First Half Operations Review
For the six months ended July 30, 2011 ("first half of fiscal 2012") total revenues increased 31.6% to $502.7 million, compared to $382.1 million in the comparable prior year period. For the first half of fiscal 2012, Rafaella contributed $61.8 million in total revenue, while the Company's core organic businesses grew 15.4%. This increase is attributable to the continued success within the Company's golf, Perry Ellis Collection, Hispanic, and direct to consumer businesses.
EBITDA for the first half of fiscal 2012 increased 52% to $42.5 million, or 8.5% of total revenue, compared to $28.0 million, or 7.3% of total revenue, in the prior year. Rafaella delivered $9.4 million of EBITDA for the first half of fiscal 2012 and is contributing significantly to the Company's continued operating margin improvement. Continued growth and expansion of the Company's core businesses added an additional $5.0 million to EBITDA, a 176% improvement compared to the first half of fiscal 2011.
As reported under generally accepted accounting principles ("GAAP") net income attributable to Perry Ellis International, Inc. for the first half of fiscal 2012 increased 87% to $17.2 million, or $1.08 per fully diluted share, compared to $9.2 million or $0.66 per fully diluted share in the six months ended July 31, 2010 ("first half of fiscal 2011").
Net income attributable to Perry Ellis International, Inc, as adjusted, for the first half of fiscal 2012 grew by 91.3% to $18.6 million compared to $9.7 million last year. Net Income, as adjusted, excludes the impact of the cost on early extinguishment of the senior subordinated 2013 notes and duplicated interest from March 8, 2011 to April 6, 2011 associated with the interest during the time that the retired debt and the new senior subordinated 2019 notes were simultaneously outstanding.
Balance Sheet Update
The Company ended the second quarter of fiscal 2012 with $34.1 million in cash and cash equivalents and full availability under its senior credit facility. Accounts receivable totaled $110.2 million compared to $85.3 million at July 31, 2010. This increase includes the addition of the Rafaella sportswear business. Excluding Rafaella, receivables increased by 23% in line with the organic revenue increase for the quarter. The quality of the receivables continues to be strong and the Company is pleased with the financial strength of its current customer base.
Inventories were $211.5 million at quarter end including $21 million associated with the acquired Rafaella business. Excluding Rafaella, the inventory increase reflects the Company's planned increases of additional weeks of supply in its replenishment and program businesses totaling $22 million to support forward business, $14 million in inventory for new businesses and retail stores, early receipts totaling approximately $26 million for holiday and spring inventory, and for inventory required for fall shipping for third quarter sales. Inventory quality and aging remains current.
Fiscal 2012 Guidance
The Company forecasts revenue exceeding $1.0 billion for full fiscal year 2012. Total EBITDA for the year is expected to approach $90 million, thereby approaching a 9.0% EBITDA margin for fiscal 2012.
Based on the Company's first half of fiscal 2012 performance and current business trends, the Company now expects earnings per diluted share for full year fiscal 2012 in a range of $2.45 - $2.52 compared to previous guidance of $2.40 - $2.50.
Perry Ellis International
20240830145952.gif)
20240924091343.png)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
