Mon 04/12/2021 17:52 PM
Share this article:
Premier Brands, formerly known as Nine West, reported that adjusted EBITDA swung to negative $6 million in the fourth quarter of 2020 from positive $7.5 million a year earlier on a 29% net revenue decline to $149.8 million, according to a copy of the earnings report reviewed by Reorg. The apparel and accessories wholesaler had budgeted fourth-quarter adjusted EBITDA of positive $11.2 million, and net revenue as reported underperformed budget by 32%. Continue reading as our Americas Core Credit team analyzes and reviews the Premier Brands Adjusted EBITDA and Request a Trial for access to the linked documents as well as our analysis and reporting on hundreds of other stressed, distressed and performing credits.

Full-year 2020 adjusted EBITDA turned negative to $7.6 million from positive $57.2 million in 2020 on a 37% net revenue drop to $561.5 million. Premier Brands had budgeted adjusted EBITDA of $46.7 million on 2020 net revenue of $880.6 million.

Premier Brands budgeted for $21.9 million of bank EBITDA for 2021 on $677.4 million of net sales. Gross margin for 2020 is projected to be 27.3%. The company expects to generate $21 million of free cash flow, with $23.7 million of cash provided by operations and $2.7 million of capital expenditures.

It aims to end 2021 with $78.8 million of liquidity, including $4 million of cash and $74.8 million of availability under the $175 million ABL revolver. The company reported $60.8 million of liquidity as of Dec. 31, 2020, including $2.2 million of cash and $58.6 million of revolver availability.

The $153.6 million L+800 bps first lien term loan due in 2024 was quoted at 67/71 today, according to Solve Advisors.

--Harvard Zhang
Share this article:
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2024 Reorg Research, Inc. All rights reserved.
Thank you for signing up
for Reorg on the Record!