Aeropostale Receives Notice From NYSE Regarding Continued Listing Requirements
Sep 29 15
Aeropostale, Inc. announced that on September 29, 2015, it received notice from the New York Stock Exchange (the NYSE) that the average closing price of the Company's common stock over a consecutive 30 trading-day period had fallen below $1.00 per share, which is the minimum average price required by the NYSE.Â The notice has no immediate impact on the listing of the Company's common stock. The Company plans to notify the NYSE by October 13, 2015 that it intends to cure the deficiency and return to compliance with NYSE continued listing requirements. Under the NYSE rules, the Company can cure this deficiency if, during the six-month period following receipt of the NYSE notice, on the last trading-day of any calendar month, the Company's common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. If the Company determines that it will cure the stock price deficiency by taking an action that will require approval by its stockholders at the next annual meeting of stockholders, the six-month period described above will extend to shortly after such annual meeting. The Company intends to consider available alternatives, including but not limited to, a reverse stock split, in order to cure the stock price deficiency and return to compliance with the NYSE continued listing requirement. The Company's common stock will continue to be listed and traded on the NYSE during the cure period, subject to the Company's compliance with the other NYSE listing standards. The NYSE notification does not affect Aeropostale's business operations or its Securities and Exchange Commission reporting requirements and does not conflict with or cause an event of default under any of the Company's material debt or other agreements.
Aéropostale, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended August 1, 2015; Provides Earnings Guidance for the Third Quarter of 2015
Aug 27 15
Aéropostale, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended August 1, 2015. For the quarter, the company reported net loss of $43.659 million or $0.55 per diluted share compared with $63.819 million or $0.81 per diluted share a year ago. Sales fell to $326.9 million from $396.2 million a year earlier. Loss from operations was $37.431 million against $61.651 million a year ago. Loss before income taxes was $40.279 million against $64.075 million a year ago. Adjusted operating loss was $38.568 million against $36.522 million a year ago. Adjusted net loss was $44.803 million or $0.56 diluted per share against $35.986 million or $0.46 diluted per share a year ago. The decrease in sales was driven by a drop of 8% in comp sales versus a 13% decrease last year as well as a decline in weighted average square footage of 20%. The GAAP second quarter operating loss included a $6.1 million pretax benefit due to reversals of exit cost obligation liabilities resulting from subsequent lease terminations. Capital expenditures were $6 million.
For the six months, the company reported net sales of $645.504 million against $792.013 million a year ago. Loss from operations was $77.887 million against $145.088 million a year ago. Loss before income taxes was $84.122 million against $147.861 million a year ago. Net loss was $88.927 million or $1.12 basic and diluted per share against $140.601 million or $1.79 basic and diluted per share a year ago. Adjusted operating loss was $77.82 million against $82.557 million a year ago. Adjusted net loss was $88.827 million or $1.12 diluted per share against $77.131 million or $0.98 diluted per share a year ago.
For the third quarter, the company forecasts a net loss in the range of $0.30 to $0.38 per diluted share. The effective tax rate is projected to be approximately 4.0% and losses in the range of $19.0 to $25.0 million. Gross margins are expected to be up. The company currently expect depreciation and amortization of approximately $9 million, a pro forma tax expense rate of approximately 4% on projected loss and shares outstanding of 79.7 million.
Aéropostale, Inc. Enters into Fourth Amendment to Third Amended and Restated Loan and Security Agreement and Amendment to Certain Other Loan Documents with Bank of America, N.A
Aug 24 15
On August 18, 2015, Aéropostale, Inc. entered into a fourth amendment to third amended and restated loan and security agreement and amendment to certain other loan documents by and among the company, certain subsidiaries of the company, as guarantors, Bank of America, N.A., as Agent, and the Lenders party thereto. Among other things, the Fourth Amendment extends the maturity date of the Third Amended and Restated Loan and Security Agreement, dated as of September 22, 2011, among the Company, the Guarantors party thereto, the Agent, and the Lenders party thereto, until at least February 21, 2019, with automatic extensions, under certain circumstances set out in the Fourth Amendment, to August 18, 2020; provides for a reduction in the maximum principal amount of extensions of credit that may be made under the Loan Agreement from $230 million to $215 million; provides for a seasonal increase in the advance rate on inventory under the borrowing base formula for the revolving credit facility contained in the Loan Agreement; increases to $40 million the maximum aggregate principal amount of loans that may be borrowed under the FILO loan facility contained in the Loan Agreement and provides for an annual decrease, commencing in 2017, in the advance rate under the borrowing base formula for FILO loans; and reflects the addition of General Electric Capital Corporation as an additional lender under the Loan Agreement. The reduction in the maximum principal amount of extensions of credit under the Loan Agreement was primarily driven by the Company's strategic decision to close underperforming stores over the last eighteen months, thus reducing inventory levels.