Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
2-May-15 | Jun. 04, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 2-May-15 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PERY | |
Entity Registrant Name | PERRY ELLIS INTERNATIONAL, INC | |
Entity Central Index Key | 900349 | |
Current Fiscal Year End Date | -29 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,613,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $18,736 | $43,547 |
Accounts receivable, net | 180,992 | 137,432 |
Inventories | 153,495 | 183,734 |
Investments, at fair value | 14,009 | 19,996 |
Deferred income taxes | 741 | 725 |
Prepaid income taxes | 5,451 | 6,384 |
Prepaid expenses and other current assets | 6,359 | 7,124 |
Total current assets | 379,783 | 398,942 |
Property and equipment, net | 64,723 | 64,633 |
Other intangible assets, net | 206,781 | 210,201 |
Goodwill | 6,022 | 6,022 |
Other assets | 5,506 | 5,191 |
TOTAL | 662,815 | 684,989 |
Current Liabilities: | ||
Accounts payable | 70,830 | 117,789 |
Accrued expenses and other liabilities | 27,372 | 22,355 |
Accrued interest payable | 1,037 | 4,045 |
Unearned revenues | 5,265 | 4,856 |
Deferred pension obligation | 8,985 | 8,930 |
Deferred income taxes | 797 | 797 |
Total current liabilities | 114,286 | 158,772 |
Senior subordinated notes payable, net | 150,000 | 150,000 |
Senior credit facility | 9,670 | |
Real estate mortgages | 21,882 | 22,109 |
Unearned revenues and other long-term liabilities | 14,707 | 15,009 |
Deferred income taxes | 38,881 | 37,082 |
Total long-term liabilities | 235,140 | 224,200 |
Total liabilities | 349,426 | 382,972 |
Commitment and contingencies | ||
Equity: | ||
Preferred stock $.01 par value; 5,000,000 shares authorized; no shares issued or outstanding | ||
Common stock $.01 par value; 100,000,000 shares authorized; 16,126,491 shares issued and outstanding as of May 2, 2015 and 16,128,775 shares issued and outstanding as of January 31, 2015 | 161 | 161 |
Additional paid-in-capital | 162,231 | 161,336 |
Retained earnings | 178,513 | 169,102 |
Accumulated other comprehensive loss | -11,786 | -12,852 |
Total | 329,119 | 317,747 |
Treasury stock at cost; 770,753 as of May 2, 2015 and 770,753 shares as of January 31, 2015 | -15,730 | -15,730 |
Total equity | 313,389 | 302,017 |
TOTAL | $662,815 | $684,989 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 2-May-15 | Jan. 31, 2015 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 16,126,491 | 16,128,775 |
Common stock, shares outstanding | 16,126,491 | 16,128,775 |
Treasury stock, shares | 770,753 | 770,753 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 2-May-15 | 3-May-14 |
Revenues: | ||
Net sales | $258,257 | $249,916 |
Royalty income | 8,157 | 7,398 |
Total revenues | 266,414 | 257,314 |
Cost of sales | 176,314 | 169,649 |
Gross profit | 90,100 | 87,665 |
Operating expenses: | ||
Selling, general and administrative expenses | 69,608 | 69,710 |
Depreciation and amortization | 3,322 | 2,980 |
Total operating expenses | 72,930 | 72,690 |
Loss on sale of long-lived assets | -697 | |
Operating income | 16,473 | 14,975 |
Interest expense | 3,627 | 3,716 |
Net income before income taxes | 12,846 | 11,259 |
Income tax provision | 3,435 | 3,484 |
Net income | $9,411 | $7,775 |
Net income per share: | ||
Basic | $0.64 | $0.53 |
Diluted | $0.62 | $0.52 |
Weighted average number of shares outstanding | ||
Basic | 14,649 | 14,782 |
Diluted | 15,161 | 15,010 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 | ||
Net income | $9,411 | $7,775 | ||
Other Comprehensive income: | ||||
Foreign currency translation adjustments, net | 938 | 636 | ||
Unrealized gain on pension liability, net of tax | 135 | [1] | 80 | [1] |
Unrealized (loss) gain on investments | -7 | 38 | ||
Total other comprehensive income | 1,066 | 754 | ||
Comprehensive income | $10,477 | $8,529 | ||
[1] | Unrealized gain on pension liability for the three months ended May 2, 2015 and May 3, 2014 is net of tax in the amount of $0 and $50, respectively. See footnote 12 to the consolidated financial statements for further information |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Unrealized gain on pension liability, tax provision (benefit) | $0 | $50 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $9,411 | $7,775 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 3,482 | 3,134 |
Provision for bad debts | 250 | 299 |
Amortization of debt issue cost | 163 | 158 |
Amortization of premiums and discounts | 54 | 127 |
Amortization of unrealized loss on pension liability | 135 | 130 |
Deferred income taxes | 1,783 | 3,270 |
Share-based compensation | 1,049 | 1,508 |
Loss on sale of long-lived assets | 697 | |
Changes in operating assets and liabilities, net of acquisitions | ||
Accounts receivable, net | -43,443 | -36,595 |
Inventories | 30,553 | 29,942 |
Prepaid income taxes | 908 | 337 |
Prepaid expenses and other current assets | 773 | -599 |
Other assets | 92 | -11 |
Accounts payable and accrued expenses | -42,726 | -55,191 |
Accrued interest payable | -3,008 | -3,059 |
Unearned revenues and other liabilities | 104 | 2,059 |
Deferred pension obligation | 55 | -591 |
Net cash used in operating activities | -39,668 | -47,307 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | -3,319 | -3,050 |
Purchase of investments | -2,640 | -15,387 |
Proceeds from investments maturities | 8,580 | 9,490 |
Proceeds on sale of intangible assets | 2,500 | |
Net cash provided by (used in) investing activities | 5,121 | -8,947 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings from senior credit facility | 90,036 | 110,991 |
Payments on senior credit facility | -80,366 | -54,586 |
Payments on real estate mortgages | -206 | -200 |
Payments on capital leases | -77 | -75 |
Deferred financing fees | -569 | |
Proceeds from exercise of stock options | 114 | |
Tax benefit from exercise of equity instruments | 396 | -95 |
Net cash (used in) provided by financing activities | 9,328 | 56,035 |
Effect of exchange rate changes on cash and cash equivalents | 408 | -161 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -24,811 | -380 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 43,547 | 26,989 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 18,736 | 26,609 |
Cash paid during the period for: | ||
Interest | 6,418 | 6,490 |
Income taxes | 57 | 287 |
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||
Accrued purchases of property and equipment | $4 |
General
General | 3 Months Ended |
2-May-15 | |
General | 1. GENERAL |
The accompanying unaudited condensed consolidated financial statements of Perry Ellis International, Inc. and subsidiaries (“Perry Ellis” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the requirements of the Securities and Exchange Commission on Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and changes in cash flows required by GAAP for annual financial statements. These condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2015, filed with the Securities and Exchange Commission on April 14, 2015. | |
The information presented reflects all adjustments, which are in the opinion of management of a normal and recurring nature, necessary for a fair presentation of the interim periods. Results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire fiscal year. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
2-May-15 | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU No. 2014-08 amends the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments require expanded disclosures for discontinued operations that would provide users of financial statements with more information about the assets, liabilities, revenues, and expenses of discontinued operations and disclosure of the pretax profit or loss of individually significant components of an entity that do not qualify for discontinued operations reporting. ASU No. 2014-08 is to be applied prospectively to all disposals (or classifications as held for sale) of components of an entity and all businesses or nonprofit activities that, on acquisition, are classified as held for sale that occur within fiscal years, and interim periods within those years, beginning after December 15, 2014. The adoption of ASU No. 2014-08 did not have a material impact on the Company’s results of operations or the Company’s financial position. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”) that removes inconsistencies and weaknesses in revenue requirements, provides a more robust framework for addressing revenue issues, improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, provides more useful information to users of financial statements through improved disclosure requirements and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Companies can choose to apply the ASU using either the full retrospective approach or a modified retrospective approach. The Company is currently evaluating both methods of adoption and the impact, if any, that the adoption of this ASU will have on the Company’s results of operations or the Company’s financial position. | |
In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force).” ASU No. 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU No. 2014-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Earlier adoption is permitted. The amendments can be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards. The Company is currently evaluating both methods of adoption and the impact, if any, that the adoption of this ASU will have on the Company’s results of operations or the Company’s financial position. | |
In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis”, which changes the guidance for evaluating whether to consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities. Additionally, the amendments eliminate the presumption that a general partner should consolidate a limited partnership, as well as affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for periods beginning after December 15, 2015 and early adoption is permitted, including adoption during an interim period. Companies have an option of using either a full retrospective or modified retrospective adoption approach. The Company is currently evaluating the impact that the adoption of ASU 2015-02 will have on its consolidated financial statements. | |
In March 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30)”, which is simplifying the Presentation of Debt Issuance Costs. The standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for interim periods beginning after December 15, 2015. The Company expects the adoption of the standard will result in the presentation of debt issuance costs, which are currently included in other assets, in the condensed consolidated balance sheets, as a direct deduction from the carrying amount of the related debt instrument. |
Accounts_Receivable
Accounts Receivable | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Accounts Receivable | 3. ACCOUNTS RECEIVABLE | ||||||||
Accounts receivable consisted of the following as of: | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Trade accounts | $ | 200,002 | $ | 150,515 | |||||
Royalties | 4,579 | 6,662 | |||||||
Other receivables | 958 | 1,034 | |||||||
Total | 205,539 | 158,211 | |||||||
Less: allowances | (24,547 | ) | (20,779 | ) | |||||
Total | $ | 180,992 | $ | 137,432 | |||||
Inventories
Inventories | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Inventories | 4. INVENTORIES | ||||||||
Inventories are stated at the lower of cost (weighted moving average cost) or market. Cost principally consists of the purchase price, customs, duties, freight, and commissions to buying agents. | |||||||||
Inventories consisted of the following as of: | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Finished goods | $ | 153,198 | $ | 183,468 | |||||
Raw materials and in process | 297 | 266 | |||||||
Total | $ | 153,495 | $ | 183,734 | |||||
Investments
Investments | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Investments | 5. INVESTMENTS | ||||||||||||||||
The Company’s investments include marketable securities and certificates of deposit at May 2, 2015 and January 31, 2015. Marketable securities are classified as available-for-sale and consist of corporate bonds with maturity dates less than two years. Certificates of deposit are classified as available-for-sale with $6.2 million with maturity dates within one year or less and $0.6 million with maturity dates over one year and less than two years. Investments are stated at fair value. The estimated fair value of the marketable securities is based on quoted prices in an active market (Level 1 fair value measures). | |||||||||||||||||
Investments consisted of the following as of May 2, 2015: | |||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||
Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||
(in thousands) | |||||||||||||||||
Marketable securities | $ | 7,207 | $ | 1 | $ | (1 | ) | $ | 7,207 | ||||||||
Certificates of deposit | 6,802 | 1 | (1 | ) | 6,802 | ||||||||||||
Total investments | $ | 14,009 | $ | 2 | $ | (2 | ) | $ | 14,009 | ||||||||
Investments consisted of the following as of January 31, 2015: | |||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||
Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||
(in thousands) | |||||||||||||||||
Marketable securities | $ | 12,247 | $ | 9 | — | $ | 12,256 | ||||||||||
Certificates of deposit | 7,742 | 1 | (3 | ) | 7,740 | ||||||||||||
Total investments | $ | 19,989 | $ | 10 | $ | (3 | ) | $ | 19,996 | ||||||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Property and Equipment | 6. PROPERTY AND EQUIPMENT | ||||||||
Property and equipment consisted of the following as of: | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Furniture, fixtures and equipment | $ | 80,890 | $ | 79,225 | |||||
Buildings and building improvements | 19,880 | 19,719 | |||||||
Vehicles | 560 | 569 | |||||||
Leasehold improvements | 48,597 | 47,807 | |||||||
Land | 9,488 | 9,488 | |||||||
Total | 159,415 | 156,808 | |||||||
Less: accumulated depreciation and amortization | (94,692 | ) | (92,175 | ) | |||||
Total | $ | 64,723 | $ | 64,633 | |||||
The above table of property and equipment includes assets held under capital leases as of: | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Furniture, fixtures and equipment | $ | 888 | $ | 888 | |||||
Less: accumulated depreciation and amortization | (865 | ) | (791 | ) | |||||
Total | $ | 23 | $ | 97 | |||||
For the three months ended May 2, 2015 and May 3, 2014, depreciation and amortization expense relating to property and equipment amounted to $3.3 million and $2.9 million, respectively, for each of the periods. These amounts include amortization expense for leased property under capital leases. |
Other_Intangible_Assets
Other Intangible Assets | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Other Intangible Assets | 7. OTHER INTANGIBLE ASSETS | ||||||||
Trademarks | |||||||||
Trademarks included in other intangible assets, net, are considered indefinite-lived assets and totaled $202.3 million at May 2, 2015 and $205.5 million at January 31, 2015. | |||||||||
On March 19, 2015, the Company entered into an agreement to sell the intellectual property of its C&C California brand to a third party. The sales price was $2.5 million, which was collected during the first quarter of fiscal 2016. In connection with this transaction, the Company recorded a loss of ($0.7) million in the licensing segment. | |||||||||
Other | |||||||||
Other intangible assets represent: | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Customer lists | $ | 8,450 | $ | 8,450 | |||||
Less: accumulated amortization | (4,006 | ) | (3,782 | ) | |||||
Total | $ | 4,444 | $ | 4,668 | |||||
For the three months ended May 2, 2015 and May 3, 2014, amortization expense relating to customer lists amounted to approximately $0.2 million, respectively, for each of the periods. Other intangible assets are amortized over their estimated useful lives of 10 years. Assuming no impairment, the estimated amortization expense for future periods based on recorded amounts as of May 2, 2015, will be approximately $0.9 million a year from fiscal 2016 through fiscal 2017, approximately $0.8 million a year from fiscal 2018 through fiscal 2019, approximately $0.7 million for fiscal 2020 and approximately $0.5 million for fiscal 2021. |
Letter_of_Credit_Facilities
Letter of Credit Facilities | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Letter of Credit Facilities | 8. LETTER OF CREDIT FACILITIES | ||||||||
Borrowings and availability under letter of credit facilities consisted of the following as of: | |||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Total letter of credit facilities | $ | 30,305 | $ | 45,301 | |||||
Outstanding letters of credit | (11,595 | ) | (11,595 | ) | |||||
Total credit available | $ | 18,710 | $ | 33,706 | |||||
During the first quarter of fiscal 2016, a $15 million line of credit expired and was not renewed. |
Advertising_and_Related_Costs
Advertising and Related Costs | 3 Months Ended |
2-May-15 | |
Advertising and Related Costs | 9. ADVERTISING AND RELATED COSTS |
The Company’s accounting policy relating to advertising and related costs is to expense these costs in the period incurred. Advertising and related costs were approximately $3.8 million and $4.7 million for the three months ended May 2, 2015 and May 3, 2014, respectively, and are included in selling, general and administrative expenses. |
Net_Income_per_Share
Net Income per Share | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Net Income per Share | 10. NET INCOME PER SHARE | ||||||||
Basic net income per share is computed by dividing net income by the weighted average shares of outstanding common stock. The calculation of diluted net income per share is similar to basic earnings per share except that the denominator includes potentially dilutive common stock. The potentially dilutive common stock included in the Company’s computation of diluted net income per share includes the effects of stock options, stock appreciation rights (“SARS”), and unvested restricted shares as determined using the treasury stock method. | |||||||||
The following table sets forth the computation of basic and diluted income per share: | |||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
(in thousands, except per share data) | |||||||||
Numerator: | |||||||||
Net income | $ | 9,411 | $ | 7,775 | |||||
Denominator: | |||||||||
Basic-weighted average shares | 14,649 | 14,782 | |||||||
Dilutive effect: equity awards | 512 | 228 | |||||||
Diluted-weighted average shares | 15,161 | 15,010 | |||||||
Basic income per share | $ | 0.64 | $ | 0.53 | |||||
Diluted income per share | $ | 0.62 | $ | 0.52 | |||||
Antidilutive effect:(1) | 479 | 1,360 | |||||||
-1 | Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
Equity
Equity | 3 Months Ended | ||||
2-May-15 | |||||
Equity | 11. EQUITY | ||||
The following table reflects the changes in equity: | |||||
Changes in Equity | |||||
(in thousands) | |||||
Equity at January 31, 2015 | $ | 302,017 | |||
Comprehensive income | 10,477 | ||||
Share transactions under employee equity compensation plans | 895 | ||||
Equity at May 2, 2015 | $ | 313,389 | |||
Equity at February 1, 2014 | $ | 347,533 | |||
Comprehensive income | 8,529 | ||||
Share transactions under employee equity compensation plans | 1,141 | ||||
Equity at May 3, 2014 | $ | 357,203 | |||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Accumulated Other Comprehensive Loss | 12. ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||
Changes in accumulated other comprehensive loss by component, net of tax: | |||||||||||||||||
Unrealized | Foreign | Unrealized | Total | ||||||||||||||
(Loss) Gain on | Currency Translation | Gain (Loss) on | |||||||||||||||
Pension Liability | Adjustments, Net | Investments | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance, January 31, 2015 | $ | (8,085 | ) | $ | (4,774 | ) | $ | 7 | $ | (12,852 | ) | ||||||
Other comprehensive income before reclassifications | — | 938 | (7 | ) | 931 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 135 | — | — | 135 | |||||||||||||
Balance, May 2, 2015 | $ | (7,950 | ) | $ | (3,836 | ) | $ | 0 | $ | (11,786 | ) | ||||||
A summary of the impact on the condensed consolidated statement of income line items is as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
May 2, 2015 | May 3, 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||||
Actuarial gains | $ | 135 | $ | 130 | Selling, general and administrative expenses | ||||||||||||
Tax provision | — | 50 | Income tax provision | ||||||||||||||
Total, net of tax | $ | 135 | $ | 80 | |||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
2-May-15 | |
Income Taxes | 13. INCOME TAXES |
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s U.S. federal income tax returns for fiscal 2011 through fiscal 2015 are open tax years. The Company’s state tax filings are subject to varying statutes of limitations. The Company’s unrecognized state tax benefits are related to open tax years from fiscal 2005 through fiscal 2016, depending on each state’s particular statute of limitation. As of May 2, 2015, the fiscal 2011 and 2012 U.S. federal income tax returns are under examination as well as various state, local, and foreign income tax returns by various taxing authorities. | |
The Company has a $1.0 million liability recorded for unrecognized tax benefits as of January 31, 2015, which includes interest and penalties of $0.2 million. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. All of the unrecognized tax benefits, if recognized, would affect the Company’s effective tax rate. During the three months ended May 2, 2015, the total amount of unrecognized tax benefits increased by approximately $118,000. The change to the total amount of the unrecognized tax benefit for the three months ended May 2, 2015 included an increase in interest and penalties of approximately $20,000. | |
The Company expects to complete the ongoing examination with the state of New York within the next twelve months. The Company does not currently anticipate a resolution within the next twelve months for any of the remaining unrecognized tax benefits as of May 2, 2015. The statute of limitations related to the Company’s fiscal 2011and 2012 U.S. federal tax years has been extended as part of the examination and is not be expected to lapse within the next twelve months. | |
During the fourth quarter of fiscal 2015, the Company recognized a valuation allowance of $42.4 million against the remaining deferred tax assets, utilization of which is not restricted by factors beyond the Company’s control. The establishment of valuation allowances and development of projected annual effective tax rates requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. While the Company recognized pretax earnings in the first quarter of fiscal 2016, by itself that does not represent sufficient positive evidence that deferred tax asset will be realized to warrant removing the valuation allowances established against the U.S. deferred tax assets. Deferred tax assets without valuation allowances remain in certain foreign tax jurisdictions, where supported by the evidence. |
Stock_Options_Stock_Appreciati
Stock Options, Stock Appreciation Rights and Restricted Shares | 3 Months Ended |
2-May-15 | |
Stock Options, Stock Appreciation Rights and Restricted Shares | 14. STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND RESTRICTED SHARES |
During the three months ended May 2, 2015, the Company granted an aggregate of 73,489 shares of restricted stock to certain key employees, which vest primarily over a three-year period, at an estimated value of $1.8 million. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock. | |
In April 2015, a total of 91,083 shares of restricted stock vested, of which 27,325 shares were withheld to cover the employees’ statutory income tax requirements. The estimated value of the withheld shares was $0.7 million. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Segment Information | 15. SEGMENT INFORMATION | ||||||||
The Company has four reportable segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer and Licensing. The Men’s Sportswear and Swim and Women’s Sportswear segments derive revenues from the design, import and distribution of apparel to department stores and other retail outlets, principally throughout the United States. The Direct-to-Consumer segment derives its revenues from the sale of the Company’s branded and licensed products through its retail stores and e-commerce platform. The Licensing segment derives its revenues from royalties associated with the use of the Company’s brand names, principally Perry Ellis, Jantzen, John Henry, Original Penguin, Gotcha, Farah, Savane, Pro Player, Laundry, Manhattan and Munsingwear. | |||||||||
The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by each segment. | |||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Revenues: | |||||||||
Men’s Sportswear and Swim | $ | 198,453 | $ | 194,999 | |||||
Women’s Sportswear | 38,823 | 34,487 | |||||||
Direct-to-Consumer | 20,981 | 20,430 | |||||||
Licensing | 8,157 | 7,398 | |||||||
Total revenues | $ | 266,414 | $ | 257,314 | |||||
Depreciation and amortization: | |||||||||
Men’s Sportswear and Swim | $ | 1,875 | $ | 1,634 | |||||
Women’s Sportswear | 500 | 461 | |||||||
Direct-to-Consumer | 904 | 846 | |||||||
Licensing | 43 | 39 | |||||||
Total depreciation and amortization | $ | 3,322 | $ | 2,980 | |||||
Operating income (loss): | |||||||||
Men’s Sportswear and Swim | $ | 11,330 | $ | 11,033 | |||||
Women’s Sportswear | 1,382 | 397 | |||||||
Direct-to-Consumer | (1,866 | ) | (1,852 | ) | |||||
Licensing (1) | 5,627 | 5,397 | |||||||
Total operating income | $ | 16,473 | $ | 14,975 | |||||
Total interest expense | 3,627 | 3,716 | |||||||
Total net income before income taxes | $ | 12,846 | $ | 11,259 | |||||
-1 | Operating income for the licensing segment for the three months ended May 2, 2015 includes a loss on sale of long-lived assets in the amount of ($0.7) million. See footnote 7 to the consolidated financial statements for further information. |
Benefit_Plan
Benefit Plan | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Benefit Plan | 16. BENEFIT PLAN | ||||||||
The Company sponsors a qualified pension plan. The following table provides the components of net benefit cost for the plan during the first quarter of fiscal 2016 and 2015: | |||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Service cost | $ | 63 | $ | 63 | |||||
Interest cost | 337 | 433 | |||||||
Expected return on plan assets | (658 | ) | (508 | ) | |||||
Amortization of net gain | 135 | 130 | |||||||
Net periodic benefit cost (income) | $ | (123 | ) | $ | 118 | ||||
Senior_Credit_Facility
Senior Credit Facility | 3 Months Ended |
2-May-15 | |
Senior Credit Facility | 17. SENIOR CREDIT FACILITY |
On April 22, 2015, the Company amended and restated its existing senior credit facility (the “Credit Facility”), with Wells Fargo Bank, National Association, as agent for the lenders, and Bank of America, N.A., as syndication agent. The Credit Facility provides a revolving credit facility of up to an aggregate amount of $200 million. The Credit Facility has been extended through April 30, 2020 (“Maturity Date”). In connection with this amendment and restatement, the Company paid fees in the amount of $0.6 million. These fees will be amortized over the term of the credit facility as interest expense. At May 2, 2015, we had outstanding borrowings of $9.7 million under the Credit Facility. At January 31, 2015, the Company had no outstanding borrowings under the Credit Facility. | |
Certain Covenants. The Credit Facility contains certain financial and other covenants, which, among other things, require the Company to maintain a minimum fixed charge coverage ratio if availability falls below certain thresholds. The Company is not aware of any non-compliance with any of its covenants in this Credit Facility. These covenants may restrict its ability and the ability of its subsidiaries to, among other things, incur additional indebtedness and liens in certain circumstances, redeem or repurchase capital stock, make certain investments or sell assets. The Company may pay cash dividends subject to certain restrictions set forth in the covenants including, but not limited to, meeting a minimum excess availability threshold and no occurrence of a default. The Company could be materially harmed if it violates any covenants, as the lenders under the Credit Facility could declare all amounts outstanding, together with accrued interest, to be immediately due and payable. If the Company is unable to repay those amounts, the lenders could proceed against its assets and the assets of its subsidiaries that are borrowers or guarantors. In addition, a covenant violation that is not cured or waived by the lenders could also constitute a cross-default under certain of its other outstanding indebtedness, such as the indenture relating to its 7 7/8% senior subordinated notes due April 1, 2019, its letter of credit facilities, or its real estate mortgage loans. Such a cross-default could result in all of its debt obligations becoming immediately due and payable, which it may not be able to satisfy. | |
Borrowing Base. Borrowings under the Credit Facility are limited to a borrowing base calculation, which generally restricts the outstanding balance to the sum of (a) 87.5% of eligible receivables plus (b) 87.5% of eligible foreign accounts up to $1.5 million plus (c) the lesser of (i) the inventory loan limit, which equals 80% of the maximum credit under the Credit Facility at the time, (ii) a maximum of 70.0% of eligible finished goods inventory with an inventory limit not to exceed $125 million, or 90.0% of the net recovery percentage (as defined in the Credit Facility) of eligible inventory. | |
Interest. Interest on the outstanding principal balance drawn under the Credit Facility accrues at the prime rate and at the rate quoted by the agent for Eurodollar loans. The margin adjusts quarterly, in a range of 0.50% to 1.00% for prime rate loans and 1.50% to 2.00% for Eurodollar loans, based on the previous quarterly average of excess availability plus excess cash on the last day of the previous quarter. | |
Security. As security for the indebtedness under the Credit Facility, the Company granted to the lenders a first priority security interest (subject to liens permitted under the Credit Facility to be senior thereto) in substantially all of its existing and future assets, including, without limitation, accounts receivable, inventory, deposit accounts, general intangibles, equipment and capital stock or membership interests, as the case may be, of certain subsidiaries, and real estate but excluding its non-U.S. subsidiaries and all of its trademark portfolio. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
2-May-15 | |
Fair Value Measurements | 18. FAIR VALUE MEASUREMENTS |
Accounts receivable, accounts payable, accrued interest payable and accrued expenses. The carrying amounts reported in the consolidated balance sheets approximate fair value due to the short-term nature of these instruments. | |
Investments. (classified within Level 1 of the valuation hierarchy) - The carrying amounts of the available-for-sale investments are measured at fair value on a recurring basis in the consolidated balance sheets. | |
Real estate mortgages. (classified within Level 2 of the valuation hierarchy) - The carrying amounts of the real estate mortgages were approximately $23.0 million at May 2, 2015 and January 31, 2015, respectively. The carrying values of the real estate mortgages at May 2, 2015 and January 31, 2015, approximate their fair values since they were recently entered into and thus the interest rates approximate market. | |
Senior credit facility. The carrying amount of the senior credit facility approximates fair value due to the frequent resets of its floating interest rate. | |
Senior subordinated notes payable. (classified within Level 1 of the valuation hierarchy) - The carrying amounts of the 7 7 / 8 % senior subordinated notes payable were approximately $150.0 million at May 2, 2015 and January 31, 2015. The fair value of the 7 7 / 8 % senior subordinated notes payable was approximately $156.0 million and $157.0 million as of May 2, 2015 and January 31, 2015, respectively, based on quoted market prices. | |
These estimated fair value amounts have been determined using available market information and appropriate valuation methods. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 3 Months Ended | ||||||||||||||||||||
2-May-15 | |||||||||||||||||||||
Condensed Consolidating Financial Statements | 19. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ||||||||||||||||||||
The Company and several of its subsidiaries (the “Guarantors”) have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis. These guarantees are subject to release in limited circumstances (only upon the occurrence of certain customary conditions). The following are condensed consolidating financial statements, which present, in separate columns: Perry Ellis International, Inc., (Parent Only), the Guarantors on a combined, or where appropriate, consolidated basis, and the Non-Guarantors on a combined, or where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of May 2, 2015 and January 31, 2015 and for the three months ended May 2, 2015 and May 3, 2014. The combined Guarantors are 100% owned subsidiaries of Perry Ellis International, Inc., and have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis. | |||||||||||||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED) | |||||||||||||||||||||
AS OF MAY 2, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3,193 | $ | 15,543 | $ | — | $ | 18,736 | |||||||||||
Accounts receivable, net | — | 153,189 | 27,803 | — | 180,992 | ||||||||||||||||
Intercompany receivable, net | 174,586 | — | — | (174,586 | ) | — | |||||||||||||||
Inventories | — | 129,691 | 23,804 | — | 153,495 | ||||||||||||||||
Investment, at fair value | — | — | 14,009 | — | 14,009 | ||||||||||||||||
Deferred income taxes | — | — | 741 | — | 741 | ||||||||||||||||
Prepaid income taxes | 4,018 | — | 188 | 1,245 | 5,451 | ||||||||||||||||
Prepaid expenses and other current assets | — | 5,345 | 1,014 | — | 6,359 | ||||||||||||||||
Total current assets | 178,604 | 291,418 | 83,102 | (173,341 | ) | 379,783 | |||||||||||||||
Property and equipment, net | — | 60,288 | 4,435 | — | 64,723 | ||||||||||||||||
Other intangible assets, net | — | 173,143 | 33,638 | — | 206,781 | ||||||||||||||||
Goodwill | — | 6,022 | — | — | 6,022 | ||||||||||||||||
Investment in subsidiaries | 284,125 | — | — | (284,125 | ) | — | |||||||||||||||
Other assets | 1,697 | 2,424 | 1,385 | — | 5,506 | ||||||||||||||||
TOTAL | $ | 464,426 | $ | 533,295 | $ | 122,560 | $ | (457,466 | ) | $ | 662,815 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Accounts payable | $ | — | $ | 64,493 | $ | 6,337 | $ | — | $ | 70,830 | |||||||||||
Accrued expenses and other liabilities | — | 23,119 | 4,253 | — | 27,372 | ||||||||||||||||
Accrued interest payable | 1,037 | — | — | — | 1,037 | ||||||||||||||||
Income taxes payable | — | 452 | — | (452 | ) | — | |||||||||||||||
Unearned revenues | — | 3,356 | 1,909 | — | 5,265 | ||||||||||||||||
Deferred pension obligation | — | 8,911 | 74 | — | 8,985 | ||||||||||||||||
Deferred income taxes | — | 797 | — | — | 797 | ||||||||||||||||
Intercompany payable, net | — | 155,841 | 23,191 | (179,032 | ) | — | |||||||||||||||
Total current liabilities | 1,037 | 256,969 | 35,764 | (179,484 | ) | 114,286 | |||||||||||||||
Senior subordinated notes payable, net | 150,000 | — | — | — | 150,000 | ||||||||||||||||
Senior credit facility | — | 9,670 | — | — | 9,670 | ||||||||||||||||
Real estate mortgages | — | 21,882 | — | — | 21,882 | ||||||||||||||||
Unearned revenues and other long-term liabilities | — | 13,633 | 1,074 | — | 14,707 | ||||||||||||||||
Deferred income taxes | — | 37,182 | 3 | 1,696 | 38,881 | ||||||||||||||||
Total long-term liabilities | 150,000 | 82,367 | 1,077 | 1,696 | 235,140 | ||||||||||||||||
Total liabilities | 151,037 | 339,336 | 36,841 | (177,788 | ) | 349,426 | |||||||||||||||
Total equity | 313,389 | 193,959 | 85,719 | (279,678 | ) | 313,389 | |||||||||||||||
TOTAL | $ | 464,426 | $ | 533,295 | $ | 122,560 | $ | (457,466 | ) | $ | 662,815 | ||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF JANUARY 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 30,055 | $ | 13,492 | $ | — | $ | 43,547 | |||||||||||
Accounts receivable, net | — | 114,325 | 23,107 | — | 137,432 | ||||||||||||||||
Intercompany receivable, net | 174,264 | — | — | (174,264 | ) | — | |||||||||||||||
Inventories | — | 156,107 | 27,627 | — | 183,734 | ||||||||||||||||
Investments, at fair value | — | — | 19,996 | — | 19,996 | ||||||||||||||||
Deferred income taxes | — | — | 725 | — | 725 | ||||||||||||||||
Prepaid income taxes | 5,275 | — | 314 | 795 | 6,384 | ||||||||||||||||
Prepaid expenses and other current assets | — | 6,159 | 965 | — | 7,124 | ||||||||||||||||
Total current assets | 179,539 | 306,646 | 86,226 | (173,469 | ) | 398,942 | |||||||||||||||
Property and equipment, net | — | 60,216 | 4,417 | — | 64,633 | ||||||||||||||||
Other intangible assets, net | — | 176,563 | 33,638 | — | 210,201 | ||||||||||||||||
Goodwill | — | 6,022 | — | — | 6,022 | ||||||||||||||||
Investment in subsidiaries | 274,714 | — | — | (274,714 | ) | — | |||||||||||||||
Other assets | 1,809 | 1,926 | 1,456 | — | 5,191 | ||||||||||||||||
TOTAL | $ | 456,062 | $ | 551,373 | $ | 125,737 | $ | (448,183 | ) | $ | 684,989 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Accounts payable | $ | — | $ | 105,046 | $ | 12,743 | $ | — | $ | 117,789 | |||||||||||
Accrued expenses and other liabilities | — | 17,945 | 4,410 | — | 22,355 | ||||||||||||||||
Accrued interest payable | 4,045 | — | — | — | 4,045 | ||||||||||||||||
Income taxes payable | — | 901 | — | (901 | ) | — | |||||||||||||||
Unearned revenues | — | 3,023 | 1,833 | — | 4,856 | ||||||||||||||||
Deferred pension obligation | — | 8,878 | 52 | — | 8,930 | ||||||||||||||||
Deferred income taxes | — | 797 | — | — | 797 | ||||||||||||||||
Intercompany payable, net | — | 156,438 | 23,211 | (179,649 | ) | — | |||||||||||||||
Total current liabilities | 4,045 | 293,028 | 42,249 | (180,550 | ) | 158,772 | |||||||||||||||
Senior subordinated notes payable, net | 150,000 | — | — | — | 150,000 | ||||||||||||||||
Real estate mortgages | — | 22,109 | — | — | 22,109 | ||||||||||||||||
Unearned revenues and other long-term liabilities | — | 13,620 | 1,389 | — | 15,009 | ||||||||||||||||
Deferred income taxes | — | 35,383 | 3 | 1,696 | 37,082 | ||||||||||||||||
Total long-term liabilities | 150,000 | 71,112 | 1,392 | 1,696 | 224,200 | ||||||||||||||||
Total liabilities | 154,045 | 364,140 | 43,641 | (178,854 | ) | 382,972 | |||||||||||||||
Total equity | 302,017 | 187,233 | 82,096 | (269,329 | ) | 302,017 | |||||||||||||||
TOTAL | $ | 456,062 | $ | 551,373 | $ | 125,737 | $ | (448,183 | ) | $ | 684,989 | ||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 2, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantors | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Net sales | $ | — | $ | 232,279 | $ | 25,978 | $ | — | $ | 258,257 | |||||||||||
Royalty income | — | 4,912 | 3,245 | — | 8,157 | ||||||||||||||||
Total revenues | — | 237,191 | 29,223 | — | 266,414 | ||||||||||||||||
Cost of sales | — | 160,251 | 16,063 | — | 176,314 | ||||||||||||||||
Gross profit | — | 76,940 | 13,160 | — | 90,100 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Selling, general and administrative expenses | — | 59,845 | 9,763 | — | 69,608 | ||||||||||||||||
Depreciation and amortization | — | 3,024 | 298 | — | 3,322 | ||||||||||||||||
Total operating expenses | — | 62,869 | 10,061 | — | 72,930 | ||||||||||||||||
Loss on sale of long-lived assets | — | (697 | ) | — | — | (697 | ) | ||||||||||||||
Operating income | — | 13,374 | 3,099 | — | 16,473 | ||||||||||||||||
Interest expense | — | 3,567 | 60 | — | 3,627 | ||||||||||||||||
Net income before income taxes | — | 9,807 | 3,039 | — | 12,846 | ||||||||||||||||
Income tax provision | — | 3,081 | 354 | — | 3,435 | ||||||||||||||||
Equity in earnings of subsidiaries, net | 9,411 | — | — | (9,411 | ) | — | |||||||||||||||
Net income | 9,411 | 6,726 | 2,685 | (9,411 | ) | 9,411 | |||||||||||||||
Other comprehensive income | 1,066 | 135 | 931 | (1,066 | ) | 1,066 | |||||||||||||||
Comprehensive income | $ | 10,477 | $ | 6,861 | $ | 3,616 | $ | (10,477 | ) | $ | 10,477 | ||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 3, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantors | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Net sales | $ | — | $ | 225,331 | $ | 24,585 | $ | — | $ | 249,916 | |||||||||||
Royalty income | — | 4,520 | 2,878 | — | 7,398 | ||||||||||||||||
Total revenues | — | 229,851 | 27,463 | — | 257,314 | ||||||||||||||||
Cost of sales | — | 154,245 | 15,404 | — | 169,649 | ||||||||||||||||
Gross profit | — | 75,606 | 12,059 | — | 87,665 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Selling, general and administrative expenses | — | 60,554 | 9,156 | — | 69,710 | ||||||||||||||||
Depreciation and amortization | — | 2,769 | 211 | — | 2,980 | ||||||||||||||||
Total operating expenses | — | 63,323 | 9,367 | — | 72,690 | ||||||||||||||||
Gain on sale of long-lived assets | — | — | — | — | — | ||||||||||||||||
Operating income | — | 12,283 | 2,692 | — | 14,975 | ||||||||||||||||
Interest expense | — | 3,685 | 31 | — | 3,716 | ||||||||||||||||
Net income before income taxes | — | 8,598 | 2,661 | — | 11,259 | ||||||||||||||||
Income tax provision | — | 2,220 | 1,264 | — | 3,484 | ||||||||||||||||
Equity in earnings of subsidiaries, net | 7,775 | — | — | (7,775 | ) | — | |||||||||||||||
Net income | 7,775 | 6,378 | 1,397 | (7,775 | ) | 7,775 | |||||||||||||||
Other comprehensive (loss) income | 754 | 80 | 674 | (754 | ) | 754 | |||||||||||||||
Comprehensive income | $ | 8,529 | $ | 6,458 | $ | 2,071 | $ | (8,529 | ) | $ | 8,529 | ||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 2, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantors | |||||||||||||||||||||
NET CASH USED IN BY OPERATING ACTIVITIES: | $ | (1,639 | ) | $ | (34,209 | ) | $ | (3,820 | ) | $ | — | $ | (39,668 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Purchase of property and equipment | — | (2,969 | ) | (350 | ) | — | (3,319 | ) | |||||||||||||
Purchase of investments | — | — | (2,640 | ) | — | (2,640 | ) | ||||||||||||||
Proceeds from investments maturities | — | — | 8,580 | — | 8,580 | ||||||||||||||||
Proceeds on sale of intangible assets | — | 2,500 | — | — | 2,500 | ||||||||||||||||
Intercompany transactions | 721 | — | — | (721 | ) | — | |||||||||||||||
Net cash provided by (used in) investing activities | 721 | (469 | ) | 5,590 | (721 | ) | 5,121 | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Borrowings from senior credit facility | — | 90,036 | — | — | 90,036 | ||||||||||||||||
Payments on senior credit facility | — | (80,366 | ) | — | — | (80,366 | ) | ||||||||||||||
Payments on real estate mortgages | — | (206 | ) | — | — | (206 | ) | ||||||||||||||
Payments on capital leases | — | (77 | ) | — | — | (77 | ) | ||||||||||||||
Deferred financing fees | — | (569 | ) | — | — | (569 | ) | ||||||||||||||
Proceeds from exercise of stock options | 114 | — | — | — | 114 | ||||||||||||||||
Tax benefit from exercise of equity instruments | 396 | — | — | — | 396 | ||||||||||||||||
Intercompany transactions | — | (1,002 | ) | (127 | ) | 1,129 | — | ||||||||||||||
Net cash provided by (used in) financing activities | 510 | 7,816 | (127 | ) | 1,129 | 9,328 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 408 | — | 408 | (408 | ) | 408 | |||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | — | (26,862 | ) | 2,051 | — | (24,811 | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | — | 30,055 | 13,492 | — | 43,547 | ||||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 3,193 | $ | 15,543 | $ | — | $ | 18,736 | |||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 3, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantors | |||||||||||||||||||||
NET CASH (USED IN) OPERATING ACTIVITIES: | $ | (4,408 | ) | $ | (45,242 | ) | $ | (656 | ) | $ | 2,999 | $ | (47,307 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Purchase of property and equipment | — | (2,816 | ) | (234 | ) | — | (3,050 | ) | |||||||||||||
Purchase of investments | — | — | (15,387 | ) | — | (15,387 | ) | ||||||||||||||
Proceeds from investments maturities | — | — | 9,490 | — | 9,490 | ||||||||||||||||
Intercompany transactions | 4,664 | — | — | (4,664 | ) | — | |||||||||||||||
Net cash provided by (used in) investing activities | 4,664 | (2,816 | ) | (6,131 | ) | (4,664 | ) | (8,947 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Borrowings from senior credit facility | — | 110,991 | — | — | 110,991 | ||||||||||||||||
Payments on senior credit facility | — | (54,586 | ) | — | — | (54,586 | ) | ||||||||||||||
Payments on real estate mortgages | — | (200 | ) | — | — | (200 | ) | ||||||||||||||
Payments on capital leases | — | (75 | ) | — | — | (75 | ) | ||||||||||||||
Tax benefit from exercise of equity instruments | (95 | ) | — | — | — | (95 | ) | ||||||||||||||
Intercompany transactions | — | (4,946 | ) | 443 | 4,503 | — | |||||||||||||||
Net cash (used in) provided by financing activities | (95 | ) | 51,184 | 443 | 4,503 | 56,035 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (161 | ) | — | (161 | ) | 161 | (161 | ) | |||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 3,126 | (6,505 | ) | 2,999 | (380 | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | — | — | 29,988 | (2,999 | ) | 26,989 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 3,126 | $ | 23,483 | $ | — | $ | 26,609 | |||||||||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
2-May-15 | |
Subsequent Event | 20. SUBSEQUENT EVENT |
On April 6, 2015, the Company elected to call for the partial redemption of $100 million of its $150 million outstanding 7.875% Senior Subordinated Notes due 2019 and a notice of redemption was sent to all registered holders of the notes. The terms provided for the payment of a redemption premium of 103.938% of the principal amount redeemed. On May 6, 2015, the Company completed the redemption of the $100 million of its senior subordinated notes. The Company incurred debt extinguishment costs of approximately $5.1 million in connection with the redemption, including this redemption premium as well as the write-off of note issuance costs. |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Components of Accounts Receivable | Accounts receivable consisted of the following as of: | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Trade accounts | $ | 200,002 | $ | 150,515 | |||||
Royalties | 4,579 | 6,662 | |||||||
Other receivables | 958 | 1,034 | |||||||
Total | 205,539 | 158,211 | |||||||
Less: allowances | (24,547 | ) | (20,779 | ) | |||||
Total | $ | 180,992 | $ | 137,432 | |||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Summary of Inventories | Inventories consisted of the following as of: | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Finished goods | $ | 153,198 | $ | 183,468 | |||||
Raw materials and in process | 297 | 266 | |||||||
Total | $ | 153,495 | $ | 183,734 | |||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Investments | Investments consisted of the following as of May 2, 2015: | ||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||
Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||
(in thousands) | |||||||||||||||||
Marketable securities | $ | 7,207 | $ | 1 | $ | (1 | ) | $ | 7,207 | ||||||||
Certificates of deposit | 6,802 | 1 | (1 | ) | 6,802 | ||||||||||||
Total investments | $ | 14,009 | $ | 2 | $ | (2 | ) | $ | 14,009 | ||||||||
Investments consisted of the following as of January 31, 2015: | |||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||
Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||
(in thousands) | |||||||||||||||||
Marketable securities | $ | 12,247 | $ | 9 | — | $ | 12,256 | ||||||||||
Certificates of deposit | 7,742 | 1 | (3 | ) | 7,740 | ||||||||||||
Total investments | $ | 19,989 | $ | 10 | $ | (3 | ) | $ | 19,996 | ||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Summary of Property and Equipment | Property and equipment consisted of the following as of: | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Furniture, fixtures and equipment | $ | 80,890 | $ | 79,225 | |||||
Buildings and building improvements | 19,880 | 19,719 | |||||||
Vehicles | 560 | 569 | |||||||
Leasehold improvements | 48,597 | 47,807 | |||||||
Land | 9,488 | 9,488 | |||||||
Total | 159,415 | 156,808 | |||||||
Less: accumulated depreciation and amortization | (94,692 | ) | (92,175 | ) | |||||
Total | $ | 64,723 | $ | 64,633 | |||||
Summary of Property and Equipment Includes Assets Held under Capital Leases | The above table of property and equipment includes assets held under capital leases as of: | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Furniture, fixtures and equipment | $ | 888 | $ | 888 | |||||
Less: accumulated depreciation and amortization | (865 | ) | (791 | ) | |||||
Total | $ | 23 | $ | 97 | |||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Summary of Other Intangible Assets | Other intangible assets represent: | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Customer lists | $ | 8,450 | $ | 8,450 | |||||
Less: accumulated amortization | (4,006 | ) | (3,782 | ) | |||||
Total | $ | 4,444 | $ | 4,668 | |||||
Letter_of_Credit_Facilities_Ta
Letter of Credit Facilities (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Borrowings and Availability under Letter of Credit Facilities | Borrowings and availability under letter of credit facilities consisted of the following as of: | ||||||||
May 2, | January 31, | ||||||||
2015 | 2015 | ||||||||
(in thousands) | |||||||||
Total letter of credit facilities | $ | 30,305 | $ | 45,301 | |||||
Outstanding letters of credit | (11,595 | ) | (11,595 | ) | |||||
Total credit available | $ | 18,710 | $ | 33,706 | |||||
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted income per share: | ||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
(in thousands, except per share data) | |||||||||
Numerator: | |||||||||
Net income | $ | 9,411 | $ | 7,775 | |||||
Denominator: | |||||||||
Basic-weighted average shares | 14,649 | 14,782 | |||||||
Dilutive effect: equity awards | 512 | 228 | |||||||
Diluted-weighted average shares | 15,161 | 15,010 | |||||||
Basic income per share | $ | 0.64 | $ | 0.53 | |||||
Diluted income per share | $ | 0.62 | $ | 0.52 | |||||
Antidilutive effect:(1) | 479 | 1,360 | |||||||
-1 | Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
Equity_Tables
Equity (Tables) | 3 Months Ended | ||||
2-May-15 | |||||
Changes in Equity | The following table reflects the changes in equity: | ||||
Changes in Equity | |||||
(in thousands) | |||||
Equity at January 31, 2015 | $ | 302,017 | |||
Comprehensive income | 10,477 | ||||
Share transactions under employee equity compensation plans | 895 | ||||
Equity at May 2, 2015 | $ | 313,389 | |||
Equity at February 1, 2014 | $ | 347,533 | |||
Comprehensive income | 8,529 | ||||
Share transactions under employee equity compensation plans | 1,141 | ||||
Equity at May 3, 2014 | $ | 357,203 | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||
2-May-15 | |||||||||||||||||
Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss by component, net of tax: | ||||||||||||||||
Unrealized | Foreign | Unrealized | Total | ||||||||||||||
(Loss) Gain on | Currency Translation | Gain (Loss) on | |||||||||||||||
Pension Liability | Adjustments, Net | Investments | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance, January 31, 2015 | $ | (8,085 | ) | $ | (4,774 | ) | $ | 7 | $ | (12,852 | ) | ||||||
Other comprehensive income before reclassifications | — | 938 | (7 | ) | 931 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 135 | — | — | 135 | |||||||||||||
Balance, May 2, 2015 | $ | (7,950 | ) | $ | (3,836 | ) | $ | 0 | $ | (11,786 | ) | ||||||
Summary of Impact on Condensed Consolidated Statements of Operations Line Items | A summary of the impact on the condensed consolidated statement of income line items is as follows: | ||||||||||||||||
Three Months Ended | |||||||||||||||||
May 2, 2015 | May 3, 2014 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||||
Actuarial gains | $ | 135 | $ | 130 | Selling, general and administrative expenses | ||||||||||||
Tax provision | — | 50 | Income tax provision | ||||||||||||||
Total, net of tax | $ | 135 | $ | 80 | |||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Segment Information | The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by each segment. | ||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Revenues: | |||||||||
Men’s Sportswear and Swim | $ | 198,453 | $ | 194,999 | |||||
Women’s Sportswear | 38,823 | 34,487 | |||||||
Direct-to-Consumer | 20,981 | 20,430 | |||||||
Licensing | 8,157 | 7,398 | |||||||
Total revenues | $ | 266,414 | $ | 257,314 | |||||
Depreciation and amortization: | |||||||||
Men’s Sportswear and Swim | $ | 1,875 | $ | 1,634 | |||||
Women’s Sportswear | 500 | 461 | |||||||
Direct-to-Consumer | 904 | 846 | |||||||
Licensing | 43 | 39 | |||||||
Total depreciation and amortization | $ | 3,322 | $ | 2,980 | |||||
Operating income (loss): | |||||||||
Men’s Sportswear and Swim | $ | 11,330 | $ | 11,033 | |||||
Women’s Sportswear | 1,382 | 397 | |||||||
Direct-to-Consumer | (1,866 | ) | (1,852 | ) | |||||
Licensing (1) | 5,627 | 5,397 | |||||||
Total operating income | $ | 16,473 | $ | 14,975 | |||||
Total interest expense | 3,627 | 3,716 | |||||||
Total net income before income taxes | $ | 12,846 | $ | 11,259 | |||||
-1 | Operating income for the licensing segment for the three months ended May 2, 2015 includes a loss on sale of long-lived assets in the amount of ($0.7) million. See footnote 7 to the consolidated financial statements for further information. |
Benefit_Plan_Tables
Benefit Plan (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
Components of Net Benefit Cost | The following table provides the components of net benefit cost for the plan during the first quarter of fiscal 2016 and 2015: | ||||||||
Three Months Ended | |||||||||
May 2, | May 3, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Service cost | $ | 63 | $ | 63 | |||||
Interest cost | 337 | 433 | |||||||
Expected return on plan assets | (658 | ) | (508 | ) | |||||
Amortization of net gain | 135 | 130 | |||||||
Net periodic benefit cost (income) | $ | (123 | ) | $ | 118 | ||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended | ||||||||||||||||||||
2-May-15 | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED) | |||||||||||||||||||||
AS OF MAY 2, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3,193 | $ | 15,543 | $ | — | $ | 18,736 | |||||||||||
Accounts receivable, net | — | 153,189 | 27,803 | — | 180,992 | ||||||||||||||||
Intercompany receivable, net | 174,586 | — | — | (174,586 | ) | — | |||||||||||||||
Inventories | — | 129,691 | 23,804 | — | 153,495 | ||||||||||||||||
Investment, at fair value | — | — | 14,009 | — | 14,009 | ||||||||||||||||
Deferred income taxes | — | — | 741 | — | 741 | ||||||||||||||||
Prepaid income taxes | 4,018 | — | 188 | 1,245 | 5,451 | ||||||||||||||||
Prepaid expenses and other current assets | — | 5,345 | 1,014 | — | 6,359 | ||||||||||||||||
Total current assets | 178,604 | 291,418 | 83,102 | (173,341 | ) | 379,783 | |||||||||||||||
Property and equipment, net | — | 60,288 | 4,435 | — | 64,723 | ||||||||||||||||
Other intangible assets, net | — | 173,143 | 33,638 | — | 206,781 | ||||||||||||||||
Goodwill | — | 6,022 | — | — | 6,022 | ||||||||||||||||
Investment in subsidiaries | 284,125 | — | — | (284,125 | ) | — | |||||||||||||||
Other assets | 1,697 | 2,424 | 1,385 | — | 5,506 | ||||||||||||||||
TOTAL | $ | 464,426 | $ | 533,295 | $ | 122,560 | $ | (457,466 | ) | $ | 662,815 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Accounts payable | $ | — | $ | 64,493 | $ | 6,337 | $ | — | $ | 70,830 | |||||||||||
Accrued expenses and other liabilities | — | 23,119 | 4,253 | — | 27,372 | ||||||||||||||||
Accrued interest payable | 1,037 | — | — | — | 1,037 | ||||||||||||||||
Income taxes payable | — | 452 | — | (452 | ) | — | |||||||||||||||
Unearned revenues | — | 3,356 | 1,909 | — | 5,265 | ||||||||||||||||
Deferred pension obligation | — | 8,911 | 74 | — | 8,985 | ||||||||||||||||
Deferred income taxes | — | 797 | — | — | 797 | ||||||||||||||||
Intercompany payable, net | — | 155,841 | 23,191 | (179,032 | ) | — | |||||||||||||||
Total current liabilities | 1,037 | 256,969 | 35,764 | (179,484 | ) | 114,286 | |||||||||||||||
Senior subordinated notes payable, net | 150,000 | — | — | — | 150,000 | ||||||||||||||||
Senior credit facility | — | 9,670 | — | — | 9,670 | ||||||||||||||||
Real estate mortgages | — | 21,882 | — | — | 21,882 | ||||||||||||||||
Unearned revenues and other long-term liabilities | — | 13,633 | 1,074 | — | 14,707 | ||||||||||||||||
Deferred income taxes | — | 37,182 | 3 | 1,696 | 38,881 | ||||||||||||||||
Total long-term liabilities | 150,000 | 82,367 | 1,077 | 1,696 | 235,140 | ||||||||||||||||
Total liabilities | 151,037 | 339,336 | 36,841 | (177,788 | ) | 349,426 | |||||||||||||||
Total equity | 313,389 | 193,959 | 85,719 | (279,678 | ) | 313,389 | |||||||||||||||
TOTAL | $ | 464,426 | $ | 533,295 | $ | 122,560 | $ | (457,466 | ) | $ | 662,815 | ||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF JANUARY 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 30,055 | $ | 13,492 | $ | — | $ | 43,547 | |||||||||||
Accounts receivable, net | — | 114,325 | 23,107 | — | 137,432 | ||||||||||||||||
Intercompany receivable, net | 174,264 | — | — | (174,264 | ) | — | |||||||||||||||
Inventories | — | 156,107 | 27,627 | — | 183,734 | ||||||||||||||||
Investments, at fair value | — | — | 19,996 | — | 19,996 | ||||||||||||||||
Deferred income taxes | — | — | 725 | — | 725 | ||||||||||||||||
Prepaid income taxes | 5,275 | — | 314 | 795 | 6,384 | ||||||||||||||||
Prepaid expenses and other current assets | — | 6,159 | 965 | — | 7,124 | ||||||||||||||||
Total current assets | 179,539 | 306,646 | 86,226 | (173,469 | ) | 398,942 | |||||||||||||||
Property and equipment, net | — | 60,216 | 4,417 | — | 64,633 | ||||||||||||||||
Other intangible assets, net | — | 176,563 | 33,638 | — | 210,201 | ||||||||||||||||
Goodwill | — | 6,022 | — | — | 6,022 | ||||||||||||||||
Investment in subsidiaries | 274,714 | — | — | (274,714 | ) | — | |||||||||||||||
Other assets | 1,809 | 1,926 | 1,456 | — | 5,191 | ||||||||||||||||
TOTAL | $ | 456,062 | $ | 551,373 | $ | 125,737 | $ | (448,183 | ) | $ | 684,989 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Accounts payable | $ | — | $ | 105,046 | $ | 12,743 | $ | — | $ | 117,789 | |||||||||||
Accrued expenses and other liabilities | — | 17,945 | 4,410 | — | 22,355 | ||||||||||||||||
Accrued interest payable | 4,045 | — | — | — | 4,045 | ||||||||||||||||
Income taxes payable | — | 901 | — | (901 | ) | — | |||||||||||||||
Unearned revenues | — | 3,023 | 1,833 | — | 4,856 | ||||||||||||||||
Deferred pension obligation | — | 8,878 | 52 | — | 8,930 | ||||||||||||||||
Deferred income taxes | — | 797 | — | — | 797 | ||||||||||||||||
Intercompany payable, net | — | 156,438 | 23,211 | (179,649 | ) | — | |||||||||||||||
Total current liabilities | 4,045 | 293,028 | 42,249 | (180,550 | ) | 158,772 | |||||||||||||||
Senior subordinated notes payable, net | 150,000 | — | — | — | 150,000 | ||||||||||||||||
Real estate mortgages | — | 22,109 | — | — | 22,109 | ||||||||||||||||
Unearned revenues and other long-term liabilities | — | 13,620 | 1,389 | — | 15,009 | ||||||||||||||||
Deferred income taxes | — | 35,383 | 3 | 1,696 | 37,082 | ||||||||||||||||
Total long-term liabilities | 150,000 | 71,112 | 1,392 | 1,696 | 224,200 | ||||||||||||||||
Total liabilities | 154,045 | 364,140 | 43,641 | (178,854 | ) | 382,972 | |||||||||||||||
Total equity | 302,017 | 187,233 | 82,096 | (269,329 | ) | 302,017 | |||||||||||||||
TOTAL | $ | 456,062 | $ | 551,373 | $ | 125,737 | $ | (448,183 | ) | $ | 684,989 | ||||||||||
Condensed Consolidating Statement of Comprehensive Income | PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 2, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantors | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Net sales | $ | — | $ | 232,279 | $ | 25,978 | $ | — | $ | 258,257 | |||||||||||
Royalty income | — | 4,912 | 3,245 | — | 8,157 | ||||||||||||||||
Total revenues | — | 237,191 | 29,223 | — | 266,414 | ||||||||||||||||
Cost of sales | — | 160,251 | 16,063 | — | 176,314 | ||||||||||||||||
Gross profit | — | 76,940 | 13,160 | — | 90,100 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Selling, general and administrative expenses | — | 59,845 | 9,763 | — | 69,608 | ||||||||||||||||
Depreciation and amortization | — | 3,024 | 298 | — | 3,322 | ||||||||||||||||
Total operating expenses | — | 62,869 | 10,061 | — | 72,930 | ||||||||||||||||
Loss on sale of long-lived assets | — | (697 | ) | — | — | (697 | ) | ||||||||||||||
Operating income | — | 13,374 | 3,099 | — | 16,473 | ||||||||||||||||
Interest expense | — | 3,567 | 60 | — | 3,627 | ||||||||||||||||
Net income before income taxes | — | 9,807 | 3,039 | — | 12,846 | ||||||||||||||||
Income tax provision | — | 3,081 | 354 | — | 3,435 | ||||||||||||||||
Equity in earnings of subsidiaries, net | 9,411 | — | — | (9,411 | ) | — | |||||||||||||||
Net income | 9,411 | 6,726 | 2,685 | (9,411 | ) | 9,411 | |||||||||||||||
Other comprehensive income | 1,066 | 135 | 931 | (1,066 | ) | 1,066 | |||||||||||||||
Comprehensive income | $ | 10,477 | $ | 6,861 | $ | 3,616 | $ | (10,477 | ) | $ | 10,477 | ||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 3, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantors | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Net sales | $ | — | $ | 225,331 | $ | 24,585 | $ | — | $ | 249,916 | |||||||||||
Royalty income | — | 4,520 | 2,878 | — | 7,398 | ||||||||||||||||
Total revenues | — | 229,851 | 27,463 | — | 257,314 | ||||||||||||||||
Cost of sales | — | 154,245 | 15,404 | — | 169,649 | ||||||||||||||||
Gross profit | — | 75,606 | 12,059 | — | 87,665 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Selling, general and administrative expenses | — | 60,554 | 9,156 | — | 69,710 | ||||||||||||||||
Depreciation and amortization | — | 2,769 | 211 | — | 2,980 | ||||||||||||||||
Total operating expenses | — | 63,323 | 9,367 | — | 72,690 | ||||||||||||||||
Gain on sale of long-lived assets | — | — | — | — | — | ||||||||||||||||
Operating income | — | 12,283 | 2,692 | — | 14,975 | ||||||||||||||||
Interest expense | — | 3,685 | 31 | — | 3,716 | ||||||||||||||||
Net income before income taxes | — | 8,598 | 2,661 | — | 11,259 | ||||||||||||||||
Income tax provision | — | 2,220 | 1,264 | — | 3,484 | ||||||||||||||||
Equity in earnings of subsidiaries, net | 7,775 | — | — | (7,775 | ) | — | |||||||||||||||
Net income | 7,775 | 6,378 | 1,397 | (7,775 | ) | 7,775 | |||||||||||||||
Other comprehensive (loss) income | 754 | 80 | 674 | (754 | ) | 754 | |||||||||||||||
Comprehensive income | $ | 8,529 | $ | 6,458 | $ | 2,071 | $ | (8,529 | ) | $ | 8,529 | ||||||||||
Condensed Consolidating Statement of Cash Flows | PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 2, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantors | |||||||||||||||||||||
NET CASH USED IN BY OPERATING ACTIVITIES: | $ | (1,639 | ) | $ | (34,209 | ) | $ | (3,820 | ) | $ | — | $ | (39,668 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Purchase of property and equipment | — | (2,969 | ) | (350 | ) | — | (3,319 | ) | |||||||||||||
Purchase of investments | — | — | (2,640 | ) | — | (2,640 | ) | ||||||||||||||
Proceeds from investments maturities | — | — | 8,580 | — | 8,580 | ||||||||||||||||
Proceeds on sale of intangible assets | — | 2,500 | — | — | 2,500 | ||||||||||||||||
Intercompany transactions | 721 | — | — | (721 | ) | — | |||||||||||||||
Net cash provided by (used in) investing activities | 721 | (469 | ) | 5,590 | (721 | ) | 5,121 | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Borrowings from senior credit facility | — | 90,036 | — | — | 90,036 | ||||||||||||||||
Payments on senior credit facility | — | (80,366 | ) | — | — | (80,366 | ) | ||||||||||||||
Payments on real estate mortgages | — | (206 | ) | — | — | (206 | ) | ||||||||||||||
Payments on capital leases | — | (77 | ) | — | — | (77 | ) | ||||||||||||||
Deferred financing fees | — | (569 | ) | — | — | (569 | ) | ||||||||||||||
Proceeds from exercise of stock options | 114 | — | — | — | 114 | ||||||||||||||||
Tax benefit from exercise of equity instruments | 396 | — | — | — | 396 | ||||||||||||||||
Intercompany transactions | — | (1,002 | ) | (127 | ) | 1,129 | — | ||||||||||||||
Net cash provided by (used in) financing activities | 510 | 7,816 | (127 | ) | 1,129 | 9,328 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 408 | — | 408 | (408 | ) | 408 | |||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | — | (26,862 | ) | 2,051 | — | (24,811 | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | — | 30,055 | 13,492 | — | 43,547 | ||||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 3,193 | $ | 15,543 | $ | — | $ | 18,736 | |||||||||||
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 3, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Parent Only | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||
Guarantors | |||||||||||||||||||||
NET CASH (USED IN) OPERATING ACTIVITIES: | $ | (4,408 | ) | $ | (45,242 | ) | $ | (656 | ) | $ | 2,999 | $ | (47,307 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Purchase of property and equipment | — | (2,816 | ) | (234 | ) | — | (3,050 | ) | |||||||||||||
Purchase of investments | — | — | (15,387 | ) | — | (15,387 | ) | ||||||||||||||
Proceeds from investments maturities | — | — | 9,490 | — | 9,490 | ||||||||||||||||
Intercompany transactions | 4,664 | — | — | (4,664 | ) | — | |||||||||||||||
Net cash provided by (used in) investing activities | 4,664 | (2,816 | ) | (6,131 | ) | (4,664 | ) | (8,947 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Borrowings from senior credit facility | — | 110,991 | — | — | 110,991 | ||||||||||||||||
Payments on senior credit facility | — | (54,586 | ) | — | — | (54,586 | ) | ||||||||||||||
Payments on real estate mortgages | — | (200 | ) | — | — | (200 | ) | ||||||||||||||
Payments on capital leases | — | (75 | ) | — | — | (75 | ) | ||||||||||||||
Tax benefit from exercise of equity instruments | (95 | ) | — | — | — | (95 | ) | ||||||||||||||
Intercompany transactions | — | (4,946 | ) | 443 | 4,503 | — | |||||||||||||||
Net cash (used in) provided by financing activities | (95 | ) | 51,184 | 443 | 4,503 | 56,035 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (161 | ) | — | (161 | ) | 161 | (161 | ) | |||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 3,126 | (6,505 | ) | 2,999 | (380 | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | — | — | 29,988 | (2,999 | ) | 26,989 | |||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 3,126 | $ | 23,483 | $ | — | $ | 26,609 | |||||||||||
Components_of_Accounts_Receiva
Components of Accounts Receivable (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $205,539 | $158,211 |
Less: allowances | -24,547 | -20,779 |
Total | 180,992 | 137,432 |
Trade Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 200,002 | 150,515 |
Royalties Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 4,579 | 6,662 |
Other Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $958 | $1,034 |
Inventories_Detail
Inventories (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Finished goods | $153,198 | $183,468 |
Raw materials and in process | 297 | 266 |
Total | $153,495 | $183,734 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (Certificates of Deposit, USD $) | 2-May-15 |
In Millions, unless otherwise specified | |
Certificates of Deposit | |
Schedule of Available-for-sale Securities [Line Items] | |
Available for sale securities maturing within one year or less | $6.20 |
Available for sale securities maturing over one year and less than two years | $0.60 |
Investments_Detail
Investments (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Cost | $14,009 | $19,989 |
Gross Unrealized Gains | 2 | 10 |
Gross Unrealized Losses | -2 | -3 |
Estimated Fair Value | 14,009 | 19,996 |
Marketable securities | ||
Schedule of Investments [Line Items] | ||
Cost | 7,207 | 12,247 |
Gross Unrealized Gains | 1 | 9 |
Gross Unrealized Losses | -1 | |
Estimated Fair Value | 7,207 | 12,256 |
Certificates of Deposit | ||
Schedule of Investments [Line Items] | ||
Cost | 6,802 | 7,742 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | -1 | -3 |
Estimated Fair Value | $6,802 | $7,740 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total | $159,415 | $156,808 |
Less: accumulated depreciation and amortization | -94,692 | -92,175 |
Total | 64,723 | 64,633 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 80,890 | 79,225 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 19,880 | 19,719 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | 560 | 569 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 48,597 | 47,807 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | $9,488 | $9,488 |
Summary_of_Property_and_Equipm
Summary of Property and Equipment Includes Assets Held under Capital Leases (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, fixtures and equipment | $888 | $888 |
Less: accumulated depreciation and amortization | -865 | -791 |
Total | $23 | $97 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense related to property and equipment | $3.30 | $2.90 |
Other_Intangible_Assets_Additi
Other Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | ||
2-May-15 | 3-May-14 | Jan. 31, 2015 | |
Intangible Assets [Line Items] | |||
Asset sales agreement date | 19-Mar-15 | ||
Proceeds on sale of intangible assets | $2,500,000 | ||
Loss on sale of long-lived assets | -697,000 | ||
Intangible assets amortized estimated useful lives | 10 years | ||
Estimated amortization expense 2015 | 900,000 | ||
Estimated amortization expense 2016 | 900,000 | ||
Estimated amortization expense 2017 | 900,000 | ||
Estimated amortization expense 2018 | 800,000 | ||
Estimated amortization expense 2019 | 800,000 | ||
Estimated amortization expense 2020 | 700,000 | ||
Estimated amortization expense 2021 | 500,000 | ||
Customer Lists | |||
Intangible Assets [Line Items] | |||
Amortization expense | 200,000 | 200,000 | |
Licensing | |||
Intangible Assets [Line Items] | |||
Loss on sale of long-lived assets | -700,000 | ||
Trademarks | |||
Intangible Assets [Line Items] | |||
Trademarks included in other intangible assets, net | $202,300,000 | $205,500,000 |
Intangible_Assets_Detail
Intangible Assets (Detail) (Customer Lists, USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer lists | $8,450 | $8,450 |
Less: accumulated amortization | -4,006 | -3,782 |
Total | $4,444 | $4,668 |
Letter_of_Credit_Facilities_De
Letter of Credit Facilities (Detail) (Letter of Credit, USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Total letter of credit facilities | $30,305 | $45,301 |
Outstanding letters of credit | -11,595 | -11,595 |
Total credit available | $18,710 | $33,706 |
Letter_of_Credit_Facilities_Ad
Letter of Credit Facilities - Additional Information (Detail) (Letter of Credit, USD $) | 2-May-15 |
In Millions, unless otherwise specified | |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Line Of Credit, amount expired and not renewed | $15 |
Advertising_and_Related_Costs_
Advertising and Related Costs - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 |
Advertising Costs [Line Items] | ||
Advertising and related costs | $3.80 | $4.70 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted (Loss) Income Per Share (Detail) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | 2-May-15 | 3-May-14 | ||
Numerator: | ||||
Net income | $9,411 | $7,775 | ||
Denominator: | ||||
Basic-weighted average shares | 14,649 | 14,782 | ||
Dilutive effect: equity awards | 512 | 228 | ||
Diluted-weighted average shares | 15,161 | 15,010 | ||
Basic income per share | $0.64 | $0.53 | ||
Diluted income per share | $0.62 | $0.52 | ||
Antidilutive effect | 479 | [1] | 1,360 | [1] |
[1] | Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods. |
Equity_Detail
Equity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Equity [Line Items] | ||
Beginning Balance | $302,017 | $347,533 |
Comprehensive income | 10,477 | 8,529 |
Share transactions under employee equity compensation plans | 895 | 1,141 |
Ending Balance | $313,389 | $357,203 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | 2-May-15 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | ($12,852) |
Other comprehensive income before reclassifications | 931 |
Amounts reclassified from accumulated other comprehensive income | 135 |
Ending Balance | -11,786 |
Unrealized (Loss) Gain on Pension Liability | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | -8,085 |
Amounts reclassified from accumulated other comprehensive income | 135 |
Ending Balance | -7,950 |
Foreign Currency Translation Adjustments, Net | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | -4,774 |
Other comprehensive income before reclassifications | 938 |
Ending Balance | -3,836 |
Unrealized (Loss) Gain on Investments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 7 |
Other comprehensive income before reclassifications | -7 |
Ending Balance | $0 |
Summary_of_Impact_on_Condensed
Summary of Impact on Condensed Consolidated Statements of Operations Line Items (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Selling, general and administrative expenses | $69,608 | $69,710 |
Income tax (benefit) provision | -3,435 | -3,484 |
Total, net of tax | -135 | |
Unrealized (Loss) Gain on Pension Liability | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total, net of tax | -135 | |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized (Loss) Gain on Pension Liability | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Selling, general and administrative expenses | 135 | 130 |
Income tax (benefit) provision | 50 | |
Total, net of tax | $135 | $80 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
2-May-15 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Line Items] | |||
Unrecognized tax benefits | $1,000,000 | ||
Unrecognized tax benefits, interest and penalties | 200,000 | ||
Unrecognized tax benefits, increase (decrease) | 118,000 | ||
Increase (decrease) in interest and penalties | 20,000 | ||
Valuation allowance | $42,400,000 | ||
Internal Revenue Service (IRS) | Earliest Tax Year | |||
Income Tax Disclosure [Line Items] | |||
Open tax years | 2011 | ||
Internal Revenue Service (IRS) | Latest Tax Year | |||
Income Tax Disclosure [Line Items] | |||
Open tax years | 2015 |
Stock_Options_Stock_Appreciati1
Stock Options, Stock Appreciation Rights and Restricted Shares - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Apr. 30, 2015 | 2-May-15 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock vested | 91,083 | |
Number of restricted stock tax withheld | 27,325 | |
Number of restricted stock tax withholding value | $0.70 | |
Performance Based Restricted Stock Awards | Second Amended And Restated Long Term Incentive Compensation Plan, 2005 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares awarded | 73,489 | |
Fair value of stock granted | $1.80 | |
Vesting period of awards | 3 years |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
2-May-15 | |
Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Revenues_Generated_by_Segments
Revenues Generated by Segments (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 | ||
Segment Reporting Information [Line Items] | ||||
Total revenues | $266,414 | $257,314 | ||
Total depreciation and amortization | 3,322 | 2,980 | ||
Total operating income | 16,473 | 14,975 | ||
Total interest expense | 3,627 | 3,716 | ||
Total net income before income taxes | 12,846 | 11,259 | ||
Men's Sportswear and Swim | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 198,453 | 194,999 | ||
Total depreciation and amortization | 1,875 | 1,634 | ||
Total operating income | 11,330 | 11,033 | ||
Women's Sportswear | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 38,823 | 34,487 | ||
Total depreciation and amortization | 500 | 461 | ||
Total operating income | 1,382 | 397 | ||
Direct-to-Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 20,981 | 20,430 | ||
Total depreciation and amortization | 904 | 846 | ||
Total operating income | -1,866 | -1,852 | ||
Licensing | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 8,157 | 7,398 | ||
Total depreciation and amortization | 43 | 39 | ||
Total operating income | $5,627 | [1] | $5,397 | [1] |
[1] | Operating income for the licensing segment for the three months ended May 2, 2015 includes a loss on sale of long-lived assets in the amount of ($0.7) million. See footnote 7 to the consolidated financial statements for further information. |
Revenues_Generated_by_Segments1
Revenues Generated by Segments (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | 2-May-15 |
Segment Reporting Information [Line Items] | |
Loss on sale of long-lived assets | ($697) |
Licensing | |
Segment Reporting Information [Line Items] | |
Loss on sale of long-lived assets | ($700) |
Components_of_Net_Benefit_Cost
Components of Net Benefit Cost (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $63 | $63 |
Interest cost | 337 | 433 |
Expected return on plan assets | -658 | -508 |
Amortization of net gain | 135 | 130 |
Net periodic benefit cost (income) | ($123) | $118 |
Senior_Credit_Facility_Additio
Senior Credit Facility - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | |
Apr. 22, 2015 | 2-May-15 | Jan. 31, 2015 | |
Level 1 | Senior Subordinated Notes | |||
Line of Credit Facility [Line Items] | |||
Interest rate, senior subordinated notes | 7.88% | 7.88% | |
Senior Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit facility maximum borrowing capacity | $200,000,000 | ||
Credit facility expiry date | 30-Apr-20 | ||
Credit facility outstanding borrowings | 9,700,000 | 0 | |
Amendment and restatement fees | 600,000 | ||
Credit facility borrowing base calculation, percentage of eligible receivables | 87.50% | ||
Credit facility borrowing base calculation, percentage of eligible accounts | 87.50% | ||
Credit facility borrowing base calculation, percentage of eligible inventory loan limit | 80.00% | ||
Credit facility borrowing base calculation, percentage of eligible finished goods inventory | 90.00% | ||
Senior Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Credit facility borrowing base calculation, amount of eligible accounts | 1,500,000 | ||
Credit facility borrowing base calculation, amount of eligible finished goods inventory | 125,000,000 | ||
Credit facility borrowing base calculation, percentage of eligible accounts | 70.00% | ||
Senior Credit Facility | Maximum | Prime Rate Loans | |||
Line of Credit Facility [Line Items] | |||
spread above selected rate | 1.00% | ||
Senior Credit Facility | Maximum | Euro Dollar Rate | |||
Line of Credit Facility [Line Items] | |||
spread above selected rate | 2.00% | ||
Senior Credit Facility | Minimum | Prime Rate Loans | |||
Line of Credit Facility [Line Items] | |||
spread above selected rate | 0.50% | ||
Senior Credit Facility | Minimum | Euro Dollar Rate | |||
Line of Credit Facility [Line Items] | |||
spread above selected rate | 1.50% |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts of the senior secured notes | $150,000,000 | $150,000,000 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts of the real estate mortgages | 23,000,000 | 23,000,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts of the senior secured notes | 150,000,000 | 150,000,000 |
Level 1 | Senior Subordinated Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of the 77/8% senior subordinated notes payable | $156,000,000 | $157,000,000 |
Interest rate, senior subordinated notes | 7.88% | 7.88% |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Detail) (USD $) | 2-May-15 | Jan. 31, 2015 | 3-May-14 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ||||
Cash and cash equivalents | $18,736 | $43,547 | $26,609 | $26,989 |
Accounts receivable, net | 180,992 | 137,432 | ||
Inventories | 153,495 | 183,734 | ||
Investments, at fair value | 14,009 | 19,996 | ||
Deferred income taxes | 741 | 725 | ||
Prepaid income taxes | 5,451 | 6,384 | ||
Prepaid expenses and other current assets | 6,359 | 7,124 | ||
Total current assets | 379,783 | 398,942 | ||
Property and equipment, net | 64,723 | 64,633 | ||
Other intangible assets, net | 206,781 | 210,201 | ||
Goodwill | 6,022 | 6,022 | ||
Other assets | 5,506 | 5,191 | ||
TOTAL | 662,815 | 684,989 | ||
Current Liabilities: | ||||
Accounts payable | 70,830 | 117,789 | ||
Accrued expenses and other liabilities | 27,372 | 22,355 | ||
Accrued interest payable | 1,037 | 4,045 | ||
Unearned revenues | 5,265 | 4,856 | ||
Deferred pension obligation | 8,985 | 8,930 | ||
Deferred income taxes | 797 | 797 | ||
Total current liabilities | 114,286 | 158,772 | ||
Senior subordinated notes payable, net | 150,000 | 150,000 | ||
Senior credit facility | 9,670 | |||
Real estate mortgages | 21,882 | 22,109 | ||
Unearned revenues and other long-term liabilities | 14,707 | 15,009 | ||
Deferred income taxes | 38,881 | 37,082 | ||
Total long-term liabilities | 235,140 | 224,200 | ||
Total liabilities | 349,426 | 382,972 | ||
Total equity | 313,389 | 302,017 | 357,203 | 347,533 |
TOTAL | 662,815 | 684,989 | ||
Parent | ||||
Current Assets: | ||||
Intercompany receivable, net | 174,586 | 174,264 | ||
Prepaid income taxes | 4,018 | 5,275 | ||
Total current assets | 178,604 | 179,539 | ||
Investment in subsidiaries | 284,125 | 274,714 | ||
Other assets | 1,697 | 1,809 | ||
TOTAL | 464,426 | 456,062 | ||
Current Liabilities: | ||||
Accrued interest payable | 1,037 | 4,045 | ||
Total current liabilities | 1,037 | 4,045 | ||
Senior subordinated notes payable, net | 150,000 | 150,000 | ||
Total long-term liabilities | 150,000 | 150,000 | ||
Total liabilities | 151,037 | 154,045 | ||
Total equity | 313,389 | 302,017 | ||
TOTAL | 464,426 | 456,062 | ||
Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 3,193 | 30,055 | 3,126 | |
Accounts receivable, net | 153,189 | 114,325 | ||
Inventories | 129,691 | 156,107 | ||
Prepaid expenses and other current assets | 5,345 | 6,159 | ||
Total current assets | 291,418 | 306,646 | ||
Property and equipment, net | 60,288 | 60,216 | ||
Other intangible assets, net | 173,143 | 176,563 | ||
Goodwill | 6,022 | 6,022 | ||
Other assets | 2,424 | 1,926 | ||
TOTAL | 533,295 | 551,373 | ||
Current Liabilities: | ||||
Accounts payable | 64,493 | 105,046 | ||
Accrued expenses and other liabilities | 23,119 | 17,945 | ||
Income taxes payable | 452 | 901 | ||
Unearned revenues | 3,356 | 3,023 | ||
Deferred pension obligation | 8,911 | 8,878 | ||
Deferred income taxes | 797 | 797 | ||
Intercompany payable, net | 155,841 | 156,438 | ||
Total current liabilities | 256,969 | 293,028 | ||
Senior credit facility | 9,670 | |||
Real estate mortgages | 21,882 | 22,109 | ||
Unearned revenues and other long-term liabilities | 13,633 | 13,620 | ||
Deferred income taxes | 37,182 | 35,383 | ||
Total long-term liabilities | 82,367 | 71,112 | ||
Total liabilities | 339,336 | 364,140 | ||
Total equity | 193,959 | 187,233 | ||
TOTAL | 533,295 | 551,373 | ||
Non-Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 15,543 | 13,492 | 23,483 | 29,988 |
Accounts receivable, net | 27,803 | 23,107 | ||
Inventories | 23,804 | 27,627 | ||
Investments, at fair value | 14,009 | 19,996 | ||
Deferred income taxes | 741 | 725 | ||
Prepaid income taxes | 188 | 314 | ||
Prepaid expenses and other current assets | 1,014 | 965 | ||
Total current assets | 83,102 | 86,226 | ||
Property and equipment, net | 4,435 | 4,417 | ||
Other intangible assets, net | 33,638 | 33,638 | ||
Other assets | 1,385 | 1,456 | ||
TOTAL | 122,560 | 125,737 | ||
Current Liabilities: | ||||
Accounts payable | 6,337 | 12,743 | ||
Accrued expenses and other liabilities | 4,253 | 4,410 | ||
Unearned revenues | 1,909 | 1,833 | ||
Deferred pension obligation | 74 | 52 | ||
Intercompany payable, net | 23,191 | 23,211 | ||
Total current liabilities | 35,764 | 42,249 | ||
Unearned revenues and other long-term liabilities | 1,074 | 1,389 | ||
Deferred income taxes | 3 | 3 | ||
Total long-term liabilities | 1,077 | 1,392 | ||
Total liabilities | 36,841 | 43,641 | ||
Total equity | 85,719 | 82,096 | ||
TOTAL | 122,560 | 125,737 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and cash equivalents | -2,999 | |||
Intercompany receivable, net | -174,586 | -174,264 | ||
Prepaid income taxes | 1,245 | 795 | ||
Total current assets | -173,341 | -173,469 | ||
Investment in subsidiaries | -284,125 | -274,714 | ||
TOTAL | -457,466 | -448,183 | ||
Current Liabilities: | ||||
Income taxes payable | -452 | -901 | ||
Intercompany payable, net | -179,032 | -179,649 | ||
Total current liabilities | -179,484 | -180,550 | ||
Deferred income taxes | 1,696 | 1,696 | ||
Total long-term liabilities | 1,696 | 1,696 | ||
Total liabilities | -177,788 | -178,854 | ||
Total equity | -279,678 | -269,329 | ||
TOTAL | ($457,466) | ($448,183) |
Condensed_Consolidating_Statem
Condensed Consolidating Statement of Comprehensive (Loss) Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Revenues: | ||
Net sales | $258,257 | $249,916 |
Royalty income | 8,157 | 7,398 |
Total revenues | 266,414 | 257,314 |
Cost of sales | 176,314 | 169,649 |
Gross profit | 90,100 | 87,665 |
Operating expenses: | ||
Selling, general and administrative expenses | 69,608 | 69,710 |
Depreciation and amortization | 3,322 | 2,980 |
Total operating expenses | 72,930 | 72,690 |
Gain (loss) on sale of long-lived assets | -697 | |
Operating income | 16,473 | 14,975 |
Interest expense | 3,627 | 3,716 |
Net (loss) income before income taxes | 12,846 | 11,259 |
Income tax (benefit) provision | 3,435 | 3,484 |
Net income | 9,411 | 7,775 |
Other comprehensive (loss) income | 1,066 | 754 |
Comprehensive income | 10,477 | 8,529 |
Parent | ||
Operating expenses: | ||
Equity in earnings of subsidiaries, net | 9,411 | 7,775 |
Net income | 9,411 | 7,775 |
Other comprehensive (loss) income | 1,066 | 754 |
Comprehensive income | 10,477 | 8,529 |
Guarantors | ||
Revenues: | ||
Net sales | 232,279 | 225,331 |
Royalty income | 4,912 | 4,520 |
Total revenues | 237,191 | 229,851 |
Cost of sales | 160,251 | 154,245 |
Gross profit | 76,940 | 75,606 |
Operating expenses: | ||
Selling, general and administrative expenses | 59,845 | 60,554 |
Depreciation and amortization | 3,024 | 2,769 |
Total operating expenses | 62,869 | 63,323 |
Gain (loss) on sale of long-lived assets | -697 | |
Operating income | 13,374 | 12,283 |
Interest expense | 3,567 | 3,685 |
Net (loss) income before income taxes | 9,807 | 8,598 |
Income tax (benefit) provision | 3,081 | 2,220 |
Net income | 6,726 | 6,378 |
Other comprehensive (loss) income | 135 | 80 |
Comprehensive income | 6,861 | 6,458 |
Non-Guarantors | ||
Revenues: | ||
Net sales | 25,978 | 24,585 |
Royalty income | 3,245 | 2,878 |
Total revenues | 29,223 | 27,463 |
Cost of sales | 16,063 | 15,404 |
Gross profit | 13,160 | 12,059 |
Operating expenses: | ||
Selling, general and administrative expenses | 9,763 | 9,156 |
Depreciation and amortization | 298 | 211 |
Total operating expenses | 10,061 | 9,367 |
Operating income | 3,099 | 2,692 |
Interest expense | 60 | 31 |
Net (loss) income before income taxes | 3,039 | 2,661 |
Income tax (benefit) provision | 354 | 1,264 |
Net income | 2,685 | 1,397 |
Other comprehensive (loss) income | 931 | 674 |
Comprehensive income | 3,616 | 2,071 |
Eliminations | ||
Operating expenses: | ||
Equity in earnings of subsidiaries, net | -9,411 | -7,775 |
Net income | -9,411 | -7,775 |
Other comprehensive (loss) income | -1,066 | -754 |
Comprehensive income | ($10,477) | ($8,529) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH (USED IN) OPERATING ACTIVITIES: | ($39,668) | ($47,307) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | -3,319 | -3,050 |
Purchase of investments | -2,640 | -15,387 |
Proceeds from investments maturities | 8,580 | 9,490 |
Proceeds on sale of intangible assets | 2,500 | |
Net cash provided by (used in) investing activities | 5,121 | -8,947 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings from senior credit facility | 90,036 | 110,991 |
Payments on senior credit facility | -80,366 | -54,586 |
Payments on real estate mortgages | -206 | -200 |
Payments on capital leases | -77 | -75 |
Deferred financing fees | -569 | |
Proceeds from exercise of stock options | 114 | |
Tax benefit from exercise of equity instruments | 396 | -95 |
Net cash (used in) provided by financing activities | 9,328 | 56,035 |
Effect of exchange rate changes on cash and cash equivalents | 408 | -161 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -24,811 | -380 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 43,547 | 26,989 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 18,736 | 26,609 |
Parent | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH (USED IN) OPERATING ACTIVITIES: | -1,639 | -4,408 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Intercompany transactions | 721 | 4,664 |
Net cash provided by (used in) investing activities | 721 | 4,664 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 114 | |
Tax benefit from exercise of equity instruments | 396 | -95 |
Net cash (used in) provided by financing activities | 510 | -95 |
Effect of exchange rate changes on cash and cash equivalents | 408 | -161 |
Guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH (USED IN) OPERATING ACTIVITIES: | -34,209 | -45,242 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | -2,969 | -2,816 |
Proceeds on sale of intangible assets | 2,500 | |
Net cash provided by (used in) investing activities | -469 | -2,816 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings from senior credit facility | 90,036 | 110,991 |
Payments on senior credit facility | -80,366 | -54,586 |
Payments on real estate mortgages | -206 | -200 |
Payments on capital leases | -77 | -75 |
Deferred financing fees | -569 | |
Intercompany transactions | -1,002 | |
Intercompany transactions | -4,946 | |
Net cash (used in) provided by financing activities | 7,816 | 51,184 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -26,862 | 3,126 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 30,055 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 3,193 | 3,126 |
Non-Guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH (USED IN) OPERATING ACTIVITIES: | -3,820 | -656 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | -350 | -234 |
Purchase of investments | -2,640 | -15,387 |
Proceeds from investments maturities | 8,580 | 9,490 |
Net cash provided by (used in) investing activities | 5,590 | -6,131 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transactions | -127 | |
Intercompany transactions | 443 | |
Net cash (used in) provided by financing activities | -127 | 443 |
Effect of exchange rate changes on cash and cash equivalents | 408 | -161 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 2,051 | -6,505 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 13,492 | 29,988 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 15,543 | 23,483 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
NET CASH (USED IN) OPERATING ACTIVITIES: | 2,999 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Intercompany transactions | -721 | -4,664 |
Net cash provided by (used in) investing activities | -721 | -4,664 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transactions | 1,129 | |
Intercompany transactions | 4,503 | |
Net cash (used in) provided by financing activities | 1,129 | 4,503 |
Effect of exchange rate changes on cash and cash equivalents | -408 | 161 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 2,999 | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ($2,999) |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (7 7/8% Percent Senior Notes Due 2019, Subsequent Event, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Apr. 06, 2015 |
7 7/8% Percent Senior Notes Due 2019 | Subsequent Event | |
Subsequent Event [Line Items] | |
Partial redemption of senior subordinated notes | $100 |
Senior subordinate notes, outstanding | 150 |
Redemption price for the senior subordinated notes | 103.94% |
Debt extinguishment costs | $5.10 |