Perry Ellis International Inc. (NASDAQ:PERY) Q4 2015 Earnings Conference Call Transcript
Apr 02, 2015 • 09:00 am ET
Good morning, ladies and gentlemen and welcome to the Perry Ellis International's Fourth Quarter and Year End of Fiscal Year 2015 Results Conference Call. As a reminder today's call is being recorded.
Before we begin I would like to remind you that some of the comments made on the call, either as part of the prepared remarks or in response to your questions may contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such information is subject to risks and uncertainties, as described in the press release and in documents that we filed with the SEC.
Joining us today for this call from Perry Ellis are George Feldenkreis, Chairman and Chief Executive Officer; Oscar Feldenkreis, Vice Chairman, President and Chief Operating Officer and Anita Britt, Chief Financial Officer.
I would now like to turn the call over to George Feldenkreis.
Thank you and good morning. Last year we continued the implementation of our 2015 strategic reorganization initiatives, which have resulted in an improved performance during the second half of last year. During that time we have exited 30 brands representing over $80 million in gross revenue. We are in the final stages of exiting some private label business. We have also successfully concluded the sale of C&C California business and our several initiatives in logistics, fabric procurement consolidation as well as payroll reduction have resulted in savings in excess of $12 million, which have allowed us to invest in growing our core businesses as well as new initiatives, so essentially strengthening our financial condition.
We ended the year with $63 million of cash and equivalents on hand, as opposed to $32 million a year ago, and approximately $20 million lesser inventory than a year ago. These achievements are a testament to the hard work, ongoing focus and continued dedication of the Perry Ellis team. As a consequence we have decided to call $100 million of the 7.875 senior subordinated notes using our ABL facilities. This will result in annual interest savings of approximately $6 million a year or $0.25 a share.
During the last year we bought back 370,000 shares. That leaves $8.3 million remaining under the current Board authorization. We will continue to assess our position in the near future. Anita will provide more color on the balance sheet and working capital. Our emphasis and focus on the most profitable channels and geographies fueled margin expansion for the year. Our international revenues grew 15%. Our e-commerce business achieved a positive comp of 36% and our licensing income grew 7%.
We are expanding international distribution. Our European operation led by Original Penguin, Farah and Callaway had an excellent year and our total international operation grew by -- from 10% of revenues last year to 12% this year. The result was all the more notable given the exchange losses we observed from Mexico, Canada, and European provinces. To address this issue in the future we have increased our selling prices