LIZ: Q3 Quick Take

 

No major surprises in LIZ’s numbers to note this morning before the call. Fundamentals appear largely in-line with our expectations and management’s outlook for both 2011 and 2012 adjusted EBITDA remains unchanged. That said, there was also little by way of updates regarding several items that that we expect to be discussed in more detail on the call at 10am:

 

These include:

  • What if any corporate expenses related to the legacy Partnered Brands now divested are expected to be carried forward. Assuming there are some, what is the plan and timeline for when we can expect these to be eliminated.
  • An update regarding debt reduction – particularly the timing of when the volatile Eurobond might be settled.
  • As a non-cash tax payer and with the Mexx deal now completed, we should also get an update re the size of NOLs. 

The bottom-line is that there is no change to our view based on this release and we continue to think the company’s 2012 EBITDA guidance looks conservative. We’ll follow up as warranted after the call.

 

Call at 10am (code: 22874487)

 

 

Casey Flavin

Director


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