News Flash

Fiscal 2011 - outstanding year for Perry Ellis

19 Mar '11

5 min read

Balance Sheet Update

The Company remained in outstanding financial position at year end. With a strong focus on working capital management, the Company generated $21 million in cash from operations and free cash flow of $14 million for year. The Company reported $18.5 million in cash and cash equivalents at year end.

Inventory was $178.2 million at year end compared to $112.3 million in the prior year period. Of the $65.9 million increase, $22.7 million was related to inventory associated with the acquisition of Rafaella. In addition, inventory rose to support the planned growth of the business and included strategic purchases to secure pricing and capacity and was in-line with Company expectations.

Accounts receivable, decreased 7% to $129.5 million at year end compared to $139.9 million in fiscal 2010. Excluding $4.9 million related to the Rafaella acquisition, accounts receivable decreased 11% as compared to $139.9 million in fiscal 2010.

Fiscal 2012 Guidance

"We are extremely pleased with our two recent capital market transactions, which serve as an integral part of our overall growth strategy and strong financial condition," commented George Feldenkreis, Chairman and CEO of Perry Ellis International. "As we continue to see the momentum from fiscal 2011 within many of our businesses, we feel confident in our ability to offset a significant portion of the dilutive impact from these transactions and deliver earnings per share in the range of $2.30 - $2.40, for this fiscal year," continued Mr. Feldenkreis.

As previously announced on March 8, 2011, the Company completed a concurrent offering of two million shares of its common stock and $150.0 million of senior subordinated notes due 2019. As a result of these two transactions, the Company further strengthened its financial condition, and remains positioned to continue utilizing the strength of its capital structure to drive strong organic growth and also maximize new initiatives derived by the recent acquisition of Rafaella.

Both transactions will have a dilutive effect on the Company for the twelve months ending January 28, 2012 ("fiscal 2012"), and the Company now anticipates fully diluted EPS in the range of $2.30 to $2.40, which represents growth of 27% at the mid-point of the range from adjusted diluted EPS of $1.85 in fiscal 2011. This compares to the Company's pre-common stock and senior subordinated note offering EPS guidance of $2.50 to $2.65.

The Company reaffirmed guidance for revenues to reach $1 billion dollars for fiscal 2012.

Perry Ellis International Inc

More Perry Ellis International Inc News... More Apparel/Garments News - United States Of America...