G-III Apparel Group, Ltd. Announces First Quarter Fiscal 2017 Results
Net Sales Increase 6% to First Quarter Record of
Net Income of
Full-Year Guidance for
For the quarter ended
Outlook
The Company today reiterated its prior guidance for the full fiscal 2017
year ending
On an adjusted basis, excluding items resulting in other income in
Fiscal 2016 of
The Company also continues to project adjusted EBITDA for fiscal 2017 to
increase between 9% and 12%, to between approximately
For its second fiscal quarter ending
Non-GAAP Financial Measures
Reconciliations of GAAP net income per share to non-GAAP net income per share and of GAAP net income to adjusted EBITDA are presented in tables accompanying the condensed financial statements included in this release and provide useful information to evaluate the Company's operational performance. Non-GAAP net income per share and adjusted EBITDA should be evaluated in light of the Company's financial results prepared in accordance with GAAP.
About
G-III is a leading manufacturer and distributor of apparel and
accessories under licensed brands, owned brands and private label
brands. G-III's owned brands include Vilebrequin,
Statements concerning G-III's business outlook or future economic
performance, anticipated revenues, expenses or other financial items;
product introductions and plans and objectives related thereto; and
statements concerning assumptions made or expectations as to any future
events, conditions, performance or other matters are "forward-looking
statements" as that term is defined under the
|
CONSOLIDATED STATEMENTS OF INCOME AND SELECTED BALANCE SHEET DATA (In thousands, except per share amounts) |
|||||||||||||
|
First Quarter Ended |
|||||||||||||
| (Unaudited) | |||||||||||||
|
2016 |
2015 |
||||||||||||
| Net sales | $ | 457,403 | $ | 432,965 | |||||||||
| Cost of sales | 291,734 | 278,538 | |||||||||||
| Gross profit | 165,669 | 154,427 | |||||||||||
| Selling, general and administrative expenses | 153,105 | 137,034 | |||||||||||
| Depreciation and amortization | 7,193 | 5,687 | |||||||||||
| Operating profit | 5,371 | 11,706 | |||||||||||
| Equity gain in investment | 269 | — | |||||||||||
| Interest and financing charges, net | (1,242 | ) | (975 | ) | |||||||||
| Income before taxes | 4,398 | 10,731 | |||||||||||
| Income tax expense | 1,627 | 3,971 | |||||||||||
| Net income | $ | 2,771 | $ | 6,760 | |||||||||
| Net income per common share: | |||||||||||||
| Basic |
$ |
0.06 |
$ |
0.15 |
|||||||||
| Diluted |
$ |
0.06 |
$ |
0.15 |
|||||||||
| Weighted average shares outstanding: | |||||||||||||
| Basic |
45,549 |
44,965 |
|||||||||||
| Diluted |
46,942 |
46,210 |
|||||||||||
|
At |
|||||||||||||
| Selected Balance Sheet Data (in thousands): |
2016 |
2015 |
|||||||||||
| Cash | $ | 95,448 | $ | 85,708 | |||||||||
| Working Capital | 633,510 | 565,461 | |||||||||||
| Inventory | 406,720 | 371,224 | |||||||||||
| Total Assets | 1,106,681 | 952,050 | |||||||||||
| Total Stockholders' Equity | 901,651 | 761,155 | |||||||||||
|
RECONCILIATION OF FORECASTED AND ACTUAL GAAP NET INCOME PER SHARE TO FORECASTED AND ACTUAL NON-GAAP NET INCOME PER SHARE (Unaudited) |
|||||||
|
Forecasted Twelve Months Ending
|
Actual Twelve Months Ended
|
||||||
| GAAP diluted net income per common share |
|
|
|||||
| Excluded from non-GAAP: | |||||||
| Other income, net of taxes | — | (0.02) | |||||
|
Non-GAAP diluted net income per common share |
|
|
|||||
| Non-GAAP diluted net income per share is a "non-GAAP financial measure" that excludes other income in fiscal 2016 which consisted of the reduction of the estimated contingent consideration payable in connection with the acquisition of Vilebrequin. Management believes that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding other income that is not indicative of our core business operating results. Management uses this non-GAAP financial measure to assess our performance on a comparative basis and believes that it is also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. |
|
RECONCILIATION OF FORECASTED AND ACTUAL NET INCOME TO FORECASTED AND ACTUAL ADJUSTED EBITDA (In thousands) (Unaudited) |
|||||||
|
|
Forecasted Twelve Months Ending
|
Actual Twelve Months Ended
|
|||||
| Net income |
|
|
|||||
| Other income | — | (1,068) | |||||
| Depreciation and amortization | 31,000 | 25,392 | |||||
| Interest and financing charges, net | 7,000 | 6,691 | |||||
| Income tax expense | 70,000 - 73,000 | 64,800 | |||||
| Adjusted EBITDA, as defined |
|
|
|||||
| Adjusted EBITDA is a "non-GAAP financial measure" which represents earnings before depreciation and amortization, interest and financing charges, net, and income tax expense and excludes other income in fiscal 2016 which consisted of the reduction of the estimated contingent consideration payable in connection with the acquisition of Vilebrequin. Adjusted EBITDA is being presented as a supplemental disclosure because management believes that it is a common measure of operating performance in the apparel industry. Adjusted EBITDA should not be construed as an alternative to net income as an indicator of the Company's operating performance, or as an alternative to cash flows from operating activities as a measure of the Company's liquidity, as determined in accordance with generally accepted accounting principles. | |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160601005530/en/
Investor Relations:
or
Chief
Financial Officer
Source:
News Provided by Acquire Media