The Bon-Ton Stores, Inc. Discusses Fiscal 2013 Guidance

  The Bon-Ton Stores, Inc. Discusses Fiscal 2013 Guidance

Business Wire

YORK, Pa. -- January 10, 2014

The Bon-Ton Stores, Inc. (NASDAQ:BONT) today announced that its December
comparable store sales results were significantly impacted by unfavorable
winter weather conditions in its markets.

Brendan Hoffman, President and Chief Executive Officer, commented, “We are
disappointed with the deceleration in sales during December, particularly
given the strong start to the holiday season beginning with Black Friday and
extending through the early part of the month. Adverse weather and treacherous
travel conditions in the majority of our markets resulted in a sharp reduction
in traffic and hampered promotional events on key weekend selling dates
leading up to and continuing after Christmas.”

Mr. Hoffman continued, “Despite the sales shortfall, due to our continued
strategic inventory reductions, we ended the month with inventory levels well
below that of the prior year, which positions us well as we transition into
the spring season. We believe that we are heading in the right direction with
our merchandise assortment and will continue to focus on executing our
long-term initiatives while managing through a difficult retail environment.”

Keith Plowman, Executive Vice President and Chief Financial Officer,
commented, “Reflecting the disruption caused by the inclement weather during
December, we are revising our outlook for our full-year fiscal 2013 comparable
store sales to decrease approximately 3.50%. In light of this decrease, we are
adjusting our fiscal 2013 guidance for Adjusted EBITDA (see Note 1) to a range
of $160 million to $170 million and for (loss) earnings per diluted share to a
range of $(0.30) to $0.15.”

The Company will provide additional details in early March when it reports its
results for the fourth quarter and fiscal 2013 periods ending February 1,

The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania
and Milwaukee, Wisconsin, operates 273 department stores, which includes 10
furniture galleries, in 25 states in the Northeast, Midwest and upper Great
Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman,
Herberger’s and Younkers nameplates. The stores offer a broad assortment of
national and private brand fashion apparel and accessories for women, men and
children, as well as cosmetics and home furnishings. For further information,
please visit the investor relations section of the Company’s website at

Cautionary Note Regarding Forward-Looking Statements

Certain information included in this press release contains statements that
are forward-looking within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements, which may be identified
by words such as “may,” “could,” “will,” “plan,” “expect,” “anticipate,”
“estimate,” “project,” “intend” or other similar expressions, involve
important risks and uncertainties that could significantly affect results in
the future and, accordingly, such results may differ from those expressed in
any forward-looking statements made by or on behalf of the Company. Factors
that could cause such differences include, but are not limited to: risks
related to retail businesses generally; a significant and prolonged
deterioration of general economic conditions which could negatively impact the
Company in a number of ways, including the potential write-down of the current
valuation of intangible assets and deferred taxes; risks related to the
Company’s proprietary credit card program; potential increases in pension
obligations; consumer spending patterns, debt levels, and the availability and
cost of consumer credit; additional competition from existing and new
competitors; inflation; deflation; changes in the costs of fuel and other
energy and transportation costs; weather conditions that could negatively
impact sales; uncertainties associated with expanding or remodeling existing
stores; the ability to attract and retain qualified management; the dependence
upon relationships with vendors and their factors; a data security breach or
system failure; the ability to reduce or control SG&A expenses, including
initiatives to reduce expenses and improve efficiency; operational
disruptions; unsuccessful marketing initiatives; changes in, or the failure to
successfully implement our key strategies, including initiatives to improve
our merchandising, marketing and operations; adverse outcomes in litigation;
the incurrence of unplanned capital expenditures; the ability to obtain
financing for working capital, capital expenditures and general corporate
purpose; the impact of regulatory requirements including the Health Care
Reform Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act;
the inability or limitations on the Company’s ability to favorably adjust the
valuation allowance on deferred tax assets; and the financial condition of
mall operators. Additional factors that could cause the Company’s actual
results to differ from those contained in these forward-looking statements are
discussed in greater detail under Item 1A of the Company’s Form 10-K filed
with the Securities and Exchange Commission.

Note 1: As used in this release, Adjusted EBITDA is defined as earnings before
interest, income taxes, depreciation and amortization, including amortization
of lease-related interests, impairment charges and loss on
exchange/extinguishment of debt. Adjusted EBITDA is not a measure of financial
performance under generally accepted accounting principles (“GAAP”). However,
we present Adjusted EBITDA in this release because we consider it to be an
important supplemental measure of our performance and because it is frequently
used by securities analysts, investors and other interested parties to
evaluate the performance of companies in our industry and by some investors to
determine a company’s ability to service or incur debt. In addition, our
management uses Adjusted EBITDA internally to compare the profitability of our
stores. Adjusted EBITDA is not calculated in the same manner by all companies
and, accordingly, is not necessarily comparable to similarly entitled measures
of other companies and may not be an appropriate measure for performance
relative to other companies. Adjusted EBITDA should not be assessed in
isolation from or construed as a substitute for net income or cash flows from
operations, which are prepared in accordance with GAAP. Adjusted EBITDA is not
intended to represent, and should not be considered to be a more meaningful
measure than, or an alternative to, measures of operating performance as
determined in accordance with GAAP.


The Bon-Ton Stores, Inc.
Mary Kerr, 717-751-3071
Vice President
Investor & Public Relations
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