PERY Perry Ellis International Inc. (delisted)

Perry Ellis International, Inc. (NASDAQ:PERY) today reported results for the first quarter (�first quarter of fiscal 2008�) ended April 30, 2007. For the first quarter of fiscal 2008, total revenues grew to $228.8 million, a 7% increase compared to $214.0 million reported in the first quarter of the fiscal year ended April 30, 2006 (�first quarter of fiscal 2007�). Revenue increases were driven by several of the Company�s growth platforms � golf lifestyle, swimwear/action sports, direct retail and international. As anticipated, the shift in the retail calendar moved certain shipments from April into May, thus slightly impacting revenue growth during the first quarter of fiscal 2008. EBITDA for the first quarter of fiscal 2008 grew to $23.2 million, a $2.6 million or 12% increase over EBITDA for the same period last year. A table showing the reconciliation of EBITDA to net income is attached. Net income was $9.5 million compared to net income of $5.9 million and pro forma net income of $7.8 million for the same period last year. Earnings per share were $0.60 per fully diluted share, compared to earnings of $0.39 per fully diluted share and pro forma earnings of $0.52 per fully diluted share for the same period last year. Last year�s pro forma results exclude the impact of $3.0 million in debt extinguishment costs ($1.9 million net of taxes or $0.13 per fully diluted share) incurred as a result of the March 2006 repayment of the Company's $57 million senior secured notes. Pro forma results are presented solely as a supplemental disclosure, because management believes it is useful to compare the Company's current results to the prior year results without the charge incurred during Fiscal 2007. A table showing the reconciliation of actual to pro forma results is attached. First quarter of fiscal 2008 results were in line with management�s expectations and included a 108 basis point improvement in gross profit margin and a 50 basis point improvement in EBITDA margin to 10.1% of revenues compared to the first quarter of fiscal 2007. George Feldenkreis, Chairman and Chief Executive Officer, commented: �We are very satisfied with our results for this quarter. During the quarter, we successfully capitalized on the positive momentum built last year, as evidenced by our strong results across all of our businesses, and especially in our key growth platforms. Perry Ellis, AXIST, Grand Slam, Cubavera, PGA Tour and Swimwear brands remain on track for a record year in fiscal 2008. � The Company ended the quarter with a strong balance sheet and cash flow. As of April 30, 2007, overall long term debt levels decreased to $244 million, a reduction of approximately $26 million compared to a year ago. Inventory levels at quarter end increased to approximately $152 million reflecting the shift in the retail calendar, along with higher levels of replenishment inventory in core styles to support our up trending business and maintain optimal fulfillment rates. The Company confirmed its previously announced fiscal 2008 guidance with total revenues expected to be in the range of approximately $900 to $910 million and earnings in the range of $1.81 to $1.84 per fully diluted share. �Our brand-channel-product diversification strategy remains core to our business philosophy and has proven successful once again. Our ability to balance opportunities across multiple channels allowed us to achieve a record first quarter both in revenues and profitability. Our branded product continues to perform strongly at retail, gaining doors and floor space across all distribution channels. We remain very optimistic about achieving the goals we set for Perry Ellis International this year,� Oscar Feldenkreis, President and Chief Operating Officer concluded. About Perry Ellis International Perry Ellis International, Inc. is a leading designer, distributor and licensor of a broad line of high quality men's and women's apparel, accessories, and fragrances. The Company's collection of dress and casual shirts, golf sportswear, sweaters, dress and casual pants and shorts, jeans wear, active wear and men's and women's swimwear is available through all major levels of retail distribution. The Company, through its wholly owned subsidiaries, owns a portfolio of nationally and internationally recognized brands including Perry Ellis�, Jantzen�, Cubavera�, Savane�, Munsingwear�, Original Penguin� by Munsingwear�, AXIST�, Grand Slam�, John Henry�, Natural Issue�, Farah�, Pro Player�, Manhattan�, the Havanera Co. �, Axis�, Tricots St. Raphael�, Mondo di Marco�, Redsand�, Gotcha�, Girl Star� and MCD�. The Company enhances its roster of brands by licensing trademarks from third parties including Dockers� for outerwear, Nike� and JAG� for swimwear, and PING� and PGA TOUR� for golf apparel. Additional information on the Company is available at http://www.pery.com. Safe Harbor Statement We caution readers that the forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations rather than historical facts and they are indicated by words or phrases such as "anticipate," "could," "may," "might," "potential," "predict," "should," "estimate," "expect," "project," "believe," "plan," "envision," "continue," "intend," "target," "contemplate," or "will" and similar words or phrases or comparable terminology. We have based such forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, many of which are beyond our control. These factors include: general economic conditions, a significant decrease in business from or loss of any of our major customers or programs, anticipated and unanticipated trends and conditions in our industry, including the impact of recent or future retail and wholesale consolidation, the effectiveness of our planned advertising, marketing and promotional campaigns, our ability to contain costs, disruptions in the supply chain, our future capital needs and our ability to obtain financing, our ability to integrate acquired businesses, trademarks, tradenames and licenses, our ability to predict consumer preferences and changes in fashion trends and consumer acceptance of both new designs and newly introduced products, the termination or non-renewal of any material license agreements to which we are a party, changes in the costs of raw materials, labor and advertising, our ability to carry out growth strategies including expansion in international and direct to consumer retail markets, the level of consumer spending for apparel and other merchandise, our ability to compete, exposure to foreign currency risk and interest rate risk, possible disruption in commercial activities due to terrorist activity and armed conflict, and other factors set forth in Perry Ellis International's filings with the Securities and Exchange Commission. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in Perry Ellis' filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which are valid only as of the date they were made. We undertake no obligation to update or revise any forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise. � PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (UNAUDITED) (amounts in 000s, except per share information) � INCOME STATEMENT DATA: Three Months Ended April 30, 2007� 2006� � Revenues Net sales $ 222,619� $ 208,254� Royalty income � 6,151� � 5,744� Total revenues 228,770� 213,998� Cost of sales � 150,980� � 143,549� Gross profit 77,790� 70,449� Operating expenses Selling, general and administrative expenses 54,593� 49,821� Depreciation and amortization � 2,928� � 2,685� Total operating expenses � 57,521� � 52,506� Operating income 20,269� 17,943� Costs on early extinguishment of debt -� 2,963� Interest expense � 5,248� � 5,895� � Income before minority interest and income taxes 15,021� 9,085� Minority interest 147� (1) Income tax provision � 5,362� � 3,172� Net income $ 9,512� $ 5,914� � Net income per share Basic $ 0.65� $ 0.41� Diluted $ 0.60� $ 0.39� � Weighted average number of shares outstanding(a) Basic 14,660� 14,411� Diluted 15,973� 15,146� � (a) On November 21, 2006, the Company announced a 3-for-2 stock split effected in the form of a stock dividend payable on December 29, 2006 to stockholders of record as of December 12, 2006. All prior year earnings per share references in this press release have been restated to include the impact of the stock dividend. � PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES SELECTED FINANCIAL DATA (UNAUDITED) (amounts in 000s) � BALANCE SHEET DATA: As of April 30, 2007 January 31, 2007 � Assets Current assets: Cash and cash equivalents $ 9,053� $ 4,514� Accounts receivable, net 167,244� 157,420� Inventories, net 151,670� 139,690� Other current assets � 16,899� � 12,972� Total current assets � 344,866� � 314,596� � Property and equipment, net 72,338� 71,989� Intangible assets, net 192,656� 192,656� Other assets � 11,857� � 13,965� � Total assets $ 621,717� $ 593,206� � Liabilities and stockholders' equity Current liabilities: Accounts payable $ 37,149� $ 44,295� Accrued expenses and other liabilities 29,164� 31,914� Accrued interest 2,314� 5,822� Unearned revenues � 3,740� � 2,883� Total current liabilities � 72,367� � 84,914� � � Long term liabilities: Senior subordinated notes payable 149,120� 149,079� Senior credit facility 68,328� 61,347� Real estate mortgage 26,432� 26,604� Deferred pension obligation 13,412� 13,412� Unearned revenues and other liabilities � 32,187� � 8,854� Total long term liabilities � 289,479� � 259,296� � Total liabilities � 361,846� � 344,210� � Minority interest � 2,509� � 2,362� � Stockholders' equity � Preferred stock -� -� Common stock 147� 146� Additional paid in capital 95,092� 94,252� Retained earnings 160,900� 151,388� Accumulated other comprehensive income � 1,223� � 848� Total stockholders' equity � 257,362� � 246,634� � Total liabilities and stockholders' equity $ 621,717� $ 593,206� � PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME AND GROSS PROFIT TO EBITDA(1) (UNAUDITED) (amounts in 000s) � Three Months Ended April 30, 2007� 2006� � Net income as reported $ 9,512� $ 5,914� Plus: Depreciation and amortization 2,928� 2,685� Interest expense 5,248� 5,895� Costs on early extinguishment of debt -� 2,963� Minority interest 147� (1) Income tax provision � 5,362� � 3,172� EBITDA $ 23,197� $ 20,628� � � Gross profit $ 77,790� $ 70,449� Less: Selling, general and administrative expenses � (54,593) � (49,821) EBITDA $ 23,197� $ 20,628� � � Total revenues $ 228,770� $ 213,998� � EBITDA margin percentage of revenues 10.1% 9.6% � (1) EBITDA consists of earnings before interest, costs on early extinguishment of debt, taxes, depreciation, amortization and minority interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America, and does not represent cash flow from operations. EBITDA is presented solely as a supplemental disclosure because management believes that it is a common measure of operating performance in the apparel industry. � PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATION OF DILUTED EARNINGS PER SHARE TO PROFORMA DILUTED EARNINGS PER SHARE(2) (UNAUDITED) � Three Months Ended April 30, 2007� 2006� � Net Income (in thousands) $ 9,512� $ 5,914� Plus: � Effect of debt extinguishment costs, net of tax effect $ -� $ 1,953� Proforma Net Income (in thousands) $ 9,512� $ 7,867� � Diluted earnings per share $ 0.60� $ 0.39� Plus: Effect of debt extinguishment costs, net of tax effect $ -� $ 0.13� Proforma diluted earnings per share $ 0.60� $ 0.52� � (2) Proforma net income and proforma diluted earnings per share for the three months ended April 30, 2006, respectively, consists of net income and diluted earnings per share excluding the effect of approximately $3.0 million ($1.9 million, net of taxes) or $0.13 per share net of taxes, respectively, for debt extinguishment costs related to the call of our $57 million senior secured notes. Neither proforma net income nor proforma diluted earnings per share is a measurement of financial performance under accounting principles generally accepted in the United States of America.��Accordingly, you should not regard this figure as an alternative to actual net income and/or diluted earnings per share.��Proforma net income and proforma diluted earnings per share are presented solely as a supplemental disclosure, because management believes it is useful to compare the Company's current results to the prior year results without the charge incurred during Fiscal 2007.