$PERY Perry Ellis 2012 Corporate Investor Presentation Slides Deck PDF
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Ala Baster$PERY Perry Ellis 2012 Corporate Investor Presentation Slides Deck PDF
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Ala Baster2012 Annual Shareholder Meeting
Safe Harbor Statement
We caution readers that forward-looking statements (statements which are not historical facts) in this presentation
are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forwardlooking statements are based on current expectations rather than historical facts and they are indicated by words or
phrases such as anticipate, budget, could, indicates, guidance, may, might, potential, predict, should,
estimate, expect, project, believe, plan, possibly, probably, pro-forma, envision, continue, intend,
target, contemplate, seek, or will or the negative thereof or other variations thereon or similar words or
phrases or comparable terminology. We have based such forward-looking statements on our current expectations,
assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and
projections are reasonable, such forward-looking statements are only predictions and involve known and unknown
risks and uncertainties, and other factors that may cause actual results, performance or achievements to be
materially different from any future results, performance or achievements expressed or implied by such forwardlooking statements, many of which are beyond our control. These factors include: general economic conditions, a
significant decrease in business from or loss of any of our major customers or programs, anticipated and
unanticipated trends and conditions in our industry, including the impact of recent or future retail and wholesale
consolidation, recent and future economic conditions, including turmoil in the financial and credit markets, the
effectiveness of our planned advertising, marketing and promotional campaigns, our ability to contain costs,
disruptions in the supply chain, our future capital needs and our ability to obtain financing, our ability to integrate
acquired business, trademarks, trade names and licenses, our ability to predict consumer preferences and changes
in fashion trends and consumer acceptance of both new designs and newly introduced products, our ability to
protect our trademarks, changes in the costs of raw materials, labor and advertising, our ability to carry out growth
strategies, including expansion in international and direct-to-consumer retail markets, the level of consumer
spending for apparel and other merchandise, our ability to compete, the termination or non-renewal of any material
license agreements to which we are a party, exposure to foreign currency risk and interest rate risk, possible
disruption in commercial activities due to terrorist activity and armed conflict, and other factors set forth in Perry Ellis
Internationals filings with the Securities and Exchange Commission (SEC). Investors are cautioned that all
forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in Perry
Ellis' filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements,
which are valid only as of the date they were made. We undertake no obligation to update or revise any forwardlooking statements to reflect new information or the occurrence of unanticipated events or otherwise.
Fiscal 2012 In Perspective
Macro-Economic Backdrop:
With 8.2% unemployment and 1.9% GDP growth in Q1 of 2012, U.S. economic
fundamentals remain fragile.
Major concerns continue to loom surrounding federal spending, European debt
crisis, health care, upcoming presidential election & fluctuations in commodity
prices.
Consumer confidence in the month of May fell to 64.9 its lowest point in over 4
months. April 2012 confidence level reached 68.7.
However for our Company it was a year of:
Further strengthening of the capital structure
Capitalizing on niche competencies such as golf & ladies dresses.
Executing on operational enhancements positioning the Company for long-term
growth and profitability.
Restructuring the Perry Ellis & Rafaella brands.
YOUR COMPANY TODAY
Leading global apparel and accessories company
with rich heritage
Powerful brands with strong organic growth
opportunities
A diversification strategy that minimizes risk and
maximizes opportunities
Distribution domestically and internationally through
15,000+ doors, 64 owned retails stores, 38 licensed
stores, and 5 e-commerce sites
Proven track record of acquisitions
Solid cash flow generation
Leading Brand Portfolio Across Platforms
PLATFORM
FY 13 EST.
% OF FY 2013P
REVENUES
BRANDS
GOLF & MENS
SPORTSWEAR
$576
58%
WOMENS
WHOLESALE
$158
16%
SWIM
$88
9%
$87
9%
$62
6%
$24
2%
*$995
*Fiscal 2013 Revenue Guidance range is $990M - $1.0B
DIRECT-TOCONSUMER
INTERNATIONAL
LICENSING
REPRESENTS ~500M IN WHOLESALE SALES OWNED BRANDS
Distribution Channel Summary
PLATFORM
LUXURY
DEPARTMENT
& SPECIALTY
DEPARTMENT
STORES
CHAIN & MID-TIER
STORES
SPORTS
CHANNEL
DIRECT RETAIL &
E-COMMERCE
BRANDS
Growing Diversity of Products/Channel
Distribution Channels
Product Category
Fiscal 2012 Top Customers
KOHLS
MACYS
DILLARDS
SAMS
JCPENNEY
16%
10%
6%
6%
4%
Leading Global Sourcing Organization
OVERVIEW & GEOGRAPHICAL SOURCING
11 owned offices Hong Kong (2), Beijing,
Guangzhou, Shanghai, Hangzhou, Seoul,
Taipei, Ho Chi Minh, Dahka, Jakarta
300 employees throughout Asia
On the ground knowledge with established
relationships
Significant scale with manufacturers
Proactive approach to manage input inflation
Sales/Design/Distribution Center
Portland, OR
Milwaukee, WI
New York, NY
Secaucus, NJ
Los Angeles, CA,
Seneca, SC
Dallas, TX
Sales
Design
Distribution Center
Tampa, FL
Miami., FL
Established Foundation for Growth
Creative Front End Design, Merchandising, Sourcing and Sales
GOLF & MENS
SPORTSWEAR
WOMENS
DIRECT-TO
CONSUMER
SWIM
Marketing and Advertising Development and Purchasing
Operational Back-End Services
Corporate Strategy
Information Technology
Overseas Sourcing Offices
Finance and Accounting
Distribution and Warehousing
Legal
Customer Services
Social Compliance
Quality Assurance
Human Resources
INTERNATIONAL
& LICENSING
Brands: The Foundation of Our Strength
Sportswear
Swim
Golf Lifestyle
Hispanic Lifestyle
Contemporary
Focal Points & Growth Initiatives: Fiscal 2013 & Beyond
Re-gain momentum with Perry Ellis Collection brand in the department
store channel as well as build a platform for premium/bridge price point
distribution in both domestic and International markets.
Capitalize on the recent expansion of our Callaway license agreement into
the sporting goods, green grass, and specialty golf shop channels of
distribution.
Secure distribution for the Ben Hogan golf brand. Capitalize on owned
rights for licensing and hard goods (golf balls).
Restructure the Rafaella organization to make it more responsive to todays
consumers.
Focal Points & Growth Initiatives: Continued
Selectively increase our penetration throughout Europe.
Further expand our Perry Ellis & Original Penguin retail store footprint
Capitalize on our e-commerce brand websites along with complementing
site efforts of our retail partners.
Focal Points & Growth Initiatives: Continued
Expand womens sportswear offering.
Growth initiatives within Rafaella will evolve based on our new good, better, best
merchandising assortment strategy as well as further expanding the bottoms
assortment into a variety of stretch fabrications, technical performance features, and
alternative lengths and legs.
Entering into the better/luxury department store channel with Laundry by Shelli
Segal and Perry Ellis.
Execute on the initial phase of store-in-store openings under the Manhattan
brand through our Joint Venture in Greater China.
First shop-in-shop opening is targeted for December 2012.
China Outfitters will develop a full mens lifestyle product offering encompassing:
Shirts, Sweaters, Trousers, Jackets, Suits, Leatherwear, &Trench coats.
Financial Highlights
Financial Summary
$995
CAGR 10%
CAGR 16%
$980
$75
$75
FY 12
*FY 13 P
$65
$790
$48
$754
Total
Revenues
EBITDA as
Adjusted
FY 10
FY 11
FY 12
FY 13 P
FY 10
FY 11
$1.95 $2.00
CAGR 26%
Diluted Adjusted
Earnings Per Share
$1.85
$1.94
$1.01
Actual
FY 10
*EBITDA forecast based upon Thomson First Call estimate
FY 11
FY 12
FY 13 P
Projected
Three Month Income Statement Summary
3 Months
3 Months
ended 4/28/2012
(In Millions)
ended 4/30/2011
(In Millions)
$259.0
$282.8
$6.5
$5.5
Total Revenues
$265.5
$288.3
Gross Profit
$87.7
$97.0
Gross Profit %
33.0%
33.6%
Operating Expenses
$69.8
$66.6
EBITDA, as adjusted
$22.9
$33.6
EBITDA %
8.6%
11.7%
Net Income, as adjusted
$10.7
$16.7
EPS, as adjusted
$0.71
$1.08
Revenues
Net Sales
Royalty Income
Capitalization & Credit Statistic
Capitalization
Actual as of April 28, 2012
Actual as of January 28, 2012
Cash & Equivalents
$28.5
$24.1
Senior Credit Facility
$23.1
$21.7
Senior Subordinated Notes
Payable, net
$150.0
$150.0
Real Estate Mortgages,
Less current portion
$26.1
$25.8
$173.4
Inventory
$170.3
$167.2
$198.3
Accounts Receivable
$175.2
$145.5
Total Current Assets
$400.7
$401.2
Total Shareholders Equity
$378.3
$366.5
Total Debt
Summary Credit Statistics
Total Net Debt to Capital
31%
32%
Total Debt / LTM EBITDA as Adjusted
2.7x
2.3x
LTM EBITDA as Adjusted / PF Interest Expense
4.5x
4.7x
