COLLINS & AIKMAN CORPORATION REPORTS FIRST QUARTER EARNINGS.CHARLOTTE, N.C.--(BUSINESS WIRE)--May 31, 1995--Collins & Aikman Aikman is a surname, and may refer to
See: New York Stock Exchange :CKC CKC Canadian Kennel Club CKC Chiang Kai-Shek (former leader of the Republic of China) CKC California Kiwifruit Commission CKC Cool Kids Club CKC Cairo Kidney Center CKC Cold Knife Cone (biopsy) ) reported today net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and net income for the first quarter of fiscal 1995. Net sales were $392.1 million, up 0.4% from the first quarter of the prior year. Net income was $28.9 million representing an increase of 127% over net income for the first quarter of last year. The increase in net income is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the significant reduction in the cost of financing that resulted from the Company's July July: see month. 1994 recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. . Earnings per common share for the quarter ended April 29, 1995 was $.40 compared to $.19 for the first quarter of the prior year. The following tables set forth by segment selected unaudited income statement information (in thousands) for the quarters ended April 29, 1995 and April 30, 1994. Automotive Products
Quarter Ended
April 29, 1995 April 30, 1994
$ % $ %
Net sales $ 243,694 100.0% $ 222,991 100.0%
Cost of goods sold 197,966 81.2 174,842 78.4
Gross margin 45,728 18.8 48,149 21.6
S,G&A 14,648 6.0 12,759 5.7
Operating income $ 31,080 12.8% $ 35,390 15.9%
EBITDA $ 37,587 15.4% $ 41,358 18.5%
Automotive Products - Net sales in Automotive Products, the
Company's largest segment, increased 9.3% in the first quarter of the
current fiscal year as compared to the first quarter of last year.
Automotive Products experienced this increase while the overall
increase in North American vehicle build was only 1%. The Company's
average sales content per vehicle built in North America increased to
$55 for the quarter ended April 29, 1995 from an average of $53 for
the fiscal 1994 year. Automotive Products' first quarter net sales
increase is attributable primarily to increased shipments of four of
the segment's five high volume products: automotive seat fabric,
molded floor carpets, accessory floor mats and luggage compartment
trim. The fifth high volume product, convertible top systems, had
lower sales because of reduced production of the Ford Mustang
Convertible. Gross margin as a percent of net sales decreased in the
first quarter of 1995 as compared to the first quarter of 1994. The
decline is attributable primarily to reduced margins in automotive
seat fabric, which resulted primarily from commission weaving costs
incurred due to capacity constraints for certain fabrics and from
manufacturing inefficiencies. The Company expects to terminate
commission weaving in the current quarter. Automotive Products'
selling, general and administrative expenses increased primarily
because of the allocation of previously unallocated corporate
expenses and costs incurred in divisional reorganizations.
Interior Furnishings
Quarter Ended
April 29, 1995 April 30, 1994
$ % $ %
Net sales $ 91,196 100.0% $ 107,129 100.0%
Cost of goods sold 63,341 69.5 75,249 70.2
Gross margin 27,855 30.5 31,880 29.8
S,G&A 16,659 18.2 18,206 17.0
Operating income $ 11,196 12.3% $ 13,674 12.8%
EBITDA $ 14,674 16.1% $ 17,125 16.0%
Interior Furnishings - In the Interior Furnishings segment, the
Decorative Fabrics group experienced a net sales decline of 19.8% and
the Floorcoverings group experienced a net sales increase of 3.2%
during the first quarter of fiscal 1995 as compared to the first
quarter of the prior year. Decorative Fabrics' sales decline was
principally in the group's Mastercraft division, which makes
flatwoven upholstery fabrics, and in velvets. In addition, 1994
results included the Warner and Greeff product lines, which were sold
in the fourth quarter of 1994. The Company believes that lower sales
at Mastercraft may reflect both competition from lower priced goods
and a shift in consumer tastes from traditional jacquard fabrics to
leather and textured fabrics. Lower velvet sales resulted from the
Company's redeployment of manufacturing capacity to make automotive
seat fabric. The increase in Floorcoverings' sales reflects an
increase in the volume of shipments to the healthcare industry and to
the export markets. Interior Furnishings' gross margin improvement
is due to manufacturing efficiencies resulting from Mastercraft's
loom modernization and cost improvement programs. The decrease in
selling, general and administrative expenses relates primarily to
savings from the sale of the Warner and Greeff product lines,
partially offset by the allocation to Interior Furnishings of
previously unallocated corporate expenses.
Wallcoverings
Quarter Ended
April 29, 1995 April 30, 1994
$ % $ %
Net sales $ 57,239 100.0% $ 60,326 100.0%
Cost of goods sold 37,124 64.9 39,401 65.3
Gross margin 20,115 35.1 20,925 34.7
S,G&A 15,602 27.2 15,788 26.2
Operating income $ 4,513 7.9% $ 5,137 8.5%
EBITDA $ 5,940 10.4% $ 6,506 10.8%
Wallcoverings - Wallcoverings' net sales for the first quarter of
the current year decreased 5.1% from the comparable prior year
quarter. The decrease reflects lower shipments to converter
businesses and planned reductions in sales to independent
distributors, partially offset by increased sales to independent
retailers ("dealers"). The shift to dealer sales from lower margin
converter and independent distributor sales resulted in an
improvement in gross margin as a percent of net sales. The decrease
in selling, general and administrative expenses is attributable
primarily to a reduction in the number of sample books, which
resulted in lower selling costs, partially offset by increased
allocations to Wallcoverings of previously unallocated corporate
expenses.
1994 Recapitalization
During July 1994, the Company completed a recapitalization
designed to reduce its total indebtedness, significantly lower
interest expense, improve operating and financial flexibility and
provide liquidity for operations and other general corporate
purposes. Had the recapitalization occurred at the beginning of
fiscal 1994, the pro forma income and earnings per common share from
continuing operations for the first quarter of fiscal 1994 would have
been $32.9 million and $.46, respectively (assuming 72.2 million
fully diluted shares).
IRS Examination
As previously reported, the Company's Federal income tax returns
are under examination. The IRS has proposed adjustments which, if
maintained by the IRS and upheld in litigation, would result in the
loss of a material amount of the net operating losses otherwise
available to the Company in future years. The Company disputes the
proposed adjustments.
Collins & Aikman Corporation is a leader in each of its three
business segments: Automotive Products, the largest supplier of
interior trim products to the North American automotive industry;
Interior Furnishings, the largest manufacturer of residential
upholstery fabrics in the U.S.; and Wallcoverings, the largest
producer of residential wallpaper in the U.S. Within these three
segments, the Company estimates it holds a number one or a number two
market position in each of its eight major product lines, which
together approximate more than 80% of its total net sales.
COLLINS & AIKMAN CORPORATION
Consolidated Statements of Operations
(Unaudited)
(in thousands, except for per share data)
Quarter Ended
April 29, April 30,
1995 1994
Net sales $ 392,129 $ 390,446 Cost of goods sold 298,431 289,492 Selling, general and administrative expenses 46,909 55,392
345,340 344,884
Operating income 46,789 45,562 Interest expense, net 11,541 29,061 Loss on sale of receivables 2,694 - Dividends on preferred stock of subsidiary - 1,129 Income from continuing operations before income taxes 32,554 15,372 Income taxes 3,653 2,618 Net income $ 28,901 $ 12,754 Dividends and accretion on preferred stock - 7,086 Income applicable to common stockholders $ 28,901 $ 5,668 Net income per primary and fully diluted common share $ .40 $ .19 Average common shares outstanding 71,748 29,809
COLLINS & AIKMAN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
April 29, January 28,
1995 1995
ASSETS
Current Assets:
Cash and cash equivalents $ 13,719 $ 3,317
Accounts and notes receivable, net 78,910 92,082
Inventories 199,705 196,096
Other 26,477 38,184
Total current assets 318,811 329,679 Property, plant and equipment, at cost less accumulated depreciation and amortization of $282,595 and $269,808 295,645 287,559 Other assets 63,183 63,833
$ 677,639 $ 681,071
LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT
Current Liabilities: Notes payable $ 1,950 $ 1,723 Current maturities of long-term debt 24,752 18,114 Accounts payable 76,052 97,726 Accrued expenses 123,046 144,566 Total current liabilities 225,800 262,129 Long-term debt 555,325 547,963 Deferred income taxes 1,459 1,377 Other, including postretirement benefit obligation 283,306 282,224 Commitments and contingencies Common stock (150,000 authorized, 70,521 shares issued and outstanding) 705 705 Other paid-in capital 585,972 586,281 Accumulated deficit (947,648) (976,549) Foreign currency translation adjustments (17,876) (13,655) Pension equity adjustment (9,404) (9,404) Total common stockholders' deficit (388,251) (412,622)
$ 677,639 $ 681,071
COLLINS & AIKMAN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Quarter Ended
April 29, April 30,
1995 1994
OPERATING ACTIVITIES
Net income $ 28,901 $ 12,754
Adjustments to derive cash flow from
continuing operating activities:
Depreciation and leasehold amortization 11,718 11,127
Amortization of other assets and
liabilities 2,931 2,334
Decrease (increase) in accounts and
notes receivable 18,172 (12,340)
Increase in inventories (3,609) (13,647)
Decrease in accounts payable (21,674) (7,403)
Increase in interest and dividends
payable 730 13,787
Other, net (5,713) 11,371
Net cash provided by continuing
operating activities 31,456 17,983
Cash used in discontinued operations (6,831) (8,540) INVESTING ACTIVITIES Additions to property, plant and equipment (21,462) (15,286) Sales of property, plant and equipment 274 11 Net proceeds from disposition of discontinued operations - 71,445 Other, net (2,250) 2,680
Net cash provided by (used in)
investing activities (23,438) 58,850
FINANCING ACTIVITIES Issuance of long-term debt 717 1,037 Repayment of long-term debt (1,863) (5,335) Decrease in participating interest in accounts receivable (5,000) - Net borrowings (repayments) on revolving credit facilities 15,000 (5,000) Net borrowings (repayments) on notes payable 227 (821) Other, net 134 (265)
Net cash provided by (used in)
financing activities 9,215 (10,384)
Net increase in cash and cash equivalents 10,402 57,909 Cash and cash equivalents at beginning of period 3,317 81,373 Cash and cash equivalents at end of period $ 13,719 $ 139,282 CONTACT: Collins & Aikman Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. Bower, 704/548-2382 |
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