Barington Capital Group Continues to Seek Meeting With William Dillard

by John Henry  on Friday, Aug. 3, 2007 8:54 am  

James Mitarotonda, a co-founder and principal of Barington Capital Group, as seen in an article from the Wall Street Reporter here.

James A. Mitarotonda

 

(1) Dillard's last twelve month earnings before interest, taxes, depreciation, amortization and rent ("EBITDAR") margin is 9.0% versus the industry average of 13.2%. Industry group comprised of Bon Ton Stores Inc., Macy's, Inc., J.C. Penney Company, Inc., Nordstrom Inc., Kohl's Corp., Saks Inc., Stage Stores Inc. and Gottschalks Inc.

(2) On average, Dillard's same store sales growth has lagged its competitors by 3.9 percentage points per annum over the past 5 years. Dillard's has not posted an increase in annual same store sales since 1999.

(3) Dillard's Adjusted Enterprise Value / EBITDAR is 5.6x versus the industry average of 8.0x. Enterprise Value has been adjusted by capitalizing rent expense at 8x.

 

 

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