Fred's (FRED) Reports Q4 Loss of $1.86/Share

Fred's (NASDAQ: FRED) reported Q4 EPS of ($1.86), versus ($0.68) reported last year. Revenue for the quarter came in at $307.1 million, versus $370.9 million reported last year.

Going Concern; Other Matters

As further detailed in Fred’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019, filed with the Securities and Exchange Commission on May 3, 2019, the report of Fred’s independent registered public accounting firm includes an explanatory paragraph indicating that there is substantial doubt about Fred’s ability to continue as a going concern. The receipt of this explanatory paragraph with respect to Fred’s financial statements for the year ended February 2, 2019 will result in a breach of a covenant under Fred’s Revolving Credit Agreement, which will constitute an event of default under such agreement. In addition, Fred’s lenders under the Revolving Credit Agreement have indicated to Fred’s their belief that certain other events of default have occurred under the Revolving Credit Agreement in connection with Fred’s previously-announced closure of 159 stores, the inventory sales at certain stores and the timing of delivery, and content, of a borrowing base certificate due under the Revolving Credit Agreement. An event of default, which is not cured or waived, may permit acceleration of Fred’s indebtedness under the Revolving Credit Agreement, among other remedies. Fred’s is currently seeking an agreement with its lenders pursuant to which such lenders would forbear for a period of time from seeking remedies on account of, or waive, the foregoing events or potential events of default, but there is no assurance that Fred’s will receive such forbearance or waivers.

For earnings history and earnings-related data on Fred's (FRED) click here.

You May Also Be Interested In

• Diana Shipping withdraws bid to acquire Genco Shipping
• Star Equity to acquire Harte Hanks for $5 per share in cash and stock
• Algorhythm Holdings (RIME) Tops Q2 EPS by 54c