EXHIBIT 99.1

 

 

FOR IMMEDIATE RELEASE

 

THE CHILDREN’S PLACE REPORTS FOURTH QUARTER AND FISCAL 2012 RESULTS

 

Issues Guidance for First Quarter and Fiscal 2013

 

Secaucus, New Jersey – March 26, 2013 – 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.

 

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PLCE – Fourth Quarter and Fiscal Year 2012 Financial Results

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Net Income and EPS – con’t

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 on a GAAP basis		$	0.80			$	0.93			$	2.61			$	2.90
Impact of the change in method of accounting for inventory		$	0.13			$	0.04			$	-0.03			$	0.11
Earnings per diluted share under the retail method		$	0.93			$	0.97			$	2.58			$	3.01
Add back: Accelerated depreciation for DC closures and remodels; restructuring and other costs		$	0.22			$	0.03			$	0.65			$	0.03
Remove: Settlement of state tax audits; reversal of prior year's US tax accrual on foreign earnings			-			$	-0.13				-			$	-0.12
Non-GAAP earnings per diluted share under the retail method		$	1.15			$	0.87			$	3.23			$	2.92

 

2012 Results Reported under the Retail Method

 

Fourth Quarter 2012

·

Net sales, which included $21.6 million of sales in the 53rd week, increased 11.3% to $509.2 million, compared to $457.5 million the prior year.

·

Comparable retail sales, which excluded the 53rd 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

·

Net sales, which included the 53rd week, increased 5.5% to $1,809.5, compared to $1,715.9 million the prior year.

·

Comparable retail sales, which excluded the 53rd week, increased 2.0% compared to the prior year.

·

Gross profit increased 4.0% to $690.5 million, and deleveraged 50 basis points to 38.2% of sales.

·

Non-GAAP selling, general and administrative expense increased 6.2% to $507.0 million, and deleveraged 20 basis points to 28.0% of sales.

 

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PLCE – Fourth Quarter and Fiscal Year 2012 Financial Results

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2012 Results Reported Under the Retail Method – con’t

 

Fiscal 2012 Results – con’t

·

Non-GAAP operating income increased 3.0% to $114.3 million, and deleveraged 20 basis points to 6.3% of sales.

·

Non-GAAP net income was $78.3 million, a 4.5% increase compared to prior year.

·

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.

 

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PLCE – Fourth Quarter and Fiscal Year 2012 Financial Results

Page 4

 

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.

 

Contact: Jane Singer, Vice President, Investor Relations, (201) 453-6955

 

(Tables Follow)

 

 

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 administrative expenses			136,089				121,088				510,918				477,425
Asset impairment charges			215				461				2,284				2,208
Other costs			6,622				-				11,088				-
Depreciation and amortization			19,712				19,851				77,435				74,573
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 taxes			6,875				(2,140	)			26,452				30,408
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 administrative expenses			136,089				121,088				510,918				477,425
Asset impairment charges			215				461				2,284				2,208
Other costs			6,622				-				11,088				-
Depreciation and amortization			19,712				19,851				77,435				74,573
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 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 administrative expenses			136,089				121,088				510,918				477,425
Restructuring severance/miscellaneous costs			-				-				2,854				-
Legal Settlement			-				-				1,087				-
Non-GAAP Selling, general and administrative expenses			136,089				121,088				506,977				477,425
Asset impairment charges			215				461				2,284				2,208
Store Impairment due to early termination			-				-				1,250				-
Non-GAAP Asset impairment charges			215				461				1,034				2,208
Other costs			6,622				-				11,088				-
DC exit costs			6,622				-				11,088				-
Non-GAAP Other costs			-				-				-				-
Depreciation and amortization			19,712				19,851				77,435				74,573
DC exit costs and Canadian store remodels			2,019				922				9,335				1,032
Non-GAAP Depreciation and amortization			17,693				18,929				68,100				73,541
Operating income			30,053				22,561				88,736				110,007
Non-GAAP Operating income			38,694				23,483				114,350				111,039
Interest (expense), net			84				(35	)			(20	)			(690	)
Income before taxes			30,137				22,526				88,716				109,317
Non-GAAP Income before taxes			38,778				23,448				114,330				110,349
Provision for income taxes			8,019				(1,700	)			25,971				32,092
Non-GAAP Provision for income taxes			11,475				1,579				35,996				35,402
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 adjusted)				(As adjusted)				(As adjusted)				(As 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 administrative expenses			510,918				477,425				456,558				456,338				467,730
Asset impairment charges			2,284				2,208				2,713				2,200				6,491
Other costs			11,088				-				-				-				213
Depreciation and amortization			77,435				74,573				71,640				71,447				71,410
Operating income			89,715				105,443				129,210				122,209				130,252
Interest (expense), net			(20	)			(690	)			(1,530	)			(5,731	)			(4,939	)
Income from continuing operations before income taxes			89,695				104,753				127,680				116,478				125,313
Provision for income taxes			26,452				30,408				47,920				32,743				46,147
Income from continuing operations			63,243				74,345				79,760				83,735				79,166
(Loss) from discontinued operations, net of income taxes			-				-				(463	)			(487	)			8,435
Net income		$	63,243			$	74,345			$	79,297			$	83,248			$	87,601
Basic earnings per common share
Income from continuing operations		$	2.63			$	2.92			$	2.94			$	2.94			$	2.70
(Loss) from discontinued operations			-				-				(0.02	)			(0.02	)			0.29
Net income		$	2.63			$	2.92			$	2.93			$	2.92			$	2.99
Basic weighted average common shares outstanding			24,092				25,459				27,084				28,463				29,307
Diluted earnings per common share
Income from continuing operations		$	2.61			$	2.90			$	2.91			$	2.92			$	2.68
(Loss) from discontinued operations			-				-				(0.02	)			(0.02	)			0.29
Net income		$	2.61			$	2.90			$	2.89			$	2.90			$	2.96
Diluted weighted average common shares outstanding			24,276				25,668				27,436				28,707				29,548

 

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 2,				October 27,				July 28,				April 28,				January 28,				October 29,				July 30,				April 30,
		2013				2012				2012				2012				2012				2011				2011				2011
						(As adjusted)				(As adjusted)				(As adjusted)				(As adjusted)				(As adjusted)				(As adjusted)				(As 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 administrative expenses			136,089				131,875				120,671				122,283				121,088				127,229				112,446				116,662
Asset impairment charges			215				539				280				1,250				461				369				980				398
Other costs			6,622				570				3,062				834				-				-				-				-
Depreciation and amortization			19,712				23,023				17,482				17,218				19,851				18,493				18,478				17,751
Operating income (loss)			25,919				53,526				(26,790	)			37,060				21,220				51,935				(14,330	)			46,618
Interest (expense), net			84				(23	)			(30	)			(51	)			(35	)			(70	)			(314	)			(271	)
Income (loss) before taxes			26,003				53,503				(26,820	)			37,009				21,185				51,865				(14,644	)			46,347
Provision (benefit) for income taxes			6,875				16,198				(8,896	)			12,275				(2,140	)			19,728				(5,757	)			18,577
Net income (loss)		$	19,128			$	37,305			$	(17,924	)		$	24,734			$	23,325			$	32,137			$	(8,887	)		$	27,770
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 adjusted)				(As adjusted)				(As adjusted)				(As 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 administrative expenses			510,918				477,425				456,558				456,338				467,730
Restructuring severance/miscellaneous costs			2,854				-				-				2,805				3,056
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 related to stock options			-				-				(619	)			(3,532	)			-
Non-GAAP Selling, general and administrative expenses			506,977				477,425				457,177				455,011				478,606
Asset impairment charges			2,284				2,208				2,713				2,200				6,491
Store Impairment			1,250				-				-				852				4,902
Non-GAAP Asset impairment charges			1,034				2,208				2,713				1,348				1,589
Other costs			11,088				-				-				-				213
DC exit costs			11,088				-				-				-				213
Non-GAAP Other costs			-				-				-				-				-
Depreciation and amortization			77,435				74,573				71,640				71,447				71,410
DC exit costs and Canadian store remodels			9,335				1,032				-				-				-
Non-GAAP Depreciation and amortization			68,100				73,541				71,640				71,447				71,410
Operating income			89,715				105,443				129,210				122,209				130,252
Non-GAAP Operating income			115,329				106,475				128,591				124,388				124,491
Interest (expense), net			(20	)			(690	)			(1,530	)			(5,731	)			(4,939	)
Settlement of employment tax audits related to stock options and other misc			-				-				72				(907	)			-
Non-GAAP Interest (expense), net			(20	)			(690	)			(1,602	)			(4,824	)			(4,939	)
Income before taxes			89,695				104,753				127,680				116,478				125,313
Non-GAAP Income before taxes			115,309				105,785				126,989				119,564				119,552
Provision for income taxes			26,452				30,408				47,920				32,743				46,147
Non-GAAP Provision for income taxes			36,477				33,718				47,644				48,869				48,308
Income from continuing operations			63,243				74,345				79,760				83,735				79,166
Non-GAAP Income from continuing operations			78,832				72,067				79,345				70,695				71,244
(Loss) from discontinued operations, net of income taxes			-				-				(463	)			(487	)			8,435
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 operations		$	3.27			$	2.83			$	2.93			$	2.48			$	2.43
(Loss) from discontinued operations			-				-				(0.02	)			(0.02	)			0.29
Net income		$	3.27			$	2.83			$	2.91			$	2.47			$	2.72
Basic weighted average common shares outstanding			24,092				25,459				27,084				28,463				29,307
Non-GAAP Diluted earnings per common share
Income from continuing operations		$	3.25			$	2.81			$	2.89			$	2.46			$	2.41
(Loss) from discontinued operations			-				-				(0.02	)			(0.02	)			0.29
Net income		$	3.25			$	2.81			$	2.88			$	2.45			$	2.70
Diluted weighted average common shares outstanding			24,276				25,668				27,436				28,707				29,548

 

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 2,				October 27,				July 28,				April 28,				January 28,				October 29,				July 30,				April 30,
		2013				2012				2012				2012				2012				2011				2011				2011
						(As adjusted)				(As adjusted)				(As adjusted)				(As adjusted)				(As adjusted)				(As adjusted)				(As 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 administrative expenses			136,089				131,875				120,671				122,283				121,088				127,229				112,446				116,662
Restructuring severance/miscellaneous costs			-				-				164				2,690				-				-				-				-
Legal Settlement			-				-				1,087				-				-				-				-				-
Non-GAAP Selling, general and administrative expenses			136,089				131,875				119,420				119,593				121,088				127,229				112,446				116,662
Asset impairment charges			215				539				280				1,250				461				369				980				398
Store Impairment due to early termination			-				-				-				1,250				-				-				-				-
Non-GAAP Asset impairment charges			215				539				280				-				461				369				980				398
Other costs			6,622				570				3,062				834				-				-				-				-
DC exit costs			6,622				570				3,062				834				-				-				-				-
Non-GAAP Other costs			-				-				-				-				-				-				-				-
Depreciation and amortization			19,712				23,023				17,482				17,218				19,851				18,493				18,478				17,751
DC exit costs and Canadian store remodels			2,019				5,958				465				893				922				110				-				-
Non-GAAP Depreciation and amortization			17,693				17,065				17,017				16,325				18,929				18,383				18,478				17,751
Operating income (loss)			25,919				53,526				(26,790	)			37,060				21,220				51,935				(14,330	)			46,618
Non-GAAP Operating income (loss)			34,560				60,054				(22,012	)			42,727				22,142				52,045				(14,330	)			46,618
Interest (expense), net			84				(23	)			(30	)			(51	)			(35	)			(70	)			(314	)			(271	)
Income (loss) before taxes			26,003				53,503				(26,820	)			37,009				21,185				51,865				(14,644	)			46,347
Non-GAAP Income (loss) before taxes			34,644				60,031				(22,042	)			42,676				22,107				51,975				(14,644	)			46,347
Provision (benefit) for income taxes			6,875				16,198				(8,896	)			12,275				(2,140	)			19,728				(5,757	)			18,577
Non-GAAP Provision (benefit) for income taxes			10,331				18,772				(7,047	)			14,422				1,139				19,759				(5,757	)			18,577
Net income (loss)			19,128				37,305				(17,924	)			24,734				23,325				32,137				(8,887	)			27,770
Non-GAAP Net income (loss)		$	24,313			$	41,259			$	(14,995	)		$	28,254			$	20,968			$	32,216			$	(8,887	)		$	27,770
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
						(As adjusted)
Assets:
Cash and short-term investments		$	209,128			$	176,655			$	209,128			$	176,655
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 current liabilities			104,045				76,039				104,045				76,039
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 stockholders' equity		$	923,410			$	866,252			$	907,289			$	850,649

 

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