Destination Maternity Announced Operat Results for The Fourth Quarter and Full Fiscal 2013

Destination Maternity Corporation, the world's leading maternity apparel retailer, announced operating results for the fourth quarter and full year fiscal 2013, which ended September 30, 2013. 

The Company's diluted earnings per share for its full year fiscal 2013 increased 22% compared to the prior year, and exceeded the top end of its July 25, 2013 earnings guidance range. 

Full Year Fiscal 2013 Financial Results
GAAP net income for fiscal 2013 was $23.9 million, a 24% increase compared to GAAP net income of $19.4 million for fiscal 2012.  GAAP diluted earnings per share for fiscal 2013 was $1.78, a record for the Company and a 22% increase compared to $1.46 for fiscal 2012.  The fiscal 2013 GAAP diluted earnings per share of $1.78 exceeded the top end of the Company's prior guidance range of $1.68-$1.74 provided in its July 25, 2013 press release.

GAAP net income for fiscal 2013 includes a reduction of state income tax expense, net of federal expense, of $1.2 million, or $0.09 per share (diluted), for the recognition of tax benefits in the fourth quarter resulting from recently enacted changes in certain state income tax regulations. 

Non-GAAP Adjusted diluted earnings per share, which is presented in the financial tables at the end of this press release and excludes this reduction of state income tax expense, was $1.69 for fiscal 2013, a 16% increase compared to $1.46 for fiscal 2012.

Adjusted EBITDA was $54.0 million for fiscal 2013, an 8% increase compared to the $49.9 million of Adjusted EBITDA for fiscal 2012.  Adjusted EBITDA is defined in the financial tables at the end of this press release.

Net sales for fiscal 2013 decreased 0.2% to $540.3 million from $541.5 million for fiscal 2012.  The slight decrease in sales for fiscal 2013 compared to fiscal 2012 resulted primarily from decreased sales related to the Company's continued efforts to close underperforming stores, and decreased sales due to the closure of all of the Company's remaining leased departments within Babies"R"Us stores during the month of October 2012, substantially offset by an increase in comparable sales and increased sales from the Company's licensed relationship.

Comparable sales (which include internet sales) for fiscal 2013 increased 2.6% compared to a comparable sales decrease of 0.3% for fiscal 2012.  Adjusting for the calendar timing shift, as described later in this press release, the Company's adjusted comparable sales increased 3.2% for fiscal 2013 and decreased 0.8% for fiscal 2012.  The Company's Internet sales, which are included in the Company's comparable sales, increased 13% for fiscal 2013, on top of a 26% increase for fiscal 2012.