Burlington Coat copes with market; interest expense down $1.4 million

By Sahara Marte

New York, June15 - Burlington Coat Factory Investments Holdings, Inc. sees maintaining liquidity as essential to providing desirable products to customers and coping with competitive pressures, Todd Weyhrich, chief financial officer and executive vice president, said during the company's first quarter earnings conference call.

Burlington Coat Factory has remained in compliance with its financial covenants and has adjusted its interest cap agreement to fair value. The company has a $950.5 million term B loan due February 2017.

The company decreased its interest expense by $1.4 million to $29.9 million in the first quarter and has available credit of $472.4 million.

For the first quarter, Burlington Coat Factory increased net sales by $53.3 million to $982.4 million, 5.7% more than the same period of 2011. Its sales increased $5.8 million and generated $53.7 million in cash.

The increase was driven by improved merchandise and continuing efforts to create a better customer experience, Weyhrich said.

Adjusted EBITDA decreased 13% to $69.9 million, while gross margin decreased 100 bps. Burlington Coat Factory attributed the lower figures to increases in selling costs and administrative costs. It expects margins to match historical levels by the spring season.

"We continue to build and manage this business for the long-term with our focus on delivering financial performance that will maximize the value of the company over the next several years," Weyhrich added.

Burlington Coat Factory is a Burlington, N.J.-based discount retailer.

© 2015 Prospect News.
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