NEW YORK — The Warnaco Group Inc. continued to bleed red in September as reorganization costs more than offset operating income.
In a Dec. 2 statement of operations filed with the U.S. Bankruptcy Court for the Southern District of New York and released by the Securities and Exchange Commission Tuesday, for the month ended Oct. 5, Warnaco registered a net loss of $12.8 million.
Net revenues for the New York-based manufacturer accrued to $134 million.
Operating income for the month was $3.3 million, but $11.2 million in costs for reorganization items pushed the company to an operating loss of $7.8 million. An income tax provision of $1.7 million and $1.3 million in interest expense also eroded the bottom line.
In better news, operations from Warnaco’s debtor entities did post earnings before interest, taxes, depreciation, amortization and reorganization items (EBITDAR) of $12 million on revenues of $134 million.
For the nine months ended Oct. 5, Warnaco recorded a net loss of $905.4 million on revenues of $949.6 million. Operating income of $28.4 million was more than erased by $76.2 million in reorganization costs. That pushed the company to sustain an operating loss of $47.8 million.
Other items negating earnings were $14.7 million in interest expenses, as well as a cumulative $787.8 million charge related to a change in accounting principle. As a result, a tax benefit of $3.3 million could do little to stanch the bleeding.
EBITDAR for the period for the operations of Warnaco’s debtor entities came to $101.6 million on revenues of $1.14 billion.
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