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Mothers Work Net Up for the Year

NEW YORK — Debt refinancing charges caused a pregnant pause in the profitability of maternity retailer Mothers Work Inc. in the fourth quarter, but year-end income more than tripled.<br><br>The Philadelphia-based specialty retailer, which...

NEW YORK — Debt refinancing charges caused a pregnant pause in the profitability of maternity retailer Mothers Work Inc. in the fourth quarter, but year-end income more than tripled.

This story first appeared in the December 2, 2002 issue of WWD.  Subscribe Today.

The Philadelphia-based specialty retailer, which operates a chain of 909 doors under the nameplates Motherhood Maternity, A Pea in the Pod and Mimi Maternity, said its loss mounted to $1.8 million, or 38 cents a diluted share, for the three months ended Sept. 30. That compared with a loss of $186,000, or 5 cents, in the year-ago fourth quarter. Excluding a $3 million one-time refinancing charge, the retailer reported income of $1.3 million, or 24 cents.

“During fiscal 2002, we fully paid down our line of credit borrowings, which began the fiscal year at $32.2 million, and strengthened our balance sheet significantly through our strong cash flow from operations during the year and the proceeds of our August 2002 debt and common equity offerings,” Rebecca Matthias, president and chief operating officer, said in a statement.

Net sales in the quarter expanded 20.2 percent to $111.3 million from $92.6 million and rose 6 percent on a comparable-store basis. The company said the sales increase was driven by new stores, including the integration of its October 2001 iMaternity acquisition, as well as customer response to its merchandise and the merchandise replenishment process.

In connection with this refinancing, MW’s incurred charges related to the early repayment of the company’s 12 5/8 percent senior notes and the purchase of the Series A and Series C preferred stock of approximately $3 million, including $2.6 million of noncash charges, which reduced earnings by 71 cents.

Looking ahead, the company said it is targeting net sales for fiscal 2003 of $495 million to $500 million, and fiscal 2003 earnings per share of between $2.56 and $2.61.

For the year, income was $6.8 million, or $1.61 a diluted share, compared with net income in 2001 of $2 million, or 55 cents, a 247.3 percent increase. Excluding the charge, net income was $9.9 million, or $2.32. Net sales for the year increased 16.7 percent to $453.2 million from $388.3 million, and expanded 2.2 percent on a comp basis.

NEW YORK — Debt refinancing charges caused a pregnant pause in the profitability of maternity retailer Mothers Work Inc. in the fourth quarter, but year-end income more than tripled.

The Philadelphia-based specialty retailer, which operates a chain of 909 doors under the nameplates Motherhood Maternity, A Pea in the Pod and Mimi Maternity, said its loss mounted to $1.8 million, or 38 cents a diluted share, for the three months ended Sept. 30. That compared with a loss of $186,000, or 5 cents, in the year-ago fourth quarter. Excluding a $3 million one-time refinancing charge, the retailer reported income of $1.3 million, or 24 cents.

“During fiscal 2002, we fully paid down our line of credit borrowings, which began the fiscal year at $32.2 million, and strengthened our balance sheet significantly through our strong cash flow from operations during the year and the proceeds of our August 2002 debt and common equity offerings,” Rebecca Matthias, president and chief operating officer, said in a statement.

Net sales in the quarter expanded 20.2 percent to $111.3 million from $92.6 million and rose 6 percent on a comparable-store basis. The company said the sales increase was driven by new stores, including the integration of its October 2001 iMaternity acquisition, as well as customer response to its merchandise and the merchandise replenishment process.

In connection with this refinancing, MW’s incurred charges related to the early repayment of the company’s 12 5/8 percent senior notes and the purchase of the Series A and Series C preferred stock of approximately $3 million, including $2.6 million of noncash charges, which reduced earnings by 71 cents.

Looking ahead, the company said it is targeting net sales for fiscal 2003 of $495 million to $500 million, and fiscal 2003 earnings per share of between $2.56 and $2.61.

For the year, income was $6.8 million, or $1.61 a diluted share, compared with net income in 2001 of $2 million, or 55 cents, a 247.3 percent increase. Excluding the charge, net income was $9.9 million, or $2.32. Net sales for the year increased 16.7 percent to $453.2 million from $388.3 million, and expanded 2.2 percent on a comp basis.