Exhibit 99.1
PERRY ELLIS INTERNATIONAL REPORTS 14.3% INCREASE IN REVENUES
AND 8.4% INCREASE IN PROFITS IN FIRST QUARTER
-RE-AFFIRMS GUIDANCE FOR FISCAL 2006-
MIAMI—May 24, 2005—Perry Ellis International, Inc. (NASDAQ: PERY) today reported record total revenue for the first quarter ended April 30, 2005 of $225.6 million, an increase of $28.2 million or 14.3% over the $197.4 million reported for the first quarter ended April 30, 2004.
Net income grew to $8.9 million for the quarter ended April 30, 2005, an increase of $686,000 or 8.4 % over the same quarter last year. Earnings per fully diluted share for the quarter ended April 30, 2005 were $0.89 which were equal to diluted earnings per share for the first quarter in the prior year. Earnings per diluted share for the most recent quarter, however, included a 9% increase in weighted average shares outstanding due to the Company’s stock offering in May 2004.
The Company confirmed its previously announced fiscal 2006 guidance with total revenues expected to be in the range of approximately $890 to $910 million and diluted earnings per share to be approximately $2.25 to $2.35.
George Feldenkreis, chairman and chief executive officer, stated: “We are delighted to have delivered the strongest revenue quarter in the history of the Company to our shareholders. Our strong portfolio of brands and diverse customer base continues to position the company for growth. The integration of the Tropical Sportswear business is proceeding as planned, making Perry Ellis International even more important to the retail customers in both the tops and bottoms categories. We see tremendous opportunities for several of our brands in the current retail environment.”
Oscar Feldenkreis, president and chief operating officer, commented, “The strength of our brands and our retail diversification strategy continues to provide solid results. Perry Ellis® continues to be a solid performer in the department store channel of distribution, and we can now complement Perry Ellis’® proficiency in dress bottoms with Savane®’s reputation in casual pants. We are also excited about the performance internationally of the Farah® and Savanne® brands and are looking forward to the opportunities of launching our other brands in Europe and the U.K. through our recently acquired U.K. subsidiary. Original Penguin® is one of the hottest young men’s brands in the market today, with a celebrity following and a range of new product launches planned this year. Our Cubavera® and other Hispanic initiatives continue to perform exceptionally well at all levels of retail distribution. And finally, our stable of golf brands, especially Grand Slam® and PGA Tour®, performed extremely well this quarter, in response to customer and consumer interest in this lifestyle category.”
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, including dress and casual shirts, golf sportswear, sweaters, dress and casual pants and shorts, jeans wear, active wear and men’s and women’s swimwear to all major levels of retail distribution. The company, through its wholly owned subsidiaries, owns a portfolio of highly recognized brands including Perry Ellis®, Jantzen®, Cubavera®, Munsingwear®, John Henry®, Original Penguin®, Grand Slam®, Natural Issue®, Pro Player®, the Havanera Co.®, Axis®, and Tricots St. Raphael®. The company also licenses trademarks from third parties including Nike® 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
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. The actual results of Perry Ellis could differ materially from those expressed or indicated by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, a significant decrease in business from or loss of any of Perry Ellis’ major customers, anticipated and unanticipated trends and conditions in the apparel industry, including future retail and wholesale consolidation, the effectiveness of Perry Ellis’ planned advertising, marketing and promotional campaigns, the seasonality and performance of Perry Ellis’ swimwear business, the ability of Perry Ellis to contain costs, disruption in the supply chain, Perry Ellis’ future capital needs and ability to obtain financing, ability to integrate businesses, trademarks, trade names and licenses, including the recently completed Tropical acquisition, ability to predict consumer preferences and changes in fashion trends and consumer acceptance of both new designs and newly introduced products, changes in the costs of raw materials, labor and advertising, ability to carry out growth strategies, the level of consumer spending for apparel and other merchandise, ability to compete, termination or non-renewal of any material license agreements to which Perry Ellis is a party, exposure to foreign currency and interest rate risk, possible disruption in commercial activities due to terrorist activity and armed conflict and other factors, including those 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. Any forward-looking statements speak only as of the day hereof and Perry Ellis disclaims any intent or obligation to update the same.
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(amounts in 000’s, except per share information)
INCOME STATEMENT DATA:
Three Months Ended April 30, | ||||||
2005 | 2004 | |||||
Revenues | ||||||
Net sales | $ | 220,394 | $ | 192,104 | ||
Royalty income | 5,206 | 5,315 | ||||
Total revenues | 225,600 | 197,419 | ||||
Cost of sales | 152,673 | 134,616 | ||||
Gross profit | 72,927 | 62,803 | ||||
Operating expenses | ||||||
Selling, general and administrative expenses | 51,088 | 44,873 | ||||
Depreciation and amortization | 2,240 | 1,505 | ||||
Total operating expenses | 53,328 | 46,378 | ||||
Operating income | 19,599 | 16,425 | ||||
Interest expense | 5,370 | 3,445 | ||||
Income before minority interest and income taxes | 14,229 | 12,980 | ||||
Minority interest | 243 | 59 | ||||
Income tax provision | 5,095 | 4,716 | ||||
Net income | $ | 8,891 | $ | 8,205 | ||
Net income per share | ||||||
Basic | $ | 1.05 | $ | 0.97 | ||
Diluted | $ | 0.89 | $ | 0.89 | ||
Weighted average number of shares outstanding | ||||||
Basic | 8,465 | 8,476 | ||||
Diluted | 10,000 | 9,187 |
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(amounts in 000’s)
BALANCE SHEET DATA:
As of | ||||||
April 30, 2005 | January 31, 2005 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 4,760 | $ | 5,398 | ||
Accounts receivable, net | 176,517 | 134,918 | ||||
Inventories, net | 158,437 | 115,321 | ||||
Deferred income taxes | 13,134 | 12,564 | ||||
Prepaid income taxes | 691 | 2,354 | ||||
Other current assets | 5,615 | 7,748 | ||||
Total current assets | 359,154 | 278,303 | ||||
Property and equipment, net | 63,311 | 48,978 | ||||
Intangible assets, net | 177,174 | 160,885 | ||||
Deferred income taxes | 7,329 | 10,216 | ||||
Other assets | 13,715 | 16,578 | ||||
Total assets | $ | 620,683 | $ | 514,960 | ||
Liabilities and stockholders’ equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 44,091 | $ | 47,492 | ||
Accrued expenses | 22,538 | 13,913 | ||||
Accrued interest | 1,802 | 4,800 | ||||
Current portion of real estate mortgage | 143 | 140 | ||||
Income taxes payable | 202 | — | ||||
Deferred income taxes | 32 | — | ||||
Unearned revenues | 1,138 | 1,036 | ||||
Other current liabilities | 3,080 | 3,119 | ||||
Total current liabilities | 73,026 | 70,500 | ||||
Long term liabilities: | ||||||
Senior subordinated notes payable | 148,790 | 151,518 | ||||
Senior secured notes payable | 57,925 | 58,828 | ||||
Senior credit facility | 107,912 | 10,771 | ||||
Real estate mortgage | 11,356 | 11,393 | ||||
Lease payable long term | 698 | 381 | ||||
Deferred pension obligation | 15,597 | 15,617 | ||||
Total long term liabilities | 342,278 | 248,508 | ||||
Total liabilities | 415,304 | 319,008 | ||||
Minority interest | 1,627 | 1,384 | ||||
Stockholders’ equity | ||||||
Preferred stock | — | — | ||||
Common stock | 95 | 95 | ||||
Additional paid in capital | 87,956 | 87,544 | ||||
Retained earnings | 115,188 | 106,297 | ||||
Accumulated other comprehensive income | 513 | 632 | ||||
Total | 203,752 | 194,568 | ||||
Common stock in treasury | — | — | ||||
Total stockholders’ equity | 203,752 | 194,568 | ||||
Total liabilities and stockholders’ equity | $ | 620,683 | $ | 514,960 | ||
CONTACT: Perry Ellis International, Inc., Miami
Rosemary Trudeau, 305-873-1294
rosemary.trudeau@pery.com