Perry Ellis International, Inc. (Nasdaq:PERY) today reported
results for the fourth quarter ("fourth quarter of fiscal 2018")
and the fiscal year ended February 3, 2018 ("fiscal 2018").
Key Fourth Quarter and Fiscal Year 2018 Financial
Accomplishments:
For the Fourth Quarter:
- Total revenues rose 11.3% to $227 million from $204 million in
the 2017 fourth quarter
- Gross margin expanded 50 basis points to 38.9%
- GAAP pre-tax income almost doubled to $12.8 million from $6.7
million in fiscal 2017 and adjusted pre-tax income rose 37% to
$15.8 million from $11.5 million in the fourth quarter of fiscal
2017
For the Fiscal Year:
- Total revenues rose 2% to $875 million in line with guidance
from $861 million reported in fiscal 2017
- Fiscal Year GAAP gross margin expanded 70 basis points to
37.7%
- Fiscal Year adjusted pre-tax income of $37.8 million, rose 7.3%
from adjusted pre-tax income of $35.2 million in the fiscal
2017
- Fiscal Year GAAP diluted EPS of $3.68, included a tax benefit
of $22.9 million, or $1.49 per share and compared to GAAP diluted
EPS of $0.95 per share in fiscal 2017
- Adjusted diluted EPS increased 4.4% in line with guidance to
$2.13, from adjusted diluted EPS of $2.04 in fiscal 2017
- Total debt to capitalization improved to 10.7% from 17.2% at
fiscal 2017 year end
Oscar Feldenkreis, Chief Executive Officer and President
commented, "We are pleased to continue the positive momentum for
our brands and businesses in the final quarter of the year,
delivering a double digit increase in total revenue, a 50 basis
point expansion in gross margin and continued leverage in expenses
which contributed to an almost doubling of GAAP pre-tax earnings
compared to the fourth quarter of last year. Our ongoing
strength continues to validate the success of our strategy and the
strong execution of our initiatives by our team with continuous
innovation across our powerful global brands leading to strong
acceptance of our product offerings around the world. The
fourth quarter saw us direct our growth toward our higher margin
core brands, channels and businesses which resulted in core brand
sales increasing 19%, international growth of 33%, ecommerce sales
rising and positive comparable sales. We remain excited about
our outlook as we begin fiscal 2019 and expect the execution of our
strategy along with the disciplined management of expenses and our
balance sheet to result in another strong year for Perry Ellis
International and its shareholders.”
Fiscal 2018 Fourth Quarter Results
Total revenue for the fourth quarter of fiscal 2018 was $227
million, an 11.3% increase (10.1% increase on constant currency)
compared to $204 million reported in the fourth quarter of fiscal
2017. This reflected increases across all segments, with
particular strength in Men’s Sportswear and Nike swim.
The disciplined management of inventory along with increased
sales of higher margin core brands led to a 50 basis point
expansion in GAAP gross margin to 38.9% in the fourth quarter from
38.4%. Strength in the Company’s Perry Ellis, Golf Lifestyle
Apparel and Nike swim business led to the margin increase.
Adjusted gross margin was 38.9% compared with adjusted gross margin
of 38.7% in the comparable period of the prior year. (Adjusted
gross margin excludes certain items as outlined in Table 2
Reconciliation of Gross Profit to Adjusted Gross Profit and
Adjusted Gross Margin).
Adjusted EBITDA totaled $21.2 million as compared to $17.1
million in the comparable period of the prior year. (Adjusted
EBITDA excludes certain items as outlined in Table 3,
Reconciliation of Net Income (Loss) to EBITDA and Adjusted
EBITDA.)
Adjusted pre-tax income was $15.8 million, increasing 36.9% from
$11.5 million in the fourth quarter of fiscal 2017. GAAP
pre-tax income was $12.8 million compared to GAAP pre-tax income of
$6.7 million in the comparable period of prior year.
(Adjusted pre-tax income excludes certain items as outlined in
Table 4 Reconciliation of Net Income before taxes to Adjusted Net
Income before taxes.)
As reported under GAAP, the fourth quarter of fiscal 2018 net
income was $39.7 million or $2.56 per diluted share, compared to
net income of $9.0 million, or $0.59 per diluted share, in the
fourth quarter of fiscal 2017. Adjusted net income for the
fourth quarter of fiscal 2018 totaled $13.6 million or $0.88 per
diluted share as compared to $10.1 million or $0.66 per diluted
share in the fourth quarter of fiscal 2017. (Adjusted net
income and adjusted income per diluted share exclude certain items
as outlined in Table 1 Reconciliation of net income and income per
diluted share to adjusted net income and adjusted net income per
diluted share.)
Fiscal 2018 Results
Fiscal 2018 total revenue was $875 million, a 2% increase (2%
increase on constant currency) compared to $861 million in fiscal
2017. This reflected growth in core brands,
particularly Men’s Sportswear and Nike swim.
Adjusted earnings per diluted share for fiscal 2018 were $2.13
compared to adjusted earnings per diluted share of $2.04 in fiscal
2017. (Adjusted earnings per diluted share exclude the items
outlined in the attached Table 1 for both fiscal periods.)
On a GAAP basis, net income for fiscal 2018 was $56.7 million,
or $3.68 per diluted share, compared to a GAAP net income of $14.5
million, or $0.95 per diluted share, for fiscal 2017.
Earnings before interest, taxes, depreciation, amortization and
impairments, as adjusted (“adjusted EBITDA”) for fiscal 2018
totaled $59.2 million, or 6.8% of total revenues, as compared to
$57.2 million, or 6.6% of total revenues, in fiscal 2017.
(Adjusted EBITDA excludes certain items as outlined in Table 3,
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA”
for a reconciliation of net loss/income to adjusted EBITDA.)
Adjusted gross margin for fiscal 2018 was 37.8% compared to
adjusted gross margin of 37.2% in fiscal 2017. Gross margin
was positively impacted during fiscal 2018 by favorable product
performance, which led to increases in merchandising margin in the
Company’s domestic businesses. (Adjusted gross margin excludes
certain items as outlined in Table 2, Reconciliation of Gross
Profit to Adjusted Gross Profit and Adjusted Gross Margin.)
Selling, general and administrative (“SG&A”) expenses
totaled $274.7 million for fiscal 2018 as compared to $280.0
million in fiscal 2017. SG&A in fiscal 2018 included $3.7
million related to consolidation of operations and strategic
initiatives. SG&A in fiscal 2017 included $10.1 million in
pension plan termination expense, as well as $8.6 million related
to exited brands, consolidation of operations and strategic
initiatives.
Balance Sheet
The Company's financial position continues to be very
strong. Fiscal 2018 year-end cash and investments totaled
$49.3 million. The Company’s net debt to total capitalization stood
at 10.7% at fiscal 2018 year-end as compared to 17.2% at the end of
fiscal 2017. Working capital management continues to be a
critical focus across the organization as inventory turned at
approximately 3.8x for fiscal 2018.
Fiscal 2019 Guidance
The Company is providing revenue and earnings guidance for
fiscal 2019. For comparability, the Company has recast its
fiscal 2018 sales and earnings to remove the sales, income/losses
related to the transition of the Laundry dress business to a
license model and the elimination of Bon-Ton sales due to its
bankruptcy and liquidation.
For fiscal 2019, the Company currently expects total revenue to
be in the range of $855 million to $865 million from core sales of
$843.6 million in fiscal 2018. Excluding any potential
expenses (which could be significant) to be incurred by the Company
in connection with the Board of Director’s exploration and
evaluation of potential strategic alternatives and the related
February 9, 2018 proposal to acquire the Company, diluted earnings
per share are currently expected in the range of $1.80 to $1.90
assuming a tax rate of 25%, which compares to core adjusted diluted
earnings per share of $1.70 in fiscal 2018.
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 pants, casual pants and shorts, jeans wear, active wear,
dresses 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®, An
Original Penguin® by Munsingwear®, Laundry by Shelli Segal®,
Rafaella®, Cubavera®, Ben Hogan®, Savane®, Grand Slam®, John
Henry®, Manhattan®, Axist®, Jantzen® and Farah®. The Company
enhances its roster of brands by licensing trademarks from third
parties, including: Nike® and Jag® for swimwear, and Callaway®, PGA
TOUR®, and Jack Nicklaus® for golf apparel and Guy Harvey® for
performance fishing and resort wear. 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," "believe," "budget," "contemplate," "continue,"
"could," "estimate," "expect," "guidance," "indicate," "intend,"
"may," "might," "plan," "possibly," "potential," "predict,"
"probably," "proforma," "project," "seek," "should," "target," or
"will" or the negative thereof or other variations thereon and
similar words or phrases or comparable terminology. Such
forward-looking statements include, but are not limited to,
statements regarding Perry Ellis’ strategic operating review,
growth initiatives and internal operating improvements intended to
drive revenues and enhance profitability, the implementation of
Perry Ellis’ profitability improvement plan and Perry Ellis’ plans
to exit underperforming, low growth brands and businesses. 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, recent and future economic conditions,
including turmoil in the financial and credit markets, the
effectiveness of our planned advertising, marketing and promotional
campaigns, our ability to contain costs, disruptions in the supply
chain, including, but not limited to those caused by port
disruptions, our future capital needs and our ability to obtain
financing, our ability to protect our trademarks, 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 effectiveness of our plans,
strategies, objectives, expectations and intentions which are
subject to change at any time at our discretion, potential cyber
risk and technology failures which could disrupt operations or
result in a data breach, the level of consumer spending for apparel
and other merchandise, our ability to compete, exposure to foreign
currency risk and interest rate risk, the impact to our business
resulting from the United Kingdom’s referendum vote to exit the
European Union and the uncertainty surrounding the terms and
conditions of such a withdrawal, as well as the related impact to
global stock markets and currency exchange rates; possible
disruption in commercial activities due to terrorist activity and
armed conflict, actions of activist investors and the cost and
disruption of responding to those actions, and other factors set
forth in Perry Ellis' 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.
Contact:
Annette Ramos, Investor
Relations305-873-1488Annette.ramos@pery.com
PERRY ELLIS
INTERNATIONAL, INC. AND SUBSIDIARIES |
|
SELECTED FINANCIAL DATA
(UNAUDITED) |
|
(amounts in 000's, except per share
information) |
|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
February 3, 2018 |
|
January 28, 2017 |
|
February 3, 2018 |
|
January 28, 2017 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
217,674 |
|
|
$ |
195,572 |
|
|
$ |
840,280 |
|
|
$ |
825,086 |
|
Royalty
income |
|
|
9,642 |
|
|
|
8,608 |
|
|
|
34,573 |
|
|
|
36,000 |
|
Total
revenues |
|
|
227,316 |
|
|
|
204,180 |
|
|
|
874,853 |
|
|
|
861,086 |
|
Cost of sales |
|
|
138,788 |
|
|
|
125,690 |
|
|
|
544,679 |
|
|
|
542,578 |
|
Gross profit |
|
|
88,528 |
|
|
|
78,490 |
|
|
|
330,174 |
|
|
|
318,508 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
|
69,882 |
|
|
|
64,585 |
|
|
|
274,665 |
|
|
|
280,019 |
|
Depreciation and amortization |
|
|
3,722 |
|
|
|
3,825 |
|
|
|
14,272 |
|
|
|
14,542 |
|
Impairment on long-lived assets |
|
|
372 |
|
|
|
1,451 |
|
|
|
372 |
|
|
|
1,451 |
|
Total
operating expenses |
|
|
73,976 |
|
|
|
69,861 |
|
|
|
289,309 |
|
|
|
296,012 |
|
Gain on sale of
long-lived assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Operating income |
|
|
14,552 |
|
|
|
8,629 |
|
|
|
40,865 |
|
|
|
22,496 |
|
Costs on early
extinguishment of debt |
|
|
- |
|
|
|
195 |
|
|
|
|
|
195 |
|
Interest expense |
|
|
1,710 |
|
|
|
1,743 |
|
|
|
7,148 |
|
|
|
7,395 |
|
|
|
|
|
|
|
|
|
|
|
Net income before
income taxes |
|
|
12,842 |
|
|
|
6,691 |
|
|
|
33,717 |
|
|
|
14,906 |
|
Income tax (benefit)
provision |
|
|
(26,843 |
) |
|
|
(2,306 |
) |
|
|
(22,933 |
) |
|
|
389 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
39,685 |
|
|
$ |
8,997 |
|
|
$ |
56,650 |
|
|
$ |
14,517 |
|
|
|
|
|
|
|
|
|
|
|
Net income, per
share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.62 |
|
|
$ |
0.60 |
|
|
$ |
3.76 |
|
|
$ |
0.97 |
|
Diluted |
|
$ |
2.56 |
|
|
$ |
0.59 |
|
|
$ |
3.68 |
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
|
15,129 |
|
|
|
14,983 |
|
|
|
15,083 |
|
|
|
14,936 |
|
Diluted |
|
|
15,517 |
|
|
|
15,352 |
|
|
|
15,383 |
|
|
|
15,215 |
|
|
|
|
|
|
|
|
|
PERRY ELLIS
INTERNATIONAL, INC. AND SUBSIDIARIES |
|
SELECTED FINANCIAL DATA
(UNAUDITED) |
|
(amounts in 000's) |
|
|
|
BALANCE SHEET DATA: |
|
|
|
|
As of |
|
|
February 3, 2018 |
|
January 28, 2017 |
|
|
|
|
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
35,222 |
|
$ |
30,695 |
|
Investments |
|
14,086 |
|
|
10,921 |
|
Accounts
receivable, net |
|
156,863 |
|
|
140,240 |
|
Inventories |
|
175,459 |
|
|
151,251 |
|
Other
current assets |
|
8,151 |
|
|
8,109 |
|
Total
current assets |
|
389,781 |
|
|
341,216 |
|
|
|
|
|
|
Property and equipment,
net |
|
56,164 |
|
|
61,835 |
|
Intangible assets,
net |
|
186,216 |
|
|
187,051 |
|
Deferred income
taxes |
|
411 |
|
|
334 |
|
Other assets |
|
1,590 |
|
|
2,269 |
|
|
|
|
|
|
Total assets |
$ |
634,162 |
|
$ |
592,705 |
|
|
|
|
|
|
Liabilities and
stockholders' equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
$ |
98,848 |
|
$ |
92,843 |
|
Accrued expenses and
other liabilities |
|
35,768 |
|
|
20,861 |
|
Accrued interest
payable |
|
1,334 |
|
|
1,450 |
|
Income taxes
payable |
|
1,466 |
|
|
- |
|
Unearned revenues |
|
2,907 |
|
|
2,710 |
|
Total
current liabilities |
|
140,323 |
|
|
117,864 |
|
|
|
|
|
|
|
|
|
|
|
Long term
liabilities: |
|
|
|
|
Senior subordinated
notes payable, net |
|
49,818 |
|
|
49,673 |
|
Senior credit
facility |
|
11,154 |
|
|
22,504 |
|
Real estate
mortgages |
|
32,721 |
|
|
33,591 |
|
Unearned revenues and
other long-term liabilities |
|
22,596 |
|
|
55,386 |
|
Total
long-term liabilities |
|
116,289 |
|
|
161,154 |
|
|
|
|
|
|
Total liabilities |
|
256,612 |
|
|
279,018 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
377,550 |
|
|
313,687 |
|
|
|
|
|
|
Total liabilities and
equity |
$ |
634,162 |
|
$ |
592,705 |
|
|
|
|
|
|
PERRY ELLIS
INTERNATIONAL, INC. AND SUBSIDIARIES |
|
Table 1 |
|
Reconciliation
of net income and net
income per diluted share to adjusted net income and adjusted net
income per diluted share |
|
(UNAUDITED) |
|
(amounts in 000's, except per share
information) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
|
February 3, 2018 |
|
January 28, 2017 |
|
February 3, 2018 |
|
January 28, 2017 |
|
Net income |
|
|
$ |
39,685 |
|
|
$ |
8,997 |
|
|
$ |
56,650 |
|
|
$ |
14,517 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Impairment on
long-lived assets |
|
|
|
372 |
|
|
|
1,451 |
|
|
|
372 |
|
|
|
1,451 |
|
|
Costs on exited
brands |
|
|
|
- |
|
|
|
493 |
|
|
|
- |
|
|
|
1,362 |
|
|
Costs of streamlining
and consolidation of operations, legal settlement and other
strategic initiatives |
|
|
|
2,590 |
|
|
|
920 |
|
|
|
3,712 |
|
|
|
7,231 |
|
|
Costs of pension
settlement |
|
|
|
- |
|
|
|
1,792 |
|
|
|
- |
|
|
|
10,092 |
|
|
Costs on early
extinguishment of debt |
|
|
|
- |
|
|
|
195 |
|
|
|
- |
|
|
|
195 |
|
|
Tax expense |
|
|
|
(29,065 |
) |
|
|
(3,760 |
) |
|
|
(28,010 |
) |
|
|
(3,760 |
) |
|
Net income, as adjusted
(1) |
|
|
$ |
13,582 |
|
|
$ |
10,088 |
|
|
$ |
32,724 |
|
|
$ |
31,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
|
February 3, 2018 |
|
January 28, 2017 |
|
February 3, 2018 |
|
January 28, 2017 |
|
Net income per
share, diluted |
|
|
$ |
2.56 |
|
|
$ |
0.59 |
|
|
$ |
3.68 |
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net per share
impairment on long-lived assets |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.02 |
|
|
|
0.10 |
|
|
Net per share costs on
exited brands |
|
|
|
- |
|
|
|
0.03 |
|
|
|
- |
|
|
|
0.09 |
|
|
Net per
share costs of streamlining and consolidation of operations, legal
settlement and other strategic initiatives |
|
|
0.17 |
|
|
|
0.07 |
|
|
|
0.24 |
|
|
|
0.48 |
|
|
Net per share costs of
pension settlement |
|
|
|
- |
|
|
|
(0.13 |
) |
|
|
- |
|
|
|
0.41 |
|
|
Net per share costs on
early extinguishment of debt |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
Net per share gain on
provision for income tax |
|
|
|
(1.87 |
) |
|
|
- |
|
|
|
(1.81 |
) |
|
|
- |
|
|
Adjusted
net income per share, diluted (1) |
|
|
$ |
0.88 |
|
|
$ |
0.66 |
|
|
$ |
2.13 |
|
|
$ |
2.04 |
|
|
|
|
|
|
(1) |
|
Net income,
as adjusted, and adjusted net income per share, diluted, consists
of net income (loss) or net income (loss) per share, diluted, as
the case may be, adjusted for the impact of impairment on
long-lived assets, the costs on exited brands, costs of
streamlining and consolidation of operations, legal
settlement, and other strategic initiatives, cost of pension
settlement, costs on early extinguishment of debt as well as the
tax impact of our tax audit, the newly enacted tax law and the
reversal of our tax valuation allowance. These costs are not
indicative of our core operations and thus to get a more comparable
result with the operating performance of the apparel industry, they
have been removed, net of taxes, from the calculation. |
|
|
|
PERRY ELLIS
INTERNATIONAL, INC. AND SUBSIDIARIES |
Table 2 |
RECONCILIATION OF GROSS PROFIT
TO ADJUSTED GROSS PROFIT
AND ADJUSTED GROSS MARGIN(1) |
(UNAUDITED) |
(amounts in 000's) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
February 3, 2018 |
|
January 28, 2017 |
|
February 3, 2018 |
|
January 28, 2017 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
88,528 |
|
|
$ |
78,490 |
|
|
$ |
330,174 |
|
|
$ |
318,508 |
|
|
|
|
|
|
|
|
|
|
Costs on
exited brands |
|
|
- |
|
|
|
493 |
|
|
|
- |
|
|
|
1,362 |
|
Costs of
streamlining and consolidation of operations, and other strategic
initiatives |
|
|
- |
|
|
|
- |
|
|
|
110 |
|
|
|
290 |
|
|
|
|
|
|
|
|
|
|
Gross profit, as
adjusted |
|
$ |
88,528 |
|
|
$ |
78,983 |
|
|
$ |
330,284 |
|
|
$ |
320,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
227,316 |
|
|
$ |
204,180 |
|
|
$ |
874,853 |
|
|
$ |
861,086 |
|
|
|
|
|
|
|
|
|
|
Gross margin, as
adjusted |
|
|
38.9 |
% |
|
|
38.7 |
% |
|
|
37.8 |
% |
|
|
37.2 |
% |
|
|
|
(1) |
|
Adjusted
gross profit consists of gross profit adjusted for costs on
exited brands and costs of streamlining and consolidation of
operations, and other strategic initiatives. We believe these
costs are not indicative of our core operations and thus we
have removed them to provide investors and analysts with a more
comparable result when comparing our operating performance to that
of the apparel industry. |
|
|
|
PERRY ELLIS
INTERNATIONAL, INC. AND SUBSIDIARIES |
Table 3 |
RECONCILIATION OF NET INCOME TO EBITDA AND
ADJUSTED EBITDA(1) |
(UNAUDITED) |
(amounts in 000's) |
|
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
February 3, 2018 |
|
January 28, 2017 |
|
February 3, 2018 |
|
January 28, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
39,685 |
|
|
$ |
8,997 |
|
|
$ |
56,650 |
|
|
$ |
14,517 |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,722 |
|
|
|
3,825 |
|
|
|
14,272 |
|
|
|
14,542 |
|
Interest expense |
|
|
1,710 |
|
|
|
1,743 |
|
|
|
7,148 |
|
|
|
7,395 |
|
Costs on early extinguishment of debt |
|
|
- |
|
|
|
195 |
|
|
|
- |
|
|
|
195 |
|
Income tax provision |
|
|
(26,843 |
) |
|
|
(2,306 |
) |
|
|
(22,933 |
) |
|
|
389 |
|
EBITDA |
|
|
18,274 |
|
|
|
12,454 |
|
|
|
55,137 |
|
|
|
37,038 |
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Impairment
on long-lived assets |
|
|
372 |
|
|
|
1,451 |
|
|
|
372 |
|
|
|
1,451 |
|
Costs on
exited brands |
|
|
- |
|
|
|
493 |
|
|
|
- |
|
|
|
1,362 |
|
Costs of
streamlining and consolidation of operations, legal settlement, and
other strategic initiatives |
|
2,590 |
|
|
|
920 |
|
|
|
3,712 |
|
|
|
7,231 |
|
Costs of
pension settlement |
|
|
- |
|
|
|
1,792 |
|
|
|
- |
|
|
|
10,092 |
|
|
|
|
|
|
|
|
|
|
EBITDA, as
adjusted |
|
$ |
21,236 |
|
|
$ |
17,110 |
|
|
$ |
59,221 |
|
|
$ |
57,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
88,528 |
|
|
$ |
78,490 |
|
|
$ |
330,174 |
|
|
$ |
318,508 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
(69,882 |
) |
|
|
(64,585 |
) |
|
|
(274,665 |
) |
|
|
(280,019 |
) |
Costs on exited brands |
|
|
- |
|
|
|
493 |
|
|
|
- |
|
|
|
1,362 |
|
Costs of streamlining and consolidation of operations, legal
settlement and other strategic initiatives |
|
2,590 |
|
|
|
920 |
|
|
|
3,712 |
|
|
|
7,231 |
|
Costs of pension settlement |
|
|
- |
|
|
|
1,792 |
|
|
|
- |
|
|
|
10,092 |
|
|
|
|
|
|
|
|
|
|
EBITDA, as
adjusted |
|
$ |
21,236 |
|
|
$ |
17,110 |
|
|
$ |
59,221 |
|
|
$ |
57,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues |
|
$ |
227,316 |
|
|
$ |
204,180 |
|
|
$ |
874,853 |
|
|
$ |
861,086 |
|
|
|
|
|
|
|
|
|
|
EBITDA
margin percentage of revenues |
|
|
9.3 |
% |
|
|
8.4 |
% |
|
|
6.8 |
% |
|
|
6.6 |
% |
|
|
|
(1) |
|
Adjusted
EBITDA consists of income before interest, taxes, depreciation,
amortization, costs on early extinguishment of debt,
impairment on long-lived assets, costs on exited brands, costs of
streamlining and consolidation of operations, legal settlement, and
other strategic initiatives, as well as cost of pension settlement.
Adjusted 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. Adjusted
EBITDA is presented solely as a supplemental disclosure because
management believes that it is a common measure of operating
performance in the apparel industry. In addition, we present
adjusted EBITDA because we believe it assists investors and
analysts in comparing our performance across periods on a
consistent basis by excluding items that we do not believe are
indicators of our core operating performance. |
|
|
|
PERRY ELLIS
INTERNATIONAL, INC. AND SUBSIDIARIES |
Table 4 |
Reconciliation of net income before income
taxes to adjusted net
income before income taxes |
(UNAUDITED) |
(amounts in 000's, except per share
information) |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
February 3, 2018 |
|
January 28, 2017 |
|
February 3, 2018 |
|
January 28, 2017 |
Net income before
income taxes |
|
|
$ |
12,842 |
|
$ |
6,691 |
|
$ |
33,717 |
|
$ |
14,906 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Impairment on
long-lived assets |
|
|
|
372 |
|
|
1,451 |
|
|
372 |
|
|
1,451 |
Costs on exited
brands |
|
|
|
- |
|
|
493 |
|
|
- |
|
|
1,362 |
Costs of streamlining
and consolidation of operations, legal settlement and other
strategic initiatives |
|
|
|
2,590 |
|
|
920 |
|
|
3,712 |
|
|
7,231 |
Costs of pension
settlement |
|
|
|
- |
|
|
1,792 |
|
|
- |
|
|
10,092 |
Costs on early
extinguishment of debt |
|
|
|
- |
|
|
195 |
|
|
- |
|
|
195 |
Net income before
income taxes, as adjusted (1) |
|
|
$ |
15,804 |
|
$ |
11,542 |
|
$ |
37,801 |
|
$ |
35,237 |
|
|
|
(1) |
|
Net income
(loss) before income taxes, as adjusted, consists of net
income (loss) before income taxes, adjusted for the impact
of impairment on long-lived assets, costs on early
extinguishment of debt, the costs on exited brands, and costs of
streamlining and consolidation of operations, legal settlement, and
other strategic initiatives, as well as cost of pension settlement.
These costs are not indicative of our core operations and thus to
get a more comparable result with the operating performance of the
apparel industry, they have been removed, net of taxes, from the
calculation. |
|
|
|
Perry Ellis International Inc. (delisted) (NASDAQ:PERY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Perry Ellis International Inc. (delisted) (NASDAQ:PERY)
Historical Stock Chart
From Sep 2023 to Sep 2024