Perry Ellis International Announces Moody’s Updates its Rating to Positive
June 28 2010 - 12:40PM
Business Wire
Perry Ellis International, Inc. (NASDAQ:PERY) today announced
that Moody’s Investors Service updated its ratings outlook on the
Company to Positive and concurrently affirmed its B2 Corporate
Family and Probability of Default Ratings, as well as the B3 rating
on its subordinated notes.
In its report dated June 24, 2010, Moody’s stated that: “The
positive outlook reflected its expectation for sustained
improvement in Perry Ellis’ operating performance, which is
supported by the resumption of profitable growth through
incremental business with existing and new customers and margin
improvement through cost containment and better inventory
management.” Moody’s also noted that Perry Ellis has also
significantly improved its liquidity and credit metrics over the
last nine months, aided by strong free cash flow and debt
reduction.
George Feldenkreis, Chairman and CEO, stated: “We are pleased
that Moody’s recognized the significant improvement in our
operating performance, profitability and cash flow by revising
upward its outlook on our debt to a positive rating. Our
strategies, which focus on maximizing the performance of our growth
platforms while repositioning or exiting lower margin and slower
growth businesses, has positioned our Company for consistent and
sustained growth in the current fiscal year and beyond. During the
first quarter of fiscal 2011, this led to a 420 basis point
increase in gross profit margin to 35.7%; a more than doubling in
first quarter earnings per share and a reduction in total net debt
to capitalization to 30% at quarter end from 44% at the end of the
first quarter last year. We remain committed to our strategies,
which we expect to lead to increased value for all Perry Ellis
stakeholders.”
Separately, the Company also noted that on June 24th, it renewed
its existing shelf registration statement which was to expire at
the end of July by filing a universal shelf registration statement
with the Securities and Exchange Commission. The shelf registration
statement may be utilized to offer debt securities, preferred and
common stock and other securities in order to provide the Company
with flexibility to respond to future financing opportunities. No
offering is currently contemplated by the Company.
A registration statement relating to these securities has been
filed with the Securities and Exchange Commission but has not yet
become effective. These securities may not be sold nor may offers
to buy be accepted prior to the time the registration statement
becomes effective. This press release is neither an offer to sell
nor the solicitation of an offer to buy any securities and shall
not constitute an offer or solicitation in any jurisdiction in
which such offer or solicitation is unlawful.
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®, Laundry by
Shelli Segal®, C&C California®, Cubavera®, Centro®, Solero®,
Munsingwear®, Savane®, Original Penguin® by Munsingwear®, Grand
Slam®, Natural Issue®, Pro Player®, the Havanera Co.®, Axis®,
Tricots St. Raphael®, Gotcha®, Girl Star®, MCD® John Henry®, Mondo
di Marco®, Redsand®, Manhattan®, Axist® and Farah®. The Company
enhances its roster of brands by licensing trademarks from third
parties including Pierre Cardin® for men’s sportswear, Nike® and
Jag® for swimwear, and Callaway®, TOP-FLITE®, PGA TOUR® and
Champions 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, trade names 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.
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