Earnings Briefing and Coverage - American Apparel

LONDON, August 25, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings briefing and coverage on American Apparel Incorporation (NYSE MKT: APP). The company featured in the headlines on Monday, August 18, 2014 after declaring its second quarter 2014 results. For Q2 2014, the company reported net sales of $162.40 million, compared with net sales of $162.24 million in the second quarter of 2013, while American Apparel Inc.'s gross profit declined to $82.39 million, from $83.87 million on Y-o-Y basis. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

For Q2 2014, American Apparel Inc. reported a GAAP net loss of $16.21 million or $0.09 per common share, compared with a GAAP net loss of $37.50 million or $0.34 per common share in the prior year quarter. Analysts from Bloomberg were expecting the company to report a net loss of $11.00 million or $0.06 per share. The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 85% to $14.56 million, from $7.88 million in the second quarter of 2013, primarily due to the increase in efficiency of the company's operations. The company's operating expenses decreased to $79.81 million from $85.78 million on Y-o-Y basis, largely due to the company's cost-cutting efforts. Further, American Apparel Inc.'s provision for income tax for the reported quarter stood at $0.50 million, compared with $0.62 million in the second quarter of 2013. The free research on APP can be downloaded as in PDF format at:

http://www.Investor-Edge.com/APPFreeReport

The company's gross margin declined to 50.7% from 51.7% on Y-o-Y basis, primarily due to a shift in the sales mix from retail and online sales to lower margin wholesale net sales. Further, the sales at the company's comparable stores and comparable online sales declined 6% and 3%, respectively, as compared to the second quarter of 2013. However, American Apparel Inc.'s wholesale net sales reported an increase of 9% as compared to the previous year quarter.  The company's other expense for Q2 2014 came at $18.3 million, down $16.7 million year-over-year, mainly due to a refinancing charge of $32.1 million in 2013, and the charge for the change in fair value of warrants of $8.2 million incurred in the second quarter of 2014 as compared to an unrealized gain of $5.5 million in the second quarter of 2013.

As of June 30, 2014, the company had $10.16 million in cash, compared with cash of $8.68 million, as on June 30, 2013. As of June 30, 2014, American Apparel Inc. had $30.6 million outstanding on its $50 million asset-backed revolving credit facility and $16.9 million of availability for additional borrowings under the credit facility. As of August 1, 2014, the company had $22.9 million available for borrowing. Sign up and read the free analyst's notes on APP at:

http://www.Investor-Edge.com/APP-25082014

In its guidance for FY 2014, the Los Angeles, California-based apparel company expects adjusted EBITDA in the range of $40 million to $45 million.

Stock Performance 

On Tuesday, August 19, 2014, a day after the earnings release, shares in American Apparel Inc. surged 9.09% to end the day at $1.02. On the last close, Friday, August 22, 2014, shares of the company vacillated between $1.01 and $1.08 during the session, before closing the session 2.94% higher at $1.05. A total of 2.22 million shares were traded, much below its three months average volume of 5.40 million shares. Over the previous three trading sessions, shares in American Apparel Inc. have advanced 2.94%. However, the stock has fallen by 2.78% in the last one month and 14.63% from the beginning of 2014. Shares in American Apparel Inc. are trading above their 50-day and 200-day moving averages of $0.91 and $0.88, respectively. Further, the company's stock has a Relative Strength Index (RSI) of 60.48. Visit Investor-Edge and access the latest research on APP at:

http://www.Investor-Edge.com/APPEarningsCoverage

Insider Trading 

In the last one month, American Apparel Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on APP is available at:

http://www.Investor-Edge.com/APPInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

===============

EDITOR'S NOTES:

===============

1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by Rohit Tuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

4. If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at pubco [at] http://www.investor-edge.com.

5. For any urgent concerns or inquiries, please contact us at compliance [at] http://www.investor-edge.com.

6. Are you a public company? Would you like to see similar coverage on your company? Send us a full investors' package to research [at] http://www.investor-edge.com for consideration.

COMPLIANCE PROCEDURE

Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by Rohit Tuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.

NOT FINANCIAL ADVICE

Investor-Edge makes no warranty, expressed or implied, as to the accuracy or completeness or fitness for a purpose (investment or otherwise), of the information provided in this document. This information is not to be construed as personal financial advice. Readers are encouraged to consult their personal financial advisor before making any decisions to buy, sell or hold any securities mentioned herein.

NO WARRANTY OR LIABILITY ASSUMED

Investor-Edge is not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by Investor-Edge whatsoever for any direct, indirect or consequential loss arising from the use of this document. Investor-Edge expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Investor-Edge does not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE Investor-Edge

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED