American Apparel Reports First Quarter 2009 Financial Results
Operating loss for the first quarter of 2009 was $3.9 million, versus operating income of $4.4 million in the prior year first quarter. Operating margin for the first quarter of 2009 was negative 3.4 percent, versus 3.9 percent in the first quarter 2008.
Interest expense for the first quarter 2009 increased to $7.6 million from $3.3 million in the first quarter 2008. The increase in interest expense was largely able to be attributed to the increase in amortization of and early extinguishment of deferred financing costs primarily related to the extension of the company's prior second lien credit facility in December 2008, as well as increased collateral monitoring fees on behalf of the company's senior lender. The amortization and early extinguishment of deferred financing costs amounted to approximately $4.7 million in the first quarter of 2009, and collateral monitoring fees of approximately $0.4 million.
Net loss for the first quarter of 2009 was $9.0 million, or a loss of $0.13 per diluted share. Net income for the first quarter of 2008 was $1.1 million, or earnings of $0.02 per diluted share.
About American Apparel:
American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles. As of May 15, 2009, American Apparel employed approximately 10,000 people and operated over 265 retail stores in 19 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. American Apparel also operates a leading wholesale business that supplies high-quality T-shirts and other casual wear to distributors and screen printers.
For more information, visit www.americanapparel.net.