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BRIEF-Sears Holdings sees net loss of $595 mln - $525 mln in Q3
November 8, 2017 / 2:00 PM / 12 days ago

BRIEF-Sears Holdings sees net loss of $595 mln - $525 mln in Q3

Nov 8 (Reuters) - Sears Holdings Corp

* Q3 revenue $3.7 billion

* Expects Q3 net loss attributable to Sears Holdings’ shareholders to improve by approximately $190 million​

* Entered deal with PBGC to release about 140 sears properties from ring-fence arrangement for $407 million of contributions to pension plans​

* Says ‍“retail environment remains challenging”, with continued pressures on sales​

* Q3 2017 adjusted EBITDA is expected to improve by approximately $100 million​

* Paid down outstanding borrowings under term loan maturing in June 2018 by $205 million during Nov, reducing outstanding balance to about $520 million​

* Total comparable store sales declined 15.3% during quarter​

* Paid down borrowings under term loan maturing in June of 2018 by $205 million during Nov reducing outstanding balance to about $520 million​

* Qtrly ‍KMart comparable store sales decreased 13.0%, while Sears comparable store sales declined 17.0%​

* Says ‍“we continue to review our capital structure to maximize our additional financial flexibility​”

* Will continue to evaluate alternatives to meaningfully reduce cash interest payments in 2018​

* Expect a net loss attributable to Sears Holdings’ shareholders of between $595 million and $525 million in Q3 of 2017​

* At October 28, 2017, co had utilized approximately $805 million of its $1.5 billion revolving credit facility due in 2020​

* Number of participants in company’s pension plans has been reduced from about 400,000 to about 100,000​

* Also required to make approximately $37 million quarterly payment due to pension plans in December 2017​

* Following making of $407 million contribution, co to be relieved of obligation to make further contributions to pension plans for about two yrs

* Merchandise inventories were $3.5 billion at October 28, 2017, compared to $5.0 billion at October 29, 2016​

* Commenced consent solicitation to amend “borrowing base” definition in indenture relating to 6 5/8% senior secured notes due 2018​

* Reduction in merchandise inventories at Oct 28 was driven partly by having over 400 fewer stores in operation compared to prior year

* Total long-term debt (including current portion of long-term debt and capital lease obligations) was $3.3 billion at October 28, 2017​

* Company’s total cash balances were $354 million at October 28 2017​

* As a result of Seritage & JV transactions, adjusted EBITDA for Q3 included additional rent expense of about $40 million Source text for Eikon: Further company coverage:

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