Toys ‘R’ Us focusing on strategic plan, ends 2014 with reduced liquidity of $1.9 billion

By Lisa Kerner

Charlotte, N.C., March 24 – Toys ‘R’ Us, Inc. made steady progress in 2014 toward implementing its new strategic plan designed to grow future revenue and profits, according to chairman and chief executive officer Antonio Urcelay.

On Tuesday, Toys ‘R’ Us held a presentation for investors, industry analysts and the media, providing an update on its strategy to improve the company’s operational performance.

During the year, the company slowed the decline in sales, stabilized cash flow and improved EBITDA, and realized a growth in global internet sales and improved U.S. margin, according to presentation materials.

Looking ahead, the Wayne, N.J.-based toy retailer will focus on four key priorities that include continuing to transform the customer experience in-store and online, as well as optimizing the e-commerce business.

Toys ‘R’ Us will also focus on growing internationally and right-sizing the company’s cost structure, according to a news release.

The company said it recently completed the refinancing of $1.4 billion of its near-term debt maturities. As a result, Toys ‘R’ Us has no significant outstanding debt repayments due until 2017.

At Dec. 31, the company had liquidity of about $1.9 billion, including borrowing capacity of $99 million. This compares to $2.4 billion and $1 billion, respectively, for the third quarter of 2014.

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