Burlington Stores, Inc. (BURL) has reported a 39.60 percent jump in profit for the quarter ended Apr. 29, 2017. The company has earned $52.37 million in the quarter, compared with $37.51 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $56.59 million, or $0.79 a share compared with $41.61 million or $0.57 a share, a year ago.
Revenue during the quarter grew 4.91 percent to $1,352.22 million from $1,288.88 million in the previous year period. Gross margin for the quarter expanded 74 basis points over the previous year period to 41.10 percent. Total expenses were 93.57 percent of quarterly revenues, down from 94.50 percent for the same period last year. This has led to an improvement of 92 basis points in operating margin to 6.43 percent.
Operating income for the quarter was $86.89 million, compared with $70.93 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $136.84 million compared with $120.97 million in the prior year period. At the same time, adjusted EBITDA margin improved 73 basis points in the quarter to 10.12 percent from 9.39 percent in the last year period.
Tom Kingsbury, Chief Executive Officer stated, "We are pleased with our expansion in operating margin as well as our 39% increase in Adjusted Net Income per Share in the first quarter. As previously disclosed, our sales performance was negatively impacted by the delayed tax refunds experienced in February. Importantly, momentum built throughout the quarter with combined March and April comparable sales rising 4.5%. It is worth noting that May is off to a solid start."
For financial year 2017, Burlington Stores, Inc. expects revenue to grow in the range of 7.30 percent to 8.10 percent. The company projects diluted earnings per share to be in the range of $3.86 to $3.96 on adjusted basis.
For the second-quarter, Burlington Stores, Inc. expects revenue to grow in the range of 6.70 percent to 7.70 percent. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.46 to $0.50.
Operating cash flow declines
Burlington Stores, Inc. has generated cash of $28.58 million from operating activities during the quarter, down 14.54 percent or $ 4.86 million, when compared with the last year period.
The company has spent $52.77 million cash to meet investing activities during the quarter as against cash outgo of $30.34 million in the last year period.
The company has spent $27.82 million cash to carry out financing activities during the quarter as against cash inflow of $4.08 million in the last year period.
Cash and cash equivalents stood at $29.59 million as on Apr. 29, 2017, up 5.30 percent or $1.49 million from $28.10 million on Apr. 30, 2016.
Debt comes down
Burlington Stores, Inc. has recorded a decline in total debt over the last one year. It stood at $1,153.88 million as on Apr. 29, 2017, down 14.63 percent or $197.75 million from $1,351.63 million on Apr. 30, 2016. Interest coverage ratio improved to 6.43 for the quarter from 4.74 for the same period last year.
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