Bluestem Group Inc. Announces Fiscal Year 2016 Limited Forward-Looking Information

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Bluestem Group Inc. (OTCMKTS: BGRP) today announced limited forward-looking information for its wholly-owned subsidiary Bluestem Brands, Inc. (“Bluestem”) for the 53-week period ending February 3, 2017, referred to in this release as the Company’s “fiscal” year 2016. Bluestem is a multi-brand, online retailer of a broad selection of name-brand and private label general merchandise serving low- to middle-income consumers nationwide.

Bluestem Brands, Inc. 2016 Fiscal Year Forward-Looking Information
Based on information available as of August 16, 2016, the Company is providing the following limited forward-looking information relating to the expected performance of Bluestem Brands, Inc. for the 2016 fiscal year:

Bluestem Brands, Inc.	Fiscal Year 2016
Net sales	$2,050MM to $2,150MM
% Net sales growth*	-6% to -2%
Northstar Portfolio	-9% to -6%
Orchard Portfolio*	-3% to -1%
Adjusted EBITDA	$130MM to $140MM
Lender Adjusted EBITDA	$140MM to $150MM
Maintenance capital expenditures	$19MM to $23MM
Full year discount on receivables sold to SCUSA	Below 3.75%

*Based on pro forma results as if Bluestem owned the Orchard Portfolio at the beginning of fiscal year 2015

Bluestem Brands, Inc.	Third Quarter Fiscal 2016	Fourth Quarter Fiscal 2016
Leverage ratio	Below 4.25X	Below 3.75X
Covenant	<= 4.75X	<= 4.5X
Liquidity	In excess of $75MM	In excess of $100MM
Covenant	>= $40MM	>= $40MM

Adjusted EBITDA, as forecasted for fiscal 2016, represents net income (loss) before interest expense, income tax expense/benefit, depreciation and amortization expense, stock-based compensation expense, integration costs and asset impairment charges.

Lender Adjusted EBITDA, as forecasted for fiscal 2016, represents Adjusted EBITDA plus adjustments allowed for under Bluestem’s term debt agreement including, but not limited to, one-time charges, expected cost savings, non-cash charges and other miscellaneous incurred costs as defined under the term debt agreement.

Leverage ratio and liquidity, as forecasted for fiscal 2016, are calculated in accordance with Bluestem’s term debt agreement.

Teleconference Information
Steve Nave, CEO and Mark Wagener, CFO will host a conference call at 9:00AM ET on Wednesday, August 17, 2016 to provide and discuss limited forward-looking information about the Company’s business. The conference call can be accessed at [phone] or [phone] (International), conference ID # 1724508 and will be broadcast simultaneously at http://www.bluestem.com/investor-relations. Following completion of the call, a recorded replay will be available on Bluestem Group’s website. To listen to the telephone replay, call toll-free [phone] or [phone] (International), replay pin # 1724508. The telephone replay will be available at 12:00 PM ET on August 17, 2016. Additional investor information can be accessed at http://www.bluestem.com/investor-relations.

About Bluestem Group
Bluestem Group Inc. is a holding company whose businesses include Bluestem Brands, a national, multi-brand, online retailer of a broad selection of name-brand and private label general merchandise serving the boomer and senior demographic, generally considered age 50 and over, and low- to middle-income consumers over all age demographics through 16 retail brands that include: Appleseed’s, Bedford Fair, Blair, Draper’s & Damon’s, Fingerhut, Gettington, Gold Violin, Haband, LinenSource, Norm Thompson, Old Pueblo Traders, PayCheck Direct, Sahalie, Solutions, Tog Shop and Wintersilks. Complementing each brand is a large selection of merchandise with payment options that provide customers with the flexibility of paying over time. Bluestem Group is headquartered in Eden Prairie, MN. For additional information visit the Bluestem Group website at www.bluestem.com.

Forward Looking Statements
This release contains statements that are “forward-looking statements”. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. All statements contained herein that are not clearly historical in nature are forward-looking. In some cases, you can identify these statements by use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential,” “project,” “intend,” “could” or similar expressions. In particular, statements regarding Bluestem Group’s plans, strategies, prospects and expectations regarding its business are forward-looking statements. You should be aware that these statements and any other forward-looking statements in this document only reflect Bluestem Group’s beliefs, assumptions and expectations and are not guarantees of performance. These statements involve risks, uncertainties and assumptions. Many of these risks, uncertainties and assumptions are beyond Bluestem Group’s control and may cause actual results and performance to differ materially from Bluestem Group’s expectations. Forward-looking statements are based on Bluestem Group’s beliefs, assumptions and expectations of its future performance and actions, taking into account all information currently available to Bluestem Group. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to Bluestem Group or are within its control. If a change occurs, Bluestem Group’s plans, business, financial condition, and liquidity may vary materially from those expressed in its forward-looking statements. Important factors that could cause the actual results to be materially different from Bluestem Group’s expectations include the risks and uncertainties set forth in “Risk Factors” in Bluestem Group’s Report as of and for the fiscal years ended January 29, 2016 and January 30, 2015.

Accordingly, you should not place undue reliance on the forward-looking statements contained in this release. These forward-looking statements are made only as of the date of this release. Bluestem Group undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.