Perry Ellis International, Inc. (Nasdaq:PERY) today reported
results for the fourth quarter ("fourth quarter of fiscal 2017")
and the fiscal year ended January 28, 2017 ("fiscal 2017").
Key Fiscal 2017 Financial Accomplishments and Operational
Highlights:
- GAAP diluted EPS of $0.95 increased from a GAAP loss of $0.49
per share in fiscal 2016
- Adjusted diluted EPS increased 13% to $2.04 from $1.81 in
fiscal 2016
- Gross margin expanded 150 basis points to 37.0%
- Adjusted gross margin expanded 140 basis points to a record
37.2%
- Delivered $2.78 per share in operating cash flow driven in part
by a 17% decrease in inventory to $151 million from $183 million in
fiscal year 2016
- Generated cost savings of $7.0 million for fiscal 2017 on top
of $7.8 million in fiscal 2016.
Company introduces guidance for fiscal year 2018 for revenues in
a range of $870 million to $880 million and adjusted diluted
earnings per share in a range of $2.07 to $2.17.
Oscar Feldenkreis, Chief Executive Officer and President
commented, "Fiscal 2017 saw solid progress on our strategic plan,
which led to sales growth in our core global brands, expansion in
gross margin and earnings in line with guidance. While $12
million in revenues were held back in the fourth quarter as certain
retail partners lowered shipments in a challenging retail
environment, the strength of our sell through rates enabled us to
recapture the majority of these sales shipments at the start of
fiscal 2018. We believe this is a testament to the power of our
lifestyle brands, the strength of our design and marketing, and the
disciplined execution of our strategy by our team.”
Fiscal 2017 Fourth Quarter Results
Total revenue for the fourth quarter of fiscal 2017 was $204
million, a 4.7% decrease (3.3% decrease on constant currency)
compared to $214 million reported in the fourth quarter of fiscal
2016. This reflected a 1.4% (3.2% on constant currency)
increase in men’s business including Perry Ellis, Original Penguin,
Golf Lifestyle Apparel and Nike, offset by a number of factors,
including a comparable sales decline of 6.2% within our
direct-to-consumer (“DTC”) business as store traffic dropped by
15%, and at wholesale, industry softness, which impacted wholesale
shipments and replenishment deliveries during the second half of
January.
We managed our assortments and inventory well, which led to the
expansion of adjusted gross margin by 150 basis points to 38.7%
from 37.2% in fourth quarter of fiscal 2016. Strength in the
Company’s Perry Ellis, Golf Lifestyle Apparel and Nike business led
to the margin increase. (Adjusted gross margin excludes
certain items as outlined in Table 2 Reconciliation of Gross Profit
to Adjusted Gross Profit and Adjusted Gross Margin.)
For the fourth quarter of fiscal 2017, gross margin expansion
coupled with tight expense discipline enabled the Company to expand
adjusted EBITDA margins to 8.4% as compared to 6% in the fourth
quarter of fiscal 2016. (Adjusted EBITDA excludes certain
items as outlined in Table 3, Reconciliation of Net Income (Loss)
to EBITDA and Adjusted EBITDA.)
As reported under GAAP, the fourth quarter of fiscal 2017 net
income was $9.0 million or $0.59 per diluted share, compared to a
loss of $17.7 million, or $1.18 per diluted share, in the fourth
quarter of fiscal 2016. Adjusted net income for the fourth
quarter of fiscal 2017 totaled $10.1 million or $0.66 per diluted
share as compared to $5.4 million or $0.35 per fully diluted share
in the fourth quarter of fiscal 2016. (Adjusted net income
and adjusted earnings per diluted share exclude certain items as
outlined in Table 1 Reconciliation of net income (loss) and income
(loss) per diluted share to adjusted net income and adjusted net
income per diluted share.)
Fiscal 2017 Results
Fiscal 2017 revenues were $861 million, as compared to $900
million in fiscal 2016. The Company’s core brands saw
revenue growth of 1.6% (3.2% on constant currency) in the
year. This was offset by planned reductions of $20 million in
exited brands and an $11 million reduction in special market
programs. The 2017 fiscal year also saw an $11 million
negative impact from unfavorable foreign exchange rates, a decline
of $15 million in womens’ shipments as well wholesale shipments
totaling $12 million which shifted to the first quarter of fiscal
2018.
Adjusted earnings per diluted share for fiscal 2017 were $2.04
compared to adjusted earnings per diluted share of $1.81 in fiscal
2016. Adjusted earnings per diluted share exclude the costs
outlined in the attached Table 1 for both fiscal periods.
On a GAAP basis, net income for fiscal 2017 was $14.5 million,
or $0.95 per diluted share, compared to a GAAP net loss of $7.3
million, or $0.49 per diluted share, for fiscal 2016.
Earnings before interest, taxes, depreciation, amortization and
impairments, as adjusted (“adjusted EBITDA”) for fiscal 2017
totaled $57.2 million, or 6.6% of total revenues, as compared to
$55.3 million, or 6.1% of total revenues, in fiscal 2016.
(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 2017 was 37.2% compared to
adjusted gross margin of 35.8% in fiscal 2016. Gross margin
was positively impacted during fiscal 2017 by favorable product
performance which led to increases in merchandising margin in the
Company’s domestic businesses. In addition, gross margin
benefited from a mix driven by an increase in licensing revenues,
which have a higher gross margin than other revenues.
(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 $280.0 million for fiscal 2017 as compared to $275.9
million in fiscal 2016. SG&A in fiscal 2017 included
$10.1 million in pension plan termination expense, as well as $7.2
million related to exited brands, consolidation of operations and
strategic initiatives. SG&A in fiscal 2016 included $4.4
million related to pension costs associated with lump sum
settlement payments on the termination of the Company’s defined
benefit plan as well as $5.5 million related to exited brands,
consolidation of operations and strategic initiatives.
Balance Sheet
The Company's financial position continues to be very
strong. Year-end cash and investments at the end of fiscal
2017 totaled $30.7 million with $50 million of long-term debt. The
Company’s net debt to total capitalization stood at 17.2% at fiscal
2017 year-end as compared to 23.9% at the end of fiscal 2016.
Working capital management continues to be a critical focus across
the organization as inventory turned at approximately 4.0x for
fiscal 2017.
Update on Strategic Priorities for Fiscal 2017 to
Enhance Profitability
George Feldenkreis, Executive Chairman, Perry Ellis
International, commented, "While the global retail landscape
continues to be rapidly changing with major foreign currencies
largely weakening against the U.S. dollar and unpredictable and
volatile global consumer spending, we believe that we have
successfully navigated this environment having delivered a year of
enhanced margins and profitability. We continue to invest in
our digital platform which we believe will become more critical in
the future given evolving consumer shopping trends. We
believe that our best-in-class teams will continue to manage the
volatility by leveraging our powerful brand platforms and
operations, while not losing sight of our long-term vision. We are
committed to delivering stockholder value and our recent licensing
announcements demonstrate our belief in taking strategic actions
and making investments to support the long-term growth potential of
Perry Ellis International and our businesses.”
The Company's focused strategy includes:
- Focusing on high performing, high growth brands and
businesses. Continuing to optimize our competitive
position by delivering exceptional product with
innovation and differentiation. Key priorities will focus across
our global growth brands led by Perry Ellis, Original Penguin, Golf
Lifestyle as well as our licensed Nike Swim business.
- Strengthening strategic brand position in the
menswear arena through the wholesale, retail and licensing of our
core brands. By focusing on the consumer experience through
retail shops, digital interplay and social media outreach, we are
making our brands relevant to connect with a wide range of
customers.
- Expanding international
distribution through direct investment in North
America and Europe as well as strategic partnerships with licensees
and other partners. During fiscal 2017, the Company signed 22 new
licenses that extended seven of the Company's brands across
geographies and product categories. The Company realized 6% revenue
growth internationally on a constant currency basis but maintained
a 13% mix of international to total revenues (14% on a constant
currency basis).
- Enhancing the DTC channel. The Company
held DTC to 11% of total revenue despite the closure of 10 store
locations during the year. Driving more profitability through
physical stores is critical with increasing focus on
conversion. The Company realized a 50 basis point conversion
improvement in its stores for the year with traffic declining close
to 10% for the year. Retail comparable store sales were down
5.7% for the 2017 fiscal year while comparable store margins
were down 1.8%. Ecommerce performed well growing 18% during
fiscal 2017.
- Driving operational efficiencies through
process enhancements, inventory management and sourcing
improvements. The Company streamlined its internal team and
reporting processes to simplify the business and improve operating
performance. Savings for the 2017 fiscal year totaled $7.0
million after delivering $7.8 million in fiscal 2016.
Supply chain and speed to market will be critical focus areas for
fiscal 2018 and beyond.
Fiscal 2018 Guidance
For fiscal 2018, the Company expects total revenues in the range
of $870 to $880 million, taking a conservative view as retail store
closures across the industry continue to be a consistent
theme. Adjusted diluted earnings per share are expected
in a range of $2.07 to $2.17.
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®, 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. 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.
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 |
|
|
|
January 28, 2017 |
|
January 30, 2016 |
|
January 28, 2017 |
|
January 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
195,572 |
|
|
$ |
205,464 |
|
|
$ |
825,086 |
|
$ |
864,806 |
|
|
Royalty
income |
|
|
8,608 |
|
|
|
8,899 |
|
|
|
36,000 |
|
|
34,709 |
|
|
Total
revenues |
|
|
204,180 |
|
|
|
214,363 |
|
|
|
861,086 |
|
|
899,515 |
|
|
Cost of sales |
|
|
125,690 |
|
|
|
134,633 |
|
|
|
542,578 |
|
|
580,448 |
|
|
Gross profit |
|
|
78,490 |
|
|
|
79,730 |
|
|
|
318,508 |
|
|
319,067 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
|
64,585 |
|
|
|
73,132 |
|
|
|
280,019 |
|
|
275,863 |
|
|
Depreciation and amortization |
|
|
3,825 |
|
|
|
3,542 |
|
|
|
14,542 |
|
|
13,693 |
|
|
Impairment on long-lived assets |
|
|
1,451 |
|
|
|
26,626 |
|
|
|
1,451 |
|
|
26,626 |
|
|
Total
operating expenses |
|
|
69,861 |
|
|
|
103,300 |
|
|
|
296,012 |
|
|
316,182 |
|
|
Gain on sale of
long-lived assets |
|
|
- |
|
|
|
4,476 |
|
|
|
- |
|
|
3,779 |
|
|
Operating income
(loss) |
|
|
8,629 |
|
|
|
(19,094 |
) |
|
|
22,496 |
|
|
6,664 |
|
|
Costs on early
extinguishment of debt |
|
|
195 |
|
|
|
- |
|
|
|
195 |
|
|
5,121 |
|
|
Interest expense |
|
|
1,743 |
|
|
|
1,844 |
|
|
|
7,395 |
|
|
9,267 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before income taxes |
|
|
6,691 |
|
|
|
(20,938 |
) |
|
|
14,906 |
|
|
(7,724 |
) |
|
Income tax (benefit)
provision |
|
|
(2,306 |
) |
|
|
(3,243 |
) |
|
|
389 |
|
|
(432 |
) |
|
Net income (loss) |
|
$ |
8,997 |
|
|
$ |
(17,695 |
) |
|
$ |
14,517 |
|
$ |
(7,292 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), per
share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.60 |
|
|
$ |
(1.18 |
) |
|
$ |
0.97 |
|
$ |
(0.49 |
) |
|
Diluted |
|
$ |
0.59 |
|
|
$ |
(1.18 |
) |
|
$ |
0.95 |
|
$ |
(0.49 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
|
14,983 |
|
|
|
15,030 |
|
|
|
14,936 |
|
|
14,968 |
|
|
Diluted |
|
|
15,352 |
|
|
|
15,030 |
|
|
|
15,215 |
|
|
14,968 |
|
|
|
|
|
|
|
|
|
|
PERRY ELLIS
INTERNATIONAL, INC. AND SUBSIDIARIES |
|
SELECTED FINANCIAL DATA
(UNAUDITED) |
|
(amounts in 000's) |
|
|
|
BALANCE SHEET DATA: |
|
|
|
|
As of |
|
|
January 28, 2017 |
|
January 30, 2016 |
|
|
|
|
|
|
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
30,695 |
|
$ |
31,902 |
|
Investments |
|
10,921 |
|
|
9,782 |
|
Accounts
receivable, net |
|
140,240 |
|
|
132,066 |
|
Inventories |
|
151,251 |
|
|
182,750 |
|
Other
current assets |
|
8,109 |
|
|
10,279 |
|
Total
current assets |
|
341,216 |
|
|
366,779 |
|
|
|
|
|
|
Property and equipment,
net |
|
61,835 |
|
|
63,908 |
|
Intangible assets,
net |
|
187,051 |
|
|
187,919 |
|
Deferred income
taxes |
|
334 |
|
|
442 |
|
Other assets |
|
2,269 |
|
|
2,927 |
|
|
|
|
|
|
Total assets |
$ |
592,705 |
|
$ |
621,975 |
|
|
|
|
|
|
Liabilities and
stockholders' equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
$ |
92,843 |
|
$ |
103,684 |
|
Accrued expenses and
other liabilities |
|
20,861 |
|
|
26,497 |
|
Accrued interest
payable |
|
1,450 |
|
|
1,521 |
|
Deferred pension
obligation |
|
- |
|
|
12,107 |
|
Unearned revenues |
|
2,710 |
|
|
4,213 |
|
Total
current liabilities |
|
117,864 |
|
|
148,022 |
|
|
|
|
|
|
|
|
|
|
|
Long term
liabilities: |
|
|
|
|
Senior subordinated
notes payable, net |
|
49,673 |
|
|
49,528 |
|
Senior credit
facility |
|
22,504 |
|
|
61,758 |
|
Real estate
mortgages |
|
33,591 |
|
|
21,318 |
|
Unearned revenues and
other long-term liabilities |
|
55,386 |
|
|
49,868 |
|
Total
long-term liabilities |
|
161,154 |
|
|
182,472 |
|
|
|
|
|
|
Total liabilities |
|
279,018 |
|
|
330,494 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Total equity |
|
313,687 |
|
|
291,481 |
|
|
|
|
|
|
Total liabilities and
equity |
$ |
592,705 |
|
$ |
621,975 |
|
|
|
|
|
|
PERRY ELLIS
INTERNATIONAL, INC. AND SUBSIDIARIES |
|
Table 1 |
|
Reconciliation
of net income (loss) and
income(loss) 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 |
|
|
|
|
|
January 28, 2017 |
|
January 30, 2016 |
|
January 28, 2017 |
|
January 30, 2016 |
|
Net (loss)
income |
|
|
$ |
8,997 |
|
|
$ |
(17,695 |
) |
|
$ |
14,517 |
|
|
$ |
(7,292 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Impairment
on long-lived assets |
|
|
|
1,451 |
|
|
|
26,626 |
|
|
|
1,451 |
|
|
|
26,626 |
|
|
Costs on
exited brands |
|
|
|
493 |
|
|
|
- |
|
|
|
1,362 |
|
|
|
2,138 |
|
|
Costs of
streamlining and consolidation of operations, legal settlement and
other strategic initiatives |
|
|
|
920 |
|
|
|
1,837 |
|
|
|
7,231 |
|
|
|
5,488 |
|
|
Costs of
pension settlement |
|
|
|
1,792 |
|
|
|
4,427 |
|
|
|
10,092 |
|
|
|
4,427 |
|
|
Costs on
early extinguishment of debt |
|
|
|
195 |
|
|
|
- |
|
|
|
195 |
|
|
|
5,121 |
|
|
Gain on
sale of long-lived assets |
|
|
|
- |
|
|
|
(4,476 |
) |
|
|
- |
|
|
|
(3,779 |
) |
|
Tax
expense |
|
|
|
(3,760 |
) |
|
|
(5,886 |
) |
|
|
(3,760 |
) |
|
|
(5,553 |
) |
|
Provision
for income tax valuation |
|
|
|
- |
|
|
|
529 |
|
|
|
- |
|
|
|
529 |
|
|
Net income,
as adjusted (1) |
|
|
$ |
10,088 |
|
|
$ |
5,362 |
|
|
$ |
31,088 |
|
|
$ |
27,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
|
|
January 28, 2017 |
|
January 30, 2016 |
|
January 28, 2017 |
|
January 30, 2016 |
|
Net (loss)
income per share, diluted |
|
|
$ |
0.59 |
|
|
$ |
(1.18 |
) |
|
$ |
0.95 |
|
|
$ |
(0.49 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net per
share impairment on long-lived assets |
|
|
|
0.09 |
|
|
|
1.37 |
|
|
|
0.10 |
|
|
|
1.37 |
|
|
Net per
share costs on exited brands |
|
|
|
0.03 |
|
|
|
- |
|
|
|
0.09 |
|
|
|
0.14 |
|
|
Net per
share costs of streamlining and consolidation of operations, legal
settlement and other strategic initiatives |
|
|
0.07 |
|
|
|
0.12 |
|
|
|
0.48 |
|
|
|
0.37 |
|
|
Net per
share costs of pension settlement |
|
|
|
(0.13 |
) |
|
|
0.29 |
|
|
|
0.41 |
|
|
|
0.30 |
|
|
Net per
share costs on early extinguishment of debt |
|
|
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
|
0.34 |
|
|
Net per
share loss on sale of long-lived assets |
|
|
|
- |
|
|
|
(0.31 |
) |
|
|
- |
|
|
|
(0.22 |
) |
|
Net per
share gain on provision for income tax valuation |
|
|
|
- |
|
|
|
0.04 |
|
|
|
- |
|
|
|
0.04 |
|
|
Adjustment
for using diluted share count (1) |
|
|
|
|
|
0.02 |
|
|
|
- |
|
|
|
(0.04 |
) |
|
Adjusted net income per share, diluted (1) |
|
|
$ |
0.66 |
|
|
$ |
0.35 |
|
|
$ |
2.04 |
|
|
$ |
1.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) Net income, as adjusted, and adjusted net income per share,
diluted, consist of net (loss) income or net (loss) income 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, costs of pension settlement, cost on early
extinguishment of debt, loss on sale of long-lived assets and
provision for income tax valuation. 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 |
|
|
|
January 28, 2017 |
|
January 30, 2016 |
|
January 28, 2017 |
|
January 30, 2016 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
78,490 |
|
|
$ |
79,730 |
|
|
$ |
318,508 |
|
|
$ |
319,067 |
|
|
|
|
|
|
|
|
|
|
|
Costs on exited brands |
|
|
493 |
|
|
|
- |
|
|
|
1,362 |
|
|
|
2,138 |
|
Costs of streamlining and consolidation of operations, and
other strategic initiatives |
|
|
- |
|
|
|
42 |
|
|
|
290 |
|
|
|
952 |
|
|
|
|
|
|
|
|
|
|
|
Gross
profit, as adjusted |
|
$ |
78,983 |
|
|
$ |
79,772 |
|
|
$ |
320,160 |
|
|
$ |
322,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues |
|
$ |
204,180 |
|
|
$ |
214,363 |
|
|
$ |
861,086 |
|
|
$ |
899,515 |
|
|
|
|
|
|
|
|
|
|
|
Gross
margin, as adjusted |
|
|
38.7 |
% |
|
|
37.2 |
% |
|
|
37.2 |
% |
|
|
35.8 |
% |
|
|
|
|
|
(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 (LOSS) TO EBITDA
AND ADJUSTED EBITDA(1) |
(UNAUDITED) |
(amounts in 000's) |
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended |
|
|
|
January 28, 2017 |
|
January 30, 2016 |
|
January 28, 2017 |
|
January 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
8,997 |
|
|
$ |
(17,695 |
) |
|
$ |
14,517 |
|
|
$ |
(7,292 |
) |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,825 |
|
|
|
3,542 |
|
|
|
14,542 |
|
|
|
13,693 |
|
Interest expense |
|
|
1,743 |
|
|
|
1,844 |
|
|
|
7,395 |
|
|
|
9,267 |
|
Costs on early extinguishment of debt |
|
|
195 |
|
|
|
- |
|
|
|
195 |
|
|
|
5,121 |
|
Income tax provision |
|
|
(2,306 |
) |
|
|
(3,243 |
) |
|
|
389 |
|
|
|
(432 |
) |
EBITDA |
|
|
|
12,454 |
|
|
|
(15,552 |
) |
|
|
37,038 |
|
|
|
20,357 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Impairment
on long-lived assets |
|
|
1,451 |
|
|
|
26,626 |
|
|
|
1,451 |
|
|
|
26,626 |
|
Costs on
exited brands |
|
|
493 |
|
|
|
- |
|
|
|
1,362 |
|
|
|
2,138 |
|
Costs of
streamlining and consolidation of operations, legal settlement, and
other strategic initiatives |
|
920 |
|
|
|
1,837 |
|
|
|
7,231 |
|
|
|
5,488 |
|
Costs of
pension settlement |
|
|
1,792 |
|
|
|
4,427 |
|
|
|
10,092 |
|
|
|
4,427 |
|
Loss on
sale of long-lived assets |
|
|
- |
|
|
|
(4,476 |
) |
|
|
- |
|
|
|
(3,779 |
) |
|
|
|
|
|
|
|
|
|
|
EBITDA, as
adjusted |
|
$ |
17,110 |
|
|
$ |
12,862 |
|
|
$ |
57,174 |
|
|
$ |
55,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
$ |
78,490 |
|
|
$ |
79,730 |
|
|
$ |
318,508 |
|
|
$ |
319,067 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
(64,585 |
) |
|
|
(73,132 |
) |
|
|
(280,019 |
) |
|
|
(275,863 |
) |
Costs on exited brands |
|
|
493 |
|
|
|
- |
|
|
|
1,362 |
|
|
|
2,138 |
|
Costs of streamlining and consolidation of operations, and
other strategic initiatives |
|
|
920 |
|
|
|
1,837 |
|
|
|
7,231 |
|
|
|
5,488 |
|
Costs of pension settlement |
|
|
1,792 |
|
|
|
4,427 |
|
|
|
10,092 |
|
|
|
4,427 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as
adjusted |
|
$ |
17,110 |
|
|
$ |
12,862 |
|
|
$ |
57,174 |
|
|
$ |
55,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues |
|
$ |
204,180 |
|
|
$ |
214,363 |
|
|
$ |
861,086 |
|
|
$ |
899,515 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin percentage of revenues |
|
|
8.4 |
% |
|
|
6.0 |
% |
|
|
6.6 |
% |
|
|
6.1 |
% |
|
|
|
|
|
(1 |
) Adjusted EBITDA consists of income (loss) 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, costs of pension
settlement, as well as the loss on sale of long-lived assets.
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. |
Contact:
Annette Ramos, Investor Relations
305-873-1488
Annette.ramos@pery.com
Perry Ellis International Inc. (delisted) (NASDAQ:PERY)
Historical Stock Chart
From Apr 2024 to May 2024
Perry Ellis International Inc. (delisted) (NASDAQ:PERY)
Historical Stock Chart
From May 2023 to May 2024