Bon-Ton Stores Q3 Loss Narrows; Backs FY Outlook - Quick Facts

(RTTNews) - Bon-Ton Stores, Inc. (BONT) reported that its third-quarter 2013 net loss narrowed to $0.9 million, or $0.05 per share, from $10.1 million, or $0.55 per share in the third quarter of fiscal 2012.

Adjusted EBITDA increased $4.4 million to $38.4 million, compared with $34.1 million in the third quarter of fiscal 2012.

Comparable store sales for the third quarter of fiscal 2013 decreased 2.8%. Net sales for the third quarter of fiscal 2013 decreased 2.6% to $651.2 million, compared with $668.7 million for the third quarter of fiscal 2012. Total sales for the quarter declined to $666.57 million from last year's $683.12 million.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.29 per share and revenues of $674.78 million for the quarter. Analysts' estimates typically exclude special items.

Brendan Hoffman, President and Chief Executive Officer, said, "We saw meaningful improvement in our comparable store sales towards the end of the quarter. Additionally, due to strategic inventory reductions, we ended the quarter down approximately 5% on a comparable store basis. Reduced expenses contributed to 13% growth in Adjusted EBITDA which, together with lower interest expense, delivered an improved EPS. Strong performances in a number of key merchandise categories where we increased our investment lead us to believe that we are on track with our strategic initiatives. Our eCommerce business continues to grow at a healthy pace, benefiting from traffic-driving initiatives and our broader merchandise assortment."

The company reaffirming its fiscal 2013 guidance for Adjusted EBITDA in a range of $170 million to $190 million, for earnings per share in a range of $0.15 to $0.75 and for cash flow in a range of $10 million to $30 million. Analysts project annual earnings per share of $0.46.