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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
PolgarStocks
30 Jan 15 04:37:15
$DRWN Ask Size Click Here: http://t.co/e0j5R8xqfs Also See: $AGNC $BURL $FBNC $SCBS ~
Jack Trader
29 Jan 15 08:32:10
$burl The Burlington Bull Rages On, Q4 Is Next (BURL) http://t.co/xazSztDXfk
StockNewsWires
29 Jan 15 06:46:05
$BURL: The Burlington Bull Rages On, Q4 Is Next: http://t.co/awkOhsHEal
Adam
29 Jan 15 06:42:58
The Burlington Bull Rages On, Q4 Is Next http://t.co/NpWp0gDKO4 $BURL
Seeking Alpha
29 Jan 15 06:42:58
The Burlington Bull Rages On, Q4 Is Next http://t.co/2fwtHjX3Na $BURL
BlackCabbieTrader
28 Jan 15 16:50:36
29/1/15 Trend Trade Long Part 1 $ABC $ADVS $AEC $AEP $AIV $ALL $AWK $BMRN $BRX $BURL $BX $CCI $CODE $COMM $CXW $DCT $DDR $DFT $DOC $DRE
Often
28 Jan 15 14:27:52
RT @_JohnWalsh_: 28/1/15 Trend Trade Long Part 1 $ABC $AIV $ATO $BMR $BRX $BURL $BX $CCI $CERN $CPT $CXW $DCT $DDR $DFT $DOC $DRE $DXCM $DY…
Zacks.com
28 Jan 15 13:47:37
Will these stocks benefit from the recent bump in consumer confidence? $KR $ULTA $BURL http://t.co/sPqcJnshwg
Samuel Brown
28 Jan 15 13:03:15
$burl Bull of the Day: Burlington Stores (BURL) http://t.co/BYVI0LKG1d
Kevin
28 Jan 15 09:07:32
RT @_JohnWalsh_: 28/1/15 Trend Trade Long Part 1 $ABC $AIV $ATO $BMR $BRX $BURL $BX $CCI $CERN $CPT $CXW $DCT $DDR $DFT $DOC $DRE $DXCM $DY…
Zacks.com
28 Jan 15 09:05:32
US consumer confidence overrides shaky global economy. $KR $ULTA $BURL http://t.co/Dbg6jACDrz
The Legacy News
28 Jan 15 05:15:59
Insider Selling: Paul Metcalf Sells 25,607 Shares of Burlington Stores Stock $BURL http://t.co/mA7PSqJDGH
It's in the mail
27 Jan 15 21:11:50
RT @_JohnWalsh_: 28/1/15 Trend Trade Long Part 1 $ABC $AIV $ATO $BMR $BRX $BURL $BX $CCI $CERN $CPT $CXW $DCT $DDR $DFT $DOC $DRE $DXCM $DY…
Penny Stock Secret
27 Jan 15 20:11:06
This Guy Turned $100 into over $10,000 In Just 30 Days! http://t.co/vezCDY95do .. $BUD $BUI $BURL
BlackCabbieTrader
27 Jan 15 16:34:14
28/1/15 Trend Trade Long Part 1 $ABC $AIV $ATO $BMR $BRX $BURL $BX $CCI $CERN $CPT $CXW $DCT $DDR $DFT $DOC $DRE $DXCM $DYAX $EFX $EIX $EQR
ProVesting
27 Jan 15 13:46:05
$BURL: Insider Selling: Burlington Stores EVP Paul Metcalf Sells 25607 ...: http://t.co/owyZjM5hKS
ProTradersNews
27 Jan 15 13:35:02
$BURL: Burlington Stores EVP Paul Metcalf Sells 25607 Shares (BURL): http://t.co/H487O4Ltwe
InterCooler
27 Jan 15 13:32:43
Burlington Stores EVP Paul Metcalf Sells 25,607 Shares $BURL http://t.co/VQz4YS9NVE
US Banking News
27 Jan 15 13:27:41
Burlington Stores EVP Paul Metcalf Sells 25,607 Shares $BURL http://t.co/pdqz2Ge872
rolly
27 Jan 15 12:56:56
$ICUI, $BURL, $ZLTQ, $TASR, $LCI, $INFN, $MIK, $PSEM, $ABAX, $RDUS some nice names out there. feels like rotation today
TradingView
27 Jan 15 12:40:02
$BURL - Burlington Stores-BURL-Daily -Insider Selling & High Valuation - https://t.co/BVMTRUbggb
TV_Trading Ideas
27 Jan 15 12:38:58
Burlington Stores-BURL-Daily -Insider Selling & High Valuation $BURL http://t.co/ZDWG68IcDD
Tim West
27 Jan 15 12:38:57
$BURL chart: Burlington Stores-BURL-Daily -Insider Selling & High Valuation. http://t.co/AumgTY8fEq
Techgravity.com
27 Jan 15 12:36:34
$BURL,Lst:MCUP,Qte:51.59,Chg:0.14,Tgt:70.76
InsiderTradingWire
27 Jan 15 12:05:11
Paul Metcalf, Executive Vice Pres of Burlington Stores Sells $1,252,067 Worth of $BURL - #Form4 #InsiderTrading - ...
NASDAQ
27 Jan 15 12:04:04
$BURL - Statement of Changes in Beneficial Ownership (4) http://t.co/tz9w8wTKFf
Insider Filings
27 Jan 15 12:03:28
$BURL: Metcalf Paul sold a net $1,252,067 in Burlington Stores, Inc.. http://t.co/hfq9OXU9l8
Insider Alerts
27 Jan 15 12:03:04
$BURL: New Insider Transaction on BURL by Executive Vice President Metcalf Paul: http://t.co/AQJro1jxK5 http://t.co/Lu8ML63ubS
James P Worthy
27 Jan 15 09:03:23
$burl Burlington Stores (BURL) Stock Gains on Increased 2014 Guidance http://t.co/502T1DOPvC
Ticker Report
27 Jan 15 05:10:54
Insider Selling: Burlington Stores EVP Sells $453,389.00 in Stock $BURL http://t.co/os2vVW9njQ
Blue Horseshoe
26 Jan 15 12:20:53
@BrattleStCap $BURL also throwing it's name in the hat for best looking chart
Who wants to know?
26 Jan 15 08:42:27
RT @_JohnWalsh_: 26/1/15 Trend Trade Long Part 1 $AAL $ABC $ADP $AEC $AEP $AET $AIV $ATO $AWK $AXL $BMR $BURL $BX $CCI $CERN $CFN $CODE $CP…
ProTradersNews
26 Jan 15 08:06:03
$BURL: First Call Rating Update on Burlington Stores Inc: http://t.co/8tm9iLH169
WKRB News
26 Jan 15 05:39:05
Joyce Manning Magrini Sells 8,978 Shares of Burlington Stores Stock $BURL http://t.co/iTgsAIGovc
edwardrooster
26 Jan 15 05:11:26
Trade in 60 Sec for 1/26/15 $COV $PLD $NVAX $RMD $NPSP $UAL $VTR $EUO $UUP $ALK $BURL http://t.co/ZywdvziLzz
TalkMarkets
25 Jan 15 15:03:42
#InsiderTrading Report Edition #240: Notable Buys And Sales $OPK $DAL $URI $SAR $CMC $BURL $MDVN $NOW $LNG $DIS http://t.co/ED6tuRREhI
Elo
25 Jan 15 14:40:36
RT @_JohnWalsh_: 26/1/15 Trend Trade Long Part 1 $AAL $ABC $ADP $AEC $AEP $AET $AIV $ATO $AWK $AXL $BMR $BURL $BX $CCI $CERN $CFN $CODE $CP…
GLOBAL NEWS DEPOT
25 Jan 15 09:56:05
RT @_JohnWalsh_: 26/1/15 Trend Trade Long Part 1 $AAL $ABC $ADP $AEC $AEP $AET $AIV $ATO $AWK $AXL $BMR $BURL $BX $CCI $CERN $CFN $CODE $CP…
BlackCabbieTrader
25 Jan 15 09:55:26
26/1/15 Trend Trade Long Part 1 $AAL $ABC $ADP $AEC $AEP $AET $AIV $ATO $AWK $AXL $BMR $BURL $BX $CCI $CERN $CFN $CODE $CPT $CTSH $CUBE $CXW
Seeking Alpha
25 Jan 15 08:28:27
Insider Buys And Sells: OPKO Health, Burlington Stores http://t.co/4lkvym3bhJ $OPK $DAL $URI $SAR $CMC $BURL $MDVN $NOW $LNG $DIS
TalkMarkets
25 Jan 15 02:27:07
#InsiderTrading Report Edition #240: Notable Buys And Sales $OPK $DAL $URI $SAR $CMC $BURL $MDVN $NOW $LNG $DIS http://t.co/ED6tuRREhI
Justin
24 Jan 15 18:00:37
RT @_JohnWalsh_: My current open positions, Long - $AEP $BURL $CHD $KR $PNW $SWKS, Short - $EMN $FSLR $JEC $MAT
edwardrooster
24 Jan 15 14:04:26
$RMD standout in 1/26/15 Trades in 60Sec $COV $PLD $NVAX $NPSP $UAL $VTR $EUO $UUP $ALK $BURL http://t.co/ZywdvziLzz http://t.co/C7Exj7L6Xw
edwardrooster
24 Jan 15 13:39:37
Trades In 60 Seconds for 1/26/2015: $COV $PLD $NVAX $RMD $NPSP $UAL $VTR $EUO $UUP $ALK $BURL http://t.co/ietBLT9n9R
Anton
24 Jan 15 08:30:12
RT @_JohnWalsh_: My current open positions, Long - $AEP $BURL $CHD $KR $PNW $SWKS, Short - $EMN $FSLR $JEC $MAT
Tony D Purkal
24 Jan 15 08:01:57
RT @_JohnWalsh_ $AEP $MAT My current open positions, Long - $AEP $BURL $CHD $KR $PNW $SWKS, Short - $EMN $FSLR $JEC $MAT
Jake13
24 Jan 15 07:10:23
Stocks Trending Now: http://t.co/j1I70Q28lk $IMPUF $JNS $NTOIY $WOLWF $ENUM $SNWV $QNTQY $SSNI $BURL $JZL $BYIN $PSBT ~
Forex First Aids
24 Jan 15 00:58:44
RT @_JohnWalsh_: My current open positions, Long - $AEP $BURL $CHD $KR $PNW $SWKS, Short - $EMN $FSLR $JEC $MAT
Trade Real
24 Jan 15 00:43:21
RT @_JohnWalsh_: My current open positions, Long - $AEP $BURL $CHD $KR $PNW $SWKS, Short - $EMN $FSLR $JEC $MAT
BlackCabbieTrader
23 Jan 15 23:55:28
My current open positions, Long - $AEP $BURL $CHD $KR $PNW $SWKS, Short - $EMN $FSLR $JEC $MAT
				
				
By  +Follow October 1, 2013 9:27AM
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