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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

  o Net sales, which included the 53^rd week, increased 5.5% to $1,809.5,
    compared to $1,715.9 million the prior year.
  o Comparable retail sales, which excluded the 53^rd week, increased 2.0%
    compared to the prior year.
  o Gross profit increased 4.0% to $690.5 million, and deleveraged 50 basis
    points to 38.2% of sales.
  o Non-GAAP selling, general and administrative expense increased 6.2% to
    $507.0 million, and deleveraged 20 basis points to 28.0% of sales.
  o Non-GAAP operating income increased 3.0% to $114.3 million, and
    deleveraged 20 basis points to 6.3% of sales.
  o Non-GAAP net income was $78.3 million, a 4.5% increase compared to prior
    year.
  o Non-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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