Condensed Consolidating Financial Statements

6 Months Ended

Jul. 28, 2012

Condensed Consolidating Financial Statements [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

20. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Company and several of its subsidiaries (the “Guarantors”) have fully and unconditionally guaranteed the senior subordinated notes on a joint and several basis. The following are condensed consolidating financial statements, which present, in separate columns: Perry Ellis International, Inc., (Parent Only), the Guarantors on a combined, or where appropriate, consolidated basis, and the Non-Guarantors on a consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of July 28, 2012 and January 28, 2012 and for the three and six months ended July 28, 2012 and July 30, 2011. The combined Guarantors are 100% owned subsidiaries of Perry Ellis International, Inc., and have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis.

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

AS OF JULY 28, 2012

(amounts in thousands)

	Parent Only		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	45,739	$	36,624	$	—		$	82,363
Accounts receivable, net		—		105,334		22,342		—			127,676
Intercompany receivable		193,626		—		—		(193,626	)		—
Inventories		—		140,605		24,056		—			164,661
Other current assets		—		31,458		1,627		(2,385	)		30,700
Total current assets		193,626		323,136		84,649		(196,011	)		405,400
Property and equipment, net		—		49,824		4,538		—			54,362
Intangible assets, net		—		223,217		39,330		—			262,547
Investment in subsidiaries		335,138		—		—		(335,138	)		—
Other assets		6,049		2,908		475		—			9,432
TOTAL	$	534,813	$	599,085	$	128,992	$	(531,149	)	$	731,741
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other current liabilities	$	8,631	$	107,412	$	18,064	$	(4,624	)	$	129,483
Intercompany payable		—		143,217		52,172		(195,389	)		—
Total current liabilities		8,631		250,629		70,236		(200,013	)		129,483
Notes payable and senior credit facility		150,000		—		—		—			150,000
Other long-term liabilities		—		67,885		5,952		2,239			76,076
Total long-term liabilities		150,000		67,885		5,952		2,239			226,076
Total liabilities		158,631		318,514		76,188		(197,774	)		355,559
Total Equity		376,182		280,571		52,804		(333,375	)		376,182
TOTAL	$	534,813	$	599,085	$	128,992	$	(531,149	)	$	731,741

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

AS OF JANUARY 28, 2012

(amounts in thousands)

	Parent Only		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	294	$	23,822	$	—		$	24,116
Accounts receivable, net		—		124,016		21,547		—			145,563
Intercompany receivable		191,614		—		—		(191,614	)		—
Inventories		—		169,800		28,464		—			198,264
Other current assets		—		31,069		5,843		(3,179	)		33,733
Total current assets		191,614		325,179		79,676		(194,793	)		401,676
Property and equipment, net		—		51,745		4,751		—			56,496
Intangible assets, net		—		216,702		39,726		—			256,428
Investment in subsidiaries		327,904		—		—		(327,904	)		—
Other assets		6,333		3,182		80		—			9,595
TOTAL	$	525,851	$	596,808	$	124,233	$	(522,697	)	$	724,195
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other current liabilities	$	9,356	$	91,712	$	16,110	$	(5,418	)	$	111,760
Intercompany payable		—		139,786		53,495		(193,281	)		—
Total current liabilities		9,356		231,498		69,605		(198,699	)		111,760
Notes payable and senior credit facility		150,000		21,679		—		—			171,679
Other long-term liabilities		—		66,262		5,760		2,239			74,261
Total long-term liabilities		150,000		87,941		5,760		2,239			245,940
Total liabilities		159,356		319,439		75,365		(196,460	)		357,700
Total Equity		366,495		277,369		48,868		(326,237	)		366,495
TOTAL	$	525,851	$	596,808	$	124,233	$	(522,697	)	$	724,195

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED JULY 28, 2012

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations		Consolidated
Revenue	$	—		$	177,572		$	31,865		$	—	$	209,437
Gross profit		—			55,976			13,349			—		69,325
Operating (loss) income		—			(769	)		519			—		(250	)
Interest and income taxes		—			2,155			37			—		2,192
Equity in earnings of subsidiaries, net		(2,442	)		—			—			2,442		—
Net (loss) income		(2,442	)		(2,924	)		482			2,442		(2,442	)
Comprehensive (loss) income		(3,290	)		(2,924	)		(366	)		3,290		(3,290	)

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED JULY 30, 2011

(amounts in thousands)

	Parent Only		Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenue	$	—	$	187,462		$	26,973		$	—		$	214,435
Gross profit		—		59,468			12,800			—			72,268
Operating income		—		3,501			1,973			—			5,474
Interest and income taxes		—		4,198			(571	)		—			3,627
Equity in earnings of subsidiaries, net		1,847		—			—			(1,847	)		—
Net income (loss)		1,847		(697	)		2,544			(1,847	)		1,847
Comprehensive income (loss)		1,527		(697	)		2,224			(1,527	)		1,527

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 28, 2012

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
Revenue	$	—	$	406,500	$	68,460	$	—		$	474,960
Gross profit		—		126,818		30,247		—			157,065
Operating income		—		12,731		4,994		—			17,725
Interest and income taxes		—		9,530		961		—			10,491
Equity in earnings of subsidiaries, net		7,234		—		—		(7,234	)		—
Net income		7,234		3,201		4,033		(7,234	)		7,234
Comprehensive income		7,138		3,201		3,937		(7,138	)		7,138

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 30, 2011

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
Revenue	$	—	$	446,299	$	56,425	$	—		$	502,724
Gross profit		—		142,052		27,186		—			169,238
Operating income		—		29,554		6,326		—			35,880
Costs on early extinguishment of debt		—		1,306		—		—			1,306
Interest and income taxes		—		17,348		1		—			17,349
Equity in earnings of subsidiaries, net		17,225		—		—		(17,225	)		—
Net income		17,225		10,900		6,325		(17,225	)		17,225
Comprehensive income		18,048		10,900		7,148		(18,048	)		18,048

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 28, 2012

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	1,390		$	69,426		$	14,505		$	—		$	85,321
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(2,801	)		(382	)		—			(3,183	)
Payment on purchase of intangible assets		—			(7,000	)		—			—			(7,000	)
Proceeds in connection with purchase price adjustment		—			4,547			—			—			4,547
Net cash used in by investing activities		—			(5,254	)		(382	)		—			(5,636	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on senior credit facility		—			175,036			—			—			175,036
Payments on senior credit facility		—			(196,715	)		—			—			(196,715	)
Payments on real estate mortgages		—			(345	)		—			—			(345	)
Payments on capital leases		—			(135	)		—			—			(135	)
Proceeds from exercise of stock options		423			—			—			—			423
Tax benefit from exercise of stock options		296			—			—			—			296
Intercompany transactions		(2,111	)		3,431			(1,322	)		2			—
Net cash used in financing activities		(1,392	)		(18,728	)		(1,322	)		2			(21,440	)
Effect of exchange rate changes on cash and cash equivalents		2			—			2			(2	)		2
NET INCREASE IN CASH AND CASH EQUIVALENTS		—			45,444			12,803			—			58,247
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			294			23,822			—			24,116
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	45,738		$	36,625		$	—		$	82,363

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 30, 2011

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	25,463		$	(52,069	)	$	40,184		$	650		$	14,228
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(5,052	)		(718	)		—			(5,770	)
Proceeds on sale of intangible assets		—			—			2,875			—			2,875
Payment on purchase of intangible assets		—			(535	)		—			—			(535	)
Payment on purchase of operating leases		—			(904	)		—			—			(904	)
Redemption of restricted funds as collateral		—			8,919			—			—			8,919
Net cash provided by investing activities		—			2,428			2,157			—			4,585
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		—			204,296			—			—			204,296
Payments on senior credit facility		—			(301,638	)		—			—			(301,638	)
Payments on real estate mortgages		—			(304	)		—			—			(304	)
Proceeds from issuance of senior subordinated notes		150,000			—			—			—			150,000
Debt issuance costs		(3,504	)		—			—			—			(3,504	)
Payments on senior subordinated notes		(105,792	)		—			—			—			(105,792	)
Payments on capital leases		—			(184	)		—			—			(184	)
Proceeds from exercise of stock options		410			—			—			—			410
Tax benefit from exercise of stock options		423			—			—			—			423
Proceeds from issuance of common stock		56,000			—			—			—			56,000
Stock issuance costs		(3,074	)		—			—			—			(3,074	)
Intercompany transactions		(120,095	)		154,738			(34,812	)		169			—
Net cash (used in) provided by financing activities		(25,632	)		56,908			(34,812	)		169			(3,367	)
Effect of exchange rate changes on cash and cash equivalents		169			—			169			(169	)		169
NET INCREASE IN CASH AND CASH EQUIVALENTS		—			7,267			7,698			650			15,615
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			—			19,174			(650	)		18,524
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	7,267		$	26,872		$	—		$	34,139