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Press release from GlobeNewswire (a Nasdaq OMX company)

The Children's Place Reports Fourth Quarter and Fiscal 2012 Results

Tuesday, March 26, 2013

The Children's Place Reports Fourth Quarter and Fiscal 2012 Results03:00 EDT Tuesday, March 26, 2013SECAUCUS, N.J., March 26, 2013 (GLOBE NEWSWIRE) -- The Children's Place Retail Stores, Inc. (Nasdaq:PLCE), the largest pure-play children's specialty apparel retailer in North America, today announced financial results for the fourth quarter and fiscal 2012 periods ended February 2, 2013. President and Chief Executive Officer Jane Elfers commented, "We continued to make significant progress during 2012 and had a strong finish to the year. We delivered record sales of $1.8 billion in fiscal 2012 and a 2% increase in comparable retail sales. Non-GAAP earnings per share increased 11% to $3.23. In addition, we generated $205 million in cash from operations during the year and returned approximately $89 million to shareholders through our share buyback program. "For the fourth quarter, comparable retail sales increased 4.3%, non-GAAP operating income increased 65% and non-GAAP earnings increased 32% to $1.15 per diluted share," Ms. Elfers said.Net Income and EPS The Company announced on February 26, 2013 that it was changing its accounting policy to report its inventory on the cost method instead of the retail inventory method and that it will capitalize additional supply chain costs instead of reporting them as period expenses, effective in the fourth quarter. The Company is reporting fourth quarter and fiscal 2012 results under both the new and previous accounting policies to facilitate comparisons between the two accounting methods. In this press release the term (i) "cost method" reflects the change in accounting principle to report inventory on the cost method and the capitalization of additional supply chain costs, (ii) "adjusted" refers to results in prior periods which have been adjusted to reflect the GAAP cost method, and (iii) "Non-GAAP" refers to results which exclude transactions which the Company believes are not indicative of the performance of its core business. The Company believes that by providing this supplemental disclosure to investors it will facilitate comparisons of its past and present performance. A reconciliation of net income and earnings per diluted share as reported is included in this press release in Table 3. Under the cost method, the Company reported net income of $19.1 million and earnings per diluted share of $0.80 for the fourteen weeks ended February 2, 2013, compared to adjusted net income of $23.3 million and adjusted earnings per diluted share of $0.93 for the thirteen weeks ended January 28, 2012. For the fifty-three weeks ended February 2, 2013, the Company reported net income of $63.2 million and earnings per diluted share of $2.61, compared to adjusted net income of $74.3 million and adjusted earnings per diluted share of $2.90 for the 52-week period ended January 28, 2012. Under the retail method, the Company reported net income of $22.1 million and earnings per diluted share of $0.93 for the fourteen weeks ended February 2, 2013, compared to net income of $24.2 million and earnings per diluted share of $0.97 in the thirteen weeks ended January 28, 2012. For the fifty-three weeks ended February 2, 2013, the Company reported net income of $62.7 million and earnings per diluted share of $2.58, compared to net income of $77.2 million and earnings per diluted share of $3.01 for the fifty-two weeks ended January 28, 2012. The results reported above include transactions that the Company believes are not indicative of the performance of its core business. The following table also shows Non-GAAP earnings per diluted share under the retail method excluding such transactions for the fiscal quarters and fiscal years ended February 2, 2013 and January 28, 2012.  Fourth QuarterFiscal Year  2012201120122011 Earnings per diluted share under the cost method on a GAAP basis $0.80 $0.93 $2.61 $2.90 Impact of the change in method of accounting for inventory $0.13 $0.04 -$0.03 $0.11 Earnings per diluted share under the retail method  $0.93 $0.97 $2.58 $3.01 Add back: Accelerated depreciation for DC closures and remodels; restructuring and other costs  $0.22 $0.03 $0.65 $0.03 Remove: Settlement of state tax audits; reversal of prior year's US tax accrual on foreign earnings  - -$0.13 - -$0.12 Non-GAAP earnings per diluted share under the retail method $1.15 $0.87 $3.23 $2.922012 Results Reported under the Retail MethodFourth Quarter 2012 Net sales, which included $21.6 million of sales in the 53rd week, increased 11.3% to $509.2 million, compared to $457.5 million the prior year. Comparable retail sales, which excluded the 53rd week, increased 4.3% compared to the prior year. Gross profit increased 17.5% to $192.7 million, and increased 200 basis points to 37.8% of sales. Selling, general and administrative expense increased 12.4% to $136.1 million, and deleveraged 20 basis points to 26.7% of sales. Non-GAAP operating income increased 64.8% to $38.7 million, and increased 250 basis points to 7.6% of sales. Non-GAAP net income was $27.3 million, a 24.8% increase compared to the prior year. Non-GAAP EPS of $1.15 per diluted share compares to $0.87 last year, a 32.2% increase.Fiscal 2012 Results Net sales, which included the 53rd week, increased 5.5% to $1,809.5, compared to $1,715.9 million the prior year. Comparable retail sales, which excluded the 53rd week, increased 2.0% compared to the prior year. Gross profit increased 4.0% to $690.5 million, and deleveraged 50 basis points to 38.2% of sales. Non-GAAP selling, general and administrative expense increased 6.2% to $507.0 million, and deleveraged 20 basis points to 28.0% of sales. Non-GAAP operating income increased 3.0% to $114.3 million, and deleveraged 20 basis points to 6.3% of sales. Non-GAAP net income was $78.3 million, a 4.5% increase compared to prior year. Non-GAAP EPS of $3.23 per diluted share compares to $2.92 last year, a 10.6% increase.Store Openings and Closures The Company opened four stores and closed 11 during the fourth quarter of 2012. During fiscal 2012, the Company opened 64 stores and closed 18, ending the year with 1,095 stores.Share Repurchase Program During the fourth quarter of 2012, the Company repurchased 863 thousand shares for approximately $41.2 million. In fiscal 2012, the Company repurchased 1.8 million shares for approximately $88.9 million. At the end of fiscal 2012, $80.4 million of the $100 million share repurchase program authorized in November 2012 remained available for future share repurchases.Outlook for 2013 under the Cost Method With the unfavorable weather and weak macro-economic environment affecting consumer spending quarter-to-date, the Company is forecasting Non-GAAP earnings per diluted share will be between $0.60 and $0.65 for the first quarter of 2013. This compares to Non-GAAP adjusted earnings per diluted share of $1.14 in the first quarter of 2012. This guidance assumes negative high-single digit comparable retail sales for the quarter. For fiscal 2013, the Company is projecting that Non-GAAP earnings per diluted share will be between $2.90 and $3.10. This compares to Non-GAAP adjusted earnings per diluted share of $3.25 in fiscal 2012. This guidance assumes negative low-single digit comparable retail sales for the year. This earnings guidance assumes that currency exchange rates will remain where they are today. It does not include the impact of potential share repurchases.Conference Call Information The Children's Place will host a conference call to discuss its fourth quarter and fiscal year 2012 results today at 8:30 a.m. Eastern Time. The call will be broadcast live at http://investor.childrensplace.com. An audio archive will be available on the Company's website approximately one hour after the conclusion of the call.About The Children's Place Retail Stores, Inc. The Children's Place is the largest pure-play children's specialty apparel retailer in North America. The Company designs, contracts to manufacture and sells fashionable, high-quality merchandise at value prices, primarily under the proprietary "The Children's Place" brand name. As of February 2, 2013, the Company operated 1,095 stores and an online store at www.childrensplace.com.Forward Looking Statements This press release (and the above referenced call) may contain certain forward-looking statements regarding future circumstances, including statements relating to the Company's positioning, and forecasts regarding store openings and earnings per diluted share. These forward-looking statements are based upon the Company's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results and performance to differ materially. Some of these risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission, including in the "Risk Factors" section of its annual report on Form 10-K for the fiscal year ended January 28, 2012. Included among the risks and uncertainties that could cause actual results and performance to differ materially are the risk that the Company will be unsuccessful in gauging fashion trends and changing consumer preferences, the risks resulting from the highly competitive nature of the Company's business and its dependence on consumer spending patterns, which may be affected by the continued weakness in the economy or by other factors such as increases in the cost of gasoline and food, the risk that the cost of raw materials or energy prices will increase beyond current expectations or that the Company is unable to offset cost increases through value engineering or price increases, and the uncertainty of weather patterns. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.Table 1THE CHILDREN'S PLACE RETAIL STORES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AT COST METHOD(In thousands, except per share amounts)(Unaudited)                      Fourth Quarter EndedFiscal Year Ended  February 2,January 28,February 2,January 28,  2013201220132012    (As adjusted)  (As adjusted) Net sales  $ 509,224  $ 457,463  $ 1,809,486  $ 1,715,862 Cost of sales  320,667  294,843  1,118,046  1,056,213 Gross profit  188,557  162,620  691,440  659,649 Selling, general and administrative expenses  136,089  121,088  510,918  477,425 Asset impairment charges  215  461  2,284  2,208 Other costs  6,622  --   11,088  --  Depreciation and amortization   19,712  19,851  77,435  74,573 Operating income  25,919  21,220  89,715  105,443 Interest (expense), net  84  (35)  (20)  (690) Income before taxes  26,003  21,185  89,695  104,753 Provision for income taxes  6,875  (2,140)  26,452  30,408 Net income  $ 19,128  $ 23,325  $ 63,243  $ 74,345                     Earnings per common share         Basic  $ 0.81  $ 0.94  $ 2.63  $ 2.92 Diluted  $ 0.80  $ 0.93  $ 2.61  $ 2.90           Weighted average common shares outstanding         Basic  23,541  24,834  24,092  25,459 Diluted  23,789  25,033  24,276  25,668  Table 2THE CHILDREN'S PLACE RETAIL STORES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AT RETAIL METHOD(In thousands, except per share amounts)(Unaudited)                      Fourth Quarter EndedFiscal Year Ended  February 2,January 28,February 2,January 28,  2013201220132012           Net sales  $ 509,224  $ 457,463  $ 1,809,486  $ 1,715,862 Cost of sales  316,533  293,502  1,119,025  1,051,649 Gross profit  192,691  163,961  690,461  664,213 Selling, general and administrative expenses  136,089  121,088  510,918  477,425 Asset impairment charges  215  461  2,284  2,208 Other costs  6,622  --   11,088  --  Depreciation and amortization   19,712  19,851  77,435  74,573 Operating income  30,053  22,561  88,736  110,007 Interest (expense), net  84  (35)  (20)  (690) Income before taxes  30,137  22,526  88,716  109,317 Provision for income taxes  8,019  (1,700)  25,971  32,092 Net income  $ 22,118  $ 24,226  $ 62,745  $ 77,225                     Earnings per common share         Basic  $ 0.94  $ 0.98  $ 2.60  $ 3.03 Diluted  $ 0.93  $ 0.97  $ 2.58  $ 3.01           Weighted average common shares outstanding         Basic  23,541  24,834  24,092  25,459 Diluted  23,789  25,033  24,276  25,668  Table 3THE CHILDREN'S PLACE RETAIL STORES, INC.RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO REPORTED AT RETAIL METHOD(In thousands, except per share amounts)(Unaudited)                                                Fourth Quarter Ended  Fiscal Year Ended        February 2,  January 28,  February 2,  January 28,        2013  2012  2013  2012                           Net sales    $ 509,224    $ 457,463    $ 1,809,486    $ 1,715,862     Cost of sales    316,533    293,502    1,119,025    1,051,649     Gross profit    192,691    163,961    690,461    664,213     Selling, general and administrative expenses    136,089    121,088    510,918    477,425     Restructuring severance/miscellaneous costs    --     --     2,854    --      Legal Settlement    --     --     1,087    --     Non-GAAP Selling, general and administrative expenses   136,089   121,088   506,977   477,425     Asset impairment charges    215    461    2,284    2,208     Store Impairment due to early termination    --     --     1,250    --     Non-GAAP Asset impairment charges   215   461   1,034   2,208     Other costs    6,622    --     11,088    --      DC exit costs    6,622    --     11,088    --     Non-GAAP Other costs   --    --    --    --      Depreciation and amortization     19,712    19,851    77,435    74,573     DC exit costs and Canadian store remodels     2,019    922    9,335    1,032    Non-GAAP Depreciation and amortization   17,693   18,929   68,100   73,541     Operating income    30,053    22,561    88,736    110,007    Non-GAAP Operating income   38,694   23,483   114,350   111,039     Interest (expense), net    84    (35)    (20)    (690)     Income before taxes    30,137    22,526    88,716    109,317    Non-GAAP Income before taxes   38,778   23,448   114,330   110,349     Provision for income taxes    8,019    (1,700)    25,971    32,092    Non-GAAP Provision for income taxes   11,475   1,579   35,996   35,402     Net income    22,118    24,226    62,745    77,225    Non-GAAP Net income   $ 27,303   $ 21,869   $ 78,334   $ 74,947                                                 Non-GAAP Earnings per common share                     Basic    $ 1.16    $ 0.88    $ 3.25    $ 2.94     Diluted    $ 1.15    $ 0.87    $ 3.23    $ 2.92                           Weighted average common shares outstanding                     Basic    23,541    24,834    24,092    25,459     Diluted    23,789    25,033    24,276    25,668      Table 4THE CHILDREN'S PLACE RETAIL STORES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AT COST METHOD(In thousands, except per share amounts)(Unaudited)                          Fiscal Year Ended  February 2,January 28,January 29,January 30,January 31,  20132012201120102009    (As adjusted)(As adjusted)(As adjusted)(As adjusted) Net sales  $ 1,809,486  $ 1,715,862  $ 1,673,999  $ 1,643,587  $ 1,630,323 Cost of sales  1,118,046  1,056,213  1,013,878  991,393  954,227 Gross profit  691,440  659,649  660,121  652,194  676,096 Selling, general and administrative expenses  510,918  477,425  456,558  456,338  467,730 Asset impairment charges  2,284  2,208  2,713  2,200  6,491 Other costs  11,088  --   --   --   213 Depreciation and amortization   77,435  74,573  71,640  71,447  71,410 Operating income  89,715  105,443  129,210  122,209  130,252 Interest (expense), net  (20)  (690)  (1,530)  (5,731)  (4,939) Income from continuing operations before income taxes  89,695  104,753  127,680  116,478  125,313 Provision for income taxes  26,452  30,408  47,920  32,743  46,147 Income from continuing operations   63,243  74,345  79,760  83,735  79,166 (Loss) from discontinued operations, net of income taxes  --   --   (463)  (487)  8,435 Net income   $ 63,243  $ 74,345  $ 79,297  $ 83,248  $ 87,601                         Basic earnings per common share           Income from continuing operations   $ 2.63  $ 2.92  $ 2.94  $ 2.94  $ 2.70 (Loss) from discontinued operations   --   --   (0.02)  (0.02)  0.29 Net income  $ 2.63  $ 2.92  $ 2.93  $ 2.92  $ 2.99 Basic weighted average common shares outstanding  24,092  25,459  27,084  28,463  29,307             Diluted earnings per common share           Income from continuing operations   $ 2.61  $ 2.90  $ 2.91  $ 2.92  $ 2.68 (Loss) from discontinued operations   --   --   (0.02)  (0.02)  0.29 Net income  $ 2.61  $ 2.90  $ 2.89  $ 2.90  $ 2.96 Diluted weighted average common shares outstanding  24,276  25,668  27,436  28,707  29,548            Table may not add due to rounding            Table 5THE CHILDREN'S PLACE RETAIL STORES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AT COST METHOD(In thousands, except per share amounts)(Unaudited)                    Quarter Ended                    February 2,October 27,July 28,April 28,January 28,October 29,July 30,April 30,  20132012201220122012201120112011    (As adjusted)(As adjusted)(As adjusted)(As adjusted)(As adjusted)(As adjusted)(As adjusted) Net sales  $ 509,224  $ 500,928  $ 360,826  $ 438,508  $ 457,463  $ 484,085  $ 343,508  $ 430,806 Cost of sales  320,667  291,395  246,121  259,863  294,843  286,059  225,934  249,377 Gross profit  188,557  209,533  114,705  178,645  162,620  198,026  117,574  181,429 Selling, general and administrative expenses  136,089  131,875  120,671  122,283  121,088  127,229  112,446  116,662 Asset impairment charges  215  539  280  1,250  461  369  980  398 Other costs  6,622  570  3,062  834  --   --   --   --  Depreciation and amortization   19,712  23,023  17,482  17,218  19,851  18,493  18,478  17,751 Operating income (loss)  25,919  53,526  (26,790)  37,060  21,220  51,935  (14,330)  46,618 Interest (expense), net  84  (23)  (30)  (51)  (35)  (70)  (314)  (271) Income (loss) before taxes  26,003  53,503  (26,820)  37,009  21,185  51,865  (14,644)  46,347 Provision (benefit) for income taxes  6,875  16,198  (8,896)  12,275  (2,140)  19,728  (5,757)  18,577 Net income (loss)  $ 19,128  $ 37,305  $ (17,924)  $ 24,734  $ 23,325  $ 32,137  $ (8,887)  $ 27,770                                     Earnings (loss) per common share                 Basic  $ 0.81  $ 1.55  $ (0.74)  $ 1.01  $ 0.94  $ 1.28  $ (0.35)  $ 1.06 Diluted  $ 0.80  $ 1.54  $ (0.74)  $ 1.00  $ 0.93  $ 1.27  $ (0.35)  $ 1.05                   Weighted average common shares outstanding                 Basic  23,541  24,086  24,249  24,535  24,834  25,121  25,738  26,120 Diluted  23,789  24,293  24,249  24,691  25,033  25,279  25,738  26,387  Table 6THE CHILDREN'S PLACE RETAIL STORES, INC.RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP AT COST METHOD(In thousands, except per share amounts)(Unaudited)                          Fiscal Year Ended  February 2,January 28,January 29,January 30,January 31,  20132012201120102009    (As adjusted)(As adjusted)(As adjusted)(As adjusted) Net sales  $ 1,809,486  $ 1,715,862  $ 1,673,999  $ 1,643,587  $ 1,630,323 Cost of sales  1,118,046  1,056,213  1,013,878  991,393  954,227 Gross profit  691,440  659,649  660,121  652,194  676,096 Selling, general and administrative expenses  510,918  477,425  456,558  456,338  467,730 Restructuring severance/miscellaneous costs  2,854  --   --   2,805  3,056 Proxy fees  --   --   --   2,054  --  Transition income  --   --   --   --   (11,582) Sale of store lease  --   --   --   --   (2,300) Tax benefit  --   --   --   --   (50) Legal Settlement  1,087  --   --   --   --  Settlement of employment tax audits related to stock options  --   --   (619)  (3,532)  -- Non-GAAP Selling, general and administrative expenses 506,977  477,425  457,177  455,011  478,606 Asset impairment charges  2,284  2,208  2,713  2,200  6,491 Store Impairment  1,250  --   --   852  4,902Non-GAAP Asset impairment charges 1,034  2,208  2,713  1,348  1,589 Other costs  11,088  --   --   --   213 DC exit costs  11,088  --   --   --   213Non-GAAP Other costs --  --  --  --  --  Depreciation and amortization   77,435  74,573  71,640  71,447  71,410 DC exit costs and Canadian store remodels   9,335  1,032  --   --   -- Non-GAAP Depreciation and amortization 68,100  73,541  71,640  71,447  71,410 Operating income  89,715  105,443  129,210  122,209  130,252Non-GAAP Operating income 115,329  106,475  128,591  124,388  124,491 Interest (expense), net  (20)  (690)  (1,530)  (5,731)  (4,939)  Settlement of employment  tax audits related to stock options and other misc  --   --   72  (907)  -- Non-GAAP Interest (expense), net (20) (690) (1,602) (4,824) (4,939) Income before taxes  89,695  104,753  127,680  116,478  125,313Non-GAAP Income before taxes 115,309  105,785  126,989  119,564  119,552 Provision for income taxes  26,452  30,408  47,920  32,743  46,147Non-GAAP Provision for income taxes 36,477  33,718  47,644  48,869  48,308 Income from continuing operations   63,243  74,345  79,760  83,735  79,166Non-GAAP Income from continuing operations 78,832  72,067  79,345  70,695  71,244 (Loss) from discontinued operations, net of income taxes  --   --   (463)  (487)  8,435 Net income   63,243  74,345  79,297  83,248  87,601Non-GAAP Net income $ 78,832  $ 72,067  $ 78,882  $ 70,208  $ 79,679                                     Non-GAAP Basic earnings per common share           Income from continuing operations   $ 3.27  $ 2.83  $ 2.93  $ 2.48  $ 2.43 (Loss) from discontinued operations   --   --   (0.02)  (0.02)  0.29 Net income  $ 3.27  $ 2.83  $ 2.91  $ 2.47  $ 2.72 Basic weighted average common shares outstanding  24,092  25,459  27,084  28,463  29,307             Non-GAAP Diluted earnings per common share           Income from continuing operations   $ 3.25  $ 2.81  $ 2.89  $ 2.46  $ 2.41 (Loss) from discontinued operations   --   --   (0.02)  (0.02)  0.29 Net income  $ 3.25  $ 2.81  $ 2.88  $ 2.45  $ 2.70 Diluted weighted average common shares outstanding  24,276  25,668  27,436  28,707  29,548            Table may not add due to rounding            Table 7THE CHILDREN'S PLACE RETAIL STORES, INC.RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION TO GAAP AT COST METHOD(In thousands, except per share amounts)(Unaudited)                    Quarter Ended                    February 2,October 27,July 28,April 28,January 28,October 29,July 30,April 30,  20132012201220122012201120112011    (As adjusted)(As adjusted)(As adjusted)(As adjusted)(As adjusted)(As adjusted)(As adjusted) Net sales  $ 509,224  $ 500,928  $ 360,826  $ 438,508  $ 457,463  $ 484,085  $ 343,508  $ 430,806 Cost of sales  320,667  291,395  246,121  259,863  294,843  286,059  225,934  249,377 Gross profit  188,557  209,533  114,705  178,645  162,620  198,026  117,574  181,429 Selling, general and administrative expenses  136,089  131,875  120,671  122,283  121,088  127,229  112,446  116,662 Restructuring severance/miscellaneous costs  --   --   164  2,690  --   --   --   --  Legal Settlement  --   --   1,087  --   --   --   --   -- Non-GAAP Selling, general and administrative expenses 136,089  131,875  119,420  119,593  121,088  127,229  112,446  116,662 Asset impairment charges  215  539  280  1,250  461  369  980  398 Store Impairment due to early termination  --   --   --   1,250  --   --   --   -- Non-GAAP Asset impairment charges 215  539  280  --  461  369  980  398 Other costs  6,622  570  3,062  834  --   --   --   --  DC exit costs  6,622  570  3,062  834  --   --   --   -- Non-GAAP Other costs --  --  --  --  --  --  --  --  Depreciation and amortization   19,712  23,023  17,482  17,218  19,851  18,493  18,478  17,751 DC exit costs and Canadian store remodels   2,019  5,958  465  893  922  110  --   -- Non-GAAP Depreciation and amortization 17,693  17,065  17,017  16,325  18,929  18,383  18,478  17,751 Operating income (loss)  25,919  53,526  (26,790)  37,060  21,220  51,935  (14,330)  46,618Non-GAAP Operating income (loss) 34,560  60,054  (22,012) 42,727  22,142  52,045  (14,330) 46,618 Interest (expense), net  84  (23)  (30)  (51)  (35)  (70)  (314)  (271) Income (loss) before taxes  26,003  53,503  (26,820)  37,009  21,185  51,865  (14,644)  46,347Non-GAAP Income (loss) before taxes 34,644  60,031  (22,042) 42,676  22,107  51,975  (14,644) 46,347 Provision (benefit) for income taxes  6,875  16,198  (8,896)  12,275  (2,140)  19,728  (5,757)  18,577Non-GAAP Provision (benefit) for income taxes 10,331  18,772  (7,047) 14,422  1,139  19,759  (5,757) 18,577 Net income (loss)  19,128  37,305  (17,924)  24,734  23,325  32,137  (8,887)  27,770Non-GAAP Net income (loss) $ 24,313  $ 41,259  $ (14,995) $ 28,254  $ 20,968  $ 32,216  $ (8,887) $ 27,770                                     Non-GAAP Earnings (loss) per common share                 Basic  $ 1.03  $ 1.71  $ (0.62)  $ 1.15  $ 0.84  $ 1.28  $ (0.35)  $ 1.06 Diluted  $ 1.02  $ 1.70  $ (0.62)  $ 1.14  $ 0.84  $ 1.27  $ (0.35)  $ 1.05                   Weighted average common shares outstanding                 Basic  23,541  24,086  24,249  24,535  24,834  25,121  25,738  26,120 Diluted  23,789  24,293  24,249  24,691  25,033  25,279  25,738  26,387  Table 8THE CHILDREN'S PLACE RETAIL STORES, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited)            COST METHODRETAIL METHOD            February 2,January 28,February 2,January 28,  2013201220132012Assets:  (As adjusted)     Cash and short-term investments  $ 209,128  $ 176,655  $ 209,128  $ 176,655 Accounts receivable  18,490  17,382  18,490  17,382 Inventories  266,976  237,786  241,105  212,916 Other current assets  50,641  57,105  60,391  66,372 Total current assets  545,235  488,928  529,114  473,325           Property and equipment, net  330,101  323,863  330,101  323,863 Other assets, net  48,074  53,461  48,074  53,461 Total assets  $ 923,410  $ 866,252  $ 907,289  $ 850,649          Liabilities and Stockholders' Equity:         Accounts payable  $ 87,461  $ 55,516  $ 87,461  $ 55,516 Accrued expenses and other current liabilities  104,045  76,039  104,045  76,039 Total current liabilities  191,506  131,555  191,506  131,555           Other liabilities  110,955  109,728  110,955  109,728 Total liabilities  302,461  241,283  302,461  241,283           Stockholders' equity  620,949  624,969  604,828  609,366           Total liabilities and stockholders' equity  $ 923,410  $ 866,252  $ 907,289  $ 850,649CONTACT: Jane Singer Vice President, Investor Relations (201) 453-6955