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RAPAPORT... J. C. Penney Company Inc. filed an unusual preliminary financial announcement for its first quarter that ended on May 4. The financial closing process is not yet completed, but the retailer provided select information in connection with its proposed senior secured term loan financing transaction. Full quarterly results are expected on May 16.
Unaudited results for the first quarter revealed that JCPenney's sales declined 16.4 percent year on year to $2.6 billion, while same-store sales fell 16.6 percent. These declines were partially attributed by the company to construction activities in connection with the transformation of the home departments in 505 JCPenney stores, according to the firm.
The company noted that results for the quarter also reflected its prior pricing and marketing strategies, which have since been reversed.
JCPenney estimated that cash and cash equivalents as of May 4 were approximately $821 million and total debt was $3.8 billion, including funds outstanding from its revolving credit facility, long-term debt and capital leases and notes.
Shares in JCPenney closed 3 percent lower on the New York Stock Exchange today at $16.40; however, following the preliminary announcement, the stock was up 2 percent in after hours trading. Shares were trading at $33.58 one year ago today.
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