Condensed Consolidating Financial Statements (Tables)

3 Months Ended

May 05, 2018

Condensed Consolidating Balance Sheet

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

AS OF MAY 5, 2018

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	5,303	$	45,168	$	—		$	50,471
Investment, at fair value		—		—		4,912		—			4,912
Accounts receivable, net		—		170,276		31,542		—			201,818
Intercompany receivable, net		96,861		—		—		(96,861	)		—
Inventories		—		125,734		25,231		—			150,965
Prepaid expenses and other current assets		—		8,610		1,200		—			9,810
Total current assets		96,861		309,923		108,053		(96,861	)		417,976
Property and equipment, net		—		52,430		2,995		—			55,425
Other intangible assets, net		—		153,685		32,332		—			186,017
Deferred income taxes		—		—		541		—			541
Investment in subsidiaries		345,242		—		—		(345,242	)		—
Other assets		—		1,347		222		—			1,569
TOTAL	$	442,103	$	517,385	$	144,143	$	(442,103	)	$	661,528
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	47,933	$	4,741	$	—		$	52,674
Accrued expenses and other liabilities		—		37,103		7,755		—			44,858
Accrued interest payable		350		—		—		—			350
Accrued income tax payable		720		624		461		—			1,805
Unearned revenues		—		3,732		919		—			4,651
Intercompany payable, net		—		79,579		23,528		(103,107	)		—
Total current liabilities		1,070		168,971		37,404		(103,107	)		104,338
Senior subordinated notes payable, net		49,855		—		—		—			49,855
Senior credit facility		—		62,404		—		—			62,404
Real estate mortgages		—		32,495		—		—			32,495
Income taxes payable		3,868		—		—		—			3,868
Unearned revenues and other long-term liabilities		—		13,758		231		—			13,989
Deferred income taxes		—		7,269		—		—			7,269
Total long-term liabilities		53,723		115,926		231		—			169,880
Total liabilities		54,793		284,897		37,635		(103,107	)		274,218
Total equity		387,310		232,488		106,508		(338,996	)		387,310
TOTAL	$	442,103	$	517,385	$	144,143	$	(442,103	)	$	661,528

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

AS OF FEBRUARY 3, 2018

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	830	$	34,392	$	—		$	35,222
Investment, at fair value		—		—		14,086		—			14,086
Accounts receivable, net		—		125,534		31,329		—			156,863
Intercompany receivable, net		97,692		—		—		(97,692	)		—
Inventories		—		145,797		29,662		—			175,459
Prepaid expenses and other current assets		—		7,116		1,035		—			8,151
Total current assets		97,692		279,277		110,504		(97,692	)		389,781
Property and equipment, net		—		53,614		2,550		—			56,164
Other intangible assets, net		—		153,884		32,332		—			186,216
Deferred income taxes		—		—		411		—			411
Investment in subsidiaries		335,883		—		—		(335,883	)		—
Other assets		—		1,391		199		—			1,590
TOTAL	$	433,575	$	488,166	$	145,996	$	(433,575	)	$	634,162
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	85,659	$	13,189	$	—		$	98,848
Accrued expenses and other liabilities		—		27,621		8,147		—			35,768
Accrued interest payable		1,334		—		—		—			1,334
Income taxes payable		716		624		126		—			1,466
Unearned revenues		—		2,372		535		—			2,907
Intercompany payable, net		—		83,376		18,886		(102,262	)		—
Total current liabilities		2,050		199,652		40,883		(102,262	)		140,323
Senior subordinated notes payable, net		49,818		—		—		—			49,818
Senior credit facility		—		11,154		—		—			11,154
Real estate mortgages		—		32,721		—		—			32,721
Income taxes payable		4,157		—		—		—			4,157
Unearned revenues and other long-term liabilities		—		13,277		247		—			13,524
Deferred income taxes		—		4,915		—		—			4,915
Total long-term liabilities		53,975		62,067		247		—			116,289
Total liabilities		56,025		261,719		41,130		(102,262	)		256,612
Total equity		377,550		226,447		104,866		(331,313	)		377,550
TOTAL	$	433,575	$	488,166	$	145,996	$	(433,575	)	$	634,162

Condensed Consolidating Statement of Comprehensive Income (Loss)

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED MAY 5, 2018

(amounts in thousands)

	Parent Only			Guarantors		Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—		$	216,215	$	29,220		$	—		$	245,435
Royalty income		—			6,376		3,423			—			9,799
Total revenues		—			222,591		32,643			—			255,234
Cost of sales		—			144,261		17,106			—			161,367
Gross profit		—			78,330		15,537			—			93,867
Operating expenses:
Selling, general and administrative expenses		—			64,247		11,302			—			75,549
Depreciation and amortization		—			2,912		315			—			3,227
Total operating expenses		—			67,159		11,617			—			78,776
Operating income		—			11,171		3,920			—			15,091
Interest expense		—			2,107		(98	)		—			2,009
Net income before income taxes		—			9,064		4,018			—			13,082
Income tax provision		—			2,326		509			—			2,835
Equity in earnings of subsidiaries, net		10,247			—		—			(10,247	)		—
Net income		10,247			6,738		3,509			(10,247	)		10,247
Other comprehensive loss		(1,125	)		—		(1,125	)		1,125			(1,125	)
Comprehensive income	$	9,122		$	6,738	$	2,384		$	(9,122	)	$	9,122

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED APRIL 29, 2017

(amounts in thousands)

	Parent Only			Guarantors		Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—		$	206,686	$	27,137		$	—		$	233,823
Royalty income		—			5,386		2,881			—			8,267
Total revenues		—			212,072		30,018			—			242,090
Cost of sales		—			133,927		17,075			—			151,002
Gross profit		—			78,145		12,943			—			91,088
Operating expenses:
Selling, general and administrative expenses		—			61,599		9,600			—			71,199
Depreciation and amortization		—			3,210		258			—			3,468
Total operating expenses		—			64,809		9,858			—			74,667
Operating income		—			13,336		3,085			—			16,421
Interest expense		—			1,989		(33	)		—			1,956
Net income before income taxes		—			11,347		3,118			—			14,465
Income tax provision		—			1,325		369			—			1,694
Equity in earnings of subsidiaries, net		12,771			—		—			(12,771	)		—
Net income		12,771			10,022		2,749			(12,771	)		12,771
Other comprehensive loss		(77	)		—		(77	)		77			(77	)
Comprehensive income	$	12,694		$	10,022	$	2,672		$	(12,694	)	$	12,694

Condensed Consolidating Statement of Cash Flows

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MAY 5, 2018

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH USED IN OPERATING ACTIVITIES:	$	(1,000	)	$	(40,688	)	$	(1,390	)	$	—		$	(43,078	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(812	)		(881	)		—			(1,693	)
Proceeds from investments maturities		—			—			9,184			—			9,184
Intercompany transactions		913			—			—			(913	)		—
Net cash provided by (used in) investing activities		913			(812	)		8,303			(913	)		7,491
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		—			106,959			—			—			106,959
Payments on senior credit facility		—			(55,709	)		—			—			(55,709	)
Payments on real estate mortgages		—			(225	)		—			—			(225	)
Payments for employee taxes on shares withheld		—			(259	)		—			—			(259	)
Payments on capital leases		—			(17	)		—			—			(17	)
Proceeds from exercise of stock options		101			—			—			—			101
Intercompany transactions		—			(4,776	)		3,877			899			—
Net cash (used in) provided by financing activities		101			45,973			3,877			899			50,850
Effect of exchange rate changes on cash and cash equivalents		(14	)		—			(14	)		14			(14	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		—			4,473			10,776			—			15,249
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			830			34,392			—			35,222
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	5,303		$	45,168		$	—		$	50,471

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED APRIL 29, 2017

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	445		$	(33,893	)	$	(4,319	)	$	—		$	(37,767	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(1,578	)		(323	)		—			(1,901	)
Purchase of investments		—			—			(10,256	)		—			(10,256	)
Proceeds from investments maturities		—			—			4,655			—			4,655
Intercompany transactions		(88	)		—			—			88			—
Net cash used in investing activities		(88	)		(1,578	)		(5,924	)		88			(7,502	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		—			98,764			—			—			98,764
Payments on senior credit facility		—			(57,140	)		—			—			(57,140	)
Payments on real estate mortgages		—			(220	)		—			—			(220	)
Payments on capital leases		—			(69	)		—			—			(69	)
Proceeds from exercise of stock options		23			—			—			—			23
Intercompany transactions		—			(4,478	)		4,946			(468	)		—
Net cash provided by financing activities		23			36,857			4,946			(468	)		41,358
Effect of exchange rate changes on cash and cash equivalents		(380	)		—			(380	)		380			(380	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		—			1,386			(5,677	)		—			(4,291	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			2,578			28,117			—			30,695
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	3,964		$	22,440		$	—		$	26,404