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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.


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Results for burl
HotKeyTrading
28 Dec 14 17:00:06
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/TRx9EnjwT5 #daytrading #analytics
HotKeyTrading
28 Dec 14 13:00:07
Upgraded: $OME $DAN $KALU $ICA $DB $AGCO $SAP $CMGE $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS http://t.co/Vv2VEnpBuv #swingtrading #mkt #nyse
HotKeyTrading
28 Dec 14 05:00:06
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/TRx9EnjwT5 #wallstreet #dow #analyst
HotKeyTrading
28 Dec 14 01:00:07
Upgraded: $OME $DAN $KALU $ICA $DB $AGCO $SAP $CMGE $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS http://t.co/TRx9EnjwT5 #swingtrading #mkt #dow
HotKeyTrading
27 Dec 14 17:00:07
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/TRx9EnjwT5 #finance #mkt #stock #nyse
HotKeyTrading
27 Dec 14 13:00:08
Upgraded: $OME $DAN $KALU $ICA $DB $AGCO $SAP $CMGE $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS http://t.co/Vv2VEnpBuv #nyse #swingtrading #mkt
HotKeyTrading
27 Dec 14 05:00:06
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/Vv2VEnpBuv #daytrading #swingtrading
HotKeyTrading
27 Dec 14 01:00:07
Upgraded: $DAN $KALU $ICA $DB $AGCO $SAP $CMGE $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS $UPL http://t.co/TRx9EnjwT5 #nyse #trader #mkt #spy
HotKeyTrading
26 Dec 14 17:00:06
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/Vv2VEnpBuv #investors #trading #mkt
HotKeyTrading
26 Dec 14 13:00:08
Upgraded: $DAN $KALU $ICA $DB $AGCO $SAP $CMGE $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS $UPL http://t.co/Vv2VEnpBuv #daytrading #stockmarket
Thomas Collins
26 Dec 14 08:01:17
$burl Why Burlington Stores (BURL) Stock Might be a Great Pick http://t.co/iIrAT57H13
HotKeyTrading
26 Dec 14 05:00:05
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/Vv2VEnpBuv #analytics #watchlist #dow
StockNewsWires
26 Dec 14 03:23:02
$BURL $PLCE: Falling Oil Prices- Morgan Stanley (NYSE:MS) Says That Apparel ... http://t.co/IeySGIusXS http://t.co/FeODsiibzf
DailyStockPicks
26 Dec 14 01:22:07
$ECIG short squeeze due on FTD. 5x gain potential $BURL $STRZA $MTZ http://t.co/FpfORFAs20 http://t.co/BtVfUk5p46 http://t.co/HzSBxg8h2O
HotKeyTrading
26 Dec 14 01:00:07
Upgraded: $CMGE $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS $UPL $CHD $NE $DEI $REN $ACAS $MINI http://t.co/Vv2VEnpBuv #stock #wallstreet #dow
HotKeyTrading
25 Dec 14 17:00:06
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/Vv2VEnpBuv #markets #spy #finance
HotKeyTrading
25 Dec 14 13:00:08
Upgraded: $CMGE $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS $UPL $CHD $NE $DEI $REN $ACAS $MINI http://t.co/TRx9EnjwT5 #markets #trading #spy
Sleek Money
25 Dec 14 07:23:49
Insider Selling: Burlington Stores EVP Sells 2,200 Shares of Stock $BURL http://t.co/3DacF8DRXx
ProVesting
25 Dec 14 07:23:06
$BURL: Insider Selling: Burlington Stores EVP Sells 2200 Shares of Stock ... http://t.co/rSghHQzSPh http://t.co/cFolswsCUh
StockNewsWires
25 Dec 14 05:48:04
$MS $ROST $BURL: Morgan Stanley (MS) Believes Apparel Retailers Will Gain The Most ... http://t.co/DKt8WLdI9G http://t.co/61Evzb5uKB
HotKeyTrading
25 Dec 14 05:00:05
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/TRx9EnjwT5 #mkt #stocks #analytics
StockNewsWires
25 Dec 14 03:38:09
$BURL: Burlington Stores Upgraded by Zacks to Outperform (BURL) http://t.co/8ag7YKpK10 http://t.co/DkKrkFgdSI
Justin
25 Dec 14 02:20:24
RT @_JohnWalsh_: 24/12/14 Long Watch List Part 1 $ACGL $ACN $ADP $AEL $AIG $AIV $ALL $ALTR $AMAT $AOS $APH $AXL $AXS $AXTA $BK $BMY $BURL $…
HotKeyTrading
25 Dec 14 01:00:06
Upgraded: $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS $UPL $CHD $NE $DEI $REN $ACAS $MINI $AVA http://t.co/Vv2VEnpBuv #finance #analyst #dow
HotKeyTrading
24 Dec 14 17:00:07
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/Vv2VEnpBuv #watchlist #stock #dow
HotKeyTrading
24 Dec 14 13:00:07
Upgraded: $MCRL $QLIK $AIRM $SHOO $BURL $BTI $BGS $UPL $CHD $NE $DEI $REN $ACAS $MINI $AVA http://t.co/kl3VGP3wO1 #analyst #trading #nyse
Mitchell Warren
24 Dec 14 06:29:10
Burlington Stores $BURL Mar 2015 $50 call open interest rose to 10,053 from 5,099 contracts.
US Banking News
24 Dec 14 06:24:16
Burlington Stores Receives Consensus Buy Rating from Analysts $BURL http://t.co/6weDouF30K
InterCooler
24 Dec 14 05:38:40
Insider Selling: Todd Weyhrich Sells 2,200 Shares of Burlington Stores Stock $BURL http://t.co/KcYwj5ISNU
HotKeyTrading
24 Dec 14 05:00:06
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/Vv2VEnpBuv #trader #spy #stock #dow
BlackCabbieTrader
24 Dec 14 04:56:49
24/12/14 Long Watch List Part 1 $ACGL $ACN $ADP $AEL $AIG $AIV $ALL $ALTR $AMAT $AOS $APH $AXL $AXS $AXTA $BK $BMY $BURL $CAVM $CBL $CBOE
The Double Dip
24 Dec 14 04:32:24
RT @OptionsHawk: $BURL a monster!
The Legacy News
24 Dec 14 03:56:42
Burlington Stores Stock Rating Upgraded by Zacks $BURL http://t.co/UNg31x2tJl
HotKeyTrading
24 Dec 14 01:00:06
Upgraded: $AIRM $SHOO $BURL $BTI $BGS $UPL $CHD $NE $DEI $REN $ACAS $MINI $AVA $FRT $EXR http://t.co/TRx9EnjwT5 #stock #spy #finance #nyse
HotKeyTrading
23 Dec 14 17:00:06
Upgraded: $BURL $CHD $NE $WAG $CTAS $MINI $BDSI $GLW $TDW $ESV $CVS $RCAP $GOL $PAY $XOOM http://t.co/TRx9EnjwT5 #stockpicks #watchlist
P-Robb
23 Dec 14 15:32:20
@BarbarianCap has actually played out in monthly comps for the American casual diner so far but retail still TBD unless you're $BURL $ROST
Dakota Financial
23 Dec 14 14:09:28
Insider Selling: Todd Weyhrich Sells 2,200 Shares of Burlington Stores Stock $BURL http://t.co/pFN3xapC55
StockNewsWires
23 Dec 14 14:03:02
$BURL: Insider Selling: Todd Weyhrich Sells 2200 Shares of Burlington ... http://t.co/Q9tRtoOKRz http://t.co/gJRKQj0Vj1
WKRB News
23 Dec 14 13:50:10
Insider Selling: Todd Weyhrich Sells 2,200 Shares of Burlington Stores Stock $BURL http://t.co/IV5VAyQ9A1
HotKeyTrading
23 Dec 14 13:00:07
Upgraded: $AIRM $SHOO $BURL $BTI $BGS $UPL $CHD $NE $DEI $REN $ACAS $MINI $AVA $FRT $EXR http://t.co/TRx9EnjwT5 #markets #stocks #mkt #nyse
gordon gekko is god
23 Dec 14 12:12:45
RT @HighCallVolume: $NQ High Call Volume Jan 17 calls above strike $PBR $APOL $VNDA $ACAD $MTW $ACHN $ESRX $CAR $HZT $HLF $OCN $BURL $ZNGA …
HIGH Call Volume
23 Dec 14 11:43:47
$NQ High Call Volume Jan 17 calls above strike $PBR $APOL $VNDA $ACAD $MTW $ACHN $ESRX $CAR $HZT $HLF $OCN $BURL $ZNGA $IAG $NSM $CROX $JIVE
The LincolnList
23 Dec 14 11:18:07
$BURL nice fade there
Sleek Money
23 Dec 14 11:05:40
Burlington Stores Sets New 52-Week High at $48.40 $BURL http://t.co/cpV90gOdl9
StockNewsWires
23 Dec 14 11:03:07
$BURL: Burlington Stores Sets New 52-Week High at $48.40 (BURL) http://t.co/XdE8cgTfRi http://t.co/BT3yfTN1Im
The LincolnList
23 Dec 14 10:56:29
RT @DaytraderJM: Want to see a perfect parabolic? $BURL// just grabbed a few short at 49.46 for a quickie
Joe Kunkle
23 Dec 14 10:52:30
$BURL a monster!
Sleek Money
23 Dec 14 10:52:21
Burlington Stores Rating Increased to Outperform at Zacks $BURL http://t.co/I6AX8SC12S
ProVesting
23 Dec 14 10:49:04
$BURL: Burlington Stores Rating Increased to Outperform at Zacks (BURL) http://t.co/Xv9BQH0pg8 http://t.co/43T4Y5IlQZ
JM
23 Dec 14 10:47:26
Want to see a perfect parabolic? $BURL
				
				
By  +Follow October 1, 2013 9:27AM
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