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IPO Report: Burlington Holdings (BURL)

By  +Follow October 1, 2013 9:27AM
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Founded in 1972, Burlington Holdings ($BURL) is a national off-price retailer of high quality branded apparel, operating 503 stores, inclusive of an internet store, in 44 states and Puerto Rico.  BURL’s goal is to open 25 new stores annually

Six IPOs are scheduled for this week. The full IPO calendar can be found at IPOpremium.

Based in Burlington, NJ, FURL scheduled a $200 million IPO with a market capitalization of $1 billion at a price range mid-point of $15, for Wednesday, October 2, 2013.

S-1 filed September 19, 2013.  Manager, Joint Managers:  J.P. Morgan; Morgan Stanley; BofA Merrill;  Goldman; Wells Fargo Securities.  Co-Managers:  BMO Capital; Guggenheim; Telsey Advisory; Cowen; SunTrust Robinson Humphrey; Ramirez

Summary

Founded in 1972, BURL is a national off-price retailer of high quality branded apparel, operating 503 stores, inclusive of an internet store, in 44 states and Puerto Rico.

BURL’s goal is to open 25 new stores annually and BURL believes the U.S. market can support at least 1,000 stores, which is only a doubling from the current base of 503 stores.

BURL is highly leveraged: since February 2011 BURL paid out $636 million in cash dividends to its private equity owner, paid for by increased debt.

Valuation

Valuation Ratios

Mrkt

Price /

Price /

Price /

Price /

% offered

annualizing june 6 mos

Cap (MM)

Sls

Erngs

BkVlue

TanBV

in IPO

Burlington Holdings

$1,074

0.3

42.5

-4.0

-0.7

19%

Seasonal business, p/e based on ’12 yr

 

 

 

 

 

P/E adjusted for interest savings from debt repayment

38.4

 

 

 

Glossary

BURL is highly leveraged (big debt burden), with a negative price-to-book value of -4.  It operates on razor then margins.  For the year ended December 2012, profit was only .6% of sales.

As demonstrated by J.C. Penny, the retail channel can be unforgiving when mistakes are made.

Conclusion

Neutral to positive because investors like the10% sales increase for the June six months.

Business

Founded in 1972, BURL is a national off-price retailer of high quality branded apparel, operating 503 stores, inclusive of an internet store, in 44 states and Puerto Rico.

BURL believes it is a market leader in the fast growing off-price retail channel.

Off-Price retail channel

BURL offers merchandise using an Every Day Low Price (“EDLP”) model with savings up to 60-70% off department and specialty store regular prices.  BURL features merchandise from over 3,500 vendors, with a focus on major nationally-recognized brands.

The average store size is 80,000 square feet, which is two to three times the size of the largest off-price competitors’ stores. BURL’s  larger store size has allowed the company to offer more categories and substantially more breadth in each product category than off-price competitors.

Growth history

BURL has opened an average of 23 new stores per year since 2006 and new stores have an average payback period of less than three years. Over 98% of the stores are profitable on a store-level cash flow basis, and BURL believes it has considerable room to grow profitability

Growth plan

By the end of Fiscal 2013 BURL anticipates that 66% of its stores will either be new, refreshed, remodeled or relocated since 2006.

Under BURL’s enhanced real estate selection process, BURL opened 15 new stores in Fall 2011 and 6 new stores in Spring 2012, which, on average, have performed in line with their initial sales projections during their first full year of operation.

BURL’s goal is to open 25 new stores annually and BURL believes the U.S. market can support at least 1,000 stores, which is only a doubling from the current base of 503 stores.

Competition

Competitors include national chains such as the following: JCPenney, Sears and Kohl’s.   BURL define national chains as retail stores with an average store size of 60,000 to 100,000 square feet that offer a range of moderately priced goods across multiple categories.

Department stores competition includes, among others, the following retailers: Macy’s, Neiman Marcus and Saks Fifth Avenue.  BURL defines department stores as retail stores with an average store size of 100,000 to 150,000 plus square feet that feature an array of nationally recognized, moderate and better priced goods.

5% stockholders pre-IPO

Bain Capital and related funds, 93.3%

Dividends

No future dividends anticipated.

In February 2013, BURL declared a cash dividend of $336 million, paid for by borrowings.  In February 2011, BURL  paid a $300 million cash dividend, paid for by borrowings.

Use of proceeds

BURL  expects to net $181.5 million from its IPO.

BURL intends to use the proceeds, together with cash on hand, to redeem $170.6 million aggregate principal amount of 9.00%/9.75% Senior Notes due 2018, to pay an advisory  termination fee with an affiliate of Bain Capital of $11.0 million, and for other general corporate purposes.

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 burl
ProVesting
7 Jul 15 13:15:02
$BURL: New SEC Filing for BURL: Form 8-K (No. 0001193125-15-246777): http://t.co/35Luszuh0I
Company SEC Filings
7 Jul 15 13:14:10
NEW SEC Filing for $BURL filed a moment ago: http://t.co/DoG4F0WLLs http://t.co/ctyAevoKZO
Sec Filings
7 Jul 15 13:11:45
$BURL: Burlington Stores, Inc. filed a form 8-K. http://t.co/RdxqmC63Fn
TheBoredChair
7 Jul 15 05:54:49
RT @FonsieTrader: Watchlist for July 07 $DVAX $ARO $BURL $MO $ANY $UVE $APOL http://t.co/cm1BuciqNr also on radar $PBMD ( PayDay ) $PLUG an…
FonsieTrader
7 Jul 15 05:04:22
Watchlist for July 07 $DVAX $ARO $BURL $MO $ANY $UVE $APOL http://t.co/cm1BuciqNr also on radar $PBMD ( PayDay ) $PLUG and $MRVL #premarket
Beverage Consulting
7 Jul 15 01:16:40
RT @stocksecret101: The Most Accurate Stock Alert Service Made $240,000 Yesterday http://t.co/SVqoMkrw2z .. $BUD $BUI $BURL
Capital Market Labs
6 Jul 15 21:25:41
$BURL Trade Card -> http://t.co/5SWs8XOCDH http://t.co/FjqfTUDeIc
Stocks Creamun
6 Jul 15 19:15:07
RT @FonsieTrader: Trade Ideas for Tuesday, July 07 $DVAX $ARO $BURL $MO $ANY $UVE $APOL http://t.co/tL1UzvLAEj #stocks #trading #traders
TheBoredChair
6 Jul 15 15:47:28
RT @FonsieTrader: Trade Ideas for Tuesday, July 07 $DVAX $ARO $BURL $MO $ANY $UVE $APOL http://t.co/tL1UzvLAEj #stocks #trading #traders
FonsieTrader
6 Jul 15 14:24:38
Trade Ideas for Tuesday, July 07 $DVAX $ARO $BURL $MO $ANY $UVE $APOL http://t.co/tL1UzvLAEj #stocks #trading #traders
WKRB News
6 Jul 15 13:09:47
Burlington Stores Given Consensus Recommendation of “Buy” by Analysts $BURL http://t.co/Tfjv3krsU2
BreakingStocksNews
6 Jul 15 12:59:18
$BURL: Burlington Stores Given Consensus Recommendation of "Buy" by ...: http://t.co/H4OuNGTm8q
ProTradersNews
6 Jul 15 10:49:03
$BURL: Value Stock Watch: Burlington Stores, Inc. (NYSE:BURL): http://t.co/8VW9zKNVRq
Shiraz Lakhi
6 Jul 15 08:26:38
13 of 17 #stocks in Multiline Retail Industry advancing today / top gainers so far: $GMAN $TUES $BURL http://t.co/9KgGXUrOI4
Random Stocks Daily
6 Jul 15 05:55:27
Choices of today: $ZLTQ $GAB-H $BURL $P $ADXSW $ICAD $SNHN $MDSY $MAN $PRE-D. More details at http://t.co/FOOriXawTk
Penny Stock Secret
5 Jul 15 20:56:18
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $BUD $BUI $BURL
ProTradersNews
5 Jul 15 13:59:09
$BURL: Company Shares of Burlington Stores, Inc. Drops by -2.93%: http://t.co/VCOxnEeYo3
King of investments
5 Jul 15 08:16:44
Burlington: Buy The Dip http://t.co/kYYSM78Jpj $BURL
Alysia Sarkisian
5 Jul 15 02:41:34
RT @SeekingAlpha: Burlington: Buy The Dip http://t.co/P9SIh9WW3B $BURL
Seeking Alpha Alerts
5 Jul 15 01:10:15
@pentradnews $burl Burlington: Buy The Dip http://t.co/eqT99WPfsG
Long & Short Ideas
5 Jul 15 01:09:42
Burlington: Buy The Dip http://t.co/BZZfP6JuPd $BURL
Seeking Alpha
5 Jul 15 01:09:42
Burlington: Buy The Dip http://t.co/P9SIh9WW3B $BURL
Pepe Plata
4 Jul 15 14:53:34
$BTU Peabody Energy Corp http://t.co/xynX7aQiCX $AMAT $BCC $BURL $CMCSA $CMA $LLY $FB $IGT $BBRY $PBF $KATE $KORS $CECO $APOL #4thofJuly
James DiPlata
4 Jul 15 03:59:41
RT @clayton_dd: BURL Burlington Stores, Inc. Last Price http://t.co/nGKDto6MS3 $BURL $ICN $BABA $BBBY #BURL #finance #nasdaq
Invest | Donate
4 Jul 15 03:50:57
@nasdaqfan: BURL Burlington Stores, Inc. Shares http://t.co/dLFMIuIXQq $BURL $BCS $AMRN $DDD #BURL #invest #investing
DennyT
4 Jul 15 03:49:09
MCHI iShares MSCI China Index Fund Message Board Posts http://t.co/yaeHvt5MZQ $MCHI $BURL $QURE $FB #MCHI #pennystocks #stocksMCRB…
Investors Hangout
4 Jul 15 03:47:34
PVSP Pervasip Corp. Volume http://t.co/ACjuZKU5ir $PVSP $BURL $FXA $BHP #PVSP #finance #tradeideas
jim50
4 Jul 15 03:47:33
POT Potash Corp. Saskatch, Inc. P/E Ratio http://t.co/JswpdGyuYW $POT $ATC.V $BURL $IWM #POT #share #share
leahanne
4 Jul 15 03:47:03
PANL Pangaea Logistics Solutions Ltd. Prev Close http://t.co/sLQTI9r4pP $PANL $BAC $CBRL $BURL #PANL #stock #investing
IH NASDAQ OMX
4 Jul 15 03:46:36
MCHI iShares MSCI China Index Fund Message Board Posts http://t.co/ljD1VIJNxU $MCHI $BURL $QURE $FB #MCHI #pennystocks #stocksMCRB…
IH NASDAQ OMX
4 Jul 15 03:46:34
MCHI iShares MSCI China Index Fund Message Board Posts http://t.co/13mWIggSLJ $MCHI $BURL $QURE $FB #MCHI #pennystocks #stocksMCRB…
IH NASDAQ OMX
4 Jul 15 03:46:11
MCHI iShares MSCI China Index Fund Message Board Posts http://t.co/uyCGqsOltl $MCHI $BURL $QURE $FB #MCHI #pennystocks #stocksMCRB…
IH NASDAQ OMX
4 Jul 15 03:46:10
MCHI iShares MSCI China Index Fund Message Board Posts http://t.co/k0VWfxFtTI $MCHI $BURL $QURE $FB #MCHI #pennystocks #stocks
Stock_Tracker
4 Jul 15 03:46:10
MCHI iShares MSCI China Index Fund Message Board Posts http://t.co/kuj3kPN5sL $MCHI $BURL $QURE $FB #MCHI #pennystocks #stocksMCRB…
Stock_Tracker
4 Jul 15 03:46:07
MCHI iShares MSCI China Index Fund Message Board Posts http://t.co/macFkl1c6h $MCHI $BURL $QURE $FB #MCHI #pennystocks #stocksMCRB…
Investors Hangout
4 Jul 15 03:45:07
JO iPath Bloomberg Coffee Subindex Total Return ETN 52Wk Low http://t.co/NHPDTyhIDf $JO $BURL $DIA $EWU #JO #stocks #invest
Rosner Stocks
4 Jul 15 03:42:07
HLTH Nobilis Health Corp. Investor Opinions http://t.co/YeAftgUxDl $HLTH $OXM $ATO $BURL #HLTH #stocks #invest
jim50
4 Jul 15 03:40:10
DYAX Dyax Corp. Summary http://t.co/f3JexPH4ve $DYAX $JACK $BURL $CRS #DYAX #invest #investing
DennyT
4 Jul 15 03:39:05
EWQ France iShares Ideas http://t.co/X1adPoiMj3 $EWQ $IBM $BURL $ALGN #EWQ #tradeideas #investing
Stock_Tracker
4 Jul 15 03:38:06
DVAX Dynavax Technologies Corp. Day High http://t.co/5X1wLWs34a $DVAX $AMBA $BURL $LULU #DVAX #nasdaq #stockmarket
Emylers
4 Jul 15 03:37:38
CRS Carpenter Tech Corp. Bid Size http://t.co/ZkAWUvZbut $CRS $XIV $CAT $BURL #CRS #pennystocks #tradeideas
Investors Hangout
4 Jul 15 03:37:19
COST Costco Wholesale Corp. Change http://t.co/XhT89XupDD $COST $AAPL $BHP $BURL #COST #stock #nasdaq
Stock_Tracker
4 Jul 15 03:36:05
CHKE Cherokee, Inc. Company Info http://t.co/uBgmUZ9LKV $CHKE $HPQ $BURL $RSP #CHKE #stocks #stock
PolgarStocks
4 Jul 15 03:35:40
BURL Burlington Stores, Inc. Prev Close http://t.co/CiAAsBiJeC $BURL $JACK $WDC $INTC #BURL #finance #tradeideas
nasdaqfan
4 Jul 15 03:35:37
BURL Burlington Stores, Inc. Current Price http://t.co/WkTJEJ7Pdd $BURL $EDZ $GDXJ $XOM #BURL #share #share
nasdaqfan
4 Jul 15 03:35:36
BURL Burlington Stores, Inc. Shares http://t.co/8KFPU57WkU $BURL $BCS $AMRN $DDD #BURL #invest #investing
jim50
4 Jul 15 03:35:35
CBIS Cannabis Science Inc. Tick http://t.co/fbW9oxsSeW $CBIS $XLE $DFS $BURL #CBIS #stockmarket #tradeideas
IH News Desk
4 Jul 15 03:35:03
BURL Burlington Stores, Inc. Change http://t.co/4jZycjTpJc $BURL $HBI $AGTC $XLP #BURL #invest #investing
clayton
4 Jul 15 03:34:06
BURL Burlington Stores, Inc. Last Price http://t.co/nGKDto6MS3 $BURL $ICN $BABA $BBBY #BURL #finance #nasdaq
IH News Desk
4 Jul 15 03:34:03
AXAS Abraxas Petroleum Corp. Investor Opinions http://t.co/QEvvGoZL0k $AXAS $XIV $ACHC $BURL #AXAS #stockmarket #investing
				
				
By  +Follow October 1, 2013 9:27AM
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