$PERY Perry Ellis 2012 Corporate Investor Presentation Slides Deck PPT PDF

7/29/2019 $PERY Perry Ellis 2012 Corporate Investor Presentation Slides Deck PPT PDF

1/18

2012 Annual Shareholder Meeting


2/18

We caution readers that forward-looking statements (statements which are not historical facts) in this presentationare made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking 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 orphrases 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 andprojections are reasonable, such forward-looking statements are only predictions and involve known and unknownrisks and uncertainties, and other factors that may cause actual results, performance or achievements to bematerially different from any future results, performance or achievements expressed or implied by such forward-

looking statements, many of which are beyond our control. These factors include: general economic conditions, asignificant decrease in business from or loss of any of our major customers or programs, anticipated andunanticipated trends and conditions in our industry, including the impact of recent or future retail and wholesaleconsolidation, recent and future economic conditions, including turmoil in the financial and credit markets, theeffectiveness 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 integrateacquired business, trademarks, trade names and licenses, our ability to predict consumer preferences and changesin 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 growthstrategies, including expansion in international and direct-to-consumer retail markets, the level of consumerspending for apparel and other merchandise, our ability to compete, the termination or non-renewal of any materiallicense agreements to which we are a party, exposure to foreign currency risk and interest rate risk, possibledisruption in commercial activities due to terrorist activity and armed conflict, and other factors set forth in Perry EllisInternationals filings with the Securities and Exchange Commission (SEC). Investors are cautioned that allforward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in PerryEllis' 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 forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise.

Safe Harbor Statement


3/18

Fiscal 2012 In Perspective

Macro-Economic Backdrop:

With 8.2% unemployment and 1.9% GDP growth in Q1 of 2012, U.S. economicfundamentals remain fragile.

Major concerns continue to loom surrounding federal spending, European debtcrisis, health care, upcoming presidential election & fluctuations in commodityprices.

Consumer confidence in the month of May fell to 64.9 its lowest point in over 4months. 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-termgrowth and profitability.

Restructuring the Perry Ellis & Rafaella brands.


4/18

YOUR COMPANY TODAY

Leading global apparel and accessories companywith rich heritage

Powerful brands with strong organic growthopportunities

A diversification strategy that minimizes risk andmaximizes opportunities

Distribution domestically and internationally through15,000+ doors, 64 owned retails stores, 38 licensedstores, and 5 e-commerce sites

Proven track record of acquisitions

Solid cash flow generation


5/18

Leading Brand Portfolio Across Platforms

*$995 *Fiscal 2013 Revenue Guidance range is $990M - $1.0B

DIRECT-TO-CONSUMER

LICENSING

GOLF & MENSSPORTSWEAR

INTERNATIONAL

SWIM

WOMENSWHOLESALE

PLATFORM% OF FY 2013PREVENUES

BRANDSFY 13 EST.

58%

16%

9%

9%

6%

2% REPRESENTS ~500M IN WHOLESALE SALES OWNED BRANDS

$576

$158

$88

$87

$62

$24


6/18

Distribution Channel Summary

PLATFORM BRANDS

LUXURYDEPARTMENT& SPECIALTY

DEPARTMENTSTORES

DIRECT RETAIL &E-COMMERCE

SPORTSCHANNEL

CHAIN & MID-TIERSTORES


7/18

Growing Diversity of Products/Channel

Distribut ion Channels Product Category

KOHLS 16%MACYS 10%DILLARDS 6%SAMS 6%JCPENNEY 4%

Fiscal 2012 Top Customers


8/18

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


9/18

Sales/Design/Distribution Center

Portland, OR

Sales

Design

Distribution Center

Milwaukee, WI

New York, NY

Secaucus, NJ

Seneca, SC

Tampa, FL Miami., FL

Dallas, TX

Los Angeles, CA,


10/18

Established Foundation for Growth

Corporate Strategy

Overseas Sourcing Offices

Distribution and Warehousing

Customer Services

Quality Assurance

Creative Front End Design, Merchandising, Sourcing and Sales

SWIMWOMENSGOLF & MENSSPORTSWEAR

DIRECT-TOCONSUMER

INTERNATIONAL& LICENSING

Marketing and Advertising Development and Purchasing

Operational Back-End Services

Information Technology

Finance and Accounting

Legal

Social Compliance

Human Resources


11/18

Brands: The Foundation of Our Strength

Sportswear

ContemporarySwim

Golf Lifestyle Hispanic Lifestyle


12/18

Focal Points & Growth Initiatives: Fiscal 2013 & Beyond

Re-gain momentum with Perry Ellis Collection brand in the departmentstore 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 ofdistribution.

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.


13/18

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.


14/18

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 Manhattanbrand 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.

Focal Points & Growth Initiatives: Continued


15/18

Financial Highlights


16/18

Financial Summary

TotalRevenues

EBITDA asAdjusted

$754

$790

$980

$48

$65$75

FY 10 FY 11 FY 12 FY 10 FY 11 FY 12

Diluted AdjustedEarnings Per Share

$1.01

$1.85$1.94

FY 10 FY 11 FY 12

$995

FY 13 P *FY 13 P

$75

$1.95 -$2.00

FY 13 P

Actual

Projected

*EBITDA forecast based upon Thomson First Call estimate

CAGR 10%

CAGR 26%

CAGR 16%


17/18

Three Month Income Statement Summary

3 Monthsended 4/28/2012

(In Millions)

3 Monthsended 4/30/2011

(In Millions)

Revenues

Net Sales $259.0 $282.8

Royalty Income $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


18/18

Capitalization & Credit Statist ic

Capitalization

Cash & Equivalents

Actual as of Apri l 28, 2012 Actual as of January 28, 2012

Total Debt $170.3 $173.4

$167.2

$24.1

Senior Credit Facility $23.1 $21.7

Senior Subordinated NotesPayable, net

$150.0

Real Estate Mortgages,Less current portion $26.1 $25.8

Summary Credit Statist ics

Total Debt / LTM EBITDA as Adjusted 2.3x

LTM EBITDA as Adjusted / PF Interest Expense 4.7x

Total Net Debt to Capital 32%31%

$150.0

Inventory

$28.5

$198.3

4.5x

2.7x

$400.7Total Current Assets $401.2

$145.5$175.2Accounts Receivable

Total Shareholders Equity $366.5$378.3

Documents

$PERY Perry Ellis 2012 Corporate Investor Presentation Slides Deck PPT PDF