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IPO Report: Apparel Holding (Vince Holding) (VNCE)

By  +Follow November 21, 2013 3:38PM
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Apparel Holding (Vince Holding) (VNCE) is a prominent, high-growth contemporary apparel brand known for its modern, effortless style and everyday luxury essentials.

Nine other operating companies scheduled IPOs for this week.. The full IPO calendar can be found at IPOpremium.

Manager, Joint managers: Goldman Sachs, Baird, BofA Merrill Lynch, Barclays, JP Morgan,  Wells Fargo Securities.  Co-Managers: KeyBanc Capital Markets, Stifel, William Blair. S-1 filed November 12, 2013.

VNCE scheduled a $180 million IPO with a market capitalization of $681 million at a price range midpoint of $18, on the NYSE for Friday, November 22, 2013.

Overview

VNCE is a restructured new company from a company that has an accumulated deficit of almost $1 billion.  On the IPO VNCE will be a clean company paying the equivalent of normal corporate tax rates, will have $17 million in net worth, with only $175 million in long term debt.

There is a tax loss carryforward.  The new VNCE, however, will pay the old shareholders 85% of the tax savings, so for financial analysis purposes we assume VNCE is fully taxed.

For the September 2013 quarter VNCE showed strong growth in top line revenue, driven by

. An increase in the direct to consumer channel with comparable store sales growth of 16.5%,

. Opening of seven additional retail stores, and

. Increased ecommerce sales volume.  

Competitors vary across segment but include other fashion label platforms, including the Jones Group (JNY) , Fifth and Pacific (FNP) , PVH Corp (PVH) , VF Corporation (VFC) , G-III Apparel Group (GIII) and Perry Ellis.  For ratio comparisons see report for subscribers.
 

Valuation Ratios

Mrkt

Price /

Price /

Price /

Price /

% offered

annualizing July 6 mos

Cap (mm)

Sls

Erngs

BkVlue

TanBV

in IPO

Apparel Holding (Vince Holding) (VNCE)

$653

3.6

-8.2

38.4

-4.0

28%

Apparel Holding (Vince Holding) (VNCE)

$653

1.9

25.5

38.4

-4.0

28%

   annualizing Sept qtr

 

 

 

 

 

Glossary

Conclusion
The rating on VNCE is a buy.  See recent developments here.

Business

Apparel Holding

Apparel Holding Corp. is currently a diversified apparel company that designs, manufactures, and markets a collection of fashion brands which include Vince, Rebecca Taylor, David Meister, Sag Harbor, My Michelle and XOXO, along with numerous private label businesses for major retailers.

AHChas four reportable segments which include (i) Vince, contemporary fashion apparel and accessories sold under the Vince® brand name; (ii) American Recreational Products (“ARP”), recreational apparel and products sold under Kelty, Sierra Designs, Ultimate Direction, Slumberjack, Wenzel and Isis brand names; (iii) Juniors, a collection of denim, dresses and sportswear labels sold under the Rewind, My Michelle and Jolt brand name as well as private label; and (iv) Moderate, moderately priced related separates and pants covering career and casual lifestyles sold through wholesale distribution and produced under private labels, as well as under the Sag Harbor and Briggs New York brands.

 After giving effect to the IPO Restructuring Transactions, Apparel Holding Corp. will be renamed Vince Holding Corp. and its assets, liabilities, and operations will consist solely of the Vince business. An investment in VNCE is an investment in the Vince business.

Vince
Vince is a prominent, high-growth (according to the SEC filing) contemporary apparel brand known for its modern, effortless style and everyday luxury essentials.

The Vince brand was founded in 2002 with a collection of stylish women’s knits and cashmere sweaters that rapidly attracted a loyal customer base drawn to the casual sophistication and luxurious feel of its products.

Over the last decade, Vince has generated strong sales momentum and has successfully grown to include a men’s collection in 2007, expanded denim, leather and outerwear lines in 2010 and women’s footwear, which was launched through a licensing partnership in 2012.

VNCE believes that it will achieve continued success by expanding its product assortment and distributing this expanded product assortment through its premier wholesale partners in the U.S. and select international markets, as well as through its growing number of branded retail locations and on its e-commerce platform.

Seasonality
Historicaly VNCE sales are stronger the fall and holiday seasons.

History

Apparel Holding Corp. was formed to hold the assets and liabilities of Kellwood Company in connection with the February 2008 acquisition of Kellwood Company by affiliates of Sun Capital Partners, Inc. (“Sun Capital”).

In September 2012, Kellwood Company transferred the assets and liabilities of the Vince business to Vince, LLC in anticipation of this offering. Immediately prior to the consummation of this offering, affiliates of Sun Capital will engage in a series of transactions pursuant to which they will establish new corporate entities that will retain all of the non-Vince businesses after this offering.

Competition

AHC’s competitors vary across segment but include other fashion label platforms, including the Jones Group, Fifth and Pacific, PVH Corp., VF Corporation, G-III Apparel Group, Ltd. and Perry Ellis.

5% stockholders

Sun Cardinal, LLC and SCSF Cardinal, LLC, affiliates of Sun Capital.

Use of proceeds

VNCE expects to net $159 million from its IPO. Proceeds are allocated as follows:

retain $5.0 million of the net proceeds from this offering for general corporate purposes.

use the remaining $154 million of net proceeds from this offering, together with net borrowings of $169.5 million under VNCE’s new term loan facility, to repay the Kellwood Note Receivable, which would then total $323.5 million.

The final amount of the Kellwood Note Receivable will be adjusted to equal the actual net proceeds from this offering (less the $5.0 million of net offering proceeds to be retained by VNCE for general corporate purposes) and net borrowings under its new term loan facility.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for vnce
ProTradersNews
1 Apr 15 14:35:05
$VNCE: Investment Analysts' Recent Ratings Changes for Vince Holding ...: http://t.co/ABmUeH4cOZ
US Banking News
1 Apr 15 14:31:46
Investment Analysts’ Recent Ratings Changes for Vince Holding Corp $VNCE http://t.co/d2Ocu7hhVi
The Legacy News
1 Apr 15 14:27:14
Investment Analysts’ Recent Ratings Changes for Vince Holding Corp $VNCE http://t.co/HgxJzgs0Xv
Ticker Report
1 Apr 15 14:26:20
Investment Analysts’ Recent Ratings Changes for Vince Holding Corp $VNCE http://t.co/IUAaDVGuaV
US_proptrader
1 Apr 15 11:52:24
$ACTG $AUY $CDE $CPE $EGY $GFI $LL $VNCE $XBI autocharts @ http://t.co/cLiki3R0GR
David Tuzzolino
1 Apr 15 05:54:13
Broken IPO, but EPS on the upswing. Insiders are buying heavily. May be worth a closer look? http://t.co/iNtCiQ3dRR $VNCE #valueinvesting
Sleek Money
31 Mar 15 22:35:21
Vince Holding Corp Shares Up 6.3% After Insider Buying Activity $VNCE http://t.co/HgqPX7RgF1
StockNewsWires
31 Mar 15 22:25:02
$VNCE: Vince Holding Corp Shares Up 6.3% After Insider Buying Activity ...: http://t.co/tFz3TM0TQT
$
31 Mar 15 19:35:17
@jeffreycpacfa wow $vnce
danrocks
31 Mar 15 17:10:20
Right now VNCE is number 88 for the largest percentage gain out of 250 stocks. $VNCE VNCE is up +9.31% in the http://t.co/BnAqW8MPUp
danrocks
31 Mar 15 17:09:58
$VNCE VNCE Stock is number 88 for the largest percentage gain out of 250 stocks. $VNCE VNCE is up +9.31% in the last http://t.co/VCNRLrKKMd
Lucky Jimmy
31 Mar 15 16:40:06
VNCE Stock up +6.92% percent Today $VNCE High is at 18.60 and the Low 17.38 with current volume of 713,734. Vi http://t.co/8XdPCK6Xma
Lucky Jimmy
31 Mar 15 16:39:44
$VNCE VNCE up +6.92% percent Today $VNCE Stock High is at 18.60 and the Low 17.38 with current volume of 713,734. Vi http://t.co/w08tohNBn7
12Stocks.com
31 Mar 15 16:03:32
Smallcap #Stocks Performance $OFIX $CBM $MOV $PES $PQ $CBPX $VNCE $TWOU $ANR $RIGL $OXFD $AFAM $XCO more@ http://t.co/Giravo3fg9
Phil Martin
31 Mar 15 13:09:48
$VNCE http://t.co/8SVV24DXuO
12Stocks.com
31 Mar 15 13:01:43
Smallcap #Stocks Performance $OFIX $CBM $RIGL $MOV $PES $CONN $RVNC $CBPX $VNCE $AFAM $ONVO $RCPT $IMGN more@ http://t.co/Giravo3fg9
Large Void Bot
31 Mar 15 12:00:27
Popular: $CF, $LGF, $DFS, $CLH, $MA, $FTR, $BOX, $HIT, $GOOG, $EMR, $KORS, $VNCE, $BTU, $TOL
NhatMamba
31 Mar 15 11:44:48
$DANG $VNCE Short Short Short
optionsangre
31 Mar 15 11:41:25
$VNCE moving 7% on insider buy 1.7m outlay
ProTradersNews
31 Mar 15 10:56:06
$VNCE: Vince Holding Corp Trading Up 6.3% on Insider Buying Activity ...: http://t.co/rFJohmhdNX
ProVesting
31 Mar 15 10:40:04
$VNCE: Vince Holding Corp Trading 6.3% Higher Following Insider Buying ...: http://t.co/Hu2lXudaqd
The Legacy News
31 Mar 15 10:27:16
Vince Holding Corp Trading 6.3% Higher Following Insider Buying Activity $VNCE http://t.co/ooJXob81cm
Sal'sCalls
31 Mar 15 08:55:33
SOLD $VNCE @ 3.20 Stock never moved and I had breathing room to hold the options to sell at a break even. No harm no fowl.
Trader Daily
31 Mar 15 07:41:07
Insider Trading Alert - VNCE, SVVC And NGS Traded By Insiders $VNCE http://t.co/IHNgaSnLfv
Phil Martin
31 Mar 15 06:57:56
$VNCE http://t.co/KXldILd8W2
Sleek Money
31 Mar 15 04:49:51
Insider Buying: Sk Financial Services, Llc Buys 100,000 Shares of Vince Holding Corp Stock $VNCE http://t.co/gIAQUeMKof
The Legacy News
30 Mar 15 20:42:09
Insider Buying: Vince Holding Corp major shareholder Sk Financial Services, Llc Buys 100,000 Shares of Stock $VNCE http://t.co/zhS8DYlf11
US Banking News
30 Mar 15 19:28:23
Insider Buying: Vince Holding Corp major shareholder Acquires 100,000 Shares of Stock $VNCE http://t.co/ur37e6Lv6o
Ticker Report
30 Mar 15 19:26:26
Insider Buying: Vince Holding Corp major shareholder Acquires 100,000 Shares of Stock $VNCE http://t.co/bMgSjz47qN
US Banking News
30 Mar 15 19:23:23
Vince Holding Corp Major Shareholder Sk Financial Services, Llc Buys $1,708,000 in $VNCE http://t.co/Ies2elz5OP
US Consumer News
30 Mar 15 19:23:20
Vince Holding Corp Major Shareholder Sk Financial Services, Llc Buys $1,708,000 in $VNCE http://t.co/ValsNvFW32
Breaking News
30 Mar 15 19:20:04
$VNCE: Insider Buying: Vince Holding Corp major shareholder Acquires ...: http://t.co/kGeCXF2SGn
WKRB News
30 Mar 15 19:18:32
Insider Buying: Vince Holding Corp major shareholder Acquires 100,000 Shares of Stock $VNCE http://t.co/ONAcTpWMd4
InsiderTradingWire
30 Mar 15 17:36:31
FINANCIAL SK SERVICES, LLC Buys $1,708,340 Worth of $VNCE Vince Holding Corp. Common Stoc - #Form4 #InsiderTrading - http://t.co/DOF42egF7I
InsiderTradingWire
30 Mar 15 17:20:41
MARC LEDER J Buys $1,708,340 Worth of $VNCE Vince Holding Corp. Common Stoc - #Form4 #InsiderTrading - http://t.co/tQuV1zbXRR
InsiderTradingWire
30 Mar 15 17:10:24
Capital Sun Securities Offshore Fund, Ltd. Buys $1,708,340 Worth of $VNCE Vince Holding Corp. Common Stoc - ... - http://t.co/aCMIsTH3F5
InsiderTradingWire
30 Mar 15 17:05:20
CAPITAL SUN PARTNERS V LP Buys $1,708,340 Worth of $VNCE Vince Holding Corp. Common Stoc - #Form4 #InsiderTrading - http://t.co/pBdlFHgVXQ
Breaking News
30 Mar 15 17:04:01
$VNCE: New Insider Transaction on VNCE by 10%+ Owner: http://t.co/kbjS7yx8tP
Insider Alerts
30 Mar 15 17:03:15
NEW insider transaction on $VNCE reported a moment ago: http://t.co/lexpJKzVjw
Penny Stock Secret
30 Mar 15 14:22:37
This Guy Is Making Millions! Watch This Video Proof Here At http://t.co/NovWYe2RAx .. $VMO $VMW $VNCE
Capital Market Labs
28 Mar 15 19:10:19
$VNCE Earnings are Growing. Chart: http://t.co/w4NFwmElVb https://t.co/mcOVpAzWcU
Capital Market Labs
28 Mar 15 09:42:14
$XNY vs. $LULU vs. $COLM vs. $VNCE Compared Across 9 Critical Measures Chart: http://t.co/PHbPYZMux3
Capital Market Labs
28 Mar 15 08:09:17
$VNCE EPS is Accelerating. Chart: http://t.co/uPMy1WW1zf https://t.co/WBVhi8WI8o
Capital Market Labs
28 Mar 15 07:39:52
$VNCE Return on Assets is Growing. Chart: http://t.co/iJYyuRF0Ra https://t.co/WBVhi8WI8o
Thomas
27 Mar 15 20:35:58
Insiders have been scooping up lots of shares on $VNCE after their horrible earnings report 3/19.
Ticker Report
27 Mar 15 13:45:18
Vince Holding Corp’s Neutral Rating Reaffirmed at B. Riley $VNCE http://t.co/ZywvwZb7q4
US Banking News
27 Mar 15 13:44:07
Vince Holding Corp’s Neutral Rating Reaffirmed at B. Riley $VNCE http://t.co/KCnbILc3qN
Instrumental Data
27 Mar 15 13:23:08
VINCE HOLDING CORP. $VNCE 10-K now available
NASDAQ
27 Mar 15 13:16:52
$VNCE - Annual Report (10-k) http://t.co/baHsFaTogG
NASDAQ
27 Mar 15 13:16:27
$VNCE - Annual Report (10-k) http://t.co/baHsFaTogG
				
				
By  +Follow November 21, 2013 3:38PM
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