COLLINS & AIKMAN CORPORATION REPORTS FIRST QUARTER RESULTS.CHARLOTTE, N.C.--(BUSINESS WIRE)--June 6, 1996--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 increased sales for the first quarter ended April 27, 1996 of $373.6 million, compared to $334.9 million in the first quarter of fiscal 1995. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the first quarter of fiscal 1996 was $52.3 million compared to $52.6 million for the first quarter of fiscal 1995. As previously reported, the Company recognized a $150 million deferred tax asset as of the end of fiscal 1995. As a result of this adjustment, the Company's reported tax rate in the first quarter of fiscal 1996 increased to 40%, compared to 12% for the first quarter of fiscal 1995. Net income for the first quarter ended April 27,1996 was $15.1 million or $.22 per share compared to $28.9 million or $.40 per share in the first quarter of the prior fiscal year. The decrease in net income reflects a 4% decline in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. partially attributable to the General Motors strike in March 1996, an increase in interest expense as a result of the acquisition of Manchester Manchester, city, England Manchester (măn`chəstər, –chĕs'tər), city and metropolitan district (1991 pop. 397,400), NW England, on the Irwell, Medlock, Irk, and Tib rivers. Plastics in January January: see month. 1996, and, most significantly, an increase in the Company's reported tax rate as described above. The Company's Automotive Products and Interior Furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. segments are discussed below. Operating data tables for each segment are contained at the end of this release. Automotive Products 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 of the Automotive Products segment increased to $282.7 million in the first quarter of the current fiscal year, compared to $243.7 million in the first quarter of the prior year principally as a result of the acquisition of Manchester Plastics in January 1996. Manchester contributed $38.3 million in sales of plastic interior trim components in the first quarter of 1996. Automotive Products sales during the first quarter also reflected increased sales of convertible top systems, molded mold 1 n. 1. A hollow form or matrix for shaping a fluid or plastic substance. 2. A frame or model around or on which something is formed or shaped. 3. Something that is made in or shaped on a mold. floor carpet, luggage LUGGAGE. Such things as are carried by a traveller, generally for his personal accommodation; baggage. In England this word is generally used in the same sense that baggage is used in the United States. See Baggage. compartment compartment a part of the body as a whole and divided from the rest by a physical partition. fluid compartment that liquid part of the body excluded by cell membranes. Includes intravascular and intercellular compartments. trim and accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. floormats offset by reduced sales of automotive seat fabric. The Company's average sales content per vehicle built in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. was $64 for the current quarter, compared to an average of $54 for the fiscal 1995 year. The North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. automotive build decreased by approximately 4.4% (or 170,000 vehicles) as compared to the first quarter of the prior fiscal year. Operating income of the Automotive Products segment declined to 10.7% of sales for the current quarter, from 12.8% of sales in the first quarter of the prior year, primarily due to the General Motors strike and start-up Start-up The earliest stage of a new business venture. costs at Manchester in connection with new programs and by increased costs incurred in expanding the Company's carpet business to Austria Austria (ô`strēə), Ger. Österreich [eastern march], officially Republic of Austria, federal republic (2005 est. pop. 8,185,000), 32,374 sq mi (83,849 sq km), central Europe. and convertible top systems business to Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . These factors were partially offset by an 80% increase in sales of higher margin convertible top systems. Interior Furnishings Decorative Fabrics sales for the first quarter were $64.0 million compared to $67.5 million in the first quarter of the prior year. The sales decline resulted principally from a change in product mix towards the Company's lower priced fabrics. The Floorcoverings group's sales for the first quarter increased by 13.5% to $26.9 million, up from $23.7 million in the first quarter of the prior year. The sales increase is attributable to a 12.5% increase in unit shipments, principally of six foot commercial carpet. Operating income of the Interior Furnishings segment as a percentage of sales declined to 11.5% for the current quarter from 12.3% in the first quarter of fiscal 1995, primarily due to lower gross margins resulting from changes in product mix and higher raw material costs at the Company's Decorative Fabrics group. Income Taxes As indicated above, the Company recognized a $150 million deferred tax asset as of the end of fiscal 1995. As a result of this adjustment, the Company's reported tax rate in fiscal 1996 and future periods is expected to approximate the statutory tax rate. The actual amount of taxes to be paid will be significantly less than the Company's tax expense until the Company utilizes its remaining net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and tax credits or until they expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. . At January 27, 1996, Collins & Aikman had net operating loss carryforwards of approximately $286 million for Federal income tax purposes, substantially all of which expire over the period from 2000 to 2008. Public Offering of Senior Subordinated Debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". Collins & Aikman Products Co. has publicly offered $400 million principal amount of 11.5% Senior Subordinated Notes Due 2006 that were priced at 100% of their principal amount. The offering is scheduled to close on June June: see month. 10, 1996. Collins & Aikman intends to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering to repay a portion of its outstanding bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and for general corporate purposes, including working capital, capital expenditures and acquisitions. Collins & Aikman Corporation is a major supplier of textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. and plastic interior trim products and convertible top systems to the North American automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . The Company is also a leading manufacturer of residential upholstery upholstery, general term for household fittings, hangings, curtains, cushions, and covers. It refers to stuffed, padded, and spring-cushioned furniture, such as chairs and sofas, or to the usually decorative materials and fabrics that cover them. fabric, as well as a major provider of commercial carpet products in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . This announcement does not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy the securities referred to above. The offering is made only by the prospectus supplement and the prospectus to which it relates. Copies of the prospectus supplement and prospectus related to the offering are available from the company in any state in which the securities may be lawfully law·ful adj. 1. Being within the law; allowed by law: lawful methods of dissent. 2. Established, sanctioned, or recognized by the law: the lawful heir. offered. Contact: Investor Relations Investor relations The process by which the corporation communicates with its investors. Department, Collins & Aikman Corporation, 701 McCullough Mc·Cul·lough , David Born 1933. American historian who was awarded a Pulitzer Prize for his biography of Harry Truman, Truman (1992). Drive, Charlotte, NC 28262. 704/548-2382. -0-
SEGMENT RESULTS (Unaudited)
Automotive Products
Quarter Ended
April 27, 1996 April 29, 1995
$ % $ %
(Dollar Amounts in Thousands)
Net sales $282,702 100.0% $243,694 100.0% Cost of goods sold 230,828 81.7 197,966 81.2 Gross margin 51,874 18.3 45,728 18.8 SG&A 21,728 7.6 14,648 6.0 Operating income $30,146 10.7% $31,080 12.8% EBITDA $38,920 13.8% $37,587 15.4%
Interior Furnishings
Quarter Ended
April 27, 1996 April 29, 1995
$ % $ %
(Dollar amounts in thousands)
Net sales $90,909 100.0% $ 91,196 100.0% Cost of goods sold 64,827 71.3 63,341 69.5 Gross margin 26,082 28.7 27,855 30.5 SG&A 15,621 17.2 16,659 18.2 Operating income $10,461 11.5% $11,196 12.3% EBITDA $13,412 14.8% $14,674 16.1%
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except for per share data)
Quarter Ended
April 27, April 29
1996 1995
Net sales $ 373,611 $ 334,890
Cost of goods sold 295,655 261,307
Selling, general and administrative expenses 37,349 31,307
333,004 292,614
Operating income 40,607 42,276 Interest expense, net 15,163 11,426 Loss on sale of receivables 2,065 2,694 Other (income) expense (1,307) - Income from continuing operations before income taxes 24,686 28,156 Income tax expense 9,900 3,389 Income from continuing operations 14,786 24,767 Income from discontinued operations, net of 356 4,134 income taxes Net income $ 15,142 $ 28,901 Net income per primary and fully diluted common share: Continuing operations $ .21 $ .35 Discontinued operations .01 .05 Net income $ .22 $ .40 Average common shares outstanding: Primary 70,035 71,748 Fully diluted 70,117 71,748
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
April 27, Jan. 27
1996 1996
ASSETS
Current Assets:
Cash and cash equivalents $ 5,493 $ 977
Accounts and notes receivable, net 153,870 128,595
Inventories 147,243 147,774
Net assets of discontinued operations 80,712 79,401
Other 56,089 74,158
Total current assets 443,407 430,905 Property, plant and equipment, net 292,062 286,033 Deferred tax assets 123,803 124,395 Goodwill, net 158,362 159,347 Other assets 50,771 49,327
$1,068,405 $1,050,007
LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT Current Liabilities: Notes payable $ 1,243 $ 2,101 Current maturities of long-term debt 53,897 51,508 Accounts payable 116,037 117,059 Accrued expenses 120,762 97,883 Total current liabilities 291,939 268,551 Long-term debt 704,739 713,514 Other, including postretirement benefit 283,958 295,794 obligation Commitments and contingencies - - Common stock (150,000 shares authorized, 70,521 shares issued and 69,074 shares outstanding 705 705 Other paid-in capital 585,358 585,469 Accumulated deficit (754,997) (770,139) Foreign currency translation adjustments (23,129) (23,719) Pension equity adjustment (9,090) (9,090) Treasury stock, at cost (1,447 shares) (11,078) (11,078)
Total common stockholders' deficit (212,231) (227,852)
$1,068,405 $1,050,007
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Quarter Ended
April 27, April 29,
1996 1995
OPERATING ACTIVITIES
Income from continuing operations $ 14,786 $ 24,767
Adjustments to derive cash flow from
continuing operating activities:
Depreciation and leasehold amortization 9,754 10,291
Amortization of goodwill 1,030 -
Amortization of other assets 1,995 734
Decrease (increase) in accounts and notes
receivable (26,275) 26,809
Decrease (Increase) in inventories 531 (2,225)
Decrease in accounts payable (1,022) (19,026)
Increase in interest payable 446 730
Other, net 22,368 (5,099)
Net cash provided by continuing operating 23,613 36,981 activities Cash provided by (used in) Wallcoverings discontinued operations 3,666 (5,525) Cash provided by (used in) other discontinued operations 2,385 (6,831) Net cash provided by (used in) discontinued operations 6,051 (12,356) INVESTING ACTIVITIES Additions to property, plant and equipment (19,940) (21,462) Sales of property, plant and equipment 2,363 274 Other, net (1,254) (2,250) Net cash used in investing activities (18,831) (23,438) FINANCING ACTIVITIES Issuance of long-term debt 184 717 Repayment of long-term debt (14,516) (1,863) Proceeds from (reduction of) participating interests in accounts receivable, net of redemptions 1,000 (5,000) Net borrowings on revolving credit facilities 8,000 15,000 Net borrowings (repayments) on notes payable (858) 227 Other, net (127) 134 Net cash provided by (used in) financing activities (6,317) 9,125 Net increase in cash and cash equivalents 4,516 10,402 Cash and cash equivalents at beginning of period 977 3,317 Cash and cash equivalents at end of period $ 5,493 $13,719 CONTACT: Collins & Aikman Corp. Steve Bower Steve Bower was born in 1973 and started his mainstream career in Regional radio in the 1990s at Piccadilly Radio in Manchester, where he was Head of Football. In September 1998, at the launch of MUTV, Steve became the commentator for the channel. , 704/548-2382 |
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