Perry Ellis Q3 FY'13 results in-line with expectations

Adjusted EBITDA for the first nine months of fiscal 2013 totaled $42.9 million or 6.0% of revenue.

Net income for the first nine months of fiscal 2013 was $10.4 million, or $0.68 per fully diluted share, compared to $23.7 million, or $1.47 per fully diluted share in the first nine months of fiscal 2012.

After considering the costs associated with the exit of underperforming brands and businesses, the voluntary retirement program, the streamlining and consolidating of operations and strategic initiatives, earnings per fully diluted share, as adjusted, for the first nine months of fiscal 2013 was $0.95 compared to earnings per fully diluted share, as adjusted, of $1.55 in the first nine months of fiscal 2012. For the nine months of fiscal 2012, earnings per fully diluted share, as adjusted, excludes costs related to the impact of early extinguishment of debt and duplicate interest expense.

Balance Sheet Update

George Feldenkreis, Chairman and CEO of Perry Ellis International commented, “We are extremely pleased with the continued strengthening of our balance sheet. Inventory reduction continues to tighten ahead of sales. We believe that we have the balance sheet to fund our growth in our core businesses as well as provide ample capacity and liquidity under a wide range of economic conditions.”

The Company ended the third quarter of fiscal 2013 with $51.7 million in cash and cash equivalents and full availability under its senior credit facility. Inventories at quarter end totaled $157.5 million, a reduction of $40.8 million or 21% compared to $200.3 million as of October 29, 2011. As a result of the disciplined management of inventory, the Company ended the period with a net debt to total capitalization of approximately 25% as compared to 32% for the comparable prior year period.

Fiscal 2013 Guidance

The Company remains comfortable with revenue guidance ranging from $990 million to $1 billion, as well as fully diluted earnings per share as adjusted in a range of $1.75 to $1.80.

Perry Ellis International, Inc. is a leading designer, distributor and licensor of a broad line of high quality men's and women's apparel, accessories and fragrances, as well as select children’s apparel.

Perry Ellis International