PhillipsVan Heusen Corp. (PVH, Financial) filed Quarterly Report for the period ended 2009-05-03.
PHILLIPS-VAN HEUSEN CORP. is a vertically integrated manufacturer marketer and retailer of men's women's and children's apparel and footwear. Their products include shirts sweaters and shoes and to a lesser extent neckwear furnishings bottoms outerwear and leather and canvas accessories. They are also a leading manufacturer and distributor of private label shirts and sweaters. PhillipsVan Heusen Corp. has a market cap of $1.61 billion; its shares were traded at around $31.31 with a P/E ratio of 12.1 and P/S ratio of 0.6. The dividend yield of PhillipsVan Heusen Corp. stocks is 0.5%. PhillipsVan Heusen Corp. had an annual average earning growth of 24.9% over the past 5 years.
Net sales in the first quarter of 2009 decreased 12.4% to $475.7 million from $543.2 million in the first quarter of the prior year. The decrease of $67.4 million was due principally to the items described below:
Interest expense of $8.4 million in the first quarter of 2009 was flat to the prior years first quarter amount. Interest income decreased to $0.5 million in the first quarter of 2009 from $1.9 million in the first quarter of the prior year due principally to a decrease in average investment rates of return, partially offset by an increase in our average cash position during the first quarter of 2009 as compared to the first quarter of 2008.
Income taxes decreased by $12.7 million to $16.5 million in the first quarter of 2009 from $29.3 million in the first quarter of 2008. The decrease was primarily due to a decrease in pre-tax income during the first quarter of 2009 compared to the first quarter of 2008. Income taxes for the first quarter of 2009 were provided for at a rate of 40.1% compared with last years first quarter rate of 38.5%. Our quarterly tax rate tends to vary from our full year rate because discrete items do not occur in all quarters.
Cash used by operating activities was $21.6 million in the first quarter of 2009, which compares with $5.7 million in the first quarter of the prior year. Net income adjusted for depreciation, amortization, stock-based compensation expense, deferred taxes, impairment and the gain on the sale of investments decreased $20.1 million and was partially offset by changes in working capital, including the following:
For near-term liquidity, in addition to our cash balance, we have a $325.0 million secured revolving credit facility with JP Morgan Chase Bank, N.A. as the Administrative Agent and Collateral Agent that expires in July 2012 and provides for revolving credit borrowings, as well as the issuance of letters of credit. We may, at our option, borrow and repay amounts up to a maximum of $325.0 million for revolving credit borrowings and the issuance of letters of credit, which may be increased by us under certain conditions by up to $100.0 million, with a sublimit of $50.0 million for standby letters of credit and with no sublimit on trade letters of credit. Based on our working capital projections, we believe that our borrowing capacity under this facility provides us with adequate liquidity for our peak seasonal needs for the foreseeable future. During the first quarter of 2009, we had no revolving credit borrowings under the facility, and the maximum amount of letters of credit outstanding was $115.2 million. As of May 3, 2009, we had $109.1 million of outstanding letters of credit under this facility. We currently do not expect to have any revolving credit borrowings under the facility during the remainder of 2009.
Read the The complete ReportPVH is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
PHILLIPS-VAN HEUSEN CORP. is a vertically integrated manufacturer marketer and retailer of men's women's and children's apparel and footwear. Their products include shirts sweaters and shoes and to a lesser extent neckwear furnishings bottoms outerwear and leather and canvas accessories. They are also a leading manufacturer and distributor of private label shirts and sweaters. PhillipsVan Heusen Corp. has a market cap of $1.61 billion; its shares were traded at around $31.31 with a P/E ratio of 12.1 and P/S ratio of 0.6. The dividend yield of PhillipsVan Heusen Corp. stocks is 0.5%. PhillipsVan Heusen Corp. had an annual average earning growth of 24.9% over the past 5 years.
Highlight of Business Operations:
We announced in the fourth quarter of 2008 a series of actions to respond to the current economic conditions by restructuring certain of our operations and implementing a number of other cost reduction efforts. We recorded pre-tax charges in the fourth quarter of 2008 that totaled approximately $82 million, of which approximately $64 million related to non-cash asset impairments, principally associated with our retail stores, and approximately $18 million related to lease terminations, severance and other costs in connection with these restructuring initiatives. We recorded additional pre-tax charges of $4.7 million related principally to lease terminations, severance and other costs during the first quarter of 2009 and we expect to incur additional charges of approximately $5.3 million principally in the second quarter of 2009 in connection with these initiatives.Net sales in the first quarter of 2009 decreased 12.4% to $475.7 million from $543.2 million in the first quarter of the prior year. The decrease of $67.4 million was due principally to the items described below:
Interest expense of $8.4 million in the first quarter of 2009 was flat to the prior years first quarter amount. Interest income decreased to $0.5 million in the first quarter of 2009 from $1.9 million in the first quarter of the prior year due principally to a decrease in average investment rates of return, partially offset by an increase in our average cash position during the first quarter of 2009 as compared to the first quarter of 2008.
Income taxes decreased by $12.7 million to $16.5 million in the first quarter of 2009 from $29.3 million in the first quarter of 2008. The decrease was primarily due to a decrease in pre-tax income during the first quarter of 2009 compared to the first quarter of 2008. Income taxes for the first quarter of 2009 were provided for at a rate of 40.1% compared with last years first quarter rate of 38.5%. Our quarterly tax rate tends to vary from our full year rate because discrete items do not occur in all quarters.
Cash used by operating activities was $21.6 million in the first quarter of 2009, which compares with $5.7 million in the first quarter of the prior year. Net income adjusted for depreciation, amortization, stock-based compensation expense, deferred taxes, impairment and the gain on the sale of investments decreased $20.1 million and was partially offset by changes in working capital, including the following:
For near-term liquidity, in addition to our cash balance, we have a $325.0 million secured revolving credit facility with JP Morgan Chase Bank, N.A. as the Administrative Agent and Collateral Agent that expires in July 2012 and provides for revolving credit borrowings, as well as the issuance of letters of credit. We may, at our option, borrow and repay amounts up to a maximum of $325.0 million for revolving credit borrowings and the issuance of letters of credit, which may be increased by us under certain conditions by up to $100.0 million, with a sublimit of $50.0 million for standby letters of credit and with no sublimit on trade letters of credit. Based on our working capital projections, we believe that our borrowing capacity under this facility provides us with adequate liquidity for our peak seasonal needs for the foreseeable future. During the first quarter of 2009, we had no revolving credit borrowings under the facility, and the maximum amount of letters of credit outstanding was $115.2 million. As of May 3, 2009, we had $109.1 million of outstanding letters of credit under this facility. We currently do not expect to have any revolving credit borrowings under the facility during the remainder of 2009.
Read the The complete ReportPVH is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
