First half results for fiscal 2008 were in line with management's expectations, increasing revenues by 10.2% to $424.1 million from $385.0 million during first half of fiscal 2007 while improving gross profit margin by 62 basis points for the same period last year.
The Company also improved EBITDA margin by 106 basis points compared to first half of fiscal 2007. Net income increased to $9.8 million from reported net income of $3.5 million and pro forma net income of $5.4 million during the same period last year.
Last year's pro forma results exclude the impact of $3.0 million in debt extinguishment costs ($1.9 million net of taxes or $0.13 per fullydiluted share) incurred as a result of the March 2006 repayment of the Company's $57 million senior secured notes.
Pro forma results are presented solely as a supplemental disclosure because management believes it is useful to compare the Company's current results to the prior year results without the charge incurred during fiscal 2007. A table showing the reconciliation of actual to pro forma results is attached.
George Feldenkreis, Chairman and Chief Executive Officer, commented, "We feel confident about the second half of the year. Strong results across all our business platforms during the first half of fiscal 2008 have positioned our Company in the best financial shape in its history and confirmed our view of a record year for Perry Ellis International."
The Company increased its previously announced fiscal 2008 earnings guidance from the range of $1.81 to $1.84 per fully diluted share, to $1.87 to $1.91 per fully diluted share and confirmed its previously announced fiscal 2008 revenue guidance with total revenues expected to be in the range of approximately $900 to $910 million.
"We are pleased to increase our earnings guidance. We feel that for the second half of the year we will continue to do well according to plan," Mr. Feldenkreis concluded.
Perry Ellis International Inc
marketing@alchempro.com
