Perry Ellis International, reported results for the fourth quarter and the fiscal year ended January 31, 2015. Q4 total revenue was $218 million.
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This is a 1% increase compared to $216 million reported in the fourth quarter of fiscal 2014. As previously disclosed, revenues were adversely impacted by disruption at the West Coast ports. While the labor dispute has been resolved, the company continues to anticipate an impact on shipments throughout the first quarter due to the backlog of containers at the port.
During the fourth quarter of fiscal 2015, overall gross margins held at 34.3%. Margin expansion was generated in our direct-to-consumer business, as well as in the Rafaella and Perry Ellis collections businesses.
On an adjusted basis, the fiscal 2015 fourth quarter earnings per diluted share were $0.07 as compared to adjusted earnings per diluted share of $0.06 in the fourth quarter of fiscal 2014. Adjusted earnings per diluted share exclude certain items as outlined in the attached Table 1 Reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share.
As reported under GAAP, the fiscal 2015 fourth quarter loss was $42.9 million or $2.90 per share compared to a loss of $28.2 million or $1.91 per share in the fourth quarter of fiscal 2014.
The company's fourth quarter 2015 results included a $42.7 million or $2.89 per diluted share non-cash reserve associated with its deferred tax assets. The financial results were impacted by the West Coast ports congestion and contributed to a valuation reserve being required for the company's domestic deferred tax assets.
The position does not impact the company's ability to use its deferred tax assets in the future. In addition the company experienced $1.0 million or $0.05 per share in negative foreign currency exchange, similar to many enterprises operating a global business.
Fiscal 2015 Results
Fiscal 2015 revenues were $890 million as compared to $912 million reported in the prior year.
Adjusted earnings per diluted share for fiscal 2015 were $0.56 compared to adjusted earnings per diluted share of $.38 in fiscal 2014. Adjusted earnings per diluted share exclude the costs outlined in the attached Table 1 for both fiscal periods.
On a GAAP basis, net loss for fiscal 2015 was $37.2 million, or $2.50 per diluted share compared to GAAP net loss of $22.8 million, or $1.52 per diluted share for fiscal 2014. Net loss for fiscal 2015 included $2.88 per diluted share in non-cash income tax valuation reserve as described previously.
The gross margin for fiscal 2015 was 34% compared to the gross margin of 33.2% in fiscal 2014. Gross margin was positively impacted by a reduction in promotional activity in the sportswear collection businesses, a more favorable revenue mix between branded and private label revenues, as well as a stronger contribution from the company's higher margin international and licensing units. These margin improvements were partially offset by liquidation of exited programs in golf and sportswear.
Selling, general and administrative expenses totaled $268.8 million for fiscal 2015 as compared to $272.7 million in fiscal 2014.
The decrease reflects cost reductions associated with the company's infrastructure review which were partially offset by investments in the company international growth strategy as well as $1.8mm of unfavorable foreign exchange.
Earnings before interest, taxes, depreciation, amortization and impairments, as adjusted (adjusted EBITDA) for fiscal 2015 totaled $39.8 million, or 4.5% of total revenue. This compares to adjusted EBITDA of $34.8 million for fiscal 2014.
The company's financial position continues to be very strong. Year-end cash and investments totaled $63.5 million with no borrowings under the credit facility. This compares to $42.4 million in the prior year and $8.2 million drawn under the credit facility.
The company has increased its credit facility to $200 million and plans to redeem $100 million of its senior subordinated notes. The annualized interest savings will approximate $6 million or $.25 per diluted share. ■