American Apparel Inc., which is being acquired by investment company
Endeavor Acquisition Corp., reported a profit of $6 million in the
third quarter compared with a loss of $2.1 million in the previous
year. Revenues gained 34% to $106.5 million from $79.4 million, with
same-store sales ahead 27%.
Retail sales climbed 43 percent to $55.9 million, while wholesale sales
rose 25 percent to $50.6 million. At September 30, American Apparel had
165 stores as compared to 142 stores at September 30, 2006.
Pro Forma Adjusted Earnings Before Interest, Taxes, Depreciation,
Amortization and certain adjustments and exclusions (“pro forma
adjusted EBITDA”) equaled $17.4 million for the quarter ended September
30. That represents a 221% increase over pro forma adjusted EBITDA of
$5.4 million a year ago.
Dov Charney, Chief Executive Officer of American Apparel stated: “I
look forward to the completion of our merger with Endeavor which will
result in American Apparel becoming a public company, and will allow
our employees and the public to share in the future success of our
business.”
Endeavor agreed in December 2006 to pay $244 million to acquire
American Apparel, as well as assume $110 million in debt. It also plans
to take the company public and expand store count.
Endeavor filed an amendment to the preliminary proxy statement related
to the proposed acquisition on Friday. Endeavor is looking to mail a
definitive proxy statement to shareholders later this month in time for
a special meeting planned for Dec. 1.
For the nine months, revenues grew 31% to $275.6 million from $209.8
million. Retail were $146.7 million, an increase of 50% over the $97.7
million of sales in the comparable period for 2006. Wholesale sales
were $128.9 million, a 15% increase over $112.1 million a year ago.
Net income reached $12.3 million in the nine months versus a $285,000
loss the prior year. Pro Forma Adjusted EBITDA equaled $45.0 million, a
106% increase over pro forma adjusted EBITDA of $21.8 million a year
ago.
