Earnings Call Excerpt
Eddie Bauer Holdings, Inc. (EBHI)
Q3 2008 Earnings Call
November 06, 2008 4:30 pm ET
Executives
Neil S. Fiske - President and Chief Executive Officer.
Marvin E. Toland - Chief Executive Officer.
Analysts
Dough Pardon - Brigade Capital
Peter Castilano - Galcier Partners
Andrew Berg - Post Advisory Group
Arthur Elap - DDCP
Ryan Rodnet - Hilink Capital
Michael Osborne - MGO Capital
J. T. King - Cape Investments
Nicholas Capuano - Imperial Capital LLC
Presentation
Operator
Please stand by, we are about to begin. Good afternoon ladies and gentlemen. Welcome to the Eddie Bauer Holdings Incorporation third quarter conference call. In the recording of this call including the question and answer session will be available for replay later today. Information on how to access the replay is available in the earnings press release issued earlier today, a copy of which has been posted at www.eddiebauer.com and now at this time, I will turn things over to our host Mr. Neil Fiske, President and CEO of Eddie Bauer. Please go ahead Sir.
Neil Fiske
Good afternoon. Thank you for joining us today to review Eddie Bauer’s third quarter results. Joining me is Marv Toland our Chief Executive Officer. We will begin with some prepared remarks and then open the lines for your questions. Let me also remind you that during this call we may make forward-looking statements relating to the company’s expectations and beliefs concerning our future business and financial performance.
These forward-looking statements are based on various assumptions and projections are subject to risks and uncertainties and actual results may differ substantially. One major additional risk is the state of US and the world economy. These forward-looking statements speak only as of the date stated and as accept, as required by the law, we do not undertake any obligation to update these forward-looking statements. For further details please refer to the risk factors and cautionary statements in our 2007 Form 10-Q and our third quarter 2008 10-Q, which are on file with the security and exchange commission.
Over all, this was a transitional quarter for us. We made the decision to scale back substantially on promotion activity and our lease productive marketing expenses, recognizing that this would put pressure on our top line. We also begin to fee the impact of the downward shift in the economy. While revenue we softer especially in the later half of September, profitability and cash flow were up substantially. Operating loss declined by 65% and improvement of $17.1 million. EBITDA was up $15.3 million excluding the fair value adjustments on the company’s convertible debt.
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