Perry Ellis Q4 Loss Widens; But Adj. EPS Tops Estimate - Quick Facts

(RTTNews) - Perry Ellis International Inc. (PERY) reported that its net loss for the fourth quarter of fiscal 2015 widened to $42.9 million or $2.90 per share from $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 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.

On an adjusted basis, the fiscal 2015 fourth quarter earnings per share were $0.07 as compared to adjusted earnings per share of $0.06 in the fourth quarter of fiscal 2014. Analysts polled by Thomson Reuters expected the company to report earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the fourth quarter of fiscal 2015 was $217.69 million, an about1% increase compared to $216.08 million reported in the fourth quarter of fiscal 2014. Wall Street expected revenues of $ 217.74 million for the quarter. 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.

The Company reiterated its guidance for fiscal 2016. It expects total revenues to be in the range of $925 to $935 million. Gross margins for fiscal 2016 are expected to expand 50 to 60 basis points to a range of 34.5% to 34.6%. The Company expects adjusted EBITDA in the range of $55 to $58 million and EBITDA margin of 6.0% to 6.25%. These projections translate to a range of $1.25 to $1.35 in earnings per share and do not include the impact of the Company's redemption of $100 million in senior subordinated notes. Analysts expect annual earnings of $1.24 per share.