DESTINATION MATERNITY CORPORATION (NASDAQ:DEST) Files An 8-K Results of Operations and Financial Condition
Item 2.02. Results of Operations and Financial Condition

On June14, 2018, Destination Maternity Corporation (the “Company”) issued a press release and held a broadly accessible conference call to discuss its financial results for the quarter ended May5, 2018. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. A copy of the script read by management during the conference call is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The press release contained non-GAAP financial measures within the meaning of the Securities and Exchange Commission’s Regulation G, including: (a)Adjusted net income (loss) together with the per share – diluted amount represented by this measure; (b)Adjusted EBITDA (operating income (loss) before deduction for the following non-cash charges: (i)depreciation and amortization expense; (ii)loss on impairment of tangible and intangible assets; (iii)loss on disposal of assets; and (iv)stock-based compensation expense), together with the percentage of net sales represented by this measure; and (c)Adjusted EBITDA before other charges and effect of change in accounting principle, together with the percentage of net sales represented by this measure.

The Company believes that each of these non-GAAP financial measures provides useful information about the Company’s results of operations and/or financial position to both investors and management. Each non-GAAP financial measure is provided because management believes it is an important measure of financial performance used in the retail industry to measure operating results, to determine the value of companies within the industry and to define standards for borrowing from institutional lenders. The Company uses each of these non-GAAP financial measures as a measure of the performance of the Company. In addition, certain of the Company’s cash and equity incentive compensation plans are based on the Company’s level of achievement of Adjusted EBITDA before other charges and effect of change in accounting principle.

The Company provides these measures to investors to assist them in performing their analysis of its historical operating results. Each of these non-GAAP financial measures reflects a measure of the Company’s operating results before consideration of certain charges or credits and consequently, none of these measures should be construed as an alternative to net income (loss) or operating income (loss) as an indicator of the Company’s operating performance, as determined in accordance with generally accepted accounting principles. The Company may calculate each of these non-GAAP financial measures differently than other companies.

With respect to the non-GAAP financial measures discussed in the press release, the Company has provided, as an attachment to such press release, a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

The disclosure in this Current Report, including in the Exhibits attached hereto, of any financial information shall not constitute an admission that such information is material.

The following exhibits are filed or furnished with this Form 8-K:

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Destination Maternity Corp Exhibit
EX-99.1 2 d580335dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 Destination Maternity Reports First Quarter Fiscal 2018 Results – Reports net income for first quarter compared to net loss in prior year first quarter – Adjusted EBITDA Before Other Charges increases 24% from prior year first quarter – E-commerce sales rise 43% from prior year first quarter – Continued cost savings improvements with Selling,…
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About DESTINATION MATERNITY CORPORATION (NASDAQ:DEST)

Destination Maternity Corporation, formerly Mothers Work, Inc. is a designer and retailer of maternity apparel in the United States. The Company operates a chain of maternity apparel specialty stores. The Company operates through the design, manufacture, and sale of maternity apparel and related accessories segment. It operates approximately 1,815 retail locations, including over 540 stores in the United States, Canada and Puerto Rico, and approximately 1,280 leased departments located within department stores and baby specialty stores throughout the United States, in Puerto Rico and, in England. The Company sells merchandise on the Internet, primarily through its Motherhood.com, APeaInThePod.com and DestinationMaternity.com Websites. The Company also sells its merchandise through its Canadian Website, MotherhoodCanada.ca, through Amazon.com in the United States, and through Websites of certain of its retail partners.