Dillard’s underscores solid financial position
October 31, 2008,
Little Rock, Ark. – In the wake of calls by some activist shareholders for changes in management personnel, Dillard’s today issued a statement emphasizing its commitment to “maintaining our conservative financial posture.”
* Dillard’s has a $1.2 billion revolving credit facility with JP Morgan Chase as lead agent, expiring in 2012, with no financial covenants provided availability exceeds $100 million – and Dillard’s said even in November it “should well exceed $500 million.”
• After payment of its $100 million 6.625% notes maturing on Nov.15, 2008, total maturities of long-term debt over the next two years are less than $26 million.
• Dillard’s is closing at least 20 under-performing stores in 2008, resulting in over $50 million less working capital requirement “from inventory alone.” More closures are expected in 2009.
• New store openings in 2009 have been reduced to two, compared to 10 in 2008. Cap ex for 2009 will be about $120 million, vs. $204 million in 2008 and $396 million in 2007.
• At least $50 million in savings will be realized by trimming advertising and SG&A expenses this year.