Journal Entry: 13 Sept 2013
Closing price: $19.74
Shares Outstanding: 44,090,538
Market value of equity: $870.35 M
Debt: $65.00 M unused revolving credit facility
Cash & Equivalents: $39.55 M
Enterprise Value: $895.80
EBITDA less CapEx: $71.64 M
Pre-tax Cap Rate: 8.00%
- expanding domestic boutique concepts, small, flexible format, to 900 stores
- about 150% first year cash-on-cash returns in the past 3 years
- decentralized management operations allow boutique managers to personalize displays for their respective customers
- inspiration and knowledge is provided but boutiques are individualized and enhanced with their own personality
- potential direct to consumer sales; FY2012 generated increased sales by 60% w/ penetration below 2%
- three year CAGR for sales and operating income were 49% and 65%, respectively
- $100 million share repurchase program initiated
- Owen: What standards are there to executing the share repurchase program?
- CEO Neill P. Davis: "We will repurchase shares when our cash on hand, free cash flow, and debt capacity exceed the investment and other strategic needs of our business, and in our view, when the stock is trading below its intrinsic value."
I have no positions in the above company mentioned, but may initiate a long position over the next 72 hours.
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