G-III Apparel Group, Ltd. (NasdaqGS:GIII) (“the Company”) today announced operating results for both the fourth quarter and full year of fiscal 2014.
Net sales for the fiscal year ended January 31, 2014 increased 23% to $1.72 billion from $1.40 billion in the prior year. The sales growth was driven by contributions across the business, as well as from the G.H. Bass & Co. business that was acquired on November 4, 2013. The Company reported GAAP net income for the fiscal year ended January 31, 2014, of $77.4 million, or $3.71 per diluted share, compared to $56.9 million, or $2.80 per diluted share, in the prior year.
On an adjusted basis, excluding expenses associated with the Company’s acquisition of G.H. Bass & Co. and other potential transactions in the current fiscal year and expenses associated with the acquisition of Vilebrequin in the Company’s prior fiscal year, Non-GAAP net income increased 28% to $3.74 per diluted share, from $2.92 per diluted share, in the prior fiscal year.
For the fiscal year ended January 31, 2014, adjusted EBITDA increased 29% to $147.1 million from $114.0 million in the prior fiscal year.
For the fourth quarter ended January 31, 2014, G-III reported net sales increased by 26% to a record level of $472.8 million from $375.3 million in the fourth quarter last year, also driven by broad strength across categories and tiers of distribution, as well as by the recently acquired G.H. Bass & Co. business. The Company’s fourth quarter GAAP net income increased 62% to $13.1 million, or $0.62 per diluted share, from $8.1 million, or $0.40 per diluted share, in the fourth quarter of the prior year.
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. The Non-GAAP net income per share and adjusted EBITDA reported for the full fiscal 2014 year reflect the exclusion of expenses associated with the acquisition of G.H. Bass & Co. and other potential transactions and, for the full fiscal 2013 year, the exclusion of expenses and integration costs associated with the acquisition of Vilebrequin. Non-GAAP net income per share and adjusted EBITDA should be evaluated in light of the Company’s financial results for the full fiscal 2014 year prepared in accordance with GAAP.