quarter and fiscal 2012 periods ended February 2, 2013.

President and Chief Executive Officer Jane Elfers commented, "We continued to
make significant progress during 2012 and had a strong finish to the year. We
delivered record sales of $1.8 billion in fiscal 2012 and a 2% increase in
comparable retail sales. Non-GAAP earnings per share increased 11% to $3.23.
In addition, we generated $205 million in cash from operations during the year
and returned approximately $89 million to shareholders through our share
buyback program.

"For the fourth quarter, comparable retail sales increased 4.3%, non-GAAP
operating income increased 65% and non-GAAP earnings increased 32% to $1.15
per diluted share," Ms. Elfers said.

Net Income and EPS

The Company announced on February 26, 2013 that it was changing its accounting
policy to report its inventory on the cost method instead of the retail
inventory method and that it will capitalize additional supply chain costs
instead of reporting them as period expenses, effective in the fourth quarter.
The Company is reporting fourth quarter and fiscal 2012 results under both the
new and previous accounting policies to facilitate comparisons between the two
accounting methods. In this press release the term (i) "cost method" reflects
the change in accounting principle to report inventory on the cost method and
the capitalization of additional supply chain costs, (ii) "adjusted" refers to
results in prior periods which have been adjusted to reflect the GAAP cost
method, and (iii) "Non-GAAP" refers to results which exclude transactions
which the Company believes are not indicative of the performance of its core
business. The Company believes that by providing this supplemental disclosure
to investors it will facilitate comparisons of its past and present
performance. A reconciliation of net income and earnings per diluted share as
reported is included in this press release in Table 3.

Under the cost method, the Company reported net income of $19.1 million and
earnings per diluted share of $0.80 for the fourteen weeks ended February 2,
2013, compared to adjusted net income of $23.3 million and adjusted earnings
per diluted share of $0.93 for the thirteen weeks ended January 28, 2012. For
the fifty-three weeks ended February 2, 2013, the Company reported net income
of $63.2 million and earnings per diluted share of $2.61, compared to adjusted
net income of $74.3 million and adjusted earnings per diluted share of $2.90
for the 52-week period ended January 28, 2012.

Under the retail method, the Company reported net income of $22.1 million and
earnings per diluted share of $0.93 for the fourteen weeks ended February 2,
2013, compared to net income of $24.2 million and earnings per diluted share
of $0.97 in the thirteen weeks ended January 28, 2012. For the fifty-three
weeks ended February 2, 2013, the Company reported net income of $62.7 million
and earnings per diluted share of $2.58, compared to net income of $77.2
million and earnings per diluted share of $3.01 for the fifty-two weeks ended
January 28, 2012.

The results reported above include transactions that the Company believes are
not indicative of the performance of its core business. The following table
also shows Non-GAAP earnings per diluted share under the retail method
excluding such transactions for the fiscal quarters and fiscal years ended
February 2, 2013 and January 28, 2012.

                                                 Fourth Quarter Fiscal Year
                                                 2012   2011    2012   2011
Earnings per diluted share under the cost method  $0.80  $0.93   $2.61  $2.90
on a GAAP basis
Impact of the change in method of accounting for  $0.13  $0.04   -$0.03 $0.11
inventory
Earnings per diluted share under the retail       $0.93  $0.97   $2.58  $3.01
method
Add back: Accelerated depreciation for DC
closures and remodels; restructuring and other    $0.22  $0.03   $0.65  $0.03
costs
Remove: Settlement of state tax audits; reversal
of prior year's US tax accrual on foreign         -      -$0.13  -      -$0.12
earnings
Non-GAAP earnings per diluted share under the     $1.15  $0.87   $3.23  $2.92
retail method

2012 Results Reported under the Retail Method

Fourth Quarter 2012

  *Net sales, which included $21.6 million of sales in the 53^rd week,
    increased 11.3% to $509.2 million, compared to $457.5 million the prior
    year.
  *Comparable retail sales, which excluded the 53^rd week, increased 4.3%
    compared to the prior year.
  *Gross profit increased 17.5% to $192.7 million, and increased 200 basis
    points to 37.8% of sales.
  *Selling, general and administrative expense increased 12.4% to $136.1
    million, and deleveraged 20 basis points to 26.7% of sales.
  *Non-GAAP operating income increased 64.8% to $38.7 million, and increased
    250 basis points to 7.6% of sales.
  *Non-GAAP net income was $27.3 million, a 24.8% increase compared to the
    prior year.
  *Non-GAAP EPS of $1.15 per diluted share compares to $0.87 last year, a
    32.2% increase.

Fiscal 2012 Results

  oNet sales, which included the 53^rd week, increased 5.5% to $1,809.5,
    compared to $1,715.9 million the prior year.
  oComparable retail sales, which excluded the 53^rd week, increased 2.0%
    compared to the prior year.
  oGross profit increased 4.0% to $690.5 million, and deleveraged 50 basis
    points to 38.2% of sales.
  oNon-GAAP selling, general and administrative expense increased 6.2% to
    $507.0 million, and deleveraged 20 basis points to 28.0% of sales.
  oNon-GAAP operating income increased 3.0% to $114.3 million, and
    deleveraged 20 basis points to 6.3% of sales.
  oNon-GAAP net income was $78.3 million, a 4.5% increase compared to prior
    year.
  oNon-GAAP EPS of $3.23 per diluted share compares to $2.92 last year, a
    10.6% increase.

Store Openings and Closures

The Company opened four stores and closed 11 during the fourth quarter of
2012. During fiscal 2012, the Company opened 64 stores and closed 18, ending
the year with 1,095 stores.

Share Repurchase Program

During the fourth quarter of 2012, the Company repurchased 863 thousand shares
for approximately $41.2 million. In fiscal 2012, the Company repurchased 1.8
million shares for approximately $88.9 million. At the end of fiscal 2012,
$80.4 million of the $100 million share repurchase program authorized in
November 2012 remained available for future share repurchases.

Outlook for 2013 under the Cost Method

With the unfavorable weather and weak macro-economic environment affecting
consumer spending quarter-to-date, the Company is forecasting Non-GAAP
earnings per diluted share will be between $0.60 and $0.65 for the first
quarter of 2013. This compares to Non-GAAP adjusted earnings per diluted share
of $1.14 in the first quarter of 2012. This guidance assumes negative
high-single digit comparable retail sales for the quarter.

For fiscal 2013, the Company is projecting that Non-GAAP earnings per diluted
share will be between $2.90 and $3.10. This compares to Non-GAAP adjusted
earnings per diluted share of $3.25 in fiscal 2012. This guidance assumes
negative low-single digit comparable retail sales for the year.

This earnings guidance assumes that currency exchange rates will remain where
they are today. It does not include the impact of potential share repurchases.

Conference Call Information

The Children's Place will host a conference call to discuss its fourth quarter
and fiscal year 2012 results today at 8:30 a.m. Eastern Time. The call will be
broadcast live at http://investor.childrensplace.com. An audio archive will be
available on the Company's website approximately one hour after the conclusion
of the call.

About The Children's Place Retail Stores, Inc.

The Children's Place is the largest pure-play children's specialty apparel
retailer in North America. The Company designs, contracts to manufacture and
sells fashionable, high-quality merchandise at value prices, primarily under
the proprietary "The Children's Place" brand name.As of February 2, 2013, the
Company operated 1,095 stores and an online store at www.childrensplace.com.

Forward Looking Statements

This press release (and the above referenced call) may contain certain
forward-looking statements regarding future circumstances, including
statements relating to the Company's positioning, and forecasts regarding
store openings and earnings per diluted share. These forward-looking
statements are based upon the Company's current expectations and assumptions
and are subject to various risks and uncertainties that could cause actual
results and performance to differ materially. Some of these risks and
uncertainties are described in the Company's filings with the Securities and
Exchange Commission, including in the "Risk Factors" section of its annual
report on Form 10-K for the fiscal year ended January 28, 2012. Included among
the risks and uncertainties that could cause actual results and performance to
differ materially are the risk that the Company will be unsuccessful in
gauging fashion trends and changing consumer preferences, the risks resulting
from the highly competitive nature of the Company's business and its
dependence on consumer spending patterns, which may be affected by the
continued weakness in the economy or by other factors such as increases in the
cost of gasoline and food, the risk that the cost of raw materials or energy
prices will increase beyond current expectations or that the Company is unable
to offset cost increases through value engineering or price increases, and the
uncertainty of weather patterns. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
they were made. The Company undertakes no obligation to release publicly any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this release does not
constitute an admission by the Company or any other person that the events or
circumstances described in such statement are material.

Table 1
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AT COST METHOD
(In thousands, except per share amounts)
(Unaudited)
                                                             
                                                             
                         Fourth Quarter Ended      Fiscal Year Ended
                         February 2, January 28,   February 2,  January 28,
                         2013        2012          2013         2012
                                    (As adjusted)             (As adjusted)
Net sales                 $509,224  $457,463    $1,809,486 $1,715,862
Cost of sales             320,667    294,843      1,118,046   1,056,213
Gross profit              188,557    162,620      691,440     659,649
Selling, general and      136,089    121,088      510,918     477,425
administrative expenses
Asset impairment charges  215        461          2,284       2,208
Other costs               6,622      --          11,088      --
Depreciation and          19,712     19,851       77,435      74,573
amortization
Operating income          25,919     21,220       89,715      105,443
Interest (expense), net   84         (35)         (20)        (690)
Income before taxes       26,003     21,185       89,695      104,753
Provision for income      6,875      (2,140)      26,452      30,408
taxes
Net income                $19,128   $23,325     $63,243    $74,345
                                                             
                                                             
Earnings per common share                                     
Basic                     $0.81     $0.94       $2.63      $2.92
Diluted                   $0.80     $0.93       $2.61      $2.90
                                                             
Weighted average common                                       
shares outstanding
Basic                     23,541     24,834       24,092      25,459
Diluted                   23,789     25,033       24,276      25,668


Table 2
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AT RETAIL METHOD
(In thousands, except per share amounts)
(Unaudited)
                                                              
                                                              
                            Fourth Quarter Ended    Fiscal Year Ended
                            February 2, January 28, February 2,  January 28,
                            2013        2012        2013         2012
                                                              
Net sales                    $509,224  $457,463  $1,809,486 $1,715,862
Cost of sales                316,533    293,502    1,119,025   1,051,649
Gross profit                 192,691    163,961    690,461     664,213
Selling, general and         136,089    121,088    510,918     477,425
administrative expenses
Asset impairment charges     215        461        2,284       2,208
Other costs                  6,622      --        11,088      --
Depreciation and             19,712     19,851     77,435      74,573
amortization
Operating income             30,053     22,561     88,736      110,007
Interest (expense), net      84         (35)       (20)        (690)
Income before taxes          30,137     22,526     88,716      109,317
Provision for income taxes   8,019      (1,700)    25,971      32,092
Net income                   $22,118   $24,226   $62,745    $77,225
                                                              
                                                              
Earnings per common share                                      
Basic                        $0.94     $0.98     $2.60      $3.03
Diluted                      $0.93     $0.97     $2.58      $3.01
                                                              
Weighted average common                                        
shares outstanding
Basic                        23,541     24,834     24,092      25,459
Diluted                      23,789     25,033     24,276      25,668


Table 3
THE CHILDREN'S PLACE RETAIL STORES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO REPORTED AT RETAIL METHOD
(In thousands, except per share amounts)
(Unaudited)
                                                                        
                                                                        
                        Fourth Quarter Ended     Fiscal Year Ended            
                        February    January     February 2,   January 28,   
                          2,           28,
                        2013        2012        2013          2012          
                                                                        
Net sales                $509,224  $457,463  $1,809,486  $1,715,862  
Cost of sales            316,533    293,502    1,119,025    1,051,649    
Gross profit             192,691    163,961    690,461      664,213      
Selling, general and     136,089    121,088    510,918      477,425      
administrative expenses
Restructuring
severance/miscellaneous  --        --        2,854        --          
costs
Legal Settlement         --        --        1,087        --          
Non-GAAP Selling,
general and              136,089    121,088    506,977      477,425      
administrative expenses
Asset impairment         215        461        2,284        2,208        
charges
Store Impairment due to  --        --        1,250        --          
early termination
Non-GAAP Asset           215        461        1,034        2,208        
impairment charges
Other costs              6,622      --        11,088       --          
DC exit costs            6,622      --        11,088       --          
Non-GAAP Other costs     --        --        --          --          
Depreciation and         19,712     19,851     77,435       74,573       
amortization
DC exit costs and
Canadian store           2,019      922        9,335        1,032        
remodels
Non-GAAP Depreciation    17,693     18,929     68,100       73,541       
and amortization
Operating income         30,053     22,561     88,736       110,007      
Non-GAAP Operating       38,694     23,483     114,350      111,039      
income
Interest (expense), net  84         (35)       (20)         (690)        
Income before taxes      30,137     22,526     88,716       109,317      
Non-GAAP Income before   38,778     23,448     114,330      110,349      
taxes
Provision for income     8,019      (1,700)    25,971       32,092       
taxes
Non-GAAP Provision for   11,475     1,579      35,996       35,402       
income taxes
Net income               22,118     24,226     62,745       77,225       
Non-GAAP Net income      $27,303   $21,869   $78,334     $74,947     
                                                                        
                                                                        
Non-GAAP Earnings per                                                    
common share
Basic                    $1.16     $0.88     $3.25       $2.94       
Diluted                  $1.15     $0.87     $3.23       $2.92       
                                                                        
Weighted average common                                                  
shares outstanding
Basic                    23,541     24,834     24,092       25,459       
Diluted                  23,789     25,033     24,276       25,668       


Table 4
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AT COST METHOD
(In thousands, except per share amounts)
(Unaudited)
                                                               
                                                               
               Fiscal Year Ended
               February 2,  January 28,  January 29,  January 30,  January 31,
               2013         2012         2011         2010         2009
                           (As          (As          (As          (As
                             adjusted)    adjusted)    adjusted)    adjusted)
Net sales       $1,809,486 $1,715,862 $1,673,999 $1,643,587 $1,630,323
Cost of sales   1,118,046   1,056,213   1,013,878   991,393     954,227
Gross profit    691,440     659,649     660,121     652,194     676,096
Selling,
general and     510,918     477,425     456,558     456,338     467,730
administrative
expenses
Asset
impairment      2,284       2,208       2,713       2,200       6,491
charges
Other costs     11,088      --         --         --         213
Depreciation
and             77,435      74,573      71,640      71,447      71,410
amortization
Operating       89,715      105,443     129,210     122,209     130,252
income
Interest        (20)        (690)       (1,530)     (5,731)     (4,939)
(expense), net
Income from
continuing
operations      89,695      104,753     127,680     116,478     125,313
before income
taxes
Provision for   26,452      30,408      47,920      32,743      46,147
income taxes
Income from
continuing      63,243      74,345      79,760      83,735      79,166
operations
(Loss) from
discontinued    --         --         (463)       (487)       8,435
operations,net
of income taxes
Net income     $63,243    $74,345    $79,297    $83,248    $87,601
                                                               
                                                               
Basic earnings
per common                                                      
share
Income from
continuing      $2.63      $2.92      $2.94      $2.94      $2.70
operations
(Loss) from
discontinued    --         --         (0.02)      (0.02)      0.29
operations
Net income      $2.63      $2.92      $2.93      $2.92      $2.99
Basic weighted
average common  24,092      25,459      27,084      28,463      29,307
shares
outstanding
                                                               
Diluted
earnings per                                                    
common share
Income from
continuing      $2.61      $2.90      $2.91      $2.92      $2.68
operations
(Loss) from
discontinued    --         --         (0.02)      (0.02)      0.29
operations
Net income      $2.61      $2.90      $2.89      $2.90      $2.96
Diluted
weighted
average common  24,276      25,668      27,436      28,707      29,548
shares
outstanding
                                                               
Table may not
add due to                                                      
rounding


Table 5
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AT COST METHOD
(In thousands, except per share amounts)
(Unaudited)
                                                                                     
              Quarter Ended
                                                                                     
              February   October    July 28,    April 28,  January    October    July 30,   April 30,
               2,         27,                               28,        29,
              2013       2012       2012        2012       2012       2011       2011       2011
                        (As        (As         (As        (As        (As        (As        (As
                          adjusted)  adjusted)   adjusted)  adjusted)  adjusted)  adjusted)  adjusted)
Net sales      $509,224 $500,928 $360,826  $438,508 $457,463 $484,085 $343,508 $430,806
Cost of sales  320,667   291,395   246,121    259,863   294,843   286,059   225,934   249,377
Gross profit   188,557   209,533   114,705    178,645   162,620   198,026   117,574   181,429
Selling,
general and    136,089   131,875   120,671    122,283   121,088   127,229   112,446   116,662
administrative
expenses
Asset
impairment     215       539       280        1,250     461       369       980       398
charges
Other costs    6,622     570       3,062      834       --       --       --       --
Depreciation
and            19,712    23,023    17,482     17,218    19,851    18,493    18,478    17,751
amortization
Operating      25,919    53,526    (26,790)   37,060    21,220    51,935    (14,330)  46,618
income (loss)
Interest       84        (23)      (30)       (51)      (35)      (70)      (314)     (271)
(expense), net
Income (loss)  26,003    53,503    (26,820)   37,009    21,185    51,865    (14,644)  46,347
before taxes
Provision
(benefit) for  6,875     16,198    (8,896)    12,275    (2,140)   19,728    (5,757)   18,577
income taxes
Net income     $19,128  $37,305  $(17,924) $24,734  $23,325  $32,137  $(8,887) $27,770
(loss)
                                                                                     
                                                                                     
Earnings
(loss) per                                                                            
common share
Basic          $0.81    $1.55    $(0.74)   $1.01    $0.94    $1.28    $(0.35)  $1.06
Diluted        $0.80    $1.54    $(0.74)   $1.00    $0.93    $1.27    $(0.35)  $1.05
                                                                                     
Weighted
average common                                                                        
shares
outstanding
Basic          23,541    24,086    24,249     24,535    24,834    25,121    25,738    26,120
Diluted        23,789    24,293    24,249     24,691    25,033    25,279    25,738    26,387


Table 6
THE CHILDREN'S PLACE RETAIL STORES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP AT COST METHOD
(In thousands, except per share amounts)
(Unaudited)
                                                                       
                                                                       
                       Fiscal Year Ended
                       February 2,  January 28,  January 29,  January 30,  January 31,
                       2013         2012         2011         2010         2009
                                   (As          (As          (As          (As
                                     adjusted)    adjusted)    adjusted)    adjusted)
Net sales               $1,809,486 $1,715,862 $1,673,999 $1,643,587 $1,630,323
Cost of sales           1,118,046   1,056,213   1,013,878   991,393     954,227
Gross profit            691,440     659,649     660,121     652,194     676,096
Selling, general and    510,918     477,425     456,558     456,338     467,730
administrative expenses
Restructuring
severance/miscellaneous 2,854       --         --         2,805       3,056
costs
Proxy fees              --         --         --         2,054       --
Transition income       --         --         --         --         (11,582)
Sale of store lease     --         --         --         --         (2,300)
Tax benefit             --         --         --         --         (50)
Legal Settlement        1,087       --         --         --         --
Settlement of
employment tax audits   --         --         (619)       (3,532)     --
related to stock
options
Non-GAAP Selling,
general and             506,977     477,425     457,177     455,011     478,606
administrative expenses
Asset impairment        2,284       2,208       2,713       2,200       6,491
charges
Store Impairment        1,250       --         --         852         4,902
Non-GAAP Asset          1,034       2,208       2,713       1,348       1,589
impairment charges
Other costs             11,088      --         --         --         213
DC exit costs           11,088      --         --         --         213
Non-GAAP Other costs    --         --         --         --         --
Depreciation and        77,435      74,573      71,640      71,447      71,410
amortization
DC exit costs and
Canadian store          9,335       1,032       --         --         --
remodels
Non-GAAP Depreciation   68,100      73,541      71,640      71,447      71,410
and amortization
Operating income        89,715      105,443     129,210     122,209     130,252
Non-GAAP Operating      115,329     106,475     128,591     124,388     124,491
income
Interest (expense), net (20)        (690)       (1,530)     (5,731)     (4,939)
Settlement of
employment tax audits  --         --         72          (907)       --
related to stock
options and other misc
Non-GAAP Interest       (20)        (690)       (1,602)     (4,824)     (4,939)
(expense), net
Income before taxes     89,695      104,753     127,680     116,478     125,313
Non-GAAP Income before  115,309     105,785     126,989     119,564     119,552
taxes
Provision for income    26,452      30,408      47,920      32,743      46,147
taxes
Non-GAAP Provision for  36,477      33,718      47,644      48,869      48,308
income taxes
Income from continuing  63,243      74,345      79,760      83,735      79,166
operations
Non-GAAP Income from    78,832      72,067      79,345      70,695      71,244
continuing operations
(Loss) from
discontinued            --         --         (463)       (487)       8,435
operations, net of
income taxes
Net income             63,243      74,345      79,297      83,248      87,601
Non-GAAP Net income     $78,832    $72,067    $78,882    $70,208    $79,679
                                                                       
                                                                       
                                                                       
Non-GAAP Basic earnings                                                 
per common share
Income from continuing  $3.27      $2.83      $2.93      $2.48      $2.43
operations
(Loss) from
discontinued            --         --         (0.02)      (0.02)      0.29
operations
Net income              $3.27      $2.83      $2.91      $2.47      $2.72
Basic weighted average
common shares           24,092      25,459      27,084      28,463      29,307
outstanding
                                                                       
Non-GAAP Diluted
earnings per common                                                     
share
Income from continuing  $3.25      $2.81      $2.89      $2.46      $2.41
operations
(Loss) from
discontinued            --         --         (0.02)      (0.02)      0.29
operations
Net income              $3.25      $2.81      $2.88      $2.45      $2.70
Diluted weighted
average common shares   24,276      25,668      27,436      28,707      29,548
outstanding
                                                                       
Table may not add due                                                   
to rounding


Table 7
THE CHILDREN'S PLACE RETAIL STORES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP AT COST METHOD
(In thousands, except per share amounts)
(Unaudited)
                                                                                              
                       Quarter Ended
                                                                                              
                       February   October    July 28,    April 28,  January    October    July 30,   April 30,
                        2,         27,                               28,        29,
                       2013       2012       2012        2012       2012       2011       2011       2011
                                 (As        (As         (As        (As        (As        (As        (As
                                   adjusted)  adjusted)   adjusted)  adjusted)  adjusted)  adjusted)  adjusted)
Net sales               $509,224 $500,928 $360,826  $438,508 $457,463 $484,085 $343,508 $430,806
Cost of sales           320,667   291,395   246,121    259,863   294,843   286,059   225,934   249,377
Gross profit            188,557   209,533   114,705    178,645   162,620   198,026   117,574   181,429
Selling, general and    136,089   131,875   120,671    122,283   121,088   127,229   112,446   116,662
administrative expenses
Restructuring
severance/miscellaneous --       --       164        2,690     --       --       --       --
costs
Legal Settlement        --       --       1,087      --       --       --       --       --
Non-GAAP Selling,
general and             136,089   131,875   119,420    119,593   121,088   127,229   112,446   116,662
administrative expenses
Asset impairment        215       539       280        1,250     461       369       980       398
charges
Store Impairment due to --       --       --        1,250     --       --       --       --
early termination
Non-GAAP Asset          215       539       280        --       461       369       980       398
impairment charges
Other costs             6,622     570       3,062      834       --       --       --       --
DC exit costs           6,622     570       3,062      834       --       --       --       --
Non-GAAP Other costs    --       --       --        --       --       --       --       --
Depreciation and        19,712    23,023    17,482     17,218    19,851    18,493    18,478    17,751
amortization
DC exit costs and
Canadian store          2,019     5,958     465        893       922       110       --       --
remodels
Non-GAAP Depreciation   17,693    17,065    17,017     16,325    18,929    18,383    18,478    17,751
and amortization
Operating income (loss) 25,919    53,526    (26,790)   37,060    21,220    51,935    (14,330)  46,618
Non-GAAP Operating      34,560    60,054    (22,012)   42,727    22,142    52,045    (14,330)  46,618
income (loss)
Interest (expense), net 84        (23)      (30)       (51)      (35)      (70)      (314)     (271)
Income (loss) before    26,003    53,503    (26,820)   37,009    21,185    51,865    (14,644)  46,347
taxes
Non-GAAP Income (loss)  34,644    60,031    (22,042)   42,676    22,107    51,975    (14,644)  46,347
before taxes
Provision (benefit) for 6,875     16,198    (8,896)    12,275    (2,140)   19,728    (5,757)   18,577
income taxes
Non-GAAP Provision
(benefit) for income    10,331    18,772    (7,047)    14,422    1,139     19,759    (5,757)   18,577
taxes
Net income (loss)       19,128    37,305    (17,924)   24,734    23,325    32,137    (8,887)   27,770
Non-GAAP Net income     $24,313  $41,259  $(14,995) $28,254  $20,968  $32,216  $(8,887) $27,770
(loss)
                                                                                              
                                                                                              
Non-GAAP Earnings                                                                              
(loss) per common share
Basic                   $1.03    $1.71    $(0.62)   $1.15    $0.84    $1.28    $(0.35)  $1.06
Diluted                 $1.02    $1.70    $(0.62)   $1.14    $0.84    $1.27    $(0.35)  $1.05
                                                                                              
Weighted average common                                                                        
shares outstanding
Basic                   23,541    24,086    24,249     24,535    24,834    25,121    25,738    26,120
Diluted                 23,789    24,293    24,249     24,691    25,033    25,279    25,738    26,387


Table 8
THE CHILDREN'S PLACE RETAIL STORES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                               
                            COST METHOD               RETAIL METHOD
                                                               
                            February 2, January 28,   February 2, January 28,
                            2013        2012          2013        2012
Assets:                                 (As adjusted)            
Cash and short-term          $209,128  $176,655    $209,128  $176,655
investments
Accounts receivable          18,490     17,382       18,490     17,382
Inventories                  266,976    237,786      241,105    212,916
Other current assets         50,641     57,105       60,391     66,372
Total current assets         545,235    488,928      529,114    473,325
                                                               
Property and equipment, net  330,101    323,863      330,101    323,863
Other assets, net            48,074     53,461       48,074     53,461
Total assets                 $923,410  $866,252    $907,289  $850,649
                                                               
Liabilities and                                                 
Stockholders' Equity:
Accounts payable             $87,461   $55,516     $87,461   $55,516
Accrued expenses and other   104,045    76,039       104,045    76,039
current liabilities
Total current liabilities    191,506    131,555      191,506    131,555
                                                               
Other liabilities            110,955    109,728      110,955    109,728
Total liabilities            302,461    241,283      302,461    241,283
                                                               
Stockholders' equity         620,949    624,969      604,828    609,366
                                                               
Total liabilities and        $923,410  $866,252    $907,289  $850,649
stockholders' equity

CONTACT: Jane Singer
         Vice President, Investor Relations
         (201) 453-6955
 
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