8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8–K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): March 21, 2014(March 20, 2014)
THE WET SEAL, INC.
(Exact Name of Registrant as Specified in Charter)

Delaware	001-35634	33-0415940
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
	26972 Burbank Foothill Ranch, CA 92610
(Address of principal executive offices; zip code)

Registrant’s telephone number, including area code:

(949) 699-3900

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 14d-2(b))

[] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On March 20, 2014, The Wet Seal, Inc. (the "Company") issued a press release reporting the financial results of the Company for the fiscal fourth quarter and full year ended February 1, 2014. Additionally, the Company provided financial guidance for its fiscal 2014 first quarter. A copy of the Company's press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure

As previously announced, on March 20, 2014, the Company entered into a definitive agreement with a single institutional investor to issue $27 million of convertible notes as well as warrants to purchase Class A common stock in a private placement.  The transaction is expected to close on March 26, 2014, subject to customary closing conditions.  The company intends to use the proceeds for general corporate purposes.

In anticipation of a potential private placement of securities, the Company had conducted presentations for prospective investors during which the Company furnished  the attached slides.  Each prospective investor was bound by confidentiality obligations with respect to the materials.  The Company hereby furnishes the slides that the Company presented to the prospective investors.  A copy of the slides used in the presentations is attached as Exhibit 99.2 to this Current Report on Form 8-K.

The information furnished by the Company pursuant to this item, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired.

Not Applicable.

(b)  Pro Forma Financial Information. Not Applicable.

(c)  Shell Company Transactions. Not Applicable.

(d)  Exhibits.

99.1    Press release, dated March 20, 2014, issued by the Company.

99.2    Investor Presentation

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

		THE WET SEAL, INC. (Registrant)
Date: March 21, 2014	By:	/s/ Steven H. Benrubi
	Name:	Steven H. Benrubi
	Title:	Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

Contact:

Steven H. Benrubi

(949) 699-3947

THE WET SEAL, INC. ANNOUNCES

FOURTH QUARTER AND FISCAL 2013 FINANCIAL RESULTS

Provides Outlook for the First Quarter of Fiscal 2014

Strengthens Capital Structure with $27 Million Private Placement of

Senior Convertible Notes

FOOTHILL RANCH, CA, March 20, 2014 (BUSINESS WIRE) -- The Wet Seal, Inc. (Nasdaq:WTSL), a leading specialty retailer to young women, announced results for its fiscal fourth quarter and full year ended February 1, 2014. The Company noted that fiscal 2013 had 52 weeks versus 53 weeks in fiscal 2012; results for the fourth quarter and fiscal year 2012 include the additional week.

Fourth Quarter 2013

• Net sales for the 13-week fourth quarter were $124.8 million compared to net sales of $161.7 million for the 14-week fourth quarter in fiscal 2012.

• Consolidated comparable store sales declined 16.5%, including a comparable store sales decline of 15.4% at Wet Seal and 25.0% at Arden B. Comparable store sales for the current year quarter are versus the comparable thirteen weeks from the prior year. Versus the comparable thirteen week period from prior year, net sales for the fourth quarter of fiscal 2013 declined approximately 14% at Wet Seal, 43% at Arden B and 18% on a consolidated basis.

• Gross profit was $23.4 million, or 18.8% of sales, compared to $40.1 million, or 24.8% of sales, in the fourth quarter of fiscal 2012.

• Operating loss was $27.3 million compared to operating loss of $25.5 million in the prior year quarter.

• The current year and prior year quarters included $8.0 million and $8.0 million, respectively, of non-cash asset impairment charges. The prior year quarter also included (i) a $6.6 million charge to accrue loss contingencies for several litigation matters, (ii) a $0.2 million benefit to adjust the amount of professional fees incurred to defend against a shareholder proxy solicitation to replace certain of the Company’s board members, which ultimately led to an agreement to replace four of the Company’s seven board members, (iii) $1.3 million in severance charges for a workforce reduction, and (iv) a $0.5 million charge for the early termination of two investment banker retention agreements. Non-GAAP adjusted operating loss, excluding non-cash asset impairment charges, was $19.3 million in the 2013 fourth quarter. Non-GAAP adjusted operating loss, excluding the impact of the aforementioned adjustment and charges, was $9.3 million in the 2012 fourth quarter (see reconciliation below of GAAP to non-GAAP financial measures).

• In the fourth quarter of fiscal 2012, the Company recorded a non-cash provision for income taxes of $71.1 million to establish a valuation allowance against its net deferred income tax assets.

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• Fourth quarter net loss was $27.5 million, or $0.33 per diluted share, compared to net loss of $85.8 million, or $0.97 per diluted share, in the prior year quarter. Non-GAAP adjusted net loss in the fourth quarter of 2013, excluding the after-tax effect of the asset impairment charges, was $19.5 million, or $0.23 per diluted share. For the fourth quarter of fiscal 2012, non-GAAP adjusted net loss, excluding the after-tax effect of the proxy solicitation cost adjustment, as well as asset impairment, loss contingency, severance and investment banker early termination charges, and the provision for income taxes to establish the deferred tax asset valuation allowance, was $4.8 million, or $0.06 per diluted share.

John D. Goodman, Chief Executive Officer, stated, “Although we concluded fiscal 2013 with a difficult fourth quarter, we made substantial progress during the year against our turnaround strategies, which provides a strong foundation for the business. In light of the difficulties we faced, and which continue to impact us in the first quarter, we are taking action to respond to ongoing macro pressures and the changing retail environment. We recently enhanced our Board of Directors with the addition of three members who have tremendous experience in social, digital and e-commerce - key areas of focus within our business. Additionally, we improved our financial position through the financing transaction announced separately today. Most important, we’ve developed and begun implementing a strategic plan designed to restore comparable store sales growth, improve merchandise margins and strengthen our market position.

"The core elements of our 2014 plans include product, merchandising and customer engagement initiatives; driving significant growth in our e-commerce business; transforming our Wet Seal real estate portfolio; and pursuing the significant opportunity we see in the plus-size market. We are moving quickly to execute and believe the new strategic direction will put us on a path to improving our financial results, stabilizing our operating cash flow and achieving long-term growth.”

Fiscal Year 2013

• Net sales for the 52-week period were $530.1 million compared to net sales of $580.4 million in the 53-week period of fiscal 2012.

• Consolidated comparable store sales declined 4.1%, including a comparable store sales decline of 3.6% at Wet Seal and 7.6% at Arden B. Comparable store sales for fiscal 2013 are versus the comparable 52 weeks from the prior year. Versus the comparable 52-week period from prior year, net sales for the fiscal year 2013 declined approximately 3% at Wet Seal, 28% at Arden B and 7% on a consolidated basis.

• Gross profit was $135.2 million compared to $140.5 million in the prior year, while gross margin was 25.5% versus 24.2% in the prior year.

• Operating loss was $37.9 million compared to operating loss of $70.3 million in fiscal 2012. Operating loss for fiscal 2013 included $14.9 million in non-cash fixed asset impairment charges and a $3.5 million benefit to adjust a loss contingency. Operating loss for fiscal 2012 included (i) $27.0 million in non-cash fixed asset impairment charges, (ii) $7.1 million in loss contingency charges for several litigation matters, (iii) $1.9 million in professional fees to defend against a shareholder proxy solicitation, (iv) $1.9 million in CEO severance costs, (v) $1.3 million in severance charges for the workforce reduction, and (vi) a $0.5 million charge for the early termination of two investment banker retention agreements. Non-GAAP adjusted operating loss, excluding the non-cash asset impairment charges and benefit to adjust a loss contingency, was $26.5 million in fiscal 2013, compared to non-GAAP adjusted operating loss, excluding the impact of the aforementioned charges, of $30.6 million in fiscal 2012.

• Fiscal 2012 includes the aforementioned non-cash provision for income taxes of $71.1 million to establish the valuation allowance against the Company’s net deferred income tax assets.

• Net loss was $38.4 million, or $0.45 per diluted share, compared to net loss of $113.2 million, or $1.28 per diluted share, in fiscal 2012. Non-GAAP adjusted net loss in fiscal 2013, excluding the after-tax effect of non-cash asset impairment charges and the benefit to adjust a loss contingency, was $27.0 million, or $0.32 per diluted share. Non-GAAP adjusted net loss in fiscal 2012, excluding the after-tax effect of the

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asset impairment, loss contingency, proxy solicitation, CEO severance, workforce reduction severance and investment banker early termination charges, and the provision for income taxes to establish the deferred tax asset valuation allowance, was $17.8 million, or $0.21 per diluted share.

Balance Sheet

As of February 1, 2014, the Company had cash and cash equivalents and short-term investments of $46 million and no debt. Inventory totaled $31.2 million, a decrease of 7.6% versus a year ago, and was in line with management’s expectations. Net capital expenditures were $21.5 million, and were primarily used for new store openings and existing store improvements.

In a separate press release issued today, the Company announced that it has entered into an agreement to issue $27 million in aggregate principal amount of Senior Convertible Notes and related common stock warrants.

Goodman noted, “We are operating conservatively during this time and made the strategic decision to strengthen our capital structure to better position the Company to restore profitability. We now have an enhanced level of flexibility to support our tactical plans in 2014, which includes reduced capital spending versus last year, with investments focused on our strategic initiatives.”

Real Estate

During the fourth quarter of fiscal 2013, the Company opened 13 and closed 9 Wet Seal stores and closed 2 Arden B stores. As of February 1, 2014, the Company operated 532 stores in 47 states and Puerto Rico, including 475 Wet Seal stores and 57 Arden B stores.

Financial Guidance

The Company provided the following guidance for the first quarter of fiscal 2014 ending May 3, 2014. Net loss per diluted share is expected to be in the range of $0.16 to $0.19. The guidance is based on anticipated comparable store sales, which includes e-commerce, in the negative mid- to high-teens.

In fiscal 2014, the Company expects to open 10 new Wet Seal stores, primarily in outlet centers, and close approximately 17 Wet Seal stores upon lease expiration. The Company also expects to close approximately 13 Arden B locations upon lease expiration. Net capital expenditures are expected to be between $10.5 million and $11.5 million, of which approximately $6 million to $7 million will be used for remodeling of existing stores upon lease renewals and/or store relocations or construction of new stores.

Mr. Goodman continued, “We entered fiscal 2014 in a clean inventory position. Our first quarter outlook primarily reflects continuing softness in mall traffic and ongoing promotional pressure, as well as significant weather challenges, and we will continue to manage inventory appropriately. Of note, trends in our e-commerce business are beginning to strengthen, with year-over-year growth quarter to date, as we focus on increasing the capabilities and effectiveness of our new platform. Additionally, we are ramping up our presence in the key areas of digital marketing, mobile and social media to more effectively reach our core customer and drive traffic to both our stores and website.”

Earnings Conference Call To Be Held Friday, March 21st at 8:00 a.m. Eastern Time

The Company will host a conference call and question and answer session at 8:00 a.m. Eastern Time tomorrow. To participate in the conference call, please dial (877) 407-3982 or (201) 493-6780. A broadcast of the call will also be available on the Company's website, www.wetsealinc.com. A replay of the call will be available through April 4, 2014. To access the replay, please call (877) 870-5176 or (858) 384-5517 and provide the ID number 13574705.

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About The Wet Seal, Inc.

Headquartered in Foothill Ranch, California, The Wet Seal, Inc. is a leading specialty retailer of fashionable and contemporary apparel and accessory items. As of February 1, 2014, the Company operated a total of 532 stores in 47 states and Puerto Rico, including 475 Wet Seal stores and 57 Arden B stores. The Company's products can also be purchased online at www.wetseal.com or www.ardenb.com. For more Company information, visit www.wetsealinc.com.

Safe Harbor

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the Company's estimated fiscal 2014 first quarter guidance and full year store growth and capital spending plans, and the anticipated impact of current strategic initiatives on the Company’s sales and profitability growth, as well as the intent, belief, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. This news release contains results reflecting partial year data and non-fiscal data that may not be indicative of results for similar future periods or for the full year. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

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Exhibit A

The Wet Seal, Inc.

Condensed Consolidated Balance Sheets

(Dollars in 000’s)

(Unaudited)

	February 1, 2014		February 2, 2013
ASSETS
Cash and cash equivalents	$	38,772	$	42,279
Short-term investments	7,386		67,694
Merchandise inventories	31,209		33,788
Other current assets	16,113		15,467
Total current assets	93,480		159,228
Net equipment and leasehold improvements	56,289		64,225
Other assets	1,970		3,053
Total assets	$	151,739	$	226,506
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable – merchandise	$	18,530	$	16,978
Accounts payable – other	8,814		18,116
Accrued liabilities	20,704		26,347
Current portion of deferred rent	3,508		2,289
Total current liabilities	51,556		63,730
Deferred rent	31,066		32,136
Other long-term liabilities	1,784		1,908
Total liabilities	84,406		97,774
Total stockholders’ equity	67,333		128,732
Total liabilities and stockholders’ equity	$	151,739	$	226,506

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Exhibit A (Continued)

The Wet Seal, Inc.

Condensed Consolidated Statements of Operations

(Dollars in 000’s, Except Share Data)

(Unaudited)

	13 Weeks Ended			14 Weeks Ended			52 Weeks Ended			53 Weeks Ended
	February 1, 2014			February 2, 2013			February 1, 2014			February 2, 2013
Net sales	$	124,776		$	161,654		$	530,134		$	580,397
Gross margin	23,406			40,051			135,238			140,501
Selling, general & administrative expenses	42,719			57,575			158,311			183,790
Asset impairment	7,954			7,965			14,873			27,000
Operating loss	(27,267		)	(25,489		)	(37,946		)	(70,289		)
Interest expense, net	(31		)	(11		)	(44		)	(39		)
Loss before provision (benefit) for income taxes	(27,298		)	(25,500		)	(37,990		)	(70,328		)
Provision (benefit) for income taxes	243			60,310			393			42,903
Net loss	$	(27,541	)	$	(85,810	)	$	(38,383	)	$	(113,231	)
Weighted average shares, basic	83,765,340			88,859,277			85,463,074			88,705,289
Net loss per share, basic	$	(0.33	)	$	(0.97	)	$	(0.45	)	$	(1.28	)
Weighted average shares, diluted	83,765,340			88,859,277			85,463,074			88,705,289
Net loss per share, diluted	$	(0.33	)	$	(0.97	)	$	(0.45	)	$	(1.28	)

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Exhibit A (continued)

The Wet Seal, Inc.

Consolidated Statements of Cash Flows

(Dollars in 000’s)

(Unaudited)

	Fiscal Year Ended
	February 1,			February 2,
	2014			2013
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$	(38,383	)	$	(113,231	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	13,747			17,497
Amortization of premium on investments	149			-
Amortization of deferred financing costs	107			107
Asset impairment	14,873			27,000
Loss on disposal of equipment and leasehold improvements	516			667
Deferred income taxes	-			43,913
Stock-based compensation	1,644			2,949
Stock-based compensation tax shortfalls	-			(1,320		)
Changes in operating assets and liabilities:
Income taxes receivable	145			(86		)
Other receivables	(1,492		)	(293		)
Merchandise inventories	2,579			(1,954		)
Prepaid expenses and other assets	594			(8,980		)
Other non-current assets	1,083			9
Accounts payable and accrued liabilities	(13,151		)	8,897
Deferred rent	149			(1,227		)
Other long-term liabilities	(149		)	(139		)
Net cash used in operating activities	(17,589		)	(26,191		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment and leasehold improvements	(21,464		)	(20,406		)
Proceeds from disposal of equipment and leasehold improvements	22			-
Investment in marketable securities	(9,500		)	(67,694		)
Proceeds from maturity of marketable securities	69,659			-
Net cash provided by (used in) investing activities	38,717			(88,100		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	747			19
Repurchase of common stock	(25,382		)	(634		)
Net cash used in financing activities	(24,635		)	(615		)
DECREASE IN CASH AND CASH EQUIVALENTS	(3,507		)	(114,906		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	42,279			157,185
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	38,772		$	42,279

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Exhibit B

Segment Reporting (Unaudited)

The Company operates exclusively in the retail apparel industry in which it sells trend-right and fashionable contemporary apparel and accessory items, primarily through mall-based chains of retail stores, to female consumers with a young, active lifestyle. The Company has identified two operating segments (“Wet Seal” and “Arden B”) as defined under applicable accounting standards. E-commerce operations for Wet Seal and Arden B are included in their respective operating segments. Information for the 13 and 52 weeks ended February 1, 2014, and 14 and 53 weeks ended February 2, 2013, for the two reportable segments is set forth below (in thousands, except number of stores and sales per square foot):

Thirteen weeks ended February 1, 2014	Wet Seal			Arden B			Corporate			Total
Net sales	$	111,481		$	13,295		n/a			$	124,776
% of total sales	89		%	11		%	n/a			100		%
Comparable store sales % increase (decrease)	(15.4		)%	(25.0		)%	n/a			(16.5		)%
Operating loss	$	(14,702	)	$	(3,023	)	$	(9,542	)	$	(27,267	)
Interest expense, net	$	—		$	—		$	(31	)	$	(31	)
Loss before provision for income taxes	$	(14,702	)	$	(3,023	)	$	(9,573	)	$	(27,298	)
Depreciation	$	2,762		$	260		$	527		$	3,549
Number of stores as of period end	475			57			n/a			532
Sales per square foot	$	54		$	65		n/a			$	55
Square footage as of period end	1,888			178			n/a			2,066
Fourteen weeks ended February 2, 2013	Wet Seal			Arden B			Corporate			Total
Net sales	$	137,220		$	24,434		n/a			$	161,654
% of total sales	85		%	15		%	n/a			100		%
Comparable store sales % decrease	(9.1		)%	(3.1		)%	n/a			(8.3		)%
Operating loss	$	(5,085	)	$	(1,142	)	$	(19,262	)	$	(25,489	)
Interest expense, net	$	—		$	—		$	(11	)	$	(11	)
Loss before benefit for income taxes	$	(5,085	)	$	(1,142	)	$	(19,273	)	$	(25,500	)
Depreciation	$	3,218		$	324		$	424		$	3,966
Number of stores as of period end	468			62			n/a			530
Sales per square foot (1)	$	64		$	83		n/a			$	66
Square footage as of period end	1,871			192			n/a			2,063

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Exhibit B (continued)

Fifty-two weeks ended February 1, 2014	Wet Seal			Arden B			Corporate			Total
Net sales	$	469,726		$	60,408		n/a			$	530,134
% of total sales	89		%	11		%	n/a			100		%
Comparable store sales % decrease	(3.6		)%	(7.6		)%	n/a			(4.1		)%
Operating loss	$	(777	)	$	(4,398	)	$	(32,771	)	$	(37,946	)
Interest expense, net	$	—		$	—		$	(44	)	$	(44	)
Loss before provision for income taxes	$	(777	)	$	(4,398	)	$	(32,815	)	$	(37,990	)
Depreciation	$	10,696		$	1,142		$	1,909		$	13,747
Sales per square foot	$	236		$	284		n/a			$	241
Fifty-three weeks ended February 2, 2013	Wet Seal			Arden B			Corporate			Total
Net sales	$	495,027		$	85,370		n/a			$	580,397
% of total sales	85		%	15		%	n/a			100		%
Comparable store sales % decrease	(10.1		)%	(9.9		)%	n/a			(10.1		)%
Operating loss	$	(13,086	)	$	(7,757	)	$	(49,446	)	$	(70,289	)
Interest expense, net	$	—		$	—		$	(39	)	$	(39	)
Loss before benefit for income taxes	$	(13,086	)	$	(7,757	)	$	(49,485	)	$	(70,328	)
Depreciation	$	14,239		$	1,639		$	1,619		$	17,497
Sales per square foot (1)	$	245		$	296		n/a			$	251

(1) Sales for the 53^rd week of fiscal 2012 were excluded from “sales” for purposes of calculating “sales per square foot” in order to make the fourth quarter and full year of fiscal 2012 comparable to fiscal 2013.

The “Corporate” column is presented to allow for reconciliation of segment contribution amounts to consolidated operating loss, interest expense, net, and loss before provision for income taxes. Wet Seal and Arden B segment results include net sales, cost of sales, asset impairment and other direct store and field management expenses, with no allocation of corporate overhead or interest income and expense.

Wet Seal operating segment results for Q4 2013 and Q4 2012 include $6.5 million and $7.7 million, respectively, of asset impairment charges. Wet Seal operating segment results for fiscal 2013 and fiscal 2012 include $12.7 million and $24.0 million, respectively, of asset impairment charges.

Arden B operating segment results for Q4 2013 and Q4 2012 include $1.5 million and $0.3 million, respectively, of asset impairment charges. Arden B operating segment results for fiscal 2013 and fiscal 2012 include $2.2 million and $3.0 million, respectively, of asset impairment charges.

Corporate expenses for Q4 2012 and fiscal 2012 include $6.6 million and $7.1 million, respectively, of loss contingency for several litigation matters, a credit of $0.2 million and a charge of $1.9 million, respectively, for professional fees to defend against a shareholder proxy solicitation to replace certain of the Company’s board members, which ultimately led to an agreement to replace four of the Company’s seven board members, $1.3 million in net severance charges for a workforce reduction and a $0.5 million charge upon the early termination of two investment banker retention agreements, and for fiscal 2012 include $1.9 million in CEO severance costs.

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Exhibit C

Non-GAAP Financial Measures

Included within this press release are references to non-GAAP financial measures (“non-GAAP” or “adjusted”), including operating loss, net loss and net loss per diluted share excluding the effect of certain adjustments and charges. These financial measures are not in compliance with U.S. generally accepted accounting principles (“GAAP”) and are not necessarily comparable to similar measures presented by other companies. The Company believes that this non-GAAP information is useful as an additional means for investors to evaluate the Company’s operating performance, when reviewed in conjunction with its GAAP financial statements. These amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating the Company’s business and operations. For further information, see “Company Statement on Disclosure of Non-GAAP Financial Measures” within the Investor Relations section of the Company’s corporate web site, www.wetsealinc.com.

The following is a reconciliation of the applicable GAAP financial measures to these non-GAAP financial measures (in millions, except for net loss per diluted share):

	13 Weeks Ended									14 Weeks Ended
	February 1, 2014									February 2, 2013
	Operating Loss			Net Loss			Net Loss Per Diluted Share			Operating Loss			Net Loss			Net Loss Per Diluted Share
GAAP financial measure	$	(27.3	)	$	(27.5	)	$	(0.33	)	$	(25.5	)	$	(85.8	)	$	(0.97	)
Adjustments and Charges:
Adjustment to proxy solicitation costs, net of income taxes where applicable	—			—			—			(0.2		)	(0.1		)	—
Employee severance, net of income taxes where applicable	—			—			—			1.3			0.8			0.01
Investment banker early termination fees, net of income taxes where applicable	—			—			—			0.5			0.3			—
Non-cash asset impairment charges, net of income taxes where applicable	8.0			8.0			0.10			8.0			4.9			0.05
Loss contingencies for several litigation matters, net of income taxes where applicable	—			—			—			6.6			4.0			0.05
Establishment of valuation allowance against net deferred income tax assets	—			—			—			—			71.1			0.80
Non-GAAP financial measures	$	(19.3	)	$	(19.5	)	$	(0.23	)	$	(9.3	)	$	(4.8	)	$	(0.06	)
	52 Weeks Ended									52 Weeks Ended
	February 1, 2014									February 2, 2013
	Operating Loss			Net Loss			Net Loss Per Diluted Share			Operating Loss			Net Loss			Net Loss Per Diluted Share
GAAP financial measure	$	(37.9	)	$	(38.4	)	$	(0.45	)	$	(70.3	)	$	(113.2	)	$	(1.28	)
Charges:
Proxy solicitation costs, net of income taxes where applicable	—			—			—			1.9			1.2			0.01
CEO severance cost, net of income taxes	—			—			—			1.9			1.2			0.01
Employee severance, net of income taxes where applicable	—			—			—			1.3			0.8			0.01
Investment banker early termination fees, net of income taxes where applicable	—			—			—			0.5			0.3			—
Non-cash asset impairment charges, net of income taxes where applicable	14.9			14.9			0.17			27.0			16.5			0.19
Loss contingencies for several litigation matters, net of income taxes where applicable	(3.5		)	(3.5		)	(0.04		)	7.1			4.3			0.05
Establishment of valuation allowance against net deferred income tax assets	—			—			—			—			71.1			0.80
Non-GAAP financial measures	$	(26.5	)	$	(27.0	)	$	(0.32	)	$	(30.6	)	$	(17.8	)	$	(0.21	)

10

EX-99.2

Disclaimer 1 This presentation contains forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and assumptions about our Company, economic and market sectors and the industry in which we do business, among other things. These statements are not guarantees of future performance, and we undertake no obligation to publicly update any forward- looking statements whether as a result of new information, future events or otherwise. Actual events and results may differ from those expressed in any forward-looking statements due to a number of factors. Factors that could cause our actual performance, future results and actions to differ materially from any forward-looking statements include, but are not limited to, those discussed in risk factors within our Form 10-K for the fiscal year ended February 2, 2013, as filed with the Securities and Exchange Commission.

Name Title Background John Goodman Chief Executive Officer • Joined Wet Seal in 2013 • Sears/Kmart (Apparel and Home) • Charlotte Russe • Mervyn’s • Dockers® • Gap/Old Navy/Banana Republic • Bloomingdale’s Steve Benrubi Chief Financial Officer • Joined Wet Seal in 2005 • CKE Restaurants • Champion Enterprises • Domino’s Pizza Management 2

Number of stores: 475 Target age: 13-23; core customer 16 Average unit retail: $8.82 Store size: 4,000 square feet Sales per square foot: $236 Primary competitors: Charlotte Russe, Forever 21 Total Revenue (a) Revenue Mix (a) (a) Based on fiscal 2013 revenue figure of $530 million (subject to audit completion). Wet Seal Overview 3 Wet Seal Arden B. Number of stores: 57 Target age: 24-34; core customer 28 Average unit retail: $29.45 Store size: 3,100 square feet Sales per square foot: $284 Primary competitors: bebe, Express

National Presence 4 62 6 11 1 14 1 3 4 36 5 11 1 4 2 18 2 13 1 3 6 1 5 2 5 16 4 1 9 2 14 2 10 1 10 2 2 36 1 2 1 14 6 4 17 2 9 4 17 3 3 4 19 1 3 1 7 1 2 8 41 6 5 13 3 12 1 2 7 3 1 Puerto RicoHI AK Wet Seal has a national footprint with strong store bases in California, Texas and Florida 5 5

Wet Seal customers are interested in fashion at affordable price points • She is fashionable and on-trend • She creates her own signature look by matching core products with new and unique pieces • She wants trendy apparel and accessories that are affordable given a typical teen budget Wet Seal customer style Other brands she shops • Friends • Family • Magazines • Social Media • Celebs / TV • Store Cues Wet Seal is a bold, well connected, playful brand providing current fashion trends that the optimistic teen girl desires Sources of style inspiration Our Customer 5

Target Demographic 6 Wet Seal customer profile Age 13-23 Ethnicity >50% multicultural • 31% African American • 19% Hispanic • 5% Asian • 3% other Household Income • 39% <$50,000 per household • 22% are from “low income” households Location • 79% suburban and metro • Live within 17-minute drive from store (on average) Shopping objective • Most are buying for leisure rather than for school or work 64.0% 42.0% 16.3% 19.0% 13.0% 31.0% 3.6% 0 100 80 60 40 20 White U.S. Demographics vs. Wet Seal customers Percentage of females 15‐24 Hispanic Origin African American Asian Other Wet Seal customers 100% 5.0% 3.0% U.S. 2010 100% 3.1% Expected growth of Wet Seal customers (2010-15F) All U.S. females 15-24 0.51% Wet Seal customers 0.54% Expected growth rates, females 15-24 (2010-15F) African American (0.6)% Asian 2.1% Hispanic 3.2% White (0.1)% Other 2.0% Wet Seal has a multicultural customer base of teenage girls, who live in suburban or metro areas and come from middle to low income families

Premium Price Driven SophisticatedYouthful Competitive Positioning 7

Key Product Categories Dresses Accessories 8 Footwear Tops Bottoms Denim

Arden B. Overview 9 Product strategy • Target assortment based on the sexy, confident woman aged 24–34 ― Balanced assortment: dress her for every occasion in her life ― Dresses are a year round core competency, from casual to dressy to evening • On-trend fashion that stays true to the brand ― Follow trends, but always through the Arden B. filter • Majority of products are exclusive to Arden B. Strongest competitors Points of differentiation P r e m i u m p r i c i n g • Price ― Attainable prices • Quality ― High quality in terms of fit and material Arden B. offers trend-right, high quality fashion at attainable prices for the sexy, confident woman in her late 20s to early 30s

Arden B. Positioning 10 Demographic metric Commentary Age 24-34 Diversity Diverse racial and ethnic profile Income $25,000-$74,999 Fashion attitudes Feminine, confident, social, sexy Why she shops The Arden B. woman is connected and fashionable – she wants to look her best for every social occasion, from dinner with friends to cocktails and parties Arden B. customer profile Premium Price Driven SophisticatedYouthful The Arden B. customer is older than the Wet Seal customer, which is reflected in her fashion attitudes

• Ability to test and reorder products / leverage short lead times • Leave money open to buy and chase opportunities • Read, react and quickly feed trending categories • Facilitate rapid inventory turns (7x a year) • These vendors also serve as a key source of our trend directions Deep Relationships with Quick-source Vendors 11 Our relationships with our vendors provide us with some key advantages

• We enjoyed several years of strong merchandise margins, gross profit and EBITDA – Focus on fast fashion and core customer • In 2011, a new CEO joined from American Eagle and shifted the business away from the core merchandising focus – Targeted older customer – Extended product lead times – Elevated price points – Narrowed assortments – Merchandise was not on-trend – Reduced frequency of buyer visits with vendors • As a result, we alienated our core customer and significantly impacted merchandise margins Steady Results Until 2012 12 Historical Financials (US$ in millions) 2009 2010 2011 2012 Revenue $560.9 $581.2 $620.1 $580.4 Gross Margin 29.7% 31.0% 31.5% 24.2% EBITDA 39.1 47.8 48.9 (13.1) EBITDA Margin 7.0% 8.2% 7.9% (2.3%) Note: EBITDA is a non-GAAP financial measure. See slide 42 for reconciliation of EBITDA to the most closely-related GAAP financial measure.

Summer 2012 Prior CEO terminated Board begins search Fall 2012 Chief Merchant departs Six new board members elected, including John Goodman January 2013 John Goodman hired as Chief Executive Officer Streamlines management structure • Eliminates President/COO position • Eliminates Chief Merchant position • Promotes two Wet Seal merchants to SVP/GMM Transition to New Leadership 13

2013 Actions 14 Revenue Drivers Product • Returned focus to fast fashion roots and the core 16-year old girl • Maniacal focus on the product • Effectively captured several key fashion trends Marketing • Clarified target market and brand messaging • Increased social media and mobile presence • Established tie-ins with pop-culture, musical artists and teen celebrities eCommerce • Upgrading infrastructure to Demandware • Improving customer targeting • Building internal capabilities Cost Controls SG&A • Immediately removed over $5 million of overhead costs • Flattened management structure Store-level • Intense focus on inventory management • Tight control of store selling costs • Head count and labor efficiency Real Estate • Shifting store mix to support strategic focus • Refreshing and protecting store base

• 22 fewer Arden B. stores • Positive comps for Wet Seal in YTD Q3 2013 ObservationsYTD Financials (US$ in millions) Results Through Q3 2013 15 For the first 9 months of FY 2013, we saw dramatic improvement from our initiatives • Strict inventory management (down 7.8%) • 270 bps merchandise margin improvement driven by lower markdown levels • $10.6 million lower costs • Significant improvement in both brands • $10.7 million increase in EBITDA Note: EBITDA is a non-GAAP financial measure. See slide 42 for reconciliation of EBITDA to the most closely-related GAAP financial measure. Fiscal Q3 YTD 2012 2013 Revenue $418.7 $405.4 SSS% (10.7%) 0.4% Gross margin 24.0% 27.6% SG&A margin 30.1% 28.5% Wet Seal EBITDA $19.4 $28.0 Arden B. EBITDA (2.6) 0.3 EBITDA ($7.8) $2.9 Inventory $46.2 $42.6

Quarterly Comp Store Sales, Q1-Q3 FY 2013 Percentage change Competitors Wet Seal Note: Comp results based on the average of competitor set that includes Abercrombie & Fitch, American Eagle, Aeropostale, Body Central, dELiA*s and rue21. (a) Based on first two quarters of FY 2013 vs. first two quarters of FY 2012 due to take private transaction. Results Through Q3 2013 (Cont.) 16 In addition to strong year-over-year performance, we significantly out- performed other teen retailers through the first three quarters of 2013 YTD Gross Profit Change, Q3 FY 2013 vs. Q3 FY 2012 Basis points (3%) 4% 1% (10%) (9%) (15%)(16%) (12%) (8%) (4%) 0% 4% Q1 2013 Q2 2013 Q3 2013 360 220 (180) (380) (550) (810) (1,270)(1,400) (1,200) (1,000) (800) (600) (400) (200) 0 200 400 600 WTSL ANF rue21 (a) AEO BODY ARO DLIA

2013 Holiday Season • Significant softness in mall traffic • Unprecedented promotional levels in teen retail • High teen unemployment • Discretionary spending directed towards electronics • Increased online spending 17 However, several external and internal factors affected our Q4 results Although we entered Q4 with lean inventories and enjoyed strong Black Friday results, we were forced to react to the overly promotional environment and soft mall traffic • Certain products did not resonate as expected • Product was too casual for “dressy” Q4 environment • Transition issues following successful launch of Demandware • Pricing model not yet transformed for highly promotional environment External Factors Internal Factors

Reasons for Optimism Weather Macro factor • Relief from extremely challenging winter nationwide • Cold winters usually result in significant pent-up demand • Excess Q4 inventory industry-wide has been relieved – This should reset competitive promotional pressure • After lack of any fashion trend in Q3 and Q4, beginning to see some trends emerging Outlook Spring product launch • Confident about spring assortment that just rolled out • Targeting new categories • Implementing revised promotional strategy • First quarter-to-date positive comps and momentum following Demandware implementation • Detailed 2014 strategic plan to address current challenges/better reach our customers 18 Company specific Observations Promotional environment Fashion trends eCommerce New initiatives

Just Launched Spring Line 19

Just Launched Spring Line (Cont.) 20

Just Launched Spring Line (Cont.) 21

• Fixing the Core Business • Grow eCommerce • Pursue Plus-Size Opportunity • Transform Real Estate Portfolio 2014 Strategic Initiatives 22 In response to the changing retail environment, we developed a strategic plan to drive comparable store sales growth and strengthen our market position

Fixing the Core Business • Focus on delivering the Wet Seal style through product, value and experience (in-store and online) • Significant sales per square foot opportunity exists given highest performing stores have not yet recovered to traditional productivity levels ― Plan to improve merchandising at these high volume stores • Utilize a selective high-low pricing strategy to drive merchandise margin growth without compromising quality or markdown rate • Evolve merchandising mix to broaden appeal and focus on high margin categories ― Build larger basket ― Less fashion volatility ― De-emphasize denim (low margin) • Improve customer service through a greater focus on a selling culture for our associates 23

Fixing the Core Business (Cont.) • She wants to be contemporary in her apparel, and our affordable prices allow her to meet fast changing trends • She is impressionable and wants to be inspired – Wet Seal’s website suggestions and in-store displays give her ideas on assembling complete looks • Growing presence online and in outlet and off-mall locations help her find Wet Seal in the places she frequents • Ability for a mobile solution has been important Connecting with the core customer • Pop culture / teen celebrity ties (e.g., ABC Family, Katy Perry) reinforce the association between Wet Seal and cool trends • Social media outlets like Instagram, Twitter and Wanelo provide continuous engagement – Deena Varshavskaya, founder and CEO of Wanelo, very recently hired to Board • Native advertising (e.g., teen fashion bloggers) builds authenticity and affinity Delivering the most effective marketing message How the Wet Seal brand will be developed • Focus on differentiation from other fast fashion/teen retailers – Target age group (13-23 years old) – On-trend looks, not fashion forward – Affordable for the teen budget, so she can shop as often as she likes • Reach the core customer by being where she is – Physical channels: outlets and off-mall – Digital marketing: not only social media, but also mobile subscriptions, SEO, PLAs, etc. – Celebrity icons: get close to them to get close to her 24 Effectively reaching our core customer with the right message is absolutely essential

2% 6% 7% 8% 9% 11%11%11%12%12% 13% 13% 16% 24% 0% 4% 8% 12% 16% 20% 24% Percentage of sales through online channel, FY 2012 Percent of total sales Grow eCommerce 25 Wet Seal has a much lower proportion of sales from online channels than competitors

26 Grow eCommerce (Cont.) Increasing the capabilities and effectiveness of our eCommerce platform has been a key priority Actions taken Upgrading eCommerce infrastructure • Successfully launched Demandware platform • New website with responsive design that is optimized for mobile and tablet • Additional marketing capabilities introduced in 2014 Improving customer targeting • Retargeting initiative to reduce abandoned shopping carts Building internal capabilities • Team reorganization under way New board members • Social, digital and eCommerce experience ― Nancy Lublin, CEO of DoSomething.org ― Adam Rothstein, General Partner at Disrupt-ive Technologies Partners ― Deena Varshavskaya, Founder and CEO of Wanelo

27 Grow eCommerce (Cont.) • Brand Marketing and Partnerships – Crush by ABC Family – Awesomeness TV – Pop culture/celebrity/musical artist tie-ins – Blogs • Mobile – Rebuilding subscription base – Frequent promotions – In-store marketing – Social call to action • Greater Investments (resources and spend) in digital marketing Key initiatives to drive traffic and conversion Expanded and refocused marketing efforts to attract customers to the re- launched website and stores to deliver a seamless omni-channel experience

Crush by ABC Family 28 • January product integration with The Fosters – Thousands of online searches for ‘Callie’ • Seventeen Magazine, April issue • Window marketing – 3/26 Switched at Birth • Small receipt flow until June • Re-launch with large collection – Estimate 24 styles, delivering together – Focus on new show Chasing Life

Awesomeness TV 29 Product integration on “IMO” program “The Intern” Wet Seal brand on Awesomeness TV • >2.2 million views over three months • 93% of views are from female users • 40% of views via mobile, 38% desktop, and 20% tablet • >750,000 views on social media with >25,000 engagements • Three episodes to date, receiving >150,000 views - 61% viewed entire duration - “Shopping Spree” episode hit 95,000 views with 7,400 clicks (7.8% click-thru rate) • Nine Instagram posts that generated 24,000 ‘hearts’ (likes) • Wet Seal only branded content – program storyline is about working at Wet Seal • Four episodes to date, with total views exceeding 255,000 • Over 10,000 fans attended the filming of episode “The Janoskians take over Wet Seal” at the Beverly Center store (Oct 2013), generating significant social and media buzz

Pop Culture/Celebrity 30 • Pop culture/celebrity/musical artist tie-ins – Monthly incubator program with store events – MTV Style – Mean Girls on MTV airing

Blogs 31 • Placement with Plus Blogger Community • In-Store ‘Inside the Dressing Room’ feature with Fashion, Love & Martinis • Blogger/Vlogger outreach to targeted Wet Seal customers

• The percentage of our demographic that is overweight has grown faster in recent years than the general population • The CDC projects that ~42% of the American population overall will be plus-sized by 2030, up from 36% in 2010 • The plus-size apparel market totaled ~$7.5 billion in 2012, and is projected to grow to ~$9.7 billion by 2017, according to IBIS World – ~80% of plus-size women are looking for the same on-trend styles sold in traditional stores, per NPD – While there is demand for fast fashion plus-sized clothing, the majority of women in the demographic (~62%) have difficulty finding these items in their size Demand for plus-sized fast fashion offers a significant opportunity for Wet Seal Pursue Plus-Size Opportunity 32 We believe there is tremendous opportunity for Wet Seal in the plus-sized market as a substantial percentage of American teenage girls are overweight

• Wet Seal Plus sold directly through WetSeal.com – Own domain WetSealPlus.com, which can be leveraged as plus brand gains traction • Offer a wider assortment of goods and flow goods through consistently • Digital marketing campaign catered to plus customer • Positive customer response and sales trends at our first stand-alone Wet Seal Plus location – Clovis, California location to serve as basis for future roll-outs • 45 new plus-size stand-alone stores – Two additions in 2014, 10 new stores per year from 2015 through 2018 • Merchandise strategy will be similar to core (~50% overlap) Online Stand-alone stores eCommerce and stand-alone store formats resonate most with plus-size customers Pursue Plus-Size Opportunity (Cont.) 33

Transform Real Estate Portfolio • Current store base is 88% in malls • Continue to grow our off-mall and outlet store formats – Better economics – More profitable – Stronger competitive positioning • We intend to continue to selectively close Wet Seal stores via lease expirations – 62 leases expire this year and we will evaluate these leases on a site-by-site basis • In addition to lower occupancy and build-out costs, off-mall and outlet locations can help us capture new customers 34

Financials

Annual Financials 36 FY 2009-2013 income statement (US$ in millions) Note: EBITDA is a non-GAAP financial measure. See slide 42 for reconciliation of EBITDA to the most closely-related GAAP financial measure. (a) Fiscal 2013 figures subject to audit completion. Fiscal Year 2009 2010 2011 2012 2013 (a) Net sales $560.9 $581.2 $620.1 $580.4 $530.1 Cost of sales 394.1 401.3 424.7 439.9 394.9 Gross profit 166.8 179.9 195.4 140.5 135.3 SG&A 141.6 150.4 165.9 183.8 158.3 Asset impairment 2.3 4.2 4.5 27.0 14.9 Operating income (loss) 22.9 25.2 25.0 (70.3) (37.9) EBITDA $39.1 $47.8 $48.9 ($13.1) ($12.8) Growth Net sales (5.4%) 3.6% 6.7% (6.4%) (8.7%) Gross profit (13.3%) 7.8% 8.6% (28.1%) (3.7%) Operating income (loss) (28.9%) 10.5% (1.0%) NM NM EBITDA (25.2%) 22.3% 2.2% NM NM Margin Cost of sales 70.3% 69.0% 68.5% 75.8% 74.5% Gross profit 29.7% 31.0% 31.5% 24.2% 25.5% SG&A 25.3% 25.9% 26.8% 31.7% 29.9% Operating income (loss) 4.1% 4.3% 4.0% (12.1%) (7.1%) EBITDA 7.0% 8.2% 7.9% (2.3%) (2.4%)

Q4 FINANCIAL PERFORMANCE 37 Q4 2012 Net sales $161.7 $124.8 Comp store sales (8.3%) (16.5%) Gross margin 24.8% 18.8% SG&A margin 35.6% 34.2% EBITDA ($5.3) ($15.7) Operating loss ($9.3) ($19.3) Net loss per diluted share ($0.06) ($0.23) Note: US$ in millions, except per share data. EBITDA is a non-GAAP financial measure. See slide 43 for reconciliation of EBITDA to the most closely-related GAAP financial measure. (a) Fiscal 2013 figures subject to audit completion. 4 2012 Q4 2013 (a)

Q1 Outlook 38 • Declining same-store sales trends have continued thus far in Q1 • As a result, Q1 margins have been significantly impacted • Spring assortment just being set in stores right now • We expect to provide detailed Q1 guidance in our March 20, 2014 earnings call

Current Liquidity 39 • $35.0 million • LIBOR + 1.5-2.0% rate • $32.2 million currently available Cash Balance (US$ in millions) Senior revolving credit facility • $10.5-11.5 million, net of tenant improvement allowances (a) Fiscal 2013 figures subject to audit completion. (b) Net of estimated offering expenses. (c) Full year 2014 capital expenditures include Q1 FY 2014 spend. Planned 2014 capital expenditures (c) FY 2012 cash balance $110.0 Stock repurchase (25.4) Capital expenditures (21.5) Operating losses and other (16.9) FY 2013 cash balance (a) $46.2 Q1 estimated cash use (18.3) Estimated Q1 FY 2014 cash balance $27.9 Proceeds from convertible offering (b) 23.4 Pro forma Q1 FY 2014 cash balance $51.3 Senior revolving credit facility availability 32.2 Pro forma Q1 FY 2014 liquidity $83.5

Appendix

41 FY 2009-2013 EBITDA reconciliation (US$ in millions) (a) Fiscal 2013 figures subject to audit completion. Non-GAAP Financial Measures Reconciliation FY 2009 FY 2010 FY 2011 Q3 YTD 2012 FY 2012 Q3 YTD 2013 FY 2013 (a) GAAP operating income (loss) $22.9 $25.2 $25.0 ($44.8) ($70.3) ($10.7) ($37.9) Adjustments and charges: Proxy solicitation costs - - - 2.1 1.9 - - CEO transition costs - 1.6 - 1.9 1.9 - - Gift card/store credit breakage - change in estimate (1.2) - - - - - - Employee severance - - - - 1.3 - - Investment banker early termination fees - - - - 0.5 - - Asset impairment 2.3 4.2 4.5 19.0 27.0 6.9 14.9 Loss contingencies for several litigation matters - - - 0.5 7.1 (3.5) (3.5) Non-GAAP operating income (loss) $24.0 $31.0 $29.5 ($21.3) ($30.6) ($7.3) ($26.5) Depreciation 15.1 16.8 19.4 13.5 17.5 10.2 13.7 EBITDA (non-GAAP financial measure) $39.1 $47.8 $48.9 ($7.8) ($13.1) $2.9 ($12.8)

Non-GAAP Financial Measures Reconciliation (Cont.) 42 Q4 FY 2012 and FY 2013 non-GAAP reconciliation (US$ in millions) (a) Fiscal 2013 figures subject to audit completion. (b) Net of tax where applicable. Q4 2012 Q4 2013 (a) Operating Loss Net Loss Diluted EPS Operating Loss Net Loss Diluted EPS GAAP financial measures ($25.5) ($85.8) ($0.97) ($27.3) ($27.5) ($0.33) Adjustments and charges (b): Proxy solicitation costs (0.2) (0.1) - - - - Employee severance 1.3 0.8 0.01 - - - Invesment banker early termination fees 0.5 0.3 - - - - Impairment 8.0 4.9 0.05 8.0 8.0 0.10 Loss contingencies for several litigation matters 6.6 4.0 0.05 - - - Establishment of valuation allowances - 71.1 0.80 - - - Non-GAAP financial measures ($9.3) ($4.8) ($0.06) ($19.3) ($19.5) ($0.23) Depreciation 4.0 3.5 EBITDA (non-GAAP financial measure) ($5.3) ($15.7)