The Gymboree Corporation reported consolidated financial results for the third fiscal quarter ended October 27,2012.
For the third quarter of the fiscal year ending February 2,2013("fiscal 2012"),net sales were$311.5 million,an increase of 2.8%compared to$303.1 million in net sales for the third quarter of the fiscal year ended January 28,2012("fiscal 2011").Comparable store sales for the third quarter of fiscal 2012 decreased 4%compared to the third quarter of fiscal 2011.
Gross profit for the third quarter of fiscal 2012 was$125.6 million,or 40.3%of net sales,compared to$130.8 million,or 43.2%of net sales,for the third quarter of fiscal 2011.Excluding purchase accounting adjustments of$3.1 million and$3.4 million for the third quarter of fiscal 2012 and the third quarter of fiscal 2011,respectively,relating to the November 2010 acquisition of the Company by investment funds sponsored by Bain Capital Partners,LLC(the"Acquisition"),adjusted gross profit was$128.7 million,or 41.3%of net sales,and$134.2 million,or 44.3%of net sales,for the third quarter of fiscal 2012 and the third quarter of fiscal 2011.
SG&A expense for the third quarter of fiscal 2012 was$99.0 million,or 31.8%of net sales,compared to$99.4 million,or 32.8%of net sales,in the third quarter of the prior year.Results for the third quarter of fiscal 2012 and fiscal 2011 include$5.3 million and$5.4 million,respectively,of additional costs resulting from the Acquisition,including the effect of purchase accounting adjustments.
Also included in the third quarter of fiscal 2011 was a$7.2 million charge resulting from a termination fee incurred to terminate a master franchisee in China.Excluding these charges,adjusted SG&A expense for the third quarter of fiscal 2012 and fiscal 2011 was$93.8 million,or 30.1%of net sales,and$86.8 million,or 28.6%of net sales,respectively,which represents an increase of 150 basis points over fiscal 2011.
Operating income for the third quarter of fiscal 2012 was$26.6 million compared to$31.4 million for the same period last year.The decrease in operating income primarily resulted from lower gross profit margins and,to a lesser extent,from SG&A deleveraging due to the comparable store sales decrease of 4%.
Net income attributable to the Company before interest(income)expense,income tax benefit and depreciation and amortization,adjusted for other items("Adjusted EBITDA"),for the third quarter of fiscal 2012 decreased 22.6%to$46.9 million,compared to$60.6 million for the third quarter of the prior year.Adjusted EBITDA is not a performance measure under U.S.generally accepted accounting principles("GAAP").
