Guess?, Inc., Guess? Retail, Inc. Guess.Com, Inc. and Guess? Canada Corporation Enter Loan, Guaranty and Security Agreement
Jun 24 15
Guess?, Inc. (the Company") entered into a Loan, Guaranty and Security Agreement by and among the Company, Guess? Retail, Inc., Guess.com, Inc. (collectively, the U.S. Borrowers"), Guess? Canada Corporation (Canadian Borrower"; and together with the U.S. Borrowers, the Borrowers"), the guarantors party thereto, the financial institutions from time-to-time party thereto as lenders, and Bank of America, N.A., as agent for the lenders (Agent"). The Loan Agreement provides a senior secured asset-based revolving credit facility that has a maturity date of June 23, 2020 and replaces the Company's existing credit facility. At closing, there were no direct borrowings and approximately $1.7 million of letters of credit outstanding under the facility. The Loan Agreement provides for borrowing capacity in an amount up to $150 million, including a Canadian sub-facility up to $50 million, and a borrowing base that is computed quarterly, monthly or weekly, as applicable, and is composed of the Borrowers' accounts receivable, inventory and eligible cash, subject to certain reserves. Under the Loan Agreement, the Borrowers have an option to expand the revolving credit facility by up to $150 million in the aggregate subject to the terms and conditions of the Loan Agreement, including the willingness of existing or new lenders to assume such increased amount. The revolving credit facility includes a $35 million sublimit for U.S. letters of credit and a $15 million sublimit for Canadian letters of credit and also includes a U.S. swingline subfacility of up to $10 million and a Canadian swingline subfacility of up to $5 million. The Borrowers may voluntarily reduce or terminate the revolver commitments and prepay outstanding loans under the Loan Agreement, in whole or in part, at any time, subject to customary administrative provisions. The revolving credit facility may be used for working capital and other general corporate purposes. The revolving credit facility bears interest based on the daily balance outstanding, for loans to the U.S. Borrowers, at the U.S. base rate plus an applicable margin (varying from 0.25% to 0.75%) or at LIBOR plus an applicable margin (varying from 1.25% to 1.75%) or, for loans to the Canadian Borrower, at the Canadian prime rate plus an applicable margin (varying from 0.25% to 0.75%) or at the Canadian BA rate plus an applicable margin (varying from 1.25% to 1.75%). The applicable margins are calculated quarterly and vary based on the average daily availability of the aggregate borrowing base as set in the Loan Agreement. The U.S. base rate is based on the greater of (i) the U.S. prime rate, (ii) the federal funds rate, plus 0.50%, and (iii) LIBOR for a 30 day interest period, plus 1.0%; and the Canadian prime rate is based on the greater of (i) the Canadian prime rate, (ii) the Bank of Canada overnight rate, plus 0.50%, and (iii) the Canadian BA rate for a one month interest period, plus 1.0%. The revolving credit facility also carries a commitment fee equal to the available but unused borrowing at 0.25% per annum. The obligations under the Loan Agreement are guaranteed by the Company and the Company's existing and future domestic and Canadian subsidiaries, subject to certain exceptions, and such obligations are secured by a first priority lien on substantially all of the assets of the Borrowers and the guarantors, as applicable. The terms of the Loan Agreement require the Company to maintain a consolidated fixed charge coverage ratio of 1.0:1.0 on a trailing four-quarter basis if a default or an event of default occurs under the Loan Agreement or availability under the Loan Agreement falls below the greater of 10% of the aggregate borrowing base and $12.5 million. The Loan Agreement also includes customary representations and warranties, affirmative and negative covenants and events of default.
Guess? Inc. Presents at Piper Jaffray 35th Annual Consumer Conference, Jun-09-2015 04:05 PM
Jun 3 15
Guess? Inc. Presents at Piper Jaffray 35th Annual Consumer Conference, Jun-09-2015 04:05 PM. Venue: New York Palace Hotel, New York, New York, United States. Speakers: Michael Relich, Chief Operating Officer, Sandeep Reddy, Chief Financial Officer and Chief Accounting Officer.
Guess? Inc. Announces Consolidated Earnings Results for the First Quarter Ended May 2, 2015; Provides Earnings Guidance for the Second Quarter of Fiscal 2016 Ending August 1, 2015 and Fiscal Year Ending January 30, 2016
Jun 2 15
Guess? Inc. announced consolidated earnings results for the first quarter ended May 2, 2015. For the first quarter of fiscal 2016, the Company recorded net earnings attributable to company of $3.3 million, compared to a net loss of $2.1 million for the first quarter of fiscal 2015. Diluted earnings per share were $0.04, compared to diluted loss per share of $0.03 for the prior-year quarter, an increase of $0.07 per share. Total net revenue for the first quarter of fiscal 2016 decreased 8.4% to $478.8 million, from $522.5 million in the prior-year quarter. In constant currency, total net revenue was roughly flat compared to the same prior-year period. Operating earnings for the first quarter of fiscal 2016 was $4.4 million (including a $1.2 million favorable currency translation impact), compared to an operating loss of $2.0 million in the prior-year period, an increase of $6.3 million. Earnings before income tax expense were $6,816,000 against loss of $3,216,000 a year ago. Net cash provided by operating activities $9,135,000 against net cash used in operating activities of $233,000 a year ago. Free cash flow for the first quarter was a use of $2 million compared to a use of $17 million in the prior year first quarter, driven by changes in working capital, higher earnings and lower capital expenditures compared to the same quarter last year.
The company's expectations for the second quarter of fiscal 2016 ending August 1, 2015, are as follows: Consolidated net revenues are expected to decline between 3.5% and 1.5% in constant currency. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 9.5%, for a net decline between 13.0% and 11.0%. Operating margin is expected to be between 3.0% and 4.0% and includes 170 basis points of currency headwind. Diluted earnings per share are expected to be in the range of $0.12 to $0.16. The estimated impact on earnings per share of the currency headwinds is roughly $0.12.
The company updated its outlook for the fiscal year ending January 30, 2016, which is now as follows: consolidated net revenues are expected to range between a decline of 1.5% and an increase of 0.5% in constant currency. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 7%, for a net decline between 8.5% and 6.5%. Operating margin is expected to be between 5.0% and 6.0% and includes 130 basis points of currency headwind. Diluted earnings per share are expected to be in the range of $0.86 to $1.02. The estimated impact on earnings per share of the currency headwinds is roughly $0.45. For the full year, company plan to manage the CapEx carefully and opportunistically by investing between $55 million and $65 million in capital expenditures, net of tenant allowances. The company is planning the full year with a 34% tax rate, and the guidance assumes foreign currencies remain roughly at prevailing rates.